Overall, the advertising spend is going down because of the economical situation. And that is the only thing that we see that when we’re factoring and we’re saying all the core KPIs that we control are continued to do very strong. And — but the macroeconomic is such that we basically planned the budget — we planned against a flat year. And we took measures and are taking measures to make sure it’s a profitable year. So that under any circumstances, the plan is that we’ll have a better EBITDA this year, than last year. And this is all part in our journey to get to 30% plus EBITDA and we know we get a lot of questions in that. And this is why we’re committed even in this environment to keep and be profitable. And if the outcome is better from a top line as the company recovers faster than what we think as some of our peers, then it’s an upside.
Operator: Andrew, did you have any additional questions? The next question is coming from Shyam Patil of Susquehanna. Please go ahead.
Shyam Patil: Hey, guys, congrats on first year as public company. I had a few questions. First, in terms of the guidance, you guys just comes a little bit on it. I’m just curious, how are you guys thinking about the seasonality linearity of the guide by quarters, say, 2Q and 3Q? And how much of the outlook for the year would you say is, macro kind of what you’re seeing now versus other factors? And how much of it is — what you’re actually seeing here from customers versus kind of taking additional conservatism was up to that?
Zvika Netter: So I would address your second question first. Let’s start with the first one, it makes more sense. So, as you indicated, we saw software Q4 versus Q3, which is a very rare thing for this industry, right? If anybody knows, the advertise, definitely the TV advertising industry Q1 is the lowest, Q4 is the highest. And it’s kind of goes up and goes down and goes up and goes down for tens and tens of years. So it actually pretty predictable model. The — what happens since COVID, we started seeing different shockwaves in this and while 2021 was a normal cycle and 2022 started as a normal cycle and Q4 we started seeing a decline, and that’s why you saw difference between Q3 and Q4, which is a rare situation. And it’s after Q4, I believe, for the entire industry, not just Innovid.
So the questions, in terms of cycles, how do we, we are assuming that this year we’ll have “the seasonality will be normal”. So — because the economy, the macro economy is already impacting Q4, you see Q1, so based on our analysis and our budget and plan, we took that throughout the entire year in terms of the plan. So there’s an overall macro compression with the normal seasonality, if that makes sense. So, obviously, if, again, some people suggested that things will be better sooner, right. So then you’ll have another abnormal seasonality, where you have a weaker than normal for staff, let’s say and a stronger second half. We’re not saying that’s what we’re suggesting, but what we’re planning against is a normal seasonality on a weaker economy.
