Q3 2021 Viant Technology Inc Earnings Call

Good afternoon, everyone. My name is Christopher <unk>, co founder and Chief operating officer at <unk>.

Prior to starting our third quarter 2021 earnings call, we would like to open with a video about our Ww see software release that was taped at a recent event, we hosted with advertising week in New York.

Okay.

The third party tracking cookie was never ideal.

It was still transient intrusive and opaque and no surprise expanded consumer privacy backlash the entire digital advertising ecosystem for years has been built on a cookie well in our new open web to cookies going away.

Actually it's pretty much gone already what we see today as the cookie is not available 65% of the time in the midstream and the only place we see the cookie available today is in one area of the programmatic ecosystem, how can marketers continue to reach customers in a world without cookies the answer is.

Simple adopted people based approach with the household at its core for programmatic advertising, that's exactly what zions built into its add software <unk> in our recently launched software update the world without cookies were making it easier than ever for marketers to reach real consumers not proxies world without cookies.

Marketers manage reach and frequency at the household level and more accurately measure return on AD spend in the process.

You can even attribute online and offline sales to media exposure now their cookies are going away marketers have no ability to serve addressable or targeted advertising and they have no ability to track whether or not that advertising performance.

Enter our WWE software release for giving out our household Ids inside of our software so that they can replace the cookies other companies take a different approach, but where I think that this really shakes out for marketers. This is a huge upgrade we center all customer information around the household address so whether it's your name your address your <unk>.

Number your email that all sits at the household address from there anytime we're delivering advertising to that household marketers are then able to make their advertising relevant to that household and also see whether or not that household purchase the buying household I D enables marketers to do so much more than they could before for instance in <unk>.

Connected TV, it's a cookie less environment. There is no idea available we all see the same ad over and over and over when we're streaming that's a frustrating user experience for consumers and for the marketer as well our household I D enables marketers to control reach and frequency across publishers in the connected TV environment. This is a huge advantage it reduce.

Waste improves their reach and overall drives increased results, but it's also an upgrade because not only does attract for E. Commerce sales. You can also tell if somebody saw an AD walked into a store and purchase from a store as well. So Ww C brings together all of that household logic end to end throughout the software starting with planning.

Forecasting buying all the way down to the reporting you are looking at all of that Decisioning is using that people based household IV, we want to drive more transparency around the programmatic midstream that's why we launched a dashboard available on our public website bind and dotcom.

This dashboard shows how often different identifiers occur in the midstream and its updated daily to catch the latest trends.

Already the cookie appears in less than 40% of the dead stream. It's really just the Google Chrome browser on non Apple devices at del sur Zions DSP is nearly 150 billion AD requests every single day that gives us an excellent view into the programmatic ecosystem across digital advertising channels.

By its household I D based on our patented processes and technology is available only through our of Deltec software. It translate to over 1.5 billion Ips and other programmatic and integrated partner identifiers into 115 million meaningful U S. Consumer households, every household is anchored by.

Physical address and we tie all other digital identifiers back to the household Vyas household Eddie is available and nearly 80% of what we call. The midstream. So it offers incredible benefits and its highly scalable marketers that stick to a declining status quo or tighter future to some unproven idea will be missing out on.

The majority of the midstream.

Those that arent thinking about the cookie less present are blind to the fast growing powerful medium connected TV marketers typically want to show you maybe one out of day or maybe three ads in a week and then stop we called out frequency capping our competitors rely on a cookie to be able to do basic things like show three adds a stop when our household.

He is available to 80% of the time, we control the frequency with consumers, which gives them a better user experience and ultimately bloods markers not waste money with our software update marketers can now plan forecast and activate at the household level deploy cross device frequency capping and ensure the best consumer experience. This gives customers access.

To cookie less environments, such as CTV and more we just concluded a open beta for marketers to be able to test the divine household IV inside of the software and and and the results were incredible a 200% increasing conversions from marketers leveraging the household idea across all of these channels brand marketers that achieved.

40% more reach for the same amount of media investment with 28% less add reputation, which as you might imagine they've been pretty happy.

Anything that you guys are at a household.

Think about CTV and certain other activity a lot of that is at a household level.

When advertisers think about first party identity graph household she'll be an instrumental part.

The future of programmatic is going to be very very interesting yards creative is going to start to pay much more critical and cannot.

And I think as in isolation as you need to think is that a full ecosystem.

Consumer IV.

How the household idea of how the people based marketing is happening what is the first party data that you were able to deliver what is the messaging that you were able to unlock to deliver Apple music experience. It's actually ASO know something that you know they had shared with us and we saw in our presentation and then we didn't realize the impact until we actually executed so by clicking that simple household button.

We are now able to see conversions not only at a campaign level, but conversions at an order level at a lion level, even at a creative level, so being able to see that full picture at a household I D.

When you actually see tangible result was really impressive for us.

In the reporting has been second to none we now can see immediate results from the big screen, which translated to the small screen that increased our conversion rates. It lowered our cost per leads for our clients and overall the campaign became more robust and with conversion lift and all of the response that we got from it it was about 140% lift from the moment that we.

Turn it on its been really successful in our clients just want more of it as a shining moment, where the world is going calculus, and marketers and consumers are going to like what's on the other side of that shift we've been there we've made that shift and I think marketers are going to be excited about what the future of digital advertising is bringing them, which is better measurement better.

Targeting better ability to understand what am I getting for my money.

Hello, everyone and welcome to <unk> third quarter 2021 earnings call. My name is Timothy and I will be your zoom operator today.

Before I hand, the call over to the buying team I'd like to go over just a few housekeeping notes for the program.

As a reminder, this webinar is being recorded.

After the Speakers' remarks, there will be a Q&A session.

And if you'd like to ask a question. During this time. Please use the raise hand function looking in at the bottom of your screen.

Or do you plan to ask a question. Please ensure you set your zoom name to display your full name and firm.

Thank you for your attendance today and I will now turn the call over to Nicole Porsche.

Thank you very much good afternoon, and welcome to the <unk> technologies third quarter 2021 financial results conference call on the call today are Tim Banner Hook co founder and Chief Executive Officer, Christopher <unk> co founder and Chief operating <unk>.

Officer and Larry manner.

The company's Chief Financial Officer.

I'd like to remind you that we will make forward looking statements on our call today that are based on assumptions and subject to future events risks and uncertainties that could cause actual results to differ materially from those projected we undertake no obligation to update these statements except as required by law.

More information about factors that may cause actual results to differ materially from forward looking statements and our entire safe Harbor statement. Please refer to the news release issued today as well as the risks and uncertainties described in our registration statement on form S. One related to our initial public offering and other filings with the SEC.

During today's call. We will also present, both GAAP and non-GAAP financial measures additional disclosures regarding these non-GAAP measures, including a reconciliation of GAAP to non-GAAP measures are included in the news release, we issued today and our filings with the SEC.

I'd now like to turn the call over to Kim Chief.

Chief Executive officer of buying Kim.

Thank you Nicole and thank you everyone for joining <unk> third quarter 2021 earnings conference call I am pleased to share that we have delivered another strong quarter of operating results across a number of important areas in our business.

We continue to expand our customer base by adding 17 customers in the quarter, bringing our total active customer count to 305 at the end of the third quarter.

We've exceeded our previously issued guidance across all financial metrics revenue in the third quarter totaled $59 million, an increase of 26% year over year.

Our revenue performance reflects the broad based strength of bias Omnichannel advertiser experience.

We had solid performance in CTV, but we're now seeing several interesting shifts in customer adoption with other idealists channels beyond connected TV for.

For example, we saw that mobile spending was up 40% in the third quarter. As we believe advertisers are now starting to move AD spend to alternative platforms, given apples privacy changes related to the rollout of iOS 14th but.

Taking a deeper look at some of the trends that drove this quarters performance.

The deadline for deprecation of third party cookies in Google's chrome browser that is looming and driving accident across the digital advertising ecosystem.

Since may availability of both cookies and mobile App Ids has fallen on average 21%. According to our bitstream analysis as we enter 2020 to Google will begin their phase out of third party cookies support.

As advertisers face far fewer signals for targeting and measurement conversation between those advertisers and buying is increasing and so is the adoption of the world without cookies software release, which unifies bias household <unk> within the software.

Just like we have seen in CTV over the last eight quarters marketers are now beginning to consolidate their spending in our software because the availability of our household <unk> across all of these idealists environments not just CTV.

This gives marketers superior visibility and measure ability over their advertising.

During the third quarter, we witnessed customers' use of our household <unk> across.

Across other cookie less channels like mobile audio and digital out of home.

Most notably customers increase their spending in the mobile channel by 40% Chris.

Chris will discuss more about world without cookies later on the call Apple has increased the deletion of their I'd with the release of iOS $14 five and this has had a positive impact of advertising spend across our DSP in the mobile channel.

Another trend we are seeing.

Mobile App marketers are looking for alternatives and a post Apple <unk> World and.

Our existing people based DSP is helping these marketers post <unk>.

During the third quarter, Apple's changes to iOS caused disruption in the AD ecosystem.

Most notably marketers spending was disrupted on other large social media platforms as they saw sharp performance decreases.

Volume was a direct beneficiary of this disruption as evidenced by the strong adoption of our household use across mobile.

Furthermore, spending my mobile App companies increased by 86% in the third quarter compared to the second quarter of 2021.

This disruption by Apple's changes is a near term tailwind for buying it with marketers looking for platforms that offer greater measure ability.

These trends will continue as third party cookies and other device Ids continue to be disrupted into 2022 and beyond.

With that I'll turn it over to Larry Martin, Our Chief Financial Officer for more on our third quarter financial results Larry.

Thanks, Tim and thank you everyone for joining us today.

Before I begin I'd like to remind everyone that consistent with last quarter, we have posted supplemental financial slides to our investor relations website to accompany today's presentation.

As Tim mentioned, we are pleased to report that once again, we exceeded our previously issued guidance across all metrics in Q3 and are again, raising our guidance for the full year.

We continue to see increased customer adoption of our platform and believe we are well positioned for a strong Q4 and 2022 as our investments in personnel and technology mature.

This afternoon I will be discussing some of the highlights of our Q3 performance as well as some of the key financial and operational drivers during the quarter.

I'll also be reviewing our current expectations for Q4 and for the full year of 2021.

With that let me discuss some key highlights for the quarter.

During the quarter, we began seeing the benefits of a world without cookies software release with customers increasing adoption across multiple channels, where cookies are device identifiers do not exist such as connected TV mobile streaming audio and digital out of home.

Our continued investment in our team and technology also continues to pay dividends as evidenced by our solid increase in the number of active customers for the second quarter in a row.

For the quarter total platform spend increased 28% versus last year.

GAAP revenue for the quarter was $50 9 million, an increase of 26% compared to Q3 of 2020.

And contribution ex Tac was $34 1 million for the quarter, an increase of 22% on a year over year basis.

In terms of our previously discussed Covid impacted customer verticals, we continue to see a solid recovery in Q3 across our retail and travel customer verticals.

However, our auto customer vertical continues to be negatively impacted by the ongoing chip shortage.

Q3, we also saw a pullback in spend with some of our CPG customers attributable to supply chain issues.

As such whereas in recent quarters, we have been reporting the impact of COVID-19 across three customer verticals retail auto and travel this quarter. We will report the impact from Covid and supply chain related issues across two customer verticals auto in CPG.

Contribution ex Tac associated with our auto and CPG verticals declined 43% in Q3 as a result of supply chain related challenges.

These two customer verticals represented 46% of our total contribution ex Tac last year and as a result of the declines in Q3 of this year. These two verticals represented just 21% of our total contribution ex Tac this quarter.

In terms of CPG based on what we're seeing in Q4, thus far we believe these issues were largely contained within Q3 across a limited number of customers and we expect stronger performance out of CPG in Q4.

Across all other customer verticals outside of CPG, and auto which includes retail travel healthcare and entertainment among others. We saw a 76% increase in contribution ex Tac during the quarter.

These non impacted verticals represented 54% of total contribution ex Tac last year and now represents 79% of the total.

While the supply chain related challenges impacted our growth during the quarter. The fact that we exceeded our previously issued guidance and are raising our guidance for the full year speaks to the resilience and differentiation that our platform brings to the market.

The headwinds created by the supply chain impact of verticals, we will create an additional tailwind for growth as these issues are resolved in the coming quarters.

From a channel perspective, our Ww see software or at least during the quarter drove an increase in omnichannel adoption by our customers as they can now leverage our unique household IV to seamlessly buy and measure their AD spend across digital channels, where cookies are device identifiers do not exist.

In Q3, we saw broad based strength across all of these channels contribution ex Tac from mobile streaming audio and digital out of home grew 56% in Q3, while CTV grew 28% during the quarter.

Growth in mobile during the quarter was partly driven by an influx of dollars coming onto the platform as a result of some of the market dynamics that the social and mobile App ecosystems are facing as a result of Apple's recent IV FAA changes.

Marketers are testing in adopting our people based approach as an alternative solution to better target and measure in this important channel, which we believe is another important tailwind for our business going forward.

In terms of CTV, we did see a slowdown in growth of contribution ex Tac relative to last quarter. This is largely as a result of a change in customer mix during the quarter created by the supply chain issues I previously mentioned.

With CPG and auto market has historically being big CTV buyers the declines across these two important verticals during the quarter certainly muted our CTV growth rates in the quarter.

CPG and auto customers represented 51% of CTV related contribution ex Tac in 2020, and 42% of CTV related contribution ex Tac in the first half of 'twenty one.

In Q3, CPG and auto customers only represented 22% of our CTV related contribution ex Tac.

Excluding the impact of CPG and auto CTV related contribution ex Tac across all other customer verticals grew 92% in Q3.

Notably we are already seeing a reacceleration of growth in CTV in Q4 with growth rates accelerating well beyond Q3 levels, thus far into the quarter.

With growth in CTV AD spend expected to outpace overall programmatic growth in the near term. We believe our people based approach will continue to drive adoption across our platform, thus, providing another driver of our growth going forward.

On the customer front, the number of active customers and the average contribution ex Tac per active customer saw strong momentum in the quarter.

At the end of Q3, we had 305 active customers versus 258 in the prior year period, representing an increase of 47 customers or 18% on a year over year basis.

Sequentially the number of active customers increased by 17 compared to the end of Q2, representing our second consecutive quarter of double digit growth in the number of active customers.

We have now added a total of 39 active customers since the end of Q1.

The biggest driver of new customer additions in the quarter had to do with our continued success across mid market agencies, which Chris will discuss further in a moment.

Average contribution ex Tac per active customer at the end of Q3 totaled 433000.

Versus 404000 at the end of Q3 last year, representing an increase of 7%.

As we continue to ramp our sales and technology investment in 2021 and beyond we expect further momentum around new customer acquisitions and average contribution ex Tac per active customer.

Now turning to operating expenses I will be discussing operating expenses, excluding the impact of stock based comp and also excluding traffic acquisition costs, which are included in platform operations, but are deducted from revenue to arrive at contribution ex Tac.

Total operating expenses, excluding stock based compensation and traffic acquisition costs totaled $30 5 million in the quarter, an increase of 51% or $10 $2 million versus the prior year period.

The year over year increase in operating expenses is primarily attributable to the planned investments we are making across the organization with a particular emphasis on ramping our sales and technology infrastructure.

Given the significant market opportunity in front of US. We believe these investments will drive growth in the quarters ahead.

Adjusted EBITDA for the quarter was $6 5 million and our adjusted EBITDA margin as a percentage of contribution ex Tac was 19% in the quarter.

While 2021 is certainly an investment year in terms of scaling the business our mid to long term targeted adjusted EBITDA margin remains at 35%.

For the quarter non-GAAP net income, which excludes stock based compensation totaled $3 1 million and non-GAAP earnings per diluted share of class a common stock totaled four cents for the quarter.

From a cash flow perspective, we generated $6 5 million of net cash from operating activities in Q3 and ended the quarter with $243 million in cash.

We believe that our growth profile and healthy balance sheet position position us extremely well to take advantage of the rapidly growing market opportunity in front of us.

In terms of share count we had an average of $13 5 million class a common shares outstanding during the quarter and we expect the class a common share count to increase to approximately $13 8 million in Q4, primarily as a result of our Skus vesting.

And finally, I'll now turn to our outlook for the remainder of 2021.

As Tim discussed we feel great about our strong positioning in the market and we are very early stages of capitalizing on the market opportunity for programmatic advertising.

Given the increasing momentum we are seeing across the business. Despite some macro challenges we are once again, increasing our guidance for the full year.

For the fourth quarter of 2021, we now expect GAAP revenue in the range of 71% to $74 million, which represents year over year growth of approximately 26% to 31%.

Contribution ex Tac in the range of 47, 5% to $50 million, which represents year over year growth of approximately 21% to 28%.

And adjusted EBITDA in the range of 13, five to $14 5 million or a margin as a percentage of contribution ex Tac a 28% to 29%.

And for the full year, we now expect GAAP revenue in the range of $212 four to $215 4 million, which represents year over year growth of approximately 29% to 30%.

Contribution ex Tac in the range of $145 to $143 million, which represents year over year growth of approximately 27% to 29% and adjusted EBITDA in the range of $33 2 million to $34 $2 million or a margin as a percentage of contribution ex Tac a 24%.

With that I will now turn the call over to Chris.

Thank you, Larry and Hello, everyone. Today, I'll begin with highlights from a world without cookies software release, then I'll cover how we're scaling the business to accelerate customer adoption.

World without cookies is our largest and most comprehensive software update in years. It unifies our household eddy throughout the software from Onboarding to audience planning inventory forecasting frequency capping reporting and attribution.

This release shows our strength in omnichannel advertising by increasing marketer visibility and measure ability across all cookie less channels.

We recently exited open beta with more than 30% of our customers adopting the new Ww's SEC release as clients become more familiar with our household Eddie and the flexibility of using it across all channels.

<unk> performance remains strong for clients, who have adopted our household versus using cookies or other device identifiers for example, customers who adopt our household <unk> continued to experience strong performance gains in excess of 40% for reach and frequency controls, but more importantly on average our clients boosted new.

New customer acquisitions by over 110% compared to cookies and other device Ids and.

By attracting top talent from across the industry.

We segment, our customers into three groups large advertising holding companies.

Mid market agencies and enterprise companies.

Our holding company and enterprise divisions are now led by former Google employees with significant experience in each.

Recently, we've made traction with two out of the top five holding companies one grew by nearly 60% year over year and the other room by over 150% year over year in the third quarter.

Overall mid market agency spend grew by 58% year over year in the third quarter.

We believe that we will continue to do well in the mid market and look forward to expanding our holding company and enterprise partnerships into 2022.

On the marketing investment front create differentiation and increased awareness of our technology, we launched a new marketing campaign that speaks to the need of our next generation technology and the new open web.

It goes without saying that we're using our delphic software to scale. This campaign.

Early campaign results are exceeding our expectations, including site traffic content engagement in new business leads which is laddering back to the performance that you see here today and queue for guidance.

Thank you, everyone and I'll I'll pass it back to tell him. Thanks, Chris.

First our revenue performance reflects the broad base strength of violence, Omnichannel Advertiser experience and Apple's recent disruptions along with other big Tech changes are causing admire shifts that directly benefit by it because of the superior visibility and measure ability, we offer and <unk>.

Last our investment in people is now really beginning to pay off with both large an app and midsize holding companies and customers direct everyone. In this industry is looking for a solution to this very big problem and buying software, we believe squarely delivers that.

Since this is our last earnings call for the year I Wanna take a moment to say thank you to our employees for their contributions they've made in our first year as a public company. When we look out to 20 twenty-two what we see is incredible opportunity for buying thank you very much.

At this time I would like to remind everyone asks in a question too. Please use the <unk> function looking at at the bottom of your screen and with that the first question comes from Maria Rips Ah Kenacort.

Maria Your line is open. Please go ahead and <unk>.

Perfect great. Thanks, so much and that congrats on a strong results. So my first question is around the customer auditions uhm.

Just trying to figure out how at the time my video.

So my first question is around customization and can you just talk about what sort of driving district. This strength. If you enter the a salesperson investments is it growing and growing awareness on the platform or is it something else may be related to that can you just talk about how the cohort of customers. You added last quarter is ramping spent on.

The platform.

Got it I'll I'll take the first part of that Maria. Thanks for the question I think just the trends around our actually grind that definitely our sales and marketing investments, you're saying that play out as those new additions to the team.

As the marketing that we have out there is increasing awareness. So you're now saying those customer additions start to start to come on.

But I don't know I would say just a little bit more color on that were doing really well as we continue to do well in the mid market.

But also as I noted earlier the whole because we're <unk>, we're really excited about the progress that we're making there as well so starting if you're really getting at both the mid market and at the local level.

And what was the second sorry, the second part of your question Maria how does the cohort scalings yeah. So what right. So one thing we just we've had two quarters in a row of strong new customer additions end of the platform. So they're consider those to be our year. One customers. They are typically testing, they're going to spend a lot less in there.

First share then they are going to be in your <unk> to any here three are.

Our customer satisfaction retention is still holds a very strong. So we know that we're going to retain those customers, but those those ones are really start to grow their spending your too.

Got it. Thanks, so much and then thanks for all the color on that on that double double we see can you just talk about how many marketers participated in the WWF she'd beta instead of what portion of customers. It currently utilizing it I think you mentioned that you need the software available to everyone in October and so we.

Talking about increasing conversion and better results for your clients can you share any color round it off.

With a client or spending more on the platform once they start utilizing it in one day, if you can maybe quantify that.

Yeah. So.

The open beta phase, we got to 30% of our of our customer base.

So that was actually a really strong a lot of interest around that in terms of the customers. We are seeing customers who are getting outperformance. They are they are spending more I think you saw that in the quarter I think we saw it with with marketers, they're getting challenges challenges in large social media platforms.

Where there were those platforms have relied on Apple's IBSA and the limitations that I think played out they started to move the money. The money is he taking so if they are getting <unk>.

Less returns, they're they're gonna move that money and look for alternatives, we definitely saw the increase in spending from those clients.

Got it thanks, so much.

Your next question comes from Laura Martin at need them.

<unk>. Your line is open go ahead and when you're ready.

Okay.

And I also don't know how to turn on turn on my video, but I can ask you. These slides you guys publish are fantastic I wanted to clarify a couple of things.

When you talk about audio M C P G being down 43% and all other up 76% My recollection as you guys have sort of 16 verticals. So the all other is what I'm asking about what are the primary components of all other that was up so strongly in the quarter.

Hi, Laura Thanks for the English to Miss Larry the main verticals that really drove back row or retail health care Entertainment and travel.

We have other verticals less significant but those were the two drivers. Okay. That's great and then you have this really awesome mobile audio and outdoor number of up 56% in a corner, where a lot of cheap a lot of stocks got hammered because mobile got disrupted by the Iowa's upgraded my question to you is.

When you think about like why is mobile audio and outdoor growing twice as fast as C. T V. Do you guys think.

Well I think C. T V was directly related to some of the supply chain impacted customers that we talked about automotive and consumer package goods are heavy investor as in connected television in those categories had the supply chain issues that we talked about but I think what what really is driving it is those <unk>.

<unk> are cookie live.

And what's growing in mobile with US is specifically apple related to the $14 five change for the iOS update and with no idea a all of the all of that AD spending is back up for grabs and so taking a people based approach.

We saw lots of mobile App marketers testing our solution in the quarter, what was delayed by Google of Cookie deletion until 2023 is here right now across apples.

Devices, and so I think marketers, who used Apple has a big distribution point to buy and measure their advertising are looking for an alternative solution and we certainly saw that as a tailwind in the quarter and I think that will lead to future tailwind in the near term.

I'll just add one other thing I think what we're seeing out of marketers who are no longer getting the performance and if we specifically talk about mobile app marketers, which is a big percentage of the social media companies their activities with them. They're just looking at alternative ways to be able to spend their money to get new user acquisition <unk> engagement with their current audience.

So they are testing those other channels to see what their returns are and we can tell you. The returns were really solid. So we're very encouraged by the early signs that were saying, we're we're really effectively as we've been saying is that he is these identifiers go away. This is a tailwind for us.

Well I think I I agree I take your point, because you've been talking about the cookie with swirl, but really saying is having a positive impact today and that sort of a positive we didn't even think that uhm. So looking at the nine months chart I dunno. It slide this is sorry, but basically it says the CTV channel was like 13 million round numbers in Q1 13.

And Q2, essentially 11 million in Q3.

Total revenue. My question is do you think that shifts to W. W. D could've slowed that growth short term, while you're converting people over into that you into the new software.

I think it could have had an impact in the quarter as we explain the benefits of using our single household Ivy across all channels for targeting a measurement certainly there could have been some extra attention in the quarter as Larry had mentioned in the prepared remarks, we see strength and C. T V. In the fourth quarter. So as I look at it the customers that were impact.

And the supply chain turned out to be C. T V investors heavy investors in that category I think as those have cleaned themselves up CTV bounces back, but I think that's what we tried to highlight was the opportunity and the cooking swirled or all idealists world of Apple in the near term, we're certainly seeing that benefit.

But no I don't see any long term change in C. T v's outlook in the near term or longer term.

Super helpful. Thanks, you guys.

Thank you. Thank you.

Alright. These are some great questions and just as a reminder, if you plan on asking the question for the speakers go ahead and use the <unk> function look at it at the bottom of your screen. The next question comes from Alex Ross Baron Burke, Alex. Your line is open go ahead and <unk> when you're ready.

Right. Thank you and thank you for taking my question congrats on the corner and back.

And I appreciate the video you said in the beginning can you comment more on initial feedback from customers on their alley and as a follow up are there any additional features that you've heard from customer at they may be asking for.

Yeah, certainly I mean, one of the biggest areas of feedback that we get on the W. W. C software at least is just the performance of the advertising and maybe to back up from that what I mean is the Apple advertising ecosystem is dark if you're using one of our competitors, you're not bidding buying or gaining any new customers.

In that ecosystem and I think the first piece of feedback we hear is wow. It really brings Apple's ecosystem back where we can bid the same way, we used to and actually measure the same way we used to so the feedback number one is on the measure ability of the platform post W. W. C release, it's measurement that they aren't experiencing in other platforms and drastically.

We need given the current I D a.

Issues in the marketplace. That's out there today, what else would I would just say one big thing and Dsp's and this is software. So the usability of every feature that you roll out I.

I was actually just having this discussion with a client last week talking about the usability that they believe that they're getting that this new this new release actually has increased our usability above competitive platforms and is causing them to shift more money.

It's not only about the performance that they get in the campaign the outcomes of the campaign. It's also about the usability and so that's a great. Those are great marks for our product him.

It really did a great job with this release.

Thank you that's very helpful. And then just a second question. If you could comment on the sequential Uhm impact you saw from the supply chain this year and how you're thinking about that very cute for.

Yeah. So we think a lot of the areas and CPG those are well noted out there, but we think what we're seeing is a lot of that we're saying is is subsiding into Q4. So we're expecting a rebound there and CPG automotive we don't think that that is a strong rebounder.

Necessarily in queue for however, what I will say is our conversations with our automotive clients are actually very promising that we believe they will returning.

A lot of their spending in the first quarter of next year of 2022.

A lot of them are looking to get aggressive a lot of them know that they have to make enough to do and it seems to me that they are starting to see some of the supply chain related issues with respect to their chips. They believe that that will be subsiding in the first quarter of 2022, So that's encouraging.

Great. Thanks for the color congrats on the corner.

Thank you you too.

You have an additional question from Laura Martin Needham Laura Your line is a muted.

Hi, I just thought I would ask you a big picture question Omnicom has proposed standards for C. T V. The connected television signals Standardization initiative do you guys have any thoughts on that and how it relates to your W. W. D release.

Specifically, we're also specifically on their on their exact proposal I don't have any comment on their exact proposal, but we're all for standards. This industry was built on standards everyone's looking for a common framework to interact with each other so I think that's part of getting everyone on the same page.

Again, I will say that we think the standard as a people based standard moving forward leveraging many different ways to attach data and targeting at that household level. So all in all I think what the Omnicom proposal shows is the substantial need for a plan going forward with no idea across connected T V. I think another big important.

And factor that advertisers are looking for in connecting T. V is what content is their AD being shown against and that continues to be a big open area that the sell side and the biocide continue to work through.

Super helpful. Thank you very much.

Thanks, a lot.

Alright at this time, we have no more questions, we'll give it just a few more seconds to see if you have any more so I come in at the last minute.

Alright see none I will go ahead and turn it back to Tim and Chris for closing remarks, if there are none.

And we'll go from there.

Alright. Thank you very much everyone for joining our third quarter earnings Conference call. We will speak to you again next year and are very excited about the future. Thanks a lot.

Thanks. This concludes today's conference call you may now disconnect.