Good afternoon and welcome to the Digital Turbine Report's fiscal 2027 second quarter results call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Brian Bartholomew, Senior Vice President, Capital Markets. Please go ahead.

Thanks, Drew. Good afternoon and welcome to the Digital Turbine Fiscal 2027 Second Quarter Earliest Conference Call. Joining me today on the call to discuss our results are CEO Bill Stone and Interim CFO Josh Kinsell. Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward-looking statements. These forward-looking statements are based on our current assumptions, expectations, and beliefs, including projected operating metrics, future products and services, anticipated market demand, and other forward-looking topics. Although we believe that our assumptions are reasonable, they are not guarantees of future performance, and some will inevitably prove to be incorrect. Except as required by the law, we undertake no obligation to update any forward-looking statements. For a discussion of the risk factors that could cause our actual results to differ materially from those contemplated by our forward looking statements, please refer to the documents we filed with the Securities and Exchange Commission. Also, during this call, we will discuss certain non-GAAP measures of our performance. Non-GAAP measures are not substitutes for GAAP measures. Please refer to today's press release for important information about the limitations of using non-GAAP measures, as well as reconciliations of these non-GAAP financial results to the most comparable GAAP measures. Now I'll turn the call over to our CEO, Bill Stone.

Thanks, Brian. Good afternoon, everyone. I want to open my remarks by recognizing our team for delivering another quarter of strong results. The results are even more encouraging as they're not due to any single factor, but due to many different drivers. And while I'm pleased with the results, I'm even more energized about the future. Since our last earnings call, we've seen encouraging progress with our data and AI efforts driving incremental top-line results across both of our platforms. This momentum is enabling us to raise our revenue outlook for the remainder of this fiscal year by $20 million, which is more than the revenue beat of this past quarter. These proof points are giving us increased conviction to make additional data and AI investments to drive growth for next fiscal year and beyond. and I'm also pleased that we'll be adding another tier one operator win in the EU. And I'll break down these details plus others in my prepared remarks. First, summarizing the September quarter, revenue came in at $179 million, representing 27% year-over-year growth. We also achieved 46% year-over-year growth in adjusted EBITDA, demonstrating significant operating leverage in our model as we scale. In particular, I was pleased with the strong top-line performance from both our ODS and AGP segments, both delivering 20% or higher growth. I was also pleased with the improvement in our balance sheet that benefits from our strong results. Last September quarter, our net leverage ratio was greater than 4.0 turns. Today, we're at a healthy 2.3 turns, as implied in our increased outlook. We expect this positive trend to continue. And Josh will cover in his remarks This sustained improvement in operating performance provides ample opportunities for us to reduce our cost of capital and continue to improve our free cash flow conversion. If we break our results down by segment, our on-device solutions business generated $116 million in revenue in the September quarter, which was up 20% from last year. In particular, it was encouraging to see year-over-year growth in global devices and despite macro headwinds on global device volumes due to DRAM pricing issues in the supply chain. Revenue growth in international ODS continues to be a bright spot as the higher device volumes combined with higher revenue for device or RPDs drove approximately 50% year-over-year growth. Our application growth or AGP business results were another bright spot driving this strong quarter. was our fifth consecutive quarter of year-over-year double-digit growth and our third consecutive quarter of more than 40% year-over-year growth. Meanwhile, this compares to a global digital ad market that is growing in the high single digits. In other words, our AGP business is consistently growing many multiples more than the global industry growth rate each quarter and taking industry share from others. In the September quarter, our direct brand business outpaced our DTX or SSP business, both of which grew 40% year over year. It took longer than anticipated, but the combination of our strong conviction to stay the course on our strategy, combined with the hard work to integrate our legacy SSP tech stacks with our brand demand into a data-driven marketplace and AI-first platform is now paying dividends. Our key growth drivers were both rates and volumes, powering the improved performance in the September quarter. On rates, we saw higher advertising demand, which translated into improved pricing and fill rates, particularly for premium placements on our platform. This strong advertising demand drove international RPD expansion in our ODS business, resulting in over 50% international revenue growth year over year. We also have strong demand with our brand and DTX businesses, combining growth rates by more than 36%. This is due to our platform delivering better return on ad spend for advertisers, which in turn allows for higher rates. This improvement in ad spend is being driven by AI for two reasons. First, our platform's first-party data is able to leverage our AI tools and machine learning models to drive better advertiser outcomes. And secondly, as the tailwind, we are seeing brands migrate their spend away from the open web to other channels like apps, given traffic declines in the open web caused by AI and the resulting app usage growth as brands and agencies adopt the power of AI and the mobile app channel. In addition to these positive pricing trends, we continue to see strong diversification of our demand, with nearly 40% of advertisers spend on DTX coming from non-gaming partners. Our devices grew year over year, driven by strong volumes from our international partners. And within the devices, we have our technology integrated. We are seeing operators and OEMs wanting to use our technology on new screens for monetization. In addition, our AGP supply continues to add new publishers and apps by expanding distribution of our SDK footprint. We are seeing this globally with growth in publishers, but in particular, it's helping drive strong performance with APAC Publisher Supply, as well as adding non-gaming publishers and AI publishers looking for monetization. Turning to future, we're increasing our revenue guidance today for the fiscal year, and there are five drivers for this increased forecast. AI and data is the first one. And as I mentioned in my opening remarks, our ability to leverage our unique first-party data across our platform with DTIQ and our Ignite Graph describes better outcomes. and this in turn drives more revenue because of better return on ad spend for advertisers. Our progress here since the last earnings call has been noticeable and in particular the return on ad spend we are providing our customers is enabling more spend and growth of our top line. These improvements are almost entirely driven by our AI and first-party data efforts that are driving improvements in revenue per device on ODS and improvements on DTX and our performance advertising with our DSP. The second is our flywheel. Connecting our diversified demand and supply drives each other. We have more than 2 billion devices and more than 80,000 apps using our ad tech technology. The opportunity for these apps to drive more user acquisition to our platform and hence more monetization will be a growth driver. We're making solid progress here and we anticipate this will be a material growth driver for us in the future. Our third area is brand. Our brand business showed impressive year-over-year growth. Our focus is leveraging the macro tailwinds of more time and apps combined with our micro first-party data and audience targeting to drive even more scale and growth. There are a variety of product and operational improvements being implemented real-time that are improving our ability to scale this important part of the business. The fourth area is Ignite. Our international ODS momentum has been fueled by Latin America and Europe. I've been pleased with our ability to increase device volumes despite the macro headwinds due to DRAM pricing in the supply chain. We expect this trend to continue as we have our first dollars of revenue with Orange in this current quarter, the launch of incremental makes and models of new devices around the globe, and I'm also excited about a new partnership with a Tier 1 EU operator that we expect to launch in this current fiscal year. In addition, our Ignite platform is showcasing there's more opportunity to not just grow device supply, but also leverage the platform capability as a software enabler for the distribution of other products on the screens of devices versus just our products such as single tap, out-of-the-box setups, and notifications. We're doing this today in the U.S. with an AI-first partner distributing AI agents to devices, and we're expanding into other areas such as e-commerce, lock screens, rewards, and other forms of content distribution. And finally, it's the growth of alternative applications. We continue to ramp and scale more and more partners distributing their versions of applications, helping them get to devices, whether this is via our data and targeting, single tap, our DSP, and so on. And the recent outcomes of the Epic Google case and Google rulings in the EU are expected to open up even more opportunities for increased alternative distribution. Publishers are seeing real-time what is happening to their businesses because of AI impacts on the open web and want to have more control over their destiny for the future versus being reliant only on one or two sources of distribution. And these five things are important because it showcases our business is not relying upon any single factor to drive future growth. We have many shots on goal that provide optimism in our ability to drive top and bottom line growth. And AI is acting as a tailwind to accelerate these efforts across these dimensions as driving more insight, more efficiency, and leveraging our core strengths of data and distribution. And to close out my prepared remarks, I want to welcome Daniel Lenz to DT as our new CFO. I'm looking forward to leveraging not just Daniel's public company financial experience, but also his technology, operational, and back office experiences. I also want to thank our Chief Accounting Officer and Interim CFO, Josh Kinsell, for his leadership over these past few quarters. As evidenced by our business results, Josh ensured we had great continuity in our business and financial operations. and Josh will continue in his CAO role with Daniel's start date later this month. With that, I'll turn it over to Josh to take you through the numbers.

Thank you, Bill, and good afternoon, everyone. Let me turn to our second quarter fiscal 2027 results. We delivered another strong quarter with growth across both segments. Total net revenue for the quarter was $178.7 million, up 27% year-over-year, extending the sustained momentum. On-device solutions net revenue was $115.6 million, of 20% year-over-year. Growth was again driven by our international supply and incremental product offerings, even as global device volumes faced macro-advance from DRAM pricing in the supply chain. Revenue per device increased with expanded offerings and our strong demand strategy. Outgrowth platform net revenue was $63.5 million, up 42% year-over-year, our fifth consecutive quarter of double-digit growth Thank you for joining us today. Non-GAAP gross margin was 43% in the quarter compared to 47% in the year-ago period. Revenue share increased to 49% of net revenue from 45% a year ago, driven by product mix changes and revenue generated related to revenue share obligations. Other direct costs of revenue increased $2.3 million, primarily from higher hosting costs, bidding, and platform fees. Cash operating expenses were $37.6 million, down 3% year- over a year and down 5% from the first quarter, reflecting continued expense discipline even as we invest in our highest priority growth initiatives. Our year-to-date annualized run rate revenue per employee is over $1 million on an annual basis, up from $700,000 last year, showing our continued operating leverage and the use of AI to drive efficiencies across our overall headcount operating expenses. We anticipate making incremental measured investments in AI in the second half of the year, to drive our five growth initiatives and our long-term growth into the future. The combination of strong top-line growth and expense discipline, partially offset by higher revenue share from product mix, drove another quarter of substantial adjusted EBITDA growth. Adjusted EBITDA totaled $39.8 million, up 46% year-over-year, with EBITDA margin expanding approximately 290 basis points to 22.3% versus the year-ago quarter. On the bottom line, we reported GAAP net income of $10.3 million, or $0.06 per diluted share, compared to a net loss of $21.4 million, or $0.20 per share, in the second quarter of fiscal 2026. GAAP net income for the quarter also benefited from a $2.2 million non-cash gain from the change in our fair value of derivative liabilities related to our warrants and a $4.7 million gain on the sale of a dormant asset. On a non-GAAP basis, we generated net income of 23.4 million, or 18 cents per share, based on 129.2 million diluted shares outstanding, compared to non-GAAP net income of 16.5 million, or 15 cents per share, in the year-ago quarter. Moving to the cash flow and balance sheet, we generated 18.8 million of cash flow from operations in the quarter, up from 14.5 million in the second quarter of last year. Non-GAAP free cash flow was $10.5 million, an improvement of approximately $3.4 million versus the prior year period. For the first half of the year, non-GAAP free cash flow was $21.8 million, more than two and a half times the $8.4 in the first half of last year. We ended the quarter with cash and cash equivalents of $51.6 million, an increase of approximately $13.7 million from the start of the fiscal year. Total debt, net of debt issuance costs and discounts was approximately $353.6 million and includes $7 million of principal payments since the start of the fiscal year. This sustained improvement on our operating performance gives us opportunities to reduce our cost of capital and continue free cash flow conversion. We remain focused on continuing to further strengthen the balance sheet as we move through the second half of the fiscal 2027. Turning to our outlook. Given our strong first half and continued momentum we are seeing, we are raising our fiscal 2027 guidance for revenue and reiterating our EBITDA guidance. We now expect revenue in a range of $670 to $690 million for the year, up from the range of $650 to $670, and we reaffirm our adjusted EBITDA range of $145 million to $155 million that we provided last quarter. With that, let me hand it back to the operator. to open the lines for questions. Operator?

Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster. The first question comes from Anthony Stoss with Craig Hallam. Please go ahead.

Hey, guys. Bill, let me just get the else out of the room out of the way. You raised your revenue guidance but left your EBITDA unchanged. Can you maybe take us through in detail why that didn't get raised as well?

Yeah, I'll start, and then Josh can provide any color if I don't hit everything here. Yeah, I think for us right now, as I mentioned in my prior remarks, we've seen some really encouraging results on our performance advertising business since we talked last quarter. And as a result of that encouraging top-line performance, we're making some decisions as a business to think about the long-term and run the business based upon that to make some investments in data and AI, both in terms of people and systems. And so we're encouraged because we're doing this based on data. We're not doing this based on any hopium. and as you're well aware we have different businesses that have different profitability profiles, things like gross and net. So we want to make sure that we've achieved the first important thing which is return on ad spend for advertisers using these new things which is encouraging. That's step one. Now we want to scale it and we'll scale it with margins as we go forward in the future but we thought it was important to be prudent in our approach on the bottom line while we're scaling the top line right now because we're seeing encouraging results. Josh, you want to add anything else to that?

Yeah, I mean, I think you hit it right on the head. I mean, we obviously had very good growth in several of our gross businesses from a gross revenue perspective that drove sort of margins down. But ultimately, you know, we want to be measured in our investments across businesses. our business, and we want to do that to obviously accelerate the growth in the future in FY28 and beyond. Gotcha.

And then as a follow-up, you mentioned that Aranj is going live this current quarter. How long do you think it will take to ramp them and then also your new EU carrier win? I think you mentioned it's going to launch in the March quarter, but is it a similar product, similar opportunity in size for you guys?

Yeah, so as I mentioned, let's take the second one first. As I mentioned, it's a Tier 1 operator, and we already have a number of Tier 1 operators in Europe. So I've been really pleased with our progress there, because we've been at that for a while, that those agreements and things take time. And so very pleased with that. And we'll be launching different products with each of them. But as you know from following our business over a number of years, usually what you see is we start out with a few products and then a few markets, and then those grow and grow and grow over time with more devices, more markets, more products. So I wouldn't see either of those as material in our top-line guide for the back end of this fiscal year. But as we think about next fiscal year and we think about the growth drivers, those both will absolutely be drivers for us.

All right. Thanks, Bill.

All right, thanks, man.

Thank you. The next question comes from Dan Kernos with Stonex. Please go ahead.

Yeah, thanks. Good afternoon, Bill. I just follow up just on the investment question. Obviously, we're getting a ton of inbound on it. And I think the question is, as you think about the payback period of what you're doing, is it, you know, the systems need to be improved? Or is this a targeted growth opportunity? And, you know, as you think about what it could mean for an acceleration in Yeah, I think that we're extremely optimistic, and that's why we took up the revenue guide above and beyond our beats.

And I think if you think about kind of the phases of how things happen with our business, phase one is we've got to show that our data and AI can deliver good outcomes for advertisers. We've done that, check. Now the next phase of that is it can deliver incremental revenue, and we're doing that real time, and we're seeing that in our results, check. Now the next phase after that is ensure that you can optimize that and drive more and more Gross Profit Dollars, and obviously then EBITDA from that. And so that's the next phase for us. We want to be prudent and thoughtful in terms of how we guide it for that. But the first two things are the most important right now, and we're doing those, and then we can get to more optimization of it. But because we're seeing those encouraging proof points in our results, we made the decision that we wanted to make some incremental investments here to get after the opportunity because We believe that our unique first-party data and our distribution approach is something that we have that others in the space don't.

Got it. That's helpful. Thanks. And then AGP, I mean, still continues to significantly outperform where we, you know, where consensus is in both quarters now. It's slowing a little bit. We obviously have tougher comps. As we think about sort of just the health of just the broader market, obviously you guys are seeing a lot of demand. both DCX and Brand. I'm just curious as we think about next, non-gaming next, going forward, you know, where are some areas of optimism and, you know, should we anticipate a still higher elevated rate from AGP as we track through the rest of this year and into next?

Yeah, we continue to have a lot of optimism in our AGP business. We think a few quarters ago we turned some important corners, you know, with our ability to grow and scale and you're seeing that now happening on a sustained basis. I think there's a couple things that we'll continue to see those growth rates continue. Number one is some not very sexy types of things, but just some operational back office targeting types of activities on the brand business that are going to allow us to cast wider nets with our audience targeting on our data. is number one. And then number two is we're just seeing, I think, broader macro spend of brand dollars now coming into a mobile-first channel versus other channels such as the open web. So that gives us a lot of optimism on the brand side. On our VTX side, as you mentioned, our non-gaming continues to grow in a very healthy way. We're also seeing a lot more AI apps and agentic AI apps that want to leverage our SDK footprint internationally. So those are new opportunities for us to monetize. And we're also doing a much better job of leveraging the signals into our DTX platform with our own DSP as well as partnering with other third-party DSPs. And so all of those factors combined give us a lot of optimism around future growth of the AGP business.

Super helpful. And just last quick one on the new CFO. I know Daniel can't speak for himself, but obviously I imagine you went through a pretty exhaustive process to land here. You talked a little bit in your prepared remarks about what he brings to the table, but is there anything else you can add? I mean, you referenced kind of his tech background, so just anything that gets you excited about what he brings here that we can kind of anchor to. Thanks.

Yeah, sure. The first thing I want to do is recognize Josh. You know, it's been, you know, it's tough because I think we did not backfill the CAO role, so he's been doing double lifting here for six months, and I want to thank and recognize him for doing an amazing job and a lot of work, you know, to really navigate, you know, navigate things for us. So I really want to recognize first, you know, Josh for the job that he's been doing for us. As far as Daniel goes, Daniel is obviously a public company CFO. He's bringing public company CFO experience. Some of, you know, out there, I've already heard, you know him, and are familiar with him in his current role. So, obviously, we're excited about that. But for me personally, I'm probably most excited about just his breadth of business, operational, and back office capabilities. His current role as the CFO and the COO. So I think that not just bringing just the finance part of the job, but bringing the broader business and execution and back office type of things, I think is going to be really, really beneficial to the company. So excited to get him going and get him in here later this month.

Got it. Super helpful. Thanks, Bill.

Thank you. The next question comes from Richard Baldry with Roth Capital. Please go ahead.

Thanks. When you look into the accelerated growth on the AGP side, How much do you think of that as your own share-taking, what sort of internal initiatives, AI-driven data targeting, et cetera, versus a tailwind from dollars moving off of the open web and looking for more effective places to land?

Yeah, I think there's obviously a little bit of both there where seeing dollars migrate out of the open web is clearly a tailwind for our business at a macro level. We're seeing more and more apps in the app store. That's up by 30%. We're seeing more and more time spent in apps as people or apps are becoming critical to AI. So both those are macro tailwinds for our business. But I think that for us, the combination of having the data and the broad distribution footprint that we're seeing is something that's really attractive to advertisers that can deliver better outcomes. And as we're seeing is that those incremental dollars that are coming into ad tech, you've got to be able to deliver better outcomes, and those better outcomes deliver more and more dollars. There's a lot of acronyms in ad tech, but at the end of the day, it's about being able to deliver those incremental outcomes. return on ad spend and those that'll just generate more and more ad dollars in. And I think that's what we're seeing right now. And we're seeing a lot of nice retention from our existing advertisers and adding more. So it's a combination of both the macro and the micro.

Ben, if you look at the OpEx down 5% sequentially and some sort of ticking down, some of the investments you're going to make, are we still going to see OpEx for a down in places like DNA or R&D as you gain some efficiencies using and leveraging some new AI tools, etc.? ? and really will the focus on the investments be sort of more in the demand-driving areas?

Yeah, I think it's going to be more on the demand-driving areas, so things like direct costs, but also R&D costs. So, you know, not in the G&A, not in the sales and marketing, but more focused on investments and the AI space and data analysts and really putting our money there.

As you look at how much you've internally been able to adopt AI, we've seen some of our companies adding hundreds of basis points and efficiencies as both tools have really been pressed into service. How far do you think your adoption internally has been there? How much more is left to go under sort of current state of the technologies as they are?

Yeah, I think we're still in the early days of that. When we think about our AI investments, we think about it in three areas. We think about it in terms of just number one, automate and simplify, which is where your question is going. Number two, we think about the investments we're making to drive incremental top line and gross margin dollars. And number three are the investments that we're making more strategically to leverage distribution for other companies wanting to take advantage of their AI efforts. And so in terms of the first one where you're going with the automation and simplification, We're seeing very tangible results with that, and that's showing up in the OpEx dollars right now, and we expect to continue to see that show up on the OpEx dollars. And that will be partially offset by the investments that we're making, both in terms of data science, machine learning personnel, compute, our relationship to our third parties to scale the top line. So those things are kind of working against each other from an OpEx perspective, but ultimately we expect those over time to generate more and more EVA for the company.

Great. Thanks for your help.

Thank you. The next question comes from Matt Swanson with RBC Capital Markets. Please go ahead.

Hey, guys. This is Zimmerman from Matt Swanson. Congrats on the quarter, and thanks for taking our question. So first, for me, you talked about strong growth from both segments, and you spoke a bit about the AGP side. Anything to call out around ODS? in terms of revenue per device and international. And then I guess broadly, have the macros been pretty stable as to what you've been seeing 90 days ago? And then how we should think about the second half across these two segments.

Sure. Let me take the ODS question first. So we saw our ODS international growth up 50% year over year, and so we continue to see really solid growth there in terms of both growing devices which has been pretty difficult to do given the macro environment for just handset pricing and smartphone shipments. And there's a lot of macro data that you've all seen around that. So the fact that we're increasing our device volumes despite that is one of the drivers. But the real one is, again, back to data and targeting some of the encouraging results that we're seeing by delivering better outcome for our advertisers. And so that's allowing us to see better rates, and those better rates are really a big driver there for our ODS international business. So a real bright spot there for us. And with some of the things I mentioned in my prepared remarks, with our data AI investments combined with adding more devices from more partners around the world, we're optimistic we'll see that trend continue into the future. And as we think about the AGP side of the business, We expect to see continued growth in our brand business. We've got a lot of momentum there right now. And then, secondly, we expect to see growth in our DTX business as we continue to add a bigger and bigger SDK footprint combined with more and more of our own demand of ESP, which continues to be a bigger and bigger part of the traffic on our DTX, as well as other third-party ESPs.

That's super helpful. Thank you. And then just double-clicking on Ignite, can you talk about that a bit more and how you decide, like, which new signal categories to prioritize for the ML models and how you're thinking about it more thematically?

Yeah, so, you know, one of the things that is a really unique differentiator about our company are these first-party data signals that we get from Ignite. and then the ability to leverage those things that are deeper in the Android operating system to help use those signals. And so whether that's things like the packages or the apps that are on the phone and how long people spend on the devices, where the people are, the types of devices that they have, the apps that they're experimenting with and using, all of those factors allow us to have access to that first-party data that perhaps others in the ecosystem don't have. and as a result of that, you deliver better advertising outcomes for your customers. So Ignite is incredibly strategic in that regard. And then secondly, we're able to also use Ignite, as I mentioned in my remarks, not just for the signals to help our performance business, but also to deliver things other than apps. And so our Ignite as a platform business has been also another bright spot and growth driver within ODS for us as well. So partnering with other third parties to deliver things other than our own applications. So we'll see that as a growth driver for us as well.

Great. Thanks, guys. Congrats again.

Thanks. Thank you. The next question comes from Luke Horton with Northland Securities. Please go ahead.

Hey, guys. Thanks for taking the questions. Wanted to touch on the non-gaming now representing about 40% of the DTX ad spend. Just wondering if there's any sort of And then what sort of verticals are driving that diversification there?

But when you think about non-gaming, the thing that I like and get excited about is these are things that are not necessarily tied to energy prices and tariffs and things like that. A lot of these really index on digital services that people are using. And so that can be streaming audio, streaming video, social media, things like that. So we continue to see nice growth in that part of our business. Thank you very much.

One thing I want to add here is obviously the 40% of non-gaming is on the demand side. The supply side is actually quite a bit higher, which is an important factor and a differentiator for us. Okay.

Got it. And then just on kind of rate versus volume, the brand and DTX combined, I think you said over 36%. I guess going forward, what are sort of the expectations around rate expansion versus higher volumes just from a growth perspective?

Yeah, we're going to continue to focus on both. I mean, it's not really one or – it's not an or question. It's an and question. So we're going to focus on both, and we've got pretty aggressive plans on both sides of it. I think, you know, the thing for today and what we've seen over the last few quarters is both have been growing, but the rates have been growing better just because of our better execution against the data itself and now using the AI tools against it. So the combination of the data and AI is really driving more on the demand and rate side because as you deliver better return on ad spend for advertisers, they're going to continue to spend more money, and that allows you to have more competition and be able to charge higher pricing. So that's really the key there for us, and we're focused on both. But the rate side has been driving more of the results than just the supply side.

Got it. Well, thanks for taking the questions, guys. Thank you.

Thank you. The next question comes from Brian Kinselinger with Alliance Global Partners. Please go ahead.

Great. Thanks so much for taking my questions in the next quarter. Can you talk about what's driving the elevated growth rates on the AGP side for the last several quarters? And can customers measure the better performance using your first-party data and AI compared to other ad tech solutions? And if so, is there any quantitative details you can share?

Yeah, one of the great things about our business and our platform is that it's all data-driven. So if people are not seeing results and seeing performance, they're not going to spend it. If they're seeing results and performance, they're going to spend more. It's pretty binary like that. And so as we've now put up a number of quarters consecutively with pretty impressive growth rates, That's exactly what's happening is we're seeing better results from the platform, and that's been driven by AI. It's been driven by data. It's been driven by other targeting and other operational execution elements that are allowing us to deliver better outcomes for advertisers, and that in turn is driving better rates. So that's really the story there. And the thing about that is it's happening not just on the brand side, which we've talked about for the prior few quarters and it continues this quarter, but the real turnaround that we've seen since our last earnings call has been on the performance side. With our own DSP, we're seeing a lot better improvements there, and so that's something that gives us a lot of optimism to continue the growth in that part of the business for us.

Great. My follow-up, I may have missed it. I think you mentioned a new EU partner. Can you give us any details on the size in terms of customers, devices, countries, or any other relevant KPIs for this new customer?

Yeah, not yet. Stay tuned for more details on that. It's an exciting win for us. It's a proof point of what we're doing, and we're getting traction, and our international ODS business continues to be growing in a nice clip. And so, you know, with Orange and now this new partner plus our existing partners, We expect to see that continue into the next fiscal year for us. So we're really excited about it. And again, as I mentioned in my prepared remarks, they're going to be launching this current fiscal year. So it's not something that's way out in the future. It's something that we anticipate seeing some results in soon.

Okay. Thanks for taking my questions.

Thank you.

Thank you. This concludes our question and answer session. I would like to turn the conference back over to Bill Stone for any closing remarks.

Yeah, thanks all for joining our call tonight, and we'll look forward to connecting with you guys in a few months to update you on our fiscal 27 third quarter earnings call. Thank you, and have a great night.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.