Financial Data and Key Metrics Changes - Revenue for Q3 was approximately $1,405 million, up 68% year over year, driven by model updates in the core gaming business [8] - Adjusted EBITDA was $1,158 million, up 79% with an 82% margin, reflecting a 1% quarter-over-quarter increase due to operating leverage [8] - Free cash flow reached $1,049 million, up 92% year over year, with a free cash flow margin improving sequentially [8] - The company ended the quarter with $1.7 billion in cash and cash equivalents and repurchased approximately 1.3 million shares for $571 million [8][9] Business Line Data and Key Metrics Changes - The gaming advertising segment continued to show strong performance, with the MAX supply side platform growing at healthy rates [3][4] - Self-service platform spend from new advertisers grew approximately 50% week over week, indicating early positive traction [4][5] Market Data and Key Metrics Changes - The company opened up international traffic for advertisers ahead of schedule, expanding its market reach [3] - The MAX platform ecosystem is experiencing rapid growth, driven by higher quality ads and increased demand density [20][21] Company Strategy and Development Direction - The focus for Q4 and 2026 includes improving onboarding flows and integrating more AI agents to enhance the advertiser experience [5] - The company plans to test generative AI-based ad creatives to improve user response rates and expand the diversity of advertisers [5][6] - The strategic priority is to broaden access to the self-service platform and scale globally while maintaining compliance and transparency in ad tech practices [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, highlighting the positive recognition from the market and the institutional dynamics following inclusion in the S&P 500 [3][6] - The company is operating in an environment of heightened scrutiny around data privacy and ad tech practices, emphasizing a commitment to compliance and execution excellence [7] Other Important Information - The board of directors increased the share repurchase authorization by an additional $3.2 billion [9] - The company anticipates Q4 revenue between $1,570 million and $1,600 million, reflecting 12% to 14% sequential growth [9] Q&A Session Summary Question: Characteristics of advertisers onboarded since October 1 - The new advertisers are predominantly shops, comparable in mix to the initial cohort, but not materially smaller [11][12] Question: Guidance philosophy for Q4 - Guidance reflects a combination of factors including optimism around the e-commerce referral program and normal holiday seasonality [13][14] Question: Conversion rates and impressions - Management indicated that increasing conversion rates is a key growth lever, with model enhancements and AI technologies playing a significant role [16][18] Question: Supply growth expectations - Supply growth is expected to be driven by higher quality ads and increased engagement, with improvements to the MAX platform also contributing [20][21] Question: 50% week-over-week growth context - The early growth is promising, and management is focused on ensuring a seamless onboarding experience for new customers [25][26] Question: Balancing growth and managing core gaming customers - Management believes that increased advertiser density will expand spend for gaming customers rather than diminish it [33][34] Question: International expansion and localization - The company is currently available globally except for EU web shops, with plans to expand localization efforts as the platform grows [71][72] Question: Current cohort performance in Q3 - The current cohort is showing positive trends in spending, driven by improved tools and understanding of the platform [76][77]