Shweta Khajuria

Shweta Khajuria asked about the potential for churn and/or retention rates to improve markedly over time, given investments in Math, Music, and Chess and cross-platform benefits. She also inquired about the potential risk of new AI-powered competitors emerging faster due to AI making product creation easier.

Answer

Luis von Ahn (Co-Founder and CEO) noted that retention, especially paid retention, is stable and healthy. While multi-subject users have higher retention, and more users are learning multiple subjects, he doesn't expect a marked improvement in overall retention, though it's a possibility. Gillian Munson (CFO) confirmed that retention has been flat and is modeled to stay that way, but product improvements could help. Luis addressed AI competition by stating that while AI can accelerate building, it also applies to Duolingo. He emphasized the complexity of recreating Duolingo's sophisticated app and its strong distribution advantage, which historically has made it very difficult for new entrants to compete with its free product at scale.

Shweta Khajuria asked about the expected trajectory of retention rates, specifically if they are anticipated to improve markedly over time with investments in multiple subjects (math, music, chess) and potential cross-platform benefits. She also inquired about the risk of new AI competitors emerging faster due to AI making product creation easier.

Answer

CEO Luis von Ahn noted that retention, particularly paid retention, has been stable and healthy. While multi-subject users tend to have higher retention, and more users are engaging with multiple subjects, he stated that significant retention improvement is not currently modeled. CFO Gillian Munson concurred, emphasizing that product improvements benefit existing users but are not modeled for marked retention increases. Von Ahn addressed AI competition by acknowledging faster building with AI but stressed Duolingo's complex, highly engaged product, vast distribution, and the historical difficulty for new entrants to compete with its strong free offering.

Shweta Khajuria of Wolfe Research asked about the product experience of Duolingo's voice features compared to other AI translation apps and inquired about app download trends. She also followed up on DAU engagement, asking how trends in the US compared to other geographies.

Answer

CEO Luis von Ahn differentiated Duolingo by stating its focus is on teaching, not just translation, and expressed confidence in the 'video call' offering for that purpose. Both he and CFO Matt Skaruppa noted they do not track app download trends. Regarding geographic DAU trends, von Ahn explained that US growth has been below the company average, which he attributed to a historical lack of marketing spend in the expensive US market. He announced plans to begin spending small amounts on marketing in the US, similar to a strategy that successfully re-accelerated growth in Mexico.

Shweta Khajuria from Wolfe Research asked how Duolingo's voice experience compares to other AI translation apps, inquired about app download trends, and sought details on DAU engagement trends across different geographies, particularly the U.S.

Answer

CEO Luis von Ahn differentiated Duolingo's product as a teaching tool, not just a translator, and stated he and the CFO do not track app download trends. Regarding geography, von Ahn explained that U.S. DAU growth has slowed, which he attributes to a historical lack of marketing spend in the country. He compared this to Mexico, where initiating a small marketing spend significantly accelerated growth, suggesting a similar strategy will be tested in the U.S.

Shweta Khajuria asked for an update on the marketing manager strategy in France and Korea and inquired about trends in social media ad pricing and marketing ROI.

Answer

CEO Luis von Ahn Arellano reported that the marketing manager initiative is tracking well in France and is too new to judge in Korea, with plans to expand to Italy and Turkey. He clarified that since their renowned social media presence is almost entirely organic, they are not significantly impacted by shifts in social media ad pricing, as their paid performance marketing spend is minimal.

Shweta Khajuria asked about PubMatic's multifaceted partnership with Amazon, inquiring about Amazon's evolving role in the ad tech supply chain and its impact on the industry.

Answer

Rajeev Goel, Co-Founder and CEO, explained that PubMatic is one of three SSPs in Amazon's Certified Supply Exchange program, monetizes streaming inventory via Amazon Publisher Services and Fire TV devices, and handles omni-channel inventory through Amazon's Transparent Ad Marketplace. He noted Amazon is a top 5 DSP buyer and anticipates further growth.

Shweta Khajuria at Wolfe Research inquired about PubMatic's partnership with Amazon, Amazon's role in the ad tech chain, and its involvement on the supply side.

Answer

Rajeev Goel, Co-Founder and CEO of PubMatic, detailed multiple facets of the Amazon partnership, including PubMatic being one of three SSPs in Amazon's Certified Supply Exchange program, monetizing streaming inventory through Amazon Publisher Services (APS) and Fire TV devices, and handling omni-channel inventory via Amazon's Transparent Ad Marketplace. He noted Amazon is a top 5 buyer on PubMatic and anticipates further growth in 2026.

Shweta Khajuria asked about the long-term evolution of the ad tech industry given the merging of SSP and DSP functionalities, the specifics of the inventory changes causing the headwind, and the current DSP concentration.

Answer

Co-Founder and CEO Rajeev Goel explained that industry shifts toward performance, identity, and AI are driving a move to end-to-end platforms, a trend PubMatic is capitalizing on with Activate. CFO Steve Pantelick specified that the DSP headwind primarily impacted display formats, while CTV spend continued to grow. He also stated that the top two DSPs represent about half of total spending, but this concentration is declining as other buyers increase their spend.

Shweta Khajuria of Evercore ISI inquired about quarter-to-date advertiser demand trends and the company's strategic positioning for 2025 regarding headcount and operating expenses.

Answer

CFO Steve Pantelick stated that Q4 began well with double-digit growth in omnichannel video and strong political ad spend. He noted the core business, excluding a specific DSP change and political ads, grew 17% in Q3 and is guided for over 15% growth in Q4. For 2025, Pantelick explained the focus will shift towards greater efficiency and productivity, leveraging AI and slowing the pace of hiring, as key roles have been filled.

Shweta Khajuria of Wolfe Research requested an explanation of the Advertising Context Protocol (AdCP), its value proposition, Magnite's differentiated advantage, and its relation to CloudX. She also asked about the eventual impact of an agentic world on Magnite's share of ad dollars and total addressable market expansion, and the base case expectation and timeline for the Google Ad Tech case.

Answer

Michael Barrett (President and CEO, Magnite) explained AdCP as a protocol for agent-to-agent communication, highlighting Magnite's readiness and vast data repository as key differentiators for informed decisions and yield maximization. He clarified that CloudX is a mobile app mediation platform Magnite is integrating with, seeing it as an opportunity. He believes AI will lead to more efficient media spend and increased throughput. Regarding the Ad Tech case, he expects behavioral remedies "any week now" and believes Magnite will be a significant beneficiary if the playing field is leveled.

Shweta Khajuria of Wolfe Research requested an explanation of Magnite's Advertising Context Protocol (AdCP), its value proposition, and Magnite's differentiated advantage, including its relation to MAX and the eventual impact on ad dollars and market expansion. She also asked for the base case expectation, realistic outcome, and timeline for the Google Ad Tech antitrust case.

Answer

Michael Barrett, CEO, described AdCP as a protocol enabling agents to communicate, emphasizing Magnite's readiness and its vast data repository for informed decisions, inventory/price discovery, and scaling niche buys. He clarified that MAX is a mobile app mediation platform, representing a growth opportunity rather than disintermediation. The impact is increased efficiency and throughput. For the Google Ad Tech case, Michael Barrett noted timing is uncertain but expected behavioral remedies over structural ones, believing a level playing field would significantly benefit Magnite.

Shweta Khajuria requested clarification on the economics of The Trade Desk's OpenPath, the drivers behind Q4's CPM pressure and the subsequent rebound, and asked for more detail on the incrementality from new partnerships factored into the 2025 guidance.

Answer

CEO Michael Barrett explained that publishers using OpenPath are charged a fee by The Trade Desk, making it an economic "swap out" with Magnite's fees, resulting in unchanged costs for the publisher. CFO David Day attributed the Q4 CPM pressure to a post-election demand drop, with a strong rebound in January and February providing confidence. Regarding guidance, Day noted they are conservative on new deal timing and that incremental revenue flows through to EBITDA at a high rate.

Shweta Khajuria asked about the longer-term risks of agentic commerce, specifically concerning potential disruption to Etsy's take rates or sellers bypassing the platform to transact directly with AI agents. She also inquired about the durability and potential for increased frequency, given app, product, and marketing investments, and if any structural reasons limit Etsy's frequency.

Answer

CEO Kruti Patel Goyal acknowledged that agentic commerce is in very early stages, making it impossible to predict how it will evolve or which business aspects might come under pressure. She reiterated that early indicators are encouraging, supporting the hypothesis that agentic can be an incremental and powerful discovery channel. Kruti expressed confidence in Etsy's proven ability to adapt and evolve with changes in the market, despite the inherent unpredictability of future developments.

Shweta Khajuria posed two longer-term questions: first, the risk of AI agents disrupting Etsy's take rates or enabling sellers to bypass the platform, and second, the durability and potential for increased purchase frequency given Etsy's app, product, and marketing investments, and any structural limitations.

Answer

CEO Kruti Patel Goyal acknowledged that while agentic commerce is in very early stages, early indicators support its role as an incremental discovery channel. She stated that it's impossible to predict the exact evolution or specific pressures on the business model, but expressed confidence in Etsy's proven ability to adapt to unknown changes as the world evolves.

Shweta Khajuria asked for an update on the full-year GMS outlook and whether the Q2 EBITDA margin guidance reflects increased marketing spend on social media, potentially due to APAC-based advertisers pulling back.

Answer

CFO Lanny Baker stated that Etsy is encouraged about improving GMS growth over the year as product and marketing initiatives stack, assuming the macro environment remains consistent. CEO Josh Silverman added that while Etsy is leaning more into paid social media, they have not seen a decrease in ad costs, as their primary competitors for ad placements are large U.S. retailers, not just international players.

On behalf of Shweta Khajuria from Wolfe Research, LLC, a representative asked about the drivers behind the take rate upside in Q3 and Q4 guidance, and how to think about future initiatives.

Answer

CEO Josh Silverman emphasized that the significant take rate gains were achieved without negatively impacting seller margins. He cited improved Etsy Ads performance, higher Etsy Payments penetration, and the new seller onboarding fee as key drivers. CFO Rachel Glaser added that the 2024 gains will annualize into 2025 and that higher performance marketing spend drives more Offsite Ads (OSA) revenue.

Shweta Khajuria asked about the competitive intensity globally, particularly in Europe, and the expected level of investment in 2026 and potentially 2027, especially concerning delivery platforms.

Answer

CEO Tony Xu highlighted DoorDash's strong position and faster growth in Europe, along with improving unit economics. CFO Ravi Inukonda confirmed consistent 2026 EBITDA margin expectations, detailing investments in the global tech stack (primarily 2026), autonomy, and merchant services, all aimed at maximizing long-term free cash flow.

Shweta Khajuria inquired about the competitive intensity globally, particularly in Europe, and the expected level of investments for 2026 and potentially 2027, focusing on delivery platforms, global tech stack, autonomy, and merchant services.

Answer

Co-founder, Chairman, and CEO Tony Xu stated DoorDash feels strong about its European position, leading in many countries and seeing faster growth with Deliveroo and Wolt acquisitions. CFO Ravi Inukonda confirmed 2026 EBITDA margin expectations, noting major investments in the global tech stack (mostly 2026, some 2027), autonomy, and merchant services, all aimed at maximizing long-term free cash flow.

Shweta Khajuria asked about the specific drivers behind the acceleration in U.S. Marketplace orders and the strategy for scaling the advertising business following the Symbiosis acquisition.

Answer

CEO & Chair Tony Xu explained that recent growth is the result of product, selection, and quality improvements made over the past couple of years. Regarding advertising, he emphasized that the primary focus remains on the consumer experience, which in turn enables a successful ad business. The Symbiosis acquisition allows DoorDash to act as a marketing agent for merchants, spending ad dollars off-platform effectively. CFO Ravi Inukonda clarified that the ad business continues to be operated with discipline, focusing on merchant ROAS and consumer conversion.

Shweta Khajuria inquired about the international competitive landscape, including combined market share with Wolt and Deliveroo, European market growth, and Deliveroo's unit economics. She also asked about the potential impact of tariffs on DoorDash's pricing strategy for the year.

Answer

CEO Tony Xu explained that the potential Deliveroo acquisition adds scale in Europe, laying the foundation for new local commerce products and unlocking greater profit pools. He stated that the company is not currently seeing any effects from tariffs and believes food delivery is a resilient category, noting DoorDash will continue to focus on selection, affordability, and quality.

Shweta Khajuria inquired about the key drivers for contribution profit margin upside in international markets and asked for management's strategic goalposts for 2025 and 2026, particularly concerning investment priorities.

Answer

CFO Ravi Inukonda explained that the company optimizes for absolute profit dollars rather than a specific margin percentage, noting the international portfolio is gross profit positive and scaling. CEO Tony Xu added that the investment philosophy for the coming years remains consistent: invest in areas with proven product-market fit and a clear path to monetization across their five main business lines.

Shweta Khajuria asked for a rank-ordering of take rate drivers like ads and platform efficiencies in the near-to-midterm. She also inquired about the long-term goal for grocery price parity with in-store prices.

Answer

CFO Ravi Inukonda stated that revenue growth is outpacing GOV growth, driven by advertising and efficiencies in Dasher-related costs. He noted that in Q3, ads and Dasher cost leverage were the primary drivers but cautioned against linear expectations. CEO Tony Xu addressed grocery pricing by stating the goal is a combination of order accuracy, competitive prices (with some partners already at parity), and superior convenience.

Shweta Khajuria asked about the puts and takes for EPS growth, potential upside drivers, and the company's buyback strategy. She also followed up on agentic commerce, asking for eBay's long-term view, its position relative to shoppers potentially moving to AI platforms, and the necessity of partnerships.

Answer

CFO Peggy Alford stated that strong non-GAAP operating income growth in Q1 and the full year would be the primary driver of EPS growth. She reiterated the capital allocation policy: organic investment first, then returning excess cash to shareholders, targeting 90-100% of free cash flow for repurchases and dividends in a normal year, with $2 billion targeted for 2026 despite the Depop acquisition. CEO Jamie Iannone emphasized eBay's strong position in agentic commerce due to its unique inventory (90% non-new and seasonal) and established trust mechanisms. He highlighted internal capabilities like Agentic Search and Magical Listing, and mentioned being open to partnerships, citing participation in the OpenAI Ads Pilot Program, while prioritizing building leading AI experiences for enthusiast customers.

Shweta Khajuria asked about the puts and takes for EPS growth, including potential upside drivers and the company's approach to share buybacks. She also followed up on agentic commerce, asking about eBay's long-term position, whether AI platforms are a positive or negative, and the company's inclination to partner with them.

Answer

CFO Peggy Alford stated that strong Non-GAAP operating income growth in Q1 and the full year would be the primary driver of EPS growth. She reiterated the capital allocation policy: organic investment first, then returning excess capital through repurchases and dividends, targeting 90-100% of free cash flow in a normal year, with $2 billion targeted for 2026 despite the Depop acquisition. CEO Jamie Iannone emphasized eBay's strong position in agentic commerce due to its unique 90% non-new and seasonal inventory and established trust mechanisms. He highlighted internal AI capabilities like 'Magical Listing' and 'agentic search' and confirmed openness to partnerships, citing participation in the OpenAI Ads Pilot Program, while being thoughtful about where and how to make inventory available.

Shweta Khajuria of Wolfe Research inquired about the durability of advertising revenue growth and its key drivers. She also asked if the combination of focus categories, horizontal initiatives, and improving core GMV could push growth above mid-single digits long-term.

Answer

President & CEO Jamie Iannone confirmed a long runway for ads growth, which grew 17% in Q2, citing drivers like adoption, penetration, and new products, with a medium-term goal of at least 3% of GMV. He affirmed that the combination of focus categories, horizontal initiatives, and geo-specific investments are the key drivers that will propel the business forward.

Shweta Khajuria from Wolfe Research asked for an assessment of consumer health across geographies and whether eBay should consider more aggressive marketing spend to gain share.

Answer

CFO Stephen Priest characterized the macro environment as uncertain, noting that U.S. demand remains more resilient than in Europe. He pointed to depressed consumer confidence in the U.K. and Germany due to inflation and geopolitical concerns. On marketing, Priest stated that the company believes it has the right balance, effectively using its spend to drive efficiencies and invest for long-term growth.

Shweta Khajuria asked about Instacart's strategy for unlocking international growth opportunities, considering potential structural differences in grocery delivery markets abroad, and also inquired about the potential for local commerce expansion beyond grocery and smaller baskets.

Answer

Chris Rogers, CEO of Instacart, expressed excitement about international expansion, noting strong product-market fit for Instacart's existing enterprise technology (Storefront Pro, Caper Carts, FoodStorm) in underdeveloped grocery e-commerce markets abroad. He cited the Costco launch in Spain and France as an example and mentioned disciplined expense management. For local commerce, he reiterated Instacart's primary focus on grocery, serving both large and small baskets, and mentioned the $10 minimum for Instacart Plus users.

Shweta Khajuria of Wolfe Research inquired about Instacart's medium to long-term international growth strategy, considering potential structural differences in global grocery delivery markets, and the opportunity for expanding into local commerce beyond grocery.

Answer

CEO Chris Rogers expressed excitement for international expansion, validating product-market fit for Instacart's existing enterprise technology in underdeveloped e-commerce markets like Europe and Australia. He confirmed a primary focus on grocery, while acknowledging other retailer types on the platform for customer convenience.

Shweta Khajuria of Wolfe Research questioned the near-to-midterm impact of new partnerships and Instacart's international growth strategy, including focus areas and go-to-market approach. She also requested more detail on the Q4 guidance, specifically the interplay between EBT/SNAP headwinds, enterprise incrementality, and ongoing order growth.

Answer

CEO Chris Rogers highlighted the potential of new storefront and off-platform ad partnerships, emphasizing a disciplined, enterprise-led international expansion using existing products like Storefront Pro and Caper. CFO Emily Reuter clarified that EBT is a small part of the business, and Q4 guidance reflects strong fundamentals, October performance, and momentum from enterprise partnerships, offsetting EBT/SNAP uncertainty.

Shweta Khajuria asked about the near-to-mid-term impact of new partnerships and Instacart's international growth strategy, along with further color on the Q4 guidance, specifically the impact of EBT SNAP headwinds versus enterprise and order growth.

Answer

CEO Chris Rogers highlighted continued storefront launches (40 in H1), critical off-platform ad partnerships, and an enterprise-led international expansion plan using existing products like Storefront Pro, Caper, and FoodStorm, with disciplined expense management. CFO Emily Reuter clarified EBT SNAP is a small part of the business, and Q4 guidance reflects strong October performance and enterprise momentum, accounting for various funding scenarios.

Shweta Khajuria from Wolfe Research asked about Instacart's advertising strategy, specifically how the company thinks about on-platform versus off-platform advertising and their expected contributions to the business.

Answer

CEO & Chair Fidji Simo articulated the vision of becoming a one-stop shop for CPG brands by offering unparalleled scale and performance. She explained that Instacart's strategy is to operate as a single, unified network that includes its marketplace, over 240 Carrot Ads retail partners, and off-site partnerships. By offering tools like universal campaigns, Instacart allows advertisers to optimize their spend across the entire network, positioning itself as the key aggregator for an industry that values efficiency and reach.

Shweta Khajuria asked how advertisers perceive Instacart's platform—specifically, if it is considered a bottom-of-funnel, performance-based spend—and whether this positioning provides confidence amid macro uncertainty.

Answer

CEO Fidji Simo confirmed that advertisers view Instacart as a high-performance platform with strong, measurable ROAS. She expressed confidence that this positioning is advantageous, as advertisers tend to focus their budgets on performance-driven channels during uncertain times. While acknowledging some brand caution around macro factors, she stated it was not widespread and that Instacart's ability to deliver performance at scale makes it a well-positioned partner.

Shweta Khajuria asked for the top two or three key investment areas, excluding macro factors, that Instacart is focused on to drive advertising revenue growth.

Answer

CEO Fidji Simo detailed four key pillars for ad growth: 1) Performance, by delivering best-in-class ROAS; 2) Scale, through their own marketplace and the Carrot Ads network; 3) Diversification, by attracting more emerging brands; and 4) Innovation, by launching new ad formats like sponsored recipes and AI-powered landing pages.

Shweta Khajuria asked about the adoption rate of key services like EBT SNAP and pickup among Instacart's top 20 retailers, and also inquired about the current state and future potential of price parity.

Answer

CEO Fidji Simo explained that while specific adoption rates aren't disclosed, all top retailers use many of these services, tailored to their individual strategies. On price parity, she noted a shift from a binary decision to a more sophisticated, granular approach. Retailers now use tools like Eversight to optimize pricing on specific items, categories, or promotions, such as Kroger's weekly flyers, to drive value and competitiveness.

Shweta Khajuria, Managing Director of Global Internet at Wolfe Research, followed up on the evolving economics and competitive dynamics within agentic commerce, and separately asked Jeff Hoffmeister about the outlook for Shopify's Free Cash Flow margins in 2026, considering ongoing investments and growth.

Answer

Harley Finkelstein, President of Shopify, reiterated that for Shopify merchants, agentic transaction economics are consistent with online store transactions, with monetization primarily through Shopify Payments. He clarified that LLMs do not bypass Shopify's backend checkout infrastructure, which handles order processing and payments. Jeff Hoffmeister, CFO of Shopify, stated that the company's philosophy on Free Cash Flow margins remains unchanged, balancing top-line growth with strategic investments in future commerce initiatives, and referenced the Q1 2026 Free Cash Flow margin guidance as consistent with this approach.

Shweta Khajuria asked about the evolving economics and competitive dynamics of agentic commerce, specifically Shopify's role in laying out the infrastructure. She also questioned the outlook for Shopify's free cash flow margins in 2026, considering ongoing investments and growth.

Answer

Harley Finkelstein, President, reiterated that for Shopify merchants, agentic transaction economics are the same as online store transactions, with monetization primarily through Shopify Payments. He clarified that LLMs do not bypass Shopify's backend checkout, and UCP ensures the full commerce journey is covered. Jeff Hoffmeister, CFO, stated that Shopify's free cash flow margin philosophy remains unchanged, balancing top-line growth with strategic investments, and provided specific Q1 guidance.

Shweta Khajuria inquired about the incremental nature and guidance inclusion of recent headcount reductions, and how Peloton views the Commercial Business Unit's primary impact—as a driver for member retention or new subscriber lead generation.

Answer

CFO Liz Coddington confirmed that recent headcount reductions were part of the previously announced $100 million annualized cost savings plan for FY26, already factored into guidance, aiming to reduce OpEx while reinvesting in R&D. CEO Peter Stern explained that the Commercial Business Unit is primarily a standalone vector for profitable growth in a multi-billion dollar market, leveraging new products and Precor's network, with member retention and lead generation being important ancillary benefits.

Shweta Khajuria asked for clarification on recent headcount reductions, specifically if they were incremental or already factored into guidance. She also questioned the primary impact of the Commercial Business Unit (CBU) – whether it drives retention, new subscriber acquisition, or acts as a standalone growth driver.

Answer

CFO Liz Coddington confirmed that the recent headcount reductions were part of the previously announced $100 million annualized run rate cost savings plan by the end of fiscal 2026 and were already accounted for in the guidance. CEO Peter Stern explained that the CBU is primarily viewed as a new vector for profitable growth for the company on a standalone basis, leveraging new products like the Peloton Pro Series and Precor's existing relationships. He noted that member retention and new subscriber awareness are important, but ancillary, benefits.

Shweta Khajuria asked about Peloton's strategic evolution into a broader wellness company, potential subscription tiering, and how it plans to address its premium price point to grow its TAM, including the role of Fitness-as-a-Service and refurbished equipment.

Answer

President & CEO Peter Stern confirmed the strategic shift to wellness but emphasized that cardio will remain the foundation. He noted that existing app tiers already serve as gateways to the full membership. To expand the TAM, he stressed the importance of reigniting innovation and confirmed the company's commitment to its refurbished equipment program and the secondary market as key strategies to provide lower-priced entry points for its premium hardware.

Shweta Khajuria asked for an update on Peloton's deleveraging plan, its tangible benefits, and the potential P&L impact from tariffs.

Answer

CFO Liz Coddington explained that strong free cash flow has enabled significant deleveraging, reducing the net leverage ratio from 7x to 2.7x QoQ. A tangible benefit is an estimated $5 million in annualized interest expense savings. CEO Peter Stern and CFO Liz Coddington clarified that the tariff risk is minimal, with no Peloton-branded hardware subject to China tariffs and an unmitigated impact of less than 1% of Connected Fitness COGS from other potential tariffs.

Shweta Khajuria asked about the decision-making process for selecting Peter Stern as the new CEO and what specific qualities made him stand out among other candidates.

Answer

Interim Co-CEO Karen Boone highlighted Peter Stern's extensive experience across hardware, software, and content, his track record of driving growth through innovation, and his personal passion for Peloton as a long-time member. Interim Co-CEO Chris Bruzzo added that Stern is thoughtful, appreciates Peloton's history, and is excited to lead its next chapter.

Shweta Khajuria inquired about how Match Group measures relevance for women, seeking quantifiable data points to support the reported material improvement in their experience. She also asked about the expected lag time between improvements in leading indicators like new registrations, Sparks, and MAUs, and the eventual translation into payer growth.

Answer

CEO Spencer Rascoff explained that relevance for women is measured through retention, Spark coverage, and user satisfaction broken down by demographics. He cited Double Date's appeal, with 48% of Gen Z women in the U.S. seeing it as a unique reason to use Tinder, and noted that female MAU in Australia improved more than overall MAU. CFO Steven Bailey stated that improving MAU trends in 2026 are expected to lead to improving payer trends throughout the year, anticipating a 1-2 point improvement in Q1 payer trends compared to Q4.

Shweta Khajuria inquired about quantifiable metrics for measuring relevance for women on Tinder and the expected lag between improvements in new registrations, Sparks, and MAU, and eventual payer conversion.

Answer

CEO Spencer Rascoff highlighted Double Date's appeal to Gen Z women, noting high awareness and defining feature perception, and pointed to stronger female MAU growth in Australia as evidence of improved relevance and retention. CFO Steven Bailey stated that improving MAU trends in 2026 are expected to translate into better payer trends throughout the year, with Q1 2026 payer trends anticipated to be a point or two better than Q4 2025.

Shweta Khajuria requested context on the expected improvement trajectory for key engagement metrics and more color on the marketing spend reinvestment strategy for Tinder and Hinge.

Answer

CEO Spencer Rascoff described the turnaround as being in the early stages, focusing first on shipping product and then driving user reconsideration. CFO Stephen Bailey detailed the $50 million reinvestment plan, allocating it in thirds: one-third to Tinder product tests, one-third to marketing for Tinder and Hinge product launches, and one-third to geographic expansion and new ventures like Archer and Her.

Shweta Khajuria asked about the potential impact of app store changes, whether Match Group is testing alternative payment routes, and for details on potential pricing changes if macroeconomic conditions worsen.

Answer

CFO Steven Bailey stated that the company is encouraged by the Apple vs. Epic ruling and is already testing web payment options and discounted offers on the web across most U.S. brands. He noted that shifting just 10% of App Store purchases to the web could save approximately $25 million in fees. Regarding macro weakness, he confirmed the business is historically resilient but has seen some recent weakness in Tinder's a la carte revenue. If trends persist, the company is prepared to offer lower-priced bundles, similar to actions taken in the past.

Shweta Khajuria asked which specific Tinder initiatives are expected to be the biggest drivers in lessening declines and what key performance indicators (KPIs) are being tracked to measure progress.

Answer

President and CFO Gary Swidler responded that improvement will come from multiple initiatives across three pillars: a cleaner ecosystem, better user outcomes, and making dating fun. He highlighted a new AI-driven matching feature as particularly exciting and directed investors to the Investor Day presentation for detailed KPIs, giving examples like adoption rates and quality match improvements.

Shweta Khajuria asked about Tinder's brand perception trends and future plans for improvement, particularly with Gen Z and women, and also inquired about the timing and rationale for the CFO transition.

Answer

CEO Bernard Kim affirmed the focus on Gen Z and women through product initiatives and targeted marketing, while maintaining spending discipline. Regarding the CFO change, he highlighted incoming CFO Steve Bailey's 12 years of experience at the company and noted the transition has been in planning for a while.

Shweta Khajuria asked about Chewy's gross margin trends and drivers for 2026, and the expected durability of customer adds, specifically the relative contributions of retention versus gross adds.

Answer

Sumit Singh, CEO of Chewy, outlined several structural gross margin expansion levers, including growing sponsored ads, premium category mix, strengthening private label, and the health ecosystem. He expects roughly half of the remaining 450 basis points to reach the 10% long-term EBITDA margin to come from gross margin. For 2026 customer adds, he anticipates durability, driven by both acquisition and retention, emphasizing the large addressable market and internal engines like Chewy Plus and CVC improving retention.

Shweta Khajuria asked about the trends and future outlook for gross margins, particularly how 2025's drivers will apply to 2026. She also inquired about the durability of customer adds for 2026, specifically whether retention or gross adds would be a bigger contributor.

Answer

Sumit Singh (CEO, Chewy) stated that roughly half of the remaining 450 basis points to reach the 10% long-term EBITDA margin is expected from gross margin. He identified structural gross margin levers including growing sponsored ads, premium category mix, strengthening private label (with Fresh), the health ecosystem, and Chewy Plus. He noted these vectors will compound over time. For customer adds in 2026, he expects durability, viewing it as an 'and' equation (both acquisition and retention) rather than 'or.' He highlighted the large addressable market of 50 million potential customers and internal engines like Chewy Plus and CVC improving retention.

Shweta Khajuria asked about the current advertising environment, advertiser priorities for the back half of 2025 and 2026, and the trend of Chewy's advertising business. She also inquired about expectations for net household formations, the impact of inflationary pressure on customer growth versus pricing, and potential for acceleration in growth rates.

Answer

Sumit Singh, CEO & Director, Chewy, stated that pet household formation is expected to be flat to slightly up in 2025, with the industry normalizing to low to mid-single-digit growth. He confirmed Chewy's growth algorithm of low to mid-single-digit active customer growth and mid-single-digit NESPAC growth, driven by Autoship and Chewy Plus. He noted high competitive intensity in advertising but strong internal metrics, including 14% net traffic growth and over 25% mobile app session growth, with Sponsored Ads growing sequentially.

Shweta Khajuria asked about the advertising environment, including conversations with advertisers and their priorities for the back half of 2025 and into 2026, and how Chewy's advertising business is trending. She also inquired about macro expectations for net household formations and the mix of customer growth versus pricing, and potential for acceleration in the second half.

Answer

CEO Sumit Singh noted that pet household formation trends remain consistent, with stable adoptions and declining relinquishments, expecting broadly flat to slightly up households in 2025. The industry is normalizing to low to mid-single-digit growth, with Chewy gaining share at 7%-8% year-over-year. Chewy's growth algorithm combines low to mid-single-digit active customer growth and mid-single-digit NESPAC growth, with active customer growth expected to continue despite tougher Q4 comps. The advertising market remains highly competitive, but Chewy is pleased with metrics like 14% net traffic growth and 25% mobile app session growth, with Sponsored Ads growing sequentially and strong conviction in long-term targets.

Shweta Khajuria asked about the current advertising environment, advertiser priorities for the back half of 2025 and into 2026, and how Chewy's ad revenue is trending. She also sought Chewy's expectations for macro trends like net household formations, potential inflationary pressures, and the balance between customer growth and pricing, including potential for acceleration in the second half.

Answer

CEO Sumit Singh noted that pet household formation trends remain consistent, with stable net adoptions and declining relinquishments, expecting broadly flat to slightly up households in 2025. He projected the industry to grow in the low to mid-single-digit range for 2025, with Chewy continuing to gain share at 7% to 8% year-over-year. Singh reiterated Chewy's growth algorithm of low-to-mid single-digit active customer growth and mid-single-digit NESPAC growth, expecting NESPAC to trend 4.5% to 5.5% in the back half. Regarding advertising, he stated competitive intensity is high, but Chewy is pleased with its metrics, including 14% net traffic growth and over 25% mobile app session growth, with Sponsored Ads continuing to resonate and grow sequentially, aligning with the 1% to 3% long-term target.

Shweta Khajuria asked for insight into which marketing channels have been particularly effective for Chewy recently. She also inquired about business trends observed quarter-to-date through October and November.

Answer

CEO Sumit Singh attributed marketing success to a holistic, full-funnel approach targeting expanded audiences rather than specific channels. He confirmed that quarter-to-date performance was strong, with the Cyber Week holiday event being highly successful and driving some of the largest net sales days in Chewy's history, which contributed to the company raising its full-year guidance. Executive David Reeder also highlighted the value of organic brand-building programs like 'Chewy Claus'.

Shweta Khajuria from Wolfe Research LLC inquired about the potential scale of the Chewy Vet Care (CVC) opportunity, particularly for demand generation, and the company's expansion plans for the next one to three years.

Answer

CFO David Reeder outlined a measured rollout, expecting to end fiscal 2025 with 8-10 new clinics. He noted strong performance, high utilization, and a significant number of new-to-Chewy customers, with about half making a purchase on chewy.com within 30 days. CEO Sumit Singh added that the total addressable market could expand beyond services to include telehealth, insurance, and software, positioning CVC as a key ecosystem 'moat'.

Shweta Khajuria of Wolfe Research LLC inquired about the Chewy Vet Care (CVC) opportunity, focusing on its potential for demand generation and the company's expansion plans over the next one to three years.

Answer

CFO David Reeder described a measured rollout, planning to end fiscal 2025 with a clinic count in the high teens. He noted that new customer acquisition at clinics is significantly higher than modeled, with about half of these new customers making a retail purchase within 30 days. CEO Sumit Singh added that CVC is an ecosystem play that creates a defensible moat and expands Chewy's total addressable market.

Shweta Khajuria of Wolfe Research, LLC asked about the Chewy Vet Care (CVC) initiative, focusing on its potential for demand generation and the company's expansion plans over the next one to three years.

Answer

CFO David Reeder described a measured rollout, with plans to end 2025 with a clinic count in the high teens. He emphasized that CVC is performing well, attracting more new-to-Chewy customers than modeled, with about half making a purchase on chewy.com within 30 days. CEO Sumit Singh positioned CVC as a key part of Chewy's defensible ecosystem, expanding the company's total addressable market into services, software, and data.

Shweta Khajuria of Wolfe Research LLC inquired about the Chewy Vet Care (CVC) opportunity, focusing on its potential for demand generation and the company's expansion plans over the next one to three years.

Answer

CFO David Reeder described a measured rollout, planning 8-10 new clinics in FY2025. He highlighted that CVC is attracting more new-to-Chewy customers than modeled, with half making a purchase on chewy.com within 30 days. CEO Sumit Singh added that CVC is an ecosystem 'moat' that expands the TAM into areas like telehealth, insurance, and software.

Shweta Khajuria from Wolfe Research LLC asked about the Chewy Vet Care (CVC) initiative, focusing on its potential for demand generation and the company's expansion plans over the next one to three years.

Answer

CFO David Reeder described a measured rollout, with plans to open 8-10 new clinics in fiscal 2025. He noted that CVC is performing well, attracting a significant number of new-to-Chewy customers, about half of whom make a purchase on chewy.com within 30 days. CEO Sumit Singh added that CVC is a key part of the company's ecosystem moat, expanding the addressable market into services.

Shweta Khajuria of Wolfe Research LLC inquired about the Chewy Vet Care (CVC) opportunity, focusing on its potential for demand generation and the company's expansion plans for the next one to three years.

Answer

CFO David Reeder described a measured rollout, with plans to open 8-10 new clinics in fiscal 2025. He highlighted that new customer acquisition at clinics is exceeding models, with about half of these new customers purchasing from chewy.com within 30 days. CEO Sumit Singh added that CVC is an 'ecosystem moat' that expands the total addressable market into areas like telehealth, insurance, and software, enhancing long-term customer engagement.

Shweta Khajuria of Wolfe Research asked about Snap's conviction level for keeping infrastructure costs flat next year, inquiring about potential drivers for higher costs and when the company would intervene.

Answer

CFO Derek Andersen explained that conviction for flat infrastructure costs into 2026 stems from improved capacity utilization for ML and AI infrastructure, and efficiency work on the cost to serve. This includes optimizing cloud partner services, pricing, and engineering product to calibrate costs relative to each market's long-term financial potential.

Shweta Khajuria of Wolfe Research posed two questions: first, on the overall demand environment across both brand and direct-response (DR) advertising, including any notable trends in specific verticals; and second, on how Snap plans to realize efficiency gains in its compute costs over the next few years.

Answer

CFO Derek Andersen addressed both questions. On demand, he noted that performance is strongest in verticals with established product-market fit, such as retail and CPG for Pixel Purchase Optimization, and gaming and financial services for app-based optimizations. On compute costs, he explained that long-term efficiency gains come from rapid innovation followed by code and SKU optimization, as well as improved pricing from cloud partners due to Snap's increasing scale.

Shweta Khajuria asked what gives management the most confidence in their ability to deliver advertising revenue growth that outpaces the broader digital ad market, given their various product initiatives.

Answer

CFO Derek Andersen outlined a multi-layered strategy focused on the lower-funnel DR business and the SMB customer segment. Key drivers include enhancing ML and AI for ad personalization, harvesting more privacy-safe signals, and improving the SMB onboarding experience with tools like Snap Promote and easier Cappy integrations. He stated the execution roadmap is very clear.

Shweta Khajuria asked about Pinterest's relationship with Magnite and broader efforts to add new sources of demand, including a potential timeline.

Answer

CEO Bill Ready stated that first-party ad demand remains the primary driver, with third-party demand, including Magnite, complementing it. He noted that Magnite integration is in early testing phases and Pinterest is exploring the value of its audience beyond its own platform.

Shweta Khajuria asked about Pinterest's relationship with Magnite and broader efforts to add new sources of demand, including potential timelines.

Answer

CEO Bill Ready stated that first-party ad demand remains the primary growth driver, with third-party demand, including Magnite, complementing the auction. He noted that Magnite integration is still in early testing phases. Bill also mentioned exploring the value of Pinterest's unique, high-intent audience beyond its own platform, indicating very early testing in this area.

Shweta Khajuria requested an update on Pinterest's strategy for third-party ad demand, referencing recent press reports about testing new partners.

Answer

CEO Bill Ready clarified that the strategy is unchanged: first-party demand remains primary, with third-party demand serving as a complement. He confirmed ongoing testing and announced Magnite as the next partner to help aggregate smaller demand sources, framing it as a steady, long-term build rather than an immediate revenue driver.

Shweta Khajuria from Wolfe Research asked about the expected contribution from Pinterest's various ad product innovations over the next one to three years and which ones management is most excited about.

Answer

CEO Bill Ready stated that recent innovations like Direct Links and Performance+ have compounding effects over multiple years, not one-off impacts. He emphasized that Performance+ is in the early stages of a multiyear adoption cycle, similar to what other platforms have experienced. He highlighted early results showing a 20% CPA improvement for advertisers and noted that more of the opportunity from these products is still ahead.

Shweta Khajuria inquired about the optimal or normal level for ad load on Pinterest and how the company balances increasing ad load with maintaining a positive user experience.

Answer

CEO Bill Ready stated that Pinterest is still at a fraction of its potential monetization per unit of intent and has significant headroom for ad load growth. He explained that the key is relevance; as AI improves ad relevance—which has doubled in search over two years—ads become synergistic with engagement. Features like whole-page optimization dynamically increase ad load in high-commercial-intent moments, enhancing the user's shopping journey rather than disrupting it.

Speaking on behalf of Shweta Khajuria, an analyst from Wolfe Research inquired about the specifics of Bumble's alternative payment testing, including the apps involved, discount ranges offered, and observed user adoption rates.

Answer

Interim CFO Ron Fior responded that testing has been limited but early results in select US markets on iOS showed a strong 30% adoption rate for direct billing. He noted that while various discount rates are being tested, the company has factored a modest impact into its Q3 guidance, acknowledging a potential for upside if the program is expanded.

Shweta Khajuria inquired about the key metrics that will indicate success for the new strategy and asked for an update on the ongoing CFO search.

Answer

Founder and CEO Whitney Wolfe Herd explained that while formal metrics will be shared later, the key indicators of success will be the quality of member engagement, such as good matches and chats, which drive retention and word-of-mouth growth. Regarding the CFO search, she confirmed that progress is being made and expressed confidence in the strong leadership team already in place.

Shweta Khajuria inquired about the status of the CFO search and asked CEO Whitney Herd about her long-term commitment to the role.

Answer

CEO Whitney Herd confirmed the CFO search is a top priority with active interviews underway for a leader suited to the company's future goals. Regarding her tenure, she affirmed her deep passion for Bumble and stated she is fully committed for the long haul, describing the role as an honor, not an obligation, with 'no expiration date' on her commitment.

Shweta Khajuria asked for specific examples of actions being taken to improve ecosystem health beyond marketing, and questioned how safety initiatives might act as a headwind to top-of-funnel user growth.

Answer

CEO Lidiane Jones explained that ecosystem health improvements also stem from a new, regular cadence of product innovation designed to attract and retain high-quality users. She positioned safety initiatives not as a headwind but as a key differentiator and user attractor, citing improved moderation models and features like optional ID verification that enhance user trust and choice.

Shweta Khajuria requested details on Uber's affordability efforts within the Delivery segment and asked for commentary on the competitive landscape and consolidation trends in the European market.

Answer

CEO Dara Khosrowshahi highlighted two key affordability drivers: the Uber One membership program, which now has 30 million members and over 60% penetration in delivery, and the increasing use of merchant-funded offers. Regarding Europe, he noted Uber's organic success, such as reaching the #1 position in the U.K. for Eats, and pointed to strong performance in France and Germany as reasons why competitor consolidation in the region is expected.

Shweta Khajuria asked for clarity on the expected rate of margin improvement through the year and inquired about the tangible benefits being seen from AI-powered tools for developers.

Answer

CFO Mike Guthrie noted the dramatic margin outperformance in recent quarters and guided that while such a high rate of improvement won't continue, cash flow growth will exceed bookings growth. He directed analysts to the full-year guidance for implied back-half rates. CEO David Baszucki described AI as a 'human acceleration tool' for creators, leading to higher quality and output, with a long-term vision for full 3D scene and '4D' interactive asset generation.

Shweta Khajuria requested specifics on the revenue contribution from the RepairPal acquisition factored into the Q1 and full-year 2025 guidance, and also asked about any quantifiable impacts from recent L.A. fires or the leap day on the Q1 outlook.

Answer

CFO David Schwarzbach stated that Yelp does not plan to break out RepairPal's financial contribution separately but confirmed it is included in the guidance, noting the acquisition is key to accelerating growth in auto services. He also clarified that the L.A. fires had a minimal impact on the business in January.

Shweta Khajuria from Wolfe Research asked for details on the updated full-year guidance, particularly the expense discipline driving higher EBITDA, and inquired about recent performance in paid search and top-of-funnel growth for Request-A-Quote.

Answer

CFO David Schwarzbach attributed the higher EBITDA guidance to disciplined expense management, including holding headcount flat and reducing paid search spend from previously planned levels. CEO Jeremy Stoppelman noted that while paid search successfully drove top-of-funnel project volume, it didn't sufficiently change advertiser behavior to warrant the investment level, leading to the reduction in spend.

Shweta Khajuria of Wolfe Research asked for commentary on the expected contribution from the Price Lock feature and requested quantification of advertising revenue for 2024 and the outlook for 2025.

Answer

CFO Erin Brewer stated that the Lyft Media business exited Q4 2024 at an annualized gross bookings run rate of approximately $50 million and is expected to exit Q4 2025 at a $100 million run rate. CEO David Risher added that while not providing specific financials for Price Lock, the feature has delivered 1.6 million rides, which are believed to be largely incremental, and has recently expanded to 24/7 coverage.

Shweta Khajuria inquired about consumer sentiment and spending resiliency observed in the quarter and asked for the near-to-midterm outlook on revenue margin trajectory.

Answer

CEO David Risher noted strong consumer sentiment, citing growth in both commute and discretionary 'party time' use cases, with Halloween rides hitting an all-time high. CFO Erin Brewer explained that recent revenue margin trends reflect incentive efficiencies and a mix impact from the bikes and scooters business, which accounted for about 2.5 points of margin in Q3.

Shweta Khajuria asked for a rank-ordering of the key growth drivers for CTV over the next 2-5 years and inquired about the competitive evolution of Amazon as a DSP.

Answer

CEO Jeff Green emphasized that the fragmentation of CTV makes a walled garden approach unviable, forcing premium content owners to use auctions to maximize value. He identified key drivers as global expansion, the establishment of UID2 as the CTV currency, and the shift from inventory scarcity to a focus on quality and data-driven differentiation. Regarding Amazon, Green argued that its conflict of interest as both a content owner and platform puts it at a significant disadvantage in CTV compared to TTD's objective, buy-side-only model.