Omar Dessouky: Understood.
David Baszucki: We’re not trying to — Yeah. Just I want to clarify, we are not trying to drive subscriptions with UGC Limited.
Omar Dessouky: Got it. And how much do you think UGC Limiteds could influence the trajectory of monetization in your core markets in the next few quarters?
David Baszucki: Hard to say. We are doing experiments once again through every cohorts, trying to optimize mirroring of real life. All of the projections we talk about as far as bookings versus expense in Q1 really head count acceleration or not acceleration, but really bookings beating head count expense. I don’t believe we have huge gains from this built in. I believe we have a lot of upside there.
Omar Dessouky: Thanks a lot, David. I appreciate it.
David Baszucki: Yeah. Thanks.
Operator: And your next question comes from the line of David Karnovsky from JPMorgan. Your line is open.
David Karnovsky: Hi. Thanks. Dave, I was wondering if you could discuss for — and I know it’s early for games that have added advertising units, how that’s impacted the overall experience. Is it purely additive in terms of monetization? How does it impact engagement? And then your shareholder letter noted giving measurement and attribution tools to brands, I wanted to see if you could unpack that a bit. How much targeting you think you can provide for marketing purposes?
David Baszucki: Yeah. Two things to unpack. One is, developers have a lot of analytics right now on our platform and they’re opting in to these ad units once again to the tune of 19% of the top 100. We’re optimistic that these types of ad units are native, immersive non-blocking and additive. We’re not talking things that prevent you from playing or pre-roll or things that get in your way. We’re talking about ad units that somewhat simulate the real world. We’re walking around. We can see a portal to go to one of our brand experiences. And then people have a back button and they can come right back. So we’re really optimistic about this. I would say, can you just highlight once again the second part of your question.
David Karnovsky: Yes. It was just about in the shareholder letter, you talked about giving measurement and attribution tools to brands. Just wanted to see if you could discuss that, what level of targeting you willing to go.
David Baszucki: We’re building a full ad marketplace for this new type of ad unit. Brands will have within the constraints, of course, of safety and stability on our platform and PII rules and Copa rules and all of those types of things as well as our own vision. The ability to, I think, thoughtfully do some targeting. We’re not going to be doing this for user teams on the platform. This is all for 13 and up. And we are already seeing signs in certain areas, for example, 17 through 24 female of strong demand potentially being greater than supply for these ad units.
David Karnovsky: Thank you.
Operator: And your next question comes from the line of Matthew Thornton from Truist Securities. Your line is open.
Matthew Thornton: Hey. Good morning, David and Mike. Two, if I could, one on AI, and one on ads. On AI, I don’t know if this is for Mike or not. I think you guys have got thousands of trust and safety head count on the platform at current. I think that’s an area where you could certainly point AI to drive efficiencies. I’m curious, if you have any color or thoughts on timing of attacking that and what that impact might look like from a margin lift perspective? And then just second, on ads. As we think about the back half here, it sounds like we’re going to get a lot more color here at the Investor Day in November, which is great. But as we think about the back half of the year and into next year, how should we think about, number one, just the biggest friction point that you see that you still need to unlock to kind of grease the wheel for acceleration there or said differently, maybe milestones we should look for in that ad business?
And then a follow-up to your prior commentary on ads. I’d be interested to hear what developers are opting for in terms of ads, portal versus billboard, if you have any kind of split there would be great. Thanks, guys.
David Baszucki: Okay. Yeah. So two things. One is, we’ll give you a little hint here that we’ve indicated our year-on-year bookings growth is going to be faster than our infra cost in Q3 of this year. Infra includes all of our infrastructure hardware. It also includes cost for trust and safety. And we’ll also say that all of our asset review pipelines are moving more and more to higher quality and lower cost with AI acceleration, all five of those pipelines, I mentioned. On the advertising thing, the thing to watch for us will be — and we’re not going to give a date when we fully float the advertising market, and so you can see true pricing out there, we’re excited about it because we’re seeing supply/demand really being interesting in some cohorts.
As far as portals of the 19% of the units that we’ve placed, I believe most of them, I think, 12% or 13%. I’m looking it’s about – that’s 12%. Great. So 12 of the top 100, I’m grabbing the data, Yes, cool. So 12 of the top 100 are placing portal ads. Do I have the right data there? Thanks. And then I’ll kick it over to Mike.
Michael Guthrie: Yeah. Thanks. Matt, on friction, again, maybe just I’ll keep it high level for a second. Ultimately, in my mind, it’s the total volume of brands that get engaged on the platform. So brands today, agencies, working with agencies and working with us, how many of those brands are building and engaging on the platform. We know that there’s over 200 brands that have engaged with us at this point, that’s double over last year. And that rate of growth and that rate of adoption is really what makes the platform a rich and open opportunity for advertisers. So that’s the number I track almost more than anything. I don’t think it’s technology. I think it’s the volume of brands and agencies that are working with us and getting their content onto the platform. So that’s really what I look at.
David Baszucki: Yeah. And then one final thing. To unlock when I say — when we say float pricing, the complementary unlock there is everything we’re doing is completely self-serve. We’re not building a handholding platform. We are building a platform where any brand on their own can come and start using our platform for portal and image ad.
