Jean Luo

And that's one of the things that was so appealing to us about investing in the hardware space and on building our own developer ecosystem, because we realized over time that if it's just a new software feature, it's super easy to copy.

And it's never been more true today with AI.

I mean, now you can copy almost any piece of software in a couple of minutes.

So I think it's really illustrating for folks that if you want to differentiate long term and build a business with a real moat, it has to be an ecosystem like our augmented reality ecosystem or our content ecosystem or have network effects like our messaging business.

So very early on, because we were so and are so relentlessly copied by competitors, we've thought about how to build those more defensible moats over time.

Well, I think if you look at like

investors today and what they're really asking of Snap, they are looking at us through the lens of a social media company, like a meta or something like that, without really understanding the attributes that make Snapchat unique.

I think one of the things people do understand and appreciate is that we have a huge, highly engaged

audience of nearly a billion folks using our service.

But I think the area where we're falling short today is on converting that huge audience and engagement into higher rates of advertising revenue growth.

And I think when you dig under the hood, really what we've been doing over the past couple of years is transitioning from a business that was highly dependent on large customers in North America

primarily focused on brand advertising to lower funnel performance advertising with small and medium customers, which is a much more diversified advertising business.

But that transition has been challenging.

Yeah, it's been it's been challenging.

It's super challenging and hard to do.

And, you know, really only Meta and Google have developed a very large performance oriented business as tick tock to some degree.

Yeah.

I think they're still overly focused on advertising revenue.

I think our advertising revenue will re-accelerate over time.

As I mentioned, we have this very fast-growing small-medium customer business.