Q1 2022 Tremor International Ltd Earnings Call
Welcome to tremor Internationals first quarter 2022 conference call at this time participants Arnold listen only mode with a question and answer session to follow at the end of the presentation.
This conference call is being recorded and a replay of today's call will be made available on the Investor Relations section of <unk> website and will remain posted for the next 30 days.
I will now hand, it over to Billy Eckert Senior director of Investor Relations for introductions and the reading of the Safe Harbor statement. Please go ahead.
Thank you operator, good morning, everyone and welcome to Tremor International's first quarter ended March 31, 2022 earnings call.
With us on today's call are Overdrew, Kirk Chairman and Chief Executive Officer, the Companys Chief Financial Officer.
This morning, we issued a press release, which you can access on our website at investors that traveler International Dot com.
During today's conference call, we will make forward looking statements.
All statements other than statements of historical fact could be deemed as forward looking.
We advise caution and reliance on forward looking statements.
These statements include without limitation statements and projections about our anticipated future financial results, including discussions about our revenue margins expenses and guidance for Q2, 2022 and future business.
Dissipated benefits of travelers current and future potential strategic transactions product launches and commercial partnerships.
A continued accelerated future growth in both U S and international markets.
Expected strengthening upturn horse products had reached expected ability to continue repurchasing shares investing in technology sales and marketing and evaluating strategic opportunities to acquire companies.
Forward looking industry and economic statements and outlooks and other statements concerning the expected development performance market share or competitive performance relating to our products or services.
All forward looking statements are based on information available to us as of the date of this call.
These statements involve known and unknown risks uncertainties and other factors that may cause our actual results to differ materially from those implied by these forward looking statements, including unexpected changes in our business.
More detailed information about these risk factors and additional risk factors are set forth in our filings with the U S Securities and exchange Commission, including but not limited to those risks and uncertainties listed in the section entitled risk factors in our registration statement on form 20-F.
It does not intend to update or alter its forward looking statements, whether as a result of new information future events or otherwise except as required by law.
Additionally, the company's press release and management statements. During this conference call will include discussions of certain measures of financial information and I F. RF in Nanhai FRS terms.
We refer you to the company's press release for additional details, including definitions of non <unk> items and reconciliations of Ifr S to non <unk> results.
At this time it is my pleasure to introduce Overdrew occur CEO of tremor International over please go ahead. Thank you Billy and welcome to everyone joining us today.
I will begin by giving an overview of our results and strategy followed by our Chief Financial Officer Forgive me and he will review the highlights of our Q1 2022 financials.
We will then open the call up for questions. The first water.
Followed an incredible 2021, two trillion, which was our strongest year of growth and profitability in the company's history and represents what we believe to be best in class performance across the tech industry.
Industry.
During the quarter.
Technology and data driven business platform focused on CTV and video expanded and enhanced capabilities, while continuing to generate strong customer adoption.
Despite challenging market conditions that impacted advertiser spending such as supply chain constraints deflation rising interest rates and they're willing to claim that began on February 24th where we last announced earnings treble was able to achieve strong revenue growth free cash flow.
On vision and profitability.
We were also able to continue maintaining industry, leading adjusted EBITDA margin, which is critically important during periods of economic uncertainty.
As a testament to the strength and durability of our end to end business model.
We will continue to maintain a strong focus on generating robust profitability as we believe this positions us well for the current environment is where the future growth opportunities.
Trimble operating model enabled us to be opportunistic and continue investing in technology sales and marketing to drive organic growth continue repurchasing shares and have the means to engage in meaningful M&A in the bucket, where valuation premiums have decreased to drive long term shareholder value.
Our ability to achieve these strong fundamentals and our success in Q1 was largely driven by the strategic bets. We intentionally chose in 2019 to become an end to end platform.
We believe in this model is stronger than ever due in part to the growth and profitability.
To continue achieving.
For the three months ended in March.
31, 2022, regenerated contribution ex deck of $71 million compared to $63 million in Q1, 2021, representing 30% organic growth.
And adjusted EBITDA of $33 6 million compared to $27 5 million in Q1, 2021, which represents one two times growth.
We continue to experience growth and strength within our CTV individual food greater adoption of our self serve offering.
Recipe of our revenue streams and customer base help us successfully navigate a complex industry environment.
I would appreciate that are driven end to end strategy drove a 42% adjusted EBITDA margin in Q1, 2022 on a reported basis and 47% margin on net revenue basis. We believe these margins continue to represent the industry best in class.
The profitability of the business position us to weather current macro related headwinds as well as future potential.
<unk> duration in the market environment, and more importantly, take advantage of future growth opportunities.
We also have strong conviction in our end to end technology and business platform as we.
We are seeing others in the industry began to realize the destock of operating model and platform connect advertisers and publishers in the most efficient way.
It provides simplicity better installation against changes to data privacy regulation strong access to data reduce audience flows key pricing advantages and it's supportive of the industry trend towards supply path optimization.
And recent commentary certain ssp's indicated that they are seeking to expand their direct relationship with brands and agencies.
On the DSP side, we have various companies indicate that they're expanding their media relationship and capabilities and allowing advertisers and brands to plugged directly into inventory.
Make no mistake, whether these companies are saying you directly or not they are demonstrating that they believe operating end to end at least to some extent is beneficial for their business and their customers.
We view this very positively as we have built a fully integrated and scales completely end to end technology platform and because we have robust experience operating this way for more than three.
As others in the industry are just through simply realizing the benefit of this model for customers shareholders. The company's tremor with anticipated. This trend and is the relationship with brands agencies media partners and data providers for years.
This relationship across the AD tech ecosystem contributing to our ability to achieve strong growth and profitability, while effectively positioning us to take advantage of both industry and <unk> specific growth catalyst.
Expected.
In the second half of the year.
Specific to travel we expect to monetize all exclusive and unique global ACR data partnership immediate relationship with visa and fully integrate CTV AD server experience.
Within the industry, we believe the seasonally strong fourth quarter will be further boosted by advertiser spend associated with the soccer World Cup as well as the U S midterm elections.
Our platform is now comprised of a fully integrated demand side platform data management platform supply side platform CTV AD server and award winning in our greatest studio.
Across these components, we provide sales and managed services offering BNP programmatic offering and performance offering across all screens for customers regardless of their service level requirements.
If you're in video continued to remain key growth driver for <unk> as we saw CTV spend grew 21% in Q1 2022 to $46 2 million compared to $38 2 million in Q1 2021.
Video revenues, including CTV also continued to represent the overwhelming majority of our total contribution ex Tac at approximately 80%.
If any of our build platform invest budgets and attention in evolving their offering and marketplaces from display focus to video we believe our long standing is substantial footprint capabilities and partnerships in this fast growing segments will result in strong continued growth for trimble.
We also believe effort will become more meaningful and experienced growth over the next several years as several major streaming services has expressed interest in potentially supporting advertising or have already launched it supported channels Cynthia.
This platform evolution show long term out and variability to the CTV advertising market and reflect the steady consumer preferences for saving money on subscription and willingness to view ads across the valuable content.
At the industry level treble remains well positioned for changes in the privacy landscape.
Adversely impact at the company's.
Our end to end technology platform contained a significant and growing footprint well first party and third party data.
DSP and SSP share the same audience graph, which eliminate that loss during cookie sync.
We also believe we have a minimally exposed to cookies, we support major universal solution in the market and we are developing all of them tremble Universal I'd solution.
Contexture solutions, such as the content level targeting solution announced in December also better insulate us against privacy changes.
This unique combination of factors give us confidence that we will remain able to continue meeting our customers' needs. Despite these privacy changes.
As we mentioned during Q1, we saw continued evidence of lower advertising spend due to combination of factors, including inflation rising interest rates supply chain constraints in certain sectors, such as automotive due to continued chip shortage and they're willing to Craig.
<unk>.
While we are seeing increased growth in bookings as well as programmatic activities. So far in Q2 compared to Q1, and we are also seeing challenged sectors, such as automotive and travel showing initial signs of recovery.
Macroeconomics and market pressure could continue to challenge advertiser spend in the near term.
We believe however that our highly diversified customer and revenue base will continue to position us well to offset any substantial adverse impact on our overall business.
Further underscoring the durability of our tech platform and business model.
During Q1 at this point in Q2, we have achieved significant progress that enhance and expand our platform and believe we are well positioned for positive industry and travel specific catalyst expected in the second half of 2022.
We are very excited for exclusive and unique global ACL data partnership with visa.
Subsidiary of <unk>, we should expect it to accelerate our U S and international growth over the second half of 2022 and beyond.
Key markets, such as Canada, Australia, the UK and Germany.
I sense, it's going to be one of the largest Oems in terms of global market share and as ambitious to continue significantly expanding its reach cell and customer recognition over the next several years in the U S and internationally.
Three days, the operating system for major Oems, including <unk>, two <unk> and others and we intend to use this meaningful at ACR data partnership flow segmentation measurement and targeting purposes.
The availability of ACR data on the open internet to give advertisers choice in their media mix. So they can leverage that data to run holistic strategic campaign that reach consumers wherever they are viewing content.
While we have been leveraging ACR data for several years, our partnership with Vida is exclusive and broad based across data and media and enable us to offer a unique and desirable capabilities data sets and advertising opportunities for our customers.
In ethic threat to have access to ACR data outside of the walled gardens that is accessible on the open internet.
This that that will be available in our stevia intelligence solutions, which already reached 44 million U S households, and will enable us to offer our customers differentiated campaign strategies and optimization.
Well as exclusive blended and customized services.
Paul the marketing Kpis.
We believe we that currently reaches approximately 20 million smart Tvs worldwide and we believe this reach will grow substantially in the coming years.
Video experiences relationship with treble beyond that that in general selecting unruly as its strategic SSP, while also adapting spirit to enhanced control of CTV ad delivery.
Brands and agencies will now have to leverage unwilling to advertise on the exclusive content of Tvs for which Vida served as the operating system.
Travel is also specifically poised to capitalize on positive industry growth catalyst expected in the second half of the year, such as the soccer World Cup and the U S midterm election cycle.
He is an official sponsor of the FIFA World Cup, we set to take place in Qatar During November and December .
As an official sponsor <unk> is expected to achieve substantial increase in global awareness. During this event. We believe this will expand the benefits of our relationship with Ices TV operating system Vida.
As I said simply the continued to pursue additional future sports sponsorship and exclusive content opportunities. We believe travel will be a major beneficiary of this advertising monetization and we expect that customers will increasingly seek to advertise on this unique and exclusive content and leverage this.
Differentiated that we.
We also believe we will see industry tailwind from the U S met them election cycle. We generally brings a heightened level of video AD spending from candidates during the second half of the year.
So far in 2022, we expanded upon our business win momentum from 2021.
In February we announced new partnerships that expand the reach of our data driven television intelligence solution to 44 million U S households.
TB intelligence, such rebel wrap up by providing global advertisers with access to blend the TV data for targeting and measurement to make it easier for marketers to run TV campaigns with precision on CTV and all screen video.
Activating and blended datasets across the open Internet represents an incredibly important mechanism for advertisers to have the freedom to cure it.
Media mix that meets their campaign objectives.
We expect to continue to increase the scale and reach through various partnerships, including our exclusive global ACO partnership with visa.
We also secured a partnership with Comscore in early April which better enhance installation against changes in the data privacy regulation for our customers.
The agreement makes available Commscope cookie free predictive audience for activation across our platform and allows <unk> customers to leverage cookie free prepaid audience targeting to reach granular be able audience based on video level contextual signals within CTV.
Our SSP unruly added 87, new supply partners during Q1 2022, including 36 in the U.
Gross critical growth first because it's both news entertainment and lifestyle, including OTT apps from leading broadcast and multichannel video programming distributors businesses.
We also continued to generate strong adoption of our self service platform for publishers unruly CPR in.
Which experienced a 128% increase in Pnp spent during Q1 2022 compared to Q1 2021.
Additionally, tremor video and that over 75, new advertisers logo. During Q1 2022 across critical growth verticals in travel CPG and health care, which reflected one of the most significant quarterly logo increase in companies too.
Truly.
Our creative studio continue to impress garnering cognition and awarded growth major platform such as did you say business inside of the drop in media post.
And serve as a key differentiator for tremor.
If the enhanced customer engagement in a meaningful manner create stickier relationship and its revenues and profitability to each campaign it touches.
Truly experienced a 21% year over increase in creative request. During Q1, 2022, and we were particularly excited to see international spend of truly creative products grew 225% year over year compared to Q1 2021.
Truly cast and QR code for CTV ads remains its most popular feature in Q1 and was included on 34% of all creative campaigns.
Additionally, in Q1 2022 alone.
Really executed 20% more custom data driven video campaigns.
In all 2021, and if continue to see strength so far in Q2.
We are also extremely proud for truly to have recently been awarded did you say 2022 content marketing award for best use of data fully campaign produced for fuel, Michigan The state of Michigan Tourism brands.
Finally on our last quarterly earnings call. We were pleased to announce a 75 million dollar share buyback program.
The buyback program launch on whilst one and during the first quarter, we repurchased $1 billion 684510 ordinary shares and the average price of 570 to 89 pence.
Total Q1 repurchase plan.
Approximately $9 7 million pounds of $12 7 million.
The strength of our balance sheet as well as our profitability and strong cash generating abilities enable us to continue buying back shares at what we believe a discounted level.
Should be not uncover acquisition opportunities that benefit tremor and its investors in the near to intermediate term.
We would consider extending and increasing the buyback program and also evaluate additional opportunities to return value to shareholders.
Now my pleasure to turn the call over to <unk> to review our financial results.
Thank you Ofer, we were excited to see another record quarter of revenue and profitability and strong business momentum.
We're pleased to see similar trends as we progress through the second quarter today.
Today I will review highlights of our Q1 two.
<unk> performance.
Some of the key financial and operational drivers for the corporate.
Turning to international and achieved an outstanding quarter in Q1 revenue and adjusted EBITDA propelled by continued impressive organic revenue growth in our efficient operating model.
Q1, 2022, net revenue increased 13% to $71 million compared to $63 million in Q1, 2021, all of which was driven from strong organic growth.
Growth was particularly impressive given the fact that Q1 tends to be the seasonally weakest quarter for epic and Amit well known macro pressure.
These supply chain constraints.
And the ongoing will increase.
CTV spend on our platform grew 21% in Q1.
As you want.
One.
We are well positioned to continue to grow as more business is increasingly being transacted through programmatic platform and we expect performance to continue to move towards ETE and programmatic in the future.
During the same period, our video net revenues grew 9% year over year.
We also continue to generate very strong adjusted EBITDA margin, while investing in the critical areas of our business that can drive future growth.
For Q1, 2022 we generated adjusted EBITDA of $33 6 million umbrella, which reflected 22% growth from Q1 2021.
Adjusted EBITDA margin of 42% of reported revenue and 47% almost net revenue.
We believe our end to end platform gives us a competitive advantage there is some point solution.
We have developed a highly profitable business model with high efficiency around operating costs, leading to operating leverage and economies of scale.
Can achieve significant profitability due to our ability to meet cost across both sides of the product end to end platform, while maximizing revenue opportunities.
We also achieve cost efficiencies as we own and operate our global server infrastructure, which result.
It can be lower cost than if we were to operate exclusively on third party cloud services.
As mentioned previously we believe with best in class industry margin and operation network stability in Q1, 2022 generated an adjusted EBITDA margin of 47% of net revenue.
Turning to our cash flow, we generated net cash from operating activities of $61 million for Q1 2022.
As of March 30, <unk>, we had.
$378 million of cash and cash equivalents with no debt.
We also experienced 100% free cash flow conversion during the quarter.
Non ISR as diluted earnings per ordinary share.
<unk> for Q1 'twenty two.
Since then in Q1 2021, an increase of 20% year over year.
Finally, I will now turn to our outlook.
For the second quarter of 2022, we expect net revenue to be in the range of 75 to 80 million and.
In Q2, 2022, adjusted EBITDA was approximately $40 million.
We also expect our Q.
Adjusted EBITDA margin as a percentage of course, reducing ex Tac to be approximately 50%.
Particularly during periods of economic uncertainty.
Thanks <unk>.
We're focused more on companies that can achieve significant and consistent profitability to remain well capitalized and able to take advantage of Q2 growth opportunities.
<unk> was the <unk> end to end operating model enabled strong fundamental and we will continue to maintain an emphasis on generating robust profitability.
This gives us confidence that we can remain able to meet our adjusted EBITDA target in January best in class EBIT adjusted EBITDA margins in the queue.
You then need a challenging growth environment.
This guidance underscores that our mobile focus on CTV and think that's maintained growth and continued excellent profitability.
The forecast also factors in current muscle related headwinds.
As inflation supply chains constrained.
Rising interest rates, the ongoing Ukraine wall and potential recessionary economic indicators.
We believe our growth profile and efficient and durable end to end model enables continued strong profitability with investments to grow significant operating leverage and a healthy balance sheet, well positioned well to continue taking advantage of the rapidly growing digital advertising in CPE market.
Both in the U S and internationally.
With my remarks completed I'll turn the call back to Walter.
Thank you Siggi driver was able to achieve great success during the first quarter, which we believe positions us well for the industry and <unk> specific catalyst expected in the second half of 2022.
We continue to see evidence that our data driven CTV and video focused end to end technology platform reflects the best model for advertisers media partners treble and its shareholders.
Our ability to generate significant cash and profitability fuels, our ability to invest in technology sales and marketing to grow our business organically continue to evaluate M&A opportunities, it's rewarding valuation and continue buying back shares.
Our conviction in the model is stronger than ever for these reasons and because we are seeing others in the industry attempts to replicate our model that we have been capitalizing Felipe.
We also continue to fulfill our promise to enhance and expand our CTV data and video capabilities, which now accounts for approximately 80% of our net revenue and 93% of our programmatic net revenues.
We are excited to be in a position to start monetizing our spirit acquisition as well as our unique global ACR data partnership and media relationship with visa.
Over the seasonally strongest second half of 2022 poetic, which we expect to be boosted by the U S midterm election cycle and the soccer World Cup, which I think is an official sponsor of.
We believe we have built a strong technology and resilient end to end business model to serve our customers holistic needs and that we are in the REIT industry at the right time with a strong global partners.
I have now been in the FX industry for 25 years and can honestly say that I'm truly excited for what the future can bring for traveling internationally.
Operator, we will now open the call for Investor questions.
Thank you we will now begin the question and answer session. If you do have a question perhaps zero then one on your Touchtone phone.
If you wish to be removed from the queue that zero to.
Using a handset you may need to pick up again, if you're using a headset you may need to pick up the handset first before pressing the numbers.
Once again, if you do have a question zero one on your Touchtone phone.
And please standby.
Alright, and our first question is from Matt Swanson from RBC capital markets.
Alright. Thank you so much for taking my question.
Maybe picking up kind of where you left off the durability of leverage in the model really shined in the quarter being able to beat the adjusted EBITDA guidance, despite the topline headwinds.
It seems like there's a similar dynamic in guidance for Q2 could you talk a little bit more though about the back half of the year, specifically are there going to be incremental investments needed to be made around that.
To drive that second half revenue or are those kind of investments, we're seeing you make right now.
Thanks, Matt for the question.
Yes, I think that our end to end business model is what's allowing us to have this.
Magnificent proved.
Profitability margin.
As we said I think in Q4 <unk>, we are investing more in our <unk>.
R&D Department product and sales and marketing of course to keep.
The organic growth.
Although the very challenging macro environment.
Again to your question I think that period is already fully integrated into unruly and it became the AD server.
Vida list items, So I think all the things you mentioned and also went.
We will of course enable us to have an amazing age too of course everything is according to what the macro will throw at us.
Thank you.
Ofer the one positive thing maybe from a Q1 sentiment standpoint is this really a lot of good news around CTV, especially about Netflix.
So thinking about this a couple of different ways.
One could you maybe talk about what the impact on the overall CTV environment is from the amount of inventory potentially being added to the market between Netflix and Disney HBO, Max and Apple and.
And then kind of more from a sentiment standpoint, what you think it says that the largest subscription streaming service.
Need to add AD support and maybe what that says about the long term health of a bot.
Sure. Thank you Matt for the question. So first of all in previous conversation, we spoke about it in and I said that basically when you look at this market of CTV. It will it would follow what's happening.
<unk> desktop and after that in mobile, meaning that people are willing to pay with their time in order to see more of it in order to get subscription.
So let's move from free.
And this will extend us of course to CTV and we see this phenomena really happening now also with it.
This declaration in conversation about moving this big as opposed into become partly a vote and I think that the.
It's a good statement because it Joe.
Yes.
The addressable market for us is growing and I think the two set of products that is really the first line of products targeting the first line first line of content targeting and targeting with HCR and our TV intelligent fraud product and television library, and so on I think that it would be much more.
Again, it is small advertisers to buy more media taking into account the toward this effort will open market also.
They opened with basically.
And I think that the amount of demand that is coming from CTV is really great and it can serve all the needs for more of these companies that are basically joining this model and I think that it would just increase the size of our business and give us more opportunities in the market. So we are really excited about it.
We feel that it's even came before we thought that it was done because we felt that it will maybe up in the next two or three years from now I think that it will happen probably faster.
Alright, Thank you Dan and the last point is that it's been probably in the.
The movement for linear and CTV, which is also welcome for us because it basically sales are up and serve our purpose of interest with more budgets will move to digital.
Yes.
Well go to our next question is from Mark Kelley from Stifel.
Great. Good morning, Thanks very much.
I wanted to get your thoughts on.
With the Upfronts this week.
I'm curious how much visibility you tend to get.
For the end of this year and the start of next year.
After this week is over or perhaps during the week and second just on CTV. Obviously, you got some healthy growth in the first quarter it.
It did decelerate a bit from the fourth quarter, just would love to get the moving pieces.
As to what caused the deceleration. Thank you.
Mark just to add to.
Can you sharpen the question about what is the explanation that youre asking about <unk>.
To move.
What is basically bringing this upside in the CTV front.
No I guess.
In Q1, the CTV growth was up 21% and in Q4. It was in the high 40 is just curious to get the Delta.
Yes, it's still healthy growth no matter, how you slice the purchase would love to get a sense for why the deceleration from the Q4 exit rate.
Okay. So first of all.
Since this is our main focus already for a long time and most of it is also indicated by.
A lot of our basically product development and R&D efforts.
Part of the efficacy because we believe that this is the future and is coming along with other things that we are basically developing overtime, which is I mean.
Does that does.
And I think that when you look at that I think that we built a very strong portfolio of products that basically serve our clients and today when they look for CTV for targeting film coming to US we have to remember that all to the ACO that attitude basically be available.
In a very meaningful manner from the.
Second half of this year, we'll basically support us in between just the feature.
The market because when you look at that is open web.
There's not anyone else that basically got this amount of this size of the database.
We see all the potential yesterday occasionally there was.
<unk> that was talking about the U S. There is 10% already.
CTV world that it belongs to.
Using Iceland, Toshiba Toshiba Spotify since basically and this is a reachable market from ACI that tunnel Formful next.
A couple of months, we are now and I think that.
Accelerate even more.
It will extend it even more.
The potential and the growth of our CPP in the future because we have like a very interesting and unique offerings in the market, which is Asia.
Which is not part of the world.
Regarding the upfront to the CTV.
We are we.
We feel the growth and we see the potential of repeat bookings as we said that our company gain.
Next thing already this quarter in the current quarter. So we feel confident that CTV is something that is growing and that is.
Strange situation now.
One side, we feel that booking.
Setting until and its growing but that is moved.
Moving to the market.
Basically we're taking into account when we're looking at the quarter, but we still believe that in the overall industry.
We will be able to basically deliver growth, but we expected at the beginning of June .
Alright, Thank you very much.
Yes.
Our next question is from Michael Hill from Fintech.
Great. Thank you.
Can I just check if there's any detail that you can give on the percent of your AD spend that's from all sides.
On <unk> say if.
If theres any sectors.
20% the outspend.
Or is it really quite diverse mix of sectors that you have on the platform.
Again, I Couldnt understand.
I will take that question okay.
Michael Hey, Thanks for the question I think that.
Sure.
Out of CPG that is more than 10%.
All of our other verticals or less than that so we are quite.
Diversified, though not as strong.
Automotive of course, because of the supply chain constraints.
Ah is a little bit lower than it was in the past I think that today, it's something around 3% in the past it was like six 5% 6%.
And other than that of course, we are seeing.
Growing trend within the drive it in a fatality like Bob.
Their mix environment.
I think that I answer your question.
Yes.
Thanks very much.
Thank you.
Yeah.
Our next question is from Andrew <unk> from Raymond James.
Hi, Thanks for taking my questions I wanted to dig in a little bit on the programmatic versus non programmatic revenue breakout. This was kind of a third consecutive quarter in a row of like 40% plus growth in the performance side of the business I was wondering any of the drivers behind that and does that change your thinking and the strategic importance of <unk>.
That side of the business and then.
Secondly, on the M&A outlook with valuations coming in I know you spoke about it briefly on the prepared remarks, but has that has the.
The the coming in of valuations changed your thinking around what's available from an M&A perspective, and what could be on the shopping list. Thank you.
I will start with an M&A, we are always looking for to grow in both ways organically and also through an M&A and we have the cash and the capabilities of doing that not just cash but also the knowledge and the experience so far to basically to though is our company that we are going to acquire.
And more importantly, how we integrate them fully into our business just to indicate that the for example last year in October we acquired <unk>.
And it's already fully integrated at the end of the quarter, the first quarter into a muni.
So of course, I think that the market is moving to our direction basically.
Because last year, everybody looks at the public company valuations and ask for even more on the private home and I think now things are moving back to to something more reasonable that we will be.
Makes sense for us to make an acquisition and to bring value to our shareholders.
We're looking and examining these opportunities all the time pilot to be the growth.
We are generating.
On the organic growth.
The second question.
The second question that you asked us about performance. So performance is growing because I think that the people in our performance team are doing a great job around that and they are growing.
Basically that the.
Offering.
And the business with the.
Partners that we bring along and so on and I think that we said that I said that the reset with the path that I feel that in the future also CTV will feel that there would be more and more connectivity to performance and it will serve us well that I think that our knowledge our basically the ability to bring also DMA for performance via drilling market.
Due to the CTV can help us to open new channels that will be able to we will be able to benefit together with our partners around that would be something that we are putting a contributing in the next 12 to 18 months.
Thank you and just to add just to add to what <unk> said I think we have like.
Clients that are using both channels I E mail using the programmatic.
That form and the performance charm and some time you know we're putting their focus on the performance side and some quarters are putting there.
Fourth on the programmatic front, so it's nourishing both sides.
Of the one arm that we have.
Excluding Antigua because we're bringing clients on one end and then we are executing sometimes on the other end advisers.
Sure.
Okay.
Thank you Christian.
Thank you.
And our next question is from Andrew Boone from JMP Securities.
Alright. Good morning, Thanks for taking my questions. The press release talked about an acceleration in the back half of 'twenty two understood. The contribution from political as long as the World Cup, but is there anything you can help us to better understand those comments.
And then secondly, as we think about just capital allocation may just kind of.
Extend to Andrew's last question, but as you think about capital allocation and the $75 million buyback. It looks like you got executed $10 million in the quarter.
Shares are trading at three times EBITDA, just given the market downturn, how do you guys thinking about capital allocation in terms of M&A person fat and then what's the possibility to accelerate the buyback and do something more meaningful just getting more assurance and training. Thank you so much.
So I will answer the question about M&A I would give like more context I agree with you that we have.
When you look at the peers and some of them.
I think that we have we have cash and we have the ability to acquire and it makes sense. We are trying to bring value to our shareholders in different manners.
Share buyback so he can elaborate more about those we're extending and accelerating the reach around that.
Basically it's managed by following a more modern and when you are in the block deals you cannot basically changes.
And when he too.
Revenue led the chance to do that we can consider that of course regarding the M&A. We just we just mentioned it and I would minutes as mentioned it again I think that we are in a great position.
Because when you look at the market I think that with our cash and cash generation.
You keep bringing in even.
Challenging periods of time or basically no real.
Part of.
Quarters like usually quote Q1 software, but we still generally just amount of.
Both EBITDA and cash I think is giving us the ability to do this moves into to basically accelerate to grow the buyback and on permanent debt to do an M&A deal that could be meaningful to the company and this is what we are looking to do it.
In searching in the market for the right targets in order to.
Get it into into our company basically and to grow also through acquisition and they'll just have gotten too.
Last year, basically we grew 60% 64%.
In transition and translation basically because we give our message on February 24.
When Russia basically invaded grade. So it's just like there was a lot of noise around that in the market changed after that the bones. So, but we grew 64% plus deal will radically different when we look at that we are able to keep growing godaddy Cleveland that we made like a very big jump last year and we feel.
That now.
Our hotel to do it or they may because the company ready for that.
We have again, we have the means the knowledge and experience to making a good acquisition and we're looking for the right opportunities.
So again I want to elaborate more on the buyback.
Yes. So the question we did you know.
$1 7 million.
Of repurchase only through match because we started.
The program on first of Meso till today, we almost recently.
Of course, when looking outside and looking at the valuation of <unk>.
Makes economically to.
To keep buying our shares but if we are thinking about the long term value to our shareholders.
As Arthur mentioned and as you are there is there are a lot of opportunities out there in a lower valuation than we.
We sold before and in order to scale, the business and to enjoy on the synergies and to grow our business I think that M&A makes sense, even the car.
Current SRAM affiliation, but of course, if we will not.
Managed to conclude and M&A, we may in hand or in.
Kris the repurchase plan.
Thank you and I'd now like to turn the call back over to Ofer <unk> for closing remarks.
Thank you everyone. Thank you for your participation and thank you for your questions I think that.
We've demonstrated it again that the end to end solution that.
But we built the platform that we built is a very strong one is generating great results from Liz Dunn of investment to our shareholders for growth.
Stability and this profitability is extremely important to dispute. This time of uncertainty when you look at the market and we are able to keep growing our EBITDA keep growing our profitability and cash flow I think that this is a very important in.
This market condition and it will enable us to do much more things in the future in order to grow our position in the market and to keep our leadership position in this important steps.
CTV that.
CTV that video.
And we believe that all the changes that we mentioned on the cause of movement of people from <unk> to April is basically enhancing our ability to do bigger players in the market with the video Doctor in CTV.
And this is why we are here.
We are looking at the second half of deal with anticipation because we are about to launch our partnership with Vida, which is very meaningful for us we have to look at that as one of the biggest OEM companies and basically provide us exclusivity on <unk> ACO.
That enabled targeting and measurement and we are taking in about a company that already now is about 10% of the U S Oems and with their plans and their growth path and also with the international markets, but they are very active in we believe that we can which will help us to grow our business, even more and to be a dominant player in the CTV.
Business and to provide a lot of capabilities to the open web as we talked about it because when you look at that as I had mentioned until now they feel at that time.
It's basically the appropriate yield.
Small group of companies with the walled gardens, and now basically with US we will be able to open the two.
Two more partners to more media partners and to even more people to enjoy from this data for targeting and measurement.
One side, but also from the supply side. So we are very excited of the position that we are in I feel that we are in very good spot.
Strategic point of view and we are looking ahead of future growth.
So thank you everyone.
Thank you, ladies and gentlemen that concludes today's call. Thank you for participating.
You may now disconnect.
Okay.
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