Wyatt Swanson

Wyatt Swanson asked if the medium-term goal of 100 million DAUs assumes elevated marketing spend and continued de-prioritization of monetization for the entire duration. He also inquired about the future of the ads business, specifically if ads would be reduced or removed from the platform, given concerns about friction.

Answer

Luis von Ahn (Co-Founder and CEO) expects total marketing spend to increase annually but hopes for efficiencies beyond 2026. He believes that with 100 million DAUs, the business will be significantly larger, allowing for other monetization avenues like direct ad sales and in-app purchases for avatars to ramp up. Gillian Munson (CFO) reiterated that the business model allows for tremendous scale without proportionally increasing expenses, enabling a smarter re-entry into monetization. Luis clarified that ad load is unlikely to increase, but the focus will be on improving ad quality through direct deals and potentially innovative ad formats (e.g., ads in the language being learned) to increase revenue per ad.

Wyatt Swanson asked about the Chess disclosure, specifically how to account for users engaging with multiple Duolingo apps (e.g., Languages and Chess) when calculating DAUs. He also inquired if the medium-term goal of 100 million DAUs assumes sustained elevated marketing and deprioritized monetization, and how the balance will evolve. Additionally, he asked about the future of the ads business, given concerns about increasing ad load.

Answer

CEO Luis von Ahn clarified that the majority of Chess DAUs are existing Duolingo users now engaging with both Languages and Chess, indicating continued growth in Languages. He expects marketing spend to increase but with efficiencies beyond 2026, and for monetization to ramp up in smarter, non-friction ways. CFO Gillian Munson highlighted the business's scalability, expecting to achieve 100 million DAUs without proportionally doubling expenses. For ads, von Ahn stated that ad load is unlikely to increase, but focus will be on higher-quality direct deals and innovative formats (like in-language ads) to boost revenue per ad.

Wyatt Swanson from D.A. Davidson noted negative user feedback on the new 'Energy' system and asked if it had a negative impact on any specific user cohorts. He also questioned whether the improvement in the DAU-to-MAU ratio was due to a decline in MAUs or higher DAU engagement.

Answer

CEO Luis von Ahn acknowledged the negative feedback but explained it comes from a small cohort of highly engaged free users who had learned to 'game' the old system to avoid paying. He stated that the new system is working as intended by monetizing heavy usage, and the positive metrics (DAU, revenue, time spent) support the change. Regarding the DAU/MAU ratio, both von Ahn and CFO Matt Skaruppa confirmed it was a combination of factors: improved DAU retention and a more normalized MAU base in Q2 following an inflated Q1 from the 'Dead Duo' viral campaign.

Wyatt Swanson of D.A. Davidson Companies noted negative user feedback on the new 'Energy' system despite positive metrics and asked about its impact on specific cohorts. He also asked if the improved DAU/MAU ratio was due to lower MAUs or higher DAU engagement.

Answer

CEO Luis von Ahn acknowledged the feedback, explaining it was expected and primarily from a minority of power users who could no longer use the app as extensively for free. He reiterated that core metrics for revenue, DAUs, and learning time are all positive. On the DAU/MAU ratio, von Ahn and CFO Matthew Skaruppa explained it was a combination of improved DAU retention and a normalization of MAUs following an unusually high Q1 driven by a viral campaign.

Wyatt Swanson of D.A. Davidson & Co. asked for details on the rollout timeline for the new chess course, plans for driving engagement, and its expected contribution to revenue and engagement.

Answer

CEO Luis von Ahn stated that the chess course will launch 'in the next few weeks,' first on iOS and then Android, with wide availability by year-end. Marketing will mirror the approach for math and music, combining word-of-mouth with viral social media campaigns. He expects its initial revenue contribution to be small, growing in line with its daily active user base.

Wyatt Swanson asked about the next avenues for user growth, which markets or demographics are considered underpenetrated, and how Duolingo is positioning itself to capture this growth.

Answer

CEO Luis von Ahn stated that growth is occurring in every geography and is not correlated with market maturity, indicating no markets are tapped out. He identified Asia (including Japan, Korea, India, and China) as the most underpenetrated region due to a later start. The strategy to capture this opportunity involves implementing the company's successful social media-driven marketing playbook, localized for each market.

Wyatt Swanson asked about current trends in overall subscriber retention and whether there are any observable differences in retention between the Super and Max subscription plans.

Answer

CFO Matt Skaruppa responded that overall blended subscriber retention on the platform has remained stable. He noted that while there is not yet enough data to definitively comment on Max retention at scale, the company is confident that its lifetime value (LTV) will be superior to that of the Super plan.

Wyatt Swanson asked about the performance of CLEAR+ member additions in Q4 at airports with eGates versus those without, and whether these trends are expected to continue. He also inquired about why CLEAR is uniquely suited to serve the CMS partnership and requested details on the contract structure.

Answer

Michael Z. Barkin, President and Director of Clear Secure, noted strong member additions across the network and significant improvements in NPS and lane experience scores where eGates are implemented, expecting these to drive retention. Caryn Seidman Becker, Chairman and CEO of Clear Secure, explained CLEAR's unique suitability for CMS due to its experience in regulated industries, focus on privacy and security, trusted consumer brand, and large member base. She confirmed it's a multi-year contract but provided no further structural details.

Wyatt Swanson asked about the performance of CLEAR+ member additions in airports with eGates versus those without, expected future trends, and why CLEAR is uniquely suited for the CMS partnership, including details on the contract structure.

Answer

Michael Z. Barkin, President and Director, Clear Secure, noted strong member additions across the network and immediate positive impact on NPS and lane experience scores where eGates are implemented, expecting continued improvements in retention. Caryn Seidman Becker, Chairman and CEO, Clear Secure, explained that CLEAR's unique suitability for CMS stems from its expertise in regulated industries, focus on privacy and security, trusted consumer brand, and embedded base of nearly 40 million members, making it a natural fit for healthcare interoperability. She confirmed the CMS contract is multi-year.

Wyatt Swanson asked for an update on the early performance of Clear Concierge, including usage patterns and how it's tracking against expectations. He also inquired about the largest channels for adding Clear Plus members during the quarter and the development of the TSA PreCheck bundling channel.

Answer

Michael Barkin, President, Clear Secure, expressed satisfaction with the Concierge rollout, noting appreciation and repeat usage among members, and highlighted the focus on driving awareness. He emphasized Concierge's value proposition, especially for families and during challenging airport experiences, as a key step in expanding the 'home-to-gate' understanding of Clear Plus. Caryn Seidman-Becker, Co-Founder, Chair and CEO, Clear Secure, broadly categorized member acquisition channels as airports and digital marketing. She confirmed significant success with TSA PreCheck bundling, expressing satisfaction with the cross-sell percentage.

Wyatt Swanson inquired about Clear's largest channels for adding Clear Plus members during the quarter and the development of the TSA PreCheck bundling channel.

Answer

Caryn Seidman-Becker, CEO of Clear Secure, broadly categorized member acquisition channels into airports and digital marketing efforts. She confirmed significant success with the TSA PreCheck bundling channel, expressing satisfaction with the percentage of TSA PreCheck customers cross-selling into Clear Plus, though a specific percentage was not disclosed.

Wyatt Swanson inquired about CarGurus' international ambitions for 2026, specifically asking what strategies are being employed to gain market share from competitors, given CarGurus' position as a strong number two player. He also asked for quantification of the EBITDA drag related to international expansion in the full-year margin outlook.

Answer

President and COO Sam Zales highlighted that international businesses are now sizable, fast-growing, and profitable, driven by tremendous lead growth and quality, with dealers ranking CarGurus number one in ROI. He noted that market dynamics, including competitor actions, are opening up opportunities for CarGurus to diversify dealer spend. CEO Jason Trevisan added that CarGurus does not break out specific EBITDA drag for international operations, but confirmed they are high-growth, profitable businesses and the second biggest area of investment.

Wyatt Swanson inquired about CarGurus' international ambitions for 2026, specifically strategies to gain market share from competitors, given its position in those markets. He also asked for a quantification of the EBITDA drag from international expansion reflected in the full-year margin outlook.

Answer

Sam Zales, President and Chief Operating Officer, clarified that CarGurus is the number two player in its international markets (Canada and the U.K.) and rapidly gaining on number one. He attributed this growth to driving lead growth and quality, achieving a #1 ROI ranking among dealers, and benefiting from market diversification away from competitors. He highlighted 27% international revenue growth in Q4 and plans to introduce U.S. product innovations like Discover and Dealership Mode to international markets. Jason Trevisan, Chief Executive Officer, stated that CarGurus does not break out EBITDA by segment, but noted international operations are high-growth and profitable.

Wyatt Swanson of D.A. Davidson & Co. inquired about the potential impact of Amazon's reported entry into the used vehicle market and whether CarGurus has observed any changes in consumer engagement with Hyundai vehicles following Amazon's new car partnership.

Answer

Jason Trevisan, CEO, responded that while CarGurus is aware of Amazon's activities, the used car market is significantly more complex and less structured than the new car market, requiring deep dealer trust that CarGurus has cultivated over two decades. He stated that the company has not seen any change in trends related to Hyundai vehicles on its platform.

Wyatt Swanson asked if the highly fragmented nature of the experiences market makes it better insulated from potential AI disintermediation and how experiences are uniquely positioned within the travel space.

Answer

Matt Goldberg, President and CEO, affirmed that the long tail of fragmented supply, comprising hundreds of thousands of small businesses, does insulate the experiences market from AI disintermediation. He highlighted that experiences are less dependent on SEO traffic, and it's challenging to structure this diverse supply base, connect it to consumers, and manage the marketplace infrastructure, customer service, and logistical complexities. He concluded that Tripadvisor's effective competition in high-intent demand channels and its focus on repeat economics further strengthen the durability and defensibility of its position.

Wyatt Swanson asked how the highly fragmented nature of the experiences market might insulate it from potential AI disintermediation and how experiences are uniquely positioned within the broader travel space.

Answer

President and CEO Matt Goldberg agreed that the long tail of fragmented supply insulates against AI disintermediation. He cited other reasons for durability, including less reliance on SEO, the difficulty of structuring supply and connecting it to consumers, and effective competition in high-intent demand channels driving repeat economics.

Wyatt Swanson of D.A. Davidson & Co. asked about the outlook for operating expense growth in 2025 and the company's willingness to curtail long-term investments to protect profitability. He also inquired about the anticipated impact of agentic AI on the business and requested an update on agent commission rate trends following the NAR settlement.

Answer

Glenn Sanford, Founder, Chairman and CEO, emphasized the company's variable cost structure allows for flexibility but stated they would not kill growth momentum, especially in international markets, by cutting back. He projected that AI will allow eXp to operate with one-third to one-half of its current staff within five years. Leo Pareja, Chief Strategy Officer, addressed commissions, stating they have not seen any meaningful change post-settlement, viewing the adjustments as primarily procedural and educational.

On behalf of Tom White, Wyatt Swanson asked for clarity on top-line growth expectations for 2025 and inquired about the company's perspective on how a potential change in presidential administration might impact the automotive retail sector.

Answer

Executive Jantoon Reigersman reiterated the goal of accelerated revenue growth in Q4 and the long-term 2026 targets, but cautioned that the business is not always linear, making specific 2025 quarterly predictions difficult. Regarding the political landscape, Reigersman stated the company remains focused on its core business of serving dealers and consumers. He identified vehicle affordability as the primary industry headwind but declined to speculate on the specific impacts of any administration change.

Wyatt Swanson, on for Tom White, asked about the business's resilience to potential commission compression following the NAR settlement and inquired about management's view on the potential impact of a Trump presidency on the housing market.

Answer

Chairman and CEO Tamir Poleg explained that the business is resilient because over 50% of transactions come from 'cappers' who pay a flat fee, mitigating the impact of lower commission rates. He also suggested that industry-wide commission pressure could accelerate agent growth at Real. Regarding the election, both Mr. Poleg and President Sharran Srivatsaa emphasized the company's proven ability to grow regardless of external market or political factors, stating their focus remains on internal execution and value creation.