Good afternoon. Thank you for attending the Quotient Technology first quarter earnings call. My name is Matt, and I'll be your moderator for today's call. All lines will be muted during the presentation portion of the call for an opportunity for questions and answers at the end. If you would like to ask a question, please press star one on your telephone keypad. I would now like to turn the conference over to our host, [Verenice Palinski]. Please go ahead. Thank you, operator. Good afternoon, welcome to our first quarter 2023 earnings call. With me on the call today are the company's CEO, Matt Krepsic, and Yuneeb Khan, our CFO and COO. The company's press release and earnings presentation have been posted to the IR section of the company's corporate website, investors.quotient.com. Before we begin, please note that during this call, you will hear forward-looking statements, including the guidance we will be providing for the company's second quarter and full year. These forward-looking statements are based on information available to and the good faith beliefs of the company's management team as of the time of this call and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. These forward-looking statements and the related risks and uncertainties are set forth in the earnings presentation slides located on the company's Investor Relations website. Additional information about factors that could potentially impact the company's financial results can be found in the risk factors identified in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K filed with the SEC on March 16, 2023, as amended by our 10-K/A filed with the SEC on April 28, 2023, and future filings and reports by us. We disclaim any obligation to update information contained in these forward-looking statements, whether as a result of new information, future events, or otherwise. Please note that operating expenses, gross margins, gross profit, and net income slash adjusted EBITDA financial measures discussed today are on a non-GAAP basis, each having been adjusted for the corresponding GAAP measure to exclude certain expenses. A reconciliation of GAAP and non-GAAP measures can be found in the financial results section of the press release and earnings presentation that we put out today on the company's website. With that, let me turn the call over to Matt. Good afternoon, and thank you for joining us on Quotient's first quarter 2023 earnings call. Joining me on today's call is our CFO and COO, Yuneeb Khan. Our first quarter results were in line with guidance ranges given across all metrics, including revenue, gross margin, adjusted EBITDA, and operating cash flow. In particular, I'm pleased with the strong momentum we demonstrated on profitability in the first quarter with positive adjusted EBITDA of $1.8 million versus a loss of $7 million in the prior year comparable period. First quarter results are reflective of the early stages of our transformation as we have shifted our business model from being a managed services agency to a technology-based solution designed to provide greater value to brands and retailers. This transition, as we have communicated in prior quarters, is intended to deliver a superior margin profile and scale Quotient relative to our legacy model. On the top line, promotions continued to deliver growth with our network performance becoming stronger. We saw our savings delivered grow by 22%, again, outpacing overall retail sales on promotions growth of 7.9% as reported by NielsenIQ, demonstrating our ability to capture share and expand our addressable market. In Q1, we saw the underlying fundamentals of our network and platform continue to strengthen with activators on our network up 15% year-over-year and redemptions up 14%. We believe that each of these internal key performance metrics demonstrate the positive momentum for our network as we grow the reach of our audience and we deliver results for brands. This, in our view, is creating a virtuous cycle with new brands, bringing new content onto the platform and engaging new consumers, delivering more savings and driving results. Looking forward, the strength of these internal indicators underlies our outlook for the rest of the year and are reflected in our guidance for Q2, where we begin to show top-line growth. From a macro perspective, we are seeing brands face pressure on volume as they begin to lap their price increases from last year as price sensitivity is creating headwinds for our consumers. As a result, we are seeing growth in content on our platform given our ability to programmatically deliver offers to consumers, increasing performance and reducing waste in promotion spend for brands. Content growth is reflective of our transition to a technology platform and our programmatic capabilities, where we can now more easily support new content for smaller brands, regional players, and new consumer purchase occasions. During the quarter, we also expanded coverage of our network to include the adult beverage category. If you recall, this expansion is one of our key strategic growth initiatives for the promotion business, driving revenues at higher margins. In our view, this expansion to a category that is incremental for consumers and complementary for our network and retail partners enables us to expand our addressable market and increase the monetization of our existing network. While we are still in the early innings of our business model transformation, I am pleased with the work our new Chief Revenue Officer, Allison Metcalf, has done to refine our go-to-market strategy with a focus on winning net new business. In Q1, we brought 92 net new brands onto our promotions network. Our pipeline growth is ahead of our historical norms, with particular strength in the promotions business. Turning to our media business. As you may recall, we have been executing a strategic pivot for this business with the in-housing of retail media and our transition from an agency-managed media model to an ad tech self-service product. We have successfully transitioned the cost-burdensome managed media business in 2022, with Q1 reflecting the new ad tech model for our media products as we become a technology partner for our retailers and a buying platform for brands. As we take this step forward for our media business, we are introducing gross billings this quarter as a leading indicator and key performance metric that is intended to provide transparency for our investors and demonstrate the utilization and solid momentum for the pivot of our media business to an ad tech product. Gross billings is an internal operational metric that provides a view on the utilization of our platform, our ability to capture share of the addressable market, and ultimately, our ability to convert that strength into revenue. Turning to Digital Out-of-Home, we saw our gross billings double in Q1, 2023 over the same period year ago, demonstrating the strength of our product, as well as showing the potential for what we believe is one of our core long-term growth drivers for Quotient. The Digital Out-of-Home market is expected to grow at 15% through 2025, according to eMarketer. This growth is driven by two trends. First, the digitization of the traditional out-of-home placements, secondarily, the digitization of the physical store. In-store audiences for retailers are 1.5x larger than their digital audiences, 90% of CPG transactions are still made in store. With access to over 500,000 screens, of which over 200,000 are in or around a physical retail store, our Digital Out-of-Home product is quickly becoming, in our view, the digital in-store product. We offer an industry-recognized demand-side platform that enables advertisers to programmatically reach consumers on digital screens wherever they are and wherever they shop. Quotient's self-service platform is designed for the unique opportunities of out-of-home location-based advertising that enables brands to reach consumers on the move during their path to purchase. As a testament to our capabilities, our Digital Out-of-Home business received nominations for Digiday's 2023 Media Buying and Planning Awards. We were named a finalist in the Best Digital Out-of-Home Campaign category, which recognized our successful campaign with the clothing retailer H&M USA, as well as the best multi-channel experience and the best digital media campaign categories for our summer snacking campaign with Mondelēz. This campaign was recognized for the power of taking an omnichannel strategy using multiple channels, including social, mobile display, and Digital Out-of-Home, to deliver a cohesive message to consumers across multiple touch points. Turning to the Retail Ad Network. In the quarter, we shared initial campaign results from our Retail Ad Network with our CPG pilot partners. These initial results were well received and speak to what we believe is the promise of simplifying the buying of retail media. This innovation is delivering on CPG expectations for performance while solving key pain points of supporting all retail media businesses. Looking to our future, as I mentioned briefly on our last call, in the coming years, we have a goal to return the business to a low-to-mid-teens growth rate, 60%+ gross margins, and 20%+ EBITDA margin. We believe, based on our current trajectory, we have a line of sight to achieving these targets by 2025. On the top line, we expect to achieve this growth rate through steady organic growth in our promotions product family and scaling up our strategic growth initiatives within our other product families, such as Digital Out-of-Home and Shopmium. On the promotion side, with the programmatic capabilities of our platform, we believe that we can more easily support new content for smaller brands, regional players, and new consumer purchase occasions, as well as new adjacent categories. Within Digital Out-of-Home and Shopmium, we are expanding the reach of our product offerings as we seek to capitalize on a growing TAM in these product areas. I spoke to some of the tailwinds we are experiencing in Digital Out-of-Home a moment ago. For Shopmium, we continue to build on the success of our European Shopmium app with the launch of Shopmium in the United States, growing our direct-to-consumer content by 23% in Q1 2023 versus the prior year. We continue to be excited about the monetization opportunities given early reads on user engagement levels in the app. On the profitability side. The work we did in 2022 to reduce our operating cost structure has provided, in our view, a path to a 60% gross margin and a 20% EBITDA margin by 2025. Achieving these targets will be dependent upon growth on our higher margin revenue initiatives and leveraging the fixed cost base. In conclusion, while Q1 results were within our expectations, our leading internal indicators are showing green shoots across the business, from the strengthening of our promotions network to the 92 net new brands and the increased gross billings through our Digital Out-of-Home DSP. The hard work of transitioning to a technology provider is progressing, and our financial fundamentals continue to strengthen. We are focused on driving organic growth while simultaneously expanding margins. I will now turn the call over to Yuneeb to review financials and guidance. Thank you, Matt, and good afternoon, everyone. My remarks today will be focused on our financial highlights. I encourage everyone to visit our Investor Relations page for all the relevant documents, including our GAAP to non-GAAP reconciliation. Our Q1 results demonstrate the work we started last year to strengthen the financial fundamentals of the company and our continued focus on improving our financial processes. In particular, I'm proud that we achieved positive adjusted EBITDA in first quarter of this year versus a loss posted in first quarter of last year, a testament to our focus on profitability, cost discipline, and efficiency. Combined with our solid cash and liquidity position, we believe we are well-positioned to continue funding our transformation and fueling our growth. Our first quarter revenue was $59.3 million, within our guidance range of $55 million-$65 million. This compares to $61.5 million of revenue reported in first quarter of 2022. Excluding the impacts of the winding down of our relationship with a large partner and our shift to net revenue recognition, these excluded items contributed $17 million of the $78.5 million of revenue that we reported in Q1 of last year. Promotions represented 80% of revenue in Q1. As Matt mentioned, our promotions business continued to demonstrate strength while media was impacted by a decline in managed services due to in-housing and our strategic shift away from low-margin managed services media products. Non-GAAP gross profit of $29.9 million resulted in a non-GAAP gross margin of 50% compared to 41% in Q1 of last year. Gross margin improvement was primarily driven by the adoption of net revenue recognition, a shift towards higher-margin products, and cost reduction actions, including efficiency-driven improvements to our operations and delivery functions. Our Q1 non-GAAP operating expenses were $31.4 million versus $41.2 million in Q1 of last year. Year-over-year decline in spending was primarily due to previously announced cost reduction actions as well as our disciplined OpEx management. Non-GAAP adjusted EBITDA in Q1 was $1.8 million within our guidance range of $1 million-$5 million and versus a loss of $7 million in the prior year. Turning to cash, our operating cash usage for the quarter was $6.6 million within our guidance range of a cash usage of $5 million-$10 million and improving by $19 million than first quarter of last year. The cash usage in 1Q is reflective of normal seasonality of certain cash outflows that happen in the beginning of the year as well as timing of certain known non-recurring payments. We ended the quarter with $44 million of cash and with our unused and available asset-based revolving credit facility. We believe we are well capitalized to meet all our cash needs. We continue to strengthen our cash management processes, leading to greater visibility into elements of our cash cycle and helping drive further optimization of our working capital. Turning to second quarter, I'm excited about the strong commercial momentum that we are witnessing across our promotions as well as our Digital Out-of-Home products, as Matt has pointed out. Our 2Q revenue guidance reflects this momentum and is supported by a pipeline that is trending ahead of seasonal norms. Further, we continue to see meaningful improvement in adjusted EBITDA, driven by our focus on growing higher-margin products and our proven cost performance. We believe it is important to emphasize that our revenue guidance for 2Q is also signaling an expected return to growth for our company, excluding the impact of a certain prior period revenue recognition item that we previously disclosed during 2Q of last year. For the second quarter, we anticipate revenue to be in the range of $67 million-$72 million, non-GAAP gross profit to be in the range of $34 million-$38 million, adjusted EBITDA in the range of $3 million-$6 million, and operating cash flow in the range of $0-$5 million. For full year 2023, we are maintaining our guidance. We expect revenue to be in the range of $275 million-$305 million, non-GAAP gross profit in the range of $145 million-$165 million, adjusted EBITDA in the range of $32 million-$45 million, and operating cash flow to be in the range of $10 million-$25 million. We estimate weighted average basic shares outstanding to be approximately 98.8 million. In closing, I'm very proud of our company's transformation journey so far and very excited about the positive momentum that is building up. In my view, we are laying solid groundwork towards achieving our long-term financial growth of revenue growth in the mid-teens, gross margin north of 60% and EBITDA margin north of 20%. We would now like to take your questions. Operator, can you please open up the line for Q&A? Absolutely. If you would like to ask a question, please press star followed by one on your telephone keypad. If for any reason you'd like to remove that question, please press star followed by two. Again, to ask a question, press star one. As a reminder, if you're using a speaker phone, please remember to pick up your handset before asking your question. We'll pause here briefly as questions are registered. The first question is from the line of Steve Frankel with Rosenblatt Securities. Your line is now open. Good afternoon. Can you start with the Digital Out-of-Home business and this buildup of billings? Maybe give us an idea of how important this business is to revenue in 2023 and how it ramps from there. Yeah. Hey, Steve, how are you doing? Thanks for the question. Digital Out-of-Home, it's certainly been a, it's been a growing part of our business or a growing part of our media business. It does represent a true ad tech take rate. When we look at the business here through the, I think through Q1, it does represent a, you know, I would say a good 50% of our media revenue, and we expect that to continue to kind of build throughout the year. Okay, great. On gross margins, I was anticipating it maybe would be higher gross margins this year, not quite to that 60% target, but making some good progress, this year. Your guidance seems to imply that there isn't as much lift. What's the dynamic there? Yeah. Hey, Steve. Yuneeb here. First of all, you know, the… As we've said in the past, the product portfolio is pretty healthy. The portfolio that we have right now carries pretty nice direct margins. The gross margin that you see right now is 50%. It's substantially higher versus where we were last time in the first quarter of 2022. The difference between what you saw in the fourth quarter versus what you're seeing in the first quarter is, you know, primarily related to the top line, the revenue number. Our revenue is $11 million short versus fourth quarter, which is normal seasonality that we have in the business. Underneath this are products which are pretty healthy when it comes to gross margin, high 70%, 80%. That is the reason why, you know, the gross profit declined, and, you know, you have less gross, less fixed cost of goods sold absorption in the first quarter. It's normal seasonality. It's in line with our expectations. It's within our guidance. This is something that we see kind of like, you know, leveling off as we progress through the year. Already you see the gross margin for second quarter to be trending higher than the first quarter, and as the revenue grows, we will see that gross margin percentage become better and better through the year. Like I said before, it's as per expectations, our guide for second quarter and total year reflects that. Because there are a bunch of CapEx, it's kind of hard to model. maybe give us an idea of where non-GAAP OpEx should be in Q2 and through the rest of the year. Yeah. so non-GAAP OpEx should be in line with, you know, what you're seeing in the first quarter. Slightly better, we expect in the second quarter, because in the first quarter you have, you know, some comp catch-ups, and a little bit of like, you know, incremental sales and marketing expense. It will be in the same zip code of what you're seeing, like, you know, in the first quarter. What about the back half of the year? Flat lines or is there room for taking more costs out of the model in the back half of the year? You know, Steve, There is always room to take off costs. Like, you know, OpEx monitoring is something that we have actually demonstrated in the last year as well. That's front and center of our financial management, you know, apparatus and strategy. We'll continue that drill. For modeling purposes for now we'll, I'll encourage you to, like, you know, keep it as straight line with like, you know, maybe a different revenue trajectory. Okay. Last question, Matt. On Shopmium, you know, where does that business have to scale to before you start sharing some metrics with us? I would say it's less about the scale of the business, Steve. It's more about us getting comfortable with those internal metrics and making sure we have proper benchmarks that both allow us to model it as well as to allow to share that metric out for you guys to model as well. I expect as we move through the year, we'll continue to kind of look at that, the growth of the overall reach of that business and start to look at the right, you know, metrics that we'll start sharing externally. Okay, great. I'll jump back in the queue. Thanks, Steve. Thank you for your question. The next question is from the line of Chad Bennett with Craig-Hallum. Your line is now open. Great. Thanks for taking my question. Just wanna verify, the mix in the, in the quarter. Did you indicate promo was 80% of the mix in the quarter? Hey, Chad. That is correct. Yeah. In the quarter, promo is 80% of the mix. Okay. Then, you know, just in terms of how we should think about that for the remainder of the year from a mix standpoint, I mean, it seems like promo certainly did better than at least we thought in the quarter, but maybe media was a little bit lighter than what we thought. Kind of expectations for mix for the rest of the year and, you know, maybe secondarily, you know, what to expect from the media business from this kind of run rate in Q1? Yeah. It's a good question. It's something that we're kinda keeping a keen eye on. When we think about the shift we made in the media business towards an ad tech model, we expect that to build throughout the year. We know the second half typically is a much stronger billings period for us, I can see that in some of the historical data we provided. We expect that to probably as we have progressed through the year, media will certainly move up on mix. Promo, it's been very strong in Q1. We certainly see some strength in Q2, just looking at the savings delivered we had out there in Q1. I would say, you know, gradually we'll see some probably faster growth rates with media off this baseline, but I think that mix will progressively become more balanced as we move to the back half of the year. I think we'll still probably be in that range of 70/30, but I would say still early innings to see how that evolves. Do you think just on the promo side, Matt, from everything you're seeing and just kind of the macro data points on CPG, you know, to kind of price elasticities and kind of, you know, annualizing on price increases and volume decreases and so forth? I mean, you know, we typically look at that business kind of seasonally throughout the year. It seems like this year, you know, I hate to say or, you know, fearful to say could be different, but that almost you'll, regardless of traditional seasonality, that promo biz should kind of improve sequentially every quarter throughout the year. I don't know that anybody has visibility in the fourth quarter, but just wondering how you think about the seasonality of that business relative to, quote-unquote, normal years? I mean, the way we're thinking about our guide for the year at this moment is we're still kind of taking into account traditional seasonal patterns. That being said, you are correct to point out that there are some positive tailwinds out there in the macro environment for us, right? Inflation levels remain elevated, which means we're seeing a lot more consumer engagement and demand for our offers, which is why we see our savings delivered grow. We see CPGs facing a lot of pressure on volume, certainly seeing some positive tailwinds there as they look to kind of leverage more of a digital promotion, which can be targeted and programmatic to help them move volume and move units more efficiently and more effectively. It does give us, as we look forward, certainly some green shoots towards where we see this business and this year could be a could become a unique year for us. I would say we're still early in the year on that one. We see certainly strong momentum in quarter two for our promo bookings, and we continue to kinda track that into Q3. We're certainly way ahead of the curve to kind of predict and see where Q4 would land, but I think it's certainly something that's on the table, and I certainly would say the macro and industry tailwinds are in our favor right now. Just kinda more broadly, Matt, just on how you view the platform today, the promotion platform or network, if we do see a comeback in trade incentives and spend from CPGs, just kinda where Quotient is positioned from a market share standpoint to capture that spend versus, you know, historical time periods? Thanks. Yeah. It's a good question. I would say our network today, as we shifted to that network model, the publishing partners we added last year, we have more reach today of consumers than we ever have as a company and as a platform. We think that gives us a unique opportunity to continue to help brands deliver savings to the American consumer across all possible touch points, whether that's through their retail loyalty apps, whether it's through one of our publishing partners, whether that's through their favorite, you know, shopping list app. You know, we've really become very agnostic and shifted our network to truly be a promotional ad server, allowing us to deliver savings to consumers across, you know, multiple touch points and however they shop. I think that gives us a very strong position to continue to help brands, move volume and help consumers save. Got it. Thanks much. I appreciate you taking the questions. Appreciate it, Chad. Thank you for your question. There are no additional questions waiting at this time. I'll now turn the conference back to Matt Krepsic for closing remarks. Thank you all for joining us today on our Q1 results. We look forward to continuing to update you on our progress in the near future. Thank you. That concludes the conference call. Thank you for your participation. You You may now disconnect your lines.