Q2 2022 AdTheorent Holding Company Inc Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to Ad Thirant's second quarter 2022 earnings 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.
Please be advised that this conference is being recorded. I would now like to turn the conference over to your first speaker, David DiStefano with investor relations. David, please go ahead.
Good afternoon and welcome to adnerirt' second quarter 2022 earnings call. We will be discussing the results announced in our press release issued after the market closed today. With me today our adtherirt's Chief Executive Officer, Jim Lawson, and Chief Financial Officer, chuck Jordan.
Before we begin, I'd like to remind you that today's conference call will include forward-looking statements based on the company's current expectations.
These forward-looking statements are subject to a number of significant risks and uncertainties, and our actual results may differ materially. For a discussion of factors that could affect our future financial results and business, please refer to the disclosure in today's earnings release and our other reports and filings with the Securities and Exchange Commission.
All of today's statements are based upon information available to us today, and we assume no obligation to update any such statements, except as required by law.
We will also refer to both GAAP and non-GAAP financial measures during the call.
You can find the reconciliation of our GAAP to non-GAAP measures included in our press release posted to the investor relations section of our website at www.adtherit.com.
All of our non-revenue financial measures we discussed today are non-GAAP unless we state otherwise. With that, let me turn the call over to Jim.
Thank you, David, and good afternoon, everyone.
Thank you for joining our second quarter 2022 earnings call. During today's call, I will provide an overview of company results for the second quarter of 2022 and we'll discuss key drivers of that performance.
I will also review what we are hearing from our customers.
and how this has informed our guidance for the third quarter and the remainder of the year.
Then I will turn it over to Chuck for a more in-depth look at our results, after which I will briefly contextualize our guidance and then we will take your questions.
In the second quarter, we generated 42.5 million in revenue, up 6.5% year over year, adjusted gross profit of 28.3 million, up 6.4% year over year, and active customers grew by 44 active customers, or 15% year over year, to 331 at the end of the second quarter.
Growth in the quarter was led by our healthcare and retail verticals.
and by our connected TV or CTV, and direct access offerings, all of which were up very strong double digits, or in the case of CTV, triple digits.
Importantly, these are opportunities in which we are investing most aggressively, and we are heartened to see these investments paying off.
Even with the lighter than expected revenue, we delivered $7.3 million in EBITDA above the high end of our guidance range issued in May, representing over 25% margin.
And we did this while investing behind people and technology that will power AdTheorem for years to come. For example, based on current headcount, by year end our go-to-market team will have 17 more fully ramped sellers than year end 2021.
And in the first half of the year, we build 21 key tech, product, data science, analytics, and strategic partnership positions.
all in a tight hiring environment.
We will start to see the real benefits of these hires in late 2022 and throughout 2023.
In short, we had a highly profitable quarter while investing for the future, and we have a better business now as a result.
I want to put this in the context of the unfolding macroeconomic environment.
what we are hearing from our advertiser customers.
It has been a challenging and unusual few months.
with negative macroeconomic sentiment.
increasingly driving delays, pauses, or postponement of advertising campaigns.
and causing advertisers to become less transparent about future spending.
Some are now projecting spend in weeks or months instead of quarters or fiscal years.
Others have deferred decision making or lowered spending forecasts.
This has reduced our visibility into future campaign activity.
Supply chain and other idiosyncratic business disruptions.
Also, continue to pressure results. For example, airlines and hotels pausing advertising because flights and properties are fully booked.
In addition, against this backdrop, ramp time for our new sales tires has been a bit slower than planned, although we remain confident that this exceptional group of talented and proven industry leaders will have a meaningful impact on the business in late 2022 and throughout 2023.
As a result of these macro considerations...
Our business planning and guidance reflects an increased level of conservatism about which campaign opportunities we assume will be executed in full and on time.
We've also made significant proactive adjustments to our second half spending plan.
to adapt to changing market dynamics.
including substantially curtailing hiring in the back half of 2022.
And, if necessary, we have additional levers to flex spending up or down as market conditions dictate.
This will enable us to maintain a double digit, adjusted EBITDA margin for full year 2022, while investing behind initiatives that extend our technological lead over competitors.
Our investments will be more surgically focused on the highest value opportunities to advance our business near term.
including our best-in-class CGD solution.
our new direct access transaction model.
and a Transformational Adjunct Health Initiative.
I will discuss each of these in more detail shortly.
despite the near-term pressures.
Brands must still advertise to drive their businesses.
lessons learned following the COVID shutdown are fresh in advertisers minds.
Those who pull back too much lost out on sales when conditions improved.
And we are confident that the investments we have made and will continue to make.
ensure we will be positioned for accelerating growth when things improve as they always do. In the meantime, we are working closely.
when things improve as they always do. In the meantime, we are working closely with customers.
helping plan how they can use our platform and solution.
to drive an immediate and profitable return on their marketing investment.
Now I would like to walk through some highlights from the quarter and our near-term investment focus.
Starting with CTV.
Add Therian's unique machine learning powered advancements.
discussed on our last few calls, have further increased our differentiation.
in this dynamic and rapidly growing channel, and we are seeing impressive results.
DTV revenue grew 107% during the quarter to over 4 million, as compared to 2 million in the second quarter of 2021.
Customers are seeing value in our enhanced machine learning optimized version of programmatic CTV which we have brought to market as A plus CTV.
For example, in the quarter, we helped a nonprofit advertiser drive efficient donations, utilizing a mix of CTD and display, leveraging valuable data from the so-called upper funnel, meaning awareness advertising tactics.
to inform our predictive models and drive higher conversion rates in the lower funnel, meaning the more transactional and performance-focused advertising tactics.
Our conversion influence reporting showed that consumers who received both Ad Theorant CTV and Display Ads convert at a 2000 plus percent higher rate.
Then if exposed to the CTV ad alone.
and a 46% higher rate than if exposed to only the display app.
As a result, we drove an approximately 300% return on ad spend for the client, three times above its benchmark. As a result, our foeidi will be at an loss for our hthank certified client to argue and
we continue to enhance our CTV offering.
And in the second quarter, we rolled out Dynamics CTV.
This personalizes a viewer's experience using location, time, and weather signals.
For example, a tourism board in a warm weather destination can serve a different version of its creative based on temperature or other weather conditions in the individual's location.
With this new solution, Adthene can amplify a brand's messaging with many different creative iterations.
without the need to build out individual video assets.
And we have several exciting advancements in the pipeline for the back half of the year and for 2023.
I would also like to talk about Ad Daren Help.
Healthcare is already our largest industry vertical. Through the first half of 2022, we added 37 new healthcare and pharma active customer advertisers year over year.
and enjoyed strong double digit growth driven by our ability to use privacy forward ad targeting methods to drive healthcare advertising outcomes more efficiently than other platforms.
In the second quarter, we further advance our Ad
This allows us to incorporate privacy-friendly claims data into our algorithms.
further increasing the predictive accuracy of our models.
solidifying our position as the most data-driven, performance driving, and privacy-forward digital advertising platform in the sector.
We also advance our go-to-market plan for our healthcare vertical during the quarter.
deploying dedicated healthcare leadership in teams.
and educating customers about our unique value proposition.
It is early, but extremely positive feedback from a number of large existing and potential customers suggest we have an unprecedented near-term opportunity.
to accelerate our foothold in this sector.
which in 2020 spent $7 billion on advertising.
The upfront investment behind this transformational opportunity has been made and will benefit us for years to come. We will share updates about this enhanced Ad Dairn Health offering in coming quarters.
Finally, I would like to comment on our efforts in retail and CPG.
As I noted, we drove double digit year over year growth in our retail vertical.
driven in large part by earlier investments that enable us to target online and offline sales simultaneously by layering our CDB capabilities onto sophisticated machine learning models which optimize towards the lower funnel metrics.
For example, during the second quarter we partnered with a large retail brand.
to execute a full funnel campaign.
utilizing the upper frontal tactics of CTV and video.
in conjunction with lower funnel tactics of display to drive heightened online sales and site traffic.
We saw that users exposed to both video or CTV and then display converted at a 390% higher rate than those exposed to a single tactic only, highlighting that users exposed to the full funnel of campaign elements converted at a much higher rate.
Lastly, we will continue investing strategically in other verticals such as CPG.
During the second quarter, for example, we formalized a partnership with Catalina to optimize in progress campaigns based on in store sales attributed to ad-driven media.
Catalina has access to 22,000 multi-outlet retail stores nationwide and collects purchase data from more than 420 million loyalty cards through retailer point of sale systems.
by pairing Catalina data with AdDarence machine learning and predictive targeting capabilities.
At Theron is able to make real-time campaign optimizations across mobile, desktop, and CPB devices.
to maximize sales for its CPG clients.
shifting focus to our technology.
I'd like to give a few quick updates about our ongoing machine learning and platform development.
His work is core to who we are and where we are going.
We believe that our industry generally relies on stale, inefficient, and ineffective ad targeting methods.
cannot deliver the advertiser value offered by ad here.
Most demand-side platforms, or DSPs,
are engineered to target databases of digital IDs.
whether they be cookies or audience segment IDs.
We offer a disruptive alternative to that status quo based on machine learning and predictive decisioning that will lead the digital advertising industry into the post ID era.
Each quarter and further into this goal, we operationalize and automate within our platform and across our Vertigly solution.
new and innovative machine learning advancements and data partnerships.
Again, our business premise is that we target ad impressions with the highest statistical likelihood of driving a customer conversion event. We don't chase user IDs.
In Q2, we were pleased to be issued a USPAT.
data learning and analytics apparatuses methods and systems.
recognizing one of our valuable ML-based advertising innovations.
which we leverage as part of our cost per action.
or CPA, and KPI optimization capability suite.
This and other innovations enable us to use advanced ML and statistics.
to score ad impressions and drive KPI performance for customers.
We made a number of critical platform enhancements in Q2 which further separate our platform from the alternative programmatic media buying platforms.
Among them, we advance our capabilities in the area of predictive contextual advertising.
which we offer as an alternative to standard contextual advertising.
which is essentially ad targeting based on publisher content categorization. For example, think surf sports ads to fishing websites.
We use impression specific predictive scoring to identify the impressions.
within contextually relevant properties, which are most likely to drive specific KPI conversion.
contextually relevant properties, which are most likely to drive specific KPI conversions, such as website sales.
based on historic sales or other KPI conversions which resulted from ad exposure.
And now, due to advancements in Q2,
We are incorporating advanced keyword extraction processes.
into our model building.
in plain English.
This means we are able to identify keyword combinations on webpages.
which our data suggests are more likely to drive sales or other KPI conversions for customer campaigns.
And our models will factor these learnings into our platform's real-time scoring and bidding processes.
The more impression data we have, the more accurate are our models, and the better return on ad spend we deliver to customers. This is another big step forward for us.
In the quarter, we also made substantial progress towards our forthcoming Q3 rollout of Ad Theorem predictive audiences. Thank you for joining us.
which will allow programmatic advertisers to target audiences.
in a more precise, data-driven, and less opaque manner than is currently possible with traditional targetable audience segments.
We mentioned last quarter that we executed a license agreement, which expands to almost 900.
the number of impression-specific data objects that our models may consider in evaluating impression.
We are integrating that data into our bidders and solutions and processes.
And we are excited to discuss our rollout of App
In support of these efforts, in Q2 we signed another important data license with Pier 39 to operationalize additional contextual data into our solutions.
Through this integration, our internal and direct access platform users
will be able to perform pre-bid targeting based on contextual sentiment, content quality, and their own brand safety criteria.
Advertisers will also be able to curate and activate for campaigns.
custom categories of inventory that specifically fit their brand.
Significantly, this data will be leveraged within Ad Theorem's predictive models to introduce additional IDE independence.
contextual signal.
Finally.
I would like to share a quick update and example of our ongoing efforts to operationalize and automate within our platform valuable data science learning.
In Q2, we implemented platform automation related to the ingestion of advertiser brand website visitor engagement data for use in our predictive models. We are already using it to improve customer campaigns.
For example, in Q2, we use this platform automation.
to drive brand website visitation.
for a destination marketing organization.
in a very short campaign window of two and a half weeks.
we weren't able to surpass client benchmarks driving 3.6 times more visits than the client's campaign goal.
Despite the difficult backdrop and decreased visibility into the back half of 2022, we are pleased with the progress we have made in extending the reach of our platform and growing awareness of ad gear in the market.
We feel great about our positioning in the market and see a tremendous opportunity ahead to capture more of the $13 billion US programmatic digital media market, opportunity that is focused on performance driving execution.
Unlike other platforms that focus on targeting users.
Admir predicts the performance of media opportunities.
using the industry's most advanced machine learning powered media buying platform.
and we do it in a privacy-forward way, without reliance on third-party data licenses, cookies, device IDs.
or any of the new, unified, or individualized IDs in the market now.
Most importantly, our platform and products drive industry-leading performance for our customers' campaigns.
Measured in real business terms such as incremental sales, store visits, registration, travel bookings, online orders, drug prescription bills, insurance policy sales, and other business outcomes.
This measurement is increasingly important to brands and proving return on ad spend is even more important in periods of economic uncertainty.
I would like to conclude my remarks.
by thanking the Athier team.
whose efforts amidst broader macroeconomic uncertainty have been commendable.
We are focused on our opportunities and clear objectives and there is no better team.
I will now turn the call over to Chuck to talk about our financial results and guidance.
And then I will conclude by offering some perspective on this guidance before going to Q&A.
Thank you, Jim, and thanks again to everyone for joining us today. Before discussing detailed financial results, I'd like to point out that in addition to our GAAP results, I'll be discussing certain non-GAAP results.
Our GAAP financial results along with the reconciliation between GAAP and non-GAAP results can be found in our earnings release that is posted on our website www.adfearance.com.
As Jim mentioned at the outset, the second quarter was a challenging and unusual three months with macroeconomic condition curating and presenting new headlines for our brand and agency customers.
Now I'll walk you through our second quarter financial performance and then discuss our guidance for the third quarter and for full year 2022.
Total revenue in the second quarter was $42.5 million, an increase of $2.6 million or 6.5% as compared to the second quarter of 2021.
driven by continued strength in the company's healthcare and pharma, retail, travel.
and software and websites verticals.
We experienced year-over-year decreases in our BSSI, Government Education Nonprofit.
industry and agriculture verticals.
We are very pleased with the momentum in our CTV offering.
Our CTV revenue grew over 100% during the quarter to 4 million, as compared to nearly 2 million in the second quarter of 2021, fueled by expanded capabilities and integrations.
In discussing the remainder of the income statement, unless otherwise noted, all references to our expenses and operating results are on a non-GAAP basis.
You can find information on the most directly comparable gap metrics in our second quarter earnings press release.
Adjusted gross profit, a non-gotten metric that removes traffic acquisition related platform operations costs, in the second quarter was $28.3 million or 66.7% of revenue compared to 66.9% in the same period of the prior year.
Moving down the income statement to operating expenses, second quarter operating expenses were $41.2 million, an increase of $3.9 million or 10.3% versus the second quarter of 2021.
Platform operations expenses for Q2 2022 were up 2.6 million or 14.2%. Increase was mainly attributable to traffic acquisition costs.
an increase in allocated equity-based compensation costs, hiring-driven increases in allocated costs of our personnel responsible for monitoring campaign performance, and volume-driven increases in hosting expense.
and marketing expenses for Q2 2022 were up approximately 2.7 million or 31.6 percent, primarily due to an increase in equity-based compensation allocated to sales and marketing, an increase in employee expenses related to hiring for the sales and customer support teams, and an increase in travel-related expenses, the sales personnel continue to resume more traditional business travel.
Technology and development expenses for Q2-22 were up approximately 1.5 million or 55.5%.
primarily due to incremental software expense incurred in Q2 2022, an increase in employee-related costs to support research and product development, and an increase in equity-based compensation allocated to technology and development.
General and administrative expenses for Q2 2022 are down approximately 2.9 million or 36% over the prior year Q2.
primarily due to a one-time lease termination fee incurred in Q2 of 2021 related to our decision to terminate our primary New York City headquarters office lease for more cost-effectively.
professional services expenses decreased this past quarter due to the elevated legal and professional expenses we incurred in Q2 of 2021 related to public company readiness.
Equity-based compensation expense allocated to general and administrative increase versus Q2 of the prior year.
Insurance expense in Q2 2022 was up as well, mainly driven by directors and officers insurance premiums. We also had an increase in employee expenses related to hiring for the general and administrative teams.
Moving to earnings, we exceeded the high range of our Q2 guidance.
Over the course of the quarter, we continued investing and advancing our technology initiatives, and as we have a history of doing, manage our operational expenses carefully.
Our Q2 adjusted EBIT after the corridor was $7.3 million versus $12 million for Q2 of 2021.
Adjusted EVO.Margin for the quarter was 25.8% versus 45.2% for Q2 of 2021.
Now let's turn to our guidance for the third quarter in FOIA 2022.
We are lowering our revenue adjusted gross profit and adjusted EBITDA guidance in response to the current uncertain macroeconomic environment.
Third quarter 2022 revenue is expected to be between 37.5 million and 39.5 million, representing a decrease of 5.1% to essentially flat compared to the third quarter of 2021.
For the full year, we expect revenue to be between 160 and 180 million, representing a decrease of 3.2% to an increase of 8.9% compared to 2021.
Third quarter 2022 adjusted gross profit is expected to be between $24.6 and $25.9 million, representing $1 in $4 million.
wondering what you attribute the strength and the customer growth to and how you're viewing the potential for new customer growth as we go through the back half this year and enter 2023. And then I had one more after that. Yeah, thank you for that question. It all starts with landing new opportunities. And we are very happy that in the second quarter we landed 15% more active customers, spending money on our platform, finding value in our platform. We will extract more revenue and opportunity from those customers because our platform works. So it starts with getting out in market, earning new opportunities. As we invest more and we talk a lot about these in our calls, we talk about the verticalization and we talk about the data partnerships and we talk about the new ways that we're making our platform more efficient and easier to use and that we're making our platform accessible in different ways now through a direct access method where self-service users can use it. The fact that our platform now has more data integrations. Our platform has got a more streamlined workflow. Our performance optimizers, our algorithm engagement and activation is easier and more automated. These things are making it easier for customers to say yes. We are having more meetings than we've had despite the fact that again, we are seeing some inconsistencies and some negativity in the market.
from a macro perspective, but we are also seeing from time to time really, really strong signals when it comes to our pipeline and the opportunities that we have. So yes, we are growing more in terms of customer acquisition, and from there we will earn their business year over year as we have for 10 years.
where we outperform
the other programmatic platforms by driving a lower
cost, per action, lower cost per sale, and really holding ourselves accountable and sharing the return on ad spend that we deliver for platforms that we do not believe other DSPs deliver. This is not in 2022. Advertisers need to be absent in sales.
What am I getting for my ad spend? There are a lot of entrenched big DSPs and other companies out there that are sucking up a lot of media dollars. Advertisers need to start asking hard questions. What am I getting for my digital investment? Ad theory, we are a little bit disruptive. We are coming in, we are small. We have a new method. We are using machine learning statistics to analyze impressions. We are not just retargeting IDs. End
And therefore, we have a case that we need to make. We need to show up at the table and say, please make a spot for us. We have something new to offer. And that's going to take a little bit of time. But we're very happy with the fact that we are getting those opportunities, on the direct access side especially.
Direct access in our go-to-market plan is relatively new.
We historically sold our platform in a more managed capacity.
Now we are one ad-fearing. We offer our platform to buyers however they desire to transact. And doing that has made it very, very valuable to customers. If they have teams that can transact on campaigns then they can license our platform and they can execute. And we have made investments to make that platform easier to use. And we have made investments to make more data providers, more measurement providers turnkey within our platform.
So we feel good about it. We're obviously being conservative, but as a very new company in this environment, we feel like it's just in the best long-term interest of the business to do that.
Great, that's super helpful. Thank you. And then you mentioned that new sales hires have been strong. Can you just talk to us or sort of talk us through how you feel about where you are in that investment cycle behind the sales force?
Absolutely, excellent question. We feel, and I'll talk not just about sales hires, but I'll talk about our tech product, data science, data and analytics, and other technical hires, because that's at the end of the day. Those were the two main investments.
that we made in the first half of the year.
I'll put it this way, on the go-to-market side, we will begin 2023.
with 17 more fully ramped sales.
quota carrying sales professionals than we had at the beginning of 2022.
Due to the environment, due to number of factors, it's been a little bit slower to ramp some of these.
exceptionally talented individuals that we have hired, but they are showing incredible promise, they're driving great pipeline, and we feel really good about them and we're really happy that they're in our organization. We hired them in a really hard hiring environment. A lot of people want to work at our company because we sell a product that works.
So, 17 fully ramped, that means they've been here training, learning, engaging with customers for nine months at that point.
So by the end of the year, we'll have 17 more than we had at the beginning of last year. Today will drive results.
On the tech side, we have 23.
new data science, technologists, product people, all in house.
And the profitability that we drove in the second quarter was despite those investments.
Now, in the second half of the year, we're going to hold back, we're going to tighten, and we're going to be very disciplined.
Until we have more visibility into that revenue upside and the growth, we're going to be very, very disciplined about hiring. But having said that, we have a lot of exceptional, gifted, motivated people in the building now that we didn't have at the beginning of the year. And it's going to make our business better.
Great, thanks so much for the questions.
Thank you.
Again, if you have a question, please press star then 1.
The next question is from Andrew Boone with JMP Securities. Please go ahead.
Good afternoon and thanks for taking my questions. Can we talk about the supply side of the equation? So understood you guys buy impressions and help advertisers achieve their objectives. Just what happened on display pricing? How do we think about tape rates and the go forward of the supply side of the equation?
Well, one of the great things about this business is that we have price optimization built into our platforms that make sure that we always get the most efficient price. So we see and we've seen in down economic times, we've seen fluctuations in the price of media. During COVID media was cheap and we were able to, despite the fact that we had low demand, we were able to do quite well because we were able to buy media very cheap.
So our price optimators, and by the way, I would note that we pass on the full benefit.
of that to our customers.
And I think that that's somewhat unique in the industry.
we don't take apart that savings. This is a savings that we share with our customers. This is a value of using our platform. So I think we are seeing an interesting environment where there is potentially going to be opportunities to be very efficient on the supply side. And again, our investment in optimizers, and we've talked about our optimizers, on the other hand, if we look at a smaller effort or a smaller price, that would have to Mauro talk about the risks,
in prior calls and I would just reiterate that we have optimizers which now work together where we have models that simultaneously optimize towards performance and the lowest price media that you can possibly buy while delivering that level of performance. We want to drive sales, return on ad spend, cost per action that exceeds our customers goals. That's the business that we are in.
We can use the upper funnel, we can drive upper funnel campaigns, but we're really a data-driven business about driving lower funnel results. Andrew, does that answer your question?
Yeah, that's great. And the second, is there a way for us to dissect the macro impact versus the underlying performance? You guys added kind of all the data. Previously, you're adding another data set now. Is there any way to think about just the improvement that you guys would provide in a more neutral environment on just advertiser performance and ROI? Thanks so much. I appreciate that. Yeah, absolutely. So I think we need to wait.
to fully see the impact that we're going to have in market with, for example, some of the data sets that we've talked about bringing on board.
as a machine learning company.
and a technology company.
One of the ways that we can make an impact.
is to bring in
better and bigger data.
That is
the source.
bring in the real source data, the most accurate.
data that you can find, whether it's in our healthcare space, insurance claims data, or in other verticals, there are different data sets.
but access those data sets
And then we can create seed audiences in our models that allow us to go find ad impressions.
that have attributes that look like the...
seed audience that is converting or that is within a given audience segment so to speak.
So at their predictive audiences is something that we have made a big investment in. We talked about the investments that we've made in the consumer data.
and we talked about the investments that we've made with insurance claims data for Ad
that analyze that data.
then make that data actionable for our advertisers so that we can understand and see signals in the data that help us buy media.
And those are macro aggregated de-identified signals that allow us to ingest billions and billions and billions of ad requests.
augment those ad requests with the data that we have licensed, and then have our models tell us this is the media you need to place the ads on because that is going to drive performance. It is a sea change from yesterday's methods which are most predominantly practiced by all the other platforms of the media.
licensing lists of IDs and then targeting those IDs because the licensed providers of those IDs say that the IDs correspond with interest.
Nobody really knows where that information came from, and we propose a new method.
So I think that's at the end of the day, you know, where our investments are focused. We want the Adiran Health Initiative, which we believe is very significant.
and our ad-parent predictive audiences are a version of that across all of our verticals because the more unique data sets that we have...
that are relevant to specific verticals. Our data scientists can build algorithms that factor into that additional unique data, and then we can augment bid requests with more and more data, provide more and more robust reporting, and essentially take this industry from its current status quo of targeting cookies and targeting Apple IDs and Android IDs and take it to a world where you can statistically analyze ad impressions.
based on the likelihood that those ad impressions are actually going to drive a conversion without knowing who the person is and without caring who the person is.
Great, thanks, Jim.
Thank you.
This concludes our question and answer session. I would like to turn the conference back over to Jim Lawson, CEO , for any closing remarks.
Thank you everybody for joining the call today.
We have built and are working very hard to enhance and refine a very disruptive and highly differentiated media buying platform.
Premise on data science and machine learning.
We believe we bring a very unique and valuable platform and innovation to the table for advertisers.
who seek to derive measurable ROI on their ad spend.
We are admittedly new to the public market, listing late in 2021 during a pandemic, and we are navigating a choppy macro environment.
But our platform and team and footprint and progress with clients is better than ever before.
We will always do our best to share a transparent view of the market and our immediate financial projections.
But we will continue to focus on the medium and long term and the tremendous growing opportunity that we see for ad theory.
Thank you very much for being here today. It's an honor, and we appreciate your support.
The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.