Q3 2024 System1 Inc Earnings Call Transcript
Key Points
- System1 Inc (SST) exceeded the high end of guidance on EBITDA, achieving $10.3 million, representing a year-over-year growth of 28%.
- The company's owned and operated products, such as Startpage, MapQuest, and CouponFollow, showed strong performance with revenue up 16% sequentially.
- System1 Inc (SST) has successfully integrated AI into its RAMP platform, enhancing the speed and efficiency of launching new marketing campaigns.
- The company reported a significant increase in international revenue, which now represents 35% of owned and operated revenue, up from 24% in Q3 2023.
- System1 Inc (SST) has managed to reduce operating expenses by 5% sequentially, demonstrating effective cost management.
- The marketing-driven business lines continue to face challenges due to volatility in the Google Search Partner Network, impacting revenue.
- Revenue per session and cost per session both decreased sequentially, marking the third consecutive quarter of declines.
- The company experienced a 17% year-over-year decrease in partner network revenue, highlighting ongoing challenges in this segment.
- System1 Inc (SST) decided not to provide Q4 guidance due to ongoing volatility and uncertainty in the advertising marketplace.
- Despite improvements, the sell side of the business remains a root cause of issues, with fluctuations in what Google pays for traffic sent to the Search Partner Network.
Thank you for standing by and welcome to the third quarter, 2024 conference call for System1. Joining me today to discuss System 1's business and financial results are Co-Founder and Chief Executive Officer Michael Blend and our Chief Financial Officer Tridivesh Kidambi. The recording of this conference call will be available on our investor relations website shortly after this call has ended.
I would like to take this opportunity to remind you that during the call we will be making certain forward-looking statements. This includes statements relating to the operating performance of our business, future financial results and guidance strategy, long term growth and overall future prospects.
We may also make statements regarding regulatory or compliance matters. These statements are subject to known and unknown risks and uncertainties that could cause our actual results to differ materially from those projected or implied during this call in particular those described in our risk factors included in our annual report on form 10-K for fiscal year
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