Q2 2024 DoubleVerify Holdings Inc Earnings Call

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Operator: Welcome to the Doubleverify Second Quarter, 2024 Financial Results Conference Call. At this time, all participants are in a list of only vote. If you require operator assistance, please press star zero on your telephone keypad.

Operator: Welcome to the Doubleverify second quarter 2024 financial results conference call. At this time, all participants are in a listen-only mode.

Speaker Change: Welcome to the Doubleverify second quarter 2024 financial results conference call.

Operator: If you require operator assistance, please press star zero on your telephone. The question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the call over to Tejal Engman, Investor Relations. Thank you.

Speaker Change: At this time, all participants are in a listen-only mode.

Speaker Change: If you require operator assistance, please press star zero on your telephone keypad. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded.

Operator: A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded.

Tejal Engman: I would now like to turn the call over to Tejal Engman, investor relations. Thank you. You may begin.

Speaker Change: I would now like to turn the call over to Tejal Engman, Investor Relations. Thank you. You may begin.

Tejal Engman: Good afternoon and welcome to the Doubleverify Second Quarter, 2024 Endings Conference Call.

Tejal R. Engman: Good afternoon, and welcome to Doubleverify's second quarter 2024 Earnings Conference Call. With us today are Mark Zagorski, CEO, and Nicola Allais, CFO. Today's press release and this call may contain forward-looking statements that are subject to inherent risks, uncertainties, and changes and reflect our current expectations and information currently available to us, and our actual results could differ materially. For more information, please refer to the risk factors in our recent SEC filings, including our Form 10-Q and our annual report on Form 10-Q.

Speaker Change: Good afternoon and welcome to Doubleverify's second quarter 2024 earnings conference call. With us today are Mark Zagorski, CEO , and Nicola Allais, CFO .

Tejal Engman: With us today, Mark Zagorski, CEO, and Nicola Allaiski, CEO. Today's pressure ladies in this call may contain forward-looking statements that are subject to inherent risks, uncertain cases, and changes, and restrict our current expectations and information currently available to us, and our actual results can determine clearly.

Speaker Change: Today's press release and this call may contain forward-looking statements that are subject to inherent risks, uncertainties and changes, and reflect our current expectations and information currently available to us, and our actual results could differ materially.

Tejal Engman: For more information, please refresh the risk factors in our recent FEC filings, including our 410Q and our annual report of 410K. In addition, our discussions today will include references to certain supplemental non-GAAP management measures and should be considered in addition to enough of the subsidies for our GAAP results. Reconciliation is the most comfortable gap measures available in today's ending first release, which is available on our Investor Relations website at ir.verify.com.

Speaker Change: For more information, please refer to the risk factors in our recent FEC filings, including our Form 10-Q and our annual report of Form 10-K .

Tejal R. Engman: In addition, our discussion today will include references to certain supplemental non-gap financial measures that should be considered in addition to and not as a substitute for our gap, Reconciliations to the Most Comfortable Gap Measures available in today's Earnings Press release, which is available on our Earnings Investor Relations website at ir.doubleverify.com. Also, during the call today, we'll be referring to the slide deck posted With that, I'll turn it over to you all.

Speaker Change: In addition, our discussion today will include references to certain supplemental non-GAAP financial measures and should be considered in addition to and not as a substitute for our GAAP results.

Speaker Change: Reconciliations is the most comfortable gap measure available in today's earnings press release, which is available on our Investor Relations website at ir.doubleverify.com. Also, during the call today, we'll be referring to the slide deck posted on our website. With that, I'll turn it over to Mark.

Tejal Engman: Also, during the call today, we'll be referring to the slide deck.

Mark Zagorski: With that, I'll turn it over to Mark. Thanks, Zagor. Thank you all for joining us today.

Mark S. Zagorski: Thanks, Tejal, and thank you all for joining us today. The second quarter was pivotal for DV, as we reaccelerated our revenue growth trajectory, fueled by ongoing momentum in social and CTV measurement and a sustainable upswing in our supply side platform business, driven in large part by the burgeoning retail media sector. We achieved the high end of our revenue guidance and significantly exceeded our profitability and cash flow expectations. We grew second quarter revenue by 17% year-over-year to $156 million, with double-digit revenue growth across all three revenue lines, activation, measurement, and supply.

Mark Zagorski: The second quarter was pivotal for DV. As we re-excelerate our revenue growth trajectory, fueled by ongoing momentum in social and CTB measurement and a sustainable upswing in our supply side platform business, driven in large part by the burgeoning retail media sector. We achieved the high end of our revenue guidance and significantly exceeded our profitability and cash flow expectations. We grew second quarter revenue by 17% year-to-year to $156 million, with double-digit revenue growth across all three revenue lines: activation, measurement, and supply side. By increasing revenue and reducing our cost of sales year-to-year through the implementation of our universal content intelligence tool, a proprietary AI-powered video classification solution, and other investments in technological efficiencies, we achieved an 83% gross margin and $47 million of adjusted EBITDA, representing a 30% adjusted EBITDA margin.

Mark S. Zagorski: Thanks, Tejal, and thank you all for joining us today.

Mark S. Zagorski: The second quarter was pivotal for DV as we re-accelerated our revenue growth trajectory fueled by ongoing momentum in social and CTV measurement and a sustainable upswing in our supply-side platform business driven in large part by the burgeoning retail media sector.

Mark S. Zagorski: We achieved the high end of our revenue guidance and significantly exceeded our profitability and cash flow expectations.

Speaker Change: We grew second-quarter revenue by 17% year-over-year to $156 million, with double-digit revenue growth across all three revenue lines—activation, measurement, and supply side.

Mark S. Zagorski: By increasing revenue and reducing our cost of sales year over year through the implementation of our universal content intelligence tool, a proprietary AI-powered video classification solution, and other investments in technological efficiencies, we achieved an 83% gross margin and $47 million of adjusted EBITDA, representing a 30% adjusted EBITDA margin. Additionally, our net cash from operating activities grew significantly, totaling $36 million for the second quarter.

Mark S. Zagorski: By increasing revenue and reducing our cost of sales year over year through the implementation of our universal content intelligence tool,

Mark S. Zagorski: A proprietary AI-powered video classification solution.

Mark S. Zagorski: and other investments in technological efficiencies, we achieved an 83% gross margin and $47 million of adjusted EBITDA, representing a 30% adjusted EBITDA margin.

Mark Zagorski: Additionally, our net cash from operating activities grew significantly, totaling $36 million for the second quarter.

Mark S. Zagorski: Additionally, our net cash from operating activities grew significantly, totaling $36 million for the second quarter.

Mark Zagorski: We are at an inflection point in our ongoing evolution as the industry's leading media quality and performance solutions platform. For the first time in DV's history, we measured more video impressions than display impressions and more impressions outside North America than within. These milestones highlight the success of our verify everywhere strategy, enabling us to verify every digital ad impression across all channels, formats, and geographies worldwide. As video content, whether short form, long form, or CTV, becomes the primary way that consumers engage with the Internet and advertisers reach consumers, DV has developed the industry's most effective and cost-efficient solutions to verify that those video ad interactions are viewable, secure, and suitable.

Mark S. Zagorski: We are at an inflection point in our ongoing evolution as the industry's leading media quality and performance solution. For the first time in DV's history, we measured more video impressions than display impressions and more impressions outside North America than within. These milestones highlight the success of our Verify Everywhere strategy, enabling us to verify every digital ad impression across all channels, formats, and geographies worldwide. As video content, whether short-form, long-form, or CTV, becomes the primary way that consumers engage with the Internet and advertisers reach consumers, DV has developed the industry's most effective and cost-efficient solutions to verify that those video ad interactions are viewable, secure, and suitable, positioning us perfectly to continue to further capitalize on this trend.

Mark S. Zagorski: We are at an inflection point in our ongoing evolution as the industry's leading media quality and performance solutions platform.

Mark S. Zagorski: For the first time in DV's history, we measured more video impressions than display impressions, and more impressions outside North America than within.

Speaker Change: These milestones highlight the success of our Verify Everywhere strategy, enabling us to verify every digital ad impression across all channels, formats, and geographies worldwide.

Speaker Change: As video content, whether short form, long form, or CTV, becomes the primary way that consumers engage with the internet and advertisers reach consumers,

Speaker Change: DV has developed the industry's most effective and cost-efficient solutions to verify that those video ad interactions are viewable, secure, and suitable, positioning us perfectly to continue to further capitalize on this trend.

Mark Zagorski: Positioning us perfectly to continue to further capitalize on this.

Mark Zagorski: Tren. Moreover, with digital ads spend outside the United States growing at nearly double the rate of domestic growth per Magnet Global, DVS invested in more global resources than any other company in our sector, positioning us to take full advantage of this trend. Building on these achievements, our accelerating momentum is evident in the numerous RFPs we won in the first half of the year, and in an enterprise deal pipeline that has never been stronger, with greenfield and competitive opportunities set to fuel our resurgent measurement and leading activation businesses for the next several quarters. Key expansions and new logo wins in the second quarter include Philip Morris and Bacardi across multiple geographies worldwide, Panera in the United States, Anheuser Busch InBev and British Petroleum in Labam, Universal Pictures and Subway in AMIA, and Amazon Books, Dyson, Honda Mobility, J2S, EDI, Adginomodo in APEC.

Mark S. Zagorski: Moreover, with digital ad spend outside the United States growing at nearly double the rate of domestic growth per Magnet Global, DV has invested in more global resources than any other company in our sector, positioning us to take full advantage of this. Building on these achievements, our accelerating momentum is evident in the numerous RFPs we won in the first half of the year and in an enterprise deal pipeline that has never been stronger, with greenfield and competitive opportunities set to fuel our Key expansions and new logo wins in the second quarter include Philip, Morris, and Bacardi across multiple geographies worldwide. Panera bread is popular in the United States.

Speaker Change: Moreover, with digital ad spend outside the United States growing at nearly double the rate of domestic growth per Magnet Global, DV has invested in more global resources than any other company in our sector, positioning us to take full advantage of this trend.

Speaker Change: Building on these achievements, our accelerating momentum is evident in the numerous RFPs we won in the first half of the year, and in an enterprise deal pipeline that has never been stronger, with greenfield and competitive opportunities set to fuel our resurgent measurement and leading activation businesses for the next several quarters.

Speaker Change: Key expansions and new logo wins in the second quarter include Philip, Morris, and Bacardi across multiple geographies worldwide, Panera in the United States,

Mark S. Zagorski: Anheuser-Busch in BEV and British Petroleum in LATAM, Universal Pictures and Subway in EMEA, and Amazon Books, Dyson, Honda Mobility, JTI, and Ajinomoto in APAC. Additionally, first quarter winners such as Halion and Pepsi have signed up to use key DV products, including ABS and Cybids, in additional geographies, which will help bolster our activation growth into the future. Our win rate across all opportunities remains above 80%, with 70% of our second quarter wins being greenfield, which we define as wins where the advertiser wasn't using third-party tools for the business that DV won.

Speaker Change: Anheuser-Busch in BEV and British Petroleum in LATAM, Universal Pictures and Subway in EMEA, and Amazon Books, Dyson, Honda Mobility, JTI, Ajinomoto in APAC.

Mark Zagorski: Additionally, first quarter wins such as Halion Pepsi have signed up to use key DV products, including ABS and Simon's in additional geographies, which will help bolster our activation growth into the future. Our win rate across all opportunities remains above 80%, with 70% of our second quarter wins being greenfield, which we define as wins where the advertiser wasn't using third-party tools for the business that DV won. These new client wins bolster our successful land and expand strategy, through which we grew the number of advertiser customers generating more than $200,000 over the last 12 months by 16% in the second quarter.

Speaker Change: Additionally, first quarter wins such as Halion and Pepsi have signed up to use KeyDB products, including ABS and Simon's, in additional geographies, which will help bolster our activation growth into the future.

Speaker Change: Our win rate across all opportunities remains above 80%, with 70% of our second quarter wins being greenfield, which we define as wins where the advertiser wasn't using third-party tools for the business that DV won.

Mark S. Zagorski: These new client wins bolster our successful land and expand strategy through which we grew the number of advertiser customers generating more than $200,000 over the last 12 months by 16% in the second quarter. Based on our unmatched scale and differentiated solution set, we are also seizing a prime opportunity to gain market share and extend our industry leadership. With Oracle shutting down operations of Mode and Grapeshot on September 30th, we've already attracted interest from many of their advertiser and platform customers who recognize Doubleverify's differentiated best-in-class capabilities across social activation, Cybids, CTV, and retail media.

Speaker Change: These new client wins bolster our successful land and expand strategy, through which we grew the number of advertiser customers generating more than $200,000 over the last 12 months by 16% in the second quarter.

Mark Zagorski: Based on our unmatched scale and differentiated solution set, we are also seeing a prime opportunity to gain market share and extend our industry leadership. With Oracle shutting down operations of Mode and Grapeshot on September 30th, we've already attracted interest from many of their advertiser and platform customers who recognize DoubleVerify's differentiated best-in-class capabilities across social activation, cyber, CTV, and retail media. While we anticipate closing many of these opportunities by year end, the revenue impact will really kick in in early 2025 due to the time required for onboarding in ramp up. Moreover, we expect these customers to grow well beyond 2025, as we typically upsell from measurement to activation between the first and third year of new contracts.

Speaker Change: Based on our unmatched scale and differentiated solution set, we are also seizing a prime opportunity to gain market share and extend our industry leadership.

Speaker Change: With Oracle shutting down operations of Mode and Grapeshot on September 30th, we've already attracted interest from many of their advertiser and platform customers who recognize Doubleverify's differentiated best-in-class capabilities across social activation,

Mark S. Zagorski: While we anticipate closing many of these opportunities by year end, the revenue impact will really kick in in early 2025 due to the time required for onboarding and ramping up. Moreover, we expect these customers to grow well beyond 2025 as we typically upsell from measurement to activation between the first and third years of new contracts. Let's now turn to the progress we've made across all key media environments: Social, CTV, Retail Media Networks, and the Open Web.

Speaker Change: SciBiz, CTV, and Retail Media.

Speaker Change: While we anticipate closing many of these opportunities by year-end, the revenue impact will really kick in in early 2025 due to the time required for onboarding and ramp-up.

Speaker Change: Moreover, we expect these customers to grow well beyond 2025, as we typically upsell from measurement to activation between the first and third years of new contracts.

Mark Zagorski: Let's now turn to the progress we've made across all key media environments: social, CTV, retail media networks, and the open web. Our achievements in each environment are the results of DV's growing scale and connectivity and market-defining innovation, all of which are driven by our advancements in AI and automation. We grew our social measurement revenue by 44% year of year in the second quarter of 2024, up from 32% in the second quarter of 2023, driven by growth in short form video on TikTok, Metareels, and YouTube shorts. Our independent verification of social feeds has become increasingly important to our enterprise partners navigating the high value, high engagement, yet sometimes challenging content in social media.

Speaker Change: Let's now turn to the progress we've made across all key media environments.

Mark S. Zagorski: Our achievements in each environment are the result of DV's growing scale and connectivity and market-defining innovation, all of which are driven by our advancements in AI and automation. We grew our social measurement revenue by 44% year-over-year in the second quarter of 2024, up from 32% in the second quarter of 2023, driven by growth in short-form video on TikTok, MetaReels, and YouTube Shorts. Our independent verification of social feeds has become increasingly important to our enterprise partners navigating the high value, high engagement, yet sometimes challenging content on social media.

Speaker Change: Social, CTV, Retail Media Networks, and the Open Web. Our achievements in each environment are the result of DV's growing scale and connectivity and market-defining innovation, all of which are driven by our advancements in AI and automation.

Speaker Change: We grew our social measurement revenue by 44% year-over-year in the second quarter of 2024, up from 32% in the second quarter of 2023, driven by growth in short-form video on TikTok, MetaReels, and YouTube Shorts.

Speaker Change: Our independent verification of social feeds has become increasingly important to our enterprise partners navigating the high value, high engagement, yet sometimes challenging content in social media.

Mark Zagorski: Since launching our brand safety and suitability measurement solution on Meta early this year, we've successfully sold our measurement solution to over 30 advertisers who've never activated DV on Meta before. We're excited to build on this upsell momentum over the coming months and quarters. On YouTube, we now provide comprehensive brand safety and suitability reporting for Google's latest high-performance ad solutions. With our expanded coverage, advertisers can now measure Performance Max and AI-powered campaign tool that optimizes in real-time to maximize conversions and budget efficiency. Additionally, our reporting now includes Demand Jet, a Google ad solution designed to attract and convert customers through visually engaging and relevant campaigns.

Mark S. Zagorski: Since launching our brand safety and suitability measurement solution on Meta early this year, we've successfully sold our measurement solution to over 30 advertisers who've never activated DV on Meta before. We're excited to build on this upsell momentum over the coming months and quarters. On YouTube, we now provide comprehensive brand safety and suitability reporting for Google's latest high-performance ads.

Speaker Change: Since launching our brand safety and suitability measurement solution on Meta early this year, we've had successfully sold our measurement solution to over 30 advertisers who've never activated DV on Meta before. We're excited to build on this upsell momentum over the coming months and quarters.

Speaker Change: On YouTube, we now provide comprehensive brand safety and suitability reporting for Google's latest high-performance ad solutions.

Mark S. Zagorski: With our expanded coverage, advertisers can now measure PerformanceMax, an AI-powered campaign tool that optimizes in real-time to maximize conversions and budget efficiency. Additionally, our reporting now includes DemandJet, a Google Ads solution designed to attract and convert customers through visually engaging and relevant campaigns. Our partnerships with Pinterest and Reddit are also growing, and we've launched global brand safety and suitability measurement across both platforms and multiple languages. Using DV's AI-powered universal content intelligence, we integrate advanced image, audio, and text analysis to provide accurate media quality measurement and robust brand prediction.

Speaker Change: With our expanded coverage, advertisers can now measure PerformanceMax, an AI-powered campaign tool that optimizes in real-time to maximize conversions and budget efficiency.

Speaker Change: Additionally, our reporting now includes DemandJet, a Google Ads solution designed to attract and convert customers through visually engaging and relevant campaigns.

Mark Zagorski: Our partnerships with Pinterest and Reddit are also growing, and we've launched global brand safety and suitability measurement across both platforms and multiple languages. Using DV's AI-powered universal content intelligence, we integrate advanced image, audio, and text analysis to provide accurate media quality measurement and robust brand protection. These strategic expansions and technology advancements across Meta, YouTube, Pinterest, and Reddit highlight our commitment to grow and scale our social media offerings, and we are just at the start of our growth in social measurement.

Speaker Change: Our partnerships with Pinterest and Reddit are also growing, and we've launched global brand safety and suitability measurement across both platforms in multiple languages.

Speaker Change: Using DV's AI-powered Universal Content Intelligence, we integrate advanced image, audio, and text analysis to provide accurate media quality measurement and robust brand protection.

Mark S. Zagorski: These strategic expansions and technology advancements across Meta, YouTube, Pinterest, and Reddit highlight our commitment to grow and scale our social media offerings. And we are just at the start of our growth on social media. In 2023, D&E measured less than 5% of all U.S. social impressions, according to our analysis of the eMarketer data, highlighting the vast opportunity to expand our measurement footprint in a rapidly growing media environment that accounts for 60% of global digital ad spend X-Cert. Moreover, we're increasingly excited about the potential for social pre-screen activation applications in the social media.

Speaker Change: These strategic expansions and technology advancements across Meta, YouTube, Pinterest, and Reddit highlight our commitment to grow and scale our social media offerings, and we are just at the start of our growth in social measurement.

Mark Zagorski: In 2023, DV measured less than 5% of all US social impressions according to our analysis of the marketer data, highlighting the vast opportunity to expand our measurement footprint in a rapidly growing media environment that accounts for 60% of global digital ad spend ex-search. Moreover, we're increasingly excited about the potential for social prescreen activation applications in the social media sector. Although we are in the early stages of prescreen activation growth on social platforms, we believe this area could become a significant growth driver for DV, similar to how activation solutions like ABS have driven our growth in the open web.

Speaker Change: In 2023, DV measured less than 5% of all U.S. social impressions, according to our analysis of the eMarketer data, highlighting the vast opportunity to expand our measurement footprint in a rapidly growing media environment that accounts for 60% of global digital ad spend xSearch.

Speaker Change: Moreover, we're increasingly excited about the potential for social pre-screen activation applications in the social media sector.

Mark S. Zagorski: Although we are in the early stages of pre-screen activation growth on social platforms, we believe this area could become a significant growth driver for DV, similar to how activation solutions like ABS have driven our growth on the open web. A great indicator of the potential for pre-bid solutions on social is our pre-screened solution for YouTube. With close to 100 customers, including nearly 30 of our top 100 customers, this solution drove 30% year-over-year growth in social activation revenue in the second quarter. Currently, we're the only verification platform capable of closing the loop for advertisers on social media with aligned pre- and post-bid solutions. And our coverage is just beginning.

Speaker Change: Although we are in the early stages of pre-screen activation growth on social platforms, we believe this area could become a significant growth driver for DV, similar to how activation solutions like ABS have driven our growth in the open web.

Mark Zagorski: A great indicator of the potential for pre-bid solution social is our prescreen solution for YouTube, with close to 100 customers, including nearly 30 of our top 100 customers. This solution drove 30% year-over-year growth in social activation revenue in the second quarter. Currently, we're the only verification platform capable of closing the loop for advertisers on social media with aligned free and post-bid solutions. And our coverage is just beginning. We are actively developing ABS-like pre-bid applications across three additional major social platforms where we see an activation opportunity potentially as large as what we've achieved in the open web.

Speaker Change: A great indicator of the potential for pre-bid solutions to social is our pre-screened solution for YouTube.

Speaker Change: With close to 100 customers, including nearly 30 of our top 100 customers, this solution drove 30% year-over-year growth in social activation revenue in the second quarter.

Speaker Change: Currently, we're the only verification platform capable of closing the loop for advertisers on social media with aligned pre- and post-bid solutions.

Mark S. Zagorski: We are actively developing ABS-like pre-bid applications across three additional major social platforms, where we see an activation opportunity potentially as large as what we've achieved in the open. Shifting to CTV, we grew our second quarter CTV measurement impression volumes by 55% year-over-year. We partnered with a leading streaming network to launch a groundbreaking program-level measurement solution for advertisers on OTT devices, including CTVs. Our initial test of this solution with Cox Automotive via OMG showcased granular program-level insights, for the first time providing invaluable transparency in the often opaque world of CTV advertising.

Speaker Change: And our coverage is just beginning. We are actively developing ABS-like pre-bid applications across three additional major social platforms, where we see an activation opportunity potentially as large as what we've achieved in the open web.

Mark Zagorski: Shifting the CTV, review our second quarter CTV measurement impression volumes by 55% year-to-year. We partnered with the leading streaming network to launch the groundbreaking program-level measurement solution for advertisers on OTT devices, including CTV. Our initial test of this solution with Cox Automotive via OMG showcased granular program-level insights for the first time, providing invaluable transparency in the often opaque world of CTV advertising. We plan to expand this offering to more advertisers and streaming publishers in the coming one month. Similar to our status in social, we are also in the early stages of our growth in CTV verification and have much for them to expand.

Speaker Change: Shifting to CTV, we grew our second quarter CTV measurement impression volumes by 55% year-over-year. We partnered with a leading streaming network to launch a groundbreaking program-level measurement solution for advertisers on OTT devices, including CTV.

Speaker Change: Our initial test of this solution with Cox Automotive via OMG showcased granular program-level insights, for the first time providing invaluable transparency in the often opaque world of CTV advertising.

Mark S. Zagorski: We plan to expand this offering to more advertisers and streaming publishers in the coming. Similar to our status in social, we are also in the early stages of our growth in CTD verification and have much room to expand. In 2023, TV advertiser engagements measured less than 20% of all U.S. CTV, based on our analysis of eMarketer data, revealing another significant opportunity to expand our measurement volumes and build our CTV market position.

Speaker Change: We plan to expand this offering to more advertisers and streaming publishers in the coming months.

Speaker Change: Similar to our status in social, we are also in the early stages of our growth in CTV verification and have much room to expand.

Mark Zagorski: In 2023, D.V. advertiser engagements measured less than 20% of all U.S. CTV impressions based on our analysis of E-Marketer data, revealing another significant opportunity to expand our measurement volumes and build our CTV market position. In addition to CTV verification, we are also now in market with a pioneering CTV attention measurement solution in partnership with TVision. Advertisers can drive ROI by measuring attention in CTV to better understand ad placement and effectiveness. According to the IAB, only 30% of advertisers have full transparency of CTV ad placements, and only 34% of CTV ads receive more than two seconds of active eyes-on-screen attention.

Speaker Change: In 2023, DV Advertiser engagements measured less than 20% of all U.S. CTV impressions based on our analysis of eMarketer data, revealing another significant opportunity to expand our measurement volumes and build our CTV market position.

Mark S. Zagorski: In addition to CTV verification, we're also now in market with a pioneering CTV attention measurement solution in partnership with TVision. Advertisers can drive ROI by measuring attention in CTV to better understand ad placement and effectiveness. According to the IAB, only 30% of advertisers have full transparency of CTV ad placements, and only 34% of CTV ads receive more than two seconds of active eyes-on-screen attention. TV's authentic attention solution, powered by impression-level DV data and TV viewer engagement data, enhances visibility into ad performance across CTV publishers and apps, enabling strategic optimizations and preventing wasted ads.

Speaker Change: In addition to CTV verification, we are also now in market with a pioneering CTV attention measurement solution in partnership with T-Vision.

Speaker Change: Advertisers can drive ROI by measuring attention in CTV to better understand ad placement and effectiveness.

Speaker Change: According to the IAB, only 30% of advertisers have full transparency of CTV ad placements, and only 34% of CTV ads receive more than 2 seconds of active eyes-on-screen attention.

Mark Zagorski: D.V. Is authentic attention solution powered by impression-level D.V. data, and T.V. viewer engagement data enhances visibility into ad performance across CTV publishers and apps, enabling strategic optimizations and preventing wasted ad spending. Reflecting the growing importance of attention metrics, D.V. authentic attention increase measurement impression volumes by approximately 300% year-to-year in the second quarter, with over 200 advertisers using D.V. authentic attention this year. Although the scale of our attention business remains relatively small, its impact on our ability to differentiate our platform on route to closing and expanding enterprise deals has been significant. With the Oracle Field expansion of RFP opportunities currently in play, having differentiators like authentic attention will plan an important part in driving a highly favorable win ratio.

Speaker Change: TV's authentic attention solution, powered by impression-level DV data and TV viewer engagement data, enhances visibility into ad performance across CTV publishers and apps, enabling strategic optimizations and preventing wasted ad spending.

Mark S. Zagorski: Reflecting the growing importance of attention metrics, DV Authentic Attention increased measurement impression volumes by approximately 300% year-over-year in the second quarter, with over 200 advertisers using DV Authentic Attention this year. Although the scale of our attention business remains relatively small, its impact on our ability to differentiate our platform en route to closing and expanding enterprise deals has been significant. With the Oracle-fueled expansion of RFP opportunities currently in play, having differentiators like authentic attention will play an important part in driving a highly favorable win rate.

Speaker Change: Reflecting the growing importance of attention metrics, DV Authentic Attention increased measurement impression volumes by approximately 300% year-over-year in the second quarter, with over 200 advertisers using DV Authentic Attention this year.

Speaker Change: Although the scale of our attention business remains relatively small, its impact on our ability to differentiate our platform en route to closing and expanding enterprise deals has been significant.

Speaker Change: With the Oracle-fueled expansion of RFP opportunities currently in play, having differentiators like Authentic Attention will play an important part in driving a highly favorable win ratio.

Mark Zagorski: Moving to retail media networks, our retail media supply side solutions delivered over 50% revenue growth, significantly contributing to our overall supply side growth rate of 26% year-to-year. We provide comprehensive solutions to retail media platforms, ensuring platform-wide fraud protection and brand safety standards. Additionally, we empower platforms to make real-time and long-term viewability optimizations across all inventory with insights based on our MRC-accredited measurement. Furthermore, we enable platforms to leverage D.V.'s contextual classifications to curate premium contextual segments of inventory. Led by our partnerships with leading retail media platforms, such as Amazon and Walmart, our global reach and connectivity and retail media continue to expand.

Mark S. Zagorski: Moving to retail media networks, our retail media supply-side solutions delivered over 50% revenue growth, significantly contributing to our overall supply-side growth rate of 26% year over year. We provide comprehensive solutions to retail media platforms, ensuring platform-wide fraud protection and brand safety standards. Additionally, we empower platforms to make real-time and long-term viewability optimizations across all inventory with insights based on our MRC-accredited measures. Furthermore, we enable platforms to leverage DB's contextual classifications to curate premium contextual segments of information.

Speaker Change: Moving to retail media networks, our retail media supply-side solutions delivered over 50% revenue growth, significantly contributing to our overall supply-side growth rate of 26% year-over-year.

Speaker Change: We provide comprehensive solutions to retail media platforms.

Speaker Change: ensuring platform-wide fraud protection and brand safety standards.

Speaker Change: Additionally, we empower platforms to make real-time and long-term viewability optimizations across all inventory, with insights based on our MRC-accredited measurement.

Speaker Change: Furthermore, we enable platforms to leverage DB's contextual classifications to curate premium contextual segments of inventory.

Mark S. Zagorski: Led by our partnerships with leading retail media platforms, such as Amazon and Walmart, our global reach and connectivity and retail media continue to expand. DME's measurement tags are now accepted on over 100 key global retail media networks and sites, including 15 of the top retail media platforms and 88 major retailers. More than one third of these partners support DV measurement on their owned and operated as well as offsite inventory.

Speaker Change: Led by our partnerships with leading retail media platforms such as Amazon and Walmart, our global reach and connectivity in retail media continue to expand.

Mark Zagorski: D.V.'s measurement tags are now accepted over 100 key global retail media networks and sites, including 15 of the top retail media platforms and 88 major retailers. More than one third of these partners support D.V. measurement on their own and operated as well as off-site inventory.

Speaker Change: D&E's measurement tags are now accepted on over 100 key global retail media networks and sites, including 15 of the top retail media platforms and 88 major retailers.

Speaker Change: More than one-third of these partners support DV measurement on their owned and operated, as well as off-site inventory.

Mark Zagorski: Within the supply side, we also sign D.V.'s motion in online video sharing platform, as well as several high-profile publisher customers, such as Zip Davis, Complex Network, and the independent- and Amanda.

Mark S. Zagorski: On the supply side, we also signed Dailymotion, an online video sharing platform, as well as several high-profile publisher customers, such as Zip Davis, Complex Network, and The Independent. Finally, turning to our open web activation products, several factors give us confidence in a stronger growth trajectory. First, our measurement momentum and historical subsequent activation upsell motion indicate renewed strength in our activation business. Second, we expect ABS's growth to improve in the second half as new customers ramp up on activation and ABS. From a long-term perspective, while over 90 of our top 100 customers use ABS, close to 40% of their business lines have yet to adopt it.

Speaker Change: Within the supply side, we also sign Dailymotion, an online video sharing platform, as well as several high-profile publisher customers, such as Zip Davis, Complex Network, and The Independent.

Mark Zagorski: Finally, turning to our open web activation products, several factors give us confidence in a stronger growth trajectory. First, our measurement momentum and the historical subsequent activation upsell motion indicates renewed strength in our activation business in the future. Second, we expect ABS's growth to improve in the second half as new customers ramp up on activation and ABS. From a long-term perspective, while over 90 of our top 100 customers use ABS, close to 40% of their business lines have yet to adopt it, and there is even greater potential for growth among our top 500 customers. Third, given the strong interest from advertisers and agencies, we anticipate Saturday's AI will exceed our expectations in the second half of the year and beyond.

Speaker Change: Finally, turning to our open web activation products, several factors give us confidence in a stronger growth trajectory.

Speaker Change: First, our measurement momentum and historical subsequent activation upsell motion indicates renewed strength in our activation business in the future.

Speaker Change: Second, we expect ABS's growth to improve in the second half as new customers ramp up on activation and ABS.

Speaker Change: From a long-term perspective, while over 90 of our top 100 customers use ABS, close to 40% of their business lines have yet to adopt it, and there is even greater potential for growth among our top 500 customers.

Speaker Change: Third, given the strong interest from advertisers and agencies, we anticipate Sybiz AI will exceed our expectations in the second half of the year and beyond.

Mark S. Zagorski: And there is even greater potential for growth among our top 500. Third, given the strong interest from advertisers and agencies, we anticipate Cybiz AI will exceed our expectations in the second half of the year and beyond. Expansion of our activation and measurement solutions across the open web remains a key part of our Verify Everywhere strategy as advertisers continue to lean into the efficient performance opportunities that the open web entails, particularly in light of the recent change in position from Google regarding cookies.

Mark Zagorski: Expansion of our activation and measurement solutions across the open web remains a key part of our Verify Everywhere strategy. As advertisers continue to lean into the efficient performance opportunities that the open web entails, particularly in light of the recent change in position from Google regarding cookies. We believe that Google's announcements to step back from blocking third-party cookies by default on Chrome will instill confidence and buyers to spread across programmatic channels and create additional growth opportunities for our advertiser, platform, and publisher customers.

Speaker Change: Expansion of our activation and measurement solutions across the open web remains a key part of our Verify Everywhere strategy, as advertisers continue to lean into the efficient performance opportunities that the open web entails, particularly in light of the recent change in position from Google regarding cookies.

Mark S. Zagorski: We believe that Google's announcement to step back from blocking third-party cookies by default on Chrome will instill confidence in buyers to spread across programmatic channels and create additional growth opportunities for our advertiser, platform, and publisher customers.

Speaker Change: We believe that Google's announcement to step back from blocking third-party cookies by default on Chrome will instill confidence in buyers to spread across programmatic channels and create additional growth opportunities for our advertiser, platform, and publisher customers.

Mark Zagorski: We also see the open web as a beneficiary of the expected increase in political spending in the latter half of the year, and we plan to support that via a recently launched authentic news initiative, which is an investment in market education and product development that will create a more flexible, transparent way for advertisers to support open web news content while still protecting brand equity.

Mark S. Zagorski: We also see the open web as a beneficiary of the expected increase in political spending in the latter half of the year, and we plan to support that via our recently launched Authentic News Initiative, which is an investment in market education and product development that will create a more flexible, transparent way for advertisers to support open web news content while still protecting brand equity. In conclusion, the second quarter was an important positive inflection point for Doubleverify, marked by accelerated revenue growth and significant expansion milestones.

Speaker Change: We also see the open web as a beneficiary of the expected increase in political spending in the latter half of the year, and we plan to support that via our recently launched Authentic News Initiative,

Speaker Change: which is an investment in market education and product development that will create a more flexible, transparent way for advertisers to support open web news content while still protecting brand equity.

Mark Zagorski: In conclusion, the second quarter was an important positive inflection point for DoubleVerify marked by accelerated revenue growth and significant expansion milestones. We want numerous RFPs, strengthen our enterprise pipeline, and continue to innovate across social, CTV, and retail media networks. With vast opportunities and social, CTV measurement, and anticipated improvement in activation and ABS, and strong momentum for cyber AI, we are confident in our near and long-term growth prospects.

Speaker Change: In conclusion, the second quarter was an important positive inflection point for Doubleverify, marked by accelerated revenue growth and significant expansion milestones.

Mark S. Zagorski: We want numerous RFPs, strengthen our enterprise pipeline, and continue to innovate across social, CTV, and retail media networks. With vast opportunities in social and CTV measurement, anticipated improvement in activation in ABS, and strong momentum for cyber AI, we are confident in our near and long-term growth processes. We remain committed to delivering unparalleled value and driving sustained growth for all of our stakeholders and look forward to updating you on our ongoing progress and achievements.

Speaker Change: We want numerous RFPs, strengthen our enterprise pipeline, and continue to innovate across social, CTV, and retail media networks.

Speaker Change: With vast opportunities in social and CTV measurement, anticipated improvement in activation in ABS, and strong momentum for cyber to AI, we are confident in our near and long-term growth prospects.

Mark Zagorski: We remain committed to delivering unparalleled value and driving sustained growth for all of our stakeholders, and look forward to updating you on our ongoing progress and achievements.

Speaker Change: We remain committed to delivering unparalleled value and driving sustained growth for all of our stakeholders and look forward to updating you on our ongoing progress and achievements.

Nicola Allais: With that, let me turn the call over to Nikola. Thanks, Mark, and good afternoon everyone. Our second quarter results achieved the high end of our revenue guidance and exceeded our adjusted EBITI expectations, driven by double digit growth across all three of our revenue lines: activation, measurement, and supply size. Total revenue grew 17% in the second quarter to $156 million. Advertisers' revenue increased 16% in the second quarter, driven by higher volumes. Media transactions measured, or NPMs, increased 22% Eurorehear, while measure transaction fees or NTS decline 5% Eurorehear due to products and geographic needs. As expected, premium price activation represented a smaller portion of total revenue compared to the prior year period.

Nicola T. Allais: Thanks, Mark, and good afternoon, everyone. Our second quarter results achieved the high end of our revenue guidance and exceeded our adjusted EBITDA expectations driven by double-digit growth across all three of our revenue lines, activation, measurement, and supply. Total revenue grew 17% in the second quarter to $156 million. Advertiser revenue increased 16% in the second quarter, driven by higher volumes.

Speaker Change: With that, let me turn the call over to Nicola.

Nicola: Thanks, Mark, and good afternoon, everyone. Our second quarter results achieved the high end of our revenue guidance and exceeded our adjusted EBITDA expectations, driven by double-digit growth across all three of our revenue lines, activation, measurement, and supply side.

Speaker Change: Total revenue grew 17% in the second quarter to $156 million.

Speaker Change: Advertiser revenue increased 16% in the second quarter, driven by higher volumes. Media Transactions Measured, or MTM, increased 22% year-over-year, while Measured Transaction Fees, or MTS, declined 5% year-over-year due to product and geographic mix.

Nicola T. Allais: Media Transactions Measured, or MTMs, increased 22% year-over-year, while Measured Transaction Fees, or MTS, declined 5% year-over-year due to product and geographic nature. As expected, premium price activation represented a smaller portion of total revenue compared to the prior year period. More significantly, as Mark mentioned, the second quarter of 2024 marked the first time DV impressions outside North America represented just over half of DV's total measured impressions, with measurement impressions within North America growing over 20% and measurement impressions outside North America growing over 50%.

Speaker Change: As expected, premium price activation represented a smaller portion of total revenue compared to the prior year period.

Nicola Allais: More significantly, as Mark mentioned, the second quarter of 2024 marked the first-time EBITI impressions outside North America represented just a half of DB's total measured impressions. With measurement impressions within North America growing over 20%, and measurement impressions outside North America growing over 50%.

Mark S. Zagorski: More significantly, as Mark mentioned, the second quarter of 2024 marked the first time DV impressions outside North America represented just over half of DV's total measured impressions.

Mark S. Zagorski: With measurement impressions within North America growing over 20% and measurement impressions outside of North America growing over 50%.

Nicola Allais: and Percent. While we expect NTS to remain stable on a per-product basis, we anticipate overall NTS to reflect the impact of a greater shift towards measurement impression volumes. Within measurements, we foresee a continued increase in international impressions, driven by DB's global climate expansion and international market share gains. Our profitability and margins remain robust, and we continue to be strategically focused on volume-led revenue and growth. DB has significant potential to continue to expand across international markets and particularly on social media platforms. By initially engaging customers through measurement, we can upsell our premium price activation solutions. Measurement data feeds into our activation solutions, helping advertisers optimize their media spend effectively.

Nicola T. Allais: While we expect MTFs to remain stable on a per-product basis, we anticipate overall MTFs to reflect the impact of a greater shift towards measurement impression volumes. Within measurement, we foresee a continued increase in international impressions driven by DB's global client expansion and international market share gains. Our profitability and margins remain robust, and we continue to be strategically focused on volume-led revenue growth. DV has significant potential to continue to expand across international markets and particularly on social media platforms.

Speaker Change: While we expect MTFs to remain stable on a per-product basis, we anticipate overall MTFs to reflect the impact of a greater shift towards measurement and impression volumes.

Didi: Within measurement, we foresee a continued increase in international impressions driven by Didi's global client expansion and international market share gains.

Didi: Our profitability and margins remain robust, and we continue to be strategically focused on volume-led revenue growth.

Didi: DB has significant potential to continue to expand across international markets, and particularly on social media platforms.

Nicola T. Allais: By initially engaging customers through measurement, we can upsell our premium price activation solution. Measurement data feeds into our activation solutions, helping advertisers optimize their media spend effectively. We aim to capitalize on this opportunity in social media, where pre-screened NTFs are nearly triple the price of measurement NTFs. Activation revenue increased by 12% compared to the prior year. All four Activation Solution Groupings, ABS, Co-Programmatic, Social Activation, and CIBIT, contributed to the second quarter.

Didi: By initially engaging customers through measurement, we can upsell our premium price activation solutions.

Didi: Measurement data feeds into our activation solutions, helping advertisers optimize their media spend effectively.

Nicola Allais: We aim to capitalize on this opportunity in social media where pre-screen NTS are nearly triple the price of measurement NTS. Activation revenue increased by 12% compared to the prior year; all four activation solution groupings, ABS, core programmatic, social activation, and SIBIT contributed to the second quarter growth. ABS, which accounted for 53% of activation revenue this quarter, was 7% year over year. Similar to the first quarter, the group of slow starting retail and CPG advertisers, who are a heavy user of ABS, delivered an uneven spend pattern that continues to impact ABS growth in the second quarter.

Didi: We aim to capitalize on this opportunity in social media, where pre-screen NTFs are nearly triple the price of measurement NTFs.

Didi: Activation revenue increased by 12% compared to the prior year. All four Activation Solution Groupings, ABS, Corporate Automatic, Social Activation, and CYBITS contributed to the second quarter growth.

Nicola T. Allais: ABS, which accounted for 53% of activation revenue this quarter, grew 7% year-over-year. However, similar to the first quarter, the group of slow-starting retail and CPG advertisers, who are heavy users of ADS, delivered an uneven spend pattern that continued to impact ADS growth in the second quarter.

Didi: ABS, which accounted for 53% of activation revenue this quarter, grew 7% year-over-year.

Didi: Similar to the first quarter, the group of slow-starting retail and CPG advertisers, who are heavy users of ABS, delivered an uneven spend pattern that continued to impact ABS growth in the second quarter.

Nicola Allais: We achieved solid ABS of supplementing, with 65% of our top 500 customers activating the product in the second quarter, up from nearly 60% a year ago. Additionally, new advertisers, such as Haley on TestD, have activated ABS and are expected to expand their use of the product. SIBIT continued to perform in line with plan in the second quarter. Based on customer usage and adoption patterns meant to be an accelerated growth trajectory of the second half of the year. And lastly, our pre-screen social activation solutions achieved over about 30% year-over-year growth rate in the second quarter. Turns your measurements, revenue increased 22% year over year, primarily driven by existing customer expansion on social.

Nicola T. Allais: We achieved solid ABS upsell momentum with 65% of our top 500 customers activating the product in the second quarter, up from nearly 60% a year ago. Additionally, new advertisers such as Halion and Pepsi have activated ABS and are expected to expand their use of the product. CYBITS continued to perform in line with plan in the second quarter.

Didi: We achieved solid ABS upsell momentum, with 65% of our top 500 customers activating the product in the second quarter, up from nearly 60% a year ago.

Didi: Additionally, new advertisers such as Halion and Pepsi have activated ABS and are expected to expand their use of the product.

Didi: CIBITS continue to perform in line with plan in the second quarter.

Nicola T. Allais: Based on customer usage and adoption patterns, we anticipate an accelerated growth trajectory for silos in the second half of the year. And lastly, our pre-screened social activation solutions achieved a robust 30% year-over-year growth rate in the second quarter. Turning to measurement, revenue increased 22% year-over-year, primarily driven by existing customer expansion on social media. Social revenue increased 44% year-over-year and represented 49% of measurement revenue in the

Didi: Based on customer usage and adoption patterns, we anticipate an accelerated growth trajectory for cyber within the second half of the year.

Didi: And lastly, our pre-screened social activation solutions achieved a robust 30% year-over-year growth rate in the second quarter.

Didi: Turn to measurements. Revenue increased 22% year-over-year, primarily driven by existing customer expansion on social.

Nicola Allais: Social revenue increased 44% year over year, and we presented 49% of measurement revenue in the quarter. Growth in social measurement continued to be led by Meta and YouTube, which combined, the count is approximately 80% of our second quarter social measurement revenue, with Ticked Off being a distance third. Global expansion of new deals and growth in social media measurement drove international measurement revenue, which increased 29% compared to the prior year and represented 29% of total measurement revenue, up from 28% in the second quarter of 2023. Finally, supply side revenue grew 26% in the second quarter, driven primarily by greater usage of VB solution on retail media platforms such as Amazon.

Didi: Social revenue increased 44% year-over-year and represented 49% of measurement revenue in the quarter.

Nicola T. Allais: Growth in social measurement continued to be led by Meta and YouTube, which combined accounted for approximately 80% of our second quarter social measurement revenue, with TikTok being a distant third. Global expansion of New Deals and growth in social media measurement drove international measurement revenue, which increased 29% compared to the prior year and represented 29% of total measurement revenue, up from 28% in the second quarter of 2023. Finally, supply-side revenue grew 26% in the second quarter, driven primarily by greater usage of VB's solutions on retail media platforms such as Amazon.

Didi: Growth in social measurement continued to be led by Meta and YouTube, which combined accounted for approximately 80% of our second quarter social measurement revenue, with TikTok being a distant third.

Didi: Global expansion of New Deals and growth in social media measurement drove international measurement revenue, which increased 29% compared to the prior year, and represented 29% of total measurement revenue, up from 28% in the second quarter of 2023.

Didi: Finally, supply-side revenue grew 26% in the second quarter, driven primarily by greater usage of DB solutions on retail media platforms such as Amazon.

Nicola Allais: Chifting to expenses caused the revenue decreased by less than 1% year over year in the second quarter due to savings resulting from the company's migration to cloud services and to efficiencies gained in video classification.

Nicola T. Allais: Shifting to expenses, cost of revenue decreased by less than 1% year over year in the second quarter due to savings resulting from the company's migration to cloud services and to efficiencies gained in the year classification. These cost reductions were partially offset by the growth in activation revenue, which led to increased partner costs from revenue sharing arrangements. Revenue less cost of sales reached 83% in the second quarter, exceeding our expectation of 80 to 82%.

Didi: Shifting to expenses, costs of revenue decreased by less than 1% year-over-year in the second quarter due to savings resulting from the company's migration to cloud services and to efficiencies gained in V-year classification costs.

Nicola Allais: and Cost. These cost reductions were partially set by the growth and activation revenue, which led to increased partner cost from revenue sharing arrangements. Revenue less cost of sales reached 83% in the second quarter, exceeding our expectation of 80 to 82%. For the second half of the year, we anticipate maintaining revenue less cost of sales as the higher end of the 80 to 82% range. Research and development expenses increased due to continued investment in AI and machine learning engineering resources. As mentioned last quarter, we also invested in additional sales and marketing resources, including technical programmatic analysts, to promote and sell our latest product launches, such as Silence.

Didi: These cost reductions were partially offset by the growth in activation revenue, which led to increased partner costs from revenue-sharing arrangements.

Didi: Revenue less cost of sales reached 83% in the second quarter, exceeding our expectation of 80% to 82%.

Nicola T. Allais: For the second half of the year, we anticipate maintaining revenue-led cost of sale at the higher end of the 80 to 82%. Research and development expenses increased due to continued investment in AI and machine learning engineering resources. As mentioned last quarter, we also invested in additional sales and marketing resources, including technical programmatic analysts, to promote and sell our latest product launches, such as Cypher. These investments will contribute to sales and marketing expense growth throughout the year. General and administrative expenses remain relatively stable year over year as our growing scale helps leverage this operating expense line.

Didi: For the second half of the year, we anticipate maintaining revenue-led cost of sale at the higher end of the 80 to 82% range.

Didi: Research and development expenses increased due to continued investment in AI and machine learning engineering resources.

Didi: As mentioned last quarter, we also invested in additional sales and marketing resources, including technical programmatic analysts, to promote and sell our latest product launches such as Silence.

Nicola Allais: These investments will contribute to sales and marketing expense growth throughout the year. General and administrative expenses remain relatively stable year-to-year, as our growing scale helps leverage this operating expense line effectively. Adjusted with about 47 million dollars in the second quarter, which is under 30% margin, it was ahead of expectations due to both higher revenues and lower cost of revenue. We delivered net cash and operational approximately $36 million, up from $11 million in Q223, primarily due to strong cash collections. Capital expenditures were approximately $7 million compared to approximately $3.5 million in Q223. We ended up ordering approximately $256 million of cash on hand, including investments in T-Building maturity. Over three months, total cash and short-term investments were $339 million.

Didi: These investments will contribute to sales and marketing expense growth throughout the year.

Didi: General and administrative expenses remain relatively stable year-over-year as our growing scale helps leverage this operating expense line effectively.

Nicola T. Allais: Adjusted EBITDA of $47 million in the second quarter represents a 30% margin and was ahead of expectations due to both higher revenues and lower costs. We delivered net cash from operations of approximately $36 million, up from $11 million in Q2-23. primarily due to strong cash flow. Capital expenditures were approximately $7 million compared to approximately $3.5 million in Q2 2020. We ended up with approximately $256 million of cash on hand, including investments in key bills and maturities over three months. Total cash and short-term investments were $339 million. In the second quarter, we repurchased 1.4 million shares of common stock for $25 million.

Speaker Change: Adjusted EBITDA of $47 million in the second quarter represents a 30% margin. It was ahead of expectations due to both higher revenue and lower cost of revenue.

Speaker Change: We deliver net cash from operations of approximately $36 million up from $11 million in Q2-23, primarily due to strong cash collections.

Speaker Change: Capital expenditures were approximately $7 million compared to approximately $3.5 million in Q2 2023.

Speaker Change: We ended up with approximately $256 million of cash on hand, including investments in key bills and maturities over three months. Total cash and short-term investments were $339 million.

Nicola Allais: In the second quarter, we repurchased $1.4 million in shares of common stock for $25 million. Following the quarter's end, we repurchased an additional $1.3 million shares for an additional $25 million. As of July 30, we had $100 million authorized and available for further re-emergences. Our approach to share repurchases will remain balanced, taking into account market conditions and other capital priorities, including investing in our core business for sustained long-term growth and an acquisition that can accelerate a product roadmap and our market expansion.

Speaker Change: In the second quarter, we repurchased 1.4 million shares of common stock for $25 million.

Nicola T. Allais: Following the quarter's end, we repurchased an additional 1.3 million shares for an additional $25 million. As of July 30th, we had $100 million authorized and available for further recourse. Our approach to share repurchases will remain balanced, taking into account marketing conditions and other capital priorities, including investing in our core business for sustained long-term growth and an acquisition that can accelerate our product roadmap and our marketing. Turning to guidance, we're raising the midpoints of our full year guidance based on our second quarter performance and remain confident in our anticipated growth re-acceleration in the second half of the year.

Speaker Change: Following the Corps' end, we repurchased an additional 1.3 million shares for an additional $25 million.

Speaker Change: As of July 30th, we had $100 million authorized and available for further repurchases.

Speaker Change: Our approach to share repurchases will remain balanced, taking into account market conditions and other capital priorities, including investing in our core business for sustained long-term growth and an acquisition that can accelerate our product roadmap and our market expansion.

Nicola Allais: Turning to guides, we're raising the midpoints of our full-year guidance based on our second quarter performance and remaining confident in our anticipated growth re-exceleration in the second half of the year. We expect third quarter revenue to range between $167 and $171 million, which would present a 17% year-over-year growth at the midpoint. We expect third quarter adjusted in the size to range between $49 and $53 million, which would present a 30% margin at the midpoint. For the third quarter, we expect stock-based compensation to range between $23 and $26 million, and weighted average dynamic shares outstanding to range between 172 and 175 million shares.

Speaker Change: Turning to guidance, we are raising the midpoints of our full year guidance based on our second quarter performance and remain confident in our anticipated growth re-acceleration in the second half of the year.

Nicola T. Allais: We expect third-quarter revenue to range between $167 and $171 million, which represents a 17% year-over-year growth at the mid-year. We expect third-quarter adjusted EBITDA to range between $49 and $53 million, which represents a 30% margin of admission. For the third quarter, we expect stock-based compensation to range between $23 and $26 million, and weighted average W-H shares outstanding to range between $172 and $175 million.

Speaker Change: We expect third quarter revenue to range between $167 and $171 million, which represents a 17% year-over-year growth at the midpoint.

Speaker Change: We expect third quarter adjusted EBITDA to range between $49 and $53 million, which represents a 30% margin at the midpoint.

Speaker Change: For the third quarter, we expect stock-based compensation to range between $23 and $26 million, and weighted average diluted shares outstanding to range between 172 and 175 million shares.

Nicola Allais: For full-year 2020-24 guidance, we expect revenue to range between $667 and $675 million, which would present a 17% year-over-year growth at the midpoint, and we expect an adjusted in the size to range between $206 and $214 million, which would present a 31% margin at the midpoint. We expect the second half of the year to contribute approximately 56% of full year revenue, broadly in line with last year's second half performance. Our outlook for the second half reflects an acceleration to 18% revenue growth, up from 60% achieved in the first half. This is driven by multiple growth factors, including sustained social revenue growth, accelerating momentum inside it, successful conversion of our high confidence pipeline into wins, and continued growth in supply side, particularly within retail media platforms. We have not changed our outlook or expected impact from the quarter of six large retail and CPG advertisers that we previously mentioned as having uneven spend patterns in this year.

Nicola T. Allais: For full-year 2024 guidance, we expect revenue to range between $667 and $675 million, which represents a 17% year-over-year growth at the midpoint, and we expect adjusted EBITDA to range between $206 and $214 million, which represents a 31% margin at the midpoint. We expect the second half of the year to contribute approximately 56% of full-year revenue, broadly in line with last year's second half performance. Our outlook for the second half reflects an acceleration to 18% revenue growth, up from 16% achieved in the first half.

Speaker Change: For full-year 2024 guidance, we expect revenue to range between $667 and $675 million, which represents a 17% year-over-year growth at the midpoint

Speaker Change: And we expect the adjusted EBITDA to range between $206 and $214 million, which represents a 31% margin at the midpoint.

Speaker Change: We expect the second half of the year to contribute approximately 56% of full year revenue, broadly in line with last year's second half performance.

Speaker Change: Our outlook for the second half reflects an acceleration to 18% revenue growth, up from 16% achieved in the first half.

Nicola T. Allais: This is driven by multiple growth factors, including sustained social revenue growth, accelerating momentum in CIBIT, successful conversion of our high-confidence pipeline into wins, and continued growth in the supply side, particularly within retail media platforms. We have not changed our outlook or expected impact from the departure of six large retail and CPG advertisers that we previously mentioned as having uneven spend patterns this year. As noted last quarter, the reduced spending from these advertisers is due to specific issues within each company.

Speaker Change: This is driven by multiple growth factors, including sustained social revenue growth, accelerating momentum in CIBIT, successful conversion of our high-competence pipeline into WINS, and continued growth in supply side, particularly within retail media platforms.

Speaker Change: We have not changed our outlook or expected impact from the court of six large retail and CPG advertisers that we previously mentioned as having uneven spend patterns in this year.

Nicola Allais: As noted in last quarter, the reduced spending from these advertisers is due to specific issues within each company. Other retail and CPG advertisers are performing at or above expectations. Finally, our second half guidance does not factor in meaningful and incremental revenue from increased adoption of our measurement solution on Meta, nor does it assume increased contribution from former most advertising platform customers to account for the time required to onboard and run. We expect these two opportunities to be contributed in 2025 and beyond.

Speaker Change: As noted last quarter, the reduced spending from these advertisers is due to specific issues within each company.

Speaker Change: Other retail and CPG advertisers are performing at or above expectations.

Speaker Change: Finally, our second half guidance does not factor in meaningful incremental revenue from increased adoption of our measurement solution on Meta, nor does it assume increased contribution from former remote advertiser and platform customers to account for the time required to onboard and RAM.

Speaker Change: We expect these two opportunities to be contributors in 2025 and beyond.

Nicola Allais: In conclusion, we achieve the strong second quarter with double-digit revenue growth across all three revenue lines, robust profits, and substantial cash flow. We ended a quarter with zero debt and 339 million in cash on hand in short term investments, and are focused on executing to drive strong growth momentum for the second half of the year.

Nicola T. Allais: Other retail and TPG advertisers are performing at or above expectations. Finally, our second half guidance does not factor in meaningful incremental revenue from increased adoption of our measurement solution on Meta, nor does it assume increased contribution from former most advertiser and platform customers to account for the time required to onboard and ramp. We expect these two opportunities to be contributed in 2025 and beyond. In conclusion, we achieved a strong second quarter with double-digit revenue growth across all three revenue lines, robust profits, and substantial cash. We ended the quarter with zero debt and $339 million in cash on hand in short-term investments, and our focus on executing to drive strong growth momentum for the second half of the year. And with that, we will open the line for questions. Operator, please go ahead.

Speaker Change: In conclusion, we achieved a strong second quarter with double-digit revenue growth across all three revenue lines, robust profits, and substantial cash flow.

Speaker Change: We ended the quarter with zero debt and $339 million in cash on hand in short-term investments, and our focus on executing to drive strong growth momentum for the second half of the year.

Operator: And with that, we will open the line for questions. Operator, please go ahead. Thank you.

Speaker Change: And with that, we will open the line for questions.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. The confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question.

Speaker Change: Operator, please go ahead.

Operator: We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. The confirmation tone will indicate your line is in the question queue. May press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your hands up before pressing the star keys. One moment, please. Will be pulled for your questions.

Speaker Change: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad.

Speaker Change: The confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue.

Operator: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start button. One moment, please, while we poll for your questions. Our first questions come from the line of Youssef Squali with Truist Securities. Please proceed with your questions. Great. Thank you, guys. And congrats on a nice print.

Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for your questions.

Youssef Squali: Our first questions come from the line of use of squally with truest securities. Please proceed with your questions. Great. Thank you, guys, and you guys on a nice print. Two questions, if I may. With you touched on this a little bit, but we'd note every day in the market, how much of their business do you think is still up for grabs? How many of the new logos you added came from them? I only saw one that I recognized in Heiser Bush, but maybe there're more. And then can you talk about the level of adoption of brand safety and suitability within the Meta news feed?

Youssef Houssaini Squali: Two questions, if I may. You touched on this a little bit, but with Moat's exit from the market, how much of their business do you think is still up for grabs? How many of the new logos you added came from them? I only saw one that I recognized in Heiser Bush, but maybe there are more.

Speaker Change: Our first questions come from the line of Youssef Squali with Truist Securities. Please proceed with your questions.

Youssef Houssaini Squali: And then can you talk about the level of adoption of brand safety and suitability within the Meta News feed? I think last time you talked about having about 40 customers testing it. And do you just have any estimates for the level of contribution for the second half? Nicola, thank you.

Youssef Houssaini Squali: Thank you guys and congrats on a nice print. Two questions if I may. You touched on this a little bit, but with Moat exiting the market, how much of their business do you think is still up for grabs?

Speaker Change: How many of the new logos you added came from them? I only saw one that I recognized in Heiser Bush, but maybe there are more.

Speaker Change: And then, can you talk about the level of adoption of brand safety and suitability within the Meta News Feed? I think last time you talked about having about 40 customers testing it.

Youssef Squali: I think last time you talked about having about 40 customers testing it. And you just have any estimates for the level of contribution for the second half.

Speaker Change: And do you just have any estimates for the level of contribution for the second half, Nicola? Thank you.

Nicola Allais: Nikola, thank you.

Mark S. Zagorski: Thanks for the questions, Youssef. So, let me take the first part of this. So with regard to the Moat kind of clients, we've already, you know, earlier this year, I made some pretty good traction against many of their customers, including folks like Pepsi, Ulta, AB, InBev, etc. But there's still a good number of customers in play. Some of them, you know, some pretty big brands and a decent amount of revenue.

Nicola Allais: Thanks for the questions, you said.

Mark Zagorski: So let me take the first part of this. So with regard to the most kind of clients, we've already, you know, earlier this year, I made some pretty good traction against many of their customers, including folks like Pepsi, Ulta, AB, InBev, et cetera. But there's still a good number of customers in play, some of the, you know, some pretty big brands and a decent amount of revenue. So, you know, we are knee-deep in those RFP processes, and those include both advertiser opportunities and platform opportunities. And, you know, we see those coming together, you know, in Q4 with, as Nikola noted, you know, the real impact is those businesses begin to scale up into 2025.

Nicola: Thanks for the questions, Youssef. So let me take the first part of this. So with regard to the moat, kind of clients,

Speaker Change: We've already, you know, earlier this year, I made some pretty good traction against many of their customers, including folks like Pepsi, Ulta, AB, InBev, et cetera, but there's still a good number of customers in play.

Speaker Change: Some pretty big brands and a decent amount of revenue.

Mark S. Zagorski: So, you know, we are knee-deep in those RFP processes, and those include both advertiser opportunities and platform opportunities. And, you know, we see those coming together in Q4 with, as Nicola noted, the real impact is that those businesses will begin to scale up into 2025. One of the nice things about this entry point is that Moat was a relatively simple product set. They didn't have a lot of, you know, bells and whistles on what they were able to do.

Speaker Change: So, you know, we are knee-deep in those RFP processes, and those include both advertiser opportunities and platform opportunities.

Speaker Change: And, you know, we see those coming together, you know, in Q4 with, as Nicola noted, you know, the real impact is those businesses begin to scale up into 2025.

Mark S. Zagorski: So we can go in with a pretty basic offering but really have a great opportunity to upsell over time, which I think is going to be a unique, really unique opportunity across those customers. And then, per your second question, the adoption of meta across some key advertisers. So far this year, we've added a bunch.

Mark Zagorski: One of the nice things about this entry point is, you know, most was a relatively simple product set. They didn't have a lot of, you know, bells and whistles on what they're able to do. So we can go in with a pretty basic offering, but really have a great opportunity to upsell over time, which I think is going to be the unique, really unique opportunity across those customers.

Speaker Change: One of the nice things about this entry point is, you know, Moat was a relatively simple product set, they didn't have a lot of bells and whistles on what they were able to do, so we can go in with a pretty basic offering, but really have a great opportunity to upsell over time, which I think is going to be the unique, really unique opportunity across those customers.

Mark S. Zagorski: So folks like AB InBev, Best Buy, Ulta Beauty, Choice Hotel, Halion, J&J, and then as we onboard new partners, you know, folks like Halion and others will start to upsell them over time. Yeah, and Youssef, for the last part of your question, I think we're being very consistent on just having a very measured contribution from the meta upsells into our numbers for the fiscal year And we haven't changed our approach or our guidance for the second half. The second half of this year is all about adoption, testing, and contracting, with future contribution being in 2020. Thank you both.

Mark Zagorski: and then, a prayer second question, the adoption of Meta across key advertisers. So, so far this year, we've added a bunch. So, folks like A, B, M, B, B, S, B, Alton Beauty, Choice Hotel, Haley on J and J, you know, greater than 30 new advertisers who had not worked with us on Meta before.

Speaker Change: And then per your second question, the adoption of meta across some key advertisers.

Speaker Change: So far this year, we've added a bunch. So folks like AB InBev, Best Buy, Ulta Beauty, Choice Hotel, Halion, J&J.

Speaker Change: You know, greater than 30 new advertisers who had not worked with us on Meta before.

Mark Zagorski: So, we've got some great traction there; again, those need to scale up over time, but it's following the pattern and the plan that we had, which is, you know, we're going to go after folks internally, who are current customers of D, D, D, who haven't used us across Meta, go after them first. And then, as we onboard new partners, you know, folks like Haley on it, others will start to upsell them over time.

Speaker Change: So we've got some great traction there. Again, those need to scale up over time, but it's following the pattern and the plan that we had, which is, you know, we're going to go after folks internally who are current customers of DV who haven't used us across Meta, go after them first.

Speaker Change: And then as we onboard new partners, you know, folks like Halion and others will start to upsell them over time.

Mark Zagorski: Yeah, and you said for the last part of your question, I think we're being very consistent on just having a very measured contribution from the meta upsells into our number for the school year, and we haven't changed our approach to our guidance for the second half.

Speaker Change: Yeah, and Youssef, for the last part of your question, I think we're being very consistent on just having a very measured contribution from the meta upsells into our numbers for the fiscal year, and we haven't changed our approach or our guidance for the second half. The second half of this year is all about adoption, testing, contracting with the future contribution being in 2025.

Youssef Squali: The second half of this year is all about adoption, testing, contracting with the future of contribution being in 2025. Guy, okay.

Youssef Squali: Thank you, Bill.

Operator: Sure. Thank you.

Speaker Change: Go ahead. Okay. Thank you both.

Eric James Sheridan: Thank you. Our next questions come from the line of Eric Sheridan with Goldman Sachs. Please proceed with your, Thank you so much for taking the question.

Eric Sheridan: Our next questions come from the line of Eric Sheridan with Goldman Sachs. Please proceed with your questions. Thanks so much for taking the question. We'll be building on UCF's question just in terms of thinking out through the remainder of this year and beyond.

Speaker Change: For sure.

Speaker Change: Thank you. Our next questions come from the line of Eric Sheridan with Goldman Sachs. Please proceed with your questions.

Mark S. Zagorski: Maybe building on Youssef's question, just in terms of thinking out through the remainder of this year and beyond, how do you think about the building momentum around revenue as you execute against some of the elements of partnerships that you've brought into the ecosystem over the last 12 to 18 months? And can you couple that also with how much of the path forward is about execution against the opportunity versus some of the investments that are going to be made to set you up for the long-term growth opportunity? Thanks so much.

Eric James Sheridan: Thanks so much for taking the question. Maybe building on Youssef's question, just in terms of thinking out through the remainder of this year and beyond, how do you think about the building momentum around revenue as you execute against some of the elements of partnerships that you've brought into the ecosystem over the last 12 to 18 months? And can you couple that also with how much of the path forward is about execution against the opportunity versus some of the investments that's going to be made to set you up for the long-term growth opportunity? Thanks so much.

Eric Sheridan: How do you think about the building momentum around revenue as you execute against some of the elements of partnerships that you brought into the ecosystem over the last 12 to 18 months, and can you couple that also with how much of the path forward is about executing it's the opportunity versus some of the investments that's only been made to set you up for the long term growth opportunity. Thanks so much.

Mark Zagorski: Thanks for the question, Eric. So, you know, we've talked, you know, incessantly about the numerous growth drivers we have in the business, everything from, you know, social, which continued to be really strong. To, you know, our side bids business, which, you know, has been really a nice accelerator for us. And I think when we look at building momentum into the, you know, into the second half of this year and into next year, it's those plus, you know, our business outside the US now, which we've measured more impressions outside the US. It's the continued growth in CTV, and all those were investments that we've made in the past, right?

Mark S. Zagorski: Thanks for the question, Eric. So, you know, we've talked incessantly about the numerous growth drivers we have in the business, everything from, you know, Social, which continues to be really strong, to, you know, our sidebids business, which, you know, has been a really nice accelerator for us. And I think when we look at building momentum into the second half of this year and into next year, it's those plus, you know, our business outside the U.S. now, which we've measured more impressions outside the U.S., it's the continued growth in CTV, and all those were investments that we've made in the past, right?

Speaker Change: Thanks for the question, Eric. So, you know, we've talked, you know, incessantly about the, you know, the numerous growth drivers we have in the business, everything from, you know, social, which continues to be really strong, to, you know, our Cybiz business, which, you know, has been really a nice accelerator for us.

Speaker Change: And I think when we look at building momentum into the second half of this year and into next year, it's those plus

Speaker Change: You know, our business outside the U.S. now, which we've measured more impressions outside the U.S., is the continued growth in CTV, and all of those were investments that we've made

Mark S. Zagorski: We've invested in CTV solutions. We invested in our social footprint by not just building new tools across places like Meta and YouTube but expanding the number of platforms we work with, like Reddit. So, we've got a lot of arrows in our quiver already that we're using right now that we're building momentum on. And as we close new customers, so whether they're Moat customers or, you know, those Greenfield customers, of which, you know, 70% of our new closes were Greenfield, we're going to use all those investments to, you know, build against that growth profile. So, we've done a lot of that already.

Mark Zagorski: We've invested in CTV solutions. We invested in our social footprint by not just, you know, building new tools across places like Meta and YouTube, but expanding the number of platforms we work with looks like Reddit. So, we've got a lot of arrows in our quiver already that we're using right now that we're building momentum against. And as we close new customers, so whether they're moat customers or, you know, those greenfield customers, of which, you know, 70% of our new closes were greenfield, we're going to use all those investments to, you know, build against that growth profile.

Speaker Change: In the past, right, we've invested in CTV solutions. We invested in our social footprint by not just, you know, building new tools across places like Meta and YouTube, but expanding the number of platforms we work with folks like Reddit.

Speaker Change: So we've got a lot of arrows in our quiver already that we're using right now, that we're building momentum against, and as we close new customers, so whether they're Moat customers or those Greenfield customers of which 70% of our new closes were Greenfield,

Speaker Change: We're going to use all those investments to build against that growth profile.

Mark Zagorski: So we've done a lot of that already. It doesn't mean we're stopping, and we're continuing to lean into things like our AI technology to recognize, you know, challenging content across the video at scale and do so superficially, which has allowed us to drive an industry leading, you know, gross margin. And, you know, I think we'll continue to lean into those tools, but a lot of the momentum that we've built already is based on investments that we've made in people and technology over the last several.

Laura Anne Martin: It doesn't mean we're stopping, and we're continuing to lean into things like our AI technology to recognize, you know, challenging content across video at scale and do so super efficiently, which has allowed us to drive an industry-leading gross margin. And, you know, I think we'll continue to lean into those tools, but a lot of the momentum that we've built already is based on the investments that we've made in people and technology over the last several quarters. Thank you. Our next questions come from the line of Laura Martin with Needham and Company. Please proceed with your order. Thank you. I also have two.

Speaker Change: So we've done a lot of that already. It doesn't mean we're stopping and we're continuing to lean into things.

Speaker Change: Like our AI technology to recognize challenging content across video at scale and do so super-efficiently, which has allowed us to drive an industry-leading gross margin.

Speaker Change: And, you know, I think, you know, we'll continue to lean into those tools, but a lot of the momentum that we've built already is based on investments that we've made in people and technology over the last several quarters.

Laura Martin: Our next questions come from the line of Laura Martin with Needham and Company. Please foresee with your questions. Thank you. I also have two. Could we drill down on side bits? I think the original idea was we were going to try to get an upsell there as a percent of ad revenue, and I know it's been helping you get new business, but that's what I'm interested in. What's the conversion rate been after they try it? Are you still getting paid as a percent of ad revenue rather than a 60, and have you been able to actually get an upsell, or is it becoming just part of the core product?

Speaker Change: Thank you. Our next questions come from the line of Laura Martin with Needham & Company. Please proceed with your questions.

Mark S. Zagorski: Could we drill down on side bids? I think the original idea was we were going to try to get an upsell there as a percent of ad revenue, and I know it's been helping you get new business, but that's what I'm interested in. What's the conversion rate been after they try it?

Laura Anne Martin: Thank you. I also have two. Could we drill down on side bids? I think the original idea was we were going to try to get an upsell there as a percent of ad revenue.

Speaker Change: And I know it's been helping you get new business, but that's what I'm interested in. What's the conversion rate been after they try it?

Speaker Change: Are you still getting paid as a percent of ad revenue rather than a fixed fee, and have you been able to actually get an upsell, or is it becoming just part of the core product? That's my first question. My second question is on your cost philosophy. Your costs this year we're projecting are going to grow faster than your revenue, whereas for the past two years your total operating expense has grown about half as fast as your revenue.

Laura Martin: That's my first question.

Laura Anne Martin: Are you still getting paid a percent of ad revenue rather than a fixed fee? And have you been able to actually get an upsell, or is it becoming just part of the core product? That's my first question.

Laura Martin: My second question is on your cost philosophy. Your costs this year were projecting are going to grow faster than your revenue, whereas for the past two years, your total operating expense has grown about half as fast as your revenue. So could you talk about your cost philosophy as the revenue has sort of slowed here to the 17% level for the year? Thank you.

Speaker Change: So could you talk about your cost philosophy as the revenue has sort of slowed here to the 17% level for the year? Thank you.

Nicola Allais: Thanks, Laura.

Mark Zagorski: I'll take the side bits question, and Nicole will talk about costs. So, with regard to side bits, I mean, it is an absolutely additive upsell that we are still selling as a percentage of media. We've not bundled it into our solution yet. We've connected it, so we've connected it, for example, to our attention data to make some pretty unique solutions. But ultimately, we see this as additive. It's part of our activation business and part of our activation line that continues to grow. It's an optimization tool that I think is incremental to our core business, not something.

Speaker Change: Thanks, Laura. I'll take the side bids question, and Nicola will talk about costs.

Speaker Change: We will see you next time. Bye-bye.

Speaker Change: So...

Speaker Change: With regard to Sybase, I mean, it is an absolutely additive upsell that we are still selling as a percentage of media. We've not bundled it into our solution yet. We've connected it. So we've connected it, for example, to our attention data to make some pretty unique solutions.

Speaker Change: But ultimately, we see this as additive. It's part of our activation business and part of our activation line that, you know, continues to grow.

Speaker Change: And, you know, it's an optimization tool that I think is incremental to our core business, not something I think that I think, you know, we need to bundle at this stage as part of that.

Mark Zagorski: I think we need to bundle at this stage as part of that. And the reason why we're seeing traction, and we believe in that, is that we've seen traction outside of customers who don't even work with us on our core bundle. And I think that's been an interesting opportunity for us to get discussions going with large brands that may work with our competitors. And to do that, you know, you have to have a product that you can sell separately, that can act separately, and then we'll monetize separately.

Speaker Change: And the reason why we're seeing traction, and we believe in that, is that we've seen traction outside of customers who don't even work with us on our core bundle. And I think that's been an interesting opportunity for us to get...

Speaker Change: Discussions going with large brands that may work with our competitors. And to do that, you know, you have to have a product that you can sell separately, that can act separately, and that will monetize separately.

Nicola Allais: Yeah, and on the cost philosophy, it's an investment philosophy towards there is where we think we can accelerate our market sharing the market, which is what we've been able to accomplish it for the last few years. So, if we find ways to invest that allow it to go at a passive flip, we will continue to do so. We're still achieving margins that are about 30 percent of the employees being our guidance expectation on, on you get that. We're particularly focused on having achieved higher growth margins, which are really the result of us having invested for several orders into that line.

Nicola T. Allais: My second question is about your cost philosophy. Your costs this year, we're projecting them to grow faster than your revenue, whereas for the past two years, your total operating expense has grown about half as fast as your revenue. So could you talk about your cost philosophy as revenue has sort of slowed here to the 17% level for the year? Thank you.

Speaker Change: Yeah, and on the cost philosophy, really, it's an investment philosophy towards areas where we think we can accelerate our market share in the market, which is what we've been able to accomplish over the last few years. So if we find ways to invest that allow us to grow at a faster clip, we will continue to do so. We're still achieving margins that are above 30%. This is where we beat our guidance expectation on EBITDA.

Speaker Change: We're particularly focused on having achieved

Speaker Change: Higher gross margins, which are really the result of us having invested for several quarters into that line. And now we are able to show a higher gross margin. So where we see opportunities to invest within the range of our EBITDA guidance, which is just over 30%, we will continue to do that because we believe that's how we're gaining share in the market.

Nicola Allais: And now we're able to show a higher growth margin. So, where we see opportunities to invest within the range of our unit that guidance, which is just known with 30 percent, that we will continue to do that, because we believe that's how we're gaining share in the market.

Laura Martin: Thank you.

Laura Martin: Appreciate it.

Operator: Thanks for having us.

Matthew Swanson: Thank you. Our next questions come from the line of Matt Swanson with RBC Capital Markets. Please proceed with your question. questions. Yeah, thank you so much for the time and taking my questions. Mark, you mentioned that this quarter, that video impressions group faster, or sorry, more video impressions than this split.

Speaker Change: Thank you, appreciate it. Thanks Laura.

Speaker Change: Thank you. Our next questions come from the line of Matt Swanson with RBC Capital Markets. Please proceed with your questions.

Mark S. Zagorski: I'll take the Cybiz question, and Nicole will talk about costs. So with regard to Cybiz, I mean, it is an absolutely additive upsell that we are still selling as a percentage of media. And I think that's been an interesting opportunity for us to get discussions going with large brands that may work with our competitors. And to do that, you know, you have to have a product that you can sell separately, that can act separately, and then we'll monetize it.

Matthew John Swanson: Yeah, thank you so much for the time and taking my questions.

Matthew John Swanson: Mark, you mentioned that this quarter that video impressions grew faster, or sorry, more video impressions than display. And this is kind of a common occurrence in calls with investors of wondering about

Mark Zagorski: And this is kind of a common occurrence in calls with investors of wondering about this increasing video, even though it's a higher fee impact volume to the point where it might have a negative impact. I was just curious the dynamics that you're seeing around there where you're still seeing strong results as videos ramping up. Yeah, so it's a great question, Matt, and there's a bunch of different dynamics going on here. So you've got a whole ton of new inventory flooding into the market, right? And what that's doing is adding opportunities for investment, particularly across platforms like Amazon and Amazon Prime.

Speaker Change: There's increasing video even though it's a higher fee impact volume to the point where it might have a net negative impact. I was just curious the dynamics that you're seeing around there where you're still seeing strong results as video is ramping up.

Nicola T. Allais: Yeah, and on the cost philosophy, really, it's an investment philosophy towards areas where we think we can accelerate our market share in the market, which is what we've been able to accomplish over the last few years. So, if we find ways to invest that allow us to go at a faster clip, we will continue to do so. We're still achieving margins that are above 30%.

Nicola T. Allais: This will be our guidance expectation for EBITDA. We're particularly focused on having achieved higher gross margins, which is really the result of us having invested for several quarters into that line, and now we're able to show a higher gross margin. So, where we see opportunities to invest within the range of our EBITDA guidance, which is just over 30%, we will continue to do that because we believe that's how we're gaining share. Thank you. I appreciate it.

Speaker Change: Yeah, so it's a great question, Matt. And, you know, there's a bunch of different dynamics going on here. So you've got

Matthew John Swanson: Thanks. Thank you. Our next questions come from the line of Matt Swanson with RBC Capital Markets. Please proceed with your, Yeah, thank you so much for the time and taking my questions.

Speaker Change: A whole ton of new inventory flooding into the market, right?

Mark S. Zagorski: Mark, you mentioned that this quarter, video impressions grew faster, or sorry, more video impressions than display. And this is kind of a common occurrence in calls with investors, wondering about those increasing video, even though it's a higher fee impact volume to the point where it might have a net negative impact. I was just curious about the dynamics that you're seeing around here, where you're still seeing strong results as videos ramp up. Yeah, so it's a great question, Matt.

Speaker Change: What that's doing is adding opportunities for measurement, particularly across platforms like Amazon and Amazon Prime. It's also suppressing CPMs a bit. So you're seeing lower CPMs across CTV, which means significantly higher volumes.

Mark S. Zagorski: And, you know, there's a whole ton of new inventory flooding into the market, right? And what that's doing is adding opportunities for measurement, particularly across platforms like Amazon and Amazon Prime. It's also suppressing CPMs a bit.

Mark Zagorski: It's also suppressing CPMs a bit. So you're seeing lower CPMs across CTV, which mean significantly higher volumes. So I think that dynamic that there may have been some concern about for businesses like ours, where we're volume-driven business, it started to shift, which is more volume, slightly lower CPMs, and then just incremental players coming into the market that allow for measurement opportunities. And that's why we saw CTV growth in the 50% plus zone, 55% plus over the quarter. So video and particularly CTV I think is going to be a nice driver for us moving ahead. Those CPMs are starting to slip a bit as more and more inventory comes into the market, creating bigger opportunities for volume-based businesses like ours.

Mark S. Zagorski: So you're seeing, you know, lower CPMs across CTV, which means, you know, significantly higher volumes. So I think that dynamic that, you know, there may have been some concern about for businesses like ours, where we're a volume-driven business, has started to shift, which is, you know, more volume, slightly lower CPMs, and then just incremental players coming into the market that add, you know, allow for measurement opportunities And that's why we saw, you know, CTV growth, you know, in the 50% plus zone, 55% plus, you know, over the quarter.

Speaker Change: So I think that dynamic that, you know, there may have been some concern about for businesses like ours where, you know, we're a volume-driven business.

Speaker Change: It started to shift, which is, you know, more volume, slightly lower CPMs, and then just incremental players coming into the market that add, you know, allow for measurement opportunities. And that's why we saw

Speaker Change: CTV growth in the 50% plus zone, 55% plus.

Mark S. Zagorski: So, you know, video, and particularly CTV, I think is going to be, you know, a nice driver for us moving ahead. Those CPMs are starting to slip a bit as more and more inventory comes into the market, creating bigger opportunities for, you know, volume-based businesses. Yeah, that's really helpful color.

Speaker Change: Video, and particularly CTV, I think is going to be a nice driver for us moving ahead. Those CPMs are starting to slip a bit as more and more inventory comes into the market.

Speaker Change: Creating bigger opportunities for volume-based businesses like ours.

Matthew Swanson: Yeah, that's really helpful color.

Mark S. Zagorski: And then one more, maybe on kind of the positive surprise we got from the supply side business, you mentioned that you feel like this is, you know, repeatable. Can you just give us maybe a sense of the scale of that retail media network opportunity? Or if there's anything else that you think drives that line in the future? Just a little more color there.

Mark Zagorski: And then one more maybe on kind of a positive surprise we got from the supply side business. You mentioned that you feel like this is repeatable.

Collar: Yeah, that's really helpful, Collar. And then one more, maybe on kind of the positive surprise we got from the supply side business. You mentioned that you feel like this is, you know, repeatable. Can you just give us maybe a sense of the scale of that retail media network opportunity? Or if there's anything else that you think drives that line in the future? Just a little more, Collar, there.

Mark Zagorski: Could you just give us maybe a sense of the scale of that retail media network opportunity, or if there's anything else that you think grabs that line in the future? Just a little more color there. Yeah, so our supply side business had a nice pop. And the reason why we look at this as sustainable, it's very much like a pure SaaS software type application, where once you get a deal set in, they're pretty safe and pretty structured. So you're going to see that for several quarters moving ahead, that that increase every year, every year is going to sit there.

Mark S. Zagorski: Yeah, so our supply side business, you know, had a nice pop. And the reason why, you know, we look at this as sustainable, it's, it's, it's very much like a pure SaaS software type application where, you know, once you get a deal set in, they're pretty, You know, pretty safe and pretty structured. So you're going to see that, you know, for several quarters moving ahead, that that increase year over year is going to sit there. So it's sustainable.

Collar: Yeah, so our supply side business, you know, had a nice pop. And the reason why, you know, we look at this as sustainable, it's, it's, it's very much like a pure SaaS software type application where, you know, once you get a deal set in, they're pretty

Mark S. Zagorski: Plus, that's not even accounting for some of the potential upside we would get from moat clients. So we feel pretty good about the supply side part of our business continuing to grow, especially due to the fact that a big chunk of that is being driven by retail media network. So if you look at our supply-side retail media network business group, 50% year-over-year last quarter. So you've got a bunch of different drivers playing out there.

Collar: You know, pretty safe and pretty structured. So you're going to see that, you know, for several quarters moving ahead, that that increase year over year is going to sit there. So it's sustainable.

Mark Zagorski: So it's sustainable. Plus, that's not even accounting for some of the potential upside we would get from most clients. So we feel pretty good about the supply side part of our business continue to grow, especially due to the fact that a big chunk of that is being driven by retail media networks. So if you look at our supply side retail media network business grew 50% year-to-year last quarter. So you've got a bunch of different drivers playing out there, the retail media network aspect of it, the remote clients that will eventually roll through at the tail end of the year.

Collar: Plus that's not even accounting for some of the potential upside we would get from Moat clients. So we feel pretty good about the supply side part of our business continuing to grow.

Collar: Especially due to the fact that a big chunk of that is being driven by retail media networks.

Collar: So if you look at our supply-side retail media network business group, 50% year-over-year last quarter. So you've got a bunch of different drivers playing out there, the retail media network aspect of it, some moat clients that will eventually roll through at the tail end of the year, and the fact that those tend to be very sticky, non-volume-based deals that when you lap them over the next few quarters, they'll continue to show that same level of growth.

Mark S. Zagorski: The retail media network aspect of it to attract clients that will eventually roll through, you know, at the tail end of the year. And the fact that those tend to be very sticky, non-volume-based deals that when you lap them, you know, over the next few quarters, they'll continue to show that same level of growth. Thank you. For sure.

Mark Zagorski: And the fact that those tend to be very sticky, non-volume-based deals that, when you lap them over the next few quarters, they'll continue to show that same level of growth.

Matthew Swanson: Thank you. For sure.

Andrew Boone: Thank you. Our next questions come from the line of Andrew Boone with JMP Securities. Please proceed with your questions. Thanks much for taking my questions. Mark, I want to ask that ABS further slowing to Q. Look who is 12% of one Q and then slow the 7% to Q. If they're in the additional pressure or anything else to call out about those five points. And then secondly, if I look at activation overall and it's faster growth, the Q is that non-ABS revenue was very healthy in Q. Is that cited? Is there any other explanation that you want to highlight us?

Andrew M. Boone: Thank you. Our next questions come from the line of Andrew Boone with JMP Securities. Please proceed with your questions. Thanks so much for taking the time to answer my question. Mark, I wanted to ask about further slowing in 2G. Thank you so much for joining us. Yeah, so on the second part first, you know, when we look at non-ABS programmatic, it did grow pretty nicely over the quarter. And that does include silence, but it also includes core programmatic.

Speaker Change: Thank you.

Speaker Change: For sure.

Speaker Change: Thank you. Our next questions come from the line of Andrew Boone with JMP Securities. Please proceed with your questions.

Andrew M. Boone: Thanks so much for taking my questions.

Speaker Change: Mark, I wanted to ask about ABS further slowing in 2.2.

Mark S. Zagorski: Look away is 12% in 1Q and then slow to 7% in 2Q. Is there any additional pressure or anything else to call out about kind of those five points?

Mark S. Zagorski: And then secondly, if I look at activation overall, and it's faster growth, it appears that non-ABS revenue was very healthy in 2Q. Is that side-biz, or is there any other explanation that you want to highlight as we think about that aspect of revenue? Thanks so much.

Andrew Boone: We think about that aspect of revenue. Thanks so much.

Mark Zagorski: Yeah, Sue, I'll take the second part first. When we look at non-ABS programmatic, it did grow pretty nicely over the quarter. And that does include silence, but it also includes core programmatic. So think of the basic non-ABS solutions, pre-bid brand safety, pre-bid viability, et cetera. So we saw pretty decent activation strength in the non-ABS sector. When it comes to ABS, and we said, look, I think we were going to see some softness driven by that cohort of six players, and they were heavy ABS spenders. That has stabilized a bit, and we've got some pretty interesting existing user expansions that have occurred with Home Depot, Southwest, Fies, or Modeles, and so about sales and activations with GM, Alt-E, Pepsi, All-State, and others that we believe are going to put a little fire under that ABS growth number moving ahead.

Mark S. Zagorski: So think of the basic non ABS solutions, pre-bid brand safety, pre-bid viewability, etc. So, so we saw pretty, you know, decent activation strength in the non ABS sector. When it comes to ABS, and we said, look, I think, you know, we were going to see some softness driven by that cohort of six players, and they were heavy ABS vendors, that has stabilized a bit, and we've got, you know, some pretty interesting existing user expansions that have occurred with Home Depot, Southwest, Pfizer, Mondel?z, and some upsells and activations with GM, Altice, Pepsi, Allstate, and others that we believe are going to, you know, put a little fire under that ABS growth number moving ahead.

Speaker Change: Yeah, so I'll take the second part first. You know, when we look at non-ABS programmatic, it did grow pretty nicely over the quarter. And that does include assignments, but it also includes core programmatic. So think of the basic non-ABS solutions.

Speaker Change: Pre-Bid Brand Safety, Pre-Bid Viewability, etc. So we saw pretty decent activation strength in the non-ABS sector.

Speaker Change: When it comes to ABS, and we said, look, I think, you know, we were going to see some softness driven by that cohort of six players.

Speaker Change: and they were heavy ABS vendors. That has stabilized a bit and we've got, you know, some pretty interesting existing user expansions that have occurred with Home Depot, Southwest, Pfizer, Mondelez

Speaker Change: and some upsells and activations with GM, Altice, Pepsi, Allstate and others.

Mark S. Zagorski: So, you know, obviously, we would love to see that number be bigger. The great part about our activation business is we've got lots of other aspects of it as well. Prescreen Social, which we've talked about, which grew well, and that non-ABS number that you called out is also helping our activation business grow double digits. Thank you. Thank you. Our next questions come from the line of Michael Graham with Canaccord Unity. Please proceed with your order. Hi, thanks a lot.

Speaker Change: that we believe are going to put a little fire under that ABS growth number moving ahead. So, you know, obviously we would love to see that number be bigger. The great part about our activation business is we've got lots of other aspects of it as well. Prescreen Social, which we've talked about, which grew well, that non-ABS number that you called out, also are helping our activation business grow double digits.

Mark Zagorski: So, obviously, we will love seeing that number be bigger. The great part about our activation business is we've got lots of other aspects of it as well, pre-screen social, which we've talked about, which grew well. That non-ABS number that you called out also are helping our activation business grow double digits.

Michael Graham: Our next questions come from the line of Michael Graham with Canaccord Genuity. Please proceed with your questions. Hi, thanks a lot. Two questions.

Speaker Change: Thank you.

Speaker Change: Thank you. Our next questions come from the line of Michael Graham with Canaccord Genuity. Please proceed with your questions.

Michael Patrick Graham: Two questions. The first is on the competitive landscape, you know, how much has the moat withdrawal really impacted things? And just, are you seeing any changes to the competitive landscape relative to the first part of the year? And I wanted to ask about guidance.

Michael Graham: The first, I just wanted to ask on the competitive landscape, you know, how much has the moat withdrawal really impacted things, and just are you seeing any changes to the competitive landscape relative to, you know, the first part of the year? And I wanted to ask also on the guidance. I believe that you mentioned that you hadn't changed your expectations regarding the handful of CPG and retail customers that you had taken out of guidance previously. I just wanted to ask, you know, if you're seeing any, any progress or evolution from that group and just, you know, the major, if there are any major puts and takes to the second half guidance that we should keep in mind as we're thinking about sensitivity.

Michael Patrick Graham: Hi, thanks a lot. Two questions. The first, I just wanted to ask on the competitive landscape, you know, how much

Michael Patrick Graham: Has the moat withdrawal really impacted things and just are you seeing any changes to the competitive landscape relative to the first part of the year? And I wanted to ask also on the guidance.

Michael Patrick Graham: I believe that you mentioned that you hadn't changed your expectations regarding the handful of CPG and retail customers that you had taken out of guidance previously. I just wanted to ask if you're seeing any progress or evolution from that group. And just, you know, the major puts and takes to the second half guidance that we should keep in mind as we're thinking about the census. Well, thanks for the question, Michael. I'll take the first part.

Speaker Change: I believe that you mentioned that you hadn't changed your expectations regarding the handful of...

Speaker Change: I just wanted to ask, you know, if you're seeing any progress or evolution from that group and just, you know, if there are any major puts and takes to the second half guidance that we should keep in mind as we're thinking about sensitivity.

Mark Zagorski: Well, thanks for the question, Michael.

Mark S. Zagorski: I mean, with regard to the competitive landscape, you know, it's always an interesting dynamic when, you know, a competitor just literally drops off the map, the way Oracle did with Moat. The interesting thing, though, is if you look at the deals in play, our sales team is, you know, the best in the business, and they'd already been on top of all those customers even before Moat went out of business. So, you know, the dynamic was that it just kind of accelerated some of the discussions.

Mark Zagorski: I'll take the first part. I mean, with regards to the competitive landscape, you know, it's always an interesting dynamic when, you know, a competitor just literally drops off the map the way Oracle did with Moat. The interesting thing, though, is if you look at the deals and play in our sales team is, you know, the best in the business, and they had already been on top of all those customers even before Moat went out of business. So, you know, the dynamic was the fact that it just kind of accelerated some of the discussions. I think that have already been going on.

Speaker Change: Well, thanks for the question, Michael. I'll take the first part. I mean, with regards to the competitive landscape, you know, it's always an interesting dynamic when, you know, a competitor just literally drops off the map the way Oracle did with Moat. The interesting thing, though, is if you look at the deals in play, you know, our sales team is...

Mark S. Zagorski: I think that's already been going on, but it certainly made this a much more pressing decision for both advertisers and the platform customers out there. So competitive dynamics, you know, changed, got faster. You know, we're in the midst of literally dozens of RFPs right now.

Speaker Change: You know, the best in the business, and they'd already been on top of all those customers even before Moat went out of business. So, you know, the dynamic was the fact that it just kind of accelerated some of the discussions, I think, that have already been going on. But it certainly made this a much more

Mark Zagorski: But it certainly made this a much more pressing decision for both advertisers and the platform customers out there. So competitive dynamics, you know, changed, got faster. You know, we're in the midst of literally dozens of RFPs right now. And I think that, you know, that's probably the biggest change, and, you know, it did open the door to some smaller competitors coming in and taking a shot where they may not have had the opportunity before. But I think it's a good thing for the space.

Speaker Change: Pressing decisions for both advertisers and the platform customers out there.

Mark S. Zagorski: And I think that, you know, that's probably the biggest change. And, you know, it did open the door to some smaller competitors coming in and taking a shot where they may not have had the opportunity before. But I think it's a good thing for the space.

Speaker Change: So competitive dynamics, you know, changed, got faster. You know, we're in the midst of literally dozens of RFPs right now. And I think that, you know, that's probably the biggest change.

Speaker Change: You know, it did open the door to some smaller competitors coming in and taking a shot where they may have not had the opportunity before, but I think it's a good thing for the space. It shows where, you know, where a broad-based

Nicola T. Allais: It shows where, you know, where a broad-based differentiated solution set like DV's is going to win because a lot of these clients, you know, there's a good number of enterprise clients that will have to find solutions both on the platform side and on the advertiser side. Yeah, on the guidance question, Michael, for the cohort of six, they did perform in line with our expectation that we had already baked into our conversations from last quarter. So we have not adjusted guidance either up or down for that cohort.

Mark Zagorski: It shows where, you know, where a broad based differentiated solutions that like TV has is going to win because a lot of these, you know, clients, you know, there's a good number of enterprise clients that will have to find solutions. But on the platform side on the advertiser.

Speaker Change: Differentiated solutions that Lake TV has is going to win, because a lot of these clients, there's a good number of enterprise clients that will have to find solutions, both on the platform side and on the advertiser side.

Nicola Allais: Yeah, on the guidance question, Michael, for the cohort of six, they did perform in line with our expectation that we are already faking to our conversations from last quarter, so we have not adjusted guidance either up or down for that cohort. The puts and takes for the second half of the year, we are feeling like we have multiple factors that are going to help in the second half, including continued social growth. So, there is, we are seeing some accelerating momentum inside it, and then the continued growth in the supply side, which is where Mark was already mentioning.

Speaker Change: On the guidance question, Michael, for the Cohort of Six, they did perform in line with our expectation that we already faked into our conversations from last quarter, so we have not adjusted guidance either up or down for that cohort.

Nicola T. Allais: The puts and takes for the second half of the year, we feel like we have multiple growth factors that are going to help in the second half, including continued social growth. There is, we are seeing some accelerating momentum inside it, and then the continued growth on the supply side, which is what Mark was already mentioning. We do have some large clients that are in the pipeline that we expect to close. And then on the take side, you know, we did, we did not, we did not assume, you know, material upside from either a mode client given the time it might take to integrate and ramp it. And we've been very consistent in not having a large contribution from a meta brand safety. Perfect. Thanks a lot, guys.

Speaker Change: The puts and takes for the second half of the year, we are feeling like we have multiple factors that are going to help in the second half, including continued social growth. There is, we are seeing some accelerating momentum inside it.

Speaker Change: and then the continued growth in the supply side, which is what Mark was already mentioning.

Nicola Allais: We do have some large fines that are in the pipeline that we expect to close, and then on the take side, we do not assume, you know, material outside from either a load clients, given the time it might take to integrate and ramp that. And we've been very consistent on not having a large contribution from a net brand safety.

Speaker Change: We do have some large clients that are in the pipeline that we expect to close, and then on the take side, you know, we do not assume, you know, material upside from either mode clients, given the time it might take to integrate and ramp them, and we've been very consistent on not having a large contribution from a meta-brand safety industry.

Michael Graham: Perfect, thanks a lot, guys.

Speaker Change: Thank you. It's been a pleasure.

Raimo Lenschow: Thank you. Our next questions come from the line of Ramo Lenschow with Barclays. Please proceed with your questions. Perfect, thanks for screening in.

Raimo Lenschow: Thank you. Our next questions come from the line of Raimo Lenschow with Barclays. Please proceed with your. Perfect. Thanks for screening in. I actually wanted to stay on both of those subjects.

Speaker Change: Perfect. Thanks a lot, guys.

Speaker Change: Thank you. Our next questions come from the line of Raimo Lenschow with Barclays. Please proceed with your questions.

Raimo Lenschow: I actually wanted to stay on both of those subjects, so on the most side, can you speak about like how much extra resources you need to kind of get those guys rent and rent and timely manner, and you know, what does that mean for investment horizon. And then on the CPG customers, I mean, if you look at the earnings season on the CPG segment, at the moment it doesn't really look good. Is, you know, is that kind of you, is there kind of a constraint that might fit into you and kind of is that something that is possible to do, guys.

Mark S. Zagorski: So on the mode side, can you speak about how much extra resources you need to kind of get those guys ramped up and ramped up in a timely manner? And you know, what does that mean for the investment horizon? And then on the CPG customers? I mean, if you look at the earnings season for the CPG segment at the moment, it doesn't really look good. Is, you know, does that kind of do, is there any kind of concern that might feed into you?

Raimo Lenschow: Perfect. Thanks for screening me.

Raimo Lenschow: I actually wanted to stay on both of those subjects. So on the MOLT side, can you speak about like how much extra resources you need to kind of get those guys?

Speaker Change: Rembrandt and Rembrandt in a timely manner. And you know, what does that mean for investment horizon? And then on the CPG customers, I mean, if you look at the earnings season on the CPG segment, at the moment, it doesn't really look good. It's

Speaker Change: Thank you.

Mark Zagorski: Thank you. So on the potential mode customers, I mean, we're pretty well staffed to handle those roll ups. I mean, you know, depending how quickly we need to ramp them up, we may need to add, you know, a small amount of incremental headcount, but nothing significant, nothing that would be outside of what we'd really planned anyways for the year and maybe just accelerate them a bit. So we don't see a significant amount of additional expenses against the vote up ramp with regard to, you know, CPG. You know, we have not seen, you know, any degradation or any kind of, you know, predictions from our partners that they're going to be reducing spend over the second half of the year.

Mark S. Zagorski: And kind of is that something that is possible, Sir Raimo? So on the potential Moat customers, I mean, we're pretty well staffed to handle those roll-ups. I mean, you know, depending on how quickly we need to ramp them up, we may need to add a small amount of incremental headcount, but nothing significant, nothing that would be outside of what we really planned anyway for the year, and maybe just accelerate them a bit. So we don't see a significant amount of additional expenses against the moat upramp.

Raimo Lenschow: Sir Raimo, so on the potential MOC customers, I mean, we're pretty well staffed to handle those roll-ups. I mean, you know,

Speaker Change: Depending on how quickly we need to ramp them up, we may need to add a small amount of incremental headcount, but nothing significant, nothing that would be outside of what we really planned anyways for the year, and maybe just accelerate them a bit. So we don't see a significant amount of

Mark S. Zagorski: With regard to CPG, we have not seen any degradation or any kind of prediction from our partners that they're going to be reducing spend over the second half of the year. As a matter of fact, our CPG and many of our retail customers outside of the cohort that we've already identified are actually doing well and are at plan, if not slightly ahead of plan, what we expected. So we haven't seen any spend reductions yet, haven't heard of any, and, for the most part, we're pretty well in line with the fact that the macro is going to be pretty stable for the rest of the year.

Speaker Change: Additional expenses against the moat upramp.

Speaker Change: With regard to CPG,

Speaker Change: We have not seen...

Speaker Change: You know, any degradation or any kind of predictions from our partners that they're going to be reducing spend over the second half of the year. As a matter of fact, our CPG and many of our retail customers

Mark Zagorski: As a matter of fact, our CPG and many of our retail customers outside of the cohort that we've already identified are actually doing well, and our plan is not slightly ahead of what we expected. So we haven't seen, you know, any spend reductions yet; haven't heard of any. And, you know, for the most part, you know, we're pretty well in line with the fact that the macro is going to be pretty stable for the rest of the year.

Speaker Change: Outside of the cohort that we've already identified are actually doing well and are a plan, if not slightly ahead of plan, of what we expected. So we haven't seen, you know, any spend reductions yet. Haven't heard of any. And, you know, for the most part, you know, we're pretty well in line with the fact that the macro is going to be pretty stable for the rest of the year.

Raimo Lenschow: Okay, so thank you.

Raimo Lenschow: Okay, perfect. Thank you. Thank you. Our next questions come from the line of Tim Nollen with Macquarie Asset Management. Hi, it's Tim from Macquarie Capital. Could you please, you know, I'm running out of questions here because you covered a lot in the presentation. So that's great. Could you please give a point of clarification, though, on the global expansion? I think you said you grew at twice the rate of the US. Was that primarily Greenfield?

Tim Nollen: Our next questions come from the line of Tim Nallan with Macquarie Asset Management. Please proceed with your questions. Hi, it's Tim from Quarry Capital. Could you please, you know, I'm running out of questions here because you covered a lot in the presentation, so that's great. Could you please give a point of clarification, though, on the global expansion. I think you said you drew two times the rate of the US. Was that primarily greenfield? You gave a 70% of when's being greenfield? I wasn't sure if that was relating to international growth or not. So that's really what the question is: was it kind of white space, new opportunities, or was it competitive ones?

Speaker Change: Okay, thank you.

Speaker Change: Thank you. Our next questions come from the line of Tim Nollen with Macquarie Asset Management. Please proceed with your questions.

Mark S. Zagorski: You gave 70% of wins being Greenfield. I wasn't sure if that was relating to international growth or not. So that's really what the question is. Was it kind of white space new opportunities? Or was it competitive wins?

Tim Nollen: Hi, it's Tim from Macquarie Capital. Could you please, you know, I'm running out of questions here because you covered a lot in the presentation, so that's great.

Tim Nollen: Could you please give a point of clarification, though, on the global expansion? I think you said you grew at two times the rate of the U.S.

Tim Nollen: Was that primarily Greenfield? You gave a 70% of wins being Greenfield. I wasn't sure if that was...

Tim Nollen: [inaudible]

Mark Zagorski: And then, following on that, how well penetrated was there is moat internationally? Is that a particular opportunity internationally, or is moat more of a US opportunity? Yes, and Sue, on the second half of your question, Moat was definitely stronger outside of the U.S. over the last few years than they were in the U.S. but had to do with the fact that they had a relatively basic tool set and had pretty competitive pricing on that tool set, which allowed them to kind of distribute pretty cheaply in some markets that were much lower margin. So that being said, I think we do see some growth opportunities in our international business as a result of the most defecation.

Mark S. Zagorski: And then following on that, how well penetrated was or is Mote internationally? Is that a particular opportunity internationally? Or is Mote more of a US opportunity? Thanks. Yeah, so on the second half of your question, Moat was definitely stronger outside of the US over the last few years than it was in the US. But it has to do with the fact that they had a relatively basic tool set and pretty competitive pricing on that tool set, which allowed them to kind of distribute pretty cheaply in some markets that were much lower margin.

Mark S. Zagorski: So that being said, I think, you know, we do see some growth opportunities in our international business as a result of the Moat deprecation. And with regard to the 70%, when those are greenfield across all markets, so not just international but the US as well. And that's been consistent with us, if you remember, with the exception, I think, for one quarter, over the last several years, a majority of our deals have been greenfield.

Tim Nollen: Yeah, Tim, so on the second half of your question, Moat was definitely...

Speaker Change: Stronger outside of the US over the last few years than they were, you know, in the US. But due to the fact that they had a relatively basic tool set, and a pretty competitive pricing on that tool set, which allowed them to kind of distribute pretty cheaply in some markets that were much lower margin.

Speaker Change: So that being said, I think, you know, we do see some growth opportunities in our international business as a result of the Moat deprecation.

Mark Zagorski: And with regard to the 70% when those are greenfield across all markets, so not just international, includes U.S. as well. And that's been consistent with us, if you remember, with the exception, I think the one quarter, over the last several years. You know, a majority of our deals have been greenfield. And those are deals in which, you know, the advertiser did not use our product or any company. We've had it of our similar products, which again, as a testament to the fact that we've got lots of room to grow and we've got lots of rooms to grow not just in North America, but outside the U.S.

Speaker Change: And with regard to the 70% wins, those are greenfields across all markets, so not just international. It includes U.S. as well.

Speaker Change: And that's been consistent with us. If you remember, with the exception, I think, for one quarter over the last several years, you know, a majority of our deals have been greenfield and those

Speaker Change: are deals in which the advertiser did not use our product or any competitive or similar product, which, again, is a testament to the fact that we've got lots of room to grow, and we've got lots of room to grow not just in North America,

Mark S. Zagorski: And those are deals in which, you know, the advertiser did not use our product or any competitive or similar products, which, again, is a testament to the fact that we've got lots of room to grow. And we've got lots of room to grow, not just in North America but outside the US, with advertisers who are still being introduced to our products. And that gives us a, you know, a really solid TAM opportunity over the next several years. Great, thank you.

Mark Zagorski: with advertisers who still are being introduced to our products, and that gives us a, you know, a really solid tam opportunity over the next several years.

Speaker Change: but outside the U.S. with advertisers who still are being introduced to our products and that gives us a really solid TAM opportunity over the next several years.

Brian Joseph Pitz: Our next questions come from the line of Brian Pitz with BMO Capital Markets. Please proceed with your question. Maybe quickly on politics, obviously topical here, especially around inflammatory content and misinformation. How much of a tailwind do you think the election can be to your business? And what have you seen?

Speaker Change: Great, thank you.

Brian Pitts: Our next questions come from the line of Brian Pitts with BMO Capital Markets. Please proceed with your questions. Thanks for the question.

Speaker Change: Thank you.

Speaker Change: Thank you. Our next questions come from the line of Brian Pitz with BMO Capital Markets. Please proceed with your questions.

Mark Zagorski: Maybe quickly on political, obviously topical here, especially around inflammatory content and misinformation. How much of a talent do you think the election can be to your business? And what have you seen? You know, I know it's early on in the campaign cycle, it's point one point to do any any negative CTV industry impact from things like the Euro Cup or Copa America over that kind of months long period across June and July. Any sense that that could have pulled folks away from CTV. Thanks. Thanks, Brian, for the question.

Speaker Change: Thanks for the question. Maybe quickly on political, obviously topical here, especially around inflammatory content and misinformation.

Mark S. Zagorski: You know, I know it's early on in the campaign cycle, but that's point one. Point two, any negative CTV industry impact from things like the Euro Cup or Copa America over that kind of month-long period across June and July? Any sense that that could have pulled folks away from CTV? Thanks. Thanks, Brian, for the question. So with regard to politics, I think, you know, we've kind of already said, you know, we're not a huge direct beneficiary of political dollars, just due to the fact that we've got relatively sophisticated solutions that need to be employed, you know, over a long period of time, there's learnings, etc.

Brian Joseph Pitz: How much of a tailwind do you think the election can be to your business and what have you seen?

Brian Joseph Pitz: You know, I know it's early on in the campaign cycle. That's point one. Point two, any negative CTV industry impact from things like the Euro Cup or Copa America over that kind of month-long period across June and July ? Any sense that that could have pulled folks away from CTV? Thanks.

Mark Zagorski: So with regards to political, I think, you know, we've kind of already said, you know, we're not a huge direct beneficiary of political dollars just due to the fact that we've got relatively sophisticated solutions that need to be employed, you know, over a long period of time. There's learning, etc. But we, you know, we do kind of think there's a little bit of a tail when that comes from, for example, a broader engagement across social. As people get more and more involved in elections, you see social volumes go up; open web news engagement increases over time.

Speaker Change: Thanks, Brian , for the question. So with regards to political, I think, you know, we've kind of already said, you know, we're not a huge direct beneficiary of political dollars, just due to the fact that we've got relatively sophisticated solutions that need to be employed, you know, over a long period of time, there's learnings, etc. But we, you know, we do kind of think there's a little bit of a tailwind that comes from, for example, a broader engagement across social, as people get more and more involved in elections, you see social volumes go up.

Mark S. Zagorski: But we, you know, we do kind of think there's a little bit of a tailwind that comes from, for example, a broader engagement across social media as people get more and more involved in elections. You see social volumes go up, open web news, and engagement increases over time. So we'll see volumes on open web, you know, platforms, which is one of the reasons why we're investing in our authentic news initiative to continue to support advertisers who want to, you know, place dollars across news properties but still are concerned about kinds of incendiary news topics. So I think, you know, we will see some benefits from those. It's certainly not a headwind.

Mark Zagorski: So we'll see volumes on open web platforms, which is one of the reasons why we're investing in our authentic news initiative to continue to support advertisers who want to, you know, place dollars across news properties, but still are concerned about kind of incendiary news topics. So I think, you know, we will see some benefits, though, as it's certainly not a headwind, but I don't think it's, you know, we see the direct kind of monetizable tailwind that some others in the space do.

Brian Joseph Pitz: Open web news engagement increases over time, so we'll see volumes on open web platforms, which is one of the reasons why we're investing in our Authentic News Initiative to continue to support advertisers who want to place dollars across

Brian Joseph Pitz: News Properties, but still are concerned about kind of incendiary news topics. So I think, you know, we will see some benefits of those. It's certainly not a headwind, but I don't think it's, you know, we see the direct kind of monetizable tailwind that some others in the space do.

Mark S. Zagorski: But I don't think we see the direct kind of monetizable tailwind that some others in the space do. On the CTV side, we didn't see much friction at all from the events that you noted. The addition of Netflix's growing ad tier, who we work with, as well as Amazon introducing inventory into the market, who we work with, helped really fuel that 55% growth rate that we saw in the quarter for CTV impressions. Still relatively small compared to our overall volume, but as part of our video impression pool, it's growing, and we think that's, again, a catalyst for us moving ahead. Great, thanks. You got it.

Mark Zagorski: On the CTV side, we didn't see much friction at all from the other, you know, the events that you noted, you know, the addition of Netflix growing add tier, which who we work with as well as Amazon introducing inventory into the market. And we work with help really fuel that, you know, 55% growth rate that we saw on the quarter for CQB impressions. Still relatively small compared to our overall volume. But, you know, as part of our video impression pool, it's growing, and we think that's again a catalyst for us moving. Thank you.

Brian Joseph Pitz: On the CTD side, we didn't see much friction at all from the events that you noted. The addition of Netflix...

Mark Patrick Kelley: Thank you. Our next questions come from the line of Mark Kelley with Stiefel. Please proceed with your question. Great, thank you very much. Two quick ones. Sorry to go back to the normal mode.

Speaker Change: growing at here. Uh, which who we work with, as well as Amazon introducing um inventory into the market. And we work with helped really fuel that, you know, 55% growth rate that we spon the quarter for CTV impressions.

Speaker Change: Still relatively small compared to our overall volume, but, you know, as part of our video impression pool, it's growing and we think that's, again, a catalyst for us moving ahead.

Speaker Change: Great, thanks.

Mark Kelley: Our next questions come from the line of Mark Kelley with Tejal. Please proceed with your question. Great. Thank you very much. Two quick ones.

Speaker Change: You got it.

Speaker Change: Thank you. Our next questions come from the line of Mark Kelley with Stiefel. Please proceed with your questions.

Mark Kelley: Sorry to go back to mode, but curious if you think there's like an $80 million total opportunity number kind of floating out there. Does that seem right to you? Not necessarily what you think you can win, and then maybe as part of that. Any way to think about this split between advertiser and publisher exposure that Moat had.

Mark Patrick Kelley: Great, thank you very much. Two quick ones, sorry to go back to the moment, but...

Mark Patrick Kelley: I'm curious if you think, you know, there's like an $80 million total opportunity number kind of floating out there. Does that seem right to you? Not necessarily. What do you think you can win?

Mark Patrick Kelley: I'm curious if you think, you know, there's like an $80 million total opportunity number kind of floating out there. Does that seem right to you? Not necessarily, you know, what you think you can win?

Mark S. Zagorski: And then, you know, maybe as part of that, any way to think about the split between advertiser and publisher exposure that Moat had. And the second one is, going back to the political component, I think there's a lot of brands that are kind of just avoiding news content altogether around the election. You know, not necessarily because of your products but just trying to avoid, you know, potential negative news flow.

Mark Patrick Kelley: And then, you know, maybe as part of that, any way to think about the split between advertiser and publisher exposure that Moat had. And the second one is, just going back to the, you know, the political component, I think there's a lot of...

Mark Zagorski: And the second one is just going back to the political component. I think there's a lot of brands that are kind of just avoiding news content altogether around the election. Not necessarily because of your products, but just trying to avoid the potential negative news flow. Does that impact you either way, if that's the case, just around November. Thank you.

Speaker Change: Brands that are kind of just avoiding news content altogether around the election.

Speaker Change: You know, not necessarily because of your products, but just trying to avoid, you know, potential negative news flow. Does that impact you either way, if that's the case, just around, you know, November ? Thank you.

Mark S. Zagorski: Does that impact you either way, if that's the case, just around, you know, November? Yeah, so regarding the vote number, I think, you know, there's been numbers kicked around in that zone. You know, again, I think there is a significant opportunity there, both on the platform and advertiser side. A chunk of that is the longer tail, which I think some of it may drop off, or may just not be interesting, you know, for companies like DV to go after because it's just too small to manage. But there's a good chunk out there.

Mark Zagorski: Yeah, so regarding to the vote number, I think, you know, there's been numbers kicked around in that zone. You know, again, I think there is a significant opportunity there, both on the platform and advertiser side. But a chunk of that is longer tail, which I think some of it may drop off, may just not be interesting, you know, for companies like DD to go after, because it's just too small to manage. But there's a good chunk out there. And I think you're looking at tens of millions of dollars of opportunities against that mode business. The breakdown between platform and advertiser, you know, I think, you know, probably roughly 50 50. If you're looking at it, it would be my guess.

Mark S. Zagorski: And I think, you know, you're looking at tens of millions of dollars of opportunities against that vote. The breakdown between platform and advertiser, I think, is probably roughly 50-50. If you're looking at it, that would be my guess.

Speaker Change: Yeah, so regarding to the vote number, I think, you know, there's been numbers kicked around in that zone. You know, again, I think there is a significant opportunity there, both on the platform and advertiser side.

Speaker Change: A chunk of that is longer tail, which I think some of it may drop off, may just not be interesting for companies like DV to go after because it's just too small to manage.

Speaker Change: But there's a good chunk out there. And I think, you know, you're looking at tens of millions of dollars of opportunities against that moat business.

Speaker Change: The breakdown between platform and advertiser, you know, I think...

Mark S. Zagorski: But you know, there's still a good chunk of business out there to go after. But as I noted before, you know, a lot of their bigger brands we already had in play. So, you know, we took Pepsi from them, Ulta, AB, and InBev earlier this year.

Speaker Change: You know, probably roughly 50-50, if you're looking at it, it would be my guess. But, you know, there's still...

Mark Zagorski: But you know, there's still a good chunk of business out there to go after.

Mark Zagorski: But, as I noted before, you know, a lot of their bigger brands, we already had in place. So, you know, we took Pepsi from them, Ulta, AB InBev earlier this year, and some of the other discussions, you know, that we've had with some of the big advertisers have been going on since well before that business went out. So we think there's good opportunity there with regards to political, you know, I think that's exactly what we're trying to lean into with the authentic news initiative, which is helping advertisers better navigate news content without just turning it off.

Speaker Change: A good chunk of business out there to go after. But as I noted before, you know, a lot of their bigger brands we already had in play. So, you know, we took Pepsi from them, Ulta, AB, InBev earlier this year. And some of the other discussions, you know, that we've had with some of the big advertisers have been going on since well before that business went out.

Mark S. Zagorski: And some of the other discussions, you know, that we've had with some of the big advertisers have been going on since well before that business went out. So, we think there's a good opportunity. With regard to politics, you know, I think that's exactly what we're trying to lean into with the Authentic News Initiative, which is helping advertisers better navigate news content without just turning it off. We think there's, you know, a whole lot of value in advertisers being part of the dialogue, but doing so in a safe and suitable way.

Tejal R. Engman: So we think there's good opportunity there.

Tejal R. Engman: With regard to political, you know, I think that's exactly what we're trying to lean into with the Authentic News Initiative, which is helping advertisers better navigate news content without just turning it off.

Mark Zagorski: We think there's, you know, a whole lot of value in advertiser being part of the dialogue, but doing so in a safe and suitable way. And we've always prided ourselves in the fact that we can give them the tools to scalpel as opposed to the meat cleaver. To say, look, rather than just cut off news, let's try to navigate our way through this in a way that allows us to be part of the discussion without part of the problem. So, I think, you know, we do see that as an opportunity for us. And, you know, those dollars, even if they do move away from news, ultimately, they're going to be spent somewhere.

Tejal R. Engman: We think there's...

Tejal R. Engman: A whole lot of value in advertisers being part of the dialogue, but doing so in a safe and suitable way.

Mark S. Zagorski: And we've always prided ourselves on the fact that we can give them the tools, the scalpel, as opposed to the meat cleaver, to say, look, rather than just cut off the news, let's try to navigate our way through this in a way that, you know, allows us to be part of the discussion without being part of the problem.

Tejal R. Engman: And we've always prided ourselves on the fact that we can give them the tools, the scalpel, as opposed to the meat cleaver to say, look, rather than just cut off news, let's let's try to navigate our way through this in a way that, you know, allows us to be part of the discussion without part of the problem.

Mark S. Zagorski: So I think, you know, we do see that as an opportunity for us. And, you know, those dollars, even if they do move away from news, ultimately, they're going to be spent somewhere. And if they get spent on social, you know, we're on social; if they get spent on CTV, we're on CTV. So, you know, that every strategy that we have is really all about dealing with the ebbs and flows of dollars across different platforms. All right.

Tejal R. Engman: So I think, you know, we do see that as an opportunity for us.

Tejal R. Engman: And, you know, those dollars, even if they do move away from news, ultimately, they're going to be spent somewhere, and if they get spent on social, you know, we're on social, if they get spent on CTV, we're on CTV, so, you know, that verify every strategy that we have is really all about, you know, dealing with the ebbs and flows of dollars across different platforms.

Mark Zagorski: And if they get spent on social, you know, we're in social. If they get spent on TV or in CTV. So, you know, that verifying every strategy that we have is really all about, you know, dealing with the Edson flows of dollars across.

Mark Zagorski: Thank you, Mark.

Mark S. Zagorski: Thank you, Mark. Thank you. Our next question has come from the line of Vasily Karasyov with Canabal Research.

Tejal R. Engman: All right, thank you, Mark.

Vasily Karasyov: Our next question has come from the line of Vasily Karasyov with Cannibal Research. Please proceed with your questions. Thank you, good afternoon. I wanted to ask you about retail media revenue. If I'm reading this slide correctly here, 62% of retail media revenue was an activation, so that is programmatic. We know that the majority of retail media revenue is not programmatic at this point.

Tejal R. Engman: Yeah.

Speaker Change: Thank you. Our next questions come from the line of Vasily Karasyov with Canabal Research. Please proceed with your questions.

Vasily Karasyov: Please proceed with your question. Thank you. Good afternoon.

Vasily Karasyov: I wanted to ask you about retail media revenue. If I'm reading this slide correctly here, 62% of retail media revenue was in activation. So that is programmatic.

Vasily Karasyov: Thank you. Good afternoon. I wanted to ask you about retail media revenue. If I'm reading the slide,

Speaker Change: correctly here.

Speaker Change: 62% of retail media revenue was in activation, so that

Speaker Change: That is programmatic, and we know that the majority of retail media revenue is not programmatic at this point.

Mark S. Zagorski: And we know that the majority of retail media revenue is not programmatic at this point. So my question is, is this the breakdown between the different revenue lines that you report that you expect to see going forward or do you think it will be changing? And another question is, can you tell us what kind of gating factors there are that prevent you from growing this revenue stream from retail media faster?

Vasily Karasyov: My question is, is this the breakdown between the different revenue lines that you report, that you expect to see going forward, or do you think it will be changing?

Speaker Change: So my question is, A, is this the breakdown between the different revenue lines that you report that you expect sort of to see going forward, or do you think it will be changing? And another...

Vasily Karasyov: Another question is, tell us what kind of gating factors there are that prevent you from growing this revenue stream, retail media faster because, for some other companies, that is definitely a much bigger contributor. Thank you.

Speaker Change: The other question is, can you tell us what kind of gating factors there are that prevent you from growing this revenue stream, retail media, faster, because for some other companies it is definitely a much bigger contributor. Thank you.

Mark S. Zagorski: Because for some other companies, it is definitely a much bigger contributor. Thank you. Thanks Vasily for the questions. So regarding the activation aspects of our retail media network business, think of that as the audience extension part of retail media network. When they buy off-site, those off-site buys, many of them are transacted through DSPs, and those DSPs engage DV tools through the retail media networks to actually help ensure that those off-site buys are safe and secure.

Mark Zagorski: Thanks, Vasily, for the questions. Regarding the activation aspects of our retail media network business, I think of that as the audience extension part of retail media network. When they buy offsite, that offsite buys; many of them are transacted through DSPs, and those DSPs engage DVD tools through the retail media networks to actually help ensure that those offsite buys are safe and secure. That's where our activation portion of that business really exists. With regard to what this business looks like moving ahead, I do think supply side is going to continue to grow as we see our engagements with folks like Amazon, Walmart, and others grow on the supply side.

Speaker Change: Thanks Vasily for the questions. So, regarding the activation aspect of our retail media network,

Speaker Change: Business. Think of that as the audience extension part of Retail Media Network. When they buy off-site, that off-site buys, many of them are transacted through DSPs, and those DSPs engage

Speaker Change: You know, DV tools through the retail media networks to actually help ensure that those off-site buys are safe and secure. So, that's where our activation portion of that business.

Mark S. Zagorski: So that's where our activation portion of that business really exists. And then with regard to what this business looks like moving ahead, I do think the supply side is going to continue to grow as we see our engagements with folks like Amazon, Walmart, and others grow on the supply side. And then measurement, I think, stays.

Speaker Change: really exists.

Speaker Change: And then with regard to what this business looks like moving ahead, I do think supply side is going to continue to grow as we see our engagements with folks like Amazon, Walmart, and others grow on the supply side.

Mark Zagorski: Then measurement, I think, stays probably the third in that tier due to the fact that the way the measurement gets engaged is many times through a supply side implementation. We provide a base level of measurement, base level of security on that supply side platform. The growth we'll see will come really through the activation supply side lines on that business. With regard to growing retail media business faster, I think we saw a pretty significant growth rate of 50% plus on the supply side. I think that if that's going to be the fastest growing part of that retail media network business, I think it's a pretty good clip.

Mark S. Zagorski: Probably the third in that tier, just due to the fact that the way that measurement gets engaged is many times through a supply side implementation, right? So we provide a base level of measurement, and a base level of security on that supply side platform. So the growth we'll see will come really through the activation and supply sides of that business. With regard to growing the retail media business faster, I think, you know, we saw, you know, a pretty significant growth rate, you know, a 50% plus on the supply side.

Speaker Change: And then, you know, measurement, I think, you know, stays.

Speaker Change: Probably the third in that tier, just due to the fact that the way that measurement gets engaged is many times through a supply-side implementation, right? So we provide a base level of measurement, base level of security on that supply-side platform. So the growth we'll see will come really through the activation supply-side lines on that business.

Speaker Change: With regard to growing, you know, retail media business faster, I think, you know, we saw, you know, a pretty significant growth rate, you know,

Mark S. Zagorski: And, you know, I think that if that's gonna be the fastest growing part of that retail media network business, I think it's a pretty good clip. If there's any friction anywhere, it would just due to the fact that advertisers start looking at more efficient spend in other places, right?

Speaker Change: of 50% plus on the supply side. And, you know, I think that if that's going to be the fastest growing part of that retail media network business, I think it's a pretty good clip. If there's any friction anywhere, it would just due to the fact that if the advertisers start looking at more efficient spend other places.

Mark Zagorski: If there's any friction anywhere, it would just do the fact that if advertisers start looking at more efficient spend to other places.

Vasily Karasyov: I don't think there's any really market conditions or market barriers for us growing other than the dollars flowing into RMS if they get shifted back to social or to other networks that perform just as well. Thank you. Thank you. Our next questions come from the line of Yoon Kim with Loop Capital Markets. Please proceed with your questions.

Mark Zagorski: I don't think there's any really market conditions or market barriers for us growing that other than the dollars flowing into RMN if they get shifted back to social or to other networks that perform just as well.

Speaker Change: Right, I don't think there's any really market conditions or market barriers for us growing that other than the dollars flowing into RMNs if they get shifted back to social or to other networks that perform just as well.

Yun Suk Kim: Thank you. First, quickly on Sybids, can you update us on where we are in regard to the Sybid integration? Are we still, say, somewhat 12 to 18 months away from the full integration?

Mark S. Zagorski: Yeah, so we're on the path of integration. So we've integrated sales and marketing organizations, we've integrated a good amount of their technology and platform into, you know, our operational structure, the overhead team, so marketing and finance and legal, and all those have been fully integrated. So we're well on our way to integrating those teams. We do see an advantage to operating that business, very similar to how YouTube is operated by Google. So we have teams that are kind of able to execute and run on their own to innovate. We loved the innovation that was coming out of the data science teams in Paris.

Yun Kim: Our next questions come from the line of Yoon Kim with Loop Capital Markets. Please thank you. First, quickly on side bits. Can you update us on where we are in regard to the side bit integration? Are we still like somewhat 12, we can month away from the full integration? Yeah, so we're on path of integration. So we've integrated sales and sales organizations. We've integrated a good amount of their technology and platform into our operational structure, the overhead team, so marketing and finance and legal and all those have been fully integrated. So we're well on our way to integrating those teams. We do see an advantage of operating that business.

Speaker Change #100: Thank you.

Speaker Change #100: Thank you. Our next questions come from the line of Yoon Kim with Loop Capital Markets. Please proceed with your questions.

Yoon Kim: Thank you. First, quickly on SciBIT, can you update us on where we are in regard to the SciBIT integration? Are we still like somewhat 12 to 18 months away from the full integration?

Speaker Change #102: Yeah, so we're we're on path of integration. So we've integrated sales and

Speaker Change #103: Sales organizations, we've integrated a good amount of their technology and platforms into

Speaker Change #103: [inaudible]

Mark S. Zagorski: They want to keep them, you know, running hard on that, and not get them encumbered in some of the bigger company overhead that we're involved in. So, you know, I think integration wise, we're, you know, pretty far down the path. We still have some work to do on UIs and some data set integrations, but for the most part, we're well on schedule, and we've seen the benefits of that business continue to grow. Okay, great.

Mark Zagorski: Very similar to almost how YouTube is operated by Google. And so we have teams that are able to execute and run on their own to innovate. We've loved the innovation that was coming out of the data science teams in Paris. They want to keep them running hard on that. So not get them encumbered in some of the bigger company overhead that we're involved in. So I think integration wise, we're pretty far down the path. We still have some work to do on UIs and some data set integrations, but for the most part we're well on schedule, and we've seen the benefits in that business continuing to grow.

Speaker Change #104: Very similar to almost how YouTube is operated by Google. So we have teams that kind of are able to execute and run on their own to innovate. We loved the innovation that was coming out of the data science teams in Paris.

Speaker Change #104: They want to keep them...

Speaker Change #104: You know, running hard on that, so not get them encumbered in some of the bigger company overhead that we're involved in. So, you know, I think integration wise, we're

Speaker Change #104: You know, pretty far down the path. We still have some work to do on UIs and some data set integrations, but for the most part, we're well on schedule and we've seen the benefits in that business continue to grow.

Mark Zagorski: Okay, great. And Mark, also over the next two or next year or two, can you share your view on the pricing dynamics on social, especially on short videos, short videos and CTVs? You know, obviously, CPM rates on these formal channels are going to be changing. Yeah, you know, I guess from our perspective, you know, social pricing and in social business, the dynamics there have been pretty consistent over the years. So I think video, social video, we charge more or less the same as we do across any other video. Social displays is again similar type of measurement in charge the same amount there.

Mark S. Zagorski: And Mark, also, over the next year or two, can you share your view on the pricing dynamics on social, especially for short videos and CTVs? Obviously, CPM rates on these forms of channels seem to be changing. Yeah, you know, from our perspective, social pricing and social business, the dynamics there have been pretty consistent over the years. So I think, you know, video, social video, we charge more or less the same as we do across any other video. Social displays are, again, a similar type of measurement and charge the same amount there.

Mark: Okay, great. And Mark, also, over the next year or two, can you share your view on the pricing dynamics on social, especially on short videos and CTVs? Obviously, CPM rates on these form of channels seem to be changing.

Mark: Yeah, you know, I guess from our perspective, you know, social

Mark: Pricing and in the social business

Mark: The dynamics there have been pretty consistent over the years, so I think...

Speaker Change #106: Social video we charge more or less the same as we do across any other video. Social displays is again a similar type of measurement and charge the same amount there. Those CPMs...

Yun Suk Kim: Those CPMs, I think CPMs, broadly speaking, are really going to be driven by performance, right? Number one, media performance, but our CPMs, I think, across social and including social video, are going to continue to improve as we can move more towards social activation solutions. So currently, our social activation solutions are priced about three times our social measurement solutions. So as we are able to expand into activation more broadly across social platforms, I think we have an opportunity to get a more significant bump in MTF across social than we have today. Okay, great. Thank you so much.

Mark Zagorski: Those CPMs, look, I think CPMs broadly speaking are really going to be driven by performance, right? Number one, the media performance. But our CPMs, I think across social and including social video, are going to be continuing to answer as we can move more towards social activation solutions. So currently our social activation solutions are we are priced about three times, our social measurement solutions.

Speaker Change #106: Look, I think CPMs, broadly speaking, are really going to be driven by performance, right? Number one, the media performance. Our CPMs, I think, across social and including social video, are going to be continuing to enhance as we can move more towards social activation solutions.

Speaker Change #106: So currently our social activation solutions are priced about three times our social measurement solutions.

Mark Zagorski: So, as we are able to expand, you know, into activation more broadly across social platforms, I think, you know, we have an opportunity to get a more significant bump in MKF across social than we have today. Okay, great.

Speaker Change #106: So as we are able to expand into activation more broadly across social platforms, I think we have an opportunity to get a more significant bump in MTF across social than we have today.

Mark Zagorski: Thank you so much. Sure.

Arjun Bhatia: Thank you. Our next questions come from the line of Cargin Bhattia with William Blair. Please proceed with your questions. Hi, thanks. This is Chris on for Argin. I wanted to circle back to a comment you made about launching ABS-like capabilities on social. I just kind of want to get a sense of what the timeline looked like to that and whether it'll be very similar in terms of functionality and pricing as it. Yes. Yes, it's a great question. So, you know, right now we're in the midst of negotiations and development across multiple different social platforms to look at the implementation of these types of tools.

Mark S. Zagorski: Sure. Thank you. Our next questions come from the line of Arjun Bhatia with William Blair.

Speaker Change #107: Okay, great. Thank you so much.

Speaker Change #106: Sure.

Speaker Change #108: Thank you. Our next questions come from the line of Arjun Bhatia with William Blair. Please proceed with your questions.

Arjun Rohit Bhatia: Please proceed with your question. Hi, thanks. This is Chris on behalf of Arjun. I want to circle back to a comment you made about launching ABS-like capabilities on social.

Mark S. Zagorski: I just kind of wanted to get a sense of what the timeline looks like for that and whether it'll be very similar in terms of functionality and pricing as ABS. Yes, it's a great question. So, you know, right now, we're in the midst of negotiations and development across multiple different social platforms to look at the implementation of these types of tools. We know that social pre-screen, like we've seen on YouTube, has real value and has gotten really strong traction across our top 100 customers. And we can charge a premium for it, right? So pricing-wise, for our social activation tools, we charge about three times what we charge for social measurement. And that's a positive thing.

Speaker Change #108: Hi, thanks. This is Chris on for Arjun. I wanted to circle back to a comment you made about launching some ABS-like capabilities on social. I just kind of wanted to get a sense of what the timeline looks like to that and whether

Speaker Change #109: It'll be very similar in terms of functionality and pricing as ABS.

Speaker Change #110: Yeah, it's a great question. So, you know, right now we're in the midst of negotiations and development across multiple different social platforms to look at the implementation of these types of tools.

Mark Zagorski: We know that social pre-screen, like we've seen on YouTube, has real value and has gotten, you know, really strong traction across our top 100 customers. And we can charge a premium for, right? So, pricing wise, our social activation tools, we charge about three times what we charge for social measurement. And that's a positive thing. So, we do see a similar kind of potential when it comes to social, you know, pre-screen or activation tools as we saw in the open web. That's what gets us excited, is that we think that there's a pretty significant business there.

Speaker Change #111: We know that social prescreen, like we've seen on YouTube, has real value and has gotten really strong traction across our top 100 customers.

Mark S. Zagorski: So we do see a similar kind of potential when it comes to social pre-screening or activation tools as we saw on the open web. That's what gets us excited, is that we think that there's a pretty significant business there. Now, it's going to take, you know, again, this is not something that we launch overnight. It takes negotiations.

Speaker Change #111: And we can charge a premium for it, right? So pricing-wise, our social activation tools, we charge about three times what we charge for social measurement, and that's a positive thing. So we do see a similar kind of potential when it comes to social, you know, pre-screen or activation tools as we saw on the open web.

Mark S. Zagorski: It takes development work, but as we look into, you know, the next several quarters, we think there are opportunities for us to continue to get traction there. And as we look at 2025 and beyond, I think social activation is going to be a much bigger part of our business than it is today. That makes sense. And then just one last question on the moat for these customers. They've already been using a similar product with another platform. Is there any difference in the amount of time that you would expect them to ramp up on average?

Mark Zagorski: Now it's going to take, you know, again, this is not something we launch overnight. It takes negotiations. It takes development work. But as we look into, you know, the next several quarters, we think there's opportunities for us to, you know, continue to get traction there.

Speaker Change #111: That's what gets us excited, is that we think that there's a pretty significant business there. Now it's going to take, you know, again, this is not something that we launch overnight. It takes negotiations, it takes development work, but as we look into, you know,

Speaker Change #111: The next several quarters, we think there's opportunities for us to continue to get traction there. And as we look at 2025 and beyond, I think social activation is going to be a much bigger part of our business than it is today.

Mark Zagorski: And as we look at 2025 and beyond, I think social activation is going to be a much bigger part of our business than it is today. Got it. That makes sense.

Mark Zagorski: And then just one last question on mode for these customers. They've already been using, you know, a similar product with another platform. Is there any difference in the amount of time that you'd expect them to ramp on average? You know, look, there's still some of this similar testing that the advertisers want to take to ensure that, you know, they're understanding how to implement the solutions that they can, you know, understand the data that they get out of the tools, how they implement it, particularly if it's a pre-imposed connection. So there's, you know, ramping. There's no other way to put it; advertisers, you know, are under probably the most pressure to close the deals.

Speaker Change #112: Got it. That makes sense. And then just one last question on Moat. For these customers, they've already been using a similar product with another platform. Is there any difference in the amount of time that you would expect them to ramp on average?

Mark S. Zagorski: You know, look, there's still some similar testing that advertisers want to take to ensure that, you know, they're understanding how to implement the solutions, that they can, you know, understand the data that they get out of the tools, how they implement it, particularly if it's a pre and post bid connection. So there is, you know, ramping up, there's no other way to put it. Advertisers, you know, are probably under the most pressure to close the deals.

Speaker Change #113: There's still some of the similar testing that the advertisers want to take to ensure that they are understanding how to implement the solutions, that they can understand the data that they get out of

Speaker Change #114: Out of the tools, how they implement it, particularly if it's a pre- and post-bid connection. So there is, you know, ramping. There's no other way to put it. Advertisers, you know, are under...

Mark S. Zagorski: And that's what we've seen is that, you know, the deal pressure has been around closing and moving fast there faster than we've, you know, ever seen. But the ramping still is a ramping process, right? It's implementation in markets in some cases, you know, whether it's mandated or, you know, an option that takes part of it.

Mark Zagorski: And that's what we've seen is that, you know, the deal pressure has been around closing and moving fast. They're faster than we've, you know, never seen. But the ramping still is a ramping process, right? It's implementation in markets. In some cases, you know, whether it's mandated or, you know, an option that takes part of it. So there'll be some ramping, you know. I think that the faster part of the process has been in sales. Ramping will still occur very similar that we've seen the past. Thank you.

Speaker Change #115: Mark Zagorski, Tejal Engman

Speaker Change #115: In some cases, you know, whether it's mandated or, you know, an option that takes part of it. So there'll be some ramping. You know, I think that the faster part of the process has been in the sales. Ramping will still occur very similar that we've seen in the past.

Mark S. Zagorski: So there'll be some ramping. You know, I think that the faster part of the process has been in the sales ramping will still occur very similarly as we've seen in the past.

Mark Murphy: Thank you. Our next questions come from the line of Mark Murphy. With JP.

Mark S. Zagorski: Thank you. Sure. Thank you. Our next questions come from the line of Mark Murphy, with J.P. Morgan. Bye. This is Arjun for... Hi, this is Artyom from Mark Murphy.

Speaker Change #116: Thank you.

Speaker Change #116: Sure.

Speaker Change #116: Thank you. Our next questions come from the line of Mark Murphy.

Mark Murphy: Hi, this is already on from Mark Murphy. I congrats on the corner. Thanks for squeezing me in. So one of the ask about the remarks made about civics and the expectation that data exceeds in the second half. Be great to double-click on that and hear kind of what's giving you that confidence. Is there a particular aspect that has trade pipeline pipeline conversion or any other aspect you think might be worth calling out there. Thanks.

Mark Ronald Murphy: Congratulations on the quarter. And thanks for squeezing me in. I just wanted to ask about the remarks you made about CIBITS and the expectation that they'd exceed in the second half. It would be great to double-click on that and hear kind of what's giving you that confidence. Is there a particular aspect attached to the trade pipeline, pipeline conversion, or any other aspect you think might be worth calling out there? Thanks. Yeah, it's a great question.

Speaker Change #116: Hi, this is Arty on the phone.

Ari: Hi, this is Arty. I'm from Mark Murphy. Congrats on the quarter and thanks for squeezing me in. I just wanted to ask about the remarks you made about CIBITS and the expectation that they'd exceed in the second half. It'd be great to double-click on that and hear kind of what's giving you that confidence. Is there a particular aspect, attached trade, pipeline, pipeline conversion, or any other aspect you think might be worth calling out there? Thanks.

Mark Zagorski: Yeah, it's a great question. So, you know, what we're seeing is a strong pipeline and strong pipeline and conversions that were able to close the, you know, the first half of the year that are starting to ramp the second half of the year. And then volumes, volumes, and CPM. So, you know, the customers that were closed earlier this year are starting to scale, as I noted. And since we're a percentage of media business, you know, CPMs have been pretty healthy, if not growing. So I think those, you know, those factors give us confidence that we're able to continue to grow that business in a way that is slightly ahead of our plans and expectations.

Mark S. Zagorski: So, you know, what we're seeing is a strong pipeline and a strong pipeline of conversions that were able to close the first half of the year that are starting to ramp up for the second half of the year, and then volumes, volumes, and CPMs. So, you know, the customers that were closed earlier this year are starting to scale, as I noted, and since we're a percentage of the media business, CPMs have been pretty healthy, if not growing.

Speaker Change #118: Yes, it's a great question. So, you know, what we're seeing is, is a strong pipeline and a strong pipeline of conversions that were able to close the, you know, the first half of the year that are starting to ramp the second half of the year.

Speaker Change #118: And then volumes, volumes and CPMs. So, you know, the customers that were closed earlier this year are starting to scale, as I noted, and since we're a percentage of media business, you know, CPMs have been pretty healthy, if not growing.

Mark S. Zagorski: So, I think those, you know, those factors give us confidence that we're able to continue to grow that business in a way that is slightly ahead of our plans and expectations. Thanks. And then Nicola, just, you know, when we're looking at the share repo program, any insight into kind of what motivated that for the here and now? And is there any kind of framework we can think about going forward or the cadence of the buybacks?

Speaker Change #118: So I think those factors give us confidence that we're able to continue to grow that business in a way that is slightly ahead of our plans and expectations.

Nicola Allais: Thank you.

Nicola Allais: Thanks, and then, Nicola, just, you know, when we're looking at the SHARE repo program, any insight that's kind of what motivated that for the here and now, and is there any kind of framework we can think about going forward or the cadence of the buybacks? Thank you. Yeah, so, you know, the, I think in terms of where we are with the company and the capital structure of the company and usage of our funds, you know, we're now at a point where it becomes one of the many priorities that we have around how to use capital.

Speaker Change #118: Thanks. And then, Nicola, just, you know, when we're looking at the shared repo program, any insight of kind of what motivated that for the here and now? And is there any kind of framework we can think about going forward or the cadence of the buybacks? Thank you.

Nicola T. Allais: Thank you. Yeah, so, you know, the I think, in terms of where we are with the company and the capital structure of the company and the usage of our funds, we're now at a point where it becomes one of the many priorities that we have around how to use capital. So, you know, our view on it is it's going to be a balanced approach around repurchases so that we can continue to also invest in the business and look at potential acquisitions. Obviously, the stock price was at a point that it made it attractive for us to begin a program that's going to be a fairly balanced basis. Perfect.

Speaker Change #119: Yeah, so, you know, the

Speaker Change #120: I think in terms of where we are with the company and the capital structure of the company and usage of our funds, we're now at a point where it becomes one of the many priorities that we have around how to use capital. So our view on it is it's going to be a balanced approach around repurchases so that we can continue to also invest in the business and look at potential acquisitions.

Nicola Allais: So, you know, our view on it is it's going to be a balanced approach around repurchases so that we can continue to also invest in the business and look at potential acquisition. Obviously, the stock price was a point that made it attractive for us to begin a program that's going to be very, I don't know, fairly balanced basis, quarter after quarter.

Speaker Change #120: Obviously the stock price was at a point that it made it attractive for us to begin a program that's going to be on a fairly balanced basis quarter after quarter.

Nicola Allais: Perfect. Thank you.

Nicola T. Allais: Thank you. That's encouraging. Thank you. Our next question comes from the line of Omar Dessouky with Bank of America.

Nicola Allais: That's encouraging.

Operator: Thank you.

Omar Dessouky: Please proceed with your, Hey, thanks, a couple questions on social and then a question on the supply. So it looks like you broke out what your growth rate was for social activation. And I was wondering if you could also tell us what the mix of social activation within activation was.

Speaker Change #121: Perfect. Thank you. That's encouraging.

Omar Dessouky: Our next questions come from the line of Omar D'Souge with Bank of America. Please proceed with your questions. Hey, thanks. A couple of questions on social and then a question on the supply. So, it looks like you broke out what your growth rate was for social activation. And I was wondering if you could also tell us what the mix of social activation within activation was? Sure. So, you know, social activation, we noted, grew about 30%. A lot of that is pre-screen. So, you know, it's the pre-screen on YouTube. And that's a pretty small percentage of local activation, made around 5% of our total activation business.

Speaker Change #122: Thank you. Our next questions come from the line of Omar Dessouky with Bank of America. Please proceed with your questions.

Omar Dessouky: Hey, thanks. A couple questions on social and then a question on the supply. So, it looks like you broke out what your growth rate was for social activation, and I was wondering if you could also tell us what the mix of social activation within activation was?

Mark S. Zagorski: Sure. So, you know, social activation, we noted grew about 30%. A lot of that is pre-screen. So, you know, it's the pre-screen on YouTube.

Speaker Change #124: Sure. So, you know, social activation, we noted, grew about 30%. A lot of that is pre-screen. So, you know, it's the pre-screen on YouTube.

Speaker Change #125: And that's a pretty small percentage of overall activation, maybe around 5% of our total activation business. So small.

Omar Dessouky: So, small, continue to grow. But, as we noted in our remarks, it's a premium price. This is the way activation is premium price versus measurement on the open web. And we think there's a lot of solid potential there as well. And then last quarter, I think you said that there were nine of your top hundred customers that turned on Meta for the first time. This quarter, you've said that there are 30. But you didn't say whether they're within the top hundred or not. I was more interested in the top hundred specifically. Like, how many of your top hundred customers are now, you have turned on Meta since you launched brand, brand suitability.

Speaker Change #125: Continue to grow, but as we noted in our remarks,

Speaker Change #125: It's a premium priced, just the way activation is premium priced versus measurement on the open web, and we think there's a lot of solid potential there as well.

Mark S. Zagorski: And that's a pretty small percentage of overall activation, maybe around 5% of our total activation business. So small, but it will continue to grow. But as we noted in our remarks, it's a premium priced service, just the way activation is a premium price versus measurement on the open web. And we think there's a lot of solid potential there. And then last quarter, I think you said that there were nine of your top 100 customers that turned on META for the first time.

Speaker Change #126: And then last quarter, I think you said that there were nine of your top 100 customers.

Mark S. Zagorski: This quarter, you said that there were 30, but you didn't say whether they were within the top 100 or not. I was more interested in the top 100 specifically, like how many... Your top 100 customers are now, have turned on meta since you launched brand suitability. Yeah, so we had nine of our top 100 that were testing it in the first half; we converted it, you know, a few of those, the rest of them are still kind of testing and looking at, you know, whether or not they want to turn it on to scale.

Speaker Change #126: that turned on META for the first time.

Speaker Change #127: This quarter you've said that there are 30, but you didn't say whether they're within the top 100 or not. I was more interested in the top 100 specifically, like how many of your top 100 customers are now, have turned on meta since you launched Brand Suitability?

Omar Dessouky: Yeah. So, we had nine of our top 100 that were testing it. In the first half, we converted it, you know, a few of those. The rest of them are still kind of testing and looking at, you know, whether or not they want to turn it on to scale. So, we're still engaged with the significant amount of our top 100 customers. We did close 30, 30 new Meta partners since the beginning of the year. Some of those may have not fallen into the top 100, but I think they're big brands and they will become some of our bigger; they will fall into the top 100 every year.

Mark S. Zagorski: So we're still engaged with a significant amount of our top 100 customers. We did close 30, 30 new medical partners since the beginning of the year. Some of those may not have fallen into the top 100, but I think they're big brands, and they will become some of our bigger ones, or they will fall into the top 100 over the year. So a handful of the nine have converted; the rest are still testing.

Speaker Change #128: Yeah, so we had nine of our top 100 that were testing it in the first half. We converted it, you know, a few of those. The rest of them are still kind of...

Speaker Change #127: Testing and looking at, you know, whether or not they want to turn it on to scale. So we're still engaged with a significant amount of our top 100 customers.

Speaker Change #127: We did close 30.

Speaker Change #127: I think we've got 30 new MEDIC partners since the beginning of the year. Some of those may have not fallen into the top 100, but I think they're big brands and they will become some of our bigger... They will fall into the top 100 over the year. So, a handful of the nine have converted. The rest are still testing. I think we've got opportunities, you know, as we noted, some big brands here like Best Buy, AB, and Bev.

Mark S. Zagorski: I think we've got opportunities, you know, as we noticed some big brands here, like Best Buy, AB InBev, Expedia, J&J, Halion, you know, these are all guys that closed with us on meta in the first half of the year. Some of them are in the top 100. But I think, you know, some of them could be potentially in the top 100 moving forward.

Omar Dessouky: So, I hand full of the nine has converted; the rest are still testing. I think we've got opportunities, you know, as we noted some big brands here, like Best Buy, AB and Bev, Expedia, J&J, Haley on, you know, these are all guys that closed with us on Meta in the first half of the year. Some of them are top 100, but I think some of them could be potentially top 100 during the four.

Speaker Change #127: Expedia, J&J, Halion, you know, these are all guys that closed with us on Meta in the first half of the year. Some of them are top 100, but I think, you know, some of them could be potentially top 100 moving forward.

Omar Dessouky: Thank you.

Omar Dessouky: Thank you. And now for just the last question. So your commentary on the supply side is obviously pretty strong. I was wondering whether the margin structure of the supply side business differs from the, you know, from your demand side businesses, especially on things like gross margin and operating operating costs, if you could give me any color there. Yeah, Omar, as you know, the supply side business is truly a SaaS-type business. So the gross margin profile is different there. There's also no red share, and it is at a higher operating costs. Any difference there?

Omar Dessouky: And just the last question now. So you're commentary on supply side, obviously pretty strong.

Speaker Change #127: Thank you. And just the last question now.

Speaker Change #129: So your commentary on supply side, obviously pretty strong.

Omar Dessouky: I was wondering whether the margin structure of supply side business differs from the, you know, from your demand side businesses, especially on like gross margin and operating costs, if you could give me any color there. Yeah, Mark, you know, as you know, the supply side business is truly the last time. So, the gross margin profile is different there. There's no; there's also no rest share. And it is; it isn't a higher gross margin now.

Speaker Change #130: I was wondering whether the margin structure of the supply-side business differs from your demand-side businesses, especially on gross margin and operating costs, if you could give me any color there.

Speaker Change #131: Yeah, Omar, as you know, the supply side business is truly a SaaS type business, so the gross margin profile is different there. There's also no rest share, and it is at a higher gross margin.

Omar Dessouky: And operating costs, any, any difference there? No, this is the same data that we use for all of our revenue lines now. Okay.

Nicola T. Allais: No, this is the same data set that we use for all of our revenue lines now. OK. Thank you.

Omar: and operating costs any any difference there

Speaker Change #133: Now this is the same data set that we use for all of our revenue lines now.

Omar Dessouky: Thank you. For sure.

Speaker Change #133: Okay.

Operator: Thank you.

Mark S. Zagorski: Thank you. We have reached the end of our question and answer session. I would now like to turn the floor back over to CEO Mark Zagorski for closing remarks. Thank you all for your time today. Remain excited about the significant opportunities that lie ahead. And we definitely look forward to seeing many of you at our upcoming conferences in the coming months.

Omar: Thank you.

Mark Zagorski: We have reached the end of our question and answer session. Now we're now elected to deliver back over to CEO, Mark Sigorsky, for closing remarks.

Omar: For sure.

Omar: Thank you. We have reached the end of our question and answer session. I would now like to turn the floor back over to CEO Mark Zagorski for closing remarks.

Mark Zagorski: Thank you all for your time today. Remain excited about the significant opportunities that lie ahead. And we definitely look forward to seeing many of you at our upcoming conferences in the coming months.

Mark S. Zagorski: Have a great evening. Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day. Thanks for watching!

Mark S. Zagorski: Thank you all for your time today. Remain excited about the significant opportunities that lie ahead. And we definitely look forward to seeing many of you at our upcoming conferences in the coming months. Have a great evening.

Operator: Have a great evening. Thank you.

Operator: This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time.

Speaker Change #134: Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

Enjoy the rest of your day. Thank you.