Matt Condon

Matt Condon inquired about PubMatic's unique structural assets that differentiate it from other platforms in the evolving AI-driven advertising landscape, particularly concerning data and access to unique inventory.

Answer

Rajeev Goel, Co-Founder and CEO, highlighted PubMatic's deep customer integrations with thousands of publishers, direct buying capabilities via Activate, early lead with AgenticOS, purpose-built AI infrastructure with NVIDIA, and rich first-party data from 250+ Connect partners. He emphasized the complexity and investment required, beyond simple AI coding.

Matt Condon asked for clarification on the unexpected campaign spend pullbacks late in Q4 2025, particularly related to agency changes, and what gives DoubleVerify confidence in the implied acceleration of revenue growth for Q1 2026. He also inquired about strategies to further accelerate social pre-bid growth and adoption in 2026.

Answer

CFO Nicola Allais explained that Q4's lower growth was due to continued retail sector softness and unanticipated pullbacks from specific customers undergoing ad agency changes. He expressed confidence in Q1 2026 guidance (9% growth) based on current visibility, an uptick from recently launched social and CTV products, and increased vertical diversification away from retail. CEO Mark Zagorski added that social pre-bid is scaling well, with nearly 70 advertisers on Meta Pre-bid, including major brands. He noted that continuous improvements in accuracy and effectiveness of the solution are driving easier uptake and accelerating growth, currently outpacing expectations.

Matt Condon inquired about the reasons for the spend pullback at the end of Q4, specifically regarding agency partnerships, and the confidence in the Q1 guidance and implied revenue growth acceleration. He also asked how DoubleVerify plans to accelerate social pre-bid growth and drive further adoption in 2026.

Answer

Nicola Allais (CFO) explained the Q4 pullback was related to the retail vertical and unexpected additional pullbacks from specific customers undergoing ad agency changes. Mark Zagorski (CEO) added that Q1 guidance of 9% growth is based on current visibility, an uptick from recently launched social and CTV products, and a more diversified mix across verticals, with healthcare and technology performing well. Mark Zagorski (CEO) also stated that social activation is scaling rapidly, with nearly 70 customers on Meta Pre-bid, and that continued product accuracy and effectiveness in eliminating waste will drive easier uptake and accelerate growth, particularly on Meta, currently outpacing expectations.

Matt Condon asked if USA TODAY Co. is observing any impact on programmatic revenue, click-through rates, or traffic from AI Overviews, similar to what some peers in the publishing industry have reported. He also inquired about increased opportunities to implement AI internally for further cost reductions beyond the $100 million in annual savings. Finally, he requested an update on the Google lawsuit, including its timetable and current status.

Answer

Mike Reed, Chairman and CEO, stated that Google search click-throughs remained flat, and AI platforms provide minimal direct traffic, with monetization focused on licensing. He noted that USA TODAY Co. has maintained strong page views by growing traffic from social media and direct engagement. He confirmed an AI task force is exploring internal AI for future cost efficiencies but expressed more excitement about AI's potential for revenue improvement. Regarding the Google lawsuit, Mike Reed updated on the partial summary judgment in October, Google's subsequent motion in January, and anticipated rulings in late spring/summer, with a jury trial expected late 2026 or early 2027. He also mentioned upcoming DOJ remedies ruling and the Texas case trial.

Matt Condon requested an update on the Google lawsuit, including the current status and expected timetable for key milestones.

Answer

Chairman and CEO Mike Reed reported that a partial summary judgment was granted in October, establishing liability on certain claims. Google's subsequent motion for summary judgment in January is expected to be ruled on by late spring or summer, with a favorable outcome anticipated. A jury trial is projected for late 2026 or early 2027, and significant progress, including the DOJ remedies ruling and the Texas case going to trial, is expected in the coming months.

Matt Condon asked about any material changes in top-of-funnel metrics due to the focus on acquiring existing businesses, and observed changes in the competitive landscape and intensity for 2026.

Answer

Jeffrey Stibel, Chairman and Chief Executive Officer, noted early success in growing with their existing customer base and leveraging partners as a significant 'unlock' for acquiring new businesses, with direct marketing opportunities expected in 2026 and beyond. Regarding competition, Stibel stated they haven't seen much change and view many traditional competitors as potential partners, as LegalZoom's human-in-the-loop strategy is unique and not easily replicated by pure-play software providers.

Matt Condon asked about any material changes in top-of-funnel metrics due to LegalZoom's focus on acquiring existing businesses, and observed shifts in the competitive landscape and intensity for 2026.

Answer

Jeffrey Stibel, Chairman and Chief Executive Officer of LegalZoom.com, noted early proof points and growth from targeting their existing customer base and leveraging partner channels for established businesses, with direct marketing being a 2027+ opportunity. Regarding competition, Stibel stated that LegalZoom hasn't observed significant changes and views many traditional competitors as potential partners, given their unique human-in-the-loop strategy that pure-play software providers cannot replicate.

Matt Condon asked for an explanation of the underlying dynamics behind the meaningful increase in leads per service request in Q4, and insights into the acceleration of consumer marketing expense during the same quarter.

Answer

Jeffrey W. Kip (CEO, Angi) clarified that the Q4 consumer marketing expense was consistent with Q2, not a material acceleration, and that the overall increase in marketing as a percentage of revenue throughout the year was due to declining SEO and increased investment in effective paid channels. Andrew Russakoff (CFO, Angi Inc) reiterated that the increase in leads per SR was primarily due to sending additional leads to subscription pros, even when they had reached their contract caps, to maintain a positive homeowner experience.

Matt Condon inquired about the significant increase in leads per service request in Q4, asking for an explanation of the underlying dynamics. He also asked for insights into the acceleration of consumer marketing expense in Q4.

Answer

Andrew Russakoff, CFO of Angi Inc., explained that the increase in leads per service request is due to sending additional leads to subscription pros, even when they've reached their contract caps, to ensure homeowners are connected. Jeffrey W. Kip, CEO, clarified that the consumer marketing expense in Q4, while an acceleration as a percentage of revenue, was consistent with Q2 and represented a decline in total spend. He noted that as SEO declines and Angi leans into effective paid channels, marketing as a percentage of revenue has increased throughout the year.

Matt Condon inquired about existing clients' demand for the enterprise business, seeking signals like test budgets for confidence in the second half of 2026, and the progress of the variable Freelancer fee rollout.

Answer

Erica Gessert, Upwork's Chief Financial Officer, confirmed strong interest from existing enterprise customers, including RFPs for work previously out of contention, indicating a healthy funnel. Hayden Brown, Upwork's President and Chief Executive Officer, expressed excitement about the variable Freelancer fee strategy, noting successful early testing in 2025 and a gradual rollout to more categories starting in Q1 2026.

Matt Condon from Citizens asked for color on existing clients' demand for the enterprise business, including test budgets and other signals, to build confidence for the second half of 2026. He also inquired about the progress of the variable Freelancer fee rollout across the marketplace.

Answer

CFO Erica Gessert expressed satisfaction with the Lifted pipeline, noting interest from both new and existing customers for RFPs and contracts previously out of reach. CEO Hayden Brown confirmed successful early testing of the variable freelancer fee in 2025 and announced a gradual rollout to more categories starting in Q1 2026.

Matt Condon asked about the new data licensing partnership with Yahoo DSP, the progress of the Trade Desk partnership, the potential size of Yahoo's contribution, and the overall growth potential of data licensing for Nexxen. He also inquired about key areas for future M&A, focusing on rounding out the business or adding functionalities.

Answer

CEO Ofer Druker explained that data licensing, including segments for targeting with partners like Trade Desk and Yahoo, is growing and has 100% net revenue. He highlighted the larger opportunity in licensing raw data for measurement and integrating the Discovery tool for data enrichment. For M&A, Ofer Druker stated Nexxen has a strong tech stack (DSP, DMP, SSP) and is not looking to acquire more tech, but rather client bases, verticals, or activities that can be integrated into their existing platform to generate additional revenues.

Matt Condon followed up on Nexxen's M&A strategy, asking about key areas or functionalities the company seeks to round out via smaller M&A transactions.

Answer

Ofer Druker, CEO of Nexxen International, stated that Nexxen possesses all necessary technology (DSP, DMP, SSP). The M&A focus is on acquiring activities, clients, or verticals to integrate into the existing platform for additional revenue, rather than acquiring more technology stacks, given the significant integration work already completed.

Matt Condon from Citizens Financial Group, Inc. asked Barry Diller about the current stage of launching new businesses based on People Inc.'s content and brands, and when these products are expected to be launched.

Answer

Barry Diller, Chairman and Senior Executive of IAC, explained that the 'inversion idea' of creating new businesses from their content and knowledge is a deep, long-term process that started a month or two ago. He sees it as a 'greenfield' opportunity for the 'next forever,' with initial sessions already generating ideas. Neil Vogel, CEO of People Inc., clarified that while the 'real invention' will take time, there is a pipeline of closer-to-core ideas like the People app and My Recipes that will roll out in the coming quarters. Christopher Halpin, COO and CFO of IAC, added that the strength of the brands underpins this opportunity.

Matt Condon asked Barry Diller about the stage of launching new businesses based on People Inc.'s content and brands, and whether these products are expected to be launched in the coming quarters.

Answer

Barry Diller, Chairman and Senior Executive of IAC, described the 'inversion idea' as a long-term 'greenfield' opportunity for inventing new products and businesses from their content and knowledge, which is in its early stages and will take time beyond the next quarter for 'real invention.' Neil Vogel, CEO of People Inc., clarified that a roster of more fundamental, natural ideas like the People app and My Recipes would be rolled out in the coming quarters, ensuring there won't be a 'quiet period.'