AppLovin (APP) 6 Nov 242024 Q3 Earnings call transcript

Company Profile

Participants

David Hsiao	executive
Adam Foroughi	executive
Matt Stumpf	executive
William Lampen	analyst
Jason Bazinet	analyst
Matthew Cost	analyst
Omar Dessouky	analyst
Christopher Kuntarich	analyst
James Heaney	analyst
Alec Brondolo	analyst
Mohammed Khallouf	analyst
Vasily Karasyov	analyst
Martin Yang	analyst
Cory Carpenter	analyst

Call transcript

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David Hsiao

Welcome to AppLovin's earnings call for the third quarter ended September 30, 2024. I'm David Hsiao, Head of Investor Relations.

Joining me today to discuss our results are Adam Foroughi, our Co-Founder, CEO and Chairperson; and Matt Stumpf, our CFO. Please note, our SEC filings to date as well as our shareholder letter and press release discussing our third quarter are available at investors.applovin.com.

During today's call, we will be making forward-looking statements regarding our products and services, market expectations, our share repurchase program, including future amounts available for repurchase, the expected future financial performance of the company and other future events. on obligation assumptions as to law. based we beliefs, required are no assume update statements our and current and by These them, except

actual ended our most results filed Form from to Our the the XXXX. recently differ second for encourage quarter review in We XX, you the factors risk XX-Q may results June predicted. materially

be ended our XX-Q for Form information Additional September XXXX, report XX, quarterly may today. also be on filed which will fiscal found quarter later in the

call discussing measures. financial be measures non-GAAP superior intended GAAP or not in also review results. shareholder for and IR a are release and and will our We to our non-GAAP for to our replay These be reconciliations sure letter will Please measures to of be be non-GAAP Investor period the earnings a our being GAAP substitute This on is of time available recorded on financial conference a website. available Relations site.

Now we'll Matt I'll turn it opening through the take have remarks, Q&A. and us some for moderator over to Adam then

Adam Foroughi

all for joining investors welcome of group you quarter. excited We're growing this a to us. Thank

a much Before strength Recently, the QX into our as want our mode. I emphasize in importance role has Valley, been dive founder that said culture in of plays results, Silicon the business. our we to strong fundamental about

a surrounding with not success I'm my While myself the and that that hands-on importantly, a drive. very similar hands-on only mindset in lies in but believe to our shares founder, key I approach, a more team

and approach each the that purpose. Here urgency are We with act business defining personal mindset. like We with accountability. treating of traits some day owners,

We have learn. desire an insatiable to

we automation We're We decisions relentless for and action, a optimizing and of quickly possible. overthinking. bogged don't adjusting take by driven get prioritize We unity Instead, diversity needed. in constantly down of are when of make thought pursuit excellence. ambition. wherever We

generating to over managers, EBITDA an in aren't rate run profitability, $X.X expected business adjusted they're we to pride million take per doers our improve. by aim with example. managers We our in and just employee, Our lead efficiency

on took to to I culture function quarter, of continue we thrives oversight HR grow. our our This ensure as

quarterly to performance. turning Now our

to shared Last in core to for and confidence for business achieving expanding I XX% growth. quarter, its groundwork the execute continue sustained our year-over-year We XX% laying future. well, foreseeable our growth the

continue changes We expect resulting X% growth to occasional through market our with to AXON step to enhancements and quarterly from X% algorithm. growth, self-learning

This driven quarter, of growth to one by we AXON. step saw changes, those meaningful with advancements

predict these software in we and While the of in company we of AI the our development, both breakthroughs, broader within timing are can't early industry. stages the

research ongoing expect We advancements our to technology forward. driving continue

the we're returns, to in as incrementality and, While in e-commerce many pilot. seeing XXX% we advertisers for exploring our gaming our shown remain expectations, Early traffic. confident from exceeded experiencing media often areas, with in cases, from advertisers mobile the by alone, those surpassing our also growth has XX% recent nearly XX% data substantial other new pilot channels

of resources vertical self-service contributor platform, we'll increasingly the and a support for this, to our quarters, launch are XXXX team. over opportunities e-commerce will scale and become all advertisers the next streamlined beyond. in talent this next few significantly initiatives confident for strong we've and a We're opening other reallocating In from sizes. year To global go-to-market us

communication. Next, an earnings update on our

And businesses and will results Financial While annual shareholder letters, shift years, to we are with an built we believe to we've been vision, quarterly issuing quarters. this over align shareholder not and the quarterly, past for each year guidance letter. we'll our comprehensive in will of form year, annual a still summary be shareholder released the the of future but plans an provide letter.

the opportunity early XX years, seize team inspired front and company. define have innovative and and every one stages drive. for excellence After technology their right bright, team in is by The incredibly the of we execution to relentless us. the We're future that the our in thank to platforms. most like I'd continually world's of our of passion I'm building Finally, outstanding

Now I'll through hand it off details. the to run to Matt you financial

Matt Stumpf

fantastic and EBITDA. achieving with a year, We adjusted same impressive XX% increase flow-through to total reaching to quarter $XXX adjusted had from revenue last EBITDA from marks $X.X EBITDA million, increase revenue XX% of billion and revenue EBITDA Good XX% This adjusted margin. another in a period in XX% translating afternoon. a an adjusted the

That's cash In $XXX cash EBITDA At free and outstanding. up third of flow-through $XXX to adjusted equivalents cash we quarter, consistent adjusted free XX% flow cash grew EBITDA same our flow. third from XXX% the and the had Quarter-over-quarter, the quarter, end generated in million representing XXX period shares year-over-year. with free in growth flow. and we cash XX%, the million over million

XX% improvements a of ongoing XXX%. engineering in the in quarter, software growing XX% XX% AXON technology, same in from our was contributed driven further growth achieving EBITDA, in EBITDA the revenue and adjusted Quarter-over-quarter our and from last self-learning, adjusted During year. to This to period and in by our by and team EBITDA segment generated million adjusted margin million flow-through enhancements revenue $XXX platform. $XXX revenue

quarter-over-quarter Cloud Platform associated Software the prior foreign would approximately quarter contract, and cost exchange. normalized PSU basis, was positively nonrecurring this adjusted XXX%. a impacted several our benefits with estimate be the EBITDA of flow-through our quarter vesting we renewal Our by On Google in

Next of expect future an software support data reduce capacity center slightly PSU-related in result to increase a vesting quarter, growth. to and we flow-through costs as

XX-K, the letter now nature Software our better this of Advertising next of Platform with align represents and our with associated core to revenue Software annual business Advertising and business. our and revenue the rename to for Platform substantially future will focus our As starting we all shareholder company,

was a for XX% in revenue year, quarter last the increase representing million from $XX Our million, a Apps $XXX adjusted margin. EBITDA X% with

of end, on to shareholder few business We to stable strong focused are to long-term creation areas. effective Apps To plan future. the believe the a and that continue capital in be a allocation We the expect value. structure capital crucial we're

drive foremost, talent top growth our First way lean in and organic in to technology most recruiting the by possible. and and cost-efficient investing

free funded flow, equity shares from Second, to ongoing to prudent manage cash our employees. outstanding repurchases, and through grants

we This withheld million a and million. shares cost for X $XXX of retired a of total quarter, total

our billion, our billion. further flexibility authorization efforts, management received financial our leverage third, debt Board's to ratio remaining authorization increase a below And bringing a $X.X capital $X we to by also a repurchase of liquidity to our net share Xx. strong sufficient approval To with to support build foundation with total

deliver $XXX guidance million, million Finally, targeting in an billion $XXX next fourth EBITDA the billion $X.XX our quarter. anticipate with turning EBITDA adjusted and to of adjusted between XX%. $X.XX quarter financial we XXXX, In to between and margin for of revenue,

Q&A. with Now that, let's move to

Operator

first [Operator Lampen Clark Instructions] comes Our question BTIG. from with

William Lampen

Can you all me see right? guys

Adam Foroughi

Yes, we can.

Matt Stumpf

can't We well. We see you can hear you.

William Lampen

Okay.

to some I wanted little having guys, wanted is could, which that I I to, tech quarter's bit. XQ results, Sorry, with. performance you on based tonight, unfamiliar a if something you're just issues unpack these completely

question, assume is that Adam, pilot risk while of obvious really in phase, at little you e-commerce was the very revenue there's this a for asking guess, I businesses, the an contributor I And was then, one right? bigger dumb would so, the gaming improvements Is kind and more to delivered? one that of responsive, that and Meaning, performance existing quarter? nongaming if contribution.

get just that it this The and expansion you for capacity of was out then, big Matt, how expected is was? way the tech cluster difficulties, possible quarter, increase I'll And contextualize the than earlier my the down took amidst you ask, here. second us then And to question this also?

Adam Foroughi

Yes.

jumping say, is we it's on before in into impact I'll last quarter. touched pilot, compelling So it's product. the -- super as still this quarter, e-commerce a

job amazing product fastest an years, us, in it. I've seen done the it's building pilot. has growing, my all released team Our still In it's ever by but best

scale it's for too inside a make impact gaming, So business compared of early material. e-commerce that's to our to financial the

category our is entirely The majority how gaming step-up runway platform for multiple of advertising side, in vast a has obviously, like spend for return about gaming which, the the talked UA on by this us and technology business quarters advertisers quarter spent, We've capabilities today. The gaming. now constrained the but dollars was it's the long a has a that ad there's more today. of goals the on need

be we map externally. the And that research script, advancements term. the business this We've on are are I in talk just expand technology the business impactful long really hand, for internally other strong will like to Now that our to let said enhancements platform and really, long continues going so category. all technologies because, gaming a that AI us the road the both financially and got then to these to think improve. inside we deliver E-commerce, looking can existence, really it's something is 'XX of in early the

Matt Stumpf

the you of terms asked. Clark, Cloud And question, in Google

future the than to earlier the get for of growth. really our but to capacity slightly was contract that So renewal, support was us renewal planned

normal couple we the of and that growth fantastic we've continue up that advance to renewed years. the timing end software contract because such the we in the support of platform, that of success signed thus had contract. was So the with and far, wanted But to kind of of over next

Adam Foroughi

Yes. there, compute will to this deployments models at needs GPU build side. help us our we on of great continue so the point, one like of that partner gotten us is They've can add world The cloud business ahead for complicated has largest scale. invest too, only the that the in need. the thing we I'd and Google got that We've to the a we been more

ahead investments, that So in infrastructure terms we're are in quarters make we of when is today we investing of these consumption. where

Operator

Okay.

Bazinet question from with Our Jason next Citi. comes

Jason Bazinet

e-commerce It's exciting your had pilot. one you're excited just to about I hear that question.

that be the it ramp or that if more marketing sales of dollars As more product? about hire different of a you or name think about have could or sort spend just a brand investors not product product. known being you efficacy slowly anything is have the the better within it excited than And ecosystem about that good though as in just it brand your more of ramp you're I'm to ramp even that's there and maybe about slowly, the something might of business, specifically circles e-commerce could gaming even make team thinking a the

Adam Foroughi

see Yes. Jason. you, Good to

for So look, e-commerce is a new category us.

took over we build And a So advertisers heavily key gaming to the we've to is going to to the organically products good. a in grow we're we're given. that not We're done in a are and brand well have we need going so that's approach. And we when our business doing sales, so really and it. really We product to That's long-term said have years. do going that. But the started invest awareness. good

gaming the company trajectory bigger it And been since we it penetration to backdate you at category if started, and done we've can even we've and the you gotten of more but look into gotten when year, the public, every organically.

when not So look of we're any at in sort e-commerce, rush. we

Now check our said, that world ROAS saying, strong tons you user of pilot, e-commerce today and in scale seeing if today, buys. much there's they're in noise a even the acquisition their they're as anywhere seeing on as brands from Twitter

when an delivering panned on to past It's having be to the get have that's kind automated a large probably lot you're attractive model and marketing haven't other you that very so fragmented many spend very side promises a going after category, desperately performance, quickly. approach another to e-commerce, in of the of return noise needs something out. very So that that channel ad like

Operator

comes Our Stanley. Morgan Matthew next from Cost with question

Matthew Cost

first on one is the pilot. that just guess I e-commerce

Sorry, you can me? hear guys

Adam Foroughi

you. hear can we Yes,

Matt Stumpf

can hear you We Matt. fine,

Matthew Cost

Okay, Yes. sorry.

of ability that on and you just any other target audience believe of data to is other using model be other just have amount expanding you're, have size the I seems the to doubt on cover limited Because about it just and it necessarily given to based given than pilot, like, of you the question e-commerce? successfully AXON shouldn't to the to that other the of pilot. or you gaming, the the e-commerce. of the verticals just available verticals expand data observe, types to into that e-commerce results the guess, outside do So reason any advertising and to

can beyond gaming, one verticals? move have move believe can do follow-up. And I you If you to you other

Adam Foroughi

or years brand can a XX buy question. pizza great newsletter we brand it or at or our e-commerce platform category, a that advertiser any do local a think anything an an transactional a address model, whether brand Yes, gambling it's or on across has gaming from now, every and or shop collecting a e-mail scale. for

the to and technology limitation power the there's we've So the math written. no of that

we're new not only why categories. of going go to beauty. go to the about to then approaching even it e-commerce, But rest categories we're going is going And then e-commerce only to transactional limitation, of to the penetrate hopefully, the the going reason the then inside to to it approaching and But e-commerce, we only We over go-to-market. do today the entirety entirety advertising referenced go we businesses to the of be as go we're how as it thoughtful and want as fashion matter. to world that of we're we're We're to the going we're of to time. whole go

Matthew Cost

to then, you a just And want the revisit, prepared allocation. bit about Matt, I remarks, and Great. little this capital talked in

the do your Or guys' Board big about think, you small opinion what XXX% press on this after M&A there's buying of there. authorization up some you M&A So is of year-to-date. the advertising on something the increase need? I Is have the that attractiveness out deal Has in And side? made that's mind to speculation impacted back a The been a the buyback market stock, quarter. your stock?

Matt Stumpf

I'll Maybe inverse those do answer Yes. Matt. order, in

pretty Apps focus And that the that about M&As advertising we've opportunity the arises. we on any in no past in front, profitability, for on and we've the So optimized plans, to business. we're comfortable that communicated really that obviously, we've growing do organic divesting the is M&A business at consistent business. the of have in side if point on this business the the been right, communicating our And

goal we look no In buy for the price of trajectory business to like shareholders. is increase If long-term plus, stock terms decision really, XX% of on growing at feel to the our the our and the future to still our XX% stock in our own great shares. buyback, company's the has we back a continue impact investment

Operator

Bank Our of with next question America. comes from Dessouky Omar

Omar Dessouky

your And ask Guys, all Okay. update the at wanted your call. since timing could you us of also, last solution earnings the whether if has would to your have more If you thoughts great. educational which on be e-commerce availability shifted for partners. then of I go-to-market more any that about And investors. new there's could for I give follow-up, an specificity is question on that, a general

Adam Foroughi

right. All Good you, Great questions. to see Omar.

timing-wise, So to as what same at come advertisers working we have. pilot, is define run still the it business way a we the we track. on We're people look our team, always what In we're it as pretty as a self-service into which lean, approaching and we as you on know, advertiser availability the can scale. just us onboarding can General really handle with in the types to terms of all is start closely platform where of and state, marketing. pilot

touched so year, And we've before. next that's some as point on

in one The of I'll this referenced couple a partners, of ago. any thing we haven't disclosed I say seconds but terms partners,

noise be successes lot Twitter, platform. a from If of not you're our the on and more and success, social customers because stop start to you to they're to more going having seeing are seeing able going the about we're search talking media that

is out So what else performing really they then the customers, that's there. are you way how decipher can and which

Omar Dessouky

Awesome.

question. so educational And just like one more

understand of how was what model, itself is as what it's some a the by gross and DSP you're lot have Now of has a stock closer wondering spend arbitrage in see stocks And which the open advertising aspects tech ecosystem open And your long an of online opposed are DSPs. much I for model, web in advertising. up them and higher eclipsed explain like if you investors lend web. and are that has a to cap to I the time, some that is of widely that been run, gone in we followed market percentage some could ad ad

Adam Foroughi

referencing guess, versus Trade business more Desk our specifically, models. you're Yes. I

the not gaming, market. gaming of the to percentage And what optimization automated smart or on is just targeted markup. dollars side. game companies care They these They've different taken very and type agencies And direct-to-consumer big Software-as-a-Service a So to approaches the revenue a brands developers about goal. media care about the and approach. targeted X and advertising we've and it's like, e-commerce,

that's media is the And predicated We risk system take side. the that. on like all our what is on really

I what's We of, technology top cap we're exciting you in on scale of really like performance what deliver billion market are daily is and compelling for where like And terms most have and built the we've side. a business on as we guess, on to today X.X me said, actives.

scale really the easy on the So to have audience forget of it's that reach we our platform.

now the got the we're We've out. largest scaling solution it world seen. sector, And teams mediation in the our advertising technology yet and that the maybe innovative most built has

And so sort hundreds to on and never just this of millions quarters to platform service that to tens advertisers of if access here, from audience before. had we're going you our able years fast the of thousands accessed be forward of to to the thousands over they

now that these day this hours a if XX-minute is And mobile is devices, X X about of the untapped to that advertisers. X of hours time think a spent, most for you of component hours

technology Our historically never unlock this them, platform. possible on and it any now can for was

excitement gives that expand become today, a we not and the companies So lot we've it a got of only world of are strongest the us one runway to platform has this seen. long performing

Operator

comes next UBS. with Our Chris question Kuntarich from

Christopher Kuntarich

had should Adam, questions one think e-commerce. from on getting We've XXXX, of Maybe been we be investors. another see starting a a here lot you on contribution. material I to said

but material a as could I maybe and kind start how frame just XQ could weak help be we it that soon Just thinking seasonally time of that XQ business? is to e-commerce, see of understand? any contribution from us a know as be about tighter you for to

Adam Foroughi

fastest-growing the seen. in gaming is I've XX% additive. confident sort product of XX% it's This said alone. also we're in said, we've just to Like I the ever

really good. So it looks

business. in the When have pilot, hundreds have shops. e-commerce, tens about scaled don't We to Now seasonality were you're business. today if seasonality you're we'd talking really we in the in total in

we're here, just so early strong. is And but really the performance stages really

to hard to lot that people how I total or think, I it's you So advertising on like business, net platform. on gross ad this us really that's quickly of when have And remind the for run we're ramp. can a it billion that now up do $X.X to scaled so business, rate-wise, dollars predict it revenue a reporting,

to ramp like e-commerce going plus, to that time terms never And for But impact, in and material of by looks define is let's XX% really to in seen strength some take to. market. that this up anything we've drive

so to make it we scale in impact if going an think will, does it the it's way And 'XX.

Christopher Kuntarich

Very Got just over one Shifting to side. it. helpful. maybe more. And the licensing

You've the had of licensing with what you Curious from what or those your other that AXON Flip app. this of have either think kind out potentially has been and partnership X.X map influenced e-commerce platforms? road learnings kind about to how

Adam Foroughi

Yes. on sort business It's and couple hands still licensing talked focus, on. fairness quarters that we're about scaling something it's of both of this We that then all out in all Matt's ago. scale-out, ago. short-term We're focus. and AXON not a working But e-commerce engineering deck, longer-term to broader product, the as on question the to than on what on touched I is we side second that, think a side

just the us to on other up have just going it's can our available. mean come that secondary doesn't as we AXON resources that's side. not licensing. we're so we're speed to to it resources means now, and that's the all front the as opportunity we with compelling in about that It excited trying of That So of much taken

Operator

next comes question Jefferies. Heaney from Our with James

James Heaney

going how can growth XX% Based Platform very guidance least, it XXXX? for Is about on we enter the XXXX there any Software share just terms range in well at that the you're, QX, update in of Great. provided. think to above revenue growth should XX% would you just imply growing you've to the

Matt Stumpf

guidance, provide don't on We Yes. an James, basis. annual long-term

opportunity. the mean was could And we XX% was think mobile we I we including that XX% -- also directional So the a model as to more enhancements, drive that. And before, of only XX% than company. is get Adam gaming as XX% the mentioned existing that a goal to just kind it directed for do

e-commerce additional And we would in that so additive see -- any future. that the could within be that to opportunity we

Adam Foroughi

And up are I just there. research it that XX% told external think is on applicable gaming, And goes based these either the These being research all based consistently what the market on internal team is in lifts research and from you to model enhancements. stack. then predict or technology delivers that in that we've we can't is tech our to that's the

impactful. So when not have it's you that, predictable, it's very but

when this I Well, get it get so XX% of last had quarter, those. said, year. And about we've to multiple you one if you those of talked I

improve material is the So there XX%. interest growth on So is faster enhancement XX%, rate to If be from the over constraint to year, the advertisers. is no There's years obviously, on able continuously higher growth we're demand. right? than over constraint technology going rate our a no than one the then

James Heaney

line And curious Meta maybe across Great. using of then about talk using products, advertisers just over creative. features just and that the of maybe time then gen could any out heard they for that call AI just the And million your I'm benefits time. more one AI you gen potentially X We see if more. you have over for more could

Adam Foroughi

It's absolutely super our It's map. exciting. on road

time, can this lift of would imagine, X.X our you'd billion. advertisements imagine today, a can ad audience serve business. have creative Over become the to static You to and that that we all material personalized

it's can't advertising we in response that gets it to are substantial going But see road probably rate personalized. it it's time very businesses to And immediate the in for going we you, can think a we something our the size not future. lift that it's because is as nor advertisements But impactful. all but content to be map,

Operator

with Brondolo Wells Alec question Fargo. next Our comes from

Alec Brondolo

hear me you Can okay?

Adam Foroughi

can. we Yes,

Matt Stumpf

we can. Yes,

Alec Brondolo

mobile lot your hoping questions outside the demand from e-commerce of My Obviously, understanding the ecosystem ways programmatically. supply. games, and beyond tap almost expanding to is it perspective. potentially get mobile a there's of a to e-commerce on expanding supply and call games that about of on into are business in tonight was all ads into I ad the lot a there's of the thoughts kind today. served potentially So of

of outside expanding So games? you think expand how supply your do as demand games, mobile mobile outside you of about potentially

Adam Foroughi

Yes, it's vector. growth definitely another

So track. I out bullet I laid vectors of earnings as the the on think my in of last call it my last growth talk

supply supply our a think so daily we But of expansion something the to buy to We And we constraint. important isn't there's to lot an monetize now, That's is billion into did immense of Right supply. room amount that's actives. X.X us. improve Wurl way tap CTV. the

still today audience have a helping brands way. very category that doesn't That really strong measurable performance marketing in reach television a platform, through

So can us. then go you that's can from And out imagine appealing to you just there.

gaming So from reach if fast more forward than going we X have certainly we're to just years mobile supply the now, side.

Operator

comes question with Mo next Our HSBC. Khallouf from

Mohammed Khallouf

on strong Congrats results. your

Just one me. a for quick

But we obviously, In market that. in well UA the spend, terms look the terms the phenomenal. you're mobile it's of behind when of growth mobile revenues or doing, market, at gaming whole it's

lot a So that's your growth? of continue driving that market gains you market? can in where terms And to I'm wondering, positioned it share is of in you're just do the

Adam Foroughi

big Look, this gaming really we're point. at in

So bigger it We've to a there's go share because lot not take. be can't whole gains created market. market a

put by acquisition. talked we've too, that's think been good So this there's user category And now rate, is growth accelerating out, research driven this. shows about really some I that been its

That discloses stable. mobile that a in new The user these really growth need platform and There's drives advertisers dollars. user acquisition There's drives audience That's and not have nobody growth. a And amount audience. what is as unlocks the deep not very acquisition, that our strong is. what we been their what revenue. has device that's more new more have getting better it But gaming. better, for

TAM return my grow I'm improve on going go, And what faster." what and that other sector. to mobile so channels." can in and so will clip my keep and then my can that's take seeing "I on over spend time you're and within the growth to we're spend rates AppLovin the a continues the They seeing. my channels gaming don't our to pretty these go, "I other AppLovin it to goals, on go the long They spending up end double expand is largest these from arbitrage as like, you'll And double platform given healthy business

Operator

Our with from next Cannonball. Karasyov Vasily question comes

Vasily Karasyov

those against? and And couple tweaks budgets? would able overhaul? fact Adam, a think you gaming be Or customers? take advantage you just you so the e-commerce will with that right? take taking that e-commerce? So targeted X.X that competitors you catch Who competing it for minor potential selects then be so who it able to a up it currently there open you it just it don't about making you, out, the ago to big is this taking X.X be be understand could put to who much AXON of and is is good whom And -- up spoke help you how just and e-commerce would opportunity? Is quarters of code as an that if can the from is can, AXON us will you

Adam Foroughi

bunch in a there. So questions of it's

to games think, of So inside mobile solution starting with a categories gaming. has like competition. date, I delivered for outside don't anyone

into new going my shops, these we're exciting our platform greenfield. and I said track, so talk they're what's audience. this this on today, on about marketing And And is when a

They're not moment this otherwise in in able to reach audience time. that

all, So value them from and to able measure do an it them that it there's precisely show immense an ad of advertisement. amount when and for we're for incremental

it's them. strong So for really solution a

dollars audience you're e-commerce game, this which a someone more if in is generate product. different to get to building a monetize business continue the also diversity our to that of users, our is case, your ad users. who who than but completely healthy for for So platform it's publisher, more huge is their boon be something from for content going And very not that their and able is an game will another to will make publisher it for better, as well,

So it's a involved. great win-win for all parties

I engineers the of We've a compelling wouldn't of and handful understand On that the say don't of what technology these at about those. mean, is maybe anything technology. like complexities to only world, simple. side, do of these I max, of build talk people lot I we're we one think few, to hundreds, I how never certainly a we're are very software scale implementations AI technologies, inside platforms. seen types calling in

are did, engineers really to first lot more which a just that our can the technologies marketing building implementation And was gaming. drive performance complicated do than

of So really is there's powerful, we going to is limited technology to The platform lot and a think not over time. categories. opportunity be math expansion

ahead be, of going I growth us. years of think, to So there's

Operator

Our next question comes from with Martin OppCo. Yang

Martin Yang

e-commerce. customers your gaming, on X X.X's spending others? performance? on AXON customers faster to the ramp responding that will do there pretty gaming, have Is are questions, one consistently up in you than certain another On I step-up think

Adam Foroughi

whole So Martin, system our is automated.

So a also I last our like -- I there's like every can we advertiser not has spending platform in said than on budget daily on interest deliver time more think basis.

tomorrow, So somehow if match engineers spend, research doubles up the platform to that double. one ability find in will our of just someone some drive of terms -- and everything

When have to functions, they not like there's a all another. step or spend these more. one get a tolerance So we

Martin Yang

get stage? through e-commerce as is where are investing Got break commercial there you you're any or up ramp in bottlenecks and it. then you And then spending on trying it e-commerce, to to commerce? And

Adam Foroughi

seen voice much We've I new on the new recall, never product. this product gone talked that optimism mean, about you of most We've ever products. launched. Like said, data I of we've a products. lot since I No. if it's we've kind exciting a public And don't on

very a company. are entrepreneurial We

good really But good company, try when the will our our our I AXON That and for talked lot out was investors. a things. we turned time product launched X.X. last of a partners We pretty us, about

compelling bottlenecks, being we're we like about to have terms of into most as assume scale that and we've the just yet demands. capital the as in automated this seen you every one can as we're other talking capacity component running not market the than out product yet, don't quickly if it solution human So

platform. to to want companies So jump we've door out on got of this line that the to

Operator

Okay.

will last We from question JPMorgan. our with Cory Carpenter take

Cory Carpenter

happening the to what answer, these in forward? technical this maybe is insight than unlocks change frequently the or going step to question they the Adam, us ask but that unlock was you just were a know be seem I contributed function give to why tough more now can into quarter? Or any

Adam Foroughi

particular, Yes. but I are research and field. it. a engineering talented. know the science has people on mean, They side, really a one of this the technologies, these And in best. both field, in internally look, the new our is The of interest it's externally, team world's and lot just

look immense the been you that's published that's if externally, research research few done years. at amount over So an there's all last of being the

could own in there's from out get figure And the more that's every or published effective every technology research researchers one stack, the what time something something interesting incorporate and that's past something do. we create our of they their it in we or published time then into

business. technology beyond platform I'm even actually so amount And say I been able understand my to and not to going our understanding. because is this sit and immense an it's and opportunity our This team here way for unlock mathematical exceptional, of they've

Cory Carpenter

probabilistic billing in is to quick a that notable just follow-up. the on August, had switch that on you The iOS impact And business? something any made

Adam Foroughi

how tracked make and It really. advertisers with was the nominal. but more it, aligned were Not deltas it to accurate

Operator

good And for We Okay. quarter. that much the a today. question-and-answer session Have so us you this ahead. evening for joining all afternoon concludes and thank

Adam Foroughi

Thanks, everyone.

Matt Stumpf

you. Thank

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