Q2 2026 MNTN Inc Earnings Call

August 4, 2026

Operator: At this moment until the completion of the pre-record. Hello, welcome to the MNTN Q2 2026 results webcast. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press star nine to raise your hand and star six to unmute. I will now hand the conference over to Brinlea Johnson. Please go ahead.

Speaker #1: raise your hand. If you have dialed in to today's call, please press star 9 to raise your hand, and star 6 to unmute. I will now hand the conference over to Brinlea Johnson, please go ahead.

Speaker #2: Good afternoon. Thank you for joining us for Mountain 2nd Quarter 2026 earnings call. With me today is Mark Douglas, CEO, and Patrick Pohlen, CFO.

Brinlea Johnson: Good afternoon. Thank you for joining us for MNTN's Q2 2026 earnings call. With me today is Mark Douglas, CEO, and Patrick Pohlen, CFO. Just to remind everyone, today's call includes forward-looking statements that are subject to risks and uncertainties, and actual results could materially differ from those anticipated in these forward-looking statements. For the risks and uncertainties that may affect future results, please see our most recently filed periodic report, which is also available on our website. We will also discuss non-GAAP financial measures on today's call. Reconciliations of these measures are available in our earnings materials on our website. With that, I'll turn the call over to Mark. Please go ahead.

Speaker #2: Just to remind everyone, today's call includes forward-looking statements that are subject to risk and uncertainties, and actual results could materially differ from those anticipated in these forward-looking statements.

Speaker #2: For the risk and uncertainties that may affect future results, please see our most recently filed Periodic Report, which is also available on our website.

Speaker #2: We will also discuss non-GAAP financial measures on today's call. Reconciliations of these measures are available in our earnings materials on our website. With that, I'll turn the call over to Mark.

Speaker #2: Please go ahead.

Speaker #3: Thank you for joining us today. MNTN delivered a strong second quarter with revenue of $82.5 million, representing 21% year-over-year growth, and adjusted EBITDA of $21.5 million, representing 48% year-over-year growth.

Mark Douglas: Thank you for joining us today. MNTN delivered a strong Q2 with revenue of $82.5 million, representing 21% year-over-year growth, and adjusted EBITDA of $21.5 million, representing 48% year-over-year growth. Both of these metrics finish at the high end of our guidance. We're pleased with the quarter and are reiterating our 2026 full-year outlook. Before I get into the details, I want to talk about our strategy. Performance TV is about giving businesses that historically haven't had access to television a way to reach specific consumers across premium streaming inventory and measure whether that advertising is driving revenue. MNTN created this category, now we're seeing Performance TV move from an early adopter market towards a mainstream part of the marketing mix.

Speaker #3: Both of these metrics finish at the high end of our guidance. We're pleased with the quarter and are reiterating our 2026 full-year outlook. Before I get into the details, I want to talk about our strategy.

Speaker #3: Performance TV is about giving businesses that historically haven't had access to television a way to reach specific consumers across premium streaming inventory and measure whether that advertising is driving revenue.

Speaker #3: category and now we're seeing performance TV move from an early adopter market toward a mainstream part of the marketing mix. To capture that move, Mountain began expanding our sales organization in Q4 2025, strengthening our leadership in sales, and increasing our investment in marketing.

Mark Douglas: To capture that move, MNTN began expanding our sales organization in Q4 2025, strengthening our leadership in sales and increasing our investment in marketing. For the next stage of growth, MNTN is focused on three main priorities: expanding our products and continuing to invest in AI, broadening access to premium television, and strengthening our go-to-market organization. This isn't a change in strategy or a new story from MNTN. It's the same opportunity we've been building towards over the past year, now with products and go-to-market structure ready to execute at greater scale. Turning to our product suite, I've said many times that half of the company's headcount is in engineering, and they've been building products. We released new versions of MNTN's Performance TV platform that create distinct versions for small business, mid-market, and upper mid-market.

Speaker #3: For the next stage of growth, Mountain is focused on three main priorities: expanding our products and continuing to invest in AI, broadening access to premium television, and strengthening our go-to-market organization.

Speaker #3: This isn't a change in strategy or a new story from Mountain. It's the same opportunity we've been building towards over the past year, now with products and go-to-market structure ready to execute at greater scale.

Speaker #3: Turning to our product suite, I've said many times that half of the company's headcount is in engineering, and they've been building products. We released new versions of Mountain's performance TV platform that create distinct versions for small business, mid-market, and upper mid-market.

Speaker #3: We found that different-sized businesses need different levels of features and complexity, so we've divided the platform into three main tiers: Express, Pro, and Premium.

Mark Douglas: We found that different-sized businesses need different levels of features and complexity, so we've divided the platform into three main tiers: Express, Pro, and Premium. MNTN Express was launched on 1 April. Express is specifically built for small business, distinct from midsize advertisers. Brands can get live in minutes and do so from any device. We've had over 7,000 sign-ups for Express in the first 120 days since we launched. Importantly, hundreds of those sign-ups have become paying customers, and momentum continues. The revenue contribution from Express is small today in comparison to MNTN's overall business, but it's growing quickly, and I believe will be a meaningful contributor to growth as we enter 2027. For our midsize customers, we've added significant agentic AI technology into the platform that gives our customers even more automation and more performance.

Speaker #3: Mountain Express was launched on April 1, Express is specifically built for small business, distinct from mid-sized advertisers. Brands can get live in minutes and do so from any device.

Speaker #3: We've had over 7,000 sign-ups for Express in the first 120 days since we launched. Importantly, hundreds of those sign-ups have become paying customers, and momentum continues.

Speaker #3: The revenue contribution from Express's small today in comparison to Mountain's overall business, but it's growing quickly, and I believe will be a meaningful contributor to growth as we enter 2027.

Speaker #3: For our mid-sized customers, we've added significant agentic AI technology into the platform that gives our customers even more automation and performance. We surround them with AI tech to give our customers control of the daily decision-making.

Mark Douglas: We surround them with AI tech to give our customers control of the daily decision-making. We're leveraging AI across the organization, especially within engineering, where we're AI native, using AI to build faster while embedding AI throughout our product suite. We've talked about QuickFrame AI a number of times, and its importance for enabling the SMB opportunity in Connected TV. QuickFrame AI is doing exactly what we planned: lowering creative barriers, increasing launch rates, and making it easier for businesses to create television-ready advertising. We've had over 37,000 QuickFrame AI signups in Q2, bringing us to over 73,000 signups year to date. We're seeing an incredibly diverse set of businesses across retail, financial services, healthcare, technology, education, and many other industries successfully leverage the technology to create their ads. There's broad interest in AI creative, and it's critical for Performance TV.

Speaker #3: We're leveraging AI across the organization, especially within engineering, where we're AI-native, using AI to build faster while embedding AI through our product suite. We've talked about QuickFrame AI a number of times, and it's important for enabling the SMB opportunity in connected TV.

Speaker #3: QuickFrame AI is doing exactly what we planned: lowering creative barriers, increasing launch rates, and making it easier for businesses to create television-ready advertising. We've had over 37,000 QuickFrame AI sign-ups in Q2, bringing us to over 73,000 sign-ups year-to-date.

Speaker #3: We're seeing an incredibly diverse set of businesses across retail, financial services, healthcare, technology, education, and many other industries successfully leverage the technology to create their ads.

Speaker #3: There's broad interest in January this year, we doubled down on premium inventory as part of our platform. Today, our customers have the ability to insert their ads alongside nearly every major sports league, in addition to the premium streaming shows on our network of partners.

Speaker #3: AI creative, and it's critical for performance TV. We've always believed that Mountain customers should have access to and the ability to specify ad placement alongside the same premium television inventory as the world's largest brands.

Mark Douglas: We've always believed that MNTN customers should have access to, and the ability to specify ad placement alongside the same premium television inventory as the world's largest brands. In January this year, we doubled down on premium inventory as part of our platform. Today, our customers have the ability to insert their ads alongside nearly every major sports league, in addition to the premium streaming shows on our network of partners. As a result of that focus on super premium content, we have many customers who advertise during the FIFA World Cup games, March Madness, and on MLB, NBA, NHL, and soon the NFL. For the first time, any size business can consistently get guaranteed access to television's biggest moments and make that part of their ad strategy. To fuel the growth of new customers, we are strengthening our go-to-market organization.

Speaker #3: As a result of that focus on super-premium content, we have many customers who advertise during the FIFA World Cup games, March Madness, and on MLB, NBA, NHL, and soon the NFL.

Speaker #3: For the first time, any-sized business can consistently get guaranteed access to television's biggest moments and make that part of their ad strategy. To fuel the growth of new customers, we are strengthening our go-to-market organization.

Speaker #3: The first half of this year has been focused on construction, with additional leadership added in sales, marketing, and business development. We've built vertical teams that understand the economics, objectives, creative needs, and customer acquisition dynamics of specific industries.

Mark Douglas: The H1 of this year has been focused on construction, with additional leadership added in sales, marketing, and business development. We've built vertical teams that understand the economics, objectives, creative needs, and customer acquisition dynamics of specific industries. That knowledge makes our sales process and the customer experience more effective. In summary, we expect the benefits of our strategic investments to contribute to stronger growth in the H2 of the year and meaningfully in 2027 as the core business accelerates, complemented by new revenue streams from Express and Premium. Our focus remains simple: help more businesses advertise on television than ever before while continuing to grow efficiently, profitably, and strengthen the category we created. Now I'll turn it over to Patrick.

Speaker #3: That knowledge makes our sales process and the customer experience more effective. In summary, we expect the benefits of our strategic investments to contribute to stronger growth in the second half of the year and meaningfully in 2027 as the core business accelerates complemented by new revenue streams from Express and Premium.

Speaker #3: Our focus remains simple: help more businesses advertise on television than ever before, while continuing to grow efficiently and profitably, and strengthen the category we created.

Speaker #3: Now I'll turn it over to Patrick.

Patrick Pohlen: Thank you, Mark. We reported strong Q2 results exceeding the midpoint of both our revenue and adjusted EBITDA guidance. Our solid performance reflects continued customer adoption of Performance TV, particularly by companies that had not previously advertised on television. Our Q2 revenue increased to $82.5 million, up 21% year over year. Q2 gross margins improved to 80%, up 350 basis points over the prior year period. As you can see from the table in our earnings release, at the end of Q2, we had 4,225 active PTV customers when measured over their trailing 12 months. On a year-over-year basis, this represents growth of approximately 40%. As a reminder, the number of active PTV customers we add to the platform is largely within our control and is primarily driven by how aggressively we choose to invest in sales and marketing.

Speaker #1: Mark: We reported strong second quarter results, exceeding the midpoint of both our revenue and adjusted EBITDA guidance. Our solid performance reflects continued customer adoption of Performance TV, particularly by companies that had not previously advertised on television.

Speaker #1: Our second quarter revenue increased to $82.5 million, up 21% year Thank you, over year. Second quarter gross margins improved to 80%, up 350 basis points over the prior year period.

Speaker #1: As you can see from the table in our earnings release, at the end of the second quarter, we had 4,225 active PTV customers, when measured over the trailing 12 months.

Speaker #1: On a year-over-year basis, this represents growth of approximately 40%. As a reminder, the number of active PTV customers we add to the platform is largely within our control and is primarily driven by how aggressively we choose to invest in sales and marketing.

Speaker #1: We continually assess and calibrate that approach to ensure that we are onboarding customers with a strong product-market fit and a high probability of succeeding on our platform.

Patrick Pohlen: We continually assess and calibrate that approach to ensure that we are onboarding customers with a strong product-market fit and a high probability of succeeding on our platform. As we adjust the pace of that expansion over time, the number of customers added is expected to fluctuate from quarter to quarter. Our expansion rate, which measures the spend of our current customers as compared to those same customers' spend a year ago, remains quite healthy and is still well north of 115%, further demonstrating that when our customers achieve their desired returns on advertising spend, they continue to increase their budgets with us. Total operating expenses for Q2 were $59.2 million. For Q2, we achieved net income of +$6.7 million, for a GAAP EPS of $0.09.

Speaker #1: As we adjust the pace of that expansion over time, the number of customers added is expected to fluctuate from quarter to quarter. Our expansion rate, which measures the spend of our current customers as compared to those same customers' spend a year ago, remains quite healthy and is still well north of 115%, further demonstrating that when our customers achieve their desired returns on advertising spend, they continue to increase their budgets with us.

Speaker #1: Total operating expenses for the second quarter were $59.2 million. For the second quarter, we achieved positive net income of $6.7 million, for a GAAP EPS of $0.09.

Speaker #1: Adjusted EBITDA for the quarter increased to $21.5 million, up from $14.5 million in Q2 of 2025, an increase of 48%. The company's adjusted EBITDA margin grew to $26.1%, up 490 basis points compared to $21.2% in Q2 of 2025.

Patrick Pohlen: Adjusted EBITDA for the quarter increased to $21.5 million, up from $14.5 million in Q2 of 2025, an increase of 48%. The company's adjusted EBITDA margin grew to 26.1%, up 490 basis points compared to 21.2% in Q2 of 2025. The improvement reflects the combination of higher revenue and expanding gross margins, further underscoring the operating leverage built into our business model. While we remain focused on steadily improving profitability over time, our top priority continues to be investing behind growth rather than optimizing near-term adjusted EBITDA margins. To capitalize on this significant opportunity in this early-stage market, we plan on continuing to make disciplined but aggressive investments in sales and marketing to drive broader customer adoption. Our balance sheet remains strong, and we ended the quarter at $237 million in cash and cash equivalents with no borrowings outstanding. We ended the quarter with 74.2 million shares outstanding.

Speaker #1: The improvement reflects the combination of higher revenue and expanding gross margins, further underscoring the operating leverage built into our business model. While we remain focused on steadily improving profitability over time, our top priority continues to be investing behind growth rather than optimizing near-term adjusted EBITDA margins.

Speaker #1: To capitalize on this significant opportunity in this early-stage market, we plan to continue making disciplined but aggressive investments in sales and marketing to drive broader customer adoption.

Speaker #1: Our balance sheet remains strong and we ended the quarter at $237 million in cash and cash equivalents, with no borrowings outstanding. We ended the quarter with $74.2 million shares outstanding.

Speaker #1: As of August 3rd, 2026, Mountain's board of directors has authorized a stock repurchase program of up to $100 million worth of its class A common stock through August 5th, 2027.

Patrick Pohlen: As of 3 August 2026, MNTN's board of directors has authorized a stock repurchase program of up to $100 million worth of its Class A common stock through 5 August 2027. We think the stock represents a compelling value, and we believe this action signals our confidence in the company's long-term trajectory and further solidifies our commitment to providing value to our shareholders. Looking ahead, we remain confident in our momentum and the underlying health of our business as we progress through 2026 and beyond. For Q3 2026, we expect revenue to be between $86 and $89 million, representing 25% year-over-year growth at the midpoint of $87.5 million. We expect adjusted EBITDA to be between $22 and $25 million, reflecting continued leverage as we scale the business while continuing to remain disciplined in our investments.

Speaker #1: We thank the stock represents a compelling value and we believe this action signals our confidence in the company's long-term trajectory and further solidifies our commitment to providing value to our shareholders.

Speaker #1: Looking ahead, we remain confident in our momentum and the underlying health of our business as we progress through 2026 and beyond. For Q3 2026, we expect revenue to be between $86 million and $89 million, representing 25% year-over-year growth at the midpoint of $87.5 million.

Speaker #1: We expect adjusted EBITDA to be between $22 million and $25 million, reflecting continued leverage as we scale the business while continuing to remain disciplined in our investments.

Speaker #1: For the full year 2026, we are reiterating our revenue guidance range of $347 to $357 million, representing over 24% year-over-year growth at the midpoint of $352 million excluding the impact of the maximum effort to best assure.

Patrick Pohlen: For the full year 2026, we are reiterating our revenue guidance range of $347 to $357 million, representing over 24% year-over-year growth at the midpoint of $352 million, excluding the impact of the Maximum Effort divestiture. We also continue to expect adjusted EBITDA to be between $96 and $101 million. To wrap up, we delivered another solid quarter and believe MNTN will continue to gain market share in the massive performance television market. We are confident that our future growth initiatives and the strength of our operating model will position MNTN to drive continued growth and profitability. With that, we'll open the line for questions.

Speaker #1: We also continue to expect adjusted EBITDA to be between $96 and $101 million to wrap up, we delivered another solid quarter and believe Mountain will continue to gain market share in the massive performance television market.

Speaker #1: We are confident that our future growth initiatives and the strength of our operating model will position MNTN to drive continued growth and profitability. With that, we'll open the line for questions.

Speaker #2: We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please raise your hand.

Operator: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press star nine to raise your hand, star six to unmute. Please stand by as we compile the Q&A roster. Your first question comes from the line of Shyam Patil with Susquehanna. Your line is open. Please go ahead.

Speaker #2: If you have dialed in to today's call, please press *9 to raise your hand, and *6 to unmute. Please stand by as we compile the Q&A roster.

Speaker #2: And your first question comes from the line of Cheyenne Patil with Susquehanna. Your line is open. Please go ahead.

Speaker #3: Hey, guys. Nice job on the quarter. I had a couple of questions for you, Mark. In your prepared remarks, you talked about the go-to-market investments and you talked about Express and Premium, and the impact that you expect to see. I was wondering if you could just talk a little bit more about this, and just how you think about the impact on revenue growth over the course of this year and next year.

Shyam Patil: Hey, guys. Nice job on the quarter. I had a couple of questions for you, Mark. In your prepared remarks, you talked about the go-to-market investments, and you talked about Express and Premium and the impact that you expect to see. Wondering if you could just talk a little bit more about this and just how you think about the impact to revenue growth over the course of this year and next year. Second question, there's been some consolidation in the industry recently. Was wondering if you could just talk about this and perhaps what kind of impact it could be having on the PTV opportunity and just any opportunities that it may be creating for you guys. Thank you.

Speaker #3: And then second question, there's been some consolidation in the industry recently. I was wondering if you could just talk about this and perhaps what kind of impact it could be having on the PTV opportunity and just kind of any opportunities that it may be creating for you guys.

Speaker #3: Thank you.

Speaker #4: Thanks, Sean. I'll take both of those questions. So I think the first one is about Express and Premium and the impact this year and next year.

Mark Douglas: Thanks, Shyam. I'll take both of those questions. I think the first one is about Express and Premium and the impact this year and next year. As I said in the opening remarks, we really felt that we needed to create versions of our product that just like we were purpose-built for the overall SMB market, were purpose-built for the different segments or the different tiers. That each tier, meaning small business, midsize, and larger, they had unique similar needs in the overall need for performance television, but unique needs in terms of usability. We are really confident and really happy with where we've delivered on that, especially with small business. That's something we've been focused on for a while, and we're happy to see the adoption. In terms of the impact this year and next year, they're definitely contributing.

Speaker #4: So, as I said in the opening remarks, we really felt that we needed to create versions of our product that would—just like we were purpose-built for the overall SMB market—be purpose-built for the different segments, so the different tiers.

Speaker #4: So and that each tier meaning small business, midsize, and larger they had unique similar needs in the overall need for performance television, but unique needs in terms of usability.

Speaker #4: So we are really confident and really happy with where we've delivered on that, especially with small business. That's something we've been focused on for a while and we're happy to see the adoption.

Speaker #4: In terms of the impact this year and next year, there definitely contributing. I think for next year, we see a really big opportunity because they're small now, but growing very quickly.

Mark Douglas: I think for next year, we see a really big opportunity because they're small now, but growing very quickly. I think you should look to 2027 to really start to see the larger impact coming from these two segments of the overall SMB opportunity. In terms of your question about the consolidation in the industry impact on the CTV opportunity, obviously we're seeing that too. We're purpose-built for the SMB portion of that market. We believe we're very differentiated. We can essentially establish that created the concept of Performance TV and using streaming for small mid-sized business. The validation that it's providing us, we think that some of the consolidation you're seeing is providing, we think it's real validated the opportunity.

Speaker #4: And so I think you should look to 2027 to really start to see the larger impact coming from these two segments of the overall SMB opportunity.

Speaker #4: In terms of your question about the consolidation in the industry, impact on the CTV opportunity, obviously we're seeing that too. We're purpose-built for the SMB portion of that market.

Speaker #4: We believe we're very differentiated because we essentially established and created the concept of performance TV and using business. So, kind of the validation that it's providing us, we think that some of the consolidation you're seeing is providing—we think it's really validated the opportunity.

Speaker #4: In terms of specific impact for us, it's just making the market even more aware of the opportunity here. And I think creating even more green space for Mountain to execute.

Mark Douglas: In terms of specific impact for us, it's just making the market even more aware of the opportunity here and I think creating even more green space for MNTN to execute. We're pretty pleased with essentially the consolidation that's occurring and the larger opportunity and the greater green space that creates for the company.

Speaker #4: So, we're pretty pleased with essentially the consolidation that's occurring, and the larger opportunity and the great green space that it creates for the company.

Shyam Patil: Thanks, Mark.

Mark Douglas: Thank you. Sure.

Speaker #4: Thank you. Sure.

Speaker #2: And your next question comes from the line of Andrew Boone with Citizens. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Andrew Boone with Citizens. Your line is open. Please go ahead.

Speaker #4: Thanks.

Mark Douglas: Thanks. Andrew, we can't hear you. You might be muted.

Andrew Boone: Thanks.

Speaker #3: Andrew, we can't hear you. You might be muted. All right, let's try that again. Can you guys hear me? Now we can. Yeah. All right.

Mark Douglas: Andrew, we can't hear you. You might be muted.

Andrew Boone: All right, let's try that again. Can you guys hear me?

Andrew Boone: Sure.

Patrick Pohlen: Sure.

Andrew Boone: Now we can.

Mark Douglas: Now we can.

Andrew Boone: Yeah. All right, great. Well, thank you for taking the question. I wanted to also ask on SMB, if we think about the go-to-market strategy for SMB and the difference of that versus a mid-market customer, is there any change that we should expect for sales marketing or any other aspects of the organization strategy or cost structure that we should be thinking about with this change?

Speaker #3: Great. Well, thank you for taking the question. I wanted to also ask on SMB, if we think about the go-to-market strategy for SMB and the difference of that versus kind of a mid-market customer, is there any change that we should expect for sales marketing or any other aspects of kind of the organization strategy or cost structure that we should be thinking about with this change?

Speaker #3: And then, Mark, just a big-picture question. You mentioned sports in your prepared remarks. Can you just talk about the benefit of the World Cup?

Andrew Boone: Mark, just a big picture question. You mentioned sports in your prepared remarks. Can you just talk about the benefit of the World Cup? What did that bring for you guys in the quarter? Talk about the sports opportunity more largely. Understood that's always been a draw, but how has that changed the conversation? Thank you.

Speaker #3: What did that bring you guys in the quarter? And then talk about the sports opportunity more largely. Understood that's always been a draw, but how has that changed the conversation?

Speaker #3: Thank you.

Speaker #4: Sure, happy to answer those. So, in terms of go-to-market for SMB, we've been very focused since we talked about it in Q4 of last year—kind of the expansion of the sales team.

Mark Douglas: Happy to answer those. In terms of go-to-market for SMB, we've been very focused since we talked about, in Q4 of last year, the expansion of the sales team. I think last quarter we talked about continued investment in marketing. I talked today about those things. We take the opportunity here, the key thing is that we created an early adopter market. That market is now becoming mainstream. I mean by that more and more companies who previously had no access to television as a medium, and remember, television is the biggest entertainment medium in the world, meaning more people watch TV a day than use social media, than essentially do any other activity, and that was entirely cut off from the SMB market.

Speaker #4: And I think last quarter we talked about continued investment and marketing. And so those and I talked today about kind of those themes. And so we think the opportunity here, the key thing is that we created an early adopter market.

Speaker #4: That market is now becoming mainstream. By that, I mean more and more companies who previously had no access to television as a medium.

Speaker #4: And remember, television is the biggest entertainment medium in the world, meaning more people watch TV a day than use social media—than essentially do any other activity.

Speaker #4: And that was entirely cut off from the SMB market. And so the and so as we're seeing more companies know that they can be on TV and almost start to expect to be on TV, we wanted to invest more in sales and marketing in order to make sure we capture more of that opportunity.

Mark Douglas: As we're seeing more companies know that they can be on TV and almost start to expect to be on TV, we wanted to invest more in sales and marketing in order to make sure we capture more of that opportunity. We did that by strengthening our leadership, by investing more in marketing, and in terms of our own marketing, we've traditionally leveraged the MNTN platform for a lot of our marketing, meaning we stream TV ads in the homes of our future customers. We also use social media, there's an interesting dynamic in performance marketing that everyone uses each other's platforms, so they can then cover customers wherever they are. We're doing the same. For Express customers, meaning our smallest customers, we again lean on our own platform. We lean on social. For mid-market, it's pretty much the same.

Speaker #4: We did that by strengthening our leadership, by investing more in marketing, and by and in terms of our own marketing, we've traditionally leveraged the Mountain platform for a lot of our marketing, meaning we've streamed TV ads in the homes of our future customers.

Speaker #4: We also use social media. And so there's an interesting dynamic in performance marketing, that everyone uses each other's platforms so they can uncover customers wherever they are.

Speaker #4: And so we're doing the same. For express customers, meaning our smallest customers, we again lean on our own platform. We lean on social. For mid-market, it's pretty much the same.

Speaker #4: The investment's a little different. But the techniques are the same. And so we're really pleased with how that's going and we expect to continue to expand our investment there.

Mark Douglas: The investment's a little different, but the techniques are the same. We're really pleased with how that's going, and we expect to continue to expand our investment there. In terms of sports, the reason sports, it's not just sports, it's like reality television, it's home improvement. When you think of sports, the advertisers have to, like for something like the World Cup, they have to be named and approved by the World Cup. To start to be able to get small and mid-sized businesses into that level of sporting events took a lot of partnership conversations with some of the biggest media companies in the world to get the sports rights for these leagues and for these major events, and we were able to do that. The benefit to our customers is that inventory performs really well.

Speaker #4: In terms of sports, the reason sports—and it's not just sports. It's like reality television, it's home improvement—we want to give our... The advertisers have to, for something like the World Cup, they have to be named and approved by the World Cup.

Speaker #4: So to start to be able to get small, midsize businesses into those level that level of sporting events took a lot of partnership conversations with some of the biggest media companies in the world to get the sports rights for these leagues and for these major events.

Speaker #4: And we were able to do that. The benefit to our customers is that inventory performs really well. There's often more than one person in front of the TV.

Mark Douglas: There's often more than one person in front of the TV. There could be many people watching a World Cup game or an NFL game or something like that. You have an interesting dynamic in terms of performance, and I also think it validates MNTN as the market leader in this space. That we're not just putting our customers on remnant inventory. They're going on the best content in television to get the best performance in performance television. That's why it's so important to us, and I think our customers are seeing it as a differentiator, and we're really pleased with that.

Speaker #4: They could be many people watching like a World Cup game or an NFL game or something like that. So you have an interesting dynamic in terms of performance.

Speaker #4: And I also think it validates Mountain as the market leader in this space that we're not just we're not putting our customers on remnant inventory.

Speaker #4: They're going on the best content in television. To get the best performance in performance television. And so that's why it's so important to us.

Speaker #4: I think our customers are seeing it as a differentiator, and we're really pleased with that.

Speaker #3: Thank you.

Andrew Boone: Thank you.

Mark Douglas: Sure.

Speaker #2: And your next question comes from the line of Robert Coulbreath with Evercore ISI. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Robert Culbreth with Evercore ISI. Your line is open. Please go ahead.

Speaker #3: Great. Thank you for taking my question. Sure. Can you hear me all right?

Robert Culbreth: Great. Thank you for taking my question. Can you hear me all right?

Robert Coolbrith: Great. Thank you for taking my question. Can you hear me all right?

Speaker #4: Yeah.

Patrick Pohlen: Yeah.

Speaker #3: Yep. Great. Thank you. So I just wanted to ask some quick framing. We had sort of formally thought of that as just enabling technology.

Patrick Pohlen: Yep.

Mark Douglas: Yep.

Robert Culbreth: Great. Thank you. I'd just like to ask on QuickFrame AI, we had sort of formerly thought of that as just enabling technology. Just given the very strong early traction that you're seeing, wanted to ask you on a couple of three topics related to that. Number one, if you could talk about, are you thinking about this now as a standalone opportunity? We've certainly seen some other entrants in this space grow very large businesses very quickly, really just within the past few months. Is that part of the ambition here, given what you're seeing early? Secondly, wanted to ask a little bit about the gross margin profile of that product. Anything you could tell us there? Third, maybe also the funnel that QuickFrame AI can create for the core PTV business.

Robert Coolbrith: Great. Thank you. I'd just like to ask on QuickFrame AI, we had sort of formerly thought of that as just enabling technology. Just given the very strong early traction that you're seeing, wanted to ask you on a couple of three topics related to that. Number one, if you could talk about, are you thinking about this now as a standalone opportunity? We've certainly seen some other entrants in this space grow very large businesses very quickly, really just within the past few months. Is that part of the ambition here, given what you're seeing early? Secondly, wanted to ask a little bit about the gross margin profile of that product. Anything you could tell us there? Third, maybe also the funnel that QuickFrame AI can create for the core PTV business.

Speaker #3: But just given the very strong early traction that you're seeing, I wanted to ask you on a couple or three topics related to that.

Speaker #3: Number one, could you talk about whether you are thinking about this now as a standalone opportunity? We’ve certainly seen some other entrants in this space grow very large businesses very quickly.

Speaker #3: You're really just within the past few months. Is that part of the ambition here, given what you're seeing early? And secondly, I wanted to ask a little bit about the gross margin profile of that product.

Speaker #3: Anything you could tell us there? And then third, maybe also the funnel that quick frame AI can create for the core PTV business, given the amount of sign-ups that you're coming in.

Robert Culbreth: Given the amount of sign-ups that are coming in, are you seeing an ability to sort of cross-sell or attach PTV once people have their creatives up and running? Thank you very much.

Robert Coolbrith: Given the amount of sign-ups that are coming in, are you seeing an ability to sort of cross-sell or attach PTV once people have their creatives up and running? Thank you very much.

Speaker #3: Are you seeing an ability to sort of cross-sell or attach PTV once people have their creatives up and running? Thank you very much.

Speaker #4: Sure. So I'll take those on one at a time. So in terms of standalone opportunity, it was always my belief that we had to create, build quick frame AI, not just to be a feature of the Mountain performance TV platform, but to be successful in its own right.

Mark Douglas: Sure. I'll take those on one at a time. In terms of standalone opportunity, it was always my belief that we had to build QuickFrame AI not just to be a feature of the MNTN Performance TV platform, but to be successful in its own right. The importance of that is unless you do that, at some point, you wouldn't be keeping up in terms of feature functionality if we didn't build it so that people saw value in it, separate from Performance TV. The QuickFrame product supports MNTN Performance TV, it supports YouTube ads, it supports social ads, all of those. It's certainly a standalone opportunity in terms of usage of the product. In terms of monetization of the product, we're looking at that. There's obviously some opportunity there, but at this moment, we're making it available at no charge.

Speaker #4: The importance of that is unless you do that, at some point, you wouldn't it wouldn't you wouldn't be keeping up in terms of feature functionality if we didn't build it so that people saw value in it separate from performance TV.

Speaker #4: So the QuickFrame product supports Mountain Performance TV. It supports YouTube ads, it supports social ads—all of those. So it's certainly a standalone opportunity in terms of usage of the product. In terms of monetization of the product, we're looking at that.

Speaker #4: There's obviously some opportunity there, but at this moment, we're making it available at no charge. We are closely looking at usage and engagement of the product to make sure people are really actively using it and essentially getting value from it.

Mark Douglas: We are closely looking at usage and essentially engagement on the product to make sure people are really actively using it and essentially getting value from it. Stay tuned on that. In terms of gross margin, there are some gross margin costs, the overall effect to the business is pretty neutral because we're able to continue to get basically gross margin improvement efficiency in our overall hosting environment in particular, which makes room for our use of all of the AI models that QuickFrame AI orchestrates in order to create TV quality and YouTube quality and social quality ads. It's essentially gross margin neutral. The funnel for core PTV, the answer is yes. The people we're bringing in on QuickFrame, that creates an opportunity for them to learn about Performance TV.

Speaker #4: So stay tuned on that. In terms of gross margin, there are some gross margin costs, but the overall effect to the business is pretty neutral because we're able to continue to get basically gross margin improvement efficiency in our overall hosting environment in particular, which makes room for our use of all of the AI models that quick frame AI orchestrates in the order to create TV quality and YouTube quality and social quality ads.

Speaker #4: So there's it's essentially gross margin neutral. And then the funnel for core PTV, the answer is yes. The people we're bringing in on quick frame that creates an opportunity for them to learn about performance TV.

Speaker #4: One thing to keep in mind, though, is that a lot of the quick frame users are creators. They're not necessarily the marketers. So it creates a cross-sell opportunity to make so that if that creator is using quick frame, and maybe they were creating something for social, they'll now aware that, wait, I can create this asset for TV also.

Mark Douglas: One thing to keep in mind, though, is that a lot of the QuickFrame users are creators. They're not necessarily the marketers. It creates a cross-sell opportunity to make so that if that creator is using QuickFrame, and maybe they were creating something for social, they're now aware that, Wait, I can create this asset for TV also. I think often it's fun for them because they haven't ever created a TV ad. There's definitely cross-sell opportunities. All of that is being closely looked at and kind of pursued as part of the growth of the QuickFrame AI product.

Speaker #4: And I think often it's fun for them because they haven't ever created a TV ad. So there's definitely cross-sell opportunities. All of that is being closely looked at and kind of pursued as part of the growth of the quick frame AI product.

Speaker #3: Okay. Great. Thank you.

Robert Culbreth: Great. Thank you.

Robert Coolbrith: Great. Thank you.

Speaker #4: Sure.

Mark Douglas: Sure.

Speaker #2: And your next question comes from Matt Weber with Canaccord. Your line is open. Please go ahead.

Operator: Your next question comes from Matt Weber with Canaccord. Your line is open. Please go ahead.

Matt Weber: Hi. Thanks so much for taking the question. Just one from me. On the strength and measurement and activation ecosystem that now features partnerships with HubSpot, Northbeam, Upwave, could you just update us on if those are premium add-ons that advertisers pay for, if they're still part of the core platform? How do the economics of those partnerships work? Is there any impact to gross margin or other areas of the P&L as adoption scales? Thanks so much.

Speaker #4: Hi. Thanks so much for taking the question. Just one from me. I'm interested in the strength and measurement and activation ecosystem that now features partnerships with HubSpot, North Beam, UpWave.

Speaker #4: Could you just update us on that? Those are premium add-ons that advertisers pay for, if they're still part of the core platform. And then, how do the economics of those partnerships work?

Speaker #4: If there's any other is there any impact to gross margin or other areas of the P&L as adoption scales? Thanks so much.

Speaker #3: Sure. So it depends on the partnership in terms of the answer to your question. For something like HubSpot, or some of our partnerships—I'm not 100% specifically sure on HubSpot—but some of our partnerships, we integrate in at no cost to our customers.

Mark Douglas: Sure. It depends on the partnership, in terms of the answer to your question. For something like HubSpot, or some of our partnerships, I'm not 100% specifically sure on HubSpot, but some of our partnerships we integrate in at no cost to our customers. We use our buying power in the same way we use our buying power with the networks to secure advantageous pricing for our customers. We do that with some of our partnerships where that partnership is very broadly used across our entire customer base. Other partnerships where something like attribution, where the customer is deciding which third-party attribution partner they want to use, then we build partnerships with that company, like Northbeam as an example, and make sure that our customers get the best possible experience in MNTN's platform, but also the best possible data and experience in Northbeam's platform.

Speaker #3: So we use our buying power in the same way we use our buying power with the networks to secure advantageous pricing for our customers.

Speaker #3: We do that with some of our partnerships where that partnership is very broadly used across our entire customer base. And then other partnerships where something like attribution, where the customer is deciding which third-party attribution partner they want to use, then we build partnerships with that company.

Speaker #3: Like North Beam as an example. And make sure that our customers get the best possible experience in Mountain's platform, but also the best possible data and experience in North Beam's platform, but the customer has a separate direct relation with North Beam.

Mark Douglas: The customer has a separate direct relation with Northbeam. It depends on the partnership. In all those cases, again, we get so much leverage in our gross margins as we scale our business from our revenue growth that we're able, when it's appropriate, to absorb the cost rather than adding additional costs. We want our customers to have an experience where there is one cost to using MNTN, which is the cost of media, and they're not getting nickeled and dimed for little charges here and there, which is more of the experience in the enterprise market. We believe in the SMB market, you should pay one price and get everything you need to be successful.

Speaker #3: So it depends on the partnership. In all those cases, again, we get so much leverage in our gross margins as we scale our business from our revenue growth that we're able, when it's appropriate, to absorb the cost rather than adding additional costs.

Speaker #3: We want our customers to have an experience where there is one cost to using Mountain, which is the cost of media, and they're not getting nickeled and dimed for little charges here and there.

Speaker #3: Which is more of the experience in the enterprise market, but we believe in the SMB product market, you should pay one price and get everything you need to be successful.

Speaker #2: Very helpful. Thank you.

Matt Weber: Very helpful. Thank you.

Speaker #4: Sure.

Mark Douglas: Sure.

Speaker #2: And your next question comes from the line of Andrew Merrick with Raymond James. Your line is open. Please go ahead.

Operator: next question comes from the line of Andrew Marok with Raymond James. Your line is open. Please go ahead.

Speaker #5: Hi. Thanks for taking my questions. Maybe two for me, please. Can you talk a bit about what to maybe expect in the second half from the flood of political spend that's coming down the pipe?

Andrew Marok: Hi. Thanks for taking my questions. Maybe two for me, please. Can you talk a bit about what to maybe expect in the H2 from the flood of political spend that's coming down the pipe? Not for MNTN specifically directly, but maybe more in terms of effect on the volatility of CPMs in the space and what that leads into the ROAS calculations for your customers. Second, on QuickFrame, with it now in market for a full quarter now in 3.0, how's that feedback been and maybe what sort of features might be on the roadmap as a result of that feedback? Thank you.

Speaker #5: I mean, not for Mountain specifically directly, but maybe more in terms of effect on the volatility of CPMs in the space and what that leads then into the ROAS calculations for your customers.

Speaker #5: And then second, on QuickFrame, with it now in market for a full quarter now and 3.0, how's that feedback been? And maybe, what sort of features might be on the roadmap as a result of that feedback?

Speaker #5: Thank you.

Speaker #4: Sure. So in terms of second-half political spending, traditionally, remember, MNTN is pre-purpose-built for the SMB market. And so we traditionally have not participated in any significant way in political spending.

Mark Douglas: Sure. In terms of H2 political spending, traditionally, remember, MNTN is pretty purpose-built for the SMB market, we traditionally have not participated in any significant way in political spending. We see that that is dominated by some big agencies that we consider to be more enterprise clients. It doesn't have much of a direct impact on MNTN. In terms of the volatility on CPMs, that volatility tends to affect what we refer to as the open market. MNTN has, we have direct deals with nearly if not all kind of media companies in America that are ad-supported. Those deals are bought executed programmatically, but they have kind of commitments in the form of pre-negotiated pricing for us to continue to spend on that platform.

Speaker #4: We see that that is dominated by some big agencies. That we consider to be more enterprise clients. And so it doesn't have much of a direct impact on Mountain.

Speaker #4: In terms of the volatility on CPMs, that volatility tends to affect what we refer to as the open market. So Mountain we have direct deals with nearly, if not all, kind of media companies in America.

Speaker #4: That are ad supported. And so those deals are bought, executed programmatically, but they have kind of commitments in the form of pre-negotiated pricing for us to continue to spend on that platform.

Speaker #4: And so, when you get these Q4 spikes or political spikes, they don't affect our pricing because that has already been negotiated with the network for the continued volume.

Mark Douglas: When you get these Q4 spikes or political spikes, they don't affect our pricing because that has already been negotiated with the network for the continued volume we continue to bring through the SMB market. The inventory that's left over might get affected, and that's referred to as open market. That has more volatility in price and more volatility in margin. Neither of those will affect us. They may have some effect on anyone who's much more dependent on the open market, which we are not. I think we're over 99% private marketplace deals, meaning direct deals with the networks. In terms of QuickFrame 3.0 features, we essentially are doing releases every single week, if not multiple times a week. What you can expect is we have a team dedicated on QuickFrame just to all of the iteration on the AI models themselves.

Speaker #4: We continue to bring through the SMB market, but the inventory that's left over might get affected. That's referred to as the open market, and that has more volatility in price and more volatility in margin.

Speaker #4: So neither of those will affect us. They may have some effect on anyone who's much more dependent on the open market, which we are not.

Speaker #4: I think we're over 99% private marketplace deals, meaning direct deals with the networks. The in terms of quick frame 3.0 features, we essentially are doing releases every single week.

Speaker #4: If not multiple times a week, what you can expect is, we have a team dedicated on QuickFrame just to all of the iteration on the AI models themselves. The product orchestrates multiple models, scene by scene, in order to deliver the creative you get.

Mark Douglas: The product orchestrates multiple models scene by scene in order to deliver the creative you get. We're getting feedback from our customers. We're watching their usage. We have our own vision. Another thing that we're putting a lot of emphasis on is having really fast use cases. I'll give you an example. You want to essentially take an existing ad and you want to reinvent it as a new ad, but with the same characters in it or something like that. Just really fast paths to executing really specific use cases with the product. We find when someone comes in the product and they have an idea what they want to do, and we have something that exactly matches their needs, they're even happier with the use of the product, and we see more engagement. There's a lot of features coming.

Speaker #4: We're getting feedback from our customers watching their usage. We have our own vision another thing that we're putting a lot of effort emphasis on is having really fast use cases.

Speaker #4: I'll give you an example. You want to essentially get it take an existing ad and you want to reinvent it as a new ad, but with the same characters in it or something like that.

Speaker #4: Just really fast paths to executing really specific use cases with the product. We find that when someone comes into the product and they have an idea of what they want to do, and we have something that exactly matches their needs, they're even happier with the use of the product, and we see more engagement.

Speaker #4: But there's a lot of features coming. There's a pretty decent size team on quick frame and they are iterating literally at AI speed. Releases multiple times a week.

Mark Douglas: There's a pretty decent-sized team on QuickFrame. They are iterating literally at AI speed, releases multiple times a week.

Speaker #5: Great. Thank you.

Andrew Marok: Great. Thank you.

Speaker #4: Sure.

Mark Douglas: Sure.

Speaker #2: And just a reminder, if you'd like to ask a question, please raise your hand. If you are dialed in, press star 9 to raise your hand.

Operator: Just a reminder, if you'd like to ask a question, please raise your hand. If you are dialed in, press star nine to raise your hand, star six to unmute. I see no further questions at this time. I'll now turn the call back to management for closing remarks.

Speaker #2: Star 6 to unmute. I see no further questions at this time. I'll now turn the call back to management for closing remarks.

Mark Douglas: I just want to say thanks for everyone's time. We're looking forward to Q3 in the H2 of the year. I'm sure talk further before then and on our next earnings call. Thank you.

Speaker #4: I just want to say thanks for everyone's time and we're looking forward to Q3 and the second half of the year. And we'll I'm sure I'll talk further before then and on our next earnings call.

Speaker #4: Thank

Speaker #4: you.

Speaker #2: This concludes today's call. Thank you for attending. You may now

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

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