Financial Data and Key Metrics Changes - The company reported Q1 revenue of $855 million, reflecting a 16% year-over-year increase [5][34] - Adjusted EBITDA grew to $172 million, with an adjusted EBITDA margin of 20%, an increase of 300 basis points year-over-year [6][37] - The company ended the quarter with cash, cash equivalents, and marketable securities totaling $2.6 billion [37] Business Line Data and Key Metrics Changes - Monthly Active Users (MAUs) reached 570 million globally, representing a 10% growth year-over-year [5][32] - Revenue from the U.S. and Canada was $663 million, growing 12% [35] - Revenue from Europe was $147 million, growing 24% on a reported basis [35] - Revenue from the rest of the world was $45 million, growing 49% on a reported basis [36] Market Data and Key Metrics Changes - Ad impressions grew by 49% year-over-year, while ad pricing declined by 22% [36] - The international mix shift contributed to the decline in ad pricing, as ads were served in previously unmonetized markets [36][74] Company Strategy and Development Direction - The company aims to enhance user engagement through improved visual search capabilities and AI-driven personalization [8][12] - The strategy focuses on becoming a shopping destination, with 85% of MAUs accessing the mobile app [7] - The company is expanding its lower funnel ad offerings and enhancing the Performance Plus suite to drive advertiser value [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the business and the effectiveness of product investments made over the past three years [38] - The company anticipates Q2 revenue in the range of $960 million to $980 million, representing 12% to 15% growth year-over-year [38] - Management noted that while there are pockets of spend impacted by tariffs, the fundamentals of the business remain strong [46][47] Other Important Information - The company is focusing on privacy-centric measurement tools and has entered partnerships to improve performance measurement [26][70] - The company reported that 25% of its code is now generated through AI, which has improved engineering velocity and productivity [32][88] Q&A Session Summary Question: Guidance for Q2 and pipeline observations - Management noted that trends remain healthy and that product investments are driving performance gains for advertisers [45][46] Question: Progress on Performance Plus and advertiser receptivity - Management highlighted that Performance Plus is driving strong performance and that 80% of campaigns outperform traditional campaigns [60][61] Question: Impact of macro volatility on ad spend - Management indicated that the full funnel approach is helping advertisers tie upper and lower funnel objectives, leading to better performance [78][80] Question: Update on emerging verticals and AI-generated code - Management discussed growth in financial services and other emerging verticals, emphasizing the platform's fit for advertisers during key life moments [85][88]