Key Takeaways from the Conference Call Industry Overview - The conference call covered various companies within the North American Internet sector, specifically focusing on web builders, digital advertising, eCommerce, EdTech, and online dating. Company-Specific Insights GoDaddy (GDDY) - Management is positive about GoDaddy's vibe coding strategy, focusing on current customers and web building, with cost guardrails in place [5] - The ANS marketplace was launched, but significant financial contributions are not expected until 2026 [5] - Growth drivers for A&C bookings in 2026 include Airo, P&B strategy, and seamless commerce experiences [5] - Airo is improving average order value (AOV) and retention metrics, with a focus on high lifetime value (LTV) customers [5] Wix (WIX) - Management expects approximately 25% free cash flow (FCF) margins in 2026, despite anticipated margin compression [7] - Gross margins are improving, but variability exists due to free users abandoning projects [7] - Wix is testing a new self-creator platform with more GenAI features, but price increases in 2026 are less likely [7] - Core Wix performance remains strong, but growth acceleration may be challenging [7] The Trade Desk (TTD) - Recent layoffs affected only 1% of headcount, aligning with product and engineering initiatives [8] - No expected impact from OMC and IPG consolidation; strong relationships with both companies [8] - Kokai adoption reached 85% in November, with expectations to reach 100% soon [8] Criteo (CRTO) - Management sees agentic commerce as a significant opportunity, leveraging commerce data for better ad spend efficiency [8] - Retail Media core is performing well, with good traction in auction-based display products [8] Zeta (ZETA) - OneZeta is a key growth factor for 2026, part of the Marigold acquisition strategy [9] - Athena is on track for general availability in 1Q, but management is cautious about setting high expectations [9] IAC (IAC) - Core assets are People and MGM, with management believing both are undervalued [9] - The M&A strategy will focus on digital publishing and content sites [9] eBay (EBAY) - Guidance indicates healthy US consumer spending but weak trends in Europe [10] - eBay's holiday window extends into 1Q, with a focus on collectibles [10] - Management expects to buy back 90-100% of normalized FCF in 2026 [10] Wayfair (W) - Management reiterated 4Q guidance, noting slight deterioration in industry volume levels [11] - Success in initiatives like loyalty programs and influencer marketing is driving share gains [11] - AI initiatives are expected to roll out in 2026, enhancing user experience [11] Duolingo (DUOL) - Focus remains on user growth trends, with certain features moved back in front of the paywall [12] - Management is experimenting with GenAI features to drive user engagement [14] Match Group (MTCH) - Product testing at Tinder is ongoing, with a focus on product outcomes over near-term monetization [15] - Face Check has been rolled out in the US, with revenue impact being optimized [15] Bumble (BMBL) - Management expects a peak in declines in 4Q, with initiatives aimed at improving user experience [15] - A new AI app is being tested to enhance onboarding and matching processes [15] Additional Insights - The overall sentiment across the companies indicates a cautious optimism, with many focusing on strategic initiatives to drive growth while managing costs and market challenges [5][7][8][9][10][11][12][14][15]

Core Insights - Duolingo, the world's largest digital language education platform, has experienced significant growth due to its integration of AI features, leading to a doubling of its stock price over the past year [2][9]. Company Performance - Duolingo reported over 128 million monthly active users in Q2 2025, a 24% increase year-over-year, with 10.9 million subscribers, marking a 37% growth [4]. - The company generated a record revenue of $252.3 million in Q2, a 41% increase from the previous year, surpassing management's forecast [7]. - Duolingo's net income reached $44.8 million in Q2, an 84% increase year-over-year, showcasing consistent profitability [9]. AI Integration - The platform's subscription tier, Duolingo Max, includes advanced AI features such as personalized feedback and chatbot-style roleplay, contributing to user engagement [5][6]. - Max subscribers accounted for 8% of total paying members in Q2, up from 7% in the previous quarter, indicating growing adoption of AI features [6]. Future Outlook - Management has raised the full-year revenue forecast for 2025 to over $1 billion, marking a significant milestone for the company [8]. - The stock is currently trading at a price-to-sales ratio of 20, which is a 22% premium to its long-term average [10]. - Based on future earnings potential, the forward P/E ratio is projected at 55.7 for 2025 and 44.4 for 2026, suggesting that while the stock is not cheap, it may still offer long-term investment potential [12][13][15].