Robert Coolbrith

Robert Coolbrith asked about the acceleration in sales and marketing investments, questioning if it reflects media cost inflation or faster payback periods and stronger LTVs, particularly with the Norton 360 mix shift. He also inquired about the strong R&D efficiency and productivity growth, seeking details on the use of AI within the organization or better synergy realization.

Answer

CFO Natalie Derse stated that increased sales and marketing investments are deployed where returns are highest, specifically for acquiring 360 memberships (especially mobile) and MoneyLion (first and third-party), both showing strong growth and healthy returns. She emphasized disciplined operations to create capacity for these investments. CEO Vincent Pilette explained that R&D efficiency is driven by two AI initiatives: building AI-native applications and transforming functions to be AI-first (support, marketing, R&D). He highlighted 'Jelly Corn' squads using AI tools for ideation to product launch, aiming to lower overall R&D costs and accelerate product development.

Robert Coolbrith asked about the acceleration in sales and marketing investments, whether it reflects media cost inflation or faster payback periods/stronger LTVs, particularly with the Norton 360 mix shift. He also sought more details on R&D efficiency and productivity growth, including the contribution of AI within the organization.

Answer

CFO Natalie Derse confirmed increased sales and marketing investments, driven by efficient returns in areas like 360 memberships, mobile acquisition, and MoneyLion (both first and third-party). She noted well-balanced growth in MoneyLion, exceeding expectations, and emphasized a disciplined approach to generate capacity for these investments, continuously improving CLV over CAC. CEO Vincent Pilette explained that R&D efficiency is influenced by MoneyLion's different business profile. He detailed two main AI initiatives: building AI-native applications and transforming functions to be AI-first (support, marketing, R&D). He highlighted 'jelly corn' squads using AI tools for ideation to product launch, which is expected to lower overall R&D costs and accelerate product development.

Robert Coolbrith of Evercore ISI asked about the impact of Gen's operational discipline on MoneyLion's performance and sought details on the timeline for realizing cross-sell opportunities into Gen's customer base.

Answer

CEO Vincent Pilette stated that while prioritizing growth, MoneyLion is already operating above its 20% margin target due to initial operational integrations. He noted the next margin uplift will come from cross-selling into Gen's installed base at a near-zero customer acquisition cost. Pilette also announced that the first rebranded, integrated product is on track to launch in the fall, with more details to be shared at the September 8th investor briefing.

Robert Coolbrith of Evercore ISI asked about the specific operational disciplines Gen has implemented at MoneyLion and the expected timeline for cross-selling MoneyLion's products to Gen's existing customer base.

Answer

CEO Vincent Pilette stated that while operational gains from system and process integration are largely complete, the major opportunity from cross-selling into Gen's base at zero customer acquisition cost (CAC) is still ahead. He noted that the first rebranded, integrated product is planned for launch in the fall, with more details to be shared at the September 8 investor briefing.

Robert Coolbrith asked about the most acute areas of valuation disconnect versus intrinsic value and what makes this moment unique for entertaining inbound interest in Ziff Davis's businesses.

Answer

CEO Vivek Shah explained that enhanced segment-level reporting at the start of the year provided greater insight, attracting significant interest from strategics and sponsors. He noted that the valuation disconnect between the company's market cap and its intrinsic value is currently at its widest, believing each division individually should command a higher multiple than the current Ziff Davis multiple. He stated the value disconnect is across the board.

Robert Coolbrith from Evercore ISI inquired about Ziff Davis's perspective on the most acute areas of valuation disconnect versus intrinsic value and the unique timing for entertaining significant inbound interest in certain businesses.

Answer

CEO Vivek Shah explained that the enhanced segment-level reporting initiated in early 2025 provided greater insight into the company's diverse businesses, attracting increased attention from strategics and sponsors. He noted that the disconnect between Ziff Davis's current market cap and its intrinsic value is at its widest point, believing all divisions should command higher individual multiples than the current Ziff Davis multiple.

Robert Coolbrith asked about the drivers behind the notable uptick in advertiser customers in the Health and Wellness segment and the pronounced inflection in revenue per customer in the Connectivity segment.

Answer

CEO Vivek Shah attributed the Health advertiser growth to successful expansion beyond core pharma into broader wellness and longevity brands, aided by acquisitions and new ad inventory on the Lose It! app. For the Connectivity segment, Shah explained the revenue-per-customer metric is a computed figure influenced by the mix between high-price-point services like Speedtest Intelligence and lower-priced ones like Ekahau, with recent growth likely driven by the former.

Robert Coolbrith asked for more detail on the robust trends in the Tech & Shopping segment, including organic performance, and inquired if there was any data on whether traffic from AI Overviews converts differently.

Answer

CEO Vivek Shah explained that it is too early to determine the quality or conversion rate of traffic from AI Overviews due to a lack of tracking data. Regarding Tech & Shopping, he noted that strong performance was driven by both the CNET acquisition and strong organic growth from properties like PCMag (+10%), which was partially offset by a planned revenue decline in the B2B unit to improve its profitability.

Robert Coolbrith asked for an update on the Health & Wellness business, including consumer vs. provider trends and GLP-1 exposure. He also requested more detail on the Connectivity (Ookla) segment's Q4 shortfall, specifically the historical data sales that did not materialize.

Answer

CEO Vivek Shah clarified that in 2024, the direct-to-consumer health business fared better than direct-to-provider, but he expects both to perform well in 2025. He noted GLP-1 revenue is not yet material but presents a strategic opportunity, especially bundled with the Lose It! app. Regarding Connectivity, Shah explained the Q4 miss was partly due to the lumpy nature of large data deals and a significant internal reorganization that involved leadership and organizational changes, which was done to set the business up for long-term growth.

Robert Coolbrith asked about Roku's advantages in delivering performance advertising, interest in new pricing models like cost per action (CPA), and factors influencing streaming hours acceleration.

Answer

CEO Anthony Wood highlighted Roku's advantages for performance advertising: large scale, first-party data, advanced AI technology, and a rich user experience. President of Roku Media Charlie Collier confirmed interest in deeper ROI proof and new pricing models like CPA, emphasizing meeting diverse client KPIs. CFO Dan Jedda clarified that streaming hours showed a slight de-acceleration due to large numbers, but monetizable hours (The Roku Channel, premium subscriptions) are growing strongly, with TRC gaining traction as the number two app.

Robert Coolbrith inquired about the market structure for performance advertising in CTV, asking if it would favor platform-direct tools or DSPs, and also requested the streaming hours growth for The Roku Channel (TRC).

Answer

President of Roku Media Charlie Collier stated that winners in performance advertising will be those who can prove results, positioning Roku well with its action-oriented ad formats. CFO Dan Jedda added that Roku Ads Manager serves a new market of advertisers who may not use a DSP. Jedda also revealed that TRC streaming hours grew around 80% in Q2, though he expects that rate to moderate as they lap tougher comps.

Robert Coolbrith of Evercore asked about the continued opportunity for improved buyer understanding within an agentic context, specifically if there's potential for agent-to-agent communication and associated optimization. He also requested quantification of the exogenous factors, such as the de minimis impact, on Q3 performance.

Answer

President and Chief Growth Officer Kruti Patel Goyal stated that investments in deepening buyer understanding will serve future opportunities, including agentic search, and are already improving onsite engagement and conversion. CEO Josh Silverman added that agents training customers to provide more context will help Etsy match them with perfect items. CFO Lanny Baker quantified exogenous factors, noting stable foreign currencies, opportunistic search market share gains, and a modest headwind from the de minimis exemption in Q3.

Robert Coolbrith asked President and Chief Growth Officer Kruti Patel Goyal about the continued opportunity for improved buyer understanding in agentic commerce and potential agent-to-agent communication optimization. He also asked CFO Lanny Baker to quantify the impact of exogenous factors, specifically the de minimis exemption, on Q3 results.

Answer

President and Chief Growth Officer Kruti Patel Goyal stated that investments in deepening buyer understanding, leveraging AI and LLMs, will serve Etsy across all future opportunities, including agentic search. CEO Josh Silverman added that customers providing detailed context through agents will help Etsy find perfect items. CFO Lanny Baker noted that foreign currencies were stable, competitive dynamics allowed search market share gains, and the de minimis exemption expiration caused a modest, temporary headwind in Q3, offset by stronger U.S. domestic trade route growth.

Robert Coolbrith asked about the specific triggering event for the DSP platform shift in July, the timeline for recovery, and whether CTV inventory was similarly impacted by traffic shaping.

Answer

Co-Founder and CEO Rajeev Goel confirmed a significant increase in the DSP's platform shift activity was observed in July and that traffic shaping optimizations apply across all formats, including video. CFO Steve Pantelick added that the change was abrupt, with the DSP's spend dropping from double-digit growth in June to a negative year-over-year decline in July. He stated that mitigation will take time due to the complexity, and the low end of the Q3 outlook assumes limited effectiveness this quarter.

Robert Coolbrith asked for more details on the large DSP partner issue, questioning why the impact was limited to display and why it materialized late in the quarter. He also inquired about the data opportunity and the secular shifts driving it.

Answer

CEO Rajeev Goel attributed the issue to a structural bidding change by the DSP to a first-price auction model, combined with lower-than-expected holiday seasonality from that specific partner, which historically focuses on display. He affirmed the relationship remains strong. Regarding the data opportunity, Goel highlighted the industry's shift to sell-side targeting, driven by cookie deprecation and the efficiency of applying first-party data, noting PubMatic's 'Connect' platform now has over 190 data partners.

Robert Coolbrith of Evercore ISI sought clarification on the MQU impact from the FI partner's content restriction, the nature of the restriction itself, and whether advertiser concerns were about the FI partner or the broader Cardlytics platform.

Answer

CEO Amit Gupta clarified that while the partner is significant for billings, the rest of the network represents over 50% of MQUs, demonstrating resilience. He stated that advertiser concern stems from frustration over losing a single platform for all their CLO needs, not a loss of faith in Cardlytics. Gupta reinforced that the company's value proposition remains strong, citing improved ROAS, the shift to engagement-based pricing, and plans to compete aggressively.

Robert Coolbrith asked if the expansion with new FI and neobank partners is helping to catalyze advertiser demand and inquired about the prospects for revising revenue share agreements during upcoming renewals.

Answer

CEO Amit Gupta confirmed that adding new partners expands the network's reach, which helps attract more diverse advertisers and larger budgets. Regarding renewals, he stated that incentives are aligned with bank partners to maximize cardholder value and that Cardlytics' enhanced tech stack allows for tailored product roadmaps, expressing confidence in their position for upcoming discussions.

Robert Coolbrith of Evercore ISI asked about the current level of programmatic penetration across Magnite's partners and what other opportunities might open up for Magnite following a favorable Google antitrust ruling.

Answer

CEO Michael Barrett explained that programmatic is now a central part of upfront presentations, with adoption accelerating. Regarding the Google outcome, he stated that the primary focus would be on capturing the significant share shift opportunity in their core business before exploring adjacent opportunities.

Robert Coolbrith asked for an update on the managed service business and the advertiser perspective on curation, particularly regarding potential DSP data limitations.

Answer

CFO David Day reported that managed service was 4% of Q3 contribution ex-TAC, down 20% YoY, and is expected to continue declining as clients shift to programmatic. CEO Michael Barrett noted that curation is gaining popularity due to SPO, and he does not foresee DSPs restricting these advertiser-demanded solutions, as buyers increasingly want to transact through their established exchange partners like Magnite.

Robert Coolbrith asked for an update on the managed service business and inquired if advertisers are using curation to get ahead of potential DSP data policy limitations.

Answer

CFO David Day stated that managed service was 4% of contribution ex-TAC, down 20% YoY, and will continue declining as clients shift to programmatic. CEO Michael Barrett addressed curation, noting that large buyers are consolidating spend through exchanges like Magnite. He is unaware of any DSPs restricting this, as the demand is advertiser-driven, and limiting it would be counterproductive for the DSP.

Asked for an update on the managed service business and for the advertiser perspective on curation, particularly in light of potential DSP policy changes around third-party data.

Answer

The managed service business was 4% of contribution ex-TAC, down 20% YoY, and is expected to continue declining as clients shift to programmatic. On curation, adoption is growing as buyers consolidate spend through preferred exchanges like Magnite. The company is not aware of any DSP restrictions that would limit this, as the demand is driven by advertisers seeking specific audiences.

Robert Coolbrith asked about the expansion of the Face Check feature and sought details on the early learnings and financial potential from alternative payment experiments.

Answer

CEO Spencer Rascoff noted that Face Check is being studied in Canada, Colombia, and California to assess its impact on user perception of safety. CFO Stephen Bailey addressed alternative payments, stating that tests show a greater than 30% shift in transactions to the web, resulting in a more than 10% increase in net revenue. He estimated a potential AOI savings opportunity of at least $65 million in 2026 upon full rollout.

Robert Coolbrith inquired about the market response to pre-bid optimization tools for social media and asked for details on the go-to-market strategy for products like Dynamic Performance Profiles (DPP).

Answer

CEO Lisa Utzschneider reported that pre-bid social optimization adoption is tracking to expectations, with advertisers seeing ROI up to 2x their investment, though meaningful revenue is not expected until 2026. She described the go-to-market for DPP as an automated solution that embeds contextual segments pre-bid to help advertisers find higher-quality media and achieve better outcomes.

Robert Coolbrith inquired if IAS is exploring performance measurement or Multi-Touch Attribution (MTA) as a market expansion opportunity and asked for commentary on recent industry moves like the Sincera acquisition and new Amazon reporting.

Answer

CEO Lisa Utzschneider clarified that IAS's focus is on performance 'activation'—linking media quality to ROI—rather than MTA. She noted that Sincera remains a strategic partner and that IAS has offered URL transparency, similar to Amazon's recent update, since 2021, viewing it as an area of continued innovation.

Robert Coolbrith asked if the customer base's skew towards services businesses also applies to the commerce segment specifically, and whether recent Microsoft Office 365 price increases were factored into guidance.

Answer

CEO Aman Bhutani confirmed that because the commerce business primarily draws from GoDaddy's existing customer base, it naturally shares the same skew towards service-oriented businesses. Regarding Microsoft, he stated that GoDaddy's long-term contractual relationship means that external price increases do not have a direct impact on its financials or guidance.

Robert Coolbrith asked for details on the renewal rate improvements in early Airo cohorts, particularly for domains, and inquired about the potential to offer Airo to the installed base at renewal.

Answer

CEO Aman Bhutani hypothesized that the free value-add services Airo provides to domain buyers lead to higher retention. He confirmed the strategy is to drive expansion by upselling these customers to Airo Plus and that they are actively working on rolling out Airo to the broader existing customer base, a motion that typically follows success with new customers.

Robert Coolbrith asked whether the current industry-wide 'reset' to enhance user value is a temporary, generational shift or a more structural change.

Answer

CEO Whitney Herd positioned the shift as a necessary, structural reset for the category. She argued that the industry had become too focused on micro-optimizations rather than core user value. She believes the need for love is universal, not generational, and described the current work as a foundational 'remodel,' not a 'rebuild,' to better fulfill the fundamental human need for connection in a safe and joyful way.

Robert Coolbrith requested more details on the marketing tests in Europe, including channel mix and messaging, and asked if those learnings could be applied to more mature markets.

Answer

CEO Lidiane Jones described the European tests as using a tailored channel mix to acquire specific user demographics with a positive ROI. She contrasted this with mature markets like New York, where the focus is on organic marketing and brand experiences (e.g., WNBA sponsorship) that create digital amplification. She emphasized a deliberate, market-specific strategy and highlighted the large remaining opportunity for international expansion.

Robert Coolbrith from Evercore ISI inquired about any recent inflection points in Wix's engagement with larger agencies, either in numbers or project penetration. He also asked about the drivers behind the Q3 seasonality in Business Solutions bookings.

Answer

President & COO Nir Zohar confirmed that Wix is winning more large agencies through targeted marketing and product education for Studio, and he expects this trend to continue. CFO Lior Shemesh clarified that the sequential change in Business Solutions bookings was not due to seasonality but rather "noise around Google Workspace," as incentives from Google are not received every quarter. He pointed to the accelerating transaction revenue as the key underlying trend.