Q4 2023 Aterian Inc Earnings Call
Thank you Laura Great question.
Operator: Thank you, Laura. A great question.
We can we continue to believe that the financial services vertical banana banking financial services and insurance.
Speaker: We continue to believe that the financial services vertical, banking, financial services, and insurance, is a big opportunity for our business. In the market environment that we have been in over the last couple of years with interest rates, one of our larger clients was engaged in auto finance, and there were challenges in the automotive vertical. There were a number of headwinds facing the customer base that we had in the financial services vertical, but we remained optimistic about that vertical because of our ability to drive the campaigns in a privacy-forward manner, for example, in compliance with the Equal Credit Opportunity Act and the Fair Housing Act. We don't use prohibited basis variables in our models.
Is a is a big opportunity for our business in the market environment that we have been in over the last couple of years with interest rates.
One of our larger clients was engaged in auto finance and there were there were challenges in the automotive vertical there were a number of headwinds facing the customer base that we had in the financial services vertical we remain optimistic about that vertical because of our ability to drive.
The campaigns in a privacy board manner for example in compliance with equal credit opportunity Act. The Fair housing Act, we don't use prohibited basis variables in our models a number of other really important and valuable things for <unk>.
Speaker: A number of other really important and valuable things for financial services marketers, especially in the area of credit extension products. So we are very, very bullish about financial services, but you also have to be mindful of the macro and the industry and the conditions that you're in. So travel is exciting for us. We have a strong kind of start to the year in travel. We have our predictive audiences, our CTV, our creative services that we offer, and a number of the studies and measurement programs that we offer customers, such as destination sales lift. A number of the new data investments and partnerships that we've made give us a very customized travel vertical. It's not just the product; it's also the go-to-market strategy.
Financial services, marketers and especially in the area of credit extension products. So we are very very bullish about financial services, but you also have to be mindful of the macro and the industry and the conditions that you're in so travel is exciting for us that we actually had.
A very strong we have a strong start to the year in travel we have our predictive audiences.
Our CTV our creative.
Our creative services that we offer in a number of the studies and measurement programs that we offer customers such as destination sales lift some number of the new data investments and partnerships that we've made give us a very customized travel vertical.
It's not just the product. It's also the go to market.
Speaker: We have a leader in our organization who's driving great results across travel. And we're bringing in a number of new members to our travel team. We're making a number of incentive changes and a number of go-to-market enhancements to our travel vertical. So we feel very optimistic that in 2023, I'm sorry 2024, travel will be one of the success stories that we'll talk about in the year wrap-up call. Super helpful. Okay, Patrick, one for you.
As a leader in our organization, who is driving great results across travel we're bringing in another.
Another <unk>.
<unk> of new members to our travel team were making a number of incentive changes in a number of.
Go to market enhancements to our travel vertical so we feel very optimistic that in 2023, I'm sorry, 2020 for travel will be one of the success stories that we'll talk about in in the year wrap up the call.
Yeah.
Super helpful. Okay, Patrick why don't forget what perhaps.
Laura: What is going on with the Couch Receivable? So I have free cash flow, meaning cash from offs down $13 million and accounts receivable up $15 million. Is it just this pivot to large and their clients, their slow payers because this is a lot of sort of tax on ad theorem to add 15 million year-over-year in accounts receivable. What's going on?
LNR with accounts receivable, so I have three car firming and cash from ops down $13 million accounts receivable up $15 million is it just the pivot to large.
Clients Theyre slow payers because this is a lot.
Tax on out there to add $15 million year over year and accounts receivable, what's going on there.
Patrick: Yeah, thanks. Thanks, Laura. Yeah, you're, uh, part of your, uh, answer, I guess, is already true. We are pivoting to larger customers. And that is part of the dynamic here. Another part of the dynamic, though, is that in Q4, a lot of the revenue did come in and get billed in December. And so the timing of such AR balances just works. So we're not collected before the end of the year. So that is really driving the two things driving that investment. And that was different than last year somehow, so we didn't see that seasonality in the last year's fourth quarter.
Yeah. Thanks, Thanks, Laura Yes, you are.
Part of your.
You hear your answer I guess is already true that we are pivoting to larger customers.
And that is part of the dynamic here another part of the dynamic though is in Q4.
A lot of the revenue did.
Come in and get build in December and so the timing of such.
Our balances just work so we're not collected before the end of the year. So that is really driving the two things driving that increased.
And that was different than last year somehow so we didn't see that seasonality in the last year fourth quarter.
B the dynamic of.
Patrick: The dynamic of, in 2022, we had less fourth-quarter incrementals come in, whereas in 23, that really did help drive our Q4 performance. And also, due to the timing, and like I said, in December, it just drove that dynamic for increased AR at the end of the year. Cool, but you think this is structural because as we move towards bigger clients, they pay less. So this is going to be a good growth of your revenue line, and you believe will be a higher tax in 24 on your working capital line through the accounts receivable. This is a structural trend. Yeah, I mean, I think that areas.
In 2022, we had less.
Fourth quarter Incrementals come in.
Whereas in 2003 that really did help drive our Q4 performance and also due to the timing and like I said in December.
It drove that dynamic for increased AR at the end of the year.
Yes.
Okay cool, but you think thats, a structural because as we move towards bigger clients. They pay slower. So this is going to be the growth of your revenue line. You believe will be a higher Tac in 2014, our working capital line through the accounts receivable. This is a structural trend do you think.
Yes, I mean I think that.
There is truth to that.
Patrick: Truth to that, I mean, I point out that our working capital did improve $7 million year over year at the end of the year. And so, you know, that will translate into cash flow and improved cash flow in 2024. It just happened to be the timing of such things at the end of the year, and we'll manage our way through that and, you know, get this working capital converted into cash this year. Okay, thanks very much.
I'd point out that our working capital did improve $7 million year over year at the end of the year.
And so that will translate into cash.
Our cash flow and improved cash flow in 2024.
Just happened to be the timing of such at the end of the year and we'll we'll manage our way through that and.
Get get this working capital.
Converted into cash this year.
Okay. Thanks very much.
Laura: Thanks, guys. Great numbers. Congratulations.
Thanks, guys great numbers congratulations.
Operator: Yep. Thank you, Laura. We'll move next to Matt, and unknown at Citizens JMC.
Thank you Laura.
We'll move next to Matt Condon at citizens JMP.
Yeah.
Matt: Great Thank you for taking my question. Maybe just on cookie deprecation: can you just talk about whether there has been a change in the conversations that you are having with advertisers as they gear up for the deprecation of cookies in the back half of the year? Yeah, thank you for the question. It's one of our favorite topics. Absolutely, 100%. This is a topic on everybody's mind. We highlighted in our prepared remarks that despite the fact that the deprecation of cookies is here, a number of advertisers are behind in their planning. We've done our own research, and we've talked to advertisers in the market about their interest and their preparations for the post-cookie world, and the types of ML solutions, impression scoring, using statistics, and not an ID-focused approach is actually the number one response we get when we talk to customers about what the post-cookie world looks like.
Great. Thank you for taking my question, maybe just on Cookie Deprecation can you just talk about has there been a change in your conversations that you're having with advertisers as they gear up for the deprecation of cookies in the back half of the year.
Yes. Thank you for the question one of our favorite topics.
Absolutely, 100% this is a topic on everybody's mind.
Highlighted in our prepared remarks that.
Despite the fact that the deprecation of cookies is here.
A number of advertisers are behind in their planning we've done our own research and we talk to advertisers in the market about their interest in their preparations for the post cookie world.
The types of ml solutions.
Impression, scoring using statistics.
And I'd focused approach is actually.
The number one response, we get when we talk to customers about what the post cookie world looks like we couldnt be more excited about that opportunity. We have been doing this since 2012. This is not a new reaction or pivot or backfill endeavor for adherent. This is add darrin, we have been working on.
Speaker: We couldn't be more excited about that opportunity. We have been doing this since 2012. This is not a new reaction, pivot, or backfill endeavor for Adderant. This is what Adderant is all about.
Speaker: We have been working on impression scoring and believe that it's preferable to user profiling and ID retargeting, and we're super excited to be able to engage with customers who maybe have a greater sense of urgency around this topic than they have in prior months and quarters. So yeah, we're quite excited about it. These conversations will continue, and we believe that in 2024, that enthusiasm will show up in the results. That's great.
One impression scoring.
And believe that it is preferable to user profiling and I'd re targeting and we're super excited to be able to engage with customers, who maybe have a greater sense of urgency around this topic than they have in prior <unk>.
And quarters. So yes, we're quite excited about it. These conversations continue and we believe that in 2024 that enthusiasm will show up in the results.
That's great and then Jim you also mentioned just the early stages of just a stabilization in the macro can you maybe just talk about just the linearity of demand throughout the quarter and maybe what youre seeing so far in <unk>, that's giving you that confidence. Thank you.
Jim: And then, Jim, you also mentioned just the early stages of just the stabilization of the macro. Can you maybe just talk about just the linearity of demand throughout the quarter and maybe what you're seeing so far in 1Q that's giving you that confidence? Thanks.
Sure.
Jim: Sure. We feel good. We feel like the macro has stabilized to a large degree. At the beginning of the year, a number of our larger customers got off to a slower start in terms of budget completion and finalization, and communication of campaign starts.
We feel good we feel like the macro has stabilized to a large degree.
In the beginning of the year.
A number of our larger customers got off to a slower start in terms of budget completion, and finalization and communication of campaign.
Darts, So we had a little bit of a slow start in January from some of our from some of our accounts but.
Jim: So, we had a little bit of a slow start in January from some of our accounts, but as the quarter has progressed, the momentum has increased. So, we feel good about where we're headed. But I would say that, you know, at the beginning of the year, I think there was a little bit of a delay in budgeting and finalizing budgets from a number of customers. I don't think that was unique to Adderant.
As the quarter has progressed.
The momentum has increased so we feel good about where we're headed.
But I would say that the beginning of the year I think there was a little bit of a budget.
<unk> and budgeting and finalizing our budgets from from a number of customers I don't think that was unique to add Darren from our understanding that was.
That was consistent with a number of a number of companies in our business.
Jim: From our understanding, that was consistent with a number of companies in our business or industry, rather. I could just add to that that you asked about our linearity. I think our booked revenue and our pipeline levels are both higher at this point in the year than they were last year at this time, which supports our fiscal year guidance range that we've divided in the market. That's very helpful. Thank you. We'll take our next question from Dan Curtis at the... Great, thanks. Good afternoon,
History rather.
I could just add to that that you asked about our linearity I think our booked revenue and our pipeline levels are are both higher at this point of the year than they were last year at this time, which support our fiscal year guidance range that we provided.
Remarks.
That's very helpful. Thank you.
Yeah.
We'll take our next question from Dan <unk> at the benchmark company.
Okay.
Great. Thanks, good afternoon.
Dan: That is a very solid way to end the year, guys. Jim, maybe we could just talk about the timing of the UIUX rollout. I know it was just one of the initiatives that you mentioned, but I will tell you that we've been seeing, let's call it simplification to not insult the agencies, some of these platforms and interfaces, and I'm just kind of curious if you're doing any integration work on the back end, or if there's anything else that's kind of driving your optimism around that, adding to growth, as we've heard from others doing similar Thank you, Dan. That's an outstanding question, and it very much lines up with our focus on making our platform easier from the perspective of a non-expert user.
That is a very solid way to end the year guys.
Jim maybe just talk about the.
The timing of the UI UX rollout I know it was just one of the initiatives that you mentioned, but I will tell you that we've been seeing.
Let's call it simplification for not to insult the agencies of some of these.
Platforms and interfaces and I'm just kind of curious.
If youre doing any integration work on the backend or if there anything if there's anything else that's kind of driving your optimism around that adding to growth as we've heard from others doing similar processes. This year.
Thank you Dan that's an outstanding question and it very much lines up with our our focus on making our platform easier.
From the perspective of a non expert user.
Dan: There are a lot of experts out there in the industry, but there's also a number of media buying users that would benefit from a more streamlined interface that makes more decisions for the user. But that doesn't mean we're dumbing down our platform or removing functionality. That's not what we're doing, but we are making some decisions, default decisions, and more streamlined decisioning and some more just conformity, if you will, to an industry standard that has evolved among DSPs for a number of things within the platform.
There are a lot of experts out there in the industry, but theres also a number of media buying users that.
That that would benefit from a more streamlined.
Your face that makes more decisions for the user that's not to say, we are dumbing down our platform of removing functionality.
Not what we're doing but we are making some decisions.
Default decisions and more streamlined decisioning.
And some more.
Just.
Conformity, if you will to an industry standard that's evolved among DSP for a number of things within the platform I think the the collective result.
Jim: I think the collective result there will be easier adoption, shorter training times, and a shorter period between contract execution and first campaign launch. That's something that we focus on a lot, and we feel like a number of the changes that we're making are going to help in that regard. We're also quite excited, as I mentioned in our prepared remarks, about some of the generative AI advancements and contributions that we're making to a number of features of our platform, such as the health audience builder, where you don't need to be, for example, an expert in all the different specific health diagnoses or treatment names. By their exact names, you can speak in a more plain English manner.
There will be easier.
Easier adoption shorter training times or.
Lower.
Period between contract execution and first campaign launch that's something that we focus on.
A lot and we feel like a number of the changes that we're making are going to help in that regard. We're also quite excited as I mentioned in our prepared remarks about some of the.
Generative AI.
Advancements and contributions that we would be that we're making to our number of the features of our platform such as the health audience builder, where you don't need to be for example, an expert in all of the different specific health diagnoses or.
Treatment names by the exact names you can speak in a more plain English plain English manner, and our large language models and generative AI that we're incorporating into happy will assist users in and creating the audiences and again. These are algorithmic audiences theaters these or not.
Jim: And our large language models and generative AI that we're incorporating into HAPI will assist users in creating the audiences. Again, these are algorithmic audiences. These are not ID-based audiences. They are not look-alike audiences.
I'd based audiences theyre not lookalike audiences. These are algorithmic audiences based on statistics from aggregated data.
Jim: These are algorithmic audiences based on statistics from aggregated data. So we think that that makes algorithmic targeting and algorithmic audience creation more attainable and usable for non-expert traders. Got it. That's really helpful, Jim. Thanks for that color.
So we think that that makes.
Algorithmic targeting and algorithmic audience creation, more attainable and usable for non expert traders.
Got it that's really helpful. Jim Thanks for that color and then just on them.
Dan: And then just from a bigger picture perspective, obviously, you guys have top line momentum. I guess, Jim, as a follow-on to what I just asked, what's your willingness to reinvest this year, not just in improving the platform, but whether it's initiatives like new product builds or, and we haven't talked about going after international, which sounds like it's recovering, just what's your willingness to reinvest in the platform And do you have any kind of medium to longer term sustainable growth targets in mind at this point? Yeah, thank you, Dan.
A bigger picture perspective, obviously, you guys have topline momentum I guess Jim.
As a follow on to what I. Just asked is what's your willingness to reinvest this year not just in improving the platform, but whether its initiatives like new product builds or and then we haven't talked about going after international it sounds like it's recovering just what's kind of your willingness to reinvest in the platform. This year and do you have like kind of.
Medium to longer term sustainable growth targets in mind at this point.
Yes, Thank you Dan.
We've been in a constant state of investment on this platform.
Jim: We've been in a constant state of investment on this platform for years. I mean, we could invest, frankly, a lot more. We think that our product and tech roadmap is five years long right now. We could accelerate many things.
For years, I mean, we could invest frankly, a lot more we think that our product.
And tech roadmap.
It's five years long right now we could we could accelerate many things.
Jim: Obviously, we're trying to balance short-term and near-term performance with long-term differentiation and superiority in our marketplace. And we want to make sure that we can extend our advantage on machine learning-based impression scoring and not forfeit any of that advantage and lead that we have. But you're hitting on kind of the challenge as a small public company that, you know, we would love to make investments in today for a number of initiatives. But we have to make choices. And we've made a number of choices to be focused while at the same time delivering fantastic outcomes and financial results for our shareholders. Yeah, Dan, this is Patrick.
Obviously, we're trying to balance short term and near term performance with long term.
Yes.
Differentiation and superiority in our marketplace and we wanted to make sure that we can extend our advantage on machine learning based impression, scoring and not and not forfeit any of that advantage and lead that we have.
But you are hitting on kind of the challenge as a small public company.
We would love to make investments today for a number of initiatives. So we have to make choices we've.
We've made a number of choices to be focused while at the same time delivering.
Fantastic outcomes and financial results for our for our for our shareholders.
Yes, Dana this is patrik I'll just add that.
Patrick: I'll just add that, from an investment perspective, we don't see our CapEx or capitalized software expenditures increasing materially from 2023. We expect that to be relatively consistent, but it will depend on top-end performance and how much further momentum we're seeing and how that will enable us to invest more. So what I'm saying is that our investment decisions are in light of our performance, and we will monitor that as we go through the year. I got it.
From a from a investment.
<unk>, we don't see our capex.
Our capitalized software.
Expenditures increasing materially from 2023, we expect that to be relatively consistent but it will depend on top line performance and how and how much.
Our momentum further momentum, we're seeing and how that will enable us to invest more so what im saying is that our investment decisions are in light of our performance and we will monitor that as we go through the year.
Got it can I, if I could sneak a real quick third one in just tack with really efficient in Q4, and you guys have guided to let's call. It <unk> I guess of sort of 64, 5%, which would be <unk>.
Dan: If I could sneak a real quick third one in, just TAC was really efficient in Q4, and you guys have guided it to, let's call it AGP, I guess, around 64.5%, which would be a step up from the Q4 level. I know there's a mix, but if you could give us any kind of incremental granularity around why Q4 AGP was so strong and just why some of those benefits aren't necessarily flowing through to the year, that would be great. Yeah Dan.
Up from the Q4 level I know theres mix, but if you could give us any kind of incremental granularity around why Q4 AGP was so strong.
And just why some of those benefits arent necessarily flowing through to the year that would be helpful.
Yes.
In Q4, we are good.
Speaker: In Q4, our good AGP margin performance was driven by the adoption of our at their Unpredictive Audiences solution, which replaced third-party costs with an internal solution, which increases the amount of margin dollars flowing through. Sometimes that's harder for us to predict in real time. And so, you know, we saw a fair amount of that coming through in Q4, which was an upside to our guidance. But we do think that.
Margin performance was driven by the adoption of our.
At their and predictive audiences solution, which replace third party costs with an internal solution, which increases.
The amount of margin dollars flowing through.
Sometimes that that's harder for us to to predict in real time.
And so we saw a fair amount of that coming through in Q4, which was which was upside to our guidance but.
But we do think that.
Speaker: A 64-65 percent level, which is kind of historically consistent with the last two years of what we realize is prudent to budget for as we think through the future. Got it. All right. Super helpful.
Ah 64, 65% level, which is kind of.
Historically consistent with.
The last two years of of our of what we realize is prudent.
To budget for as we think through the future.
Dan: Thanks, guys. I appreciate it. Thank you, Dan. We'll go next to Michael Zabran. This is a production of the U.S. Department of State. Pesky at Nobel Capital Marks.
Got it alright Super helpful. Thanks, guys I appreciate it.
Thank you Dan.
We will go next to Michael.
Excuse me Kukowski at noble capital markets.
Michael David Zabran: Thank you. Thanks for taking the questions. Good afternoon, and congratulations.
Thanks for taking the questions good afternoon and congratulations.
Michael David Zabran: I was wondering, can you give us an update on the strategic partnership you have with Hero Media? If you could just kind of give us an update on how Hero1 is performing against your expectations? Thank you for the question, Michael. We love our partnership with HERO. We view this as a horizontal opportunity to provide unique capabilities to our customers who are seeking to reach multicultural audiences across the spectrum. We think that their predictive audience products enable a lot of customization in that area.
I was wondering can you give us an update on the strategic partnership you have with hero media. If you could just kind of give us an update on how <unk> is performing against your expectations.
Thank you for the question Michael.
We love our partnership with Hero, we view this as a horizontal opportunity too.
Provide.
Unique capabilities too.
To our customers who are seeking to reach multicultural audiences.
Across the spectrum.
We think that our add their predictive audience product.
Table a lot of customization.
In that area hero has been fantastic in market getting us opportunities with some very.
Speaker: Hero has been fantastic in the market, getting us opportunities with some very exciting brands and agencies. So that is progressing along quite nicely. And we will provide, you know, we expect a hero, multicultural, horizontal, again, not a vertical, but a horizontal. We expect that to tap into budgets intended for multicultural budgets within a number of different verticals across our business.
Exciting brands and agencies, so that that is progressing along quite nicely.
And we will provide we expect a hero.
Multicultural horizontal again, not a vertical but a horizontal.
We expect that to tap into budgets and <unk>.
Tended for multicultural budgets within a number of different verticals across our business and we think that that's going to drive.
Speaker: And we think that that's going to drive a portion of our growth in 2024. So we're excited to see that show up in the results. But it's early.
A portion of our growth in 2024, so we're excited to see that.
Show up in the in the results, but it's early.
Speaker: So we they actually drove a number of exciting deals in the fourth quarter, which we're excited about. They contributed to that positive end to the year. And I'm very confident that as the year progresses, the hero partnership is going to be a big part of our success. Gotcha. And then I'm always looking for what could go wrong.
They actually drove a number of exciting deals in the fourth quarter, which we're excited about that contributed to that positive end to the year.
And I'm very confident that as the year progresses. The hero partnership is going to be a big part of our success.
Gotcha, and then I'm always looking for what could go wrong. So I know that you've been configuring your systems for the post cookie world, but is there a chance that Google implement from technology that render some of that work problematic for you maybe for them.
Speaker: So I know that you've been configuring your systems for the post-cookie world, but is there a chance that Google implements some technology that renders some of that work problematic for you, maybe for them, you know, for you to use with their systems or those of aggregate data exchanges? Yeah, well, I mean, we've, you know, we've acted, we've been actively working with Google and with the Google Privacy Sandbox and the proposed cookie framework. We're in the weeds out there. Our tech teams are doing testing with the APIs. We are iterating with Google, and we have a clear line of sight into what that's going to look like. And from where we sit, it's a positive story. It's a story of replacing a cookie, which is an inherently individualized piece of information, with more aggregated data that, again, is more important for us anyway. So when we optimize buying media, when we optimize buying media impressions, what we do is we look for high-indexing attributes that are present. And when those high indexing attributes are present that are driving conversions, we try to find other impressions that look like that. So we're not looking for IDs.
For you to use with their systems are those of aggregate data exchanges.
Yes.
We've actually we've been actively working.
With Google and with the Google privacy sandbox in the post Cookie framework.
In the weeds. There are tech teams are are doing testing with the API as we are.
Iterating with Google and and we have clear line of sight into what that is going to look like in and from where we said.
It's a positive story, it's a story of replacing.
A cookie, which has an inherently lee individualized.
Piece of information.
It more aggregated data.
Again, that's more important for us anyway, so when we optimized.
Buying media when we optimize buying media impressions. What we do is we look for high indexing attributes that are present and when those high indexing attributes are present that are driving conversions. We tried to find other impression that looked like that so we're not looking for Ids. So the deprecation of the Cook.
Speaker: So the deprecation of the cookie doesn't impact our modeling. Our ability to get information back from Google so that we know when we drive a conversion that we can have aggregated data about all the conversions we're driving is what we need. And we're pleased to see that that's what we're getting from that post-cookie framework. So no, I mean, you know, it's early, it's still early. Only 1% of Chrome cookies have been deprecated.
He doesn't impact our modeling our ability to get.
Information back from Google So that we know when we drive the conversion that we can have aggregated data about all the conversions, we're driving that's what we need and we're pleased to see that that's what we're getting from that post cookie framework. So no I mean.
It's early it's still early.
Only 1% of chrome.
<unk> had been deprecated theres a lot of work to be done, but I think we have the right team to do that work and I think we have an advantage and a head start frankly.
Speaker: There's a lot of work to be done, but I think we have the right team to do that work. And I think we have an advantage in a head start. Thanks for the color there.
Yeah, Thanks for the color there.
Speaker: Last question, given your healthy balance sheet, any M&A that you might be looking for to enhance your growth? Can you just give us your thoughts there? We're always looking for great opportunities. We've been heads down on, we've never acquired technology. We've never acquired anything.
The last question given your healthy balance sheet any M&A that you might be looking for.
To enhance your growth can you just give us your thoughts there.
We're always looking for great opportunities, we've been heads down on on we've never acquired technology. We've never acquired anything I mean, we've built everything homegrown were relatively small business 300 300 employees.
Speaker: I mean, we've built everything homegrown. We're a relatively small business, with 300 employees. We definitely can see a role for targeted M&A and other strategic type combinations as being a part of our future. There are a lot of good arguments for that.
We definitely can see a role for targeted M&A and other strategic type.
Combinations as being a part of our future there are a lot of good arguments for that.
Michael David Zabran: On a day-to-day basis, we're focusing on executing against our product and tech roadmap and driving our financial outcomes that position our company for strength and give us opportunities. But absolutely, I think the types of opportunities you're mentioning are exciting and something we're definitely looking at closely. Great. Thank you. That's all I have.
On a day to day basis, we're focusing on executing against our product and tech roadmap and driving our our financial outcomes that position our company for strength and give us opportunities, but absolutely I think the types of opportunities. You are mentioning are are are exciting and something we're definitely looking at closely.
Great. Thank you that's all I have congratulations again.
Michael David Zabran: Congratulations again. Thank you, Michael. We appreciate it. And there are no further questions at this time. I would like to turn the conference over to Jim Lawson for closing. Thank you, everybody, for being here today.
Thank you Michael we appreciate it.
And there are no further questions at this time I would like to turn the conference over to Jim Watson for closing remarks.
Thank you everybody for being here today.
Jim: We had a great finish to 2023. We've reached an inflection point in our business. In 23, growth accelerated, going from 9% in the third quarter to 15% in the fourth quarter. We hit our targets that we set at the beginning of the year. Growth comes from our strategic investments, which are paying off, self-service, predictive audience solutions, and health. Our customers are spending more on average of 12% in 2023. This growth is translating into great profits, with 34% EBITDA margins in Q4. In closing... I would be remiss not to thank the AdDare team for continuing to execute at such a high level. Our momentum is continuing into 2024, and we look forward to speaking with investors again very soon. And this concludes today's conference call. Thank you for your participation. You may now.
We had a great finish to 2023, we've reached an inflection point in our business and 23 growth accelerated going from 9% in the third quarter to 15% in the fourth quarter.
We hit our targets that we set at the beginning of the year growth came from our strategic investments, which are paying off self service predictive audience solutions health.
Our customers are spending more on average up 12% in 2023.
This growth is translating into great profit with 34% EBITDA margins in Q4.
In closing I.
I would be remiss to not think the add Darren team for continuing.
To execute at such a high level, our momentum is continuing into 2024, and we look forward to speaking with investors again very soon.
And this concludes today's conference call. Thank you for your participation you may now disconnect.
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