Q3 2023 Liveramp Holdings Inc Earnings Call
One of the subtle yet significant changes is bringing our capabilities to our customers computing environment, including clouds in clean rooms, just like we're doing with AWS clean rooms.
We will empower this collaboration across clouds through data Federation and connect more first second and third party data to drive tangible business outcomes for our customers.
While bookings Reacceleration is obviously a top priority for us before wrapping up let me speak about our profitability.
Over the past few years quarter after quarter, we have delivered methodical and meaningful improvement in operating income both dollars and margin and this will continue to be another of our top priorities.
We expect our non-GAAP operating profit to increase by nearly 50%.
Slide 23.
In FY 'twenty four we expect operating income to grow at a similar rate and margin to expand even more driven mostly by the 30% to $35 million in cost savings from the cost actions announced last quarter.
But we're not done yet.
Warren will discuss shortly.
In summary, we delivered another solid quarter of results.
Ahead of our projections and demonstrating the durability of our business model, we are making steady progress with our key initiatives to reaccelerate revenue growth, including an improvement in sales force productivity and two new integrations with Disney and Amazon.
And we made meaningful operating margin improvement in the quarter and we expect the improvement to continue in FY 'twenty four.
But know that we are not satisfied.
Think of today is just a progress report on our methodical journey to Reaccelerate top line growth achieved steady margin improvement and ultimately unlock greater shareholder value.
With that thank you again for joining us today and a special thanks to our exceptional customers partners and to all <unk> across the globe for their ongoing hard work and support.
We look forward to updating you on our progress in the coming quarters I will now turn the call over to Warren.
Thanks, Scott and good afternoon, everyone and thanks for joining us.
Today I would like to focus my remarks on three areas first share a few highlights from the quarter next provide a few preliminary comments on our FY 'twenty four priorities and outlook and finally confirm our topline and update our bottom line guidance for FY2023.
For the quarter, please turn to slide five.
Total revenue was $159 million up 13% and subscription revenue was up 14.
Excluding $4 million, one time contract settlement, which we called out last quarter, both subscription and total revenue were up 10%.
International was up approximately 27% and adjusted for FX was up 37.
Marketplace and other increased 9% data marketplace, which represents roughly 80% of ongoing marketplace and other was up 5%, reflecting softness in the overall advertising market.
Subscription net retention was 101 and platform net retention 100 to.
The year over year decline in subscription net retention was driven by a lower relative contribution from upsell bookings and usage. The sequential decline was driven by the same factors.
Platform net retention was also negatively impacted by slower growth in marketplace and other.
Usage was 16% of subscription revenue driven by data providers platform partners and the $4 million one time contract settlement.
Excluding the settlement usage was 14%.
Subscription customer accounts decreased by 10% sequentially, while our $1 million customer account increased to 94 up 9% versus the prior year.
The decline in total customers was driven by a reduction in small and medium sized customers with comparatively low <unk> and profitability.
Current RPI or our next 12 month contracted backlog was $324 million up 12% year over year.
<unk> ended the quarter at $426 million up 12%.
Bookings rebounded sequentially and on an absolute basis. It was the strongest quarter this fiscal year.
Beneath the top line of our profitability again improved.
non-GAAP gross margin was 76% non-GAAP operating income was 26 million up from $15 million, a year ago, and our operating margin was a record 16% and.
In terms of fall through for every dollar of incremental revenue approximately 62% fell through to operating profit.
Included in our GAAP results were approximately $12 million of restructuring charges, principally associated with real estate reserves and severance.
Operating cash flow was $16 million.
And finally, we continue to return capital to shareowners in the quarter, we repurchased two 3 million shares for $50 million and fiscal year to date, we have repurchased $6 1 million shares for $150 million.
Further in December the board approved an extension and expansion of the authorization. We currently have $218 million available for share repurchases through December 31 2024.
Trends in a few preliminary thoughts on FY 'twenty four.
Before moving on to our guidance I thought I might spend a few minutes and talk about two things.
First what we're seeing in our business and next provide a few preliminary thoughts about FY 'twenty four.
As is always the case there are both positives and some challenges, but overall, we see a lot going for us.
First while we have plenty to do the leading indicators of subscription growth are showing signs of improvement.
Bookings improved by more than 30% sequentially in Q3, and we have line of sight to a similar level of bookings in both Q4 and Q1 of FY 'twenty four.
<unk> reps are delivering rep productivity was the highest we've seen in this fiscal year and a significant number of new reps ramped in the quarter.
Our sales channels are expanding as Scott discussed.
Our cloud offerings are taking shape and.
And finally, I am pleased to say that our relationship with axiom has been renewed on terms consistent with our existing agreement and in fact, we see upside to this relationship going forward.
<unk> and IPG are great partners and we're excited to continue to work together on go to market solutions for our shared customer base.
Next <unk> offers a set of products and capabilities that are unique and table stakes for the industry our competitive advantage is clear.
Foundational identity.
<unk> based identity is the unifying key to connect data across the AD and Martech universe. This.
This foundation is what makes it possible for brands to personalize and use data in every interaction with our customers.
We make every impression addressable. This is the foundation for customer 360, and this is what we do and no one comes close.
Our reaches unparalleled we reach every media channel display TV meta tictoc, pinterest and with pear Google too.
This creates a powerful network effect and.
And finally, we are grounded in privacy and data protection.
We work to anticipate change and work within ethos that puts the consumer at the center of our decision making process.
Our next set of product enhancements are exactly what customers need and are asking for Federated Cross cloud with advanced privacy enhancing technology.
We work with clients that have standardized on a single cloud provider, but more importantly enable collaboration and permission data sharing between the majority of brands, where they and their partners operate across multiple cloud providers.
Today, our Federated Cross cloud collaboration module is in beta with over 20 large brands and publishers.
Next third party cookies are now largely irrelevant to the long term success of life ramp.
<unk> ability to connect enterprise data to consumer experiences no longer relies on third party cookie.
Over the past years, we've future proofed, the open web with Ats.
We have also established new integrations across social and CTV.
And soon we'll be announcing martech capabilities, starting with E mail and SMS.
With the launch of pair this spring our brand customers will have the ability to do everything they do today without the need for third party cookies.
We now have cookie less integrations with all major media types and with nearly all of the top 50 publisher destinations and.
In other words brands and publishers are future proofed.
Please turn to slide 15 the.
The value we provide also goes well beyond programmatic speaking of this we're thrilled with our expanded partnership with Disney.
This is just one of several CTV announcements youll see in the coming months library as the go to choice for any premium CTV provider to make their inventory addressable in a controlled and privacy first way.
And finally, our model is scaling and margins are expanding we are delivering and expect to continue to deliver meaningful margin improvement. We expect FY2023 operating profit of between 60% and $63 million, an increase of approximately 45% year over year.
In the second half of FY 'twenty, three we expect our operating margin to expand by approximately seven points year over year.
The head count reduction and real estate rationalization steps, we discussed last quarter will be finalized by the end of Q4.
We continue to expect 30% to $35 million in annual Opex savings stemming from these actions.
But to be balanced we also have challenges.
The macro environment remains uncertain and we continue to feel bookings pressure as our customers continue to tighten their belts and new budgets are tough to come by.
As we said last quarter. These pressures are impacting our ability to attract new logos conversion rates and contraction and make no mistake, we do face competition too.
Taking into account, both the positives and challenges a.
A few early thoughts on FY 'twenty four.
First expect from us a conservative and tempered outlook for top line growth in both subscription and marketplace.
Next we will continue our efforts to progressively build on our bookings momentum salesforce productivity and the work we are doing in customer service to better serve our customers and minimize contraction.
From a product perspective, we expect to continue to roll out our product suite in the cloud and further enhance our safe Haven platform by launching Federated Cross cloud capabilities.
As I mentioned earlier this capability is now in beta with approximately 20 clients, including several major publishers and brands.
In FY 'twenty four we're committed to increasing non-GAAP operating profit by roughly 50% year over year.
In the back half of FY 'twenty four we expect our location strategy initiatives to set us up for another year of strong operating income growth in FY 'twenty five.
Lastly, we expect to return the majority of our FY 'twenty for free cash flow to shareowners through our repurchase program.
We believe this is a great investment and will by and large offset the impact of forecast dilution.
In summary, our cautious outlook on the top line continued focus on bookings and product, but a strong increase on the bottom line coupled with the majority of our cash flow being returned to shareowners.
Q4, and full year FY2023 guidance.
Please turn to slides 12 and 13.
Keep in mind, our guidance excludes intangible amortization stock based comp and restructuring and related charges.
For the full year FY2023 we continue to expect revenue between $5 95 and $600 million.
And we now expect non-GAAP operating profit of approximately $60 million to $63 million up from our previous guide of approximately $60 million.
As always and in particular, given the macro uncertainties would ask that you be conservative in setting your revised models.
A few other callouts for Q4, we expect subscription net retention to be roughly 100 and platform net retention to be approximately 99.
In Q4, we expect our gross margin to be roughly 75%.
We expect to incur approximately $10 million of restructuring charges. These charges are primarily associated with the continued right sizing of our real estate footprint.
We expect stock based comp to be roughly $22 million in Q4 and $103 million for the full year.
In addition, we are exploring certain tax strategies that could generate meaningful cash tax benefit.
If implemented these tax strategies will result in an incremental noncash stock charge during the quarter.
This incremental charge is not included in our guidance.
Before opening the call to questions I will now close with a few final thoughts.
We are going after big long term opportunities, where we have a right to win identity data collaboration in marketplace and doing so wherever data may reside.
We are operating in a challenging environment, we are using this as a time.
And an opportunity to strengthen our operating muscle and deliver meaningful and durable bottomline improvement and cash flow and.
And at the same time do the things necessary to create sustained efficient growth.
On behalf of everyone here at life Ram Thanks for joining us today, and thanks to our terrific customers.
Operator, we will now take questions.
Sure.
Thank you.
As a reminder, if you would like to ask a question press star followed by the number one on your telephone keypad.
Your first question today comes from the line of Sam detail with Susquehanna. Your line is now open.
Hey, guys nice job on the execution.
I had a couple of questions.
First of all you guys have had a lot of interesting partnerships that you guys talked about in prepared remarks.
With some big players out there.
AWS matter.
Et cetera, just wondering if you could just talk a little bit about.
What kind of potential you see from these partnerships.
To kind of drive to drive the business going forward.
And then one follow up for you you talked about a tempered outlook for fiscal 'twenty for revenue growth can you provide any detail or color on that thank you.
Good thanks.
Yes, Sean Thanks, I'll start and this is Scott when I think about the partnerships can really kind of group them into several different categories.
First we've really made a P.
Push.
Our destination partnerships, we believe that.
The part of the value we provide.
As the reach and ubiquity of all the places they can utilize their data and so wherever they are interacting with their customers, we want to enable that securely and safely and easily.
With their data.
And so the Disney example.
Great.
Case study there Pinterest is another I would tell you.
There I think what.
The number one impact.
Is that just.
Beds us into the very fabric of ecosystem and improves the durability of our business.
So over time youre going to see an additional potential.
Revenue driver because just as our major marketing partners recognized.
They have really valuable first party data.
To do all of those destinations whether it be Disney or Pinterest and I talked about this with the Pinterest example, they recognize they have valuable first party data.
So they're looking for someone who is unbiased isn't in the media business to help them unlock that and so.
All of the Ats destinations that we have we're already underway with really interesting conversations with our major partners to help them unlock the value of their data.
70 channels and some.
You've listened to our calls for years now and we've always talked about the challenges we've had with Smb's, we see higher churn there.
You know oftentimes those clients come on and they realize they don't use our full breath the functionality and so they punch out at our cost of Serb that segment is really high. So it is an anchor on our profitability. We think there's an opportunity when we embed ourselves into.
Snowflake or AWS store salesforce with the Jeep partnership or with Microsoft and Agger I mean, there's just a wave of these things that we have underway now.
It allows us to reach those SMB clients I think more effectively.
And in addition, you know our historical strength has really been with the CMO.
Take a company like Snowflake.
They're really strong with the C. I O and so it's a nice compliment where they can bring us into conversations and vice versa, and really help one another with the selling effort. So.
Again, I'll just caution what I said in the prepared remarks.
We're early stages mess.
We've gotten a lot of attraction very early.
But we also know it takes two to three quarters to recognise revenue from these things and so I don't expect.
Big amount of revenue until the back half of next year. This year, we did about 10 million Ah I would expect that to grow fairly significantly next year, but I think the real proof will be the tail end of next year and then the following year.
And then let me touch a little bit on our FY twenty-four outlook.
I'm Gonna make a couple of abroad comment I think sort of set the stage for.
You know everybody should just recognize it's still early.
So we like you are gonna be watching the macro environment unfold over the coming months and then of course, we'll update you as we give our form of guidance in may.
Secondly, as we feel that this isn't the exact.
Time that it's appropriate to be conservative and setting expectation for the top line. It's just the best way to go is you do you're planning and it also recognizes that there is fundamentally a lot of AD.
A lot of uncertainty broadly and also in the AD market place. So sitting here today would say be conservative on the top line think about it a low single digit growth rate for the company.
With that in mind, though we would also ask everybody to think about the guidance that we've given on the bottom line.
<unk> to deliver.
Roughly 50% increase in operating income in FY 2004, so for us and thinking about all this uncertainty and the broader ecosystem today as you think about FY 2004.
Three things you can expect from US number one Ah Conservative top line you.
You can expect significant margin expansion and you can expect a strong return to capital.
Thank you guys available. Thank you.
Your next question comes from the line of Elizabeth partner with Morgan Stanley .
Now open.
Great. Thanks, so much I just first wanted to follow up on that single digit here perfect All 24.
The key port.
It's kind of more mid cap, hi, Bridget or.
46% range, what is it a dry very metal kind of incremental weakness on the queue for excellent rating.
Yeah.
Dynamic should be getting a lot better than tobacco, but just wanted to kind of get your views on that part can take fast. Thank you.
Thanks, Elizabeth further question I'd say the following the headline would be really just thinking about marketplace.
We clearly saw weakness.
As others have in that.
Third quarter and in particular in December and then we just have our January results.
Into and we also saw pressure. So I think we just have got to be really cautious as it relates to data marketplace.
We would say think about flat to down potentially next year again sitting here today.
Obviously better on the top line related to subscription.
Finally on this point again, where we are in the planning cycle is it just pays dividends to be conservative across all the assumptions again.
There's just way too much uncertainty, we want to see our bookings trends continue and even strengthened more.
And then deliver on a lot of initiatives that we have in place.
[noise] great. Thanks, Yeah that color on marketplace for the subscription Super helpful for us and it makes sense.
Conservative guidance next year.
Just as a follow up yeah I wanted to congratulations on your stomach the great partnerships and I wanted to dig into a little bit more on the AWS clean room.
Historically, you've had a really strong.
Relationship with retailing and CPG vertical and your premium offering.
Yes, definitely AWS, what's the opportunity to expand kept more meaningfully outside of retail practical is getting just retailer may be hesitant to be in AWS kind of customer question one second.
Call back SNB, specifically for AWS, but our large enterprises identical here as well.
Oh I think they are Elizabeth Scott.
I don't know if you are planning to attempt ramp up.
But it's really interesting.
One of our first sessions.
The warrens going to leave.
Is kind.
Kind of.
A discussion on commerce networks.
So we will have a major retailer on stage.
The albertson's.
We'll have general motors on stage talking about the future of connected cars.
And we'll have one of the major airlines I think on stage.
Talking about connected travel.
I think that illustrates what we're seeing.
What started as retail media networks has really become commerce networks and commerce networks really apply to almost every vertical.
So for instance in the connected car business.
Automotive manufacturers and I've been.
Basically any retail shop, any automotive repair every gas station, they should be forming partnerships and collaborating on data.
And the travel space. All you have to do is look back to the late nineties when all of the travel marketers formed partnerships based on miles [noise] well now we're entering a new age where the partnerships and collaboration will be on intelligent data usage.
So there are very few industry verticals that we don't think.
Should be experimenting with data collaboration I think it's gonna be one of the drivers for.
Marketing and data usage over the next few years.
And so I think there is a tremendous opportunity.
I think AWS sees that snowflake fees that.
G C P C's and.
We're forming similar partnerships with every major cloud provider.
The good news is that <unk>.
Regardless of who wins there.
We're going to be supporting them.
Helping their clients and data partners.
But I might add just one thing to what Scott said.
It's interesting if you think of all the partnerships that we have in place and had been announced it it's pretty ubiquitous.
And if you think about multiple industries, where there are three things that are just cables takes it it doesn't matter, whether it's retail health care financial services et cetera, you have to have foundational identity.
Have to have unparalleled breach and you have to have the strongest approach to privacy and security and.
Fundamentally that's what we do.
Great. Thank you so much.
Your next question comes from the line of Chris Mccarron with Evercore. Your line is now open.
Yeah, Hi, guys. This is actually Peter Berkeley unprepared I appreciate you taking the questions here can make <unk>.
Maybe he's got just to start with you you know.
Given the choppy macro I'm just curious if you could kind of double click on the dynamics of you.
You know just how all the choppiness impacting you know and that new client.
Versus you know sort of the upsell expansion opportunities.
And then maybe just a quick follow up for you. One you know it looks like you guys are getting to 100%.
And are are for next quarter. Just just curious like you look out of you here does that keep trending down you know and then near medium term can low nineties or or do you see that sort of at the bottom. Just curious if you can kind of touch on that a little bit. Thanks.
Yeah, Peter I think the macro environment overall is cause for conservativism.
As everyone builds their models.
That said I would tell you I'm really pleased with some of the progress we're making with our sales team mentioned prepared remarks, we were really impacted by this great resignation.
We saw a lot of our sales reps lead were really a talent.
Baghdad for other companies and.
Boy, they pay to our sales reps 50, 60% more to jump ship.
So we've now rebuilt that capacity I would tell you I'm really pleased with our pipeline I think it's at an all time high our bookings.
Sequentially were up.
And so there's a lot of interesting conversations underway.
Bad Macroetch economy or not.
There are still a lot of interest in doing.
Clever things sophisticated things with data and in fact in a bad economy.
Actually encourages companies to be more innovative so I think we can benefit from that but you have to temper that with the other side of our business I mean, if if.
I was just talking about the data subscription side are are about a collaboration platform. This other side of our business that warrant touched on our data market place, that's where will absolutely see macroeconomic pressure.
We saw it last quarter, we're seeing it in the early weeks of this year and when we listened to the.
The calls of a lot of the major media companies, we hear them talking about it as well.
So all this to say is I just.
That goes something Warren said, which is it's early we wanted to get out in front of guidance for next year and talk about things in broad brush strokes, but we will learn a lot more.
In the next quarter or so before our fiscal year starts.
By seeing how the macro economy develops what happens to data marketplace.
How our cloud partnerships continue to develop as well.
And then Peter let me take the second question.
We're not gonna give long term guidance on net retention on this call are probably ever.
But what I can flat out tell you is nobody would even be remotely satisfied within the net retention trend that dips down into the low nineties just full stop.
So for US we think we're doing the right things to really turn it around what has been a downward trend.
It's what we're doing to drive higher bookings and drive higher up sell.
Secondly, it's all the work that we have going on to focus on usage and working with all our partners. So you can expect that to continue as well as the work that we're doing to reduce any impact of contraction. So no longterm guidance today, but make no mistake 100 is not our end objected whatsoever.
It's very helpful call or thinking about.
Your next question comes from the line as Brian Fitzgerald with Wells Fargo, you're lying is now open.
Thanks, Scott, there's a sense out there may be that the competitive said is expanding some players and clean rooms, and CDP, an ANTEC filled out some lighter weight kind of onboarding in at any resolution capabilities were wondering if if you could give us your take on that trend whether or not you are there.
They're behind the scenes pairing some of these and then we'd imagined larger clients want to use one provider with many activation option, but I'm wondering if you if you place in the market for some of these newer blighter wait offerings out there.
Well.
It's interesting I mean, we were pretty unique but we've always faced competition and you'll go back a decade people would talk about us competing with D. M p's or more recently dsp's, but in reality that masks, what was really happening which is repower those things.
And I think that is going to be the case going forward as well.
And.
Sort of D M P's and Dsp's will increasingly be talking about C D PS and and the marketing clubs.
We've had some recent announcements cdp's I think it was last quarter I talked about our sales force collaboration for their Genie launch.
More recently I've talked about obviously AWS today and snowflake.
We continue to push forward on that partnership.
It's so funny I, often times get investor queries, when they see the announcement of Disney and trade score today as axioms Snowflake partnership and we just smile because when.
When the announcement occurs with two partners that were working with.
What gets left unsaid is that they are riding our rails to deliver the joint value.
So every time you see one of those things that's.
The opportunity for Leibrand.
And just to make it real clear.
What I think about what clients need.
They obviously, indeed storage and compute they need a service layer.
And they need.
The ability to do segmentation at a good G Y those will be provided by the marketing clouds.
<unk> the sales forces of the world.
That's never been the business that we better.
However, the concept of foundational identity.
Our ubiquity and the connected ecosystem.
We spits it all together and.
And so we make the marketing clouds actually work, we make the data that sits in them be usable.
At all the destinations that matter.
So we.
We think.
There is a real essential role for US you hear me talk about the fact that we've knit ourselves into the very fabric of the ecosystem.
I think all of these partners are potential growth opportunities for us long term.
Okay. Thanks I appreciate it.
Your next question comes from the line of Jason Crier Crank on your line is now open.
Thank you I I was actually interested in Warren's comment on C. T V data partnerships, and specifically, making media more addressable. So we've heard a lot of our conversation. There's just limited access to truly addressable inventory and connected television. So just curious what you think your role is in that ecosystem and if you think you could.
Serve as a catalyst to making more of that inventory true the addressable.
Oh I Love. This question, what I would tell you is too often when people talk about C. T V.
You're hearing about programmatic C. T V, which is a very small slice of the CTV environment. When we play there and we power the folks that play there but.
But we usually it's a much bigger opportunity to be making.
[noise] higher upfront C T V inventory addressable and Targetable.
And so we already have partnerships with virtually every major CTV player not just for programmatic, but for the vast majority of their inventory.
And those that you haven't heard US talk about historic Lee I think you'll you'll hear us talk about in the coming months.
So <unk>.
Really important part of what our clients are trying to do they don't just do programmatic. They don't just do display advertising.
Advertise on C. T V. They advertise an email they want to make their data available at point of sale.
And we enable all of those things.
So we are much more ubiquitous.
Than any mmm.
One media tactic really excited about what you'll hear.
From us and the capabilities will expand their in the coming year, Hey, Greg I would I would add one thing on the point is.
No uncertain.
And places in the market, there's just so much demand.
That you don't even need to do targeting.
But I think that's a short term phenomenon and I think the Disney announcement today was really Great example.
Where the streamers will go.
And what will be done at the bottom line is when you use data effectively you're gonna create better cpm's, you're gonna create higher levels of revenue.
Thank you guys.
Your next question comes from the line Mark.
Works with bench My company, you're lying is now open.
Thank you good evening guys a couple of specifics.
On the a T F publisher groan.
I think that will probably 1500 to 2000.
The recorder, which has been applied for the last sequence just curious what what drove that if there was any specific partnerships.
That contributed there.
And then two on and Safe Haven I'm, just curious if you could give us an update on the air trajectory.
And I'm, sorry, if you didn't already I might've missed it but that'd be helpful. Thanks.
Yeah.
What I would tell you is I am not sure that there is any one single thing rather I would just say we've reached critical mass.
And it's not driven.
Now by Google's timeline for Cookie deprecation, rather, it's just driven by the fact that Addressability works more effectively.
Our publishers are seeing fairly significant Microsoft published the case study about a year ago, showing 40 per cent.
Lifting yields when they switched from cookies too.
Dedicated inventory and.
And the vast majority of our publishers are saying similar things.
And so.
Those stories those case studies travel fast and virtually every major publisher.
Wants to wants to deepen their partnership.
And it's not just in the U S. It's worldwide.
And I think this is another thing that really sets us apart that we probably don't.
Talk about nearly.
Nearly enough we're not a U S company, we are a global company and if you are a global advertiser. The only way you can reach your audience.
Dozens of countries that you want to be in.
Is through library up.
So all of the partnerships that were signing our global and in many cases, we are the only authenticated option.
And some of those markets. So I think all that's coming together.
That said, it's still early stages in terms of.
The vast about a media flowing through these authenticated channels. So I think that plays out over the next couple three years.
Mark the only other thing I would add is.
In our in our deck, you'll see a bunch of case studies that we've linked to.
If you haven't had a chance to take a look at the case studies would encourage you to do so because you can really see the effectiveness of overall ats.
And then to your second question.
One thing that.
Just everybody sort of think about is increasingly liveramp as a platform sale.
And Safe Haven is our enterprise platform. So we don't think in terms of discrete products. What we think is how do you use that platform for different use cases are.
Use case could be activation it could be measurement it can be identity or it could be collaboration so increasingly we're gonna be just talking about the platform and.
And not discrete element called safe Havens say payment is our platform.
To your specific math, though as we go through this transition.
Safe Haven influenced AOR is up about 62% year over year.
It's gone from roughly 20% of <unk> to about 29% again, a year over year, so of 900 basis points.
That's helpful. Thanks, <unk> I appreciate Ya.
No. Thank you.
Your next question comes from the line at Dean Stevens. Your line is now open.
Hey, Thanks for squeeze me I appreciate it I'm on for next Engler. So we were wondering as fast services continue to proliferate with like Vida announcing today. We were just wondering about your exposure to that and if it's visible enough for you to frame up you know how that is contributing to CDB grow.
If at all and maybe just any long term thoughts on fast.
I would let me, let me kick things often.
Come in and maybe Scott with specific.
Add things that may or may not have been announced.
Big picture thinking about our T V strategy in our T. V strategy is to make every impression addressable so for US we have partnerships with all the major mvpds with dish with Directv.
With all the major publishers, whether it's Fox to be Paramount Warnermedia, Hulu Roku today, we announced Disney and also in mobile so as we think about our approach to CTV it boils down to that first statement.
We intend to make every impression addressable and CTV is an important part of the overall value.
The overall value that we create.
Yeah, I mean, I don't know much to add other than.
As some of the streaming services start to accept advertising.
Ah.
You can get.
A nice revenue bump simply through volume.
But that gives you a one quarter.
Next quarter.
Volume doesn't grow.
Incidentally, you have to start turning the yield lover.
The only way you improve your yield.
Is through better targeting both context.
And user.
And.
That's what we provide so I look at things like this.
The opportunity for us.
Feels a lot like the business that we've been in forever.
Gotcha, that's it for me thanks, guys. Thank.
Thank you.
There are no further questions at this time when I turn the call back over to yeah, great well. Thank you operator, and thanks to all of you for joining us today, let.
Let me conclude again, which is good for your final thoughts first we are really excited about the markets that we play in their bag.
Big long term opportunities and we believe that we are playing in demonstrating right to win.
Whether it's an identity, whether it's in data collaboration.
Whether it's in measurement or whether it's in market place and then doing so wherever database may may reside.
Second point would be we are in an uncertain environment and I'd repeat the three big takeaways, you should walk away with correctly 24.
We're going to see is forecast to conservative top line.
You're going to see us give guidance that will involve significant margin expansion and you'll see a strong return of capital.
And then finally.
Just we hope all of you are going to join us that ramp up on February 28th and March 1st.
We've got a great lineup.
Customers have clients and partners and competitors and everybody else who will be in attendance.
And we'd love to have you there. So if we can help with your registration please reach out to to drew Cassandra with that again. Thank you and we look forward to follow up calls.
Thank you. This concludes today's call you may now disconnect.
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