Good day, ladies and gentlemen, welcome to the Innovid 2nd Quarter 2023 earnings call. Our host for today's call is Brinlea Johnson, Investor Relations. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. I would like to now turn the call over to your host. Brinlea, the floor is yours. Thank you, operator. Before we begin, I'll remind you that today's call may contain forward-looking statements and that the forward-looking statement disclaimer included in today's earnings release, available on the investor relations page, also pertains to this call. These forward-looking statements may include, without limitation, predictions, expectations, targets, or estimates included regarding our anticipated financial performance, business plans and objectives, future events and developments. Changes in our business, competitive landscape, technological or regulatory environment, and other factors could cause actual results to differ materially from those expressed by the forward-looking statements made today. Our historical results are not necessarily indicative of future performance, and as such, we can give no assurance as to the accuracy of our forward-looking statements and assume no obligation to update them, except as required by law. Today's call will include non-GAAP financial measures, including Adjusted EBITDA and Adjusted EBITDA margins. We use these non-GAAP measures in managing the business and believe they provide useful information for our investors. These measures should be considered in addition to, and not as a substitute for, our GAAP results. Reconciliations of the non-GAAP measures to their corresponding GAAP measures, where appropriate, can be found in the earnings release available on our website and in our filings with the SEC. Hosting today's call are Zvika Netter, Innovid's Co-founder and CEO, as well as Tanya Andreev-Kaspin, Innovid's CFO, who will participate in our Q&A session. With that, I'll turn the call over to Zvika to begin. Thanks, Brinlea. Thank you all for joining the call today. I'll begin with some thoughts about the 2nd quarter and some recent business updates and highlights. Our CFO, Tanya Andreev-Kaspin, will provide details on our Q2 performance and our updated guidance, followed by Q&A. I am pleased to report we delivered strong 2nd quarter, positioning us for a solid full year of 2023. We exceeded our prior guidance for both revenue and Adjusted EBITDA and are raising our full year guidance. We are increasing our full year revenue guidance and are guiding to expected Adjusted EBITDA margins of at least 10%. Looking at the quarter, our Q2 revenue grew 4%, and we posted Adjusted EBITDA of $4.5 million, representing 13% Adjusted EBITDA margin. As we progress in our plans toward improved profitability, our Q2 results are evidence that we're executing on our plan. We remain focused on profitable growth and are improving the profitability profile of the company. During recent quarters, we have focused on integrating the acquisition of TVSquared, realizing synergies in the business, and making important operational cost improvements. Now, for the first time since the acquisition, we are benefiting from the full impact of the post-merger integration and the full suite of our expanding product offerings. Our measurement offering, InnovidXP, helped fuel our growth this quarter. With top-line revenue growth up to 10% year-over-year, measurement was 23% of total revenue in the 2nd quarter. Some of the growth is attributed to the deals we reported earlier in the 2nd quarter with NBCU and Disney. Our partnership with NBCUniversal further solidifies our position as an advanced measurement solution built for the future of advertising in multi-currency marketplace. It can provide a unified cross-platform view of local, linear, and CTV advertising, alongside actionable metrics to meet advertiser and publisher needs across the ecosystem. Another win we expanded on this quarter was Disney Advertising. We are enabling the measurement of outcomes such as app conversion and website visitation across Disney's addressable footprint, giving both local and national advertisers the tools and insights they need to inform and continuously improve their campaign strategies. We are also piloting measurement solutions with one of the largest publishers in the world, which we intend to launch in the 2nd half. Turning to our overall growth, we delivered continuous CTV growth with impressions up 11%. Innovid benefits as linear TV continues to shift to CTV. This is a crucial part of our story. Even in a challenged market for ad spend by specific verticals, we were able to deliver growth because of our favorable secular trends in CTV and the critical nature of the technology we provide for our customers. Our growth this quarter was also fueled by new business close, new accounts, and cross-sell opportunities. We are having a great deal of success adding new customers and focused on deepening our relationship as clients activates more products. Our new wins and expansions include some of the largest auto brands, such as Mazda U.S.. and American Honda, and some of the largest global advertisers, including Microsoft, Otsuka Pharmaceutical U.S., and Pluto TV. We are also strengthening our sales leadership to fuel future growth. This quarter, we announced the hire of Dave Fahey as Vice President, Agency Partnerships, an industry veteran with tenure at Google. Dave will be responsible for driving strategic growth in our agency partnership. Most recently, we also announced the hire of Jeff Austin as Senior Vice President of Revenue Operations. Jeff brings close to 20 years of experience in sales and revenue operations. Lastly, we are continuing our investment in new capabilities to power the future of television. Two areas where we're seeing incredible potential as data-rich business is in the adoption of AI to help marketers discover the value from insights, creative optimization, and measurement, and in putting more media dollars to work through CTV-specific Supply Path Optimization. Innovid is already leveraging the power of AI to optimize business outcomes for our customers. Our capabilities help advertisers transform measurement insight into creative actions and highlight where they should be investing future media dollars. Based on numerous performance signals we receive, our platform is delivering the optimal creative within a campaign, all in real time and without human intervention. In Q3, we will continue to enhance our platform to allow customers to more effectively use generative AI in the creative workflow, as some of our customers already take advantage of the ability to drive dynamic messaging using generative AI. Supply Path Optimization, or SPO, is expected to have a positive, measurable impact on both media efficiency and our industry's carbon footprint. Our largest clients and partners are asking for our involvement to improve the CTV media supply path, and we are exploring how our platform can assist in the efforts to further optimize our customers' business objectives while minimizing the impact on our planet. This will benefit advertisers, publishers, and the viewers alike. In summary, we delivered a solid quarter, including some key client wins and expansion. We are also encouraged by some signs of firming in the advertising market. We are optimistic about our future growth and our ability to expand our moat as a leader in building critical technology for future of television. As our products are profitable at the core, the surplus in revenue flows through to the bottom line, evidenced by our strong Adjusted EBITDA results. We will continue to focus on profitable growth in 2023, while making investments with a target of achieving at least 10% Adjusted EBITDA margin this year. I'll now hand the call over to our CFO, Tanya Andreev-Kaspin, to discuss our 2nd quarter results and updated guidance. Tanya? Thank you, Zvika, good morning, everyone. As you just heard from Zvika, our dedication to driving profitable growth has been paying off. We beat the top range of the initial revenue guidance by 5% and delivered 13% Adjusted EBITDA margin. Our Q2 revenue grew 4% year-over-year to $34.5 million. As we previously shared, our focus this year is predominantly on the U.S. market, the leading global force in connected TV. U.S. revenue grew 7% and represented 91% of the total revenue. International revenue declined by 15% year-over-year and represented 9% of quarterly revenue, compared to 11% in Q2 of last year. Speaking about our product segments, measurement revenues grew 10% and represented 23% of total revenue in Q2. Ad serving and personalization combined revenues were up 3% year-over-year and represented 77% of total revenue. As a reminder, Innovid's ad serving and personalization revenue closely correlates with ad impressions volume served through our platform. Q2 CTV share of all video impressions volume grew 11% year-over-year and represented 51% of all video impressions. Last year, it was 50%. Mobile volume grew by 1% and represented 36% of all video impressions, while Desktop volume grew by 17% and was 13% of all video impressions. As we shared last quarter, both mobile and desktop have declined in Q1, but this quarter's trend reversal, especially in desktop, potentially signals a possible stabilization in the advertising spend. Despite transitory trends, seasonal fluctuations, and still lingering macro uncertainty, we expect CTV to continue gaining share of total video impressions. Now moving on to expenses. Q2 total operating expenses, excluding depreciation, amortization, and impairment, were $35.9 million, reflecting a reduction of 13% year-over-year from $41.3 million last year. The overall improvement in operating efficiency was a result of the synergies implemented throughout the post-merger integration process following the acquisition of TVSquared, as well as the reduction in the force initiated last quarter. Employee count at quarter's end was 450, a 24% reduction compared to the previous year. The overall cost reduction was partially offset by an increase of $1.3 million in hosting and data costs associated with the expansion of our measurement solution, and a $1.2 million increase in stock-based compensation. While the cost of revenues increased by $1.2 million year-over-year in Q2, revenue less cost of revenues was 75% of revenues. This is an improvement from 73% in the previous quarter and down from 78% last year. Our margins are constantly improving, and as business scales, we believe we will eventually operate at our pre-acquisition margin level. Savings in OpEx also benefited from a reduction of $900,000 in one-time acquisition and IPO-related expenses being incurred a year ago. We prioritize operational efficiency, while also continuing to invest in the research and development, and remain committed to driving innovation in the connected TV space. This quarter, we incurred a one-time non-cash goodwill impairment charge of $14.5 million. This charge resulted from a decline in our share price and associated market capitalization, compared to the book value of our equity as of quarter end. I want to reiterate that the non-cash goodwill impairment charge was used as generally accepted accounting principles, given the current market capitalization, and does not impact Adjusted EBITDA results. Q2 net loss was $19 million, or per share loss of $0.14. Adjusted EBITDA was $4.5 million, representing a 13% positive Adjusted EBITDA margin versus a negative 5% in Q2 last year. Quarter end outstanding common share count was 138.7 million shares. When it comes to cash and capital allocation, we're comfortable with our cash position and liquidity. We ended the quarter with $43.4 million in cash and cash equivalents and $20 million in debt, with an additional $30 million available on our revolver. Our outlook for the 3rd quarter and the full year. In Q3, we expect total revenue in the range of $33 million-$35 million, representing -4% to 1% year-over-year growth. We expect Q3 Adjusted EBITDA in a range of $3 million-$5 million. We are raising our full year guidance and expect total revenue for the full year in a range of $132 million-$136 million, reflecting 4% to 7% year-over-year growth on as reported basis. We expect a full year Adjusted EBITDA margin of at least 10%, an improvement versus our previous full year guidance of at least 5%. In conclusion, we're encouraged by our 2nd quarter results and pleased to be raising our full year guidance. Our team is working towards building an essential technology infrastructure for the future of TV advertising. We remain committed to innovation and value creation for our customers and shareholders. Zvika and I are now ready to answer your questions. Operator, please begin the Q&A session. At this time, we will conduct the Q&A session. If you would like to ask a question, please press star, then the one on your telephone keypad now. You will be placed in the queue in the order received. Once again, if you have a question, please press star, then the number one on your telephone keypad now. Your first question comes from Shyam Patil of Susquehanna. Your line is open. Thanks, guys, congrats on the solid results. This is Jared on for Shyam. I had a couple for you, if you don't mind. Maybe for starters, Tanya, if you could just unpack the outlook for the 3rd quarter and 4th quarters a little bit further. Looking at the midpoint of the top line outlook, it factors in a bit of a deceleration, actually a sequential decline. Just any particular factors that you'd highlight there, or is that more conservatism? Then stepping back to the wider ecosystem, Roku spoke to an ongoing collaboration with Shopify. If you're stepping back from that, how would you characterize commerce on CTV overall at this point, and where do you think this is going over the longer run? Thank you. I will take the first question, and perhaps Zvika can also speak about the second part. As we've given guidance, I did want to mention that we're quite pleased with our 1st half of the year execution, and we are providing guidance for Q3, considering still certain uncertainties in the macro environment. What we're still seeing, some brands are not fully back to their usual spend. There are certain mix in overall spending among different verticals. So that's what our guide for Q3 particularly takes into the account. However, we were able, considering the 1st half of the year results, to raise overall guide for the full year, to the overall growth between 4% to 7%, and even more importantly, to raise guide for the overall profitability. Meaning we are guiding right now to at least 10% in Adjusted EBITDA margin, which is improvement for 5% last year. Zvika, you want to add on the 2nd part, please? Yes, for sure. We're very encouraged by, you know, seeing a lot of innovation, expanded innovation in CTV that basically reinforces what Innovid has been innovating around and pushing for 15 years now. That's the future where since all television in the future will be content, and advertising will be delivered over IP. The concept of interactivity and personalization is, is, is where we see the industry going. This is a natural step to allow and to educate people about the ability to interact with ads also. The technology that we built already allows commerce on television. The unique part about it is that since TV is very fragmented, you know, you have Roku as a device, but you also have Samsung TV and Xbox and Apple TV. Our technology allows these type of capabilities across devices and across publishers. For-- so for our customers, the advertisers, this allows us a scalable infrastructure to really take advantage of interactivity and, and personalization. But it definitely, you know, we're excited that some partners like Roku and Amazon and others are introducing this technology at scale and basically executing, educating the market, and this is what will allow us to sell more of our tech. This is very good news. Great. Thank you, both. Your next question comes from Andrew Boone with JMP Securities. Your line is open. Hi, guys. Matt on for Andrew. Congrats on the great quarter. Two, if I could, please. Can you just talk about, obviously, your two key investment themes for the rest of the year in generative AI and CTV with SPO? Can you just contextualize those investments that you're making? Obviously, it's great to see the Adjusted EBITDA guide higher for 2023, can you just give us a little bit more color specifically on what those investments are and just the magnitude of them? Then also, maybe backing off of the last question, can you just size the personalization market within CTV for us today, and then what's preventing further adoption right now? Thank you. Sure. First of all, yes, I mean, we are very excited about the doubling the guidance for EBITDA for the, the, the total year from 5%... From at least 5% to at least 10%. This is, you know, based on our commitment to drive profitable growth this year and run a very efficient, tight operation, as, as, you know, shared by the, the, results also in the second quarter with 13% EBITDA. That, that is- does not mean that we're not investing heavily and continue investing heavily in product and innovation. That's our DNA. That's what we've been doing for 15 years. First, actually, the, one of the significant investment that is not stopping is measurement, actually. Measurement grew 10% this quarter, which is great. This is a very large strategic acquisition and investment for the next many, many years as we see significant transformation in how TV, now CTV, is being measured, reach, frequency, outcomes. This is a huge focus, and I would say that is the, a significant part. The largest part of our R&D and product and innovation is actually around measurement, which also connects to AI and SPO, which I'll touch on in a minute. That's a big investment. What we're saying here, our comments here, are that in the 2nd half of the year, we are also expanding in two areas. One is artificial intelligence, AI, which is not something new to Innovid. As we presented, I think more than a year ago, we have an AI engine, the machine learning, that looks at the outcomes, looks at the measurement component and the outcome, and then optimize the creative versioning. If you look at the. You asked about personalization. It's not just personalization based on audience data. Now, with the use of AI, we can look at outcomes and optimize in real time, the right creative to the right audience, based on what actually happens. That loop, that engine, is something that keeps improving, and optimizing, and this is where we wanna invest more. Another, you know, we were definitely looking into generative AI, like everybody else, and we've been really excited about some of the campaigns that our customers have been using, our technology, combined with generative AI, to do generative messaging, and some, some unique asset creation. In that area, on the generative AI, it will be more workflow. How do we better integrate these type of technologies into our workflow? When our customers want to take advantage of this technology, it's an easy... They're already doing it, but it will be much easier to do it. That's very encouraging. On the Supply Path Optimization, because if you think about our delivery infrastructure, our ad server, we, we sit in a very, very unique place in the ecosystem, in the stack. We're basically delivering all impressions, all CTV ads, to programmatic, non-programmatic, open web, walled gardens. We see everything, right? There's a strong trend these days about marketers, publishers that are looking to run a more efficient process, especially around CTV, that has unique characteristics that are different than, let's say, display advertising. Everybody's looking to run a more efficient process, to put more money into actually working media and to dramatically drop the carbon footprint. Based on that, based on our position and our relationship with our customers and our partners, we've been asked to see if there's ways that we can improve on those. We're very excited to do that. Last question, I believe, was sizing in the personalization market. We're definitely seeing growth there. I'm, I'm zooming out, like, the last three, four years. We're definitely seeing the use of data, the understanding of data, understanding of optimization of AI, is pushing forward the idea that you can run different creative versioning to different audiences. Concepts have been around forever, but we're seeing more and more usage of that. To your question, what's delaying the growth? I would say from a scale perspective, I would say, regardless of Innovid, I would say about like 70% to 10% of the, the ads you see out there actually have a creative decisioning in them, not just immediate decisioning, but a creative decisioning specifically from the same brand. Again, we think it should get to 100%. The delays in that is a lot of the work, the workflow. It's basically the creative agency working with the media agency, working with the data providers all together, and the real champion for that to actually see adoption and growth are the brands, not necessarily the agencies. Brands actually can tell-- can set the strategy and tell their partners, the media agency, the creative agency, and whatever data infrastructure they're using, "We would like, from now on, we would like to start experimenting. We would like to execute our campaigns, not just to buy media programmatically or based on audience, but actually tailor the creative to the right audience." And that, that is what's driving it. The more deals we'll do-- we are doing with brands, the more that this strategy makes sense to marketers, the faster this will move. Thank you so much. Once again, to ask a question, please press star, then the number one on your telephone keypad. Our next question comes from Matthew Cost with Morgan Stanley. Your line is open. Hi, thank you so much for taking our question. This is Chloe, on for Matt. Just to, to start, around cloud costs, I, I noticed you mentioned an increase there, and just curious sort of how you're thinking about those going forward as you continue to ramp through what you're doing on, on the generative AI piece. Then 2nd, with the Supply Path Optimization, that's a really interesting piece of it. How do you think and, and how do you see that product potentially scaling into 2024, and, and what might be the, the potential upside on a monetization perspective for you i-if that takes off? Thank you. Tanya, do you want to take the first question? I couldn't hear the first part of the question. If you can repeat the first sentence. Oh, yeah, I'm sorry. Just on, on cloud costs, you mentioned in, in the prepared remarks that those have increased a little bit this year, and just, we're curious, you know, how do you see that ramping potentially or, or where are the levers as you continue to use more generative AI and different capabilities in your, in your products? Of course. As Zvika mentioned, we are using, we are starting to use generative AI across the board to improve efficiencies. What is really interesting when you look at our expenses overall, throughout our throughout the year and throughout the quarters, you are seeing improvement across the board in all departments, R&D, sales and marketing, G&A. We implemented certain synergies starting in the earlier this year, and part of it is really leveraging technology. We really excited about that moving forward, and we believe it will be reflected in our margins improving even further beyond what we demonstrated so far. I would add to that, you know, also there's the, you know, the measurement business and the cost of data and data processing for the measurement. Regardless of the amount of revenue, that's a, that's a cost that's higher. What's the nice thing about it, the more, you know, scale we'll have and the more usage of measurement, that cost will be fixed, that part of the cost will be fixed. The margin, that's, that's how we expect our gross margin to continue to grow over time as we scale that part of the business. This is excellent point. Our business have a significant operating leverage and improvement even quarter-over-quarter, that you saw in cost of revenues and revenue, cost of revenue, less cost of revenues already improved to 75% this quarter from 73%. We will be seeing it constantly improving moving forward, specifically for the operating leverage of the overall business. You know, to your question about Supply Path Optimization, yes, indeed, this is a very exciting part of the industry and the focus of the industry, regardless of Innovid. There's a serious conversation in how things could be done in a more efficient way, both in terms of cost and also in terms of carbon footprint, which is a big initiative for the industry. Because... and the way this is, this is, you know, is unfolding, is because that we are positioned in a very, very, very unique place. In terms of the scale in CTV, it's basically Google in terms of Campaign Manager 360, which obviously they are deep in the media business, and Innovid, who is a fully independent zero media business, no buying, no selling, but we have that the ad server actually sees everything. It's not just the programmatic. We also have a direct component of the deals with the publishers, the programmatic side, the walled gardens, the open web. We see everything. We have all the data. We also have measurement, right? And decisioning engine. We have all these components. What our customers are asking us is to, since we have integrations with the DSPs and the SSPs and all the publishers, it, it, because we're an ad server, we have to be everywhere. You know, we're being asked, are there things that we can do from a workflow perspective and workstream perspective that will minimize the amount of, you know, processing power and the amount of hoops that an impression needs to jump in order to get to deliver to your home, to your screen? This is where we're exploring, and that's, you know, our note here, is that we're exploring that with our customers and partners, if there are ways that we can participate and provide a better process, and, and, and a better environment for all of us. This is, this is where we are now. If and when it will have, you know, an impact on, on our, our offerings and our financial, et cetera, we'll, we'll make comments on that, but it's definitely an area that we're excited about, and our customers are also. Your next question comes from Shweta Khajuria of Evercore ISI. Your line is open. Okay, thank you for taking my question. I just have a high-level question 1st week up, please. How should we think about the volume growth, you know, for the back half of this year, especially for the back half of this year, and then, in the near to midterm, as you think about next year? Understood on CPMs, and that's not impacting your business, but volume does. What are the biggest drivers you see, and, and how are you thinking about that? Thank you. Sure. Hey, Shweta. Basically, we're very excited, and that's a constant tailwind that we don't expect to change from a directional perspective, and that's the growth of CTV. More and more people are consuming and watching content through an IP connection, through the internet, no matter what device, no matter what platform, that is growing. The usage of what's called VOD, you know, like AVOD or FAST, ad-based streaming television is increasing also. The usage of ad-based is increasing. From that perspective, we're extremely encouraged and excited about. What's interesting, that in spite of a relatively kind of cooler environment from an economical perspective and ad spending perspective, CTV continues to grow. This quarter, I believe, was 10% in terms of impressions. We believe in a normal kind of none... This is while the overall budgets are lower than usual, than a normal year. Clearly once there's a positive change in the environment, we should absolutely see a significant acceleration in growth in terms of CTV volume, which will lead to top line growth and a significant expansion of our margin. Actually, I would say both gross, you know, the gross margin because of fixed costs and definitely, definitely the EBIT as we're already demonstrating. The current environment is, is, you know, depends on. There's some verticals like CPG, that's still kind of pushing forward and growing nicely. There are other verticals like tech, financial services, and I believe other companies that are strong in the CTV space, a little bit that also that are, are lowering budgets. From a sales perspective, in terms of new logos, upselling measurement, upselling, you know, personalization, all these trends continue to be strong regardless of the overall volume. We're again, seeing, we're seeing a co- cooler environment than, than, than a normal year. And that's, you know, to your question on the 2nd half. We're seeing, you know, definitely Q2 is better than we thought, you know, being Q1. We still want to be very cautious in terms of the environment we're in. Some people expect a better 2nd half. We, we would like, you know, that based on what we're seeing, to provide the guidance based on, in what we're seeing right now. Clearly, you asked about next year, the second there will be, the recovery will start and the large advertisers that are using our platform, they're always on. It's just the second they start investing more, you'll see those numbers climb up into the right, both top line, bottom line also. Thanks, Zvika. Sure. Your next question is a follow-up from Shyam Patil of Susquehanna. Your line is open. Hey, guys, this is Jared on for Shyam again. Thanks for taking the additional question. I know that you just touched a bit on verticals like CPG and tech, and financial services, but was hoping that you could dig a bit further into what you saw on the vertical front this quarter. Any specific pockets of either strength or relative weakness here? Then in the letter, you highlighted some auto wins with the likes of Mazda U.S., American Honda. Just hoping that you could dig a bit further on what you're seeing with auto advertisers in particular at this point. Sure. I'll start with the latter in terms of definitely the auto, and I think it's connected to a question that you asked or somebody else asked about, you know, about the personalization, dynamic creative, and that kind of stuff. I, I would say that the auto is, is definitely strong innovators. There is like a classical iconic customer for Innovid, and we... I would argue that we have in the auto vertical in the U.S., we have more customers for technology and ad serving than, than even Google from a market share, from a footprint perspective. That's, we mentioned now Mazda and Honda U.S., we also have GM and Chrysler, Mercedes and many, many others. The reason for that is, the concept of addressability, of, you know, local, local dealership, local availability, local promotions. From, from a usage perspective of using data to personalize and localize ads, to the right zip code based on inventory, so data connection for infrastructure and personalization, daily rendering of thousands of, full HDTV ads, you know, showing the right model based on audience data. These concepts are very straightforward, and make a lot of sense to auto manufacturers. From that perspective, we're definitely seeing more and more logos closing with us and moving from, Google to Innovid and taking advantage, of technology. At the same time, clearly, the economy is, is impacting large, you know, everybody in a way, some verticals in a different way. While you might see-- you may see increased adoption within a vertical of our technol- of our ad server and delivery serv, platform, plus creative, at the same time, you might even see for that specific vertical, a decrease in volume and hence decrease in revenue year-over-year. The key thing is that once there is a recovery and that advertiser continue, goes back to investing in TV, you, you'll see a spike because they're already using the advanced technology, and just it's a volume game, right? Those type, without getting to specifically, this vertical is up or down, once this happen, it, it is impacting, our revenue, and, and margin on the short term. Clearly, you know, the TV advertising industry has been around for, what? 80 years. Brands, these type of brands, the auto, the pharmas, the financial services, CPGs, have built their business based on TV advertising. It's a $200 billion industry that's not going anywhere. Actually, consumption is going up into the right on CTV, ad-based consumption, right? From this is where, kind of, if, if I'll summarize this, this year, we're focusing on profitable growth. I mean, we're growing, But we understand it's a challenging year. We want to demonstrate that even in this environment, we can produce a nice, growing, healthy EBITDA margins and prepare and close more business and educate the market and innovate more. Once the recovery comes in, and I cannot guarantee when that will be, we'll see a very different profile in terms of top line and bottom line. Great. Thank you. Once again, to ask a question at this time, please press star, then one on your telephone keypad. Your next question comes from Laura Martin, with Needham. Your line is open. Hi, there. These margins are really terrific. When you think about the role of generative AI and AI in driving margins, do you see the role of generative AI more on the upside or on the downside? I mean, on the cost side, in terms of benefit, when you think about how you're using new tech? Absolutely. Thanks, Laura. Absolutely, on the upside. I mean, this is a very exciting... What I like really about it, it's, you know, we are, Innovid is a technology company. Innovid stands for innovation and video. We've been investing in just, like, advanced tech, and, like, at the core, we're a bunch of geeks, right? That really are, are excited about leveraging new advanced technology. None of these things are, are, like, super new concept to us, and we've been taking advantage of AI, not specifically generative AI, already for years. To your question in terms of cost, if there are two areas, right? One area is optimization, right? Is using the very unique data set that we have as an answer, where we're sitting on really phenomenal, unparalleled, except Google, view of what's going on in the world of CTV. More than the, the, the DSPs, more than specific publishers, more than, you know, walled gardens, because we see 100% of what a specific brand is delivering. I'm saying, like, we see it for, for that specific, you know, if you're an audio, auto company, we see everything you're doing everywhere, in every household. The ability to use AI from that perspective on optimization, you're asking about ROI, is very. The ROI is very, very high because you can reduce waste and improve performance based on outcomes. That's a very positive ROI to implement AI, and that's something we're investing even more so. To your question in terms of generative AI for creative, creative messaging, and creative, actually creative, you know, video and, and, and images, that is definitely something that's a heavier cost. From that perspective, the way we're expanding our platform in the second half is to allow to insert that to the workflow, not replacing creative agencies, not giving somebody, click a button, there's an ad. We don't think that's realistic in the short term. Allowing the agents... That's, that's actually, I have to say, surprised us, that we already saw that some brands are already using these tools combined with our tools, but in somewhat of a manual perspective. What's gonna happen in the 2nd half? We're gonna integrate that into our workflow. The cost will be bear by the customers, not us. They will have to use their accounts. They will have to generate whatever they want. The way the data will flow into a generative AI API and come back into our platform. That is what we're gonna automate. We're not gonna see... We don't expect to see any increased cost, and definitely, we expect to have actually more efficient process for our customers and for us. And last comment, I would say within our system, you know, ad serving, measurement, these are labor intensive on the agency side, not on the Innovid side. Clearly, we see automation, further automation of certain processes that will allow the process to be more efficient and have less, kind of, less hands-on keyboard for that stuff. That's kind of the third area that we see innovation. All these things should absolutely increase our efficiency and our bottom line margin. Thank you. That's wonderful. Thanks. Sure. At this time, it appears there are no further questions. I'd like to turn the call back over to Zvika Netter for any closing remarks. Sure. Thank you, everybody. Thanks very much again for joining us today. Thanks for the wonderful questions. You know, I'm excited to see that there are, like, lively question about more innovation, more efficiency, and the fact that we can somehow reduce the carbon footprint in our world is, is, is an added bonus. We delivered a solid quarter, driven by CTV and measurement growth, which we expect to continue. We had some key client wins and expansion of existing customers, some really nice deals there. So a great momentum there. I'm encouraged to some of the signs that we are seeing affirming in the advertising market. It's, you know, still somewhat volatile, but we are seeing a positive trend. At quarter-over-quarter, we're seeing a better environment than we had in the beginning of the year. That's good, but we still, you know, want to be cautious, and we'll continue to, you know, focus on product innovation. We talked about that today, scaling our sales operation, adding more talent, more efficiency in terms of how we run our marketing and sales organization, and of course, focus on profitable growth. I look forward to continue this conversation and update you on our progress on all these fronts. Have a great day. Thank you. Thank you, everyone, for attending today's Innovid 2nd quarter earnings call. This concludes today's call. Have a great rest of your day.