GERMANY - 2025/10/03: In this photo illustration, the AppLovin Corporation logo is seen displayed on a smartphone screen. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesWith AppLovin experiencing a 5.1% increase in a single day, it’s advisable to reassess its position relative to its competitors. DoubleVerify (DV) is a key competitor to AppLovin because both operate in the fast-growing digital advertising and app monetization ecosystem. ...

Core Insights - Perion Network Ltd. specializes in digital advertising solutions, operating in North America and Europe, offering services like content and search monetization, and advanced AI tools for campaign intelligence [1] Group 1: Recent Developments - Perion Network launched the Perion DOOH Player, enhancing its full-stack technology for Digital-Out-of-Home (DOOH) and Retail Media, aimed at improving operational scale and creating new revenue opportunities [2] - The company reported an 8% increase in Advertising Solutions Revenue, reaching $80.6 million in Q2 2025, compared to $74.4 million in the same period last year [4] - Quarterly earnings of $0.26 per share surpassed the Zacks Consensus Estimate of $0.17 per share, indicating strong financial health [4] Group 2: Market Outlook - Analyst Mark Kelley from Stifel Nicolaus set a price target of $15 for Perion, slightly above the consensus price target of $14, suggesting a positive outlook, particularly in the AI sector [3] - Despite predictions of a decline in earnings, Perion's recent share price increase of 6.9% during the last trading session indicates investor confidence [5][6]

Core Insights - Zeta Global (ZETA) is positioning itself as a significant player in the digital advertising sector by providing various tools that assist brands in customer acquisition, retention, and increasing customer spending [1] Company Overview - Zeta Global offers multiple solutions aimed at enhancing brand engagement and customer loyalty, which are critical in the competitive digital advertising landscape [1] Market Position - The company is emerging as a key player within the digital advertising industry, indicating a strong growth trajectory and potential for increased market share [1]

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Performance Summary - Baron Technology Fund posted a positive return of 5.89% in Q3, underperforming the MSCI ACWI Information Technology Index which gained 12.76% [2][4] - Year-to-date, the Fund appreciated 18.25%, trailing the Benchmark's 22.83% but outperforming the QQQ and S&P 500 Index [2][4] Market Backdrop - U.S. equities experienced broad gains in Q3, with the S&P 500 and NASDAQ Composite Indexes reaching new record highs [5] - The market strength was driven by increased expectations of Federal Reserve rate cuts due to labor market weakness and dovish Fed commentary [6] Fund Performance Analysis - The Fund's relative underperformance was attributed to stock selection, particularly in the IT sector and other sectors like Communication Services and Consumer Discretionary [7] - Notable contributors to performance included Taiwan Semiconductor Manufacturing Company, Broadcom, Lam Research, and Shopify, while underperformance was seen in PAR Technology and Atlassian [8] AI Market Developments - OpenAI announced significant partnerships for AI infrastructure, indicating a potential $3 trillion to $5 trillion in global AI infrastructure spending by 2030 [12][14] - The global economy is projected to reach $140 trillion by 2030, suggesting that AI infrastructure could represent about 2% of the global economy [14] Key Sector Insights - In the IT sector, the Fund's underweight in Microsoft contributed positively, while underweighting Apple detracted from performance [8][9] - Strong performance from Tesla in Consumer Discretionary was offset by disappointing results from Amazon and Duolingo [11] Top Contributors and Detractors - Top contributors to the Fund's performance included NVIDIA (2.23%), Broadcom (1.63%), and Tesla (1.41%) [23][25][27] - Detractors included PAR Technology (-0.92%), The Trade Desk (-0.91%), and Spotify (-0.56%) [29][30][32] Portfolio Structure - The Fund had investments in 46 unique companies, with the top 10 positions accounting for 59.1% of net assets [36][37] - The largest market cap holding was NVIDIA at $4.5 trillion, while the smallest was $880 million [35][37] Recent Activity - The Fund initiated positions in Lumentum Holdings and increased holdings in Duolingo and Arista Networks, focusing on companies positioned for growth in AI infrastructure [41][42][43] - Exited positions included Reddit and CyberArk Software due to valuation concerns [44]

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Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $85.6 million, representing a 7% year-over-year increase and a 10% quarter-over-quarter increase, exceeding the midpoint of guidance [32] - Contribution XTAC totaled $53 million, up 12% year-over-year and 10% sequentially, reaching the high end of guidance [32] - Adjusted EBITDA for Q3 was $16 million, growing 9% year-over-year and 42% sequentially, with an adjusted EBITDA margin of 30% [38] Business Line Data and Key Metrics Changes - Excluding political ad spend from the prior year, Q3 revenue increased 19% year-over-year, and contribution XTAC increased 22% year-over-year on a pro forma basis [33] - CTV accounted for a record high of 46% of total platform spend, with nearly half running through Direct Access premium publishers [36] - Revenue attached to the Iris ID more than doubled sequentially versus the prior quarter, indicating strong demand for contextually targeted campaigns [15] Market Data and Key Metrics Changes - Spend across emerging digital channels, including CTV, streaming audio, and digital out of home, represented approximately 56% of total platform spend in Q3, up from 50% in 2024 and 43% in 2023 [36] - The majority of leading streaming services have joined the Direct Access program, enhancing the platform's capabilities [12] Company Strategy and Development Direction - The company aims to maintain its dominant position in the mid-market while expanding up-market with major U.S. advertisers and down-market to performance advertisers [23] - The launch of AI Decisioning is expected to enhance the self-service capabilities of the platform, making it more accessible for SMBs and direct-to-consumer e-commerce companies [29] - The partnership with Molson Coors highlights the company's ability to attract major U.S. brands seeking data-driven campaigns [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying performance of the business, with expectations for accelerating growth in 2026 driven by new client onboarding [44] - The company anticipates significant EBITDA margin expansion in 2026, supported by improved operational efficiencies and the integration of recent acquisitions [44] Other Important Information - The company ended Q3 with $161 million in cash and cash equivalents, no debt, and full access to a $75 million credit facility [39] - The share repurchase program has returned $59.6 million to shareholders since its launch, signaling confidence in long-term value [40] Q&A Session Summary Question: What is the difference with the third AI product launching in Q4? - Management indicated that AI Decisioning will complete the Viant AI suite, enabling full self-driving capabilities for ad campaigns, reducing the need for human intervention [51][52] Question: Is the 600 basis point headwind from a merger client a one-time issue? - Management clarified that the headwind is primarily from a seasonal client and will not significantly impact other quarters [48] Question: How does the company plan to grow awareness among SMB advertisers? - The strategy includes channel partnerships and a self-service sign-up flow to attract direct-to-consumer e-commerce companies [58][60] Question: What is the expected incremental spend from the Molson Coors partnership? - While specific figures cannot be disclosed, management expects the partnership to scale over time, contributing to the $250 million incremental spend pipeline [62] Question: How does the competitive environment look with companies like Amazon and Google? - Management noted that competition remains consistent, with Viant's objective buy-side approach differentiating it from competitors who have conflicts of interest [64][66]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $85.6 million, representing a 7% year-over-year increase and a 10% quarter-over-quarter increase, exceeding the midpoint of guidance [29] - Contribution XTAC totaled $53 million, up 12% year-over-year and 10% sequentially, reaching the high end of guidance [29] - Adjusted EBITDA for Q3 was $16 million, growing 9% year-over-year and 42% sequentially, exceeding guidance by 7% [35] Business Line Data and Key Metrics Changes - Excluding political ad spend, revenue increased 19% year-over-year, and contribution XTAC increased 22% year-over-year on a pro forma basis [30] - CTV ad spend reached a record high, accounting for 46% of total platform spend, with nearly half running through Direct Access premium publishers [32] - Contribution XTAC across the top 100 customers grew by 18% year-over-year on a trailing 12-month basis [31] Market Data and Key Metrics Changes - Spend across emerging digital channels, including CTV and streaming audio, represented approximately 56% of total platform spend in Q3, up from 50% in 2024 and 43% in 2023 [32] - The majority of leading streaming services have joined the Direct Access program, enhancing CTV ad spend [11] Company Strategy and Development Direction - The company aims to maintain its dominant position in the mid-market while expanding up-market with major U.S. advertisers and down-market to performance advertisers [21] - The launch of AI Decisioning is expected to enhance the self-service capabilities of the platform, targeting SMBs and direct-to-consumer e-commerce companies [25][44] - The partnership with Molson Coors highlights the company's ability to attract major U.S. brands seeking data-driven campaigns [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying performance, with expectations for accelerating growth in 2026 driven by new client onboarding [40] - The company anticipates easing headwinds from political ad spend starting in Q1 2026, which will positively impact revenue growth [39] - Management noted that the competitive landscape is evolving, with a focus on objectivity and independence in advertising solutions [51][53] Other Important Information - Non-GAAP net income for Q3 was $11.2 million, down 9% year-over-year, primarily due to lower interest income and higher income tax expense [35] - The company ended the quarter with $161 million in cash and cash equivalents and no debt, indicating a strong financial position [36] Q&A Session Summary Question: What is the significance of the third AI product being launched? - The third AI product, AI Decisioning, will complete the Viant AI suite, enabling full automation of ad campaigns, making it easier for advertisers to achieve their goals [44] Question: How will the merger client impact guidance? - The merger client was seasonal, and the significant impact was primarily in Q3, with minimal ongoing headwind expected [43] Question: Has competition increased from Amazon DSP? - No significant increase in competition was noted, with Amazon's DSP being a small portion of their revenue [45] Question: How will the company grow awareness among SMB advertisers? - The company plans to leverage channel partnerships and focus on demonstrating true performance to attract SMBs [46] Question: What is the expected incremental spend from the Molson Coors partnership? - While specific figures cannot be disclosed, the partnership is expected to scale significantly over the years [49] Question: How does the company view the competitive environment? - The competitive landscape is perceived as narrowing, with a focus on objectivity and serving the interests of marketers [51][53]

Financial Data and Key Metrics Changes - The company delivered stronger-than-expected results with revenue and adjusted EBITDA ahead of guidance, demonstrating strong cash flow and operational efficiency [6][25][37] - Total omnichannel video revenues grew 21% year-over-year, with CTV revenue increasing over 50% year-over-year, contributing approximately 38% of total revenue in Q3 2025 [27][19] - Adjusted EBITDA for Q3 was $11.2 million, representing a 16% margin, while the US GAAP net loss was $6.5 million, or $0.14 per diluted share [32][37] Business Line Data and Key Metrics Changes - Emerging revenue streams grew over 80% year-over-year, now accounting for 10% of total revenue, with Activate revenue growing over 100% [27][14] - CTV significantly outpaced market growth, driven by increased premium supply and the scaling of agency marketplaces [7][19] - Display revenue was down 5% year-over-year, primarily affected by a large DSP's spending decline, but excluding this DSP, display grew in low single digits [28][29] Market Data and Key Metrics Changes - Ad spend from mid-tier DSP partners grew over 25% year-over-year, while APAC and EMEA revenues grew 12% and 7% respectively, offsetting a 14% decline in the Americas [29][30] - The company is seeing a shift in the advertising landscape, with a growing number of advertisers in CTV, moving from traditional TV's limited advertiser base to a much larger pool [54] Company Strategy and Development Direction - The company is focused on an AI-driven strategy across three layers: infrastructure, application, and transaction, which is expected to enhance competitive advantage and drive future growth [8][12][15] - Partnerships with DSPs and the introduction of programmatic guarantee deals are part of the strategy to diversify revenue and enhance operational efficiency [16][18] - The company is also investing in emerging revenue streams, including commerce media and sell-side curation, to expand its market reach [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to the evolving digital advertising landscape, anticipating that any remedies from the Google AdTech antitrust trial will benefit the open internet [38] - The company expects Q4 revenue to be in the range of $73 million to $77 million, with strong growth anticipated in CTV and emerging revenues [36][37] - Management highlighted the importance of operational efficiency and cost management, with a focus on maintaining profitability while investing in growth [30][32] Other Important Information - The company has generated over $390 million in net cash from operations since the beginning of 2021, ending Q3 with $136.5 million in cash and zero debt [33][34] - The repurchase program has seen the buyback of 12.4 million Class A common shares for $180.6 million, reflecting a commitment to long-term shareholder value [34] Q&A Session Summary Question: Can you expand on the topic of SPO and recent moves by companies like The Trade Desk? - The company clarified that it focuses on direct inventory monetization rather than reselling, emphasizing its value in yield optimization and direct connections with publishers [44][46] Question: Can you elaborate on the ability to drive unit cost leverage in COGS? - Management indicated a consistent focus on owning and operating infrastructure to drive down unit costs, with expectations for increased gross margin as revenue reaccelerates [49][50] Question: What trends are observed in the CTV environment and how is the company investing for growth? - The company noted significant growth in CTV, driven by partnerships with premium publishers and a growing advertiser mix, with continued investment in AI to unlock incremental budgets [54][55]

Financial Data and Key Metrics Changes - The company delivered stronger-than-expected results with revenue and adjusted EBITDA ahead of guidance, demonstrating strong cash flow and the power of its platform [5][23] - Adjusted EBITDA for Q3 was $11.2 million, representing a 16% margin, while the US GAAP net loss was $6.5 million, or $0.14 per diluted share [31][32] - Free cash flow for the quarter was $22.8 million, with net operating cash flows of $32.4 million [32] Business Line Data and Key Metrics Changes - CTV revenue grew over 50% year-over-year, driven by increased premium supply and growth in agency marketplaces [5][25] - Emerging revenues increased over 80% year-over-year, contributing to 10% of total revenue in Q3 [25][21] - Omnichannel video revenues grew 21% year-over-year, with CTV contributing approximately 38% of total revenue [25][24] Market Data and Key Metrics Changes - Ad spend from mid-tier DSP partners grew over 25% year-over-year in Q3, while ad spend from the top 10 verticals grew in the single-digit percentages [27][26] - APAC and EMEA revenues grew by 12% and 7% respectively, while the Americas saw a decline of 14% due to reduced spending from a large DSP [28][27] Company Strategy and Development Direction - The company is focusing on AI-driven innovations across three layers: infrastructure, application, and transaction, to enhance its competitive advantage [6][11] - Partnerships with mid-market DSPs and the introduction of programmatic guarantee deals are part of the strategy to diversify and expand the demand-side ecosystem [15][16] - The company aims to lead the next era of Agentic AI advertising while continuing to invest in emerging revenue streams and operational efficiencies [13][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to a rapidly changing digital advertising landscape, emphasizing the importance of AI in driving future growth [23][36] - The company anticipates strong growth in CTV and emerging revenues, projecting Q4 revenue between $73 million and $77 million [34][35] - Management noted that the competitive landscape is likely to shift due to the Google AdTech antitrust trial, which could benefit the open internet and the company [36] Other Important Information - The company has generated over $390 million in net cash from operations since the beginning of 2021, ending the quarter with $136.5 million in cash and zero debt [32][33] - The repurchase program has seen the buyback of 12.4 million Class A common shares for $180.6 million, with $94.4 million remaining authorized for repurchase [33] Q&A Session Summary Question: Can you expand on the topic of SPO and recent moves by companies like The Trade Desk? - The company clarified that it focuses on direct inventory monetization rather than reselling, emphasizing its value in yield optimization [40][42] Question: Can you elaborate on the ability to drive unit cost leverage? - The company has consistently driven down unit costs through owning its infrastructure and leveraging AI, expecting to continue this trend [45][46] Question: What evolution has been seen in the CTV environment over the past year? - The company noted significant growth in CTV, driven by partnerships with premium publishers and an expanding advertiser mix [48][50] Question: Are there any trends suggesting The Trade Desk is increasingly going direct? - The company reported that it is working directly with premium publishers and has taken steps to stabilize spending from The Trade Desk [59][61] Question: What impact is AI having on publisher traffic? - The company indicated limited impact from AI on publisher traffic, with opportunities emerging from new AI search experiences [64][66]