Laura Martin

Laura Martin questioned why the DSP headwind in Q4 would not materially impact 2026, especially given the unexpected nature of the Q4 reduction.

Answer

Ofer Druker, CEO of Nexxen International, clarified that the DSP did not disappear but adjusted its buying behavior due to SPO strategies. He reiterated Nexxen's efforts to reduce reliance on third-party DSPs by enhancing self-serve capabilities and adding CTV media pillars, which are expected to compensate and drive growth in 2026. Sagi Niri, CFO of Nexxen International, added that the Q4 DSP impact is isolated as they are not factoring a return to previous spending levels for that specific DSP in 2026.

Laura Martin asked about the proportion of Nexxen's total traffic from desktop browsers and if traffic was down in Q3. She also questioned the confidence in the 2026 outlook given the unexpected Q4 DSP headwind and lack of visibility.

Answer

CEO Ofer Druker clarified that the DSP did not disappear but adjusted its buying behavior due to SPO strategies, and Nexxen is mitigating this by enhancing self-service capabilities and leveraging unique CTV technology. He also mentioned shifting focus from display to in-app mobile to counter potential AI effects on browsing traffic.

Laura Martin from Needham & Company questioned the slow 1% YoY growth in Connected TV (CTV) revenue despite the exclusive VIDA partnership and asked about the long-term viability of the open internet ad model.

Answer

CEO Ofer Druker explained that the modest CTV growth reflects an industry-wide supply/demand imbalance affecting CPMs, and framed the VIDA partnership as a long-term investment moving into a commercial scaling phase. He stated the new $35M investment aims to accelerate VIDA's North American footprint. Regarding the open internet, he acknowledged challenges from AI search but highlighted that Nexxen's strategic focus on the less-affected CTV and mobile in-app markets mitigates this risk.

Laura Martin from Needham & Company inquired about the drivers behind the 100% growth in data products, whether this is distinct from VIDAA ACR data, the company's timeline for transitioning from IFRS to U.S. GAAP, and the composition of the 10% of revenue not classified as programmatic.

Answer

CFO Sagi Niri clarified that the data product growth, while large percentage-wise, is from a relatively small base and includes tools like their ID graph. CEO Ofer Druker added that while the data tools are mostly related to ACR data, they prefer to bundle data with media rather than sell it standalone. Sagi Niri also stated the company intends to move to U.S. GAAP "sooner than later" and that the 10% non-programmatic revenue consists of legacy performance activities, mainly influencer advertising.

Laura Martin asked for more detail on the data product that grew over 100%, its relation to VIDAA ACR data, the company's timeline for moving to U.S. GAAP, and the composition of the 10% non-programmatic revenue.

Answer

CFO Sagi Niri and CEO Ofer Druker clarified that the data product revenue growth, while high percentage-wise, is from a small base and primarily relates to standalone ACR data sales, though they prefer to bundle data with media. Sagi Niri also stated that the company intends to adopt U.S. GAAP 'sooner than later' and that the 10% non-programmatic revenue consists of legacy performance activities, mainly influencer advertising.

Laura Martin inquired about Perion's internal use of AI to replace human labor, given ongoing hiring, and sought clarification on the structural versus self-imposed reasons for the web revenue decline, specifically asking for the percentage of the 11% decline attributable to actions taken in February.

Answer

CEO Tal Jacobson explained that Perion is hiring in R&D for AI-driven products and in sales for client expansion, while a new COO focuses on transforming internal operations with AI for efficiency. He noted that 100% of R&D work is now AI-supported. CFO Elad Tzubery specified that approximately 13% of the web revenue decline was due to the company's decision to shut down low-margin businesses, implying that without those actions, web revenue would have increased by roughly 2%.

Laura Martin asked how Perion is utilizing AI internally to potentially replace human roles, given ongoing hiring, and sought clarification on how much of the reported 11% web decline is structural versus attributable to the company's strategic actions taken in February.

Answer

CEO Tal Jacobson explained that hiring focuses on R&D for AI-driven products and sales for new clients, while a new COO is transforming internal operations with AI and automation. He noted 100% of R&D is AI-supported and believes editorial websites (web) will not see significant structural growth. CFO Elad Tzubery clarified that approximately 13% of the 11% web decline was due to the February actions, implying web would have increased by roughly 2% otherwise.

Laura Martin questioned why the cost of revenue grew significantly faster than revenue and asked for details on how Perion is integrating GenAI tools to automate its Perion One platform.

Answer

CFO Elad Tzubery attributed the higher cost of revenue to a business mix shift towards the growing retail media vertical, which requires more analysis and reporting, but noted that automation efforts should improve efficiency in the second half. CEO Tal Jacobson added that the new COO is leading a company-wide initiative to streamline all operations with GenAI, from HR to campaign deployment, to enable growth without proportional headcount increases.

Laura Martin asked for details on the Retail Media vertical, including its channel mix beyond CTV, its success in attracting new SMB clients, and if other similar verticals are emerging. She also inquired about the large language models (LLMs) underpinning Perion One, questioning if the company is diversifying away from OpenAI.

Answer

CEO Tal Jacobson explained that Retail Media is expanding beyond CTV to include audio and especially digital out-of-home to drive traffic to physical stores. He noted that while SMBs are on the future roadmap, the current focus is on large brands. On AI, he confirmed that while they still use OpenAI, they are actively experimenting with other capabilities from Google and open-source models like DeepSeek to optimize for cost and performance without creating high switching costs.

Laura Martin of Needham inquired about the realization of synergies from the Hivestack acquisition, asked whether management was blindsided by Microsoft's strategic pivot, and questioned if the weakness in legacy video and display was related to inventory quality issues.

Answer

CEO Tal Jacobson confirmed Hivestack synergies are working, citing the integration of Undertone's DCO technology which increased available inventory for Hivestack advertisers by 40%. He admitted to being surprised by the Microsoft decision, stating it was an industry-wide change. Jacobson firmly stated the weakness in display is unrelated to the Microsoft issue or inventory quality, attributing it instead to a broader industry shift away from open web inventory.

Laura Martin asked about monetizing Roku's first-party data by licensing it to LLMs, and the prioritization of new revenue streams like auction density, subscription, and shoppable commerce.

Answer

CEO Anthony Wood confirmed Roku's first-party data is a key asset for targeted advertising and personalization, and while licensing to LLMs is being considered, it's not currently active. President of Roku Media Charlie Collier stated all new revenue streams are important, noting shoppable commerce is early but promising, with Roku aiming to be the best platform for TV shopping due to its scale.

Laura Martin asked CEO Anthony Wood at what point Roku's valuable data assets might make it more valuable as part of a larger company. She also questioned the differing deal structures with partners like The Trade Desk and Amazon.

Answer

Founder, Chairman & CEO Anthony Wood affirmed the power of Roku's first-party data but stated the company is focused on growing its standalone business. He explained that all DSP deals are customized to the partner's specific technology and goals, and no deal precludes them from working with others. President of Roku Media Charlie Collier added that this open, interoperable strategy has proven effective and has significant upside.

Laura Martin asked two questions: first, about the rationale for acquiring Frndly given the view that the vMVPD market is transitory, and second, about the logic of not selling Roku's first-party data directly to third parties.

Answer

On Frndly, CEO Anthony Wood positioned it not as a traditional vMVPD but as a popular bundle of paid linear channels that is growing, a trend also seen in FAST channels. CFO Dan Jedda added it will be accretive to adjusted EBITDA. On data, President of Roku Media, Charlie Collier, stated the best use of data is to enhance their own platform's performance for advertisers. CEO Anthony Wood clarified that advertisers using third-party DSPs do get access to Roku's data for targeting within those campaigns.

Laura Martin asked for a detailed update on the subscription business's progress and future potential, and questioned whether the strong political ad spend in Q4 indicates a permanent secular shift from local TV to CTV.

Answer

CFO Dan Jedda highlighted that the subscription business is large and growing, with a focus on both premium and direct-to-consumer subscriptions via Roku Pay. President of Roku Media Charlie Collier addressed political ads, stating that the cycle demonstrated Roku's strength in performance-based, targeted advertising, suggesting a continued shift to CTV is likely.

Laura Martin questioned if Roku is facing CPM pressure from competitors with full-funnel ad solutions and asked how the company is integrating generative AI into its products, particularly its self-service ad platform.

Answer

CEO Anthony Wood and President of Roku Media Charlie Collier responded. Wood asserted that Roku's diversified platform model, which includes distribution, advertising, and unique sponsorships, insulates it from the CPM pressures that affect standalone streaming apps. Collier added that Roku's scale allows it to benefit from market dynamics. Regarding AI, Wood confirmed they are actively exploring generative AI to enhance the Roku Ad Manager, viewing it as a major opportunity to empower small and medium-sized businesses to create TV ads easily.

Laura Martin of Needham & Company requested clarification on the $250 million incremental ad spend pipeline, the expected adoption cadence for Viant AI's various phases, and whether AI-driven savings could work against revenue growth.

Answer

COO Chris Vanderhook confirmed the $250 million pipeline is entirely incremental spend from large US advertisers, with wins starting in 2026. CEO Tim Vanderhook outlined adoption goals, aiming for high adoption of AI Planning, daily use of AI Measurement, and 100% adoption of AI Decisioning within two years of launch. Both executives argued that cost savings drive budget reinvestment and better performance, ultimately increasing total spend on Viant's platform and creating a strategic advantage.

Laura Martin asked about the strategic rationale for the Lockr acquisition, questioning why publishers would share first-party data with a DSP, and also inquired about the Q4 revenue contribution from the IRIS.TV acquisition.

Answer

CEO Tim Vanderhook and COO Chris Vanderhook explained that Lockr is an industry utility designed to reduce integration friction for publishers, allowing them to easily activate their first-party data across the entire programmatic ecosystem, not just with Viant. They positioned it as a tool to help the open internet compete against walled gardens by bringing net new demand. CFO Larry Madden added that IRIS.TV's Q4 revenue contribution was modest, at approximately 1% of the total.

Laura Martin questioned the significant increase in Traffic Acquisition Cost (TAC) relative to revenue, asking about the viability of the fixed-price business model. She also requested a ranking of Viant's primary growth drivers, such as ViantAI, new versus existing clients, and the Direct Access program.

Answer

CFO Lawrence Madden clarified that the revenue and TAC discrepancy was due to gross revenue accounting for a handful of new, high-service customers, which is a standard onboarding practice. CEO Tim Vanderhook added that these clients typically transition to a percent-of-spend model. COO Chris Vanderhook identified the primary growth driver as existing customers scaling their spend, particularly in CTV through the Direct Access program. He noted that strong new customer acquisition, amplified by the attention on ViantAI, is also a significant contributor.

Laura Martin from Needham & Company asked for an update on the Molotov acquisition in France, questioning if the original strategic goal of leveraging its free-streaming expertise had been realized. She also posed a theoretical question about the ideal, competitively advantaged sports streaming experience with unlimited content access.

Answer

CEO David Gandler explained that the Molotov acquisition successfully integrated technology teams, unified the tech stack, and brought in the current CTO. While profitability has been the main priority, Fubo is actively negotiating for French sports rights and plans to roll out its ad technology to Molotov by late 2025 or early 2026. Regarding the ideal service, Gandler emphasized Fubo's focus on a 'super aggregated' model with both standalone and bundled offerings to provide value at various price points in a fragmented market.

Laura Martin questioned the strategy for the shrinking 'Rest of World' segment, the company's use of Gen AI, and the cause of the 17% year-over-year decline in advertising revenue.

Answer

CEO David Gandler explained the 'Rest of World' (Molotov) strategy prioritizes profitability and technology synergies for future international expansion. CFO John Janedis clarified that the ad revenue decline was a direct result of losing ad inventory from the dropped Warner Bros. Discovery and TelevisaUnivision networks, stating that normalized Q1 ad revenue would have been up slightly.

Laura Martin asked if the new 'Z family' multicultural bundle represents an upsell opportunity or a new addressable market, and requested a deeper dive into advertising trends, new ad formats, and CPM pressure for Q4 and 2025.

Answer

CEO David Gandler clarified the bundle is an expansion of their 'super aggregation' strategy to attract customers along the demand curve, not a pivot from sports. CFO John Jenadis added that Q4 ad results were impacted by content portfolio changes but the direct business was up double-digits. He noted healthy sports pricing but some softness in entertainment CPMs, with an improving market tone heading into March.

Laura Martin of Needham & Company asked for the strategic reasoning behind limiting the fubo Free tier to former subscribers and questioned the long-term viability of the virtual MVPD model as sports content moves to direct-to-consumer streaming.

Answer

Co-Founder and CEO David Gandler explained that the fubo Free tier is currently limited to manage the new product and learn from user behavior without disrupting the primary conversion funnel for its paid sports service, which could increase subscriber acquisition costs. He acknowledged it will likely move in front of the paywall eventually. Regarding the vMVPD model, Gandler affirmed its long-term value, stating fubo's goal is to offer a wide range of services, and many consumers will continue to value a bundled, aggregated package for its convenience and breadth of content.

Laura Martin of Needham & Company asked if Amazon could eventually become a larger client than Netflix and sought confirmation that the SMB-focused DSP, Mountain, buys inventory through Magnite.

Answer

CEO Michael Barrett considered it "far fetched" for Amazon to surpass the Netflix opportunity anytime soon but affirmed it is a meaningful relationship. He confirmed that Mountain has been a classic DSP partner for years, buying CTV supply through Magnite's platform.

Asked for clarification on CTV take rates, inquired about the trend of data curation on the SSP side to disintermediate DSPs, and sought confirmation on previous guidance regarding Netflix's potential to become their largest client.

Answer

The key take rate differentiator is not the auction type but whether Magnite brings the demand, which commands a significantly higher rate. The trend of data owners working with SSPs (Curation) is very real, driven by privacy and efficiency, and Magnite is seeing a big bump in this activity. They reiterated that Netflix is expected to be one of, if not the largest, client on a run rate basis exiting 2025.

Laura Martin asked for details on Magnite's Generative AI strategy, questioning its expected benefits and the rationale for increasing on-premise CapEx. She also questioned the overall health of the open internet amid public disputes with The Trade Desk and competition from Amazon.

Answer

CEO Michael Barrett explained that the initial AI tools are designed to increase revenue from existing clients. CFO David Day clarified the ~$60M CapEx increase is for moving CTV functions to on-premise servers for cost efficiency, not for AI. Regarding the open internet, Barrett asserted it is healthy, framing the dispute with The Trade Desk as a difference in vision, not a fundamental conflict. He positioned Amazon as a fast-growing partner and a validation of the open internet's strength.

Laura Martin asked about Magnite's net leverage target after reaching 0.9x and how the company is utilizing generative AI to improve operating leverage.

Answer

CFO David Day explained that after achieving its sub-1x net leverage goal, the company's focus is shifting to managing equity dilution via share repurchases. CEO Michael Barrett added that while the company is exploring generative AI, current cost efficiencies, such as a 30% reduction in DV+ cost per ad request, are driven by machine learning and filtering, with more AI developments to come.

Laura Martin asked about Magnite's capital allocation strategy given its 0.9x net leverage ratio, and inquired about the company's use of generative AI to improve operating leverage and control costs.

Answer

CFO David Day stated that after achieving its sub-1x net leverage goal, the company's focus is shifting to managing equity dilution through share repurchases. CEO Michael Barrett explained that while a task force is exploring generative AI, current cost efficiencies, such as a 30% reduction in DV+ processing costs, are driven by machine learning and filtering. He noted that true GenAI adoption is a work in progress with more updates to come.

Laura Martin from Needham & Company challenged the 2% growth in average revenue per scaled advertiser, asked about the long-term viability of the open web amid changes in generative AI search, and questioned the capital allocation strategy of prioritizing share buybacks over repaying debt.

Answer

CFO Stephen Walker clarified that the 2% growth metric is diluted by new advertisers who start at lower spending levels and is not a 'same-store' figure. CEO Adam Singolda addressed the open web concerns, stating Taboola has minimal direct search exposure (around 5%) and sees an opportunity for publishers to leverage on-site LLMs. Regarding capital allocation, Mr. Walker explained they use their credit facility to maintain a roughly cash-neutral position, allowing them to aggressively repurchase shares, which they view as a highly compelling use of capital.

Laura Martin from Needham & Company asked about the potential impact of DOJ remedies against Google on Taboola, feedback on the Realize platform following recent industry events, and whether any specific verticals have shown weakness due to recent tariff issues.

Answer

CEO Adam Singolda stated that a more privacy-focused web without cookies benefits scaled platforms with first-party data like Taboola, and any Google breakup could be an opportunity. He noted positive feedback on Realize, especially its CPC pricing for display ads, which is attracting new clients. CFO Stephen Walker added that tariffs have had a ~1% impact, mainly on Chinese advertisers targeting the U.S., which is factored into the current guidance.

Laura Martin asked about the competitive threat from Amazon's new media traffic payments and whether Taboola is strategically limited by its mobile device focus, especially as CTV aims to become full-funnel.

Answer

CEO Adam Singolda positioned Taboola as a solution for the "open web" outside of walled gardens like Amazon, viewing such moves as opportunities. He differentiated Taboola's performance focus from the branding-centric nature of CTV, arguing that performance advertisers need dedicated solutions, positioning Taboola to own the performance space outside of search, social, and in-app gaming.

Laura Martin of Needham & Company asked about long-term traffic goals for Taboola News, the company's revenue exposure to China amid potential tariff risks, and the marketing strategy for raising awareness of the new AI tool, Abby, among advertisers.

Answer

CEO Adam Singolda explained that the goal for Taboola News is to become a double-digit source of traffic for publishers, positioning it as a key distribution channel alongside search and social. He also detailed that the AI tool Abby simplifies the complex advertiser onboarding process, with a long-term vision to act as an AI account manager. CFO Stephen Walker clarified that China represents a low single-digit percentage of revenue (3-4%), with the portion at risk from potential U.S. tariffs being even smaller, around 1-2%.

Laura Martin from Needham & Company questioned the rationale for remaining in the core media business given the high growth in AI data licensing and inquired about the associated cost increases from this strategic pivot.

Answer

Clint Stinchcomb, President, CEO & Director, explained that the core media and AI licensing businesses are synergistic, as the global content acquisition for streaming services directly feeds the library for AI training. He emphasized that the company's lean, rev-share-based content acquisition model and efficient 42-person team prevent significant cost increases, with only minor rises in storage and delivery costs expected.

Laura Martin of Needham & Company asked for an update on the performance and strategy for CuriosityStream's FAST channels and ad-driven businesses. She also inquired about how content licensing contracts with technology companies for AI training differ from traditional media licensing agreements.

Answer

CEO Clint Stinchcomb stated that the large volume of newly acquired content is set to boost the FAST and AVOD businesses, with new launches planned and strong performance from existing U.S.-Hispanic channels. Regarding AI licensing deals, he highlighted key differences from traditional agreements: the volume of content is orders of magnitude larger, and the deals are often structured as large, one-time tranches. Stinchcomb emphasized that building strong relationships by delivering quality content at scale is crucial for securing repeat business. He also anticipates new AI-related content rights will be created in the future.

Laura Martin of Needham & Company asked for specifics on how generative AI could lower costs, whether the current market environment makes it a good time to sell the company, and why Q4 guidance isn't higher given the expansion of ad-supported assets.

Answer

Executive Clint Stinchcomb detailed that AI can reduce costs in customer service, video editing, and content languaging, and also presents new licensing opportunities with large language models. On M&A, he stated the company is in a position of strength and would consider a transaction if it's in the best interest of shareholders. He explained that Q4 guidance is tempered due to the lumpiness and revenue recognition timing of large content licensing deals, despite expected growth in advertising revenue.

Laura Martin from Needham & Company asked where MNTN's new customer spending is coming from, given strong growth at Meta and Google. She also inquired about the mix of performance metrics customers use (e.g., sales vs. site visits) and the competitive exposure to Amazon.

Answer

COO Chris Innes clarified that Performance TV revenue grew 35% and that over 80% of customers use return on ad spend (ROAS) as their key metric, tracking direct sales. CEO Mark Douglas explained it's not a zero-sum game, as customers use MNTN alongside other platforms, with MNTN capturing about 15% of their wallet share. He positioned MNTN as distinct from Amazon, as MNTN's DTC clients drive purchases on their own sites, and Amazon's ad business is focused on its own inventory.

Laura Martin of Needham & Company asked a series of questions regarding the sources of the projected 15% cost savings from 'the machine,' the potential timing and barriers for a Marketing Cloud spin-off, and the pros and cons of government work, including its impact on margins and resource allocation.

Answer

Chairman and CEO Mark Penn addressed the questions, explaining that 'the machine' will simplify mid-level tasks, condensing the labor stack for greater efficiency. Regarding a spin-off, he stated it is 'a ways off,' pending significant revenue growth and product development. On government work, Penn noted that while it involves more paperwork, the contracts are often multi-year, providing stability, and margins are comparable to corporate work due to their larger scale.

Laura Martin asked if DoubleVerify's product set is still too narrow to meet the needs of agencies consolidating vendors, even after recent acquisitions. She also questioned if now is the right time to raise prices on CTV verification, given that its impression volume has doubled as a share of the total.

Answer

CEO Mark Zagorski argued that DV's platform now covers the key advertiser needs of safety, optimization, and outcomes measurement, positioning it well for vendor consolidation. Regarding CTV pricing, he acknowledged the volume growth and stated that as DV gets closer to providing more granular, program-level data, the opportunity to increase prices will grow, but he made no commitment on timing.

Laura Martin from Needham & Company, LLC asked if Reddit is using open-source AI models and whether the rise of these models threatens its data licensing revenue stream, which is currently focused on proprietary models like Google's and OpenAI's.

Answer

CEO Steve Huffman confirmed that Reddit uses a mix of commercial, open-source, and self-made AI models, viewing the commoditization of the technology as a benefit. He stated that open-source models do not threaten the licensing business because all foundation models, open or not, require a continuous supply of fresh, up-to-date human-generated data to remain relevant. Reddit provides this unique, ongoing stream of authentic human experience and conversation, which AI cannot replicate.

Laura Martin asked if The Trade Desk's rapid growth, which is 2-3x faster than peers, could reach a tipping point where it harms the open internet ecosystem it depends on for trading partners.

Answer

CEO Jeff Green dismissed this concern, highlighting that TTD currently represents just over 1% of the estimated $1 trillion global advertising market, leaving 99% of the pie to pursue. He stated the biggest impediment to growth is an inefficient supply chain, not a lack of partners. He reiterated that TTD's focus is on making the ecosystem more efficient by partnering with companies that add more value than they extract, which ultimately strengthens the open internet against walled gardens.

Asked for confirmation on serving ads into Amazon Prime Video and questioned how the Harmony product, perceived as sell-side focused, aligns with the strategy of upselling to buy-side clients.

Answer

Innovid confirmed it serves ads into Amazon Prime Video and other walled gardens due to its neutral position. The Harmony initiative is designed to benefit both buy-side and sell-side clients by improving efficiency (SPO) and optimizing ad delivery (frequency management), creating a win-win for the entire ecosystem.

Asked about why non-CTV video impressions grew faster than CTV impressions, whether the Harmony product is part of a bundling strategy, how its pricing compares to the core product, and when it is expected to become a meaningful revenue contributor.

Answer

The faster growth in non-CTV video impressions is attributed to easier year-over-year comparisons, as those segments were more volatile previously, while CTV has shown consistent growth. The Harmony initiative acts as a comprehensive wrapper that connects and optimizes all of Innovid's products and integrates with the broader ecosystem. Its pricing is a fixed CPM model, similar to ad serving, to maintain neutrality. Harmony is not expected to contribute meaningfully to revenue in 2024 but is anticipated to have a significant impact in 2025.