Q3 2021 Kubient Inc Earnings Call

Yes.

Okay.

Speaker 1: Good afternoon and welcome to Coopian 3rd quarter 2021.

Good afternoon, and welcome to <unk> third quarter 2021 conference call joining.

Speaker 1: Joining us for today's call are Grubian's founder, chairman, chief strategy officer and chief executive officer Paul Roberts and chief financial officer Josh Weiss.

Joining us for today's call are <unk>, founder, Chairman and Chief strategy Officer, and Chief Executive Officer, Paul Roberts.

<unk> Financial Officer, Josh wife, following their remarks, we will open it up for questions.

Before we get started I need to alert you to our safe Harbor statements under the Securities Litigation Reform Act of 995. During this conference we will be making forward looking statements, including statements related to future events or to our future financial performance and involve known and unknown risks uncertainties.

Speaker 1: Before we get started, I need to alert you to our safe harbor statements under the Securities Litigation Reform Act of 1995. During this conference, we will be making forward-looking...

Speaker 1: including statements related to future events or to our future financial performance and involve known and unknown risks and certain.

Speaker 1: and other factors that may cause our actual results, level of activity, performance, or achievement to be materially...

And other factors that may cause our actual results.

Level of activity performance or achievements to be materially different from any future results.

Speaker 1: from any future results. Levels of activity, performance and achievement expressed or implied by these forward looks.

A activity performance and achievements expressed or implied by these forward looking statements.

Speaker 1: Listeners should not place undue reliance on forward-looking statements since they involve known and unknown risks and...

Listeners should not place undue reliance on forward looking statements since they involve known and unknown risks uncertainties and other factors, which are in some cases beyond our control and which could and likely will materially affect actual results level of activity performance or achievements.

Speaker 1: and other factors which are in some cases beyond our control and which could and likely will materially affect actual results, level of activity, performance, and achievements.

Any forward looking statements reflects our current views with respect to future events and are subject to these and other risks uncertainties and a census related to our operations.

Speaker 1: With respect to future events and a subject to these and other risk uncertainties and assumptions related to our operations, result of operations, grow strategy and liquidity. These statements are a subject to no-

<unk> of operations growth strategy and liquidity.

These statements are subject to known and unknown risks uncertainties and assumptions that could cause actual results to differ materially from those projected in implied during the call.

Speaker 1: That could cause actual results to differ materially from those projected in implied drainage.

Speaker 1: Furthermore, listeners are referred to the document offered by Cubiant, Incorporated, with the SCCC Nay,

Furthermore, listeners are referred to the documents filed by <unk> incorporated with the FCC.

Speaker 1: including our annual report on Form 10-K filed with the S.

Our annual report on Form 10-K filed with the SEC on March 30th 2021.

Speaker 1: on March 30, 2021. Our quarterly report on Form 10Q for the first quarter of 2021 filed with the SEC on May 14.

Our quarterly report on Form 10-Q for the first quarter of 2021.

Filed with SEC on May 14, 2021, and our quarterly report on Form 10-Q for the second quarter of 2021 filed with the SEC on August 16, 2021, with the understanding that our actual future results may materially different from what we expect.

Speaker 1: For the second quarter of 2021, follow the SEC on August 6th.

Speaker 1: What the understanding that our actual future results may which are really different from what we expect, which include these and turn other important risk factors. come.

Which include these and other important risk factors.

We qualify all of our forward looking statements by these cautionary statements.

Speaker 1: Please note that the forward-looking statements on this call are based on information available to us as of today.

Please note that the forward looking statements on this call are based on information available to us as of today's date.

Speaker 1: Except as required by law, we assume no obligation to publicly update early buys before real estate statements for any reason, or to update the reasons actual results could differ materially from those anticipated and these foreign-looking statements. Even if new information

Except as required by law, we assume no obligation to publicly update or revise these forward looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward looking statements, even if new information becomes available in the future.

Please refer to <unk> SEC filings, specifically its registration statement on.

Speaker 1: Please refer to Cubions FEC filings, specifically its registration states.

Speaker 1: on form S1 initially filed on December 12th.

On form S. One initially filed on December 12 2020.

Speaker 1: For a more detailed description of risk factors, that may affect the company's results.

For a more detailed description of risk factors that may affect the companys results.

Speaker 1: During the call today, management will discuss the Dessert Iberta, a non- GAAP financial measure. In the company's press relief and filings with S.

Joining the call today management will discuss adjusted EBITDA.

Non-GAAP financial measure in the company's press release and filings with the SEC.

Speaker 1: Both of which are posted on the company's website. You'll find additional disclosures regarding this non-GAP measure, including a reconciliation of this measure with its comparable gap.

Of which are posted on the company's website you will find additional disclosures regarding this non-GAAP measure, including a reconciliation of this measure with its comparable GAAP measure non-GAAP financial measures are not intended to be considered in isolation from a substitute for or superior to GAAP results.

Speaker 1: The company encourages you to consider all members with analyzed

The company encourages you to consider all measures when analyzing <unk> performance.

Speaker 1: Now I would turn the call over to Paul Roberts. There, please proceed. Thanks operator. And thanks.

Now I will turn the call over to Paul Roberts, Sir. Please proceed.

Thanks, operator, and thanks to everyone, who has joined us today.

Speaker 2: The third quarter marked the period of steady growth for coobion as we continue to move forward full steam ahead.

Third quarter market period of steady growth for Covid as we continue to move forward full steam ahead.

Our net revenues for Q3 were.

Speaker 2: Our net revenues for Q3 were $677,000, which represents a 141% increase year over year from the same period and a 36% increase from the prior quarter. We continue to believe-

$677000, which represents a 141% increase year over year from the same period and a 36% increase from the prior quarter.

We continue to believe we are just starting to scratch the surface.

Speaker 2: Although at times, we were limited by the speed of which our partners, customers, and stakeholders were able to operate.

Although at times, we were limited by the speed at which our partners customers and stakeholders, we're able to operate.

Speaker 2: Nevertheless, a common underlying theme we have unveiled both internally and to our shareholders is that our customers and partners can continue to be very interested in our technology and are keen on digging deeper into how our solution can play a key role in their ad-tech ecosystem.

Nevertheless, a common underlying theme.

We have unveiled both internally and to our shareholders.

Customers and partners.

To be very interested in our technology and our key digging deeper into how our solutions can play a key role in our AD Tech ecosystem.

In early 2020 due to the impact of COVID-19, nearly every brand hit the pause button to really evaluate their advertising strategy.

Speaker 2: In early 2020, due to the impact of COVID-19, nearly every brand hit the pause button to really evaluate their advertising strategy.

Speaker 2: Some companies completely cause all advertising spend. While some took the opportunity to take a deeper dive into the ROI of each ad dollar they spend.

Some companies completely pause all advertising spend while some took the opportunity to take a deeper dive into the ROI of each AD dollars being spent.

Speaker 2: It is with companies that took the latter approach but decided to explore potential opportunities of Cougain.

It is with companies that took the latter approach, we've decided to explore potential opportunities with COVID-19.

Speaker 2: As they recognize that we can help boost up that ROI figure for them.

As they've recognized that we can help boost up that ROIC figure for that.

We have also recently benefited from some news reports outlining that Google is a cut of 22 to <unk>, 42% of U S AD spending that goes through the system.

Speaker 2: We have also recently benefited from some news reports outlining that Google takes a cut of 22 to 42% of US ads spending that goes through its systems.

Speaker 2: This figure does not include additional fees charged by agencies, additional DSPs, SSPs, and added changes.

This figure does not include the additional fee charged by agencies additional DSP and SSP and AD exchanges.

This is probably more brands, both large and small to reconsider the walled gardens, Google and forcing them to take a look at more agile and nimble partners.

Speaker 2: This is prompting more brands, both large and small, to reconsider the wolf garden at Google and forcing them to take a look at more agile and nimble partners.

Speaker 2: that can help solve the efficiency and product use for the industry.

That can help solve the efficiency is broad issues plaguing the industry.

With that said the conversations and feedback we have been receiving.

Speaker 2: With that said, the conversations and feedback we have been receiving in and of itself is quite encouraging as it proves that prospective users of technology see the value that we provide as it solves real problems and boosts efficiency.

And of itself is quite encouraging.

Is it true that perspective uses of technology see the value that we provide is it solves real problems and boost efficiency.

The one variable that we don't have control over though this time.

Speaker 2: The one variable that we don't have control over though is time. We have noticed that lead times can be Latia that we would like them for B, but the fact of the matter is that it requires time to get large corporations to fully buy into a new process and transition away from their legacy ones. Regardless of how powerful the data we show them may be.

We have noticed that lead times can be lithia that we would like them for me.

The fact of the matter is that it requires time to get large corporations to fully buy into a new process and transition away from their legacy one regardless of how powerful the data we show them maybe.

Despite this our growing team remains laser focused on controlling all variables would be now anonymous just left the conference.

Speaker 2: Despite this, our growing team remains laser focused in controlling all variables within our... Anonymous. Just the left of the conference.

Speaker 2: What's also been encouraging is that from a macro view of the advertising industry, we are seeing a lot of traditional areas, especially CTV and mobile advertising, to matter of a large COVID induced loan.

It's also been encouraging is that from a macro view of the advertising industry. We are seeing a lot of traditional areas, especially CTV and mobile advertising come out of a large COVID-19 induced model.

Speaker 2: As a result, we're beginning to witness early signs of the tent up demands come to fruition here in the midst of the fourth quarter.

As a result, we are beginning to witness early signs of the pent up demand comes to fruition here in the midst of the fourth quarter.

Speaker 2: Digital advertising is more important than ever to deliver success for businesses and every brand in the world. It is looking to their advertising leaders to find value and efficiency to add to their bottom line.

Digital advertising is more important than ever to deliver success for businesses and every brand in the world is looking to their advertising leaders high value and efficiency to add to their bottom line.

We are cautiously optimistic that we will be able to ride the tailwind of this trend and are hopeful this will prove to benefit us on a constant quest to win deals with strategic and accretive partners.

Speaker 2: We are cautiously optimistic that we will be able to ride the tail in the this trend. And our hope will, this will prove to benefit us on our constant quest to win deals with strategic and accretive partners.

Shifting gears to our growing team.

Speaker 2: We continue to onboard new hires and spend our work for.

We continue to onboard new hires and expand our workforce.

Speaker 2: This past quarter, we hired a total of six employees. And year to date, we have onboarded a total of 20 new employees.

This past quarter, we hired a total of six employees and year to date, we've on boarded a total of 20 new employees.

Speaker 2: Although we've been expanding, similar to what I mentioned in the previous call, we're still seeing the effects of the macroeconomic job market trend of supply, far exceeding demand.

Although we've been expanding similar to what I mentioned on the previous call. We are still seeing the effects of the macroeconomic job market trend of supply far exceeding demand.

Speaker 2: In conjunction with the limited demands and the analysis to our M&H strategy, which I'll touch on later in the call, we're being very selective with the employees that we hire. We usually truly are the lifeblood of coobian.

In conjunction with the limited demand and then now with <unk>.

Our M&A strategy, which I'll touch on later in the call, we're being very selective with the employees that we hire.

Truly are the lifeblood of Covid.

Speaker 2: And the exciting updates in the lead earning calls is that our employees have begun returning back to the office.

And exciting updates since the last earnings call is that our employees have begun returning back to the office, which has turned out to be a huge benefit as it increased the quality of collaboration between the different segments, and obviously allow us to face to face interactions.

Speaker 2: which has turned out to be a huge benefit as it increased the quality of collaboration between the different segments and obviously allows for face-to-face interaction.

Speaker 2: Although our employees were able to maintain consistent levels of productivity prior to re-entrance to the office, the overall morale of our workplace and the cohesiveness certainly was positively affected by the return.

Although our employees were able to maintain consistent levels of productivity prior to re entrance to the office. The overall morale of our workplace and the cohesiveness certainly was positively affected by the return.

Speaker 2: With that said, before I discuss further updates on our core business for the quarter, I'll be passing the mic over to Josh for an update on the financial side.

With that said before I discuss further updates on our core business for the quarter I'll be pass the mic over to Josh for an update on the financial side.

Josh.

Speaker 3: Thanks Paul, and good afternoon everyone. Thanks for joining our call. Now to our financial results for the third quarter and its September 30, 2021. As Paul mentioned at the start of the call, net revenues increased to approximately $677,000, compared to approximately $280,000 in the same period last year. This represents a 141% increase year over year from the same period and the 36% increase from the prior quarter.

Thanks, Paul and good afternoon, everyone. Thanks for joining our call now to our financial results for the third quarter ended September 32021, as Paul mentioned at the start of the call net revenues increased to approximately 677.

Compared to approximately $280000 in the same period last year.

This represents a 141% increase year over year from the same period and its 36% increase from the prior quarter.

As previously mentioned in our Q2 earnings call revenue has not generated more realized immediately after a consumer signs up to use the audience cloud.

Speaker 3: As previously mentioned in our Q2 earnings call, revenue was not generated nor realized immediately after a customer signs up to use the audience's cloud.

Speaker 3: After contract execution, our engineering team will typically integrate our technology into customer's infrastructure, followed by a testing period, which altogether ranges from a 4-10-week turnaround to thin, depending strictly on the complexity of our partner's technology.

After a contract execution, our engineering team will typically integrate our technology into customers' infrastructure, followed by a testing period, which altogether ranges from four to 10 week turnaround time, depending strictly on the complexity of our partners technology.

I am proud to share that in the third quarter.

Speaker 3: I am proud to share that in the third quarter, we were able to successfully integrate 15 supply side and five demand side partners into our audience cloud, which compares to two supply side and three demand side partners in the previous quarter. As you can tell, we have seen these integration times reduce quarter over quarter and remain committed to maximizing the number of integrations going forward to increase efficiency and have a faster path towards revenue recognition.

We were able to successfully integrate 15 supply side and five demand side partners into our audience cloud, which compares to supply side and three demand side partners in the previous quarter as.

As you can tell we are seeing these integration times reduced quarter over quarter, and we remain committed to maximizing the number of integrations going forward to increase efficiency and have a faster path towards revenue recognition.

Turning to our expenses technology expenses increased to approximately 777000 from approximately 546000.

Speaker 3: Technology expenses increased to approximately 777,000, from approximately 546,000 in the same period last year. The EuroVier increase was the result of increases in salary expense arising from surge in technology personnel have found, as well as an increased consulting fees, cloud host costs, and non-cash expenses of stock-based compensation and amortization of software.

In the same period last year.

The year over year increase was the result of increases in salary expense arising from a surge in technology personnel head count.

Well as an increased consulting fees cloud hosting costs and non cash expenses of stock based compensation and amortization of software.

Speaker 3: General and administrative expenses increased to approximately 1.5 million compared to approximately 1 million in the state period last year.

General and administrative expenses increased to approximately $1 5 million compared to approximately $1 million in the same period last year.

Speaker 3: The year will be your increase with primarily due to increases in salary expense, primarily arising from an increase in general and administrative headcount, as well as increased stockpages compensation insurance expense, office-related-

The year over year increase was primarily due to increases in salary expense, primarily arising from an increase in general and administrative head count as well as increased stock based compensation insurance expense.

This related expenses and taxes.

Speaker 3: DAP net loss was approximately 2.3 million or 15 cents loss per share compared to a net loss at approximately 4.2 million or $1.3 cent loss per share in the same period last year.

GAAP net loss was approximately $2 3 million or 16 cents loss per share compared to a net loss of approximately $4 2 million or $1 <unk> loss per share in the same period last year.

Speaker 3: The European decrease in net loss was due to increased revenues and a decrease in other expenses.

The year over year decrease in net loss was due to increased revenues and a decrease in other expenses.

Speaker 3: adjusted EBITDA, a non-GAT measure, decreased approximately 1.9 million EBITDA loss compared to adjusted EBITDA loss of 1.5 million in the same period last year.

Yeah.

Adjusted EBITDA, a non-GAAP measure decreased to approximately $1 9 million EBITDA loss compared to an adjusted EBITDA loss of $1 5 million in the same period last year.

Speaker 3: As of September 30th, 2021, the company had a cash balance of $28.7 million. That concludes my financial summary. For more detailed analysis, please reference our forum, TENQ, which we plan to file this week. I will now turn the call back over to Paul, who will discuss some of our major operational updates and provide a general outlook of our business. Paul? Thanks, Josh. Thank you.

As of September 32021, the company had a cash balance of $28 7 million that concludes my financial summary for a more detailed analysis. Please reference our Form 10-Q, which we plan to file this week I will now turn the call back over to Paul who will discuss some of our major opera.

No updates and provide a general outlook of our business Paul.

Thanks, Josh.

I'd like to start with some updates regarding our M&A activity.

Speaker 2: As previously discussed in the second quarter's earnings call, our team has continued to work alongside Lake Street Capital, diligently vetting a number of quality companies that would add a creative value to our growth proposition.

As previously discussed in the second quarter's earnings call. Our team has continued to work alongside Leach Street capital diligently betting a number of quality companies that would add accretive value to our growth proposition.

Speaker 2: At this moment, we're deeply engaged within the due diligence phase with three separate companies and have two non-binding L.O.I.s or letter of intent of which we are confident will not only result in acquisition, but let lessing value to our growth strategy.

At this moment, we are deeply engaged within the due diligence phase with three separate companies and have two non binding LOI or letter of intent of which we're confident will not only result in acquisition.

OLED lasting value to our growth strategy.

Speaker 2: These companies will both vertically and horizontally grow our system ecosystem of services by adding additional direct publisher direct advertising partnerships as well as additional engineering operational and business development resources.

These companies will both vertically and horizontally grow our system ecosystem of services by.

Adding additional direct publisher direct advertising partnerships as well as additional engineering operational and business development resources.

Speaker 2: Though I cannot go into further detail at this time, I am very confident that share holders of Cougain will be satisfied with the set of updates we plan to provide in the near future.

No I cannot go into further detail at this time I am very confident the shareholders of <unk> will be satisfied with a set of update we plan to provide in the near future.

Next our sales team continues to fire on all cylinders as we search for customers and partners that are willing to test and plugged into our audience cloud also trialing the capabilities of Cai.

Speaker 2: Our sales team continues to fire on all cylinders as we search for customers and partners that are willing to test and plug into our audience cloud while also trialing the capabilities of Kai.

Speaker 2: The team members who are tasked with socializing the capabilities of our marketplace and tie continuously report that their prospects are thankful so I'm going to tackle the huge issues of inefficiency and fraud that are impacting your advertising budget.

The team members, who are tasked with socializing the capabilities of our marketplace and tie continuously report back that their prospects are thankful someone is tackling the huge issues of inefficiency and fraud that are impacting your advertising budgets.

One of the last mutually beneficial partnerships, we announced was with the verb Kurt.

Speaker 2: One of the last mutually beneficial partnerships we announced was with the Verbcoot.

Speaker 2: A privacy first on the channel ad platform, which connects advertisers and publishers to people in real time.

Privacy first Omnichannel AD platform, which connects advertisers and publishers to people in real time.

Speaker 2: In essence, the partnership opened up Cubian's Premium Publisher Inventory for advertisers working with VIRV Group and enables Cubian's advertisers the ability to access additional premium publisher inventory from VIRV Group.

In essence, the partnership opened up <unk> premium publisher inventory for advertisers working with FERC.

And enabled <unk> advertisers the ability to access additional premium publisher inventory from Burger.

Speaker 2: Ultimately creating more transparency and efficiency for our respective partners.

Ultimately, creating more transparency and efficiency for our respective partners.

Speaker 2: This deal provides a seamless process for our advertisers to access all the inventory that's specific and relevant to the audiences they're trying to reach and also tremendously impacts our supply-side partners by expanding the number of advertisers that can fit on their inventory.

This deal provides a seamless process for our advertisers to access quality inventory.

Specific and relevant to the audiences. They are trying to reach and also tremendously impacted our supply side partners by expanding the number of advertisers that can bid on their inventory.

Speaker 2: The reason why the Veriford Joe's Cuban Fitties Partnership is because we both share a mission of delivering a fraud-free and efficient media buying experience for our partners.

The reason why they chose <unk> for this partnership is because we both share a mission of delivering a fraud free and efficient media buying experience for our partners.

Speaker 2: Moving on, I'd like to focus on the provided update regarding CHI.

Moving on I'd like to focus on and provide an update regarding <unk>.

Speaker 2: I'm pleased to share that of September 30th, 2021, we have performed a total of 14 chi audits with prospective customers, eight of which were conducted during the third quarter.

I am pleased to share that.

Of September 32021, we have performed a total of 14 Kai audits with prospective customers.

Eight of which were conducted during the third quarter.

Speaker 2: Similar to what I mentioned at the outset of this call, the feedback we received about CHI has been nothing, but positive from customers. We are confident in our ability to ramp up the number of audits performed going forward.

Similar to what I mentioned at the outset of this call. The feedback we received about <unk> has been nothing but positive from customers and we are confident in our ability to ramp up the number of audits perform going forward.

Speaker 2: Another thing to note is that the total number of publishers plugged into our audience cloud decreased quarter over quarter by 298 to a total of 3,277. This decrease.

Another thing to note is that the total number of publishers plugged into our audience cloud decreased quarter over quarter by 298 to a total of 3270.

This decrease in publishers is actually positive.

Speaker 2: as it was Cies reporting that led us to remove fraudulent websites within our audience's cloud. And again, show the power of using pre-bid machine learning to identify where others struggle.

As it was cause reporting that led us to remove fraudulent websites within our audience cloud and again showed the power of using pre built in machine learning to identify where others struggle.

Speaker 2: With CHI, the coubient marketplace quality can seem real time, which websites are being used by criminals to generate fraudulent traffic and completely remove them from the marketplace, resulting in a decrease of overall usage of the marketplace. But that was offset with the inclusion of new-

With Cai the Colombian marketplace quality TTC in real time, which websites are being used by criminals to generate fraudulent traffic and completely removed from the marketplace, resulting in a decrease of overall usage of the marketplace, but.

But that was offset with the inclusion of new marketplace partners.

Speaker 2: As you can see, Kai is truly a game changer and makes this significant impact in solving a real problem.

As you can see tie is truly a game changer and makes a significant impact and solving a real problem.

Speaker 2: With respect to our audience cloud, thanks to the capabilities of TI, we're able to provide our partners and customers in efficient and fraud-free ecosystems.

With respect to our audience cloud thanks to the capabilities of Pi.

To provide our partners and customers, an efficient and fraud free ecosystem.

Speaker 2: as it relates to the chicken and egg scenario that we have consistently alluded to, we've continued to see a large uptick in the fraud-free and efficient audience that we're able to provide for our demand side parks.

As it relates to the chicken and egg scenario that we've consistently alluded to we've continued to see a large uptick in the fraud free and efficient audience that we're able to provide part demand Si partners.

Speaker 2: We are also optimistic that the potential acquisitions we referenced earlier in my comments will add incremental depth on both the advertiser and publisher size of the marketplace by increasing direct publisher integrations along with direct brand partnership.

We are also optimistic that the potential acquisitions, we referenced earlier in my comments will add incremental debt on both the advertiser and publisher sides of the marketplace by increasing direct publisher integrations, along with direct brand partnerships.

Speaker 2: In addition to our sales team conducting their efforts, we've also augmented our go-to-market strategy by attending industry-specific contracts.

In addition to our sales team conducting their efforts. We've also augmented our go to market strategy by attending industry specific conferences.

Speaker 2: Recently, members of our team have attended and at times presented at very well-known industry events in our space, like ad-week, programmatic value, and affiliate summit. These events are an incredible opportunity to meet with industry leaders on both the brand and publish your side of the world and give us a real opportunity and platform to further evangelize coogames value proposition.

Recently members of our team have attended and at times presented at very well known industry events in our space like Adweek programmatic Io and affiliates stomach. These.

These events are an incredible opportunity to meet with industry leaders on both the brand and publisher side of the world and gives us a real opportunity and platform to further evangelize <unk> value proposition.

Speaker 2: We again remain very optimistic and encouraged from the feedback we've received regarding our solution.

We again remain very optimistic and encouraged from the feedback we've received regarding our solutions.

Speaker 2: In closing, the macro issues facing the world economy have stretched their arms to the space of digital advertising. Yet we are in the early stages of proving that the solutions we have built are sturdy, secure, and efficient.

In closing the macro issues facing the world economy have stretch their arms to the space of digital advertising.

We're in the early stages of proving that the solutions, we have built our sturdy secure and efficient.

Speaker 2: I am confident that our Go Forward Plan of partnering with high-quality partners and customers, having aggressive M&A initiatives and perpetually improving our already robust, latest solutions will propel us in the growth oriented trajectory.

I am confident that our go forward plan of partnering with high quality partners and customers, having aggressive M&A initiatives and perpetually improving our already robust latest solutions will propel us and a growth oriented trajectory.

Speaker 2: Thank you, everyone, for your time today. An operator, if you will please transition the call to the Q&A session, you'd be very appreciated. Thanks.

Thank you everyone for your time today and operator, if you'll please transition the call to the Q&A session, we would be very appreciated.

Speaker 1: Thank you. If you would like to ask a question, please press star 1 on your telephone keypad now.

Thank you if you would like to ask a question. Please press star one on your telephone keypad now will be placed into the queue in the order received.

Speaker 1: Please be prepared to ask your question when prompted. Once again, if you have a question, please press star one on your phone now.

Please prepare to ask your question when prompted once again, if you have a question. Please press star one on your phone now.

Speaker 1: Our first question comes from Jack VanderArde from Maxam Group. Please state your question. Hi.

Our first question comes from Jack Vander <unk> from Maxim Group. Please state your question.

Hi, This is Albert speaking for Jack and Thanks for taking my question and congrats on the great quarter.

Speaker 4: my question and congrats on the great quarter. I want to start off with the question on the first partnership and I know it has to be too long since the announcement but I was just wondering if that could provide a better color on it.

Wanted to start off with a question on <unk> for partnerships and I know it hasn't been too long since your announcement, but I was just wondering if that's the point.

A little color on.

Speaker 4: I guess more detail on how it's been going, whether you guys are seeing immediate contribution on revenue yet and if not, when you might expect it to trickle it.

I guess my detail on housing going.

Whether you guys are seeing immediate contribution on revenue, yet and if not when you might expect it to.

Trickle in.

Speaker 2: Sure, and obviously thanks for joining us, Albert. The VRV partnership was a big win for us because this is a company that had a large footprint on both the supply and demand side of the industry.

Sure and obviously, thanks for joining us Albert <unk>.

The first partnership was a big win for US because this is a company that had a large footprint on both the supply and demand side of the industry.

Speaker 2: We basically brought the concept of CHI to them early on, and they were in a position to basically connect to our audience cloud as both a buyer and a seller. So once we find the paperwork, it took us approximately five weeks to get the integration done. So the integration is completed. We are transacting with the VRV group. And typically what happens is you start at a smaller scale. So you're only going to basically give 10 or 15% of your inventory or supply for them to bid on.

And we basically brought the concept of catch them early on and they were in a position to basically connect to our audience cloud as both a buyer and a seller.

Once we signed the paperwork it took us approximately five weeks to get the integration done. So the integration is completed we are transacting with the <unk> group and typically what happens is you start at a smaller scale. So you're only going to basically give 10 or 15% of your inventory or supply for them to bid on.

Speaker 2: As we match up the numbers and everything looks good on both sides, we're going to continue to increase that. And I would expect by mid-December, we'll be at 100% capacity with that relationship.

As we match up the numbers and everything looks good on both sides, we're going to continue to increase that and I would expect by.

Mid December we'll be at 100% capacity with that relationship.

Okay. Thank you for your own information was very helpful.

Speaker 4: information was very helpful and kind of as a follow up relate to that, I need to touch the bit on this on the call, but just in the process of plugging in Polishers partners and advertisers to the marketplace.

As a follow up related to that can you touch.

Touched a bit on this on the call, but just in the process.

Okay, and collision publisher partners and advertisers to the marketplace.

Speaker 4: So, did you guys provide a more detailed on how to plan, how to color on what you guys are doing to improve the race?

Could you guys provide detail on.

<unk> color on the.

What are you guys are doing to improve the rates.

Sure.

Speaker 2: Sure. Typically when companies are building programmatic or advertising technology, they build it with a certain way that you can integrate into their tech. We understood from being veterans in the industry that every brand, every advertiser, every publisher, they have a preferred way of integrating with another partner. So we've created a platform that gives a tremendous amount of flexibility of how people can connect to the audience cloud.

Typically when put when companies are building programmatic advertising technology.

They build it with a certain way that you can integrate into their tech.

We understood from being veterans in the industry that every brand every advertiser every publisher.

They have a preferred way of integrating with another partner. So we've created a platform that gives a tremendous amount of flexibility of how people can connect to the audience cloud.

Speaker 2: So typically when a partner comes to us, we work with them to understand their preferred methodology. Our team then ensures that we can connect and do it in the most efficient way possible. And then we hand it off to our client success team who works with our technical team to complete that integration.

So typically when a partner comes to US we work with them to understand their preferred methodology. Our team then ensures that we can connect and do it in the most efficient way possible and then we hand it off to our client success team, who works with our technical team to complete that integration.

Speaker 2: So what would really have been focused on, you know, over the last two quarters is how do we speed up that integration? How do we get from an agreement, a sign contract?

So what we've really been focused on over the last two quarters is how do we speed up that integration how do we get from an agreement assigned contract.

Speaker 2: to actual revenue recognition. And, you know, we're not quoting any numbers, but we've been successful in adding some automation and some other process that's gonna help us going forward to see that revenue come in a lot quicker than it has in the past.

<unk> actual revenue recognition.

And you know, we're not quoting any numbers, but we've been successful in adding some automation and some other process that's going to help us going forward to see that revenue come in a lot quicker than it has in the past.

Okay.

Okay, great. Thanks, and just one last question for me.

Could you talk a bit about that.

Speaker 4: Would you talk a bit about the digital ad home section of the business, any updates on it, and also kind of related to the recent buzz and the metaverse, if you see any place or opportunities for a clubian to advertise and enter?

Digital out of home section of the business.

Updates on it and also kind of related to the recent buzz in the metal versus if you see any place or opportunities for Colombian two advertising into that space.

Speaker 2: Sure. So to get into the first part, you know, did you lot of home, I've actually started to travel again. Some of the team has started to travel against industry event.

Sure so to answer the first part digital out of home.

He started to travel again some of the team has started to travel against industry events.

Speaker 2: So we are seeing some demand and they're back into the digital out of home side of the industry. You know, we've always from day one kind of looked at digital out of home as a feature within our platform to reach an audience regardless of where they are. So it's been beneficial for us to obviously see advertiser demand come back into that side of the space.

So we are seeing some demand enter back into the digital out of home side of the industry. We've always from day, one kind of looked at digital out of home as a feature within our platform to reach an audience, regardless of where they are so it's been beneficial for us to obviously see advertiser demand come back into that side of the space.

Speaker 2: I think it's going to continue to build up and we hope it gets to a normalized level towards, you know, Q2 or Q3 of next year. But we continue to have those discussions with our partners and try to service them and their needs in the best way possible.

I think it is going to continue to build up and we hope it gets to a normalized level towards Q2 or Q3 of next year, but we continue to have those discussions with our partners and try to service them and their needs in the best way possible.

Speaker 2: Regarding the metaverse, it's obviously a very hot topic right now. You know, we have looked into what this means for advertisers, how they engage with their audience.

Regarding the med averse, its obviously, a very hot topic right now.

We have looked into what this means for advertisers how they engage with their audience.

Speaker 2: And from what we're seeing is advertisers want and need to be involved in the creation of these environments. The question is going to be how do we standardize and deploy advertising that's both relevant, engaging, and real time for the audience.

And from what we're seeing is advertisers want and need to be involved in the creation of these environments.

The question is going to be how do we standardize and deploy advertising that is both relevant engaging and real time for the audience.

Speaker 2: So we've had some very good conversation with partners of hours around.

So we've had some very good conversations with partners of ours around.

How are we going to basically plug in how are we going to make sure that when users are enjoying their experience, they're seeing the right ads and I personally am excited about it because it's one of the newer mediums that we've heard of in the last.

Speaker 2: How are we going to basically plug in? How are we going to make sure that when users are enjoying their experience, they're seeing the right ads. And I personally am excited about it because it's one of the newer mediums that we've heard of in the last 10 or 15 years.

10, or 15 years.

Speaker 2: So we're again, we're involved in those conversations, coving it will be a part of it. And I think it's gonna be a matter of time before we have a more standardized integration and technology implementation into the metaverse for advertisers.

So we're again we're involved in those conversations Kuban will be a part of it and I think it is going to be a matter of time before we have a more standardized integration and technology implementation into the med adverse for advertisers.

Great. Thanks, a lot to look forward too that's all the questions from me again, thanks for letting me ask questions and congrats on the solid quarter.

Speaker 4: Great, thanks, since we all have to look forward to. That's all the questions from me. Again, thanks for letting me ask questions and congrats on the solid quarter.

Great. Thanks Albert.

Speaker 1: Once again, if you would like us a question, please press star one on your phone.

Once again, if you would like to ask a question. Please press star one on your phone now.

Speaker 1: At this time, this concludes the company's question and suggestion. If your question was not taken, you may contact kubian-investor relations team at kubianatgatewayir.com. I'll now like to turn the call over back to Mr. Robert for questions.

At this time. This concludes the company's question and answer session. If your question was not taken you may contact <unk> Investor Relations team at Cobian at Gateway IR Dot com.

Now I'd like to turn the call over back to Mr. Roberts for closing remarks.

Yeah.

Thanks, I just wanted to take a minute thank everyone for joining US again today on our Q3 2021 earnings call.

Speaker 2: Thanks, I just want to take a minute, thank everyone for joining us again today on our Q3 2021 earnings call. I especially want to take a minute and thank our employees, our partners, our investors and customers for their continued support.

I, especially want to take a minute and thank our employees our partners our investors and customers for their continued support.

Speaker 2: We really appreciate your interest in Cougain and look forward to updating you on our next call. Operator.

We really appreciate your interest in <unk> and look forward to updating you on our next call operator.

Speaker 1: Thank you for joining us today for Kubea and Third Quarter 2021 Ernie's conference call. You may now...

Thank you for joining us today for <unk> third quarter 2021 earnings Conference call you may now disconnect.

Speaker 5: The host has ended this call. Goodbye.

The host has ended this call goodbye.