Part One: Performance Analysis

AdTheorent Holding Company, Inc. is a digital media platform that focuses on performance-first, privacy-forward methods to execute programmatic digital advertising campaigns. Its unique approach to ad-targeting is statistical, not individualized, and as a result, the company does not need to compile or maintain user profiles while not relying on cookies or user profiles for targeting. Per the company's report, it builds custom machine learning models for campaigns using historic and real-time data to predict future consumer conversion actions for every digital ad impression, which allows it to deliver real-world value for customers.

The company has reported impressive year-on-year growth due to its differentiated advertising capabilities and superior campaign performance, measured by customer-defined business metrics or KPIs. The company's predictive platform scores over one million digital ad impressions per second and 75 billion to 90 billion digital ad impressions per day, assigning a “predictive score” to each. That “predictive score” enables the company and its advertising clients to determine which ad impressions are more or less likely to result in client-desired KPIs.

The company's capabilities extend across the digital ecosystem to identify and engage digital impressions with the highest likelihood of completing customer-desired actions, including online sales, other online actions, and real-world actions such as physical location visitation, in-store sales, or vertical-specific KPIs such as prescription fills/lift or submitted credit card applications. Through this, AdTheorent allows advertisers to avoid wasted ad spend related to suboptimal impressions with a higher likelihood of being unviewable, unmeasurable, or not brand safe, among other factors. This reduces inefficiencies and ensures that advertisers receive maximum returns on their advertising spend.

Part Two: Forward Looking Analysis

AdTheorent's unique approach to ad-targeting and its focus on privacy-forward methods put the company in a strategic position as advertisers look to comply with the changing landscape of consumer privacy laws. This should help the company to maintain its upward trajectory, especially with privacy-forward advertisers who desire efficient and effective digital ad-targeting without individualized or personal targeting data. It is also a plus that the company is willing to take a consultative and collaborative approach to data use best practices with all of its customers.

As advertising continues to move towards digital channels, AdTheorent's expertise in programmatic digital advertising campaigns may prove to be very valuable to marketers. The company's capabilities extend to CTV, which provides reach and scale through innovative and industry-recognized machine-learning optimizations towards real-world actions and value-added measurement services. This is a growing space that is likely to drive continued growth for the company.

The management's forward-looking statements guide that uncertainties exist due to the inherent risks in the business environment. These uncertainties include changes in consumer preferences, technology advancements, competition, and regulatory changes. This means that investors should exercise caution when considering the company's future prospects. Still, with AdTheorent's proven track record of year-on-year growth, the company is well-positioned to continue to capture a growing share of the programmatic advertising market.

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Form 10-Q - Quarterly report [Sections 13 or 15(d)]

AdTheorent Holding Company Inc

AdTheorent: Programmatic Advertising with Predictive Analytics

AdTheorent Holding Company, Inc., a programmatic digital advertising leader, announced its first quarter financial results for 2023. The company reported a revenue of $32.7 million, a 4% increase from the first quarter of 2022, while its gross profit margin decreased from 48% in 2022 to 43% in the current quarter. Adjusted gross profit margin was 64% compared to 67% in the first quarter of 2022. The Adjusted EBITDA as a percentage of Adjusted Gross Profit was 2%, which represented a decrease from 5% in the first quarter of 2022.

AdTheorent's self-service platform saw strong adoption and generated a robust pipeline with media buyers seeking demand side platform performance, cost efficiencies, and transparency. AdTheorent launched 16 HABi campaigns that resulted in over-performance for customers. In addition, the company launched a new Product Catalogue that enables the advanced remarketing of products based on consumer behavior signals.

AdTheorent reaffirmed its full-year 2023 financial outlook, with an expected growth in revenue compared to 2022. However, macroeconomic factors beyond the company's control, such as inflationary pressures and recessionary fears, could impact AdTheorent's growth in 2023.

The company uses non-GAAP financial measures such as Adjusted Gross Profit and Adjusted EBITDA to evaluate its operational trends, financial performance, and make strategic decisions. AdTheorent's management believes that this information assists investors in understanding and evaluating the company's operating results in the same manner as its management and board.

In conclusion, AdTheorent reported incremental growth in its revenue and a resultant decline in gross profit margin and Adjusted EBITDA. However, the company remained optimistic and reaffirmed its full-year outlook, driven by continuous demand and new partnerships. AdTheorent remains a dominant player in programmatic digital advertising and continues to invest in innovation to sustain its competitive advantage.

Form 8-K - Current report - Item 2.02 Item 9.01

$ADTH reports Q1 2023 revenue growth of 4% despite declining gross profit margin and Adjusted EBITDA, reaffirms full-year outlook driven by strong demand and new product offerings.

Announcement: ADTH 8-K Special Filing

Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405]

AdTheorent's Machine Learning Platform Targets Privacy First at Scale

Current Analysis##:

AdTheorent, a digital media platform for programmatic digital advertising, uses machine learning and predictive modeling to organize, analyze, and deliver real-world value to advertising agency and brand customers. The solution focuses on non-sensitive consumer data to predict future consumer conversion activities and delivers superior campaign performance, measured by customer-defined metrics, which helps to drive customer adoption and growth.

Forward-Looking Analysis##:

AdTheorent's innovative machine learning-based targeting approach provides privacy advantages that are lacking from alternatives that rely on individual user profiles or cookies. This approach to digital ad-targeting has led to the development of the AdTheorent Health Predictive Audience Builder, a HIPAA-compliant method that delivers superior performance on campaigns targeting both healthcare providers and patients. With the trend towards privacy-focused ads, AdTheorent is well-positioned in the industry to deliver measurable real-world value for advertisers. The company's platform stays ahead of the game by building custom machine learning models for each campaign and provides customized vertical solutions to address the unique challenges and opportunities in a growing range of other verticals such as BFSI and retail.

Announcement: ADTH 10-K Annual Report

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Form 8-K - Current report - Item 8.01 Item 9.01