Don't think they've capped out on ad revenue. Seems to be growing well, especially in the US and they've only scratched the surface on the total opp. The new pet product will add to that.
For me, the move to focus on consumer revenue makes sense as they have 4.2M monthly actives and there's potential to create more valuable products that they can sell directly into their customer base rather than just being a channel for others to sell their stuff.
There are many examples of this growth path - build something -> grow an audience -> monetise through ads -> create products to sell directly to that audience.
Of course selling ads alone is a highly profitable business, at scale, but in the meantime there's also been this latent opportunity that I'm glad to see them starting to focus more on.
TNY Price at posting:
$1.47 Sentiment: Buy Disclosure: Held
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