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We're going to get started. Thank you all for joining us. I'm Matt Weber. I cover Canaccord, excuse me, cover Mountain here at Canaccord. And it's my pleasure to introduce Mark Douglas, Mountain's founder, president, and CEO. Mark, thank you so much for joining today. Thanks for inviting me. So maybe to start things off for those in the audience who are maybe a little bit newer to your story, could you give us an overview of your platform, the performance TV space more broadly, and where you sit within the digital advertising ecosystem? Sure, so I'll start with the performance TV space. So Mountain, we created the performance, the term performance TV we created. And the idea there was with the advent of streaming television, it created the opportunity to bring full digital advertising, and in particular, direct response performance advertising to television. So all the small, mid-sized brands that are prevalent on paid search and paid social, email marketing. We're giving them the opportunity and compelling opportunity to now find their next customers leveraging the power of television. Very, very cool. So you just reported Q2 results, strong quarter. I think revenue was up 20%, adjusted even to up 50% year over year. Could you just walk us through some of the key operating highlights there? Yeah, so I think that's continued adoption of the platform, we also brought on 40% new customers in the core, 40% year-over-year growth in terms of number of customers. So we're seeing a lot of that's coming from small business as we continue to grow our mid-market segment of the business. And so the combination, you know, it contributed to the top line growth and the continued expansion in terms of EBITDA and adjusted EBIT. Got it. Maybe related to that, you've talked about the performance TV market moving from early adopter to mainstream. What are the clearest signs that you're seeing that in the customer base? Yeah, I mean, it's actually really simple, is we have to do less evangelizing. So we just have more inbound companies coming inbound at the mid-market size who are increasingly aware of the concept of performance TV. also one of the things we reported is we launched a small business edition of platform Express in at the beginning of April and signed up 7,000 new companies on that and the starting campaigns and then hundreds of them went live with pay that campaign so the combination that we see is indication of the market going going mainstream and moving, going from their early adoptive phase and starting to move into mainstream adoption phase. Yeah, that was going to be my next question, because I feel like that was the main product highlight of the quarter. So maybe dig into sort of the tiering segmentation that you did, what the differences that you identified in terms of customer needs across small, medium, and enterprise, and sort of why you, what drove that? Yeah, so I think the small business, we see the opportunity as a long tail opportunity. So majority of our revenue comes from mid-size, but we think over time small business is really important. So it tends to be more individual business owners, or an emerging startup, or emerging business. And what we found is as we were pursuing that, our main platform, what we call pro, is built for the professional marketer. So it has- Makes sense. Yeah, all bells and whistles, everything they're used to, full A-B testing, like every capability, for them to maximize their campaigns. The small business is more of a business owner, where obviously as a small business owner marketing is really important, but they don't necessarily have or need all of the professional features. So instead of scaling the kind of pro edition down, we decided let's create a version specifically for the small business built on the same underlying tech, but significantly easier for them to adopt. Got it. That makes a lot of sense. And so as we think about you going to market with this offering, what does the customer acquisition funnel look like? How does the conversion journey work with these smaller businesses? Yeah, well, there's two. So let's go back to the mid-market. Our mid-marketing customer, our number one marketing challenge is our own product. So we stream mountain commercials into the homes of our future customers. We have a go-to-market motion with SDR. It's basically a sales organization. We announced last quarter that Garland Hill, who built TikTok from zero to billions, had joined Mountain as CRO, and there's other people he's hired. That's our mid-market motion, which is a bit more of a classic sales motion with marketing feeding into that. For small business, it's all marketing-driven, 100%. It's not only self-service, self-sign-up. It's self-go-live. We have our Quick Frame AI for both versions. So with the small business, there are ads waiting for you. Between the time you create an account and you go to create a campaign, there's already AI-generated ads that you can then modify if you want waiting for you. So it's like a really fast motion. Yeah, very impressive stuff. And we'll get to Quick Frame in a minute here. But just maybe before we do that, I believe for your mid-market customers, you've added some agentic and automation capabilities. Could you just talk more about what those do and sort of how much of the campaign management you expect to be agent-driven over time? Yeah, so in many ways, when you think of our business, the TV ad is an important component. It's the core of what we're doing, but it's the optimization. These brands have, in some cases, big budgets, but they're not huge budgets. Who sees that ad, when they see it, where they see, meaning what television network they see it on, even down to what show they see that. It's all very, very important. I recovered the mic. That was nice. It wasn't a catch. It was a good cable. It's very, important. Traditionally, that's algorithms and machine learning. With the advent of the AI era living in, we were very early adopters. We announced Mountmatch two two years ago, which is AI audience targeting, AI creative tools with Quick Frame. We have AI media planning. So every aspect of their campaign, there are basically AI models that are determining who exactly should see this product, this ad, when should they see it and so forth. And so that's, I now refer to us as AI native because we're both extensive, half the company is engineering were both extensively using AI technology as well as extensively creating AI technology. Right, right, right. Yeah, I'm glad you brought up Mountain Match. Maybe just spend a minute on that just because I think that is part of your secret sauce and you were early adopters, as you said. Yeah, nothing is more important than who sees the ad. So think of it this way, if you're T-Mobile, everyone in America could potentially be a T-mobile. Like they could have a phone for babies. But if you're more of a mid-sized brand or a smaller brand, those dollars have to really stretch. So who receives those ads is critically important. And the more that we understand who your target consumer is, and the more we understand what they watch, when they watch and can kind, that's why we call matching, we're essentially matching consumers with products and brands they're potentially going to love, and then The way to make that match is through all of that decision. And so that's what Mountain Match does. It really builds an audience. Taylor made for the products in those specific ad campaigns for those people that are going to best receive that. Yeah, and that's bringing in those performance capabilities too. It's a lot of data involved. I get asked often about data. What's most important is the models applied. Data is ubiquitous. It's the models applied to data is where all the value comes in. So when you think of half of the mountain is engineering, the biggest portion of the half is on the mountain matching up. Got it, got it. Well, yes, matching the right ad to the right person is important, but as is creative to get to hook them in. And you've made a lot of progress on Quick Frame. I think you had over 70,000 sign-ups in Q2? In the first half. In the half of the year. So maybe just talk about how that product has evolved over time and where you see the roadmap from here. Yeah, so the product is between, I think it was October last year and the April of this year, we are already on version three. So it's evolving very quickly. The new product releases literally every week. There's also new AM models releasing what feels, at least every month, if not faster. And so a significant portion of our customer base is using Quick Frame. Nearly all the Express customers are very healthy, like 30, 40% of our mid-market customers are using Quick frame. But there are also people that are coming to Quick Frame just from the creative side, because it not only supports TV, it supports social and YouTube also. so we made it so that you can do any form of creation in it. But it's geared towards paid media, that's the key. Right, right, and it's free right now? It is free right right now. So how do you see the monetization path playing out? Is there a specific engagement threshold you're looking for before maybe monetizing more directly? Yeah, exactly. So we're testing out, we're mainly focused on its value in terms of enabling the performance TV component, but we think it does have monetization possibilities and we're playing with testing those out. And we're certainly seeing the inbound interest and adoption, which, and then, you know, seeing that convert into paying subscribers, we're kind of playing with that. Now we like to do these things and then announce the results. And I'll be waiting on Baited Breath. So maybe switching gears, you a key theme in the CTV or performance TV space is obviously the transition of live sports over to streaming. You now offer advertisers access across nearly every major sports league. How have you built that premium access and then sort of what has that done for performance and your sales conversations? Yeah, so one of the things we talked about last week was Express Pro and premium. So premium is what I refer to as even super, everything on a platform is premium, meaning that you're on the best networks. Super premium is guaranteed access to things like live sports, reality television, home improvement, basically specific shows. So we wanna give people the kind of the capabilities or the access they get in an upfront with guarantees, but without any of the headaches, all the downsides that the large the huge budget and so we launched that in January the we have many customers running in March Madness World Cup they running on the Kardashians running on housewives and we built partnerships with numbers streaming networks which essentially is like I said bringing upfront like capabilities we're bringing it to the SMB market and we're seeing customers like a set as a result you know kind of they're loving they ultimately want the performance but they also intuitively like if you're a certain type of brand and sports is gonna resonate really good examples Bowflex and one of our customers they advertised VR platform in March Madness targeted advertising but in one of the biggest sports events and they you know got really really good results from yeah yeah I used to have one back in the day. Maybe just sticking with that theme about these strong network relationships you have, I think most of your buying runs through pre-negotiated private marketplace agreements. As we head into this Q4 midterm political cycle, does that help insulate your customers from some CPM pressure, upwards pressure? Absolutely. So essentially their pricing will change, but they'll still be on the exact same networks actually with one of the proof points of that is right the AI media planning where it's essentially telling customer this is exactly how your media buy is going to be executed to get the performance that you're that that you are getting or improve it and so with that they you know they can be guaranteed that they're not going to see in this industry there's what's called private marketplace and open market. Most of the inventory is just open auctions. That pricing goes up. Private marketplace, you have to have higher scale, stays constant. I think within the SMB segment, we are the largest buyer of ads and I think the only company with scale that does private marketplace deals directly with the startup network. Feels like that might be a strong relative value proposition for you guys, given, I think, spend in this midterm political cycle was supposed to outpace the presidential cycle of less so. Yeah, it's a big political issue. Yeah, yeah. And then maybe high level as we think about the industry, since you presented last year at this conference, Fox agreed to acquire Roku and consolidation between content owners and platforms is picking up. So how does that impact supply relationships for an independent company like that? I don't think it has any impact. I mean, at the end of the day, no one says no to money. We represent the biggest growth opportunity industry, which is the small, the SMB market, the small mid-sized marketers. And we're, you know, you look at example Paramount and Warner Brothers, we work with both teams extensively. I mean, they, and, you Know, they're at some point, I assume, are going to get consolidated, but the relationship will continue. And we intend our spend will continue and see any reason they would want that to be otherwise. Got it. Got it makes a lot of sense. Yeah. So you mentioned Garland Hill earlier, former chief revenue officer of TikTok that you brought over. Head of growth. Head of Growth, excuse me. According to the chief revenue. Okay, okay. With a full quarter behind him, so what has changed under his go-to-market leadership? And you've talked about building out vertical sales teams. Sort of how has his leadership brought that about? Yeah, so one thing, well, the verticals is the biggest thing. So one cycle that both TikTok went through and Meta, because before six years at TikTok, building their revenue from scratch he was six years at meta and the um and one of the things both companies did is when they reached a certain point they they broke in the verticals um in order to kind of measure um market adoption by vertical and also start to build knowledge in that vertical and so we're doing this he's done the same thing at mountain so we recently restructured into verticals each team has independent goals they have revenue targets both to grow revenue with existing customers as well as to add customers so that is the biggest change that we are expecting we got it up in the second half of the year one of that is our confidence in the execution from that there's there's also a lot of other talent that's not everyone who joins the company we do press releases on but you can imagine when someone joins a team you know people if they're good leader you want to follow and so their people definitely have followed Garland and they're more there's other executives we've added so we've been focused one of my themes and last earnings call was kind of the scaling of the product to meet each opportunity and then also the scaling of the sales and marketing basically to meet the opportunity also how much is building expertise and in the specific new like you know merging vertical is hiring the right people versus say investing in data versus something else that I'm not thinking of? It's a combination of hiring the right people, some partnerships and a bit of technology. And so it's one of the advantages of organizing in verticals is that you can then justify certain verticals where you might need to make an investment in partnerships and technology. It can be justified if instead the team is just going after everyone you have a dedicated forecast for that specific vertical that you can then pursue like an example there's a random example might be healthcare there's lots of unique data you need for that measure me for that another might be um online online stores combined with brick and mortar you need different measurement data but from that by organizing that That way the whole company can basically rally around that vertical and then grow the scale. And we're already seeing proof of that. Yep, makes a lot of sense. You recently announced an integration with HubSpot, which to me indicated, you know, leaning in more to B2B and lead gen use cases. How meaningful could B2Be advertisers become on the platform? And, you Know, does contact level measurement change the conversation? Yeah, it's Mountain's own number one lead generator is B2B. We're a B2C company, and most of our revenue comes to selling to B2Cs companies. But we've been approached by a lot of B2P companies, and so that's an area we already had success in. We invested last year in another partnership with HubSpot. But what HubSpot did is it got us down to we can tell you the person that you can do both people-level targeting as well as much more granular measurement. And so that's another really good example of verticalization where that is now a dedicated vertical that we're going after. And so the engineering team is making enhancements to the products. And then the sales team, the individual sellers now have more vertical knowledge as to how to communicate with those B2B clients. Could we see that vertical start to indirectly show up in the numbers in 27 or is that a longer-term build-out? No, no, I think any investment we're making, we're looking for it to start to show up within the next six to 12 months. Got it, got it. Maybe a couple questions on financials. So you guided to Q3 revenue growth of 25% at the midpoint. That's accelerating from 20% in Q2. And the full year guide points to your first $100 million revenue quarter in Q4, which would be great to see. So what are the assumptions underpinning that acceleration? Well, I think it's the investments I already talked about, what we're doing in product, and that starting to contribute. And then also, most importantly, we think the opportunity is there. It's just an investment in sales and marketing and the interest we're seeing, the demand we're seeing in the market. So we consider that. And we also, Q4 is historically, and we expect the same this year, it's the largest quarter or as a percentage of the year. So there's some of that forecasted in also. This is more just like a broader question. But I feel like some advertisers might have held back some funds earlier in the year, given all the tariff volatility and whatnot. Are you seeing anything that could suggest that those funds be re-released in Q4? Or just maybe talk about how you're thinking about that. Yeah, I mean, the majority of the SMB market is e-commerce. And it's a majority of our revenue. And Q4 is our biggest quarter. There just is no doubt. And so they, and Q3, I mean, there are already stores releasing Halloween. The holidays start with Halloween. They start with Thanksgiving. So you already have people putting out things for Halloween. That's October. Right now we're in mid-August. So you're just going to see a ramp. And you're not only seeing a ramp in the market. Part of that is the lift. But you're seeing our investments in sales and marketing, those take about two to three quarters to start to really show up. So you see that also. Got it. And then maybe on capital allocation, your board just authorized a $100 million buyback program. How are you thinking about buybacks versus M&A versus other uses of capital? Yeah, I mean, so there's three uses of the capital. You can invest in a business, which we're doing. That's everything we've been talking about. You can investment acquisitions. We're always looking at opportunity, but there's nothing specific that we're pursuing at the moment. Or you can invest it in your own stock, and we think the stock's a really good value, so we decide to invest it. The other statement that you made also is that we authorize a $100 million buyback, and we generate 100 million free cash so just approximately 100 million in free cash flow so we're not even having to touch the cash in the bank to execute that buy up and we expect that to go up next year I agree with you by the way yes yes I agree with you buy the way that your stock is undervalued and with that we have just a couple minutes left here I have a couple more questions but maybe we'll see if there's anybody in the audience that wants to ask a question right now. Yeah. . Just sorry, the question was average SMB spend and. Average spend is not possible. Yep. Yeah. Average spent for our mid-sized customers is deep six figures, many, many hundreds of thousands Because it's, I think, approaching a little less than that per month. And then for the small business, it's new. But my current estimates are approximately about $15,000 a year for the smallest. But we're acquiring them at a much faster rate. Yes? How do you measure ROI? do we measure ROI from the platform yeah yeah so the key meant there are two key measures that marketers use for b2c marketers return on ad spend simple calculations is revenue driven by campaign divided by the cost what you spend and cost per acquisition what did it cost to to get them the technology to do that we call verified visits there's no clicks on a TV ad but there are many marketing channels that don't have clicks so we measure based on where we stream the ad the household and then any response on any other device from that household and we see that using tracking pixels which is common technology the key thing and that's what we call our identity graph which is being able to build identity graphs I think it's right now about 142 million households which which is nearly every household in America. And so that technology is the key. Our customers also, as they get larger, just even the small mid-market, they use our data. This is common across all channels, search, social, performance TV. They use Google's data, Mez data, for performance TV, they used our data, but they also use mixed media modeling tools from companies like North Theme and Rockerbox and multi-touch attribution. So all of these brands basically are trying to understand our view of the data, especially for creative, and then they're looking at their overall marketing contribution using third-party tools. And we integrate with 11 of those. So there's basically 11 key vendors, and we integrated with all of them. And with that, I think we're out of time. So, Mark, thank you so much. Thank you. It was a great session.