AdTheorent Holding Company, Inc. (NASDAQ:ADTH) Q4 2022 Earnings Call Transcript

The audience Builder is directly accessible and usable within the Direct Access framework. And therefore, you can go in a user can go into direct access and create an audience, a predictive audience either for health or some other vertical activated within our platform, not have to pay a third party for an outdated and deficient ID-based audience, but you can build a statistical audience from our data sets or from the customer data that’s right in our platform. So those innovations are all available right from that DA platform. So, we think that there is a learning curve there, and that is why we are reorienting and reengineering the front end so that essentially a relatively new user can get a basic introductory training session in our platform and then be off to the races.

And then again, on top of that, we will continue to provide the best service in the industry. Because at the end of the day, our managed business is only going to grow as well. We think that they complement each other quite nicely. And we’ve seen in the early innings here that from some of our Direct Access customers, we’re actually also getting some managed deals, some of the more custom offerings that we provide and also vice versa. Some of our managed customers are saying, for some of these campaigns, we would like to try to do it ourselves, would you help us train up the team? And the answer is yes. So, we think it’s a great, great way for us to take all the ability that we — all the power that we’ve built into a platform and bring it to market.

John Roy: Thank you for the question.

Operator: We’ll take our final question from Dan Kurnos with the Benchmark Company.

Dan Kurnos: Great. James, obviously, retail media or shopper marketing is sort of a hot topic right now and you talked about it along with some AR tech coming out. So, I’d love to kind of hear your thoughts on how you’re attacking that market. I think you already have had click-to-cart historically. So, I’m curious on how that’s going to evolve. And sort of as a follow-on to the broader commentary you made in your prepared remarks, around the pace of product launch, obviously, health care has some unique facets to it that makes it more targetable for your solution. As we think about other verticals, which you touched on a little bit in your prepared remarks again, just how do we think about your ability to sort of translate into other verticals, what you’ve done in health care? And how aggressive are you going to be given kind of the choppy background that we see right now?

James Lawson: Yes. Thanks a lot for the question. You asked a few. So, if I forget any, please tell me, but I think Rich, the retail media networks. So, we haven’t historically invested in executing the strategic relationships that make the retail media network opportunity imminent as the Trade Desk has done with Walmart Connect. I mean, that’s a fantastic example of the power of the retail media network focus. And I think even though we haven’t focused on that yet, we view it as a very positive thing for our business. It’s good for us because at the end of the day, we have a platform that is capable of being deployed just as the Trade Desk is being used for Walmart Connect. And there will be more than one winner in this area.

There’s not going to be one platform that is used across the entire Internet for activating the CRMs across retail properties. So at the end of the day, we think if there is an opportunity for us there, we’ve begun to test the waters in a number of areas that have been successful, as you mentioned, click-to-cart, — we also have a shopper marketing, the innovation that we rolled out, where we can tie out exposure to incremental sales and show the effectiveness of incremental sales in a single retailer. So we’re doing some interesting things using machine learning and incrementality in shopper marketing and retail. But I think that, that has not been our immediate focus. You asked another question about other verticals — and I think — I’m glad you asked that question.