Sabio Holdings Inc.

Good morning everyone and welcome to the Savio Holdings earnings call for the first quarter of 2023. The financial statements and MD&A have been filed and they can be accessed through the CDAR website. My name is Aideen McDermott, Investors Relations Associate and joining us on our call today we have co-founder and CEO Aziz Rahim Tula and Sajid Premji, Chief Financial Officer. We'll start today's call with Aziz and Sajid's prepared remarks, and after that, they will take questions. Please note that certain statements made today may contain forward-looking information that is subject to both known and unknown risks, uncertainties, and other factors. For a complete description of risks and uncertainties facing the company, please refer to the company's MD&A and other continuous disclosure filings that are also available on the CDAR website. Please also note that all figures discussed today are in US dollars unless otherwise stated. With that, I will hand it over to Aziz.

Thank you, Aideen. Good morning, everyone. Q1 was probably one of our most challenging quarters we've had since becoming a public company. Not only did we have to deal with advertiser delays caused by uncertainty in the macro environment, but also in some cases, requests for additional third-party analytics integrations with Google, which our engineering team did at lightning speed, providing us another unique offering relative to some of our peers. Despite those factors, we were still able to not only deliver strong year-to-year growth, organic top-line growth, but also deliver our Sabia first in being adjusted EBITDA positive for one-third of Q1. As many of you know, we have a seasonal business, but even in our record year last year, we didn't manage to deliver monthly positive EBITDA until Q3 2022. While this doesn't mean we'll be positive adjusted EBITDA from here on out, we do believe that this demonstrates that we have the levers to deliver on our goals of making 2023 the fourth straight year of positive adjusted EBITDA and double digit top line organic growth while continuing to outperform our peers in CTV, OTT, market share growth. Speaking of CTV OTT, the transformation of our business that we started two years ago from one focused on mobile display into one of the fastest growing players in the high growth CTV OTT marketplace continues to provide strong momentum with 63% year-to-year growth, helping us secure historical high amount of dollars from new top 50 US nameplates in Q1. All while continuing to maintain a very healthy renewal rate of our existing brands. Overall, we feel the worst is behind us, and although the recovery in the ad market is slow and uneven, the fact that we have one of the most complete end-to-end tech stacks in the ad-supported streaming space, along with the fact that we have a strong foundation of repeat customers delivering strong organic growth, positions us well in one of the only areas of the market that continues to see overall growth in the ad market. I'm going to now hand it over to Sajid Premji, our CFO, to dig deeper into the numbers. Sajid?

Thanks, Aziz. Despite planning cycle delays and macro volatility that had a pronounced impact on the first two months of the quarter, we were once again able to post double-digit revenue growth for Q1 on the back of a strong turnaround in March. For the three months ended March 31st, 2023, Savio generated 6.5 million US in sales, up 16% from 5.6 million US in the prior year. In further evidence of the stability of our sales model, 79% of sales were generated from repeat customers. The turnaround was led by our growing connected TV and OTT business. Connected TV and OTT sales once again outpaced the competitive growth rates of our peers in the estimated 21% growth rate for the U.S. CTV industry at large. Connected TV and OTT sales grew 63% to 3.8 million U.S. compared to 2.3 million U.S. in the prior year's quarter. For the third straight quarter, connected TV and OTT streaming was our dominant sales category, accounting for 59% of our overall sales mix versus 42% in the prior year. This growth was substantially organic, with the Videlian acquisition contributing approximately 10% of our first quarter CTV OTT sales growth. First quarter mobile display sales were 2.5 million US, down 23% from 3.25 million US in the prior year's period. Aligned with our sales strategy, our legacy mobile display customers continue to shift their spend with Savio from mobile display to higher margin mobile OTT streaming, which is recognized under our CTV and OTT streaming category. On a trillion 12-month basis, the shift from mobile display to connected TV OTT has contributed to a 45% increase in average deal sizes, with CTV OTT as a category representing 61% of our overall sales mix on a trillion 12-month basis. A quarterly adjusted EBITDA loss of US$2.2 million was fully incurred in the first two months of the quarter as labor shortages within our partners contributed to a delayed start to the 2023 planning cycle. In a testament to our ability to quickly adapt our operating infrastructure to changes in market conditions, SABIA was able to quickly implement cost efficiencies both above and below the line. These measures, in addition to the return to significant top-line growth in March, culminated in Southdale delivering positive adjusted EBITDA for the month of March. Digging in deeper, gross margins increased to 62% from 61% in the prior year's quarter, aided by greater use of bd supply, while our closest peer group experienced year-over-year margin compression. As part of our supply path optimization strategy, approximately 70% of our CTV supply came through direct supply integrations. Meanwhile, operating expenses normalized for higher Q4 commissions declined on a sequential basis as our cost efficiency initiatives had an expedited impact, with further returns expected to be realized over the next quarters. While we expect some monthly variability, our ability to post monthly positive adjusted EBITDA at the earliest point in our company's history, despite the infrastructure investments in the billion overhead added since the prior year's period, positions as well for the rest of the year. Consistent with prior years, over 85% of our annual revenues are expected to be generated over the next three quarters. We ended 2022 with 3.3 million U.S. in cash on our balance sheet and 2 million U.S. still available under Atlantic Credit without a bank. We intend to renew the line when the renewal negotiation period commences this summer under bank policy. Early discussions under the intentions to renew have been positive with no renewal concerns communicated. At period end, we had 46.9 million shares outstanding, 4.2 million warrants outstanding, and 3.3 million options in RSUs outstanding, with insiders owning 64% of the company. Now we'll turn things back to Aziz to discuss our 2023 outlook.

Thank you, Sajid. As mentioned earlier, we feel good about the acceleration of our business in the second half of the year, driven primarily through the market share gains in our CTV OTT business. In addition, our expansion of supply path efficiencies provided by our Bedelian business, as Sajan mentioned, having 70% of our CTV OTT supplied directly from EndSource, one of the highest in the industry, gives us additional efficiencies. That combined with momentum and interest in deeper analytics that our AppScience business is providing, provides us a good stable of options as it relates to second half growth. all while maintaining our strong renewal rates in our cost discipline. So we can aim to achieve our fourth straight year of positive adjusted EBITDA, another year of strong top line organic growth. On that note, I'm gonna hand it back to Aideen for any questions. Aideen.

Thanks Aziz and thanks Sajid. We'll now open the call up for Q&A. Analysts have been given speakers permission, so please raise your virtual hand and we will take your questions.

Adrian, you could go ahead and turn on the camera for such an hour.

Yeah, you can go ahead as you turn on your camera.

Great. It says it's not allowing me to. Sorry, I guess camera is not working for some reason. It's alright, let's go and ask question.

OK, we will turn it over first to Nihal Upadhyaya from IA Capital Markets. Nihal, go ahead.

Thanks, Aideen. Thanks guys for taking my questions. I just wanted to ask about the average deal size growth. I know you provided some color last quarter in terms of, you know, annual growth. Is that something you'd be willing to provide for this quarter or at least any information regarding the ACV for the quarter?

Yeah, I can take that one. So our average yield size did increase on a 12-month basis. That's the way that we kind of view the average yield size. It increased 45%. In the quarter itself, it was also double-digit growth. Perfect.

And then can you talk about the expansion in the UK and the European region and what the timeline looks like? what you hope to accomplish within, say, the next quarter or the next year, and then what do you think or when do you think that region will start providing meaningful contribution?

Sorry, what was that question, Neha?

Yeah, can you talk about the expansion in the UK and the European region and then what the timeline looks like in terms of what you hope to accomplish within the next quarter and then the next year? And then finally, when do you think that region starts providing meaningful contribution to the top line?

Yeah, and it literally it's in the early stages of we literally are just starting to understand the market and keep in mind, when you go into a new market, like especially a new region that has all types of additional regulatory requirements, it takes a little while to really, you know, set up our systems, get everything going, make sure we're compliant in all those aspects before we could even start booking deals, which we expect to start happening in the next two or three quarters down the road. I mean, we think by the end of this year, anyhow, that we'll start seeing some revenue coming in from UK, but we don't expect in Europe, we don't expect significant amount of growth this year. We do expect to start seeing some momentum next year. But really, like I said, it's not so much that we don't feel that there's a need there. It's just in the EU, there's different regulatory requirements and um you know setups and so we are literally just being very cautious and making sure we we uh cross all of our uh you know across all the paths in terms of making sure we're we're complaining every way before we do that so to answer your question sorry is towards the end of this year we'll start seeing some revenue um we we expect at the end of next year is when we'll really start uh scaling up uh eu and uk and global markets perfect thank you that helps and maybe maybe one

one last one for me um against a compound question um in regards to app science i was just wondering um that i you know i know you've said previously that platform is completely industry agnostic but what patterns if any are you seeing in terms of interest from particular industries and verticals like has it been random or you know is has there been more interest from a particular industry in working with the app science analytics and then And then can you provide some color on what the percentage was of brands who spend a hundred K or more that had an app science component to their deal?

Yeah, and I think we have that stat in terms of what we're seeing from an app science industry perspective and where we're seeing a lot of interest there. What we're finding is since we have this unique household graph that is as a foundation of mobile IDs that provide a lot more personalized information, especially as relates to diverse audiences, we are finding a lot of interest from agencies and of course brands to help them understand uh validate that they're reaching these audiences effectively now keep in mind 49 of all all uh consumers today under the age of 18 are diverse in the us and that number is growing and so these brands are really interested in figuring out Are we, A, you know, are we reaching the right people that, you know, our platforms are telling us we're reaching, validating that option? And B, you know, help us understand them a little bit better and more. And so where we're seeing a lot of really interest and traction is from the agencies and brands that are now trying to grapple with this diverse audience issue. um element uh within their their marketing spend so uh that's really where we're seeing a lot of really interesting and and some of them in fact we had a situation where one of the agencies involved asked all of their vendors who they use to be integrated with app sign so we're in the process of starting to get integrated with different platforms because it is actually coming out of and this is a major brand that is asking this agency to do this and so we're seeing a lot of great traction there now as it relates to the percentage of um app science deals in sabio uh subject do you have that info i think you can actually kick it back to nihil with that number um it's going to get a bit more Yeah, we'll get back to you on that number. Obviously, it's a fairly, I mean, last quarter, I believe it was 40%, something in that range, but we will get back to you in the current number. But that number continues to grow. And those are, obviously, we're starting to see standalone deals with AppScience, and we're excited about that.

Okay, perfect. Thanks, guys. Thanks for all the color. That helps. I'll pass the line. Thank you, Nihal.

Thanks, Nehal. And next up, we have Gabriel Long from Beacon Securities. Go ahead, Gabe.

Good morning, and thanks for taking my questions. Aziz, can we spend a little time just talking about sort of the demand environment. Just curious if the momentum you saw in March has sort of continued into April and into May. That's the first question. The second question is, you know, as the year-over-year comparisons, I think, on the CT business are going to get increasingly more difficult as we go through the year. I'm just curious, you know, what sort of visibility you have into your customers' expected ad spending performance to give you confidence that you'll be able to grow off that base from last year on the CTV side.

Thanks for the question, Gabe. From a recovery perspective, we're seeing very uneven growth across the months that we saw in Q2. And overall, as I mentioned in my prepared comments, the worst is behind us. Q1 was by far one of the most challenging quarters we've dealt with. Having said that, we do see a little bit of an uneven growth in Q2, but positive relative to Q1. So it's going to be we believe that what's going to happen, Gabe, is that at least for the next quarter or a half, there's going to be a little bit of this unevenness. But we do see a solidification of the business. We're starting to see a lot more confidence. And of course, we have this debt ceiling situation still hanging around or you know over our heads which is causing uh concerns for advertisers as well you know how's that going to impact the economy how's that going to impact the market but we do believe we're seeing an overall certification and a little bit more confidence and we believe that this debt ceiling bid is going to be kind of we're going to pass that fairly soon and that that will continue to provide momentum but we're seeing more positive momentum from an advertiser relates to Q3 and Q4. Q2 was just, you know, it was really uneven all over the place. And then in terms of the businesses relates to CTV, OTT, and then the year to year comparisons, you know, keep in mind the backdrop is that linear tv traditional tv and cable continues to lose uh court it continues to deal with court cutting at an at a ever increasing rate and so in recessionary environments and environments where people are now traveling more uh you know they're they're traveling in historic amounts they're getting out of their house they're doing all these things That's going to be a big issue for traditional TV. And so in that backdrop, we do believe we could still sustain this type of growth rate as relates to CTV OTT growth. And we think there's just a lot of upside. We're in the early innings of this growth opportunity that CTV OTT platform provides. And I'll tell you, the numbers, the most recent cord cutting numbers, which we could share with you separately, speak to that. So we see there's a lot of opportunity still ahead. Sajid Ali- So anything you want to add.

Sajid Ali- I think that was that was well said as these, I think that you know one thing that's worth pointing out as well as that we have to have a great deal of installation compared to a lot of our peers and that's the fact that the majority of our revenues. Sajid Ali- Do come from existing customers, so there is a lot of stickiness and dependability there.

Gotcha. And maybe on a similar note, I think in the second quarter, we've seen the mobile revenues decline over a year-over-year basis. I understand that it's customers shifting their spend to CTV. But generally speaking, how should we think about that mobile revenue line going forward? Do you view it as the ongoing year of your declining business? Do you expect there to be sort of a baseline revenue figure? Just curious your thoughts around that.

You know, we made a strategic decision two years ago and we started actually putting even our comp packages for sales connected to this. We made a strategic decision to basically start shifting away from mobile. And that so so in that same vein, you will see that number. We expect that number to continue to kind of decline because we have so much demand. I mean, when I say demand, there is advertiser appetite. There's a lot of planning going on. I'm not saying everything is, you know. coming in tomorrow in terms of deals closed. But what we're finding is there's just so much interest in CTV OTT, both from a education perspective and a planning perspective, that it's taking a lot of bandwidth. And that really is our focus. And so with that being the focus, we're basically seeding ground on the mobile side to other companies. And we're fine with that because this is a strategic decision to go after this high margin, huge opportunity overall. In terms of an actual aggregate number, we're not sure what that looks like. We certainly can do some modeling and give you some expectations. Keep in mind, when we say mobile, Gabe, some of that mobile spending is sitting in OTT of the CTV OTT portion, over-the-air portion. We do have mobile components, but they're now mobile streaming components relative to mobile display. So that mobile display business in our minds, we're fine with it continuing to kind of shrink. As Sajid even pointed out, and I just mentioned in my comments, 70%, we have supply path optimization now, 70% of our supply for CTV OTT is direct. And that number is continuing to grow, which means that also provides us bigger margins. That's not the case in mobile. So This is a competitive advantage for us because of that Vidillion acquisition we made a little bit more than a year that we really are honing in on in a bigger way.

Thanks for that. Maybe one last question. I know in your preamble, you've talked about some cost optimization initiatives. And I'm curious, where are you looking to sort of optimize on the operating expense side of things? Number one, number two is over the next over the coming few quarters. Conversely, you know, where are you going to prioritize your spending on within the business?

Yeah, so I think to answer your question, Gabe, is that we are looking across all our business lines at cost optimization strategies. We definitely remain focused on the bottom line, and as the numbers have shown in Q1, we have implemented cost efficiency to that effect. And similar to last year, we do expect adjusted EBITDA to improve each quarter in 2023, driven by these cost reduction initiatives and sequential growth in our top end numbers as well, with the majority of our sales still becoming the last half of the year. um going certainly back to your question you know we are looking across our business lines where we can dial back with expenditures as market conditions become more or less transparent and all in all we know we're going to continue to manage expenses closely in 2023 and but still looking to make those those targeted investments with the objective of scaling our spend on our platform in 2023. So I would tell you, Gabe, is that areas where we are seeing an immediate return on our spend in 2023 on the top line growth, we're definitely going to prioritize that this year.

One of the ways also, Gabe, to give you a real life example, over the last year, and I think you could even see this as we mentioned in Q2 of last year, we started really kind of our, you know, in terms of our hiring, we started throttling that back. We started, you know, that was kind of starting to get a little bit more flat. But in that process of what we did when we did the investments, We actually started adding more resources into content marketing relative to going out to events and doing a lot of in-person events, which were very expensive. You know, these are really expensive events that we were doing all the time. And so that was a we really have now started receiving achieving cost savings there. We cut out all these events and we've shifted our marketing kind of, you know, from a contextual perspective. inside analytics-driven marketing capabilities. And that really is one of the examples where efficiencies are starting to take place in our business. And that, you know, and, you know, as even Sajid talked about in the past, despite the fact that our hiring has kind of thrown back even in sales, our revenue per seller is going up. So, you know, even that we're looking at, okay, how do we make sure that not only our sales folks are focused in on, you know, on selling, but we have account management teams that are doing the same. And do we, you know, what resources do we still need? And we're an evolving business and we're constantly looking at all costs within our organization, but we're not going to look at it at the risk of growth. And so we're really still focused on growth and focused on being positive adjusted EBITDA this year.

Gotcha. Thanks for all the feedback and good luck for the rest of the year.

Thanks. Appreciate it, Gabe.

Thanks, Dave. Up next, we have Kiran Sridharan from AH Capital. Go ahead, Kiran.

Hey, morning, guys. Congratulations on the quarter. And I'll start. Can you discuss the growth in Vitellian's inventory and its roster of publishers? I'm just curious how the strategy is evolving around the supply here. And I appreciate any thoughts on CPMs as well and how you've seen the trend expand.

Thank you. Great. Great to have you on the call, Karen. We are really focused in on hooking direct supply. So the strategy is very simply this is when we hook up a direct partner and we can provide and I think we have the most recent list, but we have a lot of great names still in the pipeline. that we're going to integrate directly. But as Saja mentioned, 70% of our supply is directly integrated with that end platform and so or that publisher. And so what's happening there is we're able to take that supply, have efficiencies with that because now we've cut out the middle intermediaries in the process of CTVO and TT Supply. And so now we have that direct connection. We've negotiated to deal directly with these major platforms and publishers. And now we get that inventory coming in, but we also in some cases are able to now sell that inventory to other platforms who do not. And that inventory comes in, it's being used by Savio. That's one aspect of it. But in other cases where now there's other platforms who do not have the capability that we do to integrate directly with the platforms. And so we are now providing inventory to those platforms. And our view, and while the Trade Desk and Magnite have talked about, and I think Pubmatic might have been saying this, that they don't want to supply to DSPs, We're seeing the opposite. We're like, no, no, no, we are going to supply to DSPs. We're not going to only supply to the Sabio DSP directly, but we're going to supply to other DSPs. So we believe there's an opportunity here while everyone is talking about, oh, we're not supplying to anyone else. It's like, no, no, no, we're going to supply to other DSPs. because we know what it was like to not have direct supply capabilities when we first started the company. And so our view is we see that as a huge opportunity, not only for efficiencies on our own campaigns, as you know, we when and I believe the number Trade Desk mentioned is 44 percent of their supply is direct. They have 44% of what they use in their business is direct supply. Ours is 70%. Now, given we're a smaller number, so that's an easier task to achieve. But we see that as a huge opportunity, that we're going to continue to really increase that direct supply number and get efficiencies there. Saj, anything you want to add to that?

No, just to touch on the last part of Karen's question is that we've seen the CPM rates remain stable in Q1, which we're actually pleased to see in this kind of inflationary environment.

That's helpful. Thanks. Now, I think I saw some additions to the headcount in the quarter. I'm just curious where the focus is with these ads and how hiring plans are expected for the rest of the year.

yeah so i think that you know we ended the they did the quarter with 131 full-time employees so not much changed since year-end um you know where we are hiring is lower down in the funnel particularly in our indian operations that supports our u.s campaigns on both the Padillian and the Savvy Lincoln. And so I think that's going to be a common trend that you hear from us is that the hiring is going to be in lower cost jurisdictions as we become more and more efficient. But we are also adding some incremental sales headcount to gear up for 2024 and a huge opportunity that we see next year.

Manoj Mistry- Thanks and, as the last one here now probably the tech analytics industry have been talking about artificial intelligence, most of this year is anything you could share on some years offering today or the product roadmap ahead and i'll leave it there thanks.

Thanks, Kieran. Yeah, you know, and I know AI is all the talk now. And one of the things that people forget about AI is you have to have some sort of data component behind it. Now, of course, you have, you know, various forms of ai ones that scroll through the internet and basically are able to get information that is not validated off of that and that creates some kind of issues in our case what we believe we have a unique advantage in the sense that we have a treasure trove of data that essentially allows us the foundation of it which we've done machine learning on for a number of years And that we have some form of AI there. We do very basic levels of AI, but we do believe there's an opportunity to really kind of expand on that specifically with AppScience and the ability to essentially do a lot more iterative AI where it allows us to really kind of understand. One of the things that we have when we set out to start when we started this company, AppScience was this idea of predictive modeling. and taking it to the next level as AI is the ability to really understand consumer behavior before the consumer understands it. And so that's where artificial intelligence really comes into play with all this mobile data. And now the streaming data, that combination of of treasure trove of data that we have and get access to on a regular basis is really where AI benefits and to help brands understand like, hey, listen, this consumer's not thinking this yet, but in about seven months, this is where they're gonna be. And so that's where the artificial intelligence capability comes in in a bigger way. So we're excited about AI. We do have investments in obviously our engineering data science teams across the US and in India. And we believe there's an opportunity in the coming months to add to that and build some additional capabilities for brands and agencies to also automate a lot of things that they're doing today from an analytics perspective. It's exciting, guys.

Thanks for taking my questions, Olivia, too. Thank you, Kieran.

Thanks, Kieran. And next up, we have Daniel Rosenberg from Paradigm Capital. Go ahead, Daniel.

Thanks good morning, my first question was around what you guys are seeing on the front lines with customers, I was just curious in the spending dynamics. Understanding this year is probably you know everybody's dealing with a macro picture, but do you see yourselves you're clearly gaining market share, but what is the balance for you as you think longer term between. know gaining customer wallet share versus that wallet actually just growing uh with the broader market what's the opportunity as you look at kind of both those things internally uh with customers in the base versus uh new customers being able to log sign on

What we're finding in just an overall marketplace, none of our existing brands, which are the top 50, these are major top 50 brands, no one is telling us there's a cutback. In Q1, as both Sachin and I referenced, there was a delay in spending. So in that instance, what they're saying to us is, look, You know, we are coming in. We're just coming in in later quarters. We're just we know you, you're tried and true. We're confident about your abilities. So we're going to and then in in that same vein, as I mentioned in my remarks, we had a record number of we had a record number of revenue from new nameplates in Q1. and so you know our strategy has been has always been to to basically land and expand to you know we have these major top 50 brands that we are able to close deals with and we're basically still getting a small percent that share wallet is growing but we're still getting a relatively small percentage of that share wallet if you think of brands like toyota and ford and gm and McDonald's. And so, you know, our opportunity is certainly to continue to focus on that because the cost of sale is so much lower by doing that. But at the same, in the same time, there is a gold rush going on in CTV OTT. And so we see that as an expansion opportunity. So to answer your question, Daniel, what we believe is, as Sajid references that, you know, we have a strong revenue renewal rate. And in Q1, the number is, I'm going to pull it up again, sorry.

79% of our sales were in Q1 were from existing nameplates.

And so we believe that's a strategy between 70 and 80%. existing new plates and then add that 30% mix into with new main plates. And if we do that, that will A, keep our cost of sale down because we don't have to go out and actually acquire new customers. And B, we have the opportunity to really kind of organically grow. So that's the mix between 70 and 80% existing customer base. And then the new customers that's somewhere in that range between 30% and a little bit higher. Does that answer your question, Daniel?

Yeah, no, I certainly appreciate the size of those customers. So thanks for that color. Around new opportunities, I also want to ask, you had mentioned politics in the past. Well, you know, obviously early in the cycle, but nonetheless, we start to see headlines. Can you just give an update of what you're seeing there and what you think the opportunity is?

Yeah, about two weeks ago, we hosted a summit actually in DC where we invited major clients out to share for them and ourselves to share thought leadership on CTVOTT. And what we're hearing is that there's obviously, there's a few different races going on, right? There's a first and foremost, the presidential race, which will start having, you'll see some of the primary spend um very targeted in the initial the next few months it will probably start accelerating in q4 uh you know in terms of as we get closer to the primaries and then the presidential money will start rolling in a little bit it'll start rolling in early you know because biden obviously is not going to be challenged a whole lot and so what you're going to have is you're going to have a majority of spending take place in q3 of next year overall but then The other opportunity we have, being California-based, obviously we're Toronto-based and a foundation of LA, is that the Senate race in California, which is going to break all historical records. So we're going to benefit from, certainly we believe, positioned well in the presidential race. positioned well for potentially some revenue coming from the Republican primaries. But really, we also see a huge opportunity with the senators race, which should start kicking off in some capacity at the end of this year. And so we think that we're going to start seeing some traction there. So we're excited across all that. But, you know, keep in mind, our other core other opportunity in our business has been this idea of advocacy, which is, you know, the U.S. Postal Service, you know, getting out and explain people why they need to mail on weekends. We see that as a huge growth opportunity. So although we talk about political advocacy is also another really strong component. And that's really what that conference we put together three weeks ago. We hosted it with both companies that are both in the advocacy and political space. And we feel we feel we're excited about what will happen towards the end of this year and then certainly into next year in a big way. It's going to shatter all records from what we're being told, both the Senate race in California and the presidential race.

Good to hear. It'll be interesting to see how that plays out. My last question was just around the competitive dynamic. I'd love to hear your thoughts on just how you look at, you know, you have some big players in the competition that you go up against and you're able to win. But just any changes in the dynamic? What are the key things that you see as opportunities or challenges? We'd love your take.

Yeah, what we're seeing is we're in a competitive space, but it's really amazing how what we have relative to our competitors, clients are finally starting to see that. And we're in the early stages of overseeing the dealing. We only purchased the dealing a year and four months ago. It last April last year. Last April last year. What we're finding is our opportunity is, A, certainly on the DSP side, we're seeing efficiencies there and we're having some major conversations about upfront deals going into next year. So we're excited about that. And despite the clouds hanging overhead, There's a lot of great conversations there. So we got, for the first time, we're at the table with some major brands talking about longer-term deals and or deals that, you know, for all of next year, the upfront commitment. So there's a record number of conversations going there. Separately on the Vidillion side, we're starting to have conversations with publishers who are saying to us, you know, I've been using these other guys. I've used two or three of the other competitors in your space and no one's really helping me. in the mid-size level, meaning they're not helping them monetize effectively. They're not providing the service that they thought they were going to get. And so we're seeing an opportunity there for the Bedillion business to essentially start providing these kind of capabilities for the mid-level publishers, which then adds to our direct supply, which adds to our Bedillion capabilities, margins on Savio and then Bedillion revenue model there. And then separately, we're seeing a real interest in uptick and interest in using analytics and insights to better understand diverse audiences. So as it relates to the competitive marketplace, our biggest challenge, Daniel, is we're a small company that has a lot of opportunity. And we have to, obviously, we want to continue to be positive, even to focus on that. But we have to really resource usage is our biggest challenge. We see a lot of incredible opportunity just in the marketplace. We just... We're still fairly small, as you know, and the question is, where do we put our investments? And we can't do all. We just see an incredible opportunity in all three, and we're excited about what we can do in the marketplace. We just don't see any limitation right now. Yes, the marketplace and the numbers, maybe not. In Q1, there were some challenges there, but we're just literally like... These businesses are just getting started, and we just see a lot of upside in the competitive marketplace.

Good to hear your optimism. Thanks, Aziz. Thanks, Cedric.

And it's been validated. I mean, I know it sounds like sometimes when I get on these calls, I sound like I'm the biggest cheerleader. But I'll tell you, if everyone's seeing it in the market, I'm here in Detroit today to meet with clients. But we're seeing a lot of momentum everywhere. And I think everyone understands what we have under the hood is special relative to our competitors in the space.

Thanks, Aziz. And thanks, Daniel, for the questions. That looks like that's it for the questions today. So I will just hand it back to Aziz to sign off.

Great. Thank you, Aideen. As I mentioned, and I've reiterated a few times, we feel good about the second half of the year that is going to be really driven by our CTV OTT businesses, which include obviously the Sabio DSP. Chris Winslow, M.D.: : app science analytics and then, of course, the bedillion addition that we made and the combined effect of those is to really continue to help us grow. Chris Winslow, M.D.: : market share in the ctv ott space, while maintaining a strong renewal rate and that really is the recipe for us to win, and you will see those numbers and, of course, as we pointed out to knee hall earlier the. the average deal size continues to grow. And so we feel really good about the year ahead and look forward to demonstrating that in the quarters to come.