NASDAQ:DSP Viant Technology Q2 2024 Earnings Report $14.54 +0.14 (+0.97%) Closing price 05/2/2025 04:00 PM EasternExtended Trading$14.63 +0.09 (+0.62%) As of 05/2/2025 06:33 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast Viant Technology EPS ResultsActual EPS-$0.19Consensus EPS -$0.09Beat/MissMissed by -$0.10One Year Ago EPSN/AViant Technology Revenue ResultsActual Revenue$41.56 millionExpected Revenue$41.10 millionBeat/MissBeat by +$460.00 thousandYoY Revenue GrowthN/AViant Technology Announcement DetailsQuarterQ2 2024Date8/12/2024TimeN/AConference Call DateMonday, August 12, 2024Conference Call Time5:00PM ETUpcoming EarningsViant Technology's Q1 2025 earnings is scheduled for Tuesday, May 6, 2025, with a conference call scheduled at 4:00 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Q1 2025 Earnings ReportConference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Viant Technology Q2 2024 Earnings Call TranscriptProvided by QuartrAugust 12, 2024 ShareLink copied to clipboard.There are 11 speakers on the call. Operator00:00:00Hello, everyone, and welcome to the Viant Technology's Q2 2024 Earnings Conference Call. My name is Annabeth, and I will be your operator today. Before I hand the call over to the Viant leadership team, I'd like to go over just a few housekeeping notes for the program. As a reminder, this call is being recorded. After the speakers' remarks, there will be a question and answer session. Operator00:00:25If you plan to ask a question, please ensure you've set your Zoom name to display your full name and firm. If you would like to ask a question during this time, please use the raise hand function located at the bottom of your screen. Thank you for your attendance today. And I will now turn the call over to Nicole Kuntz Kunzmann from The Blueshirt Group. Speaker 100:00:45Thank you, Annabeth. Good afternoon, and welcome to Viant Technology's Q2 2024 Earnings Conference Call. On the call today are Tim Vanderhoek, Co Founder and Chief Executive Officer Chris Vanderhoek, Co Founder and Chief Operating Officer and Larry Madden, Chief Financial Officer. I'd like to remind you that we will make forward looking statements on our call today, including but not limited to our guidance for Q3 2024, our platform development initiatives and industry trends that are based on assumptions and subject to future events, risks and uncertainties that could cause actual results to differ materially from those projected. These forward looking statements speak only as of today, and we undertake no obligation to update or revise these statements except as required by law. Speaker 100:01:30For more information about factors that may cause actual results to differ materially from forward looking statements in our entire safe harbor statement, please refer to the news release issued today as well as the risks and uncertainties described in our quarterly report on Form 10Q for the quarter ended June 30, 2024 under the heading Risk Factors and in our filings with the SEC. During today's call, we will also present both GAAP and non GAAP financial measures. Additional disclosures regarding these non GAAP measures, including a reconciliation of non GAAP financial measures to the most directly comparable GAAP financial measures, are included in the news release issued today and in our earnings presentation, which have been posted on the Investor Relations page of the company's website and in our filings with the SEC. I would now like to turn the call over to Tim Vanderhook, Chief Executive Officer of Viant. Tim? Speaker 200:02:22Thanks, Nicole, and thanks, everyone, for joining us today. We saw continued momentum in the Q2 with record advertiser spend on our platform, a notable milestone that exceeded our seasonally strong Q4 of 2023. Revenue in Q2 grew 15% year over year, while contribution ex TAC grew 23%. Our ongoing focus on improving efficiency and disciplined expense management continues to drive outperformance in adjusted EBITDA, which increased 41% year over year to $9,600,000 in the quarter. I am pleased with our team's ongoing commitment to innovation and execution, which drove our consistency and strong results. Speaker 200:03:10We remain laser focused on building on our differentiated position as one of only a couple independent self-service buy side platforms in the market. As advertisers look for alternatives to the largest legacy players in the industry, Viant is capitalizing on the shifting sentiment and committed to growing our market share across the programmatic advertising market. Discussions across the ecosystem, such as the Department of Justice's antitrust lawsuit against Google, demonstrate that advertisers are unhappy with the dominating behavior of a handful of players in the industry. Many ad tech partners are frustrated with the centralized power exerted over the ecosystem. Our ability to capitalize on this changing sentiment is reflected in our results and the growing number of partnerships and integrations we are building. Speaker 200:04:06Major content owners, data companies, agencies and advertisers are coming to us for an alternative solution to the largest DSPs in the market. We believe we are uniquely positioned to capitalize on this changing sentiment. A key area of differentiation for us is our vision for autonomous advertising, supported by our award winning and ever evolving suite of AI products and features. Today, I am thrilled to announce a significant milestone in our journey. Given the amount of AI related initiatives in development, we are ready to properly brand our AI suite. Speaker 200:04:49So today, we are announcing the rebranding of our AI suite under the name Viant AI. Viant AI is designed to revolutionize digital ad campaigns by seamlessly crafting high impact, multichannel ad experiences that reach the right audience at the right time with precision. We are rebranding our suite of AI products previously announced as bid optimizer, chat with data and AI recommendations under Viant AI. Viant AI is focused on developing AI agents that deliver automation for the 4 key components of programmatic advertising: planning, buying, measurement and optimization. Under planning, our latest innovation is a large language model or LLM. Speaker 200:05:43Already launched internally, it delivers comprehensive omnichannel media plans in seconds. This LLM has been heavily trained on thousands of ad campaigns, encompassing years' worth of historical ad spend, enabling us to create high impact media plans that are designed to achieve the goals of any advertiser. This includes selecting high quality CTV apps, mobile apps, websites and digital out of home locations. It makes recommendations of campaign budgets across channels like display, CTV, streaming audio and digital out of home. We are showcasing this to clients now and are receiving tremendous feedback. Speaker 200:06:28Under buying, we released version 2 of our bid optimizer in Q2. The improvements achieved with version 2 are substantial and Chris will talk more about this in a bit. For measurement, we previously announced chat with data, which is continuing to be tested internally with live customer data. We have made great strides and expect this product to be out in Q4. Our final phase towards full autonomy is the application of autonomous optimization, which we expect to release in 2025. Speaker 200:07:03This will be an AI driven agent that dynamically adjusts campaigns in real time, employing advanced ad strategies like channel allocation, publisher selection, dayparting and audience discovery. Investing in Viant AI is investing in the future of advertising. We are excited about the transformative impact that will have and we'll look forward to sharing more updates as we progress. Our vision is resonating with customers who are continuing to scale with us as evidenced by the expansion we are seeing with our largest customer cohort. Our top 100 customers where we have grown contribution ex TAC 29% on a trailing 12 month basis. Speaker 200:07:48We are scaling well with our agency partners and continue to add new advertisers within these agencies, which we believe is a testament to the superior service and results we are driving for them. We expect to continue to capitalize on the market tailwinds in our favor and drive more spend from existing customers. We also have had great success this year attracting new customers to our platform, which Larry will talk more about shortly. Our pipeline of large customers continues to grow and we feel very good about our ability to win more of these advertisers over the long term. Our success with customers is also driven by our focus and investments into the fastest growing channels in programmatic, notably CTV and streaming audio. Speaker 200:08:38We continued to see particularly strong momentum in these channels, with both reaching record spend levels in the quarter. The growth in CTV spend on our platform continues to outpace the market, growing more than 40% year over year in the quarter, while streaming audio almost doubled year over year. Together, these channels represented more than 50% of spend on our platform in the quarter. We expect them to continue to see out sized growth relative to other programmatic channels as they provide access to some of the most premium content in the market at scale, while also allowing for advanced targeting and measurement capabilities despite the absence of cookies. We are continuing to make investments in our direct access program, which gives our customers more seamless access to these channels, and Chris will touch on this in a bit more. Speaker 200:09:35In addition, our patented household ID technology continues to be a differentiator for us in the market, enabling customers to plan, buy and measure campaigns across all channels regardless of the presence of cookies. Before turning things over to Chris, I wanted to share some thoughts on Google's recent announcement to reverse course on cookie deprecation. We touched on this briefly last quarter, but this news doesn't change our overall vision of making programmatic advertising easier, more efficient and more effective for our customers with leading measurement and targeting capabilities across all ad formats. CTV is a core driving force across the ad industry as a whole, beyond even linear TV and social channels. And the only way to plan, execute and measure omnichannel campaigns to include CTV is with alternative identifiers such as our household ID. Speaker 200:10:35As we noted last quarter, less than 10% of spend across our platform leverages third party cookies And we see this number continuing to shrink over time given the industry's increasing focus on cookie free channels like CTV. If anything, we believe this announcement from Google is helpful for the industry as it eliminates the uncertainty overhang that has been complicating the landscape for the last few years. Our long term strategy and focus remain unchanged, and we look forward to continuing to drive growth and capture share in this very large and growing market for programmatic advertising. With that, I'll turn it over to Chris. Speaker 300:11:18Thanks, Tim. I wanted to spend a few minutes today on our recent product updates and dig deeper on some of the positive business dynamics that we are seeing. We were excited to officially rollout Bit Optimizer 2.0 in June, which is driving significant savings over what we saw in version 1.0. As a reminder, Bid Optimizer is an AI agent bidding solution, which enables marketers to achieve better bid price discovery, real time data processing and predictive ad performance, saving customers time and money by achieving lower CPMs and driving higher return on ad spend. Our upgraded solution is powered by a deep learning neural network trained on Viant's entire bid stream and is capable of processing millions of requests per second. Speaker 300:12:07Bit optimizer also now running on over 65% of the impressions on our platform, up from 50% under version 1.0, which notably expands the number of impressions and potential cost savings that we can pass along to our customers. A powerful example of customer savings with Bit Optimizer has been Juice Media, who began using the product in Q3 2023. They share that they have seen significant savings in media costs and for one client in particular, they tripled their performance with the help of Bit Optimizer. This feedback shows that our customers are benefiting from the cost savings and better performance, which has driven more spend to our platform since its rollout. We're excited about the early adoption we are seeing and we expect to continue to build on Bit Optimizer 2.0 to drive incremental savings for our customers. Speaker 300:13:00Next, we are seeing continuing increased demand for our advanced reporting solutions, which are becoming a meaningful driver of contribution ex TAC. These solutions provide advertisers with closed loop return on ad spend as well as lift and incrementality reporting, integrating both online and offline activity which is becoming increasingly important for customers. We have seen that marketers are willing to pay for advanced reporting because they are losing signal in certain channels and are having a hard time figuring out what is really driving campaign performance. Within walled gardens, advertisers get data on attribution and last click behavior, but clients are getting smarter and are really looking for reliable data that shows what's driving incremental contribution or incremental sales. Customers value the capabilities and completeness of the advanced reporting solutions we offer and we expect these products will continue to drive revenue and contribution ex TAC in the coming quarters. Speaker 300:14:02Another dynamic at play in the industry is the acceleration of streaming and the growing dissatisfaction with walled gardens, which is driving more dollars to CTV. Analytics prove out that CTV drives incremental impact and outcomes where the walled gardens merely show ads to people who are already going to make a purchase. This is why so many consumers continue to see ads for products and companies that they already buy from. The data is clear that CTV is the most impactful channel for creating new demand. We show clients all the time that if you want to grow your revenue, allocate more dollars to CTV. Speaker 300:14:42Our direct access offering in CTV is a significant differentiator for us and a major reason why advertisers are increasingly choosing the Viant DSP. There are a number of benefits of direct access that are driving customer adoption. The first is that we are targeting logged in users of premium CTV content owners, which enables the same addressability as walled gardens. 2nd is that we are bringing the world's most premium content directly to advertisers and eliminating non value added middlemen. This lowers the price of premium CTV in our platform because clients know they are buying directly from the source. Speaker 300:15:24The quality and scale of the content partners who have joined direct access is an incredible list that now includes Disney, Paramount, Warner Brothers Discovery, NBC Universal, Roku, Samsung, Vizio, and many other premium content owners and platforms. Advertisers today much prefer structuring campaigns around premium publisher content over user generated content on social channels. And third, we are experiencing a new paradigm with the accelerating rise of streaming and the growing dissatisfaction with the walled gardens, with the larger players trying to set the rules for ad tech. As we continue to scale our direct access program, we provide improved addressability and industry leading measurement to deliver real contribution for advertisers. Our direct access program continues to resonate with advertisers and in Q2, well over half of our CTV spend came through direct access, more than twice the amount of spend versus the prior year period. Speaker 300:16:29We expect this trend to continue moving forward given the superior performance that our clients are experiencing due to the content quality, addressability, transparency and efficiency offered by Direct Access. And finally, I want to add to what Tim touched on in terms of our differentiation in the market, regardless of the presence of cookies across the ecosystem. We recently conducted a market test in conjunction with Havas Media Network, one of the largest media holding companies in the world, to measure the effectiveness of our household ID versus cookies. The test was run for a client in the healthcare space to compare the success rates of 2 campaigns, one conducted using cookies and the other using the Viant household ID. The cookieless approach, which leveraged our household ID technology, achieved 100% scale and a 93% unique reach across premium publishers, demonstrating how our platform delivers a scalable identity solution for their clients. Speaker 300:17:30Other cookie list tests have been done with other platforms that have had underwhelming results as they have stalled out in scaling their alternative ID solutions compared to cookies. Where the Viant household ID is scaled across approximately 80% of all ad opportunities, competitive alternate IDs are available less than 15% of the time. This is a great example of our leadership in this area. And with that, I'll turn the call over to Larry to provide more detail on our financial performance. Larry? Speaker 400:18:04Thank you, Chris. Before I begin, I would like to remind everyone that we have posted a presentation to our Investor Relations website that includes supplemental financial information to accompany today's call. As Tim discussed, we continued our strong momentum in the 2nd quarter, where we achieved record spend on our platform and 23% growth in contribution ex TAC. Revenue and contribution ex TAC were both toward the high end of our guidance ranges and we once again outperformed on adjusted EBITDA. Our success in CTV and streaming audio continued to be a big driver of performance in the quarter, with record spend across both channels. Speaker 400:18:48On a combined basis, CTV and streaming audio spend grew nearly 50% year over year in Q2 and represented over 50% of total spend on our platform for the quarter. We also continued to benefit from increased customer adoption across our AI product suite, which drove meaningful incremental revenue and contribution ex TAC in the quarter. As Tim discussed, there is a shifting sentiment in the market where advertisers and partners are looking for alternatives outside the larger legacy players in the industry. This dynamic is further enabling us to continue scaling our existing customers while also adding new larger mid market customers to our platform. And as one of the few independent self serve eyesight platforms in the market, we expect that trend to continue moving forward. Speaker 400:19:46In terms of existing customers, on a trailing 12 month basis through Q2, the number of percent of spend customers generating over $500,000 of contribution ex TAC increased nearly 30% and the number of percent of spend customers generating over $1,000,000 of contribution ex TAC increased by nearly 40% on a year over year basis. We are also really pleased with the rapid scaling of new customers as the top 20 customers added in the past year generated on average nearly $300,000 of contribution ex TAC during the period. These positive customer trends have enabled us to continue outpacing overall market growth. With that, I will now turn to our results for the Q2. Revenue for the quarter was $65,900,000 an increase of 15% versus the prior year period and in the upper half of our guidance range. Speaker 400:20:44On a quarter over quarter basis, revenue increased 23% from Q1. Contribution ex tax for the quarter was $41,600,000 an increase of 23% versus the prior year period and also in the upper half of our guidance range. On a quarter over quarter basis, contribution ex TAC increased 22% from Q1. In terms of customer verticals, healthcare, consumer goods, travel, public services and automotive were the biggest drivers of growth in the quarter. In terms of channels, CTV and streaming audio are increasing in strategic value for customers and continue to drive meaningful growth on our platform. Speaker 400:21:33CTV achieved record spend levels in the quarter, growing over 40% on a year over year basis and representing more than 40% of total spend on the platform. Streamy audio also achieved record spend levels in the quarter, nearly doubling on a year over year basis and representing almost 10% of total spend on the platform. Customers are leveraging our Household ID technology to execute their omnichannel campaigns across these high engagement cookie list channels. Direct access also continues to be a differentiator for us, providing customers with higher return on ad spend versus other platforms. In terms of formats, video, which includes CTV, continued to represent over 60% of total spend on our platform in the quarter. Speaker 400:22:25And video and audio on a combined basis represented over 70 percent of total spend in the quarter. Turning now to operating expenses for the quarter. Our non GAAP operating expenses totaled $32,000,000 in Q2, representing an increase of 3% over Q1 and 19% over the prior year period. We remain focused on making strategic investments in our business, specifically around our technology and AI initiatives, to best position ourselves for long term market share gains and increasing profitability. As we invest, we also remain hyper focused on driving efficiencies internally. Speaker 400:23:08And to that end, we have been able to increase contribution ex TAC per employee by over 20% over the last 12 months. For the Q2, we generated adjusted EBITDA of $9,600,000 above the high end of our guidance and representing an increase of over 41% over the prior year period and an increase of more than 200% over the prior quarter. Adjusted EBITDA margin as a percentage of contribution ex TAC was 23% for the quarter, an improvement of 3 percentage points from the prior year period and 14 percentage points from the prior quarter. For the Q2, GAAP net income totaled $1,500,000 which compares to a GAAP net loss of $3,200,000 in the prior year period. GAAP earnings per Class A share were breakeven in the 2nd quarter, which compares to a GAAP loss per Class A share of $0.07 in the prior year period. Speaker 400:24:14Non GAAP net income, which excludes stock based compensation and other items, totaled $7,200,000 for the quarter, which compares to non GAAP net income in the prior period of $5,100,000 representing an impressive 41% year over year improvement. Non GAAP earnings per Class A share totaled $0.08 in the quarter, which compares to $0.06 in the prior year period. In terms of share count, we ended the quarter with 63,400,000 shares outstanding, consisting of 16,400,000 Class A Shares and 47,000,000 Class B Shares. We also ended the quarter with $210,000,000 in cash and cash equivalents and we had $227,000,000 of working capital and no debt at quarter end. And we continue to have access to a $75,000,000 undrawn credit facility. Speaker 400:25:12In Q2, we also generated $14,000,000 of cash flow from operations and $10,000,000 of free cash flow. Since the inception of our share repurchase program in early May 2024, we repurchased a total of 809,000 shares of Class A common stock for approximately $8,000,000 in cash Speaker 300:25:35through August Speaker 400:25:369, 2024. Accordingly, we have $42,000,000 remaining on our $50,000,000 authorized repurchase program. Turning now to our outlook. For the Q3 of 2024, we currently expect revenue in the range of $67,500,000 to $70,500,000 representing a year over year increase of 16% and a quarter over quarter increase of 5% at the midpoint. Contribution ex TAC is expected to be in the range of $44,000,000 to $46,000,000 representing year over year growth of 15% and quarter over quarter growth of 8% at the midpoint. Speaker 400:26:24Non GAAP operating expenses are expected to be between 33 $34,000,000 in Q3, representing a year over year increase of 14% and quarter over quarter increase of 5% at the midpoint. We expect adjusted EBITDA to be in the range of $11,000,000 to $12,000,000 which represents a year over year increase of 19% and a quarter over quarter increase of 20% at the midpoint. And finally, we expect an adjusted EBITDA margin as a percentage of contribution ex TAC of 26% at the midpoint. In closing, we are excited by the momentum we are seeing across our business. Our existing customers are increasing spend on our platform and we are adding new scalable customers to the mix. Speaker 400:27:17Our leadership position across CTV and streaming audio, driven in part by the value of our household ID and direct access program, continues to play a pivotal part in our overall growth and market share gains. And the increasing adoption across our expanding AI product suite is driving performance for our customers and incremental growth for the business. We remain ultra focused on building on this momentum in the quarters ahead. And with that, I will now turn it back over to the operator to open the line for questions. Operator? Operator00:28:01Thank you for that. The first question comes from Andrew Merrick at Raymond James. Your line is open. Speaker 500:28:14Hello. Thank you for taking my questions and congrats on the results. Wanted to talk a little bit about the size of the opportunity remaining. Obviously, very early days on the AI side, but hearing the tailwinds that it's providing to the business is interesting. I guess, can you give a sense of the penetration rates you're seeing with these AI enabled services among your clients right now? Speaker 500:28:37And is it just kind of a solution by solution approach or is it sort of a you get 1, you get them all? Speaker 200:28:45Hi, Andrew. It's Tim and thanks for the comments on the quarter. It's good to see you. Yeah, overall, long term, we do see it as a suite of solutions that work together. And that's again going against our goal towards autonomous advertising. Speaker 200:29:00And we tried to outline the 4 pillars where we're automating all those functions in some of our prepared remarks. So currently, it has been solution by solution. We talked about the 2nd generation of Bit Optimizer, now up to 65% of all impressions. And we've seen tremendous adoption there. I think when we complete the autonomous side at some point in 2025, the idea is that they're all working together. Speaker 500:29:28Okay, great. Thank you for that. And then maybe a quick one on direct access. So an impressive list of publisher partners heard there, but maybe one that was conspicuous in its absence was Netflix. As they're kind of building out their ad tech stack and the kind of future of their ads business? Speaker 500:29:491, how do you see that playing out? And 2, how do you see your role potentially in that? Thank you. Speaker 300:29:56Great. Thanks for that too. So, on Netflix, you know, we're going to remain on the on the buy side. And we have there was a list of partners announced there, Magnite being one of them. And so we'll have access to that. Speaker 300:30:12We think in the US, it's a we don't think it's a very scaled consumer base at this point. It is in other markets, and we operate in the US. So, hasn't been a big area for demand from our customers yet, but I think as they get more scale, that certainly will pick up. Operator00:30:35Your next question comes from Craig Hallum Jason Kreyer from Craig Hallum. Your line is now open. Speaker 600:30:48You guys hear me okay? Speaker 200:30:49Yes. Hi, Jason. Speaker 600:30:51Hey, guys. Nice quarter here. You've had the AI or the autonomous solutions in the market for a few quarters. Just curious, any pushback you get from advertisers? Anybody hesitant to adopt these solutions or maybe waiting for more proof points before they jump in? Speaker 300:31:08Yeah. I think the number one thing that we look to get, there is a there's always a trust factor you got to get to with clients. And the number one thing that we always focus on is we need to show the customer value right upfront. So marketers will will come in and they'll opt into these features or products. And they're like Bitoptimizer. Speaker 300:31:27They instantly see the savings. Version 1.0 was about 35% savings, and we're seeing a significant increase over that in 2.0. Hence, that's why you saw the adoption rate get up to around 65% in version 2.0. Coming off of 1.1.0 was just about 50%. So when you prove out the customer value, then they they really trust it, and they're they're opting into those. Speaker 300:31:51So that's that's just a big area of focus that we really that we're really trying to hammer home before we release anything. Speaker 200:31:59Yeah. And I would just say in terms of customer pushback, no. They just want to make sure it's accurate. So Bit Optimizer proves that out. Chat with data, which is taking someone's spoken language and converting it to SQL query and into the database, there's probably higher areas of concern there to make sure that the SQL is correct and the numbers they're looking at are accurate. Speaker 200:32:20So I wouldn't call it pushback, but I'd certainly say, it's looked at, under a bigger microscope. Speaker 300:32:27And I would say too, with all these products, you're really trying to elevate the human traders in the platform. We're trying to elevate their performance. And we really see these as these are like, these are assistance to them that are really helping, you know, supercharge their efforts. You know, a machine can give an insight, but it's really the human that drives it to a strategic insight. So we see that really playing really well with customers as we roll out new products. Speaker 600:32:54That's helpful to hear what advertisers are looking for. One follow-up. You made the point that large marketers are looking for alternatives to kind of the biggest industry participants. Maybe how does that, you know, in the conversations you're having with these marketers, how does that, you know, increase the opportunity for Viant or what are you hearing from them that will evolve your role going forward? Speaker 200:33:21Yeah. I think it's, you know, what are they looking for? They're looking for tools that help automate a lot of what they're doing. We've talked about this so many times before, but there's just simply too many choices in programmatic advertising. So just like you're seeing the productivity across our own on a revenue or contribution ex stack per employee, they're looking to replicate those results pretty similarly. Speaker 200:33:44What else would you add? Speaker 300:33:45I would say, you know, one is cost savings, which immediately translates into better advertising and business performance for the clients. I think we've hammered we've been hammering that drum pretty hard. Marketers know that, especially if you're buying premium ad formats that are good at creating new demand, They want to be able to do that as efficiently as possible. So, you know, everything we're doing from direct access to bid optimizer, those are the things where our marketers are seeing, hey, we need an alternative that's really doing this, not just racking up fees, not forcing us into products that some competitors might build. I think we're giving we're a great option there. Speaker 300:34:23And I would say the other one is just around our model around, focusing on the mid market. And even though we're moving up market within the mid market, a lot of larger larger clients, they really like that because we serve we service them. They like the support, and we know that they need to be successful on the platform. So being a good partner to them really helps. Speaker 400:34:46Thank you. Operator00:34:48Your next question comes from Laura Martin at Needham. Your line is open. Speaker 700:34:58Great. So my first one is, your second sentence says, we're seeing a market share shift where advertisers are increasingly looking for alternatives to the largest legged players in the industry. That implies you're including Trade Desk because you're doing more than Google. I understand why Google clients are moving to me. In cases where someone chooses buy ins over Trade Desk, why? Speaker 300:35:20I would I wouldn't say it's, you know Probably not a single reason. I would say that, you know, there's there's other scale players in the market. I would put the walled gardens in there as well. They're really looking at again, I'll I'll talk about our mid market focus. It's just a good white space area for us. Speaker 300:35:37They they want something that's not, you know, one size fits all for only the biggest multinational marketers in the world. Our clients are extremely data driven and the advertising needs to perform. So I think the products that we build really helps them drive efficiency. So that's a big area for a need for alternative. In the end, this boils down to campaign performance. Speaker 300:36:00So and I think that we live and breathe that every day. And that's why you win clients and why you keep them. But I Speaker 200:36:07would just add to that. It's the scale of the household ID rather you know, versus other DSPs, all other DSPs out there as an alternative identifier that works holistically. That continues to be a point that we're driving home. And the productivity of using our software to buy media versus a different software, I think we're starting to show market differences and we've got new products in the pipeline that I think can expand that leadership position we have today. Speaker 700:36:35Okay. And then my follow-up question is on connected television. So, I'm interested if you're seeing downward pressure on CPMs and whether if you are, whether you think that's one of the things that drove your 40% CTV revenue growth in the quarter. Speaker 200:36:52I haven't I didn't look at the exact numbers prior to the call, but nothing noticeable in terms of downward pressure on CPMs. I think the premium CTV owners get premium CPMs. If you're looking at Open Exchange or other ones there, there might be some pressure there. But there was already kind of 2 different CPM prices between those 2. So I would say both have been pretty consistent. Speaker 200:37:19And I wouldn't say a factor of our growth. Speaker 300:37:21No. I will say, though, if you just look at the upfront market, I think it was, you know, I think there was some pressure possibly on some of the premium guys. I think Netflix is, I think Netflix is I think it's recently been reported that they've come down on their CPMs. I think that that happens with some because of some of the fast channels that are out there possibly. But nonetheless, in our in our software, by the time a client moves their upfront plan into the DSP, you know, at least for the premium guys, a lot of those rates, maybe already set from their upfront buys. Speaker 300:37:53But in the spot market, we really haven't seen much of that. Speaker 700:37:57Thank you. Great numbers, guys. Speaker 200:37:59Thank you. Operator00:38:03Your next question comes from Maria Ripps at Canaccord. Your line is Speaker 800:38:11open. Great. Thanks for taking my questions. First, can you maybe talk about some of the conversations that you may have had with prospective clients who had been moving further down the sales pipeline in anticipation of Google deleting 3P cookies? Are you still expecting to acquire those customers? Speaker 800:38:27And have you seen any changes to your sales pipeline since Google's announcement? Speaker 200:38:33No, the pipeline was pretty robust leading into it. I think everyone, whether they believed Google was going to do it or not do it, everyone was already of the mindset that the time is now to start looking for alternatives. So I think a lot of those are directly in the pipeline and built in there. I do see, when cookie disruption does happen, certainly what you'll see is budget shifts from current cookie based players into the non cookie or alternative IDs. And I think that's where that final leg of the stool will kick in. Speaker 200:39:08But it's hard to us because 10% or less of our media spend is on cookies. It's hard to know how big that opportunity is transacting in cookie based DSPs. Speaker 300:39:19I think the other thing to point out too is what we where we see a shift certainly is when we talked about in the prepared remarks is away from the measurement of cookie based systems. And marketers starting to understand that, oh, just because somebody clicked on a search link, I don't assign all of the credit to that. I may have shown them a television ad. They may have had a streaming audio spot. They may have had a billboard. Speaker 300:39:45They're starting to understand that. So we actually see I haven't I have not had one conversation with an agency or a marketer since Google's recent announcement where they were just going back all into cookies. The fact is that today, it's, you know, if you look at the bitstream, it's around 30% or less, it continues to decrease every quarter. And I think with Google's announcement, at the end of the day, if they move to a user, you know, opt out or opt in on cookies, I still we still believe that that cookies are still going to continue to decrease. So marketers are certainly looking. Speaker 300:40:21They're looking at how I want to start measuring advertising based on what's creating demand versus giving credit to whatever the last ad that was shown to a person that was probably already going to buy in the 1st place. Speaker 800:40:32Got it. That's very helpful. And then how should we think about the potential benefit from political advertising, both embedded in your Q3 guide and maybe any thoughts for q4, especially now that you're, your growing exposure to, sort of streaming audio is increasing? Speaker 300:40:49I'll let Larry talk about it in the guide. But, you know, we do okay in political advertising. I think we have some good products there. In the last 2 years ago, I think we're in the kind of mid single digits. And we think it's going to kind of remain there. Speaker 300:41:06We haven't really projected in our numbers a big upside there. Speaker 200:41:09Yeah, I think one of the hardest parts for us in political advertising is a lack of awareness amongst who those controllers of those dollars are, just like some of the other areas in driving growth. I think specifically within politics, we have a lack of awareness that we're trying to change, but I don't know if we'll catch it this cycle, but Larry. Speaker 400:41:32Yeah, it'd be a little bit more specific. So in cycles such as the midterms and obviously presidential cycles, we tend to do about 2% to 3% of whatever the second half spend is. Typically see most of that coming in the second half. So we haven't assumed that we'll do more than that in our Q3 guide. Obviously, there will be some more political in Q4. Speaker 400:41:58So we'll have a better sense as we move through Q3 what that might look like. But we're assuming that it's kind of business as usual. We'll We're obviously growing, so we're by keeping it at 2% or 3%, we're taking in more money, but we're not assuming it pops this cycle. Speaker 800:42:19Got it. Thank you so much for the color. Operator00:42:22Your next question comes from Matt Condon with JMP. Your line is Speaker 900:42:31open. Thank you for taking my question. I just wanted to ask one on the data clean rooms or the Vine data platform. I see that you guys integrated with Google Cloud's BigQuery data clean rooms in the quarter. And then also you're launching chat data in 4Q. Speaker 900:42:46Can you just talk about how the Vine data platform and greater adoption there impacts the P and L? Speaker 200:42:54Yes, definitely. I mean, clean room matching is effectively replacing a process called cookie syncs. And so it's an identical process to the way the industry became interoperable historically through this concept of cookie sync tables. And cleanroom matching is doing a very similar process, but just with different types of identifiers there. And for us, our focus is interoperability. Speaker 200:43:21So we did do the Google Cloud Platform announcement in GBQ that you've noticed. We're integrated with Snowflake. We're working with AWS on it. The whole goal here is to make it interoperable so that anyone, any data company, any supply source or any advertiser that has their advertiser or excuse me, their first party data in those platforms can easily, with a single click access, drive connectivity to our platform and that data. In terms of what does it mean to the financials of the business? Speaker 200:43:57I think a lot of it comes from measurement and us basically providing better measurement to these advertisers. And we've seen measurement revenue, which is included under the Viant data platform revenue, has ticked up our contribution ex TAC. So it has an expanding, if you look at our financial profile, it will increase contribution ex TAC over time with adoption. We think, Speaker 300:44:24you know, the interoperability going back to that real quick, you know, when you're integrated with all of these other platforms, it just speeds up customer adoption. The main thing that clients want to do is be able to use their 1st party data in advertising. So when you're already integrated with the largest companies that house CRM data for any of our clients, it just makes a seamless approach of moving the first party data into their DSP and then being able to use it for targeting and measurement. Speaker 900:44:52That's super helpful. And then maybe just a follow-up. Larry, you've done a good job of driving profitability here. Just as we think about 2025 and understood you're not giving any formal guidance here in 2025. What are the key investment areas? Speaker 900:45:04And we should should we see anything different as far as any additional engineering or sales force investments in 2025? Speaker 400:45:11I think you'll see trends similar to 'twenty four. I mean, clearly we're not going to invest. Our growth in overhead is going to be slower than our growth in CXT. The investments we will make will be primarily around engineering and product and sales and certainly around all of the innovation around AI. But I would expect kind of low double digits, low teens growth in terms of investment for 'twenty five consistent with kind of what we've been doing this year. Speaker 900:45:52Great. Thank you so much. Operator00:45:55Your next question comes from Chris Connerick. Your line is now open. Speaker 1000:46:07Hi. Thanks for taking the question. Maybe a first one on direct access. Be curious to hear how you think about what inning you're in as it relates to ramping your partners and how you think about balancing, the quality of the inventory within the direct access program, versus continuing to grow it? And then Larry, maybe just a double click on the expense question that was just asked. Speaker 1000:46:32Is it still right to be thinking about low teens growth for expense growth here in in 24? Thanks. Speaker 300:46:40Yeah. I'll take the first part of that. Chris, thanks for the question. Kind of what inning are we in? Well, it represents, you know, I think over half of of, I think we had said on CTV spend is is running through direct access. Speaker 300:46:52So I don't know if we're playing professional baseball. We're in the 4th or 5th inning, I guess, or 4th inning is somewhere in there. I would say, however, on the program, what's really interesting about it, first part was just doing a direct integration, helping marketers save on fees. They're not paying middlemans. They're buying direct from the source. Speaker 300:47:11That that was the kind of first, kind of phase of growth of that. The next is really around the data matches here where they're integrated. They're matching their subscriber data to our household ID. And this drives great addressability for marketers. This is the same addressability that they're used to getting from the walled gardens, like, you know, social, However, they're on the world's most premium content. Speaker 300:47:32It's an incredible advertising execution. So I think that the next although that, you know, half of our CTV spending is going through there, I think it's gonna continue to drive our our CTV spending in the platform. It's just a great differentiator for us. You know, there's similar offerings out there, but we don't charge for it. We're not trying to be on the sell side. Speaker 300:47:51So right there, I'm getting you lower CPMs, and I'm not charging you for it. Clients love that. So I think it's going to continue to drive more and more CTV spending for the company. Speaker 200:48:02And just just to add to that before Larry kicks in, I think one thing that's a differentiator of Viant versus other alternative IDs out there. So, you know, Disney may have a logged in user, and it might be Tim who's logged into Hulu that that's going through. But they get a lot of value in Speaker 500:48:18doing these data matches as well. We know other e Speaker 200:48:18mail addresses that are Laura buys the product or service, we're able to Laura buys the product or service, we're able to properly attribute and measure the response to the advertising to that household, where I think other identifiers fail, you know, pretty aggressively in that. So there's a lot of value add both ways for the big media companies and other quality content providers that join the program as well. So Larry, did you want to take the other question? Speaker 400:48:53In terms of overhead 20 for 2024, it will be in the low teens, which is what we've been saying all along. You can see the guide in Q3 where we guide overhead. Q4 overhead will be kind of low single digit percentages above Q3. You have that all up and you're still in the low teens. Speaker 1000:49:14Got it. Thank you, everyone. Operator00:49:18That concludes today's webinar. You may now disconnect. Speaker 200:49:22Thank you, everyone.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallViant Technology Q2 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K)Quarterly report(10-Q) Viant Technology Earnings HeadlinesRosenblatt Securities Begins Coverage on Viant Technology (NASDAQ:DSP)May 1 at 3:41 AM | americanbankingnews.comViant Gains Analyst Praise For Household ID, CTV Tools Amid Ad Market ReboundApril 29, 2025 | benzinga.comThe Robotics Revolution has arrived … and one $7 stock could take off as a result.Robots aren't coming to America in 2025. They are already here. Oxford Economics says, "The Robotics Revolution we predicted has arrived." In fact, I believe these robots could impact 65 million Americans lives — by August of this year.May 4, 2025 | Weiss Ratings (Ad)Rosenblatt Initiates Coverage of Viant Technology (DSP) with Buy RecommendationApril 29, 2025 | msn.comViant Technology Could Benefit From Buying Bitcoin, Eric Semler SaysApril 29, 2025 | finance.yahoo.comHere's What's Concerning About Viant Technology's (NASDAQ:DSP) Returns On CapitalApril 25, 2025 | finance.yahoo.comSee More Viant Technology Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Viant Technology? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Viant Technology and other key companies, straight to your email. Email Address About Viant TechnologyViant Technology (NASDAQ:DSP) operates as an advertising technology company. It provides Household ID, a people-based innovation that combines digital and personal identifiers into a normalized household profile; AI Bid Optimizer, solution that uses AI to analyze historical bid opportunities to predict the lowest media cost for desired advertisement; and Viant Data Platform, which offers marketers control over their own data with actionable insights into their marketing initiatives within a single platform. The company also offers Holistic, an omnichannel DSP for marketers and their agencies to manage omnichannel campaigns and access metrics from each channel to inform decisions in other channels; Viant Identity Graph, which reduces or eliminates the need for cookies by enabling matching of people-based identifiers that anchor digital identifiers that allows marketers to reach targeted consumers in a privacy-conscious manner; and Direct Access, a path optimization program. In addition, it provides campaign analysis and data intelligence tool that empowers customers with differentiated insights, including conversion lift, multi-touch attribution, foot-traffic data reports, digital-out-of-home lift, sales reporting, and ROAS analytics; and self-service platform that provides customers with transparency and control over their advertising campaigns and underlying data infrastructure. The company sells its platform through a direct sales team focused on business development in various markets. It serves purchasers of programmatic advertising inventory; and large, independent, and mid-market advertising agencies, as well as marketers. The company was founded in 1999 and is headquartered in Irvine, California.View Viant Technology ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Amazon Earnings: 2 Reasons to Love It, 1 Reason to Be CautiousMeta Takes A Bow With Q1 Earnings - Watch For Tariff Impact in Q2Palantir Earnings: 1 Bullish Signal and 1 Area of ConcernVisa Q2 Earnings Top Forecasts, Adds $30B Buyback PlanMicrosoft Crushes Earnings, What’s Next for MSFT Stock?Qualcomm's Earnings: 2 Reasons to Buy, 1 to Stay AwayAMD Stock Signals Strong Buy Ahead of Earnings Upcoming Earnings Palantir Technologies (5/5/2025)Vertex Pharmaceuticals (5/5/2025)Realty Income (5/5/2025)Williams Companies (5/5/2025)CRH (5/5/2025)Advanced Micro Devices (5/6/2025)American Electric Power (5/6/2025)Constellation Energy (5/6/2025)Marriott International (5/6/2025)Energy Transfer (5/6/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 11 speakers on the call. Operator00:00:00Hello, everyone, and welcome to the Viant Technology's Q2 2024 Earnings Conference Call. My name is Annabeth, and I will be your operator today. Before I hand the call over to the Viant leadership team, I'd like to go over just a few housekeeping notes for the program. As a reminder, this call is being recorded. After the speakers' remarks, there will be a question and answer session. Operator00:00:25If you plan to ask a question, please ensure you've set your Zoom name to display your full name and firm. If you would like to ask a question during this time, please use the raise hand function located at the bottom of your screen. Thank you for your attendance today. And I will now turn the call over to Nicole Kuntz Kunzmann from The Blueshirt Group. Speaker 100:00:45Thank you, Annabeth. Good afternoon, and welcome to Viant Technology's Q2 2024 Earnings Conference Call. On the call today are Tim Vanderhoek, Co Founder and Chief Executive Officer Chris Vanderhoek, Co Founder and Chief Operating Officer and Larry Madden, Chief Financial Officer. I'd like to remind you that we will make forward looking statements on our call today, including but not limited to our guidance for Q3 2024, our platform development initiatives and industry trends that are based on assumptions and subject to future events, risks and uncertainties that could cause actual results to differ materially from those projected. These forward looking statements speak only as of today, and we undertake no obligation to update or revise these statements except as required by law. Speaker 100:01:30For more information about factors that may cause actual results to differ materially from forward looking statements in our entire safe harbor statement, please refer to the news release issued today as well as the risks and uncertainties described in our quarterly report on Form 10Q for the quarter ended June 30, 2024 under the heading Risk Factors and in our filings with the SEC. During today's call, we will also present both GAAP and non GAAP financial measures. Additional disclosures regarding these non GAAP measures, including a reconciliation of non GAAP financial measures to the most directly comparable GAAP financial measures, are included in the news release issued today and in our earnings presentation, which have been posted on the Investor Relations page of the company's website and in our filings with the SEC. I would now like to turn the call over to Tim Vanderhook, Chief Executive Officer of Viant. Tim? Speaker 200:02:22Thanks, Nicole, and thanks, everyone, for joining us today. We saw continued momentum in the Q2 with record advertiser spend on our platform, a notable milestone that exceeded our seasonally strong Q4 of 2023. Revenue in Q2 grew 15% year over year, while contribution ex TAC grew 23%. Our ongoing focus on improving efficiency and disciplined expense management continues to drive outperformance in adjusted EBITDA, which increased 41% year over year to $9,600,000 in the quarter. I am pleased with our team's ongoing commitment to innovation and execution, which drove our consistency and strong results. Speaker 200:03:10We remain laser focused on building on our differentiated position as one of only a couple independent self-service buy side platforms in the market. As advertisers look for alternatives to the largest legacy players in the industry, Viant is capitalizing on the shifting sentiment and committed to growing our market share across the programmatic advertising market. Discussions across the ecosystem, such as the Department of Justice's antitrust lawsuit against Google, demonstrate that advertisers are unhappy with the dominating behavior of a handful of players in the industry. Many ad tech partners are frustrated with the centralized power exerted over the ecosystem. Our ability to capitalize on this changing sentiment is reflected in our results and the growing number of partnerships and integrations we are building. Speaker 200:04:06Major content owners, data companies, agencies and advertisers are coming to us for an alternative solution to the largest DSPs in the market. We believe we are uniquely positioned to capitalize on this changing sentiment. A key area of differentiation for us is our vision for autonomous advertising, supported by our award winning and ever evolving suite of AI products and features. Today, I am thrilled to announce a significant milestone in our journey. Given the amount of AI related initiatives in development, we are ready to properly brand our AI suite. Speaker 200:04:49So today, we are announcing the rebranding of our AI suite under the name Viant AI. Viant AI is designed to revolutionize digital ad campaigns by seamlessly crafting high impact, multichannel ad experiences that reach the right audience at the right time with precision. We are rebranding our suite of AI products previously announced as bid optimizer, chat with data and AI recommendations under Viant AI. Viant AI is focused on developing AI agents that deliver automation for the 4 key components of programmatic advertising: planning, buying, measurement and optimization. Under planning, our latest innovation is a large language model or LLM. Speaker 200:05:43Already launched internally, it delivers comprehensive omnichannel media plans in seconds. This LLM has been heavily trained on thousands of ad campaigns, encompassing years' worth of historical ad spend, enabling us to create high impact media plans that are designed to achieve the goals of any advertiser. This includes selecting high quality CTV apps, mobile apps, websites and digital out of home locations. It makes recommendations of campaign budgets across channels like display, CTV, streaming audio and digital out of home. We are showcasing this to clients now and are receiving tremendous feedback. Speaker 200:06:28Under buying, we released version 2 of our bid optimizer in Q2. The improvements achieved with version 2 are substantial and Chris will talk more about this in a bit. For measurement, we previously announced chat with data, which is continuing to be tested internally with live customer data. We have made great strides and expect this product to be out in Q4. Our final phase towards full autonomy is the application of autonomous optimization, which we expect to release in 2025. Speaker 200:07:03This will be an AI driven agent that dynamically adjusts campaigns in real time, employing advanced ad strategies like channel allocation, publisher selection, dayparting and audience discovery. Investing in Viant AI is investing in the future of advertising. We are excited about the transformative impact that will have and we'll look forward to sharing more updates as we progress. Our vision is resonating with customers who are continuing to scale with us as evidenced by the expansion we are seeing with our largest customer cohort. Our top 100 customers where we have grown contribution ex TAC 29% on a trailing 12 month basis. Speaker 200:07:48We are scaling well with our agency partners and continue to add new advertisers within these agencies, which we believe is a testament to the superior service and results we are driving for them. We expect to continue to capitalize on the market tailwinds in our favor and drive more spend from existing customers. We also have had great success this year attracting new customers to our platform, which Larry will talk more about shortly. Our pipeline of large customers continues to grow and we feel very good about our ability to win more of these advertisers over the long term. Our success with customers is also driven by our focus and investments into the fastest growing channels in programmatic, notably CTV and streaming audio. Speaker 200:08:38We continued to see particularly strong momentum in these channels, with both reaching record spend levels in the quarter. The growth in CTV spend on our platform continues to outpace the market, growing more than 40% year over year in the quarter, while streaming audio almost doubled year over year. Together, these channels represented more than 50% of spend on our platform in the quarter. We expect them to continue to see out sized growth relative to other programmatic channels as they provide access to some of the most premium content in the market at scale, while also allowing for advanced targeting and measurement capabilities despite the absence of cookies. We are continuing to make investments in our direct access program, which gives our customers more seamless access to these channels, and Chris will touch on this in a bit more. Speaker 200:09:35In addition, our patented household ID technology continues to be a differentiator for us in the market, enabling customers to plan, buy and measure campaigns across all channels regardless of the presence of cookies. Before turning things over to Chris, I wanted to share some thoughts on Google's recent announcement to reverse course on cookie deprecation. We touched on this briefly last quarter, but this news doesn't change our overall vision of making programmatic advertising easier, more efficient and more effective for our customers with leading measurement and targeting capabilities across all ad formats. CTV is a core driving force across the ad industry as a whole, beyond even linear TV and social channels. And the only way to plan, execute and measure omnichannel campaigns to include CTV is with alternative identifiers such as our household ID. Speaker 200:10:35As we noted last quarter, less than 10% of spend across our platform leverages third party cookies And we see this number continuing to shrink over time given the industry's increasing focus on cookie free channels like CTV. If anything, we believe this announcement from Google is helpful for the industry as it eliminates the uncertainty overhang that has been complicating the landscape for the last few years. Our long term strategy and focus remain unchanged, and we look forward to continuing to drive growth and capture share in this very large and growing market for programmatic advertising. With that, I'll turn it over to Chris. Speaker 300:11:18Thanks, Tim. I wanted to spend a few minutes today on our recent product updates and dig deeper on some of the positive business dynamics that we are seeing. We were excited to officially rollout Bit Optimizer 2.0 in June, which is driving significant savings over what we saw in version 1.0. As a reminder, Bid Optimizer is an AI agent bidding solution, which enables marketers to achieve better bid price discovery, real time data processing and predictive ad performance, saving customers time and money by achieving lower CPMs and driving higher return on ad spend. Our upgraded solution is powered by a deep learning neural network trained on Viant's entire bid stream and is capable of processing millions of requests per second. Speaker 300:12:07Bit optimizer also now running on over 65% of the impressions on our platform, up from 50% under version 1.0, which notably expands the number of impressions and potential cost savings that we can pass along to our customers. A powerful example of customer savings with Bit Optimizer has been Juice Media, who began using the product in Q3 2023. They share that they have seen significant savings in media costs and for one client in particular, they tripled their performance with the help of Bit Optimizer. This feedback shows that our customers are benefiting from the cost savings and better performance, which has driven more spend to our platform since its rollout. We're excited about the early adoption we are seeing and we expect to continue to build on Bit Optimizer 2.0 to drive incremental savings for our customers. Speaker 300:13:00Next, we are seeing continuing increased demand for our advanced reporting solutions, which are becoming a meaningful driver of contribution ex TAC. These solutions provide advertisers with closed loop return on ad spend as well as lift and incrementality reporting, integrating both online and offline activity which is becoming increasingly important for customers. We have seen that marketers are willing to pay for advanced reporting because they are losing signal in certain channels and are having a hard time figuring out what is really driving campaign performance. Within walled gardens, advertisers get data on attribution and last click behavior, but clients are getting smarter and are really looking for reliable data that shows what's driving incremental contribution or incremental sales. Customers value the capabilities and completeness of the advanced reporting solutions we offer and we expect these products will continue to drive revenue and contribution ex TAC in the coming quarters. Speaker 300:14:02Another dynamic at play in the industry is the acceleration of streaming and the growing dissatisfaction with walled gardens, which is driving more dollars to CTV. Analytics prove out that CTV drives incremental impact and outcomes where the walled gardens merely show ads to people who are already going to make a purchase. This is why so many consumers continue to see ads for products and companies that they already buy from. The data is clear that CTV is the most impactful channel for creating new demand. We show clients all the time that if you want to grow your revenue, allocate more dollars to CTV. Speaker 300:14:42Our direct access offering in CTV is a significant differentiator for us and a major reason why advertisers are increasingly choosing the Viant DSP. There are a number of benefits of direct access that are driving customer adoption. The first is that we are targeting logged in users of premium CTV content owners, which enables the same addressability as walled gardens. 2nd is that we are bringing the world's most premium content directly to advertisers and eliminating non value added middlemen. This lowers the price of premium CTV in our platform because clients know they are buying directly from the source. Speaker 300:15:24The quality and scale of the content partners who have joined direct access is an incredible list that now includes Disney, Paramount, Warner Brothers Discovery, NBC Universal, Roku, Samsung, Vizio, and many other premium content owners and platforms. Advertisers today much prefer structuring campaigns around premium publisher content over user generated content on social channels. And third, we are experiencing a new paradigm with the accelerating rise of streaming and the growing dissatisfaction with the walled gardens, with the larger players trying to set the rules for ad tech. As we continue to scale our direct access program, we provide improved addressability and industry leading measurement to deliver real contribution for advertisers. Our direct access program continues to resonate with advertisers and in Q2, well over half of our CTV spend came through direct access, more than twice the amount of spend versus the prior year period. Speaker 300:16:29We expect this trend to continue moving forward given the superior performance that our clients are experiencing due to the content quality, addressability, transparency and efficiency offered by Direct Access. And finally, I want to add to what Tim touched on in terms of our differentiation in the market, regardless of the presence of cookies across the ecosystem. We recently conducted a market test in conjunction with Havas Media Network, one of the largest media holding companies in the world, to measure the effectiveness of our household ID versus cookies. The test was run for a client in the healthcare space to compare the success rates of 2 campaigns, one conducted using cookies and the other using the Viant household ID. The cookieless approach, which leveraged our household ID technology, achieved 100% scale and a 93% unique reach across premium publishers, demonstrating how our platform delivers a scalable identity solution for their clients. Speaker 300:17:30Other cookie list tests have been done with other platforms that have had underwhelming results as they have stalled out in scaling their alternative ID solutions compared to cookies. Where the Viant household ID is scaled across approximately 80% of all ad opportunities, competitive alternate IDs are available less than 15% of the time. This is a great example of our leadership in this area. And with that, I'll turn the call over to Larry to provide more detail on our financial performance. Larry? Speaker 400:18:04Thank you, Chris. Before I begin, I would like to remind everyone that we have posted a presentation to our Investor Relations website that includes supplemental financial information to accompany today's call. As Tim discussed, we continued our strong momentum in the 2nd quarter, where we achieved record spend on our platform and 23% growth in contribution ex TAC. Revenue and contribution ex TAC were both toward the high end of our guidance ranges and we once again outperformed on adjusted EBITDA. Our success in CTV and streaming audio continued to be a big driver of performance in the quarter, with record spend across both channels. Speaker 400:18:48On a combined basis, CTV and streaming audio spend grew nearly 50% year over year in Q2 and represented over 50% of total spend on our platform for the quarter. We also continued to benefit from increased customer adoption across our AI product suite, which drove meaningful incremental revenue and contribution ex TAC in the quarter. As Tim discussed, there is a shifting sentiment in the market where advertisers and partners are looking for alternatives outside the larger legacy players in the industry. This dynamic is further enabling us to continue scaling our existing customers while also adding new larger mid market customers to our platform. And as one of the few independent self serve eyesight platforms in the market, we expect that trend to continue moving forward. Speaker 400:19:46In terms of existing customers, on a trailing 12 month basis through Q2, the number of percent of spend customers generating over $500,000 of contribution ex TAC increased nearly 30% and the number of percent of spend customers generating over $1,000,000 of contribution ex TAC increased by nearly 40% on a year over year basis. We are also really pleased with the rapid scaling of new customers as the top 20 customers added in the past year generated on average nearly $300,000 of contribution ex TAC during the period. These positive customer trends have enabled us to continue outpacing overall market growth. With that, I will now turn to our results for the Q2. Revenue for the quarter was $65,900,000 an increase of 15% versus the prior year period and in the upper half of our guidance range. Speaker 400:20:44On a quarter over quarter basis, revenue increased 23% from Q1. Contribution ex tax for the quarter was $41,600,000 an increase of 23% versus the prior year period and also in the upper half of our guidance range. On a quarter over quarter basis, contribution ex TAC increased 22% from Q1. In terms of customer verticals, healthcare, consumer goods, travel, public services and automotive were the biggest drivers of growth in the quarter. In terms of channels, CTV and streaming audio are increasing in strategic value for customers and continue to drive meaningful growth on our platform. Speaker 400:21:33CTV achieved record spend levels in the quarter, growing over 40% on a year over year basis and representing more than 40% of total spend on the platform. Streamy audio also achieved record spend levels in the quarter, nearly doubling on a year over year basis and representing almost 10% of total spend on the platform. Customers are leveraging our Household ID technology to execute their omnichannel campaigns across these high engagement cookie list channels. Direct access also continues to be a differentiator for us, providing customers with higher return on ad spend versus other platforms. In terms of formats, video, which includes CTV, continued to represent over 60% of total spend on our platform in the quarter. Speaker 400:22:25And video and audio on a combined basis represented over 70 percent of total spend in the quarter. Turning now to operating expenses for the quarter. Our non GAAP operating expenses totaled $32,000,000 in Q2, representing an increase of 3% over Q1 and 19% over the prior year period. We remain focused on making strategic investments in our business, specifically around our technology and AI initiatives, to best position ourselves for long term market share gains and increasing profitability. As we invest, we also remain hyper focused on driving efficiencies internally. Speaker 400:23:08And to that end, we have been able to increase contribution ex TAC per employee by over 20% over the last 12 months. For the Q2, we generated adjusted EBITDA of $9,600,000 above the high end of our guidance and representing an increase of over 41% over the prior year period and an increase of more than 200% over the prior quarter. Adjusted EBITDA margin as a percentage of contribution ex TAC was 23% for the quarter, an improvement of 3 percentage points from the prior year period and 14 percentage points from the prior quarter. For the Q2, GAAP net income totaled $1,500,000 which compares to a GAAP net loss of $3,200,000 in the prior year period. GAAP earnings per Class A share were breakeven in the 2nd quarter, which compares to a GAAP loss per Class A share of $0.07 in the prior year period. Speaker 400:24:14Non GAAP net income, which excludes stock based compensation and other items, totaled $7,200,000 for the quarter, which compares to non GAAP net income in the prior period of $5,100,000 representing an impressive 41% year over year improvement. Non GAAP earnings per Class A share totaled $0.08 in the quarter, which compares to $0.06 in the prior year period. In terms of share count, we ended the quarter with 63,400,000 shares outstanding, consisting of 16,400,000 Class A Shares and 47,000,000 Class B Shares. We also ended the quarter with $210,000,000 in cash and cash equivalents and we had $227,000,000 of working capital and no debt at quarter end. And we continue to have access to a $75,000,000 undrawn credit facility. Speaker 400:25:12In Q2, we also generated $14,000,000 of cash flow from operations and $10,000,000 of free cash flow. Since the inception of our share repurchase program in early May 2024, we repurchased a total of 809,000 shares of Class A common stock for approximately $8,000,000 in cash Speaker 300:25:35through August Speaker 400:25:369, 2024. Accordingly, we have $42,000,000 remaining on our $50,000,000 authorized repurchase program. Turning now to our outlook. For the Q3 of 2024, we currently expect revenue in the range of $67,500,000 to $70,500,000 representing a year over year increase of 16% and a quarter over quarter increase of 5% at the midpoint. Contribution ex TAC is expected to be in the range of $44,000,000 to $46,000,000 representing year over year growth of 15% and quarter over quarter growth of 8% at the midpoint. Speaker 400:26:24Non GAAP operating expenses are expected to be between 33 $34,000,000 in Q3, representing a year over year increase of 14% and quarter over quarter increase of 5% at the midpoint. We expect adjusted EBITDA to be in the range of $11,000,000 to $12,000,000 which represents a year over year increase of 19% and a quarter over quarter increase of 20% at the midpoint. And finally, we expect an adjusted EBITDA margin as a percentage of contribution ex TAC of 26% at the midpoint. In closing, we are excited by the momentum we are seeing across our business. Our existing customers are increasing spend on our platform and we are adding new scalable customers to the mix. Speaker 400:27:17Our leadership position across CTV and streaming audio, driven in part by the value of our household ID and direct access program, continues to play a pivotal part in our overall growth and market share gains. And the increasing adoption across our expanding AI product suite is driving performance for our customers and incremental growth for the business. We remain ultra focused on building on this momentum in the quarters ahead. And with that, I will now turn it back over to the operator to open the line for questions. Operator? Operator00:28:01Thank you for that. The first question comes from Andrew Merrick at Raymond James. Your line is open. Speaker 500:28:14Hello. Thank you for taking my questions and congrats on the results. Wanted to talk a little bit about the size of the opportunity remaining. Obviously, very early days on the AI side, but hearing the tailwinds that it's providing to the business is interesting. I guess, can you give a sense of the penetration rates you're seeing with these AI enabled services among your clients right now? Speaker 500:28:37And is it just kind of a solution by solution approach or is it sort of a you get 1, you get them all? Speaker 200:28:45Hi, Andrew. It's Tim and thanks for the comments on the quarter. It's good to see you. Yeah, overall, long term, we do see it as a suite of solutions that work together. And that's again going against our goal towards autonomous advertising. Speaker 200:29:00And we tried to outline the 4 pillars where we're automating all those functions in some of our prepared remarks. So currently, it has been solution by solution. We talked about the 2nd generation of Bit Optimizer, now up to 65% of all impressions. And we've seen tremendous adoption there. I think when we complete the autonomous side at some point in 2025, the idea is that they're all working together. Speaker 500:29:28Okay, great. Thank you for that. And then maybe a quick one on direct access. So an impressive list of publisher partners heard there, but maybe one that was conspicuous in its absence was Netflix. As they're kind of building out their ad tech stack and the kind of future of their ads business? Speaker 500:29:491, how do you see that playing out? And 2, how do you see your role potentially in that? Thank you. Speaker 300:29:56Great. Thanks for that too. So, on Netflix, you know, we're going to remain on the on the buy side. And we have there was a list of partners announced there, Magnite being one of them. And so we'll have access to that. Speaker 300:30:12We think in the US, it's a we don't think it's a very scaled consumer base at this point. It is in other markets, and we operate in the US. So, hasn't been a big area for demand from our customers yet, but I think as they get more scale, that certainly will pick up. Operator00:30:35Your next question comes from Craig Hallum Jason Kreyer from Craig Hallum. Your line is now open. Speaker 600:30:48You guys hear me okay? Speaker 200:30:49Yes. Hi, Jason. Speaker 600:30:51Hey, guys. Nice quarter here. You've had the AI or the autonomous solutions in the market for a few quarters. Just curious, any pushback you get from advertisers? Anybody hesitant to adopt these solutions or maybe waiting for more proof points before they jump in? Speaker 300:31:08Yeah. I think the number one thing that we look to get, there is a there's always a trust factor you got to get to with clients. And the number one thing that we always focus on is we need to show the customer value right upfront. So marketers will will come in and they'll opt into these features or products. And they're like Bitoptimizer. Speaker 300:31:27They instantly see the savings. Version 1.0 was about 35% savings, and we're seeing a significant increase over that in 2.0. Hence, that's why you saw the adoption rate get up to around 65% in version 2.0. Coming off of 1.1.0 was just about 50%. So when you prove out the customer value, then they they really trust it, and they're they're opting into those. Speaker 300:31:51So that's that's just a big area of focus that we really that we're really trying to hammer home before we release anything. Speaker 200:31:59Yeah. And I would just say in terms of customer pushback, no. They just want to make sure it's accurate. So Bit Optimizer proves that out. Chat with data, which is taking someone's spoken language and converting it to SQL query and into the database, there's probably higher areas of concern there to make sure that the SQL is correct and the numbers they're looking at are accurate. Speaker 200:32:20So I wouldn't call it pushback, but I'd certainly say, it's looked at, under a bigger microscope. Speaker 300:32:27And I would say too, with all these products, you're really trying to elevate the human traders in the platform. We're trying to elevate their performance. And we really see these as these are like, these are assistance to them that are really helping, you know, supercharge their efforts. You know, a machine can give an insight, but it's really the human that drives it to a strategic insight. So we see that really playing really well with customers as we roll out new products. Speaker 600:32:54That's helpful to hear what advertisers are looking for. One follow-up. You made the point that large marketers are looking for alternatives to kind of the biggest industry participants. Maybe how does that, you know, in the conversations you're having with these marketers, how does that, you know, increase the opportunity for Viant or what are you hearing from them that will evolve your role going forward? Speaker 200:33:21Yeah. I think it's, you know, what are they looking for? They're looking for tools that help automate a lot of what they're doing. We've talked about this so many times before, but there's just simply too many choices in programmatic advertising. So just like you're seeing the productivity across our own on a revenue or contribution ex stack per employee, they're looking to replicate those results pretty similarly. Speaker 200:33:44What else would you add? Speaker 300:33:45I would say, you know, one is cost savings, which immediately translates into better advertising and business performance for the clients. I think we've hammered we've been hammering that drum pretty hard. Marketers know that, especially if you're buying premium ad formats that are good at creating new demand, They want to be able to do that as efficiently as possible. So, you know, everything we're doing from direct access to bid optimizer, those are the things where our marketers are seeing, hey, we need an alternative that's really doing this, not just racking up fees, not forcing us into products that some competitors might build. I think we're giving we're a great option there. Speaker 300:34:23And I would say the other one is just around our model around, focusing on the mid market. And even though we're moving up market within the mid market, a lot of larger larger clients, they really like that because we serve we service them. They like the support, and we know that they need to be successful on the platform. So being a good partner to them really helps. Speaker 400:34:46Thank you. Operator00:34:48Your next question comes from Laura Martin at Needham. Your line is open. Speaker 700:34:58Great. So my first one is, your second sentence says, we're seeing a market share shift where advertisers are increasingly looking for alternatives to the largest legged players in the industry. That implies you're including Trade Desk because you're doing more than Google. I understand why Google clients are moving to me. In cases where someone chooses buy ins over Trade Desk, why? Speaker 300:35:20I would I wouldn't say it's, you know Probably not a single reason. I would say that, you know, there's there's other scale players in the market. I would put the walled gardens in there as well. They're really looking at again, I'll I'll talk about our mid market focus. It's just a good white space area for us. Speaker 300:35:37They they want something that's not, you know, one size fits all for only the biggest multinational marketers in the world. Our clients are extremely data driven and the advertising needs to perform. So I think the products that we build really helps them drive efficiency. So that's a big area for a need for alternative. In the end, this boils down to campaign performance. Speaker 300:36:00So and I think that we live and breathe that every day. And that's why you win clients and why you keep them. But I Speaker 200:36:07would just add to that. It's the scale of the household ID rather you know, versus other DSPs, all other DSPs out there as an alternative identifier that works holistically. That continues to be a point that we're driving home. And the productivity of using our software to buy media versus a different software, I think we're starting to show market differences and we've got new products in the pipeline that I think can expand that leadership position we have today. Speaker 700:36:35Okay. And then my follow-up question is on connected television. So, I'm interested if you're seeing downward pressure on CPMs and whether if you are, whether you think that's one of the things that drove your 40% CTV revenue growth in the quarter. Speaker 200:36:52I haven't I didn't look at the exact numbers prior to the call, but nothing noticeable in terms of downward pressure on CPMs. I think the premium CTV owners get premium CPMs. If you're looking at Open Exchange or other ones there, there might be some pressure there. But there was already kind of 2 different CPM prices between those 2. So I would say both have been pretty consistent. Speaker 200:37:19And I wouldn't say a factor of our growth. Speaker 300:37:21No. I will say, though, if you just look at the upfront market, I think it was, you know, I think there was some pressure possibly on some of the premium guys. I think Netflix is, I think Netflix is I think it's recently been reported that they've come down on their CPMs. I think that that happens with some because of some of the fast channels that are out there possibly. But nonetheless, in our in our software, by the time a client moves their upfront plan into the DSP, you know, at least for the premium guys, a lot of those rates, maybe already set from their upfront buys. Speaker 300:37:53But in the spot market, we really haven't seen much of that. Speaker 700:37:57Thank you. Great numbers, guys. Speaker 200:37:59Thank you. Operator00:38:03Your next question comes from Maria Ripps at Canaccord. Your line is Speaker 800:38:11open. Great. Thanks for taking my questions. First, can you maybe talk about some of the conversations that you may have had with prospective clients who had been moving further down the sales pipeline in anticipation of Google deleting 3P cookies? Are you still expecting to acquire those customers? Speaker 800:38:27And have you seen any changes to your sales pipeline since Google's announcement? Speaker 200:38:33No, the pipeline was pretty robust leading into it. I think everyone, whether they believed Google was going to do it or not do it, everyone was already of the mindset that the time is now to start looking for alternatives. So I think a lot of those are directly in the pipeline and built in there. I do see, when cookie disruption does happen, certainly what you'll see is budget shifts from current cookie based players into the non cookie or alternative IDs. And I think that's where that final leg of the stool will kick in. Speaker 200:39:08But it's hard to us because 10% or less of our media spend is on cookies. It's hard to know how big that opportunity is transacting in cookie based DSPs. Speaker 300:39:19I think the other thing to point out too is what we where we see a shift certainly is when we talked about in the prepared remarks is away from the measurement of cookie based systems. And marketers starting to understand that, oh, just because somebody clicked on a search link, I don't assign all of the credit to that. I may have shown them a television ad. They may have had a streaming audio spot. They may have had a billboard. Speaker 300:39:45They're starting to understand that. So we actually see I haven't I have not had one conversation with an agency or a marketer since Google's recent announcement where they were just going back all into cookies. The fact is that today, it's, you know, if you look at the bitstream, it's around 30% or less, it continues to decrease every quarter. And I think with Google's announcement, at the end of the day, if they move to a user, you know, opt out or opt in on cookies, I still we still believe that that cookies are still going to continue to decrease. So marketers are certainly looking. Speaker 300:40:21They're looking at how I want to start measuring advertising based on what's creating demand versus giving credit to whatever the last ad that was shown to a person that was probably already going to buy in the 1st place. Speaker 800:40:32Got it. That's very helpful. And then how should we think about the potential benefit from political advertising, both embedded in your Q3 guide and maybe any thoughts for q4, especially now that you're, your growing exposure to, sort of streaming audio is increasing? Speaker 300:40:49I'll let Larry talk about it in the guide. But, you know, we do okay in political advertising. I think we have some good products there. In the last 2 years ago, I think we're in the kind of mid single digits. And we think it's going to kind of remain there. Speaker 300:41:06We haven't really projected in our numbers a big upside there. Speaker 200:41:09Yeah, I think one of the hardest parts for us in political advertising is a lack of awareness amongst who those controllers of those dollars are, just like some of the other areas in driving growth. I think specifically within politics, we have a lack of awareness that we're trying to change, but I don't know if we'll catch it this cycle, but Larry. Speaker 400:41:32Yeah, it'd be a little bit more specific. So in cycles such as the midterms and obviously presidential cycles, we tend to do about 2% to 3% of whatever the second half spend is. Typically see most of that coming in the second half. So we haven't assumed that we'll do more than that in our Q3 guide. Obviously, there will be some more political in Q4. Speaker 400:41:58So we'll have a better sense as we move through Q3 what that might look like. But we're assuming that it's kind of business as usual. We'll We're obviously growing, so we're by keeping it at 2% or 3%, we're taking in more money, but we're not assuming it pops this cycle. Speaker 800:42:19Got it. Thank you so much for the color. Operator00:42:22Your next question comes from Matt Condon with JMP. Your line is Speaker 900:42:31open. Thank you for taking my question. I just wanted to ask one on the data clean rooms or the Vine data platform. I see that you guys integrated with Google Cloud's BigQuery data clean rooms in the quarter. And then also you're launching chat data in 4Q. Speaker 900:42:46Can you just talk about how the Vine data platform and greater adoption there impacts the P and L? Speaker 200:42:54Yes, definitely. I mean, clean room matching is effectively replacing a process called cookie syncs. And so it's an identical process to the way the industry became interoperable historically through this concept of cookie sync tables. And cleanroom matching is doing a very similar process, but just with different types of identifiers there. And for us, our focus is interoperability. Speaker 200:43:21So we did do the Google Cloud Platform announcement in GBQ that you've noticed. We're integrated with Snowflake. We're working with AWS on it. The whole goal here is to make it interoperable so that anyone, any data company, any supply source or any advertiser that has their advertiser or excuse me, their first party data in those platforms can easily, with a single click access, drive connectivity to our platform and that data. In terms of what does it mean to the financials of the business? Speaker 200:43:57I think a lot of it comes from measurement and us basically providing better measurement to these advertisers. And we've seen measurement revenue, which is included under the Viant data platform revenue, has ticked up our contribution ex TAC. So it has an expanding, if you look at our financial profile, it will increase contribution ex TAC over time with adoption. We think, Speaker 300:44:24you know, the interoperability going back to that real quick, you know, when you're integrated with all of these other platforms, it just speeds up customer adoption. The main thing that clients want to do is be able to use their 1st party data in advertising. So when you're already integrated with the largest companies that house CRM data for any of our clients, it just makes a seamless approach of moving the first party data into their DSP and then being able to use it for targeting and measurement. Speaker 900:44:52That's super helpful. And then maybe just a follow-up. Larry, you've done a good job of driving profitability here. Just as we think about 2025 and understood you're not giving any formal guidance here in 2025. What are the key investment areas? Speaker 900:45:04And we should should we see anything different as far as any additional engineering or sales force investments in 2025? Speaker 400:45:11I think you'll see trends similar to 'twenty four. I mean, clearly we're not going to invest. Our growth in overhead is going to be slower than our growth in CXT. The investments we will make will be primarily around engineering and product and sales and certainly around all of the innovation around AI. But I would expect kind of low double digits, low teens growth in terms of investment for 'twenty five consistent with kind of what we've been doing this year. Speaker 900:45:52Great. Thank you so much. Operator00:45:55Your next question comes from Chris Connerick. Your line is now open. Speaker 1000:46:07Hi. Thanks for taking the question. Maybe a first one on direct access. Be curious to hear how you think about what inning you're in as it relates to ramping your partners and how you think about balancing, the quality of the inventory within the direct access program, versus continuing to grow it? And then Larry, maybe just a double click on the expense question that was just asked. Speaker 1000:46:32Is it still right to be thinking about low teens growth for expense growth here in in 24? Thanks. Speaker 300:46:40Yeah. I'll take the first part of that. Chris, thanks for the question. Kind of what inning are we in? Well, it represents, you know, I think over half of of, I think we had said on CTV spend is is running through direct access. Speaker 300:46:52So I don't know if we're playing professional baseball. We're in the 4th or 5th inning, I guess, or 4th inning is somewhere in there. I would say, however, on the program, what's really interesting about it, first part was just doing a direct integration, helping marketers save on fees. They're not paying middlemans. They're buying direct from the source. Speaker 300:47:11That that was the kind of first, kind of phase of growth of that. The next is really around the data matches here where they're integrated. They're matching their subscriber data to our household ID. And this drives great addressability for marketers. This is the same addressability that they're used to getting from the walled gardens, like, you know, social, However, they're on the world's most premium content. Speaker 300:47:32It's an incredible advertising execution. So I think that the next although that, you know, half of our CTV spending is going through there, I think it's gonna continue to drive our our CTV spending in the platform. It's just a great differentiator for us. You know, there's similar offerings out there, but we don't charge for it. We're not trying to be on the sell side. Speaker 300:47:51So right there, I'm getting you lower CPMs, and I'm not charging you for it. Clients love that. So I think it's going to continue to drive more and more CTV spending for the company. Speaker 200:48:02And just just to add to that before Larry kicks in, I think one thing that's a differentiator of Viant versus other alternative IDs out there. So, you know, Disney may have a logged in user, and it might be Tim who's logged into Hulu that that's going through. But they get a lot of value in Speaker 500:48:18doing these data matches as well. We know other e Speaker 200:48:18mail addresses that are Laura buys the product or service, we're able to Laura buys the product or service, we're able to properly attribute and measure the response to the advertising to that household, where I think other identifiers fail, you know, pretty aggressively in that. So there's a lot of value add both ways for the big media companies and other quality content providers that join the program as well. So Larry, did you want to take the other question? Speaker 400:48:53In terms of overhead 20 for 2024, it will be in the low teens, which is what we've been saying all along. You can see the guide in Q3 where we guide overhead. Q4 overhead will be kind of low single digit percentages above Q3. You have that all up and you're still in the low teens. Speaker 1000:49:14Got it. Thank you, everyone. Operator00:49:18That concludes today's webinar. You may now disconnect. Speaker 200:49:22Thank you, everyone.Read morePowered by