Advertisers now have access to a transparent view into where their ads are being delivered across all their CTV buys to enable them to find the most efficient pathways for their ad dollars. QSP is available across all major DSPs with strength in the second quarter on DV360 launched in the first quarter and on Amazon DSP launched late last year. QSP is part of Total Media Performance or TMP, an AI-driven bundle of our leading measurement and optimization solutions. According to our study of a client campaign ...

Financial Data and Key Metrics Changes - Total revenue increased by 16% to $149 million, exceeding prior expectations due to higher spending on social measurement offerings and optimization products [24] - Adjusted EBITDA increased by 12% to $52 million, maintaining a 35% margin, driven by higher revenue [30] - Net income for the second quarter was $16 million, or $0.10 per share, compared to $8 million, or $0.05 per share in the prior year [30] Business Line Data and Key Metrics Changes - Optimization revenue grew by 16% to $68 million, benefiting from the industry's shift towards performance products [24] - Measurement revenue increased by 8% to $57 million, with social media revenue growing by 22%, representing 60% of measurement revenue [25] - Publisher revenue rose by 36% to $24 million, representing 16% of total revenue, driven by new CTV products and OEM partnerships [26] Market Data and Key Metrics Changes - International revenue grew by 8% to $43 million, representing 30% of total revenue, with 45% of measurement revenue coming from outside The Americas [27] - The company continues to see strong demand in EMEA and APAC, particularly in social optimization and CTV products [58] Company Strategy and Development Direction - The company is focused on expanding its AI infrastructure to enhance customer relationships and drive demand in the evolving AI landscape [6] - Strategic partnerships with major broadcasters and technology companies are being pursued to enhance product offerings and market reach [15][20] - The company is investing in new capabilities, including GenAI, to accelerate activation and deliver actionable insights [17] Management's Comments on Operating Environment and Future Outlook - Management raised the full-year outlook based on positive second-quarter performance, expecting continued growth in the advertising environment [32] - The company anticipates maintaining gross margins in the range of 77% to 79% for the full year [34] - Management expressed confidence in the ongoing strength of the Oracle business and the adoption of optimization solutions [40] Other Important Information - The company received the first ethical artificial intelligence certification from the Alliance for Audited Media, highlighting its commitment to responsible AI use [20] - The company appointed a new CFO, Alpanna Wagner, who brings over 25 years of financial leadership experience [21] Q&A Session Summary Question: Progress on onboarding Oracle customers - Management noted strong momentum with Oracle customers, with a focus on cross-selling and upselling optimization solutions [39] Question: Critical mass for social optimization adoption - Management indicated that they are seeing significant adoption of pre-bid social optimization, particularly in EMEA, and highlighted a new partnership with Meta for Threads [44] Question: Drivers of growth in the Publisher segment - Management attributed the 36% growth in the Publisher segment to expanding OEM partnerships and the adoption of new CTV products [52] Question: Guidance for Q3 across business lines - Management expects measurement to grow in the high single digits, optimization in the mid-teens, and strong double-digit growth in the Publisher segment [56] Question: Volatility in measurement and optimization segments - Management acknowledged the volatility but emphasized the overall strength and growth across all business lines, particularly in social and CTV [65] Question: Drivers of optimization average CPM growth - Management explained that optimization pricing increased by 10% year over year due to the adoption of QSP, despite a deceleration in optimization volumes [69] Question: Advertiser adoption of Meta optimization products - Management reported that the number of brands adopting Prebid Social on Meta has more than doubled, with significant international adoption [71]

Financial Data and Key Metrics Changes - Revenue in Q4 2024 increased 14% to $153 million, with a 40% adjusted EBITDA margin [6][37] - Full year 2024 revenue grew 12% to $530.1 million, achieving a 36% adjusted EBITDA margin [6][38] - Adjusted EBITDA for Q4 increased 29% to $61.4 million, with a margin increase from 35% to 40% year-over-year [44][49] - Net income for Q4 was $15.3 million or $0.09 per share, compared to $10.2 million or $0.06 per share in Q4 2023 [45][49] Business Line Data and Key Metrics Changes - Optimization revenue grew 11% to $70.6 million in Q4 [39] - Measurement revenue increased 12% to $59.1 million, with social media revenue growth at 25% [40] - Publisher revenue rose 30% to $23.4 million, driven by new product adoption and increased political spend [41] - International revenue grew 13% to $49 million, representing 32% of total revenue [42] Market Data and Key Metrics Changes - 32% of Q4 revenue came from markets outside of the Americas, with 45% of measurement revenue from international sources [17][42] - The US CTV market is projected to exceed $47 billion by 2028, indicating significant growth potential [15] Company Strategy and Development Direction - The company aims for continued double-digit growth in 2025, focusing on performance, reach expansion, and innovation [7][27] - Plans to expand into China and enhance operations in key APAC markets, unlocking significant digital ad spend opportunities [18][69] - The introduction of new capabilities in measurement and optimization products is expected to drive future growth [7][27] Management's Comments on Operating Environment and Future Outlook - Management noted a positive impact from political spending on the publisher side, while advertiser spending improved in retail and CPG sectors [104] - The shift towards real-time bidding in CTV is viewed as a tailwind for the business, with strong growth in publisher performance [105][106] - The company expects to deliver double-digit profitable growth in 2025, supported by ongoing investments in differentiated products [33][50] Other Important Information - The appointment of Jill Puttman as interim CFO was announced, bringing extensive finance experience to the role [34][83] - The company reduced long-term debt by $30 million to $35 million during the quarter [46] Q&A Session Summary Question: Impact of political spending and CTV shift - Political spending had limited impact on advertiser business but benefited the publisher side, with strong growth in retail and CPG [104] - The shift to real-time bidding in CTV is seen as beneficial, with a 30% year-over-year growth in the segment [105][106] Question: Pricing dynamics and measurement growth - The company experienced competitive pricing dynamics during RFPs, with strong adoption of total media quality (TMQ) across social platforms [110][111] - The pre-bid product on Meta has shown a 71% reduction in wasted ad spend, indicating strong early adoption [115] Question: Long-term visibility with pre-bid and post-bid products - The focus on performance and linking media quality signals with cost data enhances revenue forecasting and visibility [124][125] - The company is seeing strong adoption of pre-bid products, which is expected to improve overall business visibility [124] Question: Growth outlook by segment - Total advertiser revenue is expected to have double-digit growth, with measurement anticipated to see single-digit growth initially [128]