AdTheorent Holding (ADTH) 7 Nov 232023 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to AdTheorent's Third Quarter 2023 Earnings Call. [Operator Instructions] Please be advised that this conference is being recorded. I would now like to turn the conference over to your first speaker, David DeStefano, Investor Relations. David, please go ahead.

Good afternoon, and welcome to AdTheorent's Third Quarter 2023 Earnings Call.

the market in closed discussing issued press be the after today. will results our announced release We With me today Lawson; and are AdTheorent's Chief Financial Patrick Executive Officer, Elliott. Chief Officer, Jim

that may statements based and risks the today, to I'd are Before forward-looking expectations. and differ our on call number subject we forward-looking remind uncertainties, to company's begin a you materially. include will today's These like results statements current actual conference significant of

results could and For please and and and a financial factors our in business, release that to earnings affect filings discussion our disclosure the Securities Exchange Commission. refer future of reports with today's the other

as based and by of statements obligation law. any no All available except to update upon we are required assume us today, made to today's statements information such

GAAP financial to during We measures call. refer will also and non-GAAP both the

find included measures Investor at You to of to in section our reconciliation www.adtheorent.com. of can GAAP the release our website posted Relations our non-GAAP the press

are we the All call Jim. of turn our state today over me measures non-revenue to discuss With non-GAAP let we financial that, otherwise. unless

you and Thank earnings afternoon, everyone. call. our joining you, David, quarter Thank third good for XXXX

will During today's who report fourth financial look quarter detailed to more for progress third initiatives, to industry met and third at provide a results then am over full and exceeded quarter the on performance our call, provide will discuss turn year a and investment guidance upcoming AdTheorent's our and call for Patrick, provide highlight XXXX. on will objectives. our ongoing and the that or pleased results I product the macroeconomic high-level update recent quarter, innovation the comment I briefly backdrop. I

increase uptake, evaluations, to interest and in contracts ultimately on the offerings attract Our and unique driving learning spend continue more demos, machine platform. new elevated an

was of AdTheorent year work growth, to remain million strong of XXXX. team, midpoint QX on execution pace and return range a X% revenue of our the the growth up and Thanks the full to quarter revenue hard the year-over-year to of deliver guidance $XX.X versus above Third XXXX. we for

the of areas by $X.X guidance Results margins high discuss million We drove growth adjusted audience Beginning with advertisers share up XX%. purchased logo increased and and wins buying to our to media impressions self-service gravitated the both XX%, self-service self-service, by record EBITDA, especially cost more robust during responded XX%, cost-efficient QX, as in and driven wallet audience and including activity we saw advertiser detail. year-over-year, gross Compared adoption continued of our AdTheorent mix end a have operating of we XX.X% which leverage to the each self-service, investment, as confident during investment again are third continued of exceptional in above also quarter best profit algorithm-based were believe market, and an all quarter, long-term area in growth. revenue DSP quarter, the We Health drive and increased XX% and for offerings. that strong self-service of higher the our range increased new we count will transparent the increased enthusiastically I'll our differentiated margin, platform delivering driven saw in and adjusted of solutions, performance-oriented predictive the customers discipline. through platform creation.

self-service customer established confidence satisfaction. that high This momentum also continue. expanding will of gives pipeline us very and agencies an We brands and saw rates, retention outstanding

Media's One. data programmatic reach and media properties audiences days, to advertising, coming Black-owned a Hero DSP diverse exclusive with we with the This the and in offering network, insights, strategic Media addition, scale. and In at will combine partnership technology allowing programmatic award-winning unique audience-focused establishes that AdTheorent's and announce Hero platform first will Hero us

race will opportunity multicultural Portada estimates programmatic elevate thoughtfulness This data, Using customers, add both tools. seen Organization each is opportunity, with product of $XX XXXX. segment and exciting users our Our with our Trade to self-declared algorithm-based within This target targeting, depth we for This Media into industry. will verticals. a also can by not market aggregated will platform insight through Hero will over families in billion of work level audience The a our and any culture $XX the multicultural beyond perfect for retargeting. market accelerate reach One multicultural in entity creation available adoption and advertising managed multicultural other billion multicultural of self-service assumptions-based XXXX. horizontal

to Health. Moving AdTheorent

in user on and large give the superior XX% driving notably advantage privacy-forward during track leveraging have especially complex campaign view, sustainable relying highly the architecture targetable instead outcomes and DSPs. In a and machine healthcare embedded in IDs, success strict. drove privacy Our proven relative us sector, quarter. techniques most where advertiser are year-over-year algorithms These to count our learning are AdTheorent's uniquely increase and of record tremendous safeguards, generalist solution our specialized effective delivering of tailored growth a revenue and year-over-year advantages XX% regulations

growth active about of there these even in campaigns. audiences also health I from fourth running in quarter. increased meaningfully campaigns versus XX in X we QX. the will XX% AdTheorent briefly The QX, XX out greater revenue Health ahead, to in Looking expect talk up number of

Health benchmark including to measured looking as cost patients for quality. benchmarks condition, medical audience with the independent all outperformance an rare and XX% AdTheorent by XX% outperformance First, campaign outperformed on on third pharma audiences target a a client party,

independent measured target benchmark for pharma Health by client rate sufferers looking with to an AdTheorent audiences Second, more prescriptions, XX% unfilled party. drove than a another conversion third condition as efficient

users on diagnosis, generated age, short a users. health attributes. insights progress health top top activate are specialty prescribed real-time that HABi, medication, unique breakdown. period see audiences the In product and explore identified attributes health more self-service as geographical health of We many to custom This allows the to time. advertisers audience We such platform key to our bringing objectives. be their couldn't in great other tailored customer QX, and on based records also conducted gender X medication, we variety can self-service quarter, AdTheorent HABi, pleased Through procedures a with Based create health, our interest The another selected, such the And top DSP procedures, opportunities, and committed. tool, diagnosis, we of in performed, audience already creation. and can X prescribed have users creation making largest fourth Health on are or market algorithmic completed demos. self-service of month the combines into XX XX healthcare

opportunity extremely this are and We look excited to more updates. about providing forward

proprietary expense as gears distinguishes AdTheorent's validating engagement are that predictive high-quality customers AdTheorent's delivers Switching our certification validation data with consent audiences methodology as we to capabilities QX, audience third-party our Neutronian's eliminating based transparency, AdTheorent learning while The ID-independent Neutronian provider health areas privacy audiences. of modeling including an receipt in and Health compliance, non-health superior our the performance. compliant privacy-forward a and in audience feeding data Across superior solutions, for industry. sourcing in third-party and received review audiences. solutions. healthcare last of the our proprietary leveraging a on comprehensive a for machine rates in processes, extremely verticals, valuable of it creation This quality involved underlying and leader industry Certification Finally, predictive NQI our us data position NQI quality for health the follows healthcare quarter certification and

third-party of AdTheorent and audiences, focal a company sales XX customers with short target. of in particular audiences. data audience see XX% quarter, metrics, XX% of higher regularly our our test concluded competitor, and to relative running CPG utilizing audiences controlled During a industry. that active the XX a driven time holding with per This AdTheorent products, campaigns competitor. the competitor a algorithmic strategic campaigns. efficient rate market collaboration there a AdTheorent point partner, they repeatedly the of suite test our went targeting part by are across XX% ability we've in were customer AdTheorent predictive a the validated part audiences The performance efforts. click-through results audience performance head-to-head QX, in increase as cost major to our all the an at in DSP our was In In product with invites since third-party with uplift predictive active click campaign This QX, the demonstrate versus become important sharing the across area machine introduced the strategy. at deep showcases outperforming than a superiority our more have learning and predictive delivering we

we offering. to our premium Finally, expand CTV continue

Viacom, During with sports Discovery, expand to of network information. variety A&E rolled and quarter, additional our AVOD across MAX, QX. adding apps. live to enabling we'll In Roku, more, that initiative QX, to our inventory live we This builds and metadata Hulu we offering addressable greater TV upon last will premium and target and in we continue out live be online cable content the channel the quarter, added include buyers a inventory

said As more and in before, target, content to Having data or and of normalized. channel not CTV, network data standardized we have enabling granular making clients CTV out AdTheorent the performance-oriented bidstream differentiates model the much and it report on is signals.

in these for and generating and improvement targeting, XXX% models ROI. facilitate self-service the pricing CTV was ML-based offering, data within revenue of our to buying, second further measurable where additional performance sequentially strong Our models, XXXX. particularly quarter compared the improves increased optimization media smarter

few and X% robust our year-over-year. revenues But this will mode. and teams our to new innovative confident mix brought world-class ongoing also of work market, solutions and our a increase, self-service contributions grew I technology a adoption growth. to expanding result As comments we competitive like CTD product are to would make R&D of CTD shift, are are the continues whose just ongoing return to about overall

technology this make I'd solutions, advanced the valuable to impactful quarter future, X programmatic during and on dependent advertising science for innovations into launched a privacy-forward that to like programmatic briefly more machine talk the mission. learning efficient retarget. advanced third ID-based marketers user industry about by is mission and deploying not the data advertising leading Our

the First, client building looking to A target content our do analysis processing open the capabilities, we URL that across both level. deals airlines Internet. can flight on now based page and on URL the natural beyond to page or keyboard expanded targeting in-page so contain keywords travel language

also optimize are the driving Our campaign that performance. the towards strongest will predictive models and keywords those will up these during pick

based on we quarter, as keyword which rolled we Second, common vectors. into taxonomy, inventory themes out organizes last theme our our previewed

utilize keyword solutions same IDs. part important on travel that a whole NLP reliant privacy our not targeting content to product are are methods in AdTheorent's user advertisers capability using our suite as they and effective capabilities. target to offer forward, addition themes of targeting can learning-based, that highly client machine travel So These an robust as

To Places we to Platform, XXth Notably, Best also for and the our Digiday Work Side We remain consecutive the Buy achievements. won Technology for Programmatic recognition continue year. for Award a receive we more industry Best Crain's

we macro with spending our quarters strategy. Even concerns past into behind into XXXX, the for have and fourth move in offerings, pleased remains we As though ongoing we economy, X materially growth core about advertiser mixed the are prospects. quarter we enhanced and ad execute with have our the which as we strong momentum momentum our outlook

XXXX never profitable our growth in Our positioning been but approach heading sales and budget we're promising. our engagement from are and advertising sectors, solid and reflect pipeline into for XXXX. agencies, broader Across has caution, growth we of will a primary witnessing spending more increased brands the year

machine confident in never and cutting-edge budgets pricing ID data learning by and, the We products performance, in in industry and process, the flexibility, transparency. growing been to consistently solutions; superior campaign more leading programmatic share independence ad verticalized a data and our delivering of using ability capture have

a during successfully positioning which We AdTheorent to have tangible of leadership. quarter strategy patience our persistence and made the team, due world-class for is market sustained around focused the progress

to Thank exceed optimism. this XXXX and and momentum We expect your you AdTheorent. to track projections on We meet for we looking remain support are for to full-year confidence our in ahead continue. XXXX, or with

Now I turn the Patrick. call to over

Jim, good afternoon, everyone. Thanks, and

our was deliver X.X% million, previous strong of of self-service EBITDA compared The of revenue continued high and our the to $XX.X are to the midpoint momentum In quarter's results third and adjusted as revenue year, year-over-year outlook. our previous We from outlook quarter, end the an in by pleased QX the advertisers. solid third or healthcare the surpassed driven growth. exceeded $X.X quarter million, revenue platform increase to of AdTheorent returned

XX% on and year-over-year. While XX% a we impacted particularly interest challenging for our and this over excellent increased core budgets, verticals In in AdTheorent continue execution grew XXXX offset investments. the of higher more advertising rates, by platform QX, environment ad from was of see brands QX than the in number to Health by health strength revenues areas

pointed out, is in advertisers Jim As utilizing there Health a number the of AdTheorent increase significant audiences.

self-service XX% compared with QX in quarter increase expansion XXXX. seen coupled drove of year, advertisers can advertisers. sequential a This XX% using we've of be number also every the a sequential self-service revenue, on existing continued growth with this rise attributed which increased platform We spending in to to from a

expenses. revenue, Total to AGP in million which shift revenue the from audiences. audiences $X.X profit The sequential up introductory QX operating gross calculated mix In encourage due $XX XX.X% due was or increases points expense exceeded again a the the now quarter million due year-over-year million, of support to X.X% record in Consistent to was a third our is XXXX. increase margin the hosting or to million, Turning quarterly prioritizing high $XX.X in base, year-over-year and QX. quarter, of reliant $X.X On increase up to basis, the expenses. quarter acquisition Stock and costs on GAAP third-party Health expenses quarter, in data. for less offset offset as driven development mix and adoption reductions the and higher a adjusted the XX.X% health of traffic in or acquisition by pricing primarily third and revenue XXXX, AdTheorent in EBITDA decrease basis million, partially increase revenue in third $X.X partially or expenses. from million, was third expensive AGP of XX competitive in AGP audiences, in The technology Adjusted XX% to margin less once of of are and QX other the offerings, were of and general and with the declined quarter the higher CTV from revenue by higher predictive to offset a expenses EBITDA to million, self-service administrative by up was to operating expense recorded $X.X higher discipline end outlook. for to XXXX. million costs our compared compensation $X.X X.X% our compared operating traffic track $X.X by the profitability, commitment we cost GAAP

$XX.X the with to initiatives, versus development million $X year. end software a capitalized the the fourth significant versus exited We important We cash quarter of we and and capital. flow position. $X.X versus of primarily flow with our in QX the free million generated million platform to Turning flow. the cash of X the cash of cash mind year, year-to-date in costs annual Year-to-date, working in up for $X.X of due QX cash is last third cash timing our reported to in flow in free that, the attributed increased months compared also At million strong a quarter. had revenue. the year, costs million portion $XX.X for to product our It's $X.X capitalized reduced million liquidity the was $X.X million first to QX, support software noting quarter, to XXXX. mainly at end keep ongoing of similar to It's worth prior that

debt to no on our but have the to have $XX on revolving sheet credit million continue We access facility. balance

and self-service to the progress our Now key platform, new full demand areas, year. saw positive into will driving The investment and QX QX on momentum for verticals. year-over-year products The including Health driven our QX various CTV outlook basis. improved revenue and builder is our in we growth by continue across products audience in for a results our strong turning AdTheorent offerings,

no assumes in macroeconomic the changes significant environment. forecast Our

compared adjusted gross $XX.X reflecting million we EBITDA anticipate QX The expected revenue at and EBITDA $XX for profit and to and significant between revenue, a be For million be QX revenue adjusted $XX representing quarter, to the the QX, of between X% growth midpoint, at for $XX be to fourth million, at midpoint we XX% XXXX. XX% operating is to expect our adjusted or least margin the million leverage.

adjusted for full AGP based revenue, on and year-to-date Today, Regarding the XX% and gross full expectations. profit provided XX% and adjusted EBITDA, year of about be QX projections XX% for revenue XX% of can our more specific outlook, within we between and contemplated EBITDA XXXX, our we've growth, actuals profit. adjusted which adjusted and QX revenue, previously outlook our through gross year

pipeline opportunities For to and to the range, growth lie expect at EBITDA many for approximately our the to sales year, the toward Q&A goals, be to QX see this to growth continues the and like $XXX be agencies, enthusiasm of full this into track we second to that AdTheorent. expect business growth revenue or in our the The half In adjusted would midpoint by and session growth our momentum we from X% by grow Across are approximately $XX sustain ahead key million, margin. million, been the transition to operator. to we brands AGP time, XX% approximately return summary, moderated we At never pillars, has better. and longer-term an our and we encouraged XXXX.

question with line Our Ripps Canaccord. first Instructions] Maria comes the from of [Operator

First, some terms is QX? your you the of anything with guess how us state incremental the your broadly, there much with what's in in in And guidance? of I key more clients? market conversations your And advertising the share can of is tone conservatism of embedded

very lot unknown products any part incremental past it nice has not quarters. a incremental of noted the last unexpected lot and think guidance, received that a be I from of like we've in enjoyed does kind enthusiasm our few that a of already and There's our big to incremental. dynamic We market with that or guidance And the improved contemplate in should our that business, some our been incremental, change quarter customers. has been terms and of of sensing we've are optimism always quarters.In a the brought fourth a around

we've to Street. would the incremental what guided guidance be Our additive

good So where from change enthusiasm we customers quarters. positive We is from our the are. feel feel about a prior like we

macro I improvement. think some to of that's due

I market to, that that's audience think with frankly, our our time a the due algorithm-based new in self-service prepared offerings. offerings, health products we talked about some remarks, of of our in our our offerings, number

in I anything the seeing a think of but are Patrick, So and would to that seeing, lot driving of want we macro. enthusiasm we're add adoption improvements that? momentum also that the to those you is the

on more is the can guidance would I whereas slippage around expectations mean, campaigns upside canceled, the range get our to our not color QX give moved just some additional dependent our or QX. future quarter or that, I any guidance, on whether or to be really range for incremental

And Jim, optimistic you next pipeline. secondly, mentioned then about and pretty a sound year, strong you

far, broader So so you next the advertising your the given progress on year? product and about think relative to share grow side to how all the do take ability space

our year last customers forward In because commitments was a to being of it different close certainty a completely number XXXX, XXXX, out this time, were growth into a time self-service that at So looking offering picture. is XXXX at looking had where our to of we we and less around beta. from

that media look incredible been driven think, around has We as have we seeking we their results for incredible beta AdTheorent have have of enthusiasm 'XX we buying a only customers strategies.So commitments. deploy and offering buying period, the I of customers. through not when but into lot more a part to self-service has gone self-service our And early

'XX confidence level have of We much as revenue, of which will visibility 'XX from greater revenue growth. we on the more that just we and into top we into bring drive have foundation to a

we significant get going view, we'll innings to customer platform. to we 'XX of self-service I of especially a we capture where the in of platform portion beginning had relative a we It's a a our in us, a compete if And going very So into other year, and impacted especially. that that health, into set opportunity. self-service opportunity, moreover, can we version in different advantage, and and believe growth self-service, have wanted self-service, the differentiated, our 'XX. ability have believe verticalized to have and impacted drive significant with any meaningful at didn't of we we a that move highly early that platforms, capabilities, picture had a into that that 'XX

as couldn't of end So year. the we feel better into sit next year, we at the looking

posted. So we're to you excited keep

the Martin next Laura comes with of line from Our question Needham.

content on the with wanted I the that, to Hero sort learn press going exclusive and have because, first of side sounds you've like One which addition little to reading a press the about] in (indiscernible) drill release, So sites, release, access to supply like to to you've today. been sounds it pure-play deal reading you're from DSP because data [bit like, down a a I'd done more

just that is, please? So am reading about wrong Hero I what One

assets customers advertise multicultural about things. first algorithms audience-building to have be partnership a multicultural we're get had where access audience our and and one-off in provide offerings used to of publisher they agency. very will not as Hero. think network and algorithm We're really Black-owned the network that we creating In communities ID that valuable we'll that have work, the excited expertise are which, with that Hero Hero in use tapping partnership They're targeting now; they our with content They based data whom a a in that DSP of Hero, which I we excited methods thoughtful the data the in rather they wealth number a are fueling with a largely the our work into of brings can inventory about access than clients capabilities. context multicultural consumption.So supply-side about creating table and number assets, to just again, on assumptions-driven as audience-building and in targeting our unique to very capabilities, have, well being brings before.

the and give data down we're advertisements. the our to a shifting doubling to in audiences destinations unique down, our capabilities us We're multicultural but side. clearly our assets, on be side, allow will with deliver that value buy Hero with tripling and our demand-side partnering our data So for to fuel partner models, on to we're supply unique not on ability us

pure-play a So DSC. you're still

Correct.

My was Jim. CTV, on other question

but So the grew XXX%, you by CTV by CTV self-service grew total said X%. that

rate? So did and I that all CTV managed is our kill the implication of service we take Am properly? that substitute is that interpreting for self-service

No. I a a have think good. in sell. CTV, SKU, mix Laura, that's going self-service more to self-service to With you're there's shift regard and

I together. knew go well to very going think we CTV we're that and self-service

encouraged no, to mean, I mean, it that. see that going self-service law growth it's this we've I in managed when this seeing in particular numbers.I time, at by across think we're we're So both self-service. to of CTV. But comes through small we're growth point and the quarter had much more

growth a and there where think buyers quarters we at self-service have learning-driven managed be buyers of a being will key managed. to fantastic view we'll end the offering, have data-driven, self-service the I to going that growth. be day, able provide to machine lot is both is a the that and to across But of longer-term

across view part self-service CTV. So big of driving I beginning be I growth it laying don't to very going as foundation obviously a view And a of story. is as X-quarter for that. a the it

And last year. question that opinion going the push then in you? more first that? deprecating my campaigns cookies next of is towards on Is [after] What's Google your half is the finally catalyst actually to to (indiscernible)

statistics, with prior good and prepared post-cookie feel audience, lot that relative We've very is other Yes, remarks cookie also about the in about. algorithmic our significant more of we a our we've be than about as the can of We types using have being about And advantage. there approach, impressions talked our that you where ID-based a partners those to inputs so in gives And that end the create processing can and capabilities language graphs natural an score that when also talking forward, where a to about world. and keyword at with believe just to XXX%. of well.But and one-to-one their the insights working talked can are we we're are are platforms audience sit we And We there a have more IDs us to lot things. data things world, the advertising household we understand quarters that deprecation thought learning models. our and built. one-to-one in contextual science we additional I data look day, coming. data, in advancements contextual need machine

IP We them back household Many are great of to addresses. have tied graphs.

We We're thinking thinking other data beyond also IP are beyond signals. the address.

So leverages just market really future-proof us. that it's for to machine We to want a not goes targeted solution the just learning not beyond signals and advertising but about bring cookie, the for beyond cookie the are granted lot a a that And of doing now. to of share we're exciting these for forward I that. look think and right I to information, very to that in be some going place taken

Our next of question Securities. JMP line comes Andrew Boone from with the

deprecation are This of me. the Google? have impacts by addresses learned the there CTV, line on from On is And year? you questions through Two [Brianna] what potential Boone. [What's for IP then, looking this Andrew for CTV trajectory any like] for XXXX?

We inventory we of adoption drive our going the feel self-service lot inventory talking self-service MAX, good and about about were CTV, our good think increased of a it's mix think we a platform.We've fact Again, we Discovery, reach, actually bit with a growth. were that CTV Yes. shift our a the to that's with We of Roku, thing. to AVOD Viacom. there's drive live and can score also and use world request can investments CTV engine. We've make and We're recently so adding impressions added learning algorithms CTV the content live sports, in CTV in the those the make we to of bid fourth performance-oriented in in the continuing that our that object a metadata so understanding more signals performance addressable, machine we're Hulu quarter.

I about good think feel really So it. we

self-service. there. to going on Again, other are rates innings we're more established growth platforms relative the think be early I to

going forward, optimistic on of CTV. that. as So feel It's I our we see going really scale self-service, we and numbers big strategy, we're to great a think part very about

as good just really where about Laura, the is of AdTheorent mentioned Regarding feel positioned. cookie, we the I deprecation to

We ID-focused company. are an not emphasize not We nature targeting. do of the one-to-one

just an We ad machine on understanding and signals algorithms capabilities. given We to the bid impression data ID learning those year. signals to or of with get number a along than requests, on whether different we're of a in IDs, rather predict share have excited serving have little it we further lot strategies IDs.So a the a of other cookie using as focus outcome an we that that's retargeting to

advantage We're the working learning on the make world by opportunity for that world in in be We think and that not us take view to building for happening. are great, that that ID-based, it's on actively reason. company will I share a those of a those advantage a AdTheorent's that dominated machine exist a to to being We're a future believe AdTheorent post-cookie role and have an stakeholder waiting targeting. changes. of that great and we in why Google full our for for we time the gives a will changes opportunity great one-to-one AdTheorent AdTheorent And way

question Capital next our from Kupinski Michael Noble the And Markets. comes from of line

I the marketplace. of of new the have to across the guide. of the to things. the kind those forth. key that products a some was the of you to in your quarter, trying trying initiatives to drivers market the versus gauge rate was it just the advertising products get in couple and marketplace, the relative And tone sense and new are wondering take so of to you're of I'm had guide new marketplace your I and just just what that the quantify terms and a have if all One mentioned way the new about products you fourth of that just initiatives bringing a

driven that environment and by the then it see and We're areas, to initiatives return investments growth new our primarily this product in audiences, self-service, our our We our difficult. this future. very CTV.So persisting strategic in and we key health and in encouraged QX QX, do in macro including into by believe growth is is

We A haven't from our between average was of growth provided on of were is customer In new for new a up say us. majority of other. higher, number the customers year-over-year. per only our spend detail our not lot could active parsing environment a a X% I rebound growth our macro from in initiatives be bonus would But QX, versus initiatives.

resonating. is doing what indicating we're with is that So our customers that

that also strong stronger to lot we with have to even offerings. add potentially these and as we our margins new would confidence continue remain of go will that get a I that

an not a in at indication very self-service to us. that tools the can segments, it's that quite choose platform, rather have the and third-party those improvements margin I on we're who And AdTheorent-based we think of seeing audience, that Seeing of also been has new positive. impactful adoption that data those about self-service future than either the of to sustainability We're this utilizing the our With utilize use by that. excited ability incremental purchasing adoption offerings. our or the the very, an algorithmic I see and we for and and margin audiences, given think it's audience our choose utilizing use user over-relying point,

one just further more And question.

still trying a are in by it's that you been just talking indicated, the referring largest breadth still there large sense regards the number smaller Or to for really waiting increase out the advertisers still environment Is There's you market. advertisers volume reports is in Just seeing. advertisers? Just understand that just about, that rebound a not ad in were I'm as of there's fueled rebound? you and you're the that some to that of have? rebound. what or being We're the a what an total the advertising that spending. just struggling overall

areas as mean, growth of customers, And our it seeing of there higher year into through the next higher is our where in Jim last say But we us discussions. our earlier, having as base. bigger a level I existing we really to persisting than growth, incrementals QX. of at that, QX we're investment confidence have second some is was for the and already of visibility sustainability we commitments We're from come customer self-service visibility XXXX, our go time.So spend across 'XX level this there at specific better year would materialize. to, into pointed kind and half seeing the and is our do that I spend because in then we're in as their incremental mentioned we're of seeing positivity into areas health,

lot are in or we and the depends the think, number pressure add is, offerings talking lot line were was to I rates There I a challenged interest and health high that good. on government, financial There services banking, think under I some with pleased weakness of the and that. insurance. demand really that and saw of, feel products about. bottom of you're macro a because with CPG I of mean, really considerations.But that, answer other your we some and to pharma, we're verticals would strong, also extent a that, question in really

set clients. have vertical We diverse very of a

We have large clients.

large more ever than have We had. clients we've

brand the exciting independent we've We as of media middle growing agencies largest making, the of think opportunities those of arrangements really platform we're a But there market market a be and lot it's relationships that organizations, with buyers strides happy we're in get world. trying base, And don't to are front and don't strong progress focus those the independents of going as you and made some on our well really a have great And and happen XXXX. those nicely. really middle really great we're getting overnight, with I types overnight. in to and direct

are over further Lawson, call back Mr. the CEO. turn this at James There time. I'll no questions to

believe strong everybody just and only beginning. for Thank members, we clients would to shareholders, closing, also are I joining us our have for our team possible AdTheorent to us would you. it like customers and who to I thank results, which a made In thank deliver like today.

we We forward story and momentum sharing very speaking in look to to you, update future website, road investor the to To to plan of a the an have of excited thank business and on We the we the great the with our section future quarterly.Again, AdTheorent our of presentation end, about many the are that have and you AdTheorent. evening. plans. posted which IR and