This mid-quarter shareholder update addresses misleading short-seller reports by reaffirming the company's business integrity and operational transparency. The CEO emphasizes compliance with App Store policies, noting that all promoted games are App Store apps, ensuring consumer protection. Revenue is earned through demonstrable value—not clicks or impressions—with each download requiring explicit user consent via the App Store or Direct Download. The company deploys technical measures to maintain ad quality.
On data practices, the company explicitly prohibits tracking children's data and requires partners to avoid providing such data. Data is obtained solely for advertising services, not from data brokers. The Adjust and MAX platforms operate independently with transparent mediation, auditable by partners. The company does not access competitors' bid or user data; its models use behavioral data and win/loss notifications common to all bidders.
Financially, the company denies any improprieties, stating no revenue duplication from related parties. It is audited by a Big Four firm with no modified opinions. High margins and low tax burden result from stock-based compensation deductions and legal tax structuring. Subsidiaries from gaming operations will be simplified post studio sale.
Key data points: The e-commerce pilot achieved a $1B annualized gross advertiser spend from 600 customers in December, with plans to expand self-service tools. The timing of the short reports post-earnings highlights the misinformation risk during quiet periods. Actionable takeaways for ad ops leaders include confidence in the platform's measurable ROI, transparent data governance, and robust compliance frameworks.
Estimated reading time: 3 minutes.
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