Michael Blend: Yes, sure. I’ll just the first and Tridi can talk about international. On the CTV side, we’re still really not aggressively going after it. As I’ve mentioned in the past, we’re performance based advertisers, and we need to see measurability in terms of if we put a dollar play on CTV, we need to be able to make sure we’re making over a dollar on the sell side. And some of that tracking is not really yet in place to help us support that. What I would say is that when you go beyond CTV and just kind of look at more broad based video, everything from TikTok to YouTube, the reels, reels on Facebook, on Meta. We are we are starting to play a bit more heavily in the video side, and we’re seeing some pretty nice beginning scale there.
We’re seeing pretty good profitability. And, that’s another area where we have had a pretty good boost from AI. Early stages in terms of video creation with AI, but what you’ve been seeing out there in the market are some capabilities of putting together these video ads, and in a much, much, much more efficient way. So not much directly on CTV, but video as a whole, we see pretty good opportunity. And go ahead, Tridi, on international.
Tridivesh Kidambi: Yes. Sure. Thanks, Dan. We haven’t talked about it explicitly. It still remains a growth channel for us. So, again, our current international footprint, roughly, a little bit south of 20% of our total, kind of total advertising revenue comes international. We know if we look at just how that’s how that actual share is between international and U.S. in terms of total advertising spend is significantly higher international. And so we think that we can eventually mimic that, just as we focused on, the platform, the tools and integrating AI, we probably not have spent as much time, thinking about and growing that international business, but its still, something that’s on our radar, and on the road map. And, again, just with the integration of these tools and RAMP in general, it’s a relatively easy lift for us to go and do that.
Again, the translation of our content creative, etcetera, all happens pretty quickly. And being able to test or automatically test our channels, even in different languages, makes it easier for us to grow. So that is something we’ll continue to try and grow and focus on throughout this year and the years going forward.
Operator: Your next question comes from the line of Shweta Khajuria from Evercore ISI.
Unidentified Analyst: This is Luke on for Shweta. Just two questions. Could you give us a sense, just because you operate obviously both on the buy and the sell side, what you’re seeing just generally in the digital advertising kind of space so far this year and as we go into 2024? And I know you mentioned at the end there that you’re not seeing a real upturn yet. And then just second question, could you remind us of what your target leverage is? I think, you might have said it in prior calls.
Michael Blend: Again, I’ll take the first question. Tridi, you can take the second. I’d kind of call it Goldilocks at this point, in terms of what the overall advertising market looks like for us right now. Not hot, not cold. We haven’t seen a big bounce back. The quarter did start off a little bit slow, slowly for us. A lot of that we believe had to do with, like, to really the calendar days of the year, in terms of when it started. But then kind of heading into kind of the mid to end of January, we started seeing typical come back from what’s almost always a slow start to the year. We’re not seeing huge acceleration yet, but we’re also not seeing any kind of alarming decline, in the overall ad market. And we’re not seeing any particular verticals look bad or good.
So nothing super out of the ordinary except that we’re not ready to call kind of a big dramatic reacceleration, in the ad business. And we’ll if we see that, we will let obviously, we’ll let investors know, but so far, nothing looks like everything’s reaccelerating as we talked about in the prepared remarks. Tridi, do you want to take the second question?
Tridivesh Kidambi: Sure. Thanks, Luke. Our target like, we have those reports. So our target leverage is to get closer to that 3x range. Again above that now, I’ve mentioned in my remarks a little bit south of 5x of 4.8x, after the Dutch auction. But our target where we’d like to be operating or we’re trying to get through both the organic growth and other things is closer to that 3x.
Operator: Your next question comes from the line of Thomas Forte from Maxim Group.
Thomas Forte: I think I have 6 total, so I’ll go one at a time. You made a lot of progress on straightening your balance sheet. Can you talk about your plan to continue doing so in 2024?
Michael Blend: Sure. And then I can give the brief overview and Tridi, you can follow-up if you want. So thanks, Tom, and thanks for joining. Yes, it was Q4 and selling Total Security was had a really positive effect on our balance sheet. We’re happy about that. On a go forward basis, we’ve got cash on the balance sheet. We’re going to be pretty conservative about how we use that. We can take a look at buying some debt that would have a good effect. We’re going to look at acquisitions. If we do acquisitions, they’ve got to be low risk and accretive quite quickly. Probably what we’re most focused on would be our organic growth. We believe we’ve got a nice business ready to scale. And as that business is organically growing, we’ll be using that cash to further pay down the debt on our balance sheet.
So, I guess in summary, we do have cash on the balance sheet to be used, but when we do use it, we’re going to be pretty conservative with it. And, organic growth is what we’re focused on. Tridi, do you have any follow-up to that?
Tridivesh Kidambi: No, that’s the total menu, yes.
