Q4 2023 Nexxen International Ltd Earnings Call

March 6, 2024

Welcome to <unk> earnings call for the three and 12 months ended December 31st strike have 20 feet. 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 call is being recorded and a replay of today's call will be made available on <unk> Investor Relations website.

I will now hand, the call over to Bill the accurate Vice President of Investor Relations for introductions and the reading of the Safe Harbor statement Bill. Please go ahead.

Thank you operator, good morning, everyone and welcome to our first official earnings call as an accident.

During today's call, we will discuss our financial and operating results for the three and 12 months ended December 31, 2023, as well as our forward looking guidance.

Billy Eckert: We advise caution and reliance on forward-looking statements. These statements include, without limitation, statements and projections regarding our anticipated future financial and operating performance, market opportunity, growth prospects, strategy, financial outlook, partnerships and anticipated benefits related to those partnerships, infrastructural views on macroeconomic and industry conditions, as well as any other statements concerning the expected development, performance of market share, or competitive performance relating to our products or services. All forward-looking statements are based on information available to us as of the date of this call. These statements involve known and 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 or unexpected changes in macroeconomic or industry conditions.

This morning, we issued a press release, which you can access on our updated IR website at investors <unk> Dot com.

Please note all financial results you hear on today's call for the three and 12 months ended December 31, 2023, as well as the three months ended December 31, 2020 to reflect the combined financial performance of next minute movie while results for the 12 months ended December 31 2022 include results from them will be only from September 12, 2022 through December 31 2022.

Given all that transpired in 2023, including a rebrand index and the completed integration of Amobi waterproofing this quarter's call a bit differently.

During today's call and only for this quarter, you'll hear from our Chief product Officer, <unk>, <unk>, who will set the stage for how the digital advertising industry is evolving and how our platform and business model positions us for success now and in the future.

Then I will turn the call over to our Chief Executive Officer.

Here to discuss amongst other things the evolution of our strategic business partnership and revenue initiatives and follow that with an overview of our Q4 and full year 2023 financial results and update on our forward looking guidance for our Chief Financial Officer, Siggi Neary before turning the call back over for closing remarks.

During today's conference call, we will make forward looking statements all statements other than statements of historical fact could be deemed as forward looking we advise caution and reliance on forward looking statements.

Billy Eckert: More detailed information about these risk factors and additional risk factors is set forth in our filings with the U.S. Securities 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. Nexen does not intend to update or alter its forward-looking statements, whether as a result of new information at future events or otherwise, except as 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 and reconciliations of IFRS to non-IFRS results. At this time, it is my pleasure to introduce Karim Rayes, Nexen's Chief Product Officer. Karim, please go ahead.

These include without limitation statements and projections regarding our anticipated future financial and operating performance market opportunity growth prospects strategy financial outlook partnerships and anticipated benefits related to those partnerships and forward looking views are macroeconomic and industry conditions as well as any other statements concerning the expected development performance in market share or competitive performance.

Relating to our products or services all forward looking statements are based on information available to us after the date of this call.

Fitments involve known and 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 or unexpected changes in macroeconomic or industry conditions.

More detailed information about these risk factors and additional risk factors are set forth in our filings with the U S Securities 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 next and does not intend to update or alter its forward looking statements, whether as a result of new information future events or otherwise except as required by law.

Karim Rayes: Thanks, Billy. Hello, and welcome to everyone joining us today. As Billy noted, I'm Karim Rayes, and I'm the Chief Product Officer at Nexen, and I've served in the role for over five years. Without a doubt, 2023 was a transformational year for Nexen, highlighted by major advancements and enhancement to our technology and products, which is why we felt it was fitting for me to open the call today. In 2023, we rebranded the company and integrated the largest acquisition in our history, strengthened our tech and data assets, and enhanced our talent base with industry-leading experts and ad tech veterans. With all this happening, it was a bit difficult to articulate our story, value proposition, and industry position in real time. So before Ofer provides an update on our strategic business initiatives, I will provide a brief overview of the industry and highlight why we are confident that our tech platform and models differentiate.

Additionally, the company's press release and management statements. During this conference call will include discussions of certain measures and financial information in <unk> and non Ifr's terms.

We refer you to the company's press release for additional details, including definitions of non <unk> items and reconciliations of <unk> non <unk> results. At this time. It is my pleasure to introduce <unk> Chief product Officer. Colin. Please go ahead. Thanks.

Thanks, Billy Hello, and welcome to everyone joining us today as Billy noted I'm, Karen <unk> and I'm, the Chief product officer at Nextgen served in the role for over five years.

Without a doubt 2023 was a transformational year for <unk> highlighted by a major advancement and enhancements of our technology and product, which is why we felt it was sitting for me to open the call today.

In 2020, we rebranded the company integrated the largest acquisition in our industry strengthening our tech and data assets and enhanced our talent base with industry, leading experts in that take better it.

With all this happening it was a bit difficult charge affiliate, our story and value proposition and industry positioning in real time.

So before ultra provides an update on our strategic business initiatives I will provide a brief overview of the industry and highlight why we are confident our tech platform model differentiate it.

I will also say and why our model enables us to help customer to flexibility and greater success in both the current and future digital advertising ecosystem enables our customers to address challenges like cookie deprecation and strongly position us for long term growth and market share gain.

Karim Rayes: I will also explain why our model and platform enables us to help customers achieve flexibility and greater success in both the current and future digital advertising ecosystems, enabling our customers to address challenges like cookie deprecation, and strongly position us for long-term growth and market share gain. The industry has undergone significant changes over the past few years that have driven advertisers and agencies to become more sophisticated and rely heavily on data and technology to navigate a fragmented and rapidly evolving digital media landscape.

The industry has undergone significant changes over the past two years that have driven advertisers and agencies to become more sophisticated and rely heavily on data and technology to navigate a fragmented and rapidly evolving digital media landscape.

Karim Rayes: Because potential touchpoints with customers exist across an increasing number of formats and devices, advanced technology and strong data capabilities are critical to enable advertisers to reach their KPIs. This has driven advertisers to shift from exclusively buying media to buying against audiences by working with data-fueled ad tech partners like Nexen that offer the type of granular solutions that solve for the challenging task of identifying and reaching target audiences. These targeting strategies are being challenged, and finding solutions for our customers is more important than ever, as we've seen companies like Apple enact significant changes that affect the ability of apps to track users and share data with third parties. Google has also started deprecating cookies, which, over time, will no longer be a viable option to help advertisers track.

Because potential touch points with customers exist across an increasing number of formats and devices advanced technology and strong data capabilities are critical to enable advertisers to reach their API.

This has driven advertisers to shift from exclusively by media to buying audiences by working with data fueled asset partners like next and that offers the type of granular solution. Thus far for the challenging task, but that is playing in reaching target audiences.

These targeting strategies are being challenged in finding solutions for our customers is more important than ever as we have seen companies like Apple and significant changes that affect the ability of us to attract users and share data with third party Google.

Google has also started deprecating cookies, which overtime will no longer be a viable option to help advertisers track users.

Fortunately, we have been investing in fulsome tackled these challenges and believe we are well positioned to take advantage of this disruption to capture market share.

Karim Rayes: Fortunately, we've been investing in solutions to tackle these challenges and believe we are well positioned to take advantage of these disruptions to capture market share. Nexen has built and developed an incredibly advanced tech and data stack that not only helps customers navigate these challenges but also enables them to drive enhanced return on investment and reach their target audiences regardless of where they consume content. Our platform unites some of the most comprehensive and forward-thinking tech and data solutions in the programmatic marketplace, enabling greater efficiency and effectiveness for our customers on both sides of the equation. Over the last seven years, we've successfully integrated five major strategic acquisitions, resulting in the creation of an advanced and unified full-tech stack. Our platform offers state-of-the-art self-service DSP, data-driven creative solutions, a self-service SSP with strong video and CTV capabilities, and a TV ad server, all connected via a robust data, planning, and identity platform.

Next one is build and develop an incredibly advanced tech and data that not only help customers navigate these townsend, but also enables them to drive enhanced return on investment and reach their target audiences, regardless of where they consume content.

Our platform units some of the most comprehensive and forward thinking tech and data solutions and programmatic marketplace, enabling greater efficiency and effectiveness for our customers on both side of the ecosystem.

Over the last seven years, we've successfully integrated five major strategic acquisition, resulting in accretion of an advanced and unified cortex deck.

Our platform offers state of the art self service DSP data driven creative solution, a self service SSP with strong video and CTV capabilities and TV ads. They are all connected via our robust data planning an identity platform.

Karim Rayes: This unified platform focuses primarily on helping customers maximize their outcomes by leveraging data to achieve powerful results across their program activities. Including all the acquisitions Exxon has made and the R&D investment by those companies prior to our acquisition, as well as the investments we've made integrating those companies, we estimate that roughly $1 billion of total R&D investment has gone into the creation and unification of our platform.

This unified platform focuses primarily on helping customers maximize their outcome by leveraging data to achieve powerful results across our programmatic activities.

Including all of the acquisitions that <unk> made and the R&D investment by those companies prior to our acquisition as well as the investments we've made integrating those companies we estimate that roughly $1 billion of total R&D investment has gone into the creation and unification of our platform.

Karim Rayes: As I mentioned earlier, it is imperative that advertisers continue to have the ability to leverage data to find and reach target audiences. It's hard to emphasize that point enough, which is why we feel we have significant differentiators for our data platform, which sits between our DSP and us. Our platform ingests data from several sources, including first-party data onboarded directly from our customers, unique Nexen data assets, and multiple third-party data sources from web, social media, mobile, linear TV, and digital television environments.

As I mentioned earlier it is imperative that advertisers continue to have the ability to leverage data to find and reach target audiences.

Let's talk to underscore that point enough, which is why we feel we have significant differentiators for our data platform, which sits between espns therapy.

Our platform Ingests data from several sources, including first party data onboard or directly from our customers unique next and data assets and multiple third party data sources from web social media mobile linear TV and digital TV environments. Our customers can leverage this data to plan activate and measure their campaigns on our platform.

Karim Rayes: Our customers can leverage this data to plan, activate, and measure their campaigns on our platform, as well as amplify the profile and reach of their own first-party customer data to achieve better results and greater efficiency, while also benefiting from isolation against data privacy changes and reducing overall tech costs. To put the scale of our data footprint into perspective, we work with over 1,000 advertising agency customers, as well as over 1,600 publisher customers, and have third-party data relationships with over 65 partners, including LiveRamp, Experian, Lumen, and others. We also have access to TV and streaming viewership data across roughly 50 million U.S. households through partnerships with major TV and streaming data players such as Vita, Hisense, and Paralogic.

This was amplified the profile and reach of their own first party customer data to achieve better results and greater efficiencies. While also benefiting from installation against data privacy changes and reduce overall debt cost.

To put the scale of our data footprint perspective, we work with over 1000 advertisers and agency customers as well as over 600 publisher customers and that third party data relationships with over 65 partners, including <unk> experienced lumen and others.

We also have access to TVN screening viewership data across roughly 50 million U S households through partnership with major TV streaming data players such as meter high Simpson pure logic.

Karim Rayes: Our platform has direct access to publish ads on roughly 225,000 sites and apps and handles roughly 199 billion daily ad requests. Roughly 86% of our campaigns are now data-enabled, and 39% of all campaigns are using our first-party Nexum data. We believe that as data is becoming more valuable to our customers, so too is the value proposition of our platform. A large part of our focus for 2023 was on the integration of our latest acquisition, mobile. Merging the two platforms while retaining the best assets each platform has to offer while also bringing new solutions to market was a Herculean task, and I would like to thank our product and R&D teams for their hard work in achieving this goal in an incredibly short period of time.

Our platform is the best access to publish that on roughly 225000 sites and apps and handles roughly 199 billion daily ad requests.

86% of our campaigns on albeit at enable and 39% of all campaigns are you or anything else first party mix them data.

We believe that as data is becoming more valuable to our customers. So too has the value proposition of our platform.

A large part of our focus throughout 2023 was done the integration of our latest acquisition MLP.

Merging the two platform, while retaining the best assets each platform Hutzell offer while also bringing new solutions to market within a herculean task and I would like to take our product and R&D teams for their hard work to achieve this goal in an incredibly short period of time.

Karim Rayes: It was critical for us to complete this integration as quickly as possible to continue to accelerate our rate of innovation in 2024 and beyond. With the successful completion of this integration, we have further differentiated and enhanced our platform for our customers. From a technology perspective, the acquisition was beneficial for several reasons, but I'd like to specifically highlight three key products that significantly improved our solution in the market. The first is the MLB DSP, which is now referred to as Nexon DSP after combining the Tremor Video DSP and following our rebrand.

It was critical for us to complete this integration as quickly as possible to continue to accelerate our rate of innovation in 2024 and beyond.

With the successful completion of its integration, we further differentiated and enhance our platform for our customers.

From a technology perspective, the acquisition was beneficial for several reasons, but I would like to specifically highlight three key products that significantly improved our solution in market.

The first is <unk>, which is now referred to as <unk> and DSP after combining the tremor video DSP and following our rebrand.

Karim Rayes: While we of course already operated a DSP prior to the acquisition, the addition of Amobi's DSP solution dramatically enhanced our self-service capabilities while enabling us to run campaigns more effectively across all formats. Moreover, the lower funnel performance tool in the AMOBIC platform combined with Tremor's PTV and video capabilities enables us to bring performance-related PTV products to market, directly tying outcome to delivery. The second product I'd like to highlight is our cross-screen TV panning solution, which now enables us to pan across both linear and digital TV from the start for our customers. This is an important product that enables our clients to win now and in the future, as viewership is not only moving from traditional linear TV to digital, but because it's also still common to see customers use both mediums in parallel. We are confident that our cross-streamed planner provides the optimal holistic view necessary to effectively plan and maximize the reach of campaigns across the entire TGA.

While we of course already operated a DSP prior to the acquisition. The addition of <unk> DSP solution dramatically enhanced our self service capabilities, while enabling us to run campaigns more effectively across all formats.

Moreover, the lower followed performance pull in the multi platform combined with tremors CTV and video capability enables us to break performance related to PPE products to market directly tying outcome to delivery.

The second product I would like to highlight is our cross screen TV planning solution, which now enables us to plan across both linear and digital TV from the onset for our customers' campaigns.

This is an important product that enables our clients to win now and in the future as your ship is not only moving from traditional linear TV to digital but because it's also still competency customers both mediums in parallel.

We are confident that our cross few kleiner provides the optimal holistic view necessary to effectively plan and maximize the reach of campaign across the entire television ecosystem.

Karim Rayes: Finally, I want to highlight our Nexen Discovery Platform, which we also gained through the MLB Acquisition. This tool sits at the heart of our audience planning capabilities and is powered by proprietary panels leveraging and combining web, social media, TV, and first-party audience data to help us identify and target the right users at the right time. Nexen Discovery is also an important component to our cookie deprecation strategies as it enables us to create custom cookie-less audiences for our customers.

Finally, I want to highlight is our <unk> discovery platform, which we also gained towards the MLP acquisition.

It still sits at the heart of our planning capabilities and is powered by proprietary panels, leveraging and combining web social media TV and first party audience data to help us identify and target the right users at the right time.

Nexen discovery is also an important component to our cookie deprecation strategy enables us to create custom curricular audiences for our customers.

Karim Rayes: With this latest integration complete, we now operate a self-service platform that can plan holistic TV campaigns, find and reach audiences wherever they consume media, have direct access to premium supply, and provide cost advantages for customers by entering, strongly differentiating us with advertisers, agencies, and publishers. As our partners generate stronger comparative returns on a singular platform that solves their holistic needs, we believe they will allocate more budget to that platform over time and be more willing to adopt additional solutions. This concept is foundational to our strategy.

With this latest integration complete we now operate a self service platform that can plan holistic TV campaign, finding refinances wherever they consume media have direct packaging premium supply and provide cost advantages for customers by entering finally, differentiating us with advertisers agencies and publishers.

As our partners generate prior comparative return square a singular platform that solves their holistic needs. We believe they will allocate more budget to that platform over time and be more willing to adopt additional solutions.

This concept is foundational to our strategy, we believe that our technology positions us well to attract new customers and increased spending and product adoption over time with existing customers.

Karim Rayes: We believe that our technology positions us as well to attract new customers and increase spending and product adoption over time with existing ones. Further, as we continue to grow our contribution at XTAC, our platform will achieve high levels of operating leverage, which will result in increased profitability. This enables us to make additional strategic investments in our platform to build new products and fuel further tech innovation that benefits customers, further optimizing their return, and ultimately driving more budget and spending to our platform. As for our platform's overall capabilities, we believe that we now have all the key pieces in place to optimally service customers in the programmatic marketplace without the need for a major acquisition anytime soon. Looking forward, we also feel confident in our ability to navigate the new challenges facing our industry, particularly around identity and privacy regulation.

Further as we continue to grow our contribution ex Tac our platform will achieve a high level of operating leverage which should result in increased profitability.

This enables us to make additional strategic investments in our platform to build new products and fuel for tech innovation that benefits customers further optimizing their return and ultimately driving more budget and spending to our platform.

In terms of our platform holistic capability, we believe that we now have all the key pieces in place needs to optimally service customers in the programmatic marketplace without the need for a major acquisition anytime soon.

Looking forward we.

So feel confident in our ability to navigate the new challenges facing our industry, particularly around identity and privacy regulation changes.

In addition to the cost benefit of our endpoint platform. The strategy also enables us to bring a unified identity solution to market as our demand and supply platform shared the same person household identity graph.

We're in the cusp of bringing to market a new unified I'd any pollution not only incorporates traditional identifiers like device Ids and cookies, but also includes other major universal IV solutions, including <unk> and ramp heightening.

Karim Rayes: In addition to the cost-benefit of our end-to-end platform, this strategy also enables us to bring a unified and energy solution to market as our demand and supply platform share the same person and household identity graph. We're in the process of bringing to market a new unified identity solution that not only incorporates traditional identifiers like device IDs and cookies but also includes other major universal ID solutions including UID2 and RANPID At the heart of this graph sits the next-in-person and household ID.

At the heart of this graph since the next person in the household IV. This technology paired with our end to end platform enables us to seamlessly onboard and deploy audience because that scale across our ecosystem for frictionless planning activation and measurement of advertising campaign.

Beyond our core identity solution. We also operate proprietary contextual targeting products powered by next in discovery and are early adopters of Google privacy sandbox.

Our goal is to provide our customers with both choice and flexibility in navigating the challenges facing our industry.

While disruption brings both risk and opportunity we see these changes to identity as an opportunity for us to gain market share because of the way, we've intensely built and develop our tech product and data stack.

In 2024, we will continue to focus on enhancing and expanding our self service enterprise capabilities to increase the attractiveness of our platform.

Karim Rayes: This technology, paired with our end-to-end platform, enables us to seamlessly onboard and deploy audiences at scale across our ecosystem for frictionless planning, activation, and measurement of advertising campaigns. Beyond our core identity solution, we also operate proprietary contextual targeting products powered by Next and Discovery, and are early adopters of Google Privacy Standards. Our goal is to provide our customers with both choice and flexibility in navigating the challenges facing our industry. While disruption brings both risk and opportunity, we see these changes to identity as an opportunity for us to gain market share because of the way we've intentionally built and developed our tech, product, and data stack. In 2024, we'll continue to focus on enhancing and expanding our self-service enterprise capabilities to increase the attractiveness of our platform. Also, with the AMOBI integration behind us, resources previously dedicated to the integration have been redirected toward innovation. For example, we've been developing solutions leveraging AI and machine learning to speed up development times, improve our algorithms, and enhance our audience discovery and activation tools.

So with the <unk> integration behind US resources previously dedicated to the integration have been redirected towards innovation.

For example, we've been Devil of Ping solutions, leveraging AI and machine learning to speed up development time improve our algorithms and enhance our audience discovery and activation tool.

We're also putting significant focus on continuing to enhance our ACR data capabilities as we seek to expand to new international markets and integrate with new strategic partners.

I'm incredibly excited to be part of the second data forward company that is well positioned to grow digital advertising market share as we continue to work hard to capitalize on the opportunities that lie ahead of us.

With that I'm happy to turn the call over to Ofer.

Thank you Carrie.

Great overview and explanation of our tech ecosystem capabilities and differentiated model.

This sets us for.

<unk> success to gain share in the digital advertising ecosystem.

Welcome everyone to our first earnings call after rebranding <unk>.

We celebrated on February 28.

We rang the NASDAQ closing Bell in times square.

Well auto perspective, JBC curious here before all brands under the Mexican now reflects the true strength and value proposition already Tyler Tech stack offers customers and prospects and we expect it will open doors to larger multi solution deals over time.

Karim Rayes: We're also putting a significant focus on continuing to enhance our HPR data capabilities as we seek to expand to new international markets and integrate with new strategic partners. I'm incredibly excited to be part of a tech and data-driven company that is well positioned to grow its digital advertising market share as we continue to work hard to capitalize on the opportunities that lie ahead of us. With that, I'm happy to turn the call over to Ofer.

We believe the rebrand combined with the steps taken in 2023 to increase brand awareness and better position, our salesforce and product marketing narrative is beginning to play off.

We are excited to see these efforts continue to gain traction.

We have continued to focus on growing our streaming TV.

Please proceed.

And expanding our customer offerings.

<unk> be probably industry maybe.

Maybe two do you think our newest thick and fast and capabilities to position ourselves to drive significant long term partnership with major OTT players and agencies.

Ofer Druker: Thank you, Karim. That was a great overview and explanation of how our tech ecosystem, capabilities, and differentiated model positions us for success and to gain share in the digital advertising ecosystem. I welcome everyone to our first early call after rebranding to Nexen, which we celebrated on February 28th when we rang the Nasdaq closing bell in time. From our perspective, the unification of our brands under Next and Now reflects the true strength and value proposition our entire tech stack offers customers and processes, and we expect it will open doors to larger multi-solution deals over time. We believe the rebrand combined with the steps taken in 2023 to increase brand awareness and better position our salesforce and product marketing narrative is beginning to pay off, and we are excited to see this effort continue to gain traction.

We are.

On further enhancing our presence in broader streaming and CTV advertising ecosystem.

Im confident this will serve as a long term growth driver for next it given our long steel dreaming, DNA and strategic positioning within video and CTV.

We believe our strategic emphasis and indexing towards this strength will enable us to achieve outsized long term growth, particularly as customers seek premium advertising solution as market headwinds.

To become tailwind.

Cautious optimism for 2024.

I am pleased to report we are once again working with LG one of their main CTV players in the industry after years of not doing business together.

Following a favorable settlement agreements and multiyear strategic partnership with Alphonso at Engie.

Through this strategic partnership Nexon gave important access to monetize some of your premium.

Ofer Druker: We have continued to focus on growing our streaming, TV, and data relationship in answering and expanding our customer offerings, building deeper industry ties, and introducing our newest tech and data capabilities to position ourselves to drive significant long-term partnerships with major TV players in Asia. We are hyper-focused on further enhancing our presence in broader streaming and CTV advertising ecosystems and are confident this will serve as a long-term growth driver for Nexen, given our long-standing streaming DNA and strategic positioning within video and CTV. We believe our strategic emphasis and indexing towards these trends will enable us to achieve outsized long-term growth, particularly as customers seek premium advertising solutions as market headwinds reverse to become tailwinds, which we have I am pleased to report we are once again working with LG, one of the main CTV players in the industry, after years of not doing business together, following our favorable settlement agreements and multi-year strategic partnership with Alfonso and LG.

CTV inventory and Alfonzo will.

Leverage nexen, driven discovery and segmentation tools.

And advertisers and policies engagement on their media properties.

We look forward to Paul theory, with Alfonzo and edgy for years to come and to building a solid relationship with them to benefit customers in the CTV advertising arena.

With the addition of Reggie.

As you we can now proudly say.

Our strong relationship with all major CTV Oems, reflecting a massive value proposition for television advertising customers.

The Oems play an important role in the CTV ecosystem and it's important for a company like Nixon towards strong.

The ship with them to benefit advertisers and agency customers seeking to gain significantly expanded global audience reach with instruments. For example, despite the call CTV OEM strategy, we expanded our strategic focus group with Tcl.

Okay.

Beyond solid granting.

Or is it customers access to CTV and OTT supply.

Do you see as Sammy also exclusively sell PCL native display inventory as a preferred supplier.

These deepened partnership enables <unk> to offer customers extended reach across the significant and growing number of PV screens with flexibility across formats.

Outcomes, especially when combined with the overall lease created in combination with our other.

Other major TV partnerships.

In addition, we teamed up with out of advertising, we will see.

To broaden our CTV out of opportunities for clients across the advertising ecosystems.

With this partnership deliver immersive high impact AD experience by reaching audiences on screen, but both bulk and restaurants eating and other CTV touch points within our Louser CTV outperform offerings.

We also made strong ed waves, enhancing and expanding our TV intelligence solution into new markets.

Ofer Druker: The OEMs play an important role in the CTV ecosystem, and it's important for a company like Nexen to hold strong relationships with them to benefit advertisers and agency customers seeking to gain significantly expanded global audience reach potential. For example, as part of our CTV OEM strategy, we expanded our strategic partnership with TCL, Palco. We are solely granting our advertising customers access to CTV and OTT supply in the TCL channel to also exclusively sell TCL native display inventory as a preferred supply power.

Access to highly desirable television and streaming data, which we believe benefits customers looking to find and reach target audiences across the global streaming TV ecosystem.

We believe this vessel.

As to attract new customers and achieve outsized long term CTV revenue growth.

As the industry continues to increase with <unk>.

Rely on data to boost efficiency and effectiveness of advertising across the streaming in CTV landscape, we believe warm up and pending acquisition of vizio jointly highlights the value and importance the market and industry place on dotcom.

Ofer Druker: This deepened partnership enabled Nexen to offer customers expanded reach across a significant and growing number of TV screens, with flexibility across formats to enhance advertising outcomes, especially when combined with the overall reach created in combination with our other major TV partners. In addition, we teamed up with out-of-home advertising group teams to broaden our CTV out-of-home opportunities for clients across the advertising ecosystem. The TIFF partnership delivers an immersive, high-impact ad experience by reaching audiences on screens in Westport, Barton, and restaurants, hitting another CTV touchpoint within our larger CTV out-of-home offering.

Particularly ACI.

We also feel ACI about becoming more and more.

<unk> is the open way in our opinion warm up acquisition.

The highlights the incredible value of their multiyear exclusive global ACL that the agreement we have with Vida. The primary CTV operating system for Ics with Toshiba, which are some of the fastest growing CTV Oems.

Notably, we recently extended our TV intelligence solution with scaled premium on the go streaming platforms.

Platforms, like Netflix Hulu and D C plus through our new exclusive partnership with Dealogic.

These partnerships enable us to capture assuming viewership.

Ofer Druker: We also made strong headway enhancing and expanding our TV intelligence solution into new markets and increasing our access to highly desirable TV and streaming data, which we believe benefits customers looking to find and reach target audiences across the global streaming and TV ecosystem. We believe this effort positions us to attract new customers and achieve outsized long-term CTV revenue, as the industry continues to increasingly rely on data to boost efficiency and effectiveness advertising across the streaming and CTV lens. We believe Walmart's planned acquisition of Vizio strongly highlights the value and importance the market and industry place on that, particularly H.C. Alda. We also feel ACR data is becoming more and more of a rarity on the open web.

For audiences on mobile devices and tablets outside of connected TV.

Which we assign critical as consumers viewing preferences continue to evolve.

You simply seek flexibilities to stream content across several devices.

Our activity intelligence solution is an expensive that as I said that includes access to set top boxes traditional division ACL will undergo Jamie and cross screen panel data.

Kim currently provide insight into TV and streaming viewership data across roughly 50 million also in the U S.

Hello.

We also have the solution to advertiser customers to further differentiate our platform through access to critical scale data necessary to optimize streaming activity planning targeting and measurement.

Ofer Druker: In our opinion, Walmart's acquisition further highlights the incredible value of the multi-year exclusive global ACR data agreement we have with Vida, the primary CTV operating system for Iceland and Toshiba, which are some of the fastest growing CTV owners. Notably, we recently extended our TV intelligence solution with scaled premium on-the-go streaming data from platforms like Netflix, Ulu, and DC Plus through a new exclusive partnership with PeerLogic. This partnership enables us to capture streaming viewership data for audiences on mobile devices and tablets outside of connected TV, which we find critical as consumers' viewing preferences continue to evolve to increasingly seek flexibility to stream content across several devices. Our TV intelligence solution is an extensive data set that includes access to set-top boxes, traditional television, ACR, on-the-go streaming, and cross-screen panel data, and can currently provide insight into TV and streaming viewership data across roughly 50 million households in the U.S. alone.

This robust that's offering often results in our customers achieving enhanced.

And greater efficiency.

<unk> created through our planning tools can be seamlessly activated in campaigns through our DSP.

Our LTV intelligence offering has been pivotal in attracting additional advertising dollars and serve as a strong selling points for prospect in sales conversations, particularly around view ability.

It is important for many major verticals.

We believe it is a critical solution for customers looking to upgrade their planning and advertising efforts across the evolving and converging linear and streaming landscape.

Global ACL about that which we can exclusively monetize through our SDK is integrated into license and other it'll be done powered TV flows through our data platform and TV intelligence solutions.

License was the second largest distributors of multi base globally in 2023.

Near the end of 2023 Vida announced they so fast.

<unk> of over 25 million connected TV market.

They already exceeded 26 million so far in 2020 for VITAS.

<unk> usage has been growing dramatically during December 2023, visa users generated over 2 billion.

Ofer Druker: We offer this solution to advertiser customers to further differentiate our platform through access to critical scale data necessary to optimize streaming and TV planning, targeting, and measuring. This robust data offering often results in our customers achieving enhanced ROI and greater efficiency as plans created through our planning tools can be seamlessly activated in campaigns through our DFP. Our TV intelligence offering has been pivotal in attracting additional advertising dollars and serves as a strong selling point for prospects in sales conversations, particularly around viewability, which is important for many major vendors. We believe it is a critical solution for customers looking to upgrade their planning and advertising efforts across the evolving and converging linear and streaming landscape. VDAV global ACR data, which we can exclusively monetize through our SDK integrated into iSense and other VDAV Power TV flows through our data platform and TV intelligence solutions. iSense was the second largest distributor of smart TVs globally in 2023.

Matthew streaming hours.

As a reminder, vida serves as the primary CTV operating system for <unk>, Toshiba Smart Tvs and a subsidiary of prices. So license is highly aligned with <unk> growth strategy.

Veeva in Ics rapidly growing TV footprints, they've also enabled us to scale necessary to offer them a receiver intelligence solution outside the U S to markets such as the UK, which launched in Q4.

Since we launched.

K TV viewership ods offerings, we've seen notable customers adoption, which drove an uptick in advertising dollars flowing through our platform in that market, which we expect to reflect a significant growth opportunity in 2024 and beyond.

In 2012, before we will look to expand the offering to additionally, European and other international markets, giving us additional international growth pathways.

The value proposition of small TVA ACO that that is becoming more and more obvious and compelling for both advertisers and partners seeking to license the doctor to use to their clients again. This is evidenced by what Walmart. This in February when it announced.

Then to acquire visual.

A major smart TV Oems with its own CTV operating systems.

Ofer Druker: Near the end of 2023, VEDA announced they saw past a reach of over 25 million connected TVs in March and announced they had already exceeded 26 million so far in 2024. VDAS usage has been growing dramatically, and during December 2023, VDAS users generated over 2 billion monthly streaming hours. As a reminder, VIDA serves as the primary CTV operating system for iSense and Toshiba smart TVs and a subsidiary of iSense.

What about understand that to win with advertisers and grow its advertising revenue.

LTV and operating systems, all a tremendous amount of critical consumers and also better.

It's incredibly effective to enable advertisers to reach target audiences.

This is the exact reason next since investment in feedback and long term partnership with them you saw unique and differentiating.

That's a partnership like we have with visa we have exclusive rights to distribute their global ACI.

Ofer Druker: So iSense is highly aligned with Vida's growth strategy. Vida and iSearch's rapidly growing TV footprint have also enabled us to scale the necessary to offer our TV intelligence solution outside the US to markets such as the UK, which launched in Q4. Since we launched our UK TV viewership audience offering, we've seen notable customer adoption, which drove an uptick in advertising dollars flowing through our platform in debt markets, which we expect to reflect a significant growth opportunity in 2024 and beyond. In 2024, we will look to extend the offering to additional European and other international markets, giving us additional international growth potential. The value proposition of Smart TV HDR data is becoming more and more obvious and compelling for both advertisers and partners seeking to license the data to use for their clients.

At least the end of 2026 are also enabling us to diversify into.

Licensing revenue streams, reflecting an exciting growth trajectory a new frontier for our business. We are seeing significant demand for data licensing partnership.

Measurements and planning providers and four major DSP is seeking.

Seeking to leverage this growing footprint of global TV audience targeting we believe our ability to distribute this data for licensing purposes, not only reflects the strong growth opportunity, but also helps expand our recognition we did the industry better enabling us to solidify our leadership.

Issued within the TV and technical assistance.

Next one discovery that are fueled by to ingest content consumption.

To enhance audience knowledge.

Extended reach is also continuing to differentiate our holistic platform offering and is attracting higher levels of spending from new and existing customers.

Ofer Druker: Again, this is evident by what Walmart did in February when it announced its intent to acquire this business, a major smart TV OEM with its own CTV operating system. Walmart understands that to win with advertisers and grow its advertising revenue, the smart TV and operating systems hold a tremendous amount of critical consumer and household data that is incredibly effective to enable advertisers to reach target audiences. This is the exact reason Nexen's investment in Vida and long-term partnership with them is so unique and differentiating. Data partnerships like we have with Vida, where we have the exclusive right to distribute their global ACR data to at least the end of 2026, are also enabling us to diversify into data licensing revenue streams, reflecting an exciting growth trajectory, and a new frontier for our business.

Next one discovery has been adopted by key industry partners and we feel we are bringing this powerful solution to market at the right time.

I would expect it to be a record setting year in the U S for political.

<unk>.

Thanks to the discovery too we're seeing significant interest from political advertisers and agencies ahead of the U S election cycle later this year.

In previous cycles political wasn't that incredibly material vertical for us.

However, with the addition of excellent discovery and an increased dedicated sales focus on the royalty cause this could change in an election year.

E marketer estimated over $12 billion in U S political ad spending.

Dissipate a record setting year for political TV AD spending in the U S.

This into growing our partnership expanding all of that the scale and reach and diversifying our revenue base. We were also successful in Q4 and throughout 2023, adding new customers on the buy and sell side of the ecosystem, while continuing to retain our major customers.

Ofer Druker: We are seeing significant demand for data licensing partnerships for measurement and planning providers and for major DSPs seeking to leverage this growing footprint of global TV data for audience targets. We believe our ability to distribute this data for licensing purposes not only reflects a strong growth opportunity but also helps expand our recognition within the industry, better enabling us to solidify our leadership position within the TV and tech economy. Next on Discovery, our data-fueled BI tool that ingests content consumption data to enhance audience knowledge for extended reach, is also continuing to differentiate our holistic platform offering and is attracting higher levels of spending from new and existing customers. Nexen Discovery has been adopted by key industry partners, and we feel we are bringing this powerful solution to market at the right time, ahead of what is expected to be a record-setting year in the U.S. for political expenditure Thanks to the Discovery Tool, we are seeing significant interest from political advertisers and agencies ahead of the U.S. election cycle later this year. In previous cycles, politics wasn't an incredibly material, vertical form.

During Q4, we added 111, you actively spending first time advertisers customers' growth is the same in food and beverage automotive and finance verticals as well as others.

Also included the addition of 14, new enterprise sales services built agile customers highlighted by some of the worlds most recognizable CTV publishers broadcasters and CPG brands as well as the addition of three new independent agency leveraging us in the self serve capacity.

During 2023, we added an impressive 334, new actively spending first time customers.

The company also added 89.

Our supplier partners, including 78 in the U S.

In Q4 across several verticals of formats, including CTV broadcast TV mobile and mobile gaming publishers.

During 2023, we added 372, new supply policies.

237 were U S based.

Before I turn over the call I would like to add a personal note.

After years of working to acquire connect and headlines of innovation to our product lines I believe the combination of our rebranding and all the outward.

<unk> and tech teams to integrate that will be have led us to the point we are.

In our journey today, where we can bring a lot of value to customers across the ecosystem.

Ofer Druker: However, with the addition of Nexen Discovery and an increased dedicated self-focus on the verticals, this could change in an election year where e-marketers estimate over $12 billion in U.S. political ad spending and anticipate a record-setting year for political TV ad spending in the U.S. In addition to growing our partnership, expanding our data scale and reach, and diversifying our revenue base, we were also successful in Q4 and throughout 2023, adding new customers on the buy and sell sides of the ecosystem while continuing to retain our major customers. During Q4, we added 111 new active first-time advertisers, customers across entertainment, food, and beverage, automotive, and finance verticals, as well as others.

Now it's time for us to execute with that I'm happy to turn the call over to Siggi.

Thank you all fir today I will review the key financial and operational drivers.

Performance over the three and 12 months ended December 31, 2023, and we will also discuss our guidance.

In Q4, 2023, we generated contribution ex Tac of $95 million, reflecting a 12% decrease from Q4 2022.

This decrease was driven by continued challenging market condition that disproportionately impacted the budgets and spending on some of our highest spending small and midsized agencies.

Our heavily index a trend we experienced throughout 2023 as well as a continuing chief by those customers and address to our lower cost programmatic solution.

Full year 2023 contribution ex Tac increased over 1% compared to full year, 2022, and programmatic revenue or contribution ex Tac accretive to programmatic activities in our core business grew by roughly $24 $6 million, which slightly outpaced a roughly 22.

Ofer Druker: This also included the addition of 14 new enterprise self-service advertising customers, highlighted by some of the world's most recognizable CTV publishers, broadcasters, and CPG brands, as well as the addition of three new independent agencies leveraging us in a self-serve capacity. During 2023, we added an impressive 334 new actively spending first-time customers. The company also added 89 new supply partners, including 78 in the U.S.

Million dollar.

The decline in contribution ex Tac related to our noncore legacy non programmatic business line.

Throughout 2023 were impacted by challenges related to the complex integration of Amobi, which contributed to a weaker than initially anticipated contribution ex Tac.

Keep in mind with our model, we took roughly 1000 person company and integrated it with our preexisting employee base of around 600 inquiries to create a roughly 900 employee company at the end of 2023, and massive task, which required a tremendous amount of the management team's focus.

Ofer Druker: In Q4, across several verticals and formats, including CTV, broadcast TV, mobile, and mobile gaming public. During 2023, we added 372 new supply partners, of which 327 were U.S. Before I turn over the call, I would like to add a personal note. After years of working hard to acquire, connect, and add layers of innovation to our product lines, I believe the combination of our rebranding and all the artwork from our product and tech teams to integrate Amobi has led us to the point we are at in our journey today, where we can bring a lot of value to customers across the economy. Now it's time for us to execute. With that, I'm happy to turn the call over to Sagi. Thank you, Ofer.

When competitors were able to focus exclusively on teaching customers for 2023 as soon as the acquisition closed we were occupied we are redefining our offering refining our story in market as well as enhancing our platform capabilities talent base and marketing efforts for the longer term.

Additionally, the amount of time resources and focus required to combined platform and integrate <unk> established our sales leadership team and train our teams to sell and extended product suite negatively impacted sales growth largely through spending associated with several managed service client.

Sagi Niri: Today, I will review the key financial and operational drivers of our performance over the 3 and 12 months ended December 31st, 2023, and we'll also discuss our guidance. In Q4 2023, we generated a contribution exact of $90.5 million, reflecting a 12% decrease from Q4 2022. This decrease was driven by continuing challenging market conditions that disproportionately impacted the budgets and spending of some of our highest spending small and mid-sized agencies to whom we are heavily indexed.

But we now believe we have the right platform and team in place and are seeing notable improvements.

The good news is the bulk of these challenges are now behind us and we are confident that nexsan sales be strongly positioned to drive growth in 2024.

They are exclusively focused on selling as opposed to integration initiative and our armed with a significantly enhanced platform loaded within demand tech and data capabilities.

We continue to believe the short term pain related to integrating the movie will be well worth the long term gain.

We are also cautiously optimistic market condition will improve in 2024 and agency customers will increasingly migrate from the lower cost solutions.

Sagi Niri: This is a trend we experienced throughout 2023, as well as a continued shift by those customers and others to our lower-cost programmatic solutions. Full year 2023 contribution XTAC increased over 1% compared to full year 2022, as programmatic revenue or contribution XTAC attributable to programmatic activities in our core business grew by roughly $24.6 million, which slightly outpaced a roughly $20.2 million decline in contribution XTAC related Throughout 2023, we were impacted by challenges related to the complex integration of AMOBI, which contributed to a weaker than initially anticipated contribution.

So in 2020 free to our premium programmatic video and streaming solution that is.

CTV.

From a vertical perspective in Q4 2023, we experienced strength in China's education in automotive as well as in display and PMT.

Conversely, we observed weakness in entertainment, partially due to the Sag Aftra strike retail due to some of our agency account significantly reducing spending and CTV as customers continue to focus largely on lower cost options like display and mobile video.

Despite the migration by select customers through our lower cost solution. We were pleased the vast majority continuing to spend within our broad suite of offering highlighting the strength of our flexible and diversified business model.

Contribution ex Tac in Q4 and throughout 2023 was also impacted by a strategic mix shift towards self service enterprise solution, which carry lower take rate, but are favored by larger agencies opening a pathway to much larger volume deals over time.

Sagi Niri: Keep in mind, with Amobi, we took a roughly 1,000-person company and integrated it with our pre-existing employee base of around 600 employees to create a roughly 900-employee company at the end of 2023, a massive task which required a tremendous amount of the management team's focus. While competitors were able to focus exclusively on teaching customers for 2023, as soon as the acquisition closed, we were occupied with redefining our offering, refining our story in the market, as well as enhancing our platform capabilities, talent base, and marketing efforts for the longer term. Additionally, the amount of time, resources, and focus required to combine platforms and integrate Amobis tech, establish our sales leadership team, and train our team to sell an expanded product suite negatively impacted sales growth, largely through spending associated with several pre-managed service clients.

Self service enterprise solution are typically less vulnerable to advertising demand shock, which is the core reason we are focusing on self service and are accepting of some short term pain in order to capitalize on the long term gains we expect.

Since service contribution ex Tac dabbled in Q4, 2023 from Q4, 2022 and more than doubled in full year 2023 versus full year 2022.

Programmatic revenue was $86 million in Q4, 2023, reflecting a 9% decrease from Q4 2022.

Conversely, programmatic revenue for full year 2023 increased 9% from full year 2022, largely due to their mobile integration.

Programmatic revenue as a percentage of revenue increased to 90% for both Q4 and full year 2023 from 88% in Q4, 2022 and 82% in full year 2022.

Sagi Niri: But we now believe we have the right platform and team in place and are seeing notable improvements. The good news is the bulk of these challenges are now behind us, and we are confident that Nexen is strongly positioned to drive growth in 2024 as it is exclusively focused on selling as opposed to integration initiatives and is armed with a significantly enhanced platform loaded with in-demand tech and data capabilities. We continue to believe the short-term pain related to integrating Amovi will be well worth the long-term goal.

CTV revenue for Q4, 2023 was $19 $9 million, reflecting a decrease of 40% from Q4 2022.

We have recently observed what we believe to be a short term transition by some of our advertiser and agency customers away from CTV into lower cost solution like mobile video as well as display, which we believe reflects cost saving efforts and the evolution of streaming preferences and.

Tumors increasingly stream content to mobile phones and tablets in addition to connected TV.

Sagi Niri: We are also cautiously optimistic market conditions will improve in 2024 and agency customers will increasingly migrate from the lower cost solutions they sold in 2023 to our premium programmatic video and streaming solutions such as CTV. From a vertical perspective, in Q4 2023, we experienced strength in finance, education, and automotive, as well as in display and PMP. Conversely, we observed weakness in entertainment, partially due to the SAG-AFTRA strike.

Our platforms advanced at that planning and audience finding tool.

Are designed to help customers find audience target and extend reach regardless of where content is consumed.

Amit recent uncertainty that has impacted budget and spending less macro immune customers at our performance based programmatic solution and are trying to maximize audience reach through lower CPM option and don't necessarily care about the specific media or devices within our ecosystem.

Tim that will be signed users on.

To highlight this strong contribution ex tax for mobile increased 5% year over year.

Sagi Niri: Retail, due to some of our agency accounts, is significantly reducing spending, and CTV, as customers continue to focus largely on lower cost options like display and mobile video. Despite the migration by select customers to our lower-cost solution, we were pleased the vast majority continue to stand within our broad suite of offerings, highlighting the strength of our flexible and diversified business model. Contribution XTAC in Q4 and throughout 2023 was also impacted by a strategic makeshift towards self-service enterprise solutions, which carry lower take rates, but are favored by larger agencies, opening the pathway to much larger volume deals over time. Self-service enterprise solutions are typically less vulnerable to advertising demand shocks, which is a core reason we are focusing on self-service and are accepting of some short campaigns in order to capitalize on the long-term gains we expect. Self-service contribution extract doubled in Q4 2023 from Q4 2022 and more than doubled in fall year 2023 versus full year 2022. Programmatic revenue was $86 million in Q4 2023, reflecting a 9% decrease from the previous quarter.

Contribution ex Tac from display increased 21% year over year and contribution ex Tac from audio increased 71% year over year in Q4 2023.

As market conditions improve major streaming services like Amazon embraced AD supported model, attracting new advertisers to CTV and Nino Donald shift more aggressively to streaming we believe the CTV advertising demand will increase in the current supply versus demand imbalance will decrease resulting.

<unk> increased CTV pricing over time.

Despite near term weakness CTV will remain a key investment area and is expected to be a long term growth driver for nexsan.

As linear badger continued to shift toward and converge with digital we are well positioned to capitalize through our unique solution like our cross platform planner Nexsan discovery NPV intelligence.

CTV reflected 23% and 29% to <unk> programmatic revenue in Q4, and full year 2023, respectively, which we expect to expand over time as macro headwinds is AD budgets in CTV spending expand and CTV pricing dynamics improve.

Video revenue continued to account for most of our programmatic revenue at 67% in Q4, 2023, and 69% for full year 2023.

Although this percentage of failure over a year, we believe we remain well above the industry average.

Well, we have flexibility to service customers across display and video we continue to strongly believe that video is the best long term option for Nexsan and its advertisers as it reflects the most engaging format.

Sagi Niri: Conversely, programmatic revenue for full year 2023 increased 9% from full year 2022, largely due to the Amobi integration. Programmatic revenue, the percentage of revenue, increased to 90% for both Q4 and full year 2023, from 88% in Q4 2022 and 82% in full year 2023. KTV revenue for Q4 2023 was $19.9 million, reflecting a decrease of 40% from Q4 2022.

As market conditions improve we believe the shift towards display will reverse and when this happens we expect to achieve outsized growth because of our high exposure to and positioning within video.

The year over year decrease in video revenue as a percentage of programmatic revenue in Q4 was due to increased demand for display solution by select customers and year over year decline in <unk> revenue.

The full year 2023 versus 2022 decrease was a byproduct of larger programmatic revenue base.

Sagi Niri: We've recently observed what we believe to be a short-term transition by some of our advertisers and agency customers away from CTV into lower-cost solutions like mobile video, as well as digital, which we believe reflects cost-saving efforts and the evolution of streaming preferences as consumers increasingly stream content on mobile phones and tablets in addition to a connected TV. Our platform's advanced data, planning, and audience-finding tools are designed to help customers find audience targets and extend reach regardless of where content is contained. Amid recent uncertainty that has impacted budgets and spending, fewer macroimmune customers have sought our performance-based programmatic solution and are trying to maximize audience reach through lower CPM options and don't necessarily care about the specific media or devices within our ecosystem that they find users on. To highlight these funds, contribution x-tax from mobile increased 5% year-over-year. Contribution x-tax from display increased 21% year-over-year.

54% increase in display contribution ex Tac driven by the integration of MLB and diversification ink revenue streams like audio data and converged TV planning.

In full year 2023 versus full year 2022 contribution ex tax from our cross platform planner increased over 330% contribution ex Tac from our data products increased nearly 300% and contribution ex Tac from audio increased over 400.

Third 25%.

In Q4, 2023, we generated $32 million of adjusted EBITDA compared to $36 $9 million in Q4 2022.

Adjusted EBITDA was affected by MLB, whose business lines are less profitable than the pre acquisition standalone excellent business and a weaker comparative spending environments for some of our less macro immune customers.

As we said in the past as we generate higher levels of contribution ex Tac. The majority will flow through to adjusted EBITDA given the strength of our operating model, which provides strong an increasing degree of operating leverage which is the key reason our adjusted EBITDA margin expanded in Q4 2020.

Sagi Niri: And contribution x-tax from audio increased 71% year-over-year in Q4 2020. As market conditions improve, major streaming services like Amazon embrace ad-supported models, attracting new advertisers to CTV, and linear dollars shift more aggressively to streaming. We believe that CTV advertising demand will increase and the current supply versus demand imbalance will decrease, resulting in increased CTV pricing over time. Despite near-term weakness, TTV will remain a key investment area and is expected to be a long-term growth driver for next year. As linear budgets continue to shift towards and converge with digital, we are well positioned to capitalize through our unique solutions like our cross-platform planner, Nexen Discovery, and TV Intelligence. CTV reflected 23% and 29% of our programmatic revenue in Q4 and full year 2023, respectively, which we expect to expand over time. As macro headwinds ease, ad budgets and CTV spending expand, and CTV pricing dynamics improve. Video revenue continues to account for most of our programmatic revenue at 67% in Q4 2023 and 69% for full year 2021. Although this presented a failure over a year, we believe they remain well above the industry average.

Three compared to Q3 2023.

In Q4, 2023, we generated an adjusted EBITDA margin of 33% on a revenue basis and 35% on a contribution ex Tac basis compared to 34% on a revenue basis and 36% on a contribution ex Tac basis in Q4 2022.

We also achieved our net revenue retention rate of 73% during 2023 compared to 80% in 2022.

While the rate decreased due to reduced spending and shift to lower cost option by select customers. The company retained an overwhelming majority of its highest spending account and successfully added new customers on both sides of the ecosystem throughout the year.

Turning to our cash flow, we generated $43 6 million in net cash from operating activities. In Q4 2023 after generating net cash from operating activities of $23 $90 million in Q4 2022.

During 2020 free we incurred approximately $6 million in severance and retention bonus related costs associated with the reorganization of <unk> employees into next.

As of December 30, <unk>, we had $134 3 million in net cash and $80 million undrawn on our revolving credit facility.

We don't plan any major near term acquisition and believe we have all the critical.

Sagi Niri: While we have flexibility to serve its customers across display and video, we continue to strongly believe that video is the best long-term option for NextGen and its advertisers, as it is the most engaging format. As market conditions improve, we believe the shift toward display will reverse, and when this happens, we expect to achieve out-sized growth because of our high exposure to and positioning within. The year-over-year decrease in video revenue as a percentage of programmatic revenue in Q4 was due to increased demand for display solutions by select customers and a year-over-year decline in CTB revenue.

<unk>, our business need to succeed in the foreseeable future.

In the new term, we leverage our cash for the ongoing release of the business investment in internal growth and innovation initiatives as well as ongoing and potential future share repurchases.

For full year 2023 share based compensation was $19 2 million, which.

Which we expect to decrease in full year 2024.

We also generated non <unk> diluted earnings per ordinary share of 10% in Q4 2023 compared to <unk> 15 in Q4 2022.

In December 2023, we're excited to launch our new $20 million ordinary share repurchase program to take advantage of what we believe to be a discounted valuation opportunity.

In Q4, we repurchased 221500, <unk> ordinary shares, reflecting an investment of approximately 446000 tons or $566000.

Sagi Niri: The full year 2023 versus 2022 decrease was a byproduct of a larger programmatic revenue base, a 34% increase in display contribution exact, driven by the integration of Amobi and diversification into revenue streams like audio, data, and converged TV plans. In full year 2023 versus full year 2022, contribution x-tax from our cross-platform planner increased over 330%. Contribution x-tax from our data product increased nearly 300%, and contribution x-tax from audio increased over 425%. In Q4 2023, we generated $32 million of adjusted EBITDA compared to $36.9 million in Q4 2022. Adjusted EBITDA was affected by Amobi, whose business lines are less profitable than the pre-acquisition, standalone Nexen business, and a weaker comparative spending environment for some of our less macro-immune customers.

This investment will increase in Q1 as purchases in Q4 with minimal given the program didn't begin until December 'twenty.

The fares remains at what the board believes continuing to reflect discounted valuation level and the company remains cash generated as we currently anticipate we will consider launching further share repurchase program. After completing the current program.

Finally, I'll now turn to our outlook.

For full year 2024, we expect contribution ex Tac.

In a range of approximately $340 million to $345 million.

Adjusted EBITDA of approximately $100 million and anticipate programmatic revenue will reflect approximately 90% of full year 2020 for revenue.

For full year 2024, we expect R&D and sales and marketing expenses to reflect similar percentages of contribution ex Tac to full year 2020, free but for G&A and depreciation and amortization to decrease at percentages of contribution ex Tac compared to full year 2023.

Additionally, we anticipate increased diversification into scaling revenue stream like data licensing and audio and for CTV revenue to return to growth in full year 2024.

Sagi Niri: As we've seen in the past, as we generate higher levels of contribution x-tax, the majority will flow through to adjusted EBITDA. Given the strength of our operating model, which provides a strong and increasing degree of operating leverage, which is a key reason our adjusted EBITDA margin expanded in Q4 2023 compared to Q3 2023. In Q4 2023, we generated an adjusted EBITDA margin of 33% on a revenue basis and 35% on a contribution XTAC basis compared to 34% on a revenue basis and 36% on a contribution XTAC basis in Q4 2020. We also achieved a net revenue retention rate of 73% during 2023 compared to 80% in 2016. While the rate decreased due to reduced spending and a shift to lower cost options by select customers, the company retained an overwhelming majority of its highest spending accounts and successfully added new customers on both sides of the ecosystem throughout the year.

While ongoing near term uncertainty continues to impact budgets and spending for some of our customers and those customers are continuing to favor a lower cost solution. We are cautious optimism, we can achieve greater growth in 2024.

Our renewed focus on selling as opposed to integrating and our significantly enhanced tech and that affect positions us well and we believe we may begin to experience market tailwind as opposed to Edwin later this year.

We feel we provide a massive advantage for customers as we can service across the entire advertising supply chain has a long standing streaming DNA and United creating data best in class service and flexibility under one roof, enabling us to adapt to our customers' diverse needs and grow with them over time.

<unk>.

I believe we have a bright future ahead of us following the milestones our team achieved in 2023.

With my remarks completed I will turn the call back over to offer.

While the results in Q4 and throughout 2023 were challenged by difficult market and advertising conditions, particularly for our small and mid sized agency customers. We.

Sagi Niri: Turning to our cash flow, we generated $43.6 million in net cash from operating activities in Q4 2023 after generating net cash from operating activities of $23.9 million in Q4 2020. During 2023, we incurred approximately $6 million in severance and retention bonus related costs associated with the reorganization of Hamobi employees into NET. As of December 31st, we had $134.3 million in net cash and $80 million undrawn on our revolving credit sheet.

Phil we created a solid foundation for the future.

We completed the integration of our movie, which was the largest company we acquired while it was a challenge that required a massive amount of attention resources and energy, we've been able to make it happen through our unwavering focus on our vision and robust acquisition and integrate.

<unk> experience.

The acquisition bolsters, our self serve.

Thanks.

And Ed is unique and differentiated planning capabilities, such as the discovery tool and the ability to plan across the converged TV ecosystem, which we believe enable us to attract new customers and position our existing customers will fix this.

Sagi Niri: We don't plan any major new term acquisition and believe we have all the critical tech components our business needs to succeed in the foreseeable future. In the near term, we leverage our cash for the ongoing needs of the business, investment in internal growth and innovation initiatives, as well as ongoing and potential future share repurchase. For full year 2023, share-based compensation was $19.2 million, which we expect to decrease in full year 2023.

The acquisition also enable us to.

To grow our U S and international customers above the street and brought us amazing industry experts and veterans.

<unk> enhanced our talent base across all aspects of the organization.

We also successfully rebranded two mix, which we feel is so important to better present, our company and platform solution within the industry and to the financial markets.

Sagi Niri: We also generated non-IFRS diluted earnings per ordinary share of $0.10 in Q4 2023 compared to $0.15 in Q4 2023. In December 2023, we were excited to launch our new $20 million ordinary share repurchase program to take advantage of what we believe to be a discounted valuation opportunity. In Q4, we repurchased 221,506 ordinary shares, reflecting an investment of approximately £446,000 or $566,000.

We now feel we are well positioned with all the key elements, we need to succeed in the video streaming and television advertising ecosystem and to grow and take market share in 2024 without the need for another major acquisition or the Airbnb focus and resource dedication required to execute.

A major with integration.

We believe our unified platform now reflects one of the most scaled that are rich in advance tech platform in the industry for customers on both sides of the ecosystem.

It was been through several years of R&D and five major acquisitions that reflects roughly $1 billion in total R&D investment.

In 2024 and beyond we will continue to seek to grow our new customer base and increase revenues relationship and product adoption with existing customers. While also focusing on growing our self service enterprise customer base, that's a customer base and the relationship with Meso agency.

Sagi Niri: This investment will increase in Q1, as purchases in Q4 were minimal given the program didn't begin until December 20th. If shares remain at what the board believes continue to reflect discounted valuation levels and the company remains cash-generative as we currently anticipate, we will consider launching further share repurchase programs after completing the current program. Finally, I now turn to our audience. For full year 2024, we expect contribution extracts in a range of approximately $340 to $345 million, an adjusted EBITDA of approximately $100 million, and we anticipate programmatic revenue will reflect approximately 90% of full year 2024 revenue. For full year 2024, we expect R&D and sales and marketing expenses to reflect similar percentages of contribution exact compared to full year 2023, but for G&A and depreciation and amortization to decrease as percentage of contribution exact compared to full year 2023.

CTV and broker partners.

We believe this will enable us to grow contribution ex Tac and expand profitability, which we can then reinvest in tech and product innovation to benefit our customers and share repurchases to drive added long term value for all shareholders.

Management team, we've seen we are in the strongest position we have been in for some time to accelerate our growth and take our rightful place amongst.

The leaders in the AD Tech ecosystem and are excited for what this year can bring and as always I want to take our customers employees and shareholders for their continued support and we look forward to continuing to work hard to grow our business and expense.

Since our offering and capabilities to the benefit of all stakeholders operator, we will now take questions.

Sagi Niri: Additionally, we anticipate increased diversification into new revenue streams, like data licensing and audio, and for CTV revenue to return to growth in full year 2020. While ongoing near-term uncertainty continues to impact budgets and spending for some of our customers, and those customers are continuing to favor our lower-cost solution, we have cautious optimism that we can achieve greater growth in 2025. Our renewed focus on selling as opposed to integrating, and our significantly enhanced tech and data spec positions as well, and we believe we may begin to experience market tailwind as opposed to headwind later this year. We feel we provide a massive advantage for customers as we can service across the entire advertising supply chain, have a long-standing streaming DNA, and unite tech, creative, data-based, in-class service and flexibility under one roof, enabling us to adapt I believe we have a bright future ahead of us following the milestones our teams achieved in 2023. With my remarks completed, I will turn the call back over to Ofer. Thank you, Sagi.

At this time, if you would like to ask a question. Please press star followed by the number one on your telephone keypad.

As a reminder for everyone. Please limit yourselves to only one question. Each thank you well pause for just a moment to compile the Q&A roster.

Your first question comes from the line of Matt Swanson from RBC capital markets. Please go ahead.

Yeah. Thank you for taking my question and congratulations on a year of investment completed.

Now that we're through kind of the heavy lifting of the integration as you spoke to ofer.

Ofer, maybe karim if youre still on.

What are the key areas of investment you're shifting to in 2024 now that you can maybe focus on the things you want to do more than what you need to do with the integration and then.

So can you if I could sneak kind of a half question and after that just how youre thinking about those investments in terms of the adjusted EBITDA guidance. We just got thank you.

Thank you Matt.

Good question of course.

Karim can of course, Germany, but in general I think that our.

We have feelings basically the integration of the of all the elements that we acquired over the years.

Ofer Druker: While Resulting Q4 and throughout 2023 were challenged by difficult markets and advertising conditions, particularly for our small and mid-sized agency customers, we feel we created a solid foundation for the future. We completed the integration of Amobi, which was the largest company we ever acquired. While it was a challenge that required a massive amount of attention, resources, and energy, we were able to make it happen through our unwavering focus on our vision and robust acquisition and integration experience. The acquisition bolstered our self-serve tech and added unique and differentiated planning capabilities such as the discovery tool and the ability to plan across the converged TV ecosystem, which we believe will enable us to attract new customers and position our existing customers for success.

Two one platform end to end solution that is putting a focus on CTV video and data.

That are major things that we're going to put emphasize though this index in the near future is about our data.

And to combine that identity graph that we got into one one graph that we will own and manage.

Because this is the essence I think of.

The differentiation basically the amount of data and the capability that we are connected across the end to end solution with all the platform to our E&P and ACI agreement exclusive agreement that we have for the next couple of Sirius is giving us advantage around that time, we want to utilize it.

I will handover to two Korean so talking more about the graph.

Sure. So this year.

The I'd say the focus of the investments that continue to improve our identity solution.

More partners to expand our graph.

Ofer Druker: The acquisition also enables us to grow our U.S. and international customers and partners' reach and brings us amazing industry experts and edtech veterans that enhance our talent base across all aspects of the organization. We also successfully rebranded to Nexen, which we feel is so important to better present our company and platform solutions within the industry and to the financial market.

Beyond that on the data a lot of focus on our direct headset, so launching our ECR solutions globally as <unk> mentioned earlier, we launched in the UK where life.

The U S. We're launching multiple other countries in 2024.

There'll be work on expansion and then continuing to improve our first party onboarding of data and tools around that too to help serve our customers.

Ofer Druker: We now feel we are well positioned with all the key elements we need to succeed in the video, streaming, and TV advertising ecosystem and to grow and take market share in 2024 without the need for another major acquisition or the heavy lifting, focus, and resource dedication required to execute a major integration. We believe our unified platform now represents one of the most scaled, data-rich, and advanced tech platforms in the industry for customers on both sides of the economy. It was built through several years of R&D and five major acquisitions that reflect roughly one billion dollars in total R&D investments.

And I would add over now just again, yes.

Yes, Matt So regarding your question all of the investment.

<unk> Karim and aforementioned are already embedded within our 2024 plan and guidance.

We think that all of these investments will.

There are fruit in 2024 and of course onboard and it will take us in 2020 for two hour 30 ish.

<unk>, adjusted EBITDA margin, and probably and hopefully going forward into 2025, it will go higher.

Ofer Druker: In 2024 and beyond, we will continue to seek to grow our new customer base and increase revenue relationships and product adoption with existing customers, while also focusing on growing our self-service enterprise customer base, data customer base, and the relationship with major agency, CTV, and broadcast partners. We believe this will enable us to grow contribution earnings and expand profitability, which we can then reinvest in tech and product innovation to benefit our customers and share repurchases to drive added long-term value for our shareholders. As a management team, we feel we are in the strongest position we have been in for some time to accelerate our growth and take our rightful place amongst the leaders in the edtech ecosystem and are excited about what this year can bring.

Okay.

Yes.

Your next question comes from the line of Laura Martin from Needham. Please go ahead.

Hi, there.

Yeah.

So one of the questions I have for you is the Warren Israel, how much do you think it affected the fourth quarter.

Financial performance.

And related to that how many people actually.

What percent of your Ftes got called into the World and are they are back now and could that be a nonrecurring area of weakness.

It doesn't actually better.

A better 2020, what's your point of view on that.

Thank you Laura.

First of all.

They've been social October seven.

<unk> maybe in the Moura.

Our mindset and so on but in Israel.

Our business is built is not basically based in Israel is based in the U S and the <unk>.

Asia and Europe. So it is less affecting our day to day business doing doing business.

Ofer Druker: As always, I want to thank our customers, employees, and shareholders for their continued support, and we look forward to continuing to work hard to grow our business and expand and enhance our offering and capabilities to the benefit of all stakeholders. Operator, we will now take questions. At this time, if you would like to ask a question, please press star followed by the number one on your telephone keypad. And, as a gentle reminder for everyone, please limit yourselves to only one question each.

Okay.

I think the teams that are in Israel, I think that they did an amazing job to basically cover for the people that will call to the army and we didn't sell.

There is slowdown in anything that we are.

Meaningful that we are doing and people are coming in and out. So basically we have about 20% of our team in Israel that was related or go into the army out of let's say 185 people about 20% of <unk> called.

Okay.

And.

And it's not it's not like something that is affecting us.

It will affect us and we will do better next year and it's not like it.

It takes us in this way because basically the people that stayed the same since day.

Operator: Thank you. We'll pause for just a moment to compile the Q&A roster. Your first question comes from Matt Swanson from RBC Capital Markets. Please go ahead.

Working with the cover for the people that went to them if they gave extra hours and we thank them for this product.

Thank you.

Your next question comes from the line of Andrew Merrick from Raymond James. Please go ahead.

Yes.

Matthew John Swanson: Yeah, thank you for taking my question. And, you know, congratulations on a year of investment completed. You know, now that we're through kind of the heavy lifting of the integration, as you spoke to Ofer, maybe Karim, if you're still on, what are the key areas of investment you're shifting to in 2024, now that you can maybe focus on the things you want to do more than what you need to do with the integration? And then, Sagi, if I can sneak kind of a half question in after that, just how Thank you. Thank you, Matt. A good question, of course.

Hi, Thank you for taking my question, maybe building off of an earlier question in your in your prepared remarks, how are you thinking about prioritization on several growth vectors, you've kind of outlined in the call is there anything that needs to be in place first before you move on to other aspects of your growth outlook and how should we be measuring kind of those in turn.

Him mile markers, along the way thank you.

So I will ask may be correct.

Excellent.

I wish I can I think that I think that first of all we have the interest on all the fronts of what we are doing so as I said all the every integration that was done for between the DSP.

And upgrading the <unk> already done in 2023, I think that the.

Ofer Druker: Karim can, of course, join me, but in general, I think that our... We finished basically the integration of all the elements that we acquired over the years into one platform, end-to-end solution that is putting a focus on CTV video and data. I think that our major thing that we are going to put emphasis on this time in the near future is our data. And to combine the identity graph that we got into one graph that we will hold and manage.

What we are doing.

Just finalizing the last elements of the BNP, which is two.

To connect all the identity graph into one.

Which will bring us a lot of value connected also to our discovery tool that will enable us to create like most of your.

Sites.

Smart segmentation for clients since wants to targets.

But I think that it is done through the teams that are dealing with that.

Don't have to where it is already on the work in Sweden.

Opposed to be done.

And by in the next couple of slides in the next two to three months basically.

Karim Rayes: Because this is the essence, I think, of the differentiation, basically, the amount of data and the capability that we are connected across the end-to-end solution with all the platforms to our DMP. And the ACR agreement, the exclusive agreement that we have for the next couple of years, is giving us an advantage around that time we want to utilize. And I will hand over to Karim to talk a little bit more about the graph.

I don't see any slowing.

Slow us down or nothing that needs to be pilot the rest of the things that we're doing is about.

We are able now to move some more resources to innovation, we closed last year, a lot of our manpower and a lot of our 10, chairman and lot of our let's.

Lets say our mind was first of all to go to conclude the integration of the platform Michelle Berrey.

Platform to integrate and now it is basically we are expecting our team seems to go back to innovation like this.

Karim Rayes: Sure, so this year, I'd say the focus of the event is to continue to improve our identity solution, add more partners to it, and expand our graph. Beyond that, on data, there's a lot of focus on our direct assets, so launching our ACR solution globally. As Ofer mentioned earlier, we launched in the UK, we're live in the US, and we're launching in multiple other countries in 2024.

The last deal.

We have a lot to do like the around again.

So if you mentioned it again, but that be the logic integration ACI.

Randy.

<unk> countries.

Integrating all these capabilities into our systems is meaningful and I think that this is the innovation that we are looking to get which is around basically CTV that.

Sagi Niri: We'll be working on an expansion and then continuing to improve our first-party onboarding of data and tools around that to help serve our customers. And I will hand over now to Sagi to- Yes, Matt, so regarding your question, all the investment that both Karim and Ofer mentioned is already embedded within our 2024 plan and guidance. We think, you know, that all of this investment will bear fruit in 2024 and, of course, onwards. And it will take us in 2024 to our 30-ish percent adjusted debit margin, and probably, and hopefully, going forward into 2025, it will go higher. Your next question comes from the line of Laura Martin from Needham. Please go ahead. Hi there, I'll stick to one. So one of the questions I have for you is the war in Israel. How much do you think it affected the fourth quarter financial performance? How and related to that, how many people actually were what percent of your FTEs got called into the war? And are they all back now?

We are doing already.

The last couple of three years.

Okay. So that's it basically.

Thank you Ed.

Your next question comes from the line of Matt <unk> from JMP. Please go ahead.

Thank you for taking my question, maybe just on the guidance can you guys parse through how much of that is just execution on your part or the improvement and execution versus a general macro recovery that we're going to see potentially in 2024. Thank you.

Well I will take this question.

And to add something.

In general I think that it says.

As we mentioned also in discrete and when we are talking about 2023, I think that again, our intention was on integration.

Remember that we basically acquired the company of one equal to <unk> 22 in the last quarter, we need to integrate it into our company of six on this vehicle, we cut cost us about $65 million last year on a run rate, which is very positive and in general I think that now it's about.

Look about execution.

Of course is the buckets may be better it will help us even more but we cannot control. What we can control is the execution of our team putting more focus on doing business that integration.

Laura Anne Martin: And could that be a non-recurring area of weakness that doesn't doesn't actually affect us any better for 2024? What's your point of view on that? Thank you, Laura. First of all, of course, the events of October 7th affected us maybe in our morals, in our mindset, and so on.

As I said before creating more innovation that can drive more business partnership and more business comes into our business.

So here you have something to add.

Noting that 2000 systems.

Thank you.

Okay.

Your next question comes from the line of Eric Martin <unk> from Lake Street. Please go ahead.

Ofer Druker: But in Israel, our business is not basically based in Israel; it's based in the U.S. and across Asia and Europe, so it's less affecting our day-to-day business doing business. Sorry. Regarding the teams that are in Israel, I think that they did an amazing job to basically cover for the people that were called into the army, and we didn't feel a real slowdown in anything that we are, you know, meaningful that we are doing. And people are coming in and out, so basically, we have about 20% of our team in Israel that was related to or going to the army. Out of, let's say, 185 people, about 20% were called occasionally into the army, and it's not like something that is affecting us or will affect us. You know, we will do better next year. It's not like a... El Picas in this way because basically, the people that stay in the office and stay working did the cover for the people that went to the army. They gave extra hours, and we thank them for this.

I wanted to get a better sense of seasonality in the flow of the contribution.

Ex Tac year guidance for 2024, very robust there at the midpoint.

9% for the year and my own model for the first quarter I only had about a 5% growth rate our contribution ex Tac.

Wondering what your comfort level is with.

Should we be modeling this kind of.

Level loaded throughout the year on the growth rate or is it <unk>.

Slightly less than Q1.

Maybe more in Q4.

Yes, So I think first we believe strongly in our guidance.

Second I think we have as we mentioned before better drivers.

For D C or contribution ex Tac and trend.

But we signed.

Settlement agreement with LG at the former.

<unk>, which is giving us much much more reach and a lot of other opportunities of course.

Operator: Thank you. The next question comes from the line of Andrew Marok from Raymond James. Please go ahead.

All the new product the Caribbean Ultra mentioned and of course on top of that.

Andrew Jordan Marok: Hi, thank you for taking my question. Maybe building off of an earlier question and your prepared remarks, how are you thinking about prioritizing the several growth vectors you kind of outlined in the call? Is there anything that needs to be in place first before you move on to other aspects of your growth outlook? And how should we be measuring those interim mile markers along the way? Thank you. So, I will let maybe Karim... (inaudible) I will take it.

Ah well positioned salesforce after the huge integration that we did over there in 2023 and we are already in Q1 like seeing the pipelines and the fruits of that.

Yes.

Okay.

And in general always the second half of the year.

Stronger than the first vessel due for us.

Yes.

So it's something like.

Okay.

Your next question comes from the line of Mark Kelly from Stifel. Please go ahead.

Karim Rayes: I think that, first of all, we have teams that are working in parallel on all the fronts of what we are doing. So, as I said, every integration that was done between the DSPs and upgrading the DMP, and so on, will already be done in 2023. I think that what we are doing now is just finalizing the last elements of the DMP, which is to connect all the identity graphs into one, which will bring us a lot of value, connected also to our discovery tool that will enable us to create more, more insights, more smart segmentation for clients that want to target. But I think that it's done through the teams that are dealing with data. So we don't have to wait.

Great. Thank you. Good morning, everyone. I was hoping maybe you could just go back to the political commentary.

That you offered.

I would imagine that having the linear TV.

Tool.

Actual cycle, its probably a benefit to you given that a lot of those budgets are still.

Largely linear I guess when you are talking to those types of advertising clients.

I guess do you expect more digital this year is it still going to be primarily linear TV and I guess, how do you fit into that.

Ecosystem now that you've got all of the different assets that you Didnt have four years ago, and then maybe one quick clarifying question if I could.

Did you guys say that you expect CTV cpm's to increase from here.

Ofer Druker: It's already in the works. And it's supposed to be done in the next couple of months, in the next two to three months, basically. So I don't see any reason it will not slow us down or anything that needs to be in parallel.

I thought I heard in the prepared remarks, I just want to make sure I heard that correctly. Thank you.

Yes.

Cover the last part we didn't say that about CPM with CTV.

When we are talking about political and I think that for the first time.

Operator: The rest of the things that we are doing are about. We are able now to move some more resources to innovation because last year a lot of our manpower, a lot of our attention, a lot of our, let's say, our mind was first of all to conclude the integration of the platform, which is a very heavy platform to integrate. And now I think that basically, we are expecting our teams to go back to innovation like they did in the last year. And we have a lot to do around again.

This is Michael we're coming we're ready for that in a minute meaning that we.

We have very strong tools that are enabling basically to check to grid segments. According to demand and coding too.

People are related to two ideas and policies and so on and I think that it's giving us a local for local supply in the market basically.

In order to gain.

Some of the dollars that are going to political in order to support different candidates.

Matthew John Swanson: Sorry for mentioning it again, but data, peer logic integration, ACR expanding into more countries. Integrating all these capabilities into our systems is meaningful, and I think that this is the innovation that we are looking to get, which is around basically CTV data that we have been doing already for the last couple of years. So that's it, basically. Thank you, Eric. Your next question comes from the line of Matt Condon from JMP. Please go ahead.

And we of course are already in discussions we built a dedicated team for that and we feel the device. The good vibe in the good support that we're getting from the market. So basically first of all the segmentation tools.

And did that are related to the segmentation tool set that is related to political.

Campaigns in activity, which is very meaningful.

The second thing of course, all the capability around <unk>.

Cross platform, resulting also because it basically can save some of the money.

Ofer Druker: Thank you for taking my question. Maybe just on the guidance, can you guys parse through how much of it is just execution on your part or the improvement in execution versus a general macro recovery that we're going to see potentially in 2024? Thank you.

The author of the policies, where they want to promote the candidate to make more money to work for them in a smart manner.

Using our.

Our platforms.

Our technology, because it basically enabled them to identify where they need where they need to invest their money in order to make it more effective.

Operator: Well, I will take this question, and Sagi, if you want to add something, let me know. In general, I think that it's a... As we mentioned in the script and when we were talking about 2023, I think that, again, our attention was on integration. We need to remember that we basically acquired a company of 1,000 people at the end of 2022, in the last quarter. We need to integrate it into a company of 600 people. We cut costs of about $65 million last year on one rate, which is very massive. In general, I think that now it's a lot about execution.

Cross platform across linear and digital.

Generally we believe that this year.

If youre looking at.

From.

In the prospective to others before that where elections I think that the.

More money will go to digital basically because the level of <unk>.

Lineal connection went down so people want they want to reach targeted users in different regions of the country. They will have to use also the digital in order to do that and that's exactly where we are strongest and we believe that this will enable us to win more of these build outs and to bring them to our P&L basically.

Eric Martinuzzi: Of course, if the market is better, it will help us even more, but we cannot control it. What we can control is the execution of our team, putting more focus on doing business than integration, and, as I said before, creating more innovation that can drive more business partnerships and more business coming into our business. Sagi, do you have something to add? So Sagi doesn't; he's nodding that he doesn't have anything.

And just to add to that.

<unk>, probably will influence our second half of the year.

Q3, and mainly Q4.

Yes.

As there are no further questions I would like to thank our speakers for today's presentation and thank you all for joining US. This now concludes today's conference you may now disconnect.

Please wait the conference will begin shortly.

Operator: Thank you. Your next question comes from the line of Eric Martinuzzi from Lake Street. Please go ahead.

[music].

Mark Patrick Kelley: I wanted to get a better sense of seasonality in the flow of the contribution X-TAC. Your guidance for 2024 is very robust there. At the midpoint, I've got 9% for the year.

Yes.

Okay.

Yes.

[music].

Ofer Druker: In my own model for the first quarter, I only had about a 5% growth rate for contribution X-TAC, and I'm wondering what your comfort level is with, you know, should we be modeling this kind of a level loaded throughout the year on the growth rate, or is it slightly less in Q1 and maybe more in Q4? Uh, yeah, so I think, you know, first, we believe strongly in our guidance. Second, I think we have, you know, as we mentioned before, better drivers for DC or contribution expats and the trend as a whole, so we signed a settlement agreement with LGAD, the former Alfonso, which is giving us much more reach and a lot of other opportunities. And, of course, all the new products that Karim and Ofer mentioned. And of course, on top of that, a well-positioned sales force after the huge integration that we did over there in 2023, and we are already in Q1, like seeing the pipelines and the fruits of that. And in general, always, the sickness of the ear is stronger than the first touch of the year for us historically.

Yes.

Okay.

Yes.

[music].

Sure.

[music].

Yes.

Okay.

Yes.

[music].

Sagi Niri: So something like, you know, I said... Your next question comes from the line of Mark Kelley from Stifel. Please go ahead.

Operator: Great, thank you. Good morning, everyone. I was hoping maybe you could just go back to the political commentary.

Mark Patrick Kelley: I would imagine that having the linear TV tool this election cycle is probably a benefit to you given that a lot of those budgets are still largely linear. I guess when you're talking to those types of advertising clients, do you expect more digital this year? Is it still going to be primarily linear TV? And, I guess, how do you fit into that?

Ofer Druker: ecosystem now that you've got all those different assets that you didn't have four years ago. And then maybe one quick clarifying question, if I could. Did you guys say that you expected CTV, and CPMs to increase from here? I thought I heard that in the prepared remarks. I just want to make sure I heard that correctly.

Ofer Druker: Just to cover the last point, we didn't say that about CPM or CTV. When we are talking about politics, I think that, for the first time in my career, we are coming ready for that. In the meaning that we have very strong tools that are enabling, basically, to check, to create segments according to sentiment, according to how people are related to ideas and parties and so on. And I think that it's giving us a lot of advantages in the market, basically, in order to gain some of the dollars that are going to politics in order to support different candidates. And we are, of course, already in discussions, we have built a dedicated team for that, and we feel the vibe, the good vibe, and the good support that we are getting from the market. So basically, first of all, the segmentation tools and the data related to the segmentation tools, the data that is related to political campaigns and activities, which are very many.

[music].

Ofer Druker: The second thing, of course, our capability around linear TV and cross-platform is helping also because it basically can save some of the money of the parties when they want to promote a candidate to make more money work for them in a smart manner if they are using our platforms and our technology. Because it basically enables them to identify where they need to invest their money in order to make it more effective, and it's cross-platform across linear and digital. In general, we believe that this year, like if you're looking from a perspective to others before that were elections, I think that more money will go to digital, basically, because the level of linear connection went down. So people, when they want to reach targeted users in different regions of the country, they will also have to use digital in order to do that, and that's exactly where we are strong, and we believe that this will enable us to win more of these dollars and to bring them to our P&L, basically. And just to add to that, politics probably will influence our second half of the year, Q3 and mainly Q4. Yeah,

Operator: As there are no further questions, I would like to thank our speakers for today's presentation, and thank you all for joining us. This now concludes today's conference. You may now disconnect.

Operator: The conference will begin shortly. ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Welcome to Nexen's earnings call for the 3 and 12 months and the December 31, 2023. At this time, participants are in a listen-only mode with a question and answer session to follow at the end of the presentation.

Billy Eckert: This call is being recorded, and a replay of today's call will be made available on Nexen's investor relations website. I will now hand the call over to Billy Eckert, Vice President of Investor Relations, for introductions and the readings of the Safe Harbor Statement. Billy, please go ahead.

Billy Eckert: Thank you, operator. Good morning, everyone, and welcome to our first official earnings call. During today's call, we will discuss our financial and operating results for the three and 12 months ended December 31st, 2023, as well as our forward-looking guidance. This morning, we issued a press release, which you can access on our updated IR website at investors.nexen.com. Please note, all the financial results you hear on today's call for the 3 and 12 months ended December 31st, 2023, as well as the 3 months ended December 31st, 2022, reflect the combined financial performance of Nexen and Imobi, while results for the 12 months ended December 31st, 2022 include results from Imobi only from September 12th, 2022, through December 31st, 2022.

Billy Eckert: Given all that transpired in 2023, including our rebranding as Nexen and the completed integration of Immobi, we're approaching this quarter's call a bit differently. During today's call, and only for this quarter, you'll hear from our Chief Product Officer, Karim Rayes, who will set the stage for how the digital advertising industry is evolving and how our platform and business model position us for success now and in the future Then, we'll turn the call over to our Chief Executive Officer, Ofer Druker, to discuss, amongst other things, the evolution of our strategic business, partnership, and revenue initiatives, and follow that with an overview of our Q4 and four-year 2023 financial results and an update on our forward-looking guidance from our Chief Financial Officer, Sagi Niri, before turning the call back to Ofer for closing remarks. During today's All statements other than statements of historical fact could be deemed as forward-looking.

Billy Eckert: We advise caution and reliance on forward-looking statements. These statements include, without limitation, statements and projections regarding our anticipated future financial and operating performance, market opportunity, growth prospects, strategy, financial outlook, partnerships and anticipated benefits related to those partnerships, and forward-looking views on macroeconomic and industry conditions, as well as any other statements concerning the expected development, performance, and market share or competitive performance relating to our products or services. All forward-looking statements are based on information available to us as of the date of this call. These statements involve known and 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 or unexpected changes in macroeconomic or industry conditions.

[music].

Billy Eckert: More detailed information about these risk factors and additional risk factors is set forth in our filings with the U.S. Securities 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. Nexen does not intend to update or alter its forward-looking statements, whether as a result of new information at future events or otherwise, except as 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 and reconciliations of IFRS to non-IFRS results. At this time, it is my pleasure to introduce Karim Rayes, Nexen's Chief Product Officer. Karim, please go ahead.

Karim Rayes: Thanks, Billy. Hello, and welcome to everyone joining us today. As Billy noted, I'm Karim Rayes, and I'm the Chief Product Officer at Nexen, and I've served in the role for over five years. Without a doubt, 2023 was a transformational year for Nexen, highlighted by major advancements and enhancements to our technology and products, which is why we felt it was fitting for me to open the call today. In 2023, we rebranded the company and integrated the largest acquisition in our history, strengthened our tech and data assets, and enhanced our talent base with industry-leading experts and ad tech veterans. With all this happening, it was a bit difficult to articulate our story, value proposition, and industry position in real time. So before Ofer provides an update on our strategic business initiatives, I will provide a brief overview of the industry and highlight why we are confident that our tech platform and models differentiate.

Karim Rayes: Because potential touchpoints with customers exist across an increasing number of formats and devices, advanced technology and strong data capabilities are critical to enable advertisers to reach their KPIs. This has driven advertisers to shift from exclusively buying media to buying against audiences by working with data-fueled ad tech partners like Nexen, which offers the type of granular solution that solves for the challenging task of identifying and reaching target audiences. These targeting strategies are being challenged, and finding solutions for our customers is more important than ever, as we've seen companies like Apple enact significant changes that affect the ability of apps to track users and share data with third parties. Google has also started deprecating cookies, which, over time, will no longer be a viable option to help advertisers track users.

[music].

Karim Rayes: Fortunately, we've been investing in solutions to tackle these challenges and believe we are well positioned to take advantage of these disruptions to capture the market. Nexen has built and developed an incredibly advanced tech and data stack that not only helps customers navigate these challenges but also enables them to drive enhanced return on investment and reach their target audiences regardless of where they consume from. Our platform unites some of the most competent and forward-thinking tech and data solutions in the programmatic marketplace, enabling greater efficiency and effectiveness for our customers on both sides of the equation. Over the last seven years, we've successfully integrated five major strategic acquisitions, resulting in the creation of an advanced and unified full-tech stack. Our platform offers state-of-the-art self-service DSP, data-driven creative solutions, a self-service SSP with strong video and CTV capabilities, and a TV ad server, all connected via a robust data planning and identity platform.

Yes.

Welcome to <unk> earnings call for the three and 12 months ended December 31st 2020 feet. At this time participants are in a listen only mode.

And answer session to follow at the end of the presentation. This call is being recorded and a replay of today's call will be made available on <unk> Investor Relations website.

I will now hand, the call over to Billy accurate Vice President of Investor Relations for introductions and the reading of the Safe Harbor statement. Please go ahead.

Thank you operator, good morning, everyone and welcome to our first official earnings call as an accident.

On today's call, we will discuss our financial and operating results for the three and 12 months ended December 31, 2023, as well as our forward looking guidance.

This morning, we issued a press release, which you can access on our updated IR website at investors <unk> Dot com.

Please note all financial results you hear on today's call for the three and 12 months ended December 31, $2000 three as well as the three months ended December 31, 2020 to reflect the combined financial performance of next minimally while results for the 12 months ended December 31, 2022 is that results from a mobile only from September 12, 2022 through December 31 2022.

Karim Rayes: This unified platform focuses primarily on helping customers maximize their outcomes by leveraging data to achieve powerful results across their programmatic activities. Including all the acquisitions Nexen has made and the R&D investment by those companies prior to our acquisition, as well as the investments we've made integrating those companies, we estimate that roughly $1 billion of total R&D investment has gone into the creation and unification of our platform. As I mentioned earlier, it is imperative that advertisers continue to have the ability to leverage data to find and reach target audiences. It's hard to emphasize that point enough, which is why we feel we have significant differentiators for our data platform, which sits between our DSP and SDP.

Keeping all that transpired in 2023, including a rebrand index and the completed integration of Amobi waterproofing this quarter's call a bit differently.

During today's call and only for this quarter, you'll hear from our Chief product Officer, <unk> will set the stage for how the digital advertising industry is evolving in our platform and business model positions us for success now and in the future.

Then we'll turn the call over to our Chief Executive Officer, Andrew Kirk to discuss amongst other things the evolution of our strategic business partnership and revenue initiatives and followed that with an overview of our Q4 and full year 2023 financial results and update on our forward looking guidance for our Chief Financial Officer, Sneary before turning the call back over for closing remarks.

Karim Rayes: Our platform ingests data from several sources, including first-party data onboarded directly from our customers, unique Nexen data assets, and multiple third-party data sources from web, social media, mobile, linear TV, and digital television environments. Our customers can leverage this data to plan, activate, and measure their campaigns on our platform, as well as amplify the profile and reach of their own first-party customer data to achieve better results and greater efficiency, while also benefiting from isolation against data privacy changes and reducing overall tech costs. To put the scale of our data footprint into perspective, we work with over 1,000 advertising agency customers, as well as over 1,600 publisher customers, and have third-party data relationships with over 65 partners, including LiveRamp, Experian, Lumen, and others. We also have access to TV and streaming viewership data across roughly 50 million U.S. households through partnerships with major TV and streaming data players such as Vita, Hisense, and Paralog.

Payments include without limitation statements and projections regarding our anticipated future financial and operating performance market opportunity growth prospects strategy financial outlook partnerships and anticipated benefits related to those partnerships and forward looking views are macroeconomic and industry conditions as well as any other statements concerning the expected development performance market share or competitive fulfill.

Relating to our products or services all forward looking statements are based on information available to us. After the date of this call. These statements involve known and 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 or unexpected changes in macroeconomic or industry conditions.

Additionally, the company's press release and management statements. During this conference call will include discussions of certain measures and financial information in <unk> and non Ifr's terms.

Karim Rayes: Our platform has direct access to publish ads on roughly 225,000 sites and apps and handles roughly 199 billion daily ad requests. Roughly 86% of our campaigns are now data-enabled, and 39% of all campaigns are using our first-party Nexum data. We believe that as data is becoming more valuable to our customers, so too is the value proposition of our platform. A large part of our focus for 2023 was on the integration of our latest acquisition, mobile. Merging the two platforms while retaining the best assets each platform had to offer while also bringing new solutions to market was a Herculean task, and I would like to thank our product and R&D teams for their hard work in achieving this goal in an incredibly short period of time.

We refer you to the company's press release for additional details, including definitions of non ifr's items and reconciliations of <unk> non ifr's results. At this time. It is my pleasure to introduce <unk> Chief product Officer. Colin. Please go ahead. Thanks.

Thanks, Billy Hello, and welcome to everyone joining us today as Billy noted I'm, Karen <unk> and I'm, the Chief product officer at Nextgen served in the role for over five years.

Without a doubt 2023 was a transformational year for <unk> highlighted by a major advancement and enhancements of our technology and product, which is why we felt it was sitting from you to open the call today.

In 2020, we rebranded the company integrated the largest acquisition in our history.

Second data.

Karim Rayes: It was critical for us to complete this integration as quickly as possible to continue to accelerate our rate of innovation in 2024 and beyond. With the successful completion of this integration, we have further differentiated and enhanced our platform for our customers. From a technology perspective, the acquisition was beneficial for several reasons, but I'd like to specifically highlight three key products that significantly improved our solution in March. The first is the MLB DSP, which is now referred to as Nexen DSP after combining the Tremor Video DSP and following our rebrand.

Has the talent base with industry, leading experts and I think better at.

With all this happening it was a bit difficult charge affiliate, our story and value proposition than industry positioning in real time.

So before offer provides an update on our strategic business initiatives I will provide a brief overview of the industry and highlight why we are confident that our tech platform model is differentiated.

The industry has undergone significant changes over the past few years that have driven advertisers and agencies to become more sophisticated and rely heavily on data and technology to navigate a fragmented and rapidly evolving digital media landscape.

Karim Rayes: While we of course already operated a DSP prior to the acquisition, the addition of Amobi's DSP solution dramatically enhanced our self-service capabilities while enabling us to run campaigns more effectively across all formats. Moreover, the lower phone performance tool in the mobile platform combined with Tremor's PTV and video capabilities enables us to bring performance-related PTV products to market directly tying outcome to delivery. The second product I'd like to highlight is our cross-screen TV panning solution, which now enables us to pan across both linear and digital TV from the start for our customers. This is an important project that enables our clients to win now and in the future, as viewership is not only moving from traditional linear TV to digital, but because it's also still common to see customers use both mediums in parallel. We are confident that our cross-stream planner provides the optimal holistic view necessary to effectively plan and maximize the research campaign across the entire TZN.

This has driven advertisers specific exclusively by media buying gifts audiences by working with data field asset partners like next and that offers this type of granular solutions that solve for the challenging task identifying and reaching target audiences.

Google has also started deprecating cookies, which overtime will no longer be a viable option to help advertisers track users.

Fortunately, we've been investing in closing and tackled these challenges and believe we are well positioned to take advantage of this disruption to capture market share.

Next one is build and develop an incredibly advanced tech and data stack that not only help customers navigate these townsend, but also enables them to drive enhanced return on investment and reach their target audiences, regardless of where they consume content.

Our platform units some of the most comprehensive and forward thinking tech and data solution programmatic marketplace, enabling greater efficiency and effectiveness for our customers on both side of the ecosystem.

Over the last seven years, we've successfully integrated five major strategic acquisition.

Karim Rayes: With this latest integration complete, we now operate a self-service platform that can plan holistic TV campaigns, find and reach audiences wherever they consume media, have direct access to premium supply, and provide cost advantages for customers by entering, strongly differentiating us with advertisers, agencies, and publishers. As our partners generate stronger comparative returns through a singular platform that solves their holistic needs, we believe they will allocate more budget to that platform over time and be more willing to adopt additional solutions. This concept is foundational to our strategy.

<unk>, an increase of an advanced and unified School Tech stack.

This unified platform focuses primarily on helping customers maximize their outcome by leveraging data to achieve powerful results across our programmatic activities.

Including all of the acquisitions that <unk> made and the R&D investment by those companies prior to our acquisition as well as the investments we've made integrating those companies.

Karim Rayes: We believe that our technology positions us as well to attract new customers and increase spending and product adoption over time. Further, as we continue to grow our contribution in xDAAC, our platform will achieve a high level of operating leverage, which results in increased profitability. This enables us to make additional strategic investments in our platform to build new products and fuel further tech innovation that benefits customers, further optimizing their return, and ultimately driving more budget and spending to our platform. As for our platform's overall capabilities, we believe that we now have all the key pieces in place to optimally service customers in the programmatic marketplace without the need for a major acquisition any time soon. Looking forward, we also feel confident in our ability to navigate the new challenges facing our industry, particularly around identity and privacy regulation changes.

We estimate that roughly $1 billion of total R&D investment has gone into the creation and unification of our platform.

As I mentioned earlier it is imperative that advertisers continue to have the ability to leverage data to find and reach target audiences.

Let's talk to underscore that point enough, which is why we feel we have significant differentiator for our data platform, which sits between espns therapy.

Our platform Ingests data from several sources, including first party data onboard or directly from our customers unique next and data assets and multiple third party data sources from web social media mobile linear television and digital TV environments. Our customers can leverage this data to plan activate and measure their campaigns on our platform.

As well as the amplify the profile and reach of their own first party customer data to achieve better results and greater efficiencies, while also benefiting from installation against data privacy changes and reduce overall debt cost.

Karim Rayes: In addition to the cost-benefit of our end-to-end platform, this strategy also enables us to bring a unified identity solution to market as our demand and supply platform share the same person and household identity graph. We're in the process of bringing to market a new unified identity solution that not only incorporates traditional identifiers like device IDs and cookies but also includes other major universal ID solutions, including UID2 and RampID. At the heart of this graph sits the next-in-person and household ID.

You have access to TVN screening viewership data across roughly 50 million U S households through partnership with major key again streaming data players Hudson Vita <unk> logic.

Karim Rayes: This technology, paired with our end-to-end platform, enables us to seamlessly onboard and deploy audiences at scale across our ecosystem for frictionless planning, activation, and measurement of advertising campaigns. Beyond our core identity solution, we also operate proprietary contextual targeting products powered by Next and Discovery, and are early adopters of Google Privacy Standards. Our goal is to provide our customers with both choice and flexibility in navigating the challenges facing our industry. While disruption brings both risk and opportunity, we see these changes to identity as an opportunity for us to gain market share because of the way we've intentionally built and developed our tech, product, and data stacks. In 2024, we'll continue to focus on enhancing and expanding our self-service enterprise capabilities to increase the attractiveness of our platform. Also, with the AMOBI integration behind us, resources previously dedicated to the integration have been redirected toward innovation. For example, we've been developing solutions leveraging AI and machine learning to speed up development time, improve our algorithms, and enhance our audience discovery and activation tools.

Our platform is the best asset to publish that roughly 225000 sites and apps and handles roughly 199 billion daily ad requests.

Roughly 86% of our campaigns on albeit at enable and 39% of all campaigns, while you're eating up first party data.

We believe that as data is becoming more valuable to our customers. So too has the value proposition of our platform.

A large part of our focus throughout 2023 was done the integration of our latest acquisition of <unk>.

Merging the two platform, while retaining the best assets each platform has to offer while also bringing new solutions to market within a herculean task and I would like to thank our product and R&D teams for their hard work to achieve this goal in an incredibly short period of time.

What's critical for us to complete this integration as quickly as possible to continue to accelerate our rate of innovation in 2024 and beyond.

With the successful completion of this integration, we further differentiated and enhance our platform for our customers.

From a technology perspective, the acquisition was beneficial for several reasons, but I'd like to specifically highlight three key product that significantly improved our solution in market.

The first is <unk>, which is now referred to as <unk> DSP after combining the tremor video DSP and following our rebrand.

Karim Rayes: We're also putting a significant focus on continuing to enhance our ACR data capabilities as we seek to expand to new international markets and integrate with new strategic partners. I'm incredibly excited to be part of a tech and data-driven company that is well positioned to grow its digital advertising market share as we continue to work hard to capitalize on the opportunities that lie ahead of us. With that, I'm happy to turn the call over to Ofer.

While we of course already operated at a DSP prior to the acquisition. The addition of <unk> DSP solution dramatically enhanced our self service capabilities, while enabling us to run campaigns more effectively across all formats.

Moreover, the lower followed performance pull India multi platform combined with tremors CTV and video capability enables us to break performance related PPE products to market directly tying outcomes to delivery.

The second product I would like to highlight is our cross screen TV planning solution, which now enables us to plan across both linear and digital TV from the onset for our customer's campaign.

Ofer Druker: Thank you, Karim. That was a great overview and explanation of how our tech ecosystem, capabilities, and differentiated model positions us for success and to gain share in the digital advertising ecosystem. I welcome everyone to our first early call after rebranding to Nexen, which we celebrated on February 28th when we rang the Nasdaq closing bell in time. From our perspective, the unification of our brands under Max & Now reflects the true strength and value proposition our entire tech stack offers customers and processes, and we expect it will open doors to larger multi-solution deals over time. We believe the rebrand combined with the steps taken in 2023 to increase brand awareness and better position our sales force and product marketing narrative is beginning to pay off, and we are excited to see this effort continue to gain traction.

This is an important project that enables our clients to win now and in the future as your shipments not only moving from traditional linear TV to digital but because it's also still common to see customers use both mediums in parallel.

We are confident that our cross fee Kleiner provides the optimal holistic view necessary to effectively plan and maximize the recent campaign across the entire TV ecosystem.

Finally, I want to highlight our <unk> discovery platform, which should also game towards the MLB acquisition. This still sits at the heart of our planning capabilities and is powered by proprietary pedal leveraging and combining web social media TV first party audience data to help us identify and target the right users at the right time.

Next in discovery is also an important component to our cookie deprecation strategy enables us to create custom curricular audiences for our customers.

With this latest integration complete we now operate a self service platform and plan holistic TB testing finding refinances wherever they consume media have direct packaging premium supply and provide cost advantages for customers by entering primary differentiating us with advertisers agencies and publishers.

Ofer Druker: We have continued to focus on growing our streaming, TV, and data relationship, enhancing and expanding our customer offerings, building deeper industry ties, and introducing our newest tech and data capabilities to position ourselves to drive significant long-term partnerships with major TV players in Asia. We are hyper-focused on further enhancing our presence in broader streaming and CTV advertising ecosystems and are confident this will serve as a long-term growth driver for Nexen, given our long-standing streaming DNA and strategic positioning within video and CTV. We believe our strategic emphasis and indexing towards these trends will enable us to achieve outsized long-term growth, particularly as customers seek premium advertising solutions as market headwinds reverse to become tailwinds, which we have cautious optimism about in 2021. I am pleased to report we are once again working with LG, one of the main CTV players in the industry, after years of not doing business together, following our favorable settlement agreements and multi-year strategic partnership with Alfonso and LG.

As our partners generate prior comparative return to a single platform that solves their holistic needs. We believe they will allocate more budget to that platform over time and be more willing to adopt additional solutions.

This concept is foundational to our strategy, we believe that our technology positions us well to attract new customers and increase spending and product adoption over time with existing customers.

Further as we continue to grow contribution ex Tac our platform will achieve high level of operating leverage which should result in increased profitability.

In terms of our platform holistic capability, we believe that we now have all the key pieces in place needed to ultimately service customers in the programmatic marketplace without the need for a major acquisition anytime soon.

Looking forward, we also feel confident in our ability to navigate the new challenges facing our industry, particularly around identity and privacy regulation changes.

Ofer Druker: Through the strategic partnership, Nexen gained important access to monetize some of LG's premium CTV inventory, and Alphonso will leverage Nexen's data-driven discovery and segmentation tools to enhance advertisers' and partners' engagement on their media properties. We look forward to partnering with Alphonso and LG for years to come and to building a solid relationship with them to benefit customers in the CTV advertising arena. With the addition of LG to our partnership roster, we can now proudly say we hold strong relationships with all major CTV OEMs, reflecting a massive value proposition for our TV advertising customers. The OEMs play an important role in the CTV ecosystem, and it's important for a company like Nexen to hold strong relationships with them to benefit advertisers and agency customers seeking to gain significantly expanded global audience reach potential. For example, as part of our CTV OEM strategy, we expanded our strategic partnership with TCL, Falco. We are solely granting our advertising customers access to CTV and OTT supply in the TCL channel to also exclusively sell TCL native display inventory as a preferred supply partner.

And in addition to the cost benefit of our endpoint platform.

Obviously also enables us to bring a unified identity solution to market as our demand and supply platform share the same person household identity graph.

Whereas the cost of bringing to market a new unified identity solution that not only incorporates traditional identifiers like device side and cookies, but also includes other major universal <unk> solutions, including <unk> and rent heightening.

At the heart of this graph since the next person in the household IV. This technology paired with our endpoint platform enables us to seamlessly onboard and deploy audience because that scale across.

Our ecosystem for frictionless planning activation and measurement of advertising campaign.

Beyond our core identity solution. We also operate proprietary contextual targeting products powered by <unk> and discovery and are early adopters of Google pricing sandbox.

Our goal is to provide our customers with both choice and flexibility in navigating the challenges facing our industry.

While the disruption brings both risk and opportunity we see these changes to identity as an opportunity for us to gain market share because of the way, we've intensely built and develop our tech product and data stack.

In 2024, we will continue to focus on enhancing and expanding our self service enterprise capabilities to increase the attractiveness of our platform.

Also with the <unk> integration behind US resources previously dedicated to the integration have been redirected towards innovation.

For example, we've been developing solutions, leveraging AI and machine learning to speed up development time improve our algorithms and enhanced our audience discovery and activation tool.

Ofer Druker: This deepened partnership enabled Nexen to offer customers expanded reach across a significant and growing number of TV screens, with flexibility across formats to enhance advertising outcomes, especially when combined with the overall reach created in combination with our other major TV partners. In addition, we teamed up with out-of-home advertising group Teague to broaden our CTV out-of-home opportunities for clients across the advertising ecosystem. The TIF partnership delivers an immersive, high-impact ad experience by reaching audiences on screens in West Port Barton restaurants, hitting another CTV touchpoint within our larger CTV out-of-home offering.

We're also putting significant focus on continuing to enhance our ACR data capabilities as we seek to expand to new international markets and integrate with new strategic partners.

I'm incredibly excited to be part of the tech and data forward company that is well positioned to grow digital advertising market share as we continue to work hard to capitalize on the opportunities that lie ahead of us.

With that I'm happy to turn the call over to Ofer.

Thank you Carrie.

Great overview and explanation of our tech ecosystem capabilities and differentiated model positions us for success to gain share in the digital advertising ecosystem.

Ofer Druker: We also made strong ad waves by enhancing and expanding our TV intelligence solution into new markets and increasing our access to highly desirable TV and streaming data, which we believe benefits customers looking to find and reach target audiences across the global streaming and TV ecosystem. We believe this effort positions us to attract new customers and achieve outsized long-term CTV revenue goals, as the industry continues to increasingly rely on data to boost efficiency and effectiveness of advertising across the streaming and CTV platforms. We believe Walmart's planned acquisition of Vizio strongly highlights the value and importance the market and industry place on that, particularly H.C. Arden. We also feel ACR data is becoming more and more of a rarity on the open web.

Welcome everyone to our first earnings call after rebranding through Nexen, which we celebrated on February 28.

We rang the NASDAQ closing Bell in times square.

From our perspective daily suggestion of all brands under the Mexican now reflects the true strength and value proposition already Tyler Tech stack offered to customers and prospects and we expect it will open doors to larger multi solution deals over time.

We believe the rebrand combined with the steps taken in 2023 to increase brand awareness and better position, our salesforce and product marketing narrative is beginning to play off.

And we are excited to see these efforts continue to gain traction.

We have continued to focus on growing our streaming TV and thats a relationship in engineered and expanding our customer offerings.

Ofer Druker: In our opinion, the Walmart acquisition further highlights the incredible value of the multi-year exclusive global ACR data agreement we have with Vida, the primary CTV operating system for iSense and Toshiba, which are some of the fastest growing CTV owners. Notably, we recently extended our TV intelligence solution with scaled premium on-the-go streaming data from platforms like Netflix, Ulu, and DC Plus through a new exclusive partnership with PeerLogic. This partnership enables us to capture streaming viewership data for audiences on mobile devices and tablets outside of connected TV, which we find critical as consumers' viewing preferences continue to evolve to increasingly seek flexibility to stream content across several devices. Our TV intelligence solution is an extensive data set that includes access to set-top boxes, traditional daily vision, ACR, on-the-go streaming, and cross-screen panel data, and can currently provide insight into TV and streaming viewership data across roughly 50 million households in the U.S. alone.

The broad industry ties, maybe introducing our newest thick and fast and capabilities to position ourselves to drive significant long term partnership with major PV players than agencies.

I have been focused on further enhancing our presence in broader streaming and CTV advertising ecosystem and are confident this will serve as the long term growth driver for next year, given our longstanding Jamie.

<unk> DNA and strategic positioning within video and CTV.

We believe our strategic anticipates, an indexing towards this strength will enable us to achieve outsized long term growth, particularly as customers seek premium advertising solution as market headwinds.

To become tailwind, which we have cautious optimism.

In 2024.

I am pleased to report we are once again working with LG one of their main CTV players in the industry after years of not doing business together.

Knowing a favorable settlement agreement and multi year strategic partnership with Alphonso Angie.

Through this strategic partnership Nexon gain important access to monetize some of AG premium CTV inventory and Alfonzo will.

Average excellent driven discovery and segmentation tools.

Advertisers and partners engagement on their media properties.

Ofer Druker: We offer this solution to advertiser customers to further differentiate our platform through access to critical scale data necessary to optimize streaming and TV planning, targeting, and measuring. This robust data offering often results in our customers achieving enhanced ROI and greater efficiency as plans created through our planning tools can be seamlessly activated in campaigns through our DFT. Our TV intelligence offering has been pivotal in attracting additional advertising dollars and serves as a strong selling point for prospects in sales conversations, particularly around viewability, which is important for many major vendors. We believe it is a critical solution for customers looking to upgrade their planning and advertising efforts across the evolving and converging linear and streaming landscape. VDAV global ACR data, which we can exclusively monetize through our SDK integrated into iSense and other VDAV Power TVs, flows through our data platform and TV intelligence solutions. iSense was the second largest distributor of smart TVs globally in 2023.

We look forward to Paul theory with Alfonzo in EG.

And to building a solid relationship with them to benefit customers in the CTV advertising arena.

With the addition of LNG to our report.

This year, we can now proudly say, we all strong relationship with all major CTV Oems, reflecting a massive value proposition for television advertising customers.

The Oems play an important role in the CTV ecosystem and it's important for a company like Nixon towards strong relationship with them to benefit advertisers and agency customers seeking to gain significantly expanded global audience reach with instruments for example, as part of our CTV OEM.

For RTG, we expanded our strategic focus group with Tcl.

Beyond solid grunting advertising customers access to CTV and OTT supply.

Some of them.

You also exclusively sell PCL native display inventory as a preferred supplier.

These deepened partnership enables <unk> to offer our customers expanded reach across the significant a growing number of TV screens with flexibility across formats and.

Instead of ASIC outcomes, especially when combined with an overall each created in combination with our other major TV partnerships.

This year, we teamed up with out of advertising we will see.

Ofer Druker: Near the end of 2023, Vida announced they saw past a reach of over 25 million connected TVs in Mars and announced they had already exceeded 26 million so far in 2024. VDAS usage has been growing dramatically, and during December 2023, VDAS users generated over 2 billion monthly streaming hours. As a reminder, VEDA serves as the primary CTV operating system for iSense and Toshiba smart TVs and a subsidiary of iSense.

To broaden our CTV out of opportunities for clients across the advertising ecosystems.

This partnership deliver immersive high impact as experienced by reaching audiences on screens with Westport in restaurants eating another CTV touch points within our Louser CTV out of offering.

We also made strong ed waves, enhancing and expanding our TV intelligence solution into new markets and increasing our access to highly desirable television and streaming data, which we believe benefit customers looking to find and reach target audiences across the global streaming TV ecosystems, we believe.

Ofer Druker: So iSense is highly aligned with VEDA's growth strategy. Vida and iSearch's rapidly growing TV footprint have also enabled us to scale the necessary to offer our TV intelligence solution outside the US to markets such as the UK, which launched in Q4. Since we launched our UK TV viewership audience offering, we've seen notable customer adoption, which drove an uptick in advertising dollars flowing through our platform in debt markets, which we expect to reflect a significant growth opportunity in 2024 and beyond. In 2024, we will look to extend the offering to additional European and other international markets, giving us additional international growth potential. The value proposition of Smart TV HDR data is becoming more and more obvious and compelling for both advertisers and partners seeking to license the data to use for their clients.

This vessel position us to attract new customers and achieve outsized long term CTV revenue growth as the industry continues to increase.

And that does to boost efficiency and effectiveness advertising across the streaming in CTV landscape. We believe warm up intended acquisition of Greenfield jointly highlights the value and importance the market the industry place on dotcom.

Particularly ACI that's us.

We also feel ACI that guys.

Becoming more and more.

<unk> is the open web in our opinion.

Acquisition further highlights the incredible value of their multiyear.

Global Acs that the agreements we have with <unk>.

Primary CTV operating system for Ices, and Toshiba, we trialed some of the fastest growing CTV Oems.

Notably, we recently extended our TV intelligence solution with scale premium.

They go streaming.

That sounds like Netflix Hulu and discipline.

A new exclusive partnership with tier logics.

This partnership enables us to capture assuming the viewership data.

For audiences on mobile devices and tablets outside of connected TV.

Which we assign critical as consumers viewing preferences continue to evolve.

Ofer Druker: Again, this is evident by what Walmart did in February when it announced its intent to acquire this business, a major smart TV OEM with its own CTV operating system. Walmart understands that to win with advertisers and grow its advertising revenue, the smart TV and operating systems hold a tremendous amount of critical consumer and household data that is incredibly effective to enable advertisers to reach target audiences. This is the exact reason Nexen's investment in Vida and long-term partnership with them is so unique and differentiating. Data partnerships, like we have with Vida, where we have the exclusive right to distribute their global ACR data to at least the end of 2026, are also enabling us to diversify into data licensing revenue streams, reflecting an exciting growth trajectory, and a new frontier for our business.

Simply seek flexibilities to stream content across several devices.

I'll, let Stephen intelligence solution is an expensive.

That includes access to set top boxes traditional division ACL will undergo Jamie and cross screen panel.

And concurrently provide insight into TV and streaming viewership that it grows roughly 50 million also in the U S alone.

We also have the solution to add South Africa.

To further differentiate our platform through access to critical scale, that's necessary to optimize streaming activity planning target.

<unk> and measurement.

This robust offering often results in our customers achieving enhance our Hawaii and greater efficiency.

<unk> created through our planning tools can be seamlessly activated in campaigns through our DSP.

Our LTV intelligence offering has been pivotal in attracting additional advertising dollars and serve as a strong selling points for prospect is condensate.

Conversations, particularly around your ability, which is important for many major verticals.

Ofer Druker: We are seeing significant demand for data licensing partnerships for measurements and planning providers and for major DSPs, seeking to leverage this growing footprint of global TV data for audience targets. We believe our ability to distribute this data for licensing purposes not only reflects a strong growth opportunity but also helps expand our presence within the industry, better enabling us to solidify our leadership position among TV and tech experts. Next-Gen Discovery, our data-fueled BI tool that ingests content consumption data to enhance audience knowledge for extended reach, is also continuing to differentiate our holistic platform offering and is attracting higher levels of spending from new and existing customers. Next-Gen Discovery has been adopted by key industry partners, and we feel we are bringing this powerful solution to market at the right time, ahead of what is expected to be a record-setting year in the U.S. for Thanks to the Discovery Tool, we are seeing significant interest from political advertisers and agencies ahead of the U.S. election cycle later this year. In previous cycles, politics wasn't an incredibly material vertical.

We believe this is a critical solution for customers looking to upgrade their planning and advertising efforts across the evolving and converging linear and streaming landscape.

Global ICL about that which we can exclusively monetize through our SDK is integrated into license and other it'll be done powered TV flows through our data platform and TV intelligence solutions.

This was the second largest distributors of multi res globally in 2023.

Near the end of 2023 states.

Dave So fast.

Each of over 25 million connected TV market.

Now they already exceeded $26 million so far in 2024.

<unk> usage has been growing dramatically during December 2023, visa users generated over 2 billion.

<unk> streaming hours.

As a reminder, these are serves as the primary CTV operating system for <unk>, Toshiba Smart Tvs and a subsidiary of <unk>.

<unk> is highly aligned with <unk> growth strategy.

Veeva nics rapidly growing TV footprints, they've also enabled us the scale necessary to offer our activity intelligence solution outside the U S to markets such as the U K, which launched in Q4.

Since we launched.

K PV viewership audience offerings, we've seen notable customers adoption, which drove an uptick in advertising dollars flowing through our platform in that market, which we expect to reflect a significant growth opportunity in 2024 and beyond.

Ofer Druker: However, with the addition of Nexen Discovery and an increased dedicated self-focus on the verticals, this could change in an election year where eMarketer estimated over 12 billion dollars in U.S. political ad spending and anticipates a record-setting year for political TV ad spending in the U.S. In addition to growing our partnership, expanding our data scale and reach, and diversifying our revenue base, we were also successful in Q4 and throughout 2023, adding new customers on the buy and sell sides of the ecosystem while continuing to retain our major customers. During Q4, we added 111 new active first-time advertisers customers across entertainment, food, and beverage, automotive, and finance verticals, as well as others.

In 2012, before we will look to extend the offering to additionally, European and other international markets, giving us additional international growth pathways.

The value proposition of small TVA steel that is becoming more and more obvious and compelling for both advertisers and partners seeking to license the doctor to use to their clients again. This is evidenced by both Walmart. This in February when it announced.

Then to acquire <unk>.

A major smart TV Oems with its own CTV operating systems.

What about I understand the two green with advertisers and grow its advertising revenue.

LTV and operating systems.

And this amount of critical consumers and also better.

It's incredibly effective to enable advertisers to reach target audiences.

This is the exact reason next since investment in feedback and long term partnership with them.

Our unique and differentiated.

That's a partnership like we have with visa we have exclusive rights to distribute their global ACI.

At least the end of 2026, while also enabling us to diversify into.

Licensing revenue streams, reflecting an exciting growth trajectory a new frontier for our business. We are seeing significant demand for data licensing partnership.

Ofer Druker: In Q4, across several verticals and formats, including CTV, broadcast TV, mobile, and mobile gaming providers. During 2023, we added 372 new supply partners, of which 327 were U.S. Before I turn over the call, I would like to add a personal note. After years of working hard to acquire, connect, and add layers of innovation to our product lines, I believe the combination of our rebranding and all the artwork from our product and tech teams to integrate Amobi has led us to the point we are at in our journey today, where we can bring a lot of value to customers across the economy. Now it's time for us to execute. With that, I'm happy to turn the call over to Sagi. Thank you, Ofer.

Measurements and planning providers and four major DSP sticky.

Seeking to leverage this growing footprint of global TV audience targeting we believe our ability to disfigure. This debt for licensing purposes, not only reflects the strong growth opportunity, but also helps expand our recognition we did the industry better enabling us to solidify our leadership was.

We shared within the TV and technical assistance.

Next one discovery that are fueled by to ingest content consumption.

To enhance audience knowledge.

Extended reach is also continuing to differentiate our logistic platform offering and is attracting higher levels of spending from new and existing customers.

Next one discovery has been adopted by key industry partners and we feel we are bringing this powerful solution to market at the right time ahead of what's expected to be a record setting year in the U S for political.

Sagi Niri: Today, I will review the key financial and operational drivers of our performance over the 3 and 12 months ended December 31st, 2023, and we'll also discuss our guidance. In Q4 2023, we generated contribution EXAC of $90.5 million, reflecting a 12% decrease from Q4 2022. This decrease was driven by continued challenging market conditions that disproportionately impacted the budgets and spending of some of our highest spending small and mid-sized agencies to whom we are heavily indexed.

Thanks.

Thanks to the discovery too, we're seeing significant interest from political advertisers and agencies the head of the U S election cycle later this year.

In previous cycles political wasn't that incredibly material vertical for us.

However, with the addition of Nextgen discovery and it increased dedicated sales focus on the royalty clause this could change in an election year.

E marketer estimated over $12 billion in U S political ad spending.

Dissipate a record setting year for political TV AD spending in the U S.

This into growing our partnership expanding or is that the scale and reach and diversifying our revenue base. We were also successful in Q4 and throughout 2023, adding new customers on the buy and sell side of the ecosystem, while continuing to retain our major customers.

Sagi Niri: This is a trend we experienced throughout 2023, as well as a continued shift by those customers and others to our lower-cost programmatic solutions. Full-Year 2023 Contribution X-TAC increased over 1% compared to Full-Year 2022, as programmatic revenue or Contribution X-TAC attributable to programmatic activities in our core business grew by roughly $24.6 million, which slightly outpaced a roughly $20.2 million Throughout 2023, we were impacted by challenges related to the complex integration of Amobi, which contributed to a weaker than initially anticipated contribution.

During Q4, we added 111, you actively spending first time advertisers customers grew.

Both entertainment food and beverage automotive and finance verticals as well as others. This also included the addition of 14, new enterprise sales services titled customers highlighted by some of the worlds most recognizable CTV publishers broadcasters and CPG brands.

As well as the addition of three new independent agency leveraging us in the self serve capacity.

During 2023, we added an impressive 334, new actively spending first time customers.

The company also added 89, new supplier partners, including 78 in the U S.

Q4 across several verticals and formats, including CTV broadcast TV mobile and mobile gaming publishers.

During 2023, we added 372, new supply policies.

Sagi Niri: Keep in mind, with Amobi, we took a roughly 1,000-person company and integrated it with our pre-existing employee base of around 600 employees to create a roughly 900-employee company at the end of 2023, a massive task which required a tremendous amount of the management team's focus. While competitors were able to focus exclusively on teaching customers for 2023, as soon as the acquisition closed, we were occupied with redefining our offering, refining our story in the market, as well as enhancing our platform capabilities, talent base, and marketing efforts for the longer term. Additionally, the amount of time, resources, and focus required to combine platforms and integrate Amobis tech, establish our sales leadership team, and train our teams to sell an expanded product suite negatively impacted sales growth, largely through spending associated with several pre-managed service clients.

37 <unk>.

Basically.

Before I turn over the call I would like to add a personal note.

After years of working to acquire Equinix and ethane of innovation through our product lines I believe the combination of our rebranding and all the hours work.

Product and tech teams to integrate there will be and have led us to the point we are in.

In our journey today, where we can bring a lot of value to customers across the ecosystem.

Now, it's time for us to execute with them.

I'm happy to turn the call over to Siggi.

Thank you Ofer today I will review the key financial and operational drivers our performance over the three and 12 months ended December 31, 2023, and will also discuss our guidance.

In Q4, 2023, we generated contribution ex Tac of $95 million, reflecting a 12% decrease from Q4 2022.

This decrease was driven by continued challenging market condition that disproportionately impacted the budgets and spending of some of our highest spending small and midsized agencies to whom we are heavily index a trend we experienced throughout 2023 as well as a continuing chief by those customer.

Sagi Niri: But we now believe we have the right platform and team in place and are seeing notable improvements. The good news is the bulk of these challenges are now behind us, and we are confident that Nexen is strongly positioned to drive growth in 2024 as it is exclusively focused on selling as opposed to integration initiatives and is armed with a significantly enhanced platform loaded with in-demand tech and data categories. We continue to believe the short-term pain related to integrating Amobi will be well worth the long-term goal.

And address through our lower cost programmatic solution.

Full year 2023 contributions ex Tac increased over 1% compared to full year 2022.

Programmatic revenue or contribution ex Tac accretive to programmatic activities in our core business grew by roughly $24 $6 million, which slightly outpaced roughly $22 million decline in contribution ex Tac related to our noncore legacy non programmatic business line.

Yes.

Throughout 2023 were impacted by challenges related to the complex integration of Amobi, which contributed to weaker than initially anticipated contribution ex Tac.

Keep in mind with our model, we took roughly 1000 person company and integrated it with our pre existing employee base of around 600 employees to create a roughly 900 employee company at the end of 2023, and that's the path, which required a tremendous amount of the management team's focus.

Sagi Niri: We are also cautiously optimistic market conditions will improve in 2024 and agency customers will increasingly migrate from the lower cost solutions they sold in 2023 to our premium programmatic video and streaming solutions such as CTV. From a vertical perspective, in Q4 2023, we experienced trends in finance, education, and automotive, as well as in display and PMP. Conversely, we observed weakness in entertainment, partially due to the SAG-AFTRA strike.

When competitors were able to focus exclusively on PC customers for 2023 as soon as the acquisition closed we were occupied we are redefining our offering refining our story in market as well as enhancing our platform capabilities talent base and marketing efforts for the longer term.

Sagi Niri: Retail, due to some of our agency accounts, significantly reducing spending, and CPV, as customers continue to focus largely on lower cost options like display and mobile video. Despite the migration by select customers to our lower-cost solution, we were pleased the vast majority continued to spend within our broad suite of offerings, highlighting the strength of our flexible and diversified business model. Contribution EXPAC in Q4 and throughout 2023 was also impacted by a strategic makeshift towards self-service enterprise solutions, which carry lower take rates but are favored by larger agencies, opening the pathway to much larger volume deals over time. Self-service enterprise solutions are typically less vulnerable to advertising demand shock, which is a core reason we are focusing on self-service and are accepting of some short campaigns in order to capitalize on the long-term gains we expect. Self-service contribution exacts doubled in Q4 2023 from Q4 2022 and more than doubled in fall year 2023 versus full year 2022. Programmatic revenue was $86 million in Q4 2023, reflecting a 9% decrease from the previous quarter.

But we now believe we have the right platform and team in place and are seeing notable improvements.

The good news is the bulk of these challenges are now behind us and we are confident that <unk> sales team is strongly positioned to drive growth in 2024 as they are exclusively focused on selling as opposed to integration initiative and our armed with a significantly enhanced platform loaded within demandtec.

That's our capabilities.

We continue to believe the short term pain related to integrating the movie will be well worth the long term gain.

We are also cautiously optimistic market condition will improve in 2024 and agency customers will increasingly migrate from the lower cost solutions.

So in 2023 to our premium programmatic video and streaming solution.

CTV.

From a vertical perspective in Q4 2023, we experienced strength in China's education in automotive as well as in display and PMT.

Conversely, we observed weakness in entertainment, partially due to the <unk> op Terra strike retail due to some of our agency account significantly reducing spending and CTV is customer continuing to focus largely on lower cost options like display and mobile video.

Despite the migration by select customers to our lower cost solution. We were pleased the vast majority continuing to spend within our broad suite of offering highlighting the strength of our flexible and diversified business model.

Sagi Niri: Conversely, programmatic revenue for full year 2023 increased 9% for full year 2022, largely due to the AMOBI integration. Programmatic revenue, the percentage of revenue, increased to 90% for both Q4 and full year 2023, from 88% in Q4 2022 and 82% in full year 2023. CTV revenue for Q4 2023 was $19.9 million, reflecting a decrease of 40% from Q4 2022.

Contribution ex Tac in Q4 and throughout 2023 was also impacted by our strategic mix shift towards 10 stages enterprise solution, which carry lower take rate, but are favored by larger agencies opening a pathway to much larger volume deals over time.

Since service contribution ex Tac dabbled in Q4, 2023 from Q4, 2022 and more than doubled in full year 2023 versus full year 2022.

Sagi Niri: We've recently observed what we believe to be a short-term transition by some of our advertisers and agency customers away from CTV into lower-cost solutions like mobile video as well as digital, which we believe reflects cost-saving efforts and the evolution of streaming preferences as consumers increasingly stream content on mobile phones and tablets in addition to on connected TVs. Our platforms, advanced data, planning, and audience finding tools are designed to help customers find audience targets and extend reach regardless of where content is contained. Amid recent uncertainty that has impacted budgets and spending, fewer macroimmune customers have sought our performance-based programmatic solutions and are trying to maximize audience reach through lower CPM options and don't necessarily care about the specific media or devices within our ecosystem that they find users on. To highlight these points, contribution x-tax from mobile increased 5% year-over-year, contribution x-tax from display increased 21% year-over-year, and As market conditions improve, major streaming services like Amazon embrace ad-supported models, attracting new advertisers to CTV, and linear dollars shift more aggressively to streaming. We believe that CTV advertising demand will increase, and the current supply versus demand imbalance will decrease, resulting in increased CTV pricing over time.

Programmatic revenue was $86 million in Q4, 2023, reflecting a 9% decrease from Q4 2022.

Conversely, programmatic revenue for full year 2023 increased 9% from full year 2022, largely due to their mobile integration.

Programmatic revenue as a percentage of revenue increased to 90% for both Q4 and full year 2023 from 88% in Q4, 2022 and 82% in full year 2022.

CTV revenue for Q4, 2023 was $19 $9 million, reflecting a decrease of 40% from Q4 2022.

We have recently observed what we believe to be a short term transition some of our advertiser and agency customers away from CTV into lower cost solution like mobile video and display, which we believe reflect cost saving efforts and the evolution of streaming preferences.

As consumers increasingly stream content to mobile phones and tablets. In addition to in connected TV.

Our platform advanced that that planning and audience finding tool.

Are designed to help customers find audience target and extend reach regardless of where content is consumed.

Amit recent uncertainty that has impacted budgets and spending less macro immune customers thought our performance based programmatic solution and are trying to maximize audience reach through lower CPM option and don't necessarily care about the specific media or devices within our ecosystem.

Tim that the signed users on.

To highlight this strong contribution ex Tac from orbit increased 5% year over year.

<unk> ex Tac from display increased 21% year over year and contribution ex Tac from audio increased 71% year over year in Q4 2023.

Sagi Niri: Despite near-term weakness, TTV will remain a key investment area and is expected to be a long-term growth driver for next year. As linear budgets continue to shift towards and converge with digital, we are well positioned to capitalize on our unique solutions like our cross-platform planner, Nexen Discovery, and PV Intelligence. CTV reflected 23% and 29% of our programmatic revenue in Q4 and full year 2023, respectively, which we expect to expand over time as macro headwinds ease, ad budgets and CTV spending expand, and CTV pricing dynamics improve. However, video revenue continues to account for most of our programmatic revenue at 67% in Q4 2023 and 69% for full year 2021. Although this presented a failure over a year, we believe they remain well above the industry average.

As market conditions improve major streaming services like Amazon embraced AD supported model, attracting new advertisers to CTV and Nino Donald shipped more aggressively from screening we believe the CTV advertising demand will increase in the current supply versus demand imbalance will decrease resulting.

Increased CTV pricing over time.

Despite near term weakness CTV will remain a key investment area and is expected to be a long term growth driver for nexon.

As linear badger continues to shift toward and converge with digital we are well positioned to capitalize through our unique solution like our cross platform planner Nexsan discovery NPV intelligence.

CTV reflected 23% and 29% to <unk> programmatic revenue in Q4, and full year 2023, respectively, which we expect will expand over time as macro headwinds is AD budgets in CTV spending expand and CTV pricing dynamics improve.

Video revenue continued to account for most of our programmatic revenue at 67% in Q4, 2023, and 69% for full year 2023.

Sagi Niri: While we have flexibility to serve its customers across display and video, we continue to strongly believe that video is the best long-term option for NextGen and its advertisers, as it is the most engaging format. As market conditions improve, we believe the shift towards display will reverse, and when this happens, we expect to achieve out-of-sales growth because of our high exposure to and positioning within. The year-over-year decrease in video revenue as a percentage of programmatic revenue in Q4 was due to increased demand for display solutions by select customers and a year-over-year decline in CTB revenue.

Although these presented the failure of a unit, we believe we remain well above the industry average.

As market conditions improve we believe the shift towards display will reverse and when this happens we expect to achieve outsized growth because of our high exposure to and positioning within video.

Sagi Niri: The full year 2023 versus 2022 decrease was a byproduct of a larger programmatic revenue base, a 34% increase in display contribution exact, driven by the integration of OMOBI and diversification into revenue streams like audio, data, and converged TV plans. In full year 2023 versus full year 2022, contribution x-tax from our cross-platform planner increased over 330%. Contribution x-tax from our data product increased nearly 300%, and contribution x-tax from audio increased over 425%. In Q4 2023, we generated $32 million of adjusted EBITDA compared to $36.9 million in Q4 2022. Adjusted EBITDA was affected by Amobi, whose business lines are less profitable than the pre-acquisition, stand-alone Nexen business, and a weaker comparative spending environment for some of our less macro-immune customers.

The full year 2023 versus 2022 decrease was a byproduct of larger programmatic revenue base.

The 4% increase in display contribution ex tax driven by the integration of MLB and diversification ink revenue streams like audio data and converged TV planning.

In full year 2023 versus full year 2022 contribution ex Tac from our cross platform planner increased over 330% contribution ex Tac from our data products increased nearly 300% and contribution ex Tac from audio increased over 400.

Third 25%.

In Q4, 2023, we generated $32 million of adjusted EBITDA compared to $36 $9 million in Q4 2022.

Adjusted EBITDA was affected by MLB, whose business lines are less profitable than the pre acquisition Standalone nexsan business and a weaker comparative spending environment for some of our less macro immune customers.

Sagi Niri: As we've seen in the past, as we generate higher levels of contribution x-tax, the majority will flow through to Adjusted EBITDA. Given the strength of our operating model, which provides a strong and increasing degree of operating leverage, which is a key reason our Adjusted EBITDA margin expanded in Q4 2023 compared to Q3 2021. In Q4 2023, we generated an adjusted EBITDA margin of 33% on a revenue basis and 35% on a contribution XTAC basis compared to 34% on a revenue basis and 36% on a contribution XTAC basis in Q4 2021. We also achieved a net revenue retention rate of 73% during 2023 compared to 80% in 2016. While the rate decreased due to reduced spending and a shift to lower cost options by select customers, the company retained an overwhelming majority of its highest spending accounts and successfully added new customers on both sides of the ecosystem throughout the year.

As we said in the past.

We generate higher levels of contribution ex Tac the majority will flow through to adjusted EBITDA given the strength of our operating model, which provides strong an increasing degree of operating leverage which is the key reason our adjusted EBITDA margin expanded in Q4 2023 compared to Q3 'twenty.

23.

We also achieved our net revenue retention rate of 73% during 2023 compared to 80% in 2022.

Sagi Niri: Turning to our cash flow, we generated $43.6 million in net cash from operating activities in Q4 2023 after generating net cash from operating activities of $23.9 million in Q4 2022. During 2023, we incurred approximately $6 million in severance and retention bonus related costs associated with the reorganization of Hammabi employees into NETs. As of December 31st, we had $134.3 million in net cash and $80 million undrawn on our revolving credit sheet.

Turning to our cash flow, we generated $43 6 million in net cash from operating activities. In Q4 2023 after generating net cash from operating activities of $23 $9 million in Q4 2020.

During 2023, we incurred approximately $6 million in severance and retention bonus related costs associated with the reorganization of our mob employees into next.

As of December 30, <unk>, we had $134 3 million in net cash and $80 million undrawn on our revolving credit facility.

Sagi Niri: We don't plan any major new-term acquisition and believe we have all the critical tech components our business needs to succeed in the foreseeable future. In the near term, we leverage our cash for the ongoing needs of the business, investment in internal growth and innovation initiatives, as well as ongoing and potential future share repurchase. For full year 2023, share-based compensation was $19.2 million, which we expect to decrease in full year 2023.

We don't plan any major near term acquisition and believe we have all the critical components, our businesses need to succeed in the foreseeable future.

In the new Tam, we leverage our cash for the ongoing needs of the business investments in internal growth and innovation initiatives as well as ongoing and potential future share repurchases.

For full year 2023 share based compensation was $19 2 million, which.

Which we expect to decrease in full year 2024.

Sagi Niri: We also generated non-IFRS diluted earnings per ordinary share of $0.10 in Q4 2023 compared to $0.15 in Q4 2023. In December 2023, we were excited to launch our new $20 million ordinary share repurchase program to take advantage of what we believe to be a discounted valuation opportunity. In Q4, we purchased 221,506 ordinary shares, reflecting an investment of approximately 446,000 pounds or $566,000.

We also generated non <unk> diluted earnings per ordinary share of 10 cents in Q4 2023 compared to <unk> 15 in Q4 2022.

In December 2023, we're excited to launch our new $20 million ordinary share repurchase program to take advantage of what we believe to be a discounted valuation opportunity.

In Q4, we repurchased 221506 ordinary shares reflecting an investment of approximately 446000 tons or $566000.

Sagi Niri: This investment will increase in Q1, as purchases in Q4 were minimal, given the program didn't begin until December 20. If shares remain at what the board believes continue to reflect discounted valuation levels and the company remains cash-generative as we currently anticipate, we will consider launching further share repurchase programs after completing the current program. Finally, I now turn to our audience. For full year 2024, we expect contribution extra in a range of approximately $340 to $345 million, an adjusted EBITDA of approximately $100 million, and we anticipate programmatic revenue will reflect approximately 90% of full year 2024 revenue. For full year 2024, we expect R&D and sales and marketing expenses to reflect similar percentages of contribution exact compared to full year 2023, but for G&A and depreciation and amortization to decrease as percentage of contribution exact compared to full year 2023.

This investment will increase in Q1 as purchases in Q4 with minimal given the program didn't begin until December 'twenty.

If shares remain at what the board believes continuing to reflect discounted valuation level and the company remains cash generated as we currently anticipate we will consider launching <unk> share repurchase program. After completing the current program.

Finally, I'll now turn to our outlook.

For full year 2024, we expect contribution ex Tac.

In a range of approximately $340 million to $345 million.

Adjusted EBITDA of approximately $100 million and anticipate programmatic revenue will reflect approximately 90% of full year 2020 for revenue.

For full year 2024, we expect R&D and sales and marketing expenses to reflect similar percentages of contribution ex Tac to full year 2023, but for G&A and depreciation and amortization to decrease at percentages of contribution ex Tac compared to full year 2023.

Sagi Niri: Additionally, we anticipate increased diversification into new revenue streams like data licensing and audio, and for CTV revenue to return to growth in full year 2020. While ongoing near-term uncertainty continues to impact budgets and spending for some of our customers, and those customers are continuing to favor our lower-cost solution, we have cautious optimism that we can achieve greater growth in 2025. Our renewed focus on selling as opposed to integrating and our significantly enhanced tech and data spec positions as well. And we believe we may begin to experience market tailwinds as opposed to headwinds later this year.

Additionally, we anticipate increased diversification into scaling revenue stream like data licensing and audio and for CTV revenue to return to growth in full year 2024.

While ongoing near term uncertainty continues to impact budgets and spending for some of our customers and those customers are continuing to favor our lower cost solution. We have cautious optimism, we can achieve greater growth in 2024.

Our renewed focus on selling as opposed to integrating and our significantly enhanced tech and that affect positions us well and we believe we may be deeply experienced market tailwind as opposed to Edwin later this year.

Sagi Niri: We feel we provide a massive advantage for customers as we can service across the entire advertising supply chain, have a long-standing streaming DNA, and unite tech, creative, data-based, in-class service, and flexibility under one roof, enabling us to adapt to our customers' diverse needs and grow with them over time. I believe we have a bright future ahead of us following the milestones our teams achieved in 2023. With my remarks completed, I will turn the call back over to Ofer. Thank you, Sagi.

We feel we provide a massive advantage for customers as we can service across the entire advertising supply chain has a longstanding streaming DNA and unite tech creative data best in class service and flexibility under one roof, enabling us to adapt to our customers' diverse needs and grow with them overtime.

<unk>.

I believe we have a bright future ahead of us following the milestones our team achieved in 2023.

With my remarks completed I will turn the call back over to offer.

Thank you Sir.

Ofer Druker: While Resulting Q4 and throughout 2023 were challenged by difficult market and advertising conditions, particularly for our small and mid-sized agency customers, we feel we created a solid foundation for the future. We completed the integration of Amobi, which was the largest company we ever acquired. While it was a challenge that required a massive amount of attention, resources, and energy, we were able to make it happen through our unwavering focus on our vision and robust acquisition and integration experience. The acquisition bolstered our self-serve tech and added unique and differentiated planning capabilities such as the discovery tool and the ability to plan across the converged TV ecosystem, which we believe enabled us to attract new customers and position our existing customers for success.

While the results in Q4 and throughout 2023 were challenged by difficult market and advertising condition, particularly for our small and mid sized agency customers. We.

Phil we created a solid foundation for the future.

We completed the integration of <unk>, which was the largest company we acquired while it was a challenge that requires a massive amount of attention.

Susan energy, we've been able to make it happen through our unwavering focus on our vision and robust acquisition integration experience.

The acquisition bolsters, our self serve.

<unk>.

The acquisition also.

Able us to.

To grow our U S and international customers above the street and brought us amazing industry experts and ethics veterans.

We enhanced our talent base across all aspects of the organization.

We also successfully rebranded two mix, which we feel is so important to better present.

Our company platform solution within the industry.

The financial markets.

Ofer Druker: We now feel we are well positioned with all the key elements we need to succeed in the video streaming and TV advertising ecosystem and to grow and take market share in 2024 without the need for another major acquisition or the heavy lifting focus and resource dedication required to execute a major integration. We believe our unified platform now represents one of the most scaled, data-rich, and advanced tech platforms in the industry for customers on both sides of the economy. It was built through several years of R&D and five major acquisitions that reflect roughly one billion dollars in total R&D investments.

We now feel we are well positioned with all the key elements, we need to succeed in the video streaming and television advertising ecosystem and to grow and take market share in 2024.

Without the need for another major acquisition for the EB industry focus and resource dedication required to execute a major with integration.

We believe our unified platform now reflects one of the most scaled that are rich in advance tech platform in the industry for customers.

Both sides of the ecosystem.

It was been through several years of R&D and five major acquisitions that reflects roughly $1 billion in total R&D investment.

In 2024 and beyond.

Ofer Druker: In 2024 and beyond, we will continue to seek to grow our new customer base and increase revenue relationships and product adoption with existing customers, while also focusing on growing our self-service enterprise customer base, data customer base, and the relationship with major agencies, CTV, and broadcast partners. We believe this will enable us to grow contribution earnings and expand profitability, which we can then reinvest in tech and product innovation to benefit our customers and share repurchases to drive added long-term value for our shareholders. As a management team, we feel we are in the strongest position we have been in for some time to accelerate our growth and take our rightful place amongst the leaders in the edtech ecosystem and are excited about what this year can bring.

We'll continue to seek to grow our new customer base and increase revenue relationship and product adoption with existing customers. While also focusing on growing our self service enterprise customer base.

Customer base and the relationship with Meso agency CTV and broker partners.

We believe this will enable us to grow contribution ex Tac and expand profitability.

Which we can then reinvest in tech and product innovation to benefit our customers and share repurchases to drive long term value for all shareholders.

Management team, we feel we are in the strongest position we have been in for some time to accelerate our growth and take our rightful place amongst.

The leaders in the AD Tech.

Ecosystem and are excited for what this year can bring and as always I want to take our customers employees and shareholders for their continued support and we look forward to continuing to work hard to grow our business and expand.

Ofer Druker: As always, I want to thank our customers, employees, and shareholders for their continuous support, and we look forward to continuing to work hard to grow our business and expand and enhance our offering and capabilities to the benefit of all stakeholders. Operator, we will now take questions. At this time, if you would like to ask a question, please press the star followed by the number one on your telephone keypad.

Our offerings and capabilities to the benefit of all stakeholders, operator, we will now take questions.

At this time, if you would like to ask a question. Please press star followed by the number one on your telephone keypad.

Operator: And as a gentle reminder for everyone, please limit yourselves to only one question each. Thank you. We'll pause for just a moment to compile the Q&A roster. Your first question comes from Matt Swanson from RBC Capital Markets. Please go ahead.

And as a reminder for everyone. Please limit yourselves to only one question. Each thank you Bill passed for just a moment to compile the Q&A roster.

Your first question comes from the line of Matt Swanson from RBC capital markets. Please go ahead.

Yes. Thank you for taking my question and congratulations on a year of investment completed now.

Now that we're through kind of the heavy lifting of the integration as you spoke to ofer.

Ofer, maybe karim if youre still on what are the key areas of investment you're shifting to you in 2024 now that you can maybe focus on the things you want to do more than what you need to do with the integration and then.

So can you if I could sneak kind of a half question and after that just how you think about those investments in terms of the adjusted EBITDA guidance. We just got thank you.

Thank you Matt.

Good question of course.

Ofer Druker: Karim can, of course, join me, but in general, I think that our... We have finished basically the integration of all the elements that we acquired over the years into one platform end-to-end solution that is focusing on CTV video and data. I think that the major thing that we are going to put emphasis on this time in the near future is our data and to combine the identity graph that we have got into one graph that we will hold and manage because this is the essence, I think of the differentiation, basically the amount of data and the capability that we are connected across the end-to-end solution with all the platforms to our DMP and the ACR agreement, an exclusive agreement that we have for the next couple of years And I will hand it over to Karim to talk a little bit more about the graph.

Karim can of course, Germany, but in general I think that our.

We finished basically the integration of the of all the elements that we acquired but where it is.

Two one platform end to end solution that is putting a focus on CTV video and data.

The major thing that we are going to put emphasize no index in the near future is about our data.

And to combine that.

The graph that we got into one one graph that we will all then manage.

Because this is the essence light vehicles.

The differentiation basically the amount that the capability that we are connected across the end to end solution with all the platform to our E&P and ACI agreement exclusive agreement that we have for the next couple of three years is giving us advantage around that time, we want to utilize it and I will hand over to <unk> to talk a little bit more.

Above the graph.

So this year.

Karim Rayes: This year the focus of the event is to continue to improve our identity solution, add more partners to it, and expand our graph. Beyond that on data, there is a lot of focus on our direct assets, so launching our ACR solution globally. As Ofer mentioned earlier, we launched in the UK, we're live in the US, and we're launching in multiple other countries in 2024. We'll be working on an expansion and then continue to improve our first party onboarding of data and tools around that to help serve our customers. And I will now hand over to Sagi to...

The I'd say the focus of the investments that continue to improve our identity solution.

More partners to expand our graph.

Beyond that on the data a lot of focus on our direct assets. So our goal of launching our SCR solutions globally as <unk> mentioned earlier, we launched in the UK where life.

We're launching multiple other countries in 2024.

So we'll be working on expansion and then <unk>.

To improve our first party onboarding of data and tools around that too to help serve our customers.

And I would add over now just again.

Sagi Niri: Yes, Matt, so regarding your question, all the investments that both Karim and Ofer mentioned are already embedded within our 2024 plan and guidance. We think, you know, that all of these investments will bear fruit in 2024 and, of course, beyond. And it will take us in 2024 to our 30-ish percent adjusted EBITDA margin, and probably, and hopefully, going forward into 2025, it will go higher. Your next question comes from Laura Martin from D-DIMM. Please go ahead. Hi there, I'll stick to one.

Yes, Matt So regarding your question all the investment that both Karim and aforementioned are already embedded within our 2024 plan and guidance.

We think that all of these investments will.

Bears fruit in 2024 and of course onward.

It will take us in 2020 for two hour 30 ish <unk>.

<unk>, adjusted EBITDA margin, and probably and hopefully going forward into 2025, it will go higher.

Okay.

Sure.

Your next question comes from the line of Laura Martin from Needham. Please go ahead.

Hi, there.

One.

So one of the questions I have for you is the war in Israel; how much do you think it affected the fourth quarter financial performance? And related to that, how many people actually were what percent of your FTEs got called into the war? And are they all back now? And could that be a non-recurring area of weakness that doesn't actually affect it for 2024? What's your point of view on that? Thank you, Laura. First of all, of course, the events of October 7th affected us maybe in morals, in our mindset, and so on. But in Israel, our business is not basically based in Israel; it's based in the U.S. and across Asia and Europe, so it's less affecting our day-to-day business activities. I'm doing business, sorry.

So one of the questions I have for you is the Warren Israel, how much do you think it affected the fourth quarter.

In asphalt performance.

And then related to that how many people actually.

What percent of your FTE, Scott called into the World and are they all back now and could that be a nonrecurring area of weakness.

It doesn't actually better.

Better 2020, what's your point of view on that.

Thank you Laura.

First of all of course, they've been social October seven.

Affected us maybe more.

In the <unk> and so on but in Israel.

Our business is built is not basically based in Israel is based in the U S and across Asia and Europe. So it is less affecting our day to day business doing doing business.

Regarding the teams that are in Israel, I think that they did an amazing job to basically cover for the people that will call to the army and we didn't sell.

And then slowdown in anything that we are.

Meaningful that we are doing.

People are coming in and out so basically we have about 20% of our team in Israel that was related or go into the army out of let's say one other thing 85 people about 20% cold.

Okay.

Let me now.

And it's not it's not like something that is affecting us.

It will affect us.

We'll do better next year with Snowflake.

It will take us in this way because basically the people that stayed the same since day.

Working with the cover for the people that went through that again.

Extra hours and thank them for their products.

Thank you.

Your next question comes from the line of Andrew <unk> from Raymond James. Please go ahead.

Hi, Thank you for taking my question, maybe building off of an earlier question in your in your prepared remarks, how are you thinking about prioritization on several growth vectors you kind of outlined in the call is there anything that needs to be in place first before you move on to other aspects of your growth outlook and how should we be measuring kind of those.

Interim mile markers, along the way thank you.

Yes.

Let me be correct.

He wants.

I wish I could I think that I think that first of all we have seen first I want to keep chipotle.

France of course, we are doing so as I said all the every integration.

Was done for between the DSP.

And upgrading the ERP install and already done in 2023, I think that the.

What we are doing.

Finalizing the last elements of the BNP, which is debt to.

To connect all the identity graph into one.

Which will bring us a lot of value connected also to our discovery tool that will enable us to create more insights more.

Smart segmentation for clients once two targets.

But I think that it is done through the teams that are dealing with that so its not we don't have to wait it's already on the work and it's when it's supposed to be done by in the next couple of slides in the next two to three months basically.

I don't see any immediate it will slow us down those nothing that needs to be filed at the rest of the things that we're doing is about.

We are able now to move some more resources to innovation because last year, a lot of our manpower and a lot of our attention and lot of our let's.

Lets say our.

<unk> was first of all to go to conclude the integration of the platform Michelle Berrey IV platform to integrate.

Now I think that basically we are expecting our team seems to go back to innovation like this.

There are still.

We have a lot to do like the around again.

Sorry, if you mentioned it again, but that be the logic integration ACI.

Randy.

<unk> countries.

Integrating all these capabilities into our systems is meaningful and I think that this is the innovation that we are looking to get which is around basically CTG.

That we are doing already.

The last couple of years.

Okay. So that's it basically.

Thank you Ed.

Your next question comes from the line of Matt <unk> from JMP. Please go ahead.

Thank you for taking my question, maybe just on the guidance can you guys parse through how much of it is just execution on your part of the improvement and execution versus a general macro recovery that we're going to see potentially in 2024. Thank you.

Well I will take this question.

Want to add something.

Generally I think that it says.

As we mentioned also in discrete.

We are talking about 2023, I think that again, our intention was on integration we need to remember that we basically acquired the company of 1000 people into Airbus 22 in the last quarter, we need to integrate it into our company of 600 people, we cut cost us about $65 million last year on run rates, which is.

Very buses and in general I think that now it's about.

Look about execution.

Of course, if the market will do better this will help us even more but we cannot control. What we can control is the execution of our team putting more focus on doing business that integration.

As I said, we saw great innovation that can drive more business partnership and more business coming into our business.

So here you have something to add.

Noting that it doesn't have something sorry.

Thank you.

Your next question comes from the line of Eric Martin Lindsay from Lake Street. Please go ahead.

I wanted to get a better sense of seasonality in the flow of the contribution.

Ex Tac year guidance for 2024, very robust at the midpoint, 9% for the year and my own model for the first quarter only had about a 5% growth rate for contribution ex Tac and I'm wondering what your comfort level is with.

Should we be modeling this kind of.

Level loaded throughout the year on the growth rate or is it.

Slightly less than Q1.

Maybe more in Q4.

Yes, So I think first we believe strongly in our guidance.

Second I think we have you know as we mentioned before better drivers.

For D C or contribution ex Tac and trend.

But we signed.

Settlement agreement with LG at the former.

Zelle, which is giving us much much more reach and lots of other opportunities of course, all the new products that Karim and ultra mentioned and of course.

On top of that.

And well positioned salesforce after the huge integration that we did over there in 2023 and we are already in Q1 like seeing the pipelines and the fruits of that.

Yes.

Okay.

And in general always the second half of the year.

Stronger than the first half will do for us.

Yes.

So something like.

Yes.

Your next question comes from the line of Mark Kelly from Stifel. Please go ahead.

Great. Thank you. Good morning, everyone. I was hoping maybe you could just go back to the political commentary.

That you offered.

I would imagine that having the linear TV.

<unk>.

Actual cycle, its probably a benefit to you given that a lot of those budgets are still.

Largely linear I guess, when you're talking to those types of advertising clients.

I guess do you expect more digital this year is it still going to be primarily linear TV and I guess, how do you fit into that.

Ecosystem now that you've got all of the different assets that you Didnt have four years ago, and then maybe one quick clarifying question if I could.

Did you guys say that you expect CTV cpm's to increase from here.

I thought I heard that my prepared remarks, I just want to make sure I heard that correctly. Thank you.

Just to cover the last part we didn't say that about CPM with CTV.

When we are talking about political I think thats for the first time.

Just in my career, where coming ready for that in a minute meaning that.

We have very strong tools that are enabling basically to check to grid segments, according to demand and clothing too.

People are related to two ideas and policies and so on and I think that it's giving us a lower percent local vintage in the market basically.

To gain.

Some of the dollars that are going to political in order to support different candidates.

And did that are related to the segmentation tool that said that is related to political.

Campaigns in activity, which is very important.

The second thing of course, our capability around <unk> Cross platform, resulting also because.

Was it basically can save some of the mountain.

But of the.

Of the policies, where they want to promote the candidate to make more money to work for them in a smart manner.

Our platform.

Technology, because it basically enable them to identify where they need where they need to invest their money in order to make it more effective.

Cross platform across linear and digital in general we believe that this year in Q2 or looking at as.

From.

In perspective to others before that where elections I think that the.

More money will go to digital basically because the level of <unk>.

Lineal connection wind down so people want they want to reach targeted users in different regions of the country. They will have to use also the digital in order to do that.

Exactly where we are strongest and we believe that this will enable us to win more of these build outs and to bring them to our P&L basically.

And just add to that.

Political probably will influence our second half of the year.

Q3, and mainly Q4.

Yes.

As there are no further questions I would like to thank our speakers for today's presentation and thank you all for joining US. This now concludes today's conference you may now disconnect.

Q4 2023 Nexxen International Ltd Earnings Call

Request a DemoDemo

NEXN

Nexxen International

Earnings