Q1 2022 Liveramp Holdings Inc Earnings Call
[music].
Good afternoon, ladies and gentlemen, and welcome from widespread fiscal 'twenty 'twenty 2 first quarter earnings call. My name is Bethany and I'll be coordinating this call you'll have the opportunity to ask the question at the end of the presentation.
If you move on to Register a question. Please press star followed by 1 on your telephone keypad. As a reminder, this conference call is being recorded I would now like to turn the conference over to your host Maureen Dillard Chief Communications Officer, You May proceed.
Thank you operator, good afternoon and welcome. Thank you for joining us to discuss our fiscal 2022 first quarter results.
With me today are Scott Howe, our CEO, Warren Jenson, President and CFO and Diego, Panama, Our new Chief commercial officer.
Today's press release and this call may contain forward looking statements that are subject to risks and uncertainties that could cause actual results to differ materially.
For a detailed description of these risks please read the risk factors section of our public filings and the press release.
A copy of our press release on financial schedules, including any reconciliation to non-GAAP financial measures is available at library on Dot com.
Also during the call today will be referring to the slide deck posted on our website.
At this time I'll turn the call over to Scott.
Thanks, Lauren and thanks, everyone for joining us today.
1 was a great quarter.
'twenty 2 is off to a strong start.
We significantly exceeded our financial commitments made strong progress against our strategic growth initiatives.
Momentum continues to build across the board.
1 group's vision.
Make it quick.
Companies could use data.
Never been more relevant.
<unk> continued to grow.
There are so many positive things taking shape, the validate my optimism, which I'll discuss in greater detail momentarily.
I'll begin today by sharing some highlights from the quarter and discuss a few of the key trends driving our recent market momentum.
Finally conclude by highlighting a couple of recent leadership announcements.
Q1 performance.
While we evaluated many financial measures there are 3 we view as particularly important.
Revenue growth validates market demand for our offerings.
Bookings growth highlights a stronger future.
On profit margins demonstrate the leverage of our business model on each of these dimensions investors should be pleased with our Q1 performance.
For the quarter total revenue grew 20% and subscription revenue was up 16%.
Normalizing for the wholesale contraction total revenue grew 30% and subscription revenue was up 29 per site.
A nice acceleration from last quarter.
Our land and expand model is working and we continue to see strong platform adoption.
In terms of increased platform usage and cross sell to new channels like connected television and more sophisticated use cases like measurement and data collaboration.
International growth.
It was also a driver of our strong subscription performance.
Marketplace and other revenue was up 36% driven by our data marketplace business, which was up more than 50%.
It continues to benefit from a steady rebound than digital advertising spend.
Especially across the large media platforms, where our marketplace is integrated.
Bookings in the quarter were equally strong growth bookings the summer bookings attributed to new customers and bookings from up so we're up more than 30%.
Marking the third consecutive quarter of elevated bookings growth.
On a trailing 12 month basis growth bookings are up more than 30%.
An important signal of the momentum building across our business.
While up sell bookings remained strong in the quarter, we saw a nice rebound in new customer growth as well.
Net customer adds in Q1 increased to 30 and.
And we continue to be really pleased with the quality and caliber of customers we are winning.
Our brand as Phebe was up 28% in Q1.
Finally, Q1 was also a record quarter from a margin standpoint at.
76% gross margin was ahead of our long term target and we were again profitable on the bottom line demonstrating our continued ability to drive profitable growth at scale.
While our Q1 results demonstrated our business momentum, we believe long term market trends are also favorable.
Let me talk about 3 major long term secular trends that we believe are favorable for <unk> future.
First <unk>.
It'll transformation.
Digital transformation has become an imperative.
For businesses of every size and every industry.
And while the early months from quarters of Covid, we're all about helping our customers weather the storm.
As we exit the pandemic brands are beginning to really double down on their digital transformation initiatives and think longer term.
IV see estimates that by 2023 direct digital transformation investment will approach 7 trillion dollars.
Foundational to many of our customers efforts in this area is building a strong first party data and identity strategy.
A great Q1 example of this is the work we're doing with the new top 5 global food and beverage customer.
As part of their ongoing digital transformation.
<unk> is helping this customer leverage a comment on identity infrastructure to consolidate data.
Ross, it's enterprise and portfolio of brands in order to build deeper consumer insights and <unk>.
Ultimately shape consumer experiences across all digital channels.
Perhaps the biggest opportunity to help accelerate our customers' digital transformation journeys is.
Is enabling privacy safe and permission based data collaboration through Safe Haven.
Business leaders are no longer choosing between data privacy and data utility instead.
<unk> get both.
Our expanded car for partnership, which ward will discuss more in his section has the potential to be transformational for both car for <unk>.
And by brand.
And our retail CPG flywheel continues to accelerate.
With 30% and 40% respective market share of the big box retail and top 50 CPG.
We are the clear the clear market leader here and we're encouraged by the traction we are seeing in other industries as well.
For example in Q1, we signed the deal with a global consumer electronics brand to <unk>.
Our data collaboration across their enterprise.
This is a customer who has invested heavily in building our strategic first party data asset.
And also has incredibly sophisticated data privacy standards.
As a result.
Turning to live ramps safe Haven.
Their needs.
Second.
Address ability.
Another macro trend I would highlight is the flight towards privacy first address ability.
Dress ability is and will continue to be the linchpin to delivering efficient personalized immeasurable experiences to consumers.
Google Facebook trade desk, and hundreds of other publishers share 1 important thing and comment on.
I'll work with life ramp and businesses use live ramp to increase the efficiency of these publishers.
Now while no 1 has a crystal ball.
I am very convinced of several things.
<unk>.
Data driven advertising and marketing it's here to stay.
Consumers expect relevance and advertisers generate better performance when they deliver relevant experiences to their consumers.
Second on.
Syndicated solutions like Etfs are far better than cookies or device based alternatives. They currently complement and May some day EBIT replace.
And for this reason, we believe they represent the future for our ecosystem.
A recent case study with the national specialty retail and delivery company.
Latest evidence of this.
20% increase in reach and 80% increase in ROI, leveraging ats compared to cookies.
This isn't just talk.
We have real results and real case studies.
<unk> generates higher ROI and greater reach for advertisers.
Better yields for publishers, and greater privacy and control for consumers.
As a result, our momentum is growing back.
Back more than 450 publishers globally are committed to Etfs and today nearly 1200 domains are live with code on page.
Third.
And importantly, well hi, Brian is agnostic to all of the various identifiers that exist in the ecosystem.
We don't have a media business or media interest, we remained Switzerland and neutral provider that can work with everyone.
Just as we will continue to support cookies. We also work directly with many of the walled gardens.
Ids treated community.
The major CTV providers and many many more.
Identity connectors.
As a result, we foresee no change to our strategy or approach as it relates to google's decision to delay its transition away from cookies.
We have achieved critical scale with Etfs today on our customers and partners get the best of both worlds, while being afforded some extra time to prepare for the migration to this more consumer friendly and secure authentication technology.
Third.
Use case expansion.
Now my career spans several decades at at least 3 major recessions.
A common trend that emerged in each downturn, there was a push towards greater media accountability the cash.
Happening again.
CMO is want to ensure that every line item in their media plan is measurable and accountable.
Techniques popularized in search and digital media are quickly being applied to TV.
The connected TV space continues to represent a big expansion opportunity for our business as more of our customers are embracing this channel.
On the quarter, our CTV business grew roughly 80% and our CTV bookings remained strong.
E marketer estimates that CTV spending will reach 27 billion by 2025 and other estimates suggest that could reach 100 billion by 2030.
But today, we estimate that less than 10% of the CTV inventory has bought data enabled our audience base.
Eventually we believe nearly all CTV ads will be data driven as advertisers realize the power of data to make their advertising vastly more effective.
The expansion of data driven advertising and CTV is a huge opportunity for live ramp.
And we believe CTV is only the first step of many.
For example, our safe Haven product is being used by retailers to drive better in store merchandising.
If data can be somehow you use to make our customer experience more useful and valuable.
Hi, perhaps platform can power this effort.
In short.
Don't consider ourselves as a programmatic AD tech provider.
This is only a small first use case.
A final area I want to address today is around live ramps leadership.
We built an incredibly strong culture at library.
Consistent with the named as 1 of the best places to work and pride ourselves on developing amazing deep talent throughout the organization.
When employees transitioned to alumni, we celebrate their success and often subsequently win new clients.
As importantly, it gives us an opportunity to either internally promote emerging superstars.
Or inject new external skill sets into our organization.
We've done a bit of both recently.
Really energizing for the entire organization.
First I'm very excited to have Diego Panama in places on our Chief commercial officer and excited for you all to have a chance to hear from a mixed alive.
Alive ramp commercial leader needs to be analytical.
Diego majored in mathematics at Yale has a graduate degree from M. I T.
You have to be technologically savvy Diego worked in product management from Microsoft.
Obviously must be an absolute sales animal.
And then they have to be an outstanding coach and mentor.
Diego joined live ramp in 2014 as 1 of our earliest sales leaders and during his time with the company has consistently been a top performer in terms of quota attainment and strategic account expansion.
Diego has held multiple positions on the commercial team, including leaving our platform partnerships and strategic account teams and most recently serving as interim CEO, while his predecessor, Jamie bar on this.
Sided with take on a new role within the rebrand.
Importantly, Diego is also an incredible leader, who consistently raises our definition of exceptionalism and demands that everyone meet this threshold.
While the search we conducted it was exhaustive.
Gave me a chance to interview external leaders at many of the world's most reputable SaaS companies. This was perhaps 1 of the easiest leadership decisions I've made as CEO.
Diego knows our business.
Our customers in a unique space we serve.
<unk> also had strong unsolicited recommendations from his colleagues and clients.
Im confident he will be a driving force behind our continued growth reacceleration.
I am equally excited to share that earlier this week, we announced that we hired industry leader David pad as our next chief product Officer.
David will help live ramp reached an EBIT higher orbit.
He brings an incredible reputation for developing world class people and products and injects decades of experience into our rapidly growing organization.
David has spent the last 25 years and the software in the Internet space holding senior leadership positions at Microsoft.
Who have either Netscape and the very very early days.
As Microsoft David successfully balanced platform upgrades, while also accelerating the rate of innovation.
David brings deep experience in building World class platforms.
And developing exceptional teams.
Skill sets that will make us move faster more purposefully and more effectively.
David will report directly to me and he starts in September.
Finally, we elevated mostly Hussein who has been successfully serving as <unk> Chief Technology officer for the past year.
And he'll now report directly to me.
During his time as CTO Molson has worked tirelessly to fortify live ramps global engineering team.
Contributing critical oversight to modernize modularize and integrate cutting edge technology into our solutions.
He was also instrumental in our acquisition of data fleets.
In summary, I will end, where I began we.
We posted a good quarter.
But it's still Don here at live ramp there.
We opened our last call by sharing the Ben Graham.
In the short term the market is a voting machine.
On the long term, it's a weighing machine.
Well.
As we always have.
We are playing for the long term.
Our customers know we are critically important to their success momentum is building across all areas of our business and we have a team in place that is hungry to keep winning.
Our progress only further fuels, our appetite for an even brighter future.
And we will never be satisfied.
With that.
You again for joining us today on our <unk>.
Special special Thanks to our global Library, amperes customers and partners further ongoing hard work and support.
I will now turn the call over to Diego.
Thank you Scott and good afternoon, everyone I'm, so excited to be here and thrilled to be taking on the chief commercial officer Al <unk>.
I've been alive Amp over 7 years, now and can confidently say the opportunity in front of US has never been bigger truly opportunity is huge and perhaps what's most exciting is that it is entirely up to us and our ability to execute to seize it.
Echoing Scotts remarks on digital transformation never had using data effectively been more mission critical to every business out there.
And I firmly believe there is no other company better positioned to help our customers succeed with data.
Our customers love, our dedicated focus on what matters to them when it comes to date on infrastructure.
They want enterprise grade software with security privacy and flexibility.
Being able to invest fully into what customers care about is what percentage of costs with an incredible opportunity to accelerate our growth.
Today, I thought I would share some detail on my planned approach for leading our commercial teams into our next wave of growth per.
Finally, I thrive in connecting the dots between day to day execution and a big bold vision and my approach is simple.
Focus on helping our customers and do it through operational excellence that sets us up for scale.
Together not only is the lives on commercial team, but with the entire lifetime team. Our work is all about helping our customers and in turn accelerating our company's growth.
With our client success and growth acceleration on top of mind, we are focusing all of our attention on 3 key levers.
1 accelerating new logo bookings to expanding to higher product attach rates and 3.
Moving higher customer retention, let me share a little bit more detail.
First increased land through acceleration of new logo bookings.
We continue to have a long runway with a new logo a.
A few examples of what we're doing here include having a very clear ideal customer profile.
Organizing our teams by industry vertical so we can be closest to the customer needs and.
And having a detailed outbound playbook to go after the opportunity.
Our progress with retail and CPG is a great example of how this is paying off.
We are working on landing the accounts, where we have the biggest opportunities on our results speaks for themselves.
As we have already seen our brands ACD increased significantly.
Number 2 attach rates attach rates attach rates.
Customer needs drive us at ligand, we are focused on delivering both the new products they need as well as the geographic expansion that aligns with where they do business.
When we do this we help our customers grow and in turn we grow with them.
And we have not been standing still.
As a team our number 1 initiative in Q1 was focused on strengthening our global account plans to enable our teams to better center on our customer needs on our upsell opportunities.
1 Great example of our progress here is with international attach.
We know that our customers operate globally and 1 solutions that work globally.
The more markets, we can help them in the more valuable partner, we'd become stickier solution becomes.
For this fiscal year, our team set a goal to do at least 20 global deals and we are off to an incredible start with 8 global deals in Q1.
Another Great example, and attach is the work we're doing with data marketplace on.
Our customers want and need easy access to the world's data from their lives on platform and that is exactly what our marketplace to lenders.
Our continued innovation here is very very exciting in recent quarters, we released the buyer Apis, which make accessing data increasingly frictionless. We have also made improvements around the controls data providers have for example, and managing pricing to help them use the marketplace more effectively.
And number 3.
We want to drive higher attention to on enterprise grade customer experience, we are obsessing over Howard customers experienced lie ramp on <unk>.
Our teams are processes everything.
We have introduced a new support organization as well as our services organization, which together with our customer success team.
All about making lives on customer experience and our price great.
This means improved on boarding and implementation seamless support interactions and better collaboration with our customers on how our products can help them achieve their business objectives.
Adding it all up these initiatives are helping our customers accelerate adoption decreased time to value and increase their ROI with lifetime overtime, you will see these investments show up in improved net retention.
I'm, a big believer in simplicity on prioritization and believe that above all else betting on these 3 areas will drive our success.
If you take away 1 thing from my remarks today. It should be this helping companies use data presents a huge opportunity and live amp is poised to make the most of it.
1 of our core values on <unk> is we love our customers and putting them front and center on every decision we make as a commercial team and as a company is critical to our success.
I am confident that with a customer first mindset and the right focus on operational excellence. We are just getting started on our future is very very bright.
Thank you so much for your time today and now over to wine.
Good afternoon, everyone and thanks Diego, it's great having you on this role.
<unk> had the pleasure over the last several quarters of working closely with Diego and can tell everyone I have a great partner and we have the right person in this job.
Well, we are off to a great start to our new fiscal year.
On our last call, we talked about building momentum and our Q1 results delivered.
Today I'll focus my remarks on 3 areas first share a few highlights from Q1.
Next I'll share a bit more about safe Haven, Ats that our groundbreaking partnership with GARP for.
And finally provide updated and raised guidance for Q2 FY 'twenty 2.
Q1 highlights please turn to slide 4.
First our growth is accelerating.
Revenue of $119 million was up 20% international up 'twenty 1 subscription.
<unk> revenue up 16% while.
<unk> increased 12.
Our net new customer count increased by more than 30 this quarter.
Net retention was 103 and platform net retention 1 oh wait.
And finally marketplace performed beautifully and was up 36%.
As expected our results were negatively impacted by the wholesale contraction, which we discussed on our prior earnings call and as outlined on slide 17.
We continue to expect this impact to be $30 million for the fiscal year and it was $8 million in the quarter.
If you exclude the impact consider the following.
Total revenue increased 30% and international of 39 subscription revenue was up 29%.
Are up 25.
On net retention would have been 114% and platform net retention 117.
In short, while we don't discount the impact of the wholesale contraction the numbers speak for themselves.
Second our momentum continues to build.
While we do not intend to regularly provide this level of detail we thought it might be helpful. On this call to highlight the foundational strength of our business.
On a trailing 12 month basis overall bookings were up 33% international up a 122% say.
Safe Haven bookings up more than 200% TV bookings up over 70, and our average brand ACB on new deals increased a stunning 28% year over year.
And by the way if you look at our growth bookings on a trailing 6 month basis, you will see even a stronger performance.
Add it all up our momentum continues our foundations strong.
Third our model continues to demonstrate its strength.
Gross margin crossed our long term target of 75% and was 76% in the quarter.
For the fifth consecutive quarter, we were profitable in fact, our operating margin was 6% and EBITDA margin 7%.
Please note that in other income we recorded a cash gain of $30 million associated with the retained profits interest in our former outsourcing business. We have excluded this 1 time gain from our non-GAAP results and.
And finally, we are supporting our shareholders.
Given the massive disconnect between our share price and our fundamentals, we repurchased $29 million in the quarter and have since been active buyers fiscal year to date, we have repurchased approximately $44 million in stock.
In summary, we're off to a great start to our year, our fundamentals are in great shape and the strength of our performance unmistakable.
Safe Haven Ats car for global expansion.
Probably the most important thing I can say today is that we're at the beginning of a powerful global growth curve.
While we can't promise. This every quarter in Q1, our safe Haven bookings were up more than 500% and.
And more importantly, the significance of safe Haven Ats on our partnership with car for cannot be understated.
Ats is creating a global currency that is far better than cookies.
Ats and safe Haven make it easy and safe for car for its suppliers and publishers everywhere to work together seamlessly to everyone's benefit.
<unk> is the neutral secure global standard identity is in fact, a lot more than an I'd and a bit strange.
Our capability to expand globally is unique and a live ramp competitive advantage. Please turn to slide 12.
T V is on the way too.
In total we now have over 55 customers using the safe Haven platform and if we do it right and they're not too far distant future. This number should be in the hundreds.
In summary, Safe Haven is created a category on a.
Along with Ats, a powerful global solution.
And we're just getting started.
Now on to guidance.
The headline we're raising our outlook, please turn to slides 14 and 15.
4 Q2, we expect revenue of approximately $124 million, an increase of approximately 18% and non-GAAP operating income of roughly 4 million.
For the full year, we are increasing our guidance on both the top and bottom line. We now expect revenue of approximately 522 million Ah roughly 18 per cent growth and non-GAAP operating income of approximately 15 million.
A few other call outs for Q2 in the full year.
For Q2, we expect subscription net retention to be flat to Q1 on roughly 1 O 3.
As we mentioned last quarter wholesale contraction is negatively impacting this metric by approximately 10 points.
And we expect our gross margin to be roughly 74 per cent.
For the full year, we expect overall revenues to increase about 18 per cent.
Absent the $30 million impact from wholesale contraction, we expect both total and subscription revenue to increased by more than 25 per cent.
We expect gross margin to be approximately 74%, we anticipate added investment in customer experience and security, which will bring margin down a bit from our queue 1 performance.
<unk> kind of impact is that having.
On on your business.
And sales cycles.
And then second question.
Warren you talked at length about <unk> and it seems like a like a pretty exciting opportunity.
Can you maybe talk about it a little bit more and just.
Other potential partners.
Where do you see similar opportunity.
Or or discussions right now thank you.
From there.
This is Scott I'll take the first question.
Think about Google.
Think about beyond just.
Third party cookies, obviously, they're an important partner to us from a direct integration perspective.
In terms of the Cookie decision, though we.
View that is neutral to positive for really for the industry because it gives everybody time to prepare for the eventual deprecation of cookies.
On that though it doesn't change our strategy whatsoever.
We're neutral from an identity perspective on whether its cookies or authentication.
Our clients can get the best of all world and if they work with us now.
They can certainly target using cookies, but they are also preparing themselves to utilize authentication methods as well.
We obviously have a view around which works better and we've shared debt.
We think authentication we've seen it repeatedly we have a lot of case studies, it's generating higher ROI and better reach for advertisers better yield for publishers and we think it's a.
A more privacy friendly option for consumers.
But in terms of the timeline on what everyone does that's ultimately a decision from the regulators on Google.
And regardless of when it happens, we'll be ready and our clients and partners will be ready for it.
And let me jump in on the second 1.
It's really interesting I just thought the headline obviously safe Haven has had a tremendous amount of momentum which has gone well beyond <unk>.
However, speaking a card for specifically there are a few things to call out first let me remind everybody of the business model.
Subscription based we have a primary tenant think car for and then we have partner tenants think CPG and we have multiple countries in the case of car for its ground breaking in several aspects. Many of these aspects. We believe you'll start to see throughout the world Global retail.
<unk> and global CPG.
Put in.
A category managers out there so the scope and breadth of how our platform, it's being used Ah really goes well beyond some of the early use cases, and then in summary of what I would say I guess, you know which leads back to your original question.
100%, yes, what we're doing your car for will translate to the world of of not only repay retail, but the world CPG and by the way. We're also seeing that now extend to other industries like farmers natural services.
Great. Thank you for all the other guys.
Thank you.
Thank you Mr <unk>.
The next question is from the line Stan So husky.
Morgan Stanley No Percy.
Hi, This is Elizabeth Elliot on per Stan.
On the corner it was great to see the strong on a new customer edition and and what I can take it into on on that.
The large customers that are on a millionaire or it looks like that cohort stayed flat after getting some strong growth over the last 6 quarters. So is there any trends to kind of call out there on kind of implemented expansion in that group.
But I wouldn't read anything into that.
I think the more important metric is what's been happening with our underlying a C D.
There are.
Average contract value was.
Just under 30 per cent, so a really nice growth there so as I think about that it bodes really positively for the future.
As we get more and more clients that can make the leap to a million dollars plus.
Great and then just a follow up on my on to the subscription retention rate of 1 per team is really impressive and even including kind of a headwind. The 1 O 3 surpassed on 1 on 1 right you guys put up last quarter.
Despite the wholesale contracts being a headwind.
Other than the factors that you're seeing that are allowing utah more than offset that hadn't been the contract.
Yep. Thanks, Elizabeth This is Diego, let me take on that question.
Very happy with the trends, we're seeing on net retention and.
Continue to focus on that and perhaps the biggest lever that we have on that front is all about our attach rates were spending a lot of time really focusing on making sure that our customers are using multiple products and multiple markets and the assistant also opportunity from.
Hi, Elizabeth I could add this morning, let me add a couple of other things just to put some math behind that.
If you look it up so you look at the variable contribution we look at.
Even lower contraction aside obviously from the significance of the wholesale contraction all of those improved year over year, So really a strong performance across the board.
Focus San Diego on his team or putting on on this is really paying off.
Oh, great. Thank you so much.
Thank you.
Thank you.
The next question on mine.
Okay. That's on.
Any.
<unk> you May proceed.
Okay. Thanks, very much and congrats on on a really good quarter.
On no who wants to take this 1 but just obviously trends in book. Okay. You have been have been really strong it's great to see the take up there and what the likely means for for revenue growth going forward can you just talk about what you're seeing in the pipeline an interior confidence on on this maybe not the exact level of growth continuing but but this kind of execution continuing and the demand in the market.
Not just being say, maybe a rebalancing offers COVID-19, but sustainable as we look out over the next call at 6 to 12 months.
Hey, This is Diego again, I'm happy to jumping on on this question and the trend that we're seeing in booking and what we're seeing in the pipeline. So we're super Super happy with our bookings results over the last 3 quarters on it.
Excited for the for the quarters ahead, we've done a lot to focus on growth, both new logo and attach and that's showing up in our bookings..1 example that I'll point out to us we've really gone to the detail of focusing on specific industry verticals from the 1 that we were talking a lot about today, because we are seeing great results detailed.
On CPG for example, we haven't awesome opportunity and neutral on CPG center around Safe Haven, but also the flywheel that that opens up for us. So focused that we have on on initiatives on both new logo and attach really give us a lot of optimism on our bookings trajectory.
Hey, Kirklin 1 of those.
Price doing just that.
Point out is.
In the quarter, obviously, we had the contraction of the wholesale contraction and so are all in was 12 per cent I'm sure. It's not lost on people on this call, but if you look at our guidance and you start to look at the out quarters, you're going to see some pretty interesting increases in the rate of growth of they are.
Yeah.
I'm looking for [laughter].
And along those lines the the linearity of the wholesale sort of.
Weighing down should we should we serve be anticipating that sounds like just this $8 million per per quarter for the next 3 and then we kind of get pass out or.
Could it be a little bit more than X 2 and then say the fourth quarter frankly, helping you all show.
The aggregate results survey accelerating all of that.
It's really the fourth quarter, where you start to see this he's off a little bit.
And we detailed this as we did last quarter. It's on slide 17, everybody, but it's 8 million Q1, 8 million Q2.8 million to Q3.6 million dollar impact in Q4, that's revenue on a R. R. The impact is 32.32 32.25.
Okay. Thanks, sorry, I didn't make it back to 17 net maybe 1 lesson for you just go on.
The market the market places really strong how should we think about that for hours.
By ramp due to really help the PV industry convert C. T V to really our real time bidding marketplace. Thanks.
Tim It's Scott I'll start by answering the second question on the real time bidding.
On the way that we work with.
With C. T V is very similar to the way we work across all aspects of the media plan were so much bigger than just programmatic.
And so while there are other players out there who really specialize in revenue we don't.
Whether it's premium hand sold or whether its remnant.
Our.
Applicability to it is equally important and.
And so what do we bring to the CTV CTV space well number 1 it's.
<unk> addressed the ability the ability to micro target users number 2 it is measure ability.
<unk> potentially different payment models.
Around outcomes as opposed to just reach and together those 2 things coupled with the changes that have happened over the last 18 months.
Explosion in connected device usage.
<unk> is really well, there's just a big appetite that we see.
And given.
Given the fact that we skew to larger clients.
Almost without exception our clients are spending on TV, that's a really nice opportunity for us to go and tap.
This is Gail on let me jump in on the on the vertical question and actually connected to.
And you talk about CTV and 1 of my favorite examples on the deal. We did in Q1 for example, and you'll be public a fintech company on.
Do you see they are doing a lot of customer acquisition and they're investing on CTV and linear TV. They came to us to be able to use data on.
Your next question is from the line of Jason <unk> with Craig Hallum. You May proceed.
Yes.
Jason.
I appreciate you taking the call.
She said net.
You've got on related to.
The television side, we've heard a lot.
From a channel about strength of upfront commitments in spring <unk>.
Benefit from that increase in a volume basis in any way or does that.
Destructive that channel allow you to accelerate your exposure to the connected TV side.
Yes, Bill expense.
And what I would tell you is once again, we're pretty unique and as much as we're not limited to any single part of TV I think we're probably the only player.
Net serves both linear TV and <unk> TV. So if it's good for TV. It's good for us over time, we've seen that mix change between the 2 and certainly we benefited from the growth of C. T V relative to linear.
But as a general rule, whatever actually increases spend across marketing as long as it can be.
Countable and as long as it can use data is going to be good for us.
Yeah.
Great. Thanks, I appreciate that you get from more quickly.
Regarding our understanding of the new professional services on the you guys mentioned last quarter. I was just wondering if you might be able to comment on what that opportunity could look like going forward.
Because you've mentioned it.
Gone out to a promising start.
I wonder if that momentum to continue.
Yeah, Hey, this is diego and I'm happy to talk about our momentum on professional services. It's a critical component of what we're doing around the customer experience and really making that enterprise grade together with our support teams on our customer success teams to service team is just truly delivering on what we find.
Is that it's really a services business in service off our software business. When we include services, our customers have faster time to value. The ROI, just really improve and we're really really pleased with the traction.
The team is getting and how the customers are reacting and really using the offering.
Yeah.
I appreciate that.
Thank you.
The next question is.
Comes from the line of Daniel Salmon.
You May proceed.
Hey, good afternoon, everyone.
Welcome Diego.
The breakout of gross bookings on slide can move is really interesting and sort of backs up I think what you've been saying about the strength of safe Haven, especially over the last year and so maybe this is for Scott and Diego and I'm trying not to have you sort of pick amongst your children here, but.
Since even becoming the lead product.
You have the context to that I think we all know that theres some differing views on alternative Ids in the ecosystem, but what is on.
The data it on.
Allows a client activate the better at all the places that matter. It allows clients to potentially collaborate with partners using configurable permissions always securely.
And it allows them to measure and optimise and improve over time. So it links everything together now the other thing that I I Rip off in your comment is around the I D space and you are exactly right. I mean this you on that I have had this conversation before.
I think 1 of the great Misperceptions about library Amp is somehow we're in competition with all these other ideas that are out there.
Mean, Facebook, Google Amazon trade desk, they all have their own Ids.
That makes sense because that towers their own algorithms and we work with all of them.
But when we talk to clients you know, we're not a media company, we're not a D. S P.
They want to work with someone to optimize their spend with each of those destinations, but also importantly across all of those destinations and so it's so important for us.
To be unbiased.
And have a solution that's neutral for data and measurement as well because that allows us to work across the entire industry and I think that's why so many of the largest companies on the world are working with us because we in turn work across all the other play.
Here's in the industry in a neutral agnostic interoperable way.
Then let me jump in on on the second question. The short answer is yes, I'd be the percentage of discussions with U S. Retailers continue to be very very strong I mean, we're incredibly proud that in just a year. We have at 30 per cent share a big box grocery.
You know and that's phenomenal relative to where we are a few things that.
On call out, though just for everybody to think about is I guess 3 things first of all best practice sharing. So this is really and network effects. So we're able to share best practices globally with retail and 1 of the more interesting things as you think about the privacy standards that we built into the car with car for an <unk>.
Cdpr, what we're bringing bringing those best practices to the U S. As well also from a product perspective, the analytics environment that we're launching with car for for all of their CPG partners, whereby year and have some 300 standardized reports available to to CPT.
And also people inside of a card for network as well that's a product that has 100% global applicable 84, any retail any retailer and then finally the network effect with CPG C.
We are seeing.
We have real case studies real data.
Our product has been live for well over a year.
And so we've seen very consistent and very quite frankly spectacular results.
Consistently ats is generating strong double digit lifts for advertisers I mean.
<unk> well in excess of 50% lift are not only not uncommon that they are actually the norm.
Because these advertisers are reaching previously unaddressed simple users on Safari and Firefox.
And rather than just hitting saturated users on cookies with the same message, they're reaching new audiences.
As a result, we are seeing the reach increase as well.
For publishers.
Who are the other side of the authentication when they deploy this.
We have.
So many of the world's largest publishers already embracing this theyre seeing a strong yield increase other making more money.
And of course, what shouldn't be lost in this is it's just a better experience for consumers and everybody in the industry should want back.
Because that is the fuel that keeps the industry going.
So I think it's a really good story to tell and that's why we've taken the position of no longer really care.
Too much about what else happens in the industry.
We believe authentication is a better way to go.
So.
We're sharing those results with our clients and then letting them make the decision.
Got it and then quick follow up and sorry for going along.
We know that you said you had minimal idea of any exposure, but we've heard some talk of their plans to mitigate impacts would service site solution. So we want to ask you role in supporting some of those solutions are you seeing.
Customers increase their utilization of targeting products such as <unk>.
Bloated custom audiences can that be a catalyst for your business as well.
Yes, I think you've hit on something interesting here is debt, we don't normally see a huge impact as the industry changes around US now there are certainly winners and losers in the industry, but what we've found over time is address ability trumps all others.
And so if 1 tactic goes away clients will just redirect their dollars to other tactics and so not surprisingly Facebook and Google and other walled gardens have been the big winners and there are other companies who have lost over time, but once again, we're agnostic.
All we do is make data addressable.
And allow it to be utilized at the destinations that matter.
Whoever does win.
We expect that will underpin that.
And.
We'll benefit from wherever the spend as a result goes.
Got it appreciate it thanks Scott.
Thank you Mr. Zhu.
There are no additional questions at this time I would like to pass it.
Good day to Wednesday.
Great.
Hi, Mike.
Great well. Thank you operator, I was sitting here listening to Scott and thinking about what I might say to conclude our call and probably if I were to say simply 1 thing you should walk away with from this call is that library on putting incredibly excited and we're leaning in on.
Our foundations are strong and we love our position.
Number 2 is if you think of all the incredible things that we've talked about today global Safe Haven CTV, what we're doing across industry groups, we think our technology puts us incredibly well for the future whether its privacy preserving technology Ats Federated identity management Safe Haven, CTV et cetera.
We believe we're in great shape.
On a third we're incredibly proud of the personnel announcements that were made over the course of the past month or so whether it's Diego David are most and our team is incredibly strong and we haven't even stronger.
Equally strong bench underneath this team as well.
So on behalf of our entire team here in San Francisco and Library Amperes everywhere. Thank you so much for joining us today, we love our customers.
We're incredibly appreciative of your support thank you very much.
Thank you all for joining today's Rodman fiscal first.
First quarter earnings call you may now disconnect your lines.
Good day.