System1, Inc. (NYSE:SST) Q1 2024 Earnings Call Transcript

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So, where we are now is we’ve got the ability to scale our advertising in a much more automated manner as we very quickly have incorporated AI into our platform. And so what we — when we’re doing that, we’re one of the biggest advertisers in the world at this point. And so, what we’re going to be doing going forward is opening up those capabilities on the buy side to people that want to use our platform, which we really haven’t done before. And we think it’s going to really give people using our platform an advantage in the marketplace because they can really dovetail with all the capabilities that we’ve built ourselves. And if you think about the average partner of ours, they don’t have a hundred person engineering team to go develop these buy safe capabilities.

Our average partner might be everywhere, anywhere from five to 30 employees. And so by offering up that buy side scale, we think that we have the ability to turn RAMP into much more of a software type product, almost a DSP type product. And we think that not only is going to help our owned and operated business scale, and we’re already really seeing the effects of that, we think by opening up the buy side, we’re going to get a lot more people on the platform. It’s going to be a lot more sticky.

Tridivesh Kidambi: And Dan, this is Tridi, just to hop in on kind of the P&L impact. As you kind of said, our OpEx space. At the end of last year, we kind of already recalibrated and reorganized how we think about product and development against these specific initiatives and goals. And to Michael’s point, really, it’s create a platform that we can use end-to-end internally. And then, think about potentially how that gets syndicated out. And so, at least for, I’d say at least the next 12 months, the team that we have here and the OpEx kind of — the OpEx load that we have should be sufficient to kind of build out these medium term initiatives. So the short answer is no increase in the P&L.

Michael Blend: Yes, I don’t expect a lot of cost — a lot of incremental costs going into this. So as another benefit we’ve had is a lot of the automation on our platform is allowing us to do more with the same number of people.

Daniel Kurnos: That is really helpful. Thanks for the complete answer. Appreciate it, guys.

Michael Blend: Appreciate it, Dan. Thank you.

Operator: This concludes the question and answer session. I will turn the call to Michael Blend for closing remarks.

Michael Blend: Yes, well, thanks, everybody, for joining us today. If you’ve been following us System1 closely, it’s been a choppy few quarters for us, but the team has been really heads down to executing. And it feels like we’re starting to see all that hard work paying off. I’d say we’re getting increasingly optimistic about our trajectory here at the company. And so we look forward to speaking with all of you at our Q2 earnings call. Thank you very much. Thanks for joining.

Operator: This concludes today’s conference. Thank you for joining. You may now disconnect your lines.

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