So if there’s an American company that wants to promote to the Brazilian market or Chinese or Japanese advertiser, they now can do that to our exclusive inventory there. Now bear in mind, because we have the DSP, SSP, our goal is to constantly increase more inventory, worldwide and more advertisers worldwide because what happened is a lot of advertisers in different countries are advertising budgets on other countries, right? This is what we call inside out. So we’re actually getting advertisers from Hong Kong and Korea actually advertise on our Japanese screens. So that’s constantly happening. So we want to add more agreements like that, and this is the first stage. And through those agreements, we want to push more high impact created that Undertone are so good at.
So I hope that answers the question.
Jeff Martin: Very helpful. Thank you. One more, if I could. Just curious how you’re thinking about capital allocation strategy going forward. You look at the free cash flow generation this year more than paid for the HiveStack acquisition. Should we be looking for additional M&A in 2024? And might you consider a share repurchase program or a dividend program? Thanks.
Tal Jacobson: So that’s a great question. So absolutely M&A, absolutely. We want to continue to grow even faster. We want to add more technologies for the retail space, CTV, measurement, we want to grow faster and grow faster even with profitability. So that’s one thing. Buybacks, it’s always part of our discussions. We’ve actually done a very thorough analysis. What we’ve been told by our research is creating long-term value, continue to grow as fast as possible is going to create more value for shareholders than buybacks. Having said that, this is always something that we’re thinking on. But currently, we think pushing the company forward and having a leadership position in the market will gain more market value for investors – more value for investors than buybacks.
Jeff Martin: Thank you.
Operator: Thank you. Our next question today is coming from Eric Martinuzzi from Lake Street. Your line is now live.
Eric Martinuzzi: Yeah. I wanted to go a little deeper on the shift in the mix, the video versus display the — what do you think is behind the video getting lower rates than perhaps historically video achieved?
Maoz Sigron: So always, there are dynamic in the market. We’re working with multiple solutions and formats. You can take the CTV from that we are charging sometimes more than $30 to the standup as they are with few dollars, and this is always based on demand and supply and what is available and what is now more effective for the advertiser. And I think, the beautiful thing with our system and with our technology is our ability to identify opportunities and based on that to improve our position and to improve margin and do what is good for our results, and this is what happened in the last two quarters. This is something that started at the beginning of the third quarter, so this is H2 ’23. And this is the trends and 2024, of course, will look different.
We need to keep our eyes open to track and to see where are the opportunities. And this is, I think, part of our advantage with the diversification that we have and the different products that we are offering. And again, nothing more than that. Of course, there are a lot of reason behind any preference, but it depends on geographics, depending on the customer type, depends on what’s happening in the market. But again, for us, this is just we looking at that as an opportunity.
Tal Jacobson: Yeah. I thought that [Multiple Speakers] let me just add 1 more thing — sorry, and just one more thing to that. I think it goes back to the strategy that we have, right? We know it’s very dynamic. Advertisers are keep shifting budgets based on the goals they have currently, right? So currently, more advertisers than we saw that in the past two quarters, more advertisers are pushing towards direct response, direct ROI. This is why search is going up. This is why display is going up display versus video right. And other times, video is going up instead of that. So this goes back to the strength of our model of diversification. We’re not putting all our eggs in one basket. We’re diversified. They want to make sure that our technology meets the consumer where the advertiser needs them.
We’re not doubling down on a specific format, that’s not what we do. We want to make sure advertisers have different strategies through different periods, we’re going to meet them and that’s our goal.
Eric Martinuzzi: And has that been driven by — if I were to ask the question regarding vertical strength or vertical weakness over the past six months. Could you address financial services, travel and entertainment, maybe auto, what trends are you seeing over the past six months as far as the burden…
Tal Jacobson: Right. So we do see auto in a pretty good shape. Insurance loans, Q4 was still low, travel was still up. We don’t have the numbers for Q1 still but we’re hoping that insurance and loans is going to start to pick up. But those were the trends in Q4.
Eric Martinuzzi: Got it. Thanks for taking my question.
Tal Jacobson: Thank you.
Operator: Thank you. Our next question is coming from Mauricio Munoz from Raymond James. Your line is now live.
Mauricio Munoz: Yeah. Thank you for taking my question. Could you please expand on the opportunity in search? What’s driving the above strong results this quarter and how sustainable is the opportunity? Thank you.
Tal Jacobson: Great. Listen, we’re — as always, we’re adding more publishers which are adding more searches, but at the end of the day, it’s really a market trend, right, where advertising budgets are going to shift – are now shifting into direct response in Q4. Again, it goes back to a lot of market movements, and our ability to gain more searches.
Mauricio Munoz: Thank you.
Tal Jacobson: Thank you.
Operator: Thank you. We’ve reached the end of our question-and-answer session. I’d like to turn the floor back over for any further or closing comments.
Tal Jacobson: Thank you. So we’re very happy about the Q4 and the full year of 2023 results, we think we saw a tremendous growth. We’re going to continue to grow where going to continue to invest in technology, and we’re going to continue to push this company forward years to come, again, pushing on growth, pushing on profitability, gaining more cash, that’s our strategy. Thank you for joining.
Maoz Sigron: Thank you.
Operator: Thank you. That does conclude today’s teleconference and webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.
