Lisa Utzschneider: Sure. I’d be happy to answer that. So science is in the name of our company and AI/ML, it’s at the core of everything that we do. It fuels our differentiated technology. We have been leveraging AI for several years now. And I could give you a couple of examples of our products that we leverage AI for TMQ, Meta, attention or just a few examples. But TMQ product in particular, we can currently classify 40 years of video content across all media platforms. IAS evaluates every pixel at every second for true in content classification each day in more than 90 languages across all major social platforms. And the sophistication of the technology is represented with our social revenue growth in the last quarter. The other thing to call out is that our emerging products like attention, MFA, they’re almost 100% run by AI technology.
And then the one other thing to call out with TMQ is that by leveraging AI, we’re able to drive the generation of 4 terabytes of high valuable video classification every single day, which enables us to provide that granular frame by frame in BDO, real-time, pre and post big content avoidance and contextual targeting for our customers. So we’re bullish on AI. We have an incredible data science team. We announced in our last earnings call hiring a new Head of Data Science. And also in 2024, we’ll continue to invest in science and AI and have 30% of our engineering or be made up of data scientists.
Unidentified Analyst: Thank you.
Operator: Thank you. Our next question comes from the line of Youssef Squali with Truist Securities. Your line is now open.
Robert Zeller: This is Robert Zeller on for you. Thanks for taking the question. On the pricing dynamic and measurement, can you remind us on the lines of contracts for customers and when the remaining contracts are up for renewals? And is there any reason why your existing customers wouldn’t ask for these deals and seeing treatment when their contracts are up? And then just quickly, you guys mentioned that it was also in exchange for exclusivity. I think you were kind of under the assumption that most advertisers just work with one partner. So I’m curious like what percentage of customers are exclusive versus which aren’t? Thanks.
Tania Secor: All right. I’ll take that. On average, our measurement clients have contracts in the range of one to three years. This is not — this was a select group of large clients on the measurement side that we offered these arrangements in order to drive expansion over time. And then in terms of your last question I mean, almost all of our customers are exclusive versus working with multiple partners.
Robert Zeller: Okay. Thank you.
Operator: Thank you. Our next question comes from the line of Mark Zgutowicz with The Benchmark Company. Your line is now open.
Mark Zgutowicz: Thank you. Just a couple of questions on social. You mentioned higher than normal international growth. And given the modest 4Q sequential social growth that you witnessed, does that imply that domestic was weaker and perhaps impacted by pricing pressures in fourth quarter? And then on your commentary around accelerating social revenue exiting 1Q, is it safe to assume that 1Q measurement is expected to be roughly flat year-over-year? And if so, can you talk about or provide some clarity on how much new product sell-through is needed to offset what I assume would be pricing pressure flow through — through the year? And then just two quick housekeeping, if I may. Could you comment on total large advertiser customer count in 4Q? What percentage of that was of trailing revenue and then also impression in volume growth? Thank you.
Tania Secor: Okay. Let’s go through one at a time. So first, in terms of social, no, we continue to see robust growth in social in the fourth quarter of 37%. We were excited to see the social growth outside of the US — outside of the Americas and measurement overall, but we continue to see growth in social in the fourth quarter in the Americas. And then your second question was around accelerated revenue on social exiting the first quarter. Could you clarify your second question?
Mark Zgutowicz: Yeah, sure. Just I think you had said you expect to see accelerating social revenue exiting 1Q, which — and given your guidance for 1Q and then subsequently the year, does that imply that your 1Q social revenue was roughly flat or it’s expected to be roughly flat year-over-year?
Tania Secor: So we are anticipating slower growth in social in the first quarter for the reasons we talked about earlier and expecting social to ramp throughout the year, particularly with the launch of Meta brand safety and suitability as well as continued sustainable growth in short-form video.
Mark Zgutowicz: Okay. And then on total large advertiser count in 4Q and your impression in volume growth?
Tania Secor: Sure. So our total large advertiser count in the fourth quarter was 222 large advertisers, which was up 12% from the prior year. And then in terms of the — were you asking about volume and price in the fourth quarter?
Mark Zgutowicz: Yes, advertiser direct impression and volume.
Tania Secor: Yes, on the measurement front, yes. So on the measurement front, we don’t disclose the fourth quarter in particular, but on a full year basis, as you can see in our 10-K, we had — for the full year, had robust volume growth of 25% across measurement, and our average CPMs for the year were consistent with the prior year. So when you back into the fourth quarter, you can estimate that on the measurement front, our volumes continue to be very strong in the mid-20% in the fourth quarter. And then our average CPM in the fourth quarter did moderate with a decline in the mid-single digits.
Mark Zgutowicz: Okay, Tania. Thanks. That’s helpful.
Operator: Our next question comes from the line of Omar Dessouky with Bank of America. Your line is now open.
Omar Dessouky: Thanks for squeezing me in. I appreciate it. So I just wanted to get some clarification on a couple of things I’ve heard on the call so far. Number one, you said that revenue would ramp as the year went on. So are you implying that we should be modeling sequential growth through the fourth quarter quarter-on-quarter?
Tania Secor: Sure. Hey, Omar. The way to think about the — the contribution and how we ramp through the year, I mean, we guide obviously for the full year in one quarter. But as you think about the contribution as we ramp through the year, you should expect revenue contribution in the second half of the year as a percentage of the full year to be more weighted to the second half of the year?
Omar Dessouky: Okay. Okay. So then the second clarification would be — you talked a little bit about this — your top 11 clients. There’s some change in pricing there. It sounds to me like you’re not assuming that there’s going to be a similar change in pricing or the contract with the other 90 top clients that you have in your guidance. Is that — did I understand that correctly?
Tania Secor: So Omar, yes, we have reflected in our guidance for the full year, our assessment of upcoming measurement renewals. And also just to clarify my prior comments, when I talked about the second half contribution as a percent of the full year, I was saying compared to prior years. So expect a slightly higher second half contribution as a percent of full year revenue compared to that ratio in prior years.
Omar Dessouky: And then my final question is, given that this is a strategy on your part to lock in these clients for a little bit longer, are you also considering the potential upside from upselling in your guide?
Tania Secor: Yes. As we move through the year, we do expect to see the benefits of these renewals, particularly as it relates to volume commitments, and these are multiyear exclusive agreements.
Omar Dessouky: Okay. Those are all my questions. I appreciate it.
Operator: Thank you. I would now like to hand the conference back over to Lisa Utzschneider, CEO, for closing remarks.
Lisa Utzschneider: Thanks, everyone, for joining today’s call. We’re pleased to have reported strong results for the 2023 fourth quarter and full year. As we move through 2024, we expect to accelerate growth as we benefit from several growth drivers, including the rollout of new AI-backed products. We are excited to execute on our growth strategy in 2024, and we look forward to sharing our story at upcoming investor events.
Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.
