Q2 2021 Perion Network Ltd Earnings Call
David at the IRI Dot com.
Yeah.
Thank you I'll place you on the hold for the.
The second quarter.
Or at this conference.
Yeah.
[music].
Welcome to the Purion network second quarter 'twenty to 'twenty, 1 earnings conference call. Today's call is being recorded the press release detailing the financial results is available on the company's website at Purion Dot com before we begin I'd like to read the following safe Harbor statement.
Today's discussion includes forward looking statements. These statements reflect the company's current views with respect to the respect of future events. These forward looking statements involve known and unknown risks uncertainties and other factors, including those discussed under the heading risk factors and elsewhere in the company's annual report on form 20-F that may cause.
<unk> 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 assume consensus as in prior quarters for the results reported today will be analyzed both on GAAP and non.
GAAP basis, while mentioning EBITDA, we will be referring to adjusted EBITDA. We have provided a detailed reconciliation of non-GAAP measures to the comparable GAAP measures in our earnings release, which is available on our website and also has been the fives to form 6K.
Hosting the call today are Doron Gerstel, <unk>, Chief Executive of Executive Officer, and Mouse Seagram Purion <unk>, Chief Financial Officer, I would now like to turn the call over to Doron Gerstel.
First of all please go ahead.
Thank you and the good morning, 2 day Purion reported its second strongest quarter. It seems like joined the company with notable improvement across all metrics to put this in perspective with today's results Paragon has generated $400 million of revenue and more than 47.
And adjusted EBITDA in the last 12 months.
In the second quarter, we drove a 419% increase in GAAP net income and 479% increase in adjusted EBITDA.
These results and the growth trajectory, they represent if giving us improved visibility and strong confidence in the future, thus, enabling us to improve 2021 financial guidance and to introduce the preliminary guidance for 2022.
Now allow me to add 1 more milestone to today's exciting news, we are positioned to achieve our of 3 years growth plan a year earlier than expected.
Particularly proud that our accelerated performance has come in the midst of continued economic uncertainty and start game stop again pandemic related circumstances in many categories.
Parents success results can be summarized in 1 unifying strength, a powerful diversified technology platform that reflect our innovation innovation and growing relevant to marketers and publishers.
Purion is now operating in the clear strategic direction, leveraging our strong financial position to increase investment in technology and to accelerated growth.
To demonstrate the effectiveness of our strategic framework 18 months ago, we announced the goal of enhancing our advertising capability dramatically, while focusing on technology and Nai.
Resulting in 127% revenue growth in the first half of 2021.
This demonstrate the market fit of our platform.
<unk> possible ROI.
By relentless innovation and strategic acquisitions.
As you know digital media is defined by supply side, the availability of different AD units utilized by publisher and the demand generate by brands and agencies. We have developed a unique hub and spoke platform that empowers our clients to efficient efficiently engage and convert.
Since the consumer via the channel the best meets the real time marketing needs.
<unk> intelligent hub sits at the center of this platform and its value goes beyond our ability to generate revenue from both sides of the open web.
Barry on the intelligent hub is an optimization engine successfully routing demand to make the most of supply demand forces and bring better economics for a dual set of clients on both sides.
Our intelligent heartbeat, working and I couldnt be more excited we're achieving significant growth and we are leveraging this by driving higher cost efficiencies to the bottom line.
Our advertising business is clearly differentiated leveraging broad based adoption of video and CTV as well as digital advertising and social media.
Our search advertising business is demonstrate demonstrating its ability to capture intern and turn it into a revenue by using AI to serve relevant news shopping and information driven content.
The searches are up more than 30% year over year.
Example, help so I'd like to share of recent case of relationship reflects us which is the 1 of many of our high growth CTV operations.
We have a long and successful history with the local dealer Association the used our high impact units and loved the results. So it was only made throughout the day. We're 1 of the first to step into our interactive CTV initiative.
The results were remarkable their campaign drove 5 times the industry norm for awareness and double the norm for purchase intent of key metric finally, the interaction rate was 9 times, the benchmark and I'll underscore the interactivity is the core benefit.
Pete.
Based on those the results the campaign is extended to other creative units and other geographies.
This case is extremely encouraging.
Texas is the sophisticated advertiser and their support demonstrates the potential of our CTV and IC <unk> business.
We have $400 million in annual revenue over the last 12 months, we are poised to reach half of $1 billion in revenues by the end of 2022 more than a year earlier than our original plan.
For now is sustainable multiyear track record of double digit growth of the 25% CAGR between 2020 in 2022.
Expanding profitability and most importantly, consistent delivery on our promises.
And this is only the beginning of 2.
To summarize the highlights the $110 million in revenue for the quarter sets the record level results for second quarter.
Year over year, this represent growth of 82% and sequentially each represent growth of 22% of.
Our advertising revenue grew 211% year over year, and our search and other revenue increased 24%.
From a capital position, we have $141 million in cash with zero debt, we generated $14.6 million in cash in the second quarter further boosting our balance sheet.
It is worth noting that we accomplished all of this with well recognized headwinds of global pandemic, which has significantly reduced advertising spend by travel brands a meaningful portion of our advertising revenue. We are now seeing travel advertising beginning to rebound, but it.
Does not reach historical levels, we have room to further improve performance, but given our prudent and realistic financial management, we are not taking anything for granted.
Those of you who have been following <unk> no debt. We are in active strategic acquirer with the 2 accretive acquisition. We did in 2020, we have demonstrated that our deal structure with significant earn out component minimized the natural risk of any acquisition and more.
Importantly keeps the acquired team active and incentivize for the long run.
We have the capital the ability to identify the right targets and the financial model to pursue the right opportunities.
With that I'd like to turn the call over to <unk> to review the financial results for the second quarter mode.
Thank you the on our financial results in the second quarter of 2021.
The strength of our hub and spoke business model, which cater for both DSP and SSP and the strong momentum starting from the fourth quarter of 2020.
We can see the fruit of our turnaround strategy in an improved balance sheet PNM and substantial growth in both sales and advertising revenues.
During the second quarter of 2021 revenue for <unk> totaled $109.7 million, an increase of 82% from $60.3 million in the second quarter last year.
This increase was primarily due to the growth achieved across the board.
Our display and social advertising revenue increased by 211% primarily due to the contribution of video and CTV advertising contract as well as the successful implementation of our hub and spoke model within the Purion walled garden.
Video, including CTV generated $9.1 million in the in the revenue, reflecting 435% growth year over year.
On a pro forma basis, assuming we owned <unk> in both periods display and social advertising increased by 134%.
Sales of advertising and other revenue increased by 24%, resulting from the higher number of daily monetize the bulk sales.
We delivered to Microsoft <unk> and others.
Our daily number of searches for $16.9 million compared with $13 million last year. In addition, we added 18, new publishers to our network during the quarter.
Display and social advertising revenue of 58 million represented 53 per cent of the second quarter of 2021 with search advertising and other revenue represented 51.6 million of 47% of total revenue.
This is exactly the kind of diversification we are looking for.
The other acquisition cost in the second quarter of 2021 were $66.2 million or 64 per cent of revenue compared with $36.8 million of 61% of revenue in the second quarter of 2020.
Our media margin remained stable at around 39%. In fact this margin has remained around 40% for each of the last 5 quarters.
The media buying margin stability as the percentage of revenue is the result of cost synergy we achieved through implementation of our hub and spoke strategy.
Operating expenses for the second quarter of 2021 relative to $2.6 million of 29, 7% of revenues compared with $23.8 million of 39, 4% of revenues in the same quarter last year.
With the 10% drop of operating expenses as the percentage of revenues. The revenue has continued to grow and the reflect the scalability of the Purion business model cost of revenue for the second quarter of 2021 were $6.2 million for 5.6% of revenue.
Compared with $4.9 million or 8.1% of revenues in the same quarter last year.
SG&A for the second quarter of 2021 was $17.5 million of 16% of revenue compared with $11.8 million of 19, 6% in the same quarter last year.
R&D for the second quarter of 2021 was $8.9 million or 8.1% compared with $7.1 million or 11, 8% in the same quarter last year the.
This increase in R&D investments.
<unk> reflect our long term planning and supports the <unk> growth strategy.
Net income for the second quarter of 2021 was $7.1 million of 19 cents per diluted share compared with a net loss of $2.2 million or a loss of 8 cents per diluted share in the second quarter of 2020.
Non-GAAP net income in the second quarter of 2021 was $12.3 million of 33 cents per diluted share compared with $1.9 million or 7 cents per diluted share in the second quarter of 2020.
Improved operating efficiency resulted in adjusted EBITDA growing to $14.3 million for the second quarter of 2021 from $2.5 million in the second quarter of 2020. This represented a margin of 30% or the 30% excluding the classic acquisition cost.
We generated $14.6 million cash flow from operating activities for the second quarter of 2021, compared with 1 of 51000 plus deal.
As of June 30, 2021 we had unrestricted cash cash equivalents and short term bank deposit of 1 other $41.2 million compared with $60.3 million as of December 31st 2020.
This concludes my financial overview.
I'll now turn the call back to the Owens for closing statement. Thank you model. There is no doubt the Paragon has come a long way in the relatively short period of time period, where we had to grapple with the once in a century pandemic.
We have eliminated all debt and now have a pristine balance sheet with more than $141 billion in cash and liquidity debt is strategic asset for our company.
We have build of powerful differentiated hub and spoke platform based on proprietary technology that provide.
The diversification solution for our advertising clients.
Our business model is highly scalable and we have proven that enabling us to grow our bottom line faster than the top line with robust sustainable cash generation.
Despite the global a global pandemic Purion continues to excel.
Based on the strong performance year to date and our continued the momentum we're narrowing the range of our 2021 annual guidance to revenue of $415 million to $430 million and adjusted EBITDA of $50 million to $51 million as well as in.
Reducing guidance for 2022.
For 2022, we expect revenue to range between $492.520 million and adjusted EBITDA to range of $59 million to $62 million.
This guidance does not include any future acquisitions.
These goals will enable us to achieve our target of $500 million in annual revenue by the end of 2022 a year earlier.
Before turning the call over to the operator for questions I'd like to thank my incredible teams in the U S. Israel and the round the world, we followed their dedication creativity and resilience none of this would have been possible.
With that said the operator will you. Please open the call for questions operator.
Thank you, Sir ladies and gentlemen, if you wish to ask the questions. This time, please signal by pressing star 1 on the telephone keypad does make shouldn't be the concern on your phone is much tougher to allow the signal for Ritchie of equipment. You find that your question has already been answered you may remove yourself from the queue by pressing star 2 again, please press star 1 to signal.
For our question.
Question comes from Jason.
Your line open Hi, Berry. Please go ahead.
Thanks for your question comparing the.
Visit the obviously operating really well probably better than expected.
Some of that is obviously due to just the.
The strength of advertising, but the wrong can you just talk more about how the assets are creating.
Revenue synergies.
Within the company, meaning because you have so many different types of businesses and how they're leveraging off each other perhaps are you seeing certain client synergies that's something that many of you talked about in the past COVID-19.
On the cross sell upsell are you starting to see that then of M&A question.
Without being specific about.
About what companies you might want to buy maybe are you more focused on the demand side or the supply side from a <unk>.
The acquisition standpoint, and then lastly of modeling question.
If we kind of back into the.
Obviously, you've given us the full year guidance.
And then we looked at the seasonality of this quarter versus historically the seasonality of the second quarter of let's say in 2019. It would still suggest that the full year guidance is quite conservative based on seasonality. So maybe just talk about that a little more thank you.
Yeah. Okay. Thank you very much so let's start with let's start with the synergy question. So with all with all of the assets that we have.
Both on the demand side and the supply side.
First of all the real challenge was put them on 1 framework.
The framework that we're using is developing a hub of hub and spoke of the different assets.
The hub and we have described we call it the IHOP the eye for intelligent is very much able to see like an air power control able to see all of the movement that is happening.
Between the demand side, and the supply side and first and foremost for efficiency.
Debt is translated to internally and externally and this has to do with first of all of what is the optimized routing and this optimized routing of demur.
The demand to supply the going through the intelligent hub will be translated into our efficiency internally and of course to a better return on AD spend for our customer. This is the first phase and the second phase as you mentioned on our call, we'll definitely will be some.
The cross selling between the different publisher on Upselling et cetera, but it was important for us to do first and foremost to have the technology that gives us the visibility the overall visibility of what's going happen in our in our framework.
The debt, we couldn't do before and we will take it beyond the optimization of financial optimization also to develop what we call. The Purion tag also ability to look about the better targeting.
We can look at about all other parameters debt all bolt into delivering.
<unk> better performance for our customers and that's that was our main investment technology investment that's in the last in the last year or so and we are very happy to see these results in our financial performance.
Debt on the synergy as far as the as far as the acquisition and what we are looking looking for so.
Yes.
It's challenging because we are very much looking for quite the type framework.
I try to share it with you on this call and we're looking for a company that first will definitely be accretive in substantial accretive we're looking for it.
The company that has the technology that is complementary closing GAAP accelerating.
Of our offering to the market and yet the ready to accept our quiet that.
Let me put it this way rigid.
Consideration structure, which we believe is the only way to mitigate the on 1 hand, the risk and on the other hand.
Ensure the acquired team will be with us.
The long the earn out period, which is usually between 2 to 3 years.
Debt is not trivial.
We are looking and we believe that for the right opportunity.
As I mentioned, we have we of the cash available and we are also the.
The team for debt able to observe the such if the.
And acquired team from the post merger.
The integration standpoint.
In terms of modeling.
You're right in Europe duration.
When it comes to the second half of 2021 so.
It was quite the question in terms of the guidance that we provide because on the overall of 2021 and to definitely reflect the.
You to the guidance that we provided reflect a great growth from 2020, but when you are focusing on the H 2 it's the lower growth.
Now H 2.2020 in our opinion was very much reflects or the growth of <unk> 2020 from the rebound of the very let's say shocking.
The second quarter of 2020, so we our estimate that some of the growth of the <unk> 2020, we define it as the rebound.
From.
When the Covid was very much hit us in the second quarter and so we will try to forecast and try to look at it from this point that this rebound was the something which is related only to 2020 and will not this amount, reflecting 2021 long story short.
We are quite conservative in our projection as we did in the last 3 years, we definitely would like to follow the.
The under promise and over achieve and narrative, which we're having in the in the last 3 years.
Thank you for novel Chair of our next question from Laura Martin from Needham. Please go ahead.
Can you hear me.
Yes, we can hear you hi, Laura.
Hi, there.
Yes, I wanted to drill down on search of little debt.
So your search revenue year over year grew 24% in the quarter and 23%.
For the first 6 months.
I was struck by that because of the goal of numbers.
For a 68% growth in the second quarter. After the first quarter on the grew 30% because of the prior year comp we werent the COVID-19 yet.
So I guess I'm wondering 2 things about could you explain how your search different business different from Google.
So much slower growth rate in the current quarter that second quarter, the 68% for.
The search business.
Compared to your search business of 24 per cent and then why is your so.
Not at all year over year compared to the has doubled from 30% growth of 68% price I'm just trying to understand the difference between the big search engine in the Google search engine.
So first and for most of the being the <unk>.
Main difference between the <unk> being search engine in the Google search engine has to do with mobile presence.
And that's 1 of the main that we put it this way remain deficiency of the Bing search engine we are.
We're very happy with.
The note the sustained growth of our search advertising business.
It will not it's something that we shared and we shared a lot debt.
We are putting way way more weight in terms of technology investment on our display and social advertising.
<unk>.
And that is reflected towards the strategic decision that the company take.
Back then I think it was more than the.
More than a year ago, and I think thats reflected on the numbers.
I can tell you that there is a lot of.
Synergy potential between the between the 2 debt we are working on it as we speak.
We are able to do.
<unk> generated some advertising business that is coming of the results from the search or the search intent or insight that we're getting from from this side of the house.
So all in all we are very optimistic as far as of this business and more importantly about the ability to develop the synergy business between the 2.
That's super helpful. Thank you.
My second.
E Commerce, almost every company AD driven that's reported in the sort of AD Tech is true.
And I'm wondering.
By integrating ecommerce.
Both of into your product roadmap going forward for your for your.
Right yes.
Yes. So thanks for the question and the test to do with 2 things first of all of I think that yes.
In the second quarter.
The undertone announce.
It's retail is the vertical that has to do with I think it has to do reflect the $4 million this quarter.
I need to look at the number but it's in this range of of business that we're doing with retail.
1 and we are continuing and invest in this vertical.
We truly believe that represent the huge a huge potential advertising business following the whole.
Vision of retailers the publisher and we are very much looking into this type of business. The other thing that has to do with E Commerce and I think debt.
Search advertising is all performance advertising and.
And we definitely looking about the keywords and we're trying to develop here all kind of modeling around it which is very much. This all growth.
Search advertising is driven by more and more advertisers that look at it is the great.
Channel to spend when it comes to e-commerce and when it comes to performance advertising because of 1 very.
I think basic factor.
This represents the highest possible intent for consumer in the best place for advertisers to meet those consumer debt, representing the highest possible intent. So we are very very much riding the.
This wave of e-commerce.
Thank you very much.
Thank you for my next question comes from Eric <unk> from.
From Lake Street. Please go ahead.
Yes, you called out the.
The significantly more spend per campaign and then as you also called out healthy increase in new clients.
Just kind of gets here, but I'm, assuming the outperformance you saw both in Q2 and in the raised outlook for FY 'twenty, 1 was tied to significantly more spend per campaign from the installed base is that correct.
Absolutely.
Okay, and then if I think about the raise 90 days ago, we were talking in May about a year at the midpoint that would be about $400 million and now we're looking at 422.5 million of the midpoint. So that's almost a 6% increase in your outlook for the year the.
As you see people spend more per campaign is this.
Is it flowing in particular is this more of an extension of the length of the campaign or the intensity over the same period of time.
No I think that both the.
There are 2 things that we definitely see debt.
The brands are shifting more dollars.
<unk> digital advertising campaign.
The few brands that we are in touch with shifting dollars from exhibitions that were part of their budget into digital campaign. This by itself with the.
Is a huge amount of incremental dollars that going into it.
1 thing we need to definitely.
The point out during the campaign, we are reporting to our brand and agency how we are performing.
That's the very important thing because we are encouraging.
Our brands and agency to double down where the performance that we are demonstrating is even more than what the anticipated. It has to do of traditional dollar the test to do with additional length of time, because most of the fixed expense of already being used.
The life.
And for those customer of ours. This is pure really.
The return on this incremental is the way way higher.
And then for the original plan of the campaign.
We develop more of these online type of reporting redevelop more on these performance, which is always 1 very much bottom line to incent, our client to invest more and extend more because for us operationally.
The great thing because of the campaign is running the work has been done everything is already in place and operate and extending it or.
In time or putting more budget is very very profitable for both sides.
That's good to see I assume that the return on those R&D investments of the prior 12 months is that correct.
Absolutely.
And then lastly, maybe this is for most of the <unk>.
Earn out payments you had a couple of very successful acquisitions.
The C. IQ was January 2020, and the publishing was maybe July of 2020, but they did have significant earn outs do do we have what do we have kind of over the next 6 months kind of between here and year end as far as cash payouts tied to the earn outs of those acquisitions.
Thank you Eric.
We actually are not expecting to have much more payment.
This year.
The small amount in July.
Around the 1.
$1 million, but this is it.
All of the other payment that we have on the balance sheet, if everything really going according to plan will pay around the Q1 'twenty 'twenty 2.
And can you size that dollar exposure.
The about $30 million.
3 zero $30 million.
Yes.
Turkey.
Okay, Thanks, and congratulations on the quarter and the robust outlook.
Thanks.
Okay.
Jeff Martin Roth Capital Partners. Please go ahead.
Thanks, Good afternoon, guys I wanted to drill down a little more I guess count.
Hi, Thanks for taking my questions 1 of the drill down a little more on the client count increased 67% of the advertising segment in the quarter are those clients that you've worked with in the past or the new clients and help us understand the composition of of which parts of the business that 67% increase is focused on and then.
I have a follow up question on content monetization when you're done with that.
So first of all the efforts on the advertising has definitely increased the client base that we have.
We are definitely looking on 2 parameters here.
1 is very much of the retention revenue and we definitely can report that we are very.
Very close to 100% of retention revenue from this quarter and the other key kpis for us.
Expanding and adding more and more clients that has to do with new products and our debt.
Debt, we are launching to the market. We are really encouraging of by our latest release, which is has to do with the CTV suite of of <unk>.
Product that we launched that allow us to.
Net more clients that are looking on our CTV offering more specifically on the interactive the IC TV solution and the fact that we're able to combine the cross screen in this campaign that generate the.
Quite traction in the market that allows us to add the substantial new clients.
Okay, Great and then my understanding is content monetization is roughly a quarter of the business was I was hoping you could give us some performance metrics around that and some of the key trends that the.
That of developed over the course of this year within content monetization.
Yeah. So content monetization is definitely a key part of our growth I must tell you that we already share then as we we had it.
In analyst day.
Day back on March.
Where the CEO of Newsweek was was on the call. That's 1 very good example of how content monetization is in play we are working with top tier top tier of property share.
Where we are externalizing, our solution technology in order to drive.
Audience and in order to keep the audience as long as possible.
On on their assets on the content and Thats 1 of the things that we are focusing at the 2 main parameters in the in this business or the main parameter in this business has to do with Rps that strength for revenue per session. This is this is the main measured for the publisher.
And the ability.
To generate as much as revenue for a given all the.
The <unk>.
The session time session. It's from the time, we learned in the time this audience leaves the.
The the sites on the notion that it is endless scrolling or anything like this it can be of mobile or it can be on the scope or whatever.
It's a very much performance for.
Performance based.
Business.
Which you have to demonstrate the technology, because it's a rev share type of business between us and the publisher.
And of disappointed to become a significant portion of our overall business as you mentioned.
In the last 12 months of the $400 million.
The good 25% of the business with a healthy margin.
Great. Thank you.
Youre welcome.
As a reminder to ask a question. Please sigma by pressing Star 1. The next question comes from Paul <unk> from practice private Investor. Please go ahead.
Well.
Hello, Julien how are you.
Very good.
I just wanted to know the first 1 question of that 2024.
Excuse me.
If we could reach $1 billion without any acquisitions.
Possible.
[laughter].
We looked at developing a model for 2022, when we choose.
Okay.
I'm jumping the gun of little bit I guess, just curious if you could see that at all.
So the only the only thing that I can comment on this 1 is the company is working on a 3 year strategic plan.
In the.
And this is this is very much of our guidance. This is something that we did.
For the till 2023, now we're able to achieve this.
This number a year earlier.
And we are definitely extending our strategic view beyond the 2022.
I think that.
The getting into the smart that you mentioned.
It's not that it's required and the acquisition, but acquisition is definitely part of our strategic plan, but we see opportunity in the market and we see an area of.
Which would like to accelerate.
Of our offering.
So you could expect the team by the 2020 for the company will do definitely will acquired opportunities given the of course the the.
Graeme that I described so it's too early to.
Alright to guesstimate 2024.
Okay I didn't mean to put you on the spot I just had 1 more question.
The 2 acquisitions that we made.
And you gave them a certain stipulations that excuse me.
That they have to do so much business.
In the euro and a half and NOI from they had to flow from could decent profit.
Remember that guideline I think you gave the the 2 acquisitions.
From a wrong, we came of the guidelines the guidelines that we.
<unk> is very much demonstrated on the earn out objective that we shared.
For us.
The market.
But I must say that we've seen that the exceed our expectation and they're doing extremely well.
Especially on the ability to developing the synergy with other part of the business and we're very happy.
With debt.
Okay. Good. Thank you my friend.
Thank you thank you and thanks for joining.
And we have a follow up question from Laura Martin from Needham. Please go ahead.
Hi.
Building on the.
The answer is yes.
Could you tell us now.
In the interactive CTV sweet.
How big that business is interactive.
Hi.
Yeah.
Yes, so indirectly of CTV product is growing.
From a percentage standpoint is growing rapidly we've seen more and more brands.
The revenue itself I think it's as I mentioned before we're looking about it what is the impact to the overall insertion order by having this line of IC television. So the way the way we'd like to the our Kpis is it generating greater deal.
Is it generating.
The deal that we didn't have before and not necessarily the line of the IC television sales debt currently it's relatively small but its impact on the overall revenue is the way way greater than its.
It's standalone contribution hope it's clear.
Super helpful.
And then all of content monetization that wasn't really interest.
I'm curious.
Compare.
That business to outbreak.
It's not a direct competitor for those 2 recommendation engine.
No. It's not we are using outbreak tabbouleh.
Basically the hour.
Our our content recommendation. So the fact that we are helping public share in these cases, Newsweek to get the to get new audience into our into the assets into.
The into their assets, which working on our content management system, because the whole engine of.
Optimizing or increase the revenue per session is our own engine, which is based on our own proprietary content management system. This is this is our core technology 1 of the way here to increase it because at the end of the day.
It's the Rev share based and the idea is how we're able to get the most of this technology is by driving new audience part of the audience is the majority is coming from social media.
And the other which is like 25 percentage coming from content recommendation. In this regard stable outbreak are a great partner and it definitely drive audience into these publisher and Newsweek is 1 of them.
Thank you very much and great numbers.
Thanks again.
Thank you and as there are no further questions in the queue I'd like to hand, the call back over to Mr. Darren Joseph Flynn for any additional or closing remarks over to you Sir.
Okay.
Thank you very much for your participation seal in the next quarter Bye bye.
Thank you for this concludes today's conference call.
Thank you for your participation ladies and gentlemen, you may now disconnect.