Nick Brien: Well, let me, Kevin, let me just say that I think that the entire approach to direct sales has been demonstrating some real momentum. And especially when we’ve got these really excellent major tent pole events like the NFL Tuesday Night Gaming. I’ve been having numerous conversations with some of the biggest brand advertisers, and certainly they’re excited when we’re talking about a direct sale. We’re talking really about an integrated solution. We’re not just talking about audience and reach based advertising, we’re talking about custom, creativity, and we’re talking about compelling content that brands can really engage with. And I think that we’ve got the opportunity that we’re talking with some significant multi brand advertisers, major marketeers like P&G, where we’re seeing really extensive opportunities to look across their portfolio for those audiences, for those brands wanting to engage with the younger, the next generation of their consumers.
So I think my full effort is going to be not that we’re not going to continue to be razor sharp on all aspects of our programmatic advertising and ensuring that we can really be smart about how we leverage all things programmatic, but to ensure that the direct sales momentum continues with the highest caliber and the highest altitude. And I intend to personally give a lot of effort and support to the very qualified team we have. And I think so let’s not also underestimate the importance of the content and the creative studio that we have because their creativity and their ideas form the foundations, the solutions that we’re taking out into the market for really compelling and engaging brand engagement approaches for these major advertisers.
So it is going to be, continues to be an area of very high performance and focus and resourcing for the organization.
Kevin Krishnaratne: Got it. Super helpful. Thanks for that context. Maybe just one smaller question, that’s and your MD&A, it’s been in there for a few quarters now, maybe all of 2022, where you talk about some of the views that you’ve been seeing declining due to the COVID dissipating, has been offset by TikTok. You’ve introduced TikTok as a channel. You’ve got Snapchat as well. I’m just wondering if you could comment on how big the TikTok channel is as it relates to your total views. If you can provide any color there, that would be helpful.
Nick Brien: Again, Alex, can you take that question, please?
Alex Macdonald: Absolutely. So, yes, there is, so as I mentioned in my remarks, total views are up year-over-year, 2022 over 2021. We have seen a bit of a shift of a trend towards web, however, specifically relating to video, we have grown our Snapchat business, but we had a lot of success on TikTok as well. It’s still a small, it’s in the low hundreds of millions as part of that overall 6 billion number. So it’s not a huge chunk. The vast majority of the inventory is still on longer form videos, primarily YouTube based. But TikTok is contributing a couple of hundred million a quarter right now.
Kevin Krishnaratne: Okay, just on that last point too there in the MD&A, there is some disclosure on some changes on YouTube that sort of impacted views quarter-over-quarter. Can you just talk about that as how do we think about that going forward?
Nick Brien: Yes, there’s two, we’re monitoring that the total views remain very strong. Two things to watch for on YouTube is the content reuse policy that they’ve launched and then of course the evolution and the growth of their shorts, YouTube shorts. Our content was — is more primarily longer form, so I wouldn’t say get material impact some noticeable movement we are watching, but overall, as you can see three quarters in a row, the video views very steady and of course on a year-over-year basis total view up. So those are what those refer to. Two changes, content reviews policy in YouTube and YouTube shorts growing in popularity. But YouTube shorts are also on the cusp that they’re being monetized. They’re launching that as well. So as much as that may slightly impact the long form, it’s also an additional monetization opportunity.
Operator: The next question comes from Robert Young with Canaccord Genuity.
Robert Young: Hi, good evening. Welcome Nick Brien. My first question is for you. I think you said in the prepared comments that primary part of your role is to optimize inventory and I think it’s an important part of the business. I think in the past the company said that roughly 2.5%, maybe 3% of the inventory is going through higher margin parts of the business, and they targeted 10%. And I’m just curious if you’d revisit that, do you think 10% is a reasonable target for where the business can go as far as optimizing net inventory?
Nick Brien: Yes. Robert, nice to meet you and talk with you. I’m not prepared. It’s just too early for me to provide targets on where that is. What I do know is that when we’re thinking about all aspects of our programmatic revenues, that we are really recognizing that the opportunity to leverage a data driven revenue roadmap and to really think about all aspects of the way that we’re finding a way to increase our margin expansion on the programmatic revenue is going to be something we’re going to be really focusing on with all aspects and continue to focus on with leveraging our data. And that’s whether it’s going to be in terms of whether we PG or PMP, we’ve got to find a way that we continue to get and extract the greatest value out of the programmatic side of the business. But it’s too early for me to give targets on that, I’m afraid.
Robert Young: Okay. My second question would be around the cadence of profitability through 2023. There’s seasonality in Q1, although the NFL business becomes profitable. And I guess I’m just trying to understand how we should think about modeling. First of all, it’s profitability, EBITDA profitability operating margin, is it operating profitability? And then I mean how do you think about the cadence of that through the year?
Nick Brien: Well, I’d like Alex to respond to that.
