Financial Data and Key Metrics Changes - Revenue for Q3 was approximately $1,405 million, representing a 68% year-over-year increase due to model updates in the core gaming business [10] - Adjusted EBITDA was $1,158 million, up 79% with an 82% margin, reflecting a 1% quarter-over-quarter increase from operational leverage [10] - Free cash flow reached $1,049 million, up 92% year-over-year, with a cash and cash equivalents balance of $1.7 billion at the end of the quarter [10][11] - The company repurchased approximately 1.3 million shares for $571 million during the quarter, with an increased share repurchase authorization of $3.2 billion [11] 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 [4][10] - The self-service platform launched on October 1, showing early signs of growth with a 50% week-over-week increase in spending from new advertisers [6][10] Market Data and Key Metrics Changes - The company opened up international traffic for advertisers ahead of schedule, expanding its reach beyond the initial pilot group [4][8] - The market is recognizing the scalability and reach of the company's platform, particularly following its inclusion in the S&P 500 [4][8] Company Strategy and Development Direction - The focus for Q4 and 2026 includes improving onboarding flows, ramping AI agents into workflows, and testing generative AI-based ad creatives [7][8] - The company aims to broaden access to its self-service platform and scale globally, while maintaining strict compliance and transparency in ad tech practices [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, emphasizing the importance of optimizing the conversion funnel and enhancing customer experience [10][72] - The company is committed to continuous improvements in its advertising models and tools, which are expected to drive higher conversion rates and advertiser density [21][67] Other Important Information - The company is currently not prioritizing EU inventory for website or shop advertisers due to GDPR restrictions, focusing instead on expanding its business in other regions [84][94] - Management noted that the transition to direct payments from app stores is expected to provide a long-term tailwind but is not yet contributing significantly to current results [58] Q&A Session Summary Question: Characteristics of advertisers onboarded since October 1 - Advertisers are predominantly shops, comparable in mix to the initial pilot group, but not materially smaller [14] Question: Guidance philosophy for Q4 - Guidance reflects a combination of factors including optimism around the e-commerce referral program and normal holiday seasonality [16] Question: Conversion rates and growth in impressions - The company believes that increasing conversion rates will drive growth without needing a significant increase in impressions [20] Question: Supply growth expectations - Supply growth is expected to come from higher quality ads and increased engagement, alongside improvements to the MAX platform [25] Question: Week-over-week growth context - The 50% week-over-week growth is seen as a positive early indicator, with management focusing on optimizing the customer experience [36][40] Question: Balancing growth and managing core gaming customers - Management believes that increased advertiser density will expand spend for gaming customers rather than diminish it [48][51] Question: Progress on generative AI tools - The company is actively testing generative AI-based ad creatives and expects to implement these tools soon [54] Question: Impact of direct payments on results - Direct payments are not yet significantly impacting results, with growth driven by improvements in advertising models [58] Question: Current cohort performance in Q3 - The current cohort is showing improved return on ad spend due to better tools and understanding of the platform [101]