Stefanos Crist

Stefanos Crist asked why Flutter Entertainment chose to launch traditional sportsbook in Arkansas, despite its 51% revenue share, instead of focusing on prediction markets.

Answer

CEO Peter Jackson explained that the traditional regulated sportsbook offers a more compelling proposition with broader offerings and a robust generosity playbook, aligning with Flutter's core strategy and preference for regulated markets over prediction markets.

Stefanos Crist inquired about the decision to launch a traditional sportsbook in Arkansas, despite its 51% revenue share, and why the company chose this over a Predicts offering.

Answer

CEO Peter Jackson explained that the new state playbook, as demonstrated in Missouri, shows that a traditional OSB offers customers a more compelling choice with a broader offering and a robust Generosity playbook. He expressed excitement for OSB and iGaming regulation, viewing Arkansas as an opportunity to leverage their playbook in a state with only two national players.

Stefanos Crist from Needham and Company followed up on international expansion, asking about the strategy of leveraging existing partners with international presence versus acquiring new customers abroad.

Answer

CEO Chris Rogers confirmed a mixed approach, pursuing expansion with existing North American partners like Costco who have international operations, and actively engaging new retailers in major European markets. He cited the Morrisons pilot for Caper Cart in the UK as an example of new relationships.

Stefanos Crist followed up on international expansion, asking about the number of existing North American partners with international operations and whether Instacart's main strategy is to expand with these partners or also approach new international customers.

Answer

Chris Rogers, CEO of Instacart, confirmed that many North American partners also operate in Europe, making expansion with existing, trusted partners like Costco a strategic focus. He also stated that Instacart is actively meeting and selling to new retailers in major European markets, citing a pilot with Morrisons in the U.K. for Caper Cart as an example.

Stefanos Crist from Needham & Company, LLC, calling for Bernie McTernan, asked for details on where the previously announced $60 million in cost savings would be realized in 2025 and requested more color on the 'minor investments' planned for the year.

Answer

CFO Erica Gessert clarified that the cost savings from the operational realignment were focused on the Enterprise business and a more focused R&D portfolio. She stated the minor investments in 2025 are targeted at the three growth catalysts: AI enablement, Enterprise strategy, and Ads & Monetization, which will result in slightly lower margins in Q2 and Q3 compared to Q1.

Stefanos Crist of Needham & Company requested more detail on the acquisition of Objective, including its function and integration into the Upwork ecosystem, and also asked about the current M&A market landscape.

Answer

CEO Hayden Brown described Objective as an AI-native search-as-a-service company that will accelerate core search/match performance and enhance Uma's multimedia capabilities, building on the success of the Headroom acquisition. She noted that while many buyers are on the sidelines, Upwork is positioned to act on strategic M&A opportunities that meet its high bar. CFO Erica Gessert affirmed the company will use its strong balance sheet for such accretive acquisitions.

Stefanos Crist, on behalf of Bernard McTernan from Needham & Company, LLC, asked about any observed changes in operator behavior in Illinois since the recent tax increase and requested an update on the potential launch in Brazil.

Answer

CEO Richard Schwartz noted that while there's been less investment in Illinois following the tax hike, there haven't been quantifiable changes yet, though he expects longer-term adjustments. Regarding Brazil, Schwartz stated that while it's an exciting long-term opportunity, RSI is maintaining a cautious 'wait-and-see' approach to evaluate it against other opportunities and will provide updates when available.

Asked about the drivers of the Rentals segment's 16% growth (market vs. share gains), competitive intensity, and the expected business impact of consumer-facing AI applications over the next year.

Answer

The Rentals segment growth is respectable in a competitive market where large players are gaining share. The focus is now on leveraging Redfin's SEO expertise to grow the high-margin marketplace. The 'Ask Redfin' AI tool is expected to have a meaningful impact by increasing top-of-funnel demand at a low cost.