Q4 2023 Perion Network Ltd Earnings Call
Kevin first of all last name.
Okay.
Hello.
Yes.
And a non-GAAP basis.
While mentioning EBITDA will be referring to adjusted EBITDA.
We have provided a detailed reconciliation of non-GAAP measures to their comparable GAAP measures in our earnings release, which is available on our website and has also been filed on form 6K.
On the call today are Tal Jacobson Purion <unk>, Chief Executive Officer Amin also grown <unk> Chief Financial Officer, I will now turn the call over to Tal Jacobson. Please go ahead.
Welcome to <unk> Q4, and full year 2023 earnings.
I'm excited to unveil our performance for the quarter.
<unk> on a year of substantial achievements and provide a glimpse into the future.
Before we look at the numbers, let's take a minute to align on our mission.
Early on unlocks advertising possibilities across all screens platforms and locations.
We are powering our magic by advanced technology.
Barry on is an ever growing ecosystem cross.
Cross channel AI, driven locally optimized and most importantly, we exist naturally along the consumer's journey.
Today's consumers lead at a NAMIC and diverse lifestyle halved.
Having multiple interactions with the technologies around them.
East journey is different constructed by a more diverse of multiple touch points.
We make sure our clients have the solutions for.
For each of those touch points.
We enable advertisers to interact with their consumers naturally rigs.
Regardless of the platform they use.
To achieve maximum impact.
Maryann technologies and solutions leave naturally across the consumer's journey.
Picture this a typical day in Daniel's life.
The day begins when she sips are coffey was crawling, who our favorite social app.
Are they NAMIC video AD appears feeding naturally into our experience.
A subtle yet effective touch points.
As she commutes to work.
Our AI driven digital audio ads wave.
<unk> messages to.
Through her preferences. This makes her interaction unique and personal.
As she looks at the road she sees our extra large video ad or the side of the road.
Those moments are not coincidences.
They are carefully crafted touch points in our journey with a consumer.
As the day goes by Daniel remembers the messaging, we presented to her across the channels.
She decides to look for that product or their search engine.
This is where our search technology and the partnership with Microsoft comes into play.
When Daniel decides to take a coffee break and read some news online. She sees our will optimize dynamic video display in high impact ads on their favorite web sites.
Of course, we will meet Daniel again on her way to her favorite store through our digital out of home ads.
And continue to interact with or even within the store.
Is that they wind down our technology doesn't our CTV dynamic AD solutions continue to present personalized content.
Our technology is an immersive cross channel ecosystem that.
That accompanies consumers throughout their daily journey.
I am pleased to report continued profitability for Q4.
Once again diversification proved to be the right strategy.
In the fourth quarter.
We see a notable growth in search CTV and retail media.
Additionally, our strategic acquisition of highest stack in December XP.
Expanded our geographical and channel reach.
Looking ahead at 2024, a key aspect of our strategy is to enhance our touch points across the consumer journey using cutting edge technology.
And we're increasing our investments in technology.
Through our in house R&D teams, including the newly joined Hi Tech team.
We're also actively seeking inorganic opportunities that align with our vision.
With a strong cash flow from operation of over $150 million a year.
And a total cash of over $470 million.
Varian is well positioned to execute additional acquisitions.
In Q4, 'twenty to 'twenty, three we achieved a robust top and bottom line growth our revenue and adjusted EBITDA reflect on our financial strength.
And our operational efficiency and market competitiveness, turning to our full year performance. The same key indicators underpin our excellence.
We've maintained constant focus on revenue growth profitability and operational optimization yeah.
Yielding outstanding results throughout 2023.
Central to our success is our cutting edge technology that enables agility throughout the consumer journey.
Now, let's see where some of our technologies meth consumers in Q4.
The Purion CTV solution are gaining momentum with advertisers occur.
According to E marketer.
CTV AD spending is on the rise in.
Impressively failures.
Yeah. He owns resorts stand way above their growth projections demonstrating.
Demonstrating our ability to execute and conquer any channel and vertical we aim for.
One of our innovations in the CTV space is pause ads in.
In partnership with Directv, we've created yet another opportunity for our branded moment.
On television.
He is also one of the few ways to guarantee that commercial message is notice in both linear and CTV when viewers pause content the CTV ads come into play.
Offering segmented audience targeting and increasing consumer engagement.
Those ads are both noticeable and actionable.
This AD buy ships is a great example.
We build those ads in short repeating loops.
So that viewers are virtually guarantee to see them.
Our pause ads run across nearly every television network on Directv inventory.
Both linear and streaming.
This includes television networks without any ads in linear.
Such as HBO and sports networks like ESPN.
Brands that already use our pod television ads include Pago Mbabane Con Edison shipped while ever source AAA anymore.
The Purion retail media solution continues to grow and outpace both our internal expectation.
And industry benchmark.
This is a testament to our effective strategy and execution.
In this rapidly growing space.
As part of our retail media solutions last quarter, we launched our generative AI audio advertising technology wave.
As a campaign with Albertsons was the first one we revealed now I'm happy to share that wave is adopted by additional leading brands.
Running on leading platforms such as Spotify.
My Heart media audio boom and many more.
This time, we're sharing the Pep boys campaign.
Two our non U S audience Pep boys is a leading U S automotive service provider operating in more than 900 locations across the U S.
Let's listen to this generative AI ads when the seasons change soda your tires, but your local Pep boys has you covered by three select tires and get the fourth one free incidentally, we offer expert auto service that makes karkare simple and convenient with smart services like online booking text alerts to fracture surface and mobile payments to pay off.
The go make an appointment of half point dot com and don't Miss out on these incredible deals tire offer download through October 31st requires installation package additional fees and restrictions may apply sheets or for details of our visit halfway dot com to learn more.
This generative AI audio ads creates communication between the brands and potential consumers.
<unk> relevant solutions in a tone that sounds natural and appealing.
This approach is a prime example of how we leverage AI to revolutionize consumers' interactions.
Making every message both herd and acted upon.
We are very proud of the partnership with Amazon that we've announced this quarter.
In which we integrated Amazon publisher services into our video platform.
With this integration publishers now have access to a wider range of AD demand for more precise targeting and enhanced campaign performance.
Some of the notable publishers that are already working with us using the Amazon publisher services include Imdb.
Our net worth Panda and publishers collective.
Following our strategic acquisition of Hi, Tec, we shared our plans to expand into new markets.
I am proud to announce we are delivering on that commitment with a major partnership in Brazil.
We've joined forces with led to a media one of the largest media owners in Brazil's vibrant media landscape.
While this partnership is not just about the numbers.
The addition of over 46000 digital screens is certainly impressive.
It also presents exciting opportunities for our high impact display and creative solutions.
The Brazilian market offers a dynamic and rapidly growing advertising landscape.
With a lateral media, we're positioned to make a significant impact.
One of our recent successes in our digital out of home technology for retailers in CPG companies.
Is this campaign for a learner rubenstein in Hong Kong promoting their new power cell product.
The campaign's core strategy involved advance proximity.
Rail fencing to plan and activate campaigns.
Targeting specific physical locations in the proximity of Atlanta Women's 10 store in Hong Kong.
Let's take a look.
In Hong Kong, marketers seems challenging and planning executing and evaluating online to offline campaigns that are consistent and measurable feeling the need to bridge. This gap Helena Rubinstein strategically leverage how romantic digital out of home as a solution for its omnichannel power.
Youth reinforcing serum campaigns.
The programmatic digital out of home.
Seamlessly integrated with Helena Rubinstein, Omnichannel campaign created a cohesive and impactful brand narrative that achieved client objectives, and driving online product searches and offline in store so far.
Developed by Omnicom Media group and leveraging the hot stack demand side platform. The programmatic digital out of home campaign use proximity.
To add to these campaigns at the right time specific digital out of home screen close to the Helena Rubinstein storage in Hong Kong and custom audience targeting to deliver contextually relevant ads.
The cleanest skincare Shocker.
Football lift study was conducted to measure the entire campaign's effectiveness delivering an impressive 312% increase in fundamental traffic declines and destroy a 382% increase in Helena Rubinstein brand and product searches online and an increase of 200 and <unk>.
31% in new and unique customers in the Omnichannel targeting and re targeting accounts showcasing the true beauty of programmatic digital out of home has never been easier.
Our digital out of home platforms advance jail fencing feature along with audience targeting increase product awareness and store visits significantly.
The success of this campaign is another example of how immersive the consumer journey becomes with the use of advanced technologies.
To conclude our focus on diversified technologies that powers, the consumer's journey and strategic acquisitions continues to drive impressive growth and success and now my OS Our CFO will provide a more detailed financial analysis.
Thank you Doug good afternoon, and good morning to those of you joining us from the U S.
20th winning three proved to be a meaningful year, demonstrating the agility and resilience of our business model of Purion.
Strict execution of our diversification strategy and cost control measures.
We are a key to our success in delivering healthy profitable revenue growth and margin expansion.
Julien is among the most diverse companies in the attic space. Therefore, we were able to quickly respond and capitalize on our customer spending allocations by delivering the right product mix.
We successfully honest efficiency and innovation to exceed internal expectations for both profitability and margin goals.
<unk> achieved year over year revenue growth of 16% to $743 million and 28% growth in adjusted EBITDA.
Reaching 169 million, which it's been in 3% margin and an impressive 55% ex Tac margin.
<unk> strong and consistent cash flow from operations and our significant net cash position generated over 20 million in financial income in 'twenty, it's been Italy.
That along with our cost efficiency and tax optimization resulted in a year over year golf and GAAP net income of 18% to over $117 million and 40% year over year increase in non-GAAP net income to over 167 million.
For the year cash flow from operations increased by 27% year over year to $155 5 million.
Although the diversified business model and product mix allows us to quickly respond to shifts in the market in essence, following the money with the right solution.
Among the top growth drivers in 'twenty, one and three retail media stood out far exceeding our internal expectations.
With a year over year revenue increase of 114% to nearly $50 million.
CTV revenue also experienced strong growth of 56% year over year as more and more customers adopted our in park city. This solution.
Sales grew by 23% year over year.
Adjusted by Advertiser budget shift to I intend to advertising.
Key to our success is our ability to develop new innovations that address the needs of our customers.
In parallel we consistently find new ways to improve the efficiency of our operations.
In the fourth quarter, we completed the acquisition of five stick a global innovative programmatic digital out of home solution also known as D. O. H. This transaction is expected to significantly contribute to appearing diversification strategy. It will allow us to establish a considerable effort.
Sprint in the fast growing digital order from China.
Wanted to pick your media. It is expected to show a three year CAGR of 15% for 'twenty 'twenty four 'twenty 'twenty six.
Our plan is to leverage the synergies between our retail media solutions and ice takes digital out of home capabilities and also complete compelling solutions to our customer base.
While purion is strong in the U S. I stick is strong internationally together, we can open new markets. We expect this transaction to result in significant cost saves opportunities and geographic expansion to fast growing markets.
I would like to stress that the ongoing conflict in Israel has not materially impacted our operations and business results nearly 100% of variance revenue is generated outside of Israel, and only 45% of our cash and cash equivalents are held in insulin.
Our employees oil drafted to military service.
The back to work and business continues uninterrupted.
Now, let's review the financial highlights for the fourth quarter.
Revenue increased by 12% year over year to $234 2 million contribution ex Tac was 19.6 million increased by 3% year over year, delivering a 13, 9% margin.
Adjusted EBITDA was $53 9 million increased by 12% year over year, delivering 23% margin in the 15, 9% ex Tac margin.
non-GAAP net income increased by 19% year over year to $52 9 million.
non-GAAP diluted earnings per share increased by 16% year over year to 1.04 cents.
Our diversification strategy created opportunities that resulted in continued impressive growth on a yearly basis. The revenue was $743 2 million, an increase of 16% year over year.
Our two years Giga was 25% demonstrating the strength of our product mix.
On a quarterly basis the revenue for the fourth quarter was $234 2 million, an increase of 12% year over year and our two year revenue CAGR was 22% turning now to the display advertising.
For the fourth quarter display advertising revenue decreased by 3% year over year to $119 8 million accounting for 51% of total revenue.
The quarterly decrease in display advertising revenue was primarily due to a 33% year over year decline in video revenue.
This is due to shifting of inventory from video to display to gain IOP.
Our retail media results continued to exceed our internal expectations with quarterly revenue of $20 2 million, an increase of 196% year over year.
This is accounts for 17% of this letter doesn't revenue.
Compared with 6% in the fourth quarter of 2022.
Our quarterly CATV business continued to expand growing by 69% year over year, representing 12% of display advertising revenue compared with 7% last year.
Turning now to our sales business the quarterly sales revenue significantly increased by 33% year over year to $114 4 million, representing an impressive 41% two year CAGR during the quarter average daily searches increased by 37%.
Over the same period last year and the number of publishers grew by 4% year over year.
During the last two years, we have seen budget shifts to there at this point. This is a result of <unk> unique position in search and we have been able to capitalize on that.
For 2023 or a media margin was 42%, which was on par with one into 'twenty, two and consistent with our expectations.
We were able to maintain this long margin due to our product mix and the media buying optimization of our supply and demand assets.
For the fourth quarter of 'twenty to 'twenty three the media margin was 13, 9% down from 42% in the same period last year due to product mix change and our efforts to gain market share in a competitive environment.
We are very proud of <unk> ability to direct resources to high growth and I margin areas in 2023. In addition.
Unrelenting emphasis on operational efficiency and profitability allowed us to achieve strong margin growth for both the full year and the fourth quarter.
Adjusted EBITDA for the year was $169 1 million increased by 28% year over year with 23% margin compared with 21% in 2022, and 50% in 2020 one.
Adjusted EBITDA two contribution ex Tac margin was 55% up from 49% in 2022 and 37% in 2021.
Adjusted EBITDA for the quarter increased by 12% year over year to $53 9 million, reflecting a 23% margin.
Adjusted EBITDA two contribution ex Tac margin was 15, 9% up from 55% in the fourth quarter of 2022 and 45% in 2021.
This is among the highest in the ethic industry.
On a GAAP basis fourth quarter net income increased by 2% to $39 4 million or 78 cents per diluted share.
This is in comparison with $38 7 million or 17 nine cents per diluted share in the fourth quarter of 'twenty. It went into the increase in net income is mainly due to acquisition expenses retention and change in fair value of contingent consideration.
On a non-GAAP basis fourth quarter net income increased by 19% to $52 9 million or 1.04 cents per diluted share.
This is compared with $44 7 million or 19 cents per diluted share during the fourth quarter of 2022.
On a GAAP basis full year 2023, net income increased by 18% to $117 4 million or two point 34 cents per diluted share. This is compared with $99 2 million or 2.06 cents per diluted share in 2022 on a non-GAAP basis net income.
Increased by 40% to $167 4 million or $3.33 per diluted share for 2023. This is an compared with 119.8 million or $2.46 per diluted share in 2022.
Over the past years.
John has consistently improved its profitability. This is mainly thanks to our adoption of operational excellence and strict cost control measures throughout the organization that increased efficiency and productivity.
For the fourth quarter non-GAAP operating expenses and cost of revenue were 60% of revenue compared with 19% in the fourth quarter of 2022 and 23% in the fourth quarter of 2021.
On an annual basis, we can see the same down would trend as non-GAAP operating expenses and cost of revenue were 19% of revenue compared with 21% in 2020, two and 25% in 2021.
This continuous improvement was mainly driven by cost company implementation of office automation, the depreciation of the Israeli shekel versus the U S dollar and the offshoring of some of our operations.
Moving to the balance sheet and coastal iron rights for the year operating cash flow was $155 5 million compared with $122 1 million in 2022 increased by 27% year over year operating cash flow for the fourth quarter was $50 2 million compared with 38.
Point 2 million in the same period last year.
And an increase of 32%.
As of December 31st when it when its way our net cash was $473 million inclusive of the cash paid in the recent Istick acquisition.
Finally, moving to our 2024 outlook the.
The guidance reflects our plans to significantly invest in technology to enhance our multichannel solutions and to capitalize on iron sticks ability to expand our reach into additional geographics.
So long execution of this initiative is expected to result in strong double digit revenue and adjusted EBITDA growth in the coming years.
This concludes my financial overview.
And now we can open the line for questions.
Thank you, we'll now be conducting a question and answer session. He put out over the phone. Please press star one on your telephone keypad.
Over the webcast. Please use you raise your hand function.
Our first question is coming from Jason helps came from Oppenheimer. Your line is now live.
Thank you good morning, everybody two questions first talk about how you think about purion benefiting from chrome Cookie deprecation.
In the past you talked about how youre not reliant on cookies, but how do you actually could benefit when that happens in the industry and then my second question I.
I think dialing just slightly weaker than we expected on an organic basis by 200 basis points or so.
Not huge but maybe talk about what headwinds you are seeing right now for 24 that would keep you from growing stronger than 10% on an organic basis. Thank you.
Great. Okay. Thank you Jason.
So on first of all let's talk about cookies.
So as you know we have source and we are now working on sort to Plano, which we're going to launch.
During the year.
And we are we.
We are prepared to all those who are less.
Implementations.
But we I think we're going to gain from that the fact that a lot of other companies are not going to be prepared for that.
And hopefully we're going to get more budgets just by the fact that we are ready for that so that's in the cookie parked.
Oh, what's the other one.
The guidance.
So thank you thank you Jason.
As you notice the guidance, let's take the 10% growth on the EBITDA and revenue on a pro forma basis.
And this is why there is a bit.
Change in the product mix, mainly due to video.
Ill take the numbers too.
New level as we said in the last quarter and also during the last.
Yeah.
During this quarter.
Yeah.
<unk> of margin is the most important element in our business and we are actually doing this more long video display when we can get higher margin and this is the main reason for the revenue decrease in our video during the fourth quarter and this is also implemented an hour more than Paul and next.
You often by the golf driver as we also mentioned in the retail business. The CTV and also now that we have the digital out of home. This is another growth driver for 'twenty 'twenty four.
All in all the 10% I think this deck.
And the model that we are now.
Using and very much.
All the changes there.
That we have discussed before.
Fourth quarter.
Thank you. Our next question is coming from Laura Martin from Needham. Your line is now live.
Good morning, guys talk about Jedi Asbury so in your guidance.
In your guidance, you said that youre going to have an investment year in it.
Feels like with just let me feel like Big Tech, that's going be a lot of investment in infrastructure forget AI.
We have two question one is them is a lot of your investment coming.
The Jedi I upgrade a second what are your get out when you think about the product roadmap.
Roadmap, how are you thinking about incorporating jet AI into product.
That's a great question. Thank you Laura.
So our investment comes from a few points one absolutely Jenny I.
Presented the Ginnie I wave product that we launched last quarter and the progress we've made with it so we're generating and created.
100% Jenny I we.
We are implementing J I across all of our infrastructure and we are also now we've bought high stack, which is a pure technology play and we're integrating that into everything purion. So we're investing in.
Ah unify.
Infrastructure, and obviously <unk> is a very big part of that we're seeing that all are.
All of the technology companies Big investment in AI, we want to be when it continue to be very advanced so we're going to continue to you.
To invest in Gen AI technologies, and that's a that's a very big part of 'twenty 'twenty four.
And then I guess.
I guess my other one just building on the guidance issue is.
Are you guys.
It sounds like you're saying, there's going to be a revenue mix shift in 'twenty 'twenty four.
Lower margin, that's sort of how I heard you answer. The question is is that permanent or is that am I would've guessed your growth in CTV, which is really about that's what it really helps your margins, but can you talk sort of about the margins and why we're getting a margin downdraft from the mix shift please.
Thank you Laura So there was no dramatic change with the media margin, we're talking about again, if I need to let's now talk about 'twenty 'twenty four module, we talking about.
41% margin moment. This is our estimate at an estimation.
Which is not far from the 42% we have that's what we need when you for soy Ford management suite and again in order to gain market and in order to be able to convert.
Effective.
Yeah competition. This is the number that we believe can help us to keep them.
It would take to under 25 and 26.
And this is in line with our model, yes, there is a shift.
And of the product mix does change a bit the margin I stick is the knee is new the fact that they have now less video is another is another piece. So the mix is different but the total picture is no different we are above 40%. This is a mango and the 41% now at the beginning of the year reflect very much.
My thinking about is when he's been at full margin.
Thank you very much thanks Scott.
Okay.
Thank you. Our next question today is coming from Mark Kelley from Stifel. Your line is now live.
Great. Thank you very much appreciate you taking the question.
Two quick ones and then apologies if you addressed some of this from the prepared remarks, some kind of bouncing between calls but.
This next version of sort I know, it's not out yet I know it's early.
But any data points you can provide in terms of.
Yeah, no effectiveness versus the.
The original version of sorts that's in the market today.
And I guess.
What what's informing your changes that you're making on the backend for sort that's the first one.
And then the second one the shift between display and video.
I guess, how do those conversations work with your clients when you're changing where their budgets are allocated.
Is it something that you know.
Your clients are just comfortable you're shifting budgets wherever they're going to get a better Roe as or I guess, what goes into that whole process in terms of where your steering.
And allocating budgets. Thank you.
Okay absolutely.
So too.
Sort to Plano.
As you know when you know with technology, we constantly need to make advanced.
Improvements right. So what was okay for sort of two years ago, when we build it.
Now needs to get a robust uplifts.
<unk> AI, including journey II.
Infrastructure through the data and a lot of updates as you probably know.
Google released there a sandbox, where the cookie less error, which again anything is getting implemented.
So we're constantly adding more and more feature into source, but this specific one is going to be a huge leap into something even bigger. So we're constantly adding more features source to point, how are we going to be a lot more advanced.
Video versus display so the way. It works is we'll stay with our code on websites.
And every time you go into website. It says request to all of them in partners and then based on what we got we know if you want to show a video AD or display AD right.
And now since Q3 that actually happened last quarter, we started video AD got lower rates than display ads.
So we could we could have made a bigger margin on display and our actually our algorithm to chose that because on the publishing side publisher just want a higher yield which the algorithm generates a higher yield.
So this is why.
Our algorithm Q3, Q4 decided that the state will generate higher profits and that's how it's being chosen.
Okay, great. Thanks very much.
Thank you.
Thank you. Our next question today is coming from Jeff Martin from Roth. Your line is now live.
Thank you good afternoon, and good morning to everybody.
Wanted to see if you could elaborate on the geographic expansion strategy I know you mentioned the new relationship in Brazil.
That could be very meaningful over time, but just curious if you can elaborate on on any other details on your geographic expansion strategy.
Absolutely. So the reason why we bought high stack, because we think and we see that it's super synergetic with anything that we do.
So undertone and high Tech actually sell the same type of client right.
The agencies.
Now I'll turn has amazing relationship within the U S. While high stack has an amazing relationship everywhere else.
So we're going to push the existing product as we have through the high stack relationships worldwide.
And we're also going to push the higher stack.
Technology to the undertone relationship in the U S. Just said that.
Everywhere else.
But I pushed undertone everywhere else and so I'm going to push hard stack U S. Now having said that when you have a DSP and SSP, which is basically with hindsight it does.
We get.
An agreement with a company like Little media, which is a huge media company in Brazil, you can now have the ability to sell Brazilian traffic Brazilian screens for everywhere else. So as there is an American company that wants to promote to bridge to the Brazilian market or Chinese or Japanese.
Advertiser. They now can do that who are exclusive inventory there now bear in mind, where because we have the DSP SSP. Our goal is to cause the increase more inventory worldwide and more advertisers worldwide because what happened is a lot of adverse.
Risers and different countries are advertising budgets on other countries right. This is what we call inside out so we're actually getting you know.
As it is Hong Kong and Korea actually advertise on our Japanese screens, so that kind of constantly happening. So we want to add more agreements like that and this is the first stage and through those agreements we want to push more high impact creative that undertone are so good at so I hope that answered.
The question very helpful. Thank you one more if I could just curious how you're thinking about capital allocation strategy going forward you look at the free cash flow generation.
This year more than paid for the highest stack acquisition should we be looking for additional M&A in 2024 and might you consider.
Share repurchase program or a dividend program. Thanks.
So that's a great question so.
Absolutely M&A, absolutely you know, we want to continue to grow even faster.
We want to add more technologies with immediate retail space CTV measurements, we want to grow faster and grow faster even with profitability. So that's one thing.
No buybacks.
It's always a part of our discussions were actually done a very thorough analysis.
And what we've been told by.
Our research is creating long term value.
Continued to grow as fast as possible is going to create more value for shareholders in buybacks.
Having said that this is always something that Oh.
Sure.
You know, we're thinking on but frankly, we think pushing the company forward and having a leadership position in the market will gain more market value for investors.
Value for investors than buybacks.
Thank you.
Thank you. Our next question today is coming from Eric Martin Mucci from Lake Street. Your line is now live.
Hey, I wanted to go a layer deeper on the shift in the mix of video versus display.
What do you think is behind the video getting lower rates than perhaps historically video achieved.
So as you know always the dynamic in the market and now we're working with the move to Bill.
Yeah solutions and formats, you can take the CTV boom in other Xerox charging.
Sometimes more than $30 to the standoff.
But they're all with fewer dollars and this is always based on demand and supply and.
No.
What is available and what is now more effective for the advertiser.
And then I think the beautiful thing with our system and with our technology is our ability to identify the opportunities and based on that too.
Improve our position and to improve margin.
Do what is good for them.
The results and this is what happened in the last two quarter. This is something that started at the beginning.
Of the third quarter. So this is age to 20 minutes away and this is the trend and management at full force will look different we'll need to keep our eyes open to track and to see where all the opportunities and this is I think part of it.
Vintage with the diversification that we have and the different products that we're offering and.
Again, nothing more than that of course, there are a lot of it.
The reason behind any preference that is dependent on geographics depends on the customer tied to depend on what's happening.
In the market.
But again for US. This is just really going about this opportunity.
Okay.
Let me just add one more thing sorry.
One would think of that.
I think it goes back to the strategy that we have right. We know it's very dynamic advertisers are keep shifting budgets based on the goals they have correctly right. So.
Currently more emphasize is when we started this past secure quarters, whereas the Tigers are pushing towards direct response direct direct a why is why searches going up is widen stays going are these.
To stay versus video great.
And other times video is going up instead of that so this goes back to the strength of our model of diversification, we're not putting.
All of our eggs in one basket for diversify and want to make sure that our technology meets the consumer where the advertising need them, we're not doubling down on a specific format. That's not what we do want to make sure that advertisers have different strategies to have different periods, where.
Going to meet them and desert.
Okay.
Then driven by you know tell you were to ask the question regarding vertical strength or vertical weakness over the past six months you know could you address.
In our financial services travel and entertainment, maybe auto what trends are you seeing over the past six months as far as Doug.
So we do see auto you know.
In a pretty good shape.
Sure and slowest Q4 was still low travel was still up.
We don't have the numbers for Q1 still.
We're hoping that the insurance and the largest started is going to start to pick up.
But those are those are the trends in Q4.
Got it thanks for taking my question.
Yeah.
Thank you.
Yes.
Our next question is coming from Richard Munoz from Raymond James Your line is now live.
Yeah. Thank you for taking my question could.
Could you please expand on the opportunity in search.
What's driving the above trained strongly sold this quarter and how sustainable is the opportunity.
Thank you.
Great.
Yes.
Listen we're as always we're adding more publishers, which are adding more searches.
But then of the day, it's really a market trend right.
We're advertising budgets are going to shift our now shifting into direct response in Q4.
Again, it goes back to a lot of market movements.
And in our ability to gain more searches.
Thank you.
Thank you.
Thank you we reached end of our question and answer session I'd like to turn the floor back over for any further or closing comments.
Thank you so Ah.
We're very happy about the Q4 and the full year of 2023 resorts we think.
We saw a tremendous growth we're going to continue to grow we're going to continue to invest in technology and we're going to continue.
To push this company forward yields the years to come.
Yeah.
Again.
Well push off profitability gaining more cash.
That's our strategy.
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