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]

Financial Data and Key Metrics Changes - The company reported Q2 2025 revenue of $694 million, representing a 19% year-over-year growth, and approximately 20% growth when excluding political ad spend from the previous year [43][44] - Adjusted EBITDA for Q2 was approximately $271 million, or about 39% of revenue [44] - The company ended the quarter with about $1.7 billion in cash, cash equivalents, and short-term investments [48] 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 [44] - Mobile accounted for a mid-30s percentage share of spend, while display represented a low double-digit share and audio around 5% [44] - Over 70% of spend is now on the Kokai platform, with expectations for full client adoption by the end of the year [44][94] Market Data and Key Metrics Changes - North America represented about 86% of spend, while international markets accounted for approximately 14% [45] - International growth outpaced North America, driven by CTV [45] - Double-digit growth was observed in most verticals, particularly in technology and computing and medical health [46] Company Strategy and Development Direction - The company is focused on enhancing its position in CTV, retail media, and programmatic advertising, with a strong emphasis on innovation through the Kokai platform [5][10] - The introduction of AI technologies is central to the company's strategy, with significant improvements in campaign performance reported by clients using Kokai [9][92] - The company aims to maintain objectivity in advertising, positioning itself as a neutral partner in the open Internet space, contrasting with walled gardens like Google and Amazon [19][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic pressures, emphasizing that uncertainty can create opportunities for growth [54][60] - The company anticipates continued strong performance in the second half of the year, with Q3 revenue expected to be at least $717 million, reflecting 14% year-over-year growth [49][50] - The management highlighted the importance of programmatic advertising in a volatile environment, which aligns with the company's strengths [85] Other Important Information - The company is undergoing leadership transitions, with a new CFO joining and a focus on strengthening the leadership team [24][41] - The company is enhancing its board of directors with experienced individuals from the ad tech industry [26] Q&A Session Summary Question: What gives confidence in the evolving digital ad environment? - Management highlighted the supply-demand imbalance favoring the company, the importance of measurable programmatic advertising, and the underappreciated data assets the company possesses [55][56][60] Question: How is the competitive landscape evolving with Amazon's advertising efforts? - Management stated that Amazon is not a direct competitor, emphasizing the company's focus on transparency and objectivity in the open Internet, while noting Amazon's challenges in being perceived as an objective partner [70][72][75] Question: How does the tariff situation impact ad spend? - Management acknowledged the short-term negative impact on large global advertisers due to tariffs but expressed optimism that volatility would accelerate the shift to programmatic advertising [84][86] Question: Progress with Kokai and AI capabilities? - Management reported significant improvements in campaign performance for clients using Kokai, with expectations for full adoption and ongoing innovation driven by AI [92][94]

Financial Data and Key Metrics Changes - Q1 revenue reached $616 million, representing a 25% year-over-year increase [48] - Adjusted EBITDA for the quarter was $208 million, reflecting a 34% margin [48] - Adjusted net income was $165 million, or $0.33 per fully diluted share [52] - Free cash flow was $230 million in Q1 [52] Business Line Data and Key Metrics Changes - CTV (Connected TV) remains the largest and fastest-growing advertising channel, representing a high 40s percentage share of the business [49] - Mobile accounted for a mid-30s percentage share of spend, while display represented a low double-digit share and audio around 5% [49] - The adoption of the Kokai platform accelerated, with about two-thirds of clients now using it, ahead of schedule [62] Market Data and Key Metrics Changes - North America represented approximately 88% of spend, while international markets accounted for about 12% [49] - International growth outpaced North America for the ninth consecutive quarter, particularly driven by CTV [50] Company Strategy and Development Direction - The company aims to capture market share in a more competitive landscape, especially as walled gardens face increased scrutiny [12][19] - The focus is on enhancing the supply chain through innovations like OpenPath and the acquisition of Sincerra [24][29] - The company is optimistic about the future of the open Internet and believes it is well-positioned to benefit from recent antitrust developments against competitors like Google [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties and continue to grow [54] - The company anticipates revenue of at least $682 million in Q2, reflecting a 17% year-over-year growth [55] - Management highlighted the importance of being a trusted partner for clients during uncertain times [78] Other Important Information - The company has no debt and ended the quarter with approximately $1.7 billion in cash and short-term investments [52] - A new COO, Vivek Tundra, has been appointed to help drive growth [40] Q&A Session Summary Question: Can you elaborate on the progress from product and go-to-market changes? - Management noted that Q1 was strong, with significant upgrades contributing to performance and Kokai adoption accelerating [60][62] Question: What are the implications of the Google trial verdict for DSPs? - Management believes the verdict will lead to a fairer market, allowing the company to compete more effectively [72][73] Question: How does the company view Q2 guidance amid uncertainty? - Management remains optimistic about growth opportunities and the ability to support clients through strategic consulting [78][80] Question: How is the competitive landscape evolving, particularly with Amazon? - Management sees Amazon's focus on Prime Video as a limitation and believes the company can capture market share by aligning interests with buyers [85][90] Question: What progress is being made with OpenPath? - Management highlighted the positive developments and new partnerships through OpenPath, despite the current uncertainty in the upfront market [93]

Financial Data and Key Metrics Changes - Q1 revenue reached $616 million, representing a 25% year-over-year increase [45] - Adjusted EBITDA for the quarter was $208 million, reflecting a 34% margin [45] - Adjusted net income was $165 million, or $0.33 per fully diluted share [49] - Free cash flow was $230 million in Q1 [49] Business Line Data and Key Metrics Changes - CTV (Connected TV) remains the largest and fastest-growing advertising channel, 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% [46] - The adoption of the Kokai platform accelerated, with about two-thirds of clients now using it, ahead of schedule [60] Market Data and Key Metrics Changes - North America represented approximately 88% of spend, while international markets accounted for about 12% [46] - International growth outpaced North America for the ninth consecutive quarter, driven by CTV [47] Company Strategy and Development Direction - The company aims to capture market share in a more competitive landscape, particularly in the open Internet space [19][40] - Innovations like OpenPath and the acquisition of Sincerra are expected to enhance supply chain efficiency and transparency [24][28] - The focus remains on maintaining independence and objectivity to differentiate from competitors like Google and Amazon [45][82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate macroeconomic uncertainties and continue to grow [51] - The outlook for Q2 anticipates revenue of at least $682 million, reflecting a 17% year-over-year growth [51] - The company is optimistic about the open Internet's prospects following recent antitrust rulings against Google [19][70] Other Important Information - The company has no debt and ended the quarter with approximately $1.7 billion in cash and short-term investments [49] - A significant share repurchase program was executed, with $386 million of Class A common stock repurchased [50] Q&A Session Summary Question: Can you elaborate on the progress from product and go-to-market changes? - Management highlighted strong Q1 performance and noted that upgrades contributed to outperformance, with Kokai adoption ahead of schedule [56][60] Question: What are the implications of Google's antitrust verdict for DSPs? - Management believes the verdict will create a fairer market, allowing the company to compete more effectively against reduced competition from Google [65][70] Question: How does the company view Q2 guidance amid uncertainty? - Management remains optimistic, citing strong underlying business fundamentals and the ability to assist clients in navigating challenges [72][75] Question: How is the competitive landscape evolving, particularly with Amazon? - Management views Amazon's focus on Prime Video as a limitation, asserting that the company’s CTV growth is outpacing Amazon's advertising growth [80][82] Question: What progress is being made with OpenPath and expectations for the upfront? - Management anticipates a stronger performance for programmatic advertising during the upfronts, with ongoing improvements in OpenPath [90][92]