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Financial Data and Key Metrics Changes - The company exceeded guidance in Q1 with a year-over-year revenue growth of 21%, up from 17% in the second half of the previous year, excluding the impact from a large DSP buyer and political advertising [5][27] - Adjusted EBITDA for Q1 was $8.5 million, representing a 13% margin, marking the thirty-sixth consecutive quarter of adjusted EBITDA profitability [32][34] - The company reported a GAAP net loss of $9.5 million, or -$0.20 per diluted share [34] Business Line Data and Key Metrics Changes - Omnichannel video revenues grew 20% year-over-year, accounting for 40% of total revenues, driven by strong CTV revenues which increased over 50% year-over-year [28] - Emerging revenue streams more than doubled year-over-year, with the Connect business continuing its rapid growth trajectory [29] - Display revenue declined 10% year-over-year, but excluding the large DSP buyer, all other display revenues grew over 20% year-over-year [29] Market Data and Key Metrics Changes - Ad spend for the top 10 ad verticals grew in the mid-single-digit percentages year-over-year, with health and fitness, food and drink, and style and fashion increasing over 10% [31] - The Americas and EMEA regions saw slight declines, while APAC grew over 8% year-over-year [32] Company Strategy and Development Direction - The company is focused on three guiding principles: anticipating shifts in advertising growth, closely managing costs, and aligning investments towards high-growth opportunities [11] - The company plans to leverage the anticipated shift from linear TV to streaming and expects increased spend consolidation as marketers seek greater efficiencies [12][14] - Investments in AI and generative AI are expected to drive growth and create efficiencies, with the launch of an end-to-end AI-powered platform [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macroeconomic uncertainty, believing that digital advertising will emerge stronger post-recession [10][36] - The company anticipates continued growth in the second half of the year, with expectations of 15% plus growth in underlying business [39][40] - Management noted that advertisers are not currently pulling back on ad spend, and trends indicate a shift towards programmatic advertising [64][70] Other Important Information - The board of directors expanded the share repurchase plan by an additional $100 million, reflecting confidence in the company's strategy and financial profile [26] - The company has generated nearly $350 million in net cash from operations over the last four years, with $15.6 million in net cash provided by operating activities in the quarter [35] Q&A Session Summary Question: Update on Google antitrust ruling and its impact - Management indicated that the DOJ is assessing potential remedies, and the ruling has created opportunities for the company to gain market share as advertisers seek alternatives to Google [44][46] Question: Future of Supply Path Optimization (SPO) - Management believes SPO could reach as high as 75% of the business in the long term, with significant growth opportunities from existing relationships and new advertisers [48][49] Question: Trends with key DSP partner - Management noted stability in volumes with the key DSP partner, with expectations for solid performance in the second half of the year as they lap the impact of the DSP change [52][53] Question: Macro environment and ad spend outlook - Management observed that advertisers are scenario planning but are not pulling back on ad spend, with expectations for continued growth in CTV and other high-engagement formats [63][70] Question: Future roadmap for driving ROAS - Management outlined three key drivers for improving ROAS: leveraging first-party data, enhancing supply chain efficiency, and building performance solutions [84][87] Question: Breakdown of growth expectations - Management clarified that the anticipated 15% plus growth excludes the impact from the large DSP buyer and political advertising, with expectations for strong momentum in the second half of the year [89][90]

Financial Data and Key Metrics Changes - The company exceeded guidance in Q1 2025 on both revenue and adjusted EBITDA, with year-over-year revenue growth accelerating to 21%, up from 17% in the second half of the previous year [5][27] - Adjusted EBITDA for Q1 was $8.5 million, representing a 13% margin, marking the thirty-sixth consecutive quarter of adjusted EBITDA profitability [31] - The company reported a GAAP net loss of $9.5 million, or -$0.20 per diluted share [34] Business Line Data and Key Metrics Changes - Omnichannel video revenues grew 20% year over year, accounting for 40% of total revenues, driven by strong CTV revenues which increased over 50% year over year [28] - Emerging revenue streams more than doubled year over year, with the curation and data business, Connect, continuing its rapid growth trajectory [28][22] - Display revenue declined 10% year over year, but excluding the impact of a large DSP buyer, all other display revenues grew over 20% year over year [29] Market Data and Key Metrics Changes - Ad spend for the top 10 ad verticals grew in the mid-single-digit percentages year over year, with health and fitness, food and drink, and style and fashion increasing over 10% [30] - The Americas and EMEA regions saw slight declines, while APAC grew over 8% year over year [30] Company Strategy and Development Direction - The company is focused on three guiding principles: anticipating advertising growth shifts, closely managing costs, and aligning investments towards high-growth opportunities [10] - The company plans to leverage the anticipated shift from linear TV to streaming and the increased reliance on programmatic advertising [11][12] - Investments in AI and generative AI are expected to drive growth and create efficiencies, with the launch of a GenAI powered end-to-end platform [14][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macroeconomic uncertainty, believing it creates opportunities for growth in digital advertising [9][36] - The company anticipates continued growth in the second half of the year, with expectations of 15% plus growth in underlying business [39] - Management highlighted the importance of maintaining strong relationships with customers and adapting to changes in ad spend behavior [9][66] Other Important Information - The board of directors expanded the share repurchase plan by an additional $100 million, reflecting confidence in the company's strategy and financial profile [26] - The company has generated nearly $350 million in net cash from operations over the last four years, with $15.6 million in net cash provided by operating activities in the quarter [35] Q&A Session Summary Question: Update on Google antitrust ruling and its impact - Management noted that the DOJ is assessing potential remedies and that the ruling has created a more competitive environment, allowing for potential market share gains for the company [43][45] Question: Future of Supply Path Optimization (SPO) - Management believes SPO could reach as high as 75% of the business in the long term, with significant growth opportunities from existing relationships and new advertisers [47][48] Question: Trends with key DSP partner - Management indicated stability with the key DSP partner, with expectations for solid performance in the second half of the year as they lap the impact of changes made last year [51][52] Question: Macro environment and ad spend outlook - Management observed that advertisers are scenario planning but are not currently pulling back on ad spend, with expectations for continued growth in CTV and other high-engagement formats [61][66] Question: Future roadmap for curation and data products - Management outlined three key drivers for improving return on ad spend: leveraging first-party data, enhancing supply chain efficiency, and building performance solutions [80][82]

Financial Data and Key Metrics Changes - Revenue growth for 2024 was 9% over 2023, more than doubling the previous year's growth rate [10][45] - Adjusted EBITDA margins expanded to 32%, marking a return to the "Rule of 40" benchmark [11][46] - Q4 revenue, excluding a specific DSP impact and political advertising, increased by 16% year-over-year [12][39] - Full-year net income was $12.5 million, or $0.23 per diluted share [56] Business Line Data and Key Metrics Changes - CTV revenue more than doubled in 2024, representing 20% of total revenue in Q4 [45][52] - Mobile app business grew 16% year-over-year, also accounting for 20% of total revenue [45] - Emerging revenue streams doubled in 2024, with Connect, the curation and data business, growing 140% year-over-year [53][96] Market Data and Key Metrics Changes - Omni-channel video revenue reached over 40% in Q4, with half coming from CTV [20] - The company now works with 80% of the top 30 global streamers, up from 70% a quarter ago [21][103] - Political advertising contributed approximately 6% of total revenue in 2024 [68] Company Strategy and Development Direction - The company is focusing on high consumer engagement channels such as CTV, mobile app, and commerce media to drive growth [14][40] - Investments in product innovation and generative AI are expected to enhance operational efficiency and customer engagement [17][36] - The strategy includes diversifying revenue streams and increasing the value of ad impressions through data curation [34][95] Management's Comments on Operating Environment and Future Outlook - Management anticipates a challenging first half of 2025 due to a DSP headwind but expects underlying business growth of 15%+ year-over-year [61][72] - The company is confident in its ability to execute its growth strategy and deliver healthy margins [72] - The shift towards sell-side targeting is seen as a significant opportunity, driven by the decline of third-party cookies [90][92] Other Important Information - The company ended 2024 with $141 million in cash and marketable securities and no debt [48][60] - A share repurchase program has resulted in an 8% reduction in fully diluted shares outstanding [48][60] - The company is targeting a full-year adjusted EBITDA margin in the high 20% range for 2025 [70] Q&A Session Summary Question: Can you talk about month-on-month trends and overall CPM trends? - Management noted that the softness in Q4 was primarily due to one DSP's bidding changes, while CPMs were positive throughout the year [76][78] Question: Why is the impact limited to display, and is there a need to address the relationship with the DSP? - The impact is due to a structural change in the DSP's bidding approach, which has historically affected display formats [84][86] Question: What are the secular shifts in the industry driving the data opportunity? - The industry is shifting towards sell-side targeting due to the decline of cookies and the strength of first-party data [90][92] Question: Can you discuss the success and growth of Activate? - Activate has seen 6x growth year-over-year, simplifying the digital advertising supply chain and driving performance [112][114] Question: What is the outlook for CTV and its evolution? - CTV is transitioning towards programmatic buying, with significant opportunities in auction packages and managing yield for publishers [134][136]