Q2 2023 Tremor International Ltd Earnings Call
Welcome to Tremors International's second quarter ended June 30th, 2023 conference call. At this time, participants are in a listen-only mode with a question and answer session to follow at the
This conference call is being recorded and a replay of today's call will be made available on the Investor Relations section of Tremor's website. I will now hand the call over to Billy Eckert, Vice President of Investor Relations for introductions and the reading of the Safe Harbor Statement.
Billy, please go ahead. Thank you, operator. Good morning, everyone, and welcome to Tremor International's Financial and Operating Results Call for the three and six months ended June 30th, 2023. With us on today's call are Ofer Druker, Tremor's Chief Executive Officer, and Saghian Ihry, the company's Chief Financial Officer. This morning, we issued a press release which you can access on our IR website at investors.tremorinternational.com. During today's conference call, we will make forward-looking statements. All statements other than statements of historical fact could be deemed as forward-looking. We advise caution and reliance on forward-looking statements. These statements include, without limitation, statements and projections regarding our anticipated future financial and operating performance, market opportunity, growth prospects, strategy, financial outlook, partnerships, and anticipated benefits related to those partnerships.
and forward-looking views on macroeconomic and industry conditions, as well as any other statements concerning the expected development, performance, and market share, or competitive performance relating to our products or services. All forward-looking statements are based on information available to assess the date of this call. These statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results and different materially from those implied by these forward-looking statements.
including unexpected changes in our business or unexpected changes in macroeconomic or industry conditions. More detailed information about these risk factors and additional risk factors are set forth in our filings with the U.S. Securities and Exchange Commission, including but not limited to those risks and uncertainties listed in the section entitled Risk Factors and our most recent annual report on Form 20F.
Trevor does not intend to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Additionally, the company's press release and management statements during this conference call will include discussions of certain measures of financial information in IFRS and non-IFRS terms.
We refer you to the company's press release for additional details including definitions of non-IFRS items and Reconciliations of IFRS to non-IFRS results. At this time, it is my pleasure to introduce Over Druker, CEO of Tremor International. Over, please go ahead.
Thank you Billy and welcome to everyone joining us today. I will begin by providing an overview of our results and strategic initiatives.
I will then hand the call over to our CFO , Saginori, to discuss our financial.
We then open the call for questions.
As a reminder, Q2 and H1 2023 results reflect the combined performance of Tremor International and Amobi, while Q2 and H1 2022 figures do not include results from Amobi.
Several years ago, beginning with the acquisition of Freedom1 in 2019, we embarked on a mission and strategic journey to become leaders in the CTV advertising arena. We strongly believed and correctly predicted that CTV was the next major frontier for advertisers to reach potential customers, enhance brand recognition and drive future growth. After more than four years, highlighted by significant organic growth, a public listing in the US, the creation of key partnerships and the successful acquisition and integration of three additional companies, I am pleased to report that Q2 reflects an important milestone on our path to CTV leadership. In parallel with the completed integration of Amobi, a massive tech-rich acquisition we announced last September which armed us with significantly added scale and important data.
planning and enterprise DSP capabilities, we took a very important step to rebrand our major products and platforms under a single united brand, Nexen. The intent of the rebrand was to simplify our story to the market and it seems that this intention has been well received by customers and prospects resulting in an overall better understanding of our business.
The name Nexen is a note to the horizontal nature of our platform.
going from the Latin word next to it, which means to connect or bind.
We believe the new name captures our ability to link different parts of the ecosystem, including the demand and supply side, as well as linear and connected TV, to create something that is both future-facing and impactful.
As part of the rebrand we change the name of our DSP to Nextend DSP, our SSP to Nextend SSP and our ad server to Nextend ad server.
With Nexen SSP and Nexen Edge servers collectively going to market as Nexen controls.
The rebrand is simplified the value proposition of our unified data driven platform for our teams customers and prospects.
It has also positioned our sales teams to achieve greater success packaging multiplied solutions for customers to enable them to better accomplish goals, all of which we are confident will drive increased revenues per account over time.
We also plan to change our parent company name from Tremel International to Nexen International which is subject to share our vote at our AGM later this year.
During the second quarter we achieved our ambitious targets of both completing the majority of the technology integration successfully integrating large scale acquisitions in a timely manner for the benefit of customers and shareholders. As I mentioned we strongly believe in CTV and bet on its growth since 2019 working for several years and investing significant resources to enhance our technology capabilities and footprint in the segment. We believe we now possess one of the most scaled data fueled and comprehensive unified horizontal edtech platform in the open internet which we are confident will enable us to gain share within CTV for ease to come. Our platform boasts differentiated and exclusive data including exclusive global ACR data through Vida as well as robust and unique planning, activation, targeting and measurement solutions. These solutions are purpose built for advertisers, agencies, CTV publishers and broadcasters to optimize, return and exceed KPIs particularly within CTV. Our ability to cater to both sides of the ecosystem enable us to holistically serve customers.
providing them significant data and cost advantages while positioning the company to maximize future revenues and profitability. We quickly executed our integration plan saving significant costs through the reorganization of our now unified employee base as well as through technology, vendor and data hosting cost savings associated with consolidation of our DSPs into a significantly enhanced next run DSP.
We believe Nexon DSP is one of the most powerful DSPs in the open Internet. It features robust enterprise self-service and media buying capabilities, unmatched linear and CTV cost planning technology, and critical TV data including exclusive global access to VDAS ACR data for targeting and measurement.
The combination of which is extremely beneficial to advertisers and agencies.
Following the bankruptcy of MediaNet, we believe the Nexon DSP is one of the only major DSP options remaining in the open Internet and that we will benefit from both the added scale of the Amobi acquisition as well as this industry consolidation. Over the past several months, we have also worked hard to enhance our combined sales capabilities, go-to-market strategy and overall market awareness. We believe this combination
Through the AMOBE acquisition, we added two important technology capabilities that we are particularly excited about. We believe both strongly enhance and complement our already robust platform and position us extremely well to attract new customers and encourage current customers to increase spending on our platform. As announced in April , we launched our first two-market gross platform planner in April enabling broadcasters, advertisers and agencies to holistically plan campaigns simultaneously across linear TV and CTV.
While CTV is expected to grow at much faster cagr of around 17% through 2025 according to eMarketer and its primary focus for Nexen linear PV currently represents a significantly larger market.
We believe the ability to cross-plan campaigns will accelerate our CTB opportunity as we can now serve linear advertisers.
seeking to expand into CTBs to reach incremental audiences and in answer terms as the two formats converged.
This is the unique technology that will take time to accelerate adoption.
But we believe it will generate value for our customers and drive long-term strategic partnerships.
We have already seen adoption by and significant interest from some of the world's largest agencies in both customs.
The second physical technology gained through AMOBI is next in discovery.
which helps advertisers leverage and organize significant amounts of data.
simultaneously across web, social, media and TV to enable enhanced audience knowledge and better audience targeting.
to more efficiently and effectively plan campaigns.
By leveraging XM Discovery, advertisers and agencies can integrate powerful audience data into campaign plans to seamlessly activate through our DSP with a push of a button.
and ultimately maximize return on advertising spend. This offering has generated adoption buy and significant interest from both customers and prospects and we have confidence it will continue to drive additional customers to our platform.
We also announced a partnership with SCOPE3 creating a first to market green media product for CTV.
The partnership enables top three carbon emission measurement methodology.
to be applied to CTD inventory with buyers able to access GMP curated views through the Nexon SSP.
This allows customers to achieve performance goals while mapping and measuring carbon emission of previous spend within CTV.
This tool has generated significant interest from and adoption by agencies and sustainability has become an increasingly core focus for them and their customers. Continued strategic investment in creating products purpose built for success within CTV has been core to our ability to generate as much momentum as we have in the format and we believe it will be instrumental to us continuing to grow, share in the future. In Q2 2023 we delivered LTE over you and quarter over quarter.
increases in contribution X-Tech, CTV revenues and programmatic revenue. We also significantly improve adjusted EBITDA and adjusted EBITDA margin compared to Q1 2023 due to higher contribution X-Tech driven by increased demand for programmatic solutions.
and improve environment compared to LEQ1 2023.
and the cost-benefit associated with completing the AMOBI integration.
However, contribution X-Tech was partly offset by declines in our performance business as well as continued challenging advertising conditions driven by macro uncertainty.
from $17.8 million in Q2 2022 as well as 20% increase from Q1 2023. For H1 2023 we generated contribution X-TAC of $147.1 million reflecting an increase of 4% compared to $141.8 million in H1 2022. contribution X-TAC growth was driven primarily by increase for dramatic revenue.
We generated programmatic revenue of $76.3 million in Q2 2023 reflecting 26% growth from $60.7 billion in Q2 2022 as well as 22% growth from Q1 2023 to 2023. The following scatter report contains a summary of the attendee results about who received
and programmatic revenues of $138.8 million in H1 2023 reflecting 16% growth from $119.8 million in H1 2022.
We also successfully extended within CTV.
Generating Q2 CTB revenues of $24.7 million reflecting 5% in over a year growth from $23.6 million in Q2 2022 as well as 16% growth from Q1 2023. We generated CTB revenues of $45.9 million in 2020.
growth from $39.4 million in H1 2022.
In addition, we significantly improved adjusted EDD dye and margin.
despite an approximately 1.7 million dollars adjusted EBITDA headwind related to the bankruptcy of MediaMet. While the bankruptcy of MediaMet did add an impact on our adjusted EBITDA during Q2 2023, we believe we may benefit from potential new advertisers and talent additions related to this major DSP company exiting the market. Our adjusted EBITDA margins increased to 25% on revenue basis and 26% on contribution ex-tech basis in Q2 2023. Doubling from adjusted EBITDA margins of 12% to the current EBITDA margin of 12% in Q2 2023.
on a revenue basis and 13% on a contribution expect basis in Q1 2023. Please note that Tammobi was operating at a significant loss when we acquired the company which reduced our margins compared to period prior to the acquisition.
This increase following the competitive integration underscored our success optimizing our cost structure to expand profitability, which we continue to expect to further improve over H2 2023 compared to H1 2023.
Our partners at Vida and ISEPS continue to achieve success growing global share and distribution.
VitaNow serves as a CTV operating system for over 21 million connected TVs in approximately 180 countries.
I sense, including to Shiba, according to the data from ABC Weibo, the fastest growth rate in the world for CTV shipment in H1 2023.
shipping approximately 12.4 million small tbs, a year-over-year increase of roughly 22%.
iSense Global Shipmanship increased to approximately 14%, a record high for iSense and they continue to rank second in the world for global TBC shipmanship.
If ISENS continues to grow market share and if Vida, ISENS CTV operating system continues to grow distribution.
We expect to benefit from revenues opportunities associated with our investment in VITA and anticipate customers will increasingly seek to leverage VISA ACR data for CTV targeting and measurement.
Our investment enabled global ACI data exclusivity and ad monetization exclusivity on Vida media in the US, UK, Canada and Australia for several years. We believe this reflects an incredibly powerful partnership given Vida and ISEIN's growth rate and as most major OEMs operate as work gardens offering very unique data and advertising opportunities for our customers. Finally we continue successfully growing our advertisers and supply partners based in Q2 and H1 while also retaining the vast majority of our largest and most significant customers. In Q2 2023 the company added 65 new actively active users to the company and the company
first-time advertiser customers, including 30 new enterprise self-serve advertiser customers and added 110 new actively spending first-time advertiser customers during H1 2023 across travel CPG and entertainment vertical
as well as others. Nexon Studio, formerly Truli, also launched the industry's first voice-activated aid able to run across all CTV environments.
further expanding on our company robust and significant PTV capabilities.
Additionally, we added one other control, new supply partners.
including 100 in the US during Q2 2023 and 174 new supply partners including 149 in the US during H1 2023. They call several verticals and formats including CTV, broadcast TV, live sports and gaming.
H&L, a multi-service agency, following its satisfaction with the Nexon DSP, expanded its product adoption to leverage more of our solutions including Nexon Discovery, VITAS ACR data and our cross planner.
Now that we have rebranded, completed the unification and integration of our platforms and people, and added new CTV capabilities, we anticipate being able to generate more success stories like HNL where partners adapt, multiply technology and data solutions across our product suite.
particularly as market conditions improve. With that it's my pleasure to turn the call over to Stagi.
Thank you, Ofer. Today, I will review the highlights and key financial and operational drivers of our Q2 and H1-2023 performance and will also discuss our forward-looking guidance. As a reminder, Q2 and H1-2023 results are available on our website.
reflect the combined performance of AMOBI and Tremor International while Q2 and H1 2022 results do not include results from AMOBI.
For the three months ended June 30, 2023.
We generated contribution EXTAQ of $80.2 million, reflecting 13% growth compared to $70.8 million in Q2 2022, as well as 20% growth from Q1 2023.
For the six months ended June 30, 2023, we generated contribution X-TAC of $147.1 million, reflecting an increase of 4% compared to $141.8 million in age 1, 2022.
Growth in contribution extracts over Q2 and H1 2023 was driven largely by a significant increase in programmatic revenue and increased TTV revenue.
We experienced strength in food and automotive vertical during Q2 2023 as well as in our PMP business.
On the opposite side, toughness was observed in our retail vertical and also in non-CTV related video and mobile formats.
which were down year-over-year in Q2 and H1 2023, as well as in our non-corp performance business as expected, as the company continues to strategically shift its sales focus into CTV.
Programmatic revenue for the three months ended June 30, 2023 with $76.3 million, which reflected a 26% increase compared to $60.7 million in Q2 2022, as well as 22% growth from Q1 2023.
For the six months ended June 30, 2023, we generated programmatic revenue of $138.8 million, which reflected a 16% increase from $119.8 million in age 1, 2022.
Programmatic revenue as a percentage of revenue increased dramatically to 91% in Q2 2023 and 89% in H1 2023 compared to 80% in Q2 2022 and 76% in H1 2022. We expect this increased programmatic footprint to increase by about 1.5% in Q2 2023.
to remain the norm given the added programmatic base gained through Amobi, combined with the strategic shift of sales resources into our core programmatic business.
We also continue to extend our CTV share despite challenging market conditions, generating CTV revenue of $24.7 million in Q2 2023, reflecting 5% growth compared to $23.6 million in Q2 2022, as well as 16% growth compared to $20.7 million in Q2 2023.
from Q1 2023. For the 6 months ended June 30, 2023, we generated CTV revenue of 45.9 million dollars which reflected a 17% increase from 39.4 million dollars in age 1
Our success in CTV is no accident and has been driven by significant product investment and sales resource shift into this high growth segment over the last several years.
We continue to expect to generate further momentum in CTV going forward, as this is a core focus of the business where we see a strong growth runway, particularly as market conditions improve.
Video revenue continue to account for a majority of our programmatic revenue at 71% in Q2 2023 and 73% in H1 2023.
Video revenue as a percentage of programmatic revenue was done slightly from 75% in Q1 2023, but this was largely attributable to a significant increase in programmatic revenue in Q2 2023.
Video revenue as a percentage of programmatic revenue in both Q2 2022 and H1 2022 was 93% and year-over-year decrease are attributable to the addition of Amobi, which had a historically stronger non-video revenue base, a year-over-year decrease in non-CTV-related video revenue.
and significant year-over-year increase in programmatic revenue. Over time, we expect to cross-sell our video capabilities to our Moby customers, increase the number of customers leveraging us for multiple solutions within video, and attract new customers seeking our video solutions.
which is expected to increase video revenue as a percentage of programmatic revenue. During Q2 2023, we also generated significantly improved adjusted EBITDA of 21 million dollars which increased 137% from 8.9 million dollars in Q1 2023.
despite an approximately $1.7 million adjusted Ebi-Da'ed win related to the bankruptcy of MediaMeth.
This significant rebound in adjusted EDiDA was attributable to a combination of higher contribution XTACs generated during Q2 2023 compared to Q1 2023, as well as cost benefits from the complete AMOBE integration.
The approximately $65 million achieved in total annualized cost saving related to the AMOBE integration was largely attributable to the reorganization of the AMOBE employee base into Tremor International, as well as reduced technology, vendor, and data hosting fees associated with the consolidation of Tremor International.
$39.9 million of adjusted EBITDA. Q2 and H1 2023 adjusted EBITDA compared to $39.1 million in Q2 2022 and $77.8 million in H1 2022 as adjusted EBITDA over the three and six months ended June 30, 2023.
was impacted by the integration of AMOBY, which was generating losses when we first acquired the company, as well as a weaker advertising demand environment earlier in 2023.
We will continue to work towards further optimizing our cost structure on an ongoing basis to improve profitability. We believe as we generate higher levels of contribution X-TAC that the majority of increased contribution X-TAC will flow through to adjusted EBITDA given the strength of our horizontal operating model and 55% on a contribution X-TAC basis in Age 1, 2022.
We continue to expect adjusted EBITDA margins to improve in H2 2023 compared to H1 2023.
Turning to our cash flow, we generated $11.9 million in net cash from operating activities during Q2 2023 and $4 million in H1 2023 after generating net cash from operating activities of $30.4 million during Q2 2022.
and $46.5 million in Age 1 2022. Year-over-year decreases were largely attributable to a weaker advertising demand environment compared to the prior years period.
During H1 2023, we incurred approximately $5.7 million in severance and retention bonus related costs associated with the reorganization of a Mobi employee into the Tremor International Base. End of June 1930.
We had $94.2 million in net cash, as well as $80 million undrawn on our revolving credit facility.
We intend to leverage our considerable cash reserve in the future for the ongoing need of the business, as well as to support our future strategic investments and initiatives including potential future share repurchase programs and acquisitions.
We also generated non-IFRS diluted earnings per ordinary share of 6 cents for Q2 2023 and 3 cents for H1 2023 versus non-IFRS diluted earnings per ordinary share of 16 cents in Q2 2022 and 33 cents in H1 2022. Finally, I now turn to our outlook. We continue to expect stronger contribution exact, programmatic revenue and 50B revenue in H2 2023 versus H1 2023 and H2 2022.
with the majority of H2-2023 growth anticipated in Q4 2023. However, the combination of several factors have caused us to lower our full year 2023 contribution exact and adjusted EBITDA forecast.
First, we believe that continued challenging macroeconomics conditions, which have driven uncertainty and cautiousness in the advertising demand environment, will continue to drive lower spending by major agencies and advertisers in Age 2 2023 and will also limit their willingness to adopt new platforms and products over the years.
space edge-badget growth driving short-term pressure on CPMs. We believe these factors will alleviate as macro conditions improve and edge-badgets begin to expand again. As mentioned earlier, we also believe that longer and more complex sales cycles will challenge our contribution X-TAC expectations.
While intentional due to our ongoing strategic focus on expanding our programmatic footprint, we anticipate that continued decline in our performance business in H2 2023 compared to H2 2022 will also impact our full year 2023 contribution xtag. Our items emphasize on driving growth within our programmatic and enterprise solutions, which we come to a range of approximately 320 to 330.
approximately 85 to 90 million dollars from a prior range of 140 to 145 million dollars due mainly to the expectation for lower contribution expacts.
We continue to anticipate increasing our adjusted evidence in Age 2, 2023 versus Age 1, 2023 and to generate higher adjusted evidence during Age 2, 2023 than we did in Age 1, 2023.
However, we do not currently expect adjusted EBITDA or adjusted EBITDA margin in H2 2023 to be higher than in H2 2022.
We continue to expect programmatic revenue to reflect approximately 90% of full year 2020 free revenue.
And with my remarks completed, I'll turn the call back to offer.
Although the macroeconomic environment remains challenging, limiting advertisers' near-term willingness to spend and adapt new products and platforms, we believe these conditions and contribution aspect growth will improve over time.
We also believe that as our new products and unified platform gain more traction in the marketplace.
as our sales and marketing teams continue to ramp efforts, the length of our sales cycle will shorten for large enterprise deals featuring multiplied technology solutions.
With the integration of Amobi now complete and the business operating under our new unified Nextin brand we believe we are ideally positioned to offer advertisers, agencies, CTV publishers and media broadcasters a state-of-the-art platform designed to unlock more favorable outcomes and returns within CTV.
We continue to feel we are well positioned to capitalize on the rapid growth and adoption of CTV over the long term.
As the market continues to favor horizontal solutions like we have operated for years and as the industry is now more data driven and more obsessed with efficiency than ever before.
We also believe the newly added CTV capabilities and scale gained through AMOBE will give us an increasing edge over time, especially when coupled with the growing distribution of Vida and ISense and the powerful partnership and exclusivity we had via the relationship.
Following significant investment in CTB related product development over the last several years, our platform is now more technology based and customer centric than ever for partners on both sides of the ecosystem. While itís taking more time than initially expected to accelerate growth, itís also
And for our platform and new capabilities to gain more significant traction with customers in the market, we feel very strongly that this investment will pay off over the long term.
We remain confident that our data-driven horizontal technology platform will continue to position us as a key CTD partner and first call for advertisers and agencies and increasingly drive new and current customers to adopt multiplied solutions and to ensure that our customers keep medium anyone.
and increase spending across our ecosystem in the future.
we are spending across our ecosystem in the future. We remain excited for what's to come.
and want to thank our customers, employees, partners and shareholders for their continued support.
Operator, we will now take questions.
If you would like to ask a question please press star 1 on your telephone keypad. We'll pause for a moment to compile the Q&A roster. Your first question comes from the line of Matt Swanson from RBC Capital Markets. Please go ahead, your line is open. Yeah, thank you for taking my questions. Saghi, I think both from your comments what we've seen from peers, it's obviously a complicated macro question, but I think breaking down the guidance a little further and maybe focusing on what parts of the business have remained the most durable and then any color on how much of a Q4 recovery is embedded in guidance and kind of what
answer everything. So I think we are not saying like you know as the industry is suffering from macroeconomic Edwin I think we are suffering as well. We are more of a pure branding player while the other are doing a little bit tweaks into some performance and more displaying.
so you know customers agencies are pushing back their campaigns and their spend into h2 some of them are completely moving it out
We are not seeing anything on any specific verticals because we are very diversified.
and I think when we are looking on H2
At the beginning of 2023 probably a lot of people thought that H2 is going to be a massive recovery. As long as we are seeing it now and we are trying to be cautious we are not seeing a huge recovery. Of course Q4 will be the stronger over the year.
And we are anticipating like a moderate 20, 20% growth from Q4 to Q3, which if I'm looking on our peers is somewhere around the average of what we are seeing. So we are thinking the same, of course.
Now, it's mid of August , so we have a very clear forecast around what will happen in Q3 and good visibility around Q4. So, we are trying to be realistic and cautious together.
That's really helpful. And then, Ofer, maybe on a product side, it was great to hear some more about the cross-platform planner. And it just feels really well positioned for kind of the moment we're in right now in CTV. So could you just expand a little bit more specifically, I guess, on the feedback you're hearing from customers on this solution?
customers who have adopted will ramp with it.
CTV is becoming more and more mature and bigger in the market. So when advertisers wants to reach their audiences and if they are linear advertisers in the past, they need to consider also running on basically streaming and CTV. They cannot reach their targets just on linear anymore. I think it's becoming evident also on a national level and most likely also on the local level. So basically advertisers needs to reach also CTV. And streaming. So when we are looking at that, I think that our timing to go up with this solution that allow basically linear advertisers to spend also in a
in an efficient manner on CTV and linear is very meaningful because they need it but they need to do that smart. They cannot basically run in blind way both on both sides because then they will lose a lot of dollars that will run and create duplication to the same user and we show you the same head and the same reach linear and CTV which is not efficient. So basically we can offer them now to do that in the most smart.
area and I think that the slogan of better planning better results is like very is coming very clear to that now.
streaming in order to reach their target audience that they are trying to reach. I think that it's a long process. It's not happening overnight. The broadcasters, the linear advertisers are learning that. We see very good reaction already in the market from big broadcasters, big agencies that like the product, they feel that it's needed and unique in the market. And I think that we are in a good path around that. But it's not something that happen overnight. But I think that it will give us a lot of power in the future. In the midterm and long term because basically what does it mean? It means that we can basically help advertisers that are linear advertisers, which is like
around 60 billion dollars in the US to spend and to move also to to CTV. A lot of people are talking about this conversion but I think that we can really offer a solution that basically enable them to run smartly on both platforms and we can help them also to do what we call the user extension because we have a very big SSP that is rich with CTV media that can basically fulfill their needs in order to reach the audiences in the...
any campaign that they are running. So I feel that the timing, the need and the reaction in the market are very good and we need to be a little bit patient because it's not a solution that is being embedded overnight and it takes some time to basically integrate it and to learn to educate and to teach and work together with it.
with the partners in order to operate it in a smart manner. I think that this is the challenge now, but as we see, it's like the reaction and the solution is being accepted very well in the market. The fact that we are the first one to issue that, it's also giving us the title again of the innovator of the city. Can you hear me? Yes. Can you hear me?
Okay, fantastic. Could you bring us up to date on the HiSENS beta measurement product you guys were working on, when that's going to have an impact on your revenue, and then if you're going to actually sell it to third parties? Could you update us on that, please?
up to date on the HiSense beta measurement product you guys were working on, whether that's when that's going to have an impact on your revenue and then if you're going to actually sell it to third parties. Could you update us on that please? Of course.
So first of all, ISENSE is growing very immensely as we can see by the numbers. It's not related to our efforts, it's related to their efforts, but they are becoming a very strong player in the CTV globally and also in the US and we already reach numbers that are efficient for us to do targeting and measurement.
As you know, we didn't build our own solution, so we are now in discussions with several companies about measurement and also we'll open some of the segments into DSPs in order to allow people to use this data in order to target and in the future or in parallel to measure. And I think that we reached an interesting point because we are talking about it for so long.
manufacturer that he has also other challenges of course and he needs to make sure that the user experience is like perfect and that's what we try to achieve of course and we achieved with iSense and that on also to Shiba just to mention and I think that we are now in the moment that it will start to play in our favor in the issues of
in the France of targeting and measurement, and we will basically empower also other companies and allow them to use this data. And we are also going to open the international markets very soon, and it will be a very unique solution because in the US it's something that is around for six, seven years, but in the other markets it's very small.
or not existing at all. And we are going to basically launch it in some of the markets that we are being active in. And I'm sure that it will bring us a lot of value and also to the market, because we are basically enabling our advertisers and clients to target much better and to measure the results with ACR data.
Super helpful. And then my second question is on a Moby. As we've taken down the projections for the full year so much, and you guys talked about Salesforce turnover and elongating the sales cycle, which sounds like part of that is you have to hire salesmen. In the short term, was a Moby actually additive to your business or is it actually?
months we placed a lot of resources attention into the integration for Mobi it was a bigger company than us we have to remember that we when we started this integration we they were like about 1,000 employees we were around 600 employees so to integrate these two big companies into one
It's taking time. The second thing is to create the synergies and to basically reduce cost. We reduce cost by $65 million, which is about 20% of our gross, which is very difficult to do. It's like when you are flying. It's basically changing the engine of an airplane while you are flying and we did it.
I think that if we were doing that in the beginning, we will suffer today a lot because it's a loss that was generated. But we took this decision of acquiring a Mobi not based on the short term but on the long term and what technology they can offer us. So I think that also on that front when you're looking at the technology front, we basically managed to integrate these two companies to DSPs.
DSPs. We have already one platform, one sales force, one team that are operating together, which is a very meaningful event and it's not easy to conduct. So I think that it's not slowing us down and it just gave us the opportunity now to rebrand. So we also conducted the rebranding in June .
We changed the names of all the companies, we unified them, we unified the products. We did a lot of work across the company in order to do that, which will help us to do three things. First of all, internally, to give the people association to the new brand. So it's not a brand that, it's a brand that we choose. It's the first time that we choose a brand and we didn't adopt a brand.
The second thing is to make it more clear to all the clients and partners and potential partners what we really can offer. And in our last meetings with people, suddenly it's become evident to them what we can really offer to them because before that it was much more confusing with all the different brands that we were using. The third point is also to the financial markets, to investors, shareholders to understand...
in functionalities of enterprise solution. It's very common. You can look at all the sentiment of clients and the market to the brand, to the capabilities that it represent. It's very powerful. And I think that the future belongs to the enterprise solution. Meaning if you want to create stability, if you want to create prediction, you need to have an enterprise solution in your company and you have a strong one, so people will use it. And we can offer them more and more capabilities like you can see with our last deal with HNL that started with the DSP, but moved along to using our ACR data, using our DMP, using our SSP, which is exactly what we are trying to achieve.
So I think that the DSP was very meaningful and to build these all functionalities by yourself will take you years. As we know we don't have years to get better on the enterprise solution. You need to get these capabilities today.
The second two elements is the planning tool. The planning tool of the cross platform that is very unique like I mentioned to Matt. It will give us value in the mid and long term and I think that it's very powerful and we need to plan for the long term. We cannot work for quarter for quarter. I think it will be a mistake.
after serving so many years in the industry, I learned that you need to plan and to build things that will serve you in the future. And the discovery tool that is basically a very powerful element because the DSP by itself, in a way it's a commodity. But if you have all these planning tools, if you have the discovery tool that is enabling...
advertisers to learn about their audiences, to create segments and so on. And to, in a click of a button to launch as a segment to targeting on our DSP. I think it's very powerful, it's giving the agencies and the brands, the reason to adapt our DSP. So that's what we are doing and I'm really glad for the acquisition of AMOBI and I think that it was a real and we are ready for the future.
Thank you very much. Thank you, Laura. Your next question comes from the line of Andrew Marrock from Raymond James. Please go ahead. Your line is open.
Thanks for taking my questions. In the context of your commentary around longer sales cycles and some of the sales staff turnover and things like that, citing a few notable wins in the quarter bringing on 65 new advertisers over 100 new supply partners, what does the ramp period look like for a new customer or a supply partner for you? Are they
the outcome is much shorter. So basically when you integrate a new supply source that first of all the integration is like a not long it's in a matter of weeks and also the testing is not long is a matter of less than a few weeks it can do it can that some of that can be done in parallel so the effect of the of the media side is more is more is faster. Regarding the new means of advertisers it's a longer process and I will explain why because basically advertisers don't need to use five or six DSPs they are trying to lower the number of DSPs that they are using they are trying to lower the number of systems that they are using because of two elements first of all
They cannot train their people on so many platforms. It's becoming very complicated. The second thing is cost. You know, so they don't need so many platforms. They don't need so many complications to complicate their basic activity. So when we are coming in, we need to basically replace someone, which usually takes more time and people are scheduling their let's say RFI's or consideration for the future.
being even considered but now we are talking to top retailers, to top travel travel company, to top other companies that are showing interest in our solution because of all the elements that I indicated to Laura also and to and to Matt before.
So I think that it's a longer process but it will do two things that you know can be very interesting for investors and shareholders. One of them is long-term revenue. So basically even when it's taking us time to integrate our solution and to win an account it will also take time to take us out of there if the future if someone wants to change it's giving you more stability and it's a long-term solution and you can see it
work with these companies for many many years and usually if you are providing them good service they have no reason to replace you and we are very working together and transparent with our customers so we don't see any reason for people to switch. The second thing is giving a lot a better predictability about how much revenues we can generate in the future compared to
the managed business which is an I.O. that is being renewed all the time. So in this process you have a discussion with the client about how much they are going to spend in the next quarter, how much money they are going to spend next year, what is their need from technology perspective and you can address it in a much better way.