Q3 2023 PubMatic Inc Earnings Call

Speaker 1: Hello, everyone, and welcome to PubMatic's third quarter 2023 earnings call. My name is Christian and I will be your Zoom operator today.

Hello, everyone and welcome to <unk> third quarter 2023 earnings call. My name is Kristian and I will be your zoom operator today.

Speaker 1: Thank you for your attendance. This webinar is being recorded.

You for your attendance this webinar is being recorded.

Speaker 1: I will now turn the call over to Stacey Clements with the Blue Shirt Group.

I will now turn the call over to Stacie Clements with the Blue shirt group.

Good afternoon, everyone and welcome to <unk> earnings call for the third quarter ended September 32023.

Speaker 2: Good afternoon, everyone, and welcome to Plamatic's earnings call for the third quarter ended September 30th, 2023. This is Stacey Clements with the Blue Shield Group.

Stacey commented the blood sugars and I'll be your operator today, joining me on the call over to Heath go out co founder and CEO, Steve Penciling CFO.

Speaker 2: Joining me on the call are Rajiv Goel, co-founder and CEO , and Steve Pantalek, CFO .

Before we get started I have a few housekeeping items today's prepared remarks have been recorded after electricity, even Steve well her slides Q&A. If you plan to ask a question. Please ensure that you have such as Germany to display a full name and firms and use the raise hand function located at the bottom of your screen a copy of our press release can be found on our website at investors top thematic dot com.

Speaker 2: Today's prepared remarks have been recorded, after which Rajeev and Steve will host live Q&A. If you plan to ask a question, please ensure that you set your Zoom name to display your full name and firm and use the raise hand function located at the bottom of your screen. A copy of our press release can be found on our website at investors.pematic.com.

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Speaker 2: I would like to remind participants that during this call management will make...

I would like to remind participants that during this call management will make forward looking statements, including without limitation statements regarding our future performance market opportunity strategy and financial outlook.

Speaker 2: without limitations, statements regarding our future performance, market opportunity, growth strategy, and financial action.

Speaker 2: For the statements are based on our current expectations and assumptions regarding our business, the economy and other

Forward looking statements are based on our current expectations and assumptions regarding our business the economy and other future conditions. These forward looking statements are subject to the inherent risks and uncertainties uncertainties and changes in circumstances that are difficult to predict you can find more information about these risks and uncertainties and other factors in our reports filed from time to time with.

Speaker 2: for where the team statements are accepted to the inherent risks, uncertainties, and changes in circumstances that are difficult to predict. You can find more information about these risks and uncertainties and other factors in our reports filed from time to time.

The Securities and Exchange Commission.

Speaker 2: including our most recent form 10K and any subsequent biotrames on forms 10Q or 8K, which are on file with the Security Zixtings Commission and are available at investors.pomatic.com.

<unk>, our most recent Form 10-K and any subsequent filings on forms 10-Q, or 8-K, which are on file with the securities and Exchange Commission and are available at Investor thematic Dot com.

Speaker 2: Our actual results may differ material-based on those contemplated by the floor-relicting statement. We caution you, therefore, against relying on the following. We canvas demonstrate the procedures to Hatchimal Off-Dream household, the

Our actual results may differ materially based on those contemplated by the forward looking statements. We caution you therefore against relying on any of these forward looking statements. All information discussed today is as of November eight 2023, and we do not intend and undertake no obligation to update any forward looking statement, whether as a result of new information future developments or otherwise.

Speaker 2: All information discussed today is as of November 8, 2023, and we do not intend and undertake no obligations to update any forward-looking statement, whether as a result of new information, future developments, or otherwise.

Yeah.

Speaker 2: accept as may be required by law. In addition, today's discussion will include references to certain non-GAAP financial measures, including adjusted EBITDA, non-GAAP net income, and free cash flow. These non-GAAP measures are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP.

Except as maybe required by law.

In addition, today's discussion will include references to certain non-GAAP financial measures, including adjusted EBITDA non-GAAP net income and free cash flow.

non-GAAP measures are presented for supplemental informational purposes, only and should not be considered a substitute for financial information presented in accordance with GAAP.

Speaker 2: The reconciliation of these measures to the most directly comparable GAAP measures is available in our press release. And now I will turn the call over to Rajeev.

A reconciliation of these measures to the most directly comparable GAAP measures is available in our press release and now I will turn the call over to Rajiv.

Yeah.

Thank you Stacy and welcome everyone. We.

Speaker 3: We delivered above expectations for both revenue and adjusted evita. The upside in revenue was driven by an increase in monetized impressions across all formats.

We delivered above expectations for both revenue and adjusted EBITDA. The upside in revenue was driven by an increase in monetize impressions across all formats and once again, our durable model led to increased profitability and margin expansion and healthy free cash flow.

Speaker 3: And once again, our durable model led to increased profitability, margin expansion, and healthy free cash.

This quarter, we continue to add new logos and deepen existing publisher and buyer relationships.

Speaker 3: This quarter, we continue to add new logos and deepen existing publisher and buyer relationships.

Speaker 3: Total activity from SPO deals grew to an all-time high of 45%, hated partly by the launch of active

Total activity from Spo deals grew to an all time high of 45% aided partly by the launch of activation.

Speaker 3: and customers and partners are seeing great results from our expanded solutions.

And customers and partners are seeing great results from our expanded solutions suite.

Speaker 3: This quarter highlights the momentum we're building in the business and fuels our growth expectations for the fourth quarter of mid single digit year over year revenue.

This quarter highlights the momentum we're building in the business and fuels our growth expectations for the fourth quarter of mid single digits year over year revenue growth.

I recently spent a week with customers and prospects at advertising week, New York and I've never been more energized about our long term growth opportunities.

Speaker 3: I recently spent a week with customers and prospects at Advertising Week New York and I've never been more energized about our long-term growth opportunities.

Speaker 3: Our customer interactions indicate that cell site technology that fits closest to the publisher and therefore to the consumer is key to driving long-term sustainable growth in the programmatic ad mark.

Our customer interactions indicate that sell side technology that fits closest to the publisher and therefore to the consumer is key to driving long term sustainable growth in the programmatic ad market.

Speaker 3: Several key trends are driving this, and we believe our buyer and publisher relationships are strengthening as a result.

Several key trends are driving this and we believe our buyer and publisher relationships are strengthening as a result.

Speaker 3: First, buyers are embracing programmatic advertising to automate the purchase of high-value connected TV and video-hatted.

First buyers are embracing programmatic advertising to automate the purchase of high value connected television and video AD inventory.

Speaker 3: Self-set technology companies like Permanek enabled its access at scale across the open-air.

Sell side technology companies like somatic enabled this access at scale across the open internet.

Speaker 3: Second, consumer privacy changes have resulted in increased global regulation and the looming deprecation of the third party.

Second consumer privacy changes have resulted in increased global regulation and the looming deprecation of the third party cookie.

Speaker 3: These trends have fueled tremendous innovation across the industry. In many new solutions or best leverage when the technology sits closer to the consumer and publish.

These trends have fueled tremendous innovation across the industry and many new solutions are best leverage when the technology sits closer to the consumer and publish it at.

Speaker 3: At POMATIC, we are the technology platform at the point of consumer consent.

Somatic we are the technology platform at the point of consumer consent.

Speaker 3: And lastly, as our industry matures, there's been an ongoing imperative for greater control over the digital advertising supply chain and increased efficiency across the eGUS.

And lastly, as our industry matures theres been an ongoing imperative for greater control over the digital advertising supply chain and increased efficiency across the ecosystem.

Speaker 3: These trends are forcing publishers and buyers to reevaluate and reconstruct their supply chains to meet their evolving needs. Havmatic is a key technology.

These trends are forcing publishers and buyers to reevaluate and reconstruct their supply change to meet their evolving needs komatik as a key technology partner in this process.

Speaker 3: Our success stems from our own and operated infrastructure that provides greater control over the supply chain, and we believe is more efficient than alternatives in the market. This need is a driving...

Our success stems from our owned and operated infrastructure that provides greater control over the supply chain and we believe is more efficient than alternatives in the market.

This need is a driving force in our development of activation.

Speaker 3: Since our inception, we have prided ourselves on our ability to anticipate market trends and build for the future.

Since our inception, we have prided ourselves on our ability to anticipate market trends and build for the future.

Speaker 3: I'm extremely proud of the team and the new bar they have set for product development and speed to market.

I am extremely proud of the team and the new bar they have set for product development and speed to market.

Speaker 3: Our pace of innovation has accelerated, and engineering productivity has increased over the course of the-

Our pace of innovation has accelerated and engineering productivity has increased over the course of the year.

Speaker 3: Field and part by generative AI, we have and continue to accelerate software development, automate software testing, and optimize code within our infrastructure.

Fueled in part by generative AI, we have and continue to accelerate software development automates software testing and optimized code within our infrastructure.

Speaker 3: As a result, we released two major software products this year, Activate and Convert with ongoing feature releases already in the world.

As a result, we released two major software products this year activate and convert with ongoing feature releases already in the works we.

Speaker 3: We also added a record number of impressions process with an annual year-over-year reduction in CapEx by 70%.

We also added a record number of impressions process with an annual year over year reduction in capex by 70%.

Speaker 3: Our adorable Plain Antiole model allows us to invest for future growth even in midst the challenging economic environment.

Our durable financial model allows us to invest for future growth, even in midst of challenging economic environment.

Speaker 3: We believe this model, alongside our innovation vision for how the ecosystem is evolving, our expanding product suite, and our differentiated infrastructure, uniquely positioned, pragmatic to gain market.

We believe this model alongside our innovation vision for how the ecosystem is evolving our expanding product suite and our differentiated infrastructure uniquely positioned <unk> to gain market share.

Speaker 3: I'd like to spend some time today talking about how our innovative solutions are driving deep customer engagement in key areas of industry growth and set the stage for market share gains ahead.

I'd like to spend some time today talking about how our innovative solutions are driving deep customer engagement in key areas of industry growth and set the stage for market share gains ahead.

Speaker 3: In May, we launched the Activate to seamlessly connect buyers and publishers for premium CTV and online video monetization, which represents a $65 billion Tam expansion controlled from the cell set.

In May we launched activate to seamlessly connect buyers and publishers for premium CTV and online video monetization, which represents a $65 billion Tam expansion controlled from the sell side.

Speaker 3: Six month in, we are already seeing a tremendous response from buyers and publishers with an active pipeline of more than 50 advertisers, agencies and campaigns.

Six months in we're already seeing a tremendous response from buyers and publishers with an active pipeline of more than 50 advertisers agencies and campaigns.

Speaker 3: Most recently, we launched Activate in the Asia Pacific region with partners including Densu APEC, ITE, Kineso India, a unit of IPG, Madison Digital and Wish Media.

Most recently, we launched activate in the Asia Pacific region with partners, including Dentsu Hapag.

E <unk>, India, a unit of IPG Madison digital and wished media.

Speaker 3: Central to our conversations around activate is the need to simplify the digital advertising supply chain and drive greater efficiency.

Central to our conversations around activate is the need to simplify the digital advertising supply chain and drive greater efficiency.

Speaker 3: This was a driving force for one of our launch partners, Global Confectionary and PECC, their company, Mark.

This was a driving force for one of our launch partners Global Confectionary and Pet care company in March.

Speaker 3: Mars, a top 30 global advertiser, is innovating and supply chain for digital advertising with a particular focus on increasing efficiency in order to increase return on at spend and lower its carbon foot.

Mars a top 30 global Advertiser is innovating its supply chain for digital advertising with a particular focus on increasing efficiency in order to increase return on AD spend and lower its carbon footprint.

Speaker 3: Marcy Supply Path Optimization and Activate has key drivers of their strategy, particularly for high value growth formats such as CTV and online data.

Marci supply path optimization inactivate as key drivers of their strategy, particularly for high value growth formats, such as CTV and online video.

Speaker 3: Mars exceeded their campaign objectives with their initial campaign tests in Q2 and Q3, resulting in measurable ROIM.

Mark has exceeded their campaign objectives with their initial campaign tests in Q2, and Q3, resulting in measurable ROI improvements as.

Speaker 3: As a result, Mars is significantly expanding and to the fact that we activate to more products in that camp.

As a result margins significantly expanding its use of activate to more products and ad campaigns.

Speaker 3: I think Ron Amram, Senior Director of Global Media at Mars, explained it best when he said, and I quote, we are excited about our growing partnership with Pubmatic. Mars is committed to creating efficiency and sustainability in our advertising supply chain, and Activate helps us get closer to the publisher and consumers, which contributes to the overall growth of our business.

I think Ron Ameren senior director of Global Media at Mars explained it best when he said and I quote we are excited about our growing partnership with I Mab Mars is committed to creating efficiency and sustainability in our advertising supply chain and activate helps us get closer to the publisher and consumers, which contributes to the overall.

Growth of our business.

Agency holding companies are also seeing success with activate <unk>.

Speaker 3: One global agency expanded its SPO relationship to include the use of activate in order to drive better campaign performance, particularly for CTV on behalf of their clients.

One global agency expanded its spo relationship to include the use of activated in order to drive better campaign performance, particularly for CTV on behalf of their clients.

Speaker 3: With the structural efficiencies and real-time supply optimization benefits of Activate, the agency was able to exceed the client's cost per user acquisition target by over 20 percent. And it has since expanded its use of Activate to more campaigns and more accounts across the client's portfolio.

With the structural efficiencies in real time supply optimization benefits of activating the agency was able to exceed the client's cost per user acquisition target by over 20% and it has since expanded its use of activate to more campaigns and more accounts across our client portfolio.

Speaker 3: With the incremental, though still early benefit of activate, SPO as a share of activity has grown significantly to 45% in Q3 as both agencies and major brands signs strategic deals to grow their business with a met.

With the incremental though still early benefit of activating spo as a share of activity has grown significantly to 45% in Q3 as both agencies and major brands signed strategic deals to grow their business with automatic.

Speaker 3: I'm particularly excited about this metric as it highlights the upside growth potential inherent in our business.

I am, particularly excited about this metric as it highlights the upside growth potential inherent in our business.

Speaker 3: First, buyers continue to consolidate adspan across a smaller number of buttons.

First buyers continue to consolidate AD spend across a smaller number of platforms when.

Speaker 3: When the ad market returns to robust growth, we believe that the matter should disproportionately benefit and so should our public.

When the AD market returns to robust growth, we believe dramatic should disproportionately benefit and social to our publishers.

Speaker 3: And second, SPU activity comes from some of the largest ad buyers and agencies in the world. These are typically multi-year, spiky partnerships. At almost 50% of total activity on the platform, we've reached another inflection point, the sizeable, durable scale and growth.

And secondly, spo activity comes from some of the largest AD buyers and agencies in the world. These are typically multiyear sticky partnerships at almost 50% of total activity on the platform. We've reached another inflection point in the sizable durable scale and growth.

Okay.

Speaker 3: This increased buyer activity, strengthens and expands our publisher relations.

This increase buyer activity strengthens and expands our publisher relationships.

Speaker 3: Through our SPO offerings, premium publishers can access that budget from brands they have been unable to reach previous-

Through our spo offerings premium publishers can access AD budgets from brands they have been unable to reach previously.

Speaker 3: We are particularly excited about the growth potential in CTV, where PMP and programmatic guarantee transactions are most prevalent.

We are particularly excited about the growth potential in CTV where P.

<unk> and programmatic guarantee transactions are most prevalent.

Speaker 3: Local now, an ad supported streaming service owned by the Weather Channel that delivers local geopens content, wanted a technology partner that has proven expertise in CTV, PMP and programmatic guarantee deals. Alongside unique advertiser domain.

Local now and AD supported streaming service owned by the weather channel that delivers local geofence content wanted a technology partner that has proven expertise in CTV P. M P and programmatic guaranteed deals alongside unique advertiser demand.

Speaker 3: With Pubmatics, LocalNow is able to optimize data available to buyers, curate and package their inventory and audiences, and leverage our extensive SPO relationships, resulting in a more than tripling of their CTV revenue via Pubmatics.

With thematic local now was able to optimize data available to buyers keurig and packaging inventory and audiences and leverage our extensive spo relationships, resulting in a more than tripling of their CTV revenue via <unk>.

Speaker 3: The benefits that local now gained are not unique. We've seen significant growth in our P&P business over the past year, with nearly a third of our revenue now coming from these transaction types. Up nearly 10 percentage points zero.

The benefits that local now gains are not unique we've seen significant growth in our P&C business over the past year with nearly a third of our revenue now coming from these transaction tax up nearly 10 percentage points year over year.

Speaker 3: Much of this growth is coming from CTV, as we continue to acquire new streaming publishers at a rapid pace, as they look to secure ad dollars shifting from linear TV to CTV. We're also expanding technology.

Much of this growth is coming from CTV, because we continue to acquire new screaming publishers at a rapid pace as they look to secure AD dollars shifting from linear TV to CTV.

We're also expanding technology partnerships across the ecosystem.

Speaker 3: Just last month, we announced an expanded partnership with leading connected TV advertising platform Freewheel, a Comcast company, creating a direct path for buyers to access a broad set of CTV inventory via.

Just last month, we announced an expanded partnership with leading connected television advertising platform freewheel, the Comcast company, creating a direct path for buyers to access a broad set of CTV inventory via activates.

Speaker 3: We expect this expanded partnership to increase CTV revenue flowing through.

We expect this expanded partnership to increase CTV revenue flowing through activates.

Yeah.

Speaker 3: Our focus on the fastest growing segments of the industry led us to further expand our technology into commerce media and national expansion given our existing customers.

Our focus on the fastest growing segments of the industry led us to further expand our technology into commerce media and natural expansion given our existing customer base.

Speaker 3: We estimate that Convert grows our addressable market by $10 billion and includes monetization of both on-site and off-site.

We estimate that convert grows our addressable market by $10 billion 10 includes monetization of both onsite and Offsite media.

Speaker 3: While it remains early days with Convert, there is strong market recognition for the need for an integrated platform that addresses core use cases from sponsored listings to audience extensions to DLID generous.

While it remains early days with convert there is strong market recognition for the need for an integrated platform that addresses core use cases from sponsored listings to audience extension to <unk> generation.

Speaker 3: For large commerce businesses, they can seamlessly manage inventory and consumer data in one system that brands can access and lower operating costs.

For large commerce businesses, they can seamlessly manage inventory and consumer data and one system that brands can access and lower operating costs.

Speaker 3: Partly driven by the success of existing customers, a pipeline of convert opportunities has jumped 40% in just the past three months.

Partly driven by the success of existing customers our pipeline of convert opportunities has jumped 40% in just the past three months.

Speaker 3: The expanding opportunities for convert supplement our strong existing business with retailers who leverage our products to drive monetization.

The expanding opportunities for convert supplement our strong existing business with retailers, who leverage our products to drive monetization.

Speaker 3: For example, Zoolily, the online super-scorper moms is using Pubmatic to manage their onsite inventory and breaking our open-rathed header-bidding wrapper to maximize monetization from their inventory.

For example, Xu Lilly the online superstore for moms.

Using <unk> to manage their onsite inventory embracing our open ramp header bidding wrapper to maximize monetization from their inventory.

Speaker 3: Other commerce sites leverage thematic for off-site audience extension through Connect.

Other commerce sites leveraged format for off site audience extension through connect.

Speaker 3: As privacy regulation continues to increase around the world with the consumer at the center of how their data is used to deliver relevant advertising to them, through Connect, we have developed and scaled a portfolio of approaches to help publishers and ad buyers move beyond the limitations of anonymous targeting solutions such as third-party cookies or Apple's IDFA.

As privacy regulation continues to increase around the world with the consumer at the center of how their data is used to deliver relevant advertising to them through connected we have developed and scale of the portfolio of approaches to help publishers and AD buyers move beyond the limitations of anonymous targeting solutions, such as third party cookies or apples <unk>.

Speaker 3: As the primary programmatic advertising platform at the intersection of the consumer and the publisher, we sit at the nexus of consumer consent, which we believe is a long term structural advantage.

As the primary programmatic advertising platform at the intersection of the consumer and the publisher we sit at the Nexus of consumer consent, which we believe is a long term structural advantage.

Speaker 3: In many cases, Connex offerings are superior to the cookie. They provide for consumer privacy and choice as well as deliver increased ROI for advertising.

In many cases connects offerings are superior to the cookie they provide for consumer privacy and choice as well as deliver increased ROI for advertisers.

Speaker 3: As the timeline for third party cookie deprecation potentially draws near, we are seeing increasing adoption of our solution.

As the timeline for third party cookie deprecation potentially draws nearer we are seeing increasing adoption of our solutions.

Speaker 3: Already, nearly three quarters of impressions on our platform have alternative targeting signals attached other than the cookie, and we are confident that the remaining quarter will transition as well.

Already nearly three quarters of impressions on our platform have alternative targeting signals attached other than the cookie and we are confident that the remaining quarter will transition as well.

Speaker 3: Regardless, there's no shortage of impressions for buyers to transact on within our platform with hundreds of billions of daily ad impressions with alternative targeting signals available.

Regardless there is no shortage of impressions for buyers to transact on within our platform with hundreds of billions of daily AD impressions with alternative targeting signals available.

Speaker 3: We are now integrated with 29 alternative IDs with the very mix depending on the country.

We are now integrated with 29 alternative Ids with a very mixed depending on the countries.

Speaker 3: These ideas drive increased ROI for advertisers as well as an increase in publisher revenue and CPM.

These ideas to drive increased ROI for advertisers as well as an increase in publisher revenue in CPM.

Speaker 3: For example, Phyla, the Leading Entertainment Focus TV streaming service, implemented TRADEF's unified ID 2.0 on our platform in Q3, and saw an almost doubling of revenue as a result of buyer's ability to deliver more relevant ads to the company.

For example, silo, the leading entertainment focused TV streaming service implemented trade desk unified IV to point out on our platform in Q3, and so on almost doubling of revenue as a result of buyer's ability to deliver more relevant ads to the consumer.

Speaker 3: We have also skills connect to support dozens of global data providers. Further extending privacy-safe, targetable data available for buyers.

We have also scaled disconnect to support dozens of global data providers further extending privacy safe targeted data available for bikes.

Speaker 3: The end result is again, higher our life for the buyer and incremental revenue for our public.

The end result is again higher ROI for the buyer and incremental revenue for our publishers.

Speaker 3: For example, Audigent Utilizes Connect to Offer Buyers Premium Multi-Publisher T-Rated Data Sets to mean advertisers' goals across CTV, online video, mobile, and display in Maintoria scale.

For example origin utilizes connect to offer buyers premium multi publisher curated data sets to meet advertisers' goals across CTV online video mobile and display inventory at scale.

Speaker 3: And in an industry first, buyers now have access to experience unique commerce media targeting capability.

And in an industry first buyers now have access to experience unique commerce media targeting capabilities, including data such as spending models property data automotive audiences and shopping preferences.

Speaker 3: including data such as spending models, property data, automotive audiences, and shopping purposes.

Speaker 3: The matter is the first and only SSP with direct access to this data in both the United Kingdom and United States.

<unk> is the first and only SSP with direct access to this data in both the United Kingdom and United States.

Speaker 3: Lastly, we are actively working with Google to test the Privacy Sandbox APIs, specifically topics and protected audience which allow for targeting user cohorts and aim for providing relevant advertising to those users while safeguarding their privacy.

Lastly, we are actively working with Google to test the privacy sandbox Apis, specifically topics and protected audience, which allow for targeting user cohorts and aimed for providing relevant advertising to those users while safeguarding their privacy.

Speaker 3: As digital advertising evolves from cookies to various privacy safe approaches, we will continue to further scale connect and provide buyers with the targetable audiences in media that they are looking for.

As digital advertising evolves from cookies to various privacy safe approaches we will continue to further scale connect and provide buyers with a targeted audiences in media that they are looking for.

Yeah.

Speaker 3: The role of felt-side technology and in particular, Pumatic has never been more compelling as publishers look for unbiased technology partnerships, self-den drive growth, and biorecec to simplify their technology stacks to become more efficient into navigate privacy changes.

The role of sell side technology and in particular <unk> has never been more compelling as publishers look for unbiased technology partnerships to help them drive growth and buyers seek to simplify their technology stacks to become more efficient and to navigate privacy changes.

Speaker 3: As a result, we are seeing increased interest and adoption of our technology across our products.

As a result, we are seeing increased interest and adoption of our technology across our product suite.

Speaker 3: The third quarter marks strong execution and our steadfast focus on innovation, strengthening customer relationships, and driving operational efficiency.

The third quarter marked strong execution and our steadfast focus on innovation.

Strengthening customer relationships and driving operational efficiencies.

Speaker 3: This momentum positions us well for growth opportunities ahead and sets the foundation for the fourth quarter and what we believe will be an inflection point for growth. I'll now hand it over to Steve for the financial details.

This momentum positions us well for growth opportunities ahead and sets the foundation for the fourth quarter and what we believe will be an inflection point for growth I'll now hand, it over to Steve for the financial details.

Thank you Rajiv and welcome everyone.

Speaker 3: Q3 revenue was $63.7 million and adjusted EBITDA was $18.2 million or 29% margin, both above guidance.

Q3 revenue was $63 7 million and adjusted EBITDA was $18 2 million or 29% margin both above guidance.

Speaker 1: We've heated our revenue expectations for the quarter by selling more video and display impressions than projected.

We exceeded our revenue expectations for the quarter by selling more video and display pricing and projected.

Speaker 3: We also continue to execute against our key operating priorities this year, which sets us up well going to 2024.

We also continued to execute against our key operating priorities this year, which sets us up well going into 'twenty to 'twenty four.

Speaker 1: We converted the majority of our revenue to be in any incremental profit dollars, which highlights our ability to expand margin.

We converted the majority of our revenue.

Incremental profit dollars, which highlights our ability to expand margins.

Speaker 1: Our CAPEX optimization and working capital efficiency resulted in 17.2 million of free cash flow, the highest quarterly level in the early two years.

Our capex optimization and working capital efficiency resulted in a $17 2 million of free cash flow the highest quarterly level in nearly two years.

Turning to the revenue details.

Speaker 3: We saw solid improvements for both video and display revenues as the quarter progressed.

We saw solid improvements for both video and display revenues as the quarter progressed.

Speaker 1: We drove an incremental 10% monetizing impressions above expectations for the combined August and September periods. And CPM for-

We drove an incremental 10% monetize impressions above expectations for the combined August September periods.

And CPM for relatively stable from July onwards.

Speaker 3: These positive factors helped us offset a challenging July and allowed us to substantiate close the gap to our prior year revenues.

These positive factors helped us offset a challenging July and allowed us to substantially close the gap to a prior year revenues.

Speaker 3: omni-channel video revenues came in better than expected and grew sequentially from Q2 by 7%.

Omnichannel video revenues came in better than expected and grew sequentially from Q2 by 7%.

Speaker 3: Well, down approximately minus 4% year over year due to the soft July , we saw monetized oppressions accelerate sequentially through the quarter.

While down approximately minus 4% year over year due to the soft July we saw monetize precious accelerates sequentially through the quarter.

Speaker 1: As a percent of total revenue, homing 10 video revenues increased to 33%.

As a percent of total revenue Omnichannel video revenues increased to 33%.

Speaker 1: Display revenues were 67% of total revenue and decline less than anticipated have minus 4% year-of-year.

Display revenues were 67% of total revenue and declined less than anticipated and minus 4% year over year.

Speaker 1: Rabbin is approved sequentially through the quarter driven by incremental impression sold.

Revenues improved sequentially through the quarter driven by incremental impressions sold.

Speaker 1: These display results were particularly notable as we managed through Yahoo's technology transition related to its own and operated inventory, which is predominantly desktop display. Yahoo is now-

These display results were particularly notable as we manage through Yahoo is technology transition related to its owned and operated inventory, which is predominantly desktop display.

Yeah, who is now shutting down its sell side platform.

Speaker 1: We anticipate it will take several quarters for us to ramp up Yahoo monetization as they migrate their inventory to a new technology staff.

We anticipate it will take several quarters for us to ramp up Yahoo monetization as they migrate their inventory to a new technology stack.

Speaker 3: In Q3, our revenues, excluding Yahoo owned and operated inventory, grew in the low single-digit percentages on a year of your base.

In Q3, our revenues excluding Yahoo owned and operated inventory grew in the low single digit percentages on a year over year basis.

Speaker 3: Over the last several years, Yacht is proportion of our total revenue at the client as we have expanded and diversified our customer base and increased our revenue mix towards faster growing video formats.

Over the last several years Yahoo, as a proportion of our total revenue has declined as we've expanded and diversified our customer base and increased our revenue mix towards faster growing video formats.

Speaker 3: In the third quarter, Yahoo's revenues represented less than 5% of total revenues.

In the third quarter Yahoos revenues represented less than 5% of total revenues.

Speaker 4: on a trailing 12-month basis, Yahoo Revenue represented 9% of total revenue.

On a trailing 12 month basis Yahoo revenue represented 9% of total revenue.

Speaker 4: In terms of ad vertical trends, we saw improving growth through the quarter for the majority of our top 10 ad verticals.

In terms of AD vertical trends, we saw improving growth through the quarter for the majority of our top 10 ad verticals.

Speaker 4: We saw a double digit growth for the automotive, food and drink, travel, technology and business vertical.

We saw double digit growth for the automotive food and drink travel technology and business verticals.

Speaker 4: Shopping increased sequentially by about 10% for Q2, but remained below prior year levels.

Shopping increased sequentially by about 10% from Q2, but remain below prior year levels.

Speaker 4: Overall, our top 10 abridicals grew 8% year-to-year in aggregate.

Overall, our top 10 out verticals grew 8% year over year in aggregate.

Speaker 4: We continue to drive efficiency and optimization of our infrastructure that contribute to our strong financial results.

We continue to drive efficiency and optimization of our infrastructure that contribute to our strong financial results.

Speaker 4: On a year-rear basis, we have increased our impression capacity by over 20% to software optimizations with limited CAPEX.

On a year over year basis, we've increased our pricing capacity by over 20% to soccer optimizations with limited Capex.

Speaker 4: We anticipate expanding our gross margin in the future as a result of these efforts.

We anticipate expanding our gross margin in the future as a result of these efforts.

Speaker 4: On a trailing 12 month basis, our cost of revenue per million of persons processed declined by 9%.

On a trailing 12 month basis, our cost of revenue per million of proceeds process declined by 9%.

Speaker 4: Q3 gap operating expenses were 38.2 million or approximately 15% year of year increase.

Q3, GAAP operating expenses were $38 2 million or approximately 15% year over year increase.

Speaker 4: Gap net income was 1.8 million or 3 cents per deluded share.

GAAP net income was $1 8 million or <unk> <unk> per diluted share.

Speaker 4: Non-gap net income, which adjusts for unrealized loss on equity investments, stock based compensation expense, and related adjustments for income taxes with $7.6 million or $0.14 per day of limited share.

non-GAAP net income, which adjust for unrealized loss on equity investments stock based compensation expense and related adjustments for income taxes was $7 6 million or <unk> 14 per diluted share.

Speaker 4: Turning the cash, weighted the quarter with 171 million cash and marketable securities and no debt.

Turning to cash we ended the quarter with $171 million in cash and marketable securities and no debt.

Speaker 4: We generated 23.8 million cash from operations and 17.2 million of free cash flow.

We generated $23 8 million in cash from operations and $17 2 million of free cash flow.

Speaker 4: Our priority is to drive shareholder value. Our healthy and consistent cash generation fuels innovation for long-term growth and allows for strategic capital allocation.

Our priority is to drive shareholder value.

Our healthy and consistent cash generation fuels innovation for long term growth and allows for strategic capital allocation.

Speaker 4: As of October 31st, we have repurchased 3.3 million shares of our Class 8 common stock for 46.6 million cash.

As of October 31, we have repurchased three 3 million shares of our class a common stock for $46 6 million in cash.

Speaker 4: We have 28.4 million remaining in the Repurchase Program.

We have $28 4 million remaining in our repurchase program.

Turning to our outlook.

Speaker 4: Our Q4 has started out on solid footing with our October revenues growing both sequentially and year-to-year in the single digit percentage range driven by increased monetized impressions.

Our Q4 has started out on solid footing with our October revenues growing both sequentially and year over year in the single digit percentage range driven by increased monetize impressions.

Speaker 4: Importantly, both on the channel video and display revenues were up year-to-year.

Importantly, both Omnichannel video and display revenues were up year over year.

Speaker 4: In terms of ad spend by vertical, the majority of the top 10 verticals improved sequentially through October .

In terms of AD spend by vertical the majority of the top 10 verticals improved sequentially through October.

Speaker 4: Nevertheless, given current macroeconomic and geopolitical conditions, we remain cautious on brand advertising spend and, accordingly, have broadened our Q4 outlook range.

Nevertheless, given current macroeconomic and geopolitical conditions.

We remain cautious on Brian our advertising spend and accordingly have broadened our Q4 outlook range.

Speaker 4: Our outlook assumes that CPMs remain stable and general marking conditions do not significantly deteriorate.

Our outlook assumes at CPM has remained stable and general market conditions do not significantly deteriorate.

Speaker 4: Q4 revenue is anticipated to be 76 to 80 million or approximately 5% year of year growth at the midpoint, which includes the impact from the Yahoo transition reference earlier.

Q4 revenue is anticipated to be $76 million to $80 million or approximately 5% year over year growth at the midpoint, which.

Which includes the impact from the Yahoo transition referenced earlier.

Speaker 4: For the full year, we expect the revenue to be approximately 261 million at the midpoint.

For the full year, we expect revenue to be approximately $261 million at the midpoint.

Speaker 4: In terms of Q4 costs, we expect it to continue to benefit from our long-term focus on efficiency and improving productivity of our infrastructure in teams.

In terms of Q4 costs, we expect to continue to benefit from our long term focus on efficiency and improving productivity of our infrastructure and team.

Speaker 4: We anticipate that a Q4 cost of revenue will be similar to Q3's level.

We anticipate that our Q4 cost of revenue will be similar to Q3's level.

Speaker 4: We are projecting that our operating expenses will increase from Q3 in the low single digit percentage range as we continue to invest in our platform and people for long-term growth.

We are projecting that our operating expenses will increase from Q3 in the low single digit percentage range as we continue to invest in our platform and people for long term growth.

Speaker 4: Given our revenue outlook and optimized cost structure, we expect Q4 adjusted EBITDA to be in the range of 32 to 35 million or approximately 43% margin at the midpoint.

Given our revenue outlook and optimized cost structure, we expect Q4, adjusted EBITDA to be in the range of 32% to $35 million or approximately 43% margin at the midpoint.

Speaker 4: For the full year, we expect the just-a-divinity to be in the range of 71 to 74 million or approximately 20-day-percent margin at the midpoint.

For the full year, we expect adjusted EBIT to be in the range of $71 million to $74 million or approximately 28% margin at the midpoint.

Speaker 4: This full year adjusted EVA range includes 5.7 million of bad debt expense related to the bankruptcy of an ad buyer in Q2.

This full year adjusted EBIT range includes $5 7 million of bad debt expense related to the bankruptcy of an AD buyer in Q2.

Speaker 4: We anticipate a full year cat backs to be in the range of 10 to 13 million approximately 70% lower than 2022.

We anticipate our full year capex to be in the range of $10 million to $13 million approximately 70% lower than 2022.

Yeah.

Speaker 4: In summary, we believe we have built a resilient and durable business. Strategic investments we made are-

In summary, we believe we have built a resilient and durable business.

Strategic investments, we've made are beginning to deliver results.

Speaker 4: We also continue to make progress on the three operating priorities that I outlined last quarter.

We also continue to make progress on the three operating priorities that I outlined last quarter.

Speaker 4: Number one, generate significant free cash flow.

Number one generate significant free cash flow.

Speaker 4: Through the first nine months of 2023, we have delivered more than 85% of 2022's full-year level.

Through the first nine months of 2023, we have delivered more than 85% of 2020 two's full year level.

Speaker 4: Number two, position ourselves for revenue acceleration as ad spend and CPM stabilize.

Number two position ourselves for revenue acceleration is AD spend at CPM stabilize.

Speaker 4: This year we have focused on building deeper relationships with publishers and ad buyers, increasing our supply path optimization relationships, and expanding our TAM by over 75 billion with our activate and convert product launch.

This year, we are focused on building deeper relationships with publishers and admirers, increasing our supply path optimization relationships and expanding our Tam by over 75 billion with our activate and convert product launches.

Speaker 4: We've also optimized our infrastructure to increase capacity and grow Monti's impression.

We've also optimized our infrastructure to increase capacity and grow monetized impressions.

Speaker 4: This focus led to our outperforming CQ3 and we believe has created an inflection point in terms of revenue growth.

This focus led to our outperformance in Q3, and we believe has created an inflection point in terms of revenue growth.

Speaker 4: And number three, establish a new level of efficiency in our cost structure that will lead to margin expansion in 2024 and beyond as we continue to scale higher value formats like CTV and online video.

And number three established a new level of efficiency in our cost structure that will lead to margin expansion in 2024 and beyond as we continue to scale higher value formats, like CTV and online video.

Speaker 4: In conclusion, we are proud of our team's ability to execute our operating plan and excited about our growth momentum as we close out the year. With that, I'll turn the call over to Stacy for Q&A.

In conclusion, we are proud of our team's ability to execute our operating plan and excited about our growth momentum as we close out the year.

With that I'll turn the call over to Stacy for Q&A.

Thank you Steve.

As a reminder.

Bye bye.

That's 0.1.

Thanks Pat.

Right.

In the interest of time, we absolutely please limit your questions to one.

Hello.

Our first question comes from that.

Hi, Mark.

Speaker 5: Yeah, thanks, Stacy. Good afternoon, guys. Congrats on the result.

Yes. Thanks good.

Good afternoon, guys. Congrats on the result.

Speaker 5: I think I want to start off talking about the display business and kind of what your assumptions are in the Q4 and if you give me a thought to 24 because I'm sure it did feel like a great macro obviously and it really wasn't but you performed really well in that side compared all my checks in terms of how much macro pressure there was in display.

I think I wanted to start off talking about the display business and kind of what your assumptions are in the Q4 and if you've given any thought to 'twenty four.

I'm sure it did feel okay.

Okay, great macro obviously and it really wasn't.

It really well and that compared to all my check in terms of how much macro pressure there wasn't display. So maybe if you could talk a little bit about like company specific what parts are under your control and what aren't and what youre doing to execute through a challenging macro.

Speaker 5: So maybe if you could talk a little bit about like company specific, what parts are under your control and what aren't and what you're doing to execute through a challenging macro for a major revenue line for you.

Major revenue line for you.

Speaker 4: Sure, we'll break to a connect mat. So let me just start out with commenting briefly on Q3, but it certainly fielded our Q4 expectations.

Sure look great to connect Matt.

So let me just start out with commenting briefly on Q3, but it certainly feels as though our Q4 expectations.

Speaker 4: So in Q3, our outperformance was driven by incremental monetizing impressions on our side for.

In Q3, our outperformance was driven by incremental monetize impressions on our platform.

Speaker 4: And if you just step back and think about, what that implies for us as a company, what we control, we've been working over the last several quarters and years to optimize our infrastructure. And this has increased our capacity. And we've prioritized higher value formats.

You just step back and think about what that implies for us as a company. What we can control we've been working over the last several quarters and years to optimize our infrastructure and this has increased our capacity and we prioritized higher value formats, and we're seeing great progress obviously on video impressions, we can get into but we.

You also are seeing continued progress on display volume growth and so to your point about the macro the macro was largely affected cps, but because we've been stayed focused on our customers and the infrastructure, we're seeing really good volume trends in display.

Speaker 4: And the other aspect to note is that we stay focused on strengthening our relationships with buyers.

And the other aspect to note is that we stay focused on strengthening our relationships with buyers Rajeev mentioned that we've hit an all time high 45% of total activity and clearly we're starting to see the early stages of activate ramp up.

Speaker 4: Regid mentions that we've been all time high, 45% of total activity. Clearly, we're starting to see the early stages of activate ramp up.

Speaker 4: We're seeing SPO's help with private marketplace deals, 2G deals, but really overall, as an Army Channel platform, we're focused on optimizing the infrastructure, focusing on relationships, and that's certainly had an impact benefit to display.

Seeing SPL help with private marketplace deals PG deals, but really overall as an omnichannel platform. We're focused on optimizing the infrastructure focusing on relationships and that certainly had an impact benefit to display and so my expectation is going into the fourth quarter is that we can continue to see.

Speaker 4: And so my expectations going into the fourth quarter is that we can continue to see, you know, robust volume growth in monetizing pressure.

Robust.

Volume growth and monetize impressions and I anticipate that the fourth quarter potentially is going to be above year over year.

Speaker 4: and I anticipate that the fourth quarter potentially is going to be above year of year growth. So that indicates sort of the fruits of our land.

Growth, so does that indicate sort of the fruits of our labor.

Speaker 5: That's really helpful. And then maybe kind of on the other side of the coin, you mentioned Activate Big Burk, 75 billion dollar tams. But think about, you know, you got to start somewhere with a number that big. Where are like the most actionable places you think will start seeing this show up even more so in 24? Like I guess kind of what part of that 75 billion seems the most achievable near term?

That's really helpful. And then maybe kind of on the other side of the coin you mentioned activating Burke.

<unk> $75 billion Tam, but thinking about how you got to start somewhere with a number that big.

Like the most actionable places do you think we'll start seeing this show up even more so in 'twenty four like I guess kind of what what part of that 75 billion. It seems the most achievable near term.

Speaker 3: Hey, Matt, this is Regieve, I can take that. So where we're seeing, I think, the early finds of success are really around.

Sure Hey, Matt This is rajeev I can take that.

So where we're seeing I think the early signs of success are really around premium AD formats. So thats connected television and its online video. These are obviously high CPM formats.

Speaker 3: premium ad formats so that's connected to TV and its online video. These are obviously high CPM formats where from a buyer perspective.

We're from a buyer perspective, having and are having efficiency and control over the supply chain yields the greatest impact right. So if we're thinking about a 10 20 $30 CPM versus display CPM that might be in the low single digit CPM.

Speaker 3: having efficiency and control over the supply chain, yields the greatest impact. Correct. So we're thinking about a $10, $20, $30 CPM versus a display CPM that might be in the low single digit CPM.

Speaker 3: So CTV and online video and then I think particularly for non-bidded transactions, these are programmatic guarantee transactions and fixed price private marketplace transactions, where the buyer is looking for maximum reach.

So see TV and online video and then I think particularly for non dated transactions.

Programmatic guaranteed transactions in fixed price private marketplace transactions.

Where the buyers looking for maximum reach.

Speaker 3: of particular audiences and how they activate is really well positioned in those areas. So that's really where we are focused. I think over time, we'll see growth as we into a variety of different ad formats and transaction types as we get deeper into the buyers.

No particular audiences.

And I think activation is really well positioned in those areas. So that's really where we're focused I think over time, we'll see growth as we enter a variety of different AD formats and transaction types.

As we get deeper into our into the box.

Thank you.

Our next question comes from Tanya.

At Evercore.

Carl.

Speaker 6: Thanks, Stacy. Get Kenny Hoey. We can't eat us. Oh, okay.

Thanks Stacy.

We can yes, okay.

Speaker 6: I guess just one question from me to Steve on the Q4 guidance please so

I guess, just one question from me to see them and on the Q4 guidance. So.

Speaker 6: You sound confident in your guidance. Just help us please lay out the puts and takes for both Revenue and EBITDA. The visibility you have, it's November 8. You still have a month and a half to go. And any incremental contributions that you are counting for this quarter that weren't necessarily their last quarter. Thank you.

You sound confident in your guidance just help us please.

Lay out the puts and takes for both revenue and EBITDA. The visibility you have it's November eight and you still have a month and a half ago and.

Any incremental contributions that you're accounting for this quarter that weren't necessarily there last quarter. Thank you.

Speaker 7: Great. Excuse me, last quarter, last time this year in T4. Sure. Good to connect with...

Excuse me not last quarter last time this year in Q4 it sure good to connect with you sweater.

Speaker 4: So let me start out with the core aspects of our work. And that's first, we're assuming that CPMs are going to stay relatively stable. And that's what we've seen since July , relatively stable. We also expect, as is typical to this time of year, at a seasonal uptick, it is a bit muted, given sort of the macro factors that exist across the world.

So let me start out with the <unk>.

Core <unk>.

Aspects of or not.

First we're assuming that CPM to going to stay relatively stable.

And that's what we've seen since July relatively stable.

We also expect as is typical to this time of year and a seasonal uptick.

Is a bit muted given sort of the macro factors that exist across the world.

Speaker 4: And so, but we do expect CPMs to be able to disable.

So, but we do expect CPM, maybe relatively stable.

Speaker 4: But on the back of the earlier comments that I referenced about monetizing questions

But on the back of the earlier comments that I referenced about monetize impressions, we've seen great progress.

Speaker 4: We've seen great progress in the August , September period, and that continued into October . Overall, October revenues are going to be over 5% growth on a year of your basis. So that's a really big inflection point for us. That's the first time at that level this year. And that reflects the key drivers of driving both video, impressions, and display impressions.

September period and that continued into October.

Overall October revenues are going to be over 5% growth on a year over year basis. So that's a really big inflection point for us that's the first time.

A level this year.

And that reflects the key drivers.

Driving both video impressions and display impressions.

Speaker 4: And then as I referenced in our prepared comments, the guide also includes the transition that's going on with the yacht and tech staff.

And then as I referenced in our prepared comments.

The guidance also includes the transition that's going on with the Yahoo Tech stack and if you were to strip that out we are.

Speaker 4: And if you were to strip that out, we actually have a guide of about 8% year-rear growth. Now, the competence that I have is predicated on recent trends, and we try to take a balanced approach. But also, it does reflect the continuation of many of the initiatives that we started multiple quarters ago, starting out with SPO that continues to be a very important tailwind for us.

Actually our.

Have a guide of about 8% year over year growth now the confidence that I have is predicated on recent trends and we tried to take a balanced approach.

But also it does reflect the continuation of many of these initiatives that we started multiple quarters ago.

Starting out with SPL, there continues to be a very important tailwind for us.

Speaker 4: you know, a strategic focus on expanding publisher relations.

Our strategic focus on expanding publisher relationships and our new product innovation all of this contributes to our momentum.

Speaker 4: and the our new product innovation. All of this contributes to our moment.

Speaker 4: And taking together, you know, the upper form between Q3 plus the core volume trends that we're seeing gives us a positive view. Now.

Taken together.

Outperformance in Q3, plus the core volume trends that we're seeing gives us a positive view now of course, there is a lot going on in the macro and to recognize that we have broadened our revenue outlook for the fourth quarter from 76 to eight and we think that it is approach.

Speaker 4: Of course, there's a lot going on in the macro and to recognize that we have broadened our revenue outlook for the fourth quarter from 76 to 8. And we think that is appropriate to be given sort of the macro environment.

But given sort of the macro environment.

Speaker 4: And some of the things that are incremental clearly are our new product development and we're starting to see the ramp up. And so that's something that's just at the early stages. But we have multi-year runway that activated and convert. And so we are looking forward to that contributing in 24 of the off.

And some of the things that are incremental clearly our new product development and we're starting to see the ramp up and so that's something that's just at the early stages, but we have multi year runway with activated convert and so we are looking forward to that contributing in 'twenty four and beyond.

Speaker 8: Okay, thanks Steve. Sorry, just a quick follow. Did you call out any headwinds that you may have seen from the Israel war at all? Or did you see any impact?

Okay. Thanks, Steve Sorry, just a quick follow up did you call out.

Any headwinds that you may have in from Israel War at all or did you see any impact.

Speaker 7: Yeah, I would say that, you know, the overall category that seems to be ultimately affected the most is news. And we had already seen a deprecation of news over the last year and a half. And news is not inside of our top 10 ad verticals. So for us, it's relatively muted.

Uh huh.

Yeah, I wouldn't say that.

The overall category that seems to be ultimately affected the most is news and we had already seen a deprecation of news over the last year and a half.

And news is not inside of our top 10 AD verticals so for us it's relatively muted.

Okay. Thank you.

Our next question comes from Justin Patterson.

Speaker 9: Great, thank you very much and good afternoon. Perhaps the question's both of you, just in terms of this Yahoo transition, I appreciate that that's headwind right now, but as this kind of transitions through to the new tech stack, should we think about this as potentially being an opportunity within the overall business again? And then just secondarily, we've seen more and more SSPs sign up for Open Path. What's your latest thoughts on coming up with Trade does go around Open Path. Thank you.

Great. Thank you very much and good afternoon.

Perhaps a question for both of you just in terms of the Yahoo transition appreciate that that's headwind right now but.

Is this kind of transition through to the new Tech stack should we think about this as potentially being an opportunity within the overall business again, and then just secondarily.

We've seen more and more SSP is sign up for open path, but what's your latest thoughts on teaming up with trade desk around open path. Thank you.

Speaker 3: Sure, he just and I can start with that. So just on Yahoo, I think it is a growth opportunity going forward, you know, so as Steve commented on their, you know, migrating, if shut down their historical SSP or tech stack.

Sure Hey, Justin I can I can start with that so just on Yahoo.

I think I think it is a growth opportunity going forward. So as Steve commented on their migrating they've shut down their.

Historical SSP your tech stack.

Speaker 3: and then it transitioned to a new third party text act.

And then they transitioned to a new third party tech stack.

Speaker 3: So I do think there's some upside opportunity there. So we're working closely with them. They've been great one-term partner, but I think there's work to do over the next several quarters.

So I do think there's some upside opportunity there.

So we're working closely with them they've been great long term partner.

But I think there's work to do over the next in the next several quarters, Steve anything you want to add to that before we.

Speaker 4: Stephen, any one add to that before we turn over to open fast? Yeah, I concur with your description, Reggie. I think the way we're looking at it is we've been a long-term partner with Yahoo! We are confident that we can continue to be a very positive...

Let me turn it over to open back up.

Concurrent with your description Rajeev I think the way we're looking at it is we've been a long term partner with Yahoo, and we are confident that we can continue to be.

Speaker 4: partner in the future and it's based upon our innovation and our focus. So I fully expect that business to continue to run.

Very positive.

Partner in the future.

Based upon our innovation and our focus so I fully expect that business to continue to ramp.

Speaker 3: Great, and then Justin with respect to OpenPath, so we work quite closely with TradeDesk. They've been terrific long-term partner for us and continue to be so. And we talked about the UID2 example. So I think we're very open to working with TradeDesk in a variety of different ways. And we've got a roadmap in front of us. They've got a roadmap in front of them. I'm sure, and we'll see where we go in the future.

Great and then just one with respect to open past so.

We work I think quite closely with trade desk, they've been a terrific long term partner for us I continue to be so we talked about the UAE.

<unk> two example.

So I think we're very open to working with trade desk in a variety of different ways and.

We've got a roadmap in front of us they've got a roadmap in front of them I'm sure and we'll see.

Well see where we go in the future.

Thank you both.

Thanks, Justin.

Our next question from.

Right.

Just some housekeeping of Oppenheimer. Please go ahead.

Oh.

Speaker 10: Hey guys, thanks. So just can you just clarify on CTV8? So did you see pricing stabilized? I guess as we're like in October or that basically volume is stabilized. Maybe comments be on how the trend you show on CTV impact is a gross margin in the quarter. And then Reggie, just like a longer term question, with the bifurcation of IDs, making it kind of more confusing for advertisers.

Hey, guys. Thanks.

So just just can you just clarify in CTV. So.

Did you see pricing stabilize I guess is where like in October or is it basically volume has stabilized.

Maybe comment Steve on how the trends you saw in CTV impacted the gross margin in the quarter and then Rajiv just like a longer term question with the bifurcation of Ids.

More confusing for advertisers.

Speaker 10: It seems like it makes them more aligned upon their DSPs. Just how does that kind of play into your strategy, thanks.

It seems like it make them more align upon their DSP.

How does that kind of play into your strategy.

Sure.

Speaker 4: Sure, silver's respect to CTV pricing, the same that I made was relative stability to July .

Sure so with respect to CTV pricing.

Those statements that I made was relative stability to July.

Speaker 4: As I called out last words, that overall macro pressure has.

I had called out last earnings.

The overall macro pressure has macro environment has put pressure on CPM. So over about the last year, but the deposit is from our perspective, it's been relatively stable since the end of July and so the benefits that we're seeing is really monetize good question. So more impressions that we're selling across all formats Cte.

Speaker 4: Macro-environment has put pressure on CPMs over about the last year. But the positive is from our perspective, it's been relatively stable since the end of July . And so the benefits that we're seeing is really are monetized in question. So more impressions that we are selling across all formats, CTVB and an important one.

Speaker 4: And we saw a very strong growth in the third quarter. I'm monetizing prices for both video and display as I reference.

Being an important one.

And we saw very strong growth in the third quarter.

Monetize impressions for both video and display as I referenced and we expect for example in the fourth quarter of <unk>.

Speaker 4: And we expect, for example, in the fourth quarter, video to have double digit monetized suppression grow up on your basis. So what you're seeing is the foundation of our business, which is volume, really quite healthy. And we're just navigating through the current environment. Now from a gross margin perspective,

Video to have double digit monetize impression growth on a year over year basis. So what youre seeing is the foundation of our business, which is volume.

Really quite healthy.

And we're just navigating through sort of the current environment now from a gross margin perspective, there are many things that we do to.

Speaker 4: There are many things that we do to grow and support that. Not the least of which of course is the optimization we've done on infrastructure.

Grow and support that not the least of which of course is the optimization we've done on infrastructure on.

Speaker 4: You know, on a year of your basis, we are going to have reduced our capex by 70%. The majority of that goes into the cost of revenue line. So my expectation going into the future is that our gross margin will continue to tick up and then we'll have the incremental benefit as CTV revenues grow and only video revenues grow because the marginal profitability for those formats are quite high.

On a year over year basis.

You are going to be.

We have reduced our capex by 70% the majority of that goes into the cost of revenue line. So my expectation going into the future is that our gross margin will continue to tick up and then we'll have the incremental benefit as CTV revenues grow and only video revenues growth because the marginal profitability for those.

Speaker 4: Overall, we reached 33% of overall revenues coming from video in the third quarter and I anticipate some share gains in the fourth quarter as well.

Formats are quite high overall, we reached 33% of overall revenues coming from video in the third quarter and anticipate some.

Share gains in the fourth quarter as well.

Speaker 3: So just an idea question, you know, I commented on 29 IDs now integrated into our platform. So that I think speaks to the level of complexity, and choice or optionality that buyers have.

So Jason on your question.

I commented on 2009. It is now integrated into our platform. So that I think speaks to the level of complexity.

And choice or Optionality that buyers as the key focus for US is really on interoperability, so making sure that whenever idea of particular buyer chooses they can find the maximum amount of inventory or impressions on our platform.

Speaker 3: key focus for us is really on interoperability. So making sure that whenever ID of particular buyer chooses, they can find the maximum amount of inventory or impressions on our platform relative to those IDs. But I think the broader trend here is,

Relative to those <unk>, but I think the broader trend here is really the increasing relevance for sell side technology in the ecosystem.

Speaker 3: the increasing relevance for cell-side technology in the ecosystem.

Speaker 3: You know, so technology that sits close to the consumer and the publisher, which of course is where we sit, is increasingly important because typically IDs are only one part of an advertiser.

The technology that sits closer to the consumer and the publisher which of course is what we said is.

Is increasingly important because typically ids are only one part of an advertiser's audience targeting strategy post cookie. They are also looking at first party data, they're looking at contextual data, they're looking at maybe models cohorts or segments of users.

Speaker 3: audience targeting strategy, you know, post-cookie, they're also looking at first party data, they're looking at contextual data, they're looking at maybe model cohorts or segments of users.

Speaker 3: And many of those things, all of those things are better.

And many of those things all of those things are better now.

Speaker 3: when they're done on the cell size because that's where the consent is coming from the consumer.

When they're done on the sell side, because that's where the consensus coming from the consumer there is no incremental op. There is more efficiency from a carbon perspective, there's a lot of benefits that come from moving target, but the sell side and that seems to be in line with what privacy regulators are looking for what do they want to see less midstream data flowing across.

Speaker 3: There's no incremental hop. There's more efficiency from a carbon perspective. So there's a lot of benefits that come from, you know, moving targeting at the cell side. And that seems to be in line with what privacy regulators are looking for, where they wanna see less, you know, bit-stream data slowing across the ecosystem.

Speaker 3: And so that's really represented in our connect platform. And as we talked about in the prepared remarks, we're seeing, you know, increasing traction with that as the potential for the, um, uh, the Google Chrome cookie deprecation draws near.

The ecosystem and so that's really represented in our connect platform and as we've talked about in the prepared remarks, we're seeing increasing traction with that as the potential for the the.

The Google Chrome Cookie deprecation draws near.

Thank you.

Our next question comes from James.

Hum.

Speaker 11: Great, thanks for taking the questions. Regime, can you talk about the partnership that you now have with free wheel? Clearly free wheel is one of the most important players in the CTB ad market. So just curious about how that partnership works.

Great. Thanks for taking the question Rajeev can you talk about the partnership that you now have with freewheel clearly freewheel is one of the most important players in the CTV AD market. So just curious about how that partnership works.

Speaker 3: Sure, yeah, thanks James. So yes, we announced an integration, advanced integration with free will, I guess about a month or so back, which really opens up opportunity for customers, our customers that are using activate to be able to access significantly more CTV inventory, inventory that's, you know, sitting on the free will platform. And so for us, you know, as you mentioned,

Yeah. Thanks, James So, yes, we announced an integration advanced integration with Freewheel, I guess about a month or so back.

Which really opens up opportunity for customers.

Our customers that are using activate to be able to access a significantly more CTV inventory inventory that's sitting on the freeware platform.

And so for US as you mentioned James.

Speaker 3: you know, free wheel is a leading ad server for CTV, many traditional broadcasters use free wheel both in the US and within Europe .

Freewheel has a leading AD server for CTV, many traditional broadcasters use freewheel both in the U S and within Europe, We've had a longstanding partnership with freewheel and so this is just really expands our partnership into our latest supply path optimization product offering of activate it should give us significantly more.

Speaker 3: We've had a longstanding partnership with three wheelers, so this just really expands our partnership into our latest supply-vap optimization product offering of activate. It should give us significantly more impression or inventory opportunity, which we think will make activate more attractive to buyers and should lead to higher revenue flowing through activate over time. Great.

Impression or inventory.

<unk> opportunity, which we think will make activate more attractive to buyers and should lead to higher revenue point to activate overtime.

Great and then just a follow up.

Speaker 11: Maybe for a speed, can you explain why CTVU was down 3% year on year in the quarter? You're clearly copying over 150%. But I'm just assuming that's all the small base. So anything about the decline would be helpful.

Maybe for Steve can you explain why CTV was down 3% year on year in the quarter, you're clearly comping over 150%, but I'm just assuming that's off a small base. So anything about the decline would be helpful. Sure.

Speaker 4: Sure, you're right. We grew sequentially from the third quarter, from the second quarter, which is obviously important from the momentum of the business. As I commented on earlier, what you're seeing broadly speaking, but all comments specifically on CTV is, hold it of course, in the last three or four quarters. There has been gradual declines in CPMs for CTV. So when you look at a point in time, the cumulative effect of that is, you know, more significant.

You're right we grew sequentially from the third quarter from the second quarter, which is obviously important.

From the momentum of the business as.

As I commented on earlier than what you are seeing broadly speaking Budd.

Specifically on CTV is over the course of the last three or four quarters. There has been gradual declines in CPM spirit CTV. So when you're looking at a point in time the cumulative effect of that is more significant so the positive news is that we've been growing our monetize impressions.

Speaker 4: So the positive news is that we've been growing our monetizing pressures significantly double digits, and we anticipate that to continue on inch of the fourth quarter. So overall, we feel that the business has been quite healthy shape.

Significantly double digits, and we anticipate that to continue into the fourth.

Fourth quarter. So overall, we feel that the business has been quite healthy shape.

Speaker 4: And for the various points we raised regarding, you know, our initiatives are on SPO, the progress that we commented on in our, of the paracomics regarding the private marketplace and the proclamatic heritage, all support the long-term vitality of our CTV business.

And for the various <unk>.

We raised regarding.

Our initiatives are on spo lots of progress that we commented on in our prepared comments regarding private marketplace and Medicare all support the long term vitality of our CTV business.

Great. Thank you.

And our next question comes from Morgan Stanley.

Right.

Uh huh.

Speaker 12: Thank you. Regif and Steve, you previously talked about areas of investment that should position the company to capitalize on opportunities coming out of the dump.

Thank you.

Rajiv I'm, Steve you previously talked about areas of investment that you.

Positioning the company to capitalize on opportunities coming out of the downturn.

Speaker 12: You have obviously unveiled and made significant traction with the activate and convert. How should we think about the investment cadence going into 2024? And then maybe as a follow-up, can you please talk about the pace and traction on some of these ongoing initiatives, particularly as they relate to CTV and how to deliver position you for 2024. Thank you.

You have obviously unveiled and made significant traction with the activate and convert.

Do we think about the investment cadence.

Going into 2024.

Then maybe as a follow up can you. Please talk about the peso functional.

These ongoing initiatives, particularly as they relate to CTV and how could they position you for 2024. Thank you.

Speaker 4: So I'll take the investment nice to connect with you. So from our perspective, something that we've learned over many years is that we have taken the opportunity and challenging macro environments to get more traction, gain market share. And we've been able to do that through investment innovation, people, infrastructure.

So I'll take the investment nice to connect with you.

So from our perspective, something that we've learned over many years is that.

We have taken the opportunity in challenging macro environments to.

Get more traction gained market share and we've been able to do that through investment and innovation people infrastructure and so the last year and a half it's been exactly that environment and we continue to invest.

Speaker 4: And so the last year and a half have been exactly that environment and we've continued to invest. We've had some of the most rapid development cycles that we've had in the history of our company. And the reason we can do that is because we have such a strong financial base. We have a terrific business in terms of the core fundamentals.

We've had some of the most.

<unk>.

The development cycles that we've had in the history of our company and the reason we can do that is because we have such a strong financial base, we have a terrific business in terms of the core fundamentals.

Speaker 4: You know, we have strong margins. We generate significant free cash flow. And we know that when we've invested in the business, we're able to generate significant upside. So we're not going to change that. And so the only decision that we need to work through, which is what we're doing right now, is the rate of investment looking ahead is a huge.

We have strong margins, we generate significant free cash flow and we know that when we've invested in the business, we're able to generate significant upside. So we're not going to change that and so the only decision that we need to work through which is what we're doing right now is the rate of investment look.

Speaker 4: And so we fully anticipate to keep our foot on the accelerator because of the significant opportunity out there for us. You know, the received call-up important so the sales platform that's just getting more important. We're going to be a significant beneficiary, yes, consolidation continues. And so we're going to reinvest some amount of our incremental profitability back into the business and we're fully expected to grow the top line and our market share over time.

Get ahead into the future and so we fully anticipate to keep our foot on the accelerator because of the significant opportunity out there for us.

He called out the importance of the sell side platform. That's just getting more important we're going to be a significant beneficiary as consolidation continues.

So we're going to reinvest some amount of our incremental profitability back into the business and we are fully expect to continue to grow the top line and our market share over time.

Speaker 3: And Marito, on the second part of your question, you know, when we think about what are the most exciting growth opportunities in the industry, it's really around supply path optimization, so getting closer to buyers and capturing greater share of their ad budgets and return for a greater efficiency and greater control in their part. Harmony channel videos, so both connected TV as well as online video, you know, just as a reminder, online video is still multiples of the size of connected TV in terms of tam or opportunity, commerce media, and then addressability.

And Marissa on the second part of your question. When we think about what are the most exciting growth opportunities in the industry.

It's really around supply path optimization, so getting closer to buyers and capturing greater share of their AD budgets and return for a greater efficiency and greater control on their part Omnichannel video. So both connected TV as well as online video just as a reminder, all my video still multiples of the size of the of connected TV in terms of the Tam or opportunity commerce.

Speaker 3: And so these are squarely aligned with where our investment portfolio sits over the last 18 months. And that, of course, is not by accident, as Steve described, when we get into a downturn.

Media and then address ability.

And so these are squarely aligned with where our investment portfolio sits you know over the last 18 months and that of course is not not by accident as Steve described and when we get into a downturn.

Speaker 3: or a soft patch in terms of the macro environment, we really think about, you know, where is the industry headed when the inevitable upterm comes and then we align our innovation or investment portfolio according.

A soft patch in terms of the macro environment, we really think about where is the industry headed.

When the inevitable upturn comes and then we align our innovation innovation our investment portfolio Accordingly, so.

Speaker 3: So our intent is to be really well positioned with the fastest growing segments. When we come out of this downturn, right, which hopefully we'll start to see in the next couple of quarters, although nobody knows for certain. And hopefully we'll also see a firming up of the display market, which is still about the two thirds of our business, and all of that combined, you know, should push us to market share gains as we...

Our intent is to be really well positioned with the fastest growing segments.

When we come out of this downturn brag, which hopefully will start to see in the next couple of quarters, although nobody knows for certain and hopefully we'll also see a firming up of the display market, which is still about two thirds of our business and all of that combined should push us to market share gains as Steve mentioned.

Okay.

Next question comes from Dan Binder.

For Hawthorne.

Speaker 13: Hey, can you hear me? We can't hear you, Dan. How you doing? Okay, great. Yeah. So Steve, I think we talked a few months ago on active age, just however, tisers are likely to take sort of a crawl walk run approach with something like it.

Hey can you hear me all right.

Dan how are you doing okay, great. Yes, so Steve I think we talked a few months ago on activate just how advertisers are likely to take sort of a crawl walk run approach or something like it.

Speaker 13: You know, starting with really small test budgets, getting comfortable with it, ramping over time, with more significant budgets. So maybe if you can just talk about where you are right now, are we still in the test phase with really all of them and any advertisers starting to move past that, it could be a more significant growth driver, maybe in the first half of next year.

Starting with really small test budgets getting comfortable with it ramping over time with with more significant budget. So maybe if you can just talk about where you are right now or are we still in the test phase with really all of them in any advertiser starting to move past that.

It could be a more significant growth driver.

Maybe in the first half of next year.

Speaker 4: Sure, nice to speak with you again. So as we call out when we launch the product and come down progress over time, this is really a product that's a great product market fit.

Sure.

Nice to speak with you again so.

As we've called out when we launched the product.

Comdata progress over time this is.

Really a product thats.

Great product market fit for us.

Speaker 4: It leverages our platform, it leverages our public relationships, our buyer relationships, and so we are seeing a very robust pipeline in our compared comments. We mentioned that, you know, 50 opportunities that were going after across the globe. We recently launched an APAC.

It Leverages, our platform and Leverages, our publisher relationships, our buyer relationships and so we are.

<unk> seen a very robust pipeline.

In our prepared comments, we mentioned that 50 opportunities that we're going after across the globe. We recently launched in APAC and we are in the ramp up phase.

Speaker 4: And we are in the ramp up phase. You know, of course, it depends on the cycles of for an agency or an advertiser. We share the specifics, the excitement from a global advertiser like Mars in terms of what they see in the product and their plans for the future. So our goal is to make sure we continue to lay the foundation, establish these relationships, get into the investment cycles on the agencies and the advertisers.

Of course, it depends on the cycles, where an agency or an advertiser.

We shared the specifics the excitement from a global arbitrage like Mars in terms of what they are.

And the <unk>.

<unk> and their plans for the future.

Our goal is to make sure. We continue to lay the foundation established these relationships get into the investment cycles of the agencies and the advertisers and often contact does go through a testing process and then expansion of the budgets I don't anticipate material.

Speaker 4: And oftentimes that does go through a testing process and then you know expansion of the budgets. I don't anticipate you know material benefits to the top line until the second half of 24 as we get more, you know into the ramp up and the investment cycle of these partners.

The benefits to the top line until the second half of 'twenty four as we get more.

It could be.

Ramp up in the investment cycle of these partners.

Speaker 4: But the way to think about it from an investor's perspective is

But the way to think about it from an investor's perspective is this is a multiyear runway. So we are taking the time to make sure that we develop the product in ways that ultimately match the opportunity and we're very positive about the progress we've made.

Speaker 4: This is a multi-year runway. So we are taking the time to make sure that we develop the product in ways that ultimately match the opportunity and we're very positive about the progress we make.

Speaker 13: Thanks, and if I could just follow up with one on Convert, the other product you're looking to scale here. Just have our conversations with retailers and the other commerce partners going so far. There's a couple of kind of more established specialized retail media, ad tech vendors out there targeting that at mid to long tail. So just...

Thanks, everybody just follow up with one on convert either product Youre looking to scale here, just how recovered stations with retailers and the other commerce partners going so far.

There's a couple of kind of more established specialized retail media AD tech vendors out there targeting that at mid to long tail. So just talk us talk us through how you cut through that and differentiate.

Speaker 13: Talk us through how you cut through that and differentiate the easy answer that there's room for multiple solutions. They're not choosing one or the other. It was retail media a little different. And they might not want to work with 10 plus SSPs like they do in the open web.

The easy answer is that there's room for multiple solutions they.

They don't they're not choosing one over the other or is retail media a little different.

And they might not want to work with 10, plus ssp's like they do in the open web.

Speaker 3: Sure, yeah, hey Dan, I can take that one. So, you know, I think there is a chase of truth to what you're saying certainly, which is that the industry is still quite early in the commerce media evolution and opportunity. So yes, there are obviously some folks that are already playing in this space, but we see the vast majority of the opportunity really as being white space.

Yeah, Hey, Dan I can I can take that one so.

There is change the truth to what you're saying certainly which is that the industry is still quite early in the commerce media evolution and opportunity.

So yes, there are obviously some some folks that are already playing in this space.

But we see the vast majority of the opportunity really is being white space.

Speaker 3: And so we are going after opportunities where we can bring together a suite of offerings with onsite monetization, sponsor listings, as well as display and video, along with offsite monetization. So that's inventory or audience extension and use of first party data to be able to scale Advertisers retailers budget.

And so we are going after opportunities, where we can bring together a suite of offerings with onsite monetization sponsored listings as well as display and video along with off site monetization. So that's inventory your audience extension.

And you know use of first party data to be able to scale, Alberta retailers our budgets.

Speaker 3: So with the launch of pinbird, now we have a unified platform.

With the launch of <unk> now we have a unified platform.

Speaker 14: that can bring all of these use cases together and deliver that to Commerce Media participants. And we're seeing that has Commerce Media participants looked to scale their business from maybe an initial set of dollars to a bigger portion of their ad business than having a comprehensive platform can be quite useful. So that's really where we're focused in terms of the opportunity set. Okay.

They can bring all of these use cases together.

And deliver that to commerce media participants and we're seeing that has commerce media participants look to scale.

Their business from maybe an initial set of dollars to have a bigger portion of their of their AD business than having a comprehensive platform can be quite useful. So that's really where we're focused in terms of the opportunity set.

Okay. Thanks, guys appreciate the time thank.

Dan.

And our next question comes from.

Hey, Rob.

Uh huh.

Let's see.

Speaker 14: Hey guys, can you hear me? Just one for me. I was wondering, just want to tie back to comfort. Just want to know if it's kind of in line with initial expectations you had. I noticed the first quarter that you've launched the product.

Hey, guys can you hear me I'm just one for me I was wondering just wanted to tie back to comfort.

No if it's kind of in line with initial expectations you had in the first quarter that you launch the product.

Speaker 3: Yeah, I would say so far it is in line with our initial expectations. As you said, it's still very early. The fill cycles here are not short, right? This is an enterprise software sales cycle. So I think, you know, we're looking at several quarters for a sales cycle. But we've seen, I think a lot of enthusiastic reaction. Let's do we had a number of great launch partners when we did launch.

Yeah, I would say so far is in line with our initial expectations as you said, it's still very early.

The sales cycles here are not short right. This is a pan enterprise software sales cycle.

I think we're looking at several quarters for our sales cycle, but we've seen I think a lot of enthusiastic reaction. Obviously, we had a number of great launch partners when we did launch it.

Speaker 3: and our pipeline is looking pretty healthy here. So I would say in line with expectations, although certainly still very early going.

Our pipeline is looking pretty healthy here, so I would say in line with with expectations, Although certainly still very early going.

Alright, thanks, guys.

We have time for one more question.

Uh huh.

Speaker 15: Hey guys, thanks for taking my question. Just one from me, maybe just with Google's privacy sandbox API, moving betting from the exchange into the browser. Can you just talk about how that changes the offering for us as P's and maybe just the competitive dynamic there? Thank you.

Hey, guys. Thanks for taking my question.

Just one from me, maybe just with Google's privacy sandbox API moving bidding from the exchange into the browser can you just talk about how that changes the offering process piece and maybe just the competitive dynamic there. Thank you.

Speaker 3: Sure, yeah. So keep part of privacy sandbox from Google is shifting, you know, the auction environment and the data use in that auction environment into the browser right to make that privacy safe.

Sure, Yes, so a key part of our privacy sandbox from Google.

Is shifting.

Shifting the auction environment.

And the data using that auction environment into the browser right to make that privacy safe.

Speaker 3: So that is a pretty, I think, significant shift in terms of the infrastructure required to monetize an ad impression. And so we've got a team of engineers that are working on this. As I mentioned, we're working with Google and testing those APIs. I think it's still quite early going. I think there's still a number of unknowns as we are in conversation with the Google team about how things will work and then how they'll scale.

So that is a pretty I think significant shift in terms of the infrastructure required to monetize an AD impression until we've got a team of engineers that are working on this as I mentioned, we're working with Google and testing. Those API is I think it's still quite early going I think there's still a number of unknowns as we are.

We're in conversation with the Google team about how things will work and how they will scale.

Speaker 3: So I would say it's still pretty early going in terms of validating duty-to-date- APIs work and how transactions will be processed and will be scaled up.

So I would say, it's still pretty early going in terms of <unk>.

Validating do these API is working and how transactions will be processing will be scaled up.

Speaker 3: But to your question, it is I think a pretty meaningful shift in terms of infrastructure. And I think given that we own and operate our own infrastructure and have a great degree of control and flexibility, we feel like we should be in a good position to be able to build in the way that we want to build.

But to your question. It is I think a pretty meaningful shift in terms of infrastructure and I think given that we own and operate our own infrastructure and have a great degree of control and flexibility we feel like we should be in a good position to be able to build a hidden in the way that we want to build it.

Great. Thank you.

At this time there are no additional questions I'll turn the call back sounds like a machine.

Speaker 3: Thank you, Stacey. I want to thank everyone for joining us today. This quarter we delivered strong execution and marked its inflection point for revenue growth in Q4. I couldn't be more excited by the momentum we're seeing across our business and investments we've made that are accelerating our business.

Thank you Stacey I want to thank everyone for joining us today. This quarter, we delivered strong execution in market inflection point for revenue growth in Q4, I couldn't be more excited by the momentum we're seeing across our business and investments. We've made that are accelerating our business sell side technology is increasingly relevant to digital advertising publishers and buyers and we are at.

Speaker 3: Cell site technology is increasingly relevant to digital advertising publishers and buyers, and we are at the forefront of that opportunity. And of course, underpinning our successes, our durable model, including healthy cash flow and a strong balance.

The forefront of that opportunity and of course underpinning our success is our durable model, including healthy cash flow and a strong balance sheet.

Speaker 3: We look forward to seeing many of you over the next couple of months. Have a great afternoon everyone.

We look forward to seeing many of you over the next couple of months have a great afternoon, everyone.