Quotient Technology Inc.

Good afternoon, and thank you for attending today's Quotient's first quarter 2022 earnings call. My name is Sam, and I'll be the operator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you'd like to ask a question, please press star one on your telephone keypad. At this time, I'd now like to turn the call over to our host, Marla Sims, Vice President of Investor Relations. Marla, you may proceed.

Thank you, Operator. Good afternoon and welcome to our first quarter 2022 earnings call. With me on the call today are our CEO, Steven Boll, our incoming CEO, Matt Krepsik, our interim CFO, John Kellerman, and our incoming CFO, Yanniv Khan. The company's stockholder letter has been posted on the IR section of our corporate website, investors.quotient.com, alongside our press release and earnings presentation. Before we begin, please note that during this call, you will hear forward-looking statements including the guidance we will be providing for our second quarter and full year 2022. These forward-looking statements are based on information available to you and the good faiths beliefs of our management team as of the time of this call and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. These forward-looking statements and the related risks and uncertainties are set forth in the earnings presentation slides located in our investor relations site. Additional information about factors that could potentially impact our financial results can be found in our stockholders' letter issued today and the risk factors identified in our annual report on Form 10-K, filed with the SEC on March 1, 2022, as amended by Form 10-K-A, Amendment Number 1, filed with the SEC on April 29, 2022, and on our future filings with the SEC. We disclaim any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise. Please note that operating expenses, gross margins, and net loss financial measures discussed today are on a non-GAAP basis, each having been adjusted for the corresponding GAAP measure to exclude certain expenses. A reconciliation between GAAP and non-GAAP measures can be found in the financial results section of the stockholder's letter issued today and in the earnings presentation slides posted on the company's website. Further, I would like to remind you that the company, its directors, and certain of its executive officers are participants in the solicitation of proxies from the company's stockholders in connection with the company's 2022 annual meeting. The company intends to file definitive proxy materials for the meeting in due course. Stockholders of the company are strongly encouraged to read the company's definitive proxy statement, the accompanying proxy card, and all of the documents filed with the SEC carefully and in their entirety as they contain important information. Information regarding the identity of company's participants and their direct or indirect interest by security holdings or otherwise will be set forth in the definitive proxy statement and other materials filed by the company with the SEC, which can be found for free through the company's website in the section Investors or through the SEC's website at www.sec.gov. We will not comment on the proxy contest with Engage Capital on this call. With that, I will now turn it over to Stephen. Stephen?

Thank you, Marla. Hello, everyone, and welcome to our Q1 2022 earnings call. This will be my last time leading Quotient's earnings calls as we execute on an orderly leadership transition to Matt Krepsik, who, as you know, will become Quotient's CEO by year end. I am confident that the company and its shareholders will be in good hands going forward. I will talk a bit more about Matt, his accomplishments at Quotient today, and the impressive team he has already started assembling in a few minutes. Let me first start by briefly discussing a few highlights about last quarter and where we are positioned as a business. We are off to a good start in 2022, meeting or exceeding our guidance targets in revenue, non-GAAP gross profit, and adjusted EBITDA. In Q1, we delivered $78 million in revenue and $32 million in non-GAAP gross profit, both at the high end of our initial guidance, and negative $7 million in adjusted EBITDA. As previously indicated, we have now renegotiated the majority of our remaining contracts such that going forward, we do not expect to call out any material changes to our gross to net accounting adjustments, which negatively impact revenue but have no impact on gross profit or adjusted EBITDA. I am proud of the progress we have made in our transformation and our incredible team's unwavering dedication, focus on execution, and commitment to client service. While there is more work to be done, we believe we have laid a strong foundation, and I couldn't be more excited for Quotient's future. It is from this position of strength that Matt Krepsik will be taking the reins as CEO. Matt's appointment as CEO is the result of a nearly year-long deliberate succession planning process led by our board of directors. Matt is an ad tech and marketing veteran, and since joining Quotient over a year ago as chief analytics officer, and more recently Chief Technology Officer, he has been instrumental in shaping Quotient's strategy, defining our product roadmap, extending our partnership network, and recruiting senior-level talent who will drive the company forward from here. Matt came to Quotient from Nielsen Holdings, where he served for more than 15 years in various executive roles. At Nielsen, Matt led attribution, media planning and activation products, most recently as Senior Vice President and General Manager of Outcome Products. Matt's other positions at Nielsen included Global Head of Analytics Products, Executive Director of Analytics Asia Pacific, Middle East and Africa, and Vice President, Analytics North America. He also had an integral role in Nielsen's strategic review process, which culminated in the sale of his NielsenIQ business to Advent International for $2.7 billion. Matt is the right person to lead Quotient, and I am confident this will continue to be a smooth transition. I am also looking forward to Unique Con joining us as our new CFO. Unique brings over 25 years of global ad tech, finance, and strategic operating experience to the role and will be an important partner to Matt and the leadership team as Quotient enters the next stage of company's growth. You need joints quotient from Nielsen IQ, where he held several executive level positions. Nielsen IQ is formerly Nielsen's global consumer business and a world leading marketing intelligence enterprise. During his 12 year tenure with Nielsen, he served in a variety of financial planning, commercial and product strategy and business development roles, including president of the global consumer insights business from 2020 to present. Chief Financial Officer of Nielsen Global Connect, now Nielsen IQ, and Chief Financial Officer of Nielsen Global Operations and Technology. I have the utmost faith in Matt and his team to execute on Quotient's strategy to achieve sustainable, profitable growth and drive shareholder value creation. And now I'll turn it over to Yaniv to say a few words before handing it over to Matt to take us through Quotient's go-forward growth strategy.