Mark Walker : Yeah, absolutely. So I’ll parse this out buy side first, and then I’ll go into sell side. So buy side, we’re still anticipating and projected out the same 10% to 20% growth year-over-year, which has historically been how we performed this going into our third year of being public. As it relates to the sell side, we think two factors that we’re taking into consideration in regards to our projection or pretty much our guidance that we’ve actually given. Number one, we’re expecting the curve to maintain the same trajectory as we have historically in the past. We have no reason to think otherwise. So we’re still maintaining that same curve because that’s how it’s been for the last four years with Q1 being the lowest, Q4 being the highest outside of last year’s implication of what occurred.
What we are seeing is 10% to 20% growth year-over-year as it relates to our sell-side platform this year, and they’re attributed to those two factors. One, our transition off of cookies which is one important factor in regards to how the DSPs and also how the market place is already making moves to that transition. The second being the increase in publishers that we have — that we’ve added and has been a very important part of our growth trajectory. The third being, as Diana pointed out, really the platform change that we made last year and the increase in the capacity that we’re actually able to handle the amount of transactions that we can. So without going too far into the future, if you will, we are anticipating the same level of growth curve and what we’re seeing in Q1 is 10% to 20% above year-over-year, and we’re expecting and anticipating and working towards maintaining that level of growth trajectory to get to our recommended guidance for the year.
Dan Kurnos : Okay. And how should we think about SHE Media, FreeWheel, all these other things that you guys have added since we’ve talked before about getting deeper into video. I know you guys self-serve has been sort of on the table, but not necessarily where you want to go. Just how do we think about kind of new initiatives and some of the announcements that you guys have made recently?
Mark Walker : Yeah. I think you’re really going to start seeing those impact in Q2, Q3 as those are new ones that we are getting in stage and moving forward into monetization. So our team has been highly active in getting new publishers, specifically, like you had said, with SHE Media and also FreeWheel and others that we’re working towards to really look at those monetizations for Q2 and Q3.
Dan Kurnos : One for you, Diana, just to finish up. How do we think about — on this reset, how do we think about margins? Do we get margin expansion this year? How do we think about kind of fixed leverage versus variable spend to kind of drive growth?
Diana Diaz : So I think we’ll be about in the same range on margin by segment. So it’s just a matter of the mix of sell side versus buy side. And we had some hosting costs that we saw in the last three quarters of 2023. Those will continue in the first quarter, but should tail off after that. And from a fixed cost — cost of sales.
Dan Kurnos : Should we be looking at the Q4 margin as sort of representative or the full year margin for ’23 is representative? And then obviously, adjusting that because the sell side will grow — well, actually, I guess, sell side and buy side could grow similar rates this year, but historically, sell side was growing faster.
Diana Diaz : Right. I think that if you look at the full year margins by segment that would be a good indicator of what we’ll see in 2024.
Dan Kurnos : Okay, thanks, guys. Appreciate it.
Mark Walker: Thanks, Dan.
Operator: We’ll take our next question from Michael Kupinski with NOBLE Capital Markets.
Michael Kupinski : Thank you. Thanks for taking my question. I appreciate that. Going back to the cookies, I understand that you indicated that the marketplace is already making moves because of the deprecation of cookies. But it’s also my understanding that Google has only deprecated cookies and 1% of its searches on Chrome in the last quarter. And I was just wondering, as we kind of cycle towards the deprecation and the full implementation of the deprecation of cookies later this year, do you — how do you — I guess I’m just trying to understand how you see the market evolving and how that might impact you as we go, especially in the second half of the year when we start to see the full implementation of what — the deprecation of the cookies from Google?
Mark Walker : No, I think that’s an excellent question. I think cookie deprecation is actually going to open up a host of — I think it’s actually had an impact on two things. I think, one, it has really introduced a significant amount of innovation as it relates into the ad tech space. I think people looking for how to transact for the trade of media for dollars has really been this year and starting at the Q4 of last year has really become a moment of innovation for the industry they probably haven’t seen in the last 10 years. That’s number one. I think number two, even though Google has only deprecated 1% of the cookie, there are other media types that have already seen some level of deprecation. As it relates to Apple, as it relates to some videos, some CTV, I think what you’re going to see now in the future and what we’ve been experiencing is other DSPs have already started changing how they transact off of cookies.
