Jean Luo

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.

Generally speaking, our large customer business outside of the United States is very strong.

It really just comes down to now this legacy U.S.

brand-oriented advertising.

needs to reaccelerate.

And I think if we can make some progress there, investors will be pleased with the ads product.

But the thing they're really missing is that we've also taken this huge amount of engagement and passion for Snapchat and built other revenue streams, like our direct revenue business, which is over a billion run rate business now growing 87% year over year in the

prior quarter.

And so I think people are not yet appreciating that Snapchat is increasingly diversifying its revenue in ways that I think are much stickier and durable for the long term.

And then I think people really have a question mark around specs and the future of our glasses business, mostly because they haven't seen anything yet.