AI Infrastructure and Architecture - Infinia was conceived due to the need for a different architecture for AI, one that scales efficiently for training, has low latency, is distributed on-premise and multi-cloud, and minimizes data movement [1] - The industry is shifting towards Data Intelligence, reframing storage of raw data into informational form, which is a new opportunity for DDN to provide data intelligence for enterprises running AI [1] - Metadata and tagging are essential for multimodal AI, enabling the movement of metadata and making the economics viable due to the compression ratio [1] AI Application and Adoption - Enterprises need to adopt AI at an accelerated pace, requiring the application layer to be supercharged and the infrastructure to be efficient [1] - The industry is moving from high-performance computing to Enterprise, and then to digital twins of Enterprise, enabled by technologies like Omniverse [2] - AI is enabling companies to create digital twins, allowing them to run thousands of experiments simultaneously and optimize outcomes, applicable to enterprises, governments, and individuals [2] AI Model and Ecosystem - Post-training, which involves problem-solving and reasoning, is a crucial and compute-intensive part of intelligence, following pre-training [3] - The release of open-source reasoning models like DeepSeek's R1 is accelerating AI adoption by highlighting opportunities for more efficient models [3] - The CUDA ecosystem is enabling the application of AI in specific industries like Life Sciences, Financial Services, and autonomous driving [3] Strategic Partnership and Future Vision - The partnership between Nvidia and DDN is expanding from supercomputing to Enterprise and Omniverse, with Infinia playing a key role [4] - Companies should both use public cloud AI and build their own specialized AI, curating AI agents from various sources to solve large problems [3] - Differentiation for organizations comes from specialized application of AI, enabled by technologies like Nvidia's Nims and DDN's Infinia [4]

Financial Data and Key Metrics Changes - National CineMedia, Inc. reported fourth-quarter revenue of $86.3 million, slightly exceeding the guidance of $82 million to $86 million, but down from $90.9 million in the prior year [22][33] - Adjusted OIBDA for the fourth quarter was $35 million, surpassing the guidance range of $28 to $30 million, compared to $39.8 million in the prior year [22][38] - Full-year 2024 revenue was $240.8 million, down from $259.8 million in 2023, with adjusted OIBDA of $45.7 million compared to $52.7 million in 2023 [24][39] Business Line Data and Key Metrics Changes - National advertising revenue for Q4 decreased to $69.2 million from $71.9 million in Q4 2023, while local and regional advertising revenue fell to $13.5 million from $16.2 million [33] - Attendance for the fourth quarter was 101 million, driven by new titles, while total attendance for 2024 was 390.7 million, reflecting an 11% decline year over year [24][40] Market Data and Key Metrics Changes - The total domestic box office for Q4 2024 reached approximately $2.4 billion, a 26% increase year over year, with the full-year box office totaling $8.6 billion [12][15] - The audience demographic remains strong, with Gen Z and Millennials accounting for 69% of total viewership in Q4 [17] Company Strategy and Development Direction - The company is focusing on innovation and growth, particularly in programmatic and self-serve advertising solutions, which are expected to drive revenue growth in the coming years [31][50] - National CineMedia, Inc. is strategically investing in expanding its sales team and enhancing marketing efforts to support future revenue generation [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second quarter of 2025, indicating strong sales pacing and a positive outlook for the remainder of the year despite expected near-term variability [29][48] - The company anticipates a slight decline in first-quarter revenue due to a weaker film slate and seasonal advertising slowdowns, but expects a strong recovery in attendance and advertising demand later in the year [30][48] Other Important Information - The company closed a new revolving facility with US Bank, reducing the cost of debt and annual interest expense, and has no outstanding long-term debt as of now [44][45] - National CineMedia, Inc. has repurchased 2.5 million shares for $13.4 million as part of its $100 million share repurchase program [45] Q&A Session Summary Question: Expectations on advertising headwinds and second half of the year - Management noted encouraging pacing for Q2 compared to last year, but could not provide specifics for the second half yet [55][56] Question: KPI-based ad sales and advertiser retention - Management indicated that half of the business is supported through NCMx, which is significant for advertiser retention and engagement [58] Question: Share of national advertisers still on the sidelines - Management acknowledged the need to calculate the percentage of pre-pandemic advertisers that have yet to return [63] Question: Expectations for attendance growth in 2025 and 2026 - Management stated that attendance is the primary driver of revenue growth, with forecasts for 2025 and 2026 aligning with industry expectations [66][67] Question: Advertiser sentiment compared to prior years - Management expressed that advertiser sentiment is currently positive, with no surprises expected from the industry [72] Question: Potential for higher upfront costs - Management believes they will perform better in the upfronts compared to last year, with a cleaner market environment [76][77] Question: Demand for premium screens and advertiser interest - Management confirmed high demand for premium screens, which is beneficial for attracting large advertisers [80] Question: Local and regional business growth - Management is optimistic about the local business comeback in 2025 and 2026, following reinvestment in the sales team [84]