Q1 2022 Integral Ad Science Holding Corp Earnings Call
Hello, and welcome to the I a S 2022 first quarter financial results Conference call.
At this time all participants are in a listen only mode.
After the speaker's presentation, there will be a question and answer session.
To ask a question. During this session you will need to press star one on your telephone.
You require any further assistance please press star zero.
It is now my pleasure to introduce Jonathan Schaffer head of Investor Relations at I S.
Thank you good afternoon, and welcome to the I S 2022 first quarter financial results Conference call I'm joined today by Liza, One Schneider CEO and Joe Pergola CFO before we begin. Please note that today's call contains four.
Looking statements, we refer you to the company's filings with the SEC for more details about important risks and uncertainties that could cause actual results to differ materially from our expectations.
On today's call. We will also refer to non-GAAP measures a reconciliation of non-GAAP measures to the most directly comparable GAAP measures is contained in today's earnings release available on the company's IR site investors got integral adds dot com.
With these formalities out of the way I'd now like to turn the call over to our CEO , Lisa Ed Schneider, Lisa you may begin.
Thanks, Jonathan and welcome to everyone joining today's call our first quarter results exceeded our expectations for the period and despite the global macroeconomic and geopolitical climate, we are providing positive financial guidance for the rest of the year.
We are executing on our first strategy investing in differentiated technology and accelerating our product roadmap and time to market with targeted acquisitions. We're also creating value for our customers through our focus on customer obsession and innovation, which is fueling our growth.
Our solutions has never been more relevant marketers rely on ias to protect and amplify their brands across our digital media landscape that is rapidly evolving and increasingly difficult to navigate.
As the massive digital advertising market continues to grow at double digit rates Ias ensures that our customers' advertising created is viewable by human in brand safe brands beautiful environments and in the desired geographies increasingly marketers are also looking to I.
As for contextual targeting and campaign optimization.
According to E marketer today's global digital advertising market, excluding search has grown to over $300 billion as the leading digital media quality company, we offer our ROI solutions to help marketers invest in high quality media and drive greater returns.
And efficiencies on their digital advertising spend we empower marketers with first to market high quality differentiated products, we bring deep integrations with major platform partners that drive innovation, and we are leading the way and promising channels like social media and.
CTV.
During the first quarter, we realized growth across our business highlighted by a 53% increase in programmatic revenue.
Total revenue for the quarter grew 33% to $89 $2 million adjusted.
EBITDA reached $24.8 million added 28% margin.
We also achieved net income profitability for the period of $1 2 million or one cent per share.
Overall demand trends remain positive despite macroeconomic uncertainty as reflected in our outlook for the second quarter and full year.
We have a high degree of visibility into customer demand for Ias's products based on where we operate within the ecosystem.
Our global sales team has closed impressive customer wins in recent weeks with marquee brands, including progress at J P. Morgan Chase and Activision Blizzard to name a few.
Before I dive into the quarter in more detail I want to share with you two organizational changes.
As you saw in today's earnings release, Joe will be leaving <unk> to pursue new opportunities.
He will remain as CFO through the reporting of our second quarter results and the filing of our 10-Q in August to ensure a smooth transition of his responsibilities. We have begun the search for a new CFO and have engaged an executive search firm to assist with our efforts.
Joe has been a valued member of our senior leadership team since joining Ias in 2019.
He brought financial structure and discipline to Ias as we transform the company.
He then lead the finance team through our IPO and first year as a public company.
And behalf of the board management and the entire Ias team I'd like to personally thank Joe for his leadership counsel and commitment to ensuring the company's success.
We have a strong finance team with a deep bench that gives us a great foundation to support our future growth.
In addition, I'm excited to announce today that jani dose since joined US This week and the newly created role of Chief Commercial Officer.
Yeah, and he will be responsible for leading our sales and marketing efforts.
He brings extensive operational experience both in startups and large tech companies, including Twitter and Yahoo.
He has a proven track record of driving growth by closely aligning sales marketing and product teams. He approaches businesses through a customer in commercial lines, having worked with <unk> for nearly three years at Yahoo. I've personally seen this ability to accelerate businesses, particularly in the program.
<unk> expense, we are thrilled to have Johnny joined the team.
Turning now to our recent business performance in more detail I'd like to provide an update on our four growth pillars, including programmatic social media CTV and international.
Let's start with programmatic, which for the first time represented more than 50% of our advertising revenue in the period.
During the quarter, we generated strong demand for our context control solutions.
Context control represented 41% programmatic revenue up from 38% in the fourth quarter of 2021 Con.
Context control includes both avoidance and targeting solutions. We currently have over 400, contextual avoidance and targeting segments of highly relevant content.
Our contextual avoidance solution represents the vast majority of context control revenue today are avoiding solution enables marketers to identify content unsafe and unsuitable for their brands as defined by Gartner The global Alliance for responsible media.
In March alone, we had 64 net new contextual avoidance activations.
80 of our top 100 accounts now use context controlled for avoidance up from 76 of our top 100 accounts last quarter.
The top 100, we are also seeing increased customer penetration and adoption, which represents significant opportunity for future expansion.
The increased adoption of context controlled for avoiding uniquely positions Ias and contextual targeting arena as well marketers value with single integrated solution, which reduces complexity.
We are introducing new ROI tools within contextual targeting to enable marketers to better plan their campaigns and seamlessly optimized inactivate targeting segments.
These tools calculate reached simplify activations within GSP and track segment performance.
Lastly, within programmatic, we made enhancements to total visibility our quality path optimization or Q P O solution, which helps marketers optimize media spend and drive campaign outcomes.
We introduced a dashboard and our signal user interface to provide marketers with a unified view of their global campaigns.
The free version of the total visibility dashboard within signal offers insight into how much spend is wasted on unusable unsafe and fraudulent impressions. It also provides quality C. P M or QC P M, which helps marketers understand both the quality of media they are buying.
And the cost efficiency at which is being purchased marketers can then access premium services to optimize campaigns based on supply and quality financial metrics.
As an example, we conducted a study with visa EMEA to demonstrate the value of our <unk> solution.
He didn't want to develop the strategy to reduce waste and increased spend in working media by determining the most efficient buying pass.
I S monitor spend in over 18 European markets.
I ask quality path optimization, including redirection of spend away from low performing SSP and demands and comparing private marketplaces to open market buys. These are significantly improved efficiency and increased campaign rois.
In social media, we are driving technology innovation for a growing number of platforms.
Following the consumer shift to a digital first lifestyle user adoption of social media has reached unprecedented levels in our social media AD Receptivity report from February we found that social media AD spend is projected to reach $82 billion in the U.
By 2023, and 96% of consumers currently used at least one social media platform.
We're very pleased to expand our partnership with Tic toc into new markets and products, our pre bid in fee brand safety targeting solution for tick Tock classifies video image audio and text in the live feed up tick tock consistent with garden categories.
<unk>, we launched our tick tock prepaid brand safety solution in the U S, Germany and France.
Nick talk and I asked her also expanding pre bid brand safety to additional markets, including Australia and the U K.
In addition, we are thrilled to announce earlier this week the launch of the global G. A for measurement of kick talked view ability and invalid traffic. Our IV T. This will allow marketers to understand the performance of their ads within the Tic Toc platform.
By partnering with Ias marketers have access to an increasingly comprehensive set of solutions to manage their campaigns on top.
Marketers go whether users are at a recent investor event, Ron Omron Senior director of Global media at Mars, The home of countless and beloved consumer brands and a highly valued ias customers said tick tock is a fast growing platform at massive scale.
Already there are highly engaging their advertising inventory works and there's a strong targeting measurement capability.
The technology, we built in house for Tictoc is scalable and portable to other platforms by promoting open industry standards for measurement and accessing content and mobile apps.
First of its kind integration at this scale.
In the next few months, we will launch in beta our postpaid brand safety measurement solution for Twitter. This product addresses the need for marketers to better understand the user generated content or tweets displayed adjacent to their ads and Twitter feed further demonstrating I S as strength.
In classifying multimedia content prevalent on social platforms.
On our last earnings call, we discussed our acquisition of AI video platform contact.
Contacts accelerates our existing multimedia classification capabilities their technology enables us to go beyond standard frameworks, especially in video rich environments, such as social platforms and CTV. Our first integration using the combined platform will become available in the coming.
Months.
Moving to CTV, where we remain at the forefront of innovation.
We acquired publican nine months ago, and they're very excited about our progress to the public.
Publix added video publisher and SSP integrations, a unified AD auction at Stitcher, and an AD server to our toolkit.
The combination of Ias is buy side being that in public is access to vast amounts in CTV data on the supply side has enabled us to innovate faster and provide unprecedented transparency into the CTV market. That's a win for marketers publishers and viewers.
We are delivering greater transparency in CTV. So that marketers are comfortable shifting spend from traditional linear TV in the first quarter, we began offering insights to marketers on where CTV ads run based on the device App channel and content.
Including genre category and rating, we continue to add more publishers, who are partnering with us to share this data and bring transparency.
Since the first to release show level CTV brand safety based on garden guidelines, providing marketers with critical incentives. We are also helping CTV publishers better optimize and monetize their inventory.
Public has closed several exciting wins recently direct Tvs using public as unified AD auction to help capture more budgets they have shifted to programmatic channels publicly.
Publicly announced an agreement with Hearst television to provide server side ad insertion or SSA.
And unified auction services. In addition, future today the leader in AD supported streaming and Molotov T V. The leading over the top platform in France are live with publica for SSA.
During the quarter, we integrated our CTV prepaid fraud solution within yard to DSP.
Marketers, who access CTV inventory via Yahoo, DSP will have protection against fraudulent traffic with access to broad filtering pre bid segments. Yahoo represents the third major DSP today to integrate our CTV pre bid fraud solution.
Additionally, I asked was selected as an NBC Universal certified measurement partner I asked is now certified for audience verification, enabling us to provide marketers granular media quality measurement across NBC Universal's platform.
We continue to invest in building our <unk> capabilities for long term success in April .
We announced the appointment of Sean Galligan as Chief revenue Officer at Publica, Sean brings extensive published or in advertising technology and experience that will be instrumental as we extend public as meaning market position globally.
International represents our fourth growth pillar and is a key point of differentiation for I guess.
The trend with marketers has been to partner with one verification provider globally across multiple markets channels and products International revenue represented 32% of revenue in the first quarter in EMEA, where we maintain a market leading presence the tragic Warren.
Ukraine led some marketers to pull back initially on their campaigns as they re allocated spend and adjusted creative. However, we saw demand return in EMEA and has since stabilized we.
We have no full time employees in Ukraine, or Russia, and do not recognize revenue in either country. We stand with all people who have been impacted by this conflict, including our Ias colleagues with loved ones in Ukraine.
The prolonged global supply chain delays, and resulting chip shortage impacted campaign spending Q1 for a handful of customers, particularly in EMEA and the tech telco and automotive verticals, where I S. As the dominant provider we.
We expect any future impact from supply chain delays to be limited to me select customers, which has been factored into our outlook for the year.
We have taken steps to extend our leading presence in key international markets, including EMEA with investments in senior management and talent.
Earlier this year, we welcome Charbagh Sabo as our new head of EMEA and over 15% of our new hires in Q1 were in EMEA.
Chavez leadership, we are accelerating our expansion in European markets, including Denmark and Norway.
We're also expanding our international presence in new and existing markets in APAC, including India, Indonesia, South Korea, Taiwan, and Vietnam, where our first mover advantage is key.
These are markets reliant on demand primarily from global marketers as well as from local brands. We are investing in resources to serve these markets. We've made 13, new hires and APAC since the beginning of the year, including a new head of the South Korean markets, who joined us in.
April .
Additionally, our investments in the agency partnerships at the local level have enabled us to expand customer relationships into new countries in Europe , such as Lafayette and he's tonia.
Beyond our four growth pillars, we are extending our media quality solutions into emerging formats, such as audio.
Last month, we launched a measurement data for audio AD measurement and IV T for postpaid verification that works with all O M. SDK compliance platforms. The O M. SDK is an open standard framework initially developed by Ias and now implemented widely across the.
Three for measurement applications.
And I asked we pride ourselves on being customer obsessed we incorporate customer feedback into the latest reporting enhancements to our I S. Sick note reporting platform.
We now offer a much desired first to market unified view of a marketers global campaigns and signal by aggregating campaigns that a global regional national or local level marketers can evaluate campaign performance based on custom filters and optimize outcomes tailored to their.
Our most important kpis and with that I'll turn it over to Joe to review the financials.
Thanks, Lisa and thank you for your kind words, it's been a privilege to work with the leadership team and everyone at I S. Since joining I'm incredibly proud of what we've accomplished together over the last few years I've enjoyed building and leading our finance organization that was ready to excel as a public company and has demonstrated its ability to do just that.
During a smooth transition over the next few months I look forward to the next phase of my professional career.
Turning to the quarter, we delivered strong first quarter results, which set the stage for a positive full year performance as a reminder, I S. As an agile and scalable business model focused on high revenue growth and margins. We have significant reoccurring revenue that provides us with visibility and predictability, we partner closely with our adverse.
Pfizer's and publishers to build multi year minimum impression commitments as well as fixed fee agreements independent of the media rates, We command premium CPM rates for our solutions, including context control video and CTV products.
Our results for the first quarter include the contribution from public acquired in the third quarter of 2021.
Total revenue increased 33% to $89 $2 million ahead of our prior guidance of $85 million to $87 million. We saw strong contributions from marketing customers, including Disney Walmart American Express T mobile and H&R block.
Programmatic revenue for the first quarter grew 53% year over year programmatic revenue surpassed advertiser direct revenue for the first time, representing 54% of total revenue from advertisers. We expect this trend to continue moving forward with programmatic revenue representing the majority of total revenue from advertisers.
Context control represented 41% of total programmatic revenue up from 38% in the 2021 fourth quarter driven by continued adoption of our contextual avoidance solutions on.
On a combined basis total revenue from advertisers, including Advertiser direct and programmatic revenue represented 84% of our first quarter revenue.
Our advertiser direct revenue, which includes open web and social platforms increased 6% year over year.
We continue to see impression volume shift from the open web where display impressions were lower to social platforms with increased video adoption.
Video commands a pricing premium and accounted for 45% of total advertiser direct revenue unchanged from the 2021 fourth quarter. Despite what is typically a seasonally slower period in Q1.
Social accounted for 40% of Advertiser direct revenue in the period also consistent with the fourth quarter.
Supply side revenue from publishers increased to $14 $1 million, which includes publica total supply side revenue represented 16% of our first quarter revenue.
We continue to grow our leading global market presence.
International revenue increased 11% in the quarter and represented 32% of total revenue.
As anticipated our current revenue mix between Americas and rest of World reflects public which has been U S focused to date, we are working to leverage our existing global footprint to expand public his presence internationally.
In addition international revenue for the period reflects the impact of the conflict in Ukraine as well as the impact of supply chain delays in the automotive and tech telco verticals on select customers, particularly in EMEA.
Breaking down our revenue for the quarter by geography total revenue for the Americas was $66 million up 47% EMEA.
EMEA was $21 $7 million up, 14% and APAC with $7 million up 3%.
Gross profit margin was 81% compared to 83% last year, reflecting increased hosting fees and other costs as we scale the business.
non-GAAP operating expenses, which exclude stock based compensation expenses and other items for comparability grew 22% versus our top line growth of 33%, reflecting our efficient operating model as well as lower costs due to COVID-19.
Total operating expenses for the first quarter of 2022 reflects favorable teeny and facilities expense.
Stock based compensation expense for the period was $8 $1 million.
Moving onto profitability and performance metrics.
Adjusted EBITDA for the first quarter, which exclude stock based comp and other one time items increased 32% year over year to $24 $8 million.
At a 28% margin.
The combination of topline growth and strong adjusted EBITDA margin performance enabled us to once again reached a rule of 60 for the period.
Net income for the quarter was $1 2 million or one cent per share.
Net income reflects lower interest expense as a result of reduction of long term debt and our debt refinancing at a lower interest rate.
We're pleased to achieve net income profitability in the period for the first time as a public company. We will continue to focus on profitable growth based on our efficient operating model. We believe adjusted EBITDA remains the best measure of profitability for the company.
Our first quarter net revenue retention or NRI was 126%, reflecting our ability to meet the growing needs of our customers with value added solutions.
We did not experience any churn in our top 100 customers in the quarter.
Total advertising customers grew 11% year over year to 2100 and for advertisers.
Our total number of large advertising customers with annual revenue over $200000 increased 7% year over year to 184.
In terms of our financial condition, we ended the first quarter with cash and equivalents of $82 $3 million compared to $73 2 million at December 31.
Turning to our guidance for the second quarter ending June 32022, we expect total revenue in the range of $97 million to $99 million adjusted.
Adjusted EBITDA for the second quarter is expected in the range of 29 million to $31 million for the full year 2022, we are increasing the midpoint of our guidance for revenue and adjusted EBITDA to reflect our strong Q1 performance and positive business outlook.
We now expect total revenue for the full year in the range of $418 million to $424 million.
Adjusted EBITDA for 2022 is now expected in the range of $129 million to $135 million.
Public is revenue contribution in the first quarter keeps us on track to realize our expectation for public to represent approximately 8% of our total forecasted revenue for the full year.
You additional modeling points, we expect Q2 and full year gross margins at similar levels to Q1, as we continue scaling the business to accommodate our growth.
We expect adjusted EBITDA margin expansion throughout the year as we move into our busiest seasonal periods.
Based compensation expense for the second quarter of 2022 is expected in the range of 10 million to $11 million.
Full year stock based compensation expense is now expected in the range of $42 million to $45 million.
Shares outstanding for the second quarter are expected in the range of approximately $155 million to $156 million. We continue to expect full year shares outstanding in the range of $155 six to $156 6 million.
In conclusion, we're off to a strong start and expect overall positive demand trends to continue throughout the year.
I'd now like to turn the call back over to Lisa.
I'd like to thank everyone on today's call for their ongoing support.
Also like to express my gratitude to the entire team at Ias for their hard work and commitment.
Our employees are the engine of our growth and we're proud to be recognized by comparably is one of the best places to work in 2022, and the New York Metropolitan area, along with comparatively recognition of Ias the best marketing teams 2022.
We look forward to executing on our strategy and reporting on our progress Joe and I are now ready to take your questions operator.
Thank you.
As a reminder to ask a question you will need to press star one on your telephone to withdraw your question press the pound key.
And our first question comes from the line of Brent Thill with Jefferies.
Good afternoon, many are asking as it relates to the advertising market, if things get a little tougher here given the macro headwinds.
It seems like in your category you can actually grow your share even even if we saw some near term headwinds and I think many are just curious your thoughts about how you position yourself into potentially stiffer economic headwinds and how how you see the defensive nature of your portfolio are playing out with this year.
Hi, Brian Great question. So yeah, we have a strong quarter for Q1 and strong momentum into Q2.
Some of the macro economic events of Q1, both what happened is happening in Ukraine.
And then some of the chip shortage.
<unk> impact on a handful of advertisers marketers did pause momentarily, but then as you can see in March of Q1, we had a strong month in March and we're seeing strong months in Q2, so feeling really good about our momentum feeling really good about the fact that our sales team is.
<unk> and Upselling and cross selling across our existing accounts and then also putting new wins on the board.
Great. Thank you just a quick follow up on <unk> can you can you just comment I know that super early but what what that what that means that with that relationship.
So with Tic Toc Tic Toc continues to be a very important strategic partner for us as you might remember we launched a multimedia classification technology last year. It was a pre bid tech.
<unk> technology that we rolled out in three markets U S, Germany and France.
Ran over 100 campaigns with.
With the product with over 15 Marketer's, we're now scheduled to expand that product into Australia, and UK and as we announced earlier. This week. We're also launching a.
Our postpaid Mezz measurement solution for view ability and invalid traffic using our SDK. The great News is now will offer a full pre bid postpaid solution for marketers and as you know marketers they want to be where the users are in the users around the social plat.
So we're really looking forward to expand this solution and also roll it out into additional markets.
Thank you.
Thanks Brent.
And our next question comes from the line of Jason <unk> with Oppenheimer.
Thanks to just.
One I want to follow up a little more ticked up so is there a way to understand like how like when a client says okay I want to test it like how does it pace I mean do they go like one test.
All in in that country for whatever the solution is so like okay. Do you have pre bid once you have postpaid.
So like how does it like scale is there any reason why 100 like a client if you supported that country than a client wouldn't be running 100% of their spend in tick Tock for example through.
Tools and then <unk>.
Second question.
As we kind of are heading into the summer in the upfront.
It seems like Theres, just given how much linear TV ratings are down.
There's going to be another seismic shoots of money from linear video and I guess, just how are you thinking about positioning the company to benefit from that and just kind of some of the conversations are going on.
Around upfronts and programmatic guaranteed in and all of that thank you.
Sure Great question. So the good news about the multimedia classification tech that we built for Tic Tac. It's built for scale. So it's built for global scale. The product is also portable so right now on tick Tock, we're able to classify video image audio and tap.
<unk> granted when you're running at in different markets with different languages. It also has to be.
Adjusted for the local languages that it's running in but our plan with Tic Toc is to roll it out.
To a dozen markets or more again, it also requires ensuring that the market adoption ramps to and that marketers that so far we've received very positive feedback on the products. So the intent of Arctic talk solutions absolutely to scale it.
Across multiple markets.
Or the global marketers interested in investing more in tic Toc and want to rest assured that when they run their branded campaigns on tick tock, especially in the live feed it's running in brand safe and brand suitable environments.
In terms of your second question regarding Upfronts and the shift from Lynn linear to video. We're full steam ahead with C. T V. As I like to say, it's the early innings of a long game, but there is such Greenfield ahead, with CTV and I couldn't be more excited about <unk>.
Product pipeline right now that we're building both for publishers and marketers and we've made incredible progress over the last nine months since acquiring publica, both enhancing transparency for marketers so that they better understand where their ads are running.
I'm programmatic CTV in terms of our product pipeline with CTV. We're focused on three key areas first is new MRC accreditation square, where partnering closely with the MRC to ensure our CTV products accredited also ensuring that we're scaling garb.
Brand safety across our products and also innovating media quality.
Measurement. In addition to that we also launched a P. M P, which combines both data and product capabilities. Both from I S. M. Publica again to ensure we're offering high quality programmatic CTV inventory at scale for marketers.
Thank you.
Yeah. Thanks, Jason.
And our next question comes from the line of Mark Kelly with Stifel.
Great. Thank you very much.
I just wanted to dive into the guide just a little bit more.
So it sounds like maybe there's a little bit of conservatism baked in given the supply chain issues.
And the Ukraine situation and everything else going on in the world.
I want to make sure that's the.
The case, given the healthy <unk> beat and then lumber.
Number two I guess.
You spent some time talking about CTV, obviously in your prepared remarks, and obviously on some of the last questions that you just feel that.
But love to get your thoughts bigger picture on Disney plus and Netflix with ads I guess what are your expectations there in terms of.
A meaningful driver for that.
The transition away from linear.
Digital and then what that could mean for free.
For you guys. Thank you.
Yeah. So thanks, Mark the first question regarding the guide as I stated before we're feeling very positive about the momentum that we're seeing in the business. We also feel very good about the guide.
<unk> for Q2 and for the full year and we'll just continue to focus on executing our product roadmap and deliver differentiated products for our customers.
<unk> C T V and the announcements recently with Disney plus and Netflix I see it as goodness for the advertising.
Community.
It was interesting news that came out but we see this more as a probably a 'twenty 'twenty three.
Lift to our business, but we're watching closely to see.
When both the platforms will be rolling out.
AD based offering.
Perfect.
Thank you Lisa.
Okay. Thank you.
Your next question comes from the line of Brian Fitzgerald with Wells Fargo.
Thanks, guys.
<unk> made a mid this amount announcement of an initial brand suitability partner for news feed during the quarter a smaller player in the market. Just wondering if you could give us an update there are they still engaged in a in a broader process around news feeds any color you can provide.
And then just wanted to confirm if there are some issues in the macro any thoughts on how that plays out between price and volume in the AD market and if and if pullbacks are mainly around media CPM. We assume you wouldn't see much of an impact any color there.
Yeah.
Sure. Thanks fits.
So the first question about matter. So meta continues to be an important strategic partner for US we work closely with matter we've been partnered with them.
For many years and they did announce that they are working on an alpha beta products brand suitability as product that would run within the live news feed something marketers have been clamoring for.
We are one of the badge partners with meta and we look forward once that product gets big to be partnered with meta most likely towards the end of the year. So once we have more news to share on the meta partnership.
Be happy to share it on an upcoming call in terms of macro trends and impact on price and volume.
Interesting is when you take a look at pricing and volume you know the reality is we've seen pricing bifurcation over the last few years as we continue to accelerate both in programmatic and we saw additional higher value products like contextual, which we're taking it.
Vintage of this shift away from display over to video as more and more consumers are consuming video content and you double that with what's going on with CTV and Theyre just explosion of the adoption of CTV. It just gives us momentum to further access.
The rate of pricing upside in the future.
Got it thanks, Lisa I appreciate it.
Thanks, Brett.
Thank you and our next question comes from the line of Mark Mahaney with Evercore.
Okay. One question I wanted to ask because tried to get the impact of public on the the first quarter results and is there a way to do that or last quarter I think on an organic basis I think ex public of the growth was something like 21% year over year any way to compare with the growth was like this quarter.
On those on that level.
Yeah, Hi, Mark this is Joe so with public guys, we called out last quarter, we fully expect them to make up about 8% of our full year revenue for 2022, and they continue to track towards that we're really pleased with the business the Windsor, putting up on the board and the and the.
Large pipeline that they're building.
So.
That's the target for public.
And we continue to see them grow and expand with AD seasonality through from Q1 to Q4 and accelerate the business.
Okay.
And then overall would you any.
And I'm sorry, if you already covered this earlier any verticals any advertising verticals of strength or weakness to call out.
CPG continues to be a strong vertical for us.
As you can imagine this environment, especially in EMEA, we have seen some isolated pockets with auto.
Having some impacts with the supply chain shortage, some isolated client issues other than that TPG Tech telco.
Globally, all of our verticals continue to accelerate.
Okay. Thank you very much Joe.
And our next question comes from the line of Raimo <unk> with Barclays.
Hi, This is Frank on for Raimo. Thanks for taking my question just on the new customers added in the quarter could you provide some color into how many of those were greenfield versus competitive wins.
<unk> seen any real shift in the competitive environment. Following the acquisition in the space recently, thank you.
Sure Frank I'm happy to answer that so.
The sales team, they're firing on all cylinders what was great about heading into 2020 is we have a fully loaded sales team. So we've filled the majority of our sales positions globally.
And they put some big wins on the board for Q1. These were three fortune 100 accounts seven digit deals jump balls with competitors like my kind of win accounts like progressive Activision J P. Morgan chase them getting back to the <unk>.
Previous question about verticals, we are very diversified.
And our business runs across all of those were all of the verticals and these three wins reflect that.
So it's great to see these wins on the board. The other thing that's great to see is we're accelerating how quickly we can activate accounts and start generating revenue quickly and we've created a playbook for the team and sharing the playbook out. So we're getting these accounts up quickly.
In addition to that the other wins that I was actually going through this data before the call that we're seeing is our mid market.
Vertical is growing nicely like high high double digits year over year with some significant wins.
That range above that top 200 accounts, so we're ensuring that both with our existing accounts or 2000 advertisers around the world, where both cross selling and Upselling plus driving nice new wins and winning deals in these jump balls against our competition.
Yeah.
Very helpful. Thank you.
Yeah, Great Great question. Thank you.
Your next question comes from the line of Andrew Merrick with Raymond James.
Thank you for taking my questions.
On the social platform expansion it seems like a lot of the expansion strategies are kind of around.
Sort of piecemeal or a couple of products or markets at a time I guess, how much of that limiting factor. There is the social platforms themselves wanting to limit the scale or scope at first versus kind of the sheer number of opportunities that has in front of them and potential capacity constraints.
Yeah, I can take that great question, Andrew so in.
In social where we see the big Big well have an opportunity is offering brand suitability solutions within the live feeds of social platforms right. So we launched first with Tic Toc offering a full end to end solution pre bid postpaid mezz.
<unk> coming out Twitter is following tick tock, and then I spoke to matter earlier, but spending a lot of time with marketers when you hear what they really need on social is they want to be where the users are end users are spending their time within the live feeds of social platforms. So it.
We'll take some ramp time getting these products up and running across multiple markets multiple languages, but we're very very excited about the opportunity. That's ahead with the live feeds of social platforms and again launching differentiated products on behalf of our market.
So that's where we see the real opportunities within the live feed.
Thank you.
And our next question comes from the line of Dan Salmon with BMO capital markets.
Okay.
Great.
Afternoon, everyone.
I've got two questions similar to what I asked.
One of your competitors yesterday.
The first is some noise around the ecosystem lately around <unk>.
How media quality companies create their products, especially such as contextual targeting how publisher data is used for that.
Lisa Obviously your company has been mentioned in some of those reports so just be here interested to hear your view on that.
And whether or not you feel like there's any sort of pension I guess in your relationship with partnered with publishers. These days.
And then second.
IP addresses largely being removed from the digital AD ecosystem increasingly for privacy reasons.
You don't track individual people, but.
I believe you do use it as your in your methodology for some of your products. So could you just talk a little bit about how.
Lots of IP address may or may not impact your thinking.
Great question, Dan and I'll take them in order. So the first question on publishers. So you can see it in our Q1 numbers, we continue to grow our publishing business. So nicely. It's a testament to our strategic tight relationships with our publishers who really.
Lie on our solutions to ensure that they're offering high quality media with the publishers. The data that we process. So we process a lot of data, but the data is public data that's available on the open web on the social platforms and the data as you know.
Dan is about the AD event, so the what and the where has nothing to do with the who so.
Some of the news that you've been reading about you know we continue to just drive hard on behalf of our publishers.
And then in terms of the IP addresses.
The only thing we do with the IP addresses is we use it to further enhance our fraud detection and fraud technology. So this shift that you're seeing I don't see it really impacting our business and again, we just ensure that we're processing right.
Data and building trusted relationships with our partners.
Okay, great. Thank you.
Thanks, Tim.
Thank you I'm showing no further questions at this time, so with that I'll hand, the call back over to CEO , Lisa with Schneider for any closing remarks.
Thanks again for joining us on today's call we're off to a strong start for the year. Despite the current macroeconomic uncertainty we remain encouraged by the positive demand for our solutions as highlighted by our full year outlook, we are focused on delivering profitable growth through it.
Innovation and execution and look forward to updating you on our progress.
Okay.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating and you may now disconnect.
[music].
Okay.
[music].
Okay.
[music].
Okay.
Sure.
[music].
Okay.
[music].