Financial Data and Key Metrics Changes - Consolidated revenue grew 23% year over year to $62.2 million [17] - Telehealth revenue increased 30% to $48.6 million [17] - Adjusted EBITDA totaled $7.1 million, up from $2.2 million in the prior year [18] - GAAP net loss attributable to common stockholders was $2.9 million, compared to a loss of $7.7 million in the previous year [18] - Gross margin for the second quarter was 88%, a decline of 210 basis points year over year [17] Business Line Data and Key Metrics Changes - Telehealth business saw a 30% increase in revenue and adjusted EBITDA growth of 560% [4] - Weight management program continued to attract over 400 new patient sign-ups per day [6] - Work Simply generated nearly $3.7 million in adjusted EBITDA on a standalone basis, growing 119% [17] - Active telehealth subscribers increased 16% year over year to over 297,000 [17] - Active subscribers for Work Simply contracted by 6% to 149,000 [17] Market Data and Key Metrics Changes - The company is contracted with over 100 insurance plans across 40 states, covering just under 80 million lives [26] - The weight management segment has been impacted by a higher than anticipated refund rate due to patients lacking insurance coverage [7] Company Strategy and Development Direction - Focus on expanding the weight management program and enhancing patient experience [5] - Plans to return the RexMD brand to double-digit growth by scaling various treatment programs [5] - Expansion into behavioral health and women's health programs to address large underserved markets [5][11] - Investment in LifeMD plus membership service to drive deeper patient engagement and retention [6][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of RexMD despite recent challenges [21] - The company is optimistic about scaling its behavioral health offering and women's health program in the upcoming quarters [11][52] - Management highlighted the importance of integrating AI to improve operational efficiency and patient care [14] Other Important Information - The company fully repaid its senior venture debt, saving approximately $1.1 million in future interest payments [19] - Revised consolidated 2025 revenue guidance to $250 million to $255 million from $268 million to $275 million previously [19] Q&A Session Summary Question: Can you speak more about the insurance opportunity? - The company is contracted with over 100 insurance plans across 40 states, covering nearly 80 million lives, with expectations to double this by year-end [26] Question: Any comments on your relationships with Novo and Lilly? - Integrations with Lilly Direct and NovoCare are in place, with a growing number of patients accessing self-pay branded therapies [30] Question: Can you provide more color on REX customer acquisition costs? - Customer acquisition costs increased by 15% to 25% sequentially during the quarter, leading to a pullback in volume [34] Question: What drove the higher refund rates in the quarter? - Higher refund rates were primarily due to patients lacking insurance coverage for expensive branded therapies [58] Question: What percentage of patients with insurance for GLP-1s are being approved for coverage? - The company expects that by year-end, approximately 75% of new patients will be on an insurance-covered GLP-1 medication or a self-pay product [48] Question: How is the initial launch of your Medicare fee-for-service initiatives progressing? - The company is on track to expand to 49 states by year-end, with scaling expected in the back half of the year [52]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 increased by 21% year over year to $189 million, surpassing the raised guidance [5][22][29] - Adjusted EBITDA grew 22% year over year to $57 million, with a margin of 30%, up from 27% in Q1 2025 [22][27] - Media transactions measured (NTMs) increased by 19% year over year, while measured transaction fees (NTS) declined by 1% year over year, indicating a relative improvement [23][24] Business Line Data and Key Metrics Changes - Advertiser revenue grew by 21% year over year, driven by stronger measurement attach and deeper product stacking [22][23] - Activation revenue increased by 25% year over year, with all four activation solution groupings contributing to growth [23][24] - Social measurement revenue rose by 14%, accounting for 48% of total measurement revenue, primarily driven by platforms like YouTube, TikTok, and Meta [25][26] Market Data and Key Metrics Changes - CTV measurement impressions grew by 45% year over year, representing 11% of total measurement impression volumes [15][16] - Supply side revenue increased by 26% year over year, driven by new platform and publisher customers [26] - International measurement revenue grew by 8% year over year, representing 28% of total measurement revenue [25] Company Strategy and Development Direction - The company is focused on expanding relationships with existing advertisers and rapidly scaling new ones, emphasizing a strategy of "attach, stack, and scale" [6][10] - The recently launched Media Advantage Platform (MAP) integrates verification, optimization, and outcomes measurement, enhancing customer engagement [6][12] - The company aims to leverage innovations in AI and expand its product suite to navigate a shifting market [8][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory, supported by strong enterprise win rates and an active pipeline [21][30] - The company raised its full-year 2025 revenue growth guidance to approximately 15% year over year, up from 13% [29][30] - Management acknowledged macroeconomic uncertainties but noted resilience in advertiser spending levels [60] Other Important Information - The company ended the quarter with approximately $217 million in cash and cash equivalents, maintaining a strong financial position [28][31] - Capital expenditures were approximately $10 million, reflecting ongoing investments in cloud infrastructure and product development [27] Q&A Session Summary Question: What drove the acceleration in social growth? - Management noted that growth was driven by both new user expansion and existing customers increasing their usage, with significant contributions from platforms like TikTok and the addition of the Meta Prebid solution [34][36] Question: How does the evolving advertising landscape impact DoubleVerify? - Management highlighted the importance of transparency and independence in their offerings, which are increasingly valued by customers using AI tools on platforms like Meta [38][39] Question: What were the drivers of outperformance relative to guidance? - Strong activation performance, particularly around the ABS product, was identified as a key driver, alongside resilience in programmatic spending [42][46] Question: How does the company view the future of the open web? - Management believes the open web still has significant traffic and traction, with a focus on social, CTV, and retail media as key growth areas [90][92] Question: What is the status of CTV product development? - Future iterations of the CTV measurement solution are expected to roll out before the end of the year, with a more robust implementation planned for early 2026 [96]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $16.5 million, up 13% year over year, at the top end of guidance range [15] - Annual contract value (ACV) plus royalties reached $69.1 million, a 15% year-over-year increase, marking a record high for the company [16] - Remaining Performance Obligations (RPO) at the end of Q2 were $99.3 million, representing a 28% year-over-year increase, also a new high [16] - Non-GAAP gross profit for the quarter was $15 million, with a gross margin of 91% [16] - GAAP gross profit was $14.8 million, with a gross margin of 89% [16] - Non-GAAP operating loss for the quarter was $3.5 million, flat year over year [18] - GAAP operating loss for Q2 was $8.2 million, compared to a loss of $7.4 million in the prior year [18] - Non-GAAP net loss for the quarter was $4.4 million, or diluted net loss per share of $0.11 [19] - GAAP net loss for the quarter was $9.1 million, or diluted net loss per share of $0.22 [19] - Free cash flow was negative $2.8 million for Q2, approximately at the midpoint of guidance range [19] Business Line Data and Key Metrics Changes - Increased adoption of Arteris' technology in enterprise computing and automotive applications, driven by AI computing [8] - Over two dozen FlexGen installations at multiple customers, expected to contribute to revenue over time [9] - Expansion of multi-die solutions announced, supporting chiplet architectures and collaborations with major industry players [10][11] - Introduction of Magellan Packaging, a new software product aimed at automating IP packaging for silicon chiplets [12] Market Data and Key Metrics Changes - The semiconductor industry is shifting from traditional monolithic chips to multi-die or chiplet architectures, particularly driven by AI workloads [10] - Anticipation of a growing number of heterogeneous chiplet projects, with current estimates at about 30 projects out of 600 to 700 SoCs [44] Company Strategy and Development Direction - Focus on strategic investments in R&D and customer support to drive technology innovations and expand market reach [18] - Ongoing development of new silicon system IP technologies and strong relationships with leading electronics companies [12] - Monitoring global economic uncertainty while capitalizing on opportunities for customers to outsource system IP needs [12] Management's Comments on Operating Environment and Future Outlook - Management remains encouraged by strong deal execution, evidenced by a 28% year-over-year growth in RPO [21] - Despite foreign exchange fluctuations impacting operating expenses, the company sees promising signs of accelerated interest from major customers [21] - Guidance for Q3 2025 includes expected ACV plus royalties of $69.5 million to $72.5 million and revenue of $16.8 million to $17.2 million [20] Other Important Information - The company was recognized with the AI Engineering Innovation Award for FlexGen at the AI Breakthrough Awards [9] Q&A Session Summary Question: Details on AMD announcement and scope of partnership - AMD chose Arteris' FlexGen technology for various products, including AI data center chiplets, after extensive evaluation against competitors [26][27] Question: Impact of AMD's decision on internal teams and performance metrics - AMD will continue using its internal cash coherent fabric while augmenting it with Arteris technology for non-coherent applications [36] Question: Customer adoption of FlexGen and support for decision-making - There are over two dozen FlexGen installations, with expectations for sales to begin in the second half of the year [37] Question: Update on heterogeneous chiplet projects - Currently, about 30 heterogeneous chiplet projects are identified, with expectations for growth in the coming years [44]

Financial Data and Key Metrics Changes - In Q2 2025, worldwide revenue reached $61.1 million, a 16% increase compared to 2024, driven by strong performance across Trauma and Deformity, Scoliosis, and OPSB [26][27] - US revenue was $48.1 million, a 17% increase from 2024, representing 79% of total revenue [26] - International revenue totaled $12.9 million, reflecting a 12% growth compared to 2024, accounting for 21% of total revenue [27] - Gross profit margin decreased to 72% from 77% in 2024, primarily due to higher 7D growth and increased international set sales [28] - Adjusted EBITDA improved to $4.1 million, a 50% increase from $2.6 million in 2024 [32] Business Line Data and Key Metrics Changes - Trauma and Deformity global revenue was $41.7 million, a 10% increase year-over-year, driven by PMP femur, PMP tibia, DF2, and OPSB [27] - Scoliosis global revenue reached $18.5 million, a 35% increase compared to the prior year, driven by increased sales of Response, ApiFix, and 7D Technology [27][28] - The OPSB business grew over 20%, surpassing initial guidance for 2025 territory expansion [14][20] Market Data and Key Metrics Changes - International sales were solid, particularly in Europe and the Middle East, with strong surgical demand [6][23] - The company achieved its first EU MDR approval through LP Canada, which is expected to catalyze future growth [24] Company Strategy and Development Direction - The company is focused on expanding its OPSB strategy through territory expansion, accelerated R&D, and scaling its sales force [14][20] - The 3P pediatric plating platform is expected to enhance market share in trauma and limb deformity, with multiple new systems planned for launch [13][89] - The company is committed to helping more children and significantly growing revenue while improving adjusted EBITDA and reducing cash burn [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong momentum throughout 2025, driven by successful scaling of OPSB and innovative product launches [8][9] - The company raised its revenue guidance for 2025 to a range of $237 million to $242 million, representing year-over-year growth of 16% to 18% [33] Other Important Information - The company hosted 182 unique training experiences for over 3,420 healthcare professionals in Q2 2025 [25] - The company ended Q2 2025 with $72.2 million in cash, short-term investments, and restricted cash [32] Q&A Session Summary Question: Can you discuss the clinic strategy and the performance of existing clinics? - Management noted that existing clinics are seeing growth due to investments made on the sales side, while new Greenfield clinics are contributing to revenue but not yet at maximum volume [39][40] Question: Can you provide insights on the Scoliosis and T&D business growth expectations for the second half of the year? - Management expects Scoliosis growth to remain strong, potentially exceeding overall company growth, while T&D growth may be lighter due to previous quarter comparisons [45] Question: What caused the selective case slowdown in the limb deformity segment? - Management indicated that the volume was lighter in the first part of Q2 but rebounded strongly in June, attributing the fluctuation to normal business ebbs and flows [49][50] Question: How is the international product expansion strategy structured? - Management stated that international growth is expected to outpace US growth, with new product launches planned on a quarterly basis following EU MDR approvals [64][66] Question: What are the expectations for the trauma portfolio and potential product gaps? - Management highlighted the introduction of the 3P system as a significant opportunity to fill gaps in the trauma and deformity market, with plans for multiple system launches over the next few years [88][89]

Financial Data and Key Metrics Changes - Net sales increased by 9% year over year, reaching $309 million for the first time in quarterly revenue [29][30] - Adjusted EBITDA rose by 12% year over year, with an adjusted EBITDA margin of 7.4%, the highest in three years [35] - Free cash flow for the first six months of 2025 was $52 million, nearly three times the full-year free cash flow achieved in 2024 [5][36] - Cash and cash equivalents grew to an all-time high of $311 million, a 27% increase year over year [10][37] Business Line Data and Key Metrics Changes - Revolve segment net sales increased by 9% year over year, while FORWARD segment net sales increased by 10% [30] - Domestic net sales grew by 7%, and international net sales increased by 17% year over year [30] - The return rate decreased by more than 1.5 points year over year, contributing to improved profitability [9] Market Data and Key Metrics Changes - International markets showed strong growth, particularly in China, where sales more than doubled over the past two years [12] - The company reported a 17% increase in international net sales, with nearly all regions experiencing double-digit growth [11][30] - The luxury market overall declined year over year, but the company gained market share [7] Company Strategy and Development Direction - The company is focused on expanding brand awareness, growing the customer base, and enhancing connections with the next generation of consumers [10] - Continued investment in owned brands is a priority, as they generate higher margins compared to third-party brands [24] - The company is exploring physical retail opportunities, with plans to open a new store in Los Angeles by the fourth quarter [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current volatile environment, citing strong cash flow and a solid balance sheet [44] - The company anticipates that tariff mitigation efforts will improve gross margins over the long term [39] - Management noted that while the tariff landscape remains uncertain, recent improvements in tariff mitigation have been promising [39] Other Important Information - The company has successfully implemented AI-driven enhancements to improve the shopping experience and operational efficiency [14][15] - Marketing investments represented 15.2% of net sales, remaining flat year over year [32] - The effective tax rate increased to 33.7% due to certain discrete tax items [34] Q&A Session Summary Question: Can you elaborate on the tariff mitigation efforts and their long-term benefits? - Management indicated that partnerships with brands have been strengthened due to tariff pressures, which should yield long-term benefits [46][47] Question: How should pricing be adjusted in response to tariffs? - Price increases are expected to be mid-single digits in Q3, with adjustments made in line with market trends [49][50] Question: What are the trends in U.S. versus international sales? - International sales showed strong double-digit growth, particularly in China, while U.S. sales increased by 7% [53][57] Question: What is the impact of tariffs on gross margin? - Tariffs had a negative impact in Q2, but this was offset by improvements in markdown margins and owned brand sales [65][66] Question: What progress has been made in reducing return rates? - Management is optimistic about reducing return rates further, although tougher comparisons are expected in the second half of the year [68][69] Question: What advancements have been made in AI initiatives? - The company has made significant progress in AI enhancements, including improvements in search algorithms and customer service technologies [70][72]

Financial Data and Key Metrics Changes - The company reported product revenue of $52.4 million for Q2 2025, representing a 16% year-over-year increase [22][28] - For the first half of 2025, product revenue increased 15% to $95.7 million compared to the same period in 2024 [22] - Non-GAAP adjusted EBITDA for Q2 2025 was $935,000, marking the fifth consecutive quarter of positive adjusted EBITDA [28] Business Line Data and Key Metrics Changes - IFC revenue for Q2 2025 was $5.6 million, up from $2 million in the prior year period, with strong demand driving growth [24] - The core platelet franchise continues to be a key revenue driver, with increasing adoption of pathogen-reduced platelets in the U.S. and international markets [9][14] - The INT-two 100 illuminator was launched, receiving positive feedback and contributing to product growth [10][15] Market Data and Key Metrics Changes - North American product revenues increased 17% year-over-year in Q2 2025, while EMEA product revenues rose 21% [23] - Canadian Blood Services transitioned to 100% routine use of INTERCEPT platelets, and growth was noted in the Middle East [15] - The company is addressing regulatory requirements in China to strengthen its market position [16][17] Company Strategy and Development Direction - The company aims to transform blood safety and availability through its INTERCEPT product portfolio, with a focus on expanding its market presence [6][31] - The anticipated regulatory approval of the INTERCEPT red blood cell program in Europe is expected to enhance customer relationships [32] - The company is committed to achieving positive non-GAAP adjusted EBITDA for the full year 2025 [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding the full-year 2025 product revenue guidance due to strong customer demand [7][31] - The company remains mindful of macroeconomic and geopolitical factors but believes its value proposition and pipeline position it well for future growth [20] - The strong commercial results and product development progress indicate a sustainable growth trajectory [20][31] Other Important Information - The company received a $7.2 million award from the U.S. Defense Department for a study evaluating the utility of early IFC in trauma patients [12] - The company ended Q2 2025 with $78 million in cash and equivalents, slightly down from $80.5 million in the prior year [29] Q&A Session Summary Question: Revenue guidance for the year and expected cadence - Management expects continued growth in the back half of the year, with a flattening from Q2 to Q3 due to seasonal factors and deferred revenue recognized in Q2 [35][36] Question: EU red blood cell opportunity and TAM - The expanded CE Mark submission allows access to all patient populations, reducing initial limitations and opening up new opportunities [37][38] Question: Key drivers for IFC guidance and quarterly cadence - The strong pipeline of new hospital customers and increased supply position are expected to drive growth, despite some backlog being cleared in the first half [42][44] Question: Operating expenses and investment growth - The increase in operating expenses is primarily due to government contract activity and cost of living adjustments, with no significant one-time expenses [45]

Evolus (EOLS) Q2 2025 Earnings Call August 05, 2025 04:30 PM ET Speaker0Good afternoon, everyone, and thank you for standing by. Welcome to Evolus Second Quarter Earnings Conference Call. As a reminder, today's conference is being recorded and webcast live. All participants are in a listen only mode. After the speakers' remarks, there will be a question and answer session.I would now like to turn the conference over to Narek Segarian, Vice President and Head of Global Investor Relations and Corporate Commun ...

Financial Data and Key Metrics Changes - Organic revenues were essentially flat, aligning with previous guidance, while OIBDA was $124 million and AFFO was $85 million [11][24][22] - A restructuring charge of $19.8 million was incurred due to the reduction of approximately 120 employees, with expected annualized expense savings of $18 million to $20 million [17][18] Business Line Data and Key Metrics Changes - Billboard revenues decreased by 2.5%, primarily due to the exit of two large marginally profitable contracts in New York and LA [12][16] - Transit revenues grew by 5.6%, driven by a 17% increase in digital revenues, despite a 2.9% decline in organic revenues [13][14] - Digital billboard revenues decreased by 4.5%, while overall digital revenue grew by 1.5%, representing over 34% of total organic revenues [14][15] Market Data and Key Metrics Changes - The strongest revenue categories were legal, financial, service providers, and insurance, while weaker categories included entertainment, health and medical, restaurants, and alcohol [13] - The New York MTA saw mid-single-digit growth despite a strong 20% growth in 2024 [13] Company Strategy and Development Direction - The company has undergone a significant internal reorganization, rebranding sales teams and centralizing operational functions to enhance efficiency and focus on client relationships [5][6][7] - A redesigned brand solutions group aims to drive demand from enterprise marketers across major industry verticals [6][10] - The company is focusing on digital out-of-home advertising as a growing opportunity, particularly targeting digital media buyers who have not yet engaged with this ecosystem [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, expecting revenue growth to accelerate in the third quarter, driven by double-digit growth in transit and low single-digit decline in billboard revenues [28][29] - The company acknowledges challenges in the entertainment sector but remains bullish about future performance based on committed deals [38] Other Important Information - The company maintained a $0.30 cash dividend payable on September 30 to shareholders [26] - Committed liquidity is over $600 million, with total net leverage at 4.8 times, within the target range [25] Q&A Session Summary Question: Are you through the heaviest period of changes to the business? - Management believes they have made significant progress in transformation but acknowledges that work continues in optimizing sales strategy and modernizing workflows [34][36] Question: Can you unpack the weakness in the entertainment vertical? - The decline was attributed to the absence of key studios supporting their slate, but management is optimistic about future performance in this sector [38] Question: What are the drivers behind the acceleration in transit? - Key performance improvements in New York, management focus, and incentives have contributed to the growth in transit revenues [42][43] Question: Is the decline in static transit revenue structural? - Management indicated that the decline is likely structural, as there is a shift towards digital formats [50] Question: What is the potential for margin expansion in the back half of the year? - Expected annualized savings from restructuring could lead to margin improvements, with half of the benefits anticipated in 2025 [53]

Financial Data and Key Metrics Changes - Net sales for the second quarter reached $1,180 million, reflecting a 4.5% increase year-over-year [5][29] - Adjusted EBITDA was $67.7 million, slightly down from $67.9 million last year, with an adjusted EBITDA margin of 5.7% [33] - Adjusted EPS decreased to $0.23 from $0.25 year-over-year [33] - Gross margin was reported at 30.6%, down 30 basis points from last year but up 20 basis points from the previous quarter [30][33] Business Line Data and Key Metrics Changes - Comparable store sales increased by 1.1%, driven by a 1.5% rise in transactions, partially offset by a 0.4% decrease in average transaction size [29][30] - The company opened 11 new stores and closed 2, maintaining a target of 33 to 35 net new stores for the year [5][30] Market Data and Key Metrics Changes - The company operates 552 stores across 16 states as of the end of the second quarter [30] - The Pacific Northwest region has seen improvements in service levels and variety due to consolidation efforts [44] Company Strategy and Development Direction - The company is focusing on four strategic imperatives: improving new store performance, securing top talent, addressing execution gaps, and enhancing execution at scale [6][7] - A disciplined approach to store expansion is being adopted to ensure higher returns on invested capital [28][29] - The introduction of a new arrivals guide and real-time order guide aims to enhance inventory management and improve sales planning for independent operators (IOs) [12][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving comp growth in the second half of the year, supported by improved inventory management and pricing strategies [41][44] - The company is preparing for potential economic challenges, emphasizing its historical resilience during recessions [61][62] - Management reaffirmed the full-year guidance, increasing adjusted EPS due to favorable interest expenses [36][37] Other Important Information - The company raised over $5 million through its Independence for Hunger campaign, providing over 10 million meals to local organizations [26][27] - The restructuring plan is nearing completion, with charges incurred during the second quarter related to asset impairments and lease terminations [32][33] Q&A Session Summary Question: Can you discuss the comp guidance and confidence level for the second half? - Management is optimistic about comp growth, citing improvements in inventory and pricing strategies, as well as positive feedback from IOs regarding new tools [41][44] Question: What are the drivers behind the performance of newer store cohorts? - The company is focusing on infill markets and enhancing site selection criteria, which has led to better performance in new stores [51][53] Question: How is the health of the consumer and potential impacts from SNAP changes? - Currently, there are no significant changes in consumer behavior, and the company is well-positioned to attract value-seeking customers [60][62] Question: What are the expectations for gross margin evolution? - Management is confident in maintaining gross margins within the 30% to 30.5% range, with ongoing improvements in shrink and operational efficiencies [55][56] Question: Can you elaborate on the new arrivals guide and its impact? - The new arrivals guide allows IOs to reserve products outside their ordering windows, enhancing their merchandising capabilities and expected to drive sales [70][71] Question: What is the current health of the IO base? - The voluntary attrition rate among IOs remains below 10%, indicating a healthy balance between supply and demand [64][66]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported total revenue of $105 million, a decrease of 36% year over year [20] - Adjusted EBITDA for the quarter was $23 million, representing a margin of 22% [21] - The company had 2.6 million subscribers during the quarter, reflecting a year over year decline of 40% [20] - Non-GAAP operating expenses were $64 million, a reduction of approximately $31 million or 33% year over year [20] - Free cash flow for the second quarter was negative $12 million, impacted by severance payments and annual prepayment for hosting expenses [21] - The company concluded the quarter with cash and investments of $114.1 million and a net cash balance of $52 million [22] Business Line Data and Key Metrics Changes - The skills and other revenue segment generated $15 million in Q2, including approximately $7 million from content licensing [20] - Busuu, the language learning business, achieved a 15% year over year revenue increase in Q2, with B2C revenue increasing by 6% year over year and B2B revenue growing by 39% year over year [10][11] - The skills business saw a 16% increase in enrollments quarter over quarter and an 11% increase in monthly active users [12] Market Data and Key Metrics Changes - The language learning market has a significant opportunity, with 78 million success-seeking learners and a $3.2 billion market potential [10] - The skills market is valued at $40 billion, focusing on workplace readiness and upskilling for professional adults [12] Company Strategy and Development Direction - The company is undergoing a strategic review process, exploring options including acquisition, going private, or remaining public [6][7] - The focus is shifting towards skills and Busuu as primary growth engines, with investments in language learning and workplace readiness [8][12] - Chegg Study will continue to serve as a valuable service while generating cash to support investments in Busuu and Skills [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for the skills business and its path to profitability and double-digit growth in 2026 [14] - The company is adapting to evolving consumer expectations and market turbulence, particularly in the Busuu and Skills segments [22] - Management highlighted the importance of proving value in the institutional market to drive significant revenue growth in 2026 and beyond [30] Other Important Information - The company is on track to achieve non-GAAP expense savings of $165 million to $175 million in 2025 and $100 million to $110 million in 2026 [19] - The company has successfully cured its stock price deficiency and regained compliance with NYSE's price listing requirements [22] Q&A Session Summary Question: Regarding Busuu's growth in the B2B segment - Management indicated that growth is driven by both direct sales efforts and strong relationships with partners like Guild, emphasizing their ability to control their growth trajectory [24][26] Question: On Chegg Study's institutional pilots - Management noted the importance of proving value to schools and plans to continue adding partners while focusing on performance metrics to drive predictable growth [28][30] Question: About the B2C performance of Busuu - Management attributed steady performance to targeting the right consumer persona and enhancing product features with AI to improve engagement [35][36] Question: Positioning of the skills business in the AI education market - Management expressed optimism about the skills business, highlighting a transition to micro-learning formats that align with current market demands [39][41]