Anthony Callini: Yes, sure. I can take the first part of that about measurement. Yes, we had a nice quarter for measurement in Q4. And as I just mentioned to Laura, I mean that model is there’s a — it’s a blend of SaaS or or user license fee, if you will, or a software usage fee that’s fixed and then some upside on top of that. So, I think what we’re seeing is kind of both of those increasing where you know, as their base grows. The SaaS model typically builds on itself over time as you add more customers and you get that concept of recurring revenue, and then you have to effectively kick at on top of that, which is the usage base. So, I think for us, measurement’s been a big area of focus. With the changes we made in the go-to-market organization, I think we’re having successful conversations with our customers around more of a holistic approach for them, including ad serving and measurement.
So, we would expect that base to continue to grow. And things like again, with the conversation we just had about the real-time measurement, the more that we can connect these capabilities together, we see the usage going up. So, I would expect kind of both of those parts of it to continue to increase over the course of the question over to you. Zvika, maybe I’ll turn the second-half of the question over to you.
Zvika Netter: Yes, absolutely, absolutely. I was on mute, so I was midway already. And so, thanks for the question. So, we are specifically on CTV Composer. It’s a critical, I don’t want to say critical, it’s a very unique part of — piece of technology that Innovid have. It’s definitely critical to the future. You asked about the Dash and SMB, I would say I still feel it were the early days of really advanced CTV advertising. We released this, the core offering, several years ago, and it would say to this day, I believe we’re the only company in the world that offers you a tool that you can create interactive CTV ads, actually engage with the remote and everything, at scale that can run across self-service, that can run across multiple devices and platforms.
What is standard these days in HTML, you can take any document or design tool and save as HTML and publish it on the web. In CTV, there is no such thing as HTML on purpose. As I said earlier to one of the questions on cookies, CTV is still kind of a multi-wall garden. Everybody wants to get a bigger share, so they’re building walls around their technology, their audience, depending on what they’re selling. If you’re selling a device like Roku or Samsung or Vizio, or you sell content like Disney or Netflix, audiences, et cetera. So, everybody’s trying to — so there’s no standards. So, we have the only tool that can actually create an interactive ad that will work on Amazon Fire, on Apple TV, or Roku with the different remotes, et cetera. So, it’s very, very advanced technology.
It has an SDK that fits actually on the device in the app and an offering tool. So, in general, regardless if the advertiser is a huge CPG or an SMB, it’s a very unique piece of technology. So, I believe, and by the way, it was used, we don’t — we will see it later on, and maybe in a press release, but this technology was used in the largest sports event in the U.S. that was recently aired, if I can be within the boundaries of what we can say, with some of the large advertisers that ran there. So, this is live in production at massive scale. I still feel it’s early days, even for the large advertisers to use like click to buy, move to cart. Want to watch more? Send me a coupon. There’s plenty of things you could do using this tool. I still think we’re at a very small percentage of users.
So, there’s a huge upside there even with the largest advertisers. As it goes to SMBs, I feel the platforms like YouTube the DSPs are the ones who will gain early adoption with the SMBs, because you don’t need massive scale. You can go to a single platform. Where Innovid really shines is when you need to run across multiple wall gardens, let’s call it this way. And in that case, that’s where our unique proposition. I absolutely see a world where we’ll have those smaller advertisers use these types of technologies. But just to give you a sense, you take the top 200 TV advertisers in the U.S., they represent about 75% to 80% of the spend. So, the actual amount of dollars that SMBs, even medium is really marginal. The real big needle movers are the guys who, sorry, the brands who spend billions of dollars on television, and that’ll be large CPGs, large auto, pharma, telco, and half of the top 200 are already Innovid customers.
Our focus first and foremost is to get the other half, because then we can get to a point that we have more than 50% market share, and we’ll be actually bigger than Google, which is hard to believe, but we’re actually on a journey to achieve that, and that’s where we laser focused, not on the mid and long tail.
Matthew Condon: Very helpful. Thank you.
Zvika Netter: Thank you.
Operator: This concludes our question-and-answer session. I would like to turn the floor back over to Zvika for closing comments.
Zvika Netter: Thank you, operator, and thank you everybody for joining. As you heard, and thanks for those who congratulated us on the quarter and the year, definitely 2023 was started as a challenging year. I’m extremely proud of the team and with our — we added more than half of our executive team, our executives that joined us this year. They got on board, some of them three months ago, some of them like 26 months ago, and some of them like the chief commercial officer a year ago. The beauty of it in 2023, the 2024, everybody’s on board, everybody’s fully aligned. The goal of everybody joining us was not to deliver Q4, the goal was to deliver 2024, 2025, really accelerated growth, double-digit growth, pushing the company towards Rule of 40 and above, positive free cash flow, and at the same time, as we just spoke about, continue our commitment to innovation, keep releasing products that the market needs, that will basically create a better ecosystem for the advertisers, of course, the agencies, the brands, the publishers, and the viewers themselves, because their time is dedicated to making this industry so successful.
So, very proud, very excited about what’s to come. And thank you for being here and listening and following the company. Wish you all a beautiful 2024, and a great day. Thank you very much.
Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
