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spk_0: welcome to tremor international fourth quarter and year ended december thirty first twenty twenty two conference call at this time participants are analysts listen only mode with the question and answer session to follow at the end of the presentation this conference call is being recorded and a replay of today's call will be made available on the investor relations section of tremors website i will now handed over to billy effort senior director of investor relations for introductions and the reading of the safe harbor statement
spk_1: please go ahead
spk_2: did you apply to the boy everyone the bed were troubled international sport quarter a you ended december thirty first twenty twenty two earnings call what is his school or over to group them was chief executive officer and chicanery the company's chief financial officer this morning we should press release which you can access at a website at investors that from international data going to the scalpers go we were wanted for that achievements a statements other than statements of historical fact could be the indus forward looking we both question and reliance it forward looking statements this they could food without limitations statements and projections about or into spirit future financial results it's discussions about our revenue margins expenses and guidance for for your twenty twenty three it was introduced us that to see the benefits of drummer strategic transactions a commercial partnerships it's as peter features and benefits of tremors products and services points from his position for future growth and both of us international markets and forty forty three a beyond traumas implementation of a substantial share repurchase program as we continue to evaluate strategic opportunities to power companies i'm destined said dougie product sales and marketing to further to them was born tremors medium to long term prospects management's believe that tremor is why position of benefit from it has been a future industry growth trends a company specific catalyst the potential negative impact and inflationary pressures raising interest rates geopolitical a macro economic uncertainty recession concerns and widespread global supply chain issues but it wouldn't it advertising activity he and he had suspicions these challenges could continue that impact for the remainder forty twenty three and beyond the it's dissipated benefits from the company's investment in peter and it's enhanced strategic relationship with high since the dissipated benefits and synergies from the acquisition of about the ability of trouble to continue to recognize or synergies tremors ability to continue to execute across i opportunities and it's introduction new technology products to significantly larger customer base and bull market the time it's a complete the technology integration of a movie and other statements concerning be expected the dominant performance and market share a competitive performance related to a products or services bertha we're looking statements are based on information available to us as of the date of this call these statements about known and unknown risks uncertainties and other factors that may cause or actual results to differ materially from those apply but he's been looking statements including unexpected changes on our business more detailed information about these was factors and additional risk factors are set forth and of violence with the united states security and exchange commission including but not limited to those risks and uncertainties listed in the section entitled risk factors that are most recent annual report on from twenty trimmer does not intend to of the earth your it's forward looking statements that are a was up with new information future that's or otherwise except as required by law additionally the company's press release a detriment statements during a conference call with discussions of certain measures and financial information i have for us and not i have or as terms only to the country's press release for additional details including definitions of not i have or as items and reconciliation spob i have or as to not i a forest results at this time it's my pleasure to introduce or for shooter ceo of july the national
spk_3: please go ahead
spk_4: third to be me and welcome to everyone's running for them or would be viewed by providing an overview phone booth and strategy and then we learned over the corn both the food for the noon to discuss our financial we will then opened the cold for question results from can fall into contribution from a movie and food you play with you to weasel contribution from a more beautiful the september twelfth plenty plenty to who december thirty one twenty twenty two poland recall the gun growth in prison for the one we continue to deliver food who knows when to twenty two i like there was significant both and so expensive and above average mean friends with you we were able to achieve is on while executing of the three the acquisition and investment the phone with with this is the company and customer for you to fix this but i continued relative bargain completion with will never be on advertising humid to a twenty two in the fourth quarter regenerated record companies and expect of one other than three million dollars reflected the person you hoping he was as well as records confidence in excess of three hundred and nine point seven million dollars is than three percent you will win receive these growth while remaining focus on generating i level of cash flow and possibility which we find even more important in also the most it we strongly believe operational efficiency driven by oh him to him with more respect he the so competitive advantage of differences the position of will where the opinion of and the by those books help of the and provide flexibility to invest in or platform to drug user growth and innovation both you fall and fool you plenty plenty to retrieve though most recently just the be the target generating thirty six point nine billion dollars and one other than forty four point nine million dollars of adjusted the visa respectively for the food you was unaware that adjusted ebitda margin of forty three percent as a percentage of we both in revenue and forty seven percent as a percentage of the from this results are particular impressive as we invested significant management and could been a for acquiring and integrating a movie which operated at the most when we close the acquisition in september in addition to generated recalled net revenues and strength and stability we continue to grow our share with you he it's what we believe to be rates spa still than seven could the thousand industry this outperformance into to be i those things and resume see in the segment and was driven as a direct result of all intents and have started you to emphasize in first significant resources and city mutilated poor the development over the last several years we believe this i'm going to emphasize on going and expanding out of abilities with insisted he would provide the company and it's customers with increasing advantages over fun and kill for we generated records see the be spent of ninety nine point six million dollars reflecting a significant you will be growth or fifty nine percent for the forty of we generated their courses in the span of two hundred and eighty three point six million dollars reflect the new forty one percent growth compared to for it was the one the didn't pull them out the considered him as been and we'll continue to be primary focus and grow drivers or the business we strongly believe advertiser seeking solution within citizen will continue to favor and to insert thoughtful as they provide other costs and that advantages for both a one sided solution and better optimized the supply been which other major at the companies are increasingly oakland we have observed that develop company the growth industry investing more and more resources into his be a while intentionally rearranging the operation to more closely new and and to and business model while these companies are moving to operate and to end as the business level with that the stuff further as we are supported by and into and technology platform which provides a company with what we believe to be a massive advantage that can assist us in growing on my future over the coming years in addition glaring even stronger conviction in a way to end that and operating more them a twenty twenty two we furthering their celikkol grammatical the been given city be that the individual three through the acquisition for movie and investment in visa i'm a hobby as significant significantly air and further difference here that our technology platform with the addition of important physical entities including tv planning new cook planning and segmentation we the news with newly added the capabilities to clean and the company position as the me out for years could be dinner to converse and as an adult by the agency increasingly quick that enabled them to more effectively plan and deploy spend because both new york and digital using technology or developments the devil's advocate causes them as well of a going unfilled them three there's a diving environment the driven customers to be more prudent not the driven and strategic you know they plan of campaigns and deploy spent to achieve that can be eyes customers are consolidating budget and spend with fewer advanced tech blog full that can deliver that the and solution because planning and activision enable a proved with them on has been and better position them to that and adds up quickly to rapidly changing the three conditions the media ltd planning features editor or more be combined with our pre existing strain and validity of that the capabilities within ctv and in aus ssd enable us to create a new and unique the commodity to blame for bones and growth was an email tv and city civil service we believe this is the first of it's going to come on you that there's massive potentially the market and that is the perfect time for these back to be integrated into all eco system to capitalize on college friends within the industry as i suppose it's really continue to grow and as linear to be broadcasted increasingly expensive infrastructure do we believe growth planning is becoming strategic and vital to age of his in this technology enabled partners to reduce the the application that because when presenting it as about four months for the same use them to better understand rouge while the technology increased our city pickup abilities it's also significant looks by the our addressable market as we can now have all fallen i do desirable solution to customers with the building healthy vehicles why do we expect faster growth and city be offended leave it up a good advertising continues to represent and much not deserve market than city the advertising at the moment we believe well over fifty billion dollar of he spent advertising on leave the out the be in the last breath of approximately four two billion dollars barely even if you gave the wisconsin our nearly the ltv and growth plenty of abilities as already better positioned the company joined the additional commercial and publish a discussion with some of the world's leading broadcast those agencies and we expect these traction to continue going forward we are going to gauge the an ongoing partnership discussion with leaving broadcasters and agencies and are offering tried to those seeking to leverage joke was planning to we are encouraged by early signs that this technology increases the willingness of mental broadcast they an agencies to evaluate our exclusion as well as the likelihood of those broadcast those image of the adopting offering the grow thousand and two thick we have optimism that the to and you know relationship with large brought this will not only able to effectively access the linear the the much as but we lost dr mostly to be spent a growth on platform as as a thought of seek solutions to help them plan and execute them banks that across both leno and digit them although been we will work to on both both of those any college the father's to adopt more of our products while also seeking to then increased level of tenth and budgets for those bothers to deploy across all eco system in addition to the both of you plenty cup abilities we gain a movie also significantly in finance our amit shah and enterprise doves though guess be display and performance media buying contributed to this when the acquisition also added financial skill and increase the month of the for me cricket number of new global brands and eight as the customers you we're excited to be working this concluding that acquisition were made the significant progress and quickly combining the company be consolidated management sales marketing product and on and it is improving efficiency was serving approximately fifty million dollars in annual eyes operating costs the integration of you felt the member and getting everyone cross reins on our products eco system with slightly longer than anticipated however we believe the teams are now fully raiders and were confidence the combined them is prepared for first boy full we will remain focus on generating further got the having by consolidating deck and the cities as we were thought combining the treble video and be the a steve into one he named spot from we continue to expect to achieve sixty five million dollars he both an annualized operating costs images a true the feel to acquisition and to mostly formula that that integration by the end of each one twenty twenty three upon completing the integration with really when whenever one of the most comprehensive efficient and scarcity and does your focus and to and thoughtful offering in the open market all platform will also further these creature that twelve a relationship with isis and strategic investment the that which we they live with further support how a lot and leadership position within fifty feet odious to come in may twenty twenty two we address the twenty five million dollars in enough it's probably be operating system and streaming platform and subsidiary of isis
spk_5: this investment created a powerful partnership with one of the fastest growing global to be operating system and lot of the largest and fastest growing mob tv i am grown while further events ago that up and video from although the past several months without made significant progress growing it's
spk_4: global marketing with i have recently driven in greece adoption by several additional small the brands and mental city be partners we also believe it or now the live in a wide variety of major us what services and stream when an average of the roughly one billion hours of content fail month it also recently announced allows a visa free it's streaming of offering video on demand live video spot and add support the content which will be available on medium for be the our multi the from isis visa free going to live in the us states with plans to expand globally later this know as we that we've been into channels like roku china continues to scale and as v down votes additional and supported content in the future we expect increasing benefit of the had wanted to the senate for cbp in the u s uk canada and australia we get into our interests with a parent company i said which also on the to see both multi the brand is also recently had to measure success and recognition in growing it's global smart the distribution according to every see rebel i sense rose to number one in the world for monthly global multi be shipments for the first time during december as i think continue to grow sheriff in the global multi the margin our exclusive rights to the stupid see the globe on a cell data going through our always be their investment to provide increasing benefits and become even more viable the dog sitting if the other said for to be targeting admission i can't emphasize enough are you be and access to these studies as most other measures mouth of your yams money tigers yeah that that he loves what other at the companies in the open internet may have limited access to a field data we don't believe any of our views of global exclusive facility like we do with one of the fastest growing global shipping events as we look ahead we expect our investment in freed will began generalising meaningful revenues or the company both in your late twenty twenty three and beyond we also continue to invest in also rebirth of program joined the fourth more the to drive what we believe will be added long time been wow it showed a few fold we did better approximately three point one billion or them and show reflecting an investment of nine point five i've read of bounds or eleven point three billion dollars portfolio plenty plenty to really purchase of approximately sixteen point nine billion or than show or roughly eleven percent of shirt outstanding reflecting a total investment of approximately seventy million pounds four eighty six point two billion dollars two chairs remains a discounted levels we will seriously consider expanding the program or otherwise a new pro gun to take advantage of their been less an opportunity was the cold braga difference in addition we continue to generate increase momentum and adoption a cause tremble the join on moody george you full and would he added eighty seven use supply life partners including fifty six in the us for all of went to twenty two and one it either three other than i being you supply as including one other than sixteen the us during your for treble vigil and at forty two you i felt as customers and to other than thirty three all of twenty twenty two the grocery though political cypriot you travel and automotive does as well as others finally will tend to rebrand the company and consolidate our rents portfolio of the one made later this year we believe this willing and follicle missile focus and better convey go lifted value proposition of our unified into a technology that in the market for the company's next phase of month
spk_6: with that it is all a pleasure to pensacola sunday thank you author who they will review highlight than keep a mansion an operation a driver of argue for and full you twenty twenty two performing as a reminder que forty that includes contributions from amobi white fully resolved to contribution from a ah before the september twelve twenty twenty two through the fender for the fifth when did to period for the three months ended december thirty first twenty twenty two a direct quote contribution ecstatic of one hundred and three million dollars compared to eighty eight point six million dollars in queue for twenty twenty one alongside queue for adjusted ebitda of thirty six point nine million dollars compared to fifty four million dollars into for twenty twenty one in line with market expectation we also generated record programmatic net revenue of ninety four point five million dollars into for reflecting year over year growth or twenty seven percent during the quarter we saw improvement in advertising demanded them and compared to pew free particularly when compared to lionel was however macro economic challenges continue to impact advertising demand across several vertical than four months most notably in december and they'll only they shopping and advertising season wasn't as strong as we've seen in prior years additionally the us midterm election cycle and twenty twenty two fifa world cup didn't generate significant revenue for the company during the fourth quarter from a vertical protected with so advertising spending cure for increase year over year in industries such an automotive entertainment would reap they'll sport and political when vertical such as ppg personally consumer finance fashion electronics and others that thought i'd ever little consumer discretionary spending though advertising fan decline evil vet you're doing few for importantly despite the micro backdrop continue to impact the other or advertising the month environment we continue to significant any expand that would marketshare within ctv generating the record fifty defend the our platform in the fourth quarter ppp spend on our platform agreed to ninety nine point six million dollars into for reflecting fifty nine percent year over year growth compared with fifty cent of sixty two point five million dollars during your for twenty twenty one videos including ppv continue to account for an overwhelming majority of of you for and four year twenty twenty two net revenue at seventy three percent and seventy nine percent respectively our ongoing focus on cpv and video with favor in hand with acquisition of them be investment in visa and integration of spirit position he got very went to continue expanding our market shares the fast growing segments of digital advertising additionally if streaming services continue to launch new it's a positive in advertisers increasingly transact problematically we feel that we are indexed some of the fastest growing part of the market with scale and ability to service customers across the entire woeful we also continue to generate throng margin during our first full quarter of been combined with the movie which was the last making business when we first the the company in you for we generated an adjusted ebitda margin of thirty four percent on reported revenue basin and fifty six percent on a net revenue basis as we continue to integrate the company with back to incrementally drive margin back towards historical ever overtime for fully twenty twenty two we generated record contribution x thought of three hundred and nine point seven million dollars compared to three hundred and two million dollars in fully twenty twenty one which will the line with market expectations we also generated record programatic net revenue twenty twenty two of two hundred and seventy four point four million dollars which reflected three percent growth compared to twenty twenty one the company also the roll record animals ppv them of two hundred and eighty three point six million dollars which reflected forty one percent year over year growth from the two hundred and one billion dollars the fifty defense generated in twenty twenty one in twenty twenty two because he sent reflected thirty nine percent of thought of them and forty two percent of problematic than during four year twenty twenty two we also generated adjusted ebitda of one hundred and forty four point nine million dollars in line with market expectations compared to one hundred and sixty one point two million dollars are projected that is i'm twenty twenty one or fully of twenty twenty two we generated and adjusted ebitda margin of forty three percent on a reporter revenue bases and forty seven percent on a net revenue basis we will continue to remain acutely focus on generating i levels of profitability as we believe beef enable us to invest in our platform for right future growth and technological innovation way also provisioning a strong little opportunistically invest in our share at the fountain valuation level virginia rated added long term value for shareholders we also achieve the net retention rate of eighty percent during twenty twenty two when the company net retention rate declined year over year largely due to lower spending by advertising customer i mean challenging market condition the company was able to increase it's active customer base turning to our cash flow we generated metcalf from operating activities of twenty three point nine million dollars during you for twenty twenty two vs forty eight point seven million dollars in queue for twenty twenty one for for you plenty plenty to generate the net cash from operating activities of eighty three million dollars versus one hundred and seventy point one million dollars in twenty twenty one and a movie contributed negative one point five million dollars to those fully result in twenty twenty two with also entered approximately four point nine million dollars in one time severance and retention bonus related costs associated with the reorganization of among the employees into the tremors the national debate and again maintain that particular focus on retaining same marketing technology yeah and product allen during the consolidation process favor the combined company go to market than technology strategy innovation we currently expect our twenty twenty three sherbet compensation extends to be significantly lower than twenty twenty one and twenty twenty two under the currently inflate van with fact when curve less than twenty five million in showbiz compensation and twenty twenty three favour if we are unable to obtain shareholders a for resistant to expand our employee equity centigram we may be required to impair higher can't be compensation charges replays employee at with incentive run in order to continue to attract and retain talented included as of december thirty first we had one hundred and fifteen point five million dollars net cash as well as eighty million dollars on drone on our revolving credit facility providing amp illiquidity for the ongoing need of the business as well as for future potential strategic investment and initiate the it's during the fourth quarter of twenty twenty two we experienced eighty five percent free cash flow conversion and for fully at twenty twenty two we experienced three kasriel conversion of ninety six percent non i have already they looted any their ordinary share with fifteen cents or que for twenty twenty two vs twenty seventh them in fuel for twenty twenty one and sixty fan for the twelve month ended december thirty one twenty twenty two there's a eighty three fan or the twelve months and the december thirty first when to twenty one finally i now tend to our outlook global macro economic uncertainty which negatively impacted the advertising industry for about twenty twenty two as continue to drive challenges for tremor it global customers and partners to the point in twenty twenty three we saw the advertising involving significantly stop and during the month of december and january and into early february but he the or their potential signs of recovery and stability in the market think that that however due to defund going challenges driving continued advertiser uncertainty with that global advertising to remain constraint doing age one twenty twenty three and potentially longer although we do not anticipate it this time for advertising the man to weekend to this of level of the late twenty twenty oh an earlier in twenty twenty three as a result we are lowering our a four year twenty twenty three contribution that outlook to approximately four hundred million dollars an hour twenty twenty three adjusted ebitda ugly to be the range of approximately one hundred forty million dollars to one hundred and forty five million dollars despite a fluid on one guy them we believe the company will experience incremental improvement to result in eight to twenty twenty three driven by a painted positive effect of completing the integration of i'm amobi be expected meaningful revenue benefits from the company investment in fiba which with believe live with beginning like twenty twenty three an expectation for tempered improvement in the global advertising demanding them in twenty twenty three we believe revenue title other corbyn the focus on programatic activities we grow approximately five percent on a combined for of basis
spk_7: like revenue in outperforming business is expected to decline year old are you
spk_6: the fight mutant challenges we believe our deep and foot been within fifty feet they joined that that powerful partnership and newly in hands and depreciate in fact that the bill his position as incredibly well for future growth and marketshare game we also believe our official ends when operating more than enable us to generate help eleven of cash and profitability offering us the flexibility to opportunistically investing ever taken hands hansman and platform differentiation for more strongly position the company for when market and other
spk_4: neither condition improve i'm incredibly excited for the company positioning within the industry and the refund my phone's we've achieved and believe our future looks bright with my remarks completed are going to call back to offer just so do when it went to do with an incredible you we significantly grew up the city be market share and maintain our focus on generating some cash flow and profitability what in and think our their ability to drive further growth and added long them so other one
spk_0: they're that scale back that than growth planning capabilities going to a movie as well as the exclusive but i feel about the life and and and manipulation of the cbp can are investing in buddha also man solid into a platform in a meaningful way oh differentiated ability to provide solution for growth planning that the activation and media put that on eventually the for why of it that can benefit from agencies robbed of those of physically pile of and enabled them to achieve they kicked the as in ways the lot of think of as okay
spk_8: we remain excited for coming in has made to our platform and unify well prince which we believe will further solidify our position as a leader in the video feel superior advertising eco system operator will remain open the call for questions thank you if you'd like to ask a question please press star followed by the number one on your telephone keypad to withdraw your question please press i want again or posture just a moment to compile the key on a roster
spk_9: our first question comes from matt swanson pot rdc capital markets please go ahead your line is open
spk_10: yeah thank you good morning i'm not forget we haven't seen a lot of pull your guides come from your ad tech peers so i think it be really helpful you give us a little bit more detail on your mac or assumptions and kind of maybe with some of that seasonality or reality we expect have been thinking about our models first stopped
spk_11: the second half splat
spk_6: okay math a
spk_11: with money
spk_6: yes i think we are like the expect the goal
spk_12: i'm experiencing some weaknesses and que lot of course riven by the well known challenging macro macroeconomic thought fuck those
spk_11: ha i think that offer men central the integration of i'm all be a key members and and gross sales training to cut the little bit more than expected although managed to get their fish and plan in place for a very quick ah and of course we are anticipating that you're in twenty twenty three we we see some improvement
spk_6: from the scale off the number of eight the out that thou the level of a doubt that that we we get from the that and of course from other initiate the that we are seeing already have to sign
spk_11: ah regarding the to the analogy of causing all as the marketing flesh advertising market is the
spk_8: is it going we feel that in age one we will be someone around i don't have for the two percent and and the and the for fifty eight percent weakening age to again i'm reading you know federal on a leave than other surveys people are expecting ate too much for my or economic to get on a better friend of course we benefit from that as well
spk_13: but they think this is what we have been the for now
spk_4: yeah about that that's extremely helpful and then for i know it's early for a know be a it's great to see the cost and reduce that maybe some conversations with their customers if seen anything yet in forms of revenue synergies or i know getting a mobile go cross platform what was one of the big new intriguing points in this deal yes i met my foods with you again first the all i think that the moby wrote was a lot of cup abilities that we were not irving before we just added if we got the belly a pool cup ability for planning on libya but those the coolest plenty which is really bothered to do since we're the time and we would that this point in a minute but about the bit a more that is also taking into account elements of treble and helping you to become much more profitable but in general when we are looking atlantic those i think about two elements that are really bothered to mention one of them is the timing meaning that people want to get more out of the money so better planning usually means better results in a thing that we the tools that we are afraid now to leave me out and cross platform play the advertisers they can get more out of little money in in working with as they can basically achieve more when they're running on video but also without guns on a streaming and digital alongside that the second thing is the growth or the rise of day with meeting is the plot i feel that new now that was a very big and amount more than fifty billion dollar just in the us
spk_14: people were looted get the cpp and so on but it was not meaningful for them to move their than channels for to this fight to the fifth channel
spk_4: now because of the growth of they will people are looking at that and we're there to basically of them and move was the budget to the same size of the equation by doing that this is very meaningful because when you're just selling planning to without the activation and without the the ssp bottle day the connection between the planning to disband as has been the full blood for into and platform you're able to you're not able to basically keep this business a profitable but when you're going to
spk_8: think about like we are now offering me the market you're able to do that in a very meaningful manner as every as we rode also scrape when we spoke about it we are looking at that that advertisers really interested in that it's increasing the dangers of wrote got this big agencies and advertisers to work with us and i think that is
spk_0: will give us a lot of food room to grow together with a movie
spk_15: regarding synergies apart from that is also shifting and growing the trust of them will be advertisers it the see if be there to assist them to push more budget to unruly to enjoy from our products they love their data and targeting that is very meaningful for them and kids would add to them other the value went out by the ago and it into information by general i feel that they are more called combination with treble examining for glass and it's too big system that well connected now in the last few months but is starting to show the foods that we were expecting to see
spk_4: i'd appreciate it thanks to the time
spk_16: and que
spk_17: that expression our next question handsome laura martin and from the them we've got headline is open
spk_4: my name and coke can we go back to the ac our data a couple things you said we're really intriguing on you said that other people sort of use their ac or kept away with stuff out a broker guys are you guys gonna actually sell your ac or data and sort of compete with us on the tv than i thought you there
spk_14: are you just gonna use the i are dating to give you a platform competitive advantage helped let's start with that
spk_4: regular good morning oh you live anymore and am asia we basically believe very strongly nice yeah we are using jcr for more than five six years now i am am now we signed and disagreement with v that we too we look at that of the very strategic agreement that you're screwed with the twenty five million dollar in in order to get excessively for long them and we got ecstasy with your own de feo of i think it
spk_13: basically of authorities which is related license until their the it it in a in a couple of years from now globally and the meaning of that for us it's very it's well as you said most of the people are using it in a in a final donald you go in there won't go them we will enable people to choose the target
spk_15: in order to reach the open web and we will be able to we are we're of according to the rise of the agreements with i sense to also to sale or to life of these data to tell by the know detail get or to make to conduct measurements when we're looking at i sense and we start the discussion within like two years ago there were like number four five and you can look at our preferences me will dreaming to be another tune up one day
spk_4: love to hear v that was already number to license was number two in delivering conveys any december last year there even became number one for one month in december and there was the most of selling a city in the world basically delivering a smoky visit the world he made december twenty twenty two we believe that if they're very meaningful events we have their the rightful the start of a couple of feel that we are going to use it for our targeting well going to enable other people to target down by from a feed media or using our platform and we we are able to license a the data to the party in order to target or doomed to cook that measurement and tested okay i'm and then my second question it he said you had a eric have heard that retention rate that that your increase active customers could you talk about on if you could clarify that like how many out of customers to get out and a quarter of the year and who are you gaining when you're gaining new customers are they an auto they're like what kind of silos are you on take you don't get a new customers from thank you very much not from the water is what we meant to say there's basically we see that we are our detention wage is very eyes but not before customers basically reduce the level of spend the see of loves do it because of the microeconomics because of the market conditions they're not spending like the used to invest in the past about reducing the volume go and we keep always added boy more line i think that a get early goal we have you mention religion from the fourth of how many advertisers weird i think a around two hundred and something else
spk_18: i will continue but we a
spk_19: a big amount of new life into the system and are reading them from every are not located at their some a vertical away the three going on the after them we are going across the board and other teams in the us and internationally of course offering all for that to to devote the gods and the top of advertisers use it
spk_0: your goals we're doing that to they do feet and working with have lived in parallel and where most of our business in the us and we are usually going after the
spk_8: as a lot of the are what we call this and other titles in the us which ah which are rare
spk_4: a of course they're able to to invest a lot in advertising urges for than others were that about two hundred and thirty three new clients and twenty twenty two thank you very much should thank you our next question comes from thomas doheny france default please go ahead line is open i just found a fun for martelly first i was wondering if you could please provide any color on be growth executions rear and then kind of follow up on that how much visibility the i had for the full year are now compared to the end of last year thanks oh when you're looking at it the very first of all we can look at remarkable grow that regenerated last year well the one percent of your video fifty nine percent just in the fourth quarter and as we all know last day was not the walk in the park in order to the very difficult the from every aspect and we were able to keep the growth of fair city vm when we are looking now we have some privilege that we are reporting lot of the last the legal field
spk_20: look at the abuse i think that were going most than most more than most of the field around cpv which is really impressive and i think that it's coming from a few elements is coming from i a deep the colleges around fifty v product iraq and other products around targeted that we've built over the years truly was you know
spk_4: ready to make ready to you what about that driven their front ends my solution which is really helping clients to by consolidated cause them become more efficient and of course our reaching the market because of the number of publishers that were working with the city different but the growth can and twenty continue to grow in their twenty twenty two when we look into that you have a forty one percent going into for a photo other fifty nine percent and we believe the described will continue because i think that our unique position of them out of our the that professional level of false as people in operation of people are with other people is providing amazing service to these people that up to their that authors of the though bags at the roof of their continue to come to us of other to the process the thought that it obtains raunchy given we believe that it will grow to give you visibility about his hear about i'll draw the very difficult of course because of the macro economic situation and a dig that it's will be irresponsible but we feel that the growth will continue it also the year in a meaningful minute
spk_14: okay great thanks than one up or just curious if you could call on fire type of more about how big the world cup was for forty results
spk_20: it was a massive i think that the what we were able to demonstrate in the if they're in this occasion was them all around our capabilities meanings to to get into any agreements are exclusive agreement with fifa to run their ctv and it
spk_0: that's pretty adamant with us globally to push the distribution of reader and android tv around millions of users around the world and to an advertisement on that i think that this is a meaningful events and gave us like the culpability show as the copyability ability to do that is what more is the what know it was not meaningful because
spk_21: of got of course it up in a band of their ear and you saw that that of there was not a strong part of that the yolk december was they're not a strong month like usually does usually dust and the second thing is because also i feel that because it up and in dubai and qatar sorry and it was the a it it's created some issues with some advertisers and so on so i think that it was not meaningful but he chose the cook video files to take it a sport events and to run it in a very powerful men men are on city really connecting older daughter fall into anthony solution a relationship with v die and i live
spk_4: is it with isis around the globe great thank you our next question comes from eric marked it pacman new see from lake street please go ahead to ended up and the i wanted to revisit the guy is in light of of the research so it's definitely a pretty substantial reset on the net revenue the contribution eggs tax we're not look and four hundred million down from the prior four hundred and sixty million so off about thirteen percent just in the last ninety days and yet you're talking about the core programatic on a performer basis being up about five percent so what can he help a better understand that the puts and takes their
spk_22: yeah
spk_6: i think that when you with than the environment now is very dynamic when we basically have this guidance it was in the beginning of the fourth quarter last year when we were like cautiously optimistic about the future but what we saw after that is if your son look at appears that basically you for was not a great better than it was not acting like a cure for and december was flat on low compared to usually what happened in december and then also do see a started and little bit slow i think that was up and is that most of agencies and most of the clients delayed their decision about spending and about investing and it's we should take a little bit further so if given your less time to exercise you say demand for us to fall in the second thing is that is a lot of uncertainty so if we look around were and christopher they have to challenges where the michael economic challenge much needed to face and we are looking in montana and admitted to integrate them will be a smart man or into travel for these two combined i think the the fact that we can grow by five percent like most of our as basically demonstrated and we can keep fit i have the ability is a very meaningful event
spk_21: and i think that there we are doing it because not because again something is meaningful happen but because of the microeconomic for the treasure that basically lowering their level of fair the most of our lives and we don't feel after talking to them that it's going to change dramatically over the disappointed yes and on top of a are you going on top of what offer just mentioned i think that you know when we are looking on our peers
spk_11: guidance we didn't see like you know anyone i'm thinking of know the trade it from the equation that is getting like a high he then that one digit increase though
spk_6: i think that our guidance on lowering the guidance is now in line with on a flood the other peers are our guiding though most of them are or stuck naughty or a growing by i don't know five percent and again and you mention with in our activities our programmatic activities with you i will call activity in our main focus is groin year over year and a buffer they may five percent while the legacy
spk_4: non core performance activity decline okay and then i want to cat a new to this story and i wanna understand the seasonality i know you didn't give specific guidance for kill one for what a normal on the perform a combined with a what what is a typical seasonal step down
spk_21: from keyboard a key one
spk_4: again i think that's what happened in the luckily additional twenty twenty with the with the merging of the endemic and twenty twenty one which will the year like that in out of the endemic which for them to read it when kind of north and out the mix and shaved on the thing that we knew about it and i'll be having said that the thing that the somewhere and they fed the two months before i think it will be age one would be forty two prefab age to be fifty eight percent a something around that is thought that was the number like a few years ago but i think that or the similarity in the vicinity of chance because of the public but i'm barely enough
spk_14: that there are in the last year or so and you know and like in twenty twenty the pandemic father the twenty twenty one we saw lives of the second enough of them up and down because of their social unrest and and then again and went to do with so we thought i could be different the that we saw years before because of the
spk_21: for that was acting like when you fall under
spk_23: okay my last question on the new brand is it's potential you can fel day to an existing brand for is is creating a new brand out of whole cloth
spk_0: the get up breath regarding the brand so
spk_8: the reason that their dad a few reasons that we want to talk a lot of course a rebranding one of them is internal to connect older people to the caused people will feel that are connected the david you family the dow joining and they are part of it and the second thing i think that when integrate the new brand in order to the
spk_24: go on for size to climb to partners and at what we are really offering in of in a different manner without basically using a few brands that sometimes confuse them so i think that this is the major road inside and outside in order to reflect our capabilities outside but also connect the people inside in a better me
spk_4: manner and well we are in this process already and we plan to conclude issue
spk_25: a game that we wouldn't have any baggage from legacy brand it would be something
spk_4: we'll tell you that little and okay thank you next question comes from and rebound from jmp security yes please go hiking i did then
spk_6: great good morning and extra deck my questions i'm a wanted to ask about beat a free it did seem like a tremendous opportunities you guys have i would assume exclusive access to our to as you to be streaming channel in a bar channel can you just double click on what that could possibly mean help us understand what it is the timing of it and then just the the are all opportunity
spk_8: the basically eurydice grating channels now streaming channels with content of a bring from from bob for gonna father of a greater that on t v on the volume system and on the oh yeah we go with the operating system and we have extra cbd with them because of the thanks to the a great for the investment that me
spk_26: done with them
spk_8: of twenty five dollars for a couple of years for basically it will give us access to more media exclusive manner than a couple of years us canada australia and uk and the meaning of that is that that now been to get your the of a lot of it's traffic around the globe but when you're looking at at it's will give us
spk_22: like more and more unique exclude and exclusive media as we can basically over to our lives and we are working with them now closely about adopting our technology that in order to operate operated clothes on the platform yes and another just for you to the feds because the operating system is the one that is controlling
spk_6: what they use their or the consumer will see on t v so of course they can control the level of exposure and they're the exact location of where they are fast on him we be shown so they can like put some kind of far of pressure are locations would their that that users in order to to consume they're gone
spk_26: that that was exciting arm and the next i laughed about was just the be purchased cadence as we talk about twenty twenty three
spk_27: i'm shares a down this morning
spk_0: how do you guys continue to think about buybacks especially given need the fact years don't generate and and terms of cash flow and and that sick of and cashed out for you to continue to operate with thanks so much
spk_8: so
spk_4: yeah i think of her mentioned in and in the in the as was it something that we are considering of course as you said are fundamentals are still very tong their cash generated them for feet above ah though as long as they're surprised and devaluation of the company will make sense for us to keep on and ah adjusting though repurchase plan into a much massive lot of course we are really good up or now we are not like the twenty million dollars ah repurchase on october which is that closed land and of course will take on the fish and in the next week
spk_13: great thank you guys
spk_4: thank you our last question will come from andrew merrick from raymond james please go ahead line is open i think you're taking my question the not apology that the the already been answered and bouncing around between a couple of we heard commentary from other players in the state about twenty three being an inflection you're not only in the amount that a bad the by but also the amount of inventory going biddable i'm what assumptions are you including your outlook on the for
spk_6: they say are talking about growth of media right yeah
spk_8: the thing that they usually image union of course are these days to have like or their the demand side which means the budget is coming from their plans for that are pushing them for their jerseys or directly with a platform i think that most of the called sale now is not about the neither side that thing that we have very big reaching a market through
spk_6: ctv around a online video display and every other for they this is not a challenge i think the challenge of the market now is the level of investment that the advertisers are willing to put in the market which is it's meaningful for for the market to grow ghost because if we look at the resort and their summary of a lot of companies that are buying media the market in order to promote their services and product you see that are cutting their this band basically they're cutting their investment in media and so on so i think that the challenges not on the side of the media is on the side of the advertisers naismith less agencies that of
spk_28: basically more moving them all cats and i think that on that side we see that a lot of the advertisers it uses are lowering this spent in the past year and they feel if from i don't know if we are i don't know i love and our assumption it will not get worse than to the then today but we saw the last day
spk_0: that's a close to you now seem fair february last year
spk_4: we saw like a and lower banned for a lot of will cause of that we are working with and if you look at our feel something the experience the same yeah in in addition i think that we add some kind of that of advantage here because we just got from the investment in a mall be in a t v totally to the planning to for leaning t tv and now beef the atlantic tool know thou to take linear to be campaign and find the same audience on digital edition give us some kind of advantage were and advertisers less agency is less past and i want to find an audience he can very quickly find it you know through linear into digital and vice versa which i'm not sure that you know most of our competitors as the third technological ability right now thank you and then to flatly the on the and the guidance with your commentary around five percent combine pro forma programatic grouch just want to be a hundred percent clear that i am i understand the definition of what from for males and kind of what assumptions your baking and for mlb as well thank you yet the when we're saying on a performer basically a meaning that they were taking twenty twenty two and adding i know the tram or numbers into a mall be numbers on a fully are basing this is what we are calling for former better so this number or the programmatic number we in twenty twenty three by five percent and it would be off that are by the line of that non corrected it would just before him thank you the until we have thank you
spk_0: we have no further questions and kill as i can a call back over to africa care for causing imax thank you everyone for the fall for your time i think that the for out it's very exciting because like to twenty two was a very importantly the for thirty point of view giving the future we basically in and select a definitive an extended damn also to blended which i fear that this period of time that the market is the stuff people wants to get more out of their money so if they will use our those that will be able to drive additional results from the say budgets because of better planning which i feel that is very important it's giving us also ability to grow the enterprise solutions that we are said that we are offering them are get and i think that is also very important for long them and also the investment in v those we just discussed the whole city we think we already see very strong results those coming from a company might fit in ctv growing fifty nine percent in fourth quarter forty one percent in foolish it's very meaningful and i think that it's thanks to our way of basically creativity innovation around technology about our efforts about the reaching them all get and i think that the camp their got corporation that's pretty good i would just didn't fit as laura mention a cr is a very rare that their asset in this market and when you have it you can gain a lot from that and the second thing is also a what are you mention about v the free and venus really which is giving us a lot of more media when exclusive level that is very important is monica
spk_1: i feel that the future is is like plenty plenty to was very meaningful for the company for the log them we made his to investments or for movie and reader at all of them are driving it eventually got capabilities around t v e t v data and video as we are going for the last several ideas
spk_2: they've been in a tough field of family thing that were the looking of the long term i think that well on the right direction and we feel and say we feel excited and secure about our future well thank you very much an auto sales you know it makes them and you this concludes today's conference cut off thank you for your participation you may not disconnect the the no welcome to tremor international fourth quarter and year ended december thirty first twenty twenty two conference call at this time participants are no listen only mode with the question and answer session to follow at the end of the presentation this conference call is being recorded and a replay of today's call will be made available on the investor relations section of tremors website i will now handed over to billy effort senior director of investor relations for introductions and the reading of the safe harbor statement please go ahead did you apply to the boy everyone the bed with drummer international sport look and you ended december thirty first twenty twenty two earnings call what is to his school or over to group that was chief executive officer and she knew the company's chief financial officer this roaring we should press release which you can access any website at a desk investors from or international data going to this conference call we wanted for the the treatments a statements other than states of a sort of that could be being discovered what can we both question and realize that forward looking statements these statements in food without limitations statements and projections about or into dissipated future financial results it was questions about our revenue margins expenses and guidance for for oh you're twenty twenty three is was future business
spk_3: it's just to the benefits of drummer strategic transactions a commercial partnerships it's as peter features and benefits of tremors products and services going from his position for future growth about the you as an international markets and forty twenty three a beyond tremors implementation of a substantial share repurchase program as we continue to evaluate strategic opportunities to power companies i'm destined
spk_4: technology product sales and marketing to further to them was born tremors medium the long term prospects management's believe that tremor is why position of benefit from it has bit future industry growth trends a company specific catalysts potential negative impact of inflationary pressures raising interest rates geopolitical a macro economic uncertainty recession concerns and widespread global supply chain issues but it wouldn't it advertising activity and the at suspicion these challenges could continue that impact for the remainder forty twenty three and beyond the it's dissipated benefits from the company's investment in peter and it's enhanced strategic relationship with i since the physical benefits and synergies from the acquisition of a baby at ability of trouble to continue to recognize her synergies tremors ability to continue to execute across i opportunities and it's introduction new technology products to significantly larger customer base and addressable market the time it's a complete the technology integration of a movie and other statements concerning be expected that element performance and market share a competitive performance related to a products or services there rapper looking statements are based on information available to us as of the date of this com and statements about born and unknown risks uncertainties and other factors that may cause our actual results to differ materially from those apply but he's better looking statements including unexpected changes on our business more detailed information about these risk factors and additional risk factors are set forth and of violence with the united states security and exchange commission including but not limited to those risks and uncertainties was in the section entitled risk factors that are most recent annual report on from twenty hours trimming does not intend to of the are better it's forward looking statements that was a was or but more information future that's or otherwise except as required by law additionally the company's press release a detriment statements during this conference call with discussions of certain measures and financial information i have for us and not i have or as terms the puppies press release for additional details including definitions of not i have far as items and reconciliations of i have or as to not i or us results at this time it's my pleasure to introduce or for shooter ceo of summer the national please go ahead burn to be me and welcome to everyone's wouldn't have to them i would be viewed by providing an overview phone booth and strategy and then women and over the corn both your food for the immune to discuss our financial we will then open the cold for question results for can fall into contribution from a movie and food you twenty twenty two weasel group contribution from a more before the september twelfth plenty plenty to do december thirty one twenty twenty two poland recalled organic growth in twenty the one we continue to deliver results and twenty twenty two i like there by significant market so expensive and above average growth rates within city we we were able to achieve business on while executing of the three did acquisition and investment the from me put this of the company and customer for future of this is but i continued challenging the position with weighed heavily on advertising have you been to a twenty twenty two in the fourth quarter regenerated record contribution expect of one other than three million dollars reflecting the person you hoping it was as well as record food you consume this in excess of three hundred and nine point seven million dollars reflecting three percent you will win receive these growth while remaining focus on generating i level of cash flow and profitability which we find that even more important in also the market we strongly believe operational efficiency driven by oh to twins ignore the that he a strong competitive advantage of different you he position as well whether billionth of ever the by the of the and provide flexibility to invest in our platform to drive future growth and innovation for both you fall and fool you plenty twenty two with to though it was just adjusted the be the target generating thirty six point nine billion dollars and one other than forty four point nine million dollars of adjusted either respectively for the fully of we generated adjusted ebitda margin or forty three percent as a percentage of reported revenue and forty seven percent as a percentage of miserable this results are particular impressive as we invested significant management and combine thin air force acquiring and integrating a movie which operated at the loss when we close the acquisition in september in addition to generated recalled net revenues and strokeplay stability we continue to grow our share within city feet it's what we believe to be rates spa still than seven competitors food industry this outperformance easy to be i rather those strength and residency in the segment and was driven as a direct result of oh intention of started you to emphasize of in first significant resources if you could be related product development over the last several years we believe this i'm going to emphasize on growing and expanding out of abilities within cpp would provide the company and it's customers with increasing advantages over time and kill for we generated record see the spent of ninety nine point six million dollars reflecting a significant you will be road of fifty nine percent for the forty of regenerated faculty to dispense of two hundred and eighty three point six mean of the love reflecting forty one percent growth compared to for for the one the division pull them out the considered him as being and will continue to be primarily focused and growth drivers or the business we strongly believe advertiser seeking solution within citizens will continue to favor and to infect thoughtful as they provide edit costs and that advantages for both a one sided solution and better optimized the supply pin which other major ethic companies are increasingly quinn we have observed that our company the grocery industry investing more and more resources into as be a while intentionally rearranging the operation to more closely new an end to end been modern while these companies are moving to operate and to end at the business level with take a step further as we are supported by our into and technology platform which provides a company with what we believe to be a massive advantage that can assist us in growing on marketshare over the coming years in addition glaring even stronger conviction in a way to end that and operating more them a plenty plenty to we furthering their fellow programmatic of the been given ctv that the individual three through the acquisition families and investment into visa i'm a hobby is significantly enhanced and further the that our technology powerful through their vision of important covered entities including tv planning you cook planning and segmentation we the news this newly added the capabilities to only and the company position as the be healthy for years did we continue to converse and as an adult i was in agency increasingly big solution that enabled them to more effectively plan and deploy spend because the both new york and digital recent technology developments the devil's advocate causes them as well have a going unfilled them three bedroom diving environment that driven customers to be more prudent data driven and strategic in out a plan of campaigns and deploy spent to achieve that can be yards customers are consolidating budget and spend with fewer advanced tech blog platform that can believe that dodgers and solution because planning and activision enable a proved with down on has been and better position them to enact and adds up quickly to rapidly changing industry conditions they mean healthy the planning features editor were more be combined with our pre existing strain and variety of that the of abilities within cpv and in aus sst enable us to create a new and unique the commodity to blame for banks across both out tv and ctv civil service day we believe this is the first of it's going to come on his use that as massive potentially the about that and that is the perfect time for these back to be integrated into all an ecosystem to capitalize on college friends within the industry as i suppose it's really continue to grow and as many tv broadcasters inclusively expanded into suitably we believe growth planning is becoming strategic and vital to age of his them read this technology enabled that was to reduce the the application that because cause when presenting it as about four months with the said losing to better understand rouge why the technology increased our city become a good it is it's also significant he looks better though with addressable market as we can now have a powerful an i desirable solution to customers with the didn't help idiot why do we expect faster growth and city be offended video is an advertising continues to represent and much not deserve market density the advertising at the moment we believe well over fifty billion dollar baby of he spent advertising on the the out the be in the less vessels approximately twenty billion dollars barely even cpb the wisconsin our newly the ltv and growth planning of abilities as already better positioned the company joint initiative commercial and publish discussion with some of the world leaving broadcast those and agencies and we expect these traction to continue going forward we are going to gauge the an ongoing partnership discussing with leaving broadcasters and agency and are offering tried to those seeking to leverage joke was planning to
spk_5: we have encouraged by early signs that this technology increases the willingness of major broadcast there's an agency to evaluate our exclusion as well as the likelihood of those broadcast those agencies adopting offering to grow thousand and two it's thick we have optimism that the to and
spk_4: you know relationship with large brought this dinner with not only able to effectively access the linear the the much as but will also drive mostly to respect across all platforms as as a third of seek solutions to help them plan and execute them banks that across both the know and digital over time we will work to in both more photos and college to focus to adopt mobile phone products while also seeking to get increased level of spent and budgets for both partners to deploy gross own ecosystem in addition to the both of you plenty cup abilities regain a movie also significantly in he then our of each other and enterprise doves though this be displayed and performance with you're buying contributed to this when the acquisition also added financial skill and increase demand of the ticket number of new global brands and as the customers you we're excited to be working this concluding their acquisition were married the significant progress and quickly combining the company reconsolidation management sales marketing product like on and it is improving efficiency was serving approximately fifty million dollars in annual operating costs the integration of you felt the member and getting everyone growth reins on our products of them with slightly longer than anticipated however we believe the teams are now fully raiders and were confident the combined them is prepared for that first boy full we will remain focus for generating further got the having by consolidating deck and read the city's as we were thought combining the treble video and amobi be a steve into one he named spot from we continue to expect to achieve sixty five million dollars he thought and on your life operating costs images a true the feel to acquisition and to was formula that like integration by the end of each one twenty twenty three upon completing the integration with really will live one of the most comprehensive efficient and scarcity and use your focus and to a for offering in the open markets all platform will also further refrigerated that twelve a relationship with isis and strategic investment the visa which we believe will further support our growth and leadership position within fifty feet odious to come and meet twenty twenty two we address the twenty five billion dollars in vivo it's probably be operating system and streaming platform and subsidiary of isis this investment created a powerful about the soup with one of the fastest growing global to be operating system and lot of the largest and fastest growing mob tv i am grown while further events ago about up and medial frontal over the past several months without made significant progress growing this global marketing with i have recently driven in greece adoption but several additional small indie brands and mental city be partners
spk_29: we also believe it or now they live in a wide variety of major us efforts services and stream when an average of the roughly one billion hours of content fail month
spk_4: it also recently announced allows a visa free it's streaming of offering video on demand lively low spots and add support the content which will be available on medium for be the to be from isis visa free going to live in the us states with plans to expand globally later business as without that into channels like roku china continues to scale and as v on both additional edge supported content in the future we expect increasing benefit of the had wanna do this and exclusivity in the us uk canada and australia weekends rallied for with a parent company i said which also on the to see both multi the brand as also recently achieve measure success and recognition in growing it's global smart tv distribution according to every see rebel i sense rose to number one in the world for monthly global multi be shipments for the first time during december as i think continue to grow sheriff is the global mouth is the mountain our exclusive rights to the stupid see the globe on a cell data games through always be their investments to provide increasing benefits and become even more desirable the dog sitting the other said for to be targeting admission
spk_6: i can't emphasize enough are you be calm and access to these studies as most other major smart the your yams more diverse yeah that that he loves what other at the companies in the open internet may have limited access to a field data we don't believe any of our views of global exclusive if the like we do with one of the fastest growing global shipping events as we look ahead we expect our investment in frida with began think meaningful revenues or the company both in your late twenty twenty three and beyond we also continue to invest in also rebirth of program joined the fourth more the to drive what we believe will be added long time been for wow it showed a few full we did purchased approximately three point one billion or than and show reflecting an investment of nine point five million pounds or eleven point three billion dollars portfolio plenty plenty to really purchase of approximately sixteen point nine billion or than herself or roughly eleven percent of shirt outstanding reflecting a total investment of approximately seventy million pounds or eighty six point two billion dollars two chairs remains a discounted levers we will seriously consider extending the program or otherwise a new pro gun to take advantage of their but listen to their the was the current program difference in addition we continue to generate interest me went on and adoption a cause tremble the join on movie during you full and will he added eighty seven new supply partners including fifty six in the us for all of when to twenty two and only he added three other than i being used supply partners including one other than sixteen the us george you for travel vigil and at forty two you i built as customers and to other than thirty three all of twenty twenty two because retail political cypriot you travel and automotive out because as well as others finally will tend to rebrand the company and consolidate our rents portfolio of the one male betas issue we believe this willing and follicle missile focus and better convey know lifted value proposition of our unified into a technology that in the market for the company's next phase of month with that it is all a pleasure to pensacola sunday thank you author who they will review highlight and keep a mansion an operation a driver of argue for and full you twenty twenty two performance as a reminder que forty that include contributions from amobi white fully resolved include contribution from ah before the september twelve twenty twenty two through the fender for the fifth when to twenty two period for the three months ended december thirty first twenty twenty two regenerated generated record contribution ecstatic of one hundred and three million dollars compared to eighty eight point six million dollars in queue for twenty twenty one alongside queue for adjusted ebitda of thirty six point nine million dollars compared to fifty four million dollars each you for twenty twenty one in line with market expectations we also generated record programmatic net revenue of ninety four point five million dollars into for reflecting year over year growth or twenty seven percent during the quarter we saw improvements in advertising demanded them and compared to pew free particularly when compared to lionel was however macro economic challenges continued to impact advertising been under krauthammer a vertical than four months most notably in december and the holiday shopping and advertising them wasn't as strong as we've seen in prior years additionally the us midterm election cycle and twenty twenty two fifa world cup didn't generate significant revenue for the company during the fourth quarter from a vertical protected week so advertising spending cure for increase year old that you in industries such an automotive entertainment food retail sports and political well vertical such as ppg there's than i could humor finance fashion electronics and others that thought i'd ever little consumer discretionary spending though advertising spend decline evil are you doing few for importantly despite a micro backdrop convenient to impact the other or advertising demand environment we continue to significant any expand that would marketshare within fifty be generating wreck on ppv banned on our platform in the fourth quarter bp defend on our platform greek food ninety nine point six million dollars into for reflecting fifty nine percent year over year growth compared to fifty cent of sixty two point five million dollars during your for twenty twenty one did ya including t v continue to account for an overwhelming majority of our cue for and four year twenty twenty two net revenue at seventy three percent and seventy nine percent respectively our ongoing focus on cpb and video and favor in hand with acquisition of them will be investment in visa and integration of spirit position this any guff very went to continue expanding our market shares the fast growing segments of digital advertising the family of training services continue to launch new it's a positive and advertisers increasingly transact problematically we feel that we are indexed some of the fastest growing part of the market with scale and ability to ferry customers across the entire woeful we also continue to generate throng margin during our first full quarter of been combined with the movie which was the last making business when we first the the company in queue for we generated an adjusted ebitda margin of thirty four percent on reported revenue basin and fifty six percent on a net revenue basis as we continue to integrate the company with back to incrementally drive margin back towards historical ever overtime for fully twenty twenty two we generated record contribution extract of three hundred and nine point seven million dollars compared to three hundred and two million dollars in fully twenty twenty one which will the line with market expectations we also generated record programatic net revenue twenty twenty two of two hundred and seventy four point four million dollars which reflected three percent growth compared to twenty twenty one the company also the roll record analysts ppv them of two hundred and eighty three point six million dollar which reflective forty one percent year over year growth from the two hundred and one billion dollars the fifty defense generated in twenty twenty one in twenty twenty two because he sent reflected thirty nine percent of thought of them and forty two percent of problematic than during fall year twenty twenty two we also generated adjusted ebitda of one hundred and forty four point nine million dollars in line with market expectations compared to one hundred and sixty one point two million dollars of projected that the line twenty twenty one or forty of twenty twenty two generated and adjusted ebitda margin of forty three percent on a reporter revenue basis and forty seven percent on a net revenue basis we will continue to remain acutely focus on generating i levels of profitability as we believe beef enable us to invest in our platform for right future growth and technological innovation way also positioning the strong little opportunistically invest in our share at the fountain valuation level virginia rated added long term value for shareholders we also achieve the net retention rate of eighty percent during twenty twenty two when the company net retention rate declined year over year largely due to lower spending by advertising customer i mean challenging market condition the company was able to increase it's active customer base having to our cash flow regenerated net cash from operating activities of twenty three point nine million dollars during you for twenty twenty two this those forty eight point seven million dollars in queue for twenty twenty one for year twenty twenty two generated net cash from operating activities of eighty three million dollars versus one hundred and seventy point one million dollars in twenty twenty one and a movie contradicted negative one point five million dollars to those fully result in twenty twenty two with also entered approximately four point nine million dollars in one time severance and retention bonus related costs associated with the reorganization of a more deeply into the tremor international base and again maintain that particular focus on retaining same marketing technology yeah and product allen during the consolidation process favor the combined company go to market than technology strategy in addition we currently expect our twenty twenty three sherbet compensation extends to be significantly lower than twenty twenty one and twenty twenty two under the currently employ a plan with fact when encourage less than twenty five million in showbiz compensation and twenty twenty three favour if we are unable to obtain shareholders a for resistant to expand our employee equity centigram we may be required to impair higher can be compensation charges replays employee at with incentive run in order to continue to attract and retain allen physically as of december thirty first we had one hundred and fifteen point five million dollars net cash as well as eighty million dollars on drone on our revolving credit facility providing amp illiquidity for the ongoing need of the business as well as for future potential for asic investment and initiate it's during the fourth quarter of twenty twenty two we experienced eighty five percent free cash flow conversion and for fully at twenty twenty two we experienced three casual conversion of ninety six percent
spk_7: non i have if they looted any their ordinary share with fifteen cents or que for twenty twenty two best the twenty seventh them in cure for twenty twenty one and sixty fan for the twelve month and the december thirty one twenty twenty two there's a eighty three fan
spk_6: or the twelve months and the december thirty first when to twenty one finally i now tend to our outlook
spk_4: global macro economic uncertainty which negatively impacted the advertising industry for about twenty twenty two as continue to drive challenges for tremor it global customers and partners to this point in twenty twenty three we saw the advertising involving significantly stop and during the month of december and january and into early february but the the or their potential signs of recovery and stability in the market think that that however due to decent going challenges driving continued advertiser uncertainty with that global advertising to remain constraint doing h one twenty twenty three and potentially longer although we do not anticipate at this time for advertising the man to weekend to this of level of the late twenty twenty two oh an earlier in twenty twenty three as a result we are lowering our a four year twenty twenty three contribution that outlook for approximately four hundred million dollars an hour twenty twenty three adjusted ebitda ugly to be the range of approximately one hundred forty million dollars to one hundred and forty five million dollars despite the fluid on one guy then we believe the company will experience incremental improvement to result in eight to twenty twenty three driven by a depicted positive effect of completing the integration of i'm ah be expected meaningful revenue benefits from the company's investment in fiba which with
spk_0: believe with beginning like twenty twenty three an expectation for tempered improvement in the global advertising demanding them in twenty twenty three we believe revenue tidewater corbyn the focus on programatic activities we grow approximately five percent on a combined pro of basis
spk_8: while revenue in outperforming business is expected to decline year old are you despite mutant challenges we believe our deep and fruit been with in cpv the joined that that powerful partnership and newly and hands and depreciate in fact that the ability position as incredibly well for future growth and marketshare again
spk_9: we also believe our official ends when operating more than enable us to generate help eleven of cash and profitability offering us the flexibility to opportunistically investing ever taken hansman and platform differentiations for more strongly position the company for when market and audrey
spk_11: neither condition improve
spk_6: i'm incredibly excited for the company positioning within the industry and the recent my we've achieved and believe our future looks bright
spk_11: with my remarks completed are going to call back to offer
spk_6: they're just so do work it went to do with an incredible you we significantly grew up the city be mature and maintain our focus of generating so graceful and profitability what in and think our their capabilities to drive further growth and added long them so other one
spk_12: they're the scale back that than growth blow up abilities going to a movie as well as the exclusive blah but i feel that there was an avid version of the cbp can was investing in do that also man so it into a platform in a meaningful way
spk_11: oh differentiated ability to provide solution for growth planning data activation and media put that on eventually very for for of do it that can benefit bread agencies broadcasters have visited by up with of and enabled them to achieve they kid the as in ways no other think of as okay we remain excited for coming you has made to our platform and unify well prince which we believe with further solidify our position as a leader in philadelphia city the advertising the ecosystem operator will remain open the call for questions
spk_6: thank you if you'd like to ask a question please press star followed by the number one on your telephone keypad to withdraw your question please press or one a gun or paused just a moment to compile the key in a roster our first question comes from matt swanson pot rbc capital markets please go ahead your line is open
spk_11: yeah thank you good morning i'm not forget we haven't seen a lot of pull your guides come from your ad tech peers the so i think of be really helpful to give us a little bit more detail on your mac or assumptions and kind of maybe heard some of that feeds now out your reality we expect the been thinking about our model models cough stopped
spk_8: now what oh came up a night with morning ah
spk_13: yeah i think we are like the expected goal
spk_4: i'm experiencing some weaknesses and que one of course driven by the well known challenging macro economic thought to the factors ha i think of of romance and you know the integration of i'm all be a key members and and cross fail training to cut the little bit more than expected or bowl managed to get their fish and plan in place for very quick and of course we are anticipating that you're in twenty twenty three we will see some improvement from the scale of the number of a the out that thou the level of a your that that we we get from the that and of course from other initiate shitty but we are seeing already have first time ah regarding the to the amount of you have course you know the marketing flesh advertising market is the
spk_14: is a blind we've been that in age one we will be someone around i don't know for the to present and and the and the for fifty eight percent weakening age to again i'm reading you know federal on our lives than other survey of people are expecting ate too much for macroeconomic
spk_4: to get on a better trend of course we will benefit from that as well but they think this is what we're seeing the for now
spk_8: yeah about that that's extremely helpful and then told her i know it's early for a movie it's great to see the cost to reduce but maybe some conversations with their customers or if you'd seen anything yet in forms of revenue synergies or i know getting a mobile go cross platform what was one of the bay
spk_30: eg near intriguing points in this deal
spk_0: yes
spk_15: hi matt nice to see you again first the phone i think that the moby wrote last a lot of capabilities that we were not having before we just added a full cup a belly full cup ability for planning on libya about those the was planning which is really bought into the same period of time and we would that is point in a minute but about the bit
spk_4: more than that is also taking into account elements of treble and helping it will become much more profitable but in general when we're looking at planning those i think that out to elements that are really bothered to mention one of them is the timing meaning that people want to get more out of the money so better planning usually means better results in i think that we the tools that we i'm afraid now to me linear and cross platform play a advertisers they can get more out of their money in in working with as they can basically achieve more when they're running on video but also and around the guns on a streaming and digital alongside that the second thing is the growth or the rise of they were meeting of the plot i feel that leaning out it was a very big and amount more than fifty billion dollars just in the us people were looted get the cpv and so on but it was not meaningful for them to move their attention also to dissipate to the fifth channel now because of the growth of they vote people are looking at that and we are there to basically of them and move was the budget to the same size of the equation by doing that this is very meaningful because when you're just selling planning to without the activation and without the the ssd bad day the connection between the planning to disband as has beer the full blood for into a platform you're able to you're not able to basically keep this give us a profitable but when you're going think about like we are now afraid me the market you're able to do that in a very meaningful matter of every every road also to scrape when we spoke about it we are looking at that that advertisers really interested in that it's increasing the dangers of wrote got this big agencies and advertisers to work with us and i think that
spk_14: will give us a lot of food room to grow together with a movie
spk_4: regarding synergies apart from that is also shifting and growing the trust of them will be advertisers a difference if they're be then to assist them to push more budget to unholy to enjoy from our products around the data and targeting that is very meaningful for them and care to add to that other
spk_31: the value went out by the ago and it into infection by general i feel that they are more become combination with treble examining for glass and it's too big system that we are connected now in the last few months but it's starting to show the foods that we were expecting to see
spk_15: i'd appreciate it thanks to the time and que
spk_4: that expression next question handsome laura martin and from the them they've got headline is and my name and coke can we go back to the ac i data a couple things you said we're really intriguing on you said that other people sort of use their a are capped at way which stuff not a broker dad are you guys gonna actually sell your ac our data and sort of compete with us on the tv is in the eyes at you days are you just gonna use the ac the are dating to give you a platform competitive advantage now let's start with that regular good morning are you in i live on air asia we basically believe very strongly nice yeah we are using jcr for more than five six years now
spk_18: am and now we signed and disagreement with v that we too we look at that a very strategic agreement that your school with the twenty five million dollar in in order to get exclusively for long there and we got axel see with your own de feo five cents
spk_19: they're basically of saudis which is related license until their buffet it in a in a couple of years from now globally and the meaning of that for us it's very a threat as you said most of the people are using it in an interview final donald a dog in the world go them we will enable people to do
spk_0: targeting in order to reach the open web and we will be able to get where of according to the rights of the agreements with i phones to also to sell or to life of these data to tell by the you know get or to make to conduct measurements when we're looking at i sense and we the discussion with them like two years ago
spk_8: there were like number four five and you can look at our preferences me will dreaming to be another opportune up one day last year v that was already number to license was number two in delivering to be any december last year there even became number one for one month in december and it was the most of selling a to in the world basically
spk_4: lee delivering a smoky busy the world he made december twenty twenty two oh we believe that it is a very meaningful events we have their the rightful the start of a couple of feel that we are going to use it for our targeting well going to enable other people to target with down by from a feed media or using our platform and we we are able to license a the data to the party in order to target or doomed to conduct measurement and tested okay i'm and then my second question it he said you had an eric have heard that retention rate that that the increase active customers could you talk about on if you could clarify that like how many the customers to get out and a quarter of the year and who are you gaining when you're gaining new customers are they an auto they're like what kind of tyler's are you on kate yeah getting your customers from thank you very much not from the water is what he meant to say there's basically we see that we are our detention weight is very eyes but not before customers basically reduce the level of spanned the sea of last year and it because of the microeconomics because of the market conditions they're not spending like the used to invest in the past about reducing the volumes though
spk_20: and we keep always adding boy more clients i think that get early call we have you had mentioned in the fourth of how many advertisers we entered i think a around two hundred and something and
spk_4: i will continue but we added a big amount of new life into the system and we're reading them from every we not looking at at their some a vertical away the three going on the after them we are going across the board and other teams in the us and internationally of caused offering all product to to devote the gods and type of advertisers use it of cause we're doing that to they do feet and working with have lived in parallel and where most of our business in the us and we are really going after the other guys of the thought what we call this other titles in the us which ah which are way a of cause they're able to to invest a lot in advertising and just for than others were that about two hundred and thirty three new clients and twenty twenty two
spk_14: thank you very much
spk_20: should thank you
spk_0: and next question comes from thomas doheny france default please go ahead line is open
spk_21: i just town of fun for martelly first i was wondering if you could please provide any color on be growth execution rear and then kind of follow up on that how much visibility the i had for the full year are now compared to the end of last year thanks oh when you're looking at it the very first of all we can look at remarkable grow that regenerated last year
spk_4: will go on prefer be the fifty nine percent just in the fourth quarter and as we all know last it was not their walk in the park in order little the very difficult the from every aspect and we've been able to keep the growth of fair city v when we are looking now we have some privilege that we are reporting lot of the last for we can see luca the abuse i think that were going most and most more than most of the field around city which is really impressive and i think that it's coming from a few elements is coming from a deep the commodity around fifty v product or and other products around targeting that we built over the years truly was your liver a on a great you what about the driven their front and ends my solution which is really helping drive to by consolidated cause them become more efficient and of course our reach the market because of the number of publishes that were working with the citizen front of the growth can he to continue to grow in their twenty twenty two when we're looking at a deal of in a forty one percent going into for a fourth quarter fifty nine percent and we believe the described will continue because i think that our unique position of the market our that that professional level of false as people in operation of people are with other people is providing amazing service to these people that that to they're not as of the though bags at the rate at their continue to come to us with other to the process the thought their campaigns raunchy given we believe that it will grow to give you visibility about his hear about i'll draw the very difficult of course because of their michael economic situation and i think that it's will be
spk_22: irresponsible but we feel that the growth will continue it also the fear in a meaningful minute
spk_6: okay thank them one follow up just curious if you could qualify on top of more about how big the world cup was for forty results
spk_32: it was not massive i think that that's what we were able to demonstrate in the affair in this occasion was them all around our capabilities meanings to to get into any agreements are exclusive agreement with fifa to run their ctv and it
spk_6: that he did adamant with as globally to push the distribution of reader and android tv around millions of users around the world and to an advertisement on that i think that this is a meaningful events and gave us like the cup ability to show us the cup ability to do that is what more is the what know it was not meaningful because of got of course it up in a band of their ear and you saw that that of there was not a strong part of that the yolk december was they're not a strong man like usually does usually does and a second thing is because also i feel that because it happened in dubai and qatar sorry
spk_21: and it was the a if it's created some issues with some advertisers and so on so i think that it was authentic food but each of the really video files to take it a sport events and to run it in a very powerful men men are on suitably connecting all did also fall into anthony sheds a relationship with v die in our lives is it with isis around the globe
spk_11: great thank you
spk_6: our next question comes from eric mac two pacman know see from lake street please go ahead to ended up and
spk_32: yeah i wanted to revisit the guy is in light of of the research so it's definitely a pretty substantial reset on the net revenue the contribution eggs tax we're not look and four hundred million down from the prior four hundred and sixty million sell off about thirteen percent just in the last
spk_6: ninety days and yet you're talking about the core programatic on a performer bases being up about five percent so what can you help a better understand that the puts and takes their yeah
spk_4: i think that when you with that the environment now is very dynamic when we basically have this guidance it was in the beginning of the fault or their last year when we were like cautiously optimistic about the future but what we saw after that is if your son look at appears that basically you for was not a great better than it was not acting like a cure for and december was flat on low compared to usually what happened in december and then also do you see a started and it a bit low i think
spk_21: that was up and is that most of agencies and most of the clients delayed their decision about spending and about investing and it's bullshit take a little bit further so if given your less time to exercise you say demand for us to fall of the second thing is that is a lot of uncertainty so if we look around were and christopher
spk_4: they have to challenges where of the michael economic challenge much needed to face and we are looking at and that many to integrate them will be a smart man or into travel of these two combined i think the the fact that we can grow by five percent like most of our of basically demonstrated and we can keep fit out of divinity is a very meaningful event and i think that there we are doing it because not because again something is meaningful happen but because of the microeconomic for the treasure that basically lowering their level of fair the most of our lives and we don't feel after talking to them that it's going to change dramatically over the of this fun
spk_14: yes and on top of a are you going on top of what offer just mentioned i think that you know when we looking on our peers
spk_21: guidance we didn't see like you know anyone i'm thinking of know the trade it from the equation that is getting like a high he then that one digit increase though i think that our guidance on a roaring the guidance is now in line with on of what the other peers are ninety though most of it
spk_8: mara
spk_0: or technology or
spk_8: growing by i don't know five percent and again and you mention with in our activities our programmatic activities with you i would require activity in our main focus is growing year over year and a perforated they five percent while the legacy
spk_24: non core performance activity decline
spk_4: okay and then i want to cut a new to this story and i want understand the seasonality i know you didn't give specific guidance for kill one for what a normal on the her father combined with imovie what what is a typical seasonal step down from keyboard a key one again i think that's what happened in the luckily you know twenty twenty with the
spk_6: with day merging of the pandemic and twenty twenty one which will the year like that in out of the endemic which for that to read as well kind of them out
spk_8: to mix and she's all the thing that we knew about it and i'll the having said that i think that
spk_21: you know somewhere and they said the to months before i think it will be age one would be forty two percent age to be fifty eight percent something around that historically that was the number like a few years ago but i think that or the similarity in the vicinity of chance because of the public but and their make enough
spk_8: after that there are in the last year or so and you know and like in twenty twenty the pandemic father twenty twenty one we saw live in the second out and them up and down because of their social unrest and and then again and when confronted do with so we saw like a little bit different behavior that we saw years before because
spk_6: a few for that was acting like renege your phone
spk_33: okay my last question on the new brand is it's potential you can fel day to an existing brand for is creating a new brand out of whole cloth
spk_6: the get a breath regarding the brand so
spk_26: the other reason that their dad a few reasons that we want to to conduct of course a rebranding one of them is internal to connect older people to the caused people will feel that are connected with avenue family that our joining and they are part of it and the second thing i think that when integrate the new brand in order to the
spk_27: go on for size to clive to partners and at what we are really offering and of in a different manner without basically using a few brands that sometimes confuse them so i think that this is the major role inside and outside in order to reflect our capabilities outside but also connect the people inside in a better me
spk_0: manner and well we are in this process already and we plan to conclude edition
spk_8: a game that we wouldn't have any baggage from legacy brand it would be something
spk_4: we'll tell you that and okay thank you next question comes from and rebound from jmp security yes please go hiking i had fun great good morning and texture deck my questions i'm a wanted to ask but beat a free it did seem like a tremendous opportunities you guys have i would assume exclusive access to our to as you to be streaming channel in a bar channel can just double click on what that could possibly mean help us understand what it is the timing of it and then just the the are all opportunity though basically if you guys grating channels now streaming channels with content that they bring from from bob from condon father of they created on t v on the volume system and on the oh yeah we go with the operating system and we have extra cbd with them because of the thanks to the the great for the investment that with the of twenty five million dollars for a couple of years for basically it will give us access to more media exclusive manner than a couple of years us canada australia and uk and the meaning of that is that that now been to get your idea of a lot of it's traffic around the globe but when you're looking at that it's will give us like more and more unique exclude an exclusive media that we can basically over to our lives and we are working with them now closely about adopting our technology back in order to operate operated glorious on the platform yes and another just for you to defend because the operating system is the one that you can
spk_6: trawling what they use their are their consumer will see on t v so of course they can control the level of exposure and they're the exact location of where they are fast on him we be shown so they can like put some kind of far of pressure are locations what their that the users in order to to consume their conduct
spk_8: that that was exciting arm and the next laughed about was just the be purchased cadence as we talk about twenty twenty three
spk_6: i'm shares a down this morning how do you guys continue to think about buybacks especially given need the fact years don't generate and and terms of cash flow and and that sick of and cashed out for you to continue to operate with thanks so much
spk_28: so
spk_0: yeah i think of over mentioned in in in the in the as was it something that we are considering of course as you said are fundamentals are still very tong their cash generated were above ah though as long as the surprise and devaluation of the company will make sense for us
spk_4: to keep on and hour adjusting though repurchase plan into a much massive lot of course we are really good up or now we are not like the twenty million dollars ah repurchase on october which is that closed land and of course will take on the fish and in the next week brad thank you guys thank you our last question will come from andrew merrick from raymond james please go ahead go line is open i think you're taking my question the not apology that the the already been answered and bouncing around between a couple of we heard commentary from other players in the state about twenty three being an inflection you're not only in the amount that a bad the by but also the amount of inventory going venable i'm what assumptions are you including in your outlook on the for they say are talking about growth of media right yeah
spk_0: the thing that they usually you union of course these days to have like or their the demand side which means the budget is coming from their plans for that are pushing them for their jerseys or directly with a platform i think that most of the they allow is not about the neither side that thing that we have very big reaching a market though
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