Financial Data and Key Metrics Changes - Total revenue increased by 44% year-over-year to $1,370 million, with adjusted EBITDA rising by 78% to $848 million, achieving a 62% adjusted EBITDA margin [14][18] - Free cash flow grew by 105% year-over-year to $695 million, with a quarter-over-quarter increase of 28%, representing an 82% flow-through from adjusted EBITDA to free cash flow [14][15] - The company ended the quarter with $741 million in cash and cash equivalents [15] Business Line Data and Key Metrics Changes - The advertising business generated $999 million in revenue with an adjusted EBITDA of $777 million, achieving a 78% margin [15] - Apps revenue for the quarter was $373 million, a 1% decrease from the previous year, with adjusted EBITDA of $71 million, representing a 19% margin [18] Market Data and Key Metrics Changes - The company is expanding its focus beyond gaming to serve the entire global advertising economy, with a significant opportunity to attract over 10 million businesses worldwide that advertise online [8][9] - The advertising platform is expected to drive incremental demand by enabling product discovery while users engage with mobile games [9] Company Strategy and Development Direction - The company is transitioning to a pure advertising platform, emphasizing productivity, automation, and building lean teams [12] - An exclusive term sheet has been signed to sell the apps business, allowing the company to focus on its advertising strategy [11][16] - The company aims to develop automated tools to facilitate onboarding for a larger number of advertisers [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the platform's potential to transform global marketing and highlighted the importance of operational excellence [12] - The company anticipates continued growth in the advertising business, with expectations for e-commerce to contribute materially in 2025 [37][38] - Management noted that the advertising models are continuously improving, which is expected to drive revenue growth [40] Other Important Information - The company reported an adjusted EBITDA per employee of approximately $3 million in the advertising business, with expectations for this metric to rise as processes are refined [12] - The company is focused on maintaining its cultural values while scaling operations and developing tools for automation [23] Q&A Session Summary Question: Early benefits for a range of different brands in various verticals - Management confirmed that the platform is seeing success across multiple categories, indicating confidence in scaling beyond direct-to-consumer marketers [22][23] Question: Model enhancements and growth factors - Management highlighted ongoing learning and seasonal advantages as key contributors to growth, with expectations for continued improvement in models [32][35] Question: E-commerce contribution in 2025 - Management remains confident in e-commerce contributing materially to revenue in 2025, though the timing and amount of growth are difficult to predict [37][38] Question: Pilot program for e-commerce advertisers - Management indicated that the pilot program is limited in scale, with a small team managing onboarding, but sees potential for significant growth as self-service tools are developed [46][49] Question: Competitive response to e-commerce rollout - Management noted that the platform is driving incremental sales for advertisers, expanding the overall market rather than taking dollars from competitors [54][56] Question: Go-to-market strategy for e-commerce - Management is focused on mid-market B2C companies for the pilot, with a strong demand for onboarding as positive results are reported [60][62] Question: Inventory conversion for e-commerce vs gaming - Management stated that the same inventory is used for both e-commerce and gaming, with full-screen video ads being effective across categories [68] Question: Take rate dynamics between gaming and e-commerce - Management explained that as monetization improves, the take rate naturally increases, but they do not optimize for it [75] Question: Self-service rollout for Audience Plus - Management indicated that self-service will be launched when ready, focusing on automation and fraud prevention [116][117]