Tremor International's Data Advantage and Growth in the Advertising Industry
2023-07-30
Tremor International, a leading player in the financial industry, held its first quarter earnings call where the CEO and CFO presented the company's progress, results, and strategy. The meeting covered several important topics, with the announcement of new brands being a key highlight.
During the meeting, the company's data capabilities took center stage, as the CEO, Ofer Druker, emphasized their plans to leverage this advantage to enhance their advertising products and generate revenue. Druker highlighted the strength of their technologies and recent acquisitions, such as the tools obtained through the Amobee acquisition and data from VIDAA. He specifically mentioned the effectiveness of ACR data for targeting users and the unique advantage their agreement with Hisense and VIDAA gives them over competitors like LG and Samsung.
One notable aspect discussed was the company's ability to utilize data on other platforms by providing measurements and targeting, while ensuring that the data ties back to their own platform. This approach allows them to encourage other Demand-Side Platforms (DSPs) to buy media on their Supply-Side Platform (SSP) or use their other tools, creating a commercial perspective for the company.
In summary, the deep-dive analysis on this topic would focus on the company's data capabilities, their advantage over competitors, and their strategy to monetize the data by integrating it with other platforms and tools. This analysis provides insights into the company's potential for growth and revenue generation in the advertising industry.
The market outlook for Tremor International appears positive, as the CEO expressed confidence in the growth of their Connected TV (CTV) activity. He highlighted the company's solutions and acquisitions that have strengthened their CTV ecosystem. The CEO believes that the industry is moving towards horizontal integration and an end-to-end solution, which aligns with the company's strategy. Despite challenges faced in the past year, the company has achieved significant milestones and remains optimistic about the future.
The key drivers of the business discussed during the meeting include product development, branding efforts, acquisitions and innovation, and horizontal integration and end-to-end solutions. The company plans to announce new brands, aiming to improve internal team connections, enhance customer understanding of their offerings, and provide better comprehension to the financial markets. They are also focused on end-to-end solutions and horizontal integration as the future direction of the industry.
Looking at the company's outlook for the quarter, Tremor International remains cautiously optimistic. While they experienced weakness in the advertising environment during Q1, there have been encouraging signs of stability, better visibility, and momentum since early March. Stronger performance in April and May has further bolstered their confidence, and they expect this momentum to continue into the second half of 2023. However, the company's adjusted EBITDA and adjusted EBITDA margins were significantly lower in Q1 due to various factors, including the weak environment early in the quarter and ongoing integration of Amobee. They anticipate positive effects on their sales organization once the integration is nearly complete by the end of Q2.
The participants of the call included Billy Eckert - Vice President, Investor Relations; Ofer Druker - Chief Executive Officer; Sagi Niri - Chief Financial Officer; Matt Swanson - RBC Capital Markets Analyst; and Laura Martin - Needham and Company Analyst. The meeting covered various topics, including the company's branding efforts, the announcement of new brands, the potential creation of a new corporate entity, and the company's growth and strategy in the CTV market. The participants provided insights into the company's achievements, integration efforts, and future prospects. Overall, the meeting highlighted the company's confidence in its position in the market and its commitment to an end-to-end solution and horizontal integration.
In conclusion, Tremor International's first quarter earnings call shed light on the company's data capabilities, its advantage over competitors, and its strategy to monetize data by integrating it with other platforms and tools. The company remains optimistic about its position in the market and the growth of its Connected TV ecosystem. With a focus on product development, branding efforts, acquisitions, and horizontal integration, Tremor International is poised for continued success in the financial industry.