Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2025 was $10.1 million, a decrease of $11.7 million compared to $21.9 million in Q2 2024 [12] - Sell side revenue was $2.5 million in Q2 2025, down from $14.3 million in 2024, primarily due to a decrease in impression inventory caused by a business disruption in May 2024 [12][13] - Buy side revenue increased slightly to $7.7 million from $7.6 million in 2024, indicating a modest recovery [13] - Gross margin improved to 35% in Q2 2025 from 27% in 2024, attributed to a higher proportion of buy side revenue [13] - Operating expenses decreased by 25% to $6 million compared to $8 million in the same period last year [13] - Net loss for Q2 2025 was $4.2 million, or $0.23 per share, compared to a net loss of $3.1 million, or $0.16 per share, in Q2 2024 [15] Business Line Data and Key Metrics Changes - The buy side segment showed modest year-over-year growth, contributing to improved gross profit margins of 35% [6] - The sell side business is in recovery, with efforts to restore relationships that were paused in May 2024 [6][7] - Colossus Connections, launched in 2024, is performing well with several mid and top-tier DSP partners nearing integration completion [8][17] Market Data and Key Metrics Changes - The company is experiencing a recovery in the sell side business, which historically drove significant revenue growth [7] - The integration of DSP partners is taking longer than anticipated, influenced by macroeconomic conditions [21][22] Company Strategy and Development Direction - The company is focused on rebuilding and growing its business back to historical revenue levels and profitability [5] - A revenue diversification strategy is being executed to enhance growth, particularly in the buy side segment [6] - Direct Connections are prioritized for the sell side segment to drive revenue recovery [7] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding revenue guidance due to macroeconomic uncertainties and integration timing [10][21] - The company expects a strong second half of the year driven by enhanced buy side activity and the ongoing recovery of the sell side business [16] - There is an emphasis on cost savings initiatives, with a 25% reduction in total operating expenses [10][14] Other Important Information - The company ended the quarter with cash and cash equivalents of $1.6 million, up from $1.4 million at the end of 2024 [16] - Total cash plus accounts receivable was $5.5 million, down from $6.4 million at year-end 2024 [16] Q&A Session Summary Question: Revenue outlook and integration delays - Management indicated that both macroeconomic issues and integration delays contributed to the decision to adjust revenue guidance for the second half of the year [21][22] Question: Impact of key client on guidance - Management clarified that the loss of business from a key client did not significantly impact the decision to revise guidance, as direct connections were being prioritized [30][31] Question: Revenue uplift from direct connections - Management stated that leveraging direct connections typically results in a 5% to 10% revenue uplift compared to traditional exchanges [32][33] Question: Competitive advantage of direct connections - Management noted that having direct connections helps reduce transaction costs and has been beneficial in securing partnerships with large agencies [35]

Financial Data and Key Metrics Changes - For the full year 2024, the company delivered revenue in line with significantly revised guidance, despite a challenging year [8] - Fourth quarter revenue was $9.1 million, a decrease of 31.9% from $41 million in the same period of 2023 [21] - Gross margin increased from 23% in the prior year to 32% in Q4 2024 due to a higher mix of buy-side revenue [16] - Operating expenses for Q4 2024 were $7.7 million, down from $18.1 million in the same period of 2023 [24] - Adjusted EBITDA for Q4 2024 was a loss of $3.4 million compared to a loss of $6.6 million in the same period of 2023 [25] Business Line Data and Key Metrics Changes - Sell-side revenue fell to $2.7 million in Q4 2024 from $33.4 million in Q4 2023, primarily due to a major customer's suspension following a defamatory article [21][22] - Buy-side revenue decreased to $6.4 million in Q4 2024 from $7.6 million in the same period of 2023, impacted by reduced spending from certain customers [23] Market Data and Key Metrics Changes - The company is seeing sequential improvement in the first quarter of 2025 compared to November and December 2024, indicating a recovery trend [20] - Political advertising represented 50% to 60% of spending in Q4, significantly higher than the historical range of 10% to 15% [34] Company Strategy and Development Direction - The company is focused on diversifying revenue sources and optimizing its business model, including the launch of Colossus Connections to enhance direct integration with demand-side platforms [12][13] - The strategy includes targeting small- and mid-size clients who are shifting advertising budgets to digital, emphasizing a high-touch client relationship [15] - The company is pursuing opportunities in the middle market, which is seen as a growth area due to its slower transition to digital [42][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to scale both buy-side and sell-side businesses, reiterating revenue guidance of $90 million to $110 million for fiscal 2025 [19][28] - The second half of 2025 is expected to deliver strong gains as new direct sell-side partners come online [19][28] - Management noted that the company is well-positioned to capture market share and strengthen its offerings in the advertising technology space [20] Other Important Information - The company ended the year with cash and cash equivalents of $1.4 million, down from $5.1 million at the end of 2023 [26] - The company is actively pursuing funding and equity financing pathways to restore NASDAQ compliance and support growth initiatives [26] Q&A Session Summary Question: Impact of post-election malaise on Q4 and client spending recovery - Management noted that political spending was significantly higher in Q4, but December was softer than anticipated, impacting overall performance [34][35] Question: Aggressiveness on direct connections and curation strategy - The company sees opportunities in the middle market and plans to focus on expanding relationships with holdco-partners while also exploring curation opportunities [42][47] Question: Cost savings and annualized basis expectations - Management indicated potential annualized cost savings of $1.5 million to $2 million for 2025, reflecting ongoing operational optimizations [71] Question: Anticipation of positive cash flow - Management expects to return to a more normal cadence of cash flow in the third and fourth quarters of 2025 [73]

Financial Data and Key Metrics Changes - For the full year 2024, the company delivered revenue in line with significantly revised guidance, despite a challenging year [8] - Fourth quarter revenue was $9.1 million, a decrease of 31.9% from $41 million in the same period of 2023 [21] - Gross margin increased from 23% in the prior year to 32% in Q4 2024 due to a higher mix of buy-side revenue [16] - Operating expenses for Q4 2024 were $7.7 million, down from $18.1 million in the same period of 2023 [24] - Adjusted EBITDA for Q4 2024 was a loss of $3.4 million compared to a loss of $6.6 million in the same period of 2023 [25] Business Line Data and Key Metrics Changes - Sell-side revenue fell to $2.7 million in Q4 2024 from $33.4 million in Q4 2023, primarily due to a major customer's suspension following a defamatory article [21][22] - Buy-side revenue decreased to $6.4 million in Q4 2024 from $7.6 million in Q4 2023, impacted by reduced spending from certain customers [23] Market Data and Key Metrics Changes - The company is seeing sequential improvement in the first quarter of 2025 compared to November and December 2024, indicating a recovery trend [20] - Political advertising represented 50% to 60% of spending in Q4, significantly higher than the historical range of 10% to 15% [34] Company Strategy and Development Direction - The company is focused on diversifying revenue sources and optimizing its business model, including the launch of Colossus Connections to enhance direct integrations with demand-side platforms [12][13] - The strategy includes targeting small- and mid-size clients who are shifting advertising budgets to digital, emphasizing a high-touch client relationship [15] - The company is pursuing opportunities in the middle market, which is seen as a growth area due to its slower transition to digital [42][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to scale both buy-side and sell-side businesses, reiterating revenue guidance for fiscal 2025 in the range of $90 million to $110 million [19][28] - The second half of 2025 is expected to deliver strong gains as new direct sell-side partners come online [19][28] Other Important Information - The company ended the year with cash and cash equivalents of $1.4 million, down from $5.1 million at the end of 2023 [26] - The company is actively pursuing funding and equity financing pathways to restore NASDAQ compliance and support growth initiatives [26][27] Q&A Session Summary Question: Impact of post-election malaise on Q4 and client spending recovery - Management noted that political spending was significantly higher in Q4, but December was softer than expected, impacting overall performance [35][36] Question: Initiatives on direct connections and middle market opportunities - Management confirmed a focus on developing new pathways for buyers and sellers, particularly in the middle market, which is seen as a ripe opportunity for growth [42][44] Question: Cost savings and annualized impact - Management indicated that there could be an additional $1.5 million to $2 million in annualized savings for 2025 due to cost-cutting measures [71] Question: Anticipation of positive cash flow - Management expects to return to a more normal cadence of cash flow in the third and fourth quarters of 2025 as revenue initiatives take effect [73]