Q2 2024 System1 Inc Earnings Call

August 8, 2024

will be available on our Investor Relations website shortly after this call has ended.

Operator: to remind you that during the call, we will make uncertain forward-looking statements. This includes statements relating to the operating performance of our business, future financial results and guidance, strategy, long-term growth, and overall future prospects. We may also make statements regarding regulatory compliance matters. These statements are subject to known and unknown risks and uncertainties that could cause our actual results to differ materially from those projected or applied during this call. In particular, those described in our risk factors, including our end report on Ford 10-K for the fiscal year 2023, filed on March 15th, as well as the current uncertainty and unpredictability in our business, the markets, and the global economy generally.

Kyle Ostgaard: I want to remind you that during the call, we will be making certain forward-looking statements. These include statements relating to the operating performance of our business, future financial results and guidance, strategy, long-term growth, and overall future prospects. We may also make statements regarding regulatory compliance matters.

Speaker Change: I'd like to take this opportunity to remind you that during the call we will be making certain forward-looking statements. This includes statements relating to the operating performance of our business, future financial results and guidance, strategy, long-term growth, and overall future prospects. We may also make statements regarding regulatory or compliance matters.

Operator: to remind you that during the call, we will make uncertain forward looking statements. This includes statements relating to the operating performance of our business, future financial results and guidance, strategy, long-term growth, and overall future prospects. We may also make statements regarding regulatory compliance matters. These statements are subject to known and unknown risks and uncertainties that could cause our actual results to different materially for those projected or applied during this call. In particular, those described in our risk factors, including our end report on Ford 10K for the fiscal year 2023, Filed on March 15th, as well as the current uncertainty and unpredictability in our business, the markets, and the global economy generally.

Speaker Change: These statements are subject to known and unknown risks and uncertainties that could cause our actual results to differ materially for those projected or applied during this call.

Kyle Ostgaard: These statements are subject to known and unknown risks and uncertainties that could cause our actual results to differ materially from those projected or applied during this call, in particular those described in our risk factors included in our annual report on Form 10K for the fiscal year 2023 filed on March 15th, as well as the current uncertainty and unpredictability in our business, the markets, and the global economy generally. You should not rely on our forward-looking statements as predictions of future events.

Speaker Change: In particular, those described in our risk factors included in our annual report on Ford 10K for the fiscal year 2023, filed on March 15th, as well as the current uncertainty and unpredictability in our business, the markets, and the global economy generally.

Operator: You should not rely on your Ford-looking statements as predictions of future events. All forward-looking statements that we make on this call are based on management, assumptions, and beliefs as of the date hereof.

Kyle Ostgaard: All forward-looking statements that we make on this call are based on management's assumptions and beliefs as of the date hereof, and System1 disclaims any obligation to update any forward-looking statements, except as required by law. Our discussion today will include non-GAAP financial measures, including adjusted EBITDA and adjusted gross profit. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from our GAAP results. Historical performance and future estimates provided during this call exclude results from total security.

Speaker Change: You should not rely on our forward-looking statements as predictions of future events.

Operator: You should not rely on your Ford looking statements as predictions of future events. All Ford looking statements that we make on this call are based on management, assumptions, and beliefs as of the date hereof. In System1, disclaims any obligation to update any Ford looking statements except as required by law. Our discussion today will include non-GAAP financial measures, including adjustity, but then adjust the gross profit. These non-GAAP measures should be considered in addition to and not as a substitute for or an isolation from our GAAP results. Historical performance and future estimates provided during this call exclude results from total security.

System 1: All forward-looking statements that we make on this call are based on management's assumptions and beliefs as of the date hereof, and System 1 disclaims any obligation to update any forward-looking statements except as required by law.

Operator: In System1, disclaims any obligation to update any Ford-looking statements except as required by law. Our discussion today will include non-GAAP financial measures, including adjustity, but then adjust the gross profit. These non-GAAP measures should be considered in addition to, and not as a substitute for, or in isolation from our GAAP results.

System 1: Our discussion today will include non-GAAP financial measures, including adjusted EBITDA and adjusted gross profit. These non-GAAP measures should be considered in addition to and not as a substitute for, or in isolation from, our GAAP results.

Operator: Historical performance and future estimates provided during this call exclude results from Total Security. Information regarding our non-GAAP financial measures, including a reconciliation of our non-GAAP financial measures to our most comparable historical GAAP financial measures, may be found on our Investor Relations website.

Speaker Change: Historical performance and future estimates provided during this call exclude results from total security.

System 1: Information regarding our non-GAAP financial measures, including a reconciliation of our non-GAAP financial measures to our most comparable historical GAAP financial measures, may be found on our investor relations website. I would now like to turn the conference call over to System1's co-founder and chief executive officer, Michael Blend.

Operator: Information regarding our non-GAAP financial measures, including a reconciliation of our non-GAAP financial measures, to our most comparable historical GAAP financial measures, may be found on our investor relations website.

Kyle Ostgaard: I would not like to turn the conference call over to System1's co-founder, Chief Executive Officer, Michael Bund.

Kyle Ostgaard: Information regarding our non-GAAP financial measures, including a reconciliation of our non-GAAP financial measures to our most comparable historical GAAP financial measures, may be found on our investor relations website. I would now like to turn the conference call over to System1's co-founder and chief executive officer, Michael Blend. Thanks, Kyle.

Kyle Ostgaard: I would not like to turn the conference call over to System1's co-founder, Chief Executive Officer, Michael Bund. Thanks, Kyle.

Michael Blend: Thanks, Kyle. Good afternoon, everyone, and thanks for joining us on our Q2 2024 System1 Earnings Call. We have a positive update for you today. I'm happy to announce that System1 delivered financial results that exceeded the high end of guidance across our key financial metrics. System1 delivered $95 million of revenue and $39 million of gross profit. Adjusted EBITDA was $9.9 million, which was 42% higher than the high end of our guidance range.

Michael Blend: Thanks, Kyle.

Michael Blend: Good afternoon to everyone, and thanks for joining us on our Q2-2024 System One earnings call. We have a positive update for you today. I'm happy to announce that System1 delivered financial results were to exceeded the high end of guidance across our key financial metrics. System1 delivered $95 million of revenue and $39 million of gross profit. Adjusted EBITDA was $9.9 million, which was 42% higher than the high end of our guidance range. These stronger results were driven by the positive returns from the continued investment in our ramp platform, very strong international growth, significant progress in our own and operated products, and a tight focus on reducing our backs.

Michael Blend: Thanks, Kyle. Good afternoon, everyone, and thanks for joining us on our Q2 2024 System1 Earnings Call.

Michael Blend: Good afternoon to everyone, and thanks for joining us on our Q2-2024 system one earnings call. We have a positive update for you today. I'm happy to announce that System1 delivered financial results were to exceeded the high end of guidance across our key financial metrics. System1 delivered $95 million of revenue and $39 million of gross profit. Adjusted EBITDA was $9.9 million, which was 42% higher than the high end of our guidance range. These stronger results were driven by the positive returns from the continued investment in our ramp platform, very strong international growth, significant progress in our own and operated products, and a tight focus on reducing our backs.

Michael Blend: We have a positive update for you today. I'm happy to announce that System1 delivered financial results which exceeded the high end of guidance across our key financial metrics.

System 1: So some one delivered $95 million a revenue and $39 million of gross profit. Adjusted EBITDA was $9.9 million, which was 42% higher than the high end of our guidance range.

Michael Blend: These strong results were driven by positive returns from the continued investment in our RAND platform, very strong international growth, significant progress in our owned and operated products, and a tight focus on reducing op-ex. Let's get into some of the financial details. I want to start with our owned and operated business.

System 1: These strong results were driven by the positive returns from the continued investment in our RAM platform, very strong international growth, significant progress in our owned and operated products, and a tight focus on reducing OpEx.

Michael Blend: Let's get into some of the financial details. I want to start with our own and operated business. Total owned and operated revenue was $77 million, flat year over year, and up 12% from last quarter. Adjusted gross profit was $27 million, up 22% from last quarter and flat year over year. Our quarterly growth was driven by 7% to financial growth and advertising spend, as well as a 21% quarter-over-quarter uptick in revenue from our own and operated products. We generated over 2 billion sessions on our own and operated properties, a 145% year over year increase, and a 66% quarter over quarter increase.

Michael Blend: Total owned and operated revenue was $77 million, flat year-over-year and up 12% from last quarter. Adjusted gross profit was $27 million, up 22% from last quarter and flat year-over-year. Our quarterly growth was driven by 7% sequential growth in advertising spend, as well as a 21% quarter-over-quarter uptick in revenue from our owned and operated product. We generated over 2 billion sessions on our owned and operated properties, a 145% year-over-year increase, and a 66% quarter-over-quarter increase.

System 1: Let's get into some of the financial details.

Michael Blend: Let's get into some of the financial details. I want to start with our own and operated business. Total owned and operated revenue was $77 million, flat year over year, and up 12% from last quarter. Adjusted gross profit was $27 million, up 22% from last quarter and flat year over year. Our quarterly growth was driven by 7% to financial growth and advertising spend, as well as a 21% quarter over quarter uptick in revenue from our own and operated products.

System 1: I want to start with our owned and operated business.

System 1: Total owned and operated revenue was $77 million dollars, flat year-over-year and up 12% from last quarter. Adjusted gross profit was $27 million dollars, up 22% from last quarter and flat year-over-year.

System 1: are quarterly growth is driven by 7% to quintual growth in advertising spend, as well as a 21% quarter of a quarter uptick and revenue from our own denoperated products.

System 1: We generated over 2 billion sessions on our owned and operated properties, a 145% year-over-year increase, and a 66% quarter-over-quarter increase.

Michael Blend: We generated over 2 billion sessions on our own and operated properties, a 145% year over year increase, and a 66% quarter over quarter increase. Spread was approximately 1.5% per session. Revenue procession was down nearly 60% year over year. The decline was driven by lower cost per click rates in the United States, as well as a bigger mixtip for international markets, which naturally have lower monetization rates in the United States. Now, international growth continues to be a highlight with international revenue presenting approximately 36% of owned and operated revenue.

Michael Blend: Spread was approximately 1.5% per session. Revenue procession was down nearly 60% year over year. The decline was driven by lower cost per click rates in the United States, as well as a bigger mixtip for international markets, which naturally have lower monetization rates in the United States. Now, international growth continues to be a highlight, with international revenue presenting approximately 36% of owned and operated revenue. This is up from 29% in the first quarter. Our continued international growth demonstrates the power of ramps' use of AI to very efficiently create content and advertising creatives in multiple languages. For example, when we see an opportunity like engineering jobs in India or checking accounts in the UK, we can very quickly move to capitalize on the opportunity.

Michael Blend: The spread was approximately one and a half cents per session, but revenue per session was down nearly 60% year over year. The decline was driven by lower cost per click rates in the United States, as well as a bigger mix shift towards international markets, which naturally have lower monetization rates in the United States. International growth continues to be a highlight, with international revenue presenting approximately 36% of owned and operated revenue. This is up from 29% in the first quarter.

System 1: Spread was approximately one and a half cents per session.

Speaker Change: Revenue procession was down nearly 60% year-over-year. The decline was driven by lower cost-per-click rates in the United States as well as a bigger mix shift towards international markets, which naturally have lower monetization rates in the United States.

Speaker Change: International growth continues to be a highlight with international revenue presenting approximately 36% of owned and operated revenue.

Michael Blend: Our continued international growth demonstrates the power of RAMP's use of AI to very efficiently create content and advertising creatives in multiple languages. For example, when we see an opportunity like engineering jobs in India or checking accounts in the UK, we can very quickly move to capitalize on the opportunity. Our owned and operated products had another strong quarter, with continued favorable organic traffic trends on both Coupon Follow and MapQuest. In May, Coupon Follow benefited from a Google search algorithm update.

Michael Blend: This is up from 29% in the first quarter. Our continued international growth demonstrates the power of ramps use of AI to very efficiently create content and advertising creatives in multiple languages. For example, when we see an opportunity like engineering jobs in India or checking accounts in the UK, we can very quickly move to capitalize on the opportunity. Our own and operated products had another strong quarter with continued favorable organic traffic trends on both coupon follow and math quest.

Speaker Change: This is from 29% in the first quarter. Our continued international growth has demonstrates the power of ramps used of AI to very efficiently create content and advertising creatives and multiple languages.

Speaker Change: For example, when we see an opportunity like engineering jobs in India or checking accounts in the UK, we can very quickly move the capitalized on the opportunity.

Michael Blend: Our own and operated products had another strong quarter with continued favorable organic traffic trends on both Coupon Follow and Math Quest. In May, coupon follow benefited from a Google Search algorithm update. The update was aimed at eliminating spammy coupon and promo code websites from Google search results. This was not only a long overdue and welcome change, but was also great for consumers as the Google index was becoming polluted with copycat coupon-related sites. Coupon Follow is one of the most useful coupon websites full of original content and thoroughly vetted promo codes, and Google appropriately gave Coupon Follow a positive boost.

Speaker Change: Our own denominator products had another strong quarter, with continued favorable organic traffic trends on both coupon follow and map quests.

Michael Blend: The update was aimed at eliminating spammy coupon and promo code websites from Google search results. This was not only a long overdue and welcome change, but it was also great for consumers, as the Google index was becoming polluted with copycat coupon-related sites. Coupon Follow is one of the most useful coupon websites, full of original content and thoroughly vetted promo codes.

Speaker Change: In May, Coupon Follow benefited from a Google Search Algorithm update. The update was aimed at eliminating spammy coupon and promo code websites from Google Search results.

Michael Blend: In May, coupon follow benefited from a Google search algorithm update. The update was aimed at eliminating spammy coupon and promo code websites from Google search results. This was not only a long overdue and welcome change, but was also great for consumers as the Google index was becoming polluted with copycat coupon-related sites. Coupon follow is one of the most useful coupon websites full of original content and thoroughly vetted promo codes and Google appropriately gave coupon follow a positive boost.

Speaker Change: This was not only long overdue and welcome change but was also great for consumers as the Google index was becoming polluted with copycat coupon related sites.

Speaker Change: Tupon Follows one of the most useful coupon websites, full of original content and thoroughly vetted promo codes, and Google appropriately gave Tupon Follow a positive boost.

Michael Blend: And Google appropriately gave Coupon Follow a positive boost. As a result, coupon followers saw a significant increase in side traffic and corresponding revenue. June Organic Sessions were up nearly 80% year over year, and on some days, Coupon Follow is the most trafficked coupon site in the world. On MapQuest, we saw a similar story, although not as dramatic.

Michael Blend: As a result, coupon follow saw a significant increase in site traffic and corresponding revenue. June organic sessions were at nearly 80% year-over-year, and on some days Coupon Follow is the most traffic coupon site in the world. While math quest results similar story, although not as dramatic, Q2 organic visits were at 10% year-over-year. We've been very focused on improving the customer experience in both math quest and coupon follow, and it's gratifying to see that worth paying dividends with increased users and revenue.

Speaker Change: As a result, Coupon Follow saw a significant increase in side traffic and corresponding revenue. June organic sessions were up nearly 80% year-over-year, and on some days Coupon Follow is the most trafficked coupon site in the world.

Michael Blend: As a result, coupon follow saw a significant increase in site traffic and corresponding revenue. June organic sessions were at nearly 80% year-over-year, and on some days coupon follow is the most traffic coupon site in the world. While math quest results similar story, although not as dramatic, Q2 organic visits were at 10% year-over-year, we've been very focused on improving the customer experience in both math quest and coupon follow, and it's gratifying to see that worth paying dividends with increased users and revenue.

Michael Blend: Q2 Organic Business, we're up 10% year-over-year. We've been very focused on improving the customer experience on both MapQuest and CouponFollow, and it's gratifying to see that we're paying dividends with increased users and revenue. Our start page, our private search engine, also had a very productive quarter. We launched our private browser app and have seen over 50,000 downloads with significantly positive user feedback, including over 2,000 five-star ratings to date across our iOS and Android app users.

Speaker Change: On MapQuest we saw a similar story, although not as dramatic.

Speaker Change: Q2 Organic Business Rep 10% year over year.

Speaker Change: We've been very focused on improving the customer experience in both math, question, coupon, follow, and it's gratifying to see that we're paying dividends for the increased users in revenue.

Michael Blend: Start Page, our private search engine, also had a very productive quarter. We launched our private browser app and have seen over 50,000 downloads with significantly positive user feedback, including over 2,000 five-star ratings to date across our iOS and Android app users. We have high hopes for the browsers for our loyal start page users, and we also hope to be able to properly market them to new users in the coming quarters.

Speaker Change: Starpage, our private search engine, also had a very productive quarter. We launched our private browser app and have seen over 50,000 downloads with significantly positive user feedback, including over 2,000 five-star ratings to date across our iOS and Android app users.

Michael Blend: Start page, our private search engine also had a very productive quarter. We launched our private browser app and have seen over 50,000 downloads with significantly positive user feedback, including over 2,000 five star ratings to date across our iOS and Android app users. We have high hopes for the browsers for our loyal start page users, and we also hope to be able to properly market them to new users in the coming quarters.

Michael Blend: We have high hopes for the browsers for our loyal StarPage users, and we also hope to be able to profitably market them to new users in the coming quarters. Now, let's move on to our partner network business. Partner network revenue was $17 million, and adjusted gross profit was $13 million. Revenue decreased 12% year over year, but it was up 8% subsequently. Adjusted gross profit decreased 9% year over year but was up 24% sequentially.

Speaker Change: We have high hopes for the browsers for our loyal StarPage users, and we also hope to be able to profitably market them to new users in the coming quarters.

Michael Blend: Now let's move on to our partner network business. Partner network revenue was $17 million and adjusted gross profit was $13 million. Revenue decreased 12% year-over-year but was up 8% sequentially. Adjusted gross profit decreased 9% year-over-year but was up 24% sequentially. Total sessions were $2 billion, up 203% year-over-year and up 33% sequentially, as we continue to add partners to the network. Partner network RPS declined 71% year-over-year and 19% quarter-over-quarter. The higher sessions and lower RPS were driven by the same trends we saw in our own and operated business. Lower pricing in the United States and a bigger makeshift to international markets.

Michael Blend: Total sessions were 2 billion, up 203% year over year and up 33% sequentially as we continue to add partners to the network. However, partner network RPS declined 71% year over year and 19% quarter over quarter. The higher sessions and lower RPS were driven by the same trends that we saw in our owned and operated business, lower pricing in the United States and a bigger mixed shift to international markets. Despite the decline in revenue, our partner network business continues to show solid demand from the market. In Q2, our total active partners grew 19% from the first quarter to almost 300 partners. Average revenue per partner decreased sequentially by 9% as new partners onboarded this quarter continue to scale up.

Speaker Change: Now let's move on to our partner network business.

Michael Blend: Now let's move on to our partner network business. Partner network revenue was $17 million and adjusted gross profit was $13 million. Revenue decreased 12% year-over-year but was up 8% sequentially. Adjusted gross profit decreased 9% year-over-year but was up 24% sequentially. Total sessions were $2 billion up 203% year-over-year and up 33% sequentially, as we continue to add partners to the network. Partner network RPS declined 71% year-over-year in 19% quarter-over-quarter. The higher sessions and lower RPS were driven by the same trends we saw in our own and operated business. Lower pricing in the United States and a bigger makeshift to international markets.

Speaker Change: Harder network revenue was $17 million and ingest the gross profit was $13 million.

Speaker Change: Revenue decreased 12% year over year, but was up 8% sequentially.

Speaker Change: Adjusted gross profit decreased 9% year-over-year but was up 24% sequentially.

Speaker Change: Total sessions were 2 billion up 203% year over year and up 33% sequentially, as we continue to add partners to the network.

Speaker Change: Partner network RPS declined 71% year-over-year and 19% quarter-over-quarter. The higher sessions and lower RPS were driven by the same trends that we saw in our owned and operated business. Lower pricing in the United States and a bigger mixed shift to international markets.

Michael Blend: Despite the decline in revenue, our partner network business continued to show solid demand from the market. In Q2, our total active partners grew 19% from the first quarter to almost 300 partners. Average revenue per partner decreased sequentially by 9% as new partners onboarded this quarter continue to scale up. At the end of Q2, we have 58 scale partners in line with the first quarter. As a reminder, we consider a platform customer to be a scale partner when they are generating at least $50,000 for revenue per quarter on ramp.

Speaker Change: Despite the decline in revenue, our partnered network business continued to show solid demand from the market. A Q2 are total active partners grew 19% from the first quarter to almost 300 partners.

Speaker Change: Average revenue per partner decreased sequentially by 9% as new partners onboarded this quarter continue to scale up.

Michael Blend: At the end of Q2, we had 58 scaled partners, in line with the first quarter. As a reminder, we consider a platform customer to be a scaled partner when they are generating at least $50,000 of revenue per quarter on RAM. Before I hand things off to Tridive, I wanted to outline our key initiatives that we expect to drive System1's growth over the next few years. First, we are continuing to invest in our RAMP platform in three key areas. By side efficiency is driven by AI.

Speaker Change: As the end of Q2 we have 58 scale partners in line with the first quarter. As a reminder we consider a platform customer to be a scale partner when they are generating at least $50,000 revenue per quarter on ramp.

Michael Blend: Before I hand things off to Tridia, I wanted to outline our key initiatives that we expect to drive System1's growth over the next few years. First, we are continuing to invest in our ramp platform in three key areas. Bicite efficiency is driven by AI. Second, it's opening up our bicite capabilities to our partners, and third is launching new products. Let me take this opportunity to walk you through each of these in more detail. First, let's talk about AI. As I mentioned in the last couple of quarters, we've been hard at work integrating AI capabilities into Ramp.

Michael Blend: Second, is opening up our BISAC capabilities to our partners, and third, is launching new products. Let me take this opportunity to walk you through each of these in more detail.

Tridive: Before I hand things off to Tridive, I wanted to outline our key initiatives that we expect to drive System1's growth over the next few years.

Tridive: First, we are continuing to invest in our RAMP platform in three key areas.

Tridive: Buy side efficiency is driven by AI. Second is opening up our buy side capabilities to our partners. And third is launching new products.

Michael Blend: First, let's talk about AI. As I mentioned in the last couple quarters, we've been hard at work integrating AI capabilities into RAM. AI enables us to create advertising campaigns and associated content at a scale at least an order of magnitude greater than we could have in the past. This scale, combined with our improved bidding and optimization algorithms, has enabled our owned and operated advertising business to reach a size only a handful of other companies can match. Maintaining RAMP and constantly adding improvements requires a large engineering and product team laser-focused on AI integration, machine learning, optimizations, and speed.

Tridive: Let me take this opportunity to walk you through each of these in more detail.

Tridive: First, let's talk about AI.

Michael Blend: First, let's talk about AI. As I mentioned in the last couple of quarters, we've been hard to work integrating AI capabilities into ramp. AI enables us to create advertising campaigns and associated content at a scale at least in order of magnitude greater than we could have in the past. This scale combined with our improved bidding and optimization algorithms has enabled our own and operated advertising business to reach a size only a handful of other companies can match.

Tridive: As I mentioned in the last couple quarters, we've been hard at work integrating AI capabilities into RAMP. AI enables us to create advertising campaigns and associated content at a scale at least an order of magnitude greater than we could have in the past.

Michael Blend: AI enables us to create advertising campaigns and associated content at a scale at least in order of magnitude greater than we could have in the past. This scale, combined with our improved bidding and optimization algorithms, has enabled our own and operated advertising business to reach a size only a handful of other companies can match. Maintaining ramp and constantly adding improvement requires a large engineering impact team, laser focused on AI integration, machine learning, optimizations, and speed. Traditioner and network partners to rely on System1 solely for self-side monetization. They have their own bicite capability to purchase traffic, and they rely on System1 to monetize that traffic.

Tridive: This scale combined with our improved bidding and optimization algorithms has enabled our owned and operated advertising business to reach a size only a handful of other companies can match.

Tridive: Maintaining ramp and constantly adding improvements requires a large engineering and public team. Laser focused on AI integration, machine learning, optimizations and speed.

Michael Blend: Maintaining ramp and constantly adding improvement requires a large engineering impact team, laser focused on AI integration, machine learning, optimizations, and speed. Traditioner and network partners to rely on System1 solely for self-side monetization. They have their own bicite capability to purchase traffic, and they rely on System1 to monetize that traffic. This strategy works well for many partners after a certain level, but typically partners cap out in size as their own side bicite capabilities and technology hit certain limitations.

Michael Blend: Traditionally, our network partners have relied on System1 solely for sell-side monetization. They have their own buy-side capabilities to purchase traffic, and they rely on System1 to monetize that traffic. This strategy works well for many partners up to a certain level, but typically partners cap out in size as their own side-by-side capabilities and technology hit certain limitations. Simply put, it is very difficult to buy traffic at the scale that System1

Tridive: Traditionally, our network partners have relied on System1 solely for sell-side monetization. They have their own buy-side capabilities to purchase traffic, and they rely on System1 to monetize that traffic.

Michael Blend: This strategy works well for many partners after a certain level, but typically partners cap out in size as their own side bicite capabilities and technology hit certain limitations. Simply put, it is very difficult to buy traffic of the scale System1 does. It requires a sophisticated bicite platform, and while our network partners are highly skilled at buying traffic, they typically just don't have a large enough team to scale beyond a certain point. By opening up the System1 bicite platform for our partners, we expect to enable many of them to scale far beyond what they currently do.

Tridive: This strategy works well for many partners after a certain level, but typically partners cap out in size as their own side by say capability and technology, his certain limitations.

Michael Blend: It requires a sophisticated buy-side platform, and while our network partners are highly skilled at buying traffic, they typically just don't have a large enough team to scale beyond a certain point. By opening up the System1 BISAC platform to our partners, we expect to enable many of them to scale far beyond what they currently do. In addition to better buying capabilities, we are also integrating new monetization products into RAM. Each of these products follows a similar pattern.

Tridive: Simply put, it is very difficult to buy traffic at the scale System1 does. It requires a sophisticated buy-side platform, and while our network partners are highly skilled at buying traffic, they typically just don't have a large enough team to scale beyond a certain point.

Michael Blend: Simply put, it is very difficult to buy traffic of the scale System1 does. It requires a sophisticated bicite platform, and while our network partners are highly skilled at buying traffic, they typically just don't have a large enough team to scale beyond a certain point. By opening up the System1 bicite platform for our partners, we expect to enable many of them to scale far beyond what they currently do. In addition to better buying capabilities, we also are integrating new monetization products into ramp.

Tridive: By opening up the System1 BISAC platform to our partners, we expect to enable many of them to scale far beyond what they currently do.

Michael Blend: In addition to better buying capabilities, we also are integrating new monetization products into Ramp. Each of these products follows a similar pattern. We build the product feature or enhance it into Ramp. We utilize our own and operated properties, and our own team to figure out how to scale the product. And once we have all the teams worked out, we open it up to partners. Over the last year, our focus has been on launching and scaling a new product offering by Google called Related Search on Content. This product requires sending high-quality traffic to content very highly tailored to specific advertising verticals.

Tridive: In addition to better buying capabilities, we are also integrating new monetization products into RAMP.

Michael Blend: We build the product feature or enhancement into RAMP. We utilize our owned and operated properties and our own team to figure out how to scale the product. And once we have all the kinks worked out, we open it up to partners.

Tridive: Each of these products follows a similar pattern. We build the product feature or enhancement into RAMP. We utilize our owned and operated properties and our own team to figure out how to scale the product. And once we have all the kinks worked out, we open it up to partners.

Michael Blend: Each of these products follows a similar pattern. We build the product feature or enhance it into ramp. We utilize our own and operated properties, and our own team to figure out how to scale the product. And once we have all the teams worked out, we open it up to partners. Over the last year, our focus has been on launching and scaling a new product offering by Google called Related Search on Content.

Michael Blend: Over the last year, our focus has been on launching and scaling a new product offering by Google called Related Search on Content. This product requires sending high-quality traffic to content very highly tailored to specific advertising verticals, while Google Advertising is integrated directly into the content.

Tridive: Over the last year our focus has been launching and scaling a new product offering by Google called Related Church on Content.

Michael Blend: This product requires sending high quality traffic to content very highly tailored to specific advertising verticals. Google advertising has been integrated directly into the content. While similar to Google related products we have worked with in the past, the new product requires System1 to develop new technology to ensure we could scale it while maintaining very high quality. It took us some time, but now we're at the point where we're confident we have the technology and processes in place to scale this new product.

Tridive: This product requires sending high quality traffic to content very highly tailored to specific advertising verticals.

Michael Blend: Google advertising has been integrated directly into the content. While similar to Google-related products we have worked with in the past, the new product requires System1 to develop new technology to ensure we could scale it while maintaining very high quality. It took us some time, but now we're at the point where we're confident we have the technology and processes in place to scale this new product. System1 is generating over seven figures of monthly revenue from the product. Google is very pleased with the results, and we now are in the process of rolling it out to partners.

Michael Blend: While similar to Google-related products we've worked with in the past, the new product required System1 to develop new technology to ensure we could scale it while maintaining very high quality. It took us some time, but now we're at the point where we're confident we have the technology and processes in place to scale this new product. System1 is generating over seven figures of monthly revenue from the product, and Google is very pleased with the results.

Tridive: Google advertising is an integrated directly into the content.

Tridive: While similar to Google-related products we have worked with in the past, the new product requires System1 to develop new technology to ensure we can scale it while maintaining very high quality.

Tridive: It took us some time, but now we're here at the point where we're confident we have the technology and processes in place to scale this new product.

Tridive: System1 is generating over seven figures of monthly revenue from the product. Google is very pleased with the results and we now are in the process of rolling it out to partners. So we've done what we always do, use our own and operated scale to explore and then scale a new market and then offer our new capabilities to our partners.

Michael Blend: System1 is generating over seven figures of monthly revenue from the product. Google is very pleased with the results, and we now are in the process of rolling it out to partners. Partners. So, we've done what we always do. Use our own and operated scale to explore and then scale a new market and then offer our new capabilities to our partners. The next two areas we are planning to invest in are two segments we currently are under indexed, shopping and subscription products.

Michael Blend: And we are now in the process of rolling it out to partners. So we've done what we always do, used our owned and operated scale to explore and then scale a new market and then offer our new capabilities to our partners. The next two areas we are planning to invest in are two segments we currently are under-indexed for, shopping and subscription products. Both of these areas are huge consumer markets where we are currently not scaled. We have slightly different approaches for each of them.

Michael Blend: Partners. So, we've done what we always do. Use our own and operated scale to explore and then scale a new market and then offer our new capabilities to our partners.

Michael Blend: The next two areas we are planning to invest in are two segments we currently are under indexed: shopping and subscription products. Both of these areas are huge consumer markets where we currently are not scaled. We have slightly different approaches for each of them. For shopping, we likely will partner with large shopping focus advertising networks, similar to our current approach of partnering with Google, Bing, and Yahoo. We are still exploring these partnerships, but we believe partnering with networks is a better option than attempting to build out our own direct advertising network in commerce.

Tridive: The next two areas we are planning to invest in are two segments we currently are under-indexed, shopping and subscription products.

Tridive: Both of these areas are huge consumer markets where we currently are not skilled. We have slightly different approaches for each of them.

Michael Blend: Both of these areas are huge consumer markets where we currently are not scaled. We have slightly different approaches for each of them. For shopping, we likely will partner with large shopping focus advertising networks, similar to our current approach of partnering with Google, Bing and Yahoo. We are still exploring these partnerships, but we believe partnering with networks is a better option than attempting to build out our own direct advertising network in commerce.

Michael Blend: For shopping, we likely will partner with large, shopping-focused advertising networks, similar to our current approach of partnering with Google, Bing, and Yahoo. We are still exploring these partnerships, but we believe partnering with networks is a better option than attempting to build out our own direct advertising network in commerce. We might take a different approach with subscriptions.

Tridive: For shopping, we likely will partner with large shopping-focused advertising networks, similar to our current approach of partnering with Google, Bing, and Yahoo.

Tridive: We are still exploring these partnerships, but we believe partnering with networks is a better option than attempting to build out our own direct advertising network in commerce.

Michael Blend: We might take a different approach with subscription. We already operate Q successful subscription products associated with Matt Crest, and we have shown in the past that we know how to scale subscription into the hundreds of millions of dollars of revenue. We also already operate businesses and some huge consumer categories that could be right for subscription. We operate search engines, we have browsers that we run, we have big mapping services, and we're also big in shopping. So, while we will consider partnering with existing subscription businesses, we also are exploring and building out our own products. The good thing is that RAM will support these efforts with only minimal increase in optics or R&D.

Michael Blend: We already operate two successful subscription products associated with MapQuest, and we have shown in the past that we know how to scale a subscription into hundreds of millions of dollars of revenue. We also already operate businesses in some huge consumer categories that could be right for a subscription. We operate search engines, we have browsers that we run, we have big mapping services, and we're also big in shopping. So while we will consider partnering with existing subscription businesses, we are also exploring building out our own product.

Tridive: We might take a different approach with subscription. We already operate two successful subscription products associated with mapcrest. And we have shown in the past that we know how to scale subscription into the hundreds of million dollars of revenue.

Tridive: We also already operate businesses in some huge consumer categories that could be right for subscription. We operate search engines, we have browsers that we run, we have big mapping services, and we're also big in shopping.

Tridive: So while we will consider partnering with existing subscription businesses, we also are exploring building out our own products.

Michael Blend: So, while we will consider partnering with existing subscription businesses, we also are exploring and building out our own products. The good thing is that RAM will support these efforts with only minimal increase in optics or R&D. We built RAM to be very flexible in supporting new buy side and sell side capabilities, and plugging in these new products will be pretty straightforward.

Michael Blend: The good thing is that RAMP will support these efforts with only a minimal increase in OPEX or R&D. We built RAN to be very flexible in supporting new buy-side and sell-side capabilities, and plugging in these new products will be pretty straightforward.

Speaker Change: The good thing is that ramp will support these efforts with only minimal increase in optics or R&D. We don't ramp to be very flexible in supporting new bi-side and cell-side capabilities, and plugging in these new products will be pretty straightforward.

Michael Blend: We built RAM to be very flexible in supporting new buy-side and sell-side capabilities, and plugging in these new products will be pretty straightforward.

Michael Blend: I also wanted to take a few minutes talking about our organic products specifically, which traditionally have focused our earnings comments on our marketing-driven businesses, and our ability to scale our overall business by purchasing traffic. Our marketing can drive very fast scale in our business, but if we saw in 2022 and parts of 23, it can also cause volatility. Now, in contrast, our product businesses are comprised of utilities that consumers seek out and use every day. For example, Coupon Follow helps people find promo codes that save the money when they're shopping. Startpage enables its users to search that we have in privacy.

Michael Blend: I also wanted to take a few minutes talking about our organic products specifically. We traditionally have focused our earnings comments on our marketing-driven businesses and our ability to scale our overall business by purchasing traffic. And marketing can drive very fast scale in our business. But, as we saw in 2022 and parts of 23, it can also cause volatility. In contrast, our product businesses are comprised of utilities that consumers seek out and use every day. For example, Coupon Follow helps people find promo codes that save them money when they're shopping. Startpage enables its users to search the web in privacy.

Tridive: I also want to take a few minutes talking about our organic products specifically. We traditionally have focused our earnings comments on our marketing-driven businesses and our ability to scale our overall business by purchasing traffic.

Michael Blend: I also wanted to take a few minutes talking about our organic products specifically, which traditionally have focused our earnings comments on our marketing driven businesses, and our ability to scale our overall business by purchasing traffic. Our marketing can drive very fast scale in our business, but if we saw in 2022 and parts of 23, it can also cause volatility. Now, in contrast, our product businesses are comprised of utilities that consumers seek out and use every day.

Tridive: Marketing can drive very fast scale in our business, but as we saw in 2022 and parts of 2023, it can also cause volatility.

Tridive: Now in contrast, our product businesses are comprised of utilities that consumers seek out and use every day.

Tridive: For example, Coupon Follow helps people find promo codes that save them money when they're shopping.

Michael Blend: For example, coupon follow helps people find promo codes that save the money when they're shopping. Startpage enables its users to search that we have in privacy. MapQuest provides mapping for people who prefer it over Google or Apple Maps, and Roll Warrior helps delivery drivers shop off packages more efficiently. And each one of these properties is supported by related products, whether it be our sent-ly browser extension, which is part of coupon follow, our startpage private browsers, or the MapQuest and Roll Warrior mobile apps.

Michael Blend: MapQuest provides mapping for people who prefer it over Google or Apple Maps, and Role Warrior helps delivery drivers drop off packages more efficiently. And each one of these products is supported by related products, whether it be our Sently browser extension, which is part of Coupon Follow, our StarPage private browsers, or the MapQuest and Road Warrior mobile apps. Because these products do not require marketing to generate usage, they're distinct from our marketing-driven businesses in two primary ways.

Michael Blend: MapQuest provides mapping for people who prefer it over Google or Apple Maps, and Roll Warrior helps delivery drivers shop off packages more efficiently. And each one of these properties is supported by related products, whether it be our Sent-ly browser extension, which is part of Coupon Follow, our Startpage private browsers, or the MapQuest and Roll Warrior mobile apps. Because these products do not require marketing to generate usage, they are distinct from our marketing-driven businesses in two primary ways. First, the revenues are more consistent and less tied to shifts in the overall digital advertising market. Second, they are much higher margin businesses as we spend a much lower percentage of our revenues on marketing them.

Tridive: StarPage enables its users to search the web and privacy. MapQuest provides mapping for people who prefer to over Google or Apple Maps. And Roll Warrior helps delivery drivers stop off packages more efficiently.

Tridive: And each one of these properties is supported by related products, whether it be our Sently Browser Extension, which is part of Coupon Follow, our StarPage Private Browsers, or the MapQuest and Road Warrior mobile apps.

Tridive: Because these products do not require marketing to generate usage, they are distinct from our marketing-driven businesses in two primary ways. First, the revenues are more consistent and less tied to shifts in the overall digital advertising market.

Michael Blend: Because these products do not require marketing to generate usage, they are distinct from our marketing driven businesses in two primary ways. First, the revenues are more consistent and less tied to shifts in the overall digital advertising market. Second, they are much higher margin businesses as we spend a much lower percentage of our revenues are marketing them.

Michael Blend: First, the revenues are more consistent and less tied to shifts in the overall digital advertising market. Second, they are much higher-margin businesses as we spend a much lower percentage of our revenues on marketing them. The dynamics of these product lines are different enough that we plan to begin presenting them independently from our marketing businesses.

Tridive: Second, they are much higher margin businesses as we spend a much lower percentage of our revenues on marketing them.

Michael Blend: But dynamics of these product lines are different enough that we plan to begin presenting them independently from our marketing businesses. Treaty will go into more detail about this reporting change in his remarks. Overall, I'm very pleased with our performance in the second quarter. Our System One team has been executing very well over the last year, and it's gratifying to see that execution starting to show up in our financial performance. We aren't yet where we want to be, but things are moving in the right direction.

Tridive: The dynamics of these product lines are different enough that we plan to begin presenting them independently from our marketing businesses.

Michael Blend: But dynamics of these product lines are different enough that we plan to begin presenting them independently from our marketing businesses.

Michael Blend: Tridi will go into more detail about this reporting change in his remarks. Overall, I'm very pleased with our performance in the second quarter. Our System1 team has been executing very well over the last year, and it's gratifying to see that execution starting to show up in our financial performance. We aren't yet where we want to be, but things are moving in the right direction.

3D: 3D will go into more detail about the supporting change in his remarks.

Michael Blend: Treaty will go into more detail about this reporting change in his remarks.

3D: Overall, I'm very pleased with our performance in the second quarter. Our System1 team has been executing very well over the last year, and it's gratifying to see that execution starting to show up in our financial performance. We aren't yet where we want to be, but things are moving in the right direction.

Michael Blend: Overall, I'm very pleased with our performance in the second quarter. Our system one team has been executing very well over the last year, and it's gratifying to see that execution starting to show up in our financial performance. We aren't yet where we want to be, but things are moving in the right direction.

Michael Blend: To close my section of our call, I would like to once again remind you that management is the largest shareholder group in System1 and our interests are very highly aligned with yours. We appreciate your overwhelming support of our new equity plan tied to hitting EBITDA targets, and we intend to hit those targets. As our business gets back in the growth mode, we're excited to have you along for the ride.

Michael Blend: To close my section of our call, I would like to once again remind you that management is the largest shareholder group in System1, and our interests are very highly aligned with yours. We appreciate your overwhelming support of our new equity plan tied to hitting EBITDA targets, and we intend to hit those targets. As our business gets back into growth mode, we're excited to have you along for the ride. I will now hand things over to Tridi to discuss our quarterly results in more detail, as well as our Q3 guidance. Take it away, Tridive!

3D: The closed-month section of our call, I would like to once again remind you that management is the largest shareholder group in system 1, and our interests are very highly aligned with yours.

Michael Blend: To close my section of our call, I would like to once again remind you that management is the largest shareholder groups in System1 and our interests are very highly aligned with yours. We appreciate your overwhelming support of our new equity plan tied to hitting EBITDA targets and we intend to hit those targets. As our business gets back in the growth mode, we're excited to have you along for the ride.

3D: We appreciate your overwhelming support of our new equity plan tied to hitting EBITDA targets and we intend to hit those targets.

Michael Blend: And I'll hand things out to Tridivesh Kidambi to discuss our quarterly results in more detail, as well as our Q3 guidance.

3D: As our business gets back into growth mode, we're excited to have you along for the ride.

3D: I now hand things off to Tridive to discuss our quarterly results in more detail, as well as our Q3 guidance. Take it away, Tridive.

Michael Blend: And I'll hand things out to Tridivesh Kidambi to discuss our quarterly results in more detail as well as our Q3 guidance. Take it away, Tridivesh Kidambi. Thanks, Michael.

Tridivesh Kidambi: Take it away, Tridivesh Kidambi.

Tridivesh Kidambi: Thanks, Michael. We are pleased with their second quarter performance, the sequential growth trends, highlighted by quarter over quarter, adjusted growth profit growth to 24 percent, and $9.9 million of adjusted EBITDA versus $400,000 in Q1. While the year-over-year metrics remain challenged due to the sequential step-downs we saw an overall advertising demand going from Q2 to Q3 of last year, we significantly narrowed our year-over-year declines across key financial metrics, and even grew adjusted EBITDA, which has driven by our cost-tending initiatives of the past several quarters, with operating expenses down 16 percent year-over-year.

Tridivesh Kidambi: Thanks, Michael. We are pleased with our second quarter performance and sequential growth trends, highlighted by quarter-over-quarter adjusted gross profit growth of 24% and $9.9 million of adjusted EBITDA versus $400,000 in Q1. While the year-over-year metrics remain challenged due to the sequential step-downs we saw in overall advertising demand going from Q2 to Q3 of last year, we significantly narrowed our year-over-year declines across key financial metrics and even grew adjusted EBITDA, which was driven by our cost-cutting initiatives of the past several quarters, with operating expenses down 16% year-over-year. Now on to our specific operating results.

Tridive: Thanks, Michael. We are pleased with our second quarter performance and sequential growth trends, highlighted by quarter-over-quarter adjusted gross profit growth at 24% and $9.9 million of adjusted EBITDA versus $400,000 in Q1.

Tridivesh Kidambi: We are pleased with their second quarter performance, the sequential growth trends, highlighted by quarter over quarter, adjusted growth profit growth to 24 percent, and $9.9 million of adjusted EBITDA versus $400,000 in Q1. While the year-over-year metrics remain challenged due to the sequential step-downs we saw an overall advertising demand going from Q2 to Q3 of last year, we significantly narrowed our year-over-year declines across key financial metrics, and even grew adjusted EBITDA, which has driven by our cost-tending initiatives of the past several quarters with operating expenses down 16 percent year-over-year.

Speaker Change: While the year of a year metrics for main challenge due to the sequential step downs we saw an overall advertising demand going from Q2 to Q3 at last year.

Speaker Change: We significantly narrowed our year-over-year declines across key financial metrics, and even grew a dress that even though, which was driven by our cost-tending initiatives or the past several quarters, with operating expenses down 16% year-over-year.

Tridivesh Kidambi: Now onto our specific operating results. Q2 revenue was $94.6 million, representing a 2 percent year-over-year decline and sequential increase of 11 percent. Revenue was $4.6 million, about the top end of our Q2 revenue guidance that we provided in May. Owned and operated revenue with $77.4 million, flat year-over-year, and up 12 percent sequentially. Network revenue was $17.2 million, down 12 percent year-over-year, but up 8 percent sequentially. Adjusted gross profit was $38.8 million, down 4 percent year-over-year, but up 24 percent sequentially. We significantly narrowed our year-over-year decline, which was 18 percent in Q1. Adjusted gross profit was above the high end of guidance by $3.8 million.

Tridivesh Kidambi: Q2 revenue was $94.6 million, representing a 2% year-over-year decline and a sequential increase of 11%. Revenue was $4.6 million above the top end of our Q2 revenue guidance that we provided in May. Owned and operated revenue was $77.4 million, flat year-to-year, and up 12% sequentially. Network revenue was $17.2 million, down 12% year-over-year, but up 8% sequentially. Adjusted gross profit was $38.8 million, down 4% year-over-year but up 24% sequentially. We significantly narrowed our year-over-year decline, which was 18% in Q1.

Tridive: Now on to our specific operating results.

Tridivesh Kidambi: Now onto our specific operating results. Q2 revenue was $94.6 million, representing a 2 percent year-over-year decline and sequential increase of 11 percent. Revenue was $4.6 million about the top end of our Q2 revenue guidance that we provided in May. Owned an operated revenue with $77.4 million, flat year-over-year, and up 12 percent sequentially. Network revenue was $17.2 million, down 12 percent year-over-year, but up 8 percent sequentially. Adjusted gross profit was $38.8 million, down 4 percent year-over-year, but up 24 percent sequentially.

Tridive: Q2 revenue was $94.6 million, representing a 2% year-over-year decline and sequential increase of 11%. Revenue was $4.6 million above the top end of our Q2 revenue guidance that we provided in May.

Tridive: Owned and operated revenue was $77.4 million, flat year-to-year, and up 12% sequentially.

Tridive: Network revenue was $17.2 million, down 12% year-over-year, but up 8% sequentially.

Tridive: Adjusted gross profit was $38.8 million, down 4% year-over-year, but up 24% sequentially. We significantly narrowed our year-over-year decline, which was 18% in Q1. Adjusted gross profit was above the high end of guidance by $3.8 million.

Tridivesh Kidambi: Adjusted gross profit was above the high end of guidance by $3.8 million. Revenue less advertising spend for our owned and operated advertising segment grew 22% sequentially to $27.4 million. Network Revenue Less Agency Fees was up 24% to $13.5 million versus the prior quarter. Owned and operated cost per session and revenue per session were both down 2 cents sequentially to 2 cents and 4 cents, respectively. In the network advertising business, RPS was one penny per session.

Tridivesh Kidambi: We significantly narrowed our year-over-year decline which was 18 percent in Q1. Adjusted gross profit was above the high end of guidance by $3.8 million. Revenue let's advertising spend for our own and operated advertising segment grew 22 percent sequentially to $27.4 million. Network revenue let's agency fees was up 24 percent to $13.5 million versus the prior quarter. Owned an operated cost procession and revenue procession were both down 2 cents sequentially to 2 cents and 4 cents respectively. On the network advertising business, RPS was one penny procession.

Tridivesh Kidambi: Revenue, let's advertising spend for our own and operated advertising segment grew 22 percent sequentially to $27.4 million. Network revenue, less agency fees, was up 24 percent to $13.5 million versus the prior quarter. Owned an operated cost procession and revenue procession were both down 2 cents sequentially to 2 cents and 4 cents, respectively. On the network advertising business, RPS was one penny procession. Most importantly, total sessions processed by Ramp in the most recent quarter was 4.06 billion, up 47 percent sequentially and 171 percent year-over-year. As Michael mentioned during his remarks, these RPS and CPS trends were primarily driven by growth in lower RPS and CPS international traffic sources.

Tridive: Revenue less advertising spend for our own and operated advertising segment for 22% sequentially to $27.4 million. Network revenue less agency fees is up 24% to $13.5 million versus the prior quarter.

Tridive: Owned and operated cost per session and revenue per session were both down two cents sequentially to two cents and four cents respectively.

Tridivesh Kidambi: Most importantly, total sessions processed by RAMP in the most recent quarter were 4.06 billion, up 47% sequentially and 171% year over year. As Michael mentioned during his remarks, these RPS and CPS trends were primarily driven by growth in lower RPS and CPS international traffic. I wanted to take some time here to focus on our own and operated products, which today are primarily composed of our Coupon Follow, MapQuest, and StartPage businesses. A key feature of all these businesses is that they are not dependent on paid advertising to drive traffic and revenue but instead primarily rely on organic traffic, such as direct navigation, unpaid referrals, and search engines.

Tridive: On the network advertising business, RPS was one penny per session.

Tridive: Most importantly, total sessions processed by ramp in the most recent quarter was 4.06 billion, up 47% sequentially and a 170-1% year of a year.

Tridivesh Kidambi: Most importantly, total sessions processed by ramp in the most recent quarter was 4.06 billion, up 47 percent sequentially and 171 percent year-over-year. As Michael mentioned during his remarks, these RPS and CPS trends were primarily driven by growth in lower RPS and CPS international traffic sources.

Tridive: As Michael mentioned during his remarks, these RPS and CPS trends were primarily driven by growth in lower RPS and CPS international traffic sources.

Tridivesh Kidambi: I wanted to take some time here to focus on our own and operated products, which today are primarily composed of our coupon follow, map quests, and start page businesses. A key feature of all these businesses is that they are not dependent on paid advertising to drive traffic and revenue, and instead primarily rely on organic traffic, such as direct navigation, unpaid referrals, and search engines. As a result, they provide us advice to personification versus our paid advertising business and the volatility that comes with. with it. Also, while they comprise a smaller portion of our revenue, 19% of total revenue and 23% of owned and operated revenue in Q2, they make up a more significant portion of our gross profit.

Speaker Change: I wanted to take some time here to focus on our own and operated products which today are primarily composed of our Coupon Follow, MapQuest, and Startpage businesses.

Speaker Change: A key feature of all these businesses is that they are not dependent on paid advertising to drive traffic and revenue, and instead primarily rely on organic traffic, such as direct navigation, unpaid referrals, and search engines.

Tridivesh Kidambi: As a result, they provide us with dice diversification versus our paid advertising business and the volatility that comes with it. Also, while they comprise a smaller portion of our revenue, 19% of total revenue, and 23% of owned and operated revenue in Q2, they make up a more significant portion of our gross profit. 42% of total adjusted gross profit is 63% of owned and operated adjusted gross profit in Q2. For these businesses, revenue was up 17%, and gross profit was up 18% year-over-year in Q2.

Speaker Change: As a result, they provide us some nice diversification versus our paid advertising business and the volatility that comes with it.

Speaker Change: Also, while they comprise a smaller portion of our revenue.

Tridivesh Kidambi: Also, while they comprise a smaller portion of our revenue, 19% of total revenue and 23% of owned and operated revenue in Q2, they make up a more significant portion of our gross profit. 42% of total adjusted gross profit is 63% of owned and operated adjusted gross profit in Q2. For these businesses, revenue is up 17%, and gross profit was up 18% year-of-a-year in Q2. Sequentially, revenue was up 21%, and gross profit was up 26%.

Speaker Change: 19% of total revenue and 23% of owned and operated revenue in Q2, they make up a more significant portion of our gross profit.

Tridivesh Kidambi: 42% of total adjusted gross profit is 63% of owned and operated adjusted gross profit in Q2. For these businesses, revenue is up 17%, and gross profit was up 18% year-over-year in Q2. Sequentially, revenue was up 21%, and gross profit was up 26%.

Tridive: 42% of total adjusted gross profit is 63% of owned and operated adjusted gross profit in Q2.

Tridive: For these businesses, revenue was up 17% and gross profit was up 18% year-over-year in Q2. Sequentially revenue was up 21% and gross profit was up 26%.

Tridivesh Kidambi: Sequentially, revenue is up 21%, and gross profit was up 26%. We recently reorganized our overall corporate structure to more easily report the performance of our products business. Please review the 10-Q file earlier today for more information on this instructor.

Tridivesh Kidambi: We recently reorganized our overall corporate structure to more easily report the performance of our products' businesses. Please review the 10-Q file earlier today for more information on this structure. Also, starting with our Q3 results, we will provide information on the current and historical performance of these businesses in our supplemental financials.

Tridivesh Kidambi: We recently reorganized our overall corporate structure to more easily report the performance of our products' businesses. Please review the 10Q file earlier today for more information on this structure.

Tridive: We recently reorganized our overall corporate structure to more easily report the performance of our products businesses.

Tridivesh Kidambi: Also, starting with our Q3 results, we will provide information on the current and historical performance of these businesses in our supplemental financials. Moving on to operating expenses and adjusted EBITDA, in Q2, operating expenses net of ADVACs were $28.9 million, down almost $2 million quarter over quarter and down 16% year over year. We have been working hard to rationalize our operating expense structure following the total security sale at the end of last year.

Tridive: Please review the 10Q file earlier today for more information on this instruction.

Tridive: Also, starting with our Q3 results, we will provide information on the current and historical performance of these businesses in our supplemental financials.

Tridivesh Kidambi: Also, starting with our Q3 results, we will provide information on the current and historical performance of these businesses in our supplemental financials.

Tridivesh Kidambi: On to operating expenses and adjusted EBITDA. In Q2, operating expenses net of add-backs was $28.9 million, down almost $2 million quarter of a quarter, and down 16% year-of-a-year. We have been working hard to rationalize our operating expense structure following the total security sale at the end of last year. At a year-to-day, we've already reduced operating expenses by $10 million on an annualized basis for 2022. And we expect to drive even more cost savings in the back half of the year, heading into 2025 and beyond. Adjusted EBITDA was $9.9 million versus $6.1 million last year. Adjusted EBITDA came in above the high end of the Q2 guidance range by $2.9 million.

Tridive: On to operating expenses and adjusted EBITDAAR.

Tridivesh Kidambi: On to operating expenses and adjusted EBITDA. In Q2, operating expenses net of add-backs was $28.9 million, down almost 2 million quarter of a quarter, and down 16% year-of-a-year. We have been working hard to rationalize our operating expense structure following the total security sale at the end of last year. At a year-to-day, we've already reduced operating expenses by $10 million on an annualized basis for 2022. And we expect to drive even more cost savings in the back half of the year heading in the 2025 and beyond.

Tridive: In Q2, operating expenses net of ad backs was $28.9 million, down almost 2 million quarter of a quarter and down 16% year per year.

Tridive: We have been working hard to rationalize our operating expense structure following the total security sale at the end of last year. At year-to-date, we've already reduced operating expenses by $10 million on an annualized basis versus 2023.

Tridivesh Kidambi: At year-to-date, we've already reduced operating expenses by $10 million on an annualized basis versus 2023, and we expect to drive even more cost savings in the back half of the year heading into 2025. Adjusted EBITDA was $9.9 million versus $6.1 million last year. Adjusted EBITDA came in above the high end of the Q2 guidance range by $2.9 million. With respect to liquidity, we ended the quarter with $75.7 million of unrestricted cash on our balance sheet and an outstanding balance of $290 million, a term loan debt under a credit agreement. Our net leverage on a consolidated basis at quarter end was approximately 7.5%.

Tridive: And we expect to drive even more cost savings in the back half of the year heading into 2025 and beyond.

Tridive: Adjusted EBITDA was $9.9 million versus $6.1 million last year. Adjusted EBITDA came in above the high end of the Q2 guidance range by $2.9 million.

Tridivesh Kidambi: Adjusted EBITDA was $9.9 million versus $6.1 million last year. Adjusted EBITDA came in above the high end of the Q2 guidance range by $2.9 million. With respect to liquidity, we ended the quarter with $75.7 million of unrestricted cash on our balance sheet, and an outstanding balance of $290 million of term-low debt under our credit agreement. Our net leverage on a consolidated basis at quarter end was approximately 7.5 times. Although we have been executing well and haven't seen as much volatility as we saw earlier in the year, there is still quite a bit of uncertainty in the online advertising environment in which we operate.

Tridivesh Kidambi: With respect to liquidity, we ended the quarter with $75.7 million of unrestricted cash on our balance sheet, and an outstanding balance of $290 million of term-low debt under our credit agreement. Our net leverage on a consolidated basis at quarter end was approximately 7.5 times. Although we have been executing well and haven't seen as much volatility as we saw earlier in the year, there is still quite a bit of uncertainty in the online advertising environment in which we operate. So we will continue to provide quarterly guidance. It is worth noting that historically Q3 has been relatively flat to down versus Q2.

Tridive: With respect to liquidity, we ended the quarter with $75.7 million of unrestricted cash on our balance sheet, and an outstanding balance of $290 million a term low debt under our credit agreement. Our net leverage on a consolidated basis at quarter end was approximately 7.5 times.

Tridivesh Kidambi: Although we have been executing well and haven't seen as much volatility as we saw earlier in the year, there is still quite a bit of uncertainty in the online advertising environment in which we operate. So we will continue to provide quarterly guidance. It is worth noting that historically, Q3 has been relatively flat to down versus Q2, while Q4 has typically benefited from seasonal trends, and we expect to see the same this year as well.

Tridive: Although we have been executing well and haven't seen as much volatility as we saw earlier in the year, there is still quite a bit of uncertainty in the online advertising environment in which we operate, so we will continue to provide quarterly guidance.

Tridivesh Kidambi: So we will continue to provide quarterly guidance. It is worth noting that historically Q3 has been relatively flat to down versus Q2. While Q4 has typically benefited from seasonal trends, and we expect to see the same this year as well. We are estimating Q3 revenue to come in between $86 million and $88 million, roughly flat year-over-year at the midpoint. We are estimating adjusted gross profit to come in between $36 million and $38 million, also flat year-over-year at the midpoint, but also with $150 best of gross margin expansion at the midpoint. We estimate Q3 adjusted EBITDA to come in between $8 million and $10 million, up 11% year-over-year at the midpoint.

Tridive: It is worth noting that historically Q3 has been relatively flat to down versus Q2.

Tridivesh Kidambi: While Q4 has typically benefited from seasonal trends, and we expect to see the same this year as well. We are estimating Q3 revenue to come in between $86 million and $88 million, roughly flat year-over-year at the midpoint. We are estimating adjusted gross profit to come in between $36 million and $38 million, also flat year-over-year at the midpoint, but also with $150 best of gross margin expansion at the midpoint. We estimate Q3 adjusted EBITDA to come in between $8 million and $10 million, up 11% year-over-year at the midpoint.

Tridive: while Q4 has typically benefited from seasonal trends, and we expect to see the same this year as well.

Tridivesh Kidambi: We're estimating Q3 revenue to come in between $86 million and $88 million, roughly flat year-over-year at the midpoint. We are estimating adjusted gross profit to come in between $36 million and $38 million, also flat year-over-year at the midpoint, but also with 150 basis points of gross margin expansion at the midpoint. We estimate Q3 adjusted EBITDA to come in between $8 million and $10 million, up 11% year-over-year at the end of the year. We remain bullish about our ability to execute against both near and long-term opportunities and remain focused on delivering financial results that reflect that execution. Thank you for joining us today. Thank you, Trudy.

Tridive: We're estimating Q3 revenue to come in between $86 million and $88 million, roughly flat year-over-year at the midpoint.

Tridive: We are estimating adjusted gross profit to come in between $36 million and $38 million, also flat year-over-year at the midpoint, but also with 150 best of gross margin expansion at the midpoint.

Tridive: We estimate Q3 adjusted EBITDA to come in between $8 million and $10 million, up 11% year-over-year at this point.

Tridivesh Kidambi: We remain bullish about our ability to execute against both near-eyed monetary opportunities and remain focused on delivery financial results that reflect that execution.

Tridive: We remain bullish about our ability to execute against both near and long-term opportunities, and remain focused on delivering financial results that reflect that execution.

Tridivesh Kidambi: We remain bullish about our ability to execute against both near-eyed monetary opportunities and remain focused on delivery financial results that reflect that execution.

Tridivesh Kidambi: Thank you for joining us today.

Operator: Thank you, Triti. We are now going to open the line for some questions. Thank you. The floor is now open for questions. If you have a phone cutepad to raise your hand and join the queue.

Operator: Thank you, Tridi. We are now going to open the line for some questions.

Speaker Change: Thank you for joining us today.

Tridivesh Kidambi: Thank you for joining us today. Thank you, Triti.

Speaker Change: Thank you, Trudy. We are now going to open the line for some questions.

Operator: We are now going to open the line for some questions. Thank you. The floor is now open for questions.

Operator: Thank you. The floor is now open for questions. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. If you are called upon to ask a question and are listening via the loudspeaker on your device, please pick up your handset to ensure that your phone is not on mute when asking your question. Your first question comes from the line of Daniel Kurnos of Benchmark Company. Your line is open.

Trudy: Thank you, the floor is now open for questions.

Operator: If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset to ensure that your phone is not on mute when asking your question.

Speaker Change: If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset to ensure that your phone is not on mute when asking your question.

Operator: If you have a phone cutepad to raise your hand and join the queue. If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset to ensure that your phone is not on mute when asking your question.

Daniel Kurnos: You're a first question. Come to the line of Daniel Kurnos of Benchmark Company. Your line is open. Thanks, afternoon guys. Nice progress. There's actually a lot to unpack here, but maybe we'll just start with some simplistic questions and just ask Tridi, following up on your commentary around historical seasonality.

Speaker Change: Your first question comes from the line of Daniel Kurnos of Benchmark Company. Your line is open.

Daniel Kurnos: You're a first question. Come to the line of Daniel Kurnos of benchmark company. Your line is open. Thanks, afternoon guys. Nice progress.

Daniel Kurnos: Thanks. Afternoon, guys. Nice progress. There's actually a lot to unpack here, but maybe we'll just start with some simple questions and just ask, Tridi, following up on your commentary around historical seasonality, you know, are you guys seeing anything that's giving you pause in the marketplace as you look towards the forward guidance? And given all of the initiatives, Michael, that you outlined, what kind of contributions should we be expecting or over what time frame, whether it's back half of this year into 25, just help us at least get the framework of how you're thinking about some of the new initiatives contributing to the P&L.

Daniel Kurnos: Thanks, afternoon guys, nice progress.

Daniel Kurnos: There's actually a lot to unpack here, but maybe we'll just start with...

Tridivesh Kidambi: There's actually a lot to unpack here, but maybe we'll just start with some simplistic questions and just ask Tridi following up on your commentary around historical seasonality. Are you guys seeing anything that's giving you pause in the marketplace as you look towards the forward guidance and given all of the initiatives, Michael, that you outlines what kind of contributions should we be expecting or over what time frame, whether it's back after this year into 25 to help us at least get the framework of how you're thinking about some of the new initiatives contributing to the P&L?

Daniel Kurnos: Some simplistic questions and just ask, Tridi, following up on your commentary around historical seasonality, you know, are you guys seeing anything that's giving you pause?

Daniel Kurnos: Are you guys seeing anything that's giving you pause in the marketplace as you look towards the forward guidance? And given all of the initiatives, Michael, that you outlined, what kind of contributions should we be expecting or over what time frame, whether it's back after this year into 25, to help us at least get the framework of how you're thinking about some of the new initiatives contributing to the P&L?

Daniel Kurnos: in the marketplace as you look towards the forward guidance. And given all of the initiatives, Michael, that you outlined,

Speaker Change: You know, what kind of contribution should we be expecting or over what time frame, whether it's back half of this year into 25, just help us at least get the framework of how you're thinking about some of the new initiatives contributing to the P&L.

Daniel Kurnos: That's it.

Tridivesh Kidambi: Hey Dan, how are you doing? This is Tridi. So yeah, I get the easy question there. So the short answer is no to your first question.

Tridivesh Kidambi: Hey, Dan. How you doing? This is Tridi. So yeah, I get the easy question there.

Tridivesh Kidambi: So short answer is no to your first question. So Q2 was in line with what we thought it would be. You know, I think we mentioned in our last commentary back in May that we were seeing kind of the advertising markets behave as we would expect them to behave, kind of sequentially coming off of Q1 that health through Q2 and knocking on wood. The first part of Q3 here and we haven't seen anything that would, you know, give us pause or across any specific protocols or anything, even given some of the maybe the macro news that's kind of been around in the last week or so.

Tridivesh Kidambi: That's it. Hey, Dan. How you doing? This is Tridi. So yeah, I get the easy question there. So short answer is no to your first question. So Q2 was in line with what we thought it would be, you know, I think we mentioned in our in our last commentary back in May that we were seeing kind of the advertising markets behave as we would expect them to behave kind of sequentially coming off of Q1 that health through Q2 and knocking on wood.

Daniel Kurnos: Hey Dan, how are you doing? This is Tridi. So yeah, I get the easy question there. So short answer is no to your first question. So Q2 was in line with what we thought it would be.

Speaker Change: I think we mentioned in our last commentary back in May that we were seeing kind of the advertising markets behave as we would expect them to behave kind of sequentially coming off of Q1.

Daniel Kurnos: that held through through Q2 and knocking on wood the first part of Q3 here and we haven't seen anything that would you know give us pause or across any specific verticals or anything even given some of the maybe the macro news that's kind of been around in the last week or so.

Tridivesh Kidambi: The first part of Q3 here and we haven't seen anything that would, you know, give us pause or across any specific protocols or anything, even given some of the maybe the macro news that's kind of been around in the last week or so. And I'll turn up the microphone for. Yeah. Thanks, Dan. So in terms of the new initiative. So first of all, when Tridi talks about, you know, our Q3 guidance and also expecting the seasonal upticking Q4.

Tridivesh Kidambi: So Q2 was in line with what we thought it would be. You know, I think we mentioned in our last commentary back in May that we were seeing the advertising markets behave as we would expect them to behave kind of sequentially coming off of Q1. That held through Q2 and, knocking on wood, the first part of Q3. And we haven't seen anything that would, you know, give us pause across any specific verticals or anything, even given some of the maybe macro news that's kind of been around in the last week or so. And I'll turn it over to Michael for... Yeah. Thanks, Dan.

Michael Blend: And I'll turn up the microphone for.

Michael Blend: Yeah. Thanks, Dan.

Michael Blend: So, in terms of the new initiative. So first of all, when Tridi talks about, you know, our Q3 guidance and also expecting the seasonal uptick in Q4. That would that would anticipate no contribution are very demand a miscontribution from any of our new efforts.

Michael Blend: So, in terms of the new initiative, so first of all, when Treaty talks about, you know, our Q3 guidance and also expects the seasonal uptick in Q4, that would anticipate no contribution or a very de minimis contribution from any of our new efforts. In terms of opening up BISIDE to our partners, that's really ongoing right now. And, you know, we're going to start letting the first partners on kind of as we speak.

Daniel Kurnos: And I'll turn it over to Michael for... Yep.

Michael Blend: Thanks, Dan, so in terms of the new initiatives, so first of all, when Tridie talks about, you know, our Q3 guidance and also expecting the seasonal upticking Q4, that would anticipate no contribution or very de-manemist contribution from any of our new efforts.

Tridivesh Kidambi: That would that would anticipate no contribution are very demand a miscontribution from any of our new efforts. In terms of opening up the buy side to our partners, that's really ongoing right now. And, you know, we're going to start letting the first partners on kind of as we speak. We're not modeling in any significant contribution in in 2024, but we are highly confident that our buy side platform is an improvement over for most of our partners, if not all of them.

Michael Blend: In terms of opening up the buy side to our partners, that's really ongoing right now. And, you know, we're going to start letting the first partners on, kind of as we speak. We're not modeling in any significant contribution in 2024, but we are highly confident that our buy side platform is an improvement over for most of our partners, if not all of them. And we'll let them scale, you know, substantially beyond where they are now.

Speaker Change: In terms of opening up the buy side to our partners,

Daniel Kurnos: That's really ongoing right now and...

Michael Blend: We're not modeling in any significant contribution in 2024, but we are highly confident that our BISIDE platform is an improvement over for most of our partners, if not all of them. And we'll let them scale, you know, substantially beyond where they are now. For shopping, again, we are just getting into the market with one of our new partners there on the kind of commerce side and have really, really, really early results. We're not anticipating scale on that in the second half of the year.

Daniel Kurnos: You know, we're going to start letting the first partners on kind of as we speak.

Daniel Kurnos: We're not modeling in any significant contribution in 2024, but we are highly confident that our buy-side platform is an improvement over

Daniel Kurnos: for most of our partners, if not all of them, and we'll let them scale, you know, substantially beyond where they are now. For shopping, again, we are just getting into market with one of our new partners there on the, kind of, commerce side and have

Michael Blend: For shopping, again, we are just getting into market with one of our new partners there on the kind of commerce side. And have really, really, really early results. We're not anticipating scale on that in the second half of the year. If we do see it in Q4, that would be some kind of an anticipated upside for us.

Tridivesh Kidambi: And we'll let them scale, you know, substantially beyond where they are now. For shopping, again, we are just getting into market with one of our new partners there on the kind of commerce side. And have really, really, really early results. We're not anticipating scale on that in the second half of the year. If we do see it in Q4, that would be some kind of an anticipated upside for us. And in subscription, we do anticipate having at least one product in market in Q4.

Daniel Kurnos: Really, really, really early results. We're not anticipating scale on that in the second half of the year. If we do see it in Q4, that would be some kind of unanticipated upside for us.

Michael Blend: If we do see it in Q4, that would be some kind of unanticipated upside for us. And then subscription, we do anticipate having at least one product in the market in Q4, you know, one of them. Our first one is pretty close to being complete and ready for testing. Again, just to reiterate, I am not modeling in any substantial contributions on any of these, but we will be a market participant in all three of those initiatives in the back half of the year.

Michael Blend: And in subscription, we do anticipate having at least one product in market in Q4. You know, one of them, our first one is pretty close to being complete and ready for testing. Again, just to reiterate, not modeling in any substantial contributions on any of these, but we will be a market in all three of those initiatives in the back after the year.

Daniel Kurnos: And in the description, we do anticipate having at least one product in market.

Daniel Kurnos: in Q4.

Daniel Kurnos: Our first one is pretty close to being complete and ready for testing. Again, just to reiterate, not modeling any substantial contributions on any of these, but we will be a market in all three of those initiatives in the back half of the year.

Tridivesh Kidambi: You know, one of them, our first one is pretty close to being complete and ready for testing. Again, just to reiterate, not modeling in any substantial contributions on any of these, but we will be a market in all three of those initiatives in the back after the year. That is super helpful and comprehensive. I appreciate that. Maybe I'll just follow up quickly. There's probably more of a fun question, Michael, but now that Google has decided not to deprecate third-party cookies anymore and they have really no alternative solution in place at this point.

Daniel Kurnos: That is super helpful and comprehensive. I appreciate that.

Michael Blend: That is super helpful and comprehensive. I appreciate that. Maybe I'll just follow up quickly. This is probably more of a fun question, Michael, but now that Google has decided not to deprecate third-party cookies anymore, and they really have no alternative solution in place at this point, it feels like the whole industry, I guess, breathes a bit of a sigh of relief. So I'm just kind of curious how you think that will impact CPMs going forward, what reactions you've seen, if it changes anything now that Privacy Sandbox is kind of on hold for the foreseeable future.

Daniel Kurnos: Maybe I'll just follow up quickly. There's probably more of a fun question, Michael, but now that Google has decided not to deprecate third-party cookies anymore and they have really no alternative solution in place at this point. It feels like the whole industry, I guess, breathed a bit of a sigh of relief. So I'm just kind of curious how you think that will impact sort of CPMs going forward. What reactions you've seen if it changes anything. Now that Privacy Sandbox is kind of unhold for the foreseeable future. Yeah, so we're not anticipating much of a change.

Speaker Change: That is super helpful and comprehensive. I appreciate that. Maybe I'll just follow up quickly.

Speaker Change: is probably more of a fun question, Michael, but, you know, now that...

Speaker Change: Google has decided not to deprecate third party cookies anymore and they have really no alternative solution in place at this point. It feels like the whole industry, I guess, breathed a bit of a sigh of relief.

Tridivesh Kidambi: It feels like the whole industry, I guess, breathed a bit of a sigh of relief. So I'm just kind of curious how you think that will impact sort of CPMs going forward, what reactions you've seen if it changes anything. Now that privacy sandbox is kind of unhold for the foreseeable future. Yeah, so we're not anticipating much of a change. We were expecting the Q4 if they had fully rolled out the cookie deprecation the way they had talked about was going to be pretty volatile for a lot of people.

Michael Blend: So I'm just kind of curious, you know, how you think that will impact sort of CPMs going forward, what reactions you've seen, if it changes anything now that Privacy Sandbox is kind of on hold for the foreseeable future.

Michael Blend: Yeah, so we're not anticipating much of a change. We were expecting that Q4, if they had fully rolled out the cookie deprecation the way they had talked about, was going to be pretty volatile for a lot of people in the market. Obviously, that's not going to happen now, but Dan, I know you and I, you know, I talked about this in the past.

Michael Blend: We were expecting the Q4. If they had fully rolled out the cookie deprecation the way they had talked about, it was going to be pretty volatile for a lot of people. And market, obviously that's not going to happen now.

Speaker Change: Yeah, so we're not anticipating much of a change. We were expecting that Q4 if they had fully rolled out.

Speaker Change: The cookie deprecation the way they talked about was going to be pretty volatile for a lot of people and market obviously that's not going to happen now. But then I know you and I talked about this in the past. We're not.

Michael Blend: But Dan, I know you and I talked about this in the past. We weren't really surprised to see Google take that stance and kind of indefinitely delay things. We've been hearing rumblings in the market, been hearing a lot of the testing that would be being done. And they've really simply had it being able to come up with a replacement that was that competitive with current cookie solutions. What we are hearing and what I think some of the testing is starting to show is that the solution that Google has come up with is starting to give fairly competitive on the monetization side.

Michael Blend: We weren't really surprised to see Google take that stance and kind of indefinitely delay things. We've been hearing rumblings in the market, and have heard a lot of the testing that had been being done, and, you know, they really simply hadn't been able to come up with a replacement that was that competitive with current cookie solutions. What we are hearing and what I think some of the testing is starting to show is that the solution that Google has come up with is starting to get fairly competitive on the monetization side.

Tridivesh Kidambi: And market obviously that's not going to happen now. But Dan, I know you and I talked about this in the past. We weren't really surprised to see Google take that stance and kind of indefinitely delay things. We've been hearing rumblings in the market, been hearing a lot of the testing that would be being done. And they've really simply had it being able to come up with a replacement that was that competitive with current cookie solutions.

Speaker Change: We've been hearing rumblings in the market, been hearing a lot of the testing that would be being done and you know they really simply hadn't been able to come up with a replacement that was that competitive.

Speaker Change: with current, you know, cookie solutions. What we are hearing and what I think some of the testing is starting to show is that the solution that Google's come up with is starting to get fairly competitive on the monetization side. It's just technically pretty complex to implement.

Tridivesh Kidambi: What we are hearing and what I think some of the testing is starting to show is that the solution that Google has come up with is starting to give fairly competitive on the monetization side. It's just technically pretty complex to implement. So again, I guess it doesn't really affect our stance and what we think our business is going to do. We do think the industry is a whole lot of people where I think probably more concerned about the effects and they were letting on.

Michael Blend: It's just technically pretty complex to implement. So again, I guess it doesn't really affect our stance and what we think our business is going to do. We do think the industry is a whole lot of people where I think probably more concerned about the effects and they were letting on. And I'm sure they're breathing like a bit of a sigh relief.

Michael Blend: It's just technically pretty complex to implement. So again, like I guess, it doesn't really affect our... Our stance and what we think our business is going to do. We do think the industry as a whole, a lot of people were, I think, probably more concerned about the effects than they were letting on, and I'm sure they're breathing a bit of a sigh of relief.

Speaker Change: So, um...

Speaker Change: So again, like I guess, it doesn't really affect our stance and what we think our business is going to do. We do think the industry is a whole lot of people where I think probably more concerned about the effects and they were letting on and I'm sure they're breathing like a bit of a side relief.

Michael Blend: Last for me, Michael, step aside. You know, I always ask you about international business, and you always tell me it's on the rise, and yet you highlighted it this quarter. So, I'd love to hear if there are particular geos you've been able to target, particular verticals in international business where you've had success, and, you know, how much you think that will be a contributing factor to what should be accelerating growth

Daniel Kurnos: Last for me, Michael, step aside. You know, it's I always ask you about international, and you always tell me it's on the come, and yet you highlighted at this quarter.

Tridivesh Kidambi: And I'm sure they're breathing like a bit of a sigh relief. Last for me, Michael step aside, you know, it's I always ask you about international and you always tell me it's on the come and yet you highlighted at this quarter. So just love to hear if there's particular geos, you've been able to target particular verticals and international where you've had success and how much you think that will be a contributing factor to what should be accelerating growth in the 25.

Speaker Change: Last for me, Michael, step aside. I always ask you about international, and you always tell me it's on the come, and yet you highlighted it this quarter.

Michael Blend: So just love to hear if there's particular geos, you've been able to target particular verticals and international where you've had success and how much you think that will be a contributing factor to what should be accelerating growth in the 25. Pretty bullish right now internationally. We've had a lot of success in program out of markets over the last couple of quarters. We've been scaling up, in particular, our relationship with TikTok and Pangle. Pangle is their programmatic network that's attached to the TikTok overall business. And we're seeing that across almost all international markets. We're seeing in Asia, South America, a bit in Europe as well.

Michael Blend: Just love to hear if there's particular geos you've been able to target, particular verticals in international where you've had success, and you know how much you think that will be a contributing factor to what should be accelerating growth in the 25.

Michael Blend: Pretty bullish right now on the international stage. We've had a lot of success in programmatic markets; over the last couple quarters, we've been scaling up, in particular, our relationship with TikTok and Pangle. Pangle is their programmatic network that's attached to TikTok's overall business, and we're seeing that across almost all international markets. We're seeing it in Asia, South America, and a bit in Europe as well. So I would say that if current trends continue, we're going to continue to see pretty rapid growth in our international business, continuing to take more and more of our overall, you know, more and more of a contribution to our overall revenue.

Michael Blend: Pretty bullish right now international. We've had a lot of success in programmatic markets.

Tridivesh Kidambi: Pretty bullish right now international. We've had a lot of success in program out of markets over the last couple quarters. We've been scaling up in particular our relationship with TikTok and Pangle. Pangle is their their programmatic network that's attached to the TikTok overall business. And we're seeing that across almost all international markets. We're seeing in Asia, South America, a bit in Europe as well. So I would say that if current trends continue, we're going to continue to see pretty rapid growth in our international business continuing to take more and more of our overall, you know, more and more of a contribution to our overall revenue.

Michael Blend: over the last couple of quarters.

Speaker Change: We've been scaling up, in particular, our relationship with TikTok and Pangle. Pangle is their programmatic network that's attached to the TikTok overall business.

Speaker Change: and we're seeing that across almost all international markets. We're seeing it Asia, South America, a bit in Europe as well. So I would say that if current trends continue, we're going to continue to see pre-rapic growth in our international business.

Michael Blend: So I would say that if current trends continue, we're going to continue to see pretty rapid growth in our international business, continuing to take more and more of our overall, you know, more and more of a contribution to our overall revenue. And right now, if you ask me, I don't think those trends are going to slow down. We've been tuning our platform to focus more internationally. There's a lot of idiosyncratic things you have to do to really attack the program out of market, particularly internationally. But we think we've got those things figured out, and you know, we see a lot of growth out of us, and it's starting to kick in already.

Speaker Change: continuing to take more and more of our overall, you know, more and more of a contribution to our overall revenue. And right now, if you ask me, I don't think those trends are going to slow down.

Michael Blend: And right now, if you ask me, I don't think those trends are going to slow down. We've been tuning our platform to focus more on the international market. There are a lot of idiosyncratic things you have to do to really attack the programmatic market, particularly internationally. But we think we've got those things figured out and, you know, we see a lot of growth ahead of us, and it's starting to kick in already. So, not on the comm anymore. We're actually staying in it.

Tridivesh Kidambi: And right now, if you ask me, I don't think those trends are going to slow down. We've been tuning our platform to focus more international. There's a lot of idiosyncratic things you have to do to really attack the program out of market particularly internationally. But we think we've got those things figured out and you know, we see a lot of growth out of us and it's starting to kick in already. So now I'm going to come any more. We're actually seeing it. Definitely here. Thanks guys, really appreciate the color and congrats on getting things done moving in our right direction. Thank you. Thanks, Dan. Thanks for calling and thanks for the questions.

Speaker Change: We've been tuning our platform to focus more on international.

Operator: You're no further questions at this time.

Speaker Change: Things you have to do to really attack the program out of market, particularly internationally. But we think we've got those things figured out. And we see a lot of growth ahead of us, and it's starting to kick in already.

Michael Blend: So now I'm going to come any more. We're actually seeing it. Definitely here.

Daniel Kurnos: Definitely here. Thanks guys, I really appreciate the color and congrats on getting things moving in the right direction.

Speaker Change: So now I'm going to come any more, we're actually staying in it. Definitely here. Thanks guys, really appreciate the color and congrats on getting things moving on the right direction.

Daniel Kurnos: Thanks, guys. Really appreciate the color and congrats on getting things done, moving in our right direction. Thank you. Thanks, Dan. Thanks for calling and thanks for the questions.

Operator: Thanks, Dan. Thanks for calling in.

Speaker Change: Thanks, Dan. Thanks for calling in. Thanks for the questions.

Operator: You're no further questions at this time.

Michael Blend: There are no further questions at this time. I will now turn the conference back over to Michael Blend for closing remarks.

Michael Blend: Oh, now to the conference back over to Michael Blend for closing remarks. Okay, great. Well, thanks everybody for joining us today. As we tried to make clear on our remarks today, things are really starting to move in the right direction here at System1. Overall, our team is executing really well. Our major customers are pleased, both on our partner side and also on our revenue side. And overall, we're seeing some decent stability in the digital advertising market, which is what we've been looking for over here for the last year and a half. So in some things are looking pretty good.

Speaker Change: There are no further questions at this time. I will now turn the conference back over to Michael Blend for closing remarks.

Michael Blend: Okay, great. Well, thanks everybody for joining us today. You know, as we tried to make clear in our remarks today, things are really starting to move in the right direction here at System1. Overall, our team is executing really well. Our major customers are pleased, both on our partner side and also on our revenue side. And overall, we're seeing some, you know, decent stability in the digital advertising market, which is what we've been looking for, you know, over here for the last year and a half.

Michael Blend: Oh, now to the conference back over to Michael Blend for closing remarks. Okay, great.

Michael Blend: Okay, great. Well, thanks everybody for joining us today. You know, as we try to make clear on our remarks today, things are really starting to move in the right direction here as system one.

Michael Blend: Well, thanks everybody for joining us today. As we tried to make clear on our remarks today, things are really starting to move in the right direction here at System1. Overall, our team is executing really well. Our major customers are pleased, both on our partner side and also on our revenue side. And overall, we're seeing some decent stability in the digital advertising market, which is what we've been looking for over here for the last year and a half. So in some things are looking pretty good.

Speaker Change: Overall, our team is executing really well. Our major customers are pleased, both on our partner side and also on our revenue side.

Speaker Change: and overall, we're seeing some decent stability in the digital advertising market, which is what we've been looking for over here for the last year and a half.

Michael Blend: So, in summary, things are looking pretty good. We're looking forward to having you join us again for Q3 earnings, and we are definitely hoping to have some good news to report for you then as well. So, thank you for joining us.

Operator: We're looking forward to have you join us again for Q3 earnings. And we are definitely hoping to have some good news to report for you then as well. So thank you for joining.

Speaker Change: So, in some things we're looking pretty good. We're looking forward to having you join us again for Q3 earnings and we are definitely helping out some good news to report for you as well. So, thank you for joining.

Michael Blend: We're looking forward to have you join us again for Q3 earnings. And we are definitely hoping to have some good news to report for you then as well. So thank you for joining.

Operator: This concludes today's conference call. You may now disconnect.

Speaker Change: This concludes that is conference call, you may now disconnect.

Operator: This concludes today's conference call. You may now disconnect.

Speaker Change: [inaudible]

Q2 2024 System1 Inc Earnings Call

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