Jason Kreyer

Jason Kreyer asked about the strategy for expanding the OneZeta initiative across the existing base of 567 customers to drive multi-use case adoption.

Answer

CEO David Steinberg explained that they are leveraging internal case studies from successful OneZeta clients, which demonstrate higher ROI and NPS, to create a clear roadmap for other customers. He noted that a specialized team is driving this adoption, with the long-term goal of converting every client to the OneZeta model.

Jason Kreyer of Craig-Hallum sought clarification on the 'pronounced macro uncertainty' mentioned for Q2 and asked about the go-to-market differences between independent agencies and holding companies, including potential impacts on margins and cash flow.

Answer

CEO David Steinberg clarified that Zeta is not currently seeing any internal turbulence, client pauses, or departures, and the conservatism is a precautionary measure. He explained that independent agency deals resemble large enterprise contracts with better DSOs and margins, avoiding the cash flow headwinds sometimes seen with holding companies. CFO Chris Greiner highlighted the record 60% free cash flow conversion in Q1, demonstrating their ability to manage cash flow effectively despite agency growth.

Jason Kreyer of Craig-Hallum Capital Group asked about the strategy to increase wallet share with large customers from the current average of around $2 million to potentially $20 million or more, and what specific factors are driving customers to expand their business with Zeta.

Answer

CEO David Steinberg explained the strategy is to grow wallet share from 1% to 2% of their scaled customers' total marketing spend, noting some clients are already above 5%. CFO Chris Greiner highlighted cohort data showing customers on the platform for over three years spend an average of $2.6 million, demonstrating a clear growth path. Steinberg emphasized that Zeta's AI drives both efficiency and superior revenue growth, compelling customers to shift budgets from competitors.

Jason Kreyer from Craig-Hallum Capital Group asked if the recent success in political campaigns could be translated to broader advocacy spending. He also inquired if the working capital headwind on free cash flow from agency payment cycles has troughed.

Answer

CEO David Steinberg confirmed a 'halo effect' from political work, as campaign staff move into government or corporate roles, creating new relationships. CFO Christopher Greiner noted that the cash flow headwind from agency growth is expected to continue, as the opportunity with both large holdcos and independent agencies is still in its early days.

Jason Kreyer of Craig-Hallum asked if the success in political campaigns could translate into a 'halo effect' for broader advocacy spend, and whether the free cash flow conversion headwind from agency payment cycles has likely bottomed out.

Answer

CEO David Steinberg confirmed a halo effect exists as campaign personnel move into government or other enterprises. CFO Christopher Greiner noted that the working capital headwind from agency growth is expected to continue due to rapid expansion and industry payment cycles, clarifying it's a timing issue, not a credit risk.

Jason Kreyer inquired about the impact of carrier rebating strategies on performance marketing budgets and EverQuote's absorption capacity. He also asked about the Q4 guide's assumptions for year-end budget flush and its effect on VMM.

Answer

Jayme Mendal (CEO, EverQuote) stated that rebating strategies haven't impacted carrier interactions, as carriers are primarily focused on growth. Joseph Sanborn (CFO, EverQuote) noted that the Q4 guide assumes carriers are pulling forward growth investment, which can modestly pressure VMM due to competition and holiday advertising, though less than new traffic channel investments.

Jason Kreyer of Craig-Hallum Capital Group LLC asked about the level of competition for leads, its potential pressure on Variable Marketing Margin (VMM), and the likelihood of a year-end budget flush from carriers.

Answer

CEO Jayme Mendal acknowledged increased competitive pressure but stated the company is managing it well, citing 25% VMD growth and a sequential VMM increase. Regarding a budget flush, Mendal noted that while carriers should have room, no specific indications have been received. CFO Joseph Sanborn added this phenomenon is more common with public companies.

Jason Kreyer inquired about the drivers for the guided step-up in Variable Marketing Margin (VMM), the quantifiable impact of TCPA/1:1 consent rules in Q1, and when AI/ML investments are expected to benefit VMM rates.

Answer

Executive Joseph Sanborn explained that Q1 VMM was temporarily impacted by the one-to-one consent dynamics early in the quarter but improved as the quarter progressed, supporting the higher Q2 guidance. He reiterated a full-year VMM outlook in the high 20% range. Executive Jayme Mendal added that AI/ML benefits VMM through both operational efficiency, such as needing fewer staff for traffic management, and improved bidding precision from their ML platform, which helps preserve and expand margins.

Jason Kreyer asked for a bifurcated outlook between the local agent and direct-to-consumer markets, and whether external factors like increased media owner investment could create a tailwind for VMM.

Answer

CEO Jayme Mendal noted a convergence in growth mindset between direct and agent-based carriers and expects healthy growth from both channels. He also explained that while changes in the traffic landscape can be a positive, the company's current view is for VMM to remain in the high 20s due to a focus on quality.

Jason Kreyer questioned the recent pressure on Variable Marketing Margin (VMM) and the outlook for this metric. He also asked for insights from the company's testing of the upcoming FCC rule changes.

Answer

CFO Joseph Sanborn explained that VMM margin pressure was expected as the market normalized, but strong execution and bidding technology kept it strong in Q3. He anticipates modest pressure in Q4 and early 2025 due to FCC changes, with stabilization mid-year. CEO Jayme Mendal shared that testing confirmed the FCC rule will lead to fewer but higher-converting leads, justifying higher prices. He expressed confidence in their transition plan and ability to emerge in a stronger competitive position.

Jason Kreyer of Craig-Hallum Capital Group LLC inquired about the progress of deals in the company's growing pipeline, the basis for management's confidence in second-half acceleration, and which vertical faces the most pressure to modernize.

Answer

CEO Rick Mills explained that while major pipeline deals are progressing slowly, he anticipates announcements within the calendar year. He attributed the confidence in back-half acceleration to the imminent installation of previously announced QSR wins, which were delayed by on-site construction issues. Mills identified the QSR drive-thru vertical as facing the most pressure to adopt digital solutions due to its significant impact on throughput and revenue, followed by the emerging in-store retail media networks.

Jason Kreyer of Craig-Hallum Capital Group LLC asked for details on the potential benefits from the Google antitrust case and whether Nexxen plans to increase investment in its SSP to capture market share.

Answer

CFO Sagi Niri stated that while the extent is unknown, Nexxen will inevitably gain from any remedies as it would open up previously inaccessible inventory, but this potential upside is not factored into guidance. He confirmed the company continuously invests in its SSP. CEO Ofer Druker added that the timeline for any changes is uncertain, so the primary focus remains on organic execution to win business.

Jason Kreyer asked for more detail on the macroeconomic commentary for Q2, including vertical-specific trends, and questioned if the reiterated full-year guidance, despite a strong Q1 EBITDA beat, was due to conservatism or planned AI investments.

Answer

CFO Sagi Niri explained that while some softness was seen in April due to geopolitical uncertainty, Nexxen's diversification across verticals provides stability. He noted the Q1 EBITDA beat resulted from strong top-line performance, a reversal of doubtful allowance, margin expansion, and a deliberately slower pace of hiring amid market uncertainty, confirming a cautious stance on the full-year guidance.

Jason Kreyer inquired about the macroeconomic environment in Q2, asking for details on vertical-specific strengths or weaknesses. He also asked if the decision to reiterate full-year guidance, despite a strong Q1 EBITDA beat, was due to conservatism or planned investments in AI.

Answer

Sagi Niri, CFO, explained that while there was some softness in April due to geopolitical uncertainty, Nexxen's diversification across many verticals provides a buffer. He noted the Q1 EBITDA outperformance was driven by several factors: exceeding top-line revenue targets, a reversal of a doubtful debt allowance, better margin utilization, and a deliberately slower pace of hiring amid market uncertainty. He confirmed the company is remaining cautious with its full-year EBITDA guidance.

Jason Kreyer from Craig-Hallum Capital Group LLC asked for commentary on the bookings and pipeline supporting the second-half growth forecast, which products are benefiting from AI, and the company's balance sheet priorities.

Answer

CEO Gary Nugent confirmed that bookings momentum and revenue pacing support the guidance, citing visibility across subscription, consulting, and transactional revenues. He identified audience experience and data analysis as the primary areas benefiting from AI. CFO Dan Norick stated that second-half balance sheet priorities are focused on deleveraging and building cash reserves.

Jason Kreyer of Craig-Hallum Capital Group LLC asked for commentary on the bookings and pipeline that support the H2 growth forecast, which products are seeing near-term benefits from AI, and the company's balance sheet priorities for the second half.

Answer

CEO Gary Nugent confirmed that bookings momentum and revenue pacing support the guidance, citing visibility across subscription, project, and transactional revenues. He identified audience experience (via a proprietary LLM) and client value (via AI-enhanced intent data) as key areas benefiting from AI. CFO Dan Norick added that the primary balance sheet priorities for H2 are deleveraging and building cash reserves.

Jason Kreyer asked for 'green shoots' or early signs of success from the business combination, such as improved demand or cross-sell wins in specific segments. He also inquired about profitability trends through the first five months of the year and asked how the AI opportunity is manifesting today and how it might evolve over the next year.

Answer

CEO Gary Nugent identified the repositioning of Netline as a specific success and highlighted a broader trend of 'branded demand,' where customers integrate brand and demand activities, playing to the combined company's strengths. CFO Dan Noreck noted that profitability is trending with revenue, with sequential improvement expected from Q1 to Q2. Regarding AI, Nugent described it as a growing market opportunity and a tool for internal efficiency, with many use cases already in production to improve editorial, research, and go-to-market functions.

Jason Kreyer of Craig-Hallum Capital Group LLC asked for 'green shoots' or early signs of success from the business combination, such as improved demand or cross-sell opportunities. He also inquired about profitability trends through the first five months of the year and how the AI opportunity is manifesting today versus how it might evolve over the next year.

Answer

CEO Gary Nugent identified the successful repositioning of Netline and growing customer interest in integrated 'branded demand' solutions as key 'green shoots.' On AI, he explained it currently manifests as both a large market opportunity to sell into and a tool for significant internal efficiency gains, with many use cases already in production. CFO Dan Norick added that profitability tracks with revenue, expecting high incremental margins with the sequential growth from Q1 to Q2, but did not provide specific five-month figures.

Jason Kreyer from Craig-Hallum Capital Group LLC asked for more detail on the 'subdued market' conditions, the basis for confidence in a stronger second half, and any early cross-selling successes.

Answer

CEO Gary Nugent described the market as a continuation of the 2024 pattern, without significant improvement or deterioration. He stated that confidence for H2 2025 stems from internal investments in a new go-to-market model and product strategy, which will leverage the combined company's scale to win larger customers. Nugent also noted both tactical and strategic cross-selling successes, including the ability to submit larger proposals to clients, thereby increasing average deal sizes.

Jason Kreyer from Craig-Hallum Capital Group LLC inquired about the specifics of the 'subdued market,' the basis for confidence in a second-half recovery, and any early successes with cross-selling opportunities.

Answer

CEO Gary Nugent described the 'subdued market' as a continuation of the patterns seen in 2024, without significant improvement or deterioration. He stated that confidence in a back-half recovery stems from internal investments, a new go-to-market model, and an enhanced product roadmap. Nugent confirmed tactical cross-selling successes and noted the company is beginning to put larger, strategic proposals in front of major customers.

Jason Kreyer of Craig-Hallum Capital Group LLC inquired about the monetization opportunity for the complete Viant AI suite and asked for an update on the three customers who had previously paused campaigns.

Answer

CEO Tim Vanderhook stated that the primary monetization opportunity for the full AI suite is expanding down-market to the millions of smaller advertisers currently served by walled gardens. COO Chris Vanderhook confirmed that the Q3 guidance does not assume the three previously paused advertisers will resume spending and that the market has been otherwise stable regarding tariff-related pauses.

Jason Kreyer inquired about the scaling of ViantAI in 2025, focusing on customer onboarding, potential fees, and its expected impact on wallet share. He also asked if the delta between revenue and contribution ex-TAC growth signals a strong new customer pipeline.

Answer

CEO Tim Vanderhook explained that ViantAI is expected to drive significant wallet share gains and net new customer wins by dramatically improving agency workflow and media planning efficiency. CFO Larry Madden confirmed the revenue and contribution ex-TAC delta is a temporary effect of onboarding larger clients under percentage-of-spend models, which requires gross accounting treatment during the initial high-service period, indicating a strong pipeline.

Jason Kreyer inquired about the acquisition of IRIS.TV, asking for more detail on how it helps Viant create an alternative to walled gardens and about the potential interoperability between the IRIS_ID and Viant's Household ID.

Answer

COO Chris Vanderhook explained that the IRIS_ID provides deep contextual relevance by analyzing video content, enabling ad performance boosts similar to walled gardens and allowing publishers to create superior ad products. CEO Tim Vanderhook added that the IRIS_ID, which provides data about content, and the Viant Household ID, which provides data about the household, will be used in combination to create powerful, enhanced targeting capabilities.

Asked about the recent changes to ad volume, the future strategy for ad loads, and the extent to which advertisers were involved in the new platform's development and their feedback post-launch.

Answer

The company is currently prioritizing user experience and experimenting with new ad formats in new surfaces (like alerts and faves) rather than simply increasing ad load in the core feed. They believe driving more user engagement is the best way to increase ad inventory long-term. Management confirmed they consulted with CMOs who supported the user-first approach and will now collaborate more closely with advertisers to define new ad formats.

Asked about how monetization will change with NEXT beyond traditional ad impressions and for an update on the programmatic advertising rollout, including its timing relative to NEXT.

Answer

Monetization with NEXT will evolve in three ways: increased ad supply from higher engagement, new ad surfaces like the alerts section, and long-term opportunities via the AI agent for local commerce. The programmatic ad rollout is proceeding in parallel with NEXT development and is expected to contribute to growth later in the year.

Inquired about the progress of integrating third-party publisher content and asked for more details on the spending reduction by large advertisers.

Answer

Nirav Tolia stated they have secured thousands of publisher partnerships and the key differentiator is the community discussion around the content. Matt Anderson explained the large advertiser issue is partly due to a need for programmatic buying options, which they are working to address.

Jason Kreyer of Craig-Hallum Capital Group LLC asked for more clarity on the volatility between Q2 and Q3, specifically regarding delayed consumer electronics deals and the current state of the advertising market. He also inquired about the balance between direct sales and new partnerships for monetizing the ad platform.

Answer

CFO Robert Andersen addressed the deal delays, stating that near-term uncertainty made customers hesitant to commit to longer-term agreements. CEO Jon Kirchner explained the ad strategy involves a combination of direct sales for high-value inventory like homepage units and leveraging programmatic partners to build scale and mitigate the challenging ad environment while the user base grows.

Jason Kreyer of Craig-Hallum Capital Group LLC inquired about the dynamics of TiVo OS device shipments, including the reasons for delays, confidence in meeting year-end and 2025 unit targets, and any early insights into monetization trends.

Answer

Jon Kirchner, CEO, expressed confidence in reaching the 2 million unit goal by year-end and the 7 million unit goal by the end of 2025, despite some partner-driven timing shifts pushing volume later into the year. He noted that while monetization revenue is not yet material due to the current footprint size, user engagement is encouraging, and the necessary components are in place to monetize effectively as the platform scales.

Jason Kreyer of Craig-Hallum Capital Group LLC asked why platform companies that historically monetized internally are now partnering with Magnite and inquired about the progress of the Netflix integration.

Answer

CEO Michael Barrett explained that platforms are realizing they under-monetize by not using third-party demand and that advertisers prefer programmatic channels. Regarding Netflix, he described it as an "incredible partnership" and reiterated that Netflix could become one of Magnite's largest clients on a run-rate basis by year-end.

Jason Kreyer asked for context on the apparent slowdown in the Q1 Connected TV (CTV) growth guidance after a strong Q4, and inquired about Magnite's role and the expected timing for bringing Small and Medium-sized Business (SMB) advertising budgets to the CTV platform.

Answer

CFO David Day explained that Q1 is typically a seasonal low point for year-over-year CTV growth and noted a strong rebound in the DV+ business. CEO Michael Barrett added that the CTV guidance is market-representative. Regarding SMBs, Barrett described it as an early-stage journey for advertisers to adapt to CTV metrics, but emphasized the industry-wide push to expand the advertiser base. He positioned Magnite as a crucial SSP providing global supply access, uniquely advantaged by its programmatic mediation layer with top streamers.

Jason Kreyer asked for an update on the evolution of direct connections in both DV+ and CTV, and inquired about the adoption and early success of curated audiences.

Answer

CEO Michael Barrett explained that in DV+, direct connections have stabilized into a two-pipe strategy, while in CTV, bespoke connections mean Magnite sees little economic loss. He noted that UID success does not cut Magnite out. On curation, he stated revenue has grown over 100% YoY as the industry shifts toward sell-side audience aggregation, driven by signal loss and the approaching deprecation of third-party cookies.

Jason Kreyer asked for an update on the long-term evolution of direct connections in both DV+ and CTV, and inquired about where Magnite is seeing early success and publisher adoption with curated audiences.

Answer

CEO Michael Barrett explained that in DV+, direct connections have stabilized, with significant spend still flowing through unified auctions. In CTV, direct connections are bespoke, and Magnite often remains integral, minimizing economic impact. On curation, he noted that publisher adoption is rapidly increasing as the end of third-party cookies approaches, and Magnite's ability to aggregate niche audiences at scale represents a significant and encouraging growth opportunity.

Jason Kreyer of Craig-Hallum Capital Group asked management to frame the opportunity in the government sector and what it could mean for Stagwell in the coming years.

Answer

Chairman and CEO Mark Penn explained that Stagwell's increased scale now qualifies it for major government contracts, an area it couldn't previously access. Citing his experience at WPP, he suggested government work could eventually represent 10-15% of the business. He described it as a 'very considerable opportunity' with the first wins trickling in and several other pitches in final stages.

Jason Kreyer of Craig-Hallum Capital Group LLC asked about the new financial flexibility and capital allocation opportunities now that Thryv is past its 'pinch point.' He also requested more detail on the growing client appetite for the Marketing Center and which new products are driving engagement.

Answer

Chairman & CEO Joe Walsh stated that after years of focusing solely on product investment and debt repayment, the company can now consider new sales and marketing investments and share buybacks, calling the latter 'very much on the table.' CFO Paul Rouse reiterated that deleveraging remains a priority. Walsh added that the Marketing Center, combined with lead-generation tools, has been a major success by helping clients measure advertising ROI.

Jason Kreyer asked which product suite would resonate most in a challenging macro environment given recent sales motion changes. He also sought more detail on the decision to lower the full-year SaaS revenue guidance despite not seeing current macro pressure.

Answer

President Grant Freeman explained that in the current 'Goldilocks' environment, where there is fear of a future slowdown, customers are highly receptive to growth-oriented products like Marketing Center. CEO Joe Walsh clarified that the guidance reduction was a prudent and cautious measure based on general market uncertainty and media headlines, not on any specific negative trends observed in the business.

Jason Kreyer inquired about the early progress of the Keap cross-sell strategy and the process for targeting larger businesses, including any changes to the sales cycle or evidence of success.

Answer

CEO Joe Walsh explained that the Keap cross-sell process is in its early stages but is underway, with Thryv's Marketing Center being offered to Keap customers needing lead generation and Keap's automation being offered to Thryv customers to better manage leads. He clarified that "larger businesses" means moving from 3-employee to 8-employee firms, where the key demand is for more powerful reporting, a need addressed by the new Reporting Center.

Jason Kreyer asked for more detail on the Keap automations and their benefits for SMB customers, and inquired about the portion of Thryv's current SaaS customer base that would be a good fit for a cross-sell.

Answer

CEO Joe Walsh explained that Keap's automations extend beyond marketing to service operations, sales, and recruiting, targeting larger SMBs with around $750k+ in revenue. He stated that a 'not small group' of Thryv's 96,000 subscribers are potential targets, which would serve as an upsell path and help prevent customer churn to higher-end platforms. This aligns with Thryv's strategy to move upmarket from solopreneurs to businesses with 15-20 employees.

Jason Kreyer questioned whether the sales cycle elongation observed late in Q4 persisted into Q1 and asked about the potential opportunities or risks from a competitor's acquisition by an agency.

Answer

CEO Scott Howe confirmed that deals that slipped from Q4 were closed in the first few weeks of Q1. CFO Lauren Dillard added that the guidance midpoint assumes similar sales conversion rates, while the low end factors in a potential material slowdown. Regarding the competitor acquisition, Scott Howe viewed it as a net opportunity, noting that clients are often wary of concentrating their technology and data with their media buyers, reinforcing LiveRamp's position as a neutral partner.

Jason Kreyer asked about the potential duration of the current sales momentum and whether it could lead to better growth exiting Q4 into fiscal 2026.

Answer

CEO Scott Howe responded that while new client wins de-risk future performance, the nature of a SaaS model means the full impact of Q3's success will be more visible in the second half of the next fiscal year. He expressed confidence in the durability of the momentum, citing the early-stage opportunities in data collaboration, commerce media, and CTV, where clients have significant room to expand their use cases.

Jason Kreyer asked about the drivers behind the strong acceleration in subscription revenue and for more detail on the fiscal 2026 margin outlook.

Answer

CFO Lauren Dillard explained that subscription revenue outperformance was driven by a near-record renewal rate, low contraction, and some one-time usage activity. For the FY26 margin outlook, she cited offshoring initiatives, a careful review of the cost structure for efficiencies, and expected leverage in P&E and G&A as key drivers for expansion.

Jason Kreyer asked about the progress of cross-selling opportunities with customers acquired from Oracle and whether the expected contribution from these clients has changed.

Answer

CEO Lisa Utzschneider expressed satisfaction with the integration of former Oracle clients, highlighting a 70%+ close rate and strong product adoption across all business lines. She noted that these clients have shown high stickiness and that former Grapeshot clients, in particular, are adopting IAS's Context Control product at a higher rate than other accounts.

Jason Kreyer asked for more detail on the recent ramp in publisher growth, specifically which Publica products are resonating with clients and driving the resurgence.

Answer

CEO Lisa Utzschneider attributed the strong 30% growth in the publisher segment in Q4 to new Publica product features. She specified that these features are designed to increase bidding competition within ad auctions, which is driving scaled adoption among publishers. She also credited the new Publica CRO for bringing fresh ideas and strengthening the client-product feedback loop.

Jason Kreyer asked for advertiser feedback on the new Meta pre-bid optimization product and its opportunity size versus existing post-bid tools. He also inquired about the opportunity presented by the IAS Curation launch within Google Ad Manager (GAM).

Answer

CEO Lisa Utzschneider reported 'very positive feedback' on the Meta pre-bid product and estimated the pre-bid social opportunity is twice the size of the post-bid measurement market. Regarding GAM, she explained that the IAS Curation launch allows brands to use IAS's contextual data to consolidate bidding on high-quality inventory, calling it a key innovation in their long-standing partnership with Google.

Jason Kreyer asked for details on the reinsurance renewal process, specifically how Porch secured better terms, and requested a breakdown of reciprocal written premium growth between rate increases and new policy acquisition.

Answer

Executive Matt Ehrlichman explained that the successful reinsurance renewal, which lowered costs and risk, was due to the carrier's strong historical performance and differentiated data, which was shared with over 40 reinsurance partners. Executive Matthew Neagle noted that while they don't break out the specific drivers of premium growth, it's fueled by both strategic price increases, like the 16% in Texas, and significant momentum in new business premium, which doubled year-over-year.

Jason Kreyer of Craig-Hallum Capital Group LLC asked about the go-to-market strategy for growing policies in force once the reciprocal is active, including geographic focus and the use of Home Factors data to find attractive risks. He also asked about the long-term stability of the planned 20% commission and fee take rate.

Answer

COO Matthew Neagle detailed the growth strategy, which involves expanding within Texas and 21 other states, recruiting more agents with new performance-based commission structures, and leveraging Home Factors data to target lower-risk homebuyers. CEO Matt Ehrlichman added that the 20% take rate is a strong starting point that will drive significant profitability, with potential opportunities for it to increase in the future.

Jason Kreyer of Craig-Hallum Capital Group inquired about recent market volatility, whether economic uncertainty could boost demand for the Proximic solution, and the specific drivers behind the record TV currency adoption in Q4.

Answer

CEO Jonathan Carpenter stated that comScore carried strong momentum from Q4 into 2025 and has not seen significant macroeconomic pressures, though Q1 is seasonally the lowest for ad spend. He affirmed that market uncertainty, along with privacy regulations and signal loss, creates a favorable environment for the Proximic solution. Carpenter attributed the record Q4 currency adoption to a combination of broad client demand for measurement innovation and comScore's focused success in signing new multiyear contracts with major agency holding companies.

Jason Kreyer inquired about further investment opportunities in multi-location Services beyond the leads API and the potential long-term scale of that business. He also asked for specifics on how recent AI feature launches have tangibly benefited Yelp's operations.

Answer

COO Jed Nachman explained that Yelp is investing in both product and go-to-market resources for multi-location services, acknowledging it's a longer sales cycle but has significant headroom. CEO Jeremy Stoppelman detailed that AI benefits are seen across the business, with Yelp Assistant being the most impactful consumer feature, driving a lift in project submissions, alongside improved ad matching and operational efficiencies.

Jason Kreyer inquired about the key learnings from preparing for the now-stayed TCPA regulations and asked for an update on whether media supply constraints in the auto insurance market are beginning to ease.

Answer

CEO Doug Valenti explained that while preparing for TCPA was disruptive, the company learned a lot from testing new consumer contact approaches that will be used to improve the business. He also confirmed that media supply is catching up to demand as media companies shift focus back to auto insurance, and he does not expect a significant supply/demand mismatch to be a constraint going forward.

Jason Kreyer inquired about the key drivers behind the recent acceleration in the insurance business, asking if it was due to more carriers participating or larger budgets from existing ones. He also asked for details on the strategy to increase media supply and the potential margin opportunity associated with scaling both owned-and-operated properties and partner media.

Answer

CEO Doug Valenti explained that the growth is driven by a much broader footprint of clients spending at significantly greater scale, indicating a new stage of market development. He detailed that increasing media supply involves ramping up both partner channels and owned-and-operated properties. This includes aggressive SEM campaigns and leveraging a recent acquisition to expand in display, native, and social channels, all of which are expected to be accretive to margins as supply catches up with demand.

Jason Kreyer from Craig-Hallum Capital Group LLC asked for clarification on the contrast between Q3's strong billings and the guided step-down in Q4 growth. He also requested an update on customer adoption and receptivity to the CPE pricing model.

Answer

CFO Alexis DeSieno attributed the Q4 guidance weakness to lapping several large accounts that churned in Q4 2023, clarifying that underlying advertiser spending is still growing. She added that while over-delivery has improved, ongoing under-delivery continues to suppress billings. CEO Amit Gupta noted that the transition to engagement-based pricing is progressing well, with strong adoption from new advertisers.