Q1 2021 Perion Network Ltd Earnings Call
Good morning, and welcome to the Purion network of first quarter of 2021 earnings conference call. At this time of we are assembling today's audience and plan to begin shortly.
We appreciate your patience and please remain on the line.
[music].
Okay.
Welcome to the Perry on network first quarter of 2021 earnings Conference call. Today's conference is being recorded the press release detailing the financial results is available on the company's website at Perry on the adult com before we begin I'd like to.
I read the following safe Harbor statement.
Today's discussion includes forward looking statements. These statements reflect the company's current views with respect to future events. These forward looking statements involve known and unknown risks uncertainties and other factors, including those discussed under the heading risk factors.
Elsewhere in the company's annual report on form 20-F that may cause actual results performance or achievements to be materially different and any future results performance or achievements anticipated or implied by these forward looking statements. The company does not undertake to update.
Any forward looking statements to reflect future events or circumstances as in prior quarters. These results reported today will be analyzed both on the E. G E P and in non G. E P basis, while mentioning EBITDA, we will be referring to adjusted EBITDA. We have provided a detailed of.
Reconciliation of non G E P measures to their comparable G. A a P measures in our earnings release, which is available on our website and has also been filed on form 6K.
Hosting today's call I'll do on the gift Stella Barry on the Chief Executive Officer, and mouse the seed corn, Barry answer Chief Financial Officer, I would now like to turn the call over to Mr. Joey on the guests. The please go ahead Sir.
Thank you and good morning, everyone. There is no doubt that our first quarter represents a very very strong start to the year continuing the momentum we enjoyed in 2020 and setting the stage for another successful year in 2021 and beyond.
In the first quarter, we delivered revenue of $89.8 million per <unk>.
36% increase from the first quarter of 2020.
Display and social advertising revenue was the main growth driver with 61% increase to $38 $1 million.
Search and other revenue increased 22% to $51 $7 million.
We remain highly profitable is GAAP net income increased by 148% and adjusted EBITDA by 41%.
Form of capital position, we have fully repaid all of our outstanding debt for the first time since 2014 Purion is the debt free we moved the company from having negative $42 million net cash in 2017 to positive 128 million.
<unk>.
By the end of the first quarter.
I'm proud of this accomplishment, which first and foremost reflect their own management fiscal discipline Israelis all of our ability to deploy our capital to grow shareholder value without coming up against leverage constraints.
The point, we completed the successful and oversubscribed follow on offering in January grossing $66 million.
Strong balance sheet and debt free situation allow us to further invest in technology to continue and improve our competitive position in the marketplace.
We accomplish this growth increase our profitability and so significant improvement in our balance sheet. Thanks to our belief that the execution is essential part of our strategic plan, which many of you heard us speak at length at our recent Investor day.
Our strong performance during the first quarter of 2021 was due to our ability to capitalize several macro factors first.
<unk> of consumer we're stuck at home and increasingly surfing the web during the pandemic, which dramatically benefited the AD supported Internet second many advertisers pulled back their budget during the uncertainty of the early weeks and months of the pandemic last year day release those.
Budget late in 2020, and this momentum has continued into 2021.
Third.
While the travel advertisers slash their budget overall during last year. The rise of E. Commerce meant that more marketers had reason to shift advertising dollars online where they could influence of purchased close to action.
This offset declines in travel and entertainment finally.
A lot of you are wondering about the extent to which some of the new consumer behavior will stick and which will revert to the way. It was let me tell you we continue to see a meaningful shift in consumer behavior as the pandemic has accelerated the digitalization of nearly all.
Aspect of our lives.
Consumer spending an increasing amount of time online and more and more of these time is dedicated to shopping consumer of ordering meals online for pickup or delivery. They are cutting the cord and turning to digital sources as well as the rapidly growing new platform like CTV.
Four of sports and entertainment and news consumption.
Is that crunches said.
We saw and I quote we so five years worth of E. Commerce growth in just a few months is the results online advertiser use of measurable performance base cost per action buying models made it easier to justify increase the investment.
Two third of online advertising revenue came from performance pricing models, while 32% yield CPM model.
This performance based model impacted our search business performance Advertiser Love search advertising. It is high intent category, where they can easily see the return of their investment the long term renewal with micros of being help us even farther given publisher confidence.
In our search offering and helped drive our 22% growth in this segment.
While the pandemic is declining and likely starting to resemble what we remember is normal it is clear that consumer behavior will be forever changed Digitization is here to stay and the brands that do not respond well faced an extinction level event what that mean.
<unk> is our clients' brand, an advertiser or intensively monitoring consumer behavior.
The adjusting their spend on platforms that are winning the war for attention.
Paragon is positioned perfectly for these data driven advertiser insights wherever and however, advertisers seek to invest to attract consumer purion heads of solution, our diversification strategy led to pivot our marketing and sales effort.
Two where digital advertising dollars are shifting.
As I mentioned Paragon has a unique capability to generate revenue from both the demand and supply side of the open internet.
On one hand, we're a demand side platform that serve agencies and brands with innovated innovative suite of cross channel and the high impact creative units, including running and managing interactive digital CTV AD campaigns that we deliver to smart Tvs and.
We are also of publisher side platform, the bring first and first and third parties of content monetization system for owned and operated assets as well as site such as Newsweek and Intrapreneur and other prominent website. We also develop of solution and innovative.
That connect probably share with the leading search engine like being delivering high quality leads.
We sit.
We sit at the hub at the center of where the supply and demand side meat, we enjoy a holistic view and benefit form the virtuous feedback loop that provides the unique and accurate insight, making our of data inherently more valuable we generate.
First party data that will be invaluable as cookies become part of the digital history.
Paragon Dot AI, our SaaS actionable performance monitoring platform integrates the massive amount of data from cross social channels, we processed that using proprietary technology and the algorithms to drive enhanced our ROI for our customers across their advertising program.
Data advantage that becomes more valuable and sustainable as we grow per.
Paragon released earlier this year exceeded our internal expectations. We ended the first quarter with seven new clients and we believe this number will increase significantly in the quarters ahead the.
This will lead together to put the Paragon in the unique play with the large technology moat, we've seen the digital advertising ecosystem.
With that I'd like to turn the call over to malls to review the financial results for the first quarter mode.
Thank you Dawn Q1 reflects continued strength of the business momentum from the second half of 'twenty 'twenty and we expect this trend to continue throughout 2021 and in the following years.
Our performance during the quarter was echoed by 26% pro forma revenue growth and improved adjusted EBITDA margin.
Turning to the quarter of results.
During the first quarter of 2021 revenue for Purion totaled 89, 8 million, an increase of 36% from $66 1 million in the first quarter of last year.
This revenue is composed of $38 2 million from display and social advertising.
Representing 42% of 2021 first quarter of revenue with sales advertising and other revenues contributing $51 7 million and the representing 58%.
On the pro forma basis, assuming the owned content IQ on top of Ocean in both periods revenue for Purion increased 32%.
Our display and social advertising revenue increased 61 per cent and 32% on a pro forma basis. This increase was primarily due to day of CTV solution, serving as the key driver for expanding our customer base and a contributor the 11% increase in average.
The size.
B the successful launch of Purion actionable performance monitoring of SaaS system for social advertisement that was all of the children by seven new customers.
See the contribution and synergies from content, IQ and Bob Ocean, which by the acquired in 2020.
Sales to advertising and other revenue increased by 22% as a result of the IL number of daily monetize the bill sales growth, we delivered to Microsoft Bing and the audience. Our daily number of searches was $17 7 million compared to $12 2 million last year. In addition.
We added 13, new publishers to our network during the quarter.
Customer acquisition cost in the first quarter of 2021, well of 54.9 million all of 61 per cent of revenue compared to $36 1 million or 55% of revenue in the first quarter of 2020.
The increase is the percentage of revenue is primarily due to the acquisition of content takes you into the ocean, which Jerry in the higher traffic acquisition cost and product mix, our media margin to remain stable at around 39%.
In fact, this margin as the main stable around 40% for each of the last four quarters.
While total revenue increased significantly during the first quarter of 2021 compared to the first quarter of 2020, GAAP SG&A totaled $14 7 million of 16% of revenue compared to 13, 6%.
21% of revenue during the first quarter of 2020.
This improvement is the result of an ongoing management of efficiency efforts, demonstrating the scalability and leverage potential of parent business model.
GAAP net income for the first quarter of 2021 was $3 3 million or nine cents per diluted share compared to 10 to $1 3 million of five cents per diluted share in the first quarter of 2020.
Non-GAAP net income in the first quarter of 2021 was <unk> 7 million or 19 cents per diluted share compared to 5 million or 17 cents per diluted share in the first quarter of 2020 and.
Adjusted EBITDA increased to $8 8 million or 10% of revenue for the first quarter of 2020, one from $6 2 million or 9% of revenue in the first quarter of 2020.
Cash from operating activities for the first quarter was $13 5 million compared to $2 5 million last year.
Yeah.
As of March 31st went into 'twenty, one we had analysts take that cash cash equivalents and short term bank of deposits of 128 million compared to $60 3 million as of December 31st of any 'twenty.
And so obviously disclosed in January we completed a follow on public offering which was always the guide seven times generating net proceeds of 61 million, we paid of $6 2 million of all of that early and ended the quarter with zero debt on the balance sheet.
This concludes my financial overview I will now turn the call back to the on four of closing statement. Thank you more as the closing note I'd like to take a moment here to thank my management team and every pair of an associate the around the word for the talent passion and resilience.
We will not be in a strong position we are without their efforts.
We're delivering on phase III of our business evolution, which is based on financial excellence strategically growing each business segment and through debt increasing our profitability.
We now have the fortress balance sheet with $128 million in cash and no debt.
Despite the global pandemic and to some degree because of the Permian continues to excel.
Based on the strong first quarter and our continued momentum we are increasing our 2021 annual guidance, we now expect revenue between $392 million to $410 million and.
The EBITDA between 39, two for the $1 million.
To provide the cushion of confidence I want to note that our 2021 guidance does not anticipate the material rebound from travel oriented advertisers nor does it assume any additional acquisitions, both would represent upside to our guidance.
And the fact that we are not including any projections of this incremental opportunity demonstrates the confidence we have indeed expected performance.
Looking further out we remain laser focused on achieving substantial sustainable and highly profitable double digit annual revenue growth.
With that we are reaffirming our strategy to deliver substantial value to our stakeholders and achieving our $500 million annual revenue goal.
Sooner than the than originally anticipated.
It is important for our investor and our team.
To declare a long term mission and Oregon is behind it.
It is the measure of my confidence in our plan our technology, our market understanding and most of it that the team beside me.
With that said operator will you. Please open the call for questions operator.
Ladies and gentlemen, if you would like the ask a question.
Please signal by pressing star one on your telephone keypad. If you are using a speaker phone. Please make sure. Your mute function is turned off to allow use signals from each of our equipment again press star one to ask the question.
We will now take our first question from Laura Martin of Needham. Please go ahead.
Can you hear more cash.
Yes, we can hear you hi, Laura.
All right.
So congratulations and I love. The fact, you can pay down the debt and you're raising guidance.
The question is I mean of course.
The guidance.
So the 20% gross and net.
One of the rooms.
And I'm just wondering.
Wow, what a net.
Gone higher.
And feels like.
It is much more robust and assets.
Specifically why you Wouldnt include travel, which is such a big driver.
The other search engines why wouldn't you.
Include travel and higher.
Do you expect higher growth.
Guidance too.
Yes.
Thanks for the question, so first and foremost.
Keep in mind that we are still I think early in the year, even though we are of great visibility on the second quarter and to some extent definitely to other corridors, we need to be we need to be cautious.
I think that the most important thing is that we're continuing at the same pace as we finish 2020 in 2022 of 26% and now meet the point is 22%.
We are definitely allowing ourself.
To take is we are taking every year of conservative approach, even though we are very happy of the guidance the improved guidance that we provide.
As far as to your second question the.
The the word that I was using of referring to travel oriented advertiser was material rebound.
Even though we've seen some changes its net to the extend the.
The 15% of our revenue is coming from this vertical which is travel oriented advertisers.
We are we are in the low were between let's say, 3% to 5% of disappoint.
<unk>.
What we took is again.
The conservative.
Very conservative assumption that it will be difficult for this segment to recover because we all almost approach the summer and it is it has to do with setup time and this is what we are hearing from our advertiser and that the airplanes.
<unk> is moderate for this year.
So in the context of providing the.
A careful guidance we were taking this this assumption.
Okay. That's super helpful. And then maybe stepping back on an industry comment since you are an expert.
I'm very interested in sort of as you think about the industry when cookies could you.
Talk about how disruptive you think that's kind of the from.
From a headline risk.
The substance of quiet.
The next.
Next year Okay.
So first and foremost I think that we need to look about the those companies that their business model is very much performance, but it's based on re targeting.
They are very very much depend.
On cookies are allowing them to track potential consumer.
Along the journey.
And I think that their model is going to face are definitely some.
Some challenges.
We are very much on our performance is quite different we are not the we're not depending on cookies, because we're very much.
<unk>.
All of our performance advertising on the call the search advertising that has to do with with our partners.
Being in the and also Yahoo.
So to that extend the.
These changes as net impacting the performance part of our business.
As far as the other part of which it has to do with the display advertising we need to distinguish between the.
The advertising, which is based on a publisher, which is on the network or a publisher that is part of our network. Felicia. This is our network probably share that we owned and operated or publisher that we are monetizing.
Their content is completely in a different category and for US we definitely recognize that the first party data I think that just to end. It I think that one of the main advantage is that we are a company that we prepared ourselves because we knew that this is the.
This will come sooner or later is the fact that we are able to generate the revenue.
Both from the left side, the demand and the right side the supply of the open Internet.
It will become an advantage.
The win win more and more of the cookies become strength.
For for other players in digital advertising.
Because we are able to definitely use this as an advantage from the data.
The two target our audience and the ability to drive to a higher frequency and reach in order to provide the highest return for our advertisers.
Thank you very much.
Youre welcome.
Thank you ladies and gentlemen, if you find that your question has been answered you may remove yourself from the queue by pressing star two.
And once again to get in the queue to ask the question. It is star one we will now take our next question from John Egbert of Stifel. Please go ahead.
Great. Thanks for taking my question.
The daily search volume growth.
Hi.
The daily search volume growth and the recovery in revenue was pretty impressive.
Can you talk about the <unk>.
On ramps are fueling this growth in recent quarters, how impactful have content monetization synergies and driving core volume and as people go back in the office and mass in the months ahead, even if theyre going and fewer days in the pre COVID-19 do you of any views on where the daily search volumes could settle out at it seems like a risk that some of the.
The PC queries can shift back to mobile in that environment and I have of one follow up if I could after that.
Yes, sure. So first and foremost we are very pleased with the growth and currently we're reporting an average daily average searches of 17 17 million.
Each of the day.
One of the most important thing that we are very much track and trying to bucket.
Bucket <unk> the number of searches is has to do with three categories.
The one of the category the the most important for US is transactional category. Those those category of search is categories that represent a high intent for shopping.
Opposed to informational.
Searches or informative searches or directional searches we are focusing for a reason.
The on transactional transactional type of searches so what we've seen.
It's not just that the number the absolute number of searches is growing to 70 million therefore portion of transactional search.
In the 100% of searches is growing and thats. The interesting part because as you know thats, what very much impact the revenue more than anything else.
And now if this would stay when people will go back to the office. If this will stay.
Afterwards.
I feel that the quote that I provided from tech Crunch is definitely there.
People because of the pandemic is start to understand that the able to shop smart and shop online and that's definitely accelerate the adoption.
We not see it growing.
Even though we are very much U S focus and we see that the.
The the recoveries there.
And in most areas.
The life is back to normal I will call. It the new normal because we've seen that everyday that goes by everyday that goes by the number of transactional searches is just growing.
Just growing and we tend to believe that this will definitely will continue now to the next part of your question. What we did we very much try and sink form of use case perspective, the content monetization in the search and one of the most interesting use case.
Is that we bring game was has to do with display.
Slate to search and the seems we are of very much.
And defining the content.
For those that are reading the content either on our own and operated sites or sites that we operate like Newsweek and Intrapreneur.
We are targeting our search unit.
As forecast for those readers that are exploring stage explore means that they are not ready to make them buy decision explore means that the wants to the almost there the showing a high degree of intent, but the steamed struggling between.
Verizon and the.
The other mobile provider.
And they are not sure yet, but they're almost there and for that we find the very very effective unit, which for them.
Suggesting.
Keywords.
They feel that as if they would like to search more and those keywords are translating for us.
And searches that we provide to our partners so of what we like about the fact that we're able to combine.
Two assets that we have into <unk>.
Synergy use case that generate the very very substantial income in the very good margin for us.
Great.
And then just one follow up on CTV, obviously called it out as the driver.
A bigger deal sizes or are you able to quantify the contribution to display in one Q.
Or maybe just directional sequential trends there and then any any line of sight either.
New signed deals for inventory of our new new deals coming in the next few quarters that could kind of take that up to the next level of growth.
Right right so.
I think that then ex us on the call with the president of Undertone, which is very much behind the the.
The the derived the remainder of the CTV driver than you there yes.
Yes, I'm here.
In terms of your question of asking Eric.
I can't disclose the knee surgery for example.
Our pipeline of deals, but I could answer that more qualitatively to give you a sense of why I think.
There's going to be substantial growth.
Does that satisfy you.
Yes, any color you can provide would be great. Okay, yes, so what's the.
Part of the business is growing.
Let me take it from two angles. The first thing is our positioning as the business, which is the SKU or an advertiser that wants high impact advertising, which is our specialty we now offer the largest screen in the home.
So what we do is we create now multi screen capabilities with the.
None of our well known capability for <unk>.
Structuring and designing creative advertising networks and now we could articulate a campaign using that creative across any screen either in the household on your mobile phone et cetera.
So that's the first thing that we are the source the go to and the market is understanding that we are the source of secondly, we're applying that creativity now to interactive television.
<unk> of television, let me explain the different levels of that and why it's a growth driver for undertone.
Teradyne General So first you have just standard CTV, which is just the video you distribute that is not a lot of value add but of course, it's great advertising, but on top of that we create what's called branded advertising, which has allowed us to add.
Creativity on top of the AD itself. So for example, if you saw a Spongebob movie we can create bubbles arising from the bottom of the ocean and other effects, which make the AG, particularly appealing the next level of what we call interactive advertising, which is where we actually start creating additional you can use your TV remote too.
Create.
<unk> of experiences so we might have other video sitting on the site.
You can now from several of you see of Mercedes video of the standard 32nd spot. We'll have other videos you can click on the show the cargo or the interior sections. So you can turn of 32nd spot into the 92nd spot or more.
Very powerful for an advertiser not only the getting more time, but youre actually getting signals about what a consumer may be interested in and then finally the dynamic.
CTV, which adjusts the AD based on personalization factors. So this is a tsunami of the ability to add undertones creative capabilities too.
In the past it's been straight video advertising is huge so the ability of CTV to do a better job for advertisers, but when you combine it with the undertones, well known positioning for creating using.
Using creative to articulate ads across all screens in the household is in my opinion very strong business position and will power our growth going forward.
Great. Thank you.
Youre welcome.
Yeah.
Thank you, we'll now take our next question from Jason Holstein of Oppenheimer. Please go ahead.
Thanks, I'll ask you guys too so as we're coming out of COVID-19, It's super clear that the traditional AD agencies is in a tough place.
As most of their infrastructure is set up for linear on the non digital channel.
It's clear the damage more that we're not going backwards. So can you talk about how that sets you up to the extent that you should see more demand for you our DSP and in agency related products and again kind of CTV being example of.
Of product that would benefit from more of demand coming through you and then the second question.
<unk> thoughts on M&A.
Are we likely to see.
See any transactions this year. Thank you.
Yeah, Thanks, Hi, guys. So.
I think that the.
The year or so for advertisers also the very very important and I think it's.
And the fact that they were trying more and spend more on digital advertising and they spend more of not just on digital opposed to the conventional way of advertising it allows them.
Very much to measure the return of it spend and what we've seen with our advertiser that this ability.
To correlate.
Advertising spend to performance to revenue to something which is an ex ship of actionable and meaningful way.
Definitely shifting dollars.
The towards digital.
The advertising more of the performance side for that reason.
And something which I think it's more interesting the tools allows the advertiser is.
As I mentioned on the call to track very much consumer behavior.
And the ability is to what extent advertise the Abel and I want to emphasize.
Alive.
On the spot on shifting dollars.
Where where consumer.
It's very much spend their time.
And I think that this is definitely the agility and ability to do it.
Let me ask it this way maybe the question wasn't clear so.
Agencies try to do certain things in house, they have outside services. They bring in like yours right. So I guess, what I'm asking is right in that agency seem like theyre going to be under a lot of cost pressure coming.
Coming out of COVID-19.
Most of them did not downsized in head count during the COVID-19 I Wonder if that position you to win more agency business.
The cause of that so in other words are you seeing more client wins on the advertiser side any agency side.
Relative to.
Six months ago, a year ago, So maybe talk about that.
Yeah, the only thing that we basically see and as I mentioned, we increased our average deal size and it very much has to do with something which is quite basic any tests. The deal with the performance and I think that the agency understand that in order to retain their customer the math.
Show them, a higher return on AD spend so even though they are in the huge cost pressure and day.
The very much would like to do everything you know in the house. They are under greater pressure is to showing better results and I think that this is very much drive.
More dollars into the type of companies like us that the investing on technology Theyre trying to be ahead, and then was mentioning the <unk>.
Greg that we have the ability to run one campaign and multiple screen.
By the way if we're talking about the cost pressure from the agency side, we definitely see our agency would like to minimize the number of vendors, which is gives us another advantage because the fact that we covered the three main pillar of digital advertising is very much in line of what they are looking for.
Two of less vendor the day able to adjust.
They're offering across those.
Three three channel. So what we've seen is that agency are very much force to work more of with companies that providing that the sophistication and the technology the day.
To show to their brands and in this way keep them for years to come.
Okay.
And then the M&A question and then the admin.
So on the M&A question.
We are working intensively on our M&A pipeline.
In various various areas, which I mentioned on previous call.
The <unk>.
We are doing we're doing it we're doing some progress we're not in the stage that we definitely can disclose it but it's the it's taking more and more of of our our management time.
Thank you.
Thank you.
Thank you we'll now take our next question from Eric of multi Newsy of Lake Street. Please go ahead.
Hi, congratulations as well on getting the debt paid off thank you.
The major milestone of going back to your arrival of the wrong.
That's terrific.
And the question and the seasonality of the business.
Sure.
Would say and this is Q1 versus Q2.
Normally I have those roughly flat on both the advertising and the search.
Maybe it's a question for most.
Or do you see the seasonality in Q2 versus Q1 of the two segments.
So you know as the if we ignore <unk> 'twenty 'twenty is not reflecting year with the COVID-19, we expect <unk> 2021 to move back to normal.
So the starting slowly with the Q1, and then Q2 and Q3 of similar and IRR of 11 of revenue.
In Q4.
And again, if we're moving.
Do the segment sales.
Search and advertising advertising, you're also expecting the same trend.
Q3, and Q4 should be the same in Q4 should the strong Gail on the advertising the improvement or the increase in Q4 is much higher.
In the search.
Okay, and then could you I missed it when you gave the pro forma numbers on the.
The total revenue and then the advertising revenue could you give those again.
One.
Yes.
Yes the force.
On the.
Just just a minute.
So now as at all we're talking about 26%.
Consolidated and on advertising, we're talking about 32%.
Okay.
And then the searches all organic of 22% correct.
Right right.
On the search side and this is my last question the.
There is obviously, we've got the Verizon media is going to be changing hands here coming out of Verizon and going into Apollo group.
I know the transaction is still yet to close but one of your thoughts on potential.
I would assume the part of the relationship with being is there is demand from the advertisers who are trying to gain access to the Yahoo, a O L properties as well.
One of your thoughts on potential impacts to carry on from the sale of Verizon media.
Right right of Great question. So first.
First and foremost <unk> and Verizon media is the valuable value per.
Non partner.
We wish them great success as the private company.
Can say that we expect to continue fruitful partnership.
We believe that under the new management, you should expand even with new synergistic opportunities.
And.
As far as I can tell in the.
We have not been disclosed before but we had the where the conversation yesterday.
With some key executives that are managing our account.
I think that.
Yes.
So, let's say, let's put it this way I think that now they will be under.
The greater pressure.
As being of media only company.
The two farther.
The increase.
The revenue and to find new as I said opportunities.
To work with their partners.
I'm looking at the very very optimistically.
Okay.
Thanks, and congratulations on the quarter and the outlook. Thank you. Thank you.
Thank you, we'll now take our next question from Jeff Martin of.
Roth Capital Partners. Please go ahead.
Thanks, and I echo of the compliments on the guidance and the kind.
On the balance sheet improvement that's great to see.
So I'm wondering if you can give us an update on connected TV.
You disclosed 41 clients four deals in Q4, $6 5 million of revenue do you have those metrics for the first quarter.
Yes, we have the metrics on the.
On the revenue side than the as I mentioned the.
Most of the first of all the the focus was for US since we are offering of multi screen, especially when it comes to new accounts is to very much focusing on having the CTV as part of the offering.
And as I as I mentioned on the press release on the call. We've seen it is the key driver of our ability to acquire new customer of by adding the CTV element and the big screen capability.
Into our holistic multi screen type of offering.
That was the 20 it was more important for us to use it the acquiring new deals then to have CTV dollars by itself, which is on the neighborhood of two.
Two $2 million in the quarter.
Okay. That's helpful. Thanks, and then on the.
Search business added seven publishers in the first quarter.
What does that bring your total too on the platform and one of the implications of search growth for the balance of the year.
We haven't published share no it's not it's not seven.
Kevin is on the bug on AI on the sales we're talking about ethane.
New publisher.
The 30, new publishers on the search side.
Of the business search advertising and seven new brand clients that are using power going into the AI, which is our SaaS platform.
Optimizing social spend for brands.
Platform that we released on the January this year and we are very happy with the progress that they're doing.
Okay, and then can you help us kind of get a framework for what your growth expectation is for search for this year.
And we're not.
We are providing.
Solid day the guidance.
We believe that the trend that we've seen in Q1 will continue.
Okay. Good thanks for your time.
Thank you.
Thank you we will now take our next question from Chris Mcginnis of.
Sidoti and company. Please go ahead.
Yes. Good morning, Thanks for taking my call of nice quarter, Congrats on the balance sheet.
Just maybe just thinking on the CTV just talked about the different formats and at the time it sounded the most intriguing can you talk about kind of the.
Demand youre seeing and how you're pushing me maybe to certain areas, whether that dynamic or whether it's the standard.
You're seeing thanks.
Right so.
Dan you want to take this one sure where we are.
Yes.
Yes happy to say again, we are starting to see you know as we've introduced our ICT V components, we're starting to see a growing mix of the demand overall for IC television.
It plays perfectly into what we want because thats true evaluating function I am <unk>.
Moving that over time, the branded where creative skin QR codes and the like are added to the to the video.
And also of interactive elements of <unk>.
As I discussed earlier.
In my mind and that will become a larger percentage of the mix of we're starting to see that now.
Thanks for taking my questions.
Okay.
Okay.
Thank you, ladies and gentlemen, once again, if you would like to ask a question. Please signal by pressing star one and if you are in the queue. When you find your questions have been answered you may remove yourself from the queue by pressing star two against all of one to ask a question.
We will now take our next question from John <unk> of.
<unk> brothers. Please go ahead.
The hydro Ron and the most thanks for taking my question Hi.
Once again, congratulations on the beating expectations.
I just have one question if you could talk a.
Little about your recently launched.
<unk> performance monitoring system.
Specifically, how the different from other performance monitoring systems.
And the competitive advantage that you believe that this brings to the company.
Yes, okay. Thanks for the question.
So first and foremost.
We are the the.
System is focusing on there are three layers.
At first we are very much.
Once the brand's installed the system, we are providing an assessment and the assessment that has to do with the spend across all social channel.
Based on this assessment, we are providing the second layer, which is the recommendation what is the right mix or the right spend.
That should get the highest return on spend.
And the third factor, we able to translate those the recommendation into action in other words.
Shifting dollars from this channel to the channel.
Now we are working with.
I can say fortune 500 brands that are spending.
Tens of millions of dollars on on social advertising.
But the most.
To all of its surprise the.
Point, there or not the having consolidated view not just in terms of reporting not the concern the view in terms of what is the total spend but consolidated monitoring.
As far as what we're what's not working and what.
Is the best channel.
To get the desire action.
And we were using this.
The the analogy was very much to actionable performance morning during that day.
No of the date of the enterprise software and we try very much to implemented into the digital sphere of of social.
I can tell you that the the assessment part before going into recommendation is the great selling too because without much of airports to implemented.
We are able to provide to our customer what is going to be the immediate savings.
From changing the.
The preference or changing the investment between the different social channel.
And that's the that's something that we're being used is of great sales to allow us to very much reduced our sales cycle time.
And the ability to get attention of of large large investors.
And the ability to connect between the three layer the assessment recommendation and action is something which is unique to our platform.
There is another very important fact range there is another very important factor.
That part of the assessment that we're using we are very much tracking a lot of data and we can share with our customer what is the benchmark in the vertical.
In other words when it comes to retail we can say, okay for this social spend.
The retail customer without mentioning the name you are you're below or above the benchmark for this vertical.
And that gives them also an indicator of what they can strive because they have no idea.
What is the standard and what should be their goals in terms of return on AD spend on social the test to do if they are vertical.
And how is the feedback from the clients.
So the first of all the feedback was that if we are we launched it in January and by the end of March we had seven clients.
I'm very very large clients, we are under NDA I cannot disclose the names and the fact that we're able to close what I consider the enterprise software SUS deal.
Chairs of course, the recurring element into it the highest possible degree of stickiness.
In the cycle month of two and two months cycle time, and something which is new in the market.
I'm very very happy with the results and this is continuing into the second quarter I can already shared with you on the on on our Investor Analyst Day.
The debt this concept was done to get there.
We of Havas media of global agency of the tariff.
140 offices around the world that very much standardize all of their entire social spend on this platform.
Our design the partner of work with us more than a year.
To have in my opinion the great.
The market fit.
Because this is already being used with their with their customers as well we are in the midst of rolling it out.
Two more and more of their customer.
This is the overall of our spend on social advertising.
Hundreds of hundreds of millions of dollars.
Okay, that's great.
Once again, thanks for taking my question I appreciate it.
Thank you.
Thank you, ladies and gentlemen, no further calls at this time I would like to turn the conference back over to Mr. Don itself.
The style sorry for any additional or closing remarks.
Yeah. Thank you guidance for your participation.
Thanks, again bye bye.
Yes.
Ladies and gentlemen, this concludes today's call. Thank you for your participation you may now disconnect.
Okay.
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