Revenue Guidance and Growth Outlook
Q: Can you provide more color on the 3Q revenue guidance?
A: We guided $290 million to $310 million for Q3, implying year-over-year growth in the mid-40% range. This is stronger than our mid to high 30s growth over the last four quarters and differentiates us from peers. We feel good about the guide and see no particular issues in Q3, though there's some macro uncertainty in Q4 around elections.

Advertising Market Health
Q: How is the advertising market and conversations with advertisers evolving?
A: We saw a stable ad market in Q2. Post-Cannes sentiment has been positive. However, agencies have signaled caution for the back half, with budgets being more flat. We're monitoring factors like inflation, geopolitics, and elections, but overall, we believe we're well-positioned.

Margins and EBITDA Guidance
Q: What are the factors affecting margins and EBITDA in Q3?
A: We've enjoyed strong incremental margins of 73% to 76% over the last four quarters. For Q3, margins may be slightly lower due to lapping prior year hosting contract benefits, annual raises, increased hiring, and costs associated with business translation efforts. There's no significant change, just minor factors affecting margins.

Acquisition of Memorable AI
Q: Why acquire Memorable AI, and how will it impact the business?
A: Memorable AI accelerates our ability to enhance our ad stack, particularly in creative insights, optimization, and generation. We gain technology and talent that would have taken longer to build organically. Integration is underway, and we expect it to impact performance, especially at the lower end of the funnel, starting next year.

User Growth and Retention
Q: How are user growth and retention trending with recent improvements?
A: Logged-in DAUs are up over 30% year-over-year, our fastest growth among that segment in years. Improvements in onboarding, web performance ("Shred-It"), and product quality are driving meaningful increases in new user retention. We've been growing over 1 million users a month since spring of last year.

CPM Decline and Ad Placement
Q: What's causing the decline in CPMs and ARPU?
A: The decline in CPMs is driven by newer ad placements on the conversation page, which currently have lower demand. We're addressing this by educating the market, enhancing ad formats, and testing ads inside comments. As 50% of screen views are now on the conversation page, matching demand with this increased supply is essential.

Data Licensing and Partner Relationships
Q: Can you elaborate on data licensing and restricting access to Reddit content?
A: Reddit's content is valuable, and we've shifted from default open access to blocking crawlers due to misuse for training without our knowledge. We've created a public content policy emphasizing user privacy and prohibiting resale of data. Many partners have signed up under these terms, and while we prefer relationships with everyone, we're cautious about where Reddit data goes.

Developer Platform Monetization
Q: What's the progress on the developer platform and monetization plans?
A: The beta is progressing well, with public beta involving a few hundred developers. We're aiming to get developer apps at scale and connect the dots on monetization by enabling users to buy through apps built by others. While we can't promise scale this year, achieving an end-to-end proof of concept is a key milestone.

Retail Advertising and Dynamic Product Ads
Q: How are you approaching the retail advertising opportunity with DPAs?
A: DPAs are a significant opportunity given Reddit's commercial intent but are complex to implement. We're improving our models, enhancing conversion APIs, enabling first-party data targeting, and refining ad formats and catalog ingestion. Our goal is to build the foundation this year to make DPAs a material contributor in 2025 and beyond.

Protecting Reddit's Culture Amid Monetization
Q: How will monetization impact Reddit's unique culture?
A: We believe that adding ways for users to earn money will expand Reddit without cannibalizing the existing altruistic community. Historically, new features like image hosting led to new communities while existing ones continued to grow. We see this as an opportunity for expansion, maintaining the unique culture that makes Reddit special.

Impact of Global Events on Engagement
Q: How do events like the Olympics and elections affect user engagement and revenue?
A: While major events create spikes in certain subreddits, our overall traffic remains steady due to the vast number of communities. We don't focus on political ads and don't see significant revenue impact from these events. These are sales opportunities that tend to smooth out over time.