Ygal Arounian

Ygal Arounian inquired about the specific drivers of macroeconomic uncertainty in Kazakhstan and whether consumer boycotts in Turkey have altered Kaspi's near-term strategy or integration timeline for its recent acquisitions.

Answer

Executive David Ferguson attributed the macro uncertainty to lower oil prices, commodity volatility, and resulting currency weakness, which has led to a conservative outlook. Regarding Turkey, both Ferguson and CEO Mikheil Lomtadze affirmed that long-term plans remain unchanged, with a focus on product quality. Lomtadze added that the Rabobank acquisition is awaiting regulatory approval, expected in the second half of the year, which is the primary gating item for launching new fintech products.

Ygal Arounian asked about the key growth initiatives for the Marketplace segment and whether successful products like e-Auto and e-Grocery would be introduced in Turkey. He also sought the rationale for launching Kaspi-branded services in Turkey independently of Hepsiburada.

Answer

CEO Mikheil Lomtadze explained that Marketplace growth is driven by its low penetration and the natural user migration from Payments to e-Commerce, with e-Grocery having significant potential limited only by infrastructure rollout. Regarding Turkey, he stated that Hepsiburada is a strong foundation, and Kaspi will launch services where it makes the most sense, whether through Hepsiburada or as a standalone Kaspi brand, depending on where the capabilities and technology reside.

Ygal Arounian from Citi asked about Ziff Davis's M&A strategy regarding expansion into new verticals or higher-growth areas, and provided an update on the company's approach to AI licensing, including discussions around marketplace models and content compensation.

Answer

CEO Vivek Shah stated that Ziff Davis prioritizes acquiring leadership brands that can define their business models by demand, not supply, and will continue to seek businesses that enhance existing leadership or establish it in new categories. Regarding AI licensing, he confirmed active discussions and optimism about a growing market consensus for compensating content owners. Ziff Davis will only sign deals that provide fair value exchange, noting that blocking AI bots (via Cloudflare and others) creates quality issues for AI models. He also mentioned joining Real Simple Licensing (RSL) and the RSL Collective, expressing confidence in a future business model where content receives compensation from AI systems.

Ygal Arounian asked if Ziff Davis is considering expanding into new, higher-growth verticals through M&A, and for an update on AI licensing discussions, particularly regarding a marketplace model and the impact of Cloudflare blocking.

Answer

CEO Vivek Shah stated Ziff Davis prefers acquiring leadership brands that can define their business models by demand. He confirmed active AI licensing discussions, encouraged by the growing consensus for compensating content owners. He emphasized not signing deals without fair value exchange and noted that Ziff Davis, like others, blocks AI bots via CDN layers, which creates a quality problem for AI models. He also mentioned joining RSL (Real Simple Licensing) and the RSL Collective, expressing optimism for a new business model where content owners are compensated by AI systems.

Ygal Arounian asked for an update on the impact of AI in search on traffic and the company's strategy with LLMs, and also inquired about the new 'moments of influence' ad product.

Answer

CEO Vivek Shah reiterated Ziff Davis's low exposure to search volatility, emphasizing its diversified, non-traffic-based revenue streams. He confirmed the ongoing lawsuit against OpenAI for fair compensation while also pursuing partnerships and blocking AI bots at the CDN level. Regarding the 'moments of influence' product, Shah described it as a proprietary AI platform using first-party data to create targetable audience segments, with the first version showing good traction in the Health group.

Ygal Arounian asked about the capital allocation strategy, specifically the balance between M&A and share buybacks, and whether OpenAI's lobbying efforts influenced the decision to file a lawsuit.

Answer

CFO Bret Richter addressed capital allocation, confirming an active strategy of pursuing M&A while accelerating share repurchases, having bought back nearly 10% of shares outstanding in the last year. CEO Vivek Shah responded to the OpenAI question, stating that the lawsuit is a prudent course to gain legal finality on copyright law, and that recent court decisions in similar cases provide confidence in their position.

Ygal Arounian asked about capital allocation strategy for 2025, specifically questioning the pace of M&A, the lack of Q4 share buybacks, and the influence of Generative AI on acquisition targets. He also followed up on the company's strategy for licensing content to LLMs.

Answer

CEO Vivek Shah stated that the M&A pipeline is very active across all five new segments and that he is optimistic for a level of capital deployment consistent with 2024's $225 million. He noted that attractive valuations in digital media present an opportunity. On licensing, Shah said Ziff Davis is open to fair value, long-term deals but feels no pressure to move quickly. CFO Bret Richter added that capital allocation is opportunistic, not programmatic, highlighting the significant buybacks and debt exchange in 2024 and the need to remain patient on M&A pricing.

Ygal Arounian inquired about the drivers for the expected Q4 revenue acceleration, specifically asking if a return to organic growth is anticipated. He also asked for an expanded view on Generative AI's impact on search traffic and the company's overall strategy.

Answer

CFO Bret Richter attributed the Q4 outlook to underlying business trends, advertising seasonality, and a full quarter of CNET, but did not comment on a specific organic growth target. CEO Vivek Shah added that organic growth in Q3 was weighed down by the B2B and Cybersecurity/Martech segments. Regarding AI, Shah clarified that AI Overviews appear on about 10% of key queries and that the company benefits from diversified traffic sources beyond search, emphasizing the value of its authoritative brands.

Ygal Arounian sought further clarification on the preliminary outlook for 'positive GMV growth' in 2026, considering the identified headwinds, and requested more detailed information on the impacts of de minimis changes.

Answer

CFO Peggy Alford stated that 2026 planning is early, but core growth drivers remain strategic initiatives, with eBay Live and vehicles expected to contribute significantly. She acknowledged lapping dynamics from trading cards, bullion/coins, and marketing efficiency, and confirmed that the one-point headwind for GMV growth from de minimis changes reflects annualizing current trends. CEO Jamie Iannone elaborated on de minimis impacts, noting breakage in Q3, particularly for Japan and Canada, and highlighted eBay's accelerated product roadmap for cross-border shipping solutions like eBay International Shipping in Canada and SpeedPAK for German sellers to help navigate these challenges.

Ygal Arounian sought further clarification on eBay's preliminary 2026 guidance for 'positive GMV growth,' considering the three points of headwind impact, and requested more detailed insights into the de minimis impacts.

Answer

CFO Peggy Alford stated that while it's early for specific 2026 guidance, strategic initiatives remain core growth drivers, and reiterated expected lapping dynamics, including the annualized de minimis impact. CEO Jamie Iannone detailed the Q3 de minimis breakage, particularly affecting Japan and Canada, and highlighted eBay's accelerated cross-border shipping solutions (eBay International Shipping in Canada, Speedpack for Germany) to help sellers navigate these challenges and provide price transparency.

Ygal Arounian from Citigroup asked about opportunities for operational efficiency under the new CFO and questioned the potential impact if de minimis tariff exemptions were expanded to other trade corridors beyond China-U.S.

Answer

CFO Peggy Alford emphasized that the first priority is investing in organic GMV growth, which drives margins, while continuously seeking efficiencies to fund these investments. CEO Jamie Iannone explained that the net impact from the China-U.S. tariff changes was modest due to offsetting factors, and confirmed that the company's full-year guidance already contemplates a range of potential tariff scenarios.

Ygal Arounian questioned the reasons for the GMV growth deceleration from Q4 2024 to the Q1 2025 forecast and the drivers for the implied acceleration later in the year. He also asked if the benefits from proprietary LLMs could be quantified in terms of topline or margin impact.

Answer

CFO Stephen Priest attributed the Q1 decel to coming off a strong holiday season, ongoing macro challenges, and calendar effects like the leap year. CEO Jamie Iannone added that the full-year outlook is based on underlying business momentum, not material contributions from new initiatives like Caramel or Facebook. Regarding AI, he noted over 10 million sellers have used GenAI tools, creating billions in GMV, and highlighted significant improvements in model efficiency and accuracy.

Ygal Arounian inquired about the monetization strategy for eBay's C2C initiatives in the U.K., including the timeline to reach breakeven and the potential for U.S. expansion. He also asked about the quantifiable impact of the second-generation Large Language Models (LLMs) on GMV growth.

Answer

CEO Jamie Iannone explained that the U.K. C2C monetization is being phased in, with managed shipping ramping in Q4/Q1 and buyer fees starting in late Q1 2025, causing a temporary revenue lag. He expressed confidence in remonetizing through multiple levers and stated there are no current plans to bring the free-to-sell model to the U.S. market. Regarding AI, he noted that over 10 million sellers have used the new tools, generating several billion dollars in cumulative GMV from over 100 million enhanced listings.

Ygal Arounian from Citi asked for early insights from the Gen AI partnership, including data on coverage or average selling price, and whether there's an Etsy Ads or Offsite Ads opportunity. He also sought updated thoughts on M&A and capital allocation, particularly regarding a "House of Brands" strategy and opportunities in the resale market.

Answer

CEO Josh Silverman reported an early spike in purchases from the Gen AI partnership, noting higher intent traffic but from a very small base. CFO Lanny Baker discussed capital allocation, emphasizing two strong brands (Etsy, Depop), aggressive stock buybacks, and a focus on leaning into existing assets rather than M&A, while acknowledging potential for other interesting brands.

Ygal Arounian asked for early insights from the GenAI partnership, such as coverage or average selling price, and if there's an Etsy Ads or offsite ads opportunity. He also sought updated thoughts on M&A and capital allocation, particularly regarding opportunities in the resale market alongside Depop.

Answer

CEO Josh Silverman reported a spike in purchases from the GenAI partnership, albeit from a very small base, with higher intent traffic than traditional search. CFO Lanny Baker stated that Etsy has two incredible brands in Etsy and Depop, and while they might consider other attractive brands, they are aggressively buying back stock, believing in the long-term value of their current assets. He emphasized leaning into Etsy's improved momentum and Depop's growth opportunity with increased capital deployment.

Ygal Arounian asked about the potential impact of de minimis trade rule changes and for a vision on how new AI shopping agents, like those from OpenAI and Microsoft, could change e-commerce for Etsy.

Answer

CEO Josh Silverman explained that the current de minimis proposal, which only impacts China, is a 'best case scenario' for Etsy due to its minimal (1%) GMS exposure. Regarding AI, he sees it as a net positive, envisioning AI agents offering Etsy as a unique, customized alternative to mass-market goods. He noted that major AI firms are eager to partner with Etsy due to its unique data and engineering capabilities.

Ygal Arounian inquired about the specifics of VeriSign's marketing programs, including their effectiveness, any changes in discounting cadence, and their impact on SG&A. He also sought further clarification on the breakdown of parked domains in relation to Google AdSense changes and an update on the .web timeline and expectations for the upcoming ICANN new gTLD round in 2026-2027.

Answer

Executive Vice President and CFO John Calys stated that marketing programs, accounted for as a reduction in revenue, contributed to 2025 growth by shifting towards higher-quality, higher-renewing names, with positive registrar feedback for 2026 programs. He clarified that SG&A increases were due to incentive compensation and legal costs, not marketing. Executive Chairman, President and CEO Jim Bidzos reiterated that Google's AdSense changes have been eroding ad-monetized domains for 15 years, distinguishing them from domains purchased for resale. Jim Bidzos also confirmed the .web final hearing is scheduled for mid-November 2025 and discussed the ICANN 2026 new gTLD round, noting it will not involve auctions, is expected to open in Q2 2026, and deployment is likely in 2027.

Ygal Arounian, Director, Internet Equity Research at Citi, sought clarification on the specifics of VeriSign's marketing programs, including the extent of discounting and its impact on the SG&A line, and asked for a more detailed breakdown of parked domains, distinguishing between those monetized by advertising and those held for resale or defensive purposes, in light of Google AdSense changes. He also requested an update on the .web timeline and expectations, as well as insights into the upcoming 2026/2027 new gTLD round process.

Answer

John Calys, Executive Vice President and CFO, clarified that marketing program costs are accounted for as a reduction in revenue, not in SG&A, and that the SG&A increase was due to incentive compensation and legal costs. He emphasized that programs are designed for higher quality, higher-renewing names, are continuously reviewed, and have received positive initial feedback for 2026. Jim Bidzos, Executive Chairman, President and CEO, reiterated that Google's AdSense changes have been a long-term trend, leading to minimal impact on VeriSign, and differentiated domains purchased for resale (which may be parked) from those solely for ad monetization, without providing a specific segment breakout. Regarding .web, Jim Bidzos stated no new substantive information, with the final hearing still scheduled for mid-November 2025, and reiterated VeriSign's intent to operate it. For the 2026 new gTLD round, he noted it's expected to open in Q2 2026, will not involve auctions, and deployment is likely earliest in 2027 due to process.

Ygal Arounian from Citigroup asked about the relationship between marketing programs and registrar strategy, the potential of 2026 programs, updates on new TLDs like .web, and the long-term impact of Generative AI on domain demand.

Answer

D. James Bidzos, Executive Chairman, President & CEO, clarified that registrar focus on customer acquisition and VeriSign's marketing programs are synergistic, concurrent trends. He indicated that learnings will improve 2026 programs but it's too early to forecast their impact. He provided an update on the .web arbitration timeline (hearing in Nov 2025) and viewed Generative AI as a net positive for domain demand by increasing the need for web content and improving name suggestion tools, while noting VeriSign's cautious internal adoption of AI.

Ygal Arounian asked for clarification on the interplay between registrar strategy and VeriSign's marketing, the potential for 2026 programs to accelerate growth, updates on new gTLD opportunities including .web, and the long-term impact of Generative AI on domain demand.

Answer

CEO D. James Bidzos described the registrar focus and marketing efforts as synergistic and expressed confidence that 2026 programs can be improved based on current learnings. He provided an update on the .web arbitration timeline, noting a final hearing is scheduled for November 2025. Regarding AI, Bidzos stated VeriSign sees it as a net positive for domain creation and content, while emphasizing the company's cautious, low-risk approach to implementing AI in its own critical infrastructure.

Ygal Arounian inquired about the timing of VeriSign's new dividend, its potential impact on share buybacks, the primary drivers of the Q1 domain name base outperformance, factors influencing the full-year guidance range, and the company's pricing strategy for the .net TLD.

Answer

Executive Chairman, President and CEO Jim Bidzos and EVP and CFO George Kilguss explained that initiating a dividend is a strategic move to diversify shareholder returns, reflecting confidence in the business's stability, and does not change the overall capital return philosophy. Kilguss attributed the strong Q1 domain performance and updated guidance to positive trends in new registrations and renewals, while noting the guidance retains a measure of caution due to macroeconomic uncertainty. Regarding .net pricing, Kilguss stated that while the company regularly reviews its strategy, it does not provide forward-looking guidance on price changes.

Ygal Arounian of Citi sought to clarify the distinction between cyclical registrar trends and Verisign's marketing initiatives as growth drivers. He also inquired about marketing spend levels, the strong Q4 gross new registration figures, and the company's strategy regarding upcoming new gTLD auctions and the status of the .web TLD.

Answer

CEO Jim Bidzos clarified that new marketing programs and the cyclical registrar shift are distinct positive trends; the programs offer flexibility to a diverse channel, while the shift is a separate tailwind. CFO George Kilguss noted this is mainly a strategic shift, with costs included in guidance. Kilguss attributed the strong Q4 new registration numbers to early success from these new programs. Regarding new TLDs, Bidzos confirmed Verisign's continued interest in .web, which is in an ICANN arbitration process, and stated the company is considering its options for the next round of gTLDs.

Ygal Arounian requested an update on Arrow's success in converting landing pages to full websites and driving product attachment, and also asked about learnings from the shift to a cohort-based view for pricing and bundling.

Answer

CEO Aman Bhutani confirmed that Arrow is increasingly the primary path for customers to adopt a paid website, as AI builds the site for them. CFO Mark McCaffrey added that volume-based drivers (like attach) and price-based drivers are now contributing equally to growth. Bhutani described the cohort-based approach to pricing as 'fantastic,' as it improves renewal rates by focusing on the entire customer relationship and success.

Ygal Arounian inquired about the quantifiable impact of Airo on average order size and product attach rates, the reasons for the sequential decline in customer count, and the effectiveness of the recent Super Bowl advertising campaign.

Answer

CFO Mark McCaffrey confirmed that Airo continues to drive higher average order sizes and faster attachment of a second product, similar to Q4, which is positively impacting customer retention. CEO Aman Bhutani added that the stable customer count reflects the lapping of prior divestitures and a strategic focus on higher-intent customers, not raw growth. He also noted the new ad campaign is successfully increasing awareness of GoDaddy's broader product suite.

Ygal Arounian asked about the factors that would determine results at the high or low end of the 2025 revenue guidance range and requested an update on capital allocation, particularly share buybacks.

Answer

CFO Mark McCaffrey identified the transactional business, especially the volatile aftermarket domain segment, as the key variable in the revenue range. Regarding capital allocation, he stated there is no change to their disciplined, returns-based framework and that buyback activity in any single quarter is not indicative of a long-term trend.

Ygal Arounian asked for an update on Airo monetization, specifically how engagement is translating to financial results, and inquired about the expansion of bundling initiatives beyond the productivity suite.

Answer

CEO Aman Bhutani explained the Airo strategy focuses on discovery and engagement first, which then leads to monetization. He confirmed that paywalls are driving results, with 40% of Websites + Marketing subscriptions now originating from the Airo experience. He noted that bundling initiatives are expanding beyond productivity to cohorts that will benefit both the A&C and Core Platform segments.

Sought to reconcile the reported strong advertiser response with the significant U.S. revenue decline, understand the factors driving the wide range of Q4 outcomes, and get more detail on the impact of GenAI on traffic and any plans to monetize it.

Answer

The company explained that performance issues are operational and localized to the US, UK, and France, while the overall product strategy is well-received. Confidence for Q4 stems from improving leading indicators. The GenAI impact has been minimal, mitigated by their content mix, publisher engagement efforts, and consistently growing revenue per page (RPM).

Asked about the performance trend of the legacy Teads business, the factors influencing the full-year EBITDA guidance, and the opportunity in performance advertising on CTV.

Answer

The legacy Teads business has shown month-over-month improvement in early 2025, recovering from Q4 headwinds. The full-year guidance reflects this improving trend and continued momentum from the legacy Outbrain business, with a return to pro forma growth expected in H2 2025 as synergies ramp up. Regarding CTV, the company sees a huge opportunity for performance advertising. While Teads' CTV business has been branding-focused, the combination with Outbrain's performance customer base and capabilities is a unique advantage and a key part of the strategic product roadmap.

Ygal Arounian from Citigroup sought to understand the potential floor for the user base as it is refined and how Bumble plans to rebuild it, and also asked for help framing how margins might evolve with planned reinvestments.

Answer

Founder & CEO Whitney Wolfe Herd clarified the strategy is more about improving existing user profiles than mass removals, with the 'remove' category being less than 10% of users. Interim CFO Ron Fior provided outlook, noting trust & safety initiatives will impact revenue in Q3/Q4, while brand marketing will increase from Q2 levels. He also mentioned targeted headcount additions in US engineering, with Wolfe Herd reiterating marketing spend will be precise and brand-focused.

Ygal Arounian asked how pulling back on performance marketing affects the long-term view of the addressable market and if the new quality-focused strategy is a significant pivot from past efforts.

Answer

Founder and CEO Whitney Wolfe Herd stated that the total addressable market for love remains massive, but the company must prioritize quality over scale, which requires a temporary pullback on performance marketing. She clarified this is a 'hyper-acceleration' and a more committed 'all-in' strategy than in the past, where the company tried to pursue both quality and payer growth simultaneously.

Ygal Arounian asked about potential changes to strategy with Whitney Herd's return and the path from user engagement to monetization.

Answer

CEO Whitney Herd emphasized strategic alignment with her predecessor, focusing on customer-centricity to solve user pain points. Outgoing CEO Lidiane Jones elaborated that while engagement is the immediate priority, the revenue strategy is being developed in parallel. This involves rebalancing subscription tiers and optimizing paywalls to drive conversion once the engagement foundation is solid.

Ygal Arounian inquired about the expected timeline and contribution curve for new product initiatives and sought clarity on the capital allocation philosophy, particularly balancing aggressive share buybacks with necessary investments for growth.

Answer

CEO Lidiane Jones stated that while early tests on strategic initiatives are encouraging, the full benefits will take multiple quarters to materialize. CFO Anu Subramanian detailed the capital allocation strategy, prioritizing organic growth investment for 2025, followed by opportunistic M&A and shareholder returns through their existing buyback program.

Ygal Arounian asked about the strategic relationship between Wix's core editor and new 'Vibe coding' platforms like the recently acquired Base44, questioning if it's a complementary offering or a future replacement, and how it impacts the partner ecosystem and competitive landscape.

Answer

Co-Founder & CEO Avishai Abrahami explained that Vibe coding is complementary, excelling at application and prototype building, while the visual editor remains superior for website design. He emphasized that Wix provides a full ecosystem with compliance and security that standalone Vibe coding tools lack, and that Base44 targets a different user intent, highlighting Wix's own accelerating growth as a sign of a non-cannibalistic relationship.

Ygal Arounian inquired about the new Wixel platform, asking for details on its product roadmap, monetization strategy, and long-term market potential. He also asked for a broader perspective on the evolving AI landscape, including the "vibe coding" concept and its impact on Wix's product evolution.

Answer

CEO Avishai Abrahami described Wixel as an early-stage product that opens a new user funnel with a separate subscription model, highlighting initial partnerships with Microsoft and OpenAI. Regarding AI's evolution, Abrahami characterized "vibe coding" as a promising but immature technology. He affirmed Wix's strategy is to remain ahead of the curve, integrating such advancements to expand its market, while acknowledging the technology needs time to mature for mass-market use.

Ygal Arounian inquired about the key drivers for the projected acceleration in bookings growth throughout 2025, especially given more difficult comparisons in the second half of the year. He also asked for commentary on premium subscriber growth trends in light of improving user conversion.

Answer

CFO Lior Shemesh explained that the 2025 growth acceleration is expected from the compounding impact of new, faster-growing cohorts from products like Wix Studio and the increasing effect of AI on user conversion as the year progresses. President & COO Nir Zohar added that while the company de-emphasizes net subscriber count as a primary KPI in favor of cohort value, they do anticipate a positive trend in net subscriber additions for 2025 after the headwinds of 2024.

Ygal Arounian asked about the specific contribution of Wix Studio to bookings and revenue, whether Wix is benefiting from recent issues at WordPress, and how the projected 18% bookings growth exit rate will impact revenue growth in the upcoming year.

Answer

CFO Lior Shemesh stated that Studio is a significant driver, with 75% of new partner bookings coming from the platform. CEO Avishai Abrahami added that Wix benefits from a long-term trend of users moving from platforms like WordPress, which is contributing to positive top-of-funnel trends. An executive confirmed the 18% exit rate will translate into revenue growth next year, driven by product innovation, conversion improvements, and increased demand.

A representative for Yigal Arounian asked about the impact of macroeconomic trends on the full-year guidance and sought details on the pace of share buybacks and the overall capital allocation strategy.

Answer

CEO Jeff Kip acknowledged macro headwinds earlier in the quarter but noted a recovery in pro win rates in June and July, attributing outperformance to strong execution. On capital allocation, he confirmed a significant Q2 buyback but cautioned that the pace would not be sustained every quarter due to limitations related to the company's tax-free spin.

Ygal Arounian asked how Angi's strategy might change as a stand-alone company and what new flexibility this independence provides. He also requested expectations for the upcoming self-serve online pro acquisition platform regarding its potential to grow the pro network and drive efficiency.

Answer

CEO Jeffrey Kip stated that the core strategy remains unchanged from its time with IAC, focusing on improving the 'jobs done well' rate with positive unit economics. He noted that being independent provides a more liquid stock for compensation and potential M&A, though it's not a short-term focus. Regarding online pro acquisition, Kip pointed to the success in Europe (acquiring over 10,000 pros a month) as a model. While not projecting similar numbers for the U.S. initially, he expects it to increase network liquidity and grow capacity in a cost-efficient way, targeting a high LTV-to-CAC ratio similar to the European model.

Ygal Arounian requested more detail on the specific consumer experience improvements being focused on at Angi and asked what steps are needed to transition its SEO performance from stabilization to a growth driver.

Answer

Angi Inc. CEO Jeff Kip explained that SEO growth requires disciplined execution on content and site linking, for which the technical infrastructure has been rebuilt. On the consumer experience, he said the focus is now on driving 'better matches' by improving the job intake Q&A process. This provides more job clarity, leading to better pro matching and a higher likelihood of a well-done job.

An analyst for Ygal Arounian of Citigroup requested details on the performance of the new distributed platform, including early conversion metrics and the economic model with partner agents. A follow-up question concerned the pace of acquisitions and whether the previously mentioned 'barbell shape' strategy for the year remains intact.

Answer

CEO Carrie Wheeler highlighted strong early results for the new platform, including twice as many customers reaching a final offer and a fivefold increase in listing conversions. She explained that for listings, Opendoor takes a share of the agent's commission, and for Cash Plus, the model reduces upfront capital and improves downside protection while targeting a similar contribution margin. CFO Selim Freiha confirmed the company still expects a 'barbell' acquisition pace, with volumes expected to increase in Q4, contingent on the macro environment.

Ygal Arounian inquired about the health of Opendoor's older inventory and the potential risk of write-downs amid market softness. He also asked for a detailed explanation of the new agent partnership model, its differentiation from past products like 'List with Opendoor' and 'Marketplace,' and the intended channel mix.

Answer

Executive Selim Freiha stated that margin decay on older homes is a typical pattern and that valuation expectations are already factored into their outlook and spreads. CEO Carrie Wheeler clarified the new agent partnership 'flips the script' by sending Opendoor's customer referrals to agents earlier in the process to improve conversion. She positioned it as a primary go-to-market channel, noting that 'Marketplace' expansion is paused to focus on this more immediate opportunity.

Ygal Arounian inquired about the performance of 'List with Opendoor' since its market expansion, the potential for products outside the traditional buy box, and the company's strategy for managing upcoming debt maturities and liquidity. He also asked how the company's approach to its buy box might change as market conditions evolve.

Answer

CEO Carrie Wheeler explained that 'List with Opendoor' is still a small part of the business but will be leaned into more in 2025. On the buy box, she clarified that Opendoor has not retrenched but has improved price segmentation to better manage risk. CFO Selim Freiha addressed the balance sheet, noting that over 90% of borrowing capacity is extended through at least 2026 and that the company feels good about its liquidity position, constantly evaluating its capital structure regarding the 2026 convertible notes.

Ygal Arounian inquired about Opendoor's path to adjusted net income breakeven amid a challenging housing market and asked if recent cost reductions are sufficient. He also followed up on the progress and long-term strategy for the company's asset-light products.

Answer

Interim CFO Christy Schwartz stated that recent cost reductions are significant steps toward achieving adjusted net income profitability, but the timeline is dependent on macro factors. She confirmed the cuts do not impair the company's ability to scale. CEO Carrie Wheeler added that the 'List with Opendoor' product is now nationwide and accretive, while the 'Marketplace' product is expanding from one to three markets, reflecting the long-term goal to diversify into less capital-intensive models.

Ygal Arounian asked about potential payer headwinds from trust and safety features at Tinder and how alternative payment adoption might differ between Tinder and other brands.

Answer

CEO Spencer Rascoff explained that current trust and safety initiatives are actually a tailwind to audience growth by reducing the number of incorrectly banned good users. CFO Stephen Bailey added that Tinder's alternative payment tests are showing results similar to other brands—a roughly 30% shift to web and a 10%+ increase in net revenue—giving him confidence in the overall $65M+ AOI opportunity for 2026.

Ygal Arounian asked what had changed since the December Investor Day to prompt the cost cuts for reinvestment, and requested more detail on Tinder's product roadmap and its 'broader definition of connection'.

Answer

CFO Steven Bailey clarified that the margin targets haven't changed, but the company accelerated cost reduction plans to secure the 36.5% margin goal for 2025 while funding necessary growth investments. CEO Spencer Rascoff added that he pulled forward organizational changes to reinvest the savings sooner. For Tinder, he highlighted a rightsized team, increased product velocity, and a roadmap focused on changing user perception with features like 'Double Date' and AI-driven matches, comparing the product-led turnaround to those at Snap and Uber.

Ygal Arounian sought clarification on the 2025 margin outlook, questioning why the high end of the guidance range might be lower and asking about the conviction behind investment levels.

Answer

Incoming CFO Steven Bailey committed to at least 50 basis points of margin expansion in 2025, explaining this is at the lower end of the Investor Day range due to worsening FX headwinds, not increased investment. He reaffirmed confidence in the 3-year margin target of 39% and noted the typical seasonal margin cadence is expected to continue.

Ygal Arounian asked about the impact of recent Tinder features like Spotlight Drops and the expanded Explore tab, and sought clarity on the future product cadence.

Answer

CEO Bernard Kim stated these features are showing promising early results and are providing valuable insights into user behavior and recommendation algorithms. He described them as foundational steps that are informing larger-scale innovations planned for 2025, with an intentional, step-by-step rollout cadence.

Ygal Arounian asked for clarification on comments about consolidating People Inc.'s brand portfolio and whether future GenAI trends might require higher investment levels. He also inquired about IAC's active involvement in MGM's digital gaming strategy.

Answer

People Inc. CEO Neil Vogel clarified that comments on the brand portfolio referred to non-core brands and that investment levels are sufficient, with no outsized spending anticipated that would alter the guided margin profile. IAC CFO & COO Christopher Halpin added that IAC acts as an active and supportive board member at MGM, providing perspective through Barry Diller and others to the MGM management team to help drive the success of BetMGM, a core part of their investment thesis.

Ygal Arounian asked for more detail on the strength in Dotdash Meredith's premium advertising business and for an update on the M&A environment.

Answer

Neil Vogel, CEO of DDM, said the premium ad business was 'super strong' entering the year and remains solid, though advertiser sentiment is cautious given the macro environment. Christopher Halpin, an IAC executive, added that guidance accounts for some slowdown but no major recession. On M&A, Halpin confirmed IAC is actively looking at opportunities of all sizes, focusing on digital experiences and areas where AI can influence consumer interaction.

Ygal Arounian asked for more detail on the impact of Google's AI Overviews on DDM's traffic and sought to understand the company's strategy for protecting its intellectual property.

Answer

IAC CEO Joey Levin stated that the impact from AI Overviews on DDM's total traffic is minimal, as the feature is not on all queries and the per-query impact is low. He expressed confidence that DDM's high-quality content will continue to perform well. On intellectual property, Levin affirmed that the company is prepared to protect its content if platforms use it without providing compensation or traffic, though he noted this has not been an issue so far.

Ygal Arounian asked for an update on Agentic AI client engagement and monetization progress, and also requested a deeper dive into the expanded agency partnerships, including the go-to-market motion and financial impact.

Answer

CEO Michael Komasinski and CPO Todd Parsons clarified that Agentic AI is in early stages, with partners focused on discoverability and controlling their data. For agency partnerships, Mr. Komasinski detailed a three-pronged strategy involving commercial agreements, data integration, and co-development. CFO Sarah Glickman added that agency deals are the fastest-growing part of the business, with agency-driven retail media spend growing from 30% to 38% of the mix year-over-year.

Ygal Arounian inquired about the unexpected pullback from Criteo's largest retail media partner, asking for the rationale, the risk of a broader in-housing trend, and details on the softer macroeconomic trends observed in April.

Answer

CEO Michael Komasinski characterized the client change as a unique situation for a large, long-standing partner and not indicative of a wider trend, as Criteo's technology remains differentiated. CFO Sarah Glickman added that the client is curtailing managed and demand-gen services but remains a technology partner under a multiyear contract. Regarding the macro, she confirmed softness in April, particularly in beauty and fashion, but emphasized the overall resilience of the performance business.

Ygal Arounian asked about the drivers of Q4's retail media strength, the outlook for take rates in 2025, and the factors contributing to the significant adjusted EBITDA margin outperformance in the fourth quarter.

Answer

CEO Megan Clarken and CPO Todd Parsons highlighted Criteo's strong market position and product suite in retail media. CFO Sarah Glickman attributed the Q4 strength to exceptional media spend growth, particularly during the Cyber 6 period, and higher fees from achieving annual volume thresholds. Glickman explained the margin beat resulted from top-line operational leverage, favorable foreign exchange rates, timing of hiring, and lower bad debt expense due to strong collections.

Ygal Arounian questioned the Q4 guidance, which implies a sequential growth slowdown, asking for clarification on the impacts from a shorter holiday season, the absence of political ad spend, and the IPONWEB customer issue. He also inquired about the growth potential of the off-site retail media opportunity.

Answer

CFO Sarah Glickman attributed the tightened guidance primarily to the isolated AdTech services issue, tough year-over-year comps, and some supply crowding out from political ad spend. CEO Megan Clarken highlighted the off-site opportunity as one of many use cases driving growth, noting strong traction with major clients like Costco and United Airlines.

Ygal Arounian from Citigroup Inc. asked about the range of potential outcomes from the dynamic tariff situation, particularly if tariffs are reinstated on non-China countries, and how Wayfair's advertising strategy could be used to gain share in this environment.

Answer

CEO Niraj Shah noted the difficulty in projecting outcomes but highlighted that suppliers have diversified production since 2019 and that Wayfair's platform, with products from over 100 countries, provides flexibility. CFO Kate Gulliver emphasized the company's focus on controlling its cost structure, which allows it to partner with suppliers to deliver value and gain share. Regarding advertising, Niraj Shah explained that spend is managed for payback and to grow EBITDA dollars, while Kate Gulliver added that recent testing has revealed new opportunities for unlocks over time.

Ygal Arounian asked for more detail on Wayfair's market share gains and the drivers behind them, and also questioned the level of confidence in the 2025 EBITDA growth commentary, particularly if the market does not improve.

Answer

CEO Niraj Shah attributed the consistent market share gains since late 2022 to a wide range of factors beyond just price optimization, including logistics network improvements and storefront technology enhancements. He asserted that Wayfair can continue gaining share regardless of the macro environment. CFO Kate Gulliver clarified the 2025 outlook, stating the company is focused on growing absolute adjusted EBITDA dollars through a combination of ongoing cost discipline and the revenue growth driven by current investments.

Asked about the potential traffic impact from the Zillow rentals partnership, the outlook for agent attrition and hiring, and whether the combination of factors points to significant market share gains in 2025.

Answer

The Zillow partnership is expected to provide a significant traffic benefit for both rentals and the overall site. Major agent attrition from the 'Next' transition is over, and hiring will continue. The company's plan is indeed to leverage its larger agent force, increased marketing, and strong listing demand to achieve significant market share gains in 2025.

Asked for more detail on the expected impact of the NAR settlement on buy-side commissions, the strategy to gain volume with lower fees, and the path to achieving significant profitability.

Answer

Executives noted that early data shows a trend towards lower commission rates. Redfin plans to use its 'Sign & Save' program to leverage price as a competitive tool to gain market share. The path to significant profitability involves scaling real estate services, growing digital businesses, improving efficiency, and benefiting from an eventual housing market recovery on a lean cost structure.

Asked whether industry commission changes would strengthen or weaken Redfin's competitive advantage and what macro assumptions are embedded in the forecast for full-year adjusted EBITDA profitability.

Answer

Executives believe increased consumer price awareness would strengthen Redfin's position, as it's what the company has always advocated for. The path to profitability assumes the current weak housing market persists for the rest of the year; it is not dependent on market improvement but rather on Redfin's own operational efficiencies and initiatives.

Ygal Arounian followed up on the DTC segment's shift to upper-funnel marketing, its effect on customer acquisition cost (CAC), and the potential for further efficiencies from the Shopify platform. He also asked about the ultimate international opportunity for the Commerce segment.

Answer

Matt Meeker, Co-Founder and CEO, explained that the shift to upper-funnel marketing is a gradual process, with efficiency gains from Shopify's higher conversion rates being reinvested to explore new channels. He confirmed more CAC efficiency gains are expected from the platform. Zahir Ibrahim, CFO, detailed the international commerce opportunity, citing launches with Fressnapf in Europe and Pets at Home in the U.K., as well as a recent launch on Amazon Europe, indicating a significant runway for growth.

An analyst on behalf of Ygal Arounian asked about the decision to accelerate the transition of ad spending to the new bark.co platform ahead of the busy holiday season. He also questioned how long the full customer migration would take and how the transition might impact DTC growth through the rest of the fiscal year.

Answer

Co-Founder and CEO Matt Meeker explained the accelerated move was prompted by encouraging early conversion rates on the new Shopify-based platform and the strategic benefit of focusing the entire team on a single site for the holidays. He acknowledged a short-term 'retraining' period for ad algorithms but expects to be through it within the current quarter (Q3). Meeker confirmed the goal is to have the entire subscriber base migrated by the end of the fiscal year in March.