Q1 2024 Nexxen International Ltd Earnings Call

Operator: Welcome to Nexen's earnings call for the three months ended March 31st, 2024. At this time, participants are in a listen-only mode with a question-and-answer session to follow at the end of the presentation.

Welcome to the <unk> earnings call for the three months ended March 31st 2024. 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.

Operator: 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 a reading of the Safe Harbor Statement. Billy, please go ahead.

Billy: All over to Billy occurred Vice President of Investor Relations for introductions and the reading of the Safe Harbor statement. Billy. Please go ahead.

Billy Eckert: Thank you, Operator. Good morning, everyone, and welcome to Nexen's First Quarter Earnings. During today's call, we will discuss our financial and operating results for the three months ended March 31st, 2024, as well as our forward-looking guidance. With us on today's call are Ofer Druker, Nexen's Chief Executive Officer, and Sagi Niri, the company's Chief Financial Officer. This morning we issued a press release which you can access on our IR website at investors.nexen.com. 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: Thank you operator, good morning, everyone and welcome to <unk> first quarter earnings call. During today's call, we will discuss our financial and operating results for the three months ended March 31, 2024, as well as our forward looking guidance.

Speaker Change: On today's call are <unk>, Chief Executive Officer, and the company's Chief Financial Officer.

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

Speaker Change: 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: 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, 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.

Speaker Change: Fitments include without limitation statements or 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 <unk>.

Billy Eckert: 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.

Speaker Change: Alex or services.

Speaker Change: 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.

Billy Eckert: More detail 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, 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.

Speaker Change: More detail 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.

Speaker Change: <unk> 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.

Speaker Change: 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.

Speaker Change: For you to the company's press release for additional details, including definitions of non <unk> items and reconciliations of Ifr us to non high FRS results. At this time. It is my pleasure to introduce Overdrew, Kurt CEO of Nixon over please go ahead.

Billy Eckert: 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 Ofer Druker, CEO of Nexen. Ofer, please go ahead.

Ofer Druker: Thank you, Billy, and welcome to everyone joining us today. In 2023, we achieved a significant milestone by completing the integration of our largest acquisition to date, a mobile phone company. Through our work and a steadfast focus on our strategic vision, we successfully merged some of the industry's top talent, tech capabilities, and data assets, resulting in a great enhanced technology platform and company. The integration caps off our multi-year strategy to construct a unified end-to-end tech platform focused on video and CTV and empowered by robust data that enable enhanced outcomes and drive success for both sides of the digital advertising economy.

Amy: Thank you Amy and welcome to everyone joining us today.

Speaker Change: Martin.

Speaker Change: The significant milestone by completing the integration of our largest acquisition to date.

Speaker Change: Through all of work in this space.

Speaker Change: One hour.

Speaker Change: We successfully managed some of the industry stockpiling.

Speaker Change: And that asset, resulting in a greatly enhanced technology platform and company.

Speaker Change: The integration capital thank.

Speaker Change: Thank you.

Speaker Change: To construct a unified.

Speaker Change: Platform focused on video and CTV and powered by robust data.

Speaker Change: Thank you enable outcome and drive success for both sides of the digital advertising ecosystem.

Speaker Change: We accomplished a major fleet, while reinforcing our talent base and boosting our sales and marketing therefore strongly positioning us to drive future growth.

Ofer Druker: We accomplished this major feat while reinforcing our talent base and boosting our sales and marketing efforts, strongly positioning us to drive future growth. With the integration complete, we have shifted our attention, returning to our product innovation route. This has enabled us to use our strong technology base to continually develop and launch advanced solutions that address our customers' diverse and evolving needs and challenges and grow our relationship with the biggest players in the industry. With our tech and talent combination in place, the next step in our evolution was to consolidate our products and operations under one brand, Nexen, a process we concluded in Q1.

Speaker Change: With the integration complete we have shifted our attention we've done any for product innovation.

Speaker Change: This has enabled us to use our strong technology base to continually develop and launch advanced solutions that address our customers' diverse and evolving needs and challenges and grow our relationship with the biggest players.

Speaker Change: Okay.

Speaker Change: With our tech and talent combination and play the next step.

Speaker Change: <unk> was to consolidate our products Sem operation under one brand Nexsan and process. We concluded in Q1.

Ofer Druker: The rebrand has strengthened our messaging in-market and deepened the industry understanding of our comprehensive suite of offers. It has also enabled our sales teams to more effectively convey the value and advantages of customers utilizing several tech and data solutions within our full stack. I'm pleased to report all these efforts are beginning to pay off, culminating in our recent success being viewed as the go-to strategic partner to some of the world's largest and most recognizable brands, agencies, and digital publishers.

Speaker Change: The rebrand and strengthen our messaging and market and deepened industry understanding of our comprehensive suite of offerings.

Speaker Change: Also enabled our SaaS is to more effectively convey the value at advanced stages of customer utilizing several AD tech and data solution.

Speaker Change: Our fourth stack.

Speaker Change: Pleased to report all these efforts are beginning to pay off.

Speaker Change: Coordinating our recent success.

Speaker Change: Success being viewed as the go to strategic partner to some of the worlds largest and most recognizable brands agencies and digital partnerships.

Ofer Druker: After a long journey marked by several years of acquisitions and industry-leading forward-thinking product innovation, we now have the right tech stack in the market, the right messaging, and the right value proposition to sell. We are more confident than ever in our ability to execute and accelerate our market share growth. In Q1, we took several steps to strengthen our positioning within the CTV advertising arena. For one, we resolved the longstanding litigation through a favorable settlement agreement and multi-year strategic partnership with LG and Alphonse.

Speaker Change: I'll say, a long time marked by several of the use of acquisition and industry, leading pharmacy product innovation. We now have the right tech stack and market the right messaging and the right value proposition to study.

Speaker Change: We have more confidence than ever in our ability to execute and accelerate our market share gains.

Speaker Change: In Q1, we took several steps to strengthen our positioning within the CTV advertising arena.

Speaker Change: For one we resolved a longstanding litigation through a favorable settlement agreement and multi year.

Speaker Change: <unk> partnership with LG and Alfonzo.

Ofer Druker: After years of not working together, we are pleased to be doing business and cooperating with LG, which is an important player in the CTVOM industry. Through the partnership, Nexen is able to monetize some of LG's premium CTV inventory, and Alfonso, now LG Head of Advertising, will leverage Nexen data-driven discovery and segmentation tools to enhance advertisers' engagement on their media properties. Nexton also recently partnered with Roku, the number one TV streaming platform in the U.S., by our stream, further expanding our reach and relationship in CTV and streaming. NextGen is directly integrated with Roku, providing our customers access to premium content in their Roku channel.

Speaker Change: After years of not working together, we are pleased to be doing business and cooperating with LG, which is an important player in the CTV OEM landscape.

Speaker Change: Through the partnership Nexon is able to monetize some of LG premium CTV inventory and Alfonzo now lgs, we leverage <unk> data, driven discovery and segmentation tools to enhance advertisers' engagement.

Speaker Change: Our media properties.

Speaker Change: Nexsan also recently partnered with <unk> the number one TV platform in the U S by our stream.

Further extending our reach into the initiatives in the CTV and streaming space.

Speaker Change: Next one is directly integrated with Roku provided our customers access to premium supply in the Roku channel.

Ofer Druker: We look forward to working closely with Roku, and we seek to expand our relationship with them over time. This partnership now gives us a strong relationship with all the world's major CTV OEMs, a massive value proposition for TV advertising customers. We have also expanded our partnership with TCL beyond access to CTV and OTT supply in the TCL channel to become the exclusive seller of their native display inventory and their preferred supply platform partners.

Speaker Change: We look forward to working closely with <unk> and we hit to expand our relationship with them overtime.

Speaker Change: This partnership now given our strong relationship with all the world's major CTV OEM.

Speaker Change: The value proposition for television advertising customers.

Speaker Change: We also expanded our partnership with this year beyond the access to CTV and OTT supply.

China too.

Speaker Change: To become the exclusive seller of their native display inventory as their preferred supplier platform partner.

Ofer Druker: This partnership, combined with our other major CTVOM relationships, provides Nexen the ability to offer significant TV audience-rich extensions for customers, positioning us as the first call for those looking to enhance TV and streaming advertising. On the streaming data front, we partnered with FieldLogic and Q1 to bolster our TV data solution, TV intelligence, with premium on-the-go streaming data for major platforms like Netflix, Hulu, and Disney+. This exclusive and differentiating partnership enables us to capture streaming viewership data for audiences on mobile devices outside connected TV, positioning us strongly as consumers take the flexibility to stream across devices.

Speaker Change: This partnership combined with our other major safety. The OEM relationship provides <unk> the ability to offer significant PVA, albeit switch extension for customers positioning us.

Speaker Change: Is the first call for both looking through and MTV and certainly advertising outcome.

Speaker Change: While the feeling that the upfront we partnered with feed logic in Q1 to bolster our TV. That's a solution CB intelligence with premium on the go.

Speaker Change: Training that all four major platforms like Netflix Hulu and discipline.

Speaker Change: Exclusive of differentiating partnerships enable us to capture a streaming viewership data for audiences on mobile devices outside connectivity positioning us strongly as consumers seek flexibility through straight across devices.

Ofer Druker: Advertisers are realizing more and more the importance of holistic audience insights across streaming platforms and devices to achieve optimal results. TV intelligence stands out as a strong differentiator for Nexen as it provides robust data across devices and formats, including mobile streaming, linear TV, and CVD. As a direct byproduct of Vida's global expansion, we recently started offering our TB intelligence solution outside the US to international customers. TV intelligence is an expensive data set that includes access to set-top box traditional television, ACR, on-the-go streaming, and cross-screen panel data, critical for customers' planning and advertising efforts across the streaming and TV landscape.

Speaker Change: Advertisers are realizing more and more the important populistic audience insights across three main platforms and devices to achieve optimal results.

Speaker Change: <unk> stands out as a strong differentiator for Nexsan as it provides robust data across devices and formats, including mobile streaming media television and CTV.

Speaker Change: As a direct byproduct of Ddos global expansion, we recently started offering our PV intelligence Seleucid outside the U S to international customers.

Speaker Change: Phebe intelligence using expensive benefit that includes access to set top box traditional TV ACL undergo dreaming and cross screen panel data critical for our customers planning and advertising efforts across the streaming MTV landscape.

Ofer Druker: Access to this robust data often results in our customers achieving greater ROI and efficiency as plans created through our planning tools can be seamlessly activated in campaigns through our DSP, a differentiator for us. Through TV intelligence, we can also provide powerful TV measurement solutions, such as tune-in, lift, reach, and frequency, cross-device attribution, and cross-platform measurement. In Q4 2023, we launched TV intelligence in the UK, which generated increased adoption during Q1 2024, and which we expect will help drive additional UK advertising budget to our platform for the remainder of 2024 and beyond.

Speaker Change: Access to these robust data often result in our customers achieving greater ROI and efficiency.

Speaker Change: Plans created through our planning tools can be seamlessly activated in campaigns through our DSP a differentiator for us.

Speaker Change: Through data intelligence, we can also provide powerful TV measurement solution such as <unk>.

Speaker Change: <unk>.

Speaker Change: Reach and frequency cross device attribution and cross platform measurement.

Speaker Change: In Q4, 2023, we launched CB intelligence in the UK, we generated increased adoption during Q1, 'twenty 'twenty, four and which we expect will help drive additional UK advertising budget to our platform for the remainder of 2020 for a deal.

Ofer Druker: Further, we recently launched TV Intelligence in Australia, which we believe will generate strong customer adoption and momentum this year and beyond. And we appreciate our offering from Australian customers, given our strong and growing reach in the market. We expect to launch data intelligence in additional major international markets later in 2024, including Canada.

Speaker Change: Further we recently launched DB intelligence in Australia, which we believe will generate strong customer adoption and momentum this year and beyond.

Speaker Change: And differentiate our offering from Australian customers, giving our strong and growing in the market.

Speaker Change: We expect to launch this intelligence in additional major international market later in 2024, including Canada.

Ofer Druker: Outside of international expansion, we are about to launch our ACR data segment with some recognizable initial parts. We are also in conversation with several other potential edtechs, agencies, brands, measurements, research, and data partners regarding the licensing of VDAS global ACR data and are optimistic based on initial demand. While we expand our CTV-OM relationship and streaming and TV data footprint, our partners at VIDA, the CTV operating system for iSense and other major smart TV brands, continue growing their global reach as well, further benefiting our investment and partners. Vida crossed a reach of over 25 million connected TVs near the end of 2023 and was the fastest growing major smart TV operating system globally in 2023 after growing shipment by 23%.

Speaker Change: Outside of international expansion.

Speaker Change: About to launch our ACL Thats a segment with some recognizable initial partners.

Speaker Change: Also in conversation with several had I've had multiple potential FX.

Speaker Change: <unk> brand measurements resets with Ebitdas of partners.

Speaker Change: <unk> the licensing of Ddos global ACL data.

Speaker Change: Optimistic based on initial demand.

Speaker Change: While we expand our CPD OEM relationship and streaming television data footprint.

Speaker Change: Our partners at Vida, the CTV operating system for license and other major CPG brands continued growing the global reach as well.

Speaker Change: Benefiting our investments and partnerships.

Speaker Change: The cost.

Speaker Change: Of our 25 million connected TV near the end of 2023.

Speaker Change: The fastest growing major smart TV operating system globally in 2023 after growing shipment 23%.

Ofer Druker: NextGen is invested in VEDA, and also importantly, as Global Asia Data Accessibility on VEDA's PowerTV to at least the end of 2020. This exclusivity is fueling strong global demand for our TV intelligence solution and significant demands for data licensing partners. SNEXEN is the sole source to access this desirable-scale smart TV data for targeting and measuring.

Speaker Change: <unk> invested in visa and also importantly, as global ACI that exclusivity on Ddos policy to at least the end of 2026.

Speaker Change: This exclusivity is fueling strong global demand for our TV intelligence solution and significant demands for data licensing partnership as Nexen is the sole source to access these desirable scale smart TV data for targeting and measurement.

Ofer Druker: We consider data to be the center and main engine of our platform and one of our key differentiators. Over the past few months, we have made tremendous progress further enhancing the strength, uniqueness, and usability of our data, culminating in the recent launch of Nexen Data Platform, which builds and expands upon our DNP, Nexen Discovery, and Thinking Intelligent Answers. The platform brings together data from multiple sources in a secure and privacy-compliant manner.

Speaker Change: We consider that to be the center and main engine with our platform and one of our key differentiator.

Speaker Change: Although the past few months, we have made tremendous progress further enhancing the strength uniqueness and usability of our data.

Speaker Change: Eliminating the recent launch of <unk> data platform, which builds and expands upon our BNP <unk> discovery MTGE intelligent assets.

Speaker Change: The platform brings together data from multiple sources.

Speaker Change: <unk> and privacy compliant manner.

Ofer Druker: Those sources include first-party data from Nexen clients, exclusive Nexen data assets, such as global ACR data from BIDA, and third-party data sources, including Nexen discoveries, which consolidate insights from web, social media, mobile, linear TV, and video. These combined data assets are extremely valuable for customers looking to efficiently and effectively onboard and enrich their own first-party data for better planning, more targeted campaigns, and expanded reach to then seriously activate in campaigns The ability to launch first-party data, enrich it, and activate it on our end-to-end platform is unique and is emerging as a major differentiator and attractant for brands and agencies to work closely with me.

Speaker Change: Those sources includes first party data for Mexican plants.

Speaker Change: <unk>.

Speaker Change: Assets, such as global ACR data from data tariff policies data sources, including Nexen discovery, which consolidates insights from web.

Speaker Change: Media mobile media television and digital.

Speaker Change: These combined data assets are extremely valuable for customers looking to efficiently and effectively onboard any reach their own first party data for better planning more targeted campaigns and expanded reach to them seamlessly activate in campaigns.

Speaker Change: The ability to launch first half is therefore innovations and activated on our end to end platform is unique.

And is emerging as a major differentiator and attractive.

Speaker Change: For brands and agencies to work closely with Maxim.

Ofer Druker: The launch of our data platform also positioned us to more effectively monetize our suite of data solutions through licensing, media networks, and reseller agreements. Each of these can drive incremental SAS revenue and exposure in areas of the market where we don't currently have a major presence, reflecting high-margin, long-term growth opportunities for our business. We are also incredibly excited to be launching our proprietary Hexen Unified Identity Graph solution, which will live within our data platform, serving as a centerpiece for us to help our customers combat impending changes in identity and privacy, particularly cookie duplication. The next 10 unified graphs will combine and de-duplicate multiple identifiers into a merged graph.

Speaker Change: The launch of our data platform also position us to more effectively monetize our suite of data solution to licensee media network and we sell it within each of these can drive incremental SaaS revenue and exposure in areas of the market, where we don't currently.

Speaker Change: As a major presence, reflecting margin long term growth opportunities for our business.

Speaker Change: We are also incredibly excited to be launching our proprietary excellent unified identity graph solution, which will leave with you is our data platform serving as the centerpiece for us to help our customers combat impending changes in identity and privacy, particularly.

Larry Cookie: Larry Cookie deprecation.

Speaker Change: The next day and unified Graff will combine and Deduplicate moot.

Speaker Change: <unk> identified.

Speaker Change: <unk> <unk> graph.

Ofer Druker: This will enable increased scale, frequency capping, and better targeting and attribution at the person and household level. We believe that the launch of our data platform and proprietary identity graph will further enhance our already strong ability to address identity and privacy changes, building on our advantages, operating an end-to-end platform, indexing heavily to CTV, and holding numerous data partners. Nexen's end-to-end structures prevent data leakage, and we possess access to large amounts of first-party data on both sides of the exchange.

Speaker Change: This will enable increased scale frequency capping and better targeting and distribution as a person and household level.

Speaker Change: We believe that the launch of our data platform and proprietary identity graph will further enhance our already strong ability to address identity and privacy changes.

Speaker Change: Building on our advantages operating and end to end platform indexing ethylene to CTV and all these numerous data partnership.

Speaker Change: <unk> end to end structure prevent data leakage and we possess access to large amounts of first party data on both sides of the ecosystem.

Ofer Druker: We also maintain robust contextual third-party data relationships and collaborate with the industry's major universal ID solutions. Additionally, we have significant exposure to CTV, a cookie-less environment, and minimal reliance on cookies as a percentage of our contribution, mitigating our overall risk related to cookie depression.

Speaker Change: We also maintain robust contextual their policies that are initiatives and collaborate with industry and major universal IV solution.

Speaker Change: Additionally, we have significant exposure to CTV, a cookie less environment and helium unrealized from kooky as a percentage of our contribution ex Tac mitigating our overall related to cookie deprecation.

Ofer Druker: For these combined reasons, we view cookie defecation and broader changes in identity and privacy not as a challenge but as a matter of utility to grow our business. As customers shift from buying media to buying against audiences. While navigating identity and privacy challenges, we are confident our data platforms offer the granular and flexible solutions needed to succeed. And we are very optimistic about the prospects of attracting new customers and driving increased spending based on initial demand.

Speaker Change: For this combined reasons, we view cookie deprecation and broader changes in identity and privacy, nor does the challenge, but theres a significant opportunity to grow share.

Speaker Change: As customers shift from buying media to buying against audiences while.

Speaker Change: While navigating the identity and privacy challenges, we are confident our data platform offer the groundwater and flexible solution needed to succeed and.

Speaker Change: And we are very optimistic for the prospects to attract new customers and drive increased spending based on initial demand.

Ofer Druker: All our work to strengthen our platform and improve our messaging and market position is starting to pay off. We are seeing evidence that we are better suited to win major multi-solution partnerships with some of the world's leading agencies, brands, TV media companies, and broadcasters. This is both a testament to the significant value we bring to customers and our improved ability to reach meaningful parts. Our enhanced ability to land and expand with some of the industry's key players is pivotal to our sales strategy, and is what we have been building towards for several years.

Speaker Change: Although.

Speaker Change: To strengthen our platform and improve our messaging and market position.

Speaker Change: Starting to fail, we are seeing evidence of being better suited to win major multi solution partnership with some of the worlds leading agencies brands CTV media companies and broadcasters.

Speaker Change: This is both a node with a significant value, we bring to customers and improve the ability to reach meaningful partners.

Speaker Change: Our enhanced ability to land and expand we followed the industry key players.

Speaker Change: Pivotal to our sales strategy.

Speaker Change: <unk> is what we have been building towards for several years.

Ofer Druker: We feel we are uniquely positioned to serve as a true strategic partner for both sides of our business. Our ability to offer flexible, advanced, self-service tech and data solutions through the convenience of one unified platform, coupled with our best-in-class service, Delta's Department.

Speaker Change: We feel we are uniquely positioned to serve as a true strategic partner for both sides of our industry.

Speaker Change: Our ability to offer flexible advance self service tech and data solutions through the convenience of one unified platform, coupled with our best in class service surplus deposits.

Ofer Druker: Our recent strategic partnership with Stagler is a testament to this and represents an important opportunity for next year. The fast-growing digital-first marketing company sits at the epicenter of typical agency expertise and technology. Nexen earned the privilege of enhancing their capabilities through enabling clients of the Stagwell Marketing Cloud to utilize Nexen's data platform, specifically our proprietary identity graph, in cooperation with Stagwell's clean room capabilities. This empowers segment customers to maximize campaign effectiveness with unified and comprehensive audience views across touchpoints and devices in a privacy-compliant manner, which can be accessed through Nexen's end-to-end platform, utilizing Nexen

Speaker Change: Our recent strategic partnership with <unk> is a testament to this and they represent an important opportunity for Maxim.

Speaker Change: Fast growing digital first marketing company.

Speaker Change: The epicentre of typical agency expertise and technology.

Speaker Change: Nexon and the privilege of enhancing their capabilities through enabling clients of the stacked well marketing cloud.

Speaker Change: Utilize nexen desktop platform, specifically, our proprietary identity graph incorporation with segment clean room capabilities.

Speaker Change: This empowers segment customers to maximize campaign effectiveness with unified and comprehensive audience views across touch points and devices in a privacy compliant manner.

Speaker Change: It can be accessed.

Speaker Change: Through excellent end to end platform.

Speaker Change: <unk> Nexsan DSP and SSP.

Ofer Druker: This partnership is expected to enhance TechWell Client's results and has the potential to yield significant contribution for next year. It also paves the way for similar future collaboration with other major industry players and opens additional doors with Tegwell and its customers. TINUITY, the largest independent full-funnel performance marketing agency in the U.S., has been a self-service DSP customer for over five years.

Speaker Change: This balance sheet is expected to remain stagnant clients results and has the potential to yield significant contribution expect for nexsan overtime.

Speaker Change: It also paves the way for similar future collaboration with other major industry players and open additional dose, we expect well any customer.

Speaker Change: Celerity allows us independent full funnel performance marketing agency in the U S.

Speaker Change: It's been a self service DSP customer for over five years.

Ofer Druker: Beginning with this point, This is a recent trend for other DSPs and SSPs to run campaigns through Nexen on both sides, leveraging the full benefits of transacting through our end-to-end platform. We believe after significantly reducing their budget with us in 2023 due to challenging market conditions, they are on a path to substantially increasing their 2024 budget and becoming one of our largest enterprise economies. In Q1, a major specialty retailer advertising customer expanded its relationship with Nexen beyond our enterprise DSP by selecting us as a preferred SSP partner.

Speaker Change: Beginning with this point.

Speaker Change: Yes.

Speaker Change: This has recently shifted spend for other DSP and SSP run campaigns through Nexsan on both sides leveraging the full benefits of transacting through our end to end platform.

Speaker Change: We believe also significantly reducing their budgets with us in 2023 through some challenging market conditions that we're on a path to substantially increasing their 2020 for budget and becoming one of our largest enterprise accounts.

Speaker Change: In Q1, a nasal specialty retailer advertising customer expanded its relationship with Mexico beyond our enterprise DSP selecting us as the preferred SSP partner this provider with cost and data benefits and enhanced efficiency, while driving significantly more contribute.

Ofer Druker: This provides cost and data benefits and enhanced efficiency, while driving significantly more contribution aspects to our platform. It also underscores our success in securing larger end-to-end deals and expanding our multi-solution customer base, which have been key focuses, is acquiring a mobile. Additionally, a leading alcoholic beverage company customer consolidated spending last year and now utilizes essentially every offering they can within our portfolio of solutions.

Speaker Change: <unk> expect to our platform.

Speaker Change: It also underscores our success in securing larger end to end deals and expanding our multi solution customer base, which have been key focuses.

Speaker Change: Since acquiring our model.

Speaker Change: Additionally, a leading alcoholic beverage company customers consolidate spend with us.

Speaker Change: And now utilize essentially every offering they can.

Speaker Change: Our portfolio of solutions, we expect these customers will invest more with us in 2020 full than they ever have.

Ofer Druker: We expect these customers will invest more with us in 2024 than they ever have, reflecting trust in our solution and service and improving market conditions. In Q1, we onboarded 88 new active spending first-time advertiser customers across various verticals like travel and transportation, food and beverage, finance, and government. This figure included the addition of seven new enterprise self-service advertising customers and two new independent agencies utilizing our self-service platform. We also have 54 new supply partners, including 47 in the U.S., across various formats and devices, including CTV, mobile app, gaming, display, and online video.

Speaker Change: Reflecting trust in our solution and service and improving market conditions.

In Q1, we on boarded 88, new actively spending first time advertiser customers across various verticals like travel and transportation food and beverage finance and government.

Speaker Change: Figures included the addition of seven new enterprise self service advertising customers and fewer new independent agencies utilizing our sales fair with platform.

Speaker Change: We also added 54, new supplier partners, including 47 in the U S across various formats and devices, including CTV mobile App and gaming display in Orlando.

Speaker Change: Additionally, <unk> ranked <unk> in the top five SSP.

Ofer Druker: Additionally, Pixelate ranks Nexen SSP in the top five SSPs across all major OEMs in the Q1 2024 Global CTV SSP Market Share Report. We were also honored to win a DigiDays content marketing award for the best interactive content. DG Day recognized Nexen Studios' groundbreaking interactive voice-to-action offering for the Troy-built Low, Slow, and Mo campaign.

Speaker Change: All major Oems.

Speaker Change: Q1, 2024 global <unk> market share report.

Speaker Change: We will also announce recently.

Speaker Change: A digitized content marketing award for the best Interactive quantities.

Speaker Change: <unk> de recognize Nexon studios, Ron Kruszewski interactive voice direction offering for Detroit, low slow and Mot campaign.

Ofer Druker: The first-of-its-kind voice-to-action offering was made possible through our partnership with Say It Now, and the campaign demonstrated significant uplift in awareness, ed recall, and message association across creative and targeting. These recent customer and partner wins and our increased industry recognition underscore the value of the strategic groundwork we laid in recent years, and I remain confident in our positioning to drive continued growth and execution. With that, I'm happy to turn the call over to Sagi to discuss our financial results and our... Thank you, Ofer.

The first of its kind voice to action.

Speaker Change: Offering was made possible through our partnership with safe now and the campaign demonstrated significant uplifts in awareness February call and Messes association across creative and targeting tactics.

Speaker Change: This recent customer and partner wins, and our increased industry recognition underscore the value of the strategic groundwork.

We've made in recent years and I remain confident in our positioning.

Speaker Change: <unk> continued growth and execution.

<unk>: With that I'm happy to turn the call to <unk> to discuss our financial results and outlook.

Sagi Niri: In Q1, we generated contribution x-tax of $69.7 million, reflecting 4% organic growth from Q1 2021. Programmatic revenue was $65.6 million, a Q1 record, increasing 5% from Q1 2023, and representing 88% of revenue, up from 87% in Q1 2023. Contribution exact from our non-programmatic business line was relatively flat in Q1 2024 versus Q1 2021. However, we achieved growth in our retail, finance, health, automotive, and government verticals in Q1 2024, as well as in display, mobile, audio, data products, and TMPs.

Speaker Change: Thank you Ofer in Q1, we generated contribution ex Tac of $69 $7 million, reflecting 4% organic growth from Q1 2023.

Ofer: Programmatic revenue was $65 $6 million a.

Ofer: Q1 record, increasing 5% from Q1, 2023, and representing 88% of revenue up from 87% in Q1 2023.

Ofer: Contribution of tax from our non programmatic business line was relatively flat in Q1 2024 versus Q1 2023.

Ofer: We achieved growth in our retail finance health automotive and government verticals in Q1, 2024 as well as in display mobile audio data product in PMT.

Sagi Niri: Contribution x-tax from display increased 49% in Q1 compared to Q1 2023, while contribution x-tax from mobile increased 16%, contribution x-tax from data products nearly doubled, and contribution x-tax from audio increased 88% in Q1 2024 compared to Q1 2021.

Ofer: Contribution ex Tac from display increased 49% in Q1 compared to Q1 2023, while contribution ex tax for mobile increased 16% contribution ex Tac from data products nearly doubled and contribution ex Tac from audio increased 88% in Q1 2024 comp.

Ofer: <unk> to Q1 2023.

Sagi Niri: We also expanded our self-service contribution expat program, a key focus, generating 23% growth from Q1 2020. Encouragingly, we achieved contribution X task growth in each consecutive month so far in 2024 and expect the trend to continue for at least a reminder of the future. On the opposite side, we observed weakness in our travel, technology, and education verticals and CTV in Q1, as customers continue to favor our lower-cost programmatic solution. Our largest, small, and mid-sized agency customers continue to spend cautiously in the first quarter, which is typical for Q1.

We also expanded our self service contribution ex Tac, our key focus generating 23% growth from Q1 2023.

Encouragingly, we achieved contribution ex Tac growth in each consecutive month, so far in 2024 and expect that trend to continue for at least the remainder of Q2.

Ofer: On the opposite side, we observed weakness in our travel technology and education vertical and CTV Q1, as customers continue to favor our lower cost programmatic solution.

Ofer: Our largest small and midsized agency customers continue to spend cautiously in the first quarter, which is typical for Q1 <unk>.

Sagi Niri: Many of our large customers, however, significantly increased their budgets in Q2 and have indicated they intend to accelerate ad spending later this year, given expectations for further market improvement and increased advertising demand around events like the 2024 U.S. election. As Ofer discussed, we also recently launched several new partnerships, which we are confident will aid in driving accelerated growth throughout the remainder of 2024, particularly in HIV. CTV revenue for Q1 2024 was $18.8 million, reflecting a decrease of 11% from Q1 2020.

Ofer: Many of our large customers however, as significantly increased budgets in Q2 and as indicated they intend to accelerate as pending later this year given expectations for favorable market improvement and increased advertising demand around events like the 2024 U S election.

Ofer: As already discussed we also recently launched several new partnerships, which we are confident will aid in driving accelerated growth throughout the remainder of 2024, particularly in <unk>.

CTV revenue for Q1, 2024 was $18 $8 million, reflecting a decrease of 11% from Q1 2023.

Sagi Niri: We believe CTV revenue weakness in Q1 and in prior quarters reflected a short-term transition by some of our customers into our lower-cost solutions like display and mobile video due to cost-saving efforts as well as the evolution of streaming preferences with audiences increasingly streaming content on mobile devices in addition to on-connected. While this transition impacted CTV revenue, we believe our platform's ability to flexibly provide a myriad of solutions across formats and devices is a tremendous strength and advantage that enables us to retain our customers and adapt to their diverse and evolving needs.

Ofer: We believe CTV revenue weakness in Q1 than in prior quarters reflected a short term transition by some of our customers into our lower cost solution like display and mobile video due to cost saving efforts as well as the evolution of screening preference share with audiences increasingly streaming content on mobile devices in it.

Ofer: Listen to on connected TV.

Ofer: While this transition impacted CTV revenue, we believe our platform's ability to flexibly provide a myriad of solutions across formats and devices is the tremendous strength and advantage, which enables us to retain our customers and adapt to the diverse and evolving needs.

Sagi Niri: Being able to accommodate customers across all major formats and devices allows us to serve a larger total addressable market and provide the flexibility needed by major agencies with diverse customer bases. That said, I'm pleased to report we're observing sequential CTV revenue growth to this point in Q2, compared to this point in Q1, and increasing momentum driven by an improving macro environment, as well as our partnership with Alfonso and LG starting to bear fruit.

Ofer: Being able to accommodate customers across all major formats and devices and allows us to serve a larger total addressable market and provide the flexibility needed for a major agencies with diverse customer basis.

Ofer: That said I'm pleased to report we were observing sequential CTV revenue growth to this point in Q2 compared to this point in Q1, and increasing momentum driven by an improving macro environment as well as our partnership with alfonzo in LG starting to bear fruit.

Ofer: We believe as market conditions continue to improve that just expand and our partnership with LG continues to ramp up customers will increasingly migrate towards our programmatic CTV solution and we expect CTV revenue growth will further accelerate in H two 2024.

Sagi Niri: We believe as market conditions continue to improve, budgets expand, and our partnership with LG continues to ramp up, customers will increasingly migrate towards our programmatic CTV solution, and we expect CTV revenue growth will further accelerate in H2 2021. We strongly believe in our long-term positioning within CTV, given our heavy indexing, as evidenced by CTV representing 29% of our programmatic revenue in Q1 2020. We are confident that as conditions continue to improve, new major advertisers migrate to CTV, and linear dollars shift more aggressively to streaming, that CTV pricing dynamics will improve, and demand will further increase.

We strongly believe in our long term positioning within CTV, given our heavy indexing as evidenced by CTV, representing 29% of our programmatic revenue in Q1 2024.

Ofer: We are confident as conditions continue to improve new major advertisers migrate to CTV and linear dollar shift more aggressively to streaming the CTV pricing dynamics, we improve and demand will further increase.

Sagi Niri: We feel we are strongly and uniquely positioned through our numerous CTV partnerships and appreciated solutions such as TV intelligence and global ACR data exclusivity with IDA to capitalize on a growing long-term opportunity within CTV and to achieve outside share gains. Video revenue continues to account for most of our programmatic revenue at 66% in Q1 2024. Although this percentage fell year-over-year, we believe it continues to remain well above the industry average. The year-over-year decrease in Q1 was driven by a combination of increased demand for programmatic display solutions, a decline in CTV revenue, and an increase in programmatic. As demand for our premium CTV solution accelerates, as we expect, we believe the shift with display we've seen in recent quarters will reverse.

Ofer: We feel we are strongly and uniquely positioned through our numerous CTV partnerships and differentiated solutions, such as TV intelligent and global ACR that exclusivity with Vida to capitalize on a growing long term opportunity within CTV and to achieve outsized share gains.

Ofer: Video revenue continue to account for most of our programmatic revenue at 66% in Q1 2024.

Ofer: Although this percentage point year over year, we believe it continues to remain well above the industry average.

Ofer: The year over year decrease in Q1 was driven by a combination of increased demand for programmatic display solution, a declining CCP revenue and an increase in programmatic revenue.

Ofer: As demand for our premium CTV solution accelerates.

Ofer: As we expect we believe the shift towards display we've seen in recent quarters will reverse and when this happens we expect to achieve outsized video revenue growth because of our exposure to and positioning and capabilities within video.

Sagi Niri: And when this happens, we expect to achieve outside video revenue growth because of our high exposure to and positioning and capabilities within video. In Q1 2024, we generated $11.9 million of adjusted EBITDA, reflecting a 34% increase from Q1 2020. As we generate a higher level of contribution as tax, the majority will translate to adjusted EBITDA, given our end-to-end operating model, which provides a strong and increasing degree of operating leverage, which is why we are confident in our ability to expand our adjusted EBITDA margins over time.

Ofer: In Q1, 2024, we generated $11 $9 million of adjusted EBITDA, reflecting a 34% increase from Q1 2023.

Ofer: As we generate higher level of contribution ex Tac. The majority will translate to adjusted EBITDA given our end to end operating model, which provides strong an increasing degree of operating leverage which is why we are confident in our ability to expand our adjusted EBITDA margins over time.

Sagi Niri: In Q1 2024, we generated an adjusted EBITDA margin of 16% on a revenue basis and 17% on a contribution ex-tax basis, compared to 12% on a revenue basis and 13% on a contribution ex-tax basis in Q1 2024. In Q1, we generated $37.7 million in net cash from operating activities, after using $7.9 million in Q1 2023, and as of March 31st, we had We also reported non-IFRS diluted earnings per ordinary share of $0.01 compared to a $0.03 loss in Q1 2021.

Ofer: In Q1, 2024, we generated an adjusted EBITDA margin of 16% on a revenue basis and 17% on a contribution ex Tac basis compared to 12% on a revenue basis and 13% on a contribution ex Tac basis in Q1 2023.

Ofer: In Q1, we generated 37 $7 million net cash from operating activities. After using $7 9 million in Q1 2023 and as of March 31, we had $144 $9 million in net cash.

Ofer: We also reported non FRS diluted earnings per ordinary share of <unk>.

Ofer: Compared to a <unk> <unk> loss in Q1 2023.

Sagi Niri: In April, we repaid the outstanding $100 million balance on our credit agreement. As a result, we are now debt-free and have $90 million undrawn on our resolving credit facility, up from $80 million, which we continue to have at our disposal. Repaying our debt will lower our interest expense in 2024 and beyond, strengthen our balance sheet, and provide greater flexibility for strategic investment and initialization. We have no plans for major near-term acquisitions and will prioritize capital allocations towards share repurchases, investment in internal growth and innovation initiatives, and ongoing business needs. During Q1, we repurchased roughly 6.2 million ordinary shares, reflecting an investment of approximately 12.7 million pounds, or $16.1 million.

Ofer: In April.

Speaker Change: We repaid the outstanding $100 million balance on our credit agreement.

Speaker Change: As a result, we are now debt free and have $90 million undrawn on our revolving credit facility up from $80 million, which we continue to have at our disposal.

Speaker Change: Repaying our debt will lower our interest expense in 2024 and beyond strengthening our balance sheet and provide greater flexibility for strategic investments and initiatives.

Speaker Change: We have no plans for major near term acquisition, and we will prioritize capital allocation towards share repurchases investments in internal growth and innovation initiative and ongoing business needs.

Speaker Change: During Q1, we repurchased roughly $6 2 million ordinary shares, reflecting an investment of approximately $12 7 million pounds or $16 1 million.

Speaker Change: We also recently completed our $20 million ordinary share repurchase program in which we purchased a total of approximately $7 6 million ordinary shares.

Sagi Niri: We also recently completed our $20 million Ordinary Share Repurchase Program, in which we purchased a total of approximately 7.6 million ordinary shares. On May 7th, we launched our new $50 million Ordinary Share Repurchase Program, which will run until November 1st or until complete. Assuming we complete the program, we will have invested approximately $165 million in our share repurchase program from March 1st, 2022 through November 1st, 2024, underscoring our commitment to shareholders. From March 1st, 2022 through April 25th, 2024, we repurchased approximately 27.1 million ordinary shares, or 17.5% of shares outstanding.

Speaker Change: On May seven we launched our new $50 million ordinary share repurchase program, which will run until November 1st ore until completed.

Speaker Change: Assuming we complete the program, we will have invested approximately $165 million in our share repurchase program for <unk> 2022 through November one 2024, underscoring our commitment to shareholders.

Speaker Change: Ramesh first 2022 through April 25, 2024, we repurchased approximately $27 1 million ordinary shares or 17, 5% of shares outstanding.

Sagi Niri: If shares remain at levels the board believes continue to reflect discounted valuation levels and the company remains cash-generative, we will consider launching additional share repurchase programs even after completing the currency. Finally, I now turn to our audience. For full year 2024, we reaffirm our prior guidance for contribution x-tax in a range of approximately $340 to $345 million, adjusted EBITDA of approximately $100 million, and for programmatic revenue to reflect approximately 90% of full year 2024 revenue.

Speaker Change: If shares remain at level. The board believed continued to reflect discounted valuation level and the company remains cash generative, we will consider launching an additional share repurchase program. Even after completing the current program.

Speaker Change: Finally, I'll now turn to our outlook.

Speaker Change: For full year 2024, we reaffirm our prior guidance for contribution ex Tac in the range of approximately $340 million to $345 million adjusted EBITDA of approximately $100 million.

Speaker Change: And for our programmatic revenue to reflect approximately 90% of full year 2020 for revenue.

Sagi Niri: We also continue to anticipate data licensing, audio, and CTV revenue growth in 2024 compared to 2023 and believe our adjusted EBITDA and adjusted EBITDA margin for full year 2024 will be higher than full year 2023, with growth expected to accelerate on this aforementioned front in April. While some of our largest customers spend cautiously in Q1, we're seeing indications that budgets will likely increase throughout the remainder of 2024, particularly in H2 around the U.S. election, which we believe will garner increased ad spending in Q3 and Q4.

Speaker Change: We also continue to anticipate data licensing audio and CCP revenue growth in 2024 compared to 2023 and believe our adjusted EBITDA and adjusted EBITDA margin in full year 2024 will be higher than full year 2023 with growth expected to accelerate on this aforementioned fronts.

Speaker Change: In H two.

Speaker Change: While some of our largest customers 10 cautiously in Q1, we've seen indication budget will likely increase throughout the remainder of 2024, particularly in <unk> around the U S election, which we believe will garner increased AD spending in Q3 and Q4.

Sagi Niri: We also have increased confidence in our guidance following our recent partnership with. Partnerships like STEDWELL and LG are in their early days, and while they are contributing to contribution expat in Q2, they will take time to scale and start contributing more significantly after the results. While it will take time to ramp up, these partnerships, in addition to the others we've mentioned on today's call, reinforce our confidence in our growth prospects for H2 2024 and beyond and put us in an excellent position to drive sustainable growth and extended profitability.

Speaker Change: We also have increased confidence in our guidance following our recent partnership with <unk>.

Speaker Change: Partnerships like February and energy are in early days and while they are contributing to contribution ex back in Q2, it will take time to scale and stock more significantly.

Speaker Change: Charles.

Speaker Change: Why is it will take time to ramp up these partnerships. In addition to the average that we've mentioned on today's call reinforce our confidence in our growth prospects for <unk> through 2024, and beyond and put us in an excellent position to drive sustainable growth and expanded profitability.

Sagi Niri: Our debt-free balance sheet, robust operating model, and cash-generating abilities also enable the flexibility to invest aggressively in innovation and share repurchases to drive value for our customers and shareholders. These combined factors are a recipe for success, and I believe our future looks bright. With my remarks completed, I'll turn the call back over to Ofer. Thank you, Sagi.

Speaker Change: Our debt free balance sheet robust operating model and cash generating abilities also enabled the flexibility to invest aggressively in innovation and share repurchases to drive value for our customers and shareholders.

These combined factors a recipe for success and I believe our future looks bright.

Speaker Change: In my remarks completed I will turn the call back over to offer.

Ofer Druker: In 2023, we focus on integration, platform investment, and rebranding to enhance our standing with the industry's major players and work towards realizing our vision of becoming one of the world's leading strategic ethics partners. 2024 is shaping up to be the year our vision starts becoming a reality. We have built on our 2023 foundation by growing our TV and data capabilities, offering the same relationship, and lending important new and expanded partners. Customers like Stagwell and Tenuity have realized the benefit of partnering and consolidating spend with a comprehensive platform that can help their clients accomplish their holistic goals.

Sandy: Thank you Sandy in 2023, we focused on integration platform investments and rebranding to enhance our standing with the industry's major players and work towards realizing our vision of becoming one of the world's leading strategic ethic partner.

Speaker Change: Well he plentiful is shaping up to be the EU, our vision starts becoming a reality.

Speaker Change: We have built on our 2023 foundation by growing our CV and data capabilities offerings, assembling initiatives and lending important new and expanded partnerships.

Speaker Change: Customers like stack well into annuity I realize the benefits of partnering and consolidate spend with a comprehensive platform.

Speaker Change: Can help their clients accomplish the early signals.

Ofer Druker: The quality and standing of the leading brands and agencies that are seeking not only to partner with Netflix but to highlight those partnerships paints a clear picture that our capabilities, strategy, and expertise are ready to help us win market share and drive the future. I'm even more excited about our future after hosting our first annual Nexen Connection event at the end of April in Nashville.

Speaker Change: The quality and standing of the leading brands and agencies.

Speaker Change: Seeking not only to partner with excellence, but to highlight those partnership paints.

Speaker Change: The clear picture that our capabilities strategy and expertise already to help us with market share and drive future growth.

Speaker Change: I'm, even more excited about our future following our first annual Nexsan connection events when you're all set at the end of airframe internationally.

Ofer Druker: We invested in bringing our commercial teams together from around the world to foster a stronger and more unified culture, encourage strategic collaboration, further develop our sales team, and hear valuable insights from our customers on what they look for in partners and why they love working with them. It was incredibly apparent that we were dealing with them. Even against industry giants, thanks to our ability to serve as a genuine strategic partner and advisor through strong relationships built on trust and transparency.

Speaker Change: We invested in bringing our commercial teams together from around the world to foster a stronger and more unified culture.

Speaker Change: Paris strategic collaboration.

Speaker Change: Those develop our sales team and valuable insights from our customers on what they look for partners and why they love working with Maxim.

Speaker Change: It was incredibly occurrence, we are winning with them.

Speaker Change: You then against industry Giants, thanks to our ability to serve as a genuine strategic partner and adviser through strong relationship built on trust and transparency.

Ofer Druker: Underpinning our strong relationship is also the ability to deliver superior tech and data products seamlessly across the value chain through the convenience of a unified platform that offers a wide range of flexible solutions that effectively address our customers' diverse needs and challenges and boost their efficiency and return. After reading this feedback and seeing the benefits of our teams coming together, I'm confident we have built something really special that is ready to serve the evolving needs of the industry, and I'm very proud of the work our teams have put in. Our sales team remains focused on growing our end-to-end and self-service enterprise customer structure. Building new and deeper relationships with industry leaders and pursuing additional data platform partnership opportunities

Speaker Change: Underpinning our strong relationship is also the ability to deliver superior tech and data products.

Speaker Change: Mostly across the value chain through the convenience of a unified platform that offers a wide range of flexible solution that effectively address our customers' diverse needs and challenges.

Speaker Change: And booster efficiency evolution.

Speaker Change: I will tell you this feedback and seeing the benefits of our teams coming together.

Speaker Change: I'm confident we have built something really special.

Speaker Change: Ready to serve the evolving needs of the industry and I'm very proud of the warehousing of cooking.

Speaker Change: Our sales team remains focused on growing go end to end and self service enterprise customer roster.

Speaker Change: Building, new and deeper relationship with industry leaders in pursuing additional desktop platform partnership opportunities.

Ofer Druker: We are seeing strong demand and momentum in the pipeline for all aforementioned funds, as well as new partnership opportunities, and have optimism based on current visibility that spending by our major customers will increase throughout 2024, particularly in Asia. We remain confident in our strategy and long-term positioning and believe we are in a great spot to continue attracting new partners, increasing spending, and product adoption with existing customers, and achieving outsized long-term growth and expanded profitability.

Speaker Change: We are seeing strong demand and momentum in the pipeline on I'll also mention floods as well as new partnership opportunities and there's optimism based on current visibility the spending by our major customers with increased throughout 2020 for particular in H two.

Speaker Change: We remain confident in our strategy and long term positioning and believe we are in a great spot to continue attracting new partners.

Speaker Change: Leasing spending and product adoption with existing customers and achieving outsized long term growth and expanded profitability.

Ofer Druker: Our people and products have never been more connected, unified, and poised to help our customers win, and I'm excited for the opportunities that lie ahead. Operators, we will now take your calls. Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. If you are called upon to ask your question and are listening via the loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question.

Speaker Change: Our people and products <unk> being more connected unified and poised to help our customers and I'm excited for the opportunities that lie.

Speaker Change: Operator, we will now take questions.

Speaker Change: Thank you we will now begin the question and answer session. If you have dialed in and I would like to ask a question. Please press star one on your telephone keypad journeys johanning join the queue. If you would like to withdraw your question simply press Star. One again, if you are called upon to ask your question in a listening.

Speaker Change: Via loud speakers please.

Speaker Change: Please pickup your handset and ensure that your phone is not on mute when asking your question.

Matthew John Swanson: Again, press star 1 to join the queue, and your first question comes from the line of Matthew Condon with Citizens JMP Police. Go ahead. Thank you for taking my question. Maybe my first one is just on after following a nice one-cue, especially I think you guys came in above expectations on contribution x tech. But that wasn't followed through on the full year guidance.

Speaker Change: Press Star one to join the queue and your first question comes from the line of Matthew Condon with citizens JMP. Please go ahead.

Ofer Druker: And it seems like you guys are having increased confidence in the back half of the year with an improving macro and some of those partnerships coming in. So can you just talk about, you know, what are the puts and takes as far as guidance and maybe why aren't you raising? [inaudible] Of course, I will take this answer. I think that, as I mentioned in the earnings message, we have worked very hard in the past few years in order to connect and build, acquire, and connect all these companies and technologies together.

Matthew John Swanson: Thank you for taking my question, maybe my first one is just on after following a nice <unk>, especially thanks.

Speaker Change: You guys came in above expectations on contribution ex Tac.

Speaker Change: But that wasn't followed through to the full year guidance and it seems like you guys are having increased confidence in the back half of the year with an improving macro and some of those partnerships coming in so can you just talk about.

Speaker Change: What are the puts and takes as far as guidance and maybe why aren't you raising it from here.

Speaker Change: Hi, Matt.

Speaker Change: Of course, I will take this answer.

Speaker Change: I think that the.

Speaker Change: As I mentioned also in the early days.

The message we were.

Speaker Change: Whereas in the past few years in order to connect and build acquire and connect all these companies and technologies together and it's coming through flotation and last year, but mostly this year also with the rebranding taking taking place.

Ofer Druker: And it's come into flotation last year, but mostly this year, also with the rebranding taking place and fulfilling also the packaging of all the technology into one platform that we are very proud of. And all these agreements and partnerships that we mentioned, which are really impressive, they will affect us in the mid and long term as evidence of the strong technology and product that we built. So, it's hard to evaluate and say, you know, what the forecast will be immediately because it's a very heavy partnership, but we believe that they will contribute meaningfully in the mid and long term.

Speaker Change: Fulfilling also the packaging before the technology into one platform that we are very proud of and all the agreements at both machine that we that we mentioned which are really impressive.

Speaker Change: Will affect us in the in the mid and long term.

Speaker Change: Evidence for the strong technology and product that will build.

So.

Speaker Change: It's also evaluate and say you know.

Speaker Change: What would be the forecast immediately because it's a it's very abbvie partnership, but we believe that they will contribute.

Speaker Change: Contribute meaningfully in the mid and long term and that's why we feel very secure.

Ofer Druker: And that's why we feel very secure in order to reaffirm our results. And we feel that we have a lot of opportunities in the future to grow our business in a very substantial way. Great, thank you. And then, maybe, just a follow-up.

Speaker Change: Order to reaffirm our results and we feel that we have a lot of opportunities in the future to grow our business in a very substantial way.

Speaker Change: Okay.

Ofer Druker: Can you just talk about what the opportunity is around the Nexen data platform? Maybe just how do you expect this to impact you financially over the next few years? Thank you so much.

Speaker Change: Great. Thank you and then maybe just a follow up can you just talk about what the opportunity is around the <unk> data platform, maybe just how do you expect this to impact financials over the next few years. Thank you so much.

Ofer Druker: The data management platform has two major advantages. One of them is, of course, we made it ready for the cookie deprecation that was delayed but was supposed to happen this year. So we took all the measures in order to be ready in time, and we built in our data management platform also our ID graph that is also integrating and connected to a lot of industry ID graphs that are there. And it's basically enabling us to get a much more comprehensive picture and match rate when we are looking at the audiences in order to support the ability to basically deal with cookie duplication.

Speaker Change: The data management platform is today through May Joel.

Speaker Change: Yeah.

Advantages one of them is of course, we made it waiting for the cookie deprecation that was delayed but was supposed to happen. This year. So we took all the measures in order to be ready in time, and we built in the <unk>.

<unk> platform also I'd graph.

Speaker Change: <unk> also.

Speaker Change: Integrating and connected to a lot of it.

Speaker Change: A lot of industry.

Speaker Change: Ivy graph.

Speaker Change: There and its basically enabling us to get there.

It must comparative picture and match rates when we are looking at the at audiences in order to support the ability to basically to.

Ofer Druker: That's, of course, apart from the fact that about 30% of our business is CTV that is not right now cookie-based, which is also helping us. And the fact that we are an end-to-end solution means that we have data from both sides that is also lowering our risk of cookie duplication. But we didn't want to take any risks, and we launched this program on time in order to be ready for the Google cookie duplication. That's one point.

Speaker Change: Deal with Cookie deprecation.

Speaker Change: Of course, a part of the factor.

30% of our business with Citigroup.

Speaker Change: Nor a cookie.

Speaker Change: Which is also helping US is the fact that we are end to end solution means that we have data from both sides that is also lowering our risk from the cookie deprecation, but we didn't want to take any risks and we launched this program on time in order to be ready for the Google display.

Speaker Change: Cookie deprecation, that's one point.

Ofer Druker: The second one is about data enrichment. This has been a massive thing for us over the last couple of years. And we believe that data is basically the source or the glue that is connecting all these elements that we basically put together. So the DSP, the edge servers, the SSP, we placed a very strong layer of data around that. And we have a lot of exclusive and unique databases that we basically signed a partnership with. We just announced PeerLogic. But before that, we had very strong ACR data, which shows the importance of this type of data. And I can elaborate if you want.

Speaker Change: And the second one is about the other engagements.

Speaker Change: This is a massive thing for us for the last couple of years and we believe that the data is basically the source or the glue. The disconnecting. All these elements that we basically put together both a DSP that service the SSP.

Speaker Change: Very strong layer of data around that.

Speaker Change: And we have a lot of exclusive and unique.

Speaker Change: That's the basis that we basically signed partnership which we just announced of a peer logic, but we saw that we had a very strong ACL, which we see the importance of this type of that then I can elaborate if you want.

Ofer Druker: But in general, what we are adding to this platform is the ability for clients, for even publishers and advertisers, to launch their first-party data on the platform and basically enrich it with our other data in order to give the clients more insights and more capabilities, abilities to target their audiences in a very smart manner in the places and the context that they want. And this is a lot about the partnership that we signed with Stagwell, which we believe that they will be able to bring a lot of their clients to us and will also bring a lot of value to their clients through this partnership, because it's a meaningful way, basically, to enhance your capabilities, to target, to measure, and to learn insights about your customers.

Speaker Change: But in general what we are adding through this platform is the ability for pork lines for <unk>.

Speaker Change: Publishers and advertisers.

Speaker Change: To launch there to launch their first party data on the platform.

Speaker Change: Basically enrich it with all of you about the other about them in order to give the clients moly insights with more capabilities ability to target their audiences in a very smooth manner in the places in the context of their wounds.

Speaker Change: This is a lot about also the partnership that we signed with <unk> that we believe that there will be able to bring to us a lot of their clients and we will make also bring a lot of value to their clients to this day.

Speaker Change: This year, because it's a meaningful it's a meaningful way basically to enhance your capabilities to target to measure and to learn insights about your customers.

Ofer Druker: So if I'm summarizing, I'm looking at it on our data management platform in two areas. One of them is the cookie duplication that I mentioned, which is helping us to resolve and to check, to deal with this challenge, which we look at currently as an opportunity, by the way, as I mentioned, because of our structure, because of our ID graph that is already launched, and because of the fact that a lot of, or a big portion of our revenue is going to a place that is without cookies or not dependent on them. The second side is revenue, and data enrichment. We believe that this is the future. Basically, people want to buy audiences. They are not looking to buy media.

Speaker Change: So we found summarizing I'm looking at that on our.

Speaker Change: Our medical platform in two areas one of them is the cookie deprecation that I mentioned, which is helping us to resolve.

Speaker Change: To deal with this challenge, which we look at that currently has that opportunity by the way as I mentioned because of our structure because of the.

Speaker Change: IV graft that is already the allowance because of the fact that local scale.

Speaker Change: Big portion of our revenues growing to us to a place that is without <unk> not dependent.

Speaker Change: The second side is revenue.

Speaker Change: The enrichment, but we believe that this is the future basically people wants to buy audiences.

Speaker Change: We're not looking to buy media and we are able we are enabled them to learn much more about their clients multiple here about the audiences.

Ofer Druker: And we are able, we are enabling them to learn much more about their clients, much more about their audiences, and to be able to reach them in a very smart and efficient manner on many, many more touch points than they go to today. So these are the two elements that we have. Great, thank you so much.

Speaker Change: To be able to reach them in very smooth and efficient manner.

Speaker Change: Many many more touch points that they go today. So these are the two elements that took place.

Speaker Change: Great. Thank you so much.

Speaker Change: Youre welcome.

Ofer Druker: You're welcome. Your next question comes from the line of Matthew Swanson with RBC Capital Markets; please go ahead. Yeah, thank you so much for taking my question. I think maybe following up on the last question and focusing on the SMB softness within the CTV space, when we're thinking about kind of what leads to that improvement, like we're seeing in Q2, is it focused on macro and budgets expanding? Is it volume getting? Yeah, I'm so sorry. Yeah, I'm at an airport.

Speaker Change: Your next question comes from the line of Matthew Swanson with RBC capital markets. Please go ahead.

Matthew John Swanson: Yeah. Thank you so much for taking my question.

Speaker Change: I think maybe following up on the last question and focusing on the SMB softness within the CTV space.

Speaker Change: When we're thinking about kind of what leads to that improvement like we're seeing in Q2, I mean is it.

Speaker Change: Focused on macro and budgets expanding is it volume.

Speaker Change: Because I'm so sorry.

Speaker Change: And then on the airport.

Speaker Change: Okay.

Matthew John Swanson: Yeah, I'll ask the question in a quicker version. The S&B CTV budget is increasing. Are you focused on, you know, volume, bringing CPMs down, or something more along the Nexen data platform, being able to kind of enhance the ROI of that value proposition? So we just launched this platform. First of all, we are making an effort on all fronts of the CTV. And I think that we have made a lot of achievements in the past few months in the MQ-1, as we mentioned.

Speaker Change: Yes.

Speaker Change: I'll ask the question that quicker version, the SMB CTV budgets increasing.

Speaker Change: Or are you focused on volume variance CPM is down or something more along the next and data platform being able to kind of enhance the rois that value proposition.

Speaker Change: Okay.

We just launched this.

Paul: Paul first of all where we are.

Speaker Change: Making and therefore, it on all fronts of the CTV and I think that we made the local for local.

Matthew John Swanson: One of them, of course, is resolving the issue with LG, which enabled us to work very closely with one of the leaders of this industry on the OEM of the CTV. The second one, of course, is the agreement that we signed with Roku that enhances our capability to monetize their media. The third one is the strong partnership with ECL and the exclusive management of native media. Basically, that is giving us, basically, today, since we already have a strong relationship with Samsung and, of course, Vida, and iSense, to basically be able to offer our clients a very wide reach of OEMs that we can basically monetize for them and run campaigns.

Speaker Change: Achievements in the past few months the in Q1 as we mentioned one of them of course is resolving the issue with FCA, which enable us to work very closely with one of the leaders of this industry.

Speaker Change: OEM or specifically.

Speaker Change: The second one of course is the agreement that we signed.

Speaker Change: With roku that demand.

Speaker Change: Ability to monetize that media the third one is the the.

Speaker Change: A strong partnership with Tcl and exclusive managing their innovative native media basically that is giving us basically today since we have already strong relationship with Samsung. We are of course Veeva <unk> is to basically be able to offer our clients like very wide reach beforehand. This weekend basically monetized.

Speaker Change: For them in one campaign.

Matthew John Swanson: We believe that the data platform will be nested because basically what we are going to do now is we are going to work very closely with our city department, to upload some of their data into our platform in order to be able to enrich it and to offer clients to buy much more precise audiences that they want to buy on our CTV platform in different rates, meaning, of course, political will be probably much higher than the rest because of its nature, but we are now ready for a lot of activities that we will be able to basically also manage and use our data management platform and enrichment platform in order to reinforce the value of the CTV that we can bring to our clients. I hope that I was clear, if I understood your question correctly. Yeah, you did.

Speaker Change: We believe that the data platform witnessed it because basically what we are going to do now because we are going to work very closely with our partners.

Speaker Change: Upload some of their data into our platform in order to be able to enrich it has to offer.

Speaker Change: Lines to buy much more pressed.

Speaker Change: Precise audiences that they want to buy one of our strategic platform in different rates, meaning of course political will be probably much higher than the rest because of its nature, but we are now ready for a lot of the activities that we will be able to basically also manage and use.

Speaker Change: Data management platform and it Richard platform in order to.

Speaker Change: Reinforce the value of the CTV that we can bring to clients.

Speaker Change: I will sleep, if I understood your question correctly.

Ofer Druker: And I'll try to get this off quick before the announcer goes again. But Sagi, you got a lot of interesting things going on in the second half. If we think about, you know, Next and Discovery positioning you better for politics this year, we've obviously spent a lot of time on all the partnerships and the ramping contribution potentially from the VITA data. Can you just talk a little bit about how you're kind of thinking about all these things, as well as kind of a stabilizing macro when you're thinking about guidance? Yes, of course. So, Ofer, do you want to take it? Sorry?

Speaker Change: Yes, you did.

Speaker Change: And then I'll try to get this off quite before they announced it goes again.

Speaker Change: <unk> got a lot of interesting things going on in the second half if we think about Nexen discovery position you better for political this year. We've obviously spent a lot of time on all of the partnerships and the ramping contribution potentially from the better data.

Speaker Change: Can you just talk a little bit about how you're kind of thinking about all of these things as well as kind of a stabilizing macro when you're thinking about guidance, yes of course.

Speaker Change: So no.

Speaker Change: Hopefully able to ticket.

Sagi Niri: I'll answer Matt. Yeah, I'll answer Matt. So, Matt, I think it's Ofer mentioned, you know, it's, probably you know our numbers and the guidance going forward is a combination of both you know some better macro and less headwinds I don't want to say a lot of tailwinds because I'm trying to be cautious and I'm not sure that we are full steam ahead and second of course you know all the different initiatives and, I think that all the things that Ofer mentioned, you know, some of them are big partnerships, which will take time in order to scale up.

Speaker Change: Alright.

Speaker Change: Yes, I'll answer that so mark I think as aforementioned.

Speaker Change: Probably our numbers in the guidance going forward is a combination of both.

Speaker Change: Some better macro and less headwind I don't want to say a lot of tailwind because I'm trying to be cautious.

Speaker Change: And I'm not sure that we're full steam ahead and second of course.

Speaker Change: The different initiative and.

Speaker Change: Agreements and cooperation that is.

Speaker Change: Taking our products to a better offering and that their ROI.

Speaker Change: For our customers and of course for our publishers so.

Speaker Change: I think that all the things that <unk> mentioned.

Speaker Change: Some of them are big partnership, which will take time in order to scale up.

Sagi Niri: Of course, we are, you know, needing to do the API, the testing, and then it's scaling cautiously during 2024, and hopefully much more scaled into 2025. I think that our guidance is, like any other guidance within our industry, which is somewhere around 45 percent of the revenue will come in the first half, and 55 percent will come in the second half.

Speaker Change: Of course, we are you know needing to do the API of the testing and scaling.

Speaker Change: Shortly during 2024 and hopefully much scaled into 2025, I think that our guidance is as any offer guidance within our industry, which is somewhere around 45% of the revenue will come in the first half and 55% will come the second half.

Sagi Niri: So for now, we feel very strong about our guidance, and if we see that things are going better than we are expecting, we will, you know, change our guidance going forward, but that's not the case right now, but we're still confident in our ability to deliver the current guidance.

Speaker Change: So for now we feel very strong with our guidance and if we will see you now that things are going better than we all expected.

Speaker Change: Great we will.

Speaker Change: Change our guidance going forward, but it's not the case right now and but we're still confident in our ability to deliver the current guidance.

Speaker Change: Thank you.

Speaker Change: I agree I just needed to add one while the mall centers, maybe Matt that is related to the quality of our products.

Ofer Druker: I just want to add one more sentence, Matt, that is related to the quality of our product. I think that one of our challenges was that we had a lot of great products, some of them we acquired, some of them we built, some of them we created after we basically connected the products. Well, after a long time of basically working very closely with our product marketing, product marketing teams, and of course, the people on the ground, we now know that we have basically created a very strong, very strong suite of services and products that we are now delivering to the market.

Speaker Change: I think that one of our challenges was that we have a lot of great product some of them. We acquired some of them. We built some of them. We created after we basically connected products but.

Speaker Change: So after a long time of basically working very closely with our product marketing product marketing teams and of course there.

Speaker Change: The people on the ground, we now know.

Speaker Change: That we basically created a very strong very strong suite of services and products that we are now delivering to the market.

Ofer Druker: It took us time because it's very complicated and you need to build it right, but I think that with the tools and the technology and the product stack that we have now, we are seeing a lot of wins on so many fronts, and we believe that it will help us to grow our revenues and stability in the future, and that's what we are aiming for. Thank you. Your next question comes from the line Laura Martin with Needham. Please go ahead.

Speaker Change: It took aside because it's very complicated.

Speaker Change: That's right, but the thing that's great too.

Speaker Change: Tools the technology of the product set that we've got now we are seeing a lot of we've sort of made in France.

Speaker Change: Believe that it will it will help us to grow revenues and stability in the future and Thats what we.

Speaker Change: Got it.

Speaker Change: Thank you.

Speaker Change: Your next question comes from the line of Laura Martin with Needham. Please go ahead.

Laura Anne Martin: Good morning. My first question is for Sagi. The revenue went up 4%, and cost of revenues went down 10%. Usually, those move in the same direction. Can you tell us what the decoupling is that is allowing the cost of revenue to fall at the same time as revenue is growing, Sagi?

Speaker Change: Good morning.

Laura Anne Martin: My first answer side.

Speaker Change: Revenue went up 4% and cost of revenues went down.

Laura Anne Martin: 10%, usually those moving the same direction can you tell us what is decoupling that is allowing cost of revenue to fall at the same time.

Speaker Change: Revenue is growing.

Speaker Change: Okay.

Sagi Niri: Laura, we are recording. We are reporting on a net revenue basis. So when you are saying that costs went down, are you talking about OPEX, or what exactly are you referring to? The cost of revenue line went from 16 million to 14 million. So your costs got better. They went down less, in a sense, but your revenue grew from $71 million to $74 million. Usually, cost of revenue is directly linked to revenue.

Speaker Change:

Speaker Change: We are reporting.

Speaker Change: We are reporting on a net revenue basis, so when youre, saying Thats cost went down youre talking about opex or what exactly you are referring to.

Speaker Change: The cost of revenue line.

Speaker Change: Went from 16 million to 14 million.

Speaker Change: So your costs got better they went down last Renaissance, but your revenue grew from 71 million to $74 million.

Speaker Change: Usually cost of revenue is directly linked to revenue.

Sagi Niri: So when you're talking about cost of revenue, our cost of revenue is a little bit different than others because some of our activities are connected to our legacy freeform activity, which we are reporting on gross revenue. So over there, we saw an increase in profitability, which is, you know, revenue went up, and the cost of revenue didn't go up as much. The other thing is data and hosting costs, which we optimized very, very heavily during 2023 and renegotiated a lot of our partnerships. So now we are seeing the fruits of that. Okay. And then my second one is on CTV.

Speaker Change: So when you are talking about cost of revenue our cost of revenue is a little bit different than others, because some of our.

Activity is connected to our <unk>.

Speaker Change: Our legacy performance activity, which we are reporting on a gross revenue. So over there we saw an increase in the profitability, which as you know.

Speaker Change: Revenue went up in the cost of revenue billings with went up as much. The other thing is data and hosting cost, which we optimized.

Speaker Change: Very very heavily during 2023.

Speaker Change: And renegotiated a lot of our.

Speaker Change: Partnerships.

Speaker Change: Now we are seeing the fruits of that.

Speaker Change: Okay and then my second one is on CTV Oh for you have this fabulous Vita deal I would've guessed that having the ACR data from Vida would've helped you with connected TV connected.

Ofer Druker: Ofer, you have this fabulous VEDA deal. I would have guessed that having the ACR data from VEDA would have helped you with connected television, but yet, connected television revenue fell $11. So I guess those aren't linked, but I don't understand why. So I guess I'm asking, can you give us more insights into why connected television sells 11%, which is not the industry experience other than you guys, and why it isn't aided by the VITA deal, which has this fabulous data from ACR? No problem.

Speaker Change: Connected television revenue fell 11%.

Speaker Change: So I guess those arent linked but I don't understand why so I guess I'm asking can you give us more.

Speaker Change: Insights into why connected TV fell, 11%, which is not the industry.

Experience other than you guys and why it isn't aided by the <unk> deal, which has a fabulous data from ACR.

Speaker Change #100: No problem.

Ofer Druker: So the ACR, you need to get to a critical mass in order to be more meaningful. And we did it in the past couple of months. And we are now in negotiation with a lot of meaningful partners. Some of them will be announced in the next couple of months.

Speaker Change #100: So the ACL is.

Speaker Change #101: You need to get to a critical mass in order to be more meaningful than we did in the past couple of months and we are now signing in negotiation with a lot of the a lot of meaningful partners. Some of that will be announced in the next couple of months and we believe that it will contribute to the growth not just of CPP, but in total revenues because of the <unk>.

Ofer Druker: And we believe that it will contribute to growth, not just of CTP but in total revenues, because you basically can use this ACR in order to target also on other platforms. The second thing is that we were very strong in the past on the CTV front. We lost some of the momentum because of microeconomics last year and the year before, but we see now in Q1 that it was a little bit soft again.

Speaker Change #101: Basically could move this ACR in order to target those on other platforms.

Speaker Change #101: Yeah.

Speaker Change #102: The second thing is that we were very strong in the past on the CTV front.

Speaker Change #102: Some of the momentum because of microeconomics last year in data before but we've seen now in Q1, it was little bit soft again, but in Q2, we see.

Ofer Druker: But in Q2, we see strength in CTV spend. And we see that our partners are moving their budget back to CTV also, which is good news for us, because we have to remember that most of the people that you are talking about, most of their revenues are, in some ways or form, connected to performance. And we are, most of our business is branding. So it's different pricing and different objectives. But we see growth now also because the momentum and sentiment in the market are changing, and we believe that we have an advantage.

Speaker Change #102: And on CTV spend and we see that our partners moving their budget back to CTV also which is a good news for us because we have to remember that most of the people that you are talking about most of their revenues is in some ways a phone connected to performance and we are most of our businesses branding. So it's different.

Speaker Change #102: Pricing.

Speaker Change #102: Current objective, but we see now the growth also because the momentum in sentiment in the market is changing and we believe that we have an advantage I believe that in the next in the next few months, we will see growth.

Ofer Druker: I believe that in the next few months, we'll see growth and increased growth because of the ACR coming into play. It took us a long time to basically build it, launch it, educate our teams, educate our clients, and get to the critical mass that is making it interesting also for the big players in this industry to basically participate in that. And I think that we are getting to this point where it's becoming meaningful, and I think that it will bring us a lot of value in the near and the long term because it's unique, as you stated, and it's very powerful data, which in so many ways, it's even strategic.

Speaker Change #102: This growth because of the ACR coming into play it took us a long time to basically built it launches educate our teams educated our clients get to critical mass that is making interesting making interesting also for the big players.

Speaker Change #102: In this industry to basically participate in that and I think that we are getting to display that is becoming meaningful.

Speaker Change #102: That is I think that it will bring us a lot of value in there.

Speaker Change #103: EMEA and the long term because it's unique as you stated and it's very powerful data, which in so many ways. It's even stratus I will call it strategic because in the open web there is not a lot of companies that basically.

Ofer Druker: I would call it strategic because on the open web, there are not a lot of companies that basically have all these capabilities and can enable their partners to basically use them in a smart manner. And we have long-term experience with that because we started using ACR data in 2016, basically. [inaudible] So I feel strongly about the ACR. I feel strongly about the CTV.

Speaker Change #103: All these capabilities.

Speaker Change #103: And can enable the partners to basically goes within the smart manner, and we have long term experience with that because we started using ACI that in 2016 basically the company even before we do so.

Speaker Change #103: I feel strongly about the ACL I feel strongly about the Citibank.

Ofer Druker: And I think that we are in a point of turning point now, that data is becoming more massive, more incremental. It's reached a number that is making a difference. And we are now basically in agreement and building a relationship that will affect us in the near and long term. Thank you. So we are in a different trend now. Yes. Your next question comes from the line of Andrew Mark with Raymond James. Please go ahead.

That we already have the political turning points now.

Speaker Change #103: That that'd be too bold massive more incremental.

Speaker Change #103: Sure.

Speaker Change #103: It's a number that is making the difference and we are now basically agreements.

Speaker Change #103: Building.

Speaker Change #103: It will affect us.

Speaker Change #103: And long term.

Speaker Change #104: Thank you, yes, and just to add what percent I think that we are seeing the 10 point that also mentioned already through Q2.

Speaker Change #105: So we are in.

Speaker Change #105: On a different trend now.

Speaker Change #105: Okay.

Speaker Change #105: Yes.

Speaker Change #105: Yes.

Speaker Change #105: Your next question comes from the line of Andrew Marc with Raymond James. Please go ahead.

Andrew Jordan Marok: Hi, thanks for taking my question. I wanted to talk about the non-CTV portion of the video business. We're hearing some pretty downbeat commentary, maybe on and across the industry as it relates to oversupply and pricing and things like that. But you guys seem to have done a little bit better this quarter, I guess. What do you see as the industry drivers that are allowing you to do better than peers here? And how do you see that playing out over 24?

Andrew Jordan Marok: Hi, Thanks for taking my question wanted to talk about the non CTV portion of the video business we.

Speaker Change #107: We're hearing some pretty downbeat commentary, maybe on that across the industry as it relates to oversupply and pricing and things like that.

Speaker Change #107: But you guys seem to have done a little bit better this quarter I guess, what do you see as the industry drivers that are allowing you to do better than peers here and how do you see that playing out over 24.

Ofer Druker: So I think that two major things are making us play much better in 2024 than the year before. We have to remember that last year was the year of integration and consolidation, basically, of two major platforms that are taking a lot of the attention of the people, of the product people, of the technology. And at the beginning of this year, we basically were able to raise our heads and basically do more business and not just focus most of our resources and time on consolidation and integration. That's one.

Speaker Change #108: So I think that's it.

Speaker Change #109: Two major two major things that are making the play much better in 2020 for than the year before we have to remember that <unk> was days of integration and growth and consolidation basically of two major platforms.

Speaker Change #110: Taking a look of the attention of the people of their product pay part of the technology.

Speaker Change #110: In this beginning of this year, we basically were able to raise our hands and basically we do more business and I'll just focus for most of our resources and time on the consolidation and integration, that's what and wrapping the product in a much more meaningful way minutes that it makes sense for for purpose tool basically.

Ofer Druker: And wrap the product in a much more meaningful manner that makes sense for partners to basically engage and use our platforms. In the past, if I just want to remind you, we had like several names, several platforms, and so on, where basically everything was under Maxent. It's organized in a much better way, and it's making it easier for clients and partners to understand the value that they can gain by working closely with us, and we see the effect of that.

Gage and use our platforms in the past if I just want to remind you of the weird like several named several of breath for Samsung and now.

Speaker Change #110: Basically everything is under mix than it is.

Speaker Change #110: Organized in a much better way.

Speaker Change #111: It is therefore clients and partners to understand the value that they can gain by working closely with us if we see the effect of that so that's one.

Ofer Druker: The second thing is macroeconomics. As I just mentioned to Laura, and I mentioned it to you, I think that most of the companies that you will see that are our peers, they have a big portion of display. They have a big portion of what we call semi-performance of performance, which is basically also working very well when the macroeconomic situation is not great.

Speaker Change #111: Second thing is macroeconomic as I, just mentioned to Laura and I mentioned it to I think that most of the companies that we see with our peers.

Speaker Change #111: They are a big portion of display there's a big portion of what we call semi performance of performance, which is basically also working very well in.

Speaker Change #111: When the macroeconomic situation is not great. Although revenues most notably in the past was branding. So we would be affected when the market will pick up much higher than than usually but we also suffer in days.

Ofer Druker: Our revenues, mostly in the past, were branding. So we will be affected when the market picks up much higher than them, usually. But we also suffer in days when the macroeconomic still is.

Speaker Change #112: The microeconomic series I think that this year, we feel a better sentiment we feel a better optimal.

Ofer Druker: I think that this year we feel a better sentiment. We feel better optimism from our clients and partners that they can spend or invest their money in a way that will support their brands and grow their brands. And they are doing that in a more meaningful way. And that is, of course, helping us to grow our revenues. And I feel that we also, basically what we did, we built through the acquisition of Amobi, which was also dealing heavily with display.

Optimism from our clients and partners that they can spend or invest their money in a way that will support our brands and grow their brands.

Speaker Change #112: That's it in a more meaningful manner that is of course, helping us to grow revenues and I feel that we also basically what we did we bear fruit.

Speaker Change #112: The acquisition of a movie that was also dealing directly with display we basically shrink.

Ofer Druker: We basically strengthened our capabilities around the opti-channel and built display capabilities that are helping us to grow revenues. It will help us also to stabilize them in the future if the market suffers again from a macroeconomic crisis.

Speaker Change #113: Strengthen our capabilities as well.

Speaker Change #113: The OTA channel.

Speaker Change #113: And we built also display.

Speaker Change #114: The abilities that is asking us to grow their revenues, but it will help us also to stabilize them in the future if the market will suffer again for macroeconomic situation.

Ofer Druker: So I think that the last year was very important to basically set the foundations, connected technologies, packages, and rebranded. And now we feel that we are in another place, that we have better products, a better offering, and much more clear value to the market on one side. And also, the market is supporting us better because the macroeconomic issues are released. And we feel that there is more confidence amongst clients, advertisers, and partners to invest in resources in order to support them. I understand. Thank you. In fact, I can maybe squeeze one more in.

I think that the last year was a.

Speaker Change #114: Very important to basically set the base.

Speaker Change #115: Connected technologies that.

Packages rebranded and now we feel that we're at another place that we have better products better offering much more clear value to the market on one side and also the market is supporting us better because the macroeconomic.

Speaker Change #115: The issues are released and we feel that there is more confidence among the clients and advertisers and partners to invest the resources in order to support their brands.

Understood. Thank you and if I could maybe squeeze one more in.

Ofer Druker: Just any comments on the recent outline of the Google AI overview and any potential impact that could have on open web traffic and ad pricing. Obviously, not an impact on CTV, but just how you're kind of baking that into your expectations for the remainder of the year on the online video and display portions of the business. Thank you. [inaudible] I don't think that we feel right now, you know, there are many movements in the industry like the increased volume of media that is coming to the industry, and AI, which is, of course, another thing that is making a difference. But right now, in the day-to-day, and so on, we don't feel it so much.

Speaker Change #116: Just any comments on the recent.

Speaker Change #117: Outline of the Google AI overview, and any potential impact that could have on open web traffic and AD pricing, obviously, not an impact CTV, but just how you're kind of baking that into your expectations for the remainder of the year on the online video and display portions of the business. Thank you.

Speaker Change #118: Yeah Hello.

Speaker Change #119: I don't think that we feel right now.

Speaker Change #120: There is many movements in the industry like increased volume of media that is coming to the industry. The EIS, which is of course. Another another thing that is making a difference but right now in the in the.

Ofer Druker: We don't feel that it's affecting our business terms and way of doing business, and I think that we'll have to wait and see how it affects the market in the next few quarters. Okay, thank you. Your next question comes from the line of Mark Kelley with Stiefel. Please go ahead. Great, thank you. I have two quick ones.

There are today and so we don't see it so much we don't feel that it's like affecting our business Samson and way of doing business and I think that we'll have to wait and see how it will affect basically the market in the next day two quarters.

Speaker Change #121: Okay. Thank you.

Speaker Change #122: Your next question comes from the line of Mark Kelly with Stifel. Please go ahead.

Mark Patrick Kelley: Great. Thank you.

Mark Patrick Kelley: Two quick ones. The first one is when.

Mark Patrick Kelley: The first one is, you know, when we look at the political spending environment this year, I guess, is there any part of your portfolio that you think will be the most important? Is it the linear TV planning tool, is it more on the CTV side, or is it just mostly on video? Anything there would be helpful, particularly as it relates to the last election cycle. The second question I had was... You have some interruptions on your line, so can you repeat just the beginning of your question, because it's like, I don't know, you have a deadline. Apologies; let me try that again.

Mark Patrick Kelley: When we look at the political spending environment. This year I guess is there any part of your portfolio that you think.

Speaker Change #124: We will be the most important is at the linear TV planning tool.

More on the CTV side or is it just mostly on video anything there would be helpful.

Speaker Change #125: And particularly as it relates to the last election cycle.

Speaker Change #126: The second question that Edward.

Speaker Change #127: We have some interruptions on your line. So can you repeat just the beginning of your question because it's like I don't know if it was like a bad line.

Yes, apologies, let me try that again.

Ofer Druker: Political spending this year, what part of the portfolio are you most excited about that you think will differentiate yourself? Second question. In CTV, it seems like more inventory is becoming available to third parties, but usually, the third parties are the, you know, biggest, most scaled platforms. I guess, how do you try to set yourself apart from those folks and gain access to that inventory?

Speaker Change #128: Political spending this year, what part of the portfolio are you. Most excited about that you think will differentiate yourself second question and.

Speaker Change #128: And CTV it seems like more inventory is becoming available to third parties, but.

Speaker Change #128: Usually the third parties are.

Speaker Change #128: I guess, most scaled platforms I guess, how do you try to set yourself apart from those folks and gain access to that inventory. Thank you.

Speaker Change #128: Okay.

Ofer Druker: Thank you. So first of all, regarding politics, I think that we have a very strong suite of services that are getting into play. The massive one is the discovery tool that basically enables us to create a very good segmentation and learn about your audiences and reach them in a smart manner. So we see a lot of good reactions in the market agreements and basically planning around using our discovery tool, which is basically aggregating a lot of our data and enabling the client basically to build segmentation, get insights about their audiences, and very seamlessly basically operate it across our DSP and SSP. I think this is a very interesting platform. And Through that, they can basically get to the entry point.

Speaker Change #129: So first of all regarding political I think that we have a very strong suite of services.

Speaker Change #130: He is getting into play domestic one is the discovery tool that basically enable us to create a better very good segmentation and then about your audiences and reach them in a smart manner. So we see a lot of <unk>.

Speaker Change #130: Good reaction in the market agreements and basically planning around using our discovery tool, which is basically aggregating a lot of our data and enable declines basically to be a segmentation that insights about this about their own audiences and very seamlessly basically operators across our DSP and SSP.

Speaker Change #130: This is where most of this is a very interesting platform and.

Speaker Change #130: So that they can basically get sense reports they can use the other services that we got like the cross planning tools, which is what.

Ofer Druker: They can use the other services that they have, like the cross-planning tools, which are digital and linear, which is, we are seeing, very nice success, not just related just to politics. But we see great success in this business model, where we basically enable clients that are heavily invested in linear to expand into digital, and people that are historically mostly digital to basically start buying also linear.

Speaker Change #130: Bunch of digital India, which is we are seeing there.

Speaker Change #130: Very nice success, even not related just a political but we see great success in this area.

Speaker Change #131: This business model that we basically enable.

Speaker Change #131: Lines that are heavily invested in linear to expand into digital and people.

Speaker Change #131: Historically was mostly digital to basically start bilingual sylvania and we see great success in that and it's of course, serving also.

Ofer Druker: And we see great success in that, and it's, of course, serving the digital world as well. The last point is a CTV.

Speaker Change #131: Digital World.

Speaker Change #131: The last point is a CTV.

Ofer Druker: And it's also answering in some way or form your second question, which I think that we don't feel any lack of media, meaning we have great relationships and business relationships and business partnership with all the big OEMs, the other biggest CTV players like Roku and so on. We are missing some of the broadcasters that you mentioned, but we don't feel that it's affecting our capability to reach the audience in the market or having a lack of media on our platforms.

Speaker Change #132: And it's also answering in some way or form also your second question, which I think that we don't see any lack of media, meaning we have great relationship business relationship with this partnership with all the big OEM.

Speaker Change #132: The other sort of bigger CTV players like Brooklyn zone.

Speaker Change #132: We are missing some of the broadcasters. So that you mentioned, but we don't effect, we don't see that it's affecting our capability to reach their audience in the market or to have like lack of media on our platform on the contrary, we just grow it through as I mentioned the agreements that we have with LG with.

Ofer Druker: On the contrary, we just grew it through, as I mentioned, the agreement that we had with LG, the agreement with ECL, the agreement with Roku, and we're signing more and more partners that are basically joining our platform in order to enjoy the self-serving tools and the demand that we can bring to their platform and other capabilities that we are basically able to provide them, and we see great success from that. So in general, even though there are a lot of movements in the CTV world, I think that we have built ourselves a very strong platform, a very strong relationship with a lot of strong players that are making it enough for us to be very successful with our clients and advertisers that are running with us, you know. All right, thank you very much.

Speaker Change #132: With the agreement with Tcl with the agreement of with Roku, and we're signing more and more clients more and more partners that basically joining our platform in order to enjoy from self serving tools.

Speaker Change #132: The demand that we can bring to their platform and other and other capabilities that we are basically able to provide them and we see great successful debt. So in general even that the envelope of moving through the system very well I think that we build ourselves.

Speaker Change #132: Strong platform, a very strong relationship with the local strong players.

Speaker Change #132: Becky and good enough for us to be very successful with our clients and advertisers about running with us in order to achieve that growth.

Speaker Change #133: Alright, Thank you very much.

Ofer Druker: That concludes our Q&A session. I will now turn the conference back over to Ofer Druker for closing remarks. Thank you, everyone. Thank you for joining us this morning. I must say that I'm really excited.

Speaker Change #134: That concludes our Q&A session I will now turn the conference back over to offered to occur for closing remarks.

Speaker Change #133: Yeah.

Speaker Change #135: Thank you everyone. Thank you for joining us this morning.

Speaker Change #136: I must say that I'm really excited we worked in the last two years very very very very hard in order to build a strategy and also connect their new DSP and capabilities that we acquired with our move into one platform. We rebranded our platform. We've made a lot of adjustments to our products in order to.

Ofer Druker: We worked very, very, very, very hard over the last two years in order to build a strategy and also connect the new DSP and capabilities that we acquired with Amovi to one platform. We rebranded our platform. We made a lot of adjustments to our product in order to make it easier for clients and partners and potential partners to understand the offering that we have and the added value that we can offer them.

Speaker Change #136: To make it more easier for clients and partners or potential partners to understand the offerings that we got.

Ofer Druker: And I feel that there is a huge movement now among clients and partners to adapt and use our technology in a great manner, which is, of course, proving again that our strategy and our product line are in the right place in order to serve them in years to come with the services and opportunities that they are facing. And we are proud to be part of their strategy. And we believe that as a company, we have achieved the point where now it's time to execute.

Speaker Change #136: Value that we can offer them.

Speaker Change #136: I assume that there is a huge movement of clients and partners to adopt and use our technology in a great manner, which is of course.

Speaker Change #136: Proving again that our strategy and our product line.

Speaker Change #136: Place.

Speaker Change #136: But it has to come with the services of opportunities that they are facing and we are proud to be part of their strategy and we believe that as a company. We achieved the point that now it's time to execute so we build everything we acquire companies we connected there.

Ofer Druker: So we built everything, we acquired the companies, we connected them, we rebranded them, we packaged them smartly, and now it's the time to execute, and I feel very good about it for the future because we feel that the market is starting to realize what we have to offer, and we are able to expand much better what we have in our hands in order to assist them, basically executing this project. So thank you very much, and I hope to see you soon again with great results. Thank you. Ladies and gentlemen, that concludes today's call. Thank you all for joining us. You may now disconnect.

We rebranded them, we package them smelting and now it's time to execute and I feel very good about it for the next future because we feel that the market start to realize with regard to <unk> and we are able to extend much better.

Speaker Change #136: And in order to assist them.

Speaker Change #136: And basically executing the strategy.

Speaker Change #136: So thank you very much and hope to see you soon again with great results. Thank you.

Speaker Change #137: And gentlemen that concludes today's call. Thank you all for joining you may now disconnect.

Speaker Change #137: [music].