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

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I think that more to our strategy is that the best way to drive performance is to be laser-focused on a brand’s specific business objectives and marketing challenges. And we’ve invested in the data to drive our vertical solutions. We talked about it in health. We also augmented our big request data that we have available for creating models from 200 to 1,000. We can now leverage 1,000 data characteristics to score impressions. Many of those are relevant to different verticals, not relevant to other verticals. So, we think that our audience builder interface is a very, very viable near-term way for us to create a much more substantive vertical-specific approach across a number of verticals. We’re going to roll out the industry’s most powerful self-service health platform in 2023.

We’re delivering all these benefits now and a managed capacity. But this year, the industry will have the ability to research through our incredibly vast data sets from hospital data, insurance data, pharmacy data to create incredibly deep statistical understandings of what condition sufferers look like from a demographic and other data perspective, not tied back to an individual. And I think when you can speak that language and you understand HIPAA and the NAI code and the privacy rules that are uniquely relevant to health care and you know that the KPIs that they’re trying to drive, you have a more compelling offer than when you’re just trying to sell types that connect supply and demand in the media world. And the same argument applies to travel, hospitality.

We had a good year in that vertical, and we have a number of ideas for how we can take that to the next level using our capabilities. And the same goes for other verticals, but we’re also focused. We’re less than 300 people, as I mentioned. So, we’re trying to be focused on the biggest near-term opportunities. But I hope I answered your questions.

Dan Kurnos: Yes, I think you’ve covered everything. Thanks, James. Appreciate it.

James Lawson: Thank you, Dan.

Operator: And that concludes the question-and-answer session. I would like to turn the call back over to CEO, James Lawson, for any additional or closing comments.

James Lawson: Thank you very much. Thank you for joining us today. As we wrap up the call, I just want to emphasize that despite challenging market conditions, we continue to see strong customer demand, and we have never been more bullish about the future of our business. In 2022, innovation expanded our technological lead over other DSPs, the launch of our Direct Access business increases our addressable customer base and as a business line that performs well even in difficult macro conditions. Across both businesses, we have a unique value proposition that is perfectly suited to today’s privacy for trends, and we have proven we can deliver strong double digit growth in areas of investment, like CTV and health. We have compelling innovations launching in 2023 and our strong balance sheet and cash flow will enable us to continue self-funding this investment while still delivering strong profitability.

This will further expand our technological lead and enable us to capture a bigger and growing share of the enormous opportunities ahead when the environment normalizes. And large commercial partnerships will arise from these efforts. We appreciate the trust and support of our shareholders and our lean and focused team is committed to driving meaningful results and creating value for shareholders. Once again, thank you for your participation, and we look forward to updating you on the progress in the months ahead.

Operator: And that concludes today’s presentation. Thank you for your participation, and you may now disconnect.+

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