Nicola Allais: Yes. I think that’s exactly right, Omar. The onboarding process for large enterprise clients would start on the Measurement side. And so that’s where you’re going to see the initial impact of their ramp, and that will leave the Activation and the upsell opportunity for the premium price product for the second phase.
Omar Dessouky: Okay. Great. And then as you look into calendar ’24, which geography will drive most of the growth in the Activation revenues? And can you give us some sense of whether international is — if there’s any market structure difference in international that makes it a less high-growth market than the U.S.?
Nicola Allais: I mean the international markets are, for us, this is a high-growth area just because the opportunities for us to go after Greenfield opportunities is still greater, right? There’s just more opportunities outside of the U.S. than they are in the U.S. And so if you look at our growth for the rest of the world is 43% in the fourth quarter of ’23. So it is spread across both EMEA and APAC. There was a bit of a disjointed growth trajectory for those two areas, the year prior to last one when the macro was a different environment. But right now, we’re seeing growth in all areas of rest of the world.
Omar Dessouky: So I was just trying to hone in specifically on Activation. So your comments apply to that segment as well?
Nicola Allais: Yes, I think actually, the patterns don’t really change too much between Measurement and Activation in terms of the opportunity that we have internationally.
Operator: The next question comes from the line of Laura Martin with Needham & Company.
Laura Martin: Great. I have two. So following up on your Scibids answer that you said 40% of your new customers are testing Scibids. What I like best about that acquisition as they got paid as a percent of revenue where it’s historically DoubleVerify has always gotten paid on a fixed fee per 1,000 impressions. My question is, as these new customers are adopting Scibids or at least testing it, are they still getting paid as a percent of revenue? So does that sort of lend revenue diversification to your business model over time? I guess that’s my question.
Mark Zagorski: Okay. Great hearing from you, Laura. Yes, they are still pursuing a percentage of media model. And I like the way you framed it as kind of revenue-type diversification. We’ve always thought ourselves as transactional SaaS, which is fixed and has its pluses, but as you know, in this space, when CPMs go up, it can also have a potential negative as well. So having them as a percentage of revenue, I think, is an interesting opportunity for us. We get to take advantage of some of those increased CPMs that we may see down the road.
Laura Martin: Okay. Fantastic news. And then my second question is on, one of the things I see going on in, for these big brands, like you call on the biggest 100 brands. And one of the things I see them doing is trying to tie connected television all the way down to performance like full funnel. And I think that’s what we see in Amazon’s AVOD addition to its streaming tier and Walmart’s acquisition of VIZIO. So my question to you is as these big brands that are your core customers, do more to drive their, all of their advertising in the performance, even what’s historically been top of funnel rather than just CTM based. Is that good for you or is that bad for you, DoubleVerify?
Mark Zagorski: It’s a great question. I don’t think, I think — I want to say it’s neutral. And by that, if we look at where we’ve come from all the other platforms we’re on, so social, mobile, open web. All of those have performance capabilities and performance-type advertisers and brand type advertisers. CTV will eventually start to look at that in the same way as you noted, connecting a closed-loop aspect of it. And I think that our core value prop in those places is very similar to the core value prop that we’ll see in CTV, which is ensuring that, that spend, whether it’s evaluated on a closed-loop batch basis or on some type of brand metric is secure, fraud-free, viewable and brand safe. So I think it doesn’t really change the value prop.
And the cool thing for us is since we are integrated into all the top 10 CTV platforms at the app level. If there’s an opportunity for us, for example, to start looking at driving performance through a tool like Scibids, we’re already there, and we’ve already kind of built those hooks and those connections. So I think down the road, it could be something interesting for us. But net-net, I think it’s more of the same that we’ve seen across other media types.
Operator: And our final question comes from the line of Mark Murphy with JPMorgan.
Arti Vula: This Arti on for Mark Murphy. Just a touch base again on the certain brand advertisers that are kind of starting a little bit slower this year. Is there any kind of common thread between them, whether it’s kind of what’s causing that geography, industry, anything along those lines worth kind of discussing?
Mark Zagorski: No. I mean, look, we’re not going to pin this to macro. I don’t think it’s a macro thing. It’s a bit anomalous. We have a couple of retailers are having a tough go of it, a CPG company is having some issues regarding ramping up spend based on some challenges they have. It’s not really anything I think we can pin to either a vertical in any way or a macro in any way. It just happens to be a handful of customer spending slower than they did last year.
Arti Vula: That’s very helpful. And then just a follow-up, and I know it’s early on, but with Scibids are you guys able to kind of use that new set of solutions to speak with customers that maybe you just weren’t speaking, didn’t make sense to before that you can now? I’ll step back into the queue.
Mark Zagorski: 100%. So in some cases, and we may have mentioned before, we’re even talking to folks who aren’t using our core measurement solutions right now. But they know that there’s pretty much not another great optimization opportunity like this around. So it gets our foot in the door with them as well. So it does, it’s spun a lot of conversations. And as we noted, even with folks we are talking to, almost 50% of them so far this year, the new deals we closed are testing it. So it’s a good uptick and a good attach rate.
Operator: There are no further questions at this time. I would like to turn the floor back over to Mark for any closing comments.
Mark Zagorski: Great. Thank you all for joining us today. And as always, we’d like to thank our customers, our team partners, shareholders and all the stakeholders that help make 2023 a record year for DV and who will be supporting our growth for years to come. We’re excited about the prospect of another great year of growth driven by our unmatched global scale and differentiated technology. Have a great night, everybody.
Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
