Q3 2022 Fluent Inc Earnings Call
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The conference will begin shortly to raise your hand during Q&A you can dial star one one.
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Okay.
Mm Hmm, Okay. Good day, and thank you for standing by welcome to the fluent Inc. Third quarter 2022 earnings call.
At this time all participants are in listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During this session you will need to press star one one on your telephone you will then hear an automated message advising your hand is Reyes. Please be advised that today's conference is being recorded I would now.
Now I'd like to hand, the conference over to your Speaker today, Dan Barsky General Counsel.
Please go ahead.
Good afternoon and welcome. Thank you for joining us to discuss our third quarter 2022 earnings results.
On today's call are fluent CEO , Don Patrick our CFO Sieglinde condo wall and Ryan Schulke, our co founder and Chief strategy Officer.
Our call will begin with comments from Donaldson, followed by a question and answer session.
Thank you to remind you that this call is being webcast live and recorded a replay of the event will be available following the call on the Investor Relations page of our website Www Dot co dot com.
Before we begin I'd like to advise listeners that certain information discussed by management. During this conference call will contain forward looking statements, which are covered under the safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
Any forward looking statements made during this call speak only as of the date hereof actual results could differ materially from those stated or implied by our forward looking statements.
Due to risks and uncertainties associated with the company's business. These statements may be identified by words, such as expects plans projects could may and other words of similar meaning the company undertakes no obligation to update the information provided on this call.
For a discussion of the risks and uncertainties associated with the fluids business.
We encourage you to review the company's filings with the Securities and Exchange Commission, including the company's most recent annual report on Form 10-K, and quarterly reports on Form 10-Q.
During the call. We will also present certain non-GAAP financial metrics relating to media margin.
Adjusted EBITDA and adjusted net income management evaluates the financial performance of our business.
On a variety of indicators, including these financial metrics.
Condition of these metrics and reconciliations to the most directly comparable GAAP financial measures are provided in the earnings press release issued later today.
I am pleased to introduce fluent CEO Don Patrick.
Thank you Dan and good afternoon, and thanks, all of you for joining our call today I'm here together with Ryan Schulke.
Our Chief strategy Officer, Chairman of the Board and company founder.
We've begun to condo wall, our chief Financial Officer.
I'll make some brief comments about our third quarter results, which we believe reinforce the imperative behind our commitment to enhance the quality of our consumer engagements within our performance marketplace.
I'll then update you on the disciplined progress, we're making against our strategic priorities.
While our industry continues to experience dynamic change and where consumers are reacting to substantial inflationary headwinds.
Our Q3 2022 results came in as planned off a very strong Q2 and consistent with our strategic course.
<unk> financial results were as follows.
Revenue of 89 million represents 4% year over year growth and.
And is in line with what we advised on our last earnings release as the Opportunistically accelerated our Q3 initiatives forward into Q2 in anticipation of marketplace uncertainties.
In turn.
Revenue growth for Q2, and Q3 combined was up 18% versus 2021.
And as a positive reflection of our long term growth strategies.
Our media margin of $28 1 million.
Is up 16% year over year at 31, 5% of revenue.
Expanding our media footprint and strengthening our performance marketplace continue to drive margin improvement year over year consistent with our strategy.
Adjusted EBITDA of $5 9 million represents six 6% of revenue.
Down zero point $4 million year over year.
This reflects our ongoing strategic investments.
On enhancing our platform.
While expanding the quality grounded consumer experiences within our performance marketplace.
As I discussed in our last earnings release.
Strong Q2 revenue and media margin growth reflected the effects of our Q3 2022 strategic initiatives that hit earlier than our original plan.
Bolt Av are consciously leaning into momentum.
In turn Q2, and Q3 results landed where we hit plan.
Given the more volatile macroeconomic environment in the second half.
And the required strategic and economic adjustment, we are seeing a parallel in our Q2 Q3 results for the full year or.
Our strong first half performance landing us where we planned for the full year of 2022.
In the process, we continue to test and learn to ensure all growth initiatives are aligned against our strategic course.
This is a fundamental practice in our evolving business model.
In Q3, we are encouraged by our double digit revenue growth of our core rewards business directly resulting from the momentum of our consumer engagement and CRM strategic initiatives, where we are committed to winning in the long term.
Rewards revenue growth was primarily offset by our jobs business due to challenges, we faced with our technology platform migration, coupled with difficult year over year industry comps.
Our strategic relevance is how we proactively manage the mix across our initiatives to prudently expand our business unit margins where market opportunities exist.
We are pleased that the majority of our businesses showed double digit year over year margin improvement.
Our ability to remain strategic yet nimble is important given the current market realities.
It enables us to invest with purpose when growth opportunities present themselves.
Our third quarter operating results exhibit the continued progress we're making on our long term strategic growth plan.
We are focused squarely on the consumer engagement, along with enhancing the quality experienced within our performance marketplace.
While the entire industry is responding to a turbulent economic environment.
We remain excited for 2023 as we believe the fundamentals that we put in place today will pay longer term strategic and financial dividends.
Creating more effective long term customer acquisition solutions for our clients.
While successfully positioned fluent as a market leader is a winning road forward and it represents a more sustained fluids business for our stakeholders.
Our everyday mission remains strengthening and expanding our fluids.
<unk> strategic growth pillars.
And your footprint.
Our platform and our performance marketplace.
Fluids ultimate competitive advantage is enhancing our go to market capabilities within the logical points of intersection across each pillar. We call. This our flywheel and it represents a differentiated position in the marketplace, our sweet spot if you will.
As I mentioned, given the market dynamics will remain.
Our intent is to invest strategically and then rapidly test and learn.
We're not afraid of making a strategic bet as our model is designed to validate where eradicate.
Pivoted fluidly into long term strategic growth opportunities, where we believe we can win based on fluids competencies.
We continue to make meaningful progress here.
And we expect to see more strategic and financial dividends in 2023 and beyond.
We highlighted the initiatives within our pillars in the past earning releases.
We wanted to simplify by providing executive summary, and how these strategic growth pillars interplay across one another and our quality flywheel.
Again, our goal is to deliver higher quality consumer engagement, which you believe is required path to consumer satisfaction and higher lifetime value.
Winning here represents a significant long term strategic and financial opportunities for fluid.
Number one we are.
<unk> is investing in quality at the conscious expense of our bottom line and we are convinced that will pay long term strategic and financial dividends.
Our traffic quality initiatives has strategically evolved our media footprint by delivering a more highly engaged and motivated consumer to our digital media properties.
And logical sequence, we continue to grow our media footprint through channel partnerships and geographic expansion.
We can meet and exceed consumer expectations and those consumers in turn and look forward to future engagements.
Number two consumer engagement is an unquestioned strategic priority as is increased audience personalization of our marketing campaigns.
When a high quality driven consumer visits our prior property within fluids digital media portfolio.
<unk> of our first party data is pivotal to identifying the consumer's intent need.
Need or desire.
Combined with our ability to gather and enable real time insights fear of analytics and technology platform. This fluid capability allows us in real time to present relevant offers to each segmented audience of our from our world class clients.
We then evolve our campaigns based on consumer learning and the insights gleaned, representing an inherent competitive advantage for fluent.
Critical in building fluid brand equity is that when the consumer wins.
It is a roster of clients.
Number three.
CRM leverages the capabilities of all three strategic growth pillars to.
To drive increasing consumer lifetime value, along with enterprise value for our shareholders.
Our CRM technology and capabilities engage with consumers, who willingly returned to our media properties.
Here, we leverage their prior survey responses and performance marketplace experiences.
Allowing us to utilize their personal insights as a strategy to strengthen the relevancy and improve consumer engagement.
This is the path to increasing consumer lifetime value, a significant revenue and margin strategy.
As you can see our quality flywheel enhances our go to market capabilities across our media footprint.
Our performance marketplace and.
And our platform.
This provides a significant marketplace, attracting engaging and creating meaningful long term relationships with consumers.
While also strengthening our relationship with World class clients in key industry verticals.
Regarding Q4.
Given the unpredictable macro and geopolitical economic outlook.
We are certainly seeing a parallel level of unpredictability in the digital advertising industry, where consumers and our clients pause to assess the road ahead.
The ramifications for fluid or difficult to gauge and remain fluid but.
But we obviously expect to see growth continuing to moderate compared to the first half.
With consumer spending less and clients operating more cautiously while tightening their budgets.
Adding to this market wide complexity.
Is that we are also seeing certain media costs increase above historical Q4 seasonal norms based on widely reported industry headwinds facing social media platforms.
As a result, we are leaning into industry verticals and client partnerships like health insurance.
They have strong seasonal demand for our audiences.
We're also managing media mix in the immediate term.
We do believe media costs will return to more historic norms. After the holiday spending season at that point will.
Positively impact spending across our media footprint.
We maintain our belief that on a fiscal year basis. Our annual 2022 financial results. We will continue to show revenue growth at or above industry growth rates.
As we look to earn market share in key strategic growth areas.
In closing, we anticipate the economic environment will remain volatile for some time, and we will strategically and financially adapt to the economic realities by balancing our investments and managing our business mix without compromising our key long term strategic bets.
We remain focused on our well defined growth pillars.
And we'll continue leaning into strategically compelling revenue opportunities, where we believe we have a different position.
And a significant consumer runway for margin expansion over time.
This is the decided path to winning more quality driven consumers and established competitive advantage in the marketplace, while also creating shareholder value for our investors.
And with that alternatives again to provide more detail on our financial results.
Thank you Don and good afternoon to everyone.
We are pleased that our strong third quarter 2020 results and the continued momentum in the business as we execute on the fundamentals and translates to that strategy.
Our unique first party data assets and strong advertiser relationships.
It is in a very competitive position to win.
In the third quarter and generated $89 million of revenue up 4% Elas.
As expected the growth rate is slower than the previous quarter and a.
I alluded to our decision to accelerate test and learn initiatives in Q2 due to anticipated headwinds in Q3.
The revenue growth in the third quarter was driven by the strength in our core business driven by expanding on media footprint in the U S.
And I thought it.
Was that internal CRM capability, which enables us to re engage with consumers.
This data just did on our own media.
Our properties as we seek to enhance the overall lifetime value.
These growth areas is partially offset by softness in on jobs business.
Electrical data migration.
Donald I think does not fun.
The improved functionality at the platform. After this and just the growth in the fourth quarter as well as 123 and beyond.
As a reminder, as part of the answer on that traffic quality initiative. In early 2021, we took a strategic approach in building high quality media traffic.
Or do you think the volume of lower quality traffic.
Although they are conscious.
It went to quality.
Reduce our traffic volume in the near term we are pleased that our monetization increased almost 30% in Q3 as compared to the same quarter last year.
Our media margin in Q3 was $28 1 million.
16% year over year, and representing 31, 5% of revenue.
While context, we spent nearly $61 million in paid media and a quarter on not just one component.
On the last earnings call, we noted the opportunity to drive high quality traffic some valuable platform and they didn't.
Margin levels below the affiliate side, if our media mix.
Well they extend the shifting on the damage to continue in the near future may remain confident.
Our ability to optimize our spend levels and ultimately drive higher profitability over time.
Operating expenses on a GAAP basis for Q3, comprising sales and marketing.
Development, and G&A came down by almost $1 million or 5% year over year to $19 $8 million.
And within that mix sales and marketing increased by $1 2 million.
Driven largely by an increase in business travel events and in person meetings and some increased headcount just a political and business.
I thought the development expenses increased by approximately $160000, reflecting continued investments that we made in our technology and analytics platform as well as development of new App based media properties expanding beyond our traditional focus on web based media properties.
Lastly, our G&A expense came down by $2 4 million.
The decrease was mainly the result of cost incurred related to the third monopoly acquisition during the third quarter of 2021, along with the termination of the monopoly protocol consideration.
Finally on profitability on adjusted EBITDA for the third quarter was $5 9 million.
Representing six 6% of revenue and down 8% data by year.
Our interest expense increased by $150000 a year over year, driven by an increase in interest rates.
In Q3, we continued to be a non cash interest at that degree of visibility you have Nols.
We reported GAAP net income of $3 1 million in the quarter and adjusted net income a non-GAAP measure of $5 million.
As a reminder, our non-GAAP metrics that are reconciled in the earnings release, and our 10-Q10-K filings.
Turning to the balance sheet, we ended the quarter with $33 $1 million in cash and cash equivalents.
And this is an increase of 112% year over year.
Working capital defined as current assets minus current liabilities ended the quarter at $51 8 million up 25% year over year.
Total debt as reflected on the balance sheet ended the quarter at all.
The $1 8 million.
Looking into the fourth quarter, we expect strong growth from our jobs and fueling solutions businesses.
On sale solutions, a language and capability.
To advance our strategic agenda, providing end to end customer service solutions for our advertisers.
The business is expected to benefit from the annual Medicare enrollment period in Q4 and are positioned well to capture the industrial good unemployed with margins.
Although the fourth quarter. It has historically been our strongest quarter, we have seen the growth motivated with a few of our clients pulling back on that spending and deploying funds more cautiously.
At the same time, we believe consumers are feeling constrained by elevated prices caused by inflationary pressures and rising interest rates.
Given this overall environment, we anticipate the macro instability and industrial had been the impact on <unk> in Q4.
But 2023 and beyond.
To focus on driving revenue growth and margin expansion, while maintaining our disciplined approach to our overall operating expenses.
We believe that despite near term challenges all the fundamentals are there for after the ton to a stronger revenue growth for next year.
Before I conclude I would like to provide a quick update.
With increasing frequency federal and state regulators are holding businesses like ours to high standards of training monitoring and compliance.
From time to time central regulatory agencies and state Attorney General.
I said investigations or regulatory initiatives towards that industry.
Certain companies within the industry such as ours.
Can you provide regular updates on regulatory investigations and settlements and a report to the SEC.
Our Form 10-Q will contain certain update on the investigation.
Real estate Commission. Another lawsuit recently filed by the Attorney General of Pennsylvania against that are related to certain of our historical business practices.
We believe our current practices are in compliance with the state and central consumer protection laws.
And yet addressing each of these matters with our professional advisers.
In closing we are pleased with our third quarter results and the underlying strength of our business.
As the economy transitions to slow our growth and we head into uncertain times.
The team is laser focused on execution of our strategy and maintaining operating discipline with the goal of creating long term value for consumers.
And Phil and shareholders.
Thank you for your time again.
Not to take questions now.
Okay. Thank you at this time, we will conduct a question and answer session. As a reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced please standby, while we compile the Q&A roster.
Okay. Our first question from James Klein.
Maria reps of Canaccord. Your line is now open.
Okay.
Hi, This is Matt on for Maria Thanks for taking my question I just wanted to follow up on the forward commentary and I. Appreciate your comments that advertisers are operating.
More cautiously and tightening budgets, but I was just wondering.
What kind of feedback you've been hearing more recently in the last last few weeks are there any pockets of clients across certain verticals or geographies that are may be increasing spend modest.
Modestly I think.
Last quarter, you highlighted media and entertainment is sort of more of a recession resistant.
Vertical so just any additional color you could share there would be helpful. And then I have a quick follow up thanks.
Sure. Thanks, Matt Thanks for the question.
Our platform was designed to support a number of performance margin marketing metrics. So it could be focused on growth like a user or subscriber or at all.
Also it could be shift towards more financial immediate return on AD spend are.
Our cost per correct per acquisition. So the platform has allowed to move around flex very flexible in real time and what we're seeing is there is still very strong demand within our verticals and specifically like you mentioned in the media and entertainment vertical.
But in the last couple of months, we're seeing if they're shifting from growth and.
Acquiring users and more towards short term return on AD metrics and spending in lifetime value. So.
The great thing about the fluent platform as they don't tend to cut budgets like you would think about an agency. They just adjust their performance metrics across that and Thats, what the general trend, we're seeing the other verticals, where we are leaning in and Youre seeing slight changes to our big changes, obviously health insurance vertical through our fluid sales.
Solutions business is the second year, we've had the call center solutions business.
Very strong marketplace demand and very strong quality metrics.
We're really leaning into.
And the second we talked about the jobs business and that it had some headwinds around a large client.
Very large.
Brian that was that was taking up a lot of supply last year and also our migration from a tech platform that tech platform has been complete and we're we're really leaning in to the functionality of that and we're seeing some good sequential quarter over quarter growth in that market.
Yeah.
Got it. Thank you I appreciate all that color very helpful. And then just on the media footprint diversification efforts I know you talked about.
Scanning channels.
And partnerships.
It does.
Current geographies just any additional color you can provide on that and maybe sort of what inning. Do you think you are in and then.
And that effort and then maybe just like in the context of you called out.
Higher media costs that are industry wide and does that impact your strategy there in the near term. Thanks.
Yes so.
I'll just put it in context.
There's two big pieces of our supply one is obviously the biddable platforms, which we've talked a lot about over the last year. We've been growing into second is the publisher partners that we've been we've been working with the Biddable platforms, we've seen.
In Q4, you see pricing increase always around the seasonality, but we have seen over historical norms, it's increased even more than usual.
Part of that we believe is based on the well documented problems that they're having with their financials.
And that the pricing is going up.
Short term.
For financial reasons not market reasons so.
We've been managing the mix of our media and moving moving it last towards the Biddable more towards our affiliate side along with leaning into two other supply partnerships that we have.
Got it thanks very much you asked the question about around adding you asked a question about earnings.
So you kind of mentioned it we started the <unk>.
Asset quality initiatives in 'twenty one.
Where we took a ton of traffic off the board. It was more defensive at that time, where we've been in the offensive position here with our with our.
With our media in terms of really leaning in part of what we talked about in Q2 is that we took a number of media initiatives and brought them forward. So we could test and learn it takes a couple of quarters to work through those to make sure that they are strategic versus.
<unk> and.
And making sure that there is a quality consumer around that so we are playing offense on the traffic quality initiative side.
Thanks very helpful.
Thanks Pat.
Thank you please standby for our next question.
Our next question comes from the line of James Goss of Barrington Research. Your line is now open.
Alright, Thank you guys.
How does that look good.
So one is should I read into your comments that you are looking at.
Fourth quarter revenues, probably being flattish and if if that's.
We have all of that mix and how long would that situation.
Persist.
Yes.
Jim we are definitely managing.
More towards our margin rather than growth right now.
And that's again the beauty of the platform is we can move from one side or the other we are managing more towards the media side. So when you look at growth we would look at revenue.
Growth not being as strong as before we'd see that.
We've been leaning into the media margin growth. So in this environment with not a lot of.
Visibility with the brands they click.
Nearly are.
Being very visible we get to see things in real time, but.
We continue to see.
We don't have perfect visibility, so we're being more conservative around how we're managing that to mix and were also being.
Conservative around making sure that the longer term investments that we have.
We can continue to invest aggressively into to grow to grow the growth.
Alright.
You talked about additional investments in technology I think.
We are enhancing the platform and balancing your initiatives could you talk about the nature of those.
Technological.
Creations and the cost.
Ultimately the intent.
Yes.
It's a great question Jim ultimately.
It really comes down to our ability to interact with the consumer in real time and serve up the rate.
Irrelevant add to them and then continue on with.
Driving our through our CRM efforts around the lifetime value. So specific those investments have been going on now since the early.
2020, when we talked about our technology and the data platform and our CRM.
The ones, we're talking about today was more around the jobs related business that was really about ingesting different fees and different partner supply in real time.
And being able to optimize that in a real time and real time way for our for our clients. So it always is around either.
The audience segmentation around the consumer experience around the relevancy of ads.
Lifetime value and deepening that engagement with the consumer those are the three common trends youll see with all our investments.
And one final one.
You talked about the consumer intense need and desire and I'm wondering is there what are the similarities and differences by a major verticals.
And do you get that information by certain questions that service sponsors or are you aggregating and so over multiple context with some of the same people and building a database on them.
Yes. It is.
Good question, Jim we when a consumer comes onto one of our media properties.
We obviously tailor our questions to them on whether based on their segmentation based on there.
Demographics and also based on their intent as they move as they asked for questions where they start to show interest in certain AD serving we will then make more relevant question specifically targeted towards that individually. So.
We're looking at things from a from a individual level of what the insight showing rolling up to an audience segmentation.
That we run our AD serving loss so to answer your question. When you look at specifically towards the individual and then aggregate it up towards the audience and then we aggregated up towards the verticals. So we're seeing a lot of and continued demand on the media and entertainment side more on the financial services side, obviously, we're seeing less demand.
It's more higher cost higher consideration businesses that that the consumer is sort of being a little bit more hesitant towards these days.
Alright, well, thank you very much I appreciate it.
Thanks, Tim.
Please standby for our next question.
Our next question comes from the line of J P. J again as global value Investment Corporation. Your line is now open.
Thank you good afternoon, and congratulations on a nice quarter.
Given some good color on how you are.
Customer behavior is changing of your customer spending behavior is changing but I'm curious in the face of some macroeconomic headwinds what youre seeing from.
Your web site visitors are consumers and then how you really tailor your day to day business operations to match.
<unk>.
<unk>.
Ranged consumer and customer behaviors.
Alright.
Thanks J T.
So we are seeing the consumer.
Move or be more interested in what we call lower costs lower consideration.
Campaigns like media entertainment things that tend to cost less money and also.
Less of a purchase decision for them.
And the way, we're reacting to that obviously is around.
Making sure that we are.
Providing them with the right relevant consumer experience when they come onto our website. So if they're coming on and theyre showing interest in streaming or gaming or in.
Sure.
We're obviously in a real time way through our machine learning algorithms provide that right type of.
Exposure experienced them in terms of showing that AD serving to them. So the great news is that it's all real time.
All driven.
Driven by our machine learning and our analytics platform driven by that age segmentation, so as things change and that could be hour by hour second by second consumer consumer our marketplaces flexible and dynamic enough to move towards those.
That intent or interest.
This is a big big time of the year for health insurance.
And that is obviously important part of our business in Q4.
And we've been able to also bring in that type of quality consumer and bring that experience through our call solutions business through a live agent capability also.
Sure.
<unk>, you've discussed manifested in a change to the cost of traffic and if so how should we think about the development of your media margin going forward.
Yes, yes.
So where it tends to be.
Becomes the most impactful is what we call the lifetime value J T. So when the consumer comes on we have an initial read.
<unk> shipped with them. The CRM, obviously that allows us to continue to have a longer term.
Our relationship with them over time, and what we've been working on is making sure that.
And measuring and making sure that that lifetime value increases and also expands over time. So the key metric is around the user and the <unk>.
Lifetime.
The time of value that we have that we have with them from a relationship standpoint also from a from a purchasing perspective of what they are interested in what they buy.
Okay that makes sense.
Finally, your press release, it was quite clear on balancing your growth and margin initiatives, which seems completely reasonable.
You operate in a very dynamic environment, but more broadly can you elaborate on your long term capital allocation priorities at this point.
Yes.
From a capital perspective, JP it hasnt changed from what we talked about.
So over the last quarter.
We continue to invest aggressively back into the business on from a technology and analytics and.
<unk> platform perspective, we have made small tuck in acquisitions that you guys announced purpose.
Also announced.
Some other initiatives that we've been.
<unk> back from the business, but from a capital perspective, we have a fair amount of cash on the bank.
We want to maintain that right now based on the economic uncertainty that we're going into so.
From a bank perspective or from a.
Potential stock purchase or anything we are right now holding that cash.
Great. Thank you very much appreciate it and congratulations again.
Thanks J P.
Please standby for our next question.
Our next question comes from the line of Joseph.
Capital Management. Your line is now open.
Thank you.
As to the health care vertical would you discuss the magnitude of the increases youre anticipating.
As of this year versus last I think if I understood correctly. This is year.
Only a third year.
In that vertical.
Hey, Kevin.
Hey, Bill Thanks for the question generally.
Last year, we were in the process.
<unk>.
We've closed on.
On the monopoly transaction in September and a lot of it was around getting to scale and building the marketplace correctly. This.
The team has done a great job building the right types of partnerships from a from a client and brand perspective, it's been more based on making sure the yield and the quality is right. This year. So.
So, although we will not so somewhat see a lot of revenue growth year over year Youll see a lot of of margin growth in that in that call and that.
<unk> solutions business over the time.
And that is that industry.
Matt So.
Or is this something that truly in and of itself is a needle mover for your fourth quarter.
It is it is a needle mover.
One thing just as you we've talked about before.
That business has been has been building out other verticals that need live agent capabilities, the higher cost higher consideration. So we have got into other pieces of the other verticals of insurance and we are rolling out other legal services and verticals like that but primarily as we as we talked about.
There is a lot of a lot of companies out there that would sort of lead with first with the demand and then build the supply up one of our competitive advantages around our marketplaces, our relationship with the consumer and we bring it from we've really start from the consumer make sure. The quality is right and then match them with the right brands. So that is it.
There is a strong play for us in Q4. It is also a very strong play long term for us in terms of a really expands our marketplace into the higher cost high consideration verticals that influence had not previously been.
Involved in to this extent if at the end to end solution.
Two years ago.
Okay, I'm going to take one more one.
One more follow up to the same industry.
Margin dollar contribution.
Over time, do you see where healthcare could end up being larger than business for you all.
Yes.
I think from a.
The total business.
I don't think it will be larger than the media side of our business Bill, but I do think it can be continued to be significant.
Two to three times the size it is today.
Great. Thank you for all the perspective.
Yes.
Yes.
At this time Im showing no further questions I would now like to turn it back to Don Patrick CEO for closing remarks.
Thank you in summary, our Q3 results.
You will confirm the progress we're making on our strategic course of building value for all fluid stakeholders.
I want to thank you for joining us today and we greatly appreciate your support for the company.
Thank you.
You for your participation in today's conference. This does conclude the program you may now disconnect.
The conference.
Vince will begin shortly to raise your hand during Q&A you can dial star one one.
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