Applovin Corp (APP) 2024 Q2 法說會逐字稿

Welcome to the AppLovin earnings call for the second quarter ended June 30, 2024. I'm David Hsiao, Head of Investor Relations. Joining me today to discuss our results are Adam Foroughi, our Co-Founder, CEO and Chairperson, and Matt Stumpf, our CFO. Please note our SEC filings to date as well as our shareholder letter and press release discussing our second quarter are available at investors.applovin.com.

歡迎參加截至 2024 年 6 月 30 日的第二季 AppLovin 財報電話會議。今天與我一起討論我們的結果的是我們的共同創辦人、執行長兼董事長 Adam Foroughi 和我們的財務長 Matt Stumpf。請注意，我們迄今向 SEC 提交的文件以及討論第二季度的股東信函和新聞稿均可在 Investors.applovin.com 上取得。

During today's call, we will be making forward-looking statements regarding our products and services market expectations, the expected future financial performance of the company and other future events. These statements are based on our current assumptions and beliefs, and we assume no obligation to update them, except as required by law.

在今天的電話會議中，我們將就我們的產品和服務市場預期、公司預期的未來財務表現以及其他未來事件做出前瞻性陳述。這些聲明是基於我們目前的假設和信念，我們不承擔更新這些聲明的義務，除非法律要求。

Our actual results may differ materially from the results predicted. We encourage you to review the risk factors in our most recently filed Form 10-Q for the first quarter ended March 31, 2024. Additional information may also be found on our quarterly report and Form 10-Q for the fiscal quarter ended June 30, 2024, which will be filed later today.

我們的實際結果可能與預測結果有重大差異。我們鼓勵您查看我們最近提交的截至2024 年3 月31 日第一季的10-Q 表格中的風險因素。中找到更多信息， 2024 年，將於今天晚些時候提交。

We will also be discussing non-GAAP financial measures. These non-GAAP measures are not intended to be superior to or substitute for our GAAP results. Please be sure to review the reconciliations of our GAAP to non-GAAP financial measures in our earnings release and shareholder letter available on our Investor Relations site. This conference call is being recorded and a replay will be available for a period of time on our IR website.

我們也將討論非公認會計準則財務指標。這些非公認會計原則衡量標準無意優於或取代我們的公認會計原則結果。請務必在我們的投資者關係網站上查看我們的收益報告和股東信函中的 GAAP 與非 GAAP 財務指標的調整表。本次電話會議正在錄音，一段時間內將在我們的 IR 網站上提供重播。

Now, I'll turn it over to Adam and Matt for some opening remarks. Then we'll have the moderator take us through Q&A.

現在，我將把它交給 Adam 和 Matt 做一些開場白。然後我們將由主持人帶我們進行問答。

Welcome, everyone, and thank you for joining us. We had another strong quarter in Q2. Our software business had 5% revenue growth quarter-over-quarter because our models continue to improve. As you'll recall, in Q1, we had a big step-up in growth, so continuing that trend to continue to grow quarter-over-quarter is a really promising sign.

歡迎大家，感謝您加入我們。第二季我們又經歷了一個強勁的季度。由於我們的模型不斷改進，我們的軟體業務收入較上季成長 5%。您可能還記得，在第一季度，我們的成長出現了大幅提升，因此繼續保持季度環比成長的趨勢是一個非常有希望的跡象。

As we've stated in previous earnings calls, if we keep growing the software business, the flow through to EBITDA and cash is very high and our business margins and cash conversion will continue to improve. We've also consistently said that the slower growth market we're in mobile gaming doesn't constrain our opportunity to grow our software business. We've noticed that at times this concept is needed a little bit more explaining for our shareholders and prospective investors. So I wanted to take the time to do that here.

正如我們在先前的財報電話會議中所說，如果我們繼續發展軟體業務，EBITDA 和現金的流量將非常高，我們的業務利潤率和現金轉換率將繼續提高。我們也一直表示，行動遊戲市場成長放緩並不會限制我們發展軟體業務的機會。我們注意到，有時需要向我們的股東和潛在投資者進一步解釋這個概念。所以我想花時間在這裡做這件事。

Our platform is entirely performance-based. In other words, gaming advertisers who market on our platform, generate a measurable revenue and profit from the dollars they spend on our platform. Our customers run marketing campaigns with target return goals, but tend to have a much higher appetite for spend on our platform than we can deliver today. And why can't we deliver more today? Because our current system can only find a limited number of users who will meet their revenue goals.

我們的平台完全基於效能。換句話說，在我們平台上進行行銷的遊戲廣告商可以從他們在我們平台上花費的美元中獲得可衡量的收入和利潤。我們的客戶以目標回報為目標進行行銷活動，但他們在我們平台上的支出意願往往比我們今天所能提供的要高得多。為什麼我們今天不能提供更多服務？因為我們目前的系統只能找到有限數量的能夠實現其收入目標的用戶。

As our technology improves, we will continue to find more users who achieve these goals, increasing advertiser spend, resulting in materially higher growth than the growth rate of the mobile gaming market. Last quarter, I talked about a goal of growing our software business 20% to 30% for the long term. I typically don't communicate externally about our goals if I don't have confidence in it. I'm communicating it now because I do have strong confidence in it and I see many years of growth ahead of us.

隨著我們技術的進步，我們將繼續找到更多實現這些目標的用戶，增加廣告商支出，從而實現比行動遊戲市場成長率更高的成長。上個季度，我談到了軟體業務長期成長 20% 至 30% 的目標。如果我對目標沒有信心，我通常不會對外傳達我們的目標。我現在傳達這一點是因為我確實對此充滿信心，我看到我們未來還會有很多年的成長。

Here are the primary drivers of that growth goal. Continued improvement from our models as they learn for more data. As our models gather more data, they'll become more accurate and find more good users for our advertisers, gains that our team delivers to the efficacy of our models through enhancements. Our research science and core engineering team members are exceptionally talented and consistently deliver lifts to the performance of our models.

以下是該成長目標的主要驅動力。隨著我們的模型學習更多數據，它們會不斷改進。隨著我們的模型收集更多數據，它們將變得更加準確，並為我們的廣告商找到更多好的用戶，我們的團隊透過增強功能提高了模型的效率。我們的研究科學和核心工程團隊成員才華洋溢，始終如一地提升我們模型的效能。

Demand expansion into new verticals. We just launched the first web advertising campaigns for shops this quarter. And while in pilot right now, we think it will unlock a lot of demand expansion opportunities for us. And then supply expansion, as we broaden out our demand base outside of gaming, we expect the new categories will really help grow our CTV footprint. We continue to be very excited about our prospects and the performance our team is able to deliver.

需求擴展到新的垂直領域。本季我們剛推出了第一個針對商店的網路廣告活動。在目前的試點階段，我們認為它將為我們釋放大量需求擴張機會。然後供應擴張，隨著我們擴大遊戲以外的需求基礎，我們預計新類別將真正有助於擴大我們的 CTV 足跡。我們仍然對我們的前景和我們團隊能夠提供的表現感到非常興奮。

We will work tirelessly to achieve the goals we set and hope that over the next many quarters and years together, you will have a better sense of how an AI-driven marketing platform creates growth opportunities that just weren't possible in advertising before because technologies were not this sophisticated.

我們將孜孜不倦地努力實現我們設定的目標，並希望在接下來的幾個季度和幾年裡，您將更好地了解人工智慧驅動的行銷平台如何創造成長機會，而這在以前的廣告中是不可能的，因為技術沒有這麼複雜。

With that, I'll hand it off to Matt to run you through the financial highlights.

接下來，我將把它交給馬特，讓您了解財務要點。

Thanks, Adam, and good afternoon. I'm pleased to report we had another strong quarter with total revenue reaching $1.08 billion and adjusted EBITDA of $601 million, achieving a 56% adjusted EBITDA margin. This marks a 44% increase in revenue and an 80% increase in adjusted EBITDA from the same period last year, translating to an impressive 81% flow-through from revenue to adjusted EBITDA.

謝謝，亞當，下午好。我很高興地向大家報告，我們又一個強勁的季度，總收入達到 10.8 億美元，調整後 EBITDA 為 6.01 億美元，調整後 EBITDA 利潤率為 56%。與去年同期相比，這標誌著營收成長了 44%，調整後 EBITDA 成長了 80%，這意味著從營收到調整後 EBITDA 的流量達到了令人印象深刻的 81%。

In the first quarter, we generated $446 million in free cash flow, which is a 74% flow-through from adjusted EBITDA. Quarter-over-quarter, our free cash flow grew 15% compared to 10% growth in adjusted EBITDA over the same period as we benefited from a relatively stable base of cash taxes and interest.

第一季度，我們產生了 4.46 億美元的自由現金流，其中 74% 來自調整後的 EBITDA。與上一季相比，我們的自由現金流成長了 15%，而同期調整後 EBITDA 成長了 10%，因為我們受益於相對穩定的現金稅和利息基礎。

During the quarter, improvement in our AXON technology driven by ongoing self learning contributed to further growth of our software platform, which generated $711 million in revenue and $520 million in adjusted EBITDA, retaining our 73% margin and growing it 91% from the same period last year. This represents an 87% flow-through of revenue from the prior quarter, illustrating our ability to remain disciplined with our costs, growing revenue while remaining lean and efficient.

本季度，持續自我學習推動的 AXON 技術改進促進了我們軟體平台的進一步增長，該平台產生了 7.11 億美元的收入和 5.2 億美元的調整後 EBITDA，保持了 73% 的利潤率，同比增長 91%去年。這相當於上一季營收的 87%，顯示我們有能力維持成本控制、增加收入，同時保持精乾和高效。

Our apps revenue for the quarter was $369 million, an increase of 7% from last year with $81 million in adjusted EBITDA, representing a 22% margin. During the quarter, we readjusted our user acquisition return goals, resulting in an 11% quarter-over-quarter decrease in total app segment costs, while revenue decreased by 3%. We expect our future margin profile to normalize to approximately 15% over the long term, consistent with industry standards.

本季我們的應用營收為 3.69 億美元，比去年成長 7%，調整後 EBITDA 為 8,100 萬美元，利潤率為 22%。本季度，我們重新調整了用戶獲取回報目標，導致應用細分市場總成本環比下降 11%，而收入下降 3%。我們預計，從長遠來看，我們未來的利潤率將正常化至 15% 左右，與行業標準一致。

Looking ahead to capital allocation, we plan to focus on three key areas. First, investment and organic growth initiatives, specifically our engineering and business development headcount to support the development of our AXON technology and expansion into e-commerce. We do not expect significant capital investment here since we plan to expand our teams in a very lean and targeted manner.

展望資本配置，我們計劃專注於三個關鍵領域。首先，投資和有機成長計劃，特別是我們的工程和業務開發人員，以支持我們的 AXON 技術的發展和電子商務的擴張。我們預計不會在這裡進行大量資本投資，因為我們計劃以非常精簡和有針對性的方式擴大我們的團隊。

Second, continued share management activities with a combination of withhold to cover on future share vesting and strategic repurchase. And third, strengthening of our balance sheet to enhance operational flexibility and liquidity while reducing net debt. In Q2, we used $356 million to withhold 4.2 million shares, allocating about 80% of our free cash flow in the quarter to share management.

其次，繼續進行股票管理活動，並結合扣留以支付未來的股票歸屬和策略回購。第三，加強我們的資產負債表，以提高營運靈活性和流動性，同時減少淨債務。第二季度，我們使用 3.56 億美元扣留了 420 萬股股票，將本季約 80% 的自由現金流分配給股票管理。

Since 2022, we've invested nearly $3 billion to repurchase and withhold a combined 83.6 million shares. Finally, in the third quarter of 2024, we anticipate to deliver between $1.115 billion and $1.135 billion in revenue, with adjusted EBITDA between $630 million and $650 million targeting an adjusted EBITDA margin of 57%.

自 2022 年以來，我們已投資近 30 億美元回購和扣留總計 8,360 萬股股票。最後，在 2024 年第三季度，我們預計將實現 11.15 億至 11.35 億美元的收入，調整後 EBITDA 為 6.3 億至 6.5 億美元，目標調整後 EBITDA 利潤率為 57%。

Now with that, let's move to Q&A.

現在，讓我們進入問答環節。

Thank you so much, Matt. And again, like Matt mentioned, we will now take your questions. (Operator Instructions)

非常感謝你，馬特。再次，就像馬特提到的那樣，我們現在將回答您的問題。 （操作員說明）

Jason Bazinet, Citi. (Operator Instructions)

傑森·巴齊內特，花旗銀行。 （操作員說明）

Well, it says the host won't let me do my videos, I can't do that part, but --

嗯，它說主持人不讓我做我的視頻，我不能做那部分，但是——

I got it. All right. You can do it now. Sorry about that Jason, that's my fault.

我得到了它。好的。你現在就可以做。對不起傑森，那是我的錯。

I just had a quick question on some of the initiatives you guys are pursuing outside of gaming. I know it's still a little bit early, and you said some of these products were in beta. But can you just sort of refresh us on sort of what your ambitions are and anything that you've learned so far? And when do you think it might be sort of something that is large enough where the Street could care about? Is it at '25 or '26 event, just some sort of dimensionalization of the timing? Thanks.

我只是想問一下你們在遊戲之外所追求的一些舉措。我知道現在還為時過早，您說過其中一些產品處於測試階段。但您能否讓我們了解一下您的抱負以及迄今為止您所學到的知識？您認為什麼時候它可能會成為華爾街可以關心的足夠大的事情？是在「25」還是「26」事件中，只是時間的某種維度化嗎？謝謝。

Yeah. Good to see, Jason. In the quarter, Q2, we launched pilot of our web advertising program. And this allows -- let's talk about e-commerce first. This allows an e-commerce shop that has a website to buy on our in-app inventory, the 1 billion plus daily active users we see in mobile gaming, a video advertisement route that user to their shop and purchase a user in the same way that mobile game companies like purchasing users on our platform.

是的。很高興見到，傑森。在第二季度，我們啟動了網路廣告計畫試點。這讓我們先來談談電子商務。這使得擁有網站的電子商務商店可以在我們的應用程式內庫存上進行購買，我們在行動遊戲中看到超過10 億的每日活躍用戶，影片廣告將用戶引導至他們的商店並以相同的方式購買用戶手機遊戲公司喜歡在我們的平台上購買用戶。

So doing it on a performance basis and then we're delivering a measurable revenue and results. This is brand-new. I'd say it's been in pilot for a few months now. Results are looking really promising, materially better than what we would have expected this early in our progression in trying to get into web advertising.

因此，在績效的基礎上進行，然後我們就能提供可衡量的收入和成果。這是全新的。我想說它已經試點了幾個月了。結果看起來非常有希望，比我們在嘗試進入網路廣告的早期階段所預期的要好得多。

So this product, we think is something that we're going to invest heavily behind, start scaling out and hopefully will show a material impact in '25 and beyond. And it is not limited to just e-commerce. It opens the door to advertising for any website of any type that wants to drive transactions that are measurable on a performance basis on our platform.

因此，我們認為這個產品是我們將大力投資的產品，開始擴展，並希望在 25 年及以後顯示出實質影響。而且它不僅限於電子商務。它為任何想要推動可在我們平台上的性能基礎上衡量的交易的任何類型的網站打開了廣告之門。

Thank you very much.

非常感謝。

Thank.

感謝。

Clark Lampen, BTIG.

克拉克·蘭彭，BTIG。

Hey, guys. Good afternoon. Hopefully, you can see and hear me. Adam -- perfect. So Adam, if we look at the third quarter guidance and we sort of assume that apps trends are relatively similar to what we saw last year, there's sort of an implied comp adjusted reacceleration in the software business.

嘿，夥計們。午安.希望你能看到我、聽到我。亞當——完美。因此，亞當，如果我們看一下第三季度的指導，並且我們假設應用程式趨勢與我們去年看到的情況相對相似，那麼軟體業務隱含著經過調整後的重新加速。

And I'm going to guess that it's going to be driven by that sort of first primary driver that you mentioned sort of model improvements and sort of the learnings that go on. But one, I guess I'm curious if you could give us a sense of what's actually driving acceleration against tougher comps now? And then, maybe what that sort of for the back half into '25?

我猜測它將由您提到的第一個主要驅動因素驅動，即模型改進和正在進行的學習。但是，我想我很好奇你能否讓我們了解一下現在對抗更艱難的比賽時真正推動加速的因素是什麼？然後，也許 25 年後半段會發生什麼事？

Yeah. I mean, look, when we've talked about this -- this growth goal, if you just think about the growth goal in terms of mobile gaming and the business that we have today, we just grew 5% quarter-over-quarter as the numbers are getting pretty big. Q1 was materially more. It was in the teens quarter-over-quarter. We've always talked about -- like the model is going to continue to improve itself and pick up a few points of growth every single quarter, just from that enhancement.

是的。我的意思是，看，當我們談論這個成長目標時，如果你只考慮行動遊戲和我們今天的業務方面的成長目標，我們的季度環比增長了 5%，數字變得相當大。第一季實質上更多。季度環比為十幾歲。我們一直在談論——就像該模型將繼續自我改進，並從這種增強中每個季度獲得幾個增長點。

But then the team is also trying to apply enhancements on top. When we get lifts from the team, those can be step function. Like we saw in Q1, you wouldn't expect Q1 having double digit growth over Q4. And so we're seeing really good trends in Q3. The business is still very strong. We've got a lot of momentum with our customers that continue to see us as really the main channel now in mobile gaming advertising. And around and behind that, we're also now seeing exciting trends in what we just talked about the web advertising category. So we've got a lot of optimism going into the next quarter.

但隨後團隊也嘗試在此基礎上套用增強功能。當我們從團隊中獲得提升時，這些可以是階躍函數。就像我們在第一季看到的那樣，您不會期望第一季比第四季有兩位數的成長。因此，我們在第三季看到了非常好的趨勢。生意還是很強勁的。我們的客戶為我們帶來了巨大的動力，他們繼續將我們視為行動遊戲廣告領域的真正主要管道。在這周圍和背後，我們現在也看到了我們剛才談到的網路廣告類別中令人興奮的趨勢。因此，我們對下個季度抱持著很大的樂觀態度。

Okay. And if I could, Matt, year to date, you've repurchased around $1.1 billion of stock. The guidance implies both an uptick in margins and higher incremental if we take sort of apps margins at 15%. I think as you just said, how do you think about, I guess as the free cash flow profile of the business is improving, maybe being a little bit more tactical with the buyback in periods where there is a bigger dislocation between the market price and then what you guys view as intrinsic value? Thanks a lot.

好的。馬特，如果可以的話，今年迄今為止，您已經回購了大約 11 億美元的股票。如果我們將應用程式的利潤率定為 15%，該指導意味著利潤率會上升，而且增量也會更高。我認為正如您剛才所說，您如何看待，我想隨著業務的自由現金流狀況正在改善，在市場價格與市場價格之間存在更大錯位的時期，也許會採取更具策略性的回購策略。多謝。

Yeah, sure, Clark. So our plan currently is to continue kind of the historical trend of continuing to manage our shares through withhold to cover on shares that are vesting each quarter and then on a strategic basis, we'll continue to do supplemental repurchases in addition to the quarterly investing.

是的，當然，克拉克。因此，我們目前的計劃是延續歷史趨勢，繼續透過預扣來管理我們的股票，以涵蓋每個季度行使的股票，然後在策略基礎上，除了季度投資之外，我們將繼續進行補充回購。

Thanks, Clark.

謝謝，克拉克。

James Heaney, Jefferies.

詹姆斯·希尼，杰弗里斯。

Great. Hey, guys, and thanks for taking the questions. Could you just talk more about the 20% to 30% long-term software platform growth that you referenced? And I'm curious just how dependent that goal is on verticals beyond gaming? And I just had one more follow-up.

偉大的。嘿，夥計們，感謝您提出問題。您能否詳細談談您提到的 20% 到 30% 的長期軟體平台成長？我很好奇這個目標對遊戲以外的垂直領域的依賴程度如何？我剛剛又進行了一次跟進。

Yeah. We don't think it's very dependent outside of gaming at all. You've got a mobile gaming category. It's got a few percentage points of growth a year now. So let's call that low single digits. You've got a business that as these models continue to improve from gathering more data, we think that's an extra 3%, 4% a quarter as well. So that sort of gets you to the low end.

是的。我們認為它在遊戲之外完全不依賴。您有一個移動遊戲類別。現在每年增長幾個百分點。所以我們稱之為低個位數。隨著這些模型透過收集更多數據而不斷改進，我們認為每季還會額外增加 3%、4%。所以這會讓你陷入低階。

And then we've got a team that's constantly working on improving the models and any improvement that's actually developer driven enhancements to the malls that makes them more accurate, then stops you up into the higher end of that range. And so we've got a lot of confidence in the growth goal we put out there just on a baseline basis, the current business.

然後我們有一個團隊不斷致力於改進模型以及任何實際上由開發人員驅動的購物中心增強功能的改進，使它們更加準確，然後阻止您進入該範圍的高端。因此，我們對我們在基準基礎上製定的當前業務的成長目標充滿信心。

Now we do sit on 1 billion plus daily active users. We've got one of the most sophisticated advertising platforms in the world, and we're driving billions of dollars of performance value in gaming. There's nothing about the technology we have that would disallow it from going outside of just mobile gaming. And we're already seeing positive trends in that pilot. So as we start putting these pieces together and broaden out our platform over time, we're really excited about how big the numbers could become.

現在我們確實擁有超過 10 億的每日活躍用戶。我們擁有世界上最先進的廣告平台之一，並且正在推動遊戲價值數十億美元。我們所擁有的技術並不會阻止它超越手機遊戲領域。我們已經在該試點項目中看到了積極的趨勢。因此，當我們開始將這些部分整合在一起並隨著時間的推移擴大我們的平台時，我們對這些數字可能變得有多大感到非常興奮。

Great. And then just one more follow-up on the just the overall health of the mobile gaming market. I think you've in the past talked about 3% to 4% industry growth. So curious if you're seeing any and change in those trends?

偉大的。然後是關於行動遊戲市場整體健康狀況的另一個後續行動。我想您過去曾談到 3% 到 4% 的行業成長。很好奇您是否看到了這些趨勢並發生了變化？

No. And we're not seeing any change in the aggregate, but you also have to remember our market is a little bit different. We're driven in large part by advertising based applications growing audience. So that 1 billion plus daily active users are inside of apps that run advertisements. You monetize those apps, partially with games that generate purchases, partially with games that generate purchases and advertising. And so that number is a documented anywhere, but we're seeing the overall IP market, everyone can look at industry reports and see growing low-single digits. We're also seeing the advertising supported market grow faster than that.

不。我們在很大程度上受到基於廣告的應用程式不斷增長的受眾的推動。因此，超過 10 億的每日活躍用戶都在運行廣告的應用程式中。您可以透過這些應用程式獲利，部分透過產生購買的遊戲，部分透過產生購買和廣告的遊戲。因此，這個數字在任何地方都有記錄，但我們看到的是整個 IP 市場，每個人都可以查看行業報告並看到不斷增長的低個位數。我們也看到廣告支援市場的成長速度比這更快。

Great. Thank you.

偉大的。謝謝。

Omar Dessouky, BofA. And Adam And Matt, just to let you know, he is on audio only.

奧馬爾‧德蘇基 (Omar Dessouky)，美國銀行。亞當和馬特，只是想讓你知道，他只提供音訊。

Hey, Omar.

嘿，奧馬爾。

Hey, guys, I'm on all audio only. Thanks. So look, I'm -- just looking at your third quarter guidance, if I were to back out the apps business, I kind of get a number that's sort of 50% year-on-year in the third quarter, which is still pretty far -- pretty far off from the 20% to 30% long-term growth that you talked about.

嘿，夥計們，我只聽音頻。謝謝。所以看，我只是看看你們的第三季指導，如果我要退出應用程式業務，我會得到一個數字，第三季度同比增長 50%，這仍然是距離你談到的20% 到30% 的長期成長還很遠。

So I think myself and a lot of people would kind of want to know like what is potentially that trajectory going from software business of maybe 50% year-over-year next quarter eventually to that 20%, 30%, do you have any visibility into the first couple of quarters of 2025 yet that you're able to share with us?

所以我認為我自己和很多人都想知道軟體業務從下個季度同比增長 50% 最終到 20%、30% 的潛在軌跡是什麼，你有任何了解嗎進入2025 年的前幾季度，您能與我們分享一下嗎？

So we don't provide long-term guidance, obviously, really only a quarter ahead. As Clark touched on, you can sort of deduce where that software business we're guiding to on the upcoming quarter. It's still -- if you start adding up the quarters to get into 20%, 30%, you want to see 5%, 6%, 7% quarter-over-quarter growth. We think we can -- we can be confidently in those ranges for quite some time. We see a lot of opportunity to grow.

因此，我們不提供長期指導，顯然，實際上只提前了一個季度。正如克拉克談到的那樣，您可以推斷我們在下一個季度引導軟體業務的發展方向。如果你開始將季度加起來達到 20%、30%，你會希望看到 5%、6%、7% 的季度環比增長。我們認為我們可以——我們可以在相當長的一段時間內自信地保持在這些範圍內。我們看到了很多成長的機會。

Now that removes any opportunity for step function gains and model enhancements driven by the team. That also does not include really any sort of thought given to what new categories are going to contribute to our business long term because frankly, again, they're in pilot. So we're not backing those numbers into longer-term views on the business.

現在，這消除了團隊驅動的階躍函數增益和模型增強的任何機會。這也不包括對哪些新類別將從長遠來看為我們的業務做出貢獻的任何思考，因為坦白說，它們還處於試點階段。因此，我們不會將這些數字作為對業務的長期看法。

So we think we're going to be in a place where this business is going to be steady. It's going to be growing at a very nice rate. The conversion to cash flow is only going to improve and we've got a lot of other exciting things that are going on that give us confidence that we could even be above those ranges.

因此，我們認為我們的業務將保持穩定。它將以非常好的速度成長。現金流的轉換只會有所改善，而且我們還有很多其他令人興奮的事情正在發生，這讓我們有信心我們甚至可以超越這些範圍。

Okay. Could I just ask you another quick question. So in terms of the opportunity for in-app advertising, some of the checks that I did suggest that there are some improvements there. So I think the in-app -- the in-app purchase market is somewhere around $100 billion. The in-app advertising market, a lot smaller somewhere maybe between $20 billion and $30 billion, is my estimate. Does your technology really drive advertising revenues for publishers as well and potentially turn that into a growth market and could that make a major difference in your software business?

好的。我可以再問你一個簡單的問題嗎？因此，就應用程式內廣告的機會而言，我所做的一些檢查表明存在一些改進。因此，我認為應用程式內購市場的規模約為 1000 億美元。據我估計，應用程式內廣告市場規模小得多，可能在 200 億美元到 300 億美元之間。您的技術是否真的能為發行商帶來廣告收入，並有可能將其轉變為成長市場，這是否會對您的軟體業務產生重大影響？

Yeah. Also, look, that market already is growing much faster than the in-app purchasing market because it's just at a smaller base. We're also the MAX platform we've touched on in the past, the majority of the mobile gaming and app advertising market is running through that MAX auction.

是的。另外，你看，該市場的成長速度已經比應用程式內購買市場快得多，因為它的基數較小。我們也是過去接觸過的MAX平台，大部分的行動遊戲和應用程式廣告市場都是透過MAX拍賣來運作的。

That MAX auction has gone from the inefficient world of waterfall to programmatic bidding. Vast, vast majority of the auction is now in a bidding state and so it's continuously gotten more efficient. Our advertising has also gotten a lot more efficient. So as you've seen our business double in the last year, there's billions of dollars of more investment happening from mobile gaming companies in user acquisition and user discovery.

MAX 拍賣已經從低效率的瀑布世界轉向程序化競價。現在，絕大多數拍賣都處於競價狀態，因此效率不斷提高。我們的廣告也變得更有效率。正如您所看到的，我們的業務在去年翻了一番，行動遊戲公司在用戶獲取和用戶發現方面增加了數十億美元的投資。

Some part of that is in-app advertising advertisers and that's help be a catalyst to re-growing this industry as a whole in-app purchasing. But some portion of that also is the -- are these publishers that are buying more users now because our systems are more effective for advertising based applications. So all of this stuff is intertangled together and we're one of the main catalysts of growth in this category because our scale is so large inside this category on both fronts.

其中一部分是應用程式內廣告廣告商，這有助於成為整個應用程式內購買產業重新發展的催化劑。但其中的一部分也是——這些出版商現在正在購買更多用戶，因為我們的系統對於基於廣告的應用程式更有效。因此，所有這些東西都交織在一起，我們是該類別成長的主要催化劑之一，因為我們在該類別的兩個方面的規模都很大。

Understood. Thank you very much.

明白了。非常感謝。

Vasily Karasyov with Cannonball has the next question and is also audio only.

Cannonball 的 Vasily Karasyov 有下一個問題，而且只有音訊。

Yes, apologies for that. Good afternoon. Adam, I think on the previous call, you mentioned that the big publishers started spending with you and before that they were not because they see -- they saw you as a competitor.

是的，對此表示歉意。午安.亞當，我想在上次電話會議上，您提到大型出版商開始與您合作，在此之前他們並不是因為他們看到 - 他們將您視為競爭對手。

So I was wondering how the trend continued this quarter. Do you still see them coming in bigger, bigger buckets? And then does that open up a significant corner of the market that you sort of could not address before? Would appreciate your thoughts here. Thank you.

所以我想知道這個季度這種趨勢如何持續。你還看到它們裝在越來越大的桶子裡嗎？那麼這是否打開了您以前無法解決的市場重要角落？非常感謝您的想法。謝謝。

Yeah. I mean, look, like at this level of scale with how big the software business is, if you backed out total advertiser dollars that you think are in our platform, it's in the many billions of dollars. So we've always worked with some of the very large publishers like we usually have had pretty deep penetration in mobile gaming, but there are some very well-known large publishers that did look at us as a competitor.

是的。我的意思是，看看，在軟體業務規模如此大的水平上，如果你放棄你認為在我們平台上的廣告商總資金，那就是數十億美元。因此，我們一直與一些非常大的發行商合作，就像我們通常在行動遊戲領域有相當深入的滲透一樣，但也有一些非常知名的大型發行商確實將我們視為競爭對手。

At this point, our platform is so successful in mobile gaming, it's very, very hard for any publisher to look the other way. And so we've gotten a lot more adoption across even those publishers. There isn't really a customer that I know of in mobile gaming that does not find success and scalable success on our platform at this point today.

目前，我們的平台在行動遊戲領域非常成功，任何發行商都很難忽視這一點。因此，我們甚至在這些出版商中也得到了更多的採用。據我所知，目前在行動遊戲領域，沒有一個客戶沒有在我們的平台上取得成功並取得可擴展的成功。

Okay. Thank you.

好的。謝謝。

Moving on to Mohammad [Galauth] with HSBC. Mohammed do you want to turn your video on? Mohammed, if you can hear me, go-ahead and unmute yourself so we can at least hear you to ask your question.

接下來是匯豐銀行的穆罕默德 [Galauth]。穆罕默德，你想打開你的影片嗎？穆罕默德，如果您能聽到我說話，請繼續並取消靜音，這樣我們至少可以聽到您提出問題。

All right. Well, hearing no response, we'll move on to Matt Cost with Morgan Stanley.

好的。好吧，沒有聽到任何回應，我們將轉向摩根士丹利的馬特·科斯特。

Great. Hi guys. Thanks for taking the question. I guess when I think about e-commerce advertising kind of an in-app environment or an in-game environment, as I understand it today because of the AppLovin exchange, which should allow people like Google or Trade Desk to access the inventory on MAX to run e-commerce ads today, that should be possible, but it doesn't seem like it's a very big business today.

偉大的。嗨，大家好。感謝您提出問題。我想，當我想到電子商務廣告時，就像我今天所理解的應用程式內環境或遊戲內環境一樣，因為 AppLovin 交換應該允許像 Google 或 Trade Desk 這樣的人訪問 MAX 上的庫存今天投放電子商務廣告，這應該是可能的，但今天看來這並不是一個很大的業務。

So I guess, what are the impediments to running e-commerce advertising in an in-game or in-app environment that are preventing others from doing it already since -- I believe it should be possible. And then how are you solving those problems or aiming to solve them with your e-commerce product? Thank you.

所以我想，在遊戲內或應用程式內環境中運行電子商務廣告的障礙是什麼，阻止其他人這樣做——我相信這應該是可能的。那麼您如何解決這些問題或旨在透過您的電子商務產品解決這些問題？謝謝。

Look, we can't speak to other people's technologies or things that prohibit them from being able to get categories to work in gaming, but Trade Desk products are nothing like ours. When it comes to succeeding on behalf of advertisers, in any category, we want our models to be able to drive measurable revenue. So you got to have an attribution framework, you've got to have models that can predict revenue and match the user up with the advertiser and you've got to make it all work together. We're in pilot with this product right now. It's looking quite promising. And so we think it's something that we're going to be able to build on and build on very aggressively as we go forward.

看，我們不能談論其他人的技術或阻止他們在遊戲中使用類別的事物，但 Trade Desk 產品與我們的產品完全不同。當談到代表廣告商在任何類別中取得成功時，我們希望我們的模型能帶來可衡量的收入。因此，您必須擁有一個歸因框架，必須擁有一個可以預測收入並將使用者與廣告商配對的模型，並且必須使所有這些協同工作。我們目前正在試用該產品。看起來很有希望。因此，我們認為，在我們前進的過程中，我們將能夠非常積極地在此基礎上繼續發展。

And just to follow up on that. I guess from a data perspective, it is just a matter of iterating on it. I mean, because obviously you have so much data that's specifically relevant to kind of like the game advertising products you've done historically. Is that applicable directly to e-commerce advertising or other verticals or is it about iterating and kind of building a new dataset?

只是為了跟進。我想從數據的角度來看，這只是一個迭代的問題。我的意思是，因為顯然您擁有大量與您歷史上所做過的遊戲廣告產品特別相關的數據。這是否直接適用於電子商務廣告或其他垂直行業，還是涉及迭代和建立新的資料集？

No, I think it's a combination of both. I mean, we trend -- we process tens of billions of dollars of transactional volume already, and we see [$1 billion-plus] daily active. So our platform is not small at this point. And that data is able to be used across anything. These are human beings, not just mobile gamers, and the audience skews female and middle-aged. And so it's completely different than what people would assume a gaming audience is at a very, very large scale, directly applicable to e-commerce is something that we've always hypothesized as possible.

不，我認為這是兩者的結合。我的意思是，我們的趨勢是——我們已經處理了數百億美元的交易量，我們看到每日活躍交易量超過 10 億美元。所以我們的平台在這一點上並不小。這些數據可以用於任何事物。這些人都是人類，而不僅僅是手機遊戲玩家，而且觀眾以女性和中年人為主。因此，這與人們假設的遊戲受眾規模非常非常大完全不同，我們一直假設可能直接適用於電子商務。

The models in AXON 2 are so much more sophisticated than in technologies we've had in the past that they should enable success there. Now we're in pilot and we're seeing success there. So we're at the point now where we know we put the pieces in place and now it's more of a go-to-market problem and less of a technology.

AXON 2 中的模型比我們過去擁有的技術複雜得多，因此它們應該能夠在該領域取得成功。現在我們正在進行試點，並看到了成功。因此，我們現在知道我們已經把各個部分都放在了適當的位置，現在更多的是一個進入市場的問題，而不是一個技術問題。

Great. Thank you.

偉大的。謝謝。

[Arsenti matovik] with Wolfe.

[Arsenti matovik] 與沃爾夫。

Hi. Thanks for taking my question. So looking at AppDiscovery installations growing 77% on a tough comp and revenue per installation accelerating versus last quarter. I guess just -- is there any strength in installations from non-gaming?

你好。感謝您提出我的問題。因此，在競爭激烈的情況下，AppDiscovery 安裝量成長了 77%，每次安裝的收入比上季加速成長。我想只是——非遊戲領域的安裝有什麼優勢嗎？

I know it's small revenue base today, but in terms of AppDiscovery installations, is it a more material portion of that growth? And then just aside from that, any types of could you go into a little bit more detail on how you're still seeing that strong strength in installations and revenue per installation? Then just a follow-up on the apps business. Thanks.

我知道現在的收入基礎很小，但就 AppDiscovery 安裝而言，它是成長中更重要的部分嗎？除此之外，您能否更詳細地介紹一下您如何仍然看到安裝量和每次安裝收入的強勁實力？然後是應用程式業務的後續行動。謝謝。

Yeah, Sure. So the non-gaming continues to grow, but it's still a relatively small portion of the overall installations when you look at the overall software business. So to Adam's previous comments, like it's still a relatively small portion of the existing business and it's still kind of in pilot mode there. So we continue to see kind of promising results, but it's really not moving today.

是的，當然。因此，非遊戲業務持續成長，但從整體軟體業務來看，它仍然只佔整體安裝量的相對較小部分。因此，根據亞當先前的評論，它仍然是現有業務中相對較小的一部分，並且仍然處於試點模式。所以我們繼續看到一些有希望的結果，但今天確實沒有進展。

Got it. And then just on apps, despite the dip in monthly active payers, you saw, I think when you back it out in-app advertising basically flat sequentially. This a function of the strength from AXON 2? And also on apps, do you plan on exploring any divestiture studios? Some people were talking about wanting to add more studios. Does that -- would that support some of your capital allocation plans in the medium term? Thanks.

知道了。然後就在應用程式上，儘管每月活躍付費者有所下降，你會看到，我認為當你取消應用程式內廣告時，基本上會連續持平。這是 AXON 2 強度的函數嗎？在應用程式方面，您是否計劃探索任何剝離工作室？有些人在談論想要增加更多工作室。這會支持你們的一些中期資本配置計劃嗎？謝謝。

I mean, like we've said in the past about M&A and divesting the apps businesses, we continue to be open to it and we're really just waiting for the market to improve. And we've been optimizing the app studios over the last over a year.

我的意思是，就像我們過去關於併購和剝離應用業務所說的那樣，我們繼續對此持開放態度，我們實際上只是在等待市場改善。在過去一年多的時間裡，我們一直在優化應用程式工作室。

So you can see that as well, right, in this quarter where we've adjusted the return goals for our UA spend, decreasing costs pretty materially and increasing our margin profile. So we'll continue to maximize those businesses for-profit and we'll be open to transactions in the future.

因此，您也可以看到，在本季度，我們調整了用戶獲取支出的回報目標，大幅降低了成本並提高了我們的利潤率。因此，我們將繼續最大限度地提高這些業務的盈利能力，並且我們將在未來開放交易。

Thank you.

謝謝。

Martin Yang, OpCo.

馬丁楊，OpCo。

Thank you for taking my question. I want to dig a little deeper into your confidence on that 35% constant improvement on a sequential basis. What gave you the type of confidence because I look at the underlying market and your customer behavior, it's a very dynamic market for mobile gaming with new game launches, certain games performing worse or better and customers are doing all sort of things. So what is a constant in that type of market that gave you the confidence that your improvement can be pretty consistent on a quarterly basis?

感謝您回答我的問題。我想更深入地了解您對連續 35% 持續改進的信心。是什麼給了你這樣的信心，因為我觀察了基礎市場和客戶行為，這是一個非常活躍的行動遊戲市場，有新遊戲發布，某些遊戲表現更差或更好，客戶正在做各種各樣樣的事情。那麼，在這種類型的市場中，什麼是常數，讓您有信心您的改進可以在每個季度保持相當一致呢？

I think, you said 35% sequential quarter-over-quarter.

我想，你說的是季度環比成長 35%。

3% to 5%.

3%至5%。

So there's two components, right, like one is the market growth, which we can all say is low-single digits. One is just models getting better every single quarter because they see more data and they get more accurate. And that's -- these models by definition, this is how they work. And so we see that in real-time, the models continue to get more accurate. Now our advertisers and I said this in my talk track, our advertisers will spend much more today on our platform that we can deliver to them.

所以有兩個組成部分，對吧，就像一個是市場成長，我們都可以說這是低個位數。一是模型每季都變得更好，因為它們看到更多數據並且變得更準確。這就是——這些模型的定義，這就是它們的工作原理。因此我們即時看到模型繼續變得更加準確。現在，我們的廣告商和我在談話中說過，我們的廣告商今天將在我們的平台上花費更多，而我們可以向他們提供這些服務。

The limitation is how many users can the models match-up on across every single one of those advertisers at those revenue goals. If the models get better, they're able to process more data and find more users for those advertisers, so the spend will go up naturally, and it's not that these advertisers are adding more budget, it's not that they're saying, we want to buy users at a more expensive cost to them by definition, lowering their goals. It's that the models get better, all else stays equal and these advertisers grow on our platform. And so we're seeing that in real-time.

限制在於模型可以在每個廣告商中匹配多少用戶來實現這些收入目標。如果模型變得更好，他們就能夠處理更多數據並為這些廣告商找到更多用戶，因此支出自然會增加，並不是這些廣告商增加了更多預算，也不是他們說，我們想要以對他們來說更昂貴的成本購買用戶，從而降低了他們的目標。而是模型變得更好，其他條件保持不變，並且這些廣告商在我們的平台上成長。所以我們實時看到這一點。

And there is a very, very large appetite for incremental spend on our platform because we deliver profits to these advertisers. They're arbitrage marketing on us, they are buying at a profit. And so they will spend a lot more if our models can do it. And so those two things can build out a very good sustainable growth rate inside the mobile gaming category.

人們對我們平台上的增量支出有著非常非常大的興趣，因為我們為這些廣告商帶來了利潤。他們對我們進行套利行銷，他們以利潤購買。因此，如果我們的模型能夠做到這一點，他們將會花費更多。因此，這兩件事可以在行動遊戲類別中建立非常好的永續成長率。

And then the third piece is, if you end up having a lift to the form of technology that you're using, you materially enhance that technology and in the past have used like ChatGPT 3.5, 4, these are incremental changes that are step functions in these types of technologies and I use that as an analogy because people understand it. But in our world, we're constantly making enhancements to the technology.

第三部分是，如果你最終提升了你正在使用的技術形式，你就實質地增強了該技術，並且在過去使用過像ChatGPT 3.5、4 這樣的技術，這些都是增量變化，是階梯函數在這些類型的技術中，我用它作為類比，因為人們理解它。但在我們的世界中，我們不斷增強科技。

When there is a lift to the technology, that could be a step-function in growth for the same reason because these advertisers will spend more and it can make our models more accurate at larger-scale on behalf of them. So hopefully that answers for you, Martin.

當技術得到提升時，出於同樣的原因，這可能會成為成長的階躍函數，因為這些廣告商會花費更多，並且可以代表他們使我們的模型在更大範圍內更加準確。希望這能為您解答，馬丁。

Yeah, a quick follow-up. So are you saying that the key inputs to your own model improvement is primarily volume-driven or the volume data driven?

是的，快速跟進。那麼您是說您自己的模型改進的關鍵輸入主要是體量驅動還是體量資料驅動？

Yeah. I mean, look, we're a very, very large-scale, right? So that data creates a moat. And the more data our models process, the better they're going to get. So every single quarter, we launch the system, we just went and lapped the one-year anniversary, right? So it's been in the market now for a year-plus. Every month has been bigger than the prior month. So we get more data, processes more data with those incremental data points, the math gets stronger, the model gets stronger and it can drive more value. So we've seen that consistently.

是的。我的意思是，你看，我們的規模非常非常大，對吧？因此，數據創造了一條護城河。我們的模型處理的數據越多，得到的結果就越好。所以每個季度，我們都會啟動該系統，我們只是去慶祝一周年紀念日，對嗎？所以現在它已經上市一年多了。每個月都比上個月大。因此，我們獲得更多數據，用這些增量數據點處理更多數據，數學變得更強，模型變得更強，可以帶來更多價值。所以我們一直看到這一點。

These AI technologies are very, very new. So it's not like in the world, we have 10 years of history to look-back on and go, when do these models stop improving themselves. They currently are doing that today. That's by nature, that's how this AI technology works, processes immense amounts of data and through that, the math gets stronger and more accurate and more predictive. And so we're seeing that in real time. That gives us confidence that this core underlying technology is going to continue to grow over time.

這些人工智慧技術非常非常新。所以世界上不是這樣，我們有10年的歷史可以回顧過去，這些模型什麼時候停止改進自己了。他們今天正在這樣做。這就是本質，這就是人工智慧技術的工作原理，處理大量數據，透過這些，數學變得更強大、更準確、更具預測性。所以我們實時看到這一點。這讓我們相信這項核心基礎技術將隨著時間的推移而持續發展。

Got it. You talked about matching. Is there a sense you can give us on how accurately are you matching the users to the apps now and how much more accurate it can be in the future?

知道了。你談到了匹配。您能否告訴我們您現在將使用者與應用程式配對的準確程度以及將來的準確程度？

Yeah. I mean, look, we're very, very accurate today. When an advertiser says, I want to break even in 30 days on our platform, we achieve that goal for them. When I say increasing the match rate, it means let's say that advertiser says, I want to spend $1,000 today and I want to get the $1,000 back in 30 days and we get that within a percent of inaccuracy. So they get whether it's $990 or $1,010 back in 30 days. That we have a limit of $1,000 that they can spend today, though the system can only deliver that much with a very low error rate for them.

是的。我的意思是，看，我們今天非常非常準確。當廣告商說，我想在我們的平台上 30 天內實現收支平衡時，我們就為他們實現了這個目標。當我說提高匹配率時，意思是說廣告商說，我今天想花 1,000 美元，我想在 30 天內收回 1,000 美元，而我們得到的結果誤差在百分之一以內。因此，他們會在 30 天內收回 990 美元或 1,010 美元。他們今天可以花費的金額上限為 1,000 美元，儘管系統只能以非常低的錯誤率提供這麼多金額。

Now let's say tomorrow the system processes more data or our team makes an enhancement and now the system can deliver $2,000 at that same 30 day breakeven. The advertiser is going to say, I got the $2,000 ready to go. You're breakeven in 30 days, I'll put it on my credit card. Well, they have unlimited tolerance to spend if all else remains equal and as our technology continues to improve, that business will continue to grow.

現在，假設明天系統會處理更多數據，或者我們的團隊會進行改進，現在系統可以在 30 天盈虧平衡的情況下交付 2,000 美元。廣告商會說，我已經準備好了 2,000 美元。 30天內你就收支平衡了，我會把它存入我的信用卡上。好吧，如果其他條件保持不變，他們對支出的容忍度是無限的，並且隨著我們的技術不斷改進，該業務將繼續增長。

Thank you.

謝謝。

Well, this concludes our question and answer session and today's webinar. We thank you all for your participation, and we look forward to seeing you all next quarter. You may now disconnect. Enjoy your summer.

好了，我們的問答環節和今天的網路研討會到此結束。我們感謝大家的參與，期待下季與大家見面。您現在可以斷開連線。享受你的夏天。