This phone conference focused on Apple's financial performance for the second quarter ending on June 30, 2025, including forward-looking statements such as product release plans, operational efficiency, and financial forecasts. Emphasis was placed on the importance of non-GAAP financial indicators and investors were reminded to pay attention to risk factors mentioned in SEC filings. The conference also included an introduction to financial updates and press releases on the investor relations website, as well as arrangements for the replay of the financial results conference call recording.

In the second quarter of 2025, the advertising business achieved a 77% year-on-year growth, reaching $1.26 billion in revenue. The adjusted EBITDA reached $1.02 billion, with an EBITDA margin of 81%. The growth mainly came from the core gaming advertising business. Additionally, the company is preparing to launch a self-service advertising management platform, Axon Ads Manager, in Q4 and plans to fully release it in early 2026. In the future, the focus will be on improving operational efficiency, enhancing the advertising platform's functionality, and expanding into international markets. It is expected that revenue for the third quarter of 2025 will be between $1.32 billion and $1.34 billion.

The reasons for discussing the plan to launch self-marketing activities on the game advertising platform were discussed, including the success of the current advertising model and the low penetration rate of small businesses, as well as how to improve efficiency through automated processes. At the same time, the sources of platform supply growth were analyzed, pointing out that technological innovation, market demand growth, and audience base expansion are key driving factors, emphasizing the continuous growth potential of the gaming platform itself.

Discussed the launch of the self-service mode on the e-commerce platform and its potential significant impact on the business. In the past year, especially in the fourth quarter, the e-commerce platform achieved significant growth by recruiting a large number of advertisers through pilot projects. Although the entry of advertisers has been temporarily restricted to improve service quality, it is expected that with the full opening of the platform, especially in non-gaming areas, there will be significant business growth. In addition, the e-commerce platform plans to accelerate the growth of advertisers through existing user recommendations of new users, and further promote business expansion in the upcoming shopping season.

Discussed the importance of game engine data for advertising targeting, pointing out that current market leaders have already extensively covered the gaming field, but future competition will shift towards leveraging more comprehensive consumer behavior data to enhance advertising prediction capabilities, emphasizing the potential of cross-disciplinary data integration.

Discussed whether advertisers can receive referral rewards and the participation conditions for international advertisers, emphasizing that platform value should not be obtained through payment, advocating for an organic referral mechanism, mentioning the need to enter the platform through invitations from existing customers, while also discussing the impact of application portfolio detachment on growth rate.

In this conversation, it was mentioned that unlike regular adjustments in previous quarters, the financial guidance for the third quarter specifically includes the increase in revenue brought about by the divestiture of the application business. This change is reflected in the slight increase in revenue.

Discussed the differences in model construction between e-commerce platforms and gaming platforms, as well as the driving role of future data accumulation in model optimization. Emphasized the importance of data sharing and cross-domain applications, and looked ahead to the long-term prospects of business growth and technological advancement.

The conversation revolved around e-commerce platform advertising optimization, discussing strategies to improve conversion rates for website advertisers, including automated delivery, model optimization, etc., emphasizing the differences with platforms like Meta, and how to improve advertising effectiveness through AI and automation to drive business growth.

The dialogue revolves around the future expansion strategy of the platform, discussing customer expansion plans, including accepting more customer groups, simplifying the onboarding process, and exploring non-gaming advertising sources, aiming to achieve global economic and employment contributions. At the same time, it emphasizes the applicability of existing products to various enterprise markets, as well as potential cross-industry cooperation opportunities in the future.

After discussing the lawsuit between Apple and Epic, there has been a change in the way gaming companies acquire users and spend money. Currently, no significant impact has been observed, and it is expected to take several quarters to manifest. Once large gaming companies start taking action, medium and small companies will quickly follow suit, leading to a significant positive impact on advertising platforms.

The conversation revolved around capital allocation strategies, discussing how to achieve a free cash flow profit margin of over 60% in the absence of applied business, as well as how to sustainably return value to shareholders through investing in high-quality talent and implementing a stock buyback plan. The strategy emphasizes prioritizing support for organic growth projects, including talent acquisition, before returning the remaining capital to shareholders through stock buybacks, maintaining consistency with past practices.

The international expansion strategy was discussed, especially the comparison between the US market and the international market, as well as the expected pace of acquiring international customers in the future. It was pointed out that currently the revenue from the US market and the international market are roughly the same, and it is expected that with the opening of the platform, the demand in the international market will gradually increase, but not as suddenly as in the US market, rather penetrating different markets gradually, especially in Western markets. At the same time, the importance of language and cultural differences on international expansion, as well as the importance of referrals from existing customers in attracting new customers, were emphasized.

The study results of how e-commerce platforms handle the diverse needs of advertisers were discussed, emphasizing the importance of integrating different advertising platforms and the challenges faced. In addition, the growth of core gaming advertising business was mentioned, along with an optimistic attitude towards the potential growth opportunities brought by future model optimizations.

The conversation revolves around the impact of the expansion of e-commerce platforms on incremental profits, discusses changes in marketing costs with the development of e-commerce, and how to utilize other supply chain resources to maintain a high profit margin, such as a 9100% incremental profit.

The conversation revolved around business strategies, emphasizing cost control and growth opportunities. Participants discussed how to achieve business growth through precise market promotion and cash management while maintaining cost efficiency. They pointed out that they will focus on performance marketing to optimize user acquisition costs and expect to achieve a higher ratio between user lifetime value and acquisition costs. In addition, it was mentioned that shareholders have positive expectations for this growth model, believing it will bring significant financial returns.

The conversation revolves around the advanced mobile measurement capabilities introduced by Meta, discussing its impact on e-commerce advertising performance and predicting the future share of e-commerce advertising revenue. It is mentioned that Meta's measurement integration with Adjust has no direct competition, emphasizing that the growth potential of e-commerce advertising business far surpasses that of gaming advertising, and it is expected that e-commerce advertising will occupy a larger share in the future. Additionally, it is mentioned that revenue growth forecasts through model optimization and reinforcement learning, as well as the impact of additional revenue from new applications on performance.

The discussion focused on the plan to launch a self-service advertising platform on October 1st, as well as its potential impact on advertisers. It was mentioned that the platform will screen new users through an invitation mechanism from advertisers, rather than being completely open. Additionally, the application of AI tools in advertising creation and optimization was introduced, aiming to enhance the advertising capabilities of small businesses and increase the diversity of advertisements on the platform. In the future, the platform will continue to iterate and provide more automation tools to achieve a win-win situation for advertisers, consumers, and the platform.