Q4 2022 Tremor International Ltd Earnings Call
Speaker 2: Welcome to Trenimer International's fourth quarter and year ended December 31, 2022 conference call.
Speaker 2: At this time, participants are in a listen-only mode with a question-and-answer session to follow at the end of the presentation.
Speaker 2: This conference call is being recorded and a replay of today's call will be made available on the Investor Relations section of Tremors website.
Speaker 2: I will now hand it over to Billy Eckert, Senior Director of Investor Relations, for introductions and the reading of the Safe Harbor Statement.
Speaker 3: Please go ahead.
Speaker 4: Thank you, operator. Good morning, everyone, and welcome to Trummer International's fourth quarter and year ended December 31st, 2022, Erding's call. With us on today's call are Oprah Drucker, Trummer's Chief Executive Officer, and C. E. Meary, the company's Chief Financial Officer.
Speaker 4: This morning we issued a press release which you can access on our website at investors.tremmerinternational.com.
Speaker 4: During today's conference call, we will make forward the achievements. The statements other than statements of historical fact could be deemed as forward looking.
Speaker 4: We advise caution in reliance on forward-looking statements.
Speaker 4: These statements include, without limitations, statements and projections about our anticipated future financial results, including discussions about our revenue margins, expenses, and guidance for full year 2023, as well as future business.
Speaker 4: anticipated benefits of Tremor's strategic transactions and commercial partnerships, anticipated features and benefits of Tremor's products and service offerings, Tremor's positioning for future growth in both the US and international markets in 2023 and beyond, Tremor's implementation of a substantial share repurchase program while also continuing to evaluate strategic opportunities.
Speaker 4: to acquire companies and invest in technology, product, sales, and marketing to further expand the platform.
Speaker 4: Tremors medium to long-term prospects, management's belief that tremor is well positioned to benefit from anticipated future industry growth trends and company-specific catalysts. The potential negative impact of inflationary pressures, rising interest rates, geopolitical and macroeconomic uncertainty, recession concerns, and widespread global supply chain issues that have limited advertising activity, and the anticipation of these challenges could continue to have a
Speaker 4: to a significantly larger customer base and addressable market, the timing to complete the technology integration of a MOBI and other statements concerning the expected development, performance and market share are competitive performance related to a products or services.
Speaker 4: All forward-looking statements are based on information available to us as of the date of this call.
Speaker 4: These statements have gone known in unknown risks on certainties and other factors that may cause our actual results to differ materially from those implied by these forward working statements, including unexpected changes in our business.
Speaker 4: More detailed information about these risk factors and additional risk factors are set forth in our filings with the United States Security and Exchange Commission, including but not limited to those risks and uncertainties listed in the section entitled Risk Factors in our most recent annual report on Form 20-F. Trevor does not intend to update or alter its forward-looking statements.
Speaker 4: Whether it is a new information, future events are otherwise except this required by law. Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in IFRS and non-IFRS terms. We refer you to the company's press release for additional details, including definitions of non-IFRS items.
Speaker 4: and reconciliation of IFRS to non IFRS results.
Speaker 4: At this time, it is my pleasure to introduce Ofer Jr. CEO of Jemmeran International. Ofer, please go ahead.
Speaker 5: Thank you, Billy, and welcome to everyone joining us today. I will begin by providing an overview of our results in strategy, and then we'll end over the course to our CFO's Aginieri to discuss our financials.
Speaker 5: We will then open the call for questions.
Speaker 5: Results for Q4 include contribution from Amorby and full EU 2022 results.
Speaker 5: include contribution from a mobile for the September 12th 2022 to December 31, 2021.
Speaker 5: Following record of Danny Groes in 2021, we continue to deliver strong results in 2022.
Speaker 5: highlighted by significant market share expansion and above average growth rates within CTV.
Speaker 5: We were able to achieve this result while executing a strategic acquisition and investment that strongly positioned the company and its customers for future success despite continuing challenging market conditions that weighed heavily on advertising demand throughout 2022.
Speaker 5: In the fourth quarter, we generated record contribution X-Tex of $100 and $3 million, reflecting 16% Eurover E-Groat, as well as record full-eared contribution X-Tex of $309.7 million, reflecting 3% Eurover E-Groat.
Speaker 5: We achieve this growth while remaining focused on generating high level of cash flow and profitability, which we find the even more important in our certain market.
Speaker 5: We strongly believe operational efficiency driven by our end-to-end technology stack.
Speaker 5: is a strong competitive advantage in differentiating.
Speaker 5: It position us well to better periods of advertising certainty and provide flexibility to invest in our platform to drive future growth and innovation.
Speaker 5: For both Q4 and full year 2022, we achieved our most recent adjusted EVDA target.
Speaker 5: generating $36.9 million and $144.9 million of adjusted divider respectively.
Speaker 5: For the full year we generated adjusted dividend margin of 43% as a percentage of reported revenue and 47% as a percentage of net revenue.
Speaker 5: These results are particularly impressive as we invested significant management and combined team efforts acquiring and integrating a MOBI which operated at the loss when we closed the acquisition in September .
Speaker 5: In addition to generating record net revenues and strong profitability, we continue to grow our share within CTV as what we believe to be rates faster than several competitors in the industry.
Speaker 5: This outperformance in 3 TV highlighted our strength and resiliency in the segment and was driven as a direct resource of our intentional strategy to emphasize and invest significant resources in 3 TV related product development over the last several years.
Speaker 5: We believe this ongoing emphasize on growing and expanding our capabilities within CTV. We will provide the company and its customers with increasing advantages.
Speaker 5: on growing and expanding our capabilities within CTV will provide the company and its customers with increasing advantages over time.
Speaker 5: In Q4 we generated record CTV spend of 99.6 million dollars reflecting a significant yield over a growth of 59%.
Speaker 5: For the full year, we generated record city dispens of $283.6 million reflecting 41% growth compared to 2021.
Speaker 5: The TVN programmatic activities has been and will continue to be primary focus and growth drivers for the business.
Speaker 5: We strongly believe advertisers seeking solutions with CCTV will continue to favor end-to-end tech platforms.
Speaker 5: as they provide added costs and data advantages compared to one-sided solutions.
Speaker 5: provide added costs and data advantages compared to one-sided solutions and better optimize the supply
Speaker 5: which other major edtech companies are increasingly echoing.
Speaker 5: We have observed several companies across the industry investing more and more resources into SPO, while intentionally rearranging their operations.
Speaker 5: to more closely mirror an M2N business model.
Speaker 5: While these companies are moving to operate end-to-end at the business level, we take a step further as we are supported by our end-to-end technology platform which provides the company with what we believe to be a massive advantage that can assist us in growing our market share over the coming years.
Speaker 5: In addition to having even stronger conviction in our end-to-end tech and operating model, in 2022 we further enhance our programmatic capabilities and CTV data and video offering through the acquisition of a mobile and investment in Vida.
Speaker 5: Amurvi is significantly in air and further differentiated our technology platform through the addition of important TV capabilities.
Speaker 5: including TV planning, new course planning and segmentation. We believe this newly added capabilities.
Speaker 5: Strongly enhanced the company positioning, as linear TV and TV continue to converge. And as an advertiser and agent with, increasingly thick solution that enabled them to more effectively plan and deploy spend because both linear and digital.
Speaker 5: Recent technology and development in the advertising ecosystem, as well as ongoing uncertainty in the advertising environment, and driven customers to be more prudent data-driven and strategic in how they plan, campaigns and deployments to achieve their KPIs.
Speaker 5: Customers are consolidating, budget and spend.
Speaker 5: with fewer advanced tech platforms that can deliver data-driven solutions across planning and activation, enable approved returns on expense and better position them to react and adapt quickly to rapidly changing industry conditions.
Speaker 5: The linear TV planning feature added to our MOBI, combined with our pre-existing strengths and variety of data capabilities within CTV and in-house SSD, enable us to create a new and unique technology to plan campaigns across both linear TV and CTV CMOS-DAR-MST.
Speaker 5: We believe this is the first of its kind technology that has massive potential in the market and that is the perfect time for this tech to be integrated into our ecosystem to capitalize on current trends within the industry.
Speaker 5: As Ed supported streaming continued to grow and as linear TV broadcaster.
Speaker 5: Increasingly expanded into CTV, we believe cross-planning is becoming strategic and vital to agency's environment. This technology enabled partners to reduce the duplication that occurs when presenting ads on both formats to the same user to better understand true reach. While that technology increased our CTV capabilities, it also...
Speaker 5: market and CTV advertising at the moment. We believe well over 50 billion dollars per year is spent advertising on linear TV in the US versus approximately 20 billion dollars per year in CTV in the US currency. Our new linear TV and cross planning capabilities has already entirely better for?umoffensive.com.
Speaker 5: leading broadcasters and agencies, and I'll offer in try to those seeking to leverage our cost-planning tools.
Speaker 5: We are encouraged by early science, the DISTecology, increases the willingness of major broadcasters and agencies to evaluate our tech solution, as well as the likelihood of those broadcasters and agencies adopting offering across our end-to-end tech. We have optimism to the tool and in answer relationship with large broadcasters.
Speaker 5: will not only enable us to effectively access the linear TV market, but will also drive more CTV space across our platform as advertisers seek solutions to help them plan and execute campaigns across both linear and digital.
Speaker 5: Other times, we will work to own both more partners and encourage those partners to adapt more of our products while also seeking to gain increased level of spend and budgets from those partners to deploy across our ecosystem.
Speaker 5: In addition to the important new planning capabilities, we gain a mobile also significantly enhance our Omnichannel Enterprise, self-serve DSP, display and performance media buying capabilities as well.
Speaker 5: The acquisition also added financial scale and increased demand from the significant number of new global brand and agency customers.
Speaker 5: who we are excited to be working with. Since concluding their acquisition, we have made a significant progress in quickly combining the companies.
Speaker 5: Reconcorded management sales, marketing, product and R&D teams, improving efficiency while saving approximately $50 million in annualized operating costs.
Speaker 5: The integration of new CIS team member and getting everyone cross-strand on our product ecosystem took slightly longer than anticipated.
Speaker 5: However, we believe the teams are now fully integrated and we have confidence that the combined team is prepared for success going forward.
Speaker 5: We will remain focused on generating further cost saving by consolidating tech and vendor fees.
Speaker 5: as we were told, combining the Tremel video and AmobidSPs into one enhanced platform.
Speaker 5: We continue to expect to achieve $65 million in total annualized operating cost images.
Speaker 5: Attribute those to acquisition and to mostly finalize the tech integration by the end of H1 2021 23.
Speaker 5: Upon completing the integration, we believe we will have one of the most comprehensive, efficient and shared CTV and video focus end-to-end platform offering in the open market.
Speaker 5: Our platform will also further be distributed through our relationship with Iceland and strategic investment in Viga, which we believe will further support our growth and leadership position within CTV for years to come.
Speaker 5: In mid-2022, we invested 25 million dollars in Vida, a small TV operating system and streaming platform and subsidiary of ICCI.
Speaker 5: This investment created a powerful partnership with one of the fastest growing global CTV operating systems and one of the largest and fastest growing TVOM brands while further using M?less phone to stop 183Gl flexing cable Uber Onlineapse and Night scooter replacement 2019.
Speaker 5: Over the past several months, VDA has made significant progress growing its global market yield. VDA has recently driven increased adoption by several additional smart TV brands and major CTV partners.
Speaker 5: We also believe VITA now delivers a wide variety of major U.S. S-word services and streams on average of roughly 1 billion hours of content per month.
Speaker 5: Vida also recently announced the launch of Vida3, its streaming app offering video-on-demand, live-linear, fast and edge-supported content which will be available on millions of Vida-powered small TV from i7. Vida3, currently live in the US state.
Speaker 5: with plans to expand globally later this year.
Speaker 5: As we like people into channels like Roku Channel continues to scale and as we are on board additional extra-ported content in the future we expect increasing benefits from the Ebola Dilection Exhibit in the US, UK, Canada and Australia, we gain through our investment.
Speaker 5: Vita parent company Isense which also owned the Toshiba small TV brand has also recently achieved major success and recognition.
Speaker 5: and growing its global smart TV distribution.
Speaker 5: According to ABC Rebels, I sense rose to number one in the world for monthly global multivit shipment for the first time during December .
Speaker 5: As ISENS continues to grow share in the global smart TV market, our exclusive right to distribute VEDA global ACR data gained through our VEDA investment should provide increasing benefits and become even more desirable to those seeking this dataset for TVT targeting and measurement.
Speaker 5: I can't emphasize enough how unique our access to this data is as most other major smart TV OEMs monetize ACR data in-house. While other tech companies in the open internet may have limited access to ACR data, we don't believe any of our peers have global exclusivity like we do.
Speaker 5: with one of the fastest growing global city brands. As we look ahead, we expect our investment in feeder will begin generating meaningful revenues for the company starting in late 2023 and beyond.
Speaker 5: We also continue to invest in our share repurchase program, during the fourth quarter to drive what we believe will be added long time value for our shareholders.
Speaker 5: In Q4 we repurchased approximately 3.1 billion ordinary shares reflecting an investment of 9.5 million pounds or 11.3 billion dollars. For full year 2022 we repurchased approximately 16.9 billion ordinary shares or roughly 11% of share outstanding.
Speaker 5: reflecting a total investment of approximately £70 million or $86.2 billion.
Speaker 5: Two chairs remain at discounted levels. We will seriously consider extending the program or authorizing new programs to take advantage of the evaluation of utility once the current program is finished. In addition, we continue to generate increased momentum and adoption across tremol video and on woundings.
Speaker 5: During your fall, I'm really at 87 new supply partners.
Speaker 5: in fall and really added 87 new supply partners including 56 in the US.
Speaker 5: For all of 2022 and only added 319 new supply partners including one other than 16 the US.
Speaker 5: During Q4, Dremel Video added 42 new advertisers customers and 233 for all of 2022.
Speaker 5: across retail, political, CPG travel and automotive verticals as well as others.
Speaker 5: Finally, we intend to repress the company and consolidate our brand portfolio and the one name later this year.
Speaker 5: We believe this will enhance our commercial focus and better convey the holistic value proposition of our unified end-to-end technology stack in the market for the company's next phase of growth.
Speaker 5: With that, it is now a pleasure to turn the call to the second. Thank you, Ofer. Today we will review highlights and key financial and operational drivers of our Q4 and FULIU 2022 performance. As a reminder, Q4 results include contributions from a mobile, while FULIU results include contributions from a mobile for the September 12th, 2015.
Speaker 6: alongside Q4 adjusted the bidat of $36.9 million compared to $54 million in Q4 2021 in line with market expectation.
Speaker 6: We also generated record programmatic net revenue of $94.5 million in Q4, reflecting E-rover E-R growth of 27%.
Speaker 6: During the quarter, we saw improvement in advertising demand environment compared to PUE3, particularly when compared to July and August .
Speaker 6: However, macroeconomic challenges continue to impact advertising demand across several verticals and formats, most notably in December and the only day shopping and advertising season wasn't as strong as we've seen in prior years.
Speaker 6: Additionally, the US meter-melection cycle and 2022 FIFA World Cup didn't generate significant revenues for the company during the fourth quarter. From a vertical perspective, we saw advertising spend in Q4 increase year-over-year in industries such as automotive entertainment, food, retail.
Speaker 6: sports and political, well vertical such as CPG, personal and consumer finance, fashion, electronics and other sectors tied heavily to consumer discretionary spending, so advertising spend the client-earover-ear during through-four.
Speaker 6: Importantly, despite the macro backdrop continuing to impact the overall advertising demand environment, we continue to significantly expand our market share within CTB, generating record CTB spend on our platform in the fourth quarter.
Speaker 6: CTV spend on our platform increase to $99.6 million in Q4, reflecting 59% euro over e-groped, compared to CTV spend of $62.5 million during Q4 2021.
Speaker 6: Video, including CTV, continues to account for an overwhelming majority of our Q4 and full year 2022 Nash revenues at 73% and 79% respectively.
Speaker 6: Our ongoing focus on CTV and video was further enhanced through the acquisition of Amobi, Investment in Vida and Integration of Spirit, positioning us very well to continue expanding our market share in these fast growing segments of digital advertising.
Speaker 6: Additionally, as training services continue to launch new et-supported deals and advertisers increasingly transact programmatically, we feel that we are indexed.
Speaker 6: to some of the fastest growing parts of the market.
Speaker 6: with scale and ability to service customers across their entire workflow. We also continue to generate strong margin during our first full quarter of being combined with a mobile, which was a lot-making business when we first acquired the company.
Speaker 6: In Q4 we generated an adjusted EBDA margin of 34% on reported revenue basis and 36% on a net revenue basis.
Speaker 6: As we continue to integrate the company, we expect to incrementally drive margin back towards historical levels over time.
Speaker 6: For full year 2022 we generated record contribution extract of $309.7 million on dollars compared to $300 and $2 million in full year 2021.
Speaker 6: which was in line with market expectations. We also generated record programmatic net revenue in 2022 of $274.4 million, which reflected 3% growth compared to 2021.
Speaker 6: The company also drove records annual city-vistance of $283.6 million, which reflected 41% year-over-year growth from the $201 million of city-vistance generated in 2021.
Speaker 6: In 2022, CTV spend reflected 39% of total spend and 42% of problematic spend.
Speaker 6: During full year 2022, we also generated a adjusted EBITDA of $144.9 million in line with market expectations compared to $161.2 million of adjusted EBITDA in 2021.
Speaker 6: For full year 2022 we generated an adjusted EBITDA margin of 43% on a reported revenue basis and 47% on a net revenue basis.
Speaker 6: We will continue to remain acutely focused on generating high levels of profitability as we believe this enables us to invest in our platform to drive future growth and technological innovation while also positioning us strongly to opportunistically invest in our shares at discounted valuation levels to generate added long-term value for shareholders.
Speaker 6: We also achieved a net retention rate of 80% during 2022, while the company net retention rate declined year-over-year largely due to lower standards by advertising customers in planning.
Speaker 6: The company was able to increase its active customer base. Turning to our cash flow, we generated net cash from operating activities of $23.9 million during Q4 2022 versus $48.7 million in Q4 2021. For full year 2022, we generated net cash.
Speaker 6: $9 million in one-time severance and retention bonus related costs.
Speaker 6: Associated with the reorganization of a mobile employees into the tremor international base, and again, maintain their particular focus on retaining sales, marketing, technology, and product talents during the consolidation process to further the combined companies go to market and technology strategies. In addition, we currently expect our 2023 Sherbet compensation.
Speaker 6: Incentive Grants, we may be required to incur higher cash-based compensation charges to replace Employee Equity Incentive Grants in order to continue to attract and retain talented employees.
Speaker 6: As of December 31st, we had 115.5 million dollars net cash, as well as 80 million dollars and drawn on our revolving credit facilities, providing ample liquidity for the ongoing needs of the business, as well as for future potential strategic investment and initiatives. During the fourth quarter of 2022, we experienced...
Speaker 6: 85% free cash flow conversion and for a full year 2022 we experience free cash flow conversion of 96%.
Speaker 6: Non-IFRS diluted earnings per ordinary share was $0.15 or Q4 2022 versus $0.27 in Q4 2021.
Speaker 6: and 60 cents for the 12 months in December 31, 2022, versus 83 cents for the 12 months in December 31, 2021. Finally, I now turn to our outlook.
Speaker 6: Global macroeconomics uncertainty which negatively impacted the advertising industry throughout 2022 has continued to drive challenges for Tremor, its global customers and its partners to this point in 2023.
Speaker 6: We saw the advertising environment significantly softened during the month of December and January and into early February , but we observed potential signs of recovery and stability in the market since that time. However, due to these ongoing challenges, driving continued advertiser uncertainty.
Speaker 6: We expect global advertising to remain constrained during age 1, 2023, and potentially longer. Although we do not anticipate at this time for advertising demands to weaken to the soft level observed in late 2022 and earlier in 2023.
Speaker 6: As a result, we are lowering our full year 2023 contribution extract outlook to approximately $400 million and our 2023 adjusted EBITDA outlet to be in the range of approximately $140 million to $145 million.
Speaker 6: Despite this lowered annual guidance, we believe the company will experience incrementally proven to results in age 223, driven by anticipated positive effects of completing the integration of a mobile.
Speaker 6: expected meaningful revenue benefits from the company's investment in Vida, which we believe will begin in late 2023, and expectations for tempered improvements in the global advertising demand environment.
Speaker 6: In 2023, we believe revenue tied to our core business focused on programmatic activities will grow approximately 5% on a combined performance basis, while revenue in our performance business is expected to decline year-over-year.
Speaker 6: Despite Newton Challenges, we believe our deepened footprint within CTV, video and data, powerful partnerships and newly enhanced and differentiated tech capabilities, position us incredibly well for future growth and market share games.
Speaker 6: We also believe our efficient end-to-end operating model enables us to generate healthy levels of cash and profitability, offering us the flexibility to opportunistically invest in further tech enhancement and platform differentiation.
Speaker 6: To more strongly position the company for when market and advertiser condition improved I'm incredibly excited for the company's positioning within the industry and the recent milestone we've achieved and believe our future looks bright With my remarks completed, I'll turn the call back to author
Speaker 5: Thank you, Sagi. 2022 was an incredible year.
Speaker 5: We significantly grew our CTV market share and maintain our focus on generating strong cash flow and profitability while in ending our tech capabilities to drive further growth and add a long-term share on the value.
Speaker 5: The added scale, tech, data and cross planning capabilities, GEN2A mobile, as well as the exclusive global ACR data rights and an aid monetization of specificity GEN2A is investing in data, also in ends our end-to-end platform in a meaningful way.
Speaker 5: Our differentiated ability to provide solutions across planning, data, activation and media puts us on a very short list of providers that can benefit brands, agencies, broadcasters and city-wing partners and enable them to achieve their KPIs in ways no other single vendor came.
Speaker 5: We remain excited for calming enhancement to our platform and unifying our brands, which we believe will further solidify our position as a leader in the linear TV and CTV advertising ecosystem.
Speaker 2: Operator, we will now open the call for questions. Thank you. If you would like to ask a question, please press star followed by the number one on your telephone keypad. To withdraw your question, please press star one again. We'll pause for just a moment to compile the Q&A roster.
Speaker 7: Our first question comes from Matt Swanson from RBC Capital Markets. Please go ahead, your line is open. Yeah, thank you. Good morning. You know, Sigi, we haven't seen a lot of full year guides come from your ad tech peers, so I think it would be really helpful if you give us a little bit more detail on your macro assumptions and kind of maybe some of the seasonality or linearity we could expect.
Speaker 6: when thinking about our models from a first half to second half split. Okay, Matt. Hey, good morning. Yes, I think we are like expecting or...
Speaker 6: experience in some weaknesses in Q1, of course, driven by the well-known, challenging macroeconomic factors. I think as offer mentioned, the integration of a mobile team members and cross-sale training took us a little bit more than expected.
Speaker 6: or bold manage to get the efficient plan in place very quick. And of course, we are anticipating that during 2023, we will see some improvements from the scale of the number of ACR data, or the level of ACR data that's...
Speaker 6: is going, we think that in age one we will see somewhere around, I don't know, 42 percent and of course 58 percent will come in age two. Again, I'm reading, you know, several analysts and other surveys.
Speaker 6: people are expecting H2, macroeconomics to get on a better trend, so of course we will benefit from that as well. But I think this is what we are seeing for now. Yeah, that's extremely helpful.
Speaker 7: And then over I know it's early for a mobile. It's great to see the cost energies, but maybe from conversations with their customers or if you've seen anything yet in forms of revenue synergies, I know getting a mobile to go cross platform. What was one of the big, you know, intriguing points of this deal.
Speaker 5: Yes, I matched. Nice to see you again. First of all, I think that Amobi wrote to us a lot of capabilities that we were not having before. We just added a full capability for planning on linear but also cross planning, which is really important in this period of time.
Speaker 5: And we will touch this point in a minute, but about the business model that is also taking into account the elements.
Speaker 5: of tremor and helping it to become much more profitable. But in general, when we are looking at planning tools, I think that there are two elements that are really important to mention here.
Speaker 5: One of them is the timing, meaning that people want to get more out of their money. So better planning usually means better results. And I think that with the tools that we are offering now to linear and cross-platform advertisers, they can get more out of their money.
Speaker 5: And working with us, they can basically achieve more when they are running on the linea, but also when they are running on streaming and digital alongside that. The second thing is the growth or the rise of the Aval.
Speaker 5: Meaning in the past I feel that linear that was a very big Element more than 50 billion dollars just in the US people were looking at the city being so on But it was not meaningful for them to move their attention also to this to this a channel Now because of the growth of the people are looking at that
Speaker 5: And we are there to basically help them and move also budget to this size of the equation. So I think that this is very meaningful because when you are just telling planning to without activation and without the SSP part or the connection between the planning, the DSP and the SSP and the full platform and platform, you are able, you are not able to basically keep this business profitable. But when you are connecting the dots like we are now offering in the market.
Speaker 5: You are able to do that in a very meaningful manner. As every road also in the script, when we spoke about it, we are looking at that, that advertisers really interested in that. It's increasing the interest of broadcasters, big agencies and advertisers to work with us. And I think that it will give us a lot of room to grow together with a movie.
Speaker 5: Regarding synergies, apart from that, is also shifting and growing the trust of the mobile advertisers in the full system, in the end-to-end system to push more budgets to unruly, to enjoy from our products around the data and targeting that is very meaningful for them.
Speaker 5: and get to it, add to them a lot of value when they are buying it, they are on MS2 and solution. So in general, I feel that there are more combinations with tremor, it's very meaningful to us and it's two big systems that we are connecting now in the last few months, but it's starting to show the fruits that we were expecting to see.
Speaker 2: All right, appreciate it. Thanks for the time. Thank you. Our next question comes from Laura Martin from Needham. Please go ahead. Your line is open.
Speaker 8: Good morning. Could we go back to the ACR data? A couple things you said were really intriguing. You said that other people sort of use their ACR captively, which definitely Roku does. Are you guys going to actually sell your ACR data and sort of compete with the Samba TVs and the iPod TVs?
Speaker 5: or are you just going to use the ACR data to give your platform competitive advantage? So let's start with that. Thank you, Laura. Good morning. ACR, we basically believe very strongly in ACR. We are using ACR for more than five, six years now.
Speaker 5: And now we signed a disagreement with Vida, which we look at as a very strategic agreement that we also invested 25 million dollars in, you know, also to get a specific for long term. And we got a specific on the ACR of ICES, basically a Vida story, which is related to ICES, until the end of in a couple of years for now.
globally and the meaning of that for us it's very it's very as you say
Most of the people are using it in a silo, they are not in the wall garden. We will enable people to use the targeting in order to reach the open web. We have according to the rights of the agreements with license to also to sell or to license this data to tell path in order to target or to conduct measurements.
When we were looking at ICENC and we started this discussion with them like two years ago, they were like number four or five and you can look at our precedences. We were dreaming to be number two now one day. Last year Vida was already number two, ICENC was number two in delivering TV. And in December last year, they even became number one for one month in December . And there was the most selling.
CTV in the world basically delivering smart TVs in the world in December 2022. So we believe that this is a very meaningful event. We have the rights for this data for a couple of years ahead. We are going to use it for our targeting. We are going to enable other people to target when they are buying from us on the media or using our platform.
We are able to license the data to third party in order to target or to conduct measurement. Yes Fantastic, okay, and then my second question is you said you had an 82% retention rate that you increased active customers Could you talk about?
If you could quantify that, how many active customers did you add in a quarter of the year? And who are you gaining when you're gaining new customers? Are they in autos or like what kind of silos are you getting new customers from? Thank you very much.
So what we meant to say is that basically we see that our retention rate is very high, but some of our customers basically reduce the level of spend this year last year because of the microeconomics. Because of the market condition, they are not spending like they used to invest in the past and reducing the volume.
So, and we keep always adding more and more clients. I think that in the early call we have even mentioned, again, can find the points of how many advertisers we added.
think around 200 and something. I will continue but we added a big amount of new clients into the system and we are adding them from every we are not looking at at a some a vertical industry and going only after them
We are going across the board and our teams in the US and internationally, of course, offering our product to all the verticals and all type of advertisers. Usually, of course, we are going through the agency and working with the client in parallel and we most of our businesses in the US. And we are usually going after the advertisers that are what we call national advertisers in the US, which are, of course.
able to invest a lot in advertising and just for the numbers we added about 233 new clients in 2022.
Thank you very much. Thank you. Our next question comes from Thomas Doheny from Steephal. Please go ahead and line is open.
Hi, this is Thomas on from Mark Kelly. First, I was wondering if you could please provide any color on CTB growth expectations for the year. And then kind of following up on that, how much visibility do you guys have for the full year now compared to the end of last year?
So when we are looking at CTV first of all, we can look at remarkable growth that we generated last year. 41% over here, 59% just in the fourth quarter. And as we all know, last year was not a walk in the park. It was a very difficult year from every aspect.
and we were able to keep the growth of the city V and when we are looking now we have some privilege that we are reporting one of the last so we can see look at the views. I think that we are growing more than most of the views around city V which is really impressive and I think that it's coming from a few elements. It's coming from our deep technology around city V.
A lot of products around targeting that we built over the years, truly, which is a very unique creative, for the data driven in France, and to end solution, which is really helping clients to buy, consolidate this cost and become more efficient. And of course, I will reach in the market because of the number of publishers that we are working with, the CTV France.
products around targeting that we built over the years truly which is a very unique creative of the data driven in France and N2N solution which is really helping clients to buy consolidated cost and become more efficient and of course I will reach in the market because of the number of publishers that we are working with the city of France. So the growth came.
It might continue to grow in 2022 when we're looking at 41%, growing at the fourth quarter 59%. And we believe that this growth will continue because I think that our unique position in the market, our professional level of our salespeople, operational people, our data people is providing amazing service to these people and ourselves in a very long time.
in the meeting for men out.
Okay, great. Thanks. Then one follow up. They're just curious if you could quantify or talk a little bit more about how big the world's couplets for four key results.
Okay, great. Thanks. And one follow up. I'm just curious if you could quantify or talk a little bit more about how big the world cup was for four key results. It was not massive. I think that.
What we were able to demonstrate in this occasion was more around our capabilities, meaning to get into an agreement, an exclusive agreement with FIFA, to run their CTV, with us, CTV element with us, globally, to push the distribution of Vida and Android TV.
around millions of users around the world and to run advertisements on that. I think that this is a meaningful event and gave us the capability, showed us the capability to do that. It was not meaningful because of course, it happened at the end of the year and you saw that the end of the year was not as strong.
part of that year. December was the not a strong month, usually that's usually that. And the second thing is because also I feel that because it happened in Dubai, in Qatar, sorry, and it was it created some issues with some advertisers and so on. So I think that it was not meaningful, but it showed the capability of us to take it.
sport event and to run it in a very powerful manner on CTV connecting all the dots of our end-to-end solution our relationship with Vida and our relationship with Tyself around the globe. Great, thank you. Our next question comes from Eric Martin Newsy from Lake Street. Please go ahead.
And so off about 13% just in the last 90 days. And yet you're talking about the core programmatic on a performance basis being up about 5%. So what can you help me better understand if the puts and takes there? Yeah. I think that's when you went there.
The environment now is very dynamic when we basically have this guidance. It was in the beginning of the fourth quarter last year when we were like...
Cauchyly optimistic about the future, but what we saw after that is if you also look at the peers that basically Q4 was not a great period and it was not acting like a Q4 and December was flat and low compared to usually what happened in December . And then also DC you started a little bit slow I think that what happened is that most of the agencies and most of the clients
delayed their decision about spending and about investing and it pushed it a little bit further so it's given you less time to exercise this demand festival and the second thing is there is a lot of uncertainty so if we look around we are saying festival we have two challenges we have the microeconomic challenge that's really too face and we are looking in long term that we need to integrate a more business smart manner into tremolo
So these two combined, I think the effect that we can grow by 5% like most of our peers basically demonstrated and we can keep very high profitability is a very meaningful event. And I think that we are doing it because not because again something is meaningful happen but because of the microeconomic situation that basically lowering the level of the spread of most of our clients and we don't feel after talking to them.
that is going to change dramatically over the year in this point in time. Yes, and on top, Eric, and on top of what Ofer just mentioned, I think that when we are looking on our peers' guidance, we didn't see anyone, I'm taking out now the traders from the equation that is giving a high, even one-digit increase. So I think that our guidance, or lowering the guidance, is now in line with the
all of what the other peers are guiding. So most of them are or stagnant or growing by, I don't know, 5% and again, as you mentioned, within our activities, our programmatic activities, which is our core activity and our main focus, is growing aeroverear and a performer basis by 5% while the legacy...
non-core performance activity is declining. Okay, and then I want to kind of new to this story and I want to understand the seasonality. I know you didn't give specific guidance for Q1, but what's a normal on the performer combined with a movie? What is a typical seasonal step down from Q4 to Q1? I wanna show you some story.innen.org
So again, I think that what happened in the last two years, you know, 2020 with the emerging of the pandemic and 2021, which was the year like stepping out of the pandemic, which wasn't usual as well, kind of turned out to mix and shift all the things that we knew about to the technology. I think so that I think that.
You know, somewhere, as I said to Matt before, I think it will be age one will be 42%, age two will be 58% something around that. It's totally, that was the number like a few years ago, but I think that all this is anality in the past few years change because of the pandemic and after that
in the last year also, you know, like in 2020 the pandemic started in 2021. We saw a rise in the second half and then up and down because of the social unrest. And then again in 2022 we saw like a little bit different behavior than we saw years before because of Q4 that was not acting.
I get an arm, Stirring.
You get it up, Brent. You got it in the Brent, so...
There are two reasons that we want to conduct, of course, a rebranding. One of them is internal.
To connect all the people to the coast people will feel that they are connected that they have a new Family that they are joining and they are part of it and the second thing I think that we need to create a new brand in order to be able to emphasize to clients to partners and What we are really offering in a different manner without
basically using a few brands that sometimes confuse them. So I think that this is the major role inside and outside in order to reflect our capabilities outside, but also connect the people inside in a better manner. And we are in this process already, and we plan to conclude the decision.
Okay, so we wouldn't have any baggage from legacy brands, it would be something new.
We hope so, yes. That's the plan. Okay, thank you. Our next question comes from Andrew Boone from JMP Securities. Please go ahead, your line is open.
Great. Good morning and thanks for taking my questions. I wanted to ask about beat of free. It seems like a tremendous opportunity as you guys have. I would assume exclusive access to a CTB streaming channel and Aval channel. Can you just double-click on what that could possibly mean, help us understand what it is, the timing of it, and then just the overall opportunity.
Basically, VIDI is creating channels, now streaming channels with content that they bring from content partners. They created the TV on the OEM system and on the OEM with the operating system. And we have exclusivity with them because of the thanks to the integration, the investment that we've done with them of $25 million for a couple of years.
So basically it will give us access to more media and exclusive matter in the next couple of years. US, Canada, Australia and UK. And the meaning of that is that they are now building it. They already have a lot of traffic around the globe. But when you are looking at that, it will give us more and more unique and exclusive media that we can basically offer to our clients. And we are working with them now closely and adapting our technology.
in order to operate it globally on their platform. Yes, and just for you to understand, of course the operating system is the one that is controlling what the user or the consumer will see on his TV, so of course they can control the level of exposure and the exact location of where their fast channel will be shown. So they can like...
put some kind of pressure or allocation towards the users in order to consume their content.
That's not exciting. And the next thing I wanted to ask about was just a repurchase cadence as we think about 2023, shares it down this morning. How do you guys continue to think about buybacks, especially given the fact that you're still generative in terms of cash glow and this?
We are cash-generative, we are profitable. So as long as the share price and the valuation of the company will make sense for us to keep on and adjusting our repurchase plan into a much massive one, of course we will do that. So now we announced the $20 million repurchase.
October which is closed to end and of course we'll take our decision in the next week.
close to end and of course we'll take our decision in the next week. Great, thank you guys. Thank you.
Our last question will come from Andrew Merrick from Raymond James. Please go ahead, your line is open. Hi guys, thanks for taking my questions and apologies that these have already been bouncing around between a couple of calls. We heard commentary from other players in the space about 23 being an inflection year, not only in the amounts of A-Bot supply, but also the amount of inventory going bidible. What assumptions are you including in your outlook on these fronts?
So you're talking about growth of media, right?
about growth of media, right? Yes.
So I think that usually unique you need of course in this case to have like the the demand side which means the budget is coming from the clients that are pushing them through the agencies or directly to the platform. I think that most of the concern now is not about the media side. I think that we have very big reach in the market around CTV around
online video display and every other format. I think this is not a challenge. I think the challenge in the market now is the level of investment that the advertisers are willing to put in the market which is it's meaningful for the market to grow of course.
because if we look at the results and the summaries of a lot of companies that are buying media in the market in order to promote their services and product, you see that they are cutting their spend basically, they are cutting their investment in media and so on. So I think that the challenge is not on the side of the media, it's on the side of the advertisers slash agencies that are.
Basically moving the markets and I think that on that side we see that a lot of the advertisers and agencies are lowering their spend in the past year and They still it's not I don't know if we I don't know if I hope and our assumption it will not get worse than to them today But we saw in the last day let's say close to a year now since February last year
we saw a lower span from a lot of the advertisers that we are working with. And if you look at our peers, I think that they are experiencing the same. Yeah, in addition I think that
We have some kind of advantage here because we just got from the investment in a mobile an ATV tool which is a planning tool for linear TV. And now this planning tool knows how to take linear TV campaigns and find the same audience on digital. So this is give us some kind of advantage where...
an advertiser slash agency slash customer wants now to find his audience. He can very quickly find it through linear into digital and vice versa, which I'm not sure that most of our competitors have this technology right now.
Great, thank you. And then just lastly, on the guidance with your commentary around 5% combined pro forma programmatic growth, just want to be 100% clear that I understand the definition of what pro forma is and kind of what assumptions you're baking in for a mobile as well. Thank you.
Yes, so when we're saying on a performance basis, we are meaning that if we are taking 2022 and adding the tremor numbers into a mobile number on a full-year basis, this is what we are calling performance basis. So this number or this programmatic number will grow in 2023 by 5% and it will be offset.
by the decline of the non-correctivity, which is performance. Thank you. Thank you. We have no further questions in queue. I would like to turn the call back over to Overtruker for closing remarks.
Thank you everyone first of all for your time. I think that for us it's very exciting because 2022 was a very important year from strategic point of view building the future. We basically enhance our capabilities and extended them also to planning which I feel that this period of time that the market is
staff, people want to get more out of their money. So if they will use our tools, they will be able to drive additional results from the same budget because of better planning, which I feel that is very important. It's giving us also ability to grow the enterprise solution that we have said that we are offering in the market and I think that is also...
very important for long-term and also the investment in VDS we just discussed you know CTV we we already see very strong results coming from our company by in CTV growing 59% in fourth quarter 41% in full year it's very meaningful and I think that it's thanks to our basically creativity innovation around technology about our assets about our reaching the market.
And I think that the cooperation investment in Vida will just in answer it. As Laura mentioned, ACR is a very well asset in this market and when you have it you can gain a lot from that. And the second thing is also what we mentioned about Vida free and Vida streaming, which is giving us a lot of more media on exclusive level that is very important in this market. So I feel that the future is like 2022 was very meaningful for the company for the long term.
We made this to investment of a mobile and Vida, that all of them are driving in the NNC our capabilities around TV, CTV data and video as we are doing for the last several years. But even in a tough period of time, I think that when you're looking at the long term, I think that we are on the right direction and we feel excited and secure about our future.
Thank you very much and hope to see you soon in our next episode. Thank you. This concludes today's conference call. Thank you for your participation. You may now disconnect.
I you.
Will.
Welcome to Tremor International's fourth quarter and year-ended December 31, 2022 conference call. At this time, participants are in a listen-only mode, with a question-and-answer session to follow at the end of the presentation. This conference call is being recorded and a replay of today's call will be made available on the Investor Relations section.
year ended December 31st, 2022 earnings call. With us on today's call are Ofer Druker, Tremor's Chief Executive Officer, and Sigi Miri, the company's Chief Financial Officer. This morning, we issued a press release, which you can access on our website at investors.tremorinternational.com.
During today's conference call, we will make forward looking statements. There are statements other than statements of historical fact could be deemed as forward looking. We advise caution in reliance at forward looking statements. These statements include, without limitations, statements and projections about our anticipated future financial results, including discussions about our revenue margins, expenses and guidance for full year 2023, as well as future business, anticipated benefits of tremors, strategic transactions and commercial partnerships.
The President's belief that tremor is well-positioned to benefit from anticipated future industry growth trends and company-specific catalysts. The potential negative impact of inflationary pressures, rising interest rates, geopolitical and macroeconomic uncertainty, recession concerns, and widespread global supply chain issues that have limited advertising activity and the anticipation of these challenges could continue to have an impact for the remainder of 2023 and beyond. The anticipated benefits from the company's investment in VITA and its enhanced strategic relationship with high risk entrepreneurs and Management Growth
related to a product or services. Our forward-looking statements are based on information available to us as of the date of this call. These statements have gone on unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those implied by these forward-looking statements, including unexpected changes in our business.
More detailed information about these risk factors and additional risk factors are set forth in our filings with the United States Security and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled Risk Factors in our most recent annual report on Form 20F. Trimmer does not intend to update or alter its federal looking statements, whether as a result of new information, future events or otherwise, except this required by law. Additionally, the company's press release and management statements during this conference call.
We'll include discussions of certain measures and financial information in IFRS and non-IFRS terms. We'll refer you to the company's press release for additional details including definitions of non-IFRS items and reconciliation of IFRS to non-IFRS results. At this time, it is my pleasure to introduce Ophardruger, CEO of Trevor International.
Please go ahead. Thank you, Billy, and welcome to everyone joining us today. I will begin by providing an overview of our results in strategy, and then we'll end over the course to our CFOs again, to discuss our financials.
We will then open the call for questions. Results for Q4 include contributions from Amobi and Full EAR 2022 results, include contributions from Amobi for the September 12th 2022 to December 31, 2022 periods. Following record of Danny Groot in 2021.
We continue to deliver strong results in 2022. I lighted by significant market share expansion and above average growth rates within CTV. We were able to achieve this result while executing a strategic acquisition and investment that strongly positioned the company and its customers for future success despite continuing challenging market conditions that weighs heavily.
on advertising demand throughout 2022. In the fourth quarter we generated record contribution x-tech of 103 million dollars reflecting 16 percent Euro-VerEAT growth as well as record
reflecting 3% euro-variant growth. We achieve these growth while remaining focused on generating high level of cash flow and profitability, which we find be even more important in our certain market. We strongly believe operational efficiency driven by our end-to-end technology stack.
affecting 3% of the growth. We achieve this growth while remaining focused on generating high level of cash flow and profitability, which we find even more important in our certain market. We strongly believe operational efficiency driven by our end-to-end technology stack is a strong competitive advantage in differentiating.
It position us well to better periods of advertisers from certainty and provide flexibility to invest in our platform to drive future growth and innovation. For both Q4 and full year 2022, we achieved our most recent adjusted EBITDA target, generating $36.9 million and $144.9 million.
of adjusted divida, respectively. For the full year, we generated a adjusted divida margin of 43% as a percentage of reported revenue and 47% as a percentage of net revenue. These results are particularly impressive as we invested significant management and combined team efforts acquiring and integrating a MOBI which operated at the loss when we closed the acquisition in September .
In addition to generating record net revenues and strong profitability, we continue to grow our share within Citibit at what we believe to be rates faster than several competitors in India.
This outperformance in CTV highlighted our strength and resiliency in the segment and was driven as a direct resource of our intentional strategy to emphasize and invest significant resources in CTV-related product development over the last several years.
We believe this ongoing emphasize on growing and expanding our capabilities within CTV. We will provide the company and its customers with increasing advantages.
emphasize on growing and expanding our capabilities within CTV, will provide a company and its customers with increasing advantages over time.
In Q4, we generated record CDB spend of $99.6 million, reflecting a significant euro-very of 59%.
For the full year, we generated record city defense of $283.6 million reflecting 41% growth compared to 2021.
CTV and programmatic activities has been and will continue to be primary focus and growth drivers for the business. We strongly believe advertisers seeking solutions within CTV will continue to favor end-to-end tech platforms.
as they provide added costs and data advantages compared to one-sided solution. And better optimize the supply plant, which other major etich companies are increasingly echoing.
We have observed several companies across the industry investing more and more resources into SPO, while intentionally rearranging their operations.
to more closely mirror an end-to-end business model. While these companies are moving to operate end-to-end at the business level we take a step further as we are supported by our end-to-end technology platform which provide a company with what we believe to be a massive advantage that can assist us in growing our market share over the coming years.
In addition to having even stronger conviction in our end-to-end stack and operating model, in 2022 we further enhance our programmatic capabilities of CTV data and video offering through the acquisition of a Mobi's and investment in Vida. A Mobi is significantly enhanced.
and further differentiated our technology platform through the addition of important TV capabilities, including TV planning, new cross planning and segmentation. We believe this newly added capabilities.
strongly enhance the company positioning as linear TV and CTV continue to converge and as an advertisement agency, increasingly seek solutions that enable them to more effectively plan and deploy spend across both linear and digital.
Recent technology and development in the advertising ecosystem, as well as ongoing uncertainty in the advertising environment, and driven customers to be more prudent, data-driven, and strategic in how they plan, campaigns, and deployments to achieve their KPIs.
Customers are consolidating budgets and spend with fewer advanced tech platforms that can deliver data-driven solutions because planning and activation enable approved returns on a spend and better position them to react and adapt quickly to rapidly changing industry conditions.
The linear TV planning feature added through our Mobi, combined with our pre-existing strengths and variety of data capabilities within CTV and in-house SSP, enable us to create a new and unique technology to plan campaigns across both linear TV and CTV CMOS-TAR MST.
We believe this is the first of its kind technology that has massive potential in the market and that is the perfect time for this tech to be integrated into our ecosystem to capitalize on current trends within the industry. As head supported streaming continues to grow and as linear TV broadcasters, we are also in a position to make the most of the technology and to keep the technology going. We believe this is the first of its kind technology that has massive potential in the market and that is the perfect time for this tech to be integrated into our ecosystem.
increasingly expanded into CTV, we believe cross-planning is becoming strategic and vital to agencies and brands. This technology enabled partners to reduce the duplication that occurs when presenting ads on both formats to the same user to better understand through reach. While the technology increased our CTV capabilities it's also significant...
advertising at the moment. We believe well over 50 billion dollars per year is spent advertising on linear TV in the US versus approximately 20 billion dollars per year in TV in the US
Our new linear TV and cross-planning capabilities have already better positioned the company during the initial commercial and partnership discussions with some of the world leading broadcasters and agencies and we expect this traction to continue going forward.
We are going to engage in a long-going partnership discussion with leading broadcasters and agencies and are offering try to those seeking to leverage our cost planning tool.
We are encouraged by early science, the DISTecology, and increases the willingness of major broadcasters and agencies to evaluate our tech solution, as well as the likelihood of those broadcasters and agencies adapting, offering across our end-to-end tech.
We have optimism that the tool and in answer relationship with large broadcasters will not only enable us to effectively access the linear TV market, but will also drive more TV spend across our platform as other types of six solutions to help them plan and execute campaigns across both linear and digital. Other times we will work to own both more partners and encourage those partners to adapt.
more of our products while also seeking to gain increased level of strength and budgets from those partners to deploy across our ecosystem. In addition to the important new planning capabilities, we gain a mobile also significantly enhance our omnichannel enterprise, self-service DSP, display and performance media buying capabilities as well. The acquisition also added financial scale and increased demand.
from the significant number of new global brand and agency customers who we are excited to be working with. Since concluding the acquisition, we have made significant progress in quickly combining the companies. We consolidated management, sales, marketing, product and R&D themes.
improving efficiency while saving approximately $50 million in annualized operating costs. The integration of new sales team members and getting everyone cross-trained on our product ecosystem took slightly longer than anticipated. However, we believe the teams are now fully integrated and we have confidence that the teams are now fully integrated and are now fully integrated.
The combined team is prepared for success going forward. We will remain focused on generating further cost saving by consolidating tech and trend of fees as we worked on combining the tremble video and a mobb dsp's into one hidden platform.
We continue to expect to achieve $65 million in total annualized operating cost images, attributable to acquisition and to mostly finalized tech integration by the end of H1 2023. Upon completing the integration, we will continue to accept the $65 million in total annualized operating cost images, attributable to acquisition and to mostly finalized tech
We believe we will leave one of the most comprehensive, efficient, and fair, CTV, and video-focused end-to-end platform offering in the open market. Our platform will also further be appreciated through our relationship with Icent and strategic investment in Viga, which we believe will further support our growth and leadership position within CTV for years to come.
In mid 2022, we invested $25 million in Vida, a small TV operating system and streaming platform and subsidiary of ICCI. This investment created a powerful partnership with one of the fastest-growing global TV operating systems and one of the largest and fastest-growing TV oil brands, while the spreader in Signal Data in Videofring.
Over the past several months, VDA has made significant progress growing its global market share. VDA has recently driven increased adoption by several additional smart TV brands and major televisions on seeing their own supports and sell their products with high-level quality
We also believe Vita now delivers a wide variety of major US export services and streams on an average of roughly 1 billion hours of content per month. Vita also recently announced a launch of Vita 3, its streaming app offering video-on-demand, live linear, fast and as supported content which will be available on millions of Vitaosta stems from all devices among many parts of the start.
from Iceland. Vida3, currently live in the US state, with plans to expand globally later this year. As Vida is prevalent to channels like Work with Channel continues to scale, and as Vida on board additional et-supported content in the future, we expect increasing benefit from the economic development of the US, UK, Canada and Australia, we gain through our investment. Vida3 is a company ISEM, which also owned the Tushipa Smart TV brand.
has also recently achieved major success and recognition in growing its global SMART TV distribution. According to ABC Rebell, ICEN throws to number one in the world for monthly global SMART TV shipment for the first time during December . As ICEN's continued to grow share in the global SMART TV market, our exclusive right to distribute VDAC global ACL data against our VDAC investment should provide increasing benefits and become even more desirable.
to dole seeking this data set for TV targeting and measurement. I can't emphasize enough how unique our access to this data is as most other major smart TV OEMs monetize the SIA data in house.
While other ATT companies in the open internet may have limited access to ACR data, we don't believe any of our peers have global exclusivity like we do with one of the fastest growing global short-term expert particular network and AI, and not only to achieve a global focus on And on other
As we look ahead, we expect our investment in FIDA will begin generating meaningful revenues for the company starting in late 2023 and beyond.
We also continue to invest in our share repurchase program during the fourth quarter to drive what we believe will be added long-time value for our shareholders. In Q4 we reap purchase approximately 3.1 million ordinary share reflecting an investment.
of 9.5 million pounds or 11.3 billion dollars. For full year 2022, we repair just approximately 16.9 million ordinary shares or roughly 11% of share outstanding, reflecting a total investment of approximately 70 million pounds or 86.2 million dollars.
Two chairs remain at discounted levels. We will seriously consider extending the program or authorizing new program to take advantage of the evaluation of utility, once the current program is finished.
In addition, we continue to generate increased momentum and adoption across tremol video and Anjuli. During info, Anjuli added 87 new supply partners including 56 in the US.
For all of 2022, Anruli added 319 new supply partners, including 160 in the US. During Q4, Tremor Video added 42 new advertisers' customers and 233 for all of 2022, across retail, political, CPG, travel, and automotive verticals, as well as others.
Finally, we intend to repress the company and consolidate our brand portfolio and the one name later this year. We believe this will enhance our commercial focus and better convey the holistic value proposition of our unified end-to-end technology tech in the market for the company's next phase of month.
to reprint the company and consolidate our brand portfolio and the one name later this year. We believe this will enhance our commercial focus and better convey the holistic value proposition of our unified end-to-end technology tech in the market for the company's next phase of month. With that,
It is now a pleasure to turn the call to secretary. Thank you, offer. Today we will review highlights and key financial and operational drivers of our Q4 and FULU 2022 performance.
As a reminder, Q4 results include contributions from a mobile, while fully results include contributions from a mobile for the September 12, 2022 through December 30, 2022 period. For the three months and the December 31, 2022, we generated a record contribution of $100,000,000.
of generated record programmatic net revenue of $94.5 million in Q4, reflecting e-over-eared growth of 27%. During the quarter, we saw improvement in advertising demand environment compared to Q3, particularly when compared to July and August .
However, macroeconomic challenges continue to impact advertising demand across several verticals and formats, most notably in December and the only day shopping and advertising season wasn't as strong as we've seen in prior years.
Additionally, the US meter-melection cycle and 2022 FIFA World Cup didn't generate significant revenues for the company during the fourth quarter. From a vertical perspective, we saw advertising spend in Q4 increase year-over-year in industries such as automotive entertainment, food, retail, sports and political.
Well, vertical such as CPG, personal and consumer finance, fashion, electronics and other sectors tied heavily to consumer discretionary spending, so advertising spend the client euroverear during fuel force. Importantly, despite the macro backdrop continuing to impact the overall advertising demand environment, we continue to significantly expand our market share within CTV.
Generating the record CTV spend on our platform in the fourth quarter. CTV spend on our platform increase to $99.6 million in Q4, reflecting 59% euro over eardrope, compared to CTV spend of $62.5 million during Q4 2021. Video, including CTV, continuing to account for an overwhelming majority of our Q4 and full year 2022 net.
This is continued to launch new et-supported tiers and advertisers increasingly transact programmatically. We feel that we are indexed to some of the fastest growing parts of the market.
with scale and ability to service customers across their entire workflow. We also continue to generate strong margin during our first full quarter of being combined with a mobile, which was a lot-making business when we first acquired the company. In Q4, we generated an adjusted EBITDA margin of 34%.
on reported revenue basis and 56% on a net revenue basis. As we continue to integrate the company, we expect to incrementally drive margin back towards historical levels over time. For full year 2022, we generated record contribution exact of $309.7 million compared to $302 million in full year 2021, which was in line with market expectations. We also generated record programmatic net revenue in 2022.
of $274.4 million, which reflected 3% growth compared to 2021. The company also drove record annual CTV spend of $283.6 million, which reflected 41% year-over-year growth from the $201 million of CTV spend generated in 2021. In 2022, CTV spend reflected 39% of total spend and 42% of programmatic spend.
During Fulier 2022, we also generated a adjusted EBITDA of $144.9 million in line with market expectations compared to $161.2 million of adjusted EBITDA in 2021. For Fulier 2022, we generated an adjusted EBITDA margin.
of 43% on a reported revenue basis, and 47% on a net revenue basis. We will continue to remain a hugely focused on generating high levels of profitability, as we believe this enable us to invest in our platform to drive future growth and technological innovation, where also positioning the strongly to opportunistically invest in our shares.
a discounted valuation level who generated added long-term value for shareholders. We also achieved a net retention rate of 80% during 2022, while the company net retention rate declined e-rover year largely due to lower standards by advertising customers amid challenging market conditions, the company was able to increase its active customer bait. Turning to our cash flow, we generated net cash from operating activities.
In 2022, we also entered approximately $4.9 million in one-time severance and retention bonus related costs.
Associated with the reorganization of a mobile employees into the tremor international base, and again, maintain the particular focus on retaining sales, marketing, technology, and product talent during the consolidation process to further the combined companies go to market and technology strategies. In addition, we currently expect our 2023 Sherbet Compensation Extend.
We may be required to enter higher care-based compensation charges, to replace employee equity incentive grants in order to continue to attract and retain talented employees. As of December 31st, we had 115.5 million dollars net cash.
as well as $80 million and grown on our revolving credit facilities, providing ample liquidity for the ongoing needs of the business, as well as for future potential strategic investment and initiatives.
During the fourth quarter of 2022, we experienced 85% free cash flow conversion, and for full year 2022, we experienced three cash flow conversion of 96%.
Non-IFRS diluted earnings per ordinary share was $0.15 or Q4 2022 versus $0.27 in Q4 2021.
and 60 cents for the 12 months ended December 31, 2022, versus 83 cents for the 12 months ended December 31, 2021.
Finally, I now turn to our outlook. Global macroeconomics uncertainty, which negatively impacted the advertising industry throughout 2022,
As continue to drive challenges for tremor, it's global customers and it's partners to this point in 2023. We saw the advertising environment significantly softened during the month of December and January and into early February , but we will observe potential signs of recovery and stability in the market since that time. However, due to this ongoing challenges, driving contours...
results we are lowering our full year 2023 contribution extract outlook to approximately $400 million and our 2023 adjusted EBITDA outlook to be in the range of approximately $140 million to $145 million. Despite this lowered annual guidance, we believe the company will experience incremental proven to results.
in H2 2023 driven by anticipated positive effects of completing the integration of Amobi, expected meaningful revenue benefits from the company's investment in Vida, which we believe will begin in late 2023, and expectations for tempered improvements in the global advertising demand environment.
In 2023, we believe revenue tied to our core business focused on programmatic activities will grow approximately 5% on a combined performance basis, while revenue in our performance business is expected to decline year-over-year. Despite Newton's challenges, we believe our deep-
and operating model enable us to generate healthy levels of cash and profitability, offering us the flexibility to opportunistically invest in further take enhancement and platform differentiations.
to more strongly position the company for when market and advertiser condition improve. I'm incredibly excited for the company's positioning within the industry and the recent milestones we've achieved and believe our future looks bright.
With my remarks completed, I'll turn the call back to author. Thank you, Sadi. 2022 was an incredible year. We significantly grew our CTV market share and maintain our focus on generating strong cash flow and profitability, while in anything our tech capabilities to drive further growth.
and added long-term shareholder value. The added scale, tech, data and cross-planning capabilities gained through AMOBI, as well as the exclusive global ACR data rights and an edge monetization of accessibility gained throughout investing in Vida, also enhanced our end-to-end platform in a meaningful way. Our differentiated ability to provide solutions across planning, data, activation and media.
put us on a very short list of providers that can benefit brands, agencies, broadcasters and city-min partners and enable them to achieve their KPIs in ways no other single vendor can. We remain excited for coming enhancements to our platform and unifying our brands.
which we believe will further solidify our position as a leader in the linear TV and TV advertising ecosystem.
Thank you. If you would like to ask a question, please press star followed by the number one on your telephone keypad. To withdraw your question, please press star one again. We'll pause for just a moment to compile the Q&A roster. Thank you.
Our first question comes from Matt Swanson from RBC Capital Markets. Please go ahead, your line is open. Yeah, thank you. Good morning. You know, Sigi, we haven't seen a lot of full year guides come from your ad tech peers, so I think it would be really helpful if you would give us a little bit more detail on your macro assumptions and kind of maybe some of the seasonality or linearity we could expect.
when thinking about our models from a first half to second half split. Okay, Matt. Hey, nice. Good morning. Yes, I think we are like expecting or experiencing some weaknesses in Q1, of course, driven by the well-known challenging macroeconomic factors. I think it's over-mentioned the integration of the mobile team members and cross-sale.
training took us a little bit more than expected. Volvo managed to get the efficient plan in place very quick. And of course, we are anticipating that during 2023, we will see some improvements from the scale of the number of ACR data, or the level of ACR data that we will get from.
Vida and of course from other initiatives that we are seeing already first time Regarding the seasonality of course, you know as the marketing slash advertising market is
is going, we think that in age one we will see somewhere around 42% and of course 58% will come in age two. Again I'm reading several analysts and other surveys, people are expecting age two macroeconomics to get on a better trend. So of course we will benefit from that as well.
But I think this is what we are seeing for now. Yeah, that's extremely helpful. And then over, I know it's early for a mobile. It's great to see the cost energies. Maybe from conversations with their customers or if you've seen anything yet in forms of revenue synergies. I know getting a mobile to go cross platform was one of the big, you know, in truth.
important in this period of time. And we will touch this point in a minute, but about the business model that is also taking into account the elements of tremor and helping it to become much more profitable. But in general, when we are looking at planning tools, I think that there are two elements that are really important to mention. One of them is the timing, meaning that people wants to get more out of their money.
So better planning usually means better results. And I think that with the tools that we are offering now to linear and cross-platform advertisers, they can get more out of their money. And working with us, they can basically achieve more when they're running on linear, but also when they're running on streaming and digital alongside that.
The second thing is the growth or the rise of the Aval. Meaning in the past I feel that linear that was a very big element, more than $50 billion just in the US. People were looking at the city's zone, but it was not meaningful for them to move their attention also to this channel. Now because of the growth of the Aval, people are looking at that and we are there to basically help them in the world.
budget to this size of the equation. So I think that this is very meaningful because when you are just selling planning tool without activation and without the SSP part or the connection between the planning the DSP and the SSP as the full platform end-to-end platform you are able you are not able to basically keep this business profitable.
But when you are connecting the dots like we are now offering in the market, you are able to do that in a very meaningful manner as every every road also in the script when we spoke about it We are looking at that that advertisers really interested in that it's increasing the interest of broadcasters big agency and advertisers to work with us and I think that it will give us a lot of the room to grow together with a movie. Regarding series is apart from that is also shifting and growing the trust of their movie advertisers in the full system, in the end to a system.
to push more budget to enjoy from our product around the data and targeting that is very meaningful for them and can add to them a lot of value when they are buying India on an end-to-end solution. So in general, I feel that the Amobi combination with Tremor is very meaningful to us and it's two big systems that we are connecting now in the last few months but it's starting to show the fruits that we were expecting to see. All right, appreciate it. Thanks for the time. Thank you. Our next question.
Our next question comes from Laura Martin from Needham. Please go ahead, your line is open. Good morning. Could we go back to the ACR data? A couple of things you said were really intriguing. You said that other people sort of used their ACR captively, which definitely Roku does. Are you guys going to actually sell your ACR data and sort of compete with the Samba TVs and the iPod TVs? Are you just going to use the ACR data to give you a platform competitive advantage? So let's start with that.
Next question comes from Laura Martin from Needham. Please go ahead, your line is open. Good morning. Could we go back to the ACR data? A couple of things you said were really intriguing. You said that other people sort of used their ACR captively, which definitely Roku does. Are you guys going to actually sell your ACR data and sort of compete with the Samba TVs and the I-POT TVs? Are you just going to use the ACR data to give your platform competitive advantage? So let's start with that. Thank you, Laura. Good morning.
Please go ahead, your line is open. Good morning. Could we go back to the ACR data? A couple of things you said were really intriguing. You said that other people sort of used their ACR captively, which definitely Roku does. Are you guys going to actually sell your ACR data and sort of compete with the Samba TVs and the iPod TVs? Are you just going to use the ACR data to give your platform competitive advantage? So let's start with that. Thank you, Lord. Good morning. So you're finally morning.
We basically believe very strongly in ACR. We are using ACR for more than five, six years now. And now we find an disagreement with Vida, which we look at as a very strategic agreement that we also invested $25 million in, and also to get a specific for long term. And we got a specific on the ACR of ICERN, basically of Vida storage, which is related to ICERN, until the end of in a couple of years for now globally. And the meaning of that for us is very, very, very, as you said.
Most of the people are using it in a silo, they are not in the wall garden. We will enable people to use the targeting in order to reach the open web and we will be able to, we are, we are according to the rights of the agreements with Tysense to also to sell or to license this data to tell party in order to target or to make, to conduct measurement. When we are looking at Tysense and we started this discussion with them like two years ago, they were like number four or five and you can look at our press releases. We were dreaming to be number two now one day. Last year, Vida was already number two license was number two in delivering TV.
And in December last year, they even became number one for one month in December . And there was the most selling city in the world, basically, delivering a small TV in the world in December 2022. So we believe that this is a very meaningful event. We have the rights for this data for a couple of years ahead.
We are going to use it for our targeting, we are going to enable other people to target when they are buying from us in media or using our platform and we are able to license the data to third party in order to target or to conduct measurements.
Fantastic. Okay. And then my second question is, you said you had an 80% retention rate, but you increased active customers. Could you talk about, if you could quantify that, like, how many active customers did you add in the quarter of the year? And who were you gaining when you're gaining new customers? Are they an auto's or like, what kind of silos are you getting new customers from? Thank you very much. No problem. So what we meant.
to say if there's basically we see that our retention rate is very high but some of our customers basically reduce the level of spend this year last year because of the microeconomics. Because of the market condition they are not spending like they used to invest in the past and they are reducing the volumes.
So, every week keep always adding more and more clients. I think that in the early call we had given mention, I think it can find the point of how many advertisers we added. I think I want to understand something. And...
I will continue, but we added a big amount of new clients into the system. And we are adding them from every, we are not looking at some vertical industry and going only after them. We are going across the board and our teams in the US and internationally, of course, offering our product to all the verticals and not type of advertisers. Usually, of course, we are doing it through the agency and working with the clients in parallel in most of our business in the US.
And we are usually going after the advertisers that are what we call national advertisers in the US, which are, of course, able to invest a lot in advertising. And just for the numbers, we added about 233 new clients in 2022.
Thank you very much. Thank you. Our next question comes from Thomas Doheny from Steeple. Please go ahead and line it open. Hi, this is Thomas on from Mark Kelly. First, I was wondering if you could please provide any color on CTV growth expectations for the year. And then kind of following up on that, how much visibility do you guys have for the full year now compared to the end of last year? Thanks. Thank you.
So when we are looking at CTV, first of all, we can look at remarkable growth that we generated last year. 41% over here, 59% just in the fourth quarter, and as we all know, last year was not a walk in the park. It was a very difficult year from every aspect, and we were able to keep the growth of CTV, and when we are looking now, we have some privilege that we are reporting one of the last so we can look at the peak.
solution which is really helping clients to buy consolidated costs and become more efficient. And of course, I will reach in the market because of the number of publishers that we are working with the CTV front.
So the growth came, it continued to grow in 2022, when we're looking at the EROV-RU 41% growing at the FOTCOTA 59%. And we believe that this growth will continue, because I think that our unique position in the market, our professional level of ourselves, people, operational people.
Our data people is providing a major service to these people to the advertisers of our banks TV and they continue to come to us in order to process their campaigns around TV and we believe that it will grow. To give you the ability about this year, about our growth is very difficult, of course, because of the macroeconomic situation and I think that it will be responsible, but we feel that the growth will continue also this year in a meaningful manner.
Okay, great. Thanks. And one follow up. I'm just curious if you could quantify or talk a little bit more about how big the world couple is for four key results. It was not massive. I think that what we were able to demonstrate in this in this occasion was more around our capabilities, meaning to to get into an agreement with exclusive agreement with FIFA to run their city V without city. We don't see the elements with us.
globally to push the distribution with an Android TV around millions of users around the world and to an advertisement on that. I think that this is a meaningful event and gave us like the capability to show us the capability to do that. Is what more is what more it was not meaningful because of course.
It happened at the end of the year and you saw that the end of the year was not a strong part of that year. December was not a strong month like usually it does. And the second thing is because also I feel that because it happened in Dubai, in Qatar, sorry. I feel like it happened in Dubai, in Qatar, in Qatar, in Qatar, in Qatar, in Qatar, in
it was it's created some issues with some advertisers and so on so I think that it was not meaningful but it showed the capability of us to take a sport event and to run it in a very powerful manner on CTV connecting all the dots of our end-to-end solution our relationship with Vida and our relationship with Tyser around the globe. Great thank you. Our next question comes from Eric Martin to Martin Newsy from Lake Street. Please go ahead your line is open.
Yeah, I wanted to revisit the guidance in light of the reset. It's definitely a pretty substantial reset on the net revenue, the contribution X-TAC. We're not looking at 400 million down from the prior 460 million, so off about 13% just in the last 90 days. And yet you're talking about the core programmatic on a performance basis being up about 5%. And so...
What can you help me better understand the puts and takes there? Yeah, I think that's when you with the Environment now is very dynamic when we basically have this guidance it was in the beginning of the fourth quarter last year when we were like
Cauchyly optimistic about the future, but what we saw after that is if you also look at the peers that basically Q4 was not a great period and it was not acting like a Q4 and December was flat and low compared to usually what happened in December . And then also DC you started a little bit slow I think that what happened is that most of the agencies and most of the clients delayed their decision about spending and about investing.
and it pushed it a little bit further. So it's giving you less time to exercise this demand first of all. And the second thing is there is a lot of uncertainty. So if we look around, we are saying first of all, we have two challenges. We have the microeconomic challenge that we need to face. And we are looking in long term that we need to integrate a more of a small manner into tremor. These two combined, I think the effect that we can grow by 5%, like most of our peers basically demonstrated and we can keep very high profitability is a very meaningful event. And I think that we are doing it because not because...
Again, something is meaningful happen, but because of the microeconomic situation, that basically lowering the level of spend of most of our clients, and we don't feel after talking to them that it's going to change dramatically over the air in this point. Yes, and on top of what Ofer just mentioned, I think that when we are looking on our peers' guidance, we didn't see anyone taking out the trade-esk from the equation that is giving high even one digit increase. So I think that our guidance for lowering the guidance is now in line with...
all of what the other peers are guiding. So most of them are orthogonality or growing by, I don't know, 5%. And again, as you mentioned, within our activities, our programmatic activities, which is our core activity and our main focus is growing year over year on a pro forma basis by 5%, while the legacy...
non-core performance activity is declining. Okay, and then I want to kind of note of this story and I want to understand the seasonality. I know you didn't give specific guidance for Q1, but what's a normal on the performer combined with a movie? What is a typical seasonal step down from Q4 to Q1? So again, I think that what happened in the last two years, you know, 2020 with the...
with the emerging of the pandemic in 2021, which was the year like stepping out of the pandemic, which wasn't usual as well, kind of turned out to mix and shift all the things that we knew about the technology. Having said that, I think that somewhere, as I said to Matt before, I think it will be age one, will be 42%, age two will be 58%, something around that.
It's totally, that was the number like a few years ago, but I think that all this is anality in the past few years changed because of the pandemic. And after that, in the last few, also in 2020, the pandemic started in 2021. We saw a rise in the second half and then up and down because of the social unrest. And then again, in 2022, we saw a little bit different of the data that we saw used before because of Q4 that was not acting like really Q4 in January . Okay. My last question is on the new brand. Is this potentially consolidating to an existing brand or is this creating a new...
confuse them. So I think that this is the major role inside and outside in order to reflect our capabilities outside but also connect the people inside in a better manner and we are in this process already and we plan to conclude the decision.
Okay, so we wouldn't have any baggage from legacy brands. It would be something new. We also. Yes, that's the plan. Okay, thank you.
Our next question comes from Andrew Boone from JMP Securities. Please go ahead, your line is open. Great. Good morning and thanks for taking my questions. I wanted to ask about VITA free. It seems like a tremendous opportunity as you guys have, I would assume, exclusive access to a CTP streaming channel, an AVOD channel.
Can you just double click on what that could possibly mean? Help us understand what it is, the timing of it, and then just the overall opportunity. So basically VDI is creating channels, now streaming channels with content that they bring from from content partners. They created the TV on the OEM system and on the OEM with the operating system. And we have a specificity with them because of the thanks to the integrates, the investment that we've done with them of $25 million for a couple of years. So basically it will give us access to more media and exclusive manner.
a couple of years, US, Canada, Australia, and UK. And the meaning of that is that they are now building it. They already have a lot of traffic around the globe. But when you are looking at it, it will give us more and more unique and exclusive media that we can basically offer to our clients. And we are working with them now closely and adapting our technology.
in order to operate its globalis on their platform. Yes, and another just to you to understand, of course, the operating system is the one that is controlling what the user or the consumer will see on TV. So of course, they can control the level of exposure and the exact location of where their fast channel will be shown. So they can, like, put some kind of pressure or location. What do they...
balance you continue to operate with. Thanks so much. Sure. Yeah I think as offer mentioned in these words it's something that we are considering of course as you said our fundamentals are still very strong we are cash-generative profitable.
So as long as the share price and the valuation of the company will make sense for us to keep on and Adjusting our repair chest plan into a much massive one of course we are we will do that For now we announce like the 20 million dollars Repurchase on October which is closed to end and of course we'll take our decision in the next week
So as long as the share price and the valuation of the company will make sense for us to keep on and Adjusting our repair chest plan into a much massive one of course we are we will do that for now We announced like the 20 million dollars Repurchase on October which is closed to end and of course we'll take our decision in the next week Thank you guys
Thank you. Thank you. Our last question will come from Andrew Merrick from Raymond James. Please go ahead. Your line is open. Hi, guys. Thanks for taking my questions and apologies if these have already been answered, been bouncing around between a couple of calls. We heard commentary from other players in the space about 23 being an inflection year, not only in the amount of ABOT supply, but also the amount of inventory going biddable. What assumptions are you including in your outlook on these fronts? So you're talking about growth of media, right? Yes. So I think that usually you need, of course, in this case to have like the demand side, which means the budget that is coming from their clients.
that are pushing them through the agencies or directly to the platform. I think that most of the concern now is not about the media side. I think that we have very big reach in the market around TV, around online video display and every other format. I think this is not a challenge. I think the challenge in the market now is the level of investment that the advertisers are willing to put in the market, which is it's meaningful for the market to grow.
Because if we look at the results and the summary of a lot of companies that are buying media in the market in order to promote their services and product, you see that they are cutting their spend basically they are cutting their investment in media and so on. So I think that the challenge is not on the side of the media is on the side of the advertiser slash agencies that are basically moving the market and I think that on that side we see that a lot of the advertisers and agencies are lowering their spend in the past year and.
They still it's not I don't know if we I don't know if I hope and our assumption it will not get worse than Then today, but we saw the last day Let's say close to a year now since February last year We saw like a a lower span from a lot of the advertisers that we are working with And if you look at our peers, I think that they're experienced the same Yeah in addition. I think that
We have some kind of advantage here because we just got from the investment in a mobile an 80V tool which is a planning tool for linear TV. And now this planning tool knows how to take linear TV campaigns and find the same audience on digital. So this is give us some kind of advantage where an advertiser slash agency slash customer wants now to find his audience. And it can very quickly find it through linear into digital and vice versa which I'm not sure that most of our competitors as this technological ability right now.
Great, thank you. And then just lastly, on the guidance with your commentary around 5% combined pro forma programmatic growth, just want to be 100% clear that I understand the definition of what pro forma is and kind of what assumptions you're baking in for a mobile as well. Thank you. Thank you.
Yes, so when we're saying on a performance basis, we are meaning that if we are taking 2022 and adding the tremor numbers into a mobile number on a full-year basis, this is what we are calling performance basis. So this number or this programmatic number, we grow in 2023 by 5%, and it will be offset by the decline of the non-correctivity, which is performance. Thank you. Thank you. Thank you. Thank you.
We have no further questions in queue. I would like to turn the call back over to Overturker for closing remarks. Thank you everyone. First of all, for your time, I think that for us, it's very exciting because 2022 was a very important from strategic point of view building the future. We basically enhance our capability and extend them also to planning, which I feel that this period of time that the market is staff. People want to get more out of their money. So if they will use our tools, they will be able to drive.
additional results from the same budget because of better planning which I feel that is very important. It's giving us also ability to grow the enterprise solution that we are offering in the market and I think that is also very important for long-term. And also the investment in V-DIS, we just discussed CTV, we already see very strong.
The results coming from our company in CTV growing 59% in fourth quarter, 41% in full year. It's very meaningful and I think that it's thanks to our basically creativity, innovation around technology, about our assets, about our reaching the market. And I think that the cooperation investment in Vida with just in assets, as Laura mentioned in ACR is very well, their asset in this market and when you have it you can gain a lot from that. And the second thing is also...
What we mentioned about Vida3 and Vida3ming, which is giving us a lot of more media on exclusive level that is very important in this market. So I feel that the future is like 2022 was very meaningful for the company for the long term. We made this to investment of a mobile. And Vida, that all of them are driving in the NNC, our capabilities around TV, CTV, data and video as we are doing for the last several years. But even in a tough period of time, I think that when we're looking at the long term, I think that we are on the right direction.
And we feel excited and secure about our future. So thank you very much and hope to see you soon in our next episode. This concludes today's conference call. Thank you for your participation. You may now disconnect.