Ronald Josey

Ronald Josey asked about Xometry's brand awareness among buyers, how the company balances profitability with sales and marketing spend to build awareness, and how the management team balances incremental investments with achieving greater EBITDA, given the large TAM.

Answer

Randy Altschuler (CEO) explained that Xometry balances profitable growth with marketing spend, noting efficiency improvements. He emphasized that durable long-term growth will come from increased awareness and technology integrations (PunchOuts, BOM inclusion) that provide "free advertising" and stickiness, especially for larger customers seeking reliability. Sanjiv Singh Sahni (President) added that Xometry's AI-native approach and high-quality content position it well to leverage new organic channels like AI overviews for brand messaging. James Miln (CFO) highlighted consistent incremental adjusted EBITDA margins of 20%+ over the last three years, demonstrating leverage, and expects sustainable free cash flow positive as the company approaches $1 billion in revenue, given its asset-light model.

Ronald Josey asked about Xometry's brand awareness among its buyer base, given the large TAM, and how the company balances sales and marketing spend with overall profitability. He also asked James Miln about balancing incremental investments with achieving 20% incremental adjusted EBITDA margins in 2026.

Answer

Randy Altschuler, CEO, noted a large pool of buyers and a focus on balancing profitable growth in marketing, with technology integrations and embedded workflows providing 'free advertising.' Sanjeev Singh Sahni, President, highlighted Xometry's AI-native approach, leveraging data science and AI overviews as new organic channels for brand messaging. James Miln, CFO, emphasized the consistent delivery of 20%+ incremental adjusted EBITDA margins over the last three years, demonstrating leverage, and reiterated the commitment to at least 20% incremental adjusted EBITDA as the company scales towards $1 billion in revenue.

Ron Josey inquired about the benefits of expanding instant quoting capabilities on customer conversion rates. He also asked for details on the pricing environment and adjustments made during the quarter, particularly concerning macro trends and tariffs.

Answer

CEO Randy Altschuler explained that expanding the scope of instant quoting across more processes and materials is a key focus to reduce friction and increase order speed. CFO James Miln clarified that tariffs are an input into their dynamic pricing algorithms, and the marketplace adjusts to reflect cost changes, offering customers flexibility with both domestic and global sourcing options to navigate the environment.

Ronald Josey asked about the long-term implications of tariffs on sourcing, the reasons for the lighter Q1 marketplace gross margin, and new President Sanjeev Sahni's initial impressions and focus areas.

Answer

CEO Randy Altschuler suggested tariffs will drive a long-term trend of multi-sourcing for resilience. CFO James Miln explained the margin dip was due to a planned multi-million dollar investment in the global sourcing strategy, with a significant rebound expected in Q2. President Sanjeev Sahni highlighted Xometry's AI moat and highly diversified global supplier network as key competitive strengths.

Ronald Josey asked to unpack the drivers of the 'land and expand' strategy's success, differentiating between sales motion changes and marketplace menu expansion. He also sought insight into the confidence behind the Q1 gross margin recovery.

Answer

CEO Randolph Altschuler credited enterprise success to a combination of improved sales team segmentation and technology tools like Teamspace, ERP integrations, and the CAD plug-in. CFO James Miln expressed confidence in margin recovery based on a multi-year track record of expanding margins through data and network effects, framing the Q1 dip as a deliberate, temporary investment to scale new geographies.

Ronald Josey asked how the expansion of instant quoting capabilities has impacted conversion rates and inquired about the outlook for marketplace gross margins, referencing a previous target of around 35% by year-end.

Answer

CEO Randy Altschuler explained that expanding the instant quoting menu helps attract and convert new buyers, contributing to a record number of net new active buyers in Q3. It also deepens engagement with existing customers, leading to a record increase in accounts spending over $50,000. CFO James Miln attributed gross margin expansion to AI-driven pricing and a growing supplier network, reaffirming the company's target of approaching 35% marketplace gross margin by the end of the year and a long-term range of 35% to 40%.

Ronald Josey asked about ACV's conversion rates in Q4 2025 and their outlook for 2026, and requested insights into the factors driving outsized unit growth improvements in specific regions like the Carolinas, South Florida, Southern California, and East Texas.

Answer

George Chamoun (CEO, ACV Auctions) reported a year-over-year improvement in Q4 conversion rates, attributing it to the 'no reserve' or 'guarantee' offering, which now represents 20% of total units and drives high bidder activity (over 10 bidders per car). He also mentioned stricter marketplace rules improving buyer NPS. William Zerella (CFO, ACV Auctions) added that sell-through in Q4 was up 150 basis points year-on-year. For regional growth, George highlighted strategies such as promoting strong territory managers to regional directors, adding more local staff, and leveraging inspectors for demand-side buying activity, leading to strong execution and market share gains.

Ronald Josey asked about ACV's Q4 conversion rates, inquiring if they returned to normal seasonality and the outlook for 2026. He also sought to understand the factors driving outsized unit growth in specific regions like the Carolinas, South Florida, Southern California, and East Texas, and what this means for future growth.

Answer

CEO George Chamoun stated that Q4 conversion rates were up year-over-year, attributing this to the success of the 'no reserve' or 'guarantee' offering, which is now over 20% of total units and driving higher bidder activity (over 10 bidders per car). CFO William Zerella added that sell-through in Q4 was up 150 basis points year-on-year. George Chamoun explained that strong regional growth was driven by strategic talent deployment, adding territory managers and inspectors, and effective differentiation of ACV's offerings.

An analyst on for Ron Josey at Citigroup inquired about the evolution of dealer conversations and their appetite for cross-selling offerings like ACV MAX in the current macro environment, and asked for an update on ClearCar's go-to-market success.

Answer

CEO George Chamoun reported that ACV MAX had a record bookings quarter and reiterated their strategy of using data services to build long-term wholesale partnerships rather than to maximize immediate revenue. He noted ClearCar's primary success has been in helping dealers acquire vehicles from their own service lanes. A future enhancement will combine the guarantee offering with both ClearCar and ACV MAX.

Ronald Josey inquired about Fiverr's multi-quarter execution plan, specifically how investments in matching, product, go-to-market, and operations will unfold, and the prioritization of product development before enterprise go-to-market. He also asked about Fiverr's M&A strategy and overall capital allocation given the company's $300 million cash balance.

Answer

CEO Micha Kaufman explained that investments prioritize high-end, high-skilled projects, aiming for GMV growth by 2027. He detailed the need to rebuild and reinvest in the platform for nuanced matching, sophisticated fulfillment, and expanding go-to-market for high-value and AI-native use cases. President and CFO Ofer Katz added that the $300 million cash balance is growing and will be used for disciplined tuck-ins and larger M&A transactions that support the high-end flywheel.

Ronald Josey asked about Fiverr's investment strategy across matching, product, go-to-market, and operations, specifically how these areas unfold and if product development precedes enterprise go-to-market. He also inquired about Fiverr's M&A strategy and capital allocation given the $300 million cash balance.

Answer

Micha Kaufman (Founder and CEO, Fiverr) explained that investments prioritize high-end, high-skilled, larger scope projects to drive GMV growth in 2027 and beyond, requiring rebuilding and reinvestment in the platform's matching, fulfillment, and collaboration capabilities, including adapting for AI agents. Ofer Katz (President and CFO, Fiverr) added that the growing cash balance allows for disciplined capital allocation, seeking tuck-ins and larger M&A transactions that support the high-end flywheel.

Ron Josey asked for an update on the progress of Fiverr's managed services offering, the broader shift to upmarket clients, and for more details on Fiverr Go's impact on conversion rates.

Answer

Micha Kaufman, Founder & CEO, explained that the upmarket strategy is succeeding, with over 50% of marketplace GMV now from transactions over $200. This shift towards larger, more sophisticated customers reduces exposure to macro-sensitive SMBs. Regarding Fiverr Go, he highlighted a 50% jump in seller usage, noting it significantly improves conversion rates and efficiency, with a long-term vision for it to become a smart AI agent for sellers.

Ronald Josey inquired about the progress and future rollout of Fiverr Go, given its strong initial results, and asked for insights on the stable macro demand environment and the drivers behind the strong Marketplace revenue.

Answer

CEO Micha Kaufman stated that Fiverr Go has achieved product-market fit, calling it a 'satisfaction, confidence and conversion machine.' He explained the next phase is scaling the product across more categories while maintaining quality. Kaufman attributed the Q1 revenue strength to seizing seasonal opportunities in the business solutions segment, which is paying off after long-term investment, rather than an improvement in the overall macro environment.

Ronald Josey asked about the potential for Fiverr Go to expand across all service categories and sought clarity on the drivers behind higher average spend from newer buyer cohorts.

Answer

CEO Micha Kaufman stated that while GenAI cannot yet handle all categories, the new developer ecosystem will accelerate expansion by allowing third parties to build models on Fiverr's data. CFO Ofer Katz attributed higher cohort spending to the upmarket strategy, including Fiverr Pro, dynamic matching, a focus on high-value buyers, and growth in complex categories like Programming & Tech.

Ronald Josey of Citigroup inquired about the recent demand stabilization mentioned by management, asking for more context on what is driving it, and questioned the product strategy for retaining the higher-quality buyers being attracted by new offerings like Dynamic Matching and Hourly Contracts.

Answer

CEO Micha Kaufman clarified that the "stabilization" refers to September and early October trends being less volatile than June-August, but he is not calling it a new trend yet due to upcoming elections and seasonality. Regarding buyer retention, he explained that Fiverr's strategy is to eliminate friction points common in offline agency work by building simple, AI-integrated tools. This focus on higher-value customers is proving successful, as these cohorts show better retention, spend, and frequency.

Ron Josey asked about the growth evolution of Instacart's top enterprise partners, as highlighted in the shareholder letter, specifically addressing observed dips and subsequent flattish growth before returning to average after becoming non-exclusive.

Answer

CFO Emily Reuter clarified that the chart demonstrated continued strong growth for enterprise partners even after becoming non-exclusive, reinforcing confidence in Instacart's strategy. She noted that over 80% of the business is non-exclusive, and fluctuations are typically due to seasonality or individual retailer launches.

Ron Josey with Citi followed up on a chart in the shareholder letter, asking about the growth evolution of Instacart's top enterprise partners after becoming non-exclusive, specifically addressing initial dips and subsequent flattish growth before returning to the 10% average.

Answer

CFO Emily Reuter clarified that the chart aimed to show continued strong growth for non-exclusive enterprise partners, which constitute over 80% of Instacart's business. She attributed fluctuations in the chart to factors like seasonality or individual retailer launches rather than a specific trend related to non-exclusivity.

Ronald Josey inquired about the impact of Instacart's affordability investments, such as price parity partnerships and couponing, on order growth. He also asked about the financial impact of the recent Super Bowl advertisement.

Answer

CEO Fidji Simo confirmed that affordability initiatives are core drivers of order growth and user engagement, noting customers saved $1.2 billion in 2024. CFO Emily Maher added that the Super Bowl ad was not an incremental expense but was funded by reallocating the existing marketing budget, with a focus on brand awareness.

Ronald Josey asked for details on how affordability initiatives, which led to an 18% increase in savings per order, contributed to the reacceleration of order growth to over 10% year-over-year.

Answer

CEO Fidji Simo attributed the success to a multi-pronged affordability strategy, including deep integrations with grocer loyalty programs like Kroger's fuel points, EBT SNAP availability, and weekly flyers with price parity. She also highlighted the new 'Super Saver' zero-delivery-fee option, which improves conversion and retention among price-sensitive new users, directly fueling order growth and expanding the total addressable market.

Ron Josey inquired about the early testing experience and interactivity of the new AI-powered search, and the milestones for Services and Experiences to become a material part of the business within the three to five-year timeframe.

Answer

Brian Chesky, CEO of Airbnb, detailed the AI strategy, starting with customer service, which reduced human agent contact by 15% in the U.S. He described AI-powered search as evolving from free-text input to conversational multi-turn interactions, with personalized, natural language results. For Services and Experiences, milestones involve achieving 'product-market fit' in key cities like Paris and LA, learning from different traveler segments, and then rolling out a deep playbook city by city.

Ron Josey asked for an update on Airbnb's AI-powered search, including early testing insights and its impact on user interactivity. He also sought clarification on milestones for services and experiences, given their rapid supply growth despite a 3-5 year timeline for material business contribution.

Answer

Airbnb CEO Brian Chesky detailed the AI strategy, starting with customer service (15% reduction in human contact in the U.S.) and progressing to AI-powered conversational search with custom UI. For services/experiences, he outlined a focus on achieving "product-market fit" in pilot cities (Paris, LA) by understanding diverse traveler needs and building a scalable playbook, projecting 3-5 years for material contribution.

Ron Josey asked about the merchandising strategy for Experiences, how learnings from test markets like Paris will be scaled, and for an update on a potential loyalty program.

Answer

CEO Brian Chesky detailed a merchandising strategy using personalized carousels and increased in-app touchpoints, with learnings from a dedicated team in Paris being rapidly scalable. On loyalty, he acknowledged a competitive disadvantage and said to expect a novel, non-traditional program in the future, though not imminently, to reward the company's large base of repeat customers.

Ronald Josey asked about the upcoming May 13th product launch, its integration plans, and its contribution to guidance. He also inquired how Airbnb's affordability initiatives could boost bookings amid trends like staycations.

Answer

CFO Ellie Mertz stated the new launch's top-line impact will be modest initially but will scale over time, while associated expenses will more significantly impact EBITDA in the second half of the year. She agreed that in the current environment, Airbnb's diverse and affordable offerings, such as drive-to destinations, present an opportunity to merchandise listings that are more relevant to cost-conscious consumers.

Ronald Josey asked for insights from recent product enhancements in search and merchandising and how they inform new product development. He also inquired about the drivers behind the acceleration in Nights and Experiences Booked.

Answer

CEO Brian Chesky detailed numerous product optimizations, including personalized welcomes, mobile app pushes, and a simplified checkout page, which have boosted conversion. He also highlighted affordability and reliability improvements. CFO Ellie Mertz added that these optimizations lifted the exit growth rate by a couple of hundred basis points, contributing to the strong Q4 demand.

Ron Josey asked about Pinterest's strategy for agentic commerce and search, particularly with the new Pinterest Assistant, and inquired about the normalization of UCAN growth given past tariff impacts.

Answer

CEO Bill Ready detailed Pinterest's evolution into an AI-driven shopping assistant, emphasizing its proactive, agentic nature and visual-first experience. He highlighted the use of proprietary and open-source AI models for cost efficiency. CFO Julia Donnelly addressed UCAN performance, noting continued moderation due to tariff-related margin pressure on large retailers, but pointed to strength in emerging verticals and mid-market advertisers as future growth drivers.

Ron Josey inquired about Pinterest's strategy for agentic commerce and search, particularly with the Pinterest Assistant launch, and asked Julia Donnelly about the normalization of UCAN growth given tariff impacts.

Answer

CEO Bill Ready detailed Pinterest's evolution into an AI-driven shopping assistant, emphasizing its proactive, visual-first approach and the cost efficiency of proprietary and open-source AI models. CFO Julia Donnelly confirmed Q3 played out as expected, noting UCAN retailer pullbacks due to tariffs, and reiterated confidence in mid-to-high teens revenue growth driven by emerging verticals and SMBs.

Ron Josey of Citigroup Inc. inquired about evolving usage trends, particularly how the rise of Gen Z to 50% of MAUs is impacting search behavior and direct traffic to the platform.

Answer

CEO Bill Ready explained that Gen Z increasingly views Pinterest as a visual search engine, a trend supported by a recent Adobe study. He highlighted that this behavior is driven by AI-powered recommendations that create a personalized experience, leading to strong user growth across all demographics and geographies. Ready emphasized that 85% of users come directly to the mobile app, indicating Pinterest is a primary destination for visual discovery.

Ron Josey from Citigroup inquired about Pinterest's overall usage trends, particularly how the platform's use is evolving with Gen Z now comprising over 50% of MAUs and the growing trend of users starting their search journeys directly on Pinterest.

Answer

CEO Bill Ready highlighted that user growth is strong across all geographies and generations, with Gen Z viewing Pinterest as a primary search engine due to its visual appeal. He noted that AI paired with curation signals makes Pinterest 'just get' the user, driving direct traffic from its 100% logged-in user base.

Ronald Josey asked for more detail on emerging advertiser verticals like financial services and inquired about the benefits of having 25% of code generated by AI.

Answer

CFO Julia Donnelly noted that verticals like tech, telecom, and entertainment are also growing. She explained that financial services is a natural fit as users plan major life events on Pinterest. Regarding AI, she stated it accelerates engineering velocity and employee productivity, enabling prudent investment in high-ROI initiatives.

Ronald Josey of Citigroup followed up on the compounding effect of products like Direct Link, asking about advertiser adoption and the benefits of the upcoming ROAS bidding launch.

Answer

CEO Bill Ready detailed a strategic sequence: Direct Link created value (clicks), which drove adoption of measurement tools, which then proved ROI and led to increased budgets. He noted that for some of Pinterest's largest advertisers, lower-funnel objectives now represent over 80% of their spend. He positioned Performance+ and ROAS bidding as the next step to make it easier for advertisers to capitalize on this proven value.

Ronald Josey asked for more detail on shoppable engagement rates, the impact of AI on engagement, and the typical adoption timeline for lower-funnel tools like Direct Link and CAPI.

Answer

CEO Bill Ready pointed to the steady improvement in the weekly-to-monthly active user (WAU/MAU) ratio as the key indicator of deepening engagement, driven by sessions with clicks and saves. He reiterated that lower-funnel tools have a multi-quarter adoption cycle but create a durable, compounding flywheel effect where increased user actionability generates richer data, leading to better recommendations and more monetization.

Ron Josey asked about Uber's loyalty gains, specifically Uber One benefits, and the impact of short-term investments. He also sought an update on U.S. trip growth drivers, insurance rates, and the benefits from newer rider segments like seniors and teens.

Answer

CEO Dara Khosrowshahi reported 36 million Uber One members, with two-thirds of delivery gross bookings and increasing mobility penetration, noting that early membership is profit-negative but becomes positive as members mature and cross-platform engagement increases. CFO Prashanth Mahendra-Rajah detailed progress on insurance, citing legislative wins (e.g., California), tech improvements like the Driving Insights dashboard, and commercial negotiations, expecting hundreds of millions in savings to be passed to customers through lower fares in 2026.

Ron Josey asked about short-term investments aimed at loyalty gains through Uber One benefits, the impact of insurance rates, and the benefits derived from newer rider segments like seniors and teens on U.S. trip growth.

Answer

CEO Dara Khosrowshahi discussed Uber One's growth to 36 million members across 42 countries, detailing its benefits and explaining that initial membership is profit-negative but becomes profitable after six months due to increased usage and retention. CFO Prashanth Mahendra-Rajah outlined progress in insurance strategy via legislation (e.g., California), tech (Driving Insights dashboard, Advantage mode), and commercial negotiations, anticipating hundreds of millions in savings to be passed to customers in 2026.

Ronald Josey asked about the primary drivers of growth in Delivery MAPs and frequency, and inquired about other initiatives aimed at boosting overall platform frequency.

Answer

CEO Dara Khosrowshahi attributed Delivery's audience growth to the strength of the core Uber Eats brand, significantly aided by cross-promotion from the Mobility platform, which provides one-third of new Delivery users. He stated that frequency is driven by continuous improvements in service quality (selection, on-time rates) and the success of the Uber One membership program. Members, now numbering 25 million, spend three times more than non-members and have higher retention rates.

Ronald Josey (Citi) asked CFO Susan Li about the adoption rates of Meta's end-to-end automated ad solutions, which have reached a $60 billion annual run rate. He also inquired how these automation efforts, combined with ranking and recommendation changes like Andromeda, GEMS, or Lattice, are collectively driving a higher return on investment (ROI) for advertisers.

Answer

CFO Susan Li detailed the ongoing expansion of Advantage Plus, including the Q3 global rollout of streamlined campaign creation for lead campaigns, which provides end-to-end automation for sales, app, or lead objectives. She highlighted that Advantage Plus drives performance gains, with lead campaigns seeing a 14% lower cost per lead on average. Susan Li noted significant opportunity to increase adoption, as many advertisers only use these automated solutions for a portion of their campaigns, and Meta is focused on continuous performance improvements and broader integration.

Ronald Josey inquired about the adoption rates of Meta's end-to-end automation solutions, such as Advantage+, and how these automation and ranking changes (like Andromeda, GEMs, or Lattice) are driving higher ROI for advertisers.

Answer

CFO Susan Li detailed the global rollout of streamlined campaign creation for Advantage+ lead campaigns, enabling end-to-end automation for audience selection, ad placement, and budget optimization. She noted that Advantage+ drives performance gains, such as a 14% lower cost per lead for advertisers using it. She also emphasized the significant opportunity to grow Advantage+ adoption, as many advertisers only use portions of the automated solutions.

Ron Josey asked about engagement growth for Meta AI, particularly on WhatsApp, how next-gen models will drive adoption, and the potential for monetizing search and queries.

Answer

CEO Mark Zuckerberg confirmed a direct correlation between model improvements and user engagement, stating that as models like Llama get better, usage naturally increases. He expressed excitement for the product roadmap but declined to share specific future capabilities or monetization plans for Meta AI queries at this time.

Ron Josey of Citi inquired how Meta's next-generation models will drive further adoption and personalization for Meta AI, which has reached a billion users. He also asked about the potential for monetizing search and queries, particularly within WhatsApp.

Answer

CEO Mark Zuckerberg explained that engagement with Meta AI directly correlates with model improvements, so as new versions like Llama 4.1 are released, usage is expected to grow. He noted the models are general-purpose, so improvements benefit a wide range of user queries. He declined to share a specific roadmap but expressed excitement about future capabilities.

Ron Josey from Citi asked for more details on Meta AI's growing engagement, particularly on WhatsApp, and how next-generation models will drive further adoption. He also inquired about the potential to monetize search and queries on the platform.

Answer

CEO Mark Zuckerberg confirmed a direct correlation between model improvements and user engagement, stating that as models like Llama get better, usage naturally increases across a wide range of tasks. While he declined to share a specific product roadmap or monetization timeline, he expressed strong optimism about future capabilities and the growth trajectory.

Ronald Josey of Citigroup asked for more details on Mark Zuckerberg's comment about 'getting back to the OG Facebook' and for an update on how the user experience for Meta AI is evolving based on current usage patterns.

Answer

CEO Mark Zuckerberg stated his focus for the year is on making Facebook more culturally influential, which may involve near-term trade-offs to focus on specific product areas, hinting at a return to some of its original uses. CFO Susan Li shared that Meta AI is most used on WhatsApp for information-seeking and on Facebook for getting context on feed content. She noted the roadmap is focused on personalization, including improving memory and content recommendations.

Ronald Josey inquired about the product evolution and monetization path for Threads, which now has 275 million MAUs. He also asked for more detail on the drivers of the 11% year-over-year increase in ad pricing.

Answer

CFO Susan Li stated that Threads' monetization is not expected to be a meaningful driver in 2025, as the focus remains on user growth and feature development. Regarding ad pricing, she attributed the 11% increase to strong advertiser demand driven by improved ad performance. She emphasized that the key input metric is conversion growth, which continues to outpace impression growth and drives higher value for advertisers.

Ronald Josey asked how evolving web entry points, including new tools like OpenAI and app strategies, might change Booking Holdings' approach to attracting non-direct traffic and the increasing importance of brand. He also inquired about the impact of AI innovations (e.g., AI trip planner, personalized homepage) on conversion and cancellation rates.

Answer

Glenn Fogel, CEO and President, explained that while the goal isn't 100% direct traffic, the company aims to optimize direct bookings by providing more customer value, improving service, and enhancing brand awareness, particularly in areas like U.S. homes. He stressed that this is a continuous process of 'blocking and tackling.' Ewout Steenbergen, EVP and CFO, detailed the positive impact of AI tools, noting improved conversion rates due to easier and faster booking paths. He also reported slightly lower cancellation rates year-over-year, attributing it to customers finding exactly what they need. Steenbergen highlighted significant benefits in customer service, including reduced contact rates, faster handling times, higher satisfaction, and a year-over-year decrease in absolute customer service costs despite volume growth.

Ronald Josey asked how the evolving web entry points, including new AI tools, might change Booking Holdings' strategy to attract non-direct traffic, emphasizing the importance of brand. He also questioned the impact of AI innovations on cancellation and conversion rates.

Answer

CEO and President Glenn Fogel explained that while 100% direct traffic isn't optimal, the goal is to increase direct bookings by providing more value, improving service, and enhancing brand awareness, particularly in areas like U.S. homes. He stressed that it's a continuous process of execution. EVP and CFO Ewout Steenbergen noted that new AI tools are helping conversion rates by enabling easier and faster booking paths, leading to slightly lower cancellation rates year-over-year. He also highlighted significant benefits in customer service, with reduced contact rates, faster handling times, and higher satisfaction, leading to lower absolute customer service costs despite volume growth.

Ron Josey from Citi asked about the tangible results from the new natural language search feature and the long-term evolution of the P&L, particularly marketing leverage, given the increasing mix of direct bookings.

Answer

CEO Glenn Fogel implied the natural language search feature was successful, as underperforming features are removed. CFO Ewout Steenbergen described a 'double discipline' philosophy: driving operating leverage from scale while making disciplined reinvestments in growth areas like GenAI. He noted this year's plan involves using $150 million in savings to fund $170 million in investments to accelerate future top-line growth.

Ron Josey of Citi inquired about the conversion rates and repeat usage of the new natural language search feature and asked about the long-term P&L evolution, particularly marketing leverage, given the growth in direct channels.

Answer

CEO Glenn Fogel stated that while not providing specific metrics, the natural language feature remains live because it is performing positively. CFO Ewout Steenbergen addressed the P&L, describing a "double discipline" philosophy of driving operating leverage from scale while making disciplined reinvestments in high-growth areas like fintech and GenAI to accelerate future top-line growth.

Ron Josey from Citi inquired about the rollout of the Cost Per Incremental Dollar (CPID) model, asking for details on the third-party validation that showed better results and how the six new pilots compare to earlier ones.

Answer

Founder and CEO Brian Leach explained that the third-party validation uses an independent panel to measure lift between exposed and unexposed audiences, confirming incremental sales and a more favorable CPID, which suggests Ibotta's internal metrics are conservative. He added that the new pilots involve some of the world's largest CPG companies, elevating conversations from promotions teams to senior P&L owners.

Ronald Josey asked about the potential constraints or 'governors' on expanding the CPID (cost per incremental dollar) program with the initial successful clients and the key milestones required for a broader rollout to all clients.

Answer

Bryan Leach, Founder and CEO, identified that expansion with current CPID clients depends on aligning with their budget cycles and completing deep-dive audits with their finance and measurement teams to build trust. For a broader rollout, he highlighted the need to automate currently manual analytical processes and implement machine learning for targeting and optimization. He emphasized that these steps are crucial to scale the offering from a few pilot clients to their entire client base efficiently.

Ronald Josey requested more detail on the necessary changes to the sales force and how the new CPID measurement framework is a significant improvement for CPGs.

Answer

CEO Bryan Leach described the sales force evolution as a series of optimizations to support a more analytical, high-level sale, led by the new CRO. He explained that the CPID framework is a major leap from standard ROAS because it uses a control group to measure true, incremental, and profitable sales lift in near real-time, transforming promotions into an 'always-on' performance marketing channel.

Ronald Josey asked about the early results from the Instacart pilot, the nature of the associated costs impacting margins, and the drivers behind the strong 20% year-over-year growth in redemptions per redeemer on the third-party network.

Answer

CEO Bryan Leach noted that early Instacart results show promise for high redemption rates and will help grow the general merchandise and beverage categories. CFO Sunit Patel explained that Instacart costs are unique as Ibotta is assuming an existing promotions business, leading to a near-term step-up in COGS, but these costs are relatively fixed and shouldn't impede long-term margin expansion. Bryan Leach added that the 3PP metric growth reflects network maturation and a favorable mix shift.

On behalf of Ron Josey, Jake from Citi asked about the key drivers behind the increase in the subscription revenue mix and the significant uptick in the annual subscription revenue retention rate to 93.4%. He also requested an update on the Stability AI litigation, specifically the strategy behind dropping copyright claims in the UK and the company's confidence in the US case.

Answer

CFO Jennifer Leyden attributed the subscription growth to momentum in e-commerce (iStock, Unsplash Plus) and the core Premium Access offering. She stated the retention rate improvement was driven by lapping the Hollywood strikes, strong corporate growth, and the stabilization of lower-retention e-commerce subscribers. CEO Craig Peters added that the UK copyright claim was dropped because discovery could not prove the AI training occurred within UK jurisdiction, and that the core training-related claims are being actively pursued in the US.

Ronald Josey of Citigroup inquired about the drivers behind the subscription mix shift towards corporate clients, a potential slowdown in subscriber growth, and whether the various headwinds mentioned for Q1 2025 are now largely resolved.

Answer

CEO Craig Peters explained the corporate shift is a long-term trend of companies building in-house creative teams and growth in SMBs on iStock. He noted that optimizing the subscription mix on iStock may slow subscriber count growth but that revenue retention remains strong. CFO Jennifer Leyden clarified that the revenue recognition item is a recurring accounting entry, the impact from the LA fires is expected to linger but is included in guidance, and that broader macro uncertainty is factored into their outlook to the best of their ability.

Ron Josey asked for more detail on DashPass cohort trends, particularly for newer members, and requested any updated thoughts on the pending Deliveroo integration.

Answer

CFO Ravi Inukonda reported that DashPass had a very solid quarter, driven by continuous product improvements in selection, quality, and affordability. He noted that even cohorts from five to six years ago are engaging at higher levels. CEO & Chair Tony Xu commented on Deliveroo, stating the deal is anticipated to close in Q4, subject to regulatory review. He affirmed that, should it close, the business will be run with DoorDash's philosophy of investing for long-term margin dollar growth.

Ronald Josey asked for more insight into how the value proposition of DashPass is being extended to drive accelerating growth. He also inquired about the company's thoughts on the recently raised delivery fee cap in New York City.

Answer

CEO Tony Xu reiterated that the focus for DashPass is to continuously improve the product to increase usage and consumer surplus. Regarding New York City, he stated that such policies often harm Dashers, merchants, and consumers by reducing opportunities and raising prices, but DoorDash remains optimistic about working with officials to find common-sense solutions.

Ron Josey from Citi asked a high-level question about what will unlock the full monetization of TV's scale and engagement. He also inquired about the company's investments in brand building and awareness, given the flat sales headcount.

Answer

CEO Mark Douglas stated the key unlock is applying data and AI to bring the large SMB market into TV advertising, a segment previously excluded. He emphasized that making TV measurable and accessible for these businesses is the primary growth driver. CFO Patrick Pohlen clarified that the recent increase in S&M spend was driven by marketing investments to build brand awareness with this long-tail of SMBs, not by increased headcount.

Ron Josey of Citigroup asked how Amazon is adopting GenAI internally to improve its own efficiencies and speed to market, referencing a recent internal memo from the CEO.

Answer

CEO Andy Jassy described AI as the 'biggest technology transformation of our lifetime' and confirmed Amazon is aggressively embracing it internally. He cited examples like the coding agent Curo and AI in the Amazon Connect service to enhance productivity. The primary goals are to automate rote work, allowing teams to invent more quickly and expansively for customers.

Ron Josey asked how Amazon is adopting Generative AI internally to improve efficiencies and speed to market, referencing a recent blog post by the CEO.

Answer

CEO Andy Jassy confirmed that Amazon is aggressively embracing AI internally to reshape how work is done. He cited examples like using the coding agent Curo to accelerate development and leveraging AI in the AWS Connect service to improve customer service productivity. The primary goals are to invent more quickly for customers and make employees' roles more impactful by automating rote tasks.

Ron Josey from Citi asked for more detail on the strategy to make Reddit Answers a central part of the user experience and questioned how advertiser relationships have evolved over the past year amid strong growth.

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CEO Steve Huffman explained the plan is to unify the existing native search with Reddit Answers into a single, prominent search experience within the app. COO Jen Wong described advertiser relationships as deepening, noting the creation of a global accounts team, integration with third-party tools like Smartly, and a trend of advertisers utilizing Reddit for full-funnel campaigns.

Ron Josey from Citi asked for more detail on the strategy to make Reddit Answers a more central part of the user experience and questioned how relationships with advertisers have evolved over the past year.

Answer

CEO Steve Huffman explained the plan is to unify the existing native search with the Reddit Answers product into a single, prominent search experience within the app. COO Jen Wong detailed that advertiser relationships have deepened, leading to the creation of a global accounts team for top clients, integration with third-party tools like Smartly to meet demand, and seeing more advertisers utilize Reddit's full-funnel capabilities.

Ronald Josey asked about the current macroeconomic advertising environment and its potential impact on Reddit, as well as the outlook for daily active user (DAU) growth given recent Google algorithm changes.

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COO Jen Wong stated that while there is market uncertainty, it's mostly 'business as usual,' and Reddit serves as a key resource for users and brands during volatile times. CEO Steve Huffman added that while short-term user growth may see 'bumps' from Google's changes, noting high-teens DAU growth in April, the long-term strategy is driven by product improvements, not external factors.

Ronald Josey of Citigroup Inc. inquired about the early results and user query types for the new 'Reddit Answers' feature. He also asked for details on the recent Google Search algorithm change and its impact on engagement and revenue.

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CEO Steve Huffman described Reddit Answers as a promising beta, highlighting its ability to surface deep, subjective answers from Reddit's corpus, such as fan theories or author recommendations. Regarding the Google algorithm change, Huffman noted it was a temporary fluctuation primarily affecting logged-out users with no revenue impact, and that traffic had since recovered. He added that an increase in searches for the term 'Reddit' suggests strong user intent to reach the platform regardless of search engine referrals.

Ronald Josey of Citigroup Inc. asked for details on the drivers behind the Q3 revenue upside, specifically the mix between ad stack improvements and new advertiser demand. He also inquired about the balance between investments and achieving sustained profitability.

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COO Jen Wong attributed revenue growth to vertical diversification, lower-funnel ad stack improvements driving more conversions, and 69% YoY international growth. CFO Drew Vollero added that the company has a bias to invest due to measurable, short-term ROI, noting that cost growth accelerated in Q3 to fuel revenue.

Ron Josey from Citi asked how quickly new ADESA sites reach efficiency levels comparable to legacy IRCs. He also asked for examples of e-commerce experience changes that have improved conversion rates.

Answer

CEO Ernie Garcia explained that reaching peak efficiency at ADESA sites will take time, as their current low utilization makes them a near-term investment in future growth. Regarding the e-commerce experience, he noted that while the focus has been on efficiency, they are working on making it more 'fun' but chose to keep specific initiatives confidential for now.

Ron Josey from Citi inquired about how quickly new ADESA sites reach efficiency levels comparable to legacy IRCs and asked for examples of e-commerce changes that have improved conversion rates.

Answer

CEO Ernie Garcia explained that it will take time for ADESA sites to reach peak efficiency, as they are currently at a much lower utilization rate, making them a strategic investment in future growth. Regarding e-commerce, he noted the focus has been on efficiency, which makes the experience faster and simpler, but declined to share specific 'fun' enhancements they are working on.

Ronald Josey asked about the near-term macro environment, including the impact of tariffs, and how Carvana balances reinvesting efficiency gains into growth versus letting them flow to profitability.

Answer

CEO Ernie Garcia stated that the business model is adaptive to macro factors like tariffs and the primary focus is on creating fundamental gains. He explained that the company plans to share the majority of these future gains with customers to further separate its value proposition and drive growth. Garcia emphasized that with a Q1 EBITDA margin of 11.5%, Carvana is already in its long-term target range and sees a clear path to further improvements through fixed cost leverage and operational efficiencies.

Ronald Josey of Citigroup inquired about Carvana's strategy for managing inventory as a growth lever versus the risk of depreciation, and how the company is leveraging AI to improve search, merchandising, and the overall user experience.

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CEO Ernie Garcia explained that Carvana views selection as a powerful customer benefit and will continue to invest in growing inventory, balancing the resulting conversion lift against depreciation costs. He also expressed strong conviction in AI's transformative potential, highlighting Carvana's unique advantages in scale and data. Garcia mentioned their chatbot, Sebastian, as an early application of a broader AI strategy to enhance the entire customer journey.

Ronald Josey of Citi requested more details on the specific search and recommendation product enhancements driving the core marketplace and asked about the profile of clients being acquired through the updated go-to-market strategy.

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CEO Hayden Brown identified new features like semantic search and an enhanced client dashboard as key drivers of positive client metrics. CFO Erica Gessert added that the optimized marketing spend is attracting higher LTV clients, evidenced by a 5% YoY increase in average hours per contract and a 12% YoY rise in fixed-price spend per contract.

Speaking on behalf of Ron Josey from Citigroup, a representative asked for details on hotel search performance, including learnings from AI-generated highlights and plans for AI Smart Search. He also inquired about the performance of localized marketing campaigns in Brazil and Japan.

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Executive Johannes Thomas explained that AI highlights differentiate trivago by focusing on unique hotel features, which improves user comparison and conversion. He noted the AI search experience is now integrated into the main search bar, allowing for complex semantic queries. Regarding localized campaigns, he used Japan as an example where the objective was to build brand awareness and familiarity, a goal that has been successful so far. He reiterated that the company sees marketing elasticity across all segments, justifying further investment.

Ronald Josey asked about the progress of expanding AI-powered hotel highlights to 250,000 hotels and its impact on conversion. He also inquired if the performance marketing headwinds from Google's ad format changes were improving sequentially and followed up on the conversion rate impact from the new content summaries.

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Executive Johannes Thomas clarified that the initiative was about expanding AI-generated *content* summaries, not hotel *supply*, and confirmed it has been a relevant driver of conversion improvements. Regarding Google, he stated that the new ad formats have stabilized, and trivago's teams are gradually becoming more competitive within them. He reiterated that the content initiative is one of several activities that have contributed to a substantial, gradual increase in conversion rates throughout the year.

Ronald Josey asked for more detail on the drivers behind the improving direct response advertising business on YouTube, questioning the role of tools like Demand Gen and PMAX versus increased user engagement on Shorts.

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Philipp Schindler, SVP and Chief Business Officer, attributed the strength in direct response to multiple factors, highlighting the success of AI-powered tools that help customers drive performance. He also expressed satisfaction with the monetization progress of Shorts, particularly in the U.S., where the gap with in-stream viewing is closing. CEO Sundar Pichai added a celebratory note on YouTube's 20th anniversary and its massive scale.

Ronald Josey asked for more details on Lithia's online strategy, the vision for growing Driveway and GreenCars, and whether significant online growth is expected in 2025.

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President and CEO Bryan DeBoer described the online channels as a key, fully integrated part of the ecosystem. He highlighted the launch of the 'MyDriveway' customer portal as a major step, which will onboard 70,000 financing customers to create a 'snowball effect' for engagement. He confirmed they are targeting a 50% volume lift for Driveway and GreenCars in 2025 and are already seeing positive early-year trends.

An analyst from Citigroup asked about the primary drivers behind the residential revenue segment's continued outperformance and questioned the go-to-market strategy following the hiring of a new head of agent sales, particularly regarding sales team integration.

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CFO Jeremy Hofmann attributed the residential revenue outperformance to conversion improvements, strong growth from Zillow Showcase, and solid performance from the new construction marketplace and software solutions like ShowingTime+ and Follow Up Boss. CEO Jeremy Wacksman added that the new sales leadership aims to create a more integrated, scaled go-to-market approach, eventually presenting 'one face to the industry' for all of Zillow's products.

Ron Josey asked for the key drivers behind residential revenue's outperformance against the industry and questioned the go-to-market strategy following the hiring of a new head of agent sales, particularly regarding the integration of various sales teams.

Answer

CFO Jeremy Hoffman attributed the outperformance to continued conversion improvements in Premier Agent, strong growth from Zillow Showcase, and solid contributions from the new construction marketplace and software solutions like ShowingTime+ and Follow Up Boss. CEO Jeremy Wacksman added that the new sales leadership aims to create a more integrated go-to-market approach, presenting 'one face to the industry' for all of Zillow's products.

Ronald Josey of Citigroup asked about the timing of the CEO transition and requested a detailed overview of the benefits of Zillow's enhanced markets strategy.

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Co-Founder Rich Barton explained the CEO transition timing was due to the company's strong strategic and financial position, crediting new CEO Jeremy Wacksman's leadership. CEO Jeremy Wacksman then detailed that enhanced markets are measured by revenue per total transaction value and provide customers with real-time touring, financing options through Zillow Home Loans, and access to a select network of high-performing agents, driving share gains.

Ronald Josey from Citigroup Inc. inquired about the strategy to grow the rentals business to its $1 billion revenue potential, focusing on the multifamily segment's growth and how the rentals platform deepens long-term customer relationships.

Answer

CEO Rich Barton framed rentals as a classic two-sided digital marketplace opportunity, leveraging Zillow's massive organic audience (demand) and unique long-tail inventory (supply). He noted the recent focus on the multifamily market is the next phase of growth. COO Jeremy Wacksman added that growth is driven by a flywheel of increasing renter demand through marketing and partnerships, which in turn attracts more property managers to the platform.

Ronald Josey inquired about the strategic shift from focusing on market share to 'quality share' and how this impacts the go-to-market strategy for subscriptions. He also asked for details on initiatives to acquire customers more efficiently through sales and marketing.

Answer

CEO Jeff Stibel clarified the focus is on 'quality share,' attracting high-intent customers who become long-term subscribers, using education, pricing, and packaging as levers. COO & CFO Noel Watson detailed marketing efficiency efforts like retesting spend levels, exploring new channels such as radio and direct mail, and on the sales side, enhancing training and testing new compensation structures to improve effectiveness.