Financial Data and Key Metrics Changes - In Q2 2025, total revenue grew 27% year over year to $104 million, with an adjusted EBITDA margin of 43% or $45 million, aligning with the raised full-year guidance [11][14] - Direct revenue for the quarter was $87 million, up 24% year over year, driven by subscription offerings and optimizations [12] - Average monthly active users (MAUs) increased by 6% year over year to 14.9 million, while average paying users rose 16% to 1.2 million [12] - Net income for Q2 was $17 million, representing 16% of revenue, compared to a net loss of $22 million in the same period last year [13] Business Line Data and Key Metrics Changes - Direct revenue growth was led by subscription offerings, with average direct revenue per paying user increasing 7% to $23.65 [12] - Indirect revenue reached $17 million, up 39% year over year, driven by new third-party advertising partners and traction in international markets [12] Market Data and Key Metrics Changes - The company noted strong engagement in the Explore feature, with over 25% of users utilizing it monthly, and launched Explore heat maps across 21 markets [6][12] - The company is focusing on expanding its presence in developing markets like India and the Philippines, where there is significant growth potential [27] Company Strategy and Development Direction - The company aims to build one of the leading AI-native consumer companies, leveraging GenAI to enhance user experiences and drive long-term revenue growth [7] - The introduction of mapping features is expected to enhance local discovery and user engagement, with plans for future product initiatives [31] - The company is committed to improving its marketing strategies in various regions, particularly in Latin America and Asia, to better penetrate those markets [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong results while executing its long-term vision [5][10] - The company reaffirmed its full-year 2025 outlook of at least 26% revenue growth and an adjusted EBITDA margin of at least 43% [14] Other Important Information - The CFO transition is underway, with the current CFO continuing in her role until a successor is identified [9] - The company has repurchased $325 million in common stock year to date, with $175 million remaining under the share repurchase program [14] Q&A Session Summary Question: What drove the MAU growth in Q2? - Management highlighted three drivers: strong engagement among younger user cohorts, reliance on unique device counting for MAUs, and organic growth from brand recognition [20][21][24] Question: Can you elaborate on the acceleration in indirect revenue? - The CEO noted that indirect revenue growth was driven by increased ad placements and new third-party advertising partnerships, with a focus on maintaining CPM levels [38][39] Question: What are the key drivers behind the increase in operating expenses? - The CFO indicated that increased operating expenses reflect investments in product development and marketing, as well as a more predictable expense profile [43][44] Question: Are there any early learnings from pricing experiments? - Management emphasized that pricing changes will not materially impact 2025 and that the focus is on driving revenue growth through product enhancements [46][47]

Financial Data and Key Metrics Changes - Gross margin in the second quarter was 35%, slightly up from the previous year's quarter, supported by cost savings efforts despite ongoing pricing discounting in the marketplace [13] - Operating expenses decreased by $7.7 million compared to the prior year’s second quarter, with a $4.3 million reduction in expenses excluding the deferred compensation plan valuation [13] - Inventory levels improved, with a balance of $180 million as of March, down approximately $69 million from the previous year's second quarter [14] Business Line Data and Key Metrics Changes - The Fishing segment saw positive results from new product launches, including the Humminbird brand's new technology, which exceeded demand expectations [6][8] - The Camping and Watercraft business also reported enthusiasm for new products, with orders outpacing expectations [8] - The Diving business faced challenges due to global economic uncertainties and consumer travel, prompting a focus on operational efficiencies [10] Market Data and Key Metrics Changes - The overall market environment remains challenging, with cautious retail and trade conditions impacting performance [6][29] - Consumer sentiment and retailer hesitation have contributed to a tough marketplace, affecting sales trends throughout the quarter [29] Company Strategy and Development Direction - The company is focused on innovation as a strategic priority, with ongoing investments in new product development across its business lines [6][19] - Strategies to mitigate tariff impacts include adjusting supply chain strategies, seeking operational efficiencies, and considering pricing adjustments [11][35] - The company maintains a debt-free balance sheet and solid cash position, which are viewed as competitive advantages in uncertain times [12][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the continued market challenges but expressed optimism about the momentum from new product launches and the importance of innovation [6][12] - The company is committed to navigating current and future challenges while focusing on profitable growth [12] Other Important Information - The company has acquired a supplier for its ScubaPro brand, which is expected to drive future innovation and operational efficiencies [10] Q&A Session Summary Question: What does the pipeline look like for new products in upcoming quarters? - Management indicated that new products for fishing and camping have launched successfully and are exceeding expectations, with ongoing efforts in long-term innovation [18][19] Question: How have trends changed during the quarter, particularly from January to March? - Management noted a consistent tough environment influenced by consumer sentiment and retailer hesitation, with hopes that new products will yield positive results [29] Question: What has been the retailer response to the new tariffs announced on April 2? - Initial retailer reaction has not shown a significant pullback, but management anticipates challenges for the remainder of the season [31] Question: What is the company's exposure to China regarding tariffs? - The company imports a fair amount of products from China, particularly electronic components, and is actively working on mitigation strategies [34][35] Question: Can you provide more details on the impact of discounting and the cost savings program on gross margin? - The cost savings program is expected to provide a benefit of one to two points to gross margin, helping to offset discounting impacts [36][38] Question: What was the reason for the unusually high tax rate in the quarter? - The high tax rate was influenced by income and expenses in different jurisdictions and an accrual from tax audits in Europe, which is considered a one-time event [40]