System1, Inc. (NYSE:SST) Q4 2023 Earnings Call Transcript

Michael Blend: Yes. So, we’re just starting to scale TikTok. We are seeing that pretty decent volume from their network. Some of that is international. Some of it’s domestic. So but the nice thing about TikTok and our kind of move into video on the buy side is that the ad creatives are pretty similar across all the networks. So the work we’re doing, for instance, in which we’re starting with TikTok and then kind of moving those that advertising over to YouTube and Reels and some of the other video platforms, what we would expect to see if TikTok were to dramatically go away, is a lot of those video views are going to move over to, the other video platforms. People just aren’t going to change their media consumption if people, like, the average consumer, that’s somewhat addicted to scrolling through TikTok, they’re now starting to scroll through reels in the same manner.

And so we would suspect a lot of that, a lot of that viewership would go over to the other platforms where we’re starting to scale. So we wouldn’t anticipate, a big negative effects that TikTok will go away. There will for sure be disruption in the market if that happens, and you’re going to see a lot of advertising dollars that are currently on TikTok, roll over to the other platforms, relatively quickly. So while we don’t anticipate negative effects, I would think over, if TikTok were to get banned from the U.S. App Store, there’s going to be 2 or 3 months of pretty large disruption in that particular marketplace.

Operator: We have no we have no further questions in our queue at this time. I will now turn the call back over to Michael Blend for closing remarks.

Michael Blend: Okay. Great. Well, thanks everybody for joining us early on Monday morning. We appreciate you’re following System1, appreciate your support. As I mentioned, Q4 was a pretty substantial, very busy quarter for us, and we made some pretty big changes to our business, we believe, setting us up for a lot of success on a go forward basis. So we look forward to reporting that to you in the future and I’m going to wrap up the call, but look forward to joining you next quarter for our next quarter earnings call. Thank you very much.

Operator: This concludes today’s conference call. Thank you for your participation and you may now disconnect.