Thank you for standing by, and welcome to the Second Quarter 2023 Conference Call and Webcast for System1. Joining me today to discuss System1’s business and financial results are our Co-founder and CEO, Michael Blend; and our Chief Financial Officer, Tridivesh Kidambi. A recording of this conference call will be available on our Investor Relations website shortly after this call is ended. I’d like to take this opportunity to remind you that during the call, we will be making 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 the registration statement on Form S-1 filed on April 13, 2022, in our Form 10-K for the fiscal year 2022, filed on June 6, 2023, and in our Form 10-Q for the first quarter of 2023, filed on July 3, 2023, as well as the current uncertainty and unpredictability in our business, the markets and the global economy generally. You should not rely on our forward-looking statements as predictions of future events. All forward-looking statements that we make on this call are based on assumptions and beliefs as of the date hereof and System1 disclaims any obligation to update any forward-looking statements except as required by law. Our discussion today will include non-GAAP financial measures including adjusted gross profit and adjusted EBITDA. These non-GAAP measures should be considered in addition to and not as a substitute for or an isolation from our GAAP results. Information regarding our non-GAAP financial results including a reconciliation of our historical GAAP to non-GAAP results may be found on our Investor Relations website. I would now like to turn the conference call over to System1’s Co-Founder and Chief Executive Officer, Michael Blend.

Thanks, Kyle. Good afternoon, everyone, and thanks for joining us on our Q2 earnings call. Tridi and I are glad to be able to speak with you about the business as our last opportunity was last November for our Q3 2022 earnings. We thankfully are now pass-through restatement issues we've been dealing with. We look forward to being able to provide upgrades to our public stakeholders on a regular basis. Now, the most common question we get asked by shareholders is whether we are seeing a rebound in digital marketing? So I thought I would start there. The good news is that we are no longer seeing the rapid declines that we experienced in the back half of 2022 and the first quarter of this year. The not so good news is that we continue to see volatility in the areas we focus on, specifically performance marketing. So at this point, we're not yet ready to call a rebound in the market, although we are cautiously optimistic. Now against that backdrop, let's talk about our second quarter. System1 delivered $147 million of revenue and $53 million of gross profit, which was up 12% sequentially. Our adjusted EBITDA was $14.6 million, which unfortunately did not deliver on our EBITDA guidance. The specific reason is that we were informed in late July that one of our network partners was terminated by one of our primary advertising partners. Tridi will go into more details on this, but as a result, we took an unexpected $3.3 million charge to adjusted EBITDA. On the subscription side, we had another strong quarter with the business acquiring more than 550,000 new paying subscribers. Net of churn, we increased our subscriber count from $2.6 million last quarter to almost $2.8 million at the end of this quarter. Our…

Thanks, Michael. Thank you everyone for joining us today. Overall, our financial results were varied with the subscription and network advertising businesses delivering year-over-year growth. But that growth was more than offset by year-over-year declines in our own and operated advertising businesses. That being said, we continue to be bullish on the future payback of the investments we have been making on our ramp platform throughout the past quarters, and believe we are poised to be at the forefront of a rebound in advertising marketplaces. Revenue was $147 million as compared to $220 million last year, a 33% decrease year-over-year. The year-over-year decrease is primarily driven by the owned and operated advertising business, which is down 51%, while network advertising revenue is up 3% and subscription revenue was up 18%. Adjusted gross profit was $53 million, down 21% year-over-year. Revenue less advertising spend for the owned and operated advertising segment declined 25% to $28 million, while subscription revenue less acquisition spend was down 22% year-over-year to $17.8 million versus $22.9 million last year. This was impacted mainly by increased marketing spend at $12.5 million year-over-year. Network revenue less agency fees was up 6% to $14.8 million versus $13.9 million last year. Continuing a trend we have been seeing throughout the year, both CPS and RPS, cost per session and revenue per session, were down sequentially. In Q2, RPS was down $0.01 sequentially to $0.09 per session, while CPS was also down $0.01 to $0.06 versus $0.07 versus the last quarter. As a result, we maintained our spread between revenue per session and cost per session at $0.03. On the network advertising business, RPS remained flat at $0.03 per session. Our subscription business performed well, with billings up 17% year-over-year to $54.2 million. Subscriber ARPU was $20 in the period, roughly…

Well, thanks, everybody, for joining us. We're glad that we're getting back into a regular cadence of communicating with you, and look forward to having you join us for our Q3 earnings call. Thank you. End of Q&A: