Matthew Condon

Matthew Condon from Citizens JMP Securities asked about PubMatic's unique structural assets that differentiate it from other platforms in the new AI-driven advertising landscape, particularly regarding data and unique inventory access.

Answer

Rajeev Goel, Co-Founder and CEO of PubMatic, highlighted several differentiators: deep customer integrations with thousands of publishers, Activate enabling direct buying within their SSP for faster innovation, Agentic OS providing Model Context Protocol (MCP) enabled access, purpose-built AI infrastructure with NVIDIA, and rich first-party data from publishers and 250+ data partners on Connect. He emphasized that this complex ecosystem cannot be easily replicated.

Matthew Condon asked about PubMatic's differentiation with its Activate platform compared to other large SSPs and inquired about the status of the buyer-side sales force build-out.

Answer

Co-Founder and CEO Rajeev Goel highlighted that Activate's differentiation lies in creating a more efficient path for advertisers to improve outcomes with greater transparency and control, simplifying transactions by unifying the ad stack. CFO Steve Pantelick noted that activity on Activate more than doubled in Q2 and that the company sees incremental opportunities to invest in the buyer sales force in the second half of the year by optimizing existing resources rather than adding net new costs.

Matthew Condon from Citizens Bank asked for more details on the incremental product feature investments in Realize and what to expect from a product perspective in 2026. He also sought a breakdown of Realize's growth, specifically how much is derived from existing advertisers increasing budgets versus bringing in new clients.

Answer

Adam Singolda, Founder and CEO, highlighted that the biggest investment and opportunity for Realize is to make it more automatic and simpler for advertisers to succeed, leveraging AI and unique intent data to ensure those who should succeed, do so automatically. Stephen Walker, CFO, noted that while the precise mix is hard to predict, the company generally expects growth to come more from increasing the *number* of scaled advertisers (new clients) initially, with some growth also expected from the average revenue per scaled advertiser (existing clients) over time.

Matthew Condon asked for details on incremental product feature investments in Realize and what to expect from a product perspective in 2026. He also sought a breakdown of Realize's growth, specifically how much comes from existing advertisers increasing budgets versus new client acquisition.

Answer

Adam Singolda, Founder and CEO, highlighted that the biggest investment and opportunity for Realize is to make it more automatic and simpler for advertisers to succeed, leveraging AI and unique intent data. Stephen Walker, CFO, noted that the precise mix of growth from new versus existing advertisers is hard to predict, but generally expects a larger portion of growth to come from increasing the number of scaled advertisers, with some growth in average revenue per scaled advertiser over time.

Matthew Condon of Citizens JMP inquired about the potential gating factors for the ramp-up of the Realize platform into 2026 and asked for the key drivers behind the recent growth in the number of scaled advertisers.

Answer

CEO Adam Singolda explained that Realize's growth depends on capturing performance budgets from the fragmented display ad market and from advertisers seeing diminishing returns on social platforms. CFO Stephen Walker added that the 9% growth in scaled advertisers was driven by strong sales execution, which provides the 'fuel for future growth' as these new clients can be scaled over time.

Matthew Condon of Citizens JMP inquired about the observed impact of Google's AI Overviews on publisher traffic and the strategies Taboola is employing to enhance the breadth and depth of its advertising auction.

Answer

CEO Adam Singolda acknowledged some past impact from search changes on publisher traffic but believes supply is not a concern and that publishers can grow the pie by adopting AI to increase engagement. He stated that the auction depth is being increased by integrating unique data from partners (OEMs, utility apps) and, most significantly, by the Realize platform, which introduces new ad formats and budgets, with the AI assistant Abby enhancing the user experience.

Matthew Condon asked about the specific products and functionalities Fiverr needs to launch to enable more recurring work on its marketplace. He also inquired about the prioritization of share buybacks versus M&A, given the current stock trading levels.

Answer

CEO Micha Kaufman stated that enabling recurring work involves prioritizing trust and quality, upgrading data infrastructure, matching algorithms, and product experiences. He highlighted the importance of documenting and tracking work on the platform to ensure quality and facilitate recurring usage. He also reiterated a disciplined and balanced capital allocation strategy, including investing in growth, utilizing the remaining $67.5 million in buyback authorization, and remaining opportunistic on M&A.

Matthew Condon asked about the products and functionalities needed to enable more recurring work on the marketplace, as mentioned in the shareholder letter. He also inquired about the prioritization of buybacks versus M&A, given the stock's trading position.

Answer

Micha Kaufman (Founder and CEO, Fiverr) explained that enabling recurring work involves upgrading data infrastructure, matching algorithms, and product to prioritize trust, quality, customer satisfaction, and retention, leveraging the platform's ability to track and document work. He reiterated a disciplined and balanced capital allocation strategy, investing in growth while continuing buybacks ($67.5 million remaining authorization) and remaining opportunistic on M&A.

Matthew Condon pointed out the year-over-year deterioration in Marketplace revenue trends in Q2 and asked for an explanation, given the stable macro and AI tailwinds. He also inquired about marketing ROI as the company moves upmarket.

Answer

Ofer Katz, President & CFO, responded that the quarter's performance was in line with expectations and prior guidance, which anticipated the Marketplace being flat to a low-single-digit decline. He stated that a similar trend is predicted for the second half of the year and that marketing ROI also remains within the expected framework.

Matthew Condon asked how Netflix's potential acquisition of Warner Bros. and subsequent content distribution changes might impact Roku's advertising and subscription businesses. He also asked Dan Jedda about the expectation for mid-single-digit OPEX growth and how Roku plans to reinvest if revenue growth exceeds expectations.

Answer

Anthony Wood, Founder and CEO, asserted that Roku's scale (over half of U.S. broadband households, half of U.S. TV streaming) makes it an essential partner for all content owners, regardless of industry consolidation. He believes the streaming sector remains robust, and Roku is well-positioned to help partners. Dan Jedda, CFO and COO, confirmed expectations for mid-single-digit OPEX growth, driven by operational discipline and investment in high-return initiatives, primarily engineering headcount. He noted that declining SBC also helps manage OPEX growth, contributing to improved EBITDA margins and the path to $1 billion in free cash flow by 2028.

Matthew Condon asked about the potential impact of Netflix's pending acquisition of Warner Bros. on Roku's content distribution, advertising, and subscription businesses, and about Roku's future OPEX growth and reinvestment strategy.

Answer

Anthony Wood, Founder and CEO, reiterated Roku's essential partner status due to its scale (over half of U.S. broadband households, half of TV streaming), asserting that this position will remain strong regardless of industry consolidation. Dan Jedda, CFO and COO, confirmed expectations for mid-single-digit OPEX growth, driven by strategic investments in high-return initiatives (primarily engineering headcount) and declining stock-based compensation. He stated that double-digit platform revenue growth and stable gross margins (51-52%) would lead to improved EBITDA margins and a path to $1 billion in free cash flow by 2028.

Matthew Condon asked about the early learnings and cross-sell opportunities from the Friendly TV acquisition, and also inquired about the tools Roku has to mitigate potential net-add headwinds from Walmart's Vizio acquisition.

Answer

CFO Dan Jedda shared that early integrations for Friendly, like adding it to the default home screen apps and live TV search, are progressing well. Founder, Chairman & CEO Anthony Wood addressed the Walmart situation by expressing confidence in continued household growth, citing Roku's powerful brand, superior user experience, and hundreds of millions in annual distribution investments that can be strategically reallocated across retail partners.

Matthew Condon requested an update on home screen monetization efforts, particularly video ads, and asked about the drivers behind device gross margin pressure in Q4 and Q1, questioning if it was due to increased competition.

Answer

CEO Anthony Wood and President of Roku Media Charlie Collier described home screen monetization as a key strategy, including marquee video ads and content recommendations, which are driving engagement and revenue. CFO Dan Jedda explained that weak holiday market sales led to excess inventory and price reductions, impacting device margins in Q4 and into Q1, but expects margins to normalize for the full year.

Matthew Condon of Citizens JMP asked about the potential scale of the exclusive inventory opportunity from the expanded VIDA partnership and the long-term size of the off-platform data licensing business.

Answer

CEO Ofer Druker described the VIDA inventory opportunity from in-stream and on-platform ads as a 'massive amount of impressions' that will ramp through 2026, with more specific forecasts expected early next year. He characterized the data and technology licensing business as a key differentiator and a potentially 'massive' future profit center, driving both direct license fees and deeper platform partnerships.

Asked to identify key partnerships driving growth and for metrics on the adoption of the end-to-end platform, specifically the percentage of DSP buys flowing through the SSP and its future potential.

Answer

The company declined to name specific partnerships, citing its well-diversified business model. Approximately 50% of DSP spend currently goes through their SSP, and they believe this could increase to 60% over the next three years, though it is not directly controlled.

Matthew Condon asked which new partnerships are key drivers for the full-year guidance. He also inquired about the end-to-end platform, specifically the percentage of DSP buys flowing through the SSP and its potential for growth.

Answer

CFO Sagi Niri emphasized that Nexxen is well-diversified and not reliant on any single partnership. He stated that approximately 50% of DSP spend is facilitated through their SSP, a figure he believes could grow to 60% over the next three years, which would contribute to margin expansion. However, he noted this is ultimately determined by algorithms and client choice, not direct control.

Matthew Condon asked for specifics on which new partnerships are key drivers for maintaining the full-year guidance. He also inquired about the current percentage of DSP buys that are fulfilled through Nexxen's SSP and the potential for that end-to-end adoption to grow.

Answer

CFO Sagi Niri emphasized that Nexxen is well-diversified and not reliant on any single partner. On the end-to-end platform, he stated that approximately 50% of DSP spend is currently facilitated through their own exchange. While he believes this could increase to 60% over the next three years as they onboard more inventory, he noted the process is driven by algorithms and client choice, not direct control.

Matthew Condon inquired about the potential for new generative AI products to help Nexxen address the SMB market and asked for the key growth levers for data licensing revenue in 2025.

Answer

CEO Ofer Druker responded that while AI simplifies the platform and could eventually open doors to smaller advertisers, the immediate focus is on enhancing usability and performance for major partners. For data licensing growth, he outlined a strategy focused on winning new business with a clearer message and expanding engagement and cross-selling opportunities (like display and video) within their existing large client base.

Matthew Condon from JPMorgan Chase & Co. asked if the new generative AI products, focused on ease of use, create an opportunity to serve smaller, SMB-type advertisers. He also requested details on the key growth levers for data licensing revenue in 2025.

Answer

CEO Ofer Druker explained that AI will simplify the platform, eventually opening it to smaller advertisers, though the immediate focus is on major partners. He highlighted that AI agents will optimize campaigns across the entire end-to-end stack. For data licensing growth, Ofer Druker cited two main drivers: winning new business with a clearer go-to-market strategy and expanding revenue from the existing client base by increasing engagement and cross-selling different ad formats.

Matthew Condon of Citizens JMP asked how Viant AI increases customer retention and switching costs, and what opportunities exist to build more direct relationships with brands to mitigate agency-switching risk.

Answer

COO Chris Vanderhook explained that Viant AI is designed to lower the barriers for customers switching *to* Viant by removing complexity, thereby attacking incumbent DSPs. CEO Tim Vanderhook stated that the company is actively investing in an enterprise sales team to build direct relationships with advertisers, which will strengthen client-level awareness and help prevent future losses from agency changes.

Matthew Condon inquired about Viant's confidence that advertiser spend pushed into the second half of the year will materialize and asked about the differentiation of Viant's Household ID versus Google's recent adoption of IP addresses.

Answer

COO Chris Vanderhook expressed high confidence in the deferred spend, stating it has already been rescheduled in their system. CEO Tim Vanderhook clarified that Viant's Household ID is a superior, people-based identifier tied to physical postal addresses, unlike Google's solution which uses less reliable digital IP addresses. Chris Vanderhook added that Google still restricts IP address sharing in its AdX exchange, limiting the utility for others.

Matthew Condon asked about Viant's go-to-market strategy for the small and mid-sized business (SMB) opportunity, specifically how the company plans to attract and aggregate these advertising budgets onto its platform.

Answer

COO Chris Vanderhook outlined a strategy focused not on all SMBs, but on a core group of high-spending direct-to-consumer e-commerce companies currently reliant on walled gardens. The approach is to use ViantAI to make the platform, particularly for CTV, exceptionally easy to use and to demonstrate clear, incremental customer acquisition value, thereby attracting budgets away from search and social channels.

Matthew Condon asked if the contextual signal from the IRIS.TV acquisition could be incorporated to enhance Viant's AI bidder. He also inquired about the go-to-market strategy and investment required to attract the long tail of smaller advertisers using ViantAI.

Answer

COO Chris Vanderhook confirmed the IRIS signal will enhance the AI bidder by providing rich data about video content, enabling more precise bidding based on performance. Regarding smaller advertisers, he stated the strategy is to improve accessibility to the open ecosystem for e-commerce and DTC brands through automation, not a large sales force. CEO Tim Vanderhook added that the intuitive ViantAI interface is central to this plan, making programmatic advertising accessible to businesses like a local pizza shop.

Matthew Condon of Citizens JMP asked how the data from improved customer engagement is shaping LegalZoom's future product roadmap, particularly for cross-selling. He also inquired about the specific optimizations being made to the purchase flow to increase the attach rate of additional products and services.

Answer

CEO Jeff Stibel stated that customer engagement data is a primary driver of the product roadmap, citing the 'Concierge' suite as a direct result of realizing many small businesses struggle with compliance. The strategy is to offer a 'Do It For Me' (DIFM) solution where customers pay more to save time. Stibel described a model of testing new DIFM products cost-effectively, then building AI and automation to scale them profitably, indicating that DIFM will become a larger part of the business over time.

Asked about the company's willingness to implement further cost cuts if revenue doesn't improve and requested more details on the revamped go-to-market strategy, specifically around pricing and packaging.

Answer

The company's current focus is on investing for growth rather than more cost-cutting, though they will adjust if necessary. The new strategy involves better packaging of omnichannel offerings and cross-selling between the legacy businesses, which is already showing a positive impact on win rates.

Matthew Condon asked about the status of freelancer fee testing, including how widely it has been rolled out and the plan for the remainder of 2025 and into 2026. He also inquired about the progress of internal AI efficiencies and potential for further cost reductions.

Answer

President and CEO Hayden Brown responded that the variable fee testing is still being fine-tuned and is not yet fully rolled out, but is expected to positively impact both GSV and revenue. Regarding internal AI, she emphasized the goal is to enhance employee effectiveness, citing that 35% of shipped code is AI-generated and customer support is more efficient. She confirmed the impact is reflected in the margin structure and that there is more opportunity ahead.

Matthew Condon asked about the efficiency of consumer marketing, noting that expense growth outpaced proprietary service request growth, and questioned how the company balances pro acquisition efficiency with maintaining sufficient network supply.

Answer

CEO Jeff Kip attributed the marketing dynamic to a mix shift from declining free organic traffic to paid channels, which increases average cost. CFO Andrew Russakoff reiterated that the goal is maximizing aggregate profit, not a specific efficiency ratio. On the supply side, Kip explained that their machine-learning approach to acquisition and the higher capacity of new pros help balance the network effectively.

Matthew Condon asked about the progress in upselling former Moat clients and inquired whether better-than-expected revenue would lead to higher margins or be reinvested back into the business.

Answer

CEO Mark Zagorski explained that upselling Moat clients is a gradual process, noting these wins contributed only one percentage point to first-half growth, indicating significant future runway. CFO Nicola Allais stated that while revenue is strong, the company will maintain its philosophy of reinvesting for top-line growth. She reaffirmed the full-year adjusted EBITDA margin guidance of approximately 32%, which accounts for the dilutive impact of the RockerBox acquisition.

Matthew Condon asked if there is still an opportunity to improve advertising yields on People Inc.'s owned properties through the core Decipher product. He also inquired about the trends in Care.com's enterprise segment, noting its sequential decline.

Answer

People Inc. CEO Neil Vogel confirmed there is still a significant opportunity to improve yields on owned-and-operated properties as Decipher gets smarter and the value of their brands increases. IAC CFO & COO Christopher Halpin addressed Care.com, explaining that the sequential decline in the enterprise segment is due to seasonality, with Q2 typically being the lightest quarter, and that the long-term tailwind for employer-provided backup care remains strong.

Matthew Condon from Citizens JMP asked for a deeper dive into the drivers of digital advertising revenue growth, the specific strategic changes in the Digital Marketing Solutions (DMS) business from both a sales and product perspective, and the current status of affiliate revenue following Google's recent changes.

Answer

CFO Tricia Gosser attributed digital ad growth to increased page views boosting programmatic revenue and the strength of the national USA TODAY Network brand. CEO Mike Reed added that an industry-wide shift back to journalism for its high ROI is also a tailwind. Regarding DMS, Tricia Gosser highlighted product enhancements like AI smart bidding, CRM integration, and a new AI voice agent, while also noting the integration of media and DMS sales teams. Mike Reed stated the affiliate revenue impact is now in the 'rearview mirror,' with the company's focus shifting to larger, higher-value partnership verticals like the AddressUSA deal.

Matthew Condon of Citizens JMP asked for a deeper analysis of the digital advertising revenue growth drivers, specifically regarding formats and product releases. He also inquired about the strategic shifts in the Digital Marketing Solutions (DMS) business from both a sales and product perspective, and requested an update on the status of affiliate revenue following recent changes by Google.

Answer

CFO Trisha Gosser attributed digital advertising growth to consistent page view increases driving programmatic revenue and the strength of the national USA TODAY Network brand attracting larger, brand-safe deals. CEO Mike Reed added that a broader industry trend, highlighted by research from Stagwell, is seeing ad agencies return to journalism platforms for better ROI. Regarding DMS, Trisha Gosser and Mike Reed described product enhancements like AI smart bidding and CRM integration to improve client ROI and stickiness, and a new AI voice agent to help clients follow up on all leads. Mike Reed confirmed that the impact from Google's changes to affiliate revenue is now in the 'rearview mirror,' with the company shifting focus to larger, more lucrative partnership verticals like the AddressUSA deal.

Matthew Condon asked for more color on same-store digital subscription revenue trends, what levers Gannett can pull to attract more digital advertising budgets to its platform, and for an update on the pipeline for real estate and non-strategic asset sales.

Answer

Chief Content Officer Kristin Roberts addressed digital subscriptions, noting that while same-store growth was modest due to non-recurring revenue reversals, the company is focused on reaccelerating growth through local engagement, lifecycle marketing, and new segmented products like Studio IX. CFO Trisha Gosser explained that to attract ad budgets, Gannett is leveraging its first-party data, offering a full product portfolio including DMS, and increasing its focus on high-CPM video content. Ms. Gosser also confirmed that the company is largely through its real estate asset sales but expects a few minor sales this year, with Chairman and CEO Michael Reed adding that substantial free cash flow will be the primary driver of future debt reduction.

Matthew Condon asked about the remaining nonstrategic assets available for sale, the potential revenue from the new Reuters partnership, and the primary levers for driving digital subscriber growth in 2025.

Answer

CFO Douglas E. Horne stated that the company is at the 'tail end' of its real estate pipeline and that the projected $60-$70 million in 2025 asset sales is primarily from the Austin American-Statesman divestiture and some remaining real estate. Chairman and CEO Michael Reed characterized the Reuters opportunity as being in the 'low to mid-single-digit millions' over the next few years. Reed identified personalization of the user experience and a renewed focus on local content as the key levers for accelerating digital subscriber growth.

Matthew Condon of Citizens JMP asked about the specifics of the Microsoft AI partnership, questioning what differentiated the deal from conversations with other AI companies. He also inquired about the drivers of the 203 million monthly unique visitors, the specific impact of the election cycle, and Gannett's strategy for retaining this audience in the future.

Answer

CEO Michael Reed described the Microsoft deal as a narrow, well-defined use of content that provided fair value and serves as a model for future partnerships, emphasizing the long-standing relationship with Microsoft. Regarding audience, Chief Content Officer Kristin Roberts explained that while political events are additive, the foundational audience growth is driven by a data-informed content strategy across various segments, making it sustainable beyond one-off news events like the election.

Matthew Condon asked about the company's success in resurrecting past users, the broader growth opportunity, and the specific product-level drivers behind the recent acceleration in the Reserve business.

Answer

CEO Jennifer Hyman explained that rejoiner rates from past customers are a tremendous source of growth, driven by customer experience improvements. She noted the company has reoriented around growth after years of focusing on profitability. For the Reserve business, Hyman credited the creation of a dedicated cross-functional team in June, which led to significant year-over-year order growth by focusing on inventory availability, user experience, and reinforcing the fit guarantee.

Asked about the goals and expected impact of the Nielsen collaboration, as well as future investment plans and OpEx trends following the Harmony initiative rollout.

Answer

The Nielsen partnership is a long-term strategic move to streamline measurement workflows and reinforce Innovid's market position. Future investments, including for Harmony, are part of the normal R&D budget, and the company will continue to manage costs to leverage its operating model and achieve its long-term profitability targets.

Asked about the drivers behind the acceleration in measurement revenue and the outlook for 2024. Also inquired about what is needed for more SMB budgets to shift to CTV, in the context of the new self-service CTV Composer feature.

Answer

The measurement revenue growth was driven by increases in both the fixed (SaaS) and variable (usage-based) components of its pricing model, as the company adds more customers and new features drive more usage. For SMBs, the company believes platforms like YouTube will see earlier adoption. Innovid's focus remains on large enterprise advertisers who need to run campaigns across multiple CTV 'walled gardens,' as these top advertisers represent the vast majority of TV ad spend.

Speaking on behalf of Andrew Boone, Matthew Condon asked for color on the data sales pipeline and how the acquisition of Envato would impact Shutterstock's data business and its content corpus. He also inquired about the potential cross-selling opportunities created by more than doubling the company's subscriber base with Envato.

Answer

CEO Paul Hennessy stated that while the company doesn't provide specific pipeline details, they are very bullish on the data business due to strong demand and a favorable regulatory environment. He noted that Envato's diverse content library presents a significant opportunity to expand the data business. On cross-selling, Hennessy explained that Envato's offering fits perfectly between Shutterstock's existing products for small and medium-sized customers and that the addition of a large, highly retentive subscriber base is a major asset for future growth.

Matthew Condon, on for Andrew Boone, inquired about the current pipeline for the data sales business and how the acquisition of Envato's diverse content library might enhance this business. He also asked about the potential cross-selling opportunities created by more than doubling Shutterstock's subscriber base with the Envato deal.

Answer

CEO Paul Hennessy stated that while specific pipeline details are not disclosed, there is strong demand for their ethically sourced data, driven by a changing regulatory environment. He emphasized that Envato's diverse and new content types represent a great opportunity to grow the data business. Hennessy also noted significant cross-sell potential, highlighting that Envato's offering fits perfectly between Shutterstock's existing content packs and high-end subscriptions, catering to the small and medium-sized customer segment.