• Q2 revenue fell 12% YoY, missing our estimate by 10% due to lower-than-expected ad spending. Despite lower revenue, EPS improved YoY, driven by higher gross margins and lower G&A expenses. 
  • In Q2, major digital ad platforms experienced slower YoY spending growth relative to the previous quarter. For instance, YouTube (NASDAQ: GOOGL) and  Meta (NASDAQ: META) saw their ad revenue growth decelerate to 13% and 22% YoY, respectively, down from 20% and 27% in Q1.