APP Morgan Stanley TMT 2026

All right. Good morning, everyone. Thank you for being here. My name is Matthew Cost, Morgan Stanley U.S. Internet team.

Very happy this morning to be joined by Adam Foroughi and Matt Stumpf, the CEO and CFO of App Lovin. Thank you for being here, guys. On the Morgan Stanley disclosure side, please note that all important disclosures, including personal holdings disclosures and MS disclosures appear on the MS public website at morganstanley.com/ researchdisclosures or at the registration desk. Mke Inc,Idvnsfs,.ARm Tum RIITe Ruv R/

All right. And with that out of the way, Matt, maybe let's start with you. I want to revisit the 20% to 30% growth target that you've talked a lot about over the past couple of years for gaming ads. You reiterated again at the fourth quarter.

And obviously, you've exceeded it quite a bit over that whole time period. Has your thinking on that benchmark changed at all in terms of the baseline level of growth of the gaming ads business? And is there a potential upside to that number as we look out?

Yes. I mean there's definitely potential upside. Look, when we initially mentioned to investors in the public markets around the 20% to 30% we just wanted to frame for investors that there's a lot of opportunity there for continued growth with the core technology on the mobile gaming side of the business. We broke it down for investors very simply that between directed model enhancements and recursive learning that's happening on an ongoing basis, we should be able to get at least that 20% to 30%.

At the time, I think when we initially said it a couple of years ago, we weren't even getting credit for 20%. I think people didn't think we could grow at all. So it was just a baseline and we wanted to kind of level set with investors. And look, over that period of time, over the past couple of years to your point, we've grown at a pace much greater than that.

What investors need to understand is that this technology is very nascent. So our engineers are continuing to come up with directed model enhancements to make the technology better. And as we grow and scale, what that means for the technology is that we're getting more data to feed into it, which then improves the technology over time and continues to stack and compound and as we expand out on things like e- commerce, that will continue to grow the technology's ability