Financial Data and Key Metrics Changes - The company reported fourth quarter revenue growth of 36% year-over-year, with full year revenue also increasing by 36% [3][15] - Fourth quarter gross margins improved to 82%, up 530 basis points, while full year gross margins increased to 77%, up 560 basis points year-over-year [16][19] - Adjusted EBITDA for the fourth quarter was $28.1 million, up from $20.7 million in Q4 of 2024, representing a 36% increase [19] - The company achieved positive net income of $34.5 million for the fourth quarter, with a GAAP EPS of $0.47, while reporting a net loss of $6.4 million for the full year [18][19] Business Line Data and Key Metrics Changes - The core Performance TV (PTV) business saw gross margin improvements of over 300 basis points, contributing to overall margin growth [16] - The number of active PTV customers grew to 3,632, representing a 63% increase year-over-year [16][18] Market Data and Key Metrics Changes - The company generated over $18 billion in revenue for its customers in 2025, indicating strong market demand for connected TV advertising [6] - The expansion rate, measuring customer spend compared to the previous year, remained well above 115%, showing healthy customer retention and growth [18] Company Strategy and Development Direction - The company aims to democratize television advertising, focusing on small and mid-sized businesses (SMBs) and leveraging performance marketing [3][12] - Continued investment in AI technology, including QuickFrame AI, is a key part of the strategy to enhance customer experience and drive performance [8][26] - The company is focused on moving down-market to capture more SMB opportunities, which is seen as a significant growth area [17][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the performance TV market and the company's ability to capture market share [23][88] - The company plans to continue investing strategically in sales, marketing, and technology to support future revenue growth while maintaining profitability [20][48] Other Important Information - The company ended the quarter with $210 million in cash and cash equivalents, with no outstanding borrowings [20] - For Q1 2026, the company expects revenue in the range of $71.3 million to $73.3 million, representing 22.3% year-over-year growth [21][22] Q&A Session Summary Question: How does the company plan to continue driving growth? - Management highlighted the focus on the Performance TV market, moving down-market, and AI initiatives as key drivers for future growth [25][26] Question: What are the characteristics of new customers? - The company is focusing on SMBs, particularly in e-commerce and travel, with a growing presence of performance agencies [29][30] Question: Can you provide insights on QuickFrame AI? - QuickFrame AI has seen strong adoption, enabling faster and more cost-effective video ad creation for customers [37][38] Question: What are the benefits of the new sales force? - The new sales force is expected to drive future revenue growth by focusing on both mid-sized and small businesses [41][66] Question: How does the company measure attribution in CTV? - The company utilizes Verified Visits and an Identity Graph to provide comprehensive attribution measurement for its customers [61][62] Question: What is the long-term target for margins? - The long-term target for gross margin is 75%-80%, and for Adjusted EBITDA margin, it is 35%-40% [76][77]

Financial Data and Key Metrics Changes - The company reported a fourth quarter revenue growth of 36% year-over-year, with full year revenue also increasing by 36% [3][15] - Fourth quarter gross margins improved to 82%, up 530 basis points, while full year gross margins increased to 77%, up 560 basis points year-over-year [16][19] - Adjusted EBITDA for the fourth quarter was $28.1 million, up from $20.7 million in Q4 of 2024, representing a 36% increase [19] - The company achieved positive net income of $34.5 million for the fourth quarter, with a GAAP EPS of $0.47, while reporting a net loss of $6.4 million for the full year [18][19] Business Line Data and Key Metrics Changes - The core Performance TV (PTV) business improved gross margins by over 300 basis points, contributing to the overall margin improvements [16] - The number of active PTV customers grew to 3,632, representing a 63% increase year-over-year [16][18] Market Data and Key Metrics Changes - The company generated over $18 billion in revenue for its customers in 2025, indicating strong market demand for connected TV advertising [6] - The expansion rate, measuring the spend of current customers compared to the previous year, remained well above 115%, showing continued customer investment [18] Company Strategy and Development Direction - The company aims to democratize television advertising, focusing on small and mid-sized businesses (SMBs) and leveraging performance marketing [3][12] - Continued investment in AI technology, including tools like QuickFrame AI, is a key part of the strategy to enhance customer experience and drive performance [8][26] - The company is focused on moving down-market to capture more SMB opportunities, which is seen as a significant growth area [17][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum and the underlying health of the business, anticipating continued growth in the performance television market [20][23] - The company expects Q1 2026 revenue in the range of $71.3 million to $73.3 million, representing a 22.3% year-over-year growth at the midpoint [21][22] Other Important Information - The company ended the quarter with $210 million in cash and cash equivalents, with no borrowings outstanding, indicating a strong balance sheet [20] - The company plans to continue investing strategically in sales and marketing, as well as technology and development, to support future revenue growth [20][48] Q&A Session Summary Question: How does the company plan to continue driving growth? - Management highlighted the focus on the Performance TV market, moving down-market towards smaller businesses, and AI initiatives as key growth drivers [25] Question: What are the characteristics of new customers? - New customers are primarily small- and mid-sized businesses in e-commerce and travel, with a growing number of performance agencies also joining [29] Question: Can you provide insights on QuickFrame AI? - QuickFrame AI has seen strong adoption, enabling customers to create TV commercials faster and at lower costs, with ongoing improvements based on user feedback [37] Question: What are the benefits of adding more sales force? - The new sales hires are focused on both mid-sized and small businesses, aiming to drive future revenue growth [41] Question: How does the company measure attribution in CTV? - The company utilizes Verified Visits and an Identity Graph to provide comprehensive attribution measurement, connecting viewing data across devices [61] Question: What is the long-term target for margins? - The long-term target for gross margin is 75%-80%, and for Adjusted EBITDA margin, it is 35%-40% [76]