Key Takeaways TTD's Q2 revenues rose 19% to $694M, with CTV remaining its fastest-growing advertising channel.Over 70% of clients now use Kokai, with campaigns showing 20-point KPI gains over legacy tools.Competition is intensifying as MGNI and PubMatic boost their CTV efforts.The Trade Desk’s (TTD) Connected TV or CTV business continues to gain momentum. Total revenues for the second quarter of 2025 grew 19% year over year to $694 million, outpacing the broader digital ad market. CTV once again emerged as ...

Summary of PubMatic FY Conference Call - August 19, 2025 Company Overview - **Company**: PubMatic (PUBM) - **Industry**: Digital Advertising, specifically focusing on Supply-Side Platform (SSP) services Key Points and Arguments 1. **Investment Case**: PubMatic is positioned well in the digital advertising industry, benefiting from trends such as the growth of Connected TV (CTV) and programmatic advertising, while holding a leadership position in the SSP market [1][2][3] 2. **Business Model**: The company connects four key stakeholders: content creators, ad buyers, data owners, and commerce media participants, utilizing its own infrastructure to enhance ad business growth [2][3] 3. **Financial Performance**: PubMatic reported its 37th consecutive quarter of adjusted EBITDA profitability, indicating a strong financial profile and healthy free cash flow, which supports ongoing innovation [4] 4. **Market Share**: PubMatic holds approximately 4% market share in the SSP space, competing against Google (60%) and Magnite (6%) [7] 5. **Growth Areas**: Significant growth is observed in CTV, commerce media, and supply path optimization (SPO), with CTV now accounting for about 20% of revenue and growing over 50% year-over-year [14][18] 6. **SPO Growth**: SPO has increased to 55% of PubMatic's business, up from 35% a few years ago, indicating a trend where buyers consolidate ad spend onto fewer SSPs [18][54] 7. **Impact of DSP Changes**: A major DSP partner's shift to a new platform has caused a temporary headwind, with expected revenue decline of 8% to 15% in Q3, attributed to political headwinds and the DSP's inventory evaluation changes [26][30] 8. **Diversification Strategy**: The company is focusing on diversifying ad spend away from legacy DSPs, with growth in mid-tier DSPs and partnerships with companies like Amazon and Mountain [31][46] 9. **AI Integration**: PubMatic is leveraging AI to enhance its platform, allowing buyers to use simple prompts for audience targeting and campaign management, which is expected to drive future growth [56] 10. **Google Antitrust**: Potential remedies from ongoing antitrust litigation against Google could significantly impact PubMatic's market share and revenue, with estimates suggesting $50 million of EBITDA for each percentage point share shift [64][66] Additional Important Insights - **Market Dynamics**: The shift of ad dollars from traditional TV to CTV and programmatic advertising is seen as a secular tailwind for PubMatic [12][13] - **Publisher Traffic**: Approximately 40% of PubMatic's business is from mobile app and CTV, which are less affected by search referral traffic, indicating resilience against search-related headwinds [21] - **Long-term Outlook**: The company remains optimistic about its growth trajectory, focusing on high-value video and emerging revenue streams, which are doubling [37][38] - **Behavioral Remedies**: The DOJ's proposed behavioral remedies against Google could lead to a more equitable bidding process across SSPs, potentially benefiting PubMatic [66][69] This summary encapsulates the key discussions and insights from the PubMatic FY Conference Call, highlighting the company's strategic positioning, financial health, and market opportunities amidst challenges.

Financial Performance - Revenue reached $71.1 million, a 6% year-over-year increase[8] - Adjusted EBITDA was $14.2 million, representing a 20% margin[8] - The company experienced a GAAP net loss of $(5.2) million[8] - Cash flow from operations amounted to $14.9 million[8] Growth Drivers - CTV revenue grew by over 50% year-over-year[22, 34] - Emerging revenues increased by over 100% year-over-year[31, 34] - Omnichannel video revenue increased 34% year-over-year[34] - Performance and mid-tier DSPs experienced a growth rate of over 20% year-over-year in Q2 2025[14] Operational Efficiency - Ad impressions processed increased by 28% year-over-year, reaching 78 trillion in Q2 2025, compared to 61 trillion in Q2 2024[37] - The cost of revenue increased to $27 million in Q2 2025 from $25 million in Q2 2024[37] Future Outlook - Q3 2025 revenue is projected to be between $61 million and $66 million, representing a year-over-year growth between -15% and -8%[52] - Q3 2025 adjusted EBITDA is expected to be between $7 million and $10 million, with a margin of 11% to 15%[52]

Financial Data and Key Metrics Changes - The company reported revenue of $694 million for Q2, representing a 19% year-over-year growth, and approximately 20% growth when excluding political ad spend from the previous year [45][51] - Adjusted EBITDA for Q2 was approximately $271 million, or about 39% of revenue [46] - The company ended the quarter with about $1.7 billion in cash, cash equivalents, and short-term investments [50] Business Line Data and Key Metrics Changes - CTV (Connected TV) continued to be the fastest-growing channel, with video (including CTV) representing a high 40s percentage share of the business [46] - Mobile accounted for a mid-30s percentage share of spend, while display represented a low double-digit share and audio around 5% [47] - Over 70% of spend is now on the Kokai platform, with expectations for full client adoption by the end of the year [46][96] Market Data and Key Metrics Changes - North America represented about 86% of spend, while international markets accounted for about 14% [47] - International growth outpaced North America, indicating a strong global execution strategy [47] Company Strategy and Development Direction - The company is focused on enhancing its position in CTV, retail media, and programmatic advertising, leveraging innovations like Kokai and OpenPath to improve supply chain efficiency [6][12][20] - The company aims to define the category of a Demand-Side Platform (DSP) by emphasizing objectivity and transparency in media buying [30][31] - The strategic focus includes building partnerships and joint business plans with major advertisers, which are growing significantly faster than overall platform spend [60][89] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties, emphasizing that programmatic advertising offers agility and measurable results [55][88] - The company sees a significant opportunity in the evolving digital advertising landscape, particularly as large brands face pressures that could accelerate their shift to programmatic solutions [88][90] - The management highlighted the importance of AI and data assets in driving future growth and innovation [57][96] Other Important Information - The company announced leadership changes, including the transition of CFO roles and the addition of new board members to strengthen its governance [25][28] - The company is committed to maintaining a dual-class share structure to support long-term strategic goals [37][39] Q&A Session Summary Question: What gives you confidence in the evolving digital ad environment? - Management highlighted the opportunity presented by uncertainty, the measurable nature of programmatic advertising, and the supply-demand imbalance favoring the company [55][57] Question: How do you evaluate the competitive landscape with Amazon's advertising efforts? - Management stated that Amazon is not a direct competitor due to its focus on its own inventory and the inherent biases in its platform, emphasizing the company's independence and objectivity [71][73] Question: How do tariffs impact ad spend for large brands? - Management acknowledged the short-term negative impact of tariffs on large brands but expressed optimism that volatility would accelerate the shift to programmatic advertising [88][90] Question: Can you elaborate on the progress with Kokai and AI capabilities? - Management reported significant improvements in campaign performance due to Kokai, with clients seeing substantial ROI from AI-driven features [96][94]

What we do We provide a platform for ad buyers. Most buyers are ad agencies, brands, or other technology companies. INVESTOR RELATIONS PRESENTATION Second Quarter 2025 Statement of caution under the Private Securities Litigation Reform Act of 1995 This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to expectations concerning matters that (a) are not historical facts, (b) predict or forecast future events or r ...

Financial Data and Key Metrics Changes - Total revenue for Q2 was $173 million, up 6% from 2024 [24] - Contribution ex TAC was $162 million, up 10%, exceeding the high end of guidance [24] - Adjusted EBITDA was $54 million, growing 22% with a margin of 34% compared to 30% last year [28][23] - Net income was $11 million for the quarter compared to a net loss of $1 million for 2024 [27] Business Line Data and Key Metrics Changes - CTV contribution ex TAC was $72 million, up 14% year over year or 15% excluding political [24] - DV plus contribution ex TAC was $90 million, an increase of 8% from the second quarter last year [24] - Contribution ex TAC mix for Q2 was 44% CTV, 39% mobile, and 17% desktop [25] Market Data and Key Metrics Changes - Significant growth came from partnerships with Roku, Netflix, LG, Warner Bros. Discovery, and Paramount [7] - The SMB segment is expected to explode over the next three to five years, driven by specialized DSPs [10] - The company is seeing share gains in DV plus from some of the largest DSPs [13] Company Strategy and Development Direction - The company is focused on deepening partnerships with major agency HoldCo's and expanding its CTV technology [10][12] - Continued investment in live TV, Clearline, and Curation offerings is planned as these areas represent attractive growth opportunities [21] - The company is preparing for potential outcomes from the antitrust ruling against Google, which could shift market share [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic downsides were not as pronounced as initially feared, leading to stronger than expected growth [23] - The company expects growth rates to accelerate in the second half of 2025, particularly in CTV ex political [21] - Management remains cautious with Q3 and full year expectations but is optimistic about the overall ad spend environment stabilizing [30] Other Important Information - The company is developing AI capabilities as a core product focus, including audience discovery and inventory categorization [16][17] - The cash balance at the end of Q2 was $426 million, with plans to pay off convertible notes at maturity [29] - The company intends to continue its share repurchase program, with $88 million remaining [30] Q&A Session Summary Question: Can you discuss the broader momentum and new partnerships? - Management highlighted the traction in the marketplace, particularly in CTV, and the success of their modular product approach [36] Question: What is the base case regarding the Google antitrust case? - Management stated that it is difficult to predict outcomes until remedies are ruled by the judge, but they see merit in potential civil actions [37] Question: What is driving the reiteration of the prior guidance? - Management noted that the ad spend market has stabilized, leading to comfort in reiterating full year expectations [40][41] Question: How do you view the impact of AI on your business? - Management expressed confidence that AI tools will enhance inventory discovery and targeting, leading to increased revenue [102] Question: What is the outlook for live sports contribution? - Management indicated that while it is still early, they are optimistic about the potential contributions from live sports partnerships [53] Question: How is Magnite positioned with platform companies? - Management noted that there is a realization among platform owners that they are under-monetizing inventory without third-party demand [58] Question: What are the implications of the Google antitrust ruling? - Management believes that any remedies resulting in a more level playing field will be beneficial for their business and could shift market share [20][21]

Core Viewpoint - The Trade Desk, Inc. (TTD) is set to report its Q2 2025 results on August 7, with expectations of a 17% year-over-year revenue increase to approximately $684.46 million, alongside an earnings estimate of 42 cents per share, up from 39 cents in the prior year quarter [1][2]. Financial Performance - The Zacks Consensus Estimate for TTD's Q2 earnings is 42 cents, unchanged over the past 60 days, with total revenues expected to reach $684.46 million, reflecting a 17.1% increase year-over-year [1][12]. - TTD's revenues are projected to be at least $682 million, indicating a 17% year-over-year growth, which includes the impact of political ad spending from the previous year [2]. Earnings Surprise History - TTD has consistently beaten the Zacks Consensus Estimate for earnings in the last four quarters, with an average earnings surprise of 11.14% [3]. Market Position and Strategy - TTD is focusing on increasing digital spending in areas like Connected TV (CTV), which represented a significant portion of its business, and is seen as a key driver for revenue growth [6][8]. - The company is capitalizing on the shift from linear to programmatic CTV, positioning it as a central element of its growth strategy [6][8]. - TTD's Kokai platform is gaining traction, with two-thirds of clients already using it, leading to improved performance metrics such as a 24% lower cost per conversion [8][9]. Competitive Landscape - The digital advertising industry remains highly competitive, with major players like Alphabet and Amazon posing challenges to TTD's market positioning [11][16]. - TTD's stock has underperformed compared to its peers, with a 25.2% decline over the past six months, contrasting with the performance of the broader Internet Services industry and the S&P 500 [12][16]. Valuation Metrics - TTD's stock is trading at a premium, with a forward 12-month Price/Sales ratio of 13.52X, significantly higher than the industry average of 5.3X [19].

Financial Data and Key Metrics Changes - National CineMedia's total revenue for Q2 2025 was $51.8 million, which was below the guidance range of $56 million to $61 million and down 5% compared to the prior year [18][19] - Adjusted OIBDA for the second quarter was $700,000, a significant decrease from $7.6 million in the prior year [22] - Operating income was negative $12 million, compared to negative $9.3 million in the same period last year [21] Business Line Data and Key Metrics Changes - National advertising revenue for Q2 2025 was $41.2 million, slightly down from $41.7 million in Q2 2024, with national ad revenue per attendee dropping to $0.36 from $0.45 year-over-year [19] - Local and regional advertising revenue totaled $6.4 million, down from $9.8 million in the previous year, reflecting cautious advertiser sentiment [19][20] - Programmatic advertiser volume grew by over 50% quarter-over-quarter, with approximately 70% of programmatic advertisers being new to NCM [10] Market Data and Key Metrics Changes - The scatter market represented 40% of NCM's national on-screen revenue in Q2 2025, with inventory utilization up 12% [19] - Attendance increased by 24% year-over-year, reaching over 115 million individuals across the network in Q2 2025 [13] Company Strategy and Development Direction - The company is focusing on scaling programmatic and self-serve offerings to capture growing premium video advertising budgets [8] - NCM is enhancing its sales capabilities by onboarding new talent and engaging high-value advertisers at local and regional levels [10] - The company aims to deepen existing advertiser relationships and strategically expand its client base, leveraging the unique value of cinema as a high-impact advertising channel [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging operating environment in Q2 due to advertiser caution in key categories, but expressed optimism for the second half of the year [6][14] - Early indicators for Q3 are encouraging, with booked sales pacing ahead of the same period last year and demand normalizing across key categories [14] - The company expects third-quarter revenue to be between $62 million and $67 million, supported by improved advertiser commitment and sustained theatrical strength [26] Other Important Information - NCM had $40.3 million in cash and equivalents at the end of Q2 2025, with zero outstanding debt [23][24] - The company reinstated a quarterly dividend of $0.03 per share, amounting to $2.8 million, to be paid on August 29, 2025 [25] - Year-to-date total revenue was $86.6 million, down from $92.1 million in the same period last year [22] Q&A Session Summary Question: Insights on Q3 revenue guidance and potential year-end ad budget flushes - Management noted a more relaxed budgeting environment in Q3 compared to Q2, with significant confidence returning among advertisers [30][32] Question: Expectations for strategic investing in sales and marketing - Management indicated that investments in sales and marketing would be more back-half weighted, with ongoing monitoring of operating expenses [34][35] Question: Clarification on Q3 guidance and demand spillover from Q2 - Management confirmed that the Q3 guidance reflects mostly new business rather than a spillover from paused deals in Q2 [39][40] Question: Feedback on programmatic advertising traction - Management reported significant traction in programmatic advertising, with a high percentage of new advertisers engaging with the platform [42][43] Question: Strategies for increasing visibility with media buyers - Management highlighted the establishment of a new business group focused on acquiring new clients and enhancing awareness of their advertising platform [45][46] Question: Impact of CTV on utilization and CPMs - Management acknowledged CTV as a competitive bucket and indicated plans to build a programmatic platform to compete in that space [68]

Core Insights - Roku reported strong Q2 2025 results with GAAP net revenue of $1.11 billion, exceeding estimates of $1.07 billion, and a positive net income of $0.07 per share, a significant improvement from a loss of $(0.24) last year [1][2] Financial Performance - Q2 2025 GAAP EPS was $0.07, compared to an estimated loss of $(0.15) and a loss of $(0.24) in Q2 2024 [2] - Total revenue reached $1.11 billion, a 15% increase from $968.2 million in Q2 2024 [2] - Platform revenue was $975 million, up 18% year over year from $824 million [2] - Gross profit increased by 17.2% to $498 million from $425 million [2] - Adjusted EBITDA rose 79.4% to $78.2 million from $43.6 million [2] Business Overview - Roku operates a digital streaming platform with two main segments: Platform (advertising, content distribution, billing) and Devices (hardware) [3] - The Platform segment is the primary revenue and profit driver, making its growth a strategic priority [3] Strategic Focus - Recent efforts include expanding advertising innovation, enhancing the device ecosystem, and increasing monetization through platform offerings [4] - Attracting advertisers and driving user engagement are crucial for financial performance [4] Q2 Highlights - Platform revenue growth was driven by strong video advertising performance and the acquisition of Frndly, contributing approximately 1.8 percentage points to growth [5] - The advertising business outpaced broader U.S. digital and connected TV ad markets [5] - Platform gross margin decreased to 51%, reflecting a shift to programmatic ad orders [6] Devices Segment - Devices revenue fell 6% year over year to $136 million, but gross profit improved to break-even from a loss of $15.2 million [7] - The company maintained its position as the top TV OS in the U.S., Canada, and Mexico, with ongoing product innovation [7] User Engagement - Streaming hours increased by 5.2 billion year over year to 35.4 billion, with the Roku Channel ranking as the second most engaged app in the U.S. [8] Financial Outlook - For Q3 2025, management projects GAAP revenue of $1.205 billion, gross profit of $520 million, and adjusted EBITDA of $110 million [11] - The full fiscal year 2025 outlook for Platform revenue is raised to $4.075 billion, a 16% year-over-year increase [11] - Platform gross margin is expected to remain around 52% [11]

Financial Data and Key Metrics Changes - Revenue for Q2 totaled $2,140 million, down 2% year over year, with similar results across subscription and advertising revenue streams [16] - Adjusted EBITDA was $668 million, down 5% year over year, reflecting a healthy margin of 31% [17] - Free cash flow rose 27% to $402 million, driven by timing of payments, lower capital expenditures, and elimination of Liberty level overhead from the prior year [17] - The company expects to achieve approximately $200 million in gross savings this year, primarily in operating expenses [17] Business Line Data and Key Metrics Changes - SiriusXM revenue was $1,610 million, down 2% from the prior year, driven by a smaller self-pay subscriber base [21] - ARPU was flat at $15.22, with a gross margin of 60% [21] - Self-pay net subscriber additions were negative 68,000, an improvement of 32,000 compared to the prior year, reflecting low churn of 1.5% [21] - In the Pandora and off-platform segment, revenue was $524 million, down 3% year over year, with podcast advertising revenue increasing nearly 50% [22] Market Data and Key Metrics Changes - The advertising environment remains challenging due to economic uncertainties, with overall advertising down approximately 2% from Q2 2024 [13] - Podcast ad revenue climbed almost 50% year over year, indicating strong growth in that segment [13] - The company is seeing pricing pressure in streaming from excess CTV inventory and competition [13] Company Strategy and Development Direction - The company is focused on enhancing value for subscribers through new content and programming, including a new agreement with Stephen A. Smith [6][11] - SiriusXM Play, a new ad-supported subscription plan, is being rolled out to target price-sensitive customers [11] - The company is investing in ad tech improvements, including AI voice replicas for scalable campaigns [12] - The strategic focus includes optimizing expenses and enhancing in-car experiences while growing off-platform monetization [26] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the long-term success of the business despite anticipated headwinds in the second half of the year [7][9] - The company is closely monitoring macroeconomic trends that could impact advertising revenue [25] - Management reaffirmed full-year guidance of approximately $8.5 billion in total revenue and $1.15 billion in free cash flow [24][25] Other Important Information - The company returned approximately $137 million to shareholders through dividends and share buybacks [23] - A comprehensive technology and workforce realignment was undertaken, including a non-cash write-off of approximately $100 million in capitalized software assets [19] Q&A Session Summary Question: Inquiry on free cash flow guidance and its full-year impact - Management noted a sizable beat in free cash flow for the quarter, attributing it to timing and ongoing cost structure optimization [29][30] Question: Strategy for attracting younger audiences - The company is leveraging its podcast offerings to attract younger demographics while continuing to monetize content effectively [31][34] Question: Podcasting and digital advertising developments - Podcasting is expected to grow as a portion of total ad revenue, with improvements in targeting and measurement capabilities [40][41] Question: Update on G&A expenses and legal costs - Legal expenses included a $28 million settlement, which skewed G&A expenses for the quarter [60] Question: Conversion trends and customer demographics - The company is seeing a slowing decline in conversion rates for new cars, with ongoing enhancements in acquisition programs [93][94]