AppLovin 2023 Q4 Earnings Call

While over one, thank you for joining today's AppLuvings earnings webinar. We will begin momentarily. Thank you, everyone. Thank you so much for joining us today. We'll start in approximately one minute. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Please stand by. We are about to begin. Welcome, everyone, to the app. I'm David Chow, head of investor relations. Joining me today to discuss our results are Adam Frugi, our co-founder, CEO and chairperson. And Matt Stump, our CFO. Please note our SEC filings to date as well as our shareholder letter and press release discussing our fourth quarter and annual performance are available at investors.appeleven.com. During today's call, we will be making forward-looking statements regarding our products and services, market expectations, the 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. Our actual results may differ materially from the results predicted. We encourage you to review the risk factors in our most recently filed form 10Q for the fiscal quarter and its September 30th, 2023.

感谢大家参加今天的AppLuvings收益网络研讨会。我们将很快开始。谢谢大家。非常感谢大家今天能够加入我们。我们将在大约一分钟后开始。谢谢。谢谢。谢谢。请稍候。我们即将开始。欢迎大家来到本次应用。我是投资者关系负责人David Chow。今天与我一起讨论我们的业绩的是我们的联合创始人、CEO和主席Adam Frugi，以及我们的首席财务官Matt Stump。请注意，截至目前，我们的SEC申报文件、股东信和关于我们第四季度和年度表现的新闻发布已经在investors.appeleven.com上提供。在今天的通话中，我们将就我们的产品和服务、市场预期、公司未来的财务表现以及其他未来事件进行前瞻性声明。这些声明基于我们目前的假设和信念，我们假设除非法律要求，否则不会更新它们。我们的实际结果可能与我们预测的结果有实质性的差异。我们鼓励您查看我们最近提交的截至2023年9月30日的财季10Q表中的风险因素。

We will also be discussing non-gap financial measures. These non-gap measures are not intended to be a substitute for or superior to our gap results. Please be sure to review the reconciliations of our gap in non-gap financial measures in our earnings release and share a letter available on our investor relations site. This conference call is being recorded and a replay will be available at our IR website. 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. Welcome everyone, and thank you for joining. We're thrilled to report another outstanding quarter in Q4. We surpassed the high end of our guidance and established a consistent pattern of exceptional performance throughout 2023. Reflecting on the last year, it's remarkable to consider how much we have grown and evolved in just one year. After challenging 2022, characterized by stagnant growth, we refocus on growing our existing business and investing in new initiatives. I am immensely proud of our team's dedication and hard work, which has resulted in our software platform revenue growing by 76% in 2023. Despite a challenged economic landscape and mobile gaming sector, we have continued to grow.

我们还将讨论非依据公认会计原则的财务指标。这些非依据公认会计原则的指标并不意味着可以替代我们的依据公认会计原则的结果或优于其结果。请务必查看我们财务报告和投资者关系网站上提供的依据公认会计原则和非依据公认会计原则的协调。本次电话会议正在录音，可在我们的IR网站上回放。现在，我将把话题转给亚当和马特，让他们做一些开场白。然后，由主持人带领我们进行问答环节。欢迎大家的加入，感谢您的参与。我们很高兴地报告在第四季度取得了另一个出色的业绩。我们超过了我们的指导范围的高端，并且在2023年取得了卓越绩效的连续模式。回顾过去一年，令人惊讶的是考虑到我们在短短一年内有多少成长和进步。在经历了2022年的挑战后，其中表现为增长停滞，我们重新聚焦于发展我们现有的业务并投资于新的项目。我非常自豪我们团队的敬业精神和辛勤工作，这导致我们2023年的软件平台收入增长了76％。尽管经济环境和移动游戏行业面临挑战，但我们仍在持续增长。

This is a clear testament to the strength and potential of the updates we have made to our AI advertising engine, Axon. When we embarked on our public journey in 2021, software platform revenue was nearly 700 million. And now, only two years later, we have reached close to $2 billion. We also forecast that we would have significant margins on incremental revenue for our software business. I'm proud to state that in Q4, 2023, our incremental revenue had an approximate 80% flow through to adjusted EBITDA, culminating in record cash flows. This growth trajectory underscores a robust financial health and positions us favorably for diverse opportunities to enhance shareholder value like ongoing share repurchases. Now, looking ahead to 2024 and beyond, we continue to remain bullish about the potential of our core AI technologies which stand amongst the most advanced across all markets. Our focus on leveraging these technologies for world in the CTV space and array in the carrier OEM market is just the beginning. We are poised to explore and expand into new applications of our AI technologies in the coming quarters and years, which has the potential to significantly broaden our TAM and opportunities.

这是对我们升级人工智能广告引擎Axon的实力和潜力的明确证明。2021年我们开始公开旅程时，软件平台收入几乎达到7亿美元。如今，仅两年后，我们已经接近20亿美元。我们还预测我们的软件业务将具有显着的边际收入。我很自豪地宣布，在2023年第四季度，我们的增量收入大约有80%流向调整后的EBITDA，创造了创纪录的现金流。这种增长轨迹证明了我们强健的财务健康状况，并使我们在增强股东价值的各种机会方面处于有利位置，比如持续的股票回购。现在，展望2024年及以后，我们继续对我们核心人工智能技术的潜力保持乐观态度，这些技术在所有市场中处于最先进地位。我们专注于利用这些技术在CTV空间和载体OEM市场中的世界，这只是一个开始。我们准备在未来几个季度和年份中探索和扩展我们人工智能技术的新应用领域，这将显著扩大我们的TAM和机会。

Now I'll turn it over to Matt, who will deliver his first financial summary of their CFO. We are incredibly fortunate to have him in this role. Thank you once again for your unwavering support on this journey. Thanks Adam, and good afternoon. I'm pleased to step into my first earnings release at CFO with such amazing financial results. So first, I'd like to thank the team for having executed so well this quarter and making my job easy.

现在我将把话题转交给Matt，他将为我们的首席财务官提供他的第一个财务总结。我们非常幸运能有他担任这个角色。再次感谢您一直以来在这个旅程中的坚定支持。谢谢Adam，下午好。我很高兴能够在担任首席财务官期间发布我的第一个财务业绩报告，而且业绩如此出色。首先，我要感谢团队在本季度表现出色，让我的工作变得轻松。

In the fourth quarter, we exceeded the high end of our guidance for both revenue and adjusted EBITDA, achieving $953 million in total revenue, and $476 million in adjusted EBITDA. That's an impressive 50% adjusted EBITDA margin. We also exceeded our analyst expectations this quarter by beating the consensus averages for both revenue and adjusted EBITDA. Adjusted EBITDA was nearly 10% higher than expectations. Our revenue grew by 36% from the same period last year and 10% from last quarter.

在第四季度，我们超过了收入和调整后的EBITDA指导的高端，实现了总收入达到9.53亿美元，调整后的EBITDA达到4.76亿美元。这意味着我们有令人印象深刻的50%的调整后EBITDA利润率。我们还超过了本季度分析师的期望，击败了收入和调整后的EBITDA的共识平均值。调整后的EBITDA几乎比预期高出10%。我们的收入同比增长了36%，环比增长了10%。

Optimization efforts within our apps business in the first half of the year resulted in a slight decline in revenue, but it led to improved EBITDA margin. We still grew revenue every quarter this year due to the tremendous performance of our software platform and continued strength and growth in the advertising market. Our apps portfolio continues to perform well with 5% growth from last quarter while maintaining a consistent 15% adjusted EBITDA margin. Our software platform had another excellent quarter. We achieved a revenue of $576 million and adjusted EBITDA of $420 million. That's a 73% margin.

我们在上半年对应用程序业务进行的优化工作导致收入轻微下降，但使EBITDA利润率改善。今年每个季度我们的收入仍然增长，这要归功于我们软件平台的出色表现以及广告市场的持续实力和增长。我们的应用程序组合继续表现出色，上季度增长了5％，同时保持着稳定的15％调整后的EBITDA利润率。我们的软件平台在另一个季度表现出色。我们实现了5.76亿美元的收入和4.2亿美元的调整后的EBITDA。利润率达到了73%。

This represents nearly an 80% flow through from revenue given our relatively fixed cost base and continued cost discipline. All of our businesses were able to grow their revenue this quarter without discovery of the primary driver of our success. Our growth stemmed from a combination of market factors and our execution including a strong holiday season, growth in the mobile app advertising market, a market shift to real-time bidding, early contributions from our array business, enhancement of our technologies like Axon, expansion of our advertiser base, and growth in advertiser budgets. The combination of these factors are contributing to improved efficiency leading to compounding growth for our company and our partners in the industry.

由于我们相对固定的成本基础和持续的成本管理，这几乎代表了近80%的收入流入。本季度，我们所有业务都能增加收入，而这一成功的主要推动力仍未被发现。我们的增长源自市场因素和我们的执行，包括强劲的假期销售季节、移动应用广告市场的增长、市场向实时竞价的转变、我们阵列业务的早期贡献、像Axon这样的技术的增强、广告客户群的扩大以及广告预算的增长。这些因素的综合作用正在提高效率，为我们公司和行业合作伙伴带来成倍增长。

Turning briefly to our annual results, revenue for the year was $3.3 billion. That's an increase of 17% from last year. Adjusted EBITDA was $1.5 billion. That's an incredible 41% increase from last year at an adjusted EBITDA margin of 46%. Over the last five years, we've been able to achieve remarkable growth in our software platform business. We grew from $136 million in adjusted EBITDA in 2019 to nearly $1.3 billion this year. During that time, we had roughly 60 to 70% adjusted EBITDA margin. Free cash flow for the year was $1 billion, representing an impressive 69% flow through from adjusted EBITDA of $1.5 billion.

简要谈到我们的年度结果，今年的收入为33亿美元，比去年增长了17%。调整后的息税折旧及摊销前利润为15亿美元，比去年增长了惊人的41%，调整后的息税折旧及摊销前利润率达到了46%。在过去的五年里，我们在软件平台业务中取得了令人瞩目的增长。我们从2019年的1.36亿美元的调整后的息税折旧及摊销前利润增长到了今年近13亿美元。在这段时间里，我们几乎保持了60%到70%的调整后的息税折旧及摊销前利润率。今年的自由现金流为10亿美元，占15亿美元调整后的息税折旧及摊销前利润的卓越流转率达到了69%。

Going forward, we hope to retain roughly 70% flow through on an annual basis with quarterly fluctuations due to working capital and tax payments. During the year, we extended the maturity of our term loan to 2030 at the same time reducing our interest rate to continue to manage our ongoing costs. In addition to our debt management activities this year, we also repurchased and withheld a combined 54.3 million shares in 2023. After considering share compensation, this represents a nearly 10% reduction in our total shares outstanding. Through the combination of free cash flow generation and share management, we hope to continue to generate significant long-term value for our existing and our new shareholders.

未来，我们希望每年保持大约70%的现金流，但季度波动会受到营运资本和税款支付的影响。今年，我们延长了到2030年的定期贷款到期日，同时降低了利率，以继续管理我们正在进行的成本。除了今年的债务管理活动，我们还在2023年回购和保留了合计5430万股股份。考虑到股份补偿，这代表了我们总流通股份的近10%的减少。通过自由现金流的产生和股份管理的结合，我们希望为我们现有和新的股东继续创造长期价值。

Our board has also approved an increase in our share repurchase authorization by $1.25 billion. We plan to use this to continue to manage our outstanding shares. Turning to our first quarter 2024 guidance, we hope to deliver between $955 and $975 million and revenue the first quarter. Adjusted EBITDA is expected to be within the range of $475 and $495 million. That represents an adjusted EBITDA margin of between 50 and 51%. We believe these results are achievable given the various growth factors I highlighted earlier. While taking into account the first quarter is a seasonally low period for the industry.

我们的董事会还批准了将我们的股票回购授权额度增加125亿美元。我们计划利用这笔资金继续管理我们的未流通股份。至于2024年第一季度的业绩展望，我们希望在第一季度实现9.55亿至9.75亿美元的营收。预计调整后的EBITDA将在4.75亿至4.95亿美元的范围内。这将带来调整后的EBITDA利润率在50%到51%之间。我们相信这些结果是可以实现的，考虑到之前我强调的各种增长因素，尽管第一季度对于整个行业来说是淡季。

In conclusion, we're very happy with our financial performance this quarter and for all of 2023 as a result of a strengthening market combined with our team's execution. We look forward to continued growth over the coming year as we continue to expand our business into new verticals and industry systems in our own gaming and city. Now with that, I'll hand it over to our moderator to take us through to. Thank you so much, Matt. And now we will take your questions. When I call your name, please turn on your video and unmute and we will get through as many questions as possible in the time allotted.

总之，由于市场持续增强和我们团队的执行力，我们对本季度以及2023年整体的财务表现非常满意。我们期待在未来一年继续保持增长势头，将业务拓展至我们自己的游戏和城市中的新的垂直领域和产业系统。现在我将把话题交给我们的主持人来继续进行。非常感谢你，Matt。接下来我们将回答你们的问题。当我叫到你的名字时，请打开摄像头并取消静音，我们将尽可能回答多的问题。

And our first question is going to come from Omar Dasuki with BFA. Omar, go ahead and come off video, please. Great. Thank you. Thank you for taking my question. So let's see, on the one hand, you're not giving calendar your 24 guidance, but on the other hand, you did talk about in your letter that you're working towards expanding your software platform reach in 2024. So I was wondering if you could unpack those two things for us, especially the software platform reach part. Thank you.

我们的第一个问题将来自BFA的Omar Dasuki。Omar，请继续关闭视频。非常好，谢谢你。感谢您回答我的问题。让我们看看，一方面，您没有提供2024年的指导，但另一方面，您在信中提到您正在努力扩大软件平台的覆盖范围。所以我想知道您是否可以为我们详细解释这两件事，特别是软件平台覆盖范围部分。谢谢。

Thanks, Omar. I'll start with the business side and then now I'll jump into the financials. But ultimately, we launched Axon to the upgrade of our platform in Q2 last year. From that point to Q4, the business, the software business grew almost 50%. And obviously, you know, the impact on margins. We've talked about a huge flow through in dollars, the incremental dollars of growth there coming in at 80% roughly in the quarter. This is an early stage technology. It's only been live for a little over half a year. It's growing exceptionally quickly, very high margin. We think the applications of this core technology are much broader than what we do today. And the team is continuously improving the technology, too. So we're very excited about where it could go. Ultimately, when you've got a business that's growing that quickly on a technology that's that new at the margins we operate at, it's very hard to understand going forward exactly where we're working. But we've never been more excited about the growth prospects we've got in front of us.

谢谢，奥马尔。我将从业务方面开始，然后接着谈财务情况。但最终，我们在去年第二季度启动了Axon平台升级。从那时到去年第四季度，软件业务增长了近50%。显然，这对利润率产生了影响。我们谈到了增长的额外美元流入，大约在季度内增长了80%。这是一项早期技术。这项技术仅在一年多一点的时间内运行。它增长非常迅速，利润率很高。我们认为这项核心技术的应用要比我们今天所做的要广泛得多。团队也在不断改进这项技术。因此，我们对其未来的发展非常兴奋。当你的业务在一项如此新的技术上以如此快的速度增长时，以我们目前的利润率，很难准确了解我们未来的运作情况。但我们对我们面前的增长前景从未如此兴奋过。

And just to echo what Adam said, Omar, given the difficulty in kind of forecasting and understanding the impact of launching a new technology like we did with Axon 2.0, it's very difficult for us to forecast what the impact with the financial impact of that is. So for that reason, we don't provide longer term guns. And just to quick follow up if I could. So Facebook called out Chinese advertisers, both e-commerce and video game publishers is one of the reasons they are advertising outperforming Q4. I didn't see it in your, your shareholder letter. And I was wondering if that's something you guys had seen at all or perhaps expecting in the first quarter.

正如亚当所说的那样，奥马尔，考虑到我们推出Axon 2.0这样一项新技术时的预测难度和影响理解的困难，我们很难预测其财务影响。因此，出于这个原因，我们不提供更长期的预测。还有一个小问题，如果可以的话。Facebook指出中国广告商，包括电子商务和视频游戏发行商，是他们广告在第四季度表现优异的原因之一。我在您的股东信中并没有看到这一点。我想知道你们是否也注意到了这一点，或者可能在第一季度有所预期。

Now, we don't have any specific concentration or change of mix. And we index lower in terms of Chinese partners to rest the world. And I think they do. But this is something we'd called out during COVID. China lockdown was a huge area of inefficiency in the market. So we've seen the market really hit a trough last year and two years ago and then start recovering late last year. A lot of that was because Chinese developers were back in office for a year coming back online, getting efficient again. And we'd signaled that we thought eventually that's going to help bring efficiency back to the market because while we don't index heavily on the revenue side, there is a lot of content that's created out of China that comes out West and does benefit advertising related businesses. And so that was a good trend that we've seen continue to expand. Thank you very much. Appreciate it.

目前，我们没有任何特定的集中度或混合变化。相对于中国合作伙伴，我们的排名较低，与全球其他地区相比。我认为他们确实有这样做。但这是我们在疫情期间提出过的一个问题。中国的封锁在市场中产生了巨大的低效率。所以我们看到市场在去年和前年真的谷底了，然后在去年末开始复苏。很大一部分原因是因为中国开发者一年来回到办公室，重新上线，重新变得高效。我们曾表示，我们认为这最终会帮助市场恢复效率，因为虽然我们在收入方面并不依赖太多，但中国创造了很多内容并进入西方市场，对广告相关的企业带来了好处。这是一个我们看到不断扩大的良好趋势。非常感谢。感谢您的关注。

Thanks, Summer. Our next question will come from Tim Nolan with Macquarie. Hi guys. Can you hear me? Okay. Yeah, we're here. Okay, great. Thanks. I had some trouble with the with the with the sound on the first part of that presentation. Glad you can hear me now. I wanted to ask about some of these big changes coming in the mobile landscape this year, mainly the DMA, which comes into effect, I guess, in a couple of weeks time, three weeks time. And I'll put the deprecation of the Google Android ID and then also the iOS 17.4 kind of a lot of things in there to wonder about how it might impact the mobile ad markets here. What if you could comment on this, please?

谢谢，萨默。我们下一个问题将由麦格理的蒂姆·诺兰提出。嗨，大家好。你们可以听到我说话吗？好的。是的，我们在这里。好的，谢谢。我在演示的第一部分遇到了一些声音上的问题。很高兴你们现在可以听到我说话。我想问一下今年移动领域即将发生的一些重大变化，主要是DMA，我猜会在几周后生效，大概三周后。还有关于谷歌Android ID的停用，以及iOS 17.4的一系列变化，想知道它们可能如何影响移动广告市场。请问你们能否就此发表评论？

Yeah, look, I think we've said this before when it comes to privacy, Tim is you don't know dates on a lot of these releases. So when you're talking about Google, like, who knows when the actual rollout will be cookies were a lot later than expected and still in a very small percentage rollout. So we don't know when these changes will come. We don't know the exact impact of the changes. What we do know is that one, the way we've operated traditionally, we're very entrepreneurial. We're very nimble and we've been able to adapt very well. Whenever there have been these changes. And number two, we run a much more of a contextual behavioral model than a lot of properties on the open web. And so because we don't interface as much when it comes to really sensitive user data with the consumer, we're in a much better starting point than a lot of other businesses too. So those two things always give us confidence that no matter what the changes, we're going to be able to navigate it.

是的，看，我觉得我们以前说过这个问题，关于隐私的事情，蒂姆，你不知道这些发布的日期。所以当你谈论谷歌时，谁知道真正的推出时间是什么。 Cookie比预期晚了很多，而且仍然只在很小的范围内推出。所以我们不知道这些变化什么时候会发生。我们也不知道这些变化的确切影响。我们知道的是，首先，我们传统上的运营方式非常创业、非常灵活，我们一直能够很好地适应这些变化。其次，我们更多地运用的是一种上下文行为模式，而不是很多在公网上的财产。因此，因为当涉及到与用户的敏感数据相关时，我们与消费者的接口不太多，所以我们比很多其他企业有更好的起点。所以这两点总是让我们有信心，无论发生什么变化，我们都能够应对。

Okay, could I ask a follow up on the DMA, which would be do you think, you know, allowing much lower app store fees in Europe, at least would be a positive for app development, which might then lead to more ad spending going down the road, or do you have any opinion on the Apple response to be, you know, adding this extra 50 cent charge. The way Apple responded makes it not really a great business decision to go off store. Because one thing people want to talk about is there is organic value to being on store. So if you take the 30 percent fee and figure 10 to 15 points of value from organic rank, then you're down to 15 points of cost savings and the expense to the developer that they, all the different layers of expense, amount of roughly 20 points. So there's no economic reason to go off store today. We think over time though, there's enough global pressure and there's going to be enough movement from the courts over time that they're going to continue to scrutinize this in different jurisdictions, where eventually we think there could be benefits economically to the content developers. And if that happens, we've always said that's going to greatly benefit the advertising solutions. If you just think about the dollars on our platform, majority are transacted to drive IAP today, and the dollar is taxed down to 70 cents. If that one day went to 85 15, you could go take that and say every developer now makes 20% more. And how much of that are they going to be willing to put into marketing, a large part of it, which would be greatly beneficial to the platform like ours. Yep. Great. Thanks Adam. Moving on to Jason Bazzinette with city.

好的，我能问一下关于DMA的后续问题吗？您认为在欧洲降低应用商店费用会对应用开发产生积极影响吗？这可能会导致未来广告支出增加吗？或者您对苹果的回应有任何看法，他们即将增加这额外的50美分收费。苹果的回应使得离开商店并不是一个明智的商业决定。因为人们想谈论的一件事是在商店里有有机价值。所以如果你考虑30%的费用，从有机排名中获得10到15个点的价值，那么你的成本节约就减少到了15点，相对于发展者的费用支出，各种层次的费用加在一起大约是20点。因此，今天没有经济理由离开商店。我们认为长远来看，由于全球压力足够大，法庭随着时间的推移将继续审视在不同司法管辖区的情况，最终我们认为内容开发者可能会获得经济上的好处。如果发生这种情况，我们一直说过这将极大地有利于广告解决方案。如果您考虑一下我们平台上的资金，大部分是为了推动应用内购而进行的交易，而这些资金会被减到70美分。如果有一天变成85/15，你就可以说每个开发者现在可以增加20%的收入。而他们会愿意花多少钱进行营销，这将极大地有益于我们这样的平台。好的，谢谢亚当。接下来是与城市有关的杰森·巴兹内特。

Thanks. This is maybe a long-winded question, but I can't help but look at your stock and the multiple seems so low to me given the attractiveness of your business and the growth and the free cash flow conversion. And I saw the 1.2 billion authorization on buybacks, but I don't think you bought back any stock in the quarter and yet your guidance is good you knew is going to be above the street so my first question is can you just comment on sort of the tactical pause and the fourth quarter on buybacks and then my second one related is, do you think you're multiple is low because of the two divergent businesses that you have between the software platform and first party games. And does that does that still make sense to hold these two businesses together given that one is phenomenally attractive and one is just good. Thanks.

谢谢。可能这是一个有点啰嗦的问题，但我忍不住要看看你们公司的股票，对我来说，考虑到你们业务的吸引力、增长和自由现金流转换，股票的估值倍数似乎太低了。我看到了12亿美元的回购授权，但我不认为你们在本季度回购了任何股票，然而你们的指导很好，你们知道会超过市场预期，所以我的第一个问题是，你能不能就第四季度回购的战略性暂停发表一下评论，我的第二个问题是，你认为你们的估值低是因为你们在软件平台和第一方游戏之间拥有两种不同的业务。这样做还有意义吗，考虑到其中一个极具吸引力，另一个只是不错。谢谢。

Yes, I'll take the buyback piece person. Yep. So Jason just from a strategic view that our approach to doing buybacks is to do directed large repurchases rather than buyback in the open market. That's how we feel like we can have the most impact. And the opportunity to present our set itself in key for to do a large buyback from an existing shareholder. So to the extent that that does present itself in the future that's their parts that we're going to take. Yeah, and we just did authorize the big buyback. We're going to be committed to it going forward. We do think as a company like ours where we're generating this much cash flow. We should be able to continue to facilitate buybacks and return value to shareholders in that manner. When it comes to the question of where we trade, why we trade at the certain multiple we trade out, but we can't answer that. We're not traders and it's very hard to unpack does mobile gaming discount the overall company valuation. We don't frankly believe so because the core software business is growing so quickly and we break out financials. That's pretty easy to just say. Let's just look at the software segment.

是的，我会接受回购的计划。是的。所以从战略的角度来看，我们进行回购的方式是通过有针对性的大额回购，而不是在公开市场上回购。我们觉得这样才能产生最大的影响。如果有机会从现有股东那里进行大规模回购，那就是关键所在。所以如果未来这种机会出现，我们会采取行动。是的，我们刚刚授权了大规模回购。我们将承诺继续进行回购。我们认为作为一个能够产生如此多现金流的公司，我们应该能够继续进行回购并以这种方式向股东返还价值。至于我们的股价定位以及为什么以某种倍数进行交易的问题，我们无法回答。我们不是交易员，很难解开移动游戏是否会打折整个公司估值的问题。事实上，我们并不这么认为，因为核心软件业务增长非常迅速，而我们也将财务数据进行了拆分。这很容易，我们只需要看看软件部门即可。

We think the harder part when it comes to our business is that we were in a no growth period in 22. We had to come off of that and really focus on execution, which is what we asked of our teams. And now we put together four subsequent quarters of stellar performance and the Glee that software segment. There's not a lot of software businesses with 70% plus even though margin growing at the rate that is. I mean, rule of 140, 150 or whatever. It's just an astounding number. Then we convert a very high percentage of that even dot a cash flow as well. So we think because the technologies are new, it'll take a while for investors to understand what we already see, which is not only does this very powerful technology in our core market. We've been able to grow much greater than the market is growing because this technology is efficient. And in conjunction with that, our partners are growing much faster too. And you see some of these games that are in the market today at the top of the top grossing. They depend on our marketing channel and they're growing because our solutions become more efficient. That's in our core market.

在我们的业务中，我们认为最困难的部分是我们在22年经历了一个没有增长的阶段。我们必须走出这一困境，真正专注于执行，这也是我们要求团队做的事情。现在我们已经连续四个季度实现了出色的业绩，特别是软件部门。虽然增长速度如此之快，但70%以上的软件业务并不多见。我是说，规模为140到150左右乃至更高，这只是一个惊人的数字。然后我们转化了高比例的现金流。我们认为由于技术是新的，投资者可能需要一段时间来理解我们已经看到的东西，即我们的核心市场拥有非常强大的技术。我们能够实现比市场更快的增长，因为这项技术效率高。与此同时，我们的合作伙伴也在增长得更快。你可以看到一些当今市场上排名前列的游戏，它们依赖于我们的营销渠道，并且因为我们的解决方案变得更加有效而增长。这就是我们的核心市场。

And now we see applications of that technology and multiple adjacent markets. And we think we're going to be able to go apply it not only to what we've talked about some other applications. See that we'll talk about in the upcoming quarters. And that's what gets us really excited. So we're for sure committed to five acts because we see value and we're able to unpack the value much more easily today than investors are. And we hope to be able to articulate that narrative in the coming quarters to investors. Thank you. But we will now hear from Ralph Shackert. I apologize with William Blair.

现在我们看到了这项技术的应用以及多个相关市场。我们认为我们将能够将其应用于我们之前谈到的一些其他应用领域。在接下来的几个季度中，我们将会谈到这些应用。这让我们感到非常兴奋。因此，我们确实致力于这五个行动，因为我们看到了价值，而且我们今天能够更容易地揭示这个价值，而投资者们还没有意识到。我们希望在未来几个季度能够向投资者清楚地阐述这个故事。谢谢。接下来我们会听到来自Ralph Shackert的发言。对不起，是William Blair。

Hey, Adam. Thanks, taking the question. First one. I know you've talked historically about axon to extended beyond just sort of the gaming vertical but maybe it sort of gives us an update on progress. You know, you're starting to get contributions outside of the gaming vertical that I have a follow up.

嘿，亚当。谢谢你接受提问。首先，我知道你过去曾谈到过， Akamai不仅仅局限于游戏垂直领域，也许你可以给我们一些关于进展的更新。你知道，您是否开始在游戏垂直领域之外获得了一些贡献，我有一个后续问题。

Yeah, thanks Ralph. Not gaming is growing faster gaming. It's smaller. So obviously there's more room to grow. It's going to be a commitment of ours to broaden out the platform. We've talked about branding out to non gaming. That's a component. We've talked about connected TV. That was an application that's in progress right now, expanding our reach to the television device. We talked about delivering marketing solutions to carriers and OEMs powered by axon to that's in progress as well. We're starting to see as Matt touched on in his script some benefit from both those initiatives. And we think there are not only those applications, but more beyond that, that we'll talk about in the coming quarters as well. And so we're very excited about not only what our solution can do within our core category, but the expansion opportunities that presents us.

是的，感谢拉尔夫。非游戏部分的增长速度比游戏部分快。规模更小。显然还有更多的增长空间。扩大平台将成为我们的承诺。我们已经谈论过向非游戏领域拓展的事情。这是一个重要的组成部分。我们已经谈论过连接电视。这是一个正在进行中的应用，扩大我们的影响力到电视设备。我们已经谈论过为运营商和OEM提供由axon提供动力的营销解决方案，这也在进行中。正如马特在他的文稿中提到的那样，我们开始看到了这些举措带来的一些益处。我们认为不仅仅是这些应用，还有更多的机会，我们将在未来几个季度中谈论。因此，我们对我们的解决方案不仅可以在我们的核心领域做些什么感到非常兴奋，而且对于扩展机会也感到兴奋。

Right. Maybe to sort of provide some context of, you know, what's really outperforming versus expectation. I'm sure there's an element of conservatism and wanting to guide but just sort of frame for investors, you know, why is axon to doing better perhaps than you expected.

好的。也许为了提供一些背景，你知道，究竟是什么表现超出了预期。我相信有一些保守性因素，希望指导，但只是为了给投资者一个框架，你知道，为什么Axon表现得比你预期的好。

Look, I mean, what people don't understand about our platform, and I guess we don't tend to articulate to is the the max business sits on top of over a billion daily active users, a billion users playing games. So if you think about in the US, roughly 170 million daily active users that you're talking about the majority of American adults are playing games daily in mobile apps and we're able to service them. Historically in this channel, the modernization has been very low. Her 1000 impressions compared to what the social networks and the search engines and the video apps have gone to and those companies had very sophisticated technology and a lot of data. We've been able to get to a point now where technology has become much more efficient. So we're just monetizing this audience more effectively. What gets us really excited is we're a couple quarters in. We're really starting from a low modernization point. The whole market is monetizing these users playing games at a low point. When you when you have that much reach 170 million daily active in the States, these aren't people that are just playing mobile games. There's just no way. It's a very, very widespread audience predominantly adult that are doing other things. And as these technologies get to a point of predicting more broader application of advertising to this audience, not only will it get more efficient, it'll expand out the reach for a company like ours to other verticals and it'll create more efficiency for the publisher, which should grow everything. And so that's what gets us really excited is it all comes down to efficiently monetizing a huge audience that we have access to.

看，我的意思是，人们不理解我们平台的地方，我想我们也没有表达清楚的是，最大的生意是建立在超过十亿日活跃用户之上的，十亿用户在玩游戏。所以如果你想想在美国，大约有1.7亿日活跃用户，你谈论的是大多数美国成年人每天在移动应用中玩游戏，我们能够为他们提供服务。历史上，在这个领域，现代化程度一直很低。每千次展示相比于社交网络、搜索引擎和视频应用已经达到的水平还很低，这些公司拥有非常复杂的技术和大量的数据。我们现在已经达到了技术变得更加高效的地步。所以我们只是更有效地实现了对这个受众的货币化。让我们感到非常兴奋的是我们已经过了几个季度。我们真的是从很低的现代化水平开始的。整个市场正处于对这些玩游戏用户进行低水平货币化的阶段。当你有这么大的覆盖面，美国有1.7亿日活跃用户时，这不是只玩移动游戏的人。没有办法。这是一个非常广泛的受众，主要是成年人在做其他事情。随着这些技术逐渐发展到能够更广泛地预测广告对这个受众的应用，不仅将变得更高效，还将扩大我们这样一家公司对其他垂直领域的覆盖范围，并为出版商创造更高的效率，这都将推动一切的增长。所以让我们感到非常兴奋的是，一切归根结底都是有效地实现我们能够接触到的庞大受众的货币化。

I mean, if I can speak more and more and we get the question all the time and simple terms, if you could explain what's the main difference from axon two versus axon one, maybe just for simplicity sake for investors sort of frame. What's the biggest change or observation you see on your thanks. Yeah, it's just better. I mean, just the technology is built to scale better. It's more efficient, more effective. These are predictive technologies in the day and I've drawn the analogy to chat to you. And the only reason I do that is because we can all type in a box and get a result. And we all know that chat to you be three to three, five to four. Four was better than three five was better than three, right? But we could have seen that. Well, what we can't see in a black box algorithm is a type in and a result. But what we can see is that what we're trying to predict is shown advertisement to a consumer for some advertiser. And drive value to the advertiser and there's a whole bunch of predictions along the way and axon two makes them better than the prior version. And that creates a lot of efficiency gain both for our business and that of our partners.

我的意思是，如果我能讲得更多，我们总是会得到这个问题，并用简单的词语解释，你能不能解释一下轴二和轴一之间的主要区别，也许只是为了投资者更容易理解。你在你的产品中看到的最大变化或观察是什么。是的，这只是更好。我的意思是，这项技术建立得更好。它更高效，更有效。这些都是预测技术，在这一天，我把这个类比成跟你聊天。我之所以这样做，是因为我们都可以在一个框里打字，得到一个结果。我们都知道，四是比三好的，五是比四好的，对吧？但我们可以看到的是，我们试图预测的是把广告展示给消费者，为某个广告商创造价值，在这个过程中有很多预测，而轴二使它们比之前的版本更好。这为我们的业务和我们的合作伙伴带来了很多效率提高。

Okay, thanks. Yep. Canambals. The ceiling carousel has the next question. Thank you. I have to first one. Can you talk in a little more detail about different trends for domestic and international markets that you see and. Revenue or maybe metrics. Is there any difference? Do you see different penetration and, you know, customer response. And then the second one is given what you said about extending software platform, how sustainable are they be done margins in this segment that we saw in Q for. Thank you. So, so on the first, we don't see a whole lot of difference domestic to international. There's consumption. The drives are value and there's efficiency of the algorithms and partners that are advertising on us that drive the value. And so other than like one off holidays and international locations that would alter the revenue percentages. If you assume the period of engagement is consistent, then the revenue mix would also be consistent. The other core thing to always remember about our businesses. All of our advertising is 100% performance based. So an advertiser that wants a specific performance, a yield and the US is willing to get the same yield in Turkey or in the UK or in Germany or in Japan. And so when they advertise with us, they are predominantly global advertisers. So we don't tend to see much variance there.

好的，谢谢。是的。Canambals。天花板旋转木马有下一个问题。谢谢。我要先回答第一个问题。你能详细谈谈你看到的国内和国际市场的不同趋势吗？收入或者指标可能有什么差别吗？你是否看到不同的渗透率，顾客反应？然后第二个问题是，考虑到您提到的扩大软件平台，这一领域的利润率有多持续？我们在第四季度看到了什么？谢谢。所以，对于第一个问题，我们并没有看到国内和国际之间有太大的差别。消费是驱动价值的因素，算法和合作伙伴的效率也是驱动价值的因素。除了一些国际地点的特殊假期可能会改变收入百分比以外，如果你假设参与期一致，那么收入组合也会是一致的。关于我们业务的另一个核心事项总是要记住的是，我们所有的广告都是100%基于业绩的。所以一个想要特定业绩、在美国愿意在土耳其、英国、德国或日本获得相同业绩的广告商，在我们这里投放广告时，他们在很大程度上是全球广告商。所以我们在那里通常不会看到太大的变化。

And on your second question, Vasili, in terms of just margin, we haven't seen any significant difference. I mean, as Adam mentioned previously, it's relatively small at this point, a non-gaming component of the business. But as we push into these other new verticals and industries, we don't see any material difference between the margin profiles of the existing mobile gaming business of the non-gaming. Yeah, we've let you all know that, you know, when you see roughly 80% flow through, we don't really expect that to be different as that software business continues to grow. The flow through should be a really high conversion to even though.

关于你的第二个问题，瓦西利，就利润率而言，我们并没有看到任何显著的差异。我是说，就像亚当之前提到的那样，在目前阶段，非游戏业务在整个业务中规模相对较小。但是当我们进军这些新的垂直领域和行业时，我们并没有看到现有移动游戏业务和非游戏业务的利润率概况有任何实质差异。是的，我们已经告诉过大家，当利润率约为80％时，我们并不指望随着软件业务的持续增长会有所不同。即使增长转化率会非常高。

So Q4 is indicative of what we should expect next year, every quarter. Online criminal revenue growth. Yeah. Yeah. I mean, if you look at just our guidance, Vasili, we're, we're guiding to a similar position, right? And the 50 to 51% overall, you get the margin. Thank you so much. Congratulations. Welcome. Thank you. And Matt, cost with Morgan Stanley, please go ahead with your question. Hi, everybody. Thanks, Jason. The questions to if I could.

因此，第四季度是我们每个季度都应该期待的指示。在线犯罪收入增长。是的，是的。我的意思是，如果你只看看我们的指导，瓦西里，我们的指导是一个类似的位置，对吧？整体上是50到51%的利润率。非常感谢。恭喜你。欢迎。谢谢。马特，摩根斯坦利的成本，请您提出问题。大家好。谢谢，杰森。我有几个问题。

So from a real time bidding perspective, it looks like I might have frozen. Can you still hear me? Yep. Yep. Okay. Good. Well, then we'll keep going. From real time bidding perspective, how much of the market has shifted towards real time bidding at this point? And then can you talk about the financial impact that that will have when that process is complete and how investors should think that through and then I have a second. Yeah.

从实时竞价的视角来看，看起来我可能已经卡住了。你还能听见我吗？是的。是的。好的。那么我们会继续。从实时竞价的角度来看，市场在多大程度上已经向实时竞价转移？接着，您可以谈一谈这个过程完成时将产生的财务影响，投资者应该如何考虑这个问题，然后我还有第二个问题。

So the first one, the Google announcements on their move to go predomni real time bidding and mobile mediated auctions came out. I think it was some point in October and they had a commitment to do by January, but throughout Q for the vast majority of the market was traded in a programmatic real time manner. And the impact of that is twofold for a business like ours. One is we've operated the max platform, not charging anything to advertising companies when they're not real time bidding, but charging a take rate of 5% when they are real time bidding. So this goes at number before that's just a consistent fee that we charge to bid on our platform.

因此，首个重大消息是谷歌宣布他们将转向主要采用实时竞价和移动中介拍卖。我记得这大概是在十月的某个时候，他们承诺要在一月之前实现这一举措，但在整个Q时期，绝大部分市场都采用了程序化实时方式进行交易。对我们这样的企业来说，这产生的影响是双重的。一方面，我们一直在运营max平台，在广告公司没有进行实时竞价时不收取任何费用，但在进行实时竞价时会收取5%的佣金。这就意味着之前的固定费用现在变成了我们在平台上竞标时收取的一致费率。

Now with the majority of the market moving that way, that's a good economic development for the max platform and that obviously benefits our software segment. On the second point of the impact, what real time bidding does is clear an auction faster. There's less consumption. So they're just less infrastructural load in order to process a real time auction versus a waterfall auction. And there's a quicker ad delivery. And by delivering an advertisement more quickly, the publisher benefits because they can show more advertisements to their consumer whenever they want to instead of waiting for an advertisement to actually clear. It clears faster and more show.

随着市场的大部分走向这个方向，这对于最大平台来说是一个良好的经济发展，显然也有利于我们的软件部门。至于影响的第二点，实时竞价会更快地清理拍卖。消耗更少。因此，在处理实时拍卖与瀑布拍卖相比，基础设施负荷更少。并且广告交付更快。通过更快地投放广告，出版商受益，因为他们可以在需要的时候向消费者展示更多广告，而不是等待广告实际清理。它清理得更快，展示得更多。

By doing that, it creates a world where the publisher starts yielding more in an efficient manner, which can then drive up their ad revenue per user. And then the whole formula that we operate on is the publisher makes more, they reinvest more in the user acquisition, their business grows, and we enable that growth and our business grows with it. So we're only seeing positive from this transition. Great. Thank you. And then the second question was just on the competitive environment. Obviously, you know, one of your competitors is going through a major restructuring. I guess, are you seeing any shift positive or negative in the competitive landscape, you know, year to date?

通过这样做，可以创造一个让发布者在高效的方式下开始获得更多收益的世界，这样可以推动他们的广告收入增加。然后我们所运作的整个公式是发布者赚得更多，他们会在用户获取方面再投入更多，他们的业务会增长，我们促使这种增长，同时我们的业务也随之增长。所以我们只看到这种转变带来的积极影响。很好。谢谢。然后第二个问题就是关于竞争环境。显然，您知道，您的一个竞争对手正在进行重大重组。我想知道，您在今年以来是否看到了竞争格局中的任何正面或负面变化？

Look, since we want public, we've been a very strong independent leader in the sector. I don't think anything has changed there. We've been focused on executing ourselves. And as our technology's gotten more efficient, obviously, we're driving more value to advertisers. But we've said this for, I think, multiple quarters now. None of us operate in a zero sum game. So when we're able to drive more value to these advertisers who are buying on a performance basis, they don't go.

自从我们上市以来，我们一直是该领域中非常强大的独立领导者。我认为在这方面没有什么变化。我们一直专注于执行我们自己的计划。随着我们的技术变得更加高效，显然，我们为广告商带来了更多价值。但我认为我们已经说了这个观点多个季度了。我们没有一个人在零和博弈中运作。因此，当我们能够为那些按绩效购买广告的广告商带来更多价值时，他们就不会离开。

We have a fixed budget and we're going to pull from here. They go, okay, we have a budget over here. We have a budget over here. But Apple Oven is now five times better than they were. So let's expand the budget with them too. And they're able to reinvest more dollars into the user acquisition, which helps their businesses grow. And that's what makes the space quite appealing is that none of it zero sum, whether on the publisher or the advertiser side.

我们有一个固定的预算，我们打算从这里取款。他们说，好的，我们有这边的预算。我们这边也有预算。但是苹果烤箱现在比他们强五倍。所以让我们也跟他们扩大预算。他们能够再投入更多资金用于用户获得，这有助于他们的业务增长。这正是使这个领域相当吸引人的地方，因为它既不是零和游戏，也不是发行商或广告者一方。

And so we've been able to focus heads down on our own execution. Our team is built really cutting edge technology that works better than any other, I think, any of the advertisers or our peers have seen in the sector. But that benefits everyone in the sector. And so we're excited that that that is just a reality of the industry. Great. Thank you. David Karnofsky, which AP Morgan has the next question. Thanks for taking the question. Adam, maybe relative to your prior shareholder letters, you seem to be describing a mobile market, which is broadly inflecting for the better. So I want to see you could walk through some of the drivers of that what you're seeing. And then for Matt, wanted to confirm you said 70% free cashflow conversion expected from here. I think the prior range was 50 to 60. So, you know, maybe what's driving the better flow through and it just housekeeping on the Q one guide. Any color in terms of expected apps growth there, even on a directional basis. Should you gain sequentially or would we see sort of a seasonal decrease? Thanks.

因此，我们已经能够专注于我们自己的执行。我们的团队构建了一种真正尖端的技术，比任何其他广告商或同行在这个领域都更好，我认为。但这将使这个行业的每个人受益。因此，我们对行业中这种情况感到兴奋。太好了。谢谢你。David Karnofsky，AP摩根有下一个问题。谢谢您回答问题。Adam，与您之前的股东信相比，您似乎描述了一个移动市场，它在总体上变得更好。所以我想了解一下您看到的一些驱动因素。然后对于马特，我想确认一下您所说的自此处预期的70%的自由现金流转化率。我想之前的范围是50至60。所以，也许是什么促使更好的现金流和关于Q1指南的细节情况。在预期的应用增长方面是否有任何说明，即使在方向上。您是否会逐步增加，还是我们会看到某种季节性下降？谢谢。

All of Matt covered two and three on the first on the mobile market. We put out a blog. I think it was around Thanksgiving. So that it was a good one highlighting just CPM growth in the industry compared comparing 23 to 22 holiday period. And what we saw in Q four was that just coming off of week comps in 22 when every part of the economy was fearful and this sector was particularly fearful. We saw brands and performance advertisers more willing to invest in marketing dollars. Now, what we don't know about that is are the AI driven advancements in the marketing technologies that you've seen implied by our numbers and our performance and technology. What Facebook has done and what Google have done over the last year driven that acceleration or is it just a economy recovering and we think it's a it's a function of both. And we actually think because we're not brand advertising at all ours is entirely due to the technology efficiency. You're seeing this market start recovering. It's coming off a week comps.

马特在移动市场上涵盖了第一个和第二个方面。我们发布了一篇博客，我想大概在感恩节左右。这篇博客重点突出了行业中的CPM增长，比较了23年和22年的节假日时期。在第四季度，我们看到的是，相比于22年的薄弱环境，当时整个经济都充满恐惧，而这个行业尤为恐惧，品牌和业绩广告商更愿意投资于营销资金。现在我们不清楚的是，我们所看到的营销技术中AI驱动的进步，是由我们的数据和绩效暗示的，还是由Facebook和Google在过去一年推动的加速作用，或许这只是经济的复苏，我们认为这两者都起到了作用。实际上，由于我们完全没有进行品牌广告，我们的成功完全是由技术效率决定的。你可以看到这个市场开始复苏了，这是因为它正从低基数中走出来。

So getting back to growth is easier than it was in the past. But the marketing technologies evolving from here and continuing to approve is going to be a really good catalyst for return to growth for this mobile market. In terms of free cash flow. So we did guide to 70% going forward on a long term basis on a quarterly basis. We will have fluctuations depending upon just working capital and then also the timing of tax payments. We are sitting seeing better free cash flow conversion from eB software, but we are happy to be able to guide into Q1 with slight growth considering the fact that it is a seasonally low period for the advertising market. Anything else David. All right. Well, Adam and Matt, we will take our last question from Chris Kentarich with UBS. Great. Thanks for taking the question. I think we're a bit further on into the CTV testing at this point. Can you just give us some feedback from advertisers on how that adoption is going. Look, the CTV testing and the world is early stage. And we've got a really large software platform business now with net revenue near $2 billion. So for it to become very substantial for these advertisers are the ways out. They're all intrigued by it because traditionally, and I don't know if you do channel checks, you won't find another place where these advertisers can buy on a performance basis, the way we can enable it on connected TV today.

回到增长轨道比过去更容易。但从这里开始演变并继续改进的营销技术将成为移动市场增长的重要催化剂。就自由现金流而言，我们长期指导为70%，季度基础上我们会根据工作资本和税款支付时间的不同而有波动。我们看到来自eB软件的现金流转化情况更好，但考虑到广告市场在季节上是一个低迷阶段，我们很高兴能够指导Q1略有增长。还有其他问题吗，大卫？好的。那么，亚当和马特，我们接受最后一个问题来自瑞银的克里斯·肯塔里奇。谢谢您提问。我想我们在 CTV 测试中已经进行到了更深入的阶段。您能否告诉我们广告主对这种采用情况的反馈如何？看，CTV测试和这个领域还处于早期阶段。我们现在拥有一个规模巨大的软件平台业务，净收入接近20亿美元。因此，要让它对这些广告主变得非常重要还需要一段时间。他们都对此感到好奇，因为传统上，如果您调查一下，您会发现没有其他地方让这些广告主可以按性能购买，就像我们今天在连接电视上所能实现的那样。

So let's say it's first inning. Everyone's excited by the prospect of being able to go recruit a consumer on a new device that they just had never had the access to before in the way that we can enable it. But it's early and in our business as big as we are and as fast growing as that business is for any new initiative to make a material impact where we're talking multiple years. Understood. And maybe just going back to the non gaming business. I think it's been positioned in the past that there was a bit of a lag between the adoption of axon to from gaming and non gaming and just the scaling of budgets here within the non gaming business once those advertisers adopt the axon to. Can you just talk about kind of if that slowness to scale budgets within that non gaming business if you guys are starting to see that normalize and start to kind of revert to what you're saying in your gaming business. Thanks.

所以我们假设现在是第一局。大家对能够在新设备上招募消费者的前景感到兴奋，他们以前从未在我们能够实现的方式上有过这样的机会。但现在还很早，就像我们这么大、这么快速增长的业务一样，任何新的倡议要产生实质性影响需要多年的时间。明白了。也许可以回到非游戏业务这个话题上。我认为在过去曾有过这样的说法，即在从游戏到非游戏领域的采纳和那些广告商采用axton之间存在一定的滞后，以及在这些广告商采用axton后非游戏业务的预算规模扩大的情况。您是否可以谈谈在非游戏业务中扩大预算的速度是否在逐渐恢复正常，是否开始回到您在游戏业务中所说的情况？谢谢。

Yeah, it's a good question. Non gaming will probably never get to as quick as mobile gaming the mobile gaming marketer sees an opportunity and jumps on it. It's just that it tends to be a more commoditized space and it's a tougher space for content providers to plan. Whereas non gaming enterprises tend to have a brand and they have fixed budgets and they normally plan their budgets and every quarters and years out. And so because of that it won't ever be a quick to move market. That said we talked about it growing faster than the gaming segment. We do know the technology application works across any category that we've seen so far. So as we get a FinTech advertiser live or rentals company or an e-commerce company we're seeing success across the board. So it's an area we're investing in. We're increasing our head count there. Now we always operate efficiently and lean. So that doesn't mean it'll a lot of costs but we are investing in bringing in the right people to really expand these non gaming verticals because we see a ton of opportunity there.

是的，这是一个很好的问题。非游戏可能永远无法像移动游戏那样迅速，但移动游戏营销人员看到了机会就会抓住。只是这个领域往往更加商品化，对于内容提供者来说更具挑战性。而非游戏企业往往拥有品牌、固定预算，通常会在每个季度和每年进行预算规划。因此，它不会成为一个快速转移的市场。尽管如此，我们谈到它的增长速度要比游戏领域快。我们确实知道技术应用在迄今所见的任何类别中都起作用。因此，当我们推出金融科技广告商、租赁公司或电子商务公司时，我们在各方面都看到了成功。因此，这是我们正在投资的领域。我们正在增加我们在这方面的人员编制。我们一贯高效运营，保持精益，这并不意味着会增加很多成本，但我们确实在投资于引入合适的人员来扩大这些非游戏垂直领域，因为我们看到了大量的机会。

Okay and maybe just one housekeeping if I can squeeze in and I think you had called out the software segment out performance in 4Q you listed off a handful of factors I think it started with a strong market and wrapped up with growth and advertiser budgets. Should we be directionally or kind of if we were to stack stack rank these various impacts is that kind of from most impactful to least impact for anything to read into there. Thanks. Yeah they're not rank ordered my list of factors. Yeah it's just a combination. And I'd say just given the growth rate we're on and you've seen for multiple quarters now. The bigger part of our growth is driving more efficient value to advertisers unlocking more budget and expanding the advertiser total than it is the market the market isn't growing anywhere near as fast as what we are. Thanks. Thanks. Well this does conclude our question and answer session for the quarter. We thank you all for joining us today. Have a good afternoon. We'll see you next time. Thanks.

好的，也许我可以插入一个小节拍，我想你在第四季度提到了软件部门的表现，列举了一些因素，我记得是从一个强劲的市场开始，最终提到了增长和广告预算。如果我们要对这些不同因素进行排名，那么从最具影响力到最不具影响力的方式应该是怎样的？有什么可以从中得出的结论吗？谢谢。是的，它们并没有按顺序排列在我的因素清单中。是一个组合因素。我想说，考虑到我们目前的增长率以及你已经连续多个季度看到的状况，我们的增长更多地是为广告主带来更高效的价值，释放更多的预算并扩大广告主总量，而不是市场，市场的增长速度远远不及我们。谢谢。谢谢。这就结束了本季度的问答环节。感谢各位今天的参与。祝你们下午愉快。我们下次见。谢谢。