Q2 2024 Nexxen International Ltd Earnings Call

Operator: Welcome to Nexxen's Second Quarter Earnings Call.

Operator: Welcome to Nexxen's second quarter earnings call. At this time, all participants are enabled to listen on the mode, with a question and answer session to follow at the end of the presentation. This call is being recorded, and a replay of the day's call will be made available on the Nexxen's investor relations website.

Welcome to <unk> second quarter earnings call at this time, all participants are in a listen only mode. A question and answer session to follow at the end of the presentation.

Operator: At this time, all participants are in a listen-only mode, with a question-and-answer session to follow at the end of the presentation.

Operator: This call is being recorded, and a replay of today's call will be made available on the Nexxen's Investor Relations website.

Eric Martinuzzi: Thank you.

Call is being recorded and a replay of today's call will be made available on the Nexus Investor Relations website, I will now hand, the call over to bill accurate.

Operator: I will now hand the call over to Billy Eckert, Vice President of Investor Relations, for introductions and the reading of the Safe Harbor Statement.

Operator: I will now hand the call over to Bill Eckert, Vice-President of Investor Relations for introductions and the reading of the safe harbor statement.

President of Investor Relations for introductions and the reading of the Safe Harbor statement Bailey. Please go ahead.

Operator: Billy, please go ahead.

Billy Eckert: Thank you, operator.

Operator: Billy, please go ahead.

Operator: Your next question comes from the line of Mauricio Munoz from Raymond James.

Bill Accurate: Thank you operator, good morning, everyone and welcome to <unk> second quarter earnings call. During today's call, we will discuss our financial and operating results for the three and six months ended June 32024, as well as our forward looking guidance.

Billy Eckert: Good morning, everyone, and welcome to Nexxen's second quarter earnings call. During today's call, we will discuss our financial and operating results for the three and six months ended June 30th, 2024, as well as our forward-looking guidance.

Billy Eckert: Thank you, Operator.

Operator: Please go ahead.

Billy Eckert: Within the front of today's call are Ofer Druker, Nexxen's Chief Executive Officer, and Sagi Niri, the company Chief Financial Officer. This morning, we issued a press release, which you can access on our IR website at investors.nexxen.com.

Speaker Change: With us on today's call are <unk>, <unk>, Chief Executive Officer, and <unk>, 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.

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

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: Good morning, everyone, and welcome to Nexxen's Second Quarter Earnings Call.

Billy Eckert: During today's call, we will discuss our financial and operating results for the three and six months ended June 30, 2024, as well as our forward-looking guidance.

These statements include without limitation statements and projections regarding our anticipated future financial and operating performance market opportunity growth prospects and 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 and market share.

Speaker Change: Or competitive performance relating to our products or services.

Speaker Change: All forward looking statements are based on information available to us as of the date of this call.

Billy Eckert: These statements involve known and unknown risks on certainties and other factors that may cause our actual results to differ materially from those implied by these forward-looking statements, including unexpected changes in our business, or unexpected changes in macroeconomic or industry conditions. More detailed information about these risk factors and additional risk factors are set forth in our filings with the U.S. Securities and Exchange Commission, including but not limited to those risks and uncertainties listed in the section entitled Risk Factors in our most recent annual report on Form 20-F. Next, it 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: 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: More detailed information about these risk factors and additional risk factors are set forth in our filings with the U S Securities and exchange Commission, including but not limited to those risks and uncertainties listed in the section entitled Risk factors in our most recent annual report on form 20-F.

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.

Billy Eckert: Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in IFRS and non-IFRS terms. We refer you to the company's press release for additional details, including definitions of non-IFRS items and reconciliations of IFRS to non-IFRS results.

Speaker Change: Additionally, the company's press release and management statements. During this conference call will include discussions of certain measures and financial information Ifr us and non Ifr's terms, we refer you to the company's press release for additional details, including definitions of non <unk> items and reconciliations of Ifr us to non <unk> results at.

Billy Eckert: At this time, it is my pleasure to introduce Overdruker, CEO of Nexon.

Billy Eckert: With us on today's call are Ofer Druker, Nexxen's Chief Executive Officer, and Sagi Niri, the company's Chief Financial Officer.

Mauricio Munoz: Yeah.

Speaker Change: At this time it is my pleasure to introduce <unk> CEO of Nexen over please go ahead.

Billy Eckert: This morning, we issued a press release, which you can access on our IR website at investors.nexsen.com.

Mauricio Munoz: Thank you for taking my question.

Ofer Druker: Over, please go ahead.

Ofer Druker: Thank you, Billy. In the second quarter, we've benefited from significantly improved execution while taking the important steps to enhance the strength of our platform and enhance our sales and marketing strategy to try further momentum. Our improved ability to execute enabled us to generate strong performance across the business, resulting in record Q2 contribution extract, programmatic revenue, and CTV revenue, alongside significantly extended adjusted data.

Billy Eckert: 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.

Mauricio Munoz: This is Mauricio in for Andrew today.

Nexen: Thank you baby in the second quarter, we benefited from significantly improved execution, while taking important steps to enhance the strength of our platform and enhance our sales and marketing strategy to drive further momentum.

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

Mauricio Munoz: Yeah, I just wanted to go back to the questions of margins.

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.

Billy Eckert: More detailed information about these risk factors and additional risk factors are set forth in our filings with the U.S. Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled Risk Factors in our most recent annual report on Form 20-F.

Billy Eckert: Nexsen 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.

Billy Eckert: 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.

Mauricio Munoz: So Sagi, obviously margins were quite strong in the quarter and just trying to understand, the sources of upside and how sustainable these are.

Speaker Change: All of that improves the ability to execute enable us to generate strong performance across the business, resulting in record Q2 contribution expect programmatic revenues.

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.

Speaker Change: And CTV revenue alongside significantly expanded adjusted EBITDA.

Ofer Druker: Our rebrand to Nexon was clearly a catalyst that contributes to our better performance Q2, and is continuing to position us for new and expanded partnership with industry leaders. The rebrand and driven greater recognition in the market clarify the holistic value proposition of our full stack offering and use a better understanding of how Nexxen addresses the industry's biggest challenges, including maximizing the value of data to generate better results and returns to customers. Nexxen is placing data firmly in the center of its strategy. Data has historically given Nexxen an advantage over other ethical principles, as our full stack platform has been unified by a robust data management platform that integrates directly with our DSP and SSD to improve activation.

Speaker Change: Our rebrand to Nixon was clearly a company that contributed to our better performance in Q2.

Speaker Change: Continuing to position us for new and expanded partnerships with industry leaders.

The rebrand and driven greater recognition in the market clarify, though distinct value proposition will following full stack offering and yield a better understanding of how nexsan addresses the industry biggest challenges, including maximizing the value of data to generate better results and details to customers.

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Speaker Change: Next slide is placing us firmly at the center of the strategy. Thus far has historically given nexsan and advantage over other competitors.

Speaker Change: Our full stack platform is being unified by robust data management platform that integrates directly with our DSP and SSP to improve oxygenation.

Ofer Druker: Through the integration of a mobile, we were able to improve our data capabilities further by integrating some of our mobile products into our ecosystem. Today, on top of our data reach activation elements, we offer other unique data solutions that provide comprehensive audience segmentation insights and data enrichment capabilities, as well as an ID graph. Since completing the integration, we've also been able to free up resources to invest more into driving innovation. This innovation has enabled the recent release of many of the data capabilities that have helped Nexxen gain greater recognition and win new partnerships with some of the leading forces in the industry.

Billy Eckert: At this time, it is my pleasure to introduce Ofer Druker, CEO of Nexsen.

Mauricio Munoz: So you talked about your ability to capture cost efficiencies and I'm assuming some headcount, rationalization and maybe capability integrations now that Amobi has been fully integrated for over a quarter.

Speaker Change: Through the integration with <unk>, we've been able to improve our capabilities further by integrating some of our <unk> products into our ecosystem.

Billy Eckert: Ofer, please go ahead.

Mauricio Munoz: We're just wondering about any positive margin contributions from the revenue mix, particularly, any margin upside from data licensing revenue or as VITA license revenues ramp with the platform scaling.

Speaker Change: Today on top of our Doctor reach activation elements, we offer a unique solution.

Ofer Druker: Thank you, Billy.

Operator: So any color around that would be helpful.

Speaker Change: <unk> comprehensive audience segmentation insights and data enrichment capabilities as well as an IV graph.

Ofer Druker: In the second quarter, we benefited from significantly improved execution while taking important steps to enhance the strength of our platform and advance our sales and marketing strategy to drive further momentum. Our improved ability to execute enabled us to generate strong performance across the business, resulting in record Q2 contribution expects, programmatic revenues, and CTV revenues, alongside significantly extended adjustability.

Sagi Niri: Sure.

Sagi Niri: So I think you touched all of the right points.

Speaker Change: Since completing the integration we have also been able to free up resources to invest more into driving innovation.

Sagi Niri: We announced yesterday on our, on Nexen and the Traders Partnership around ACR data in, the US, Canada, UK and Australia.

Sagi Niri: I think that this is like the, you know, our foray into this vertical or line of business, where we are generating money out of the data that we have exclusively.

Speaker Change: This innovation has enabled the recent release of many of the types of capabilities that is elk nexsan gain greater recognition and we have new partnerships with some of the leading forces in the industry.

Ofer Druker: Our rebrand to Nexsen was clearly a catalyst that contributes to our better performance in Q2 and is continuing to position us for new and extended partnership with industry leaders. The rebrand has driven greater recognition in the market, clarified the holistic value, proposition of our full-stack offering, and fueled a better understanding of how Nexxen addresses the industry's biggest challenges, including maximizing the value of data to generate better results and returns to customers.

Ofer Druker: Our data capabilities are serving as a massive differentiator for us and as a base for some of this important new partnership, and we believe there will continue to benefit Nexxen and its customers over the immediate and long term. Data is present in every component of our offering and drive in ends outcome across all steps of our advertising and publisher customer's workflow. Our data sources and capabilities enable advertisers to better understand audiences and create valuable audience segments. Find and target likely to engage or buy customers across platforms and devices, maximize reach, boost return, and measure attractiveness.

Ofer Druker: Nexxen is placing data firmly at the center of its strategy. Data has historically given Nexxen an advantage over other APEC competitors, as our full-stack, platform has been unified by a robust data management platform that integrates directly with our DSP and SSP to improve activation. Through the integration of Amobi, we were able to improve our data capabilities further, by integrating some of Amobi's products into our ecosystem. Today, on top of our data-rich activation elements, we offer other unique data solutions, that provide comprehensive audience segmentation, insights, and data enrichment capabilities, as well as an ID graph.

Sagi Niri: And probably, you know, over time we will have more partnerships on that front and the, revenue that we'll generate from that will grow up as the partners will use it and utilize it more and more as they will see, you know, the benefit from that.

Speaker Change: Our adapt our capabilities are serving as a massive differentiator for us.

Sagi Niri: And as VITA license will sell more TV sets.

Speaker Change: As the base for some of this important new partnership and we believe they will continue to benefit Nexsan and these customers over the immediate and long term.

Ofer Druker: Since completing the integration, we have also been able to free up resources to invest, more into driving innovation. This innovation has enabled the recent release of many of the data capabilities that have, helped Nexxen gain greater recognition and win new partnerships with some of the leading forces in the industry. Our data capabilities are serving as a massive differentiator for us and as a base for some, of these important new partnerships, and we believe they will continue to benefit Nexxen and its customers over the immediate and long term.

Sagi Niri: So I think that this line of business is contributing direct to the EBITDA line.

Sagi Niri: We don't have any cost or any extra incremental cost around that.

Sagi Niri: I think that's what I said, you know, everything in our industry is a right seasonality.

Ofer Druker: Data is present in every component of our offering and drive enhanced outcomes across, all steps of our advertiser and publisher customers' workflow.

Sagi Niri: So we can have a, you know, a better quarter or a much better quarter in the margin. The adjusted EBITDA line will be better at that quarter specifically.

DARPA: DARPA is present in every component of our offering and drive enhanced outcome across all steps.

Sagi Niri: But again, I think we should look on our margins on a yearly basis.

Speaker Change: Diluted publisher customers work through.

Ofer Druker: Our data sources and capabilities enable advertisers to better understand audiences and create, valuable audience segments, find the targets likely to engage or buy customers across platforms and devices, maximize reach, boost return, and measure effectiveness.

Speaker Change: We'll talk the sources and capabilities enable advertisers to better understand audiences and create valuable audience segments finding.

Speaker Change: <unk> targets likely to engage or by customers across platforms and devices maximize reach firstly, Tim and measure the effectiveness.

Ofer Druker: Our exclusive advanced TV data access and unique capabilities, alongside our premium supply source, are also materially enriching our customers' advertising results across TV and other formats, and driving partners to increasingly choose to work with Nexxen. As I mentioned, our data sources and capabilities have been key along the journey to attracting advertisers and publishers to engage with Nexxen, and the number of partners seeking to work with us is growing, particularly following the launch of our new robust Nexxen data platform in YouTube. Nexxen data platform combines and better unified all our data assets and applications, resulting in an unrivaled, full-text, end-to-end data offering that is strengthened our competitive positioning and amplify the effectiveness of our solutions.

Ofer Druker: Our exclusive advanced TV data access and unique capabilities, alongside our premium, supply roster, are also materially enriching our customers' advertising results across, TTV and other formats, and driving partners to increasingly choose to work with Nexxen. As I mentioned, our data sources and capabilities have been key along the journey to attracting, advertisers and publishers to engage with Nexxen, and the number of partners seeking to work with us is growing, particularly following the launch of our new robust Nexxen Data Platform in Q2.

Speaker Change: Our exclusive advanced television.

Speaker Change: Our unique capabilities.

Speaker Change: Long side, our premium supply source.

Speaker Change: Also materially in reaching our customers advertising results across CTV and other four months and driving partners to increasingly choose to work with excellence.

Sagi Niri: And for that, I think that in 2024, we are going to generate something around the 30-ish, percent.

Speaker Change: As I mentioned.

Speaker Change: Thus our sources and capabilities have been key along the journey to attracting advertisers and publishers to engage with <unk> and the number of partners seeking to work with US is growing particularly following the launch of our new robust makes sense as a platform in Q2.

Sagi Niri: And going forward, as you said, and as Ofer mentioned, the Amobi integration that is already, being fulfilled, I don't want to say long time ago, but it's already there.

Sagi Niri: I think that now, as we said in the call before, we are back on the offense and we, are going, and others.

Sagi Niri: I think that we are moving to more and more efficiency and more cost leverage on our cost, base.

Sagi Niri: And I think that in the last, I don't know, four quarters at least, we are seeing like, the numbers of the total ad count of the companies decreasing revenue quarter over quarter.

Sagi Niri: And of course, this is helping to increase our margin.

Sagi Niri: And it will be, you know, the same as we will move forward.

Ofer Druker: Nexxen Data Platform combines and better unifies all our data assets and applications, resulting, in an unrivaled full-stack end-to-end data offering that has strengthened our competitive positioning and amplified the effectiveness of our solutions. Through Nexxen Data Platform, customers can now directly and securely onboard first-party, data.

Sagi Niri: Well, thank you.

Speaker Change: Excellent data platform combines and better unify all are about that.

Speaker Change: Reputation.

Speaker Change: Did you have an unrivaled full stack end to end data offering.

Speaker Change: <unk> strengthened our competitive positioning and <unk>.

Speaker Change: Blessed by the effectiveness of our solutions.

Ofer Druker: Through Nexxen data platform, customers can now directly and securely unbolt first-party data. After onboarding, customers can leverage Nexxen Discovery to create audiences, unlock insights, and reach first-party data. Our customers highly value these two, because being adapted by important new partners like a G&S segment, we are using it to enhance insights for them and their customers and is also attracting significant interest from other major players in the industry. Additionally, customers can also take advantage of our vast TV intelligence solutions, which have the ability to minimally enhance the CDV targeting its measurements. Our full suite of data capabilities is unique to Nexxen and provides operational, performance, and economic benefits for our partners.

Mauricio Munoz: Very helpful.

Speaker Change: Through an excellent data platform customers can now directly and securely on both first party data.

Mauricio Munoz: And then on capital allocation, maybe you can give us an update on your plans.

Mauricio Munoz: Obviously, you retired 100 million in debt, now have 152 million in cash.

Ofer Druker: After onboarding, customers can leverage Nexxen Discovery to create audiences, unlock insights, and enrich first-party data. Our customers highly value this tool.

Mauricio Munoz: So I'm assuming that following the acquisition of Amobi, you're probably going to pause on, your M&A plans.

Mauricio Munoz: But how do we think about the pace of the ongoing shared buyback program and any plans, to simplify your share structure?

I'll still onboarding customers can leverage and excellent discoveries to create audiences unlock insights and you reach first party data.

Mauricio Munoz: Thank you.

Operator: Yep.

Sagi Niri: I think, as I said before, we are generating money on a regular basis. Our net cash after we fully repaid our $100 million of loan that we took in order to finance, some of the Amobi acquisition already was fully repaid.

Sagi Niri: And we will keep generating money.

Sagi Niri: This is our DNA and this is our plan.

Sagi Niri: And as long as, you know, management and board will think that the value of the company is, undervalued in the market, we will keep on buying back our shares.

Sagi Niri: And according to your first part of the question, yes, I think that now, after the full integration, of Amobi, we don't think that we are missing like any critical part and any important part.

Mauricio Munoz: Great, thank you.

Sagi Niri: Of course, we may go into something that can add, you know, a critical piece that we may, need.

Sagi Niri: But again, it will be a small acquisition or an IT acquisition in order to make a fast, progress instead of develop it by ourselves.

Sagi Niri: But again, we are not actively engaged in any M&A and we are not looking actively for, any M&A.

Sagi Niri: You are welcome.

Speaker Change: Our customers highly value these too.

Sagi Niri: We think that we have, you know, all the parts we need.

Sagi Niri: And it's now only about going to offense, execute, and scaling our numbers up.

Ofer Druker: It has been adopted by important new partners like AG and SegWit, who are using it to enhance, insights for them and their customers, and is also attracting significant interest from other major players in the industry.

Operator: Your next question comes from the line of Mark Kelly from Stifel.

Speaker Change: It is being adopted by important new partners like <unk>.

Speaker Change: Using it.

Operator: Please go ahead.

Speaker Change: His insights for them and their customers and is also attracting significant interest from other major players in the industry.

Mark Kelly: Great.

Ofer Druker: Additionally, customers can also take advantage of our robust TV intelligence solutions, which, have the ability to meaningfully enhance their CTV targeting and measurement.

Mark Kelly: Thank you.

Speaker Change: Have you seen any customers can also take advantage of our robust TV intelligence solutions, which have the ability to meaningfully enhance their CTV is targeting and measurement.

Mark Kelly: Good morning, everyone.

Ofer Druker: Our full suite of data capabilities is unique to Nexxen and provides operational, performance, and economic benefits for our partners.

Mark Kelly: I want to ask you about just BTV, bigger picture.

Mark Kelly: Are you seeing more, you know, biddable, open programmatic transactions or is it still primarily, private marketplace deals?

Speaker Change: Our full suite of data capabilities unique to exit and provides operational performance and economic benefits for our funds.

Mark Kelly: And then second, you know, can you maybe expand a bit on the commerce media strategy over, the long term?

Mark Kelly: Is that more as like a data strategy or is it going to be data paired with, you know, your ability to buy across, you know, disparate, you know, commerce media and retail media networks?

Mark Kelly: Any help there would be great.

Ofer Druker: Within Nexxen Data Platform, we also launched our unified entity graph in Q2, which combines multiple identifiers into a merge graph, enabling increased scale and better targeting capabilities. While Google has pivoted from full cookie duplication to an opt-in approach, our graph better positions Nexxen and its customers for changes in identity and privacy regardless. We were well positioned for cookie duplication, but Google's recent decisions reduce risk and remove an industry overhead. That said, we continue to impress the industry's needs for alternative ID solutions like ours, and our domestic identity strategy hasn't changed in wake of Google's decision, nor is our preparedness for their evolving approach.

Ofer Druker: Within Nexxen Data Platform, we also launched our Unified Identity Graph in Q2, which combines, multiple identifiers into a merged graph, enabling increased scale and better targeting capabilities.

Operator: Thank you.

Speaker Change: We see an excellent data platform. We also launched our unified entity graph in Q2, which combined would be Paul identifiers into a managed growth.

Ofer Druker: I will start with your second question about the usage of data with retail media, and in general.

<unk> increased scale and better targeting capabilities.

Ofer Druker: So we are not trying to become like traders in data in general, but we are utilizing data in two elements. One of them is on the DSP side in order to enable better targeting for advertisers in order to reach better results.

Ofer Druker: And usually what we do is we tie our ability to provide data to people's spend moving to our platforms and to other platforms from a technology perspective and our platform from a media perspective, which of course contributes to us meaningfully.

Ofer Druker: While Google has pivoted from full cookie duplication to an opt-in approach, our graph, better positions Nexxen and its customers for changes in identity and privacy, regardless.

Ofer Druker: So this is something that we are putting FSRs for a long time on the advertiser side.

Speaker Change: While Google has pivoted from full cookie deprecation to an.

Ofer Druker: Also for publishers, publishers started to use data in a very meaningful manner in order to upgrade their capabilities to sell not media but audiences.

Speaker Change: Opt in approach our graph better positions nexsan and discuss the risk for changes in identity and privacy regardless.

Ofer Druker: We were well-positioned for cookie duplication, but Google's recent decision reduces risk, and removes an industry overhang.

Speaker Change: We are well positioned for cookie deprecation, so Google recent decision reduces risk and removes any industry overhang.

Ofer Druker: That said, we continue to impress the industry's need for alternative ID solutions like ours, and our agnostic identity strategy hasn't changed in the wake of Google's decision, nor has our preparedness for their evolving approach.

That said, we continue to embrace the industry's need for alternative IV solutions like ours.

Speaker Change: We will seek identity strategy Hasnt changed in Waco, Google decision, nor is our preparedness for the reporting approach.

Ofer Druker: We have also researched further our ID graphs capabilities by partnering with Experience to bring in BII data, which helps customers reduce costs and audience loss in the data onboarding process. Elf advertisers are now seeking to partner with our data platform, including our ID graphs, as these solutions enabled them to extract greater value from their budgets, reach a wider audience, optimize returns, and remain prepared for identity changes. Our data platform has already attracted key new partners to Nexxen, while unlocking new data licensing and commerce media opportunities, and we expect it will serve as a long-term growth driver and differentiator.

Ofer Druker: We have also recently furthered our ID graph's capabilities by partnering with Experian to, bring in PII data, which helps customers reduce cost and audience loss in the data onboarding process. Advertisers are now seeking to partner with our data platform, including our ID graph, as these solutions enable them to extract greater value from their budgets, reach a wider audience, optimize returns, and remain prepared for identity changes.

Speaker Change: We have also recently further IV graph capabilities by partnering with experience to bring in.

Speaker Change: Doctor, which helps customers reduce cost and audience slow in that that the onboarding process.

Ofer Druker: And we see this trend growing and we want of course to be part of that because we believe in the ability to generate meaningful revenues from the combination of data and media.

Speaker Change: And both of those are now seeking to partner with our data platform, including I'd graph.

Speaker Change: These solutions enable them to extract greater value from new budgets, reaching a wider audience optimize returns and remain prepared for identity changes.

Ofer Druker: Our data platform has already attracted key new partners to Nexxen while unlocking new, data licensing and commerce media opportunities, and we expect it will serve as a long-term growth driver and differentiator. As a direct byproduct of our data platform and identity graph launch in Q2, TechWell, selected Nexxen as its edtech and data partner, and the relationship is off to a great start. The partnership enables TechWell Marketing Cloud clients to utilize Nexxen data platform, to onboard and enhance their customer data, improve targeting and planning efforts, and extend audience reach across formats and devices.

Ofer Druker: So that's one thing that we are doing.

Speaker Change: Our data platform has already attracted key new partners to Nixon, while unlocking viewed that licensing communist media opportunities and.

Ofer Druker: In some cases we can sell also just data, but it will not be the majority of the revenues that we will generate from that activity.

Ofer Druker: And we believe that the major thing will come when we will basically merge it or connect it to media.

Speaker Change: We expect it will serve as a long term growth driver and differentiator.

Ofer Druker: On the question of CTV, if you can refine your question, it would be great.

Ofer Druker: As a direct byproduct of our data platform and identity graph launch in Q2, Techwell selected Nexxen as its attack and data partner, and their relationship is off to a great start. The partnership in AWS Techwell Marketing Cloud Clients to utilize Nexxen data platform to onboard and enhance their customer data, improve targeting and planning efforts, and extend audience reach across formats and devices. Techwell's clients can then seamlessly activate this in-reach data in campaigns that goes next and platform to improve return on expanding. Since beginning the relationship, we have led training and education sessions with Techwell employees and customers to accelerate the partnership.

Mark Kelly: Just for me to understand what you are trying to, me to answer about.

As a direct byproduct of our data platform and identity graph launched in Q2.

Mark Kelly: Yeah, of course.

Speaker Change: Selected nextgen.

Speaker Change: And Thats a partner and their relationship is off to a great start.

Mark Kelly: Sure.

Speaker Change: The partnership enables segment marketing cloud clients to utilize nexsan desktop platform to onboard and enhanced customer data improved targeting and planning efforts and extent audience reach across formats and devices.

Operator: Yeah, I guess in terms of how CTV inventory is bought today, are, you seeing a shift towards more biddable and kind of open programmatic or is it still private marketplace direct deals that you are seeing primarily today?

Ofer Druker: Thank you.

Ofer Druker: TechWell's clients can then seamlessly activate this enriched data in campaigns across Nexxen, platforms to improve returns on ad spending. Since beginning the relationship, we have led training and education sessions with TechWell, employees and customers to accelerate the partnership benefit. As the partnership continues to scale, we are optimistic our solutions will not only, enhance Tegwell's customers' results, but also drive increased revenue opportunities for both companies over time.

Speaker Change: <unk> clients can then curiously activate this enrich SASSA in comparing that growth and excellent platform to improve retail.

Speaker Change: Thank you.

Ofer Druker: I think it's a mix.

Speaker Change: Since the beginning of the relationship we have led training and education sessions with stable employee and customers to accelerate the partnership benefits.

Ofer Druker: I think that advertisers are closing deals with publishers and they want to run one-to-one, as they call it, which is they need the pipes in order to do that and they can use our technology in order to do it in a very good manner.

Ofer Druker: Or sometimes they want to buy programmatically.

Ofer Druker: We are of course, we are enabling, we are able to do both and we can enable our partners to buy one-on-one or to buy programmatically.

Ofer Druker: In general, I think that the market is opening up. You see a lot of new publishers coming into the market, increasing their inventory and opportunities from one side.

Ofer Druker: On the other side, you see more and more advertisers that are interested to create one-on-one deals with certain publishers in order to buy their media.

Ofer Druker: Technology.

Ofer Druker: And of course, we respect both.

Ofer Druker: As the partnership continues to scale, we're optimistic our solutions will not only improve an established customer's results, but also drive increased revenue opportunities for both companies over time.

Ofer Druker: It's hard for me to say which one is bigger right now because I think that even that we are a major player in CTV, it's very hard to say the full picture because right now we see that we see growth.

As the partnership continues to scale well.

Ofer Druker: We see a lot of programmatic, of course, activity, but we start to see growth on one-on-one when people are basically using our technology in order to serve campaigns on publishers that they want. They can ask to buy just these specific publishers or they have a deal, with these publishers that they can utilize throughout.

Speaker Change: Optimistic our solutions will not only enhance segments customers results, but also drive increased revenue opportunities for both companies over time.

Mark Kelly: Great.

Ofer Druker: Thank you, Ofer.

Ofer Druker: Our data platform launch also led to Nexxen being selected as the first-to-market audience extension partner for United Airlines, Commerce Media Network, Connective Media. This partnership unlocks new revenue growth opportunities for Nexxen in Commerce Media, where we weren't active previously. Connective Media is leveraging Nexxen data platforms from boarding capabilities to extend travel and transaction data from United Miles Plus program to partner leveraging Nexxen for activation. United Miles Plus program reflects a massive database that is now accessible on Nexxen data platform and able to serve our advertisers' customers with the guidance and cooperation of connective media. Through the partnership, brands can unlock new off-site media network to revenue streams, while Nexxen's advertisers clients can leverage the data to efficiently extend audience reach.

Ofer Druker: Our data platform launch also led to Nexxen being selected as the first-to-market audience, extension partner for United Airlines' commerce media network, Kinective Media. This partnership unlocks a new revenue growth opportunity for Nexxen in commerce media, where we weren't active previously. Kinective Media is leveraging Nexxen data platforms' onboarding capabilities to extend, travel and transaction data from United MileagePlus program to partner leveraging Nexxen for activation.

Operator: You're welcome.

Speaker Change: All of that that platform launch also led to <unk> being selected as the first to market audience extension partners.

Speaker Change: Neither the airlines Cumulus media network connective medium.

Speaker Change: This partnership unlock new revenue growth opportunity for <unk> E Commerce media, where we werent active previously.

Speaker Change: <unk> media is leveraging next gen data platforms onboarding capabilities to extend travel and transaction data from United minus plus program to partner leveraging Nexen full activation.

Ofer Druker: United MileagePlus program reflects a massive database that is now accessible on Nexxen, data platform and able to serve our advertisers' customers with the guidance and cooperation of Kinective Media.

Speaker Change: United Mileage plus program reflects our massive database that is now accessible on excellent data platform and able to serve our advertisers customers with their guidance and cooperation of connective media.

Ofer Druker: Through the partnership, brands can unlock new off-site media network revenue streams, while Nexxen's advertisers' clients can leverage the data to efficiently extend audience reach.

Through the partnership grants can unlock new Offsite media network revenue streams, while nexus advertisers clients can leverage the data to efficiently extend audience reach.

Ofer Druker: Nexxen data platform is also driving new data licensing opportunities. Our platform features access to robust sources of advanced TV data for targeting and measurements, highlighted by exclusive access to global ACM data through our partnership with VIDA, the CTV operating system for iTunes and Tushima. VIDA growing global reach enable us to recently enter into global ACM data licensing partnership with the trade-offs, creating new revenue opportunities and boosting our industry organization. Nexxen is providing the trade-esk ACM data segments to offer their clients advanced cross-channel and cross-device targeting capabilities, which are now available on their self-service platform for activation in the US, UK, Canada, and Australia.

Ofer Druker: Nexxen data platform is also driving new data licensing opportunities.

Speaker Change: Next is that the platform is also driving new data licensing opportunities.

Ofer Druker: Our platform features access to robust sources of advanced TV data for targeting and measurement, highlighted by exclusive access to Global Asia data through our partnership with Vida, the CTV operating system for ICES and Toshiba.

Speaker Change: Our platform feature access to robust sources of advanced television data for targeting and measurement highlighted by exclusive access to global ACO data through our partnership with visa the CTV operating system for licenses with chemo.

Ofer Druker: Vida's growing global reach enables us to recently enter into Global Asia data licensing, partnership with Atreidesk, creating new revenue opportunities and boosting our industry of mission.

Speaker Change: With a growing global reach enable us to recently enter into global ACI licensing partnership with its ratings, creating new revenue opportunities and boosting our industry recognition.

Ofer Druker: Nexxen is providing Atreidesk's ACR data segments to offer their clients advanced cross-channel, and cross-device targeting capabilities, which are now available on their self-service platform for activation in the U.S., U.K., Canada, and Australia.

Next thing is providing the ACR data segments to offer their clients advance cross channel and cross device targeting capabilities, which are now available on their self service platform for a differentiated the U S U K, Canada and Australia.

Ofer Druker: We are in licensing discussions with a large number of other industry players, and we are optimistic about achieving additional new partnerships, particularly around the commission and ACM data, given the scarcity of TV data in markets outside the US. We continue to believe data licensing is a huge long-term growth of utility for Nexxen.

Ofer Druker: We are in licensing discussions with a large number of other industry players, and we are, optimistic about achieving additional new partnerships, particularly around international, ACR data, given the scarcity of TV data in markets outside the U.S.

Speaker Change: We are in licensing discussions with a large number of other industry players and we are optimistic about achieving additional new partnership, particularly around the technician and ACL about that given the scarcity of EBITDA in markets outside the U S.

Ofer Druker: We continue to believe data licensing is a huge long-term growth opportunity for Nexxen.

Speaker Change: We continue to believe that our licensing is a huge long term growth opportunity for Maxim.

Ofer Druker: We also recently released data powers tools for political advertisers, enabling them to leverage Nexxen's suite of tech and measurement capabilities to gain different campaign insights and maximize audience reach to enhance results and fully capitalize on the US election cycle. New solution includes political district targeting and Nexxen's discovery-powered political dashboard for providing condolence, issue and sentiment analysis and the ability to retarget costume audiences that has previously been exposed to political ads through a partnership with them.

Ofer Druker: We also recently released data power tools for political advertisers, enabling them to, leverage Nexxen's suite of tech and measurement capabilities to gain deeper campaign insights and maximize audience reach to enhance results and fully capitalize on the U.S. election cycle.

Speaker Change: We also recently released data powered tools for political advertisers, enabling them to leverage and excellent sweep effects and measurement capabilities to gain different campaign insights and maximize audience reach to enhance results and fully capacity lies with the U S election cycle.

Ofer Druker: New solutions include political district targeting, a Nexxen discovery-powered political dashboard, providing candidates issue and sentiment analysis, and the ability to retarget custom audiences that have previously been exposed to political ads through a partnership with Nexxen.

Speaker Change: <unk> solution includes political history targeting an excellent discovery powered political basketball, providing candidates issue and sentiment analysis and the ability to retarget custom audiences.

Speaker Change: Previously been exposed to political as through a partnership with Commscope.

Ofer Druker: In Q2, we didn't observe significant political ad spending on our platform, however, in Q3 we are seeing increased demand and expect this to accelerate in Q4 as we get closer to Election Day. Given our enhanced suite of tools, new partnerships and increased sales focus on the verticals.

Ofer Druker: School. In Q2, we didn't observe significant political expanding on our platforms. However, in Q3, we are seeing increased demand and expect this to accelerate in Q4, as we get to also the election day. Given our enhanced suite of tools, new partnerships, and increased sales focus on the verticals. In Q2, we added 86 new actively spending first-time advertising customers. This included 16 new enterprise sales service customers and two new independent agencies leveraging Nexxen sales service offerings. We also added 78 new supply partners in Q2, including 74 in the US. In all, Q2 was a great quarter that indicates we have reached an inflection point in the business following the transformational milestones we have achieved over nearly the last two years.

In Q2, we didn't observe significant political AD spending on our platform.

Speaker Change: Over in Q3, we are seeing increased demand.

Speaker Change: This to accelerate in Q4, as we get closer connection.

Speaker Change: Do you guys already enhanced suite of tools, new partnership and increased sales focus on diversity.

Ofer Druker: In Q2, we added 86 new actively spending first-time advertiser customers. This included 60 new enterprise self-service customers and two new independent agencies leveraging Nexxen's self-service offering. We also added 78 new supply partners in Q2, including 74 in the U.S.

Speaker Change: In Q2, we added 86, new actively spending first time emphasize with customers. This included 50, new enterprise self service customers and two new independent agencies, leveraging Nexus self service offerings.

Speaker Change: We also added 78, new supplier partners in Q2, including 74 in the U S.

Ofer Druker: In all, Q2 was a great quarter that indicates we have reached an inflection point in the business following the transformational milestones we have achieved over nearly the last two years.

Speaker Change: In Q2 was a great quarter that indicates we have reached an inflection point in the business. Following the transformational milestones we have achieved nearly two.

Speaker Change: Two years.

Ofer Druker: Our strategy to connect our cutting-edge data platform to our flexible, unified, full-stack ad tech solution to drive better customer outcomes is working and enabling us to win wallets and market share through increased spending and product adoption.

Ofer Druker: Our strategy to connect our cutting-edge data platform to our flexible, unified, full-stack ed tech solution to drive better customer outcomes is working and enabling us to win wallets and market share to increase spending and product adoption. It is also empowering us to gain traction with the world's top-est tech companies, agencies, and brands. On the sales price, we are continuing to focus on generating increased customer spending and full-stack product adoption, attracting major new partners to our platform, deepening relationships with streaming players, and scaring our data opportunities. From a product perspective, we will also continue to invest in innovation and focus on expanding our GNI and machine learning utilization.

Speaker Change: Our strategy to connect our cutting edge data platform to our flexible unified pool stick ethics solution to drive better customer outcome is working.

Speaker Change: And enabling us to win wallet and market share through increased spending in product adoption.

Ofer Druker: It is also empowering us to gain traction with the world's top ad tech companies, agencies, and brands.

Speaker Change: It is also empowering us to gain traction with the worlds top SBA companies agencies and brands.

Ofer Druker: On the sales front, we are continuing to focus on generating increased customer spending and full-stack product adoption, attracting major new partners to our platform, deepening relationships with streaming players, and scaling our data opportunities.

Speaker Change: On the sales products, we are continuing to focus on generating increased customer spending in full stack product adoption.

Speaker Change: <unk> major new partners to our platform.

Speaker Change: Trading relationship with streaming players and scaling that opportunities.

Ofer Druker: From a product perspective, we will also continue to invest in innovation and focus on expanding our Gen AI and machine learning utilization. We believe Gen AI will advance the effectiveness of our data, audience, insights, and activation tools, as well as our health features. This is expected to benefit our customers, increase our platform tech and data advantages, and create efficiencies.

Speaker Change: From a product perspective, we will also continue to invest in innovation and focused on expanding.

Speaker Change: Jamie.

And machine learning utilization.

Ofer Druker: We believe GNI will advance the effectiveness of our data, audience, insights, and activation tools, as well as our health features. This is expected to benefit our customers, increase our platform tech and data advantages, and create efficiencies.

Speaker Change: We believe that AI will advance the effectiveness of our DARPA audience insights and activation tools as well as our else features.

Operator: Welcome to Nexxen's second quarter earnings call.

Operator: Welcome to Nexxen's second quarter earnings call. At this time, all participants are enabled to listen on the mode, with a question and answer session to follow at the end of the presentation. This call is being recorded in a replay of the day's call will be made available on the Nexxen's investor relations website.

This is expected to benefit our customers increased our platform tech and data advantages and create efficiencies.

Operator: At this time, all participants are enabled to listen on the mode, with a question and answer session to follow at the end of the presentation. This call is being recorded in a replay of the day's call will be made available on the Nexxen's investor relations website.

Ofer Druker: We remain excited for anticipated catalysts in the back half of 2024 and beyond, including our recent partnerships generating increased revenues, data licensing revenue scaling, and potential modest tailwinds from the U.S. election cycle.

Ofer Druker: Really main, excited for when dissipated catalysts in the back half of 2024 and beyond, including our recent partnerships generating increased revenues, data licensing revenue scaling, and potential modest tailwinds from the U.S. election cycle. I am more confident than ever with the right people and solutions in place to drive continuous execution, capitalize on our long-term growth of creativity, and realize our vision of becoming the industry go-to strategic tech and data partners.

We remain excited for anticipated catalysts in the back half of 2024 and beyond including our recent partnership generating increased revenues that licensing revenue scaling and potential modest tailwind.

Operator: I will now hand the call over to Bill Eckert, vice-president of investor relations for introductions and the reading of the safe harbor statement.

Billy Eckert: I will now hand the call over to Bill Eckert, vice-president of investor relations for introductions and the reading of the safe harbor statement. Billy, please go ahead. Thank you, operator. Good morning everyone and welcome to Nexxen's second quarter earnings call. During today's call, we will discuss our financial and operating results for the three and six months ended June 30th, 2024, as well as our forward-looking guidance. Within the front of today's call are Ofer Druker, Nexxen's chief executive officer, and Sagi Niri, the company chief financial officer.

Operator: Billy, please go ahead.

Speaker Change: From the U S and excellent scientists.

Ofer Druker: I'm more confident than ever we have the right people and solutions in place to drive continuous execution, capitalize on our long-term growth opportunity, and realize our vision of becoming the industry's goal two strategic tech and data partner.

Billy Eckert: Thank you, operator.

Speaker Change: I am more confident than ever.

Speaker Change: The right people and solutions in place to drive continued execution capitalize with our long term growth opportunity and realize our vision of becoming the industry goes through strategic tech and data partner with.

Billy Eckert: Good morning everyone and welcome to Nexxen's second quarter earnings call.

Billy Eckert: During today's call, we will discuss our financial and operating results for the three and six months ended June 30th, 2024, as well as our forward-looking guidance.

Ofer Druker: With that, I'm happy to turn the call over to Sagi to discuss our financial results and outlook.

Operator: As there are no further questions, at this time, I would now like to turn the call over back to Mr. Ofer Druker for closing remarks.

Sagi Niri: With this, I am happy to turn the call over to investigate to distract our financial results and outlook.

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

Billy Eckert: This morning, we issued a press release which you can access on our IR website at investors.nexxen.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 at forward-looking statements. These statements include, without limitation, statements and projections regarding our anticipated future financial and operating performance, market opportunity, growth prospects, strategy, financial outlook, partnerships, and anticipated benefits related to those partnerships, and forward-looking views on macroeconomic and industry conditions, as well as any other statements concerning the expected development, performance, and market share, or competitive performance relating to our products or services.

Sagi Niri: Thank you, offer. In Q2, we generated contribution extract of $83.1 million, achieving 4% growth from Q2 2023 and 19% growth from Q1 2024. Programmatic revenue was $78.6 million in Q2, reflecting 3% growth from Q2 2023 and 20% growth from Q1 2024, while contribution extracts from our non-programmatic business line was up slightly year-over-year in Q2 2024. Growth in Q2 was growth-based, driven by enhanced sales execution, scaling partnerships, and improved market conditions. We observed trends in CQV, video, mobile display, data products, and P&T's, and across our finance, sales, retail, government, and automotive verticals.

Sagi Niri: Thank you, Ofer.

Ofer Druker: Thank you.

Speaker Change: Thank you all fir in Q2, we generated contribution ex back of $83 $1 million, achieving 4% growth from Q2, 2023, and 19% growth from Q1 2024.

Sagi Niri: In Q2, we generated contribution EXAC of $83.1 million, achieving 4% growth from Q2 2023 and 19% growth from Q1 2024. Programmatic revenue was $78.6 million in Q2, reflecting 3% growth from Q2 2023 and 20% growth from Q1 2024, while contribution EXAC from our non-programmatic business line was up slightly year over year in Q2 2024.

<unk>: Programmatic revenue was $78 6 million in Q2, reflecting 3% growth from Q2, 2023, and 20% growth from Q1 2024, while contribution ex Tac from our non programmatic business line was up slightly year over year in Q2 2024.

Sagi Niri: Growth in Q2 was broad-based, driven by enhanced sales execution, scaling partnerships, and, improved market conditions.

Ofer Druker: So, as we indicated also in our PR and our message, after a long period of time of working very hard in order to integrate the companies, the company that we acquired Amobi into our company, to match the sales teams like was mentioned here in our conversation, to build a unified offering and messaging, and basically to be able to package better.

Billy Eckert: 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 on certainties and other factors that may cause our actual results to differ materially from those implied by these forward-looking statements, including unexpected changes in our business, or unexpected changes in macroeconomic or industry conditions. More detailed information about these risk factors and additional risk factors are set forth in our filings with the U.S. Securities and Exchange Commission, including but not limited to, those risks and uncertainties listed in the section entitled risk factors in our most recent annual report on form 20F.

Ofer Druker: And after the rebranding process that we did last year that helped us a lot and helped, people to understand better what we are offering, we see very good improvement in the parameters of the performance of the company from almost every aspect that we can look at. And we are happy about it, of course, because we worked for a long time very hard in order to create this situation.

<unk>: Growth in Q2 was broad based driven by enhanced sales execution scaling partnerships and improved market conditions.

Sagi Niri: We observed strength in CTV, video, mobile, display, data products, and PMTs, and across, our finance, health, retail, government, and automotive verticals.

Ofer Druker: And we are really excited and we believe in what we are doing.

<unk>: We observed strength in CTV video mobile display that's a product in PMT and across our finance health retail government and automotive vertical on.

Sagi Niri: On the opposite side, we observed the era of a real decrease in our travel and technology verticals in Q2. CTV was a bright spot in Q2 as we generated $28.2 million in CTV revenue, reflecting 14% growth from Q2 2023 and 50% growth from Q1 2024. This was the second best CTV revenue quarter in Nexxen's history. A CTV revenue represented 36% of programmatic revenue in Q2 2024, up from 32% in Q2 2023. CTV revenue growth was driven by a growth customer shift into our premium CTV solution, and our partnership with Alfonso and LG Electronics beginning to scale.

Sagi Niri: On the opposite side, we observed the year-over-year decrease in our travel and technology verticals, in Q2.

<unk>: On the opposite side, we observed the year over year decrease in our travel and technology verticals in Q2.

Sagi Niri: CTV was a bright spot in Q2, as we generated $28.2 million in CTV revenue, reflecting 14% growth from Q2 2023 and 50% growth from Q1 2024.

Ofer Druker: We still hold our strategy, which is around CTV, video, and enhanced data that is basically unifying our platform and touching every point of the journey. And I think that we are equipped with the right tools and partnership in order to be a major player in this industry around the elements that I just mentioned, which is video, CTV, and data.

Ofer Druker: So, thank you, everyone, and hope to see you soon again.

<unk>: <unk> was a bright spot in Q2, as we generated $28 $2 million in CTV revenue, reflecting 14% growth from Q2, 2023, and 50% growth from Q1 2024.

Billy Eckert: Next, it 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. 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.

Sagi Niri: This was the second-best CTV revenue quarter in Nexxen's history, as CTV revenue represented, 36% of programmatic revenue in Q2 2024, up from 32% in Q2 2023. CTV revenue growth was driven by a broad customer shift into our premium CTV solution and our, partnership with Alfonso and LG Electronics, beginning to scale.

This was the second best CTG revenue quarter in <unk> history at CTV revenue represented 36% of programmatic revenue in Q2 2024 up from 32% in Q2 2023.

CTV revenue growth was driven by a growth customer shift into our premium CTV solution and our partnership with Alfonzo in LG electronics beginning to scale.

Billy Eckert: Within the front of today's call are Ofer Druker, Nexxen's chief executive officer, and Sagi Niri, the company chief financial officer.

Ofer Druker: At this time, it is my pleasure to introduce overdruker CEO of Nexon. Over, please go ahead. Thank you, Billy. In the second quarter, we've benefited from significantly improved execution while taking the important steps to enhance the strength of our platform and enhance our sales and marketing strategy to try further momentum. Our improved ability to execute enabled us to generate strong performance across the business, resulting in record Q2 contribution extract, programmatic revenue, and CTV revenue, alongside significantly extended adjusted data.

Billy Eckert: This morning, we issued a press release which you can access on our IR website at investors.nexxen.com.

Billy Eckert: 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.

Billy Eckert: We advise caution and reliance at forward-looking statements. These statements include, without limitation, statements and projections regarding our anticipated future financial and operating performance, market opportunity, growth prospects, strategy, financial outlook, partnerships, and anticipated benefits related to those partnerships, and forward-looking views on macroeconomic and industry conditions, as well as any other statements concerning the expected development, performance, and market share, or competitive performance relating to our products or services.

Sagi Niri: In market share projects, US CTV advertising spend will grow at a roughly 14% Kager over the next several years, fuelled by billions of dollars of linear budget shifting to advanced TV, new advertisers are migrating to streaming as consumer and services increasingly embrace ad supported content, and life port going digital. We believe our long-standing streaming DNA, TV data capabilities and solutions, access to premium supply and flexible unified platform, designed to enhance CTV results for customers across the ecosystem, uniquely positions us to capitalize on this long-term growth opportunity and gain market share. Video revenue continued to account for most of our programmatic revenue, expanding to 74% in Q2 2024 from 71% in Q2 2023.

Sagi Niri: E-Marketer project, U.S. CTV advertising spend will grow at roughly 14% CAGR over the next, several years, fueled by billions of dollars of linear budget shifting to advanced TV, new advertiser migrating to streaming as consumer and services increasingly embrace ad-supported content, and live sports going digital.

<unk>: E Marketer project UFC TV advertising spend will grow as the roughly 14% CAGR over the next several years.

Speaker Change: Billions of dollars of Nino budget shifting to advanced television, new advertiser migrating to streaming as consumer and services increasingly in great AD supported content and live sports going digital.

Billy Eckert: All forward-looking statements are based on information available to us as of the date of this call.

Sagi Niri: We believe our longstanding streaming DNA, TV data capabilities and solutions, access, to premium supply and flexible unified platform, designed to enhance CTV results for customers across the ecosystem, uniquely positions us to capitalize on this long-term growth opportunity and gain market share.

Speaker Change: We believe our long standing dreaming, DNA TV data capabilities and solution access to premium supply and flexible unified platform designed to enhance CTV results for customers across the ecosystem uniquely positions us to capitalize on this long term growth opportunity.

Billy Eckert: These statements involve known and unknown risks on certainties and other factors that may cause our actual results to differ materially from those implied by these forward-looking statements, including unexpected changes in our business, or unexpected changes in macroeconomic or industry conditions. More detailed information about these risk factors and additional risk factors are set forth in our filings with the U.S. Securities and Exchange Commission, including but not limited to, those risks and uncertainties listed in the section entitled risk factors in our most recent annual report on form 20F.

Ofer Druker: Our rebrand to Nexon was clearly a catalyst that contributes to our better performance Q2, and is continuing to position us for new and expanded partnership with industry leaders. The rebrand and driven greater recognition in the market clarify the holistic value proposition of our full stack offering and use a better understanding of how Nexxen addresses the industry's biggest challenges, including maximizing the value of data to generate better results and returns to customers.

Billy Eckert: Next, it 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: And gain market share.

Sagi Niri: Video revenue continues to account for most of our programmatic revenue, expanding to, 74% in Q2 2024, from 71% in Q2 2023. This year-over-year increase was driven by video revenue strength, fueled primarily by, CTV, outpacing programmatic revenue growth.

Speaker Change: Video revenue continued to account for most of our programmatic revenue expanding to 74% in Q2 2024 from 71% in Q2 2023.

Sagi Niri: This year-over-year increase was driven by video revenue strength, fuelled primarily by CTV outpacing programmatic revenue growth. We continue to anticipate outside video revenue growth over time due to our strategic video and CTV focus and capabilities and believe we are among the most heavily indexed SAC companies to video on the open internet. Contribution extracts from this play grew 14% year-over-year in Q2, while contribution extracts from mobile increased 5%. Contribution extracts from data products increased 57%, and contribution extracts from TMPs increased 29%. Our ability to offer a variety of software solutions across formats and devices is a tremendous advantage, which enables us to retain customers, attract new partners, and proactively adapt to changing market conditions and the industry's diverse and evolving needs.

Speaker Change: This year over year increase was driven by video revenue strength.

Billy Eckert: 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.

Ofer Druker: Nexxen is placing data firmly in the center of its strategy. Data has historically given Nexxen an advantage over other ethical principles, as our full stack platform has been unified by robust data management platform that integrates directly with our DSP and SSD to improve activation. Through the integration of a mobile, we were able to improve our data capabilities further by integrating some of our mobile products into our ecosystem. Today, on top of our data reach activation elements, we offer other unique data solutions that provide comprehensive audience segmentation insights and data enrichment capabilities, as well as an ID graph.

Speaker Change: We'll primarily by CTV outpacing programmatic revenue growth.

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.

Sagi Niri: We continue to anticipate outsized video revenue growth over time, due to our strategic video, and CTV focus and capabilities, and believe we are among the most heavily indexed asset companies to video on the open Internet.

Speaker Change: We continue to anticipate outsized video revenue growth over time due to our strategic video and CTV focus and capabilities and believe we are among the most heavily index at the companies two video on the open Internet.

Ofer Druker: At this time, it is my pleasure to introduce overdruker CEO of Nexon.

Speaker Change: Contribution ex back from display grew 14% year over year in Q2, while contribution ex Tac from mobile increased 5%.

Sagi Niri: Contribution ex-tax from display grew 14% year-over-year in Q2, while contribution ex-tax, from mobile increased 5%. Contribution ex-tax from data products increased 57%, and contribution ex-tax from PMPs increased, 29%.

Ofer Druker: Over, please go ahead.

Speaker Change: Contribution ex Tac from data products increased 57% and contribution ex Tac from Pmt's increased 29%.

Sagi Niri: Our ability to offer a variety of software solutions across formats and devices is a, tremendous advantage which enables us to retain customers, attract new partners, and proactively adapt to changing market conditions and the industry's diverse and evolving needs.

Our ability to offer a variety of software solution across formats and devices.

Speaker Change: Tremendous advantage, which enable us to retain customers.

Ofer Druker: Thank you, Billy.

Ofer Druker: Since completing the integration, we've also been able to free up resources to invest more into driving innovation. This innovation has enabled the recent release of many of the data capabilities that have helped Nexxen gain greater recognition and win new partnerships with some of the leading forces in the industry. Our data capabilities are serving as a massive differentiator for us and as a base for some of this important new partnership, and we believe there will continue to benefit Nexxen and its customers over the immediate and long term.

Speaker Change: <unk>, new partners and proactively adapt to changing market condition and the industry is diverse and evolving needs.

Ofer Druker: In the second quarter, we've benefited from significantly improved execution while taking the important steps to enhance the strength of our platform and enhance our sales and marketing strategy to try further momentum. Our improved ability to execute enabled us to generate strong performance across the business, resulting in record Q2 contribution extract, programmatic revenue, and CTV revenue, alongside significantly extended adjusted data.

Sagi Niri: Being able to service customers across formats and devices also allows us to capitalize on a larger total addressable market, while our data solutions are creating a flywheel effect that is opening new opportunities and attracting more spends to our flux.

Sagi Niri: Being able to service customers across formats and devices also allows us to capitalize on, a larger total addressable market, while our data solutions are creating a flywheel effect that is opening new opportunities and attracting more spend to our platform.

Speaker Change: Being able to service customers across formats and devices also allows us to capitalize on a larger total addressable market. While our data solution are creating a flywheel effect that is opening new opportunities in attracting more spend to our platform.

Ofer Druker: Our rebrand to Nexon was clearly a catalyst that contributes to our better performance Q2, and is continuing to position us for new and expanded partnership with industry leaders.

Sagi Niri: In Q2, we generated adjusted EBITDA of $26.8 million, which reflected a 27% year-over-year, increase from Q2, 2023, and a 126% increase from Q1, 2024.

Sagi Niri: Platform. In Q2, we generated adjusted EBITDA of $26.8 million, which reflected a 27 percent e-over-ear increase from Q2, 2023, and a 126 percent increase from Q1, 2024. Our adjusted EBITDA growth was a byproduct of higher contribution extract, improving cost efficiencies, and our platform models' ability to generate increasing degrees of operating leverage. Our adjusted EBITDA margin in Q2 increased to 32 percent on a contribution extract basis from 26 percent in Q2, 2023, and we remained confident in our ability to continue expanding our adjusted EBITDA margins over time. In Q2, we generated $20.9 million in S cash from operating activities, after generating $11.9 million in Q2, 2023.

Speaker Change: In Q2, we generated adjusted EBITDA of $26 8 million.

Speaker Change: Which reflected a 27% year over year increase from Q2, 2023, and a 126% increase from Q1 2024.

Ofer Druker: The rebrand and driven greater recognition in the market clarify the holistic value proposition of our full stack offering and use a better understanding of how Nexxen addresses the industry's biggest challenges, including maximizing the value of data to generate better results and returns to customers.

Ofer Druker: Data is present in every component of our offering and drive in ends outcome across all steps of our advertising and publisher customer's workflow. Our data sources and capabilities enable advertisers to better understand audiences and create valuable audience segments. Find and target likely to engage or buy customers across platforms and devices, maximize reach, boost return, and measure attractiveness. Our exclusive advanced TV data access and unique capabilities, alongside our premium supply source, our also materially enriching our customers advertising results across TV and other formats, and driving partners to increasingly choose to work with Nexxen.

Sagi Niri: Our adjusted EBITDA growth was a byproduct of higher contribution extracts, improving, cost efficiencies, and our platform model's ability to generate increasing degrees of operating leverage. Our adjusted EBITDA margin in Q2 increased to 32% on a contribution extract basis, from, 26% in Q2, 2023, and we remain confident in our ability to continue expanding our adjusted, EBITDA margins over time.

Speaker Change: Our adjusted EBITDA growth was a byproduct of ire contribution ex Tac improving cost efficiencies and our platform model the ability to generate increasing degrees of operating leverage.

Ofer Druker: Nexxen is placing data firmly in the center of its strategy. Data has historically given Nexxen an advantage over other ethical principles, as our full stack platform has been unified by robust data management platform that integrates directly with our DSP and SSD to improve activation. Through the integration of a mobile, we were able to improve our data capabilities further by integrating some of our mobile products into our ecosystem. Today, on top of our data reach activation elements, we offer other unique data solutions that provide comprehensive audience segmentation insights and data enrichment capabilities, as well as an ID graph.

Speaker Change: Our adjusted EBITDA margin in Q2 increased to 32% on a contribution ex Tac basis from 26% in Q2, 2023, and we remain confident in our ability to continue expanding our adjusted EBITDA margins over time.

Ofer Druker: Since completing the integration, we've also been able to free up resources to invest more into driving innovation. This innovation has enabled the recent release of many of the data capabilities that have helped Nexxen gain greater recognition and win new partnerships with some of the leading forces in the industry. Our data capabilities are serving as a massive differentiator for us and as a base for some of this important new partnership, and we believe there will continue to benefit Nexxen and its customers over the immediate and long term.

Sagi Niri: In Q2, we generated $20.9 million in net cash from operating activities, after generating, $11.9 million in Q2, 2023. As of June 13th, we had $151.9 million in net cash and $90 million undrawn on our revolving, credit facility, following the full repayment of our outstanding long-term debt in April.

Speaker Change: In Q2, we generated $29 million in net cash from operating activities, often generating $11 $9 million in Q2 2023.

Sagi Niri: As of June 13th, we had $151.9 million in S cash, a $90 million earned on our Revolving Relics Facility following the full repayment of our outstanding long-term debt in April. We also reported non-IFRS delusive earnings per ordinary share of 9 cents in Q2 2024, compared to 6 cents in Q2 2023. During Q2, we repurchased roughly 2.5 million ordinary shares through our completed $20 million repurchased program and newly launched $50 million program, reflecting an investment of 5.8 million pounds or $7.3 million. From March 1st, 2022, through June 30th, 2024, we invested around $119 million in our repurchased program, buying the roughly 28.3 million ordinary shares or 18.3 percent of shares outstanding.

Speaker Change: As of June 30, we had $151 $9 million and net cash of $19 million Undrawn on our revolving credit facility. Following the full repayment of our outstanding long term debt in acreage.

Ofer Druker: Data is present in every component of our offering and drive in ends outcome across all steps of our advertising and publisher customer's workflow.

Ofer Druker: As I mentioned, our data sources and capabilities have been key along the journey to attracting advertisers and publishers to engage with Nexxen, and the number of partners seeking to work with us is growing, particularly following the launch of our new robust Nexxen data platform in YouTube. Nexxen data platform combines and better unified all our data assets and applications, resulting in an unrivaled, full-text, end-to-end data offering that is strengthened our competitive positioning and amplify the effectiveness of our solutions.

Sagi Niri: We also reported non-IFRS diluted earnings per ordinary share of $0.09 in Q2, 2024, compared, to $0.06 in Q2, 2023.

Speaker Change: We also reported non <unk> diluted earnings per ordinary share of <unk> in Q2, 2024 compared to <unk> <unk> in Q2 2023.

Ofer Druker: Our data sources and capabilities enable advertisers to better understand audiences and create valuable audience segments. Find and target likely to engage or buy customers across platforms and devices, maximize reach, boost return, and measure attractiveness. Our exclusive advanced TV data access and unique capabilities, alongside our premium supply source, our also materially enriching our customers advertising results across TV and other formats, and driving partners to increasingly choose to work with Nexxen.

Sagi Niri: During Q2, we repurchased roughly $2.5 million ordinary shares through our completed $20, million repurchase program, a newly launched $50 million program, reflecting an investment of 5.8 million pounds, or $7.3 million. From March 1st, 2022 through June 30th, 2024, we invested around $119 million in our repurchase, program, buying back roughly 28.3 million ordinary shares, or 18.3% of shares outstanding.

Speaker Change: During Q2, we repurchased roughly $2 5 million ordinary shares through our completed $20 million repurchase program and newly launched $50 million program, reflecting an investment of $5 8 million pounds or $7 3 million.

Ofer Druker: As I mentioned, our data sources and capabilities have been key along the journey to attracting advertisers and publishers to engage with Nexxen, and the number of partners seeking to work with us is growing, particularly following the launch of our new robust Nexxen data platform in YouTube. Nexxen data platform combines and better unified all our data assets and applications, resulting in an unrivaled, full-text, end-to-end data offering that is strengthened our competitive positioning and amplify the effectiveness of our solutions.

Ofer Druker: Through Nexxen data platform, customers can now directly and securely unbolt first party data. After onboarding, customers can leverage Nexxen Discovery to create audiences, unlock insights and reach first-party data. Our customers highly value these two, because being adapted by important new partners like a G&S segment, we are using it to enhance insights for them and their customers and is also attracting significant interest from other major players in the industry. Additionally, customers can also take advantage of our vast TV intelligence solutions, which have the ability to minimcally enhance the CDV targeting its measurements.

Speaker Change: <unk> 2022 through June 32024, we invested around $119 million in our repurchase program buying back roughly $28 3 million ordinary shares or 18, 3% of shares outstanding.

Ofer Druker: Through Nexxen data platform, customers can now directly and securely unbolt first party data. After onboarding, customers can leverage Nexxen Discovery to create audiences, unlock insights and reach first-party data.

Ofer Druker: Our customers highly value these two, because being adapted by important new partners like a G&S segment, we are using it to enhance insights for them and their customers and is also attracting significant interest from other major players in the industry.

Sagi Niri: If shares remain at prices, the board believes reflected this come to fair value at the end of our current repurchased program, we will consider initiating a new one.

Sagi Niri: If shares remain at prices the Board believes reflect a discount to fair value at the end, of our current repurchase program, we will consider initiating a new one.

Speaker Change: It should remain at prices the board believes reflect the discount to fair value at the end of our current repurchase program, we will consider initiating a new one.

Sagi Niri: Finally, I'll turn to our outlook. For full years 2024, we are reaffirming our guidance for contribution extract in a range of approximately $340 to $345 million, adjusted evident of approximately $100 million, and for programmatic revenue to reflect approximately 90 percent of full years 2024 revenue. Our momentum from Q2 has carried over into Q3. We're seeing continued strength across our core growth drivers, solid spending trends, growing benefits from recently launched partnerships, increasing tightly demand and improved visibility, reinforcing our confidence in our ability to meet our guidance. As a result, we expect contribution extract and programmatic revenue acceleration in H2, with zero-vary growth anticipated in Q3, Q4, H2, and full year 2024.

Sagi Niri: Finally, I'll turn to our outlook.

Ofer Druker: Thank you very much.

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

Sagi Niri: For full year 2024, we are reaffirming our guidance for Contribution X-DAC 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. Core momentum from Q2 has carried over into Q3. We're seeing continued strength across our core growth drivers, solid spending trends, growing benefits from recently launched partnerships, increasing pipeline demand, and improved visibility, reinforcing our confidence in our ability to meet our guidance. As a result, we expect Contribution X-DAC and programmatic revenue acceleration in H2, with year-over-year growth anticipated in Q3, Q4, H2, and full year 2024.

Speaker Change: For full year 2024, we are reaffirming our guidance for contribution ex Tac in a range of approximately $340 million to $345 million adjusted EBITDA of approximately $100 million and for programmatic revenue to reflect approximately 90% of full year 2024.

Ofer Druker: Additionally, customers can also take advantage of our vast TV intelligence solutions, which have the ability to minimcally enhance the CDV targeting its measurements.

Ofer Druker: Our full suite of data capabilities is unique to Nexxen and provides operational, performance and economic benefits for our partners. Within Nexxen Data Platform, we also launched our unified entity graph in Q2, which combines multiple identifiers into a merge graph, enabling increased scale and better targeting capabilities.

Ofer Druker: Our full suite of data capabilities is unique to Nexxen and provides operational, performance and economic benefits for our partners. Within Nexxen Data Platform, we also launched our unified entity graph in Q2, which combines multiple identifiers into a merge graph, enabling increased scale and better targeting capabilities. While Google has pivoted from full cookie duplication to an opt-in approach, our graph better positions Nexxen and its customers for changes in identity and privacy regardless.

Speaker Change: Yes.

Speaker Change: Our momentum from Q2 is carried over into Q3.

Speaker Change: We're seeing continued strength across our core growth drivers solid spending trend growing benefits from recently launched partnership increasing pipeline demand and improved visibility reinforcing our confidence in our ability to meet our guidance.

Ofer Druker: While Google has pivoted from full cookie duplication to an opt-in approach, our graph better positions Nexxen and its customers for changes in identity and privacy regardless.

Speaker Change: As a result, we expect contribution ex Tac and programmatic revenue acceleration in H, two with year over year growth anticipated in Q3, Q4, eight two and full year 2024.

Ofer Druker: We were well positioned for cookie duplication, but Google recent decisions reduces risk and removes an industry overhead.

Ofer Druker: We were well positioned for cookie duplication, but Google recent decisions reduces risk and removes an industry overhead. That said, we continue to impress the industry's needs for alternative ID solutions like ours, and our domestic identity strategy hasn't changed in wake-up Google decision, nor is our preparedness for their evolving approach. We have also researched further our ID graphs capabilities by partnering with experience to bring in BII data, which helps customers reduce costs and audience loss in the data on boarding process.

Sagi Niri: We anticipate a record year for political contribution extract in 2024, with most of the benefits likely to be recognized in Q4. We also continue to anticipate CTV revenue acceleration in H2, with year-over-year growth expected in Q3, Q4, H2, and fully of 2024, driven by increasing demand for our CTV solution and growing revenue tied to our partnership with Alfonso and LG. Additionally, we continue to expect growth in our data licensing revenue in full year 2024, compared to full year 2023, with further acceleration anticipated in 2025. We also anticipate adjusted EBITDA and adjusted EBITDA margins will be higher in Q3, Q4, H2, and fully of 2024 than in the prior year period, driven by expectation for increased contribution and extra.

Sagi Niri: We anticipate a record year for Political Contribution X-DAC in 2024, with most of the, benefits likely to be recognized in Q4.

We anticipate a record year for political contribution ex back in 2024 with most of the benefit is likely to be recognized in Q4.

Ofer Druker: That said, we continue to impress the industry's needs for alternative ID solutions like ours, and our domestic identity strategy hasn't changed in wake-up Google decision, nor is our preparedness for their evolving approach.

Sagi Niri: We also continue to anticipate CTV revenue acceleration in H2, with year-over-year growth, expected in Q3, Q4, H2, and full-year 2024, driven by increasing demand for our CTV solution and growing revenue tied to our partnership with Alfonso and LG.

Speaker Change: We also continue to anticipate CTV revenue acceleration in H two.

Year over year growth expected in Q3, Q4, eight two and full year 2024, driven by increasing demand for our CPG solution and growing revenue tied to our partnership with <unk> and LG.

Ofer Druker: We have also researched further our ID graphs capabilities by partnering with experience to bring in BII data, which helps customers reduce costs and audience loss in the data on boarding process.

Sagi Niri: Additionally, we continue to expect growth in our data licensing revenue in full-year, 2024, compared to full-year 2023, with further acceleration anticipated in 2025.

Speaker Change: Additionally, we continue to expect growth in our data licensing revenue in full year 2024, compared to full year 2023, we favor acceleration anticipated in 2025.

Ofer Druker: Elf advertisers are now seeking to partner with our data platform, including our ID graphs, as these solutions enabled them to extract greater value from their budgets, reach a wider audience, optimize returns and remain prepared for identity changes.

Ofer Druker: Elf advertisers are now seeking to partner with our data platform, including our ID graphs, as these solutions enabled them to extract greater value from their budgets, reach a wider audience, optimize returns and remain prepared for identity changes. Our data platform has already attracted key new partners to Nexxen, while unlocking new data licensing and commerce media opportunities, and we expect it will serve as a long-term growth driver and differentiator. As a direct byproduct of our data platform and identity graph launch in Q2, Techwell selected Nexxen as its attack and data partner, and their relationship is off to a great start.

Sagi Niri: We also anticipate adjusted EBITDA and adjusted EBITDA margins will be higher in Q3, Q4, H2, and full-year 2024 than in the prior year period, driven by expectation for increased contribution EXPAC.

Speaker Change: We also anticipate adjusted EBITDA and adjusted EBITDA margins will be higher in Q3, Q4, H two and full year 2024 than in the prior year period, driven by expectations for increased contribution ex Tac.

Ofer Druker: Our data platform has already attracted key new partners to Nexxen, while unlocking new data licensing and commerce media opportunities, and we expect it will serve as a long-term growth driver and differentiator.

Sagi Niri: Our depth-free balance sheet and crash-generating capabilities enable flexibility to invest in shared repurchases, sales growth initiatives, and innovation, and at this point in time, we don't plan any major new term acquisitions. We will continue shifting our focus to product innovation and expand our GNII and machine learning utilization and expect GNII to be a primary product investment focus in 2025. We will also boost our sales and marketing investments to further our commercial traction and ensure we continue expanding upon our recent momentum. As offer mentioned, the success we are seeing now is a byproduct of our hard work enhancing our holistic ability to execute.

Sagi Niri: Our debt-free balance sheet and cash-generating capabilities enable flexibility to invest, in share repurchases, sales growth initiatives, and innovation.

Speaker Change: Our debt free balance sheet, and cash generating capabilities enable flexibility to invest in share repurchases.

Speaker Change: Sales growth initiative and innovation and at this point in time, we don't plan any major near term acquisitions.

Sagi Niri: And at this point in time, we don't plan any major new-term acquisitions.

Ofer Druker: As a direct byproduct of our data platform and identity graph launch in Q2, Techwell selected Nexxen as its attack and data partner, and their relationship is off to a great start. The partnership in AWS Techwell Marketing Cloud Clients to utilize Nexxen data platform to onboard and enhance their customer data, improve targeting and planning efforts and extend audience reach across formats and devices. Techwell's clients can then seamlessly activate this in reach data in campaigns that goes next and platform to improve return on expanding.

Sagi Niri: We will continue shifting our focus to product innovation and expand our Gen-AI and machine, learning utilization and expect Gen-AI to be a primary product investment focus in 2025.

Speaker Change: We will continue shifting our focus to product innovation and expand our gen AI and machine learning utilization and expect Gen AI to be a primary product investment focus in 2025.

Ofer Druker: The partnership in AWS Techwell Marketing Cloud Clients to utilize Nexxen data platform to onboard and enhance their customer data, improve targeting and planning efforts and extend audience reach across formats and devices. Techwell's clients can then seamlessly activate this in reach data in campaigns that goes next and platform to improve return on expanding. Since beginning the relationship, we have led training and education sessions with Techwell employee and customers to accelerate the partnership, as the partnership continues to scale, where optimistic our solutions will not only in an established customer's results, but also drive increased revenue opportunities for both companies over time.

Sagi Niri: We will also boost our sales and marketing investments to further our commercial traction, and ensure we continue expanding upon our recent momentum.

Speaker Change: We will also boost our sales and marketing investments to further our commercial traction and ensure we continue expanding upon our recent momentum.

Sagi Niri: As Ofer mentioned, the success we are seeing now is a byproduct of our hard work enhancing, our holistic ability to execute.

Speaker Change: As often mentioned the success. We are seeing now is a byproduct of our hard work enhancing our holistic ability to execute.

Sagi Niri: Our platform approach and ability to offer customers in logistics, software, and data solution across the ethics, supply chain, and across their workflows continues to depreciate Nexon, enables more shots on goal, and positions us for sustainable and accelerated long-term growth and expanded profitability. Our recently launched data platform is also unlocking new high-margined data licensing revenue opportunities, and commerce media revenue opportunities, and attracting more advertising spend as the industry increasingly takes a data-driven approach to achieve better results and returns. The industry's major players are now actively seeking multi-solution data and take partnerships across our platform, leading to more sizable and durable revenue opportunities, and their adoption and recognition is driving our big names to engage with us, accelerating our growth prospects.

Sagi Niri: Our platform approach and ability to offer customers synergistic software and data solutions, across the asset supply chain and across their workflows continues to differentiate Nexen, enables more shots on goal, and positions us for sustainable and accelerated long-term growth and expanded profitability.

Speaker Change: Our platform approach and ability to offer customers in logistics software and data solutions across the ethics supply chain and across their workflow continues to differentiate nexsan enables more shots on goal and positions us for sustainable and accelerated long term growth and expanded profitability.

Ofer Druker: Since beginning the relationship, we have led training and education sessions with Techwell employee and customers to accelerate the partnership, as the partnership continues to scale, where optimistic our solutions will not only in an established customer's results, but also drive increased revenue opportunities for both companies over time.

Sagi Niri: Our recently launched data platform is also unlocking new high-margin data licensing revenue, opportunities and commerce media revenue opportunities and attracting more advertising spend as the industry increasingly takes a data-driven approach to achieve better results and returns.

Speaker Change: Our recently launched data platform is also unlocking new high margin licensing revenue opportunities.

Speaker Change: Commerce media revenue opportunities and attracting more advertising spend as the industry increasingly take and data driven approach to achieve better results and returns.

Ofer Druker: Our data platform launch also led to Nexxen being selected as the first to market audience extension partner for United Airlines, Commerce Media Network, Connective Media. This partnership unlock new revenue growth opportunities for Nexxen in Commerce Media, where we weren't active previously.

Ofer Druker: Our data platform launch also led to Nexxen being selected as the first to market audience extension partner for United Airlines, Commerce Media Network, Connective Media. This partnership unlock new revenue growth opportunities for Nexxen in Commerce Media, where we weren't active previously. Connective Media is leveraging Nexxen data platforms from boarding capabilities to extend travel and transaction data from United Miles Plus program to partner leveraging Nexxen for activation. United Miles Plus program reflects a massive database that is now accessible on Nexxen data platform and able to serve our advertisers customers with the guidance and cooperation of connective media.

Sagi Niri: The industry's major players are now actively seeking multi-solution data and tech partnerships, across our platform, leading to more sizable and durable revenue opportunities, and their adoption and recognition is driving other big names to engage with us, accelerating our growth prospects.

Speaker Change: The industry is major players are now actively seeking multi solution data and tech partnerships across our platform, leading to more sizable and durable revenue opportunity and their adoption and recognition is driving other big names to engage with us accelerating our growth prospects.

Ofer Druker: Connective Media is leveraging Nexxen data platforms from boarding capabilities to extend travel and transaction data from United Miles Plus program to partner leveraging Nexxen for activation. United Miles Plus program reflects a massive database that is now accessible on Nexxen data platform and able to serve our advertisers customers with the guidance and cooperation of connective media.

Sagi Niri: For some time, challenging market conditions and our focus on improving the business for the long-term forces to be on defense. Now, we're back on the offensive and excellently positioned to realize our strategic vision of becoming one of the industry's most sought-after strategic ethics and data partners.

Sagi Niri: For some time, challenging market conditions and our focus on improving the business for, the long term forced us to be on defense.

For some time challenging market condition, and our focus on improving the business for the long term forced us to be on defense.

Sagi Niri: Now we're back on the offensive and excellently positioned to realize our strategic vision, of becoming one of the industry's most sought-after strategic asset and data partners.

Speaker Change: Now we are back on the authentic and excellently positioned to realize our strategic vision of becoming one of the industry's most sought after strategic ethic and data partners.

Operator: We're excited for what lies ahead, and operator will now take questions.

Ofer Druker: We're excited for what lies ahead, and operator will now take questions.

Speaker Change: We're excited for what lies ahead and operator, we'll now take questions.

Ofer Druker: Through the partnership, brands can unlock new off-site media network to revenue streams while Nexxen's advertisers clients can leverage the data to efficiently extend audience reach.

Ofer Druker: Through the partnership, brands can unlock new off-site media network to revenue streams while Nexxen's advertisers clients can leverage the data to efficiently extend audience reach. Nexxen data platform is also driving new data licensing opportunities. Our platform features access to robust sources of advanced TV data for targeting and measurements, highlighted by exclusive access to global ACM data through our partnership with VIDA, the CTV operating system for iTunes and Tushima. VIDA growing global reach enable us to recently enter into global ACM data licensing partnership with the trade-offs, creating new revenue opportunities and boosting our industry organization.

Operator: Thank you.

Operator: Thank you. Ladies and gentlemen, we will now begin our question-and-answer session. If you have dialed in and would like to ask a question, please press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press star one again. If you are called upon to ask your question and are listening to be allowed speaker on your device, please pick up your handset and show that your phone is not on mute when asking your question.

Thank you ladies and gentlemen, we will now begin our question and answer session. If you have dialed in and would like to ask a question. Please press star followed by the number one on your telephone keypad. If you would like to withdraw your question secret breast Star. One again, if you are called upon to ask your question in or listening via loud speakers.

Operator: Ladies and gentlemen, we will now begin our question and answer session.

Operator: Ladies and gentlemen, this concludes today's conference call.

Operator: If you have dialed in and would like to ask a question, please press star followed by, the number one on your telephone keypad.

Operator: Thank you for your participation.

Operator: You may now disconnect.

Ofer Druker: Nexxen data platform is also driving new data licensing opportunities.

Operator: If you would like to withdraw your question, simply press star one again.

Operator: Please wait.

Operator: If you are called upon to ask your question and are listening via loudspeaker on your, device, please pick up your handset and ensure that your phone is not on mute when asking your question.

Operator: The conference will begin shortly.

Ofer Druker: Our platform features access to robust sources of advanced TV data for targeting and measurements, highlighted by exclusive access to global ACM data through our partnership with VIDA, the CTV operating system for iTunes and Tushima.

Speaker Change: Our device this pick up your handset ensure that your phone is not on mute when asking your question. Thank you.

Operator: Thank you.

Matthew Swanson: Thank you. Your first question comes from the line of Matt Swanson from RBC Capital Markets.

Operator: Your first question comes from the line of Matt Swenson from RBC Capital Markets.

Speaker Change: First question comes from the line of Matt Swanson from RBC capital markets. Please go ahead.

Operator: Please go ahead.

Matt Swenson: Thanks for taking my questions and congratulations on the quarter.

Matthew Swanson: Thanks for taking my questions, and congratulations on the quarter. Great to see the rebound in CTV. I know we talked last quarter about some advertisers opting to lower-cost formats.

Matt Swanson: Thanks for taking my questions and congratulations on the quarter.

Ofer Druker: VIDA growing global reach enable us to recently enter into global ACM data licensing partnership with the trade-offs, creating new revenue opportunities and boosting our industry organization.

Matt Swenson: Great to see the rebound in CTV.

Matt Swanson: Great to see the rebound in CTV I know, we talked last quarter about some advertisers the opportunity to lower costs formats could you dive in a little bit deeper on the dynamics that led to the growth kind of the mix of the benefit from more adoption of premium solutions versus the increased TV supply that may be make some of these adds more affordable.

Matt Swenson: I know we talked last quarter about some advertisers opting to lower-cost formats.

Matt Swenson: Could you dive in a little bit deeper on the dynamics that led to the growth, kind of the mix of the benefit from more adoption of premium solutions versus the increased CTV supply that maybe makes some of these ads more affordable?

Ofer Druker: Could you dive in a little bit deeper on the dynamics that led to the growth, the kind of the mix of the benefit from more adoption of premium solutions versus the increased CTV supply that may be make some of these ads more portable.

Ofer Druker: Nexxen is providing the trade-esk ACM data segments to offer their clients advanced cross-channel and cross-device targeting capabilities which are now available on their self-service platform for activation in the US, UK, Canada and Australia.

Ofer Druker: Nexxen is providing the trade-esk ACM data segments to offer their clients advanced cross-channel and cross-device targeting capabilities which are now available on their self-service platform for activation in the US, UK, Canada and Australia. We are in licensing discussions with a large number of other industry players, and we are optimistic about achieving additional new partnerships, particularly around the commission and ACM data, given the scarcity of TV data in markets outside the US.

Matt Swanson: Sure.

Ofer Druker: Hi, math, of course, thank you for the question. For many years, we are putting a lot of emphasis on CTV, and I think that the few things happen basically. One of them is that the market is in a better condition, so people are willing to spend more on or to invest more on CTV channels instead of what we said before that they were like running to cheaper channels in order to get results. Again we see movement of budget to CTV, which is good for us.

Operator: Hi, Matt.

Matt Swanson: Hi, Matt of course, thank you for the question.

Matt Swanson: Sure.

Ofer Druker: Of course.

Matt Swanson: For many years, we are putting a lot of emphasize on CTV.

Ofer Druker: We are in licensing discussions with a large number of other industry players, and we are optimistic about achieving additional new partnerships, particularly around the commission and ACM data, given the scarcity of TV data in markets outside the US.

Ofer Druker: Thank you for the question.

Matt Swanson: Saying that there are a few things happen basically one of them is that.

Matt Swanson: Sure.

Matt Swanson: Market.

Speaker Change: He is in a better condition. So people are willing to spend more on or to invest more in CTV channels.

Speaker Change: As of today, what we said before that there were like running to a cheaper channels in order to get results again, we see movement of budget to CTV, which is good for us. The second thing is that the amount of tools and technology that we created for CTV is really unparalleled and when youre looking.

Ofer Druker: We continue to believe data licensing is a huge long-term growth of utility for Nexxen.

Ofer Druker: We continue to believe data licensing is a huge long-term growth of utility for Nexxen. We also recently released data powers tools for political advertisers, enabling them to leverage Nexxen's suite of tech and measurement capabilities to gain different campaign insights and maximize audience reach to enhance results and fully capitalize on the US election cycle. New solution includes political district targeting and Nexxen's discovery-powered political dashboard for providing condolence, issue and sentiment analysis and the ability to retarget costume audiences that has previously been exposed to political ads through a partnership with them.

Ofer Druker: For many years, we are putting a lot of emphasis on CTV, and I think that a few things happened, basically.

Ofer Druker: One of them is that the market is in a better condition, so people are willing to spend more or to invest more in CTV channels instead of what we said before, that they were running to cheaper channels in order to get results.

Ofer Druker: We also recently released data powers tools for political advertisers, enabling them to leverage Nexxen's suite of tech and measurement capabilities to gain different campaign insights and maximize audience reach to enhance results and fully capitalize on the US election cycle.

Ofer Druker: Again, we see movement of budget to CTV, which is good for us.

Ofer Druker: The second thing is the amount of tools and technology that we created for CTV is really unparalleled, and when you're looking at the abilities of our clients to target, to measure, and the major booster of publishers that we got is giving them a lot of opportunities, is basically not just to target well but also to reach big audience thanks to the spread of the publishers that we got. So they are getting much better results than usual when they are using our platform for CTV, and we see that for many for a long time, but now it's even in ends thanks to the release of our data and management platform and the enablement of the discovery with the ACR data VIDA that is included and enabled to create segments and audiences and to learn more insights about the users.

Speaker Change: The ability of our clients to targeted to measure.

Ofer Druker: The second thing is the amount of tools and technology that we created for CTV, is really unparalleled, and when you're looking at the abilities of our clients to target, to measure, and the major rooster of publishers that we got is giving them a lot of opportunities, basically, not just to target well, but also to reach a big audience thanks to the spread of the publishers that we got.

Speaker Change: The major rooster of publishers that we that is giving them a lot of representatives basically no thats not just to.

Ofer Druker: New solution includes political district targeting and Nexxen's discovery-powered political dashboard for providing condolence, issue and sentiment analysis and the ability to retarget costume audiences that has previously been exposed to political ads through a partnership with them.

Speaker Change: Target well, but also to reach big audience takes to the to the spread of the partnerships that we've got.

Ofer Druker: So they are getting much better results than usual, when they are using our platform for CTV, and we see that for a long time, but now it's even enhanced thanks to the release of our data management platform and the enablement of the discovery with the ACR data of Vida that is included and enabled to create segments and audiences and to learn more insights about the users. So all of that is coming together.

So they are getting much better results.

Speaker Change: The unusual when using our platform for CPB and we see that for merit for long time, but now it's even events. Thanks to the release of our data.

Ofer Druker: School.

Ofer Druker: School. In Q2, we didn't observe significant political expanding on our platforms. However, in Q3, we are seeing increased demand and expect this to accelerate in Q4, as we get to also the election day. Given our enhanced suite of tools, new partnerships and increased sales focus on the verticals. In Q2, we added 86 new actively-spending first-time advertising customers. This included 16 new enterprise sales service customers and two new independent agencies leveraging Nexxen sales service offerings.

Ofer Druker: In Q2, we didn't observe significant political expanding on our platforms.

Speaker Change: <unk> platform in two hours.

Speaker Change: Enablement of the discovery with the ACO that though.

Speaker Change: That is included and enable to create segments and audiences and to learn more insights about the users. So all of that is coming together. There is still work to do but we are on the right trend and we see that in the numbers.

Ofer Druker: So all of them is coming together; they're still worth to do, but we are on the right trend, and we see that in the numbers.

Ofer Druker: There is still work to do, but we are on the right trend, and we see that in the numbers.

Matt Swenson: Thanks, and then also great to see the margin expansion, after all the heavy lifting you've done for the platform integration.

Matthew Swanson: Thanks, and then also great to see the margin expansion after all the heavy lifting you've done for the platform integration.

Speaker Change: Thanks, and then also great to see the margin expansion after all the heavy lifting you've done for the platform integration.

Matt Swenson: So Guy, how should we think about margins moving forward, as you reap the benefits from those previous investments, but then also highlighting some of the new investments specifically around Gen-AI and sales and marketing?

Ofer Druker: So how should we think about margins moving forward as you reap the benefits in those previous investments, but then also highlighting some of the new investments specifically around GenAI and sales and marketing. I think that you know we did this quarter 32 percent of adjusted VIDA margin out of contribution extract. I think that this you know again we are weighted as our peers in the industry and as the industry are all for age 2 and of course it's all around the scale gain so as long as our scale will increase for sure our margins will be better.

How should we think about margins moving forward as you reap the benefits most previous investments, but then also highlighting some of the new investments, specifically around Shanghai and sales and marketing.

Ofer Druker: We also added 78 new supply partners in Q2, including 74 in the US. In all, Q2 was a great quarter that indicates we have reached an inflection point in the business following the transformational milestones we have achieved over nearly the last two years. Our strategy to connect our cutting-edge data platform to our flexible, unified, full-stack ed tech solution to drive better customer outcomes is working, and enabling us to win wallets and market share to increase spending and product adoption.

Operator: Hey, Matt.

Speaker Change: Hey, Matt I think that.

Sagi Niri: I think that we did this quarter 32% of adjusted EBITDA margin, out of contribution stack.

We did this quarter.

Speaker Change: Quarter, 32% of.

Speaker Change: Adjusted EBITDA margin out of our contribution ex Tac I think that this.

Sagi Niri: I think that this, you know, again, we are weighted as our peers in the industry and as the industry at all for H2, and of course it's all around a scale game.

Speaker Change: Again.

Speaker Change: We are weighted as our peers in the industry and us.

Speaker Change: As the industry at all for.

Speaker Change: <unk> tool and of course, it's all around.

Ofer Druker: It is also empowering us to gain traction with the world's top-est tech companies, agencies and brands. On the sales price, we are continuing to focus on generating increased customer spending and full-stack product adoption, attracting major new partners to our platform, deepening relationship with streaming players, and scaring our data opportunities. From a product perspective, we will also continue to invest in innovation and focus on expanding our GNI and machine learning utilization. We believe GNI will advance the effectiveness of our data, audience, insights and activation tools, as well as our health features.

Sagi Niri: So as long as our scale will increase, for sure our margins will be better.

Speaker Change: A scale game, so as long as our scale will increase.

Speaker Change: Increase for sure our margins will be better.

Sagi Niri: Having said that, I think we are still reaffirming our guidance, of around $100 million of adjusted EBITDA out of let's take the midpoint of $342.5. So it's somewhere around 30%.

Ofer Druker: Having said that, I think we are still, you know, we're affirming our guidance of around 100 million dollars of adjusted VIDA out of, let's take the midpoint of 342.5, so it's somewhere around 30 percent. I think that on the early basis this will represent what we can do. Now, of course, going into 2025, I think that we can do better. And again, the weighted margin between the different quarters is reflected and related to the seasonality. So I'm guessing that in Q4 we will do much more than 32%, but on a daily basis, and this is the way you should look at it. I think we should now we will settle it around on the 30th, and going forward I think that we can do more than that.

Speaker Change: Having said that they think we are still reaffirming our guidance of around $100 million of adjusted that'd be the out of let's take the midpoint of $342 five so.

Speaker Change: It's somewhere around 30% I think that on a yearly basis. This would represent what we can do now of course going into 2025, I think that we can do better.

Sagi Niri: I think that on a yearly basis, this will represent what we can do now.

Sagi Niri: Of course, going into 2025, I think that we can do better.

Sagi Niri: And again, the weighted margin between the different quarters, is reflected and related to decisionality.

Speaker Change: And again, the weighted margin between the different quarters.

Speaker Change: Reflected in related to the seasonality so.

Sagi Niri: I'm guessing that in Q4 we will do much more than 32% but on a daily basis and, this is the way you should look at it I think we should now we will settle it around on the 30s and going forward I think that we can do more than that.

Speaker Change: I'm guessing that in Q4, we will do much more than 32%, but on a daily basis and this is the way you should look at it I think we should now we will settle at around on the heritage and going forward I think that we can do more than that.

Ofer Druker: This is expected to benefit our customers, increase our platform tech and data advantages and create efficiencies. Really main, excited for when dissipated catalysts in the back half of 2024 and beyond, including our recent partnerships generating increased revenues, data licensing revenue scaling, and potential modest tailwinds from the U.S, election cycle. I am more confident than ever with the right people and solutions in place to drive continuous execution, capitalize on our long-term growth of creativity, and realize our vision of becoming the industry go to strategic tech and data partners.

Sagi Niri: Thank you.

Speaker Change: Okay.

Speaker Change: Thank you.

Matt Swanson: Thank you Matt.

Laura Martin: Your next question comes from the line of Laura Martin from Meet Him. Please go ahead.

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

Operator: Your next question comes from the line of Laura Martin from Needham.

Laura Martin: Good morning. The first question I have is could you talk about your GNI wrote that please? Where do you think you're going to be focusing first on integrating GNI into your product portfolio.

Laura Martin: Good morning.

The first question I have is could you talk about your Q&A AI Road map place, where do you think youre going to be focusing first on integrating journey onto your product portfolio.

Ofer Druker: However, in Q3, we are seeing increased demand and expect this to accelerate in Q4, as we get to also the election day.

Operator: Please go ahead.

Ofer Druker: Given our enhanced suite of tools, new partnerships and increased sales focus on the verticals.

Laura Martin: Good morning.

Ofer Druker: Hi, Laura, of course. So our advantage when we look at the GNI is that we have also a lot of point of data connected to our activation platform, which is giving us a lot of opportunities to integrate GNI into our work stream into our platform.

Speaker Change: Hi, Laura of course.

Speaker Change: So our advantage when we look at Janney.

Laura Martin: The first question I have is could you talk about your Gen-AI, roadmap please?

Speaker Change: Is that we have also.

Speaker Change: A lot of point of data collected through our integration platform.

Sagi Niri: With this, I am happy to turn the call over to investigate to distract our financial results and outlook. Thank you, offer. In Q2, we generated contribution extract of $83.1 million, achieving 4% growth from Q2 2023 and 19% growth from Q1 2024. Programmatic revenue was $78.6 million in Q2, reflecting 3% growth from Q2 2023 and 20% growth from Q1 2024, while contribution extracts from our non-programmatic business line was up slightly year-over-year in Q2 2024.

Laura Martin: Where do you think you're going to be focusing first on integrating Gen-AI into your product portfolio?

Speaker Change: She is giving us a lot of opportunity to integrate <unk> into our it work stream to our platform.

Ofer Druker: The first place that we are going to integrate GNI I will be around our discovery, which is the basically the unit the data platform that enable advertisers to source the audiences to learn about, to get more insights and to get sentiment to the products and services, and to create segments that they can operate on our platform. So we believe that this is the first place that we need to invest and integrate GNI, and it's in the process already. And we believe that thanks to the fact that it's all around data that is connected to our activation tools, the GNI will have like all capabilities and power, and basically the ability of the users to utilize the service will not just be based on the person that is.

Operator: Hi Laura, of course.

Speaker Change: The first place that we are going to integrate journey II will be around our discovery, which is the basically the unit the data platform that enable advertisers to source the audiences to learn about to get more insights and to get sentiment to their products and services and to create segments that they can operate on.

Ofer Druker: In Q2, we added 86 new actively-spending first-time advertising customers. This included 16 new enterprise sales service customers and two new independent agencies leveraging Nexxen sales service offerings.

Ofer Druker: So our advantage when we look at the Gen-AI is that we have also a lot of points of data connected to our activation platform which is giving us a lot of opportunities to integrate Gen-AI into our work stream and into our platform.

Our platform.

Speaker Change: So we believe that this is the first place that we need to invest and integrate gen AI and it's in the process already.

Ofer Druker: The first place that we are going to integrate Gen-AI will be around our discovery which is, basically the unit the data platform that enable advertisers to source their audiences to learn about to get more insights and to get sentiment to their products and services and to create segments that they can operate on our platform.

Speaker Change: And we believe that thanks to the fact that it's all.

Ofer Druker: So we believe that this is the first place that we need to invest and integrate Gen-AI and it's in the process already and we believe that thanks to the fact that it's all around data that is connected to our activation tools the Gen-AI will have like more capabilities and power and basically the ability of the of users to utilize the service will not just be based on the person that is operating the discovery tool but from the Gen-AI and the accumulative knowledge and capabilities of our company.

Speaker Change: Hey, Ron this is connected to our activation tools.

Ofer Druker: We also added 78 new supply partners in Q2, including 74 in the US.

Sagi Niri: Growth in Q2 was growth-based, driven by enhanced sales execution, scaling partnerships and improved market conditions. We observed trends in CQV, video, mobile display, data products and P&T's, and across our finance, sales, retail, government, and automotive verticals. On the opposite side, we observed the era of a real decrease in our travel and technology verticals in Q2. CTV was a bright spot in Q2 as we generated $28.2 million in CTV revenue, reflecting 14% growth from Q22023 and 50% growth from Q12024.

Ron: We live like all captured entities and smaller and basically.

Ron: The ability of the users to utilize the service will not just be based on the peso that is operating the discovery tool, but on the <unk>.

Ofer Druker: In all, Q2 was a great quarter that indicates we have reached an inflection point in the business following the transformational milestones we have achieved over nearly the last two years.

Ofer Druker: Operating the discovery tool but from the GNI and the accumulative knowledge and capabilities of our company.

Ron: Accumulative knowledge and capabilities of our company.

Laura Martin: Okay and it's built on which cloud?

Laura Martin: Okay, and it's built on which cloud? Which cloud are you using? OpenAI, are you using Google Cloud, which weren't using? Google we are using also Google and cloud but we are it's not it's not a it's not an issue.

Speaker Change: Okay and is built on which cloud which are you using open AI already using Google cloud I'm just wondering.

Speaker Change: We are using also will get it.

Speaker Change: But we are.

Speaker Change: It's not the norm.

Speaker Change: I think the issue.

Ofer Druker: In general, we are using a one for everything, but for also for certain purposes we're using Google and Amazon cloud.

Speaker Change: <unk>.

Speaker Change: Infrastructure for everything, but it will fall.

Sagi Niri: This was the second best CTV revenue quarter in Nexxen's history. A CTV revenue represented 36% of programmatic revenue in Q22024, up from 32% in Q22023. CTV revenue growth was driven by a growth customer shift into our premium CTV solution, and our partnership with Alfonso and LG Electronics beginning to scale. In market share projects, US CTV advertising spend will grow at a roughly 14% Kager over the next several years, fuelled by billions of dollars of linear budget shifting to advanced TV, new advertisers are migrating to streaming as consumer and services increasingly embrace ad supported content, and life port going digital.

Laura Martin: Are you using OpenAI?

Speaker Change: Also for certain purposes, we're using Google and Amazon cloud.

Laura Martin: Okay, and then this my second question is about you talked about United Airlines, which is pretty exciting, but when you do a partnership with American Airlines. Is there revenue in that for you immediately, or is it more like you do a partnership with United and that then attracts new types of advertisers around ecommerce? So basically when I when we look at the United Airlines for us it's the first step into the world first of all and commercial world which is collected data, which is a very important step that they give us the trust and we of course owner them and respect this step and we do everything.

Speaker Change: Okay and then this is my second question is about.

Laura Martin: Are you using Google Cloud?

Ofer Druker: We are using also Google and Amazon Cloud but we are it's not it's not a it's not I think the issue, in general we are using our own infrastructure for everything but for for also for certain purposes we are using Google and Amazon Cloud.

Speaker Change: You talked about United Airlines, which is pretty exciting, but when you do a partnership with American Airlines is the revenue in that for you immediately or is it more like you do a partnership with United from that then.

Laura Martin: Okay and then this my second question is about you talked you talked about United Airlines which is pretty exciting but when you do a partnership with American Airlines is there revenue in that for you immediately or is it more like you do a, partnership with United and that then attracts new types of advertisers around e-commerce capability and new categories?

Speaker Change: Tracks, new types of advertisers around e-commerce.

Laura Martin: How does the revenue work when with things like your United Airlines new partnership?

Speaker Change: Capability in new categories, how does the revenue work when with things like here at United Airlines and your partnership.

Ofer Druker: So basically when I when we look at the United Airlines for us it's the first step into the retail world first of all and commercial world which is collected data which is a very important step that they give us the trust and we of course honor them and respect this step and we do everything to to touch their their their expectation from us and from the market.

Speaker Change: So basically when we look at the United Airlines.

It's a first step into.

Speaker Change: Comment into.

Speaker Change: Into the retail World first of all in commercial World, which is.

Speaker Change: Predicted data, which is a very important step that they gave us the trust and we of course honor them and the respective step and we'll do everything to touch there.

Sagi Niri: We believe our long-standing streaming DNA, TV data capabilities and solutions, access to premium supply and flexible unified platform, designed to enhance CTV results for customers across the ecosystem, uniquely positions us to capitalize on this long-term growth opportunity and gain market share. Video revenue continued to account for most of our programmatic revenue, expanding to 74% in Q22024 from 71% in Q22023. This year-over-year increase was driven by video revenue strength, fuelled primarily by CTV outpacing programmatic revenue growth.

Ofer Druker: To touch their expectation from us and from the market. The idea is to basically enable it's not that we are we are going to make you two sources of revenue one to operate their activity basically they have the whole system that is selling media selling activation on based on their data. And the second one is that we will be able to offer this data also to our clients on the program article level, so these two levels, these two revenue channels will basically. coming to Frutation in the near future.

Speaker Change: Yes.

Speaker Change: The expectation from us and from the market.

Ofer Druker: The idea is to basically enable it's not that we are we are going to make you two sources of revenue.

Speaker Change: The idea is to basically enable and its not that we are we are going to make you. Two sources of revenue want to operate their activity basically they have the wholesales team that is selling media selling activation on based on the data and the second one is that we will be able to offer. These data also to our clients on the program Arctic.

Ofer Druker: One to operate their activity basically they have their own sales team that is selling media, selling activation or based on their data and the second one is that we will be able to offer this data also to our clients on the programmatic level.

Ofer Druker: So these two levels these two revenues channels will basically come into fruition in the near future.

Speaker Change: Level. So this two levels. These two revenues channels will basically.

Ofer Druker: It's new to us, so it's hard to say how much revenues it will generate for us, but since it's a very interesting data set of more than 100 million travelers, we believe that it will be meaningful in the years to come.

Speaker Change: Coming to fruition in the near future.

Ofer Druker: It's new to us, so it's hard to say how much revenue it would generate for us, but since it's a very interesting data set of more than 100 million travelers, we believe that it will be meaningful in the years to come.

Speaker Change: New to us so it's hard to say how much revenue that we generate for us, but since it's a very interesting data set.

Sagi Niri: We continue to anticipate outside video revenue growth over time due to our strategic video and CTV focus and capabilities and believe we are among the most heavily indexed SAC companies to video on the open internet. Contribution extracts from this play grew 14% year-over-year in Q2, while contribution extracts from mobile increased 5%. Contribution extracts from data products increased 57%, and contribution extracts from TMPs increased 29%. Our ability to offer a variety of software solutions across formats and devices is a tremendous advantage which enable us to retain customers, attract new partners, and proactively adapt to changing market condition and the industries diverse and evolving needs.

Speaker Change: More than 100 million.

Speaker Change: <unk>, we believe that it will be meaningful deals to come.

Laura Martin: Okay, perfect. Thanks so much.

Laura Martin: Okay, perfect.

Speaker Change: Okay perfect. Thanks, so much. Thank you have a great. Thank you.

Operator: Thank you. Have a great day. Thank you.

Operator: Thank you, though.

Laura Martin: Thanks so much.

Speaker Change: Hello.

Matthew Condon: Your next question comes from the line of Matt Condon from JMP.

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

Ofer Druker: Thank you for taking my questions. My first one's just, you know, following the integration of a MOBI, and it seems that sales execution is improved. Can you just elaborate on this and maybe how you feel about the sales force of where it's today?

Ofer Druker: Thank you.

Speaker Change: Thank you for taking my questions. My first one is just following the integration of <unk> and it seems that sales execution has improved can you just elaborate on this and maybe how.

Ofer Druker: Have a great day.

Ofer Druker: Our strategy to connect our cutting-edge data platform to our flexible, unified, full-stack ed tech solution to drive better customer outcomes is working, and enabling us to win wallets and market share to increase spending and product adoption.

Sagi Niri: Being able to service customers across formats and devices also allows us to capitalize on a larger total addressable market, while our data solutions are creating a flywheel effect that is opening new opportunities and attracting more spends to our flux.

Matt <unk>: How you feel about the salesforce it where it sits today.

Ofer Druker: Thank you.

Ofer Druker: Of course. Basically, about close to two years ago, we acquired a MOBI, which was a bigger company than us. There's like close to 1,000 people. We were 600 people. And when you are combining two sales teams, there's a lot of noise, work, integration, and synchronization that needs to happen between the teams. That's one. The second thing is the offering that needs to be aligned because we are integrating new products. We are creating a new offering into the market. So we need to, first of all, build the offering. The second thing is basically educate, first of all, our people about the new offering and adjust them to the market needs.

Speaker Change: Of course.

Speaker Change: Okay.

Speaker Change: Basically about close to two years ago.

Speaker Change: <unk>, which was a bigger company than Australia like close to 1000 people. We were 600 people and when you are combining two sales teams. There is a lot of noise.

Operator: Your next question comes from the line of Matt Condon from JMP.

Speaker Change: Noise where integration.

Speaker Change: And synchronization that needs to happen between the teams Thats one the second thing is the offering that needs to be aligned because we are integrating new products, we are creating new offering into the market. So we need to first of all bill the offering the second thing is <unk>.

Sagi Niri: Platform. In Q2, we generated adjusted EBITDA of $26.8 million, which reflected a 27 percent e-over-ear increase from Q2, 2023, and a 126 percent increase from Q1, 2024. Our adjusted EBITDA growth was a byproduct of higher contribution extract, improving cost efficiencies, and our platform models' ability to generate increasing degrees of operating leverage. Our adjusted EBITDA margin in Q2 increased to 32 percent on a contribution extract basis from 26 percent in Q2, 2023, and we remained confident in our ability to continue expanding our adjusted EBITDA margins over time.

Speaker Change: Basically educate first of all our people about the new offering.

Speaker Change: And adjusted to the market needs.

Ofer Druker: Sometimes you need to; it's a process. It's not that the first time that you are creating an offer is like a working 100%. So you need to adjust it over time.

Speaker Change: Thanks, you alluded to it's a process, it's not that the first time.

I am that youre, creating an offering.

Speaker Change: Working 100%, so you'll need to adjust that over time and what we sold lately is first of all the establishment of routine people they.

Ofer Druker: And what we saw lately is, first of all, the establishment of the team, people that know the assignments; they believe they feel confident about the technology and product that we are offering. We package it and tighten the packaging in a way that they can explain it to the other side in a more meaningful and simple manner. And we feel the results, meaning people, people understand what we have to offer in the marketplace. They understand what is the value that we, the our products can bring to them and they sign in and grow the revenues with us.

Speaker Change: No David assignments. They believe they feel confident about the technology and product that we are offering we package it and tightened the packaging in a way that they can explain it to to the other side in a more meaningful and simple manner.

Speaker Change: And we feel the end results meeting people.

Sagi Niri: In Q2, we generated $20.9 million in S cash from operating activities, after generating $11.9 million in Q2, 2023. As of June 13th, we had $151.9 million in S cash, a $90 million earned on our Revolving Relics Facility following the full repayment of our outstanding long-term debt in April. We also reported non-IFRS delusive earnings per ordinary share of 9 cents in Q2, 2024, compared to 6 cents in Q2, 2023. During Q2, we repurchased roughly 2.5 million ordinary shares through our completed $20 million repurchased program and newly launched $50 million program, reflecting an investment of 5.8 million pounds or $7.3 million.

Speaker Change: People understand what we have to offer in the marketplace that understand what is the value that our products can bring to them and they are signing and grow their revenues with us and it's a process that I think that will just get better over time, because basically we are learning also from the process as I said, it's an ongoing process.

Ofer Druker: And it's a process that I think that will just get better over time because basically, we are learning also from the process that I said it in ongoing process. And the advantage that we got is that we basically got a lot of products that we integrated into a packaging that makes really clear advantage to the clients of the other side to use. So when our teams are aligned, educated, trained, and they are coming to the market with organized material and offering its workings. That's why we are talking about better execution. We are hiring more people; we are basically training them better, and we are able to give them more tools in order to win in the market.

Speaker Change: And.

Speaker Change: The advantage that we got is that we basically got it.

Speaker Change: A lot of products that we integrate it into packaging that is mix really clear advantage to the clients of the other side to us.

Operator: Please go ahead.

Speaker Change: Our teams are aligned.

Speaker Change: The strength and coming to their markets with organize material and offering is working that's why we're talking about better execution.

Speaker Change: We are hiring more people, we are basically training them better and we are able to give them more tools in order to win in the market.

Sagi Niri: From March 1st, 2022 through June 30th, 2024, we invested around $119 million in our repurchased program, buying the roughly 28.3 million ordinary shares or 18.3 percent of shares outstanding. If shares remain at prices, the board believes reflected this come to fair value at the end of our current repurchased program, we will consider initiating a new one.

Matt Condon: Thank you for taking my questions.

Matthew Condon: Great, that's helpful.

Speaker Change: Great. That's helpful. And then maybe my second one just can you talk about the progress you're making with the stack well partnership and just how demand has trended.

Matthew Condon: And then maybe my second one, can you talk about the progress you're making with the Stagwell partnership and just how demand has trended?

Ofer Druker: I guess, relative to your expectations.

Speaker Change: I guess relative to your expectations.

Ofer Druker: Stagwell is an important pattern for us. They are a great company that is basically also challenging the market in so many ways and forms. And we are in the process now of working together, training, as we mentioned, educating, building together products that, you know, they are helping us to improve some of our products because of their better experience working with clients. They are closer to clients. They are an agency, of course. And in some ways, we are helping them on a technology level. So I think it's in process, and we believe that it will grow, and it's meaningful because we believe that the Stagwell is one of the challenges of this industry, and we believe that they will keep growing, and we will be able to keep growing.

Speaker Change: Doug well is an important partner for us.

Speaker Change: <unk>.

Speaker Change: They're a great company that is basically also challenging the market in so many ways informed and we are in the process now of working together training as we mentioned educating building together products.

Sagi Niri: Finally, I'll turn to our outlook. For full years 2024, we are reaffirming our guidance for contribution extract in a range of approximately $340 to $345 million, adjusted evident of approximately $100 million and for programmatic revenue to reflect approximately 90 percent of full years 2024 revenue. Our momentum from Q2 has carried over into Q3. We're seeing continued strength across our core growth drivers, solid spending trends, growing benefits from recently launch partnerships, increasing tightly demand and improved visibility, reinforcing our confidence in our ability to meet our guidance.

Helping us to improve some of our products because of their better experience working with clients. They are closer to clients and agency of course and in <unk>.

Some ways, we are helping them on the technology level. So I think it's in process and we believe that it will grow and it's meaningful because we believe that.

Speaker Change: Doug will is one of the challenges of this industry and we believe that they will keep growing and we will be able to keep growing our business with them.

Ofer Druker: And we'll be just with them.

Matthew Condon: Great, thank you so much. You're welcome.

Speaker Change: Great. Thank you so much.

Speaker Change: Youre welcome.

Eric Martinuzzi: Your next question comes from the line of Eric Martinuzzi from Lake Street.

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

Eric Martinuzzi: Please go ahead. I wanted to revisit one of the issues that you brought up last quarter, and this was mentioned earlier in the call, but this one of the issues for Q1 and the CTV revenue was the, you know, customers small and mid-sized agency customers that were opting for the company's lower cost, programmatic display and mobile and desktop video solutions.

Sagi Niri: As a result, we expect contribution extract and programmatic revenue acceleration in H2, with zero-vary growth anticipated in Q3, Q4, H2 and full year 2024. We anticipate a record year for political contribution extract in 2024, with most of the benefits likely to be recognized in Q4. We also continue to anticipate CTV revenue acceleration in H2, with ear-over-ear growth expected in Q3, Q4, H2, and fully of 2024, driven by increasing demand for our CTV solution and growing revenue tied to our partnership with Alfonso and LG.

Speaker Change: Yes.

Speaker Change: One of the issues that you brought up last quarter and this was mentioned earlier on the call but.

Speaker Change: One of the issues for Q1 was in the CATV revenue was the.

Speaker Change: Customers small and midsized agency customers that were opting for the company's lower cost programmatic display and mobile and desktop video solutions.

Ofer Druker: With this recovery that we're seeing in that business, is this these same customers coming back because their end advertisers have budget, or is this kind of larger brands and agencies moving the needle for you? Basically, when you're looking at business, business cannot grow so fast. Eric is just based on new money. It's always a mix of a better, better revenues that is coming from your coin clients, and we have hundreds of clients, other partners, and clients advertisers that are buying from our CTV media.

Speaker Change: With this recovery that we're seeing in that business is this these same customers coming back because their end.

Speaker Change: Advertisers have budget or is this.

Speaker Change: Kind of larger.

Speaker Change: Larger brands and agencies moving the needle for you.

Sagi Niri: Additionally, we continue to expect growth in our data licensing revenue in full year 2024, compared to fully of 2023, with further acceleration anticipated in 2025. We also anticipate adjusted EBITDA and adjusted EBITDA margins will be higher in Q3, Q4, H2, and fully of 2024 than in the prior ear period, driven by expectation for increased contribution and extra. Our depth-free balance sheet and crash-generating capabilities enable flexibility to invest in shared repurchases, sales growth initiatives, and innovation, and at this point in time, we don't plan any major new term acquisitions.

Speaker Change: Yes.

Speaker Change: Okay.

Basically when you're looking at business be this cannot grow so fast Eric just based on new money, it's always a mix of.

Speaker Change: Better better revenues that is coming from your current clients and we have interest of clients other Av partners and clients.

Speaker Change: What it does is that they're buying from us CTV media.

Ofer Druker: So what we feel that, as I mentioned, better education, better sales processes that we basically brought into the game because of the, what I answered before about the better integration, alignment of the sales teams and so on. And of course, something which is very meaningful in CTV is what I mentioned. The first quarter is true, and that's what's happening. You can see that across the, across the, across the industry. It's basically when there is like doubt or uncertainty, people are pulling their budgets more to the side of performance media and less to CPV and INS inventory. And that's what Erta's last year in the beginning of this year. We see improvement in the sentiment of the advertisers to invest more, and together with our better capabilities, better organization, and more tight products and offering.

Speaker Change: So what we feel that as I mentioned better better education, better sales processes that we basically broke.

Matt Condon: My first one is just following the integration of Amobi, it seems that sales execution has improved.

Matt Condon: Can you just elaborate on this and maybe how you feel about the sales force and where it sits today?

Speaker Change: Into the game because of the what I answered before about the better integration and alignment of the sales teams and so on and of course, something which is very meaningful in CTV is what I mentioned the first quarter.

Operator: Of course.

Sagi Niri: We will continue shifting our focus to product innovation and expand our GNII and machine learning utilization and expect GNII to be a primary product investment focus in 2025. We will also boost our sales and marketing investments to further our commercial traction and ensure we continue expanding upon our recent momentum. As offer mentioned, the success we are seeing now is a byproduct of our hard work enhancing our holistic ability to execute. Our platform approach and ability to offer customers in logistics, software, and data solution across the ethics, supply chain, and across their workflows continues to depreciate nexon, enables more shots on goal, and positions us for sustainable and accelerated long-term growth and expanded profitability.

Speaker Change: As is true and Thats whats happening and you can see that across the across the <unk>.

Speaker Change: The industry is basically when there is lag doubt uncertainty people are pulling their budgets more to that.

Speaker Change: The performance media and less to CTV inventory and that's what's helped us last year and the beginning of this year and we see improvement in the sentiment of the advertisers to invest more and together with our better capabilities better organization and more tight products.

Ofer Druker: It is also empowering us to gain traction with the world's top-est tech companies, agencies and brands.

Ofer Druker: On the sales price, we are continuing to focus on generating increased customer spending and full-stack product adoption, attracting major new partners to our platform, deepening relationship with streaming players, and scaring our data opportunities.

Ofer Druker: We see the upside, and we see the results in the CTV front, which have made a very big jump in revenues and in our capability, basically to provide a good solutions to partners.

Speaker Change: We see the upside and we see the results in the CTV fronts, which have made a very big jump in revenues.

Speaker Change: In our capability basically to provide good solutions to partners.

Ofer Druker: From a product perspective, we will also continue to invest in innovation and focus on expanding our GNI and machine learning utilization. We believe GNI will advance the effectiveness of our data, audience, insights and activation tools, as well as our health features. This is expected to benefit our customers, increase our platform tech and data advantages and create efficiencies.

Sagi Niri: Our recently launched data platform is also unlocking new high-margined data licensing revenue opportunities, and commerce media revenue opportunities, and attracting more advertising spend as the industry increasingly takes a data driven approach to achieve better results and returns. The industry's major players are now actively seeking multi-solution data and take partnerships across our platform, leading to more sizable and durable revenue opportunities, and their adoption and recognition is driving our big names to engage with us, accelerating our growth prospects.

Sagi Niri: Okay, and then revisiting the free cash flow expectation for 2024. Suggie, I think he said that this roughly $100 million of adjusted EBITDA, you expected that to translate into around $60 million free cash flows. That's still the expectation for 2024.

Speaker Change: Okay and then.

Speaker Change: Revisiting the free cash flow expectation for two anti Tau for Siggi I think you've said roughly $100 million of adjusted EBITDA, you expected that to translate into around $60 million of free cash flow is that still the expectation for 2024.

Ofer Druker: Really main, excited for when dissipated catalysts in the back half of 2024 and beyond, including our recent partnerships generating increased revenues, data licensing revenue scaling, and potential modest tailwinds from the U.S, election cycle.

Sagi Niri: Yes, I think it's still, it's like the, you know, the low range of what we are anticipating. It can go up to 65%, but yes, this is like the, you know, the range that we anticipate that we can generate through 2024. Of course, we are still utilizing a lot of the cash for our buyback plans.

Speaker Change: Yes, I think it's clearly it's like the.

Speaker Change: The low range of what we are anticipating that can go up to 65%.

Sagi Niri: For some time, challenging market conditions and our focus on improving the business for the long-term forces to be on defense. Now, we're back on the offensive and excellently positioned to realize our strategic vision of becoming one of the industry's most sought after strategic ethics and data partners.

Speaker Change: This is victor.

Speaker Change: The range that we anticipate that we can generate a return to current before of course, we're still utilizing.

Speaker Change: A lot of the cash through our buyback plan.

Ofer Druker: I am more confident than ever with the right people and solutions in place to drive continuous execution, capitalize on our long-term growth of creativity, and realize our vision of becoming the industry go to strategic tech and data partners.

Sagi Niri: The one that we already ended in Q1 of the 20 million that we announced already at the end of 2023 and issued a new one in April May of 50 million. So yes, as long as you know, the board and management will think that the undervalue of the company is worth spending our money and buy the car shares will continue to do that as well.

Speaker Change: The one that we already ended in Q1 of the 20 million that we announced already at the end of 2023 and issued a new one.

Sagi Niri: With this, I am happy to turn the call over to investigate to distract our financial results and outlook.

Operator: We're excited for what lies ahead and operator will now take questions. Thank you.

Speaker Change: In April may of $50 million.

Speaker Change: So yes as long as you know the board and management will think that the under value of the company is wharf.

Sagi Niri: Thank you, offer.

Sagi Niri: In Q2, we generated contribution extract of $83.1 million, achieving 4% growth from Q2 2023 and 19% growth from Q1 2024. Programmatic revenue was $78.6 million in Q2, reflecting 3% growth from Q2 2023 and 20% growth from Q1 2024, while contribution extracts from our non-programmatic business line was up slightly year-over-year in Q2 2024.

Operator: Ladies and gentlemen, we will now begin our question and answer a session. If you have dialed in and would like to ask a question, please press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press star one again. If you are called upon to ask your question and are listening to be allowed speaker on your device, please pick up your handset and show that your phone is not on mute when asking your question. Thank you.

Speaker Change: Pending our money and buyback our shares we will continue to do that as well.

Speaker Change: Thank you.

Eric: Thank you Eric.

Mauricio Munoz: Your next question comes from the line of Mauricio Munoz from Raymond James. Please go ahead. Yeah, thank you for taking my question. This is Mauricio for Andrew today.

Speaker Change: Your next question comes from the line of small ratio minions from Raymond James. Please go ahead.

Speaker Change: Yes. Thank you for taking my question. This is a multi screen for Andrew today.

Matthew Swanson: Your first question comes from the line of Matt Swanson from RBC Capital Markets. Please go ahead. Thanks for taking my questions and congratulations on the quarter. Great to see the rebound in CTV. I know we talked last quarter about some advertisers opting to lower cost formats.

Sagi Niri: Yeah, I just wanted to go back to the questions of margins. So Sagi, obviously margins were quite strong in the quarter, and just trying to understand the sources of upside and how sustainable these are. So you talked about your ability to capture cost efficiencies, and I'm assuming some head-down rationalization and maybe capability integrations now that we have been fully integrated for over a quarter. We're just wondering about any positive margin contributions from the revenue mix.

Yes, I just wanted to go back to the questions on margins.

Andrew: Obviously margins were quite strong in the quarter I'm, just trying to understand the sources of upside.

Sagi Niri: Growth in Q2 was growth-based, driven by enhanced sales execution, scaling partnerships and improved market conditions.

Andrew: Sustainable this hard.

Sagi Niri: We observed trends in CQV, video, mobile display, data products and P&T's, and across our finance, sales, retail, government, and automotive verticals.

Ofer Druker: Basically, about close to two years ago, we acquired Amobi, which was a bigger company than us. They had close to 1,000 people.

Speaker Change: So you talked about your ability to capture cost efficiencies and I'm, assuming some headcount rationalization and maybe capability integrations. None of that has been fully integrated for for over a quarter, but just wondering about any positive margin contributions from the revenue mix.

Ofer Druker: We were 600 people.

Sagi Niri: On the opposite side, we observed the era of a real decrease in our travel and technology verticals in Q2.

Ofer Druker: Could you dive in a little bit deeper on the dynamics that led to the growth, the kind of the mix of the benefit from more adoption of premium solutions versus the increased CTV supply that may be make some of these ads more portable. Hi, Math, of course, thank you for the question. For many years we are putting a lot of emphasis on CTV and I think that the few things happen basically.

Ofer Druker: When you are combining two sales teams, there is a lot of noise, work, integration, and synchronization that need to happen between the teams.

Sagi Niri: Particularly any margin of sight from data licensing revenue or as Vida license revenues grant with the platform scaling, so any color around that will be helpful. Sure. So I think you touched all of the right points. We announced yesterday on our the trade on next and the trade as partnership around ACR data in the US, Canada, UK, and Australia. I think that this is like the, you know, our for into the mark into this vertical or line of business where we are generating money out of the data that we have exclusively. And probably, you know, over time, we will have more partnerships on that front, and the revenue that will generate from that will grow up as the partners will use it and utilize it more and more, as we will see, you know, the benefit from that.

Speaker Change: Particularly any margin upside from data licensing revenue or us Vita license revenues ramp.

Sagi Niri: CTV was a bright spot in Q2 as we generated $28.2 million in CTV revenue, reflecting 14% growth from Q22023 and 50% growth from Q12024. This was the second best CTV revenue quarter in Nexxen's history. A CTV revenue represented 36% of programmatic revenue in Q22024, up from 32% in Q22023. CTV revenue growth was driven by a growth customer shift into our premium CTV solution, and our partnership with Alfonso and LG Electronics beginning to scale.

Ofer Druker: One of them is that the market is in a better condition so people are willing to spend more on or to invest more on CTV channels instead of what we said before that they were like running to cheaper channels in order to get results. Again we see movement of budget to CTV which is good for us. The second thing is the amount of tools and technology that we created for CTV is really unparalleled and when you're looking at the abilities of our clients to target, to measure and the major booster of publishers that we got is giving them a lot of opportunities, is basically not just to target well but also to reach big audience thanks to the spread of the publishers that we got.

Speaker Change: With the platform scaling so any color around that would be helpful.

Sagi Niri: In market share projects, US CTV advertising spend will grow at a roughly 14% Kager over the next several years, fuelled by billions of dollars of linear budget shifting to advanced TV, new advertisers are migrating to streaming as consumer and services increasingly embrace ad supported content, and life port going digital.

Ofer Druker: That's one.

Sure. So I think you touched all of the right point.

Ofer Druker: The second thing is the offerings that need to be aligned because we are integrating new products.

Ofer Druker: We are creating new offerings into the market.

Speaker Change: We announced yesterday.

Ofer Druker: We need to build the offering.

Ofer Druker: The second thing is basically educate first of all our people about the new offering and adjust them to the market needs.

Ofer Druker: Sometimes it's a process.

Speaker Change: Our.

Ofer Druker: It's not that the first time that you are creating an offer, it's like working 100%.

Speaker Change: Next thing and the trade desk partnership around ACR that thing in the U S, Canada, UK and Australia I think that this is like the.

Ofer Druker: You need to adjust it over time.

Ofer Druker: What we saw lately is first of all, the establishment of the team, people know their assignments, they believe, they feel confident about the technology and product that we are offering.

Ofer Druker: We package it and tighten the packaging in a way that they can explain it to the other side in a more meaningful and simple manner.

Ofer Druker: We feel the results, meaning people understand what we have to offer in the marketplace.

Ofer Druker: They understand what is the value that our products can bring to them.

Sagi Niri: We believe our long-standing streaming DNA, TV data capabilities and solutions, access to premium supply and flexible unified platform, designed to enhance CTV results for customers across the ecosystem, uniquely positions us to capitalize on this long-term growth opportunity and gain market share.

Ofer Druker: I think it's in process and we believe that it will grow and it's meaningful because we believe that Stagwell is one of the challenges of this industry and we believe that they will keep growing and we will be able to keep growing.

Ofer Druker: They sign in and, grow the revenues with us.

Ofer Druker: Business with them.

Ofer Druker: It's a process that I think will just get better over time because basically we are learning also from the process.

Matt Condon: Great, thank you so much.

Ofer Druker: As I said, it's an ongoing process.

Ofer Druker: The advantage that we got is that we basically got a lot of products that we integrated into a packaging that makes really clear advantage to the clients on the other side to use.

Our foray into the model into this.

Ofer Druker: When our teams are aligned, educated, trained, and they are coming to the market with organized, material and offering, it's working.

Sagi Niri: Video revenue continued to account for most of our programmatic revenue, expanding to 74% in Q22024 from 71% in Q22023. This year-over-year increase was driven by video revenue strength, fuelled primarily by CTV outpacing programmatic revenue growth.

Ofer Druker: That's why we are talking about better execution.

Ofer Druker: We are hiring more people. We are basically training them better and we are able to, give them more tools in order to win in the market.

Matt Condon: Great.

Speaker Change: Critical or line of business, where we are.

Matt Condon: That's helpful.

Operator: Maybe my second one, can you talk about the progress you are making, with the Stagwell partnership and how demand is trended relative to your expectations?

Ofer Druker: Stagwell is an important partner for us.

Speaker Change: <unk> generated money out of the data that we have exclusively and probably you know over time, we will have more partnerships on that front and revenue that we'll generate from that will grow up as.

Ofer Druker: They are a great company that is basically, also challenging the market in so many ways and forms.

Ofer Druker: We are in the process now of working together, training as we mentioned, educating, building together products that are helping us to improve some of our products because of their better experience working with clients.

Ofer Druker: They are closer to clients.

Ofer Druker: They are an agency, of course.

Ofer Druker: In some ways, we are helping them, on a technology level.

Speaker Change: The partners will use it and utilize it more and more as they will see the benefit from that and as data is less I will sell more Tvs that so I think that this line of business is contributing directly to the EBITDA line, we don't have any cost or any extra incremental cost.

Sagi Niri: And as Vida and Slash I sense will sell more TV sets, so I think that this line of business is contributing direct to the data line. We don't have any cost or any extra incremental cost around that.

Sagi Niri: We continue to anticipate outside video revenue growth over time due to our strategic video and CTV focus and capabilities and believe we are among the most heavily indexed SAC companies to video on the open internet. Contribution extracts from this play grew 14% year-over-year in Q2, while contribution extracts from mobile increased 5%.

Ofer Druker: So they are getting much better results than usual when they are using our platform for CTV and we see that for many for a long time but now it's even in ends thanks to the release of our data and management platform and the enablement of the discovery with the ACR data VIDA that is included and enabled to create segments and audiences and to learn more insights about the users. So all of them is coming together they're still worth to do but we are on the right trend and we see that in the numbers.

Sagi Niri: I think that's what I said. You know, everything in our industry is the right seasonality, so we can have a, you know, a better quarter or a much better quarter in the margin. And they are just a baby, the line will be better at that at that quarter specifically, but again, I think we should look on our margins on a really basis. And for that, I think that in 2024, we are going to generate something around the 30%, and going forward. Because, as you said, and as offer mentioned, the mobile integration that is already been fulfilled, I don't want to say long time ago, but it's already there.

Speaker Change: Around that.

Speaker Change #100: That's what they said you know everything in our industry as a REIT since the analysis. So we can have.

Speaker Change #100: Better quarter or a much better quarter in the margin.

Speaker Change #101: At the adjusted EBITDA line will be will be better at that and that quarter, specifically, but again I think we should look on the on our margins on a yearly basis and for that I think that in 2024, we are going to generate something around the thirtyish present.

Sagi Niri: Thanks and then also great to see the margin expansion after all the heavy lifting you've done for the platform integration. So how should we think about margins moving forward as you reap the benefits in those previous investments but then also highlighting some of the new investments specifically around Genai and sales and marketing. I think that you know we did this quarter 32 percent of adjusted VIDA margin out of contribution extract. I think that this you know again we are weighted as our peers in the industry and as the industry are all for age 2 and of course it's all around the scale gain so as long as our scale will increase for sure our margins will be better.

And going forward as you said and as <unk> mentioned, the MLB integration that is already.

Being fulfilled.

Speaker Change #102: I don't want to say long term long time ago, but it is already there I think that now as we said in the in the call before we are.

Sagi Niri: I think that now, as we said in the call before, we are back on the offense and we are going. to more and more efficiency and more cost leverage on our cost base. And I think that in the last, I don't know, four quarters at least, we are seeing like the numbers of the total account of the companies decreasing the quarter over quarter. And of course, this is helping to increase our margin. And it will be, you know, the same as we will move forward.

Sagi Niri: Contribution extracts from data products increased 57%, and contribution extracts from TMPs increased 29%.

Speaker Change #102: Back on the offense and we are.

Going.

Two more and more efficiency and more cost leverage on our cost base and I think that in the last I don't know four quarters at least we are seeing like the numbers of the total headcount of the company.

Sagi Niri: Our ability to offer a variety of software solutions across formats and devices is a tremendous advantage which enable us to retain customers, attract new partners, and proactively adapt to changing market condition and the industries diverse and evolving needs.

Speaker Change #102: Creasing.

Speaker Change #102: Our revenue quarter over quarter and of course, this is helping to increase our margin and it will be the same as we move forward.

Ofer Druker: You're welcome.

Sagi Niri: Well, thank you. Very helpful.

Sagi Niri: Having said that I think we are still you know we're affirming our guidance of around 100 million dollars of adjusted VIDA out of let's take the midpoint of 342.5 so it's somewhere around 30 percent I think that on the early basis this will represent what we can do now of course going into 2025 I think that we can do better and again the weighted margin between the different quarters is reflected and related to the seasonality. So I'm guessing that in Q4 we will do much more than 32% but on a daily basis and this is the way you should look at it I think we should now we will settle it around on the 30th and going forward I think that we can do more than that.

Speaker Change #103: Alright. Thank you very helpful and then on capital allocation, maybe if you can give us on I.

Sagi Niri: And then on, on capital allocation, maybe you can give us an update on, on, on your plans. Obviously, the retired 100 million indeed now have 150 to million cash. So I'm assuming that following the acquisition of a movie, you've probably got a pause on your M&A plans.

Operator: Your next question comes from the line of Eric Martinuzzi from Lake Street.

Speaker Change #104: There are no data on your.

Operator: Please go ahead.

Speaker Change #105: <unk>, obviously, the retired 100 million in debt now have $152 million cash so.

Speaker Change #105: I'm assuming that following the acquisition of a movie you probably go out policy.

Speaker Change #105: M&A plants, well, how should we think about the pace of the ongoing ongoing sure.

Sagi Niri: But how do we think about the pace of the ongoing, ongoing share a buyback program and any plans to simplify your, your church structure? Thank you. Yeah, I think, as I said before, we are generating money on a regular basis. Our net cash, after we fully retain our 100 million dollars of loan that we took in order to find, and some of the mobile acquisition already was fully repaid. And we will keep generating money. This is our DNA, and this is our plan. And as long as, you know, management and board will think that the value of the company or the is, is undervalued in the market, we will keep on buying back our shares.

Speaker Change #105: <unk> buyback program and.

Speaker Change #106: Any plans to simplify your structure. Thank you.

Sagi Niri: Thank you.

Speaker Change #107: Yes, I think.

Speaker Change #108: As I said before we are generating.

Donnie: Donnie on on a regular basis.

Speaker Change #110: Our net cash after we fully repaid our $100 million the floor.

Speaker Change #111: We took in order to finance some of them will be acquisition already was fully repaid and we will keep generating Manny. This is our DNA and this is our plan.

Sagi Niri: Being able to service customers across formats and devices also allows us to capitalize on a larger total addressable market, while our data solutions are creating a flywheel effect that is opening new opportunities and attracting more spends to our flux.

Laura Martin: Your next question comes from the line of Laura Martin from meet him please go ahead.

Sagi Niri: Platform.

Laura Martin: Good morning. The first question I have is could you talk about your GNI wrote that please where do you think you're going to be focusing first on integrating GNI into your product portfolio. Hi Laura of course. So our advantage when we look at the GNI is that we have also a lot of point of data connected to our activation platform which is giving us a lot of opportunities to integrate GNI into our work stream into our platform.

Sagi Niri: In Q2, we generated adjusted EBITDA of $26.8 million, which reflected a 27 percent e-over-ear increase from Q2, 2023, and a 126 percent increase from Q1, 2024.

Laura Martin: The first place that we are going to integrate GNI I will be around our discovery which is the basically the unit the data platform that enable advertisers to source the audiences to learn about to get more insights and to get sentiment to the products and services and to create segments that they can operate on our platform. So we believe that this is the first place that we need to invest and integrate GNI and it's in the process already.

Speaker Change #112: And as long as its management and board will think that the value of the company or the is undervalued in the market, we will keep on buying.

Speaker Change #113: Beck, our shares and according to your first part of the question, Yes, I think that now after the full integration of <unk>. We don't think that we are missing like any critical path on any.

Sagi Niri: Our adjusted EBITDA growth was a byproduct of higher contribution extract, improving cost efficiencies, and our platform models' ability to generate increasing degrees of operating leverage. Our adjusted EBITDA margin in Q2 increased to 32 percent on a contribution extract basis from 26 percent in Q2, 2023, and we remained confident in our ability to continue expanding our adjusted EBITDA margins over time.

Sagi Niri: And according to your first part of the question, yes, I think that now, after the full integration of a movie, we don't think that we are missing like any critical part and any important part. Of course, we may go into something that can add, you know, a critical piece that we may need, but again, it will be a small acquisition or an IT acquisition in order to make a fast progress instead of develop, develop it by ourselves. But again, we are not actively engaged in any MNA, and we are not looking actively for any MNA.

Sagi Niri: In Q2, we generated $20.9 million in S cash from operating activities, after generating $11.9 million in Q2, 2023. As of June 13th, we had $151.9 million in S cash, a $90 million earned on our Revolving Relics Facility following the full repayment of our outstanding long-term debt in April.

Laura Martin: And we believe that thanks to the fact that it's all around data that is connected to our activation tools the GNI will have like all capabilities and power and basically the ability of the of users to utilize the service will not just be based on the person that is. Operating the discovery tool but from the GNI and the accumulative knowledge and capabilities of our company. Okay and it's built on which cloud which cloud are you using open AI are you using Google cloud which weren't using.

Speaker Change #112: Important part of.

Speaker Change #112: Of course, we may go into something that can add.

Speaker Change #114: The critical piece that we may need, but again, it will be a small acquisition or an IP acquisition in order to.

Sagi Niri: We also reported non-IFRS delusive earnings per ordinary share of 9 cents in Q2, 2024, compared to 6 cents in Q2, 2023. During Q2, we repurchased roughly 2.5 million ordinary shares through our completed $20 million repurchased program and newly launched $50 million program, reflecting an investment of 5.8 million pounds or $7.3 million. From March 1st, 2022 through June 30th, 2024, we invested around $119 million in our repurchased program, buying the roughly 28.3 million ordinary shares or 18.3 percent of shares outstanding.

Speaker Change #112: Mike.

Fast progress instead of develop develop it by ourselves, but again, we are not actively in.

Speaker Change #112: Engage in any M&A and we are not looking actively for any M&A. We think that we have all the parts we need.

Sagi Niri: We think that we have, you know, all the parts we need. And it's now only about going to offense, execute, and scaling our numbers up.

Sagi Niri: If shares remain at prices, the board believes reflected this come to fair value at the end of our current repurchased program, we will consider initiating a new one.

Speaker Change #112: And.

Speaker Change #115: Now only about going to offense execute and scaling our numbers up.

Sagi Niri: Finally, I'll turn to our outlook.

Sagi Niri: Great. Thank you.

Speaker Change #115: Great. Thank you.

Mark Kelley: You're welcome.

Speaker Change #115: You are welcome.

Mark Kelley: Your next question comes from the line of Mark Kelly from Stiefel.

Speaker Change #115: Your next question comes from the line of Mark Kelly from Stifel. Please go ahead.

Mark Kelley: Please go ahead. Great. Thank you.

Speaker Change #116: Great. Thank you and good morning, everyone.

Ofer Druker: Good morning, everyone. I want to ask you about just the TV bigger picture. Are you seeing more, you know, bitable, open-programmatic transactions, or is it still primarily private marketplace deals? And then second, you know, can you maybe expand a bit on the commerce media strategy over the long term? Do you see that more as like a data strategy, or is it going to be data paired with, you know, your ability to buy across, you know, disparate commerce media and retail media networks? Any health there would be great.

Speaker Change #117: I wanted to ask you about just Ptv bigger picture are you seeing more.

Sagi Niri: For full years 2024, we are reaffirming our guidance for contribution extract in a range of approximately $340 to $345 million, adjusted evident of approximately $100 million and for programmatic revenue to reflect approximately 90 percent of full years 2024 revenue. Our momentum from Q2 has carried over into Q3. We're seeing continued strength across our core growth drivers, solid spending trends, growing benefits from recently launch partnerships, increasing tightly demand and improved visibility, reinforcing our confidence in our ability to meet our guidance.

Speaker Change #117: Biddable open programmatic.

Speaker Change #118: Transactions or is it still primarily private marketplace deals.

Speaker Change #118: And then second.

Speaker Change #118: Can you maybe.

Sagi Niri: As a result, we expect contribution extract and programmatic revenue acceleration in H2, with zero-vary growth anticipated in Q3, Q4, H2 and full year 2024.

Expand a bit on the commerce media strategy.

Speaker Change #118: Over the long term do you see that more as like a D.

Speaker Change #118: Data.

Sagi Niri: We anticipate a record year for political contribution extract in 2024, with most of the benefits likely to be recognized in Q4.

Laura Martin: Google we are using also Google and cloud but we are it's not it's not a it's not an issue. In general we are using a one for everything but for also for certain purposes we're using Google and Amazon cloud.

Speaker Change #119: Strategy or is it going to be data paired with your ability to buy across.

Speaker Change #118: Brett.

Speaker Change #120: Commerce media and retail media networks any help there would be great. Thank you.

Ofer Druker: Thank you. I will start with your second question about usage of data with retail, media and in general, so we are not trying to become like traders in data in general, but we are utilizing data in two elements; one of them is on the DSP side. In order to enable better targeting for advertisers in order to reach better results, and usually what we do is we tie our ability to provide data to people spend moving to our platforms and to have a platform from technology perspective and our platform from media perspective, which of course contribute to us meaningfully.

Speaker Change #121: I will start with your second question about the usage of that with retail.

Speaker Change #121: And in general.

Laura Martin: Okay and then this my second question is about you talked about United Airlines which is pretty exciting but when you do a partnership with American Airlines. Is there revenue in that for you immediately or is it more like you do a partnership with United and that then attracts new types of advertisers around ecommerce. So basically when I when we look at the United Airlines for us it's the first step into the world first of all and commercial world which is collected data which is a very important step that they give us the trust and we of course owner them and respect this step and we do everything.

Speaker Change #122: We are not trying to become like traders and does Jonathan.

Speaker Change #122: We are utilities utilizing data and two elements one of them is on the DSP side.

Speaker Change #122: In order to enable better targeting for advertisers in order to reach better results.

Speaker Change #122: Usually what we do is we tied our ability to provide that two people spend moving through our platforms.

Speaker Change #122: Global classroom technology perspective in our platform for media perspective.

Speaker Change #122: Which of course contributes to us being fully.

Ofer Druker: So this is something that we are putting emphasize for a long time on the advertisers side. Also for publishers, publishers started to use data in a very meaningful manner in order to upgrade their capabilities to sell not media by audiences. And we see this trend growing, and we want, of course, to be part of that because we believe in the ability to generate meaningful revenues from the combination of data and media.

Speaker Change #122: So this is something that we are putting emphasize for long time on the advertisers side also for publishers publisher started to use that.

Speaker Change #122: They're very meaningful manner in order to upgrade their capabilities to sell.

Laura Martin: To touch their expectation from us and from the market. The idea is to basically enable it's not that we are we are going to make you two sources of revenue one to operate their activity basically they have the whole system that is selling media selling activation on based on their data. And the second one is that we will be able to offer this data also to our clients on the program article level so these two levels these two revenues channels will basically, coming to Frutation in the near future.

Speaker Change #122: If media buy audiences and we see this trend growing and we want of course to be part of it because we believe in the ability to to break to create to generate meaningful revenues from the combination of data and media.

Ofer Druker: So that's one thing that we are doing; in some cases, we can sell also just data, but it will not be the majority of the revenue that we will generate from that activity. We believe that the major thing will come when we will basically merge it or connect to media.

Speaker Change #122: No.

Speaker Change #122: That's one thing that we're doing in some cases, we can sale also adjust that out but it will not be the majority of the revenues that we regenerate firm from that activity and we believe that.

Speaker Change #122: The major thing will come when we will basically mirrored to connect to two medium.

Ofer Druker: On the question of CTV, if you can refine your question, it would be great just to say for me to understand what you are trying to me to answer about.

Laura Martin: It's new to us, so it's out to say how much revenue it would generate for us, but since it's a very interesting data set of more than 100 million travelers, we believe that it will be meaningful in the years to come.

On the question of CTV.

Speaker Change #124: If you can refine your question it would be great. Just for me to understand what you are trying to do.

Mark Kelley: Yeah, of course. Sure. Yeah, I guess in terms of how CTV inventory is bought today.

Speaker Change #125: To answer about Yeah of course sure Yeah, I guess in terms of how CTV inventory has bought today.

Laura Martin: Okay, perfect. Thanks so much. Thank you. Have a great day. Thank you. Thank you, though.

Ofer Druker: Are you seeing you know a shift towards more bitable and kind of open programmatic or is it still you know private marketplace, you know direct deals that you're seeing primarily today. I think it's a mix. I think that advertisers are closing deals with publishers that they want to run one to one. They call it a they need the pipes in order to do that, and they can use our technology in order to do it in a very good manner. Or sometimes they want to buy programmatically. We are of course in a, we are enabling, we are able to do both, and we can enable our partners to buy one on one or to buy programmatically.

Speaker Change #126: Are you seeing a shift towards more biddable and kind of open programmatic or.

Matthew Condon: Your next question comes from the line of Matt Condon from JMP. Please go ahead. Thank you for taking my questions. My first one's just, you know, following the integration of a MOBI, and it seems that sales execution is improved. Can you just elaborate on this and maybe how you feel about the sales force of where it's today? Of course.

Speaker Change #125: Is it still.

Speaker Change #125: Private marketplace.

Sagi Niri: We also continue to anticipate CTV revenue acceleration in H2, with ear-over-ear growth expected in Q3, Q4, H2, and fully of 2024, driven by increasing demand for our CTV solution and growing revenue tied to our partnership with Alfonso and LG.

Speaker Change #125: Direct deals that you are seeing primarily today. Thank you.

Speaker Change #125: I think it's a mix I think that the.

Sagi Niri: Additionally, we continue to expect growth in our data licensing revenue in full year 2024, compared to fully of 2023, with further acceleration anticipated in 2025.

Speaker Change #127: Advertisers are closing deals with publishers as they want to run one to one because they call it which is.

Speaker Change #127: They need the pipes in order to do that and they can use our technology in order to go through it in the.

Ofer Druker: Basically, about close to two years ago, we acquired a MOBI, which was a bigger company than us. There's like close to 1,000 people. We were 600 people. And when you are combining two sales teams, there's a lot of noise, work, integration, and synchronization that needs to happen between the teams. That's one. The second thing is the offering that needs to be aligned because we are integrating new products. We are creating new offering into the market.

Speaker Change #128: In a very good manner or sometimes they want to buy programmatically. We are of course, we are enabling we are able to do both and we're getting enabled our partners to Dubai, one on one or two buy programmatically in general I think that the.

Ofer Druker: In general, I think that there are it's a the market is is opening up you see a lot of new publishers coming into the market, increasing their inventory and opportunities from one side. Or the other side you see more and more advertisers that are interested to create one and one deals with certain publishers in order to buy the media, and of course we respect both.

Speaker Change #128: Yeah.

Speaker Change #128: The market is opening up youll see a lot of new partnerships coming into the market.

Creasing their inventory and opportunities for one side or the other side, you'll see more and more.

Ofer Druker: So we need to, first of all, build the offering. The second thing is basically educate, first of all, our people about the new offering and adjust them to the market needs. Sometimes you need to, it's a process. It's not that the first time that you are creating an offer is like a working 100%. So you need to adjust it over time. And what we saw lately is first of all, the establishment of the team, people that know the assignments, they believe they feel confident about the technology and product that we are offering.

Speaker Change #129: Those that are interested to create 201 deals with certain publishers in order to buy the media.

Speaker Change #129: And of course, we would expect boats, it's all for me to say.

Ofer Druker: It's also me to say which one is bigger right now because I think that even that we are in a major player in CTV. It's very hard to say the full picture because right now we see that we see growth; we see a lot of programmatic, of course, activity. But we start to see growth on one on one when people are basically using our technology in order to serve campaigns on on publishers that they. One they can ask to buy just this specific publishers or they ever deal with these publishers that they can utilize throughout.

Speaker Change #129: Which one is bigger right now because I think that.

Speaker Change #129: Given that we are in may.

Speaker Change #130: A major player in CTV, it's fair to say the full picture because right now we see that we see growth we see a lot of programmatic of course activity, but we start to see growth on one on one when people are basically using our technology in order to serve campaigns on publishers.

Ofer Druker: We package it and tighten the packaging in a way that they can explain it to the other side in a more meaningful and simple manner. And we feel the results, meaning people, people understand what we have to offer in the marketplace. They understand what is the value that we, the our products can bring to them and they sign in and grow the revenues with us. And it's a process that I think that will just get better over time because basically, we are learning also from the process that I said it in ongoing process.

Speaker Change #130: One they can ask to buy just this specific.

Publishers or they ever deal with these publishers that they can utilize through our technology.

Ofer Druker: Technology.

Mark Kelley: Great. Thank you, Ofer.

Speaker Change #131: Great. Thank you.

Ofer Druker: You're welcome.

Speaker Change #132: Youre welcome.

Ofer Druker: As there are no further questions at this time, I would now like to turn the call over back to Mr. Ofer Druker for closing remarks. Thank you. So, as we indicated also in our PR and our message, after a long period of time, of working very hard in order to integrate the companies that the company that we acquired, a movie, into our company, to match the sales teams, like was mentioned here in our conversation, to build their unified offering and messaging, and basically to be able to package better. And after the rebranding process that we did last year, that helped us a lot and helped people to understand better what we are offering, we see very good improvement in the parameters and the performance of the company from almost every aspect that we can look at.

Speaker Change #133: As there are no further questions at this time I would now like to turn the call over back to Mr. Ofer <unk> for closing remarks.

Ofer Druker: And the advantage that we got is that we basically got a lot of products that we integrated into a packaging that is makes really clear advantage to the clients of the other side to use. So when our teams are aligned, educated, trained and they are coming to the market with organized material and offering its workings. That's why we are talking about better execution. We are hiring more people, we are basically training them better and we are able to give them more tools in order to win in the market. Great, that's helpful.

Speaker Change #133: Thank you.

Speaker Change #133: So as we indicated all saw an hour.

Speaker Change #135: And our message.

Speaker Change #136: After a long period of time are working very hard in order to integrate the companies. The company that we acquire them will be entirely company to merge the sales teams like was mentioned during our conversation to build their unified offering and messaging and basically to be able to package better and after the.

Speaker Change #137: Rebranding process that we did last year that help ocelot and help people to understand better what we are offering we see very good improvement in the in the parameters of the performance of the company, but more was almost every aspect that we can look at.

Sagi Niri: We also anticipate adjusted EBITDA and adjusted EBITDA margins will be higher in Q3, Q4, H2, and fully of 2024 than in the prior ear period, driven by expectation for increased contribution and extra.

Ofer Druker: And then maybe my second one, can you talk about the progress you're making with the Stagwell partnership and just how demand is trended? I guess relative to your expectations.

Ofer Druker: And we are happy about it, of course, because we worked for a long time very hard in order to create this situation. And we are really excited, and we believe in what we are doing. We still hold our strategy, which is around CTV video and in-ense data that is basically unifying our platform and touching every point of the journey. And I think that we are equipped with the right tools and partnerships in order to be a major player in this industry around the elements that I just mentioned, which is video, CTV, data. So, thank you everyone.

Sagi Niri: Our depth-free balance sheet and crash-generating capabilities enable flexibility to invest in shared repurchases, sales growth initiatives, and innovation, and at this point in time, we don't plan any major new term acquisitions.

Speaker Change #138: And we are happy about it of course, because we worked for a long time very hard in order to create a situation and we are really excited and we believe in what we're doing we still hold our our strategy, which is around CTV video and enhanced data that is basically unifying our platform and touching every port.

Sagi Niri: We will continue shifting our focus to product innovation and expand our GNII and machine learning utilization and expect GNII to be a primary product investment focus in 2025.

Ofer Druker: Stagwell is an important pattern for us. They are a great company that is basically also challenging the market in so many ways and forms. And we are in the process now of working together, training as we mentioned, educating, building together products that you know, they are helping us to improve some of our products because of their better experience working with clients. They are closer to clients. They are an agency of course.

Sagi Niri: We will also boost our sales and marketing investments to further our commercial traction and ensure we continue expanding upon our recent momentum.

Speaker Change #138: Every point of the journey and I think that we are.

Speaker Change #138: Equipped with the right tools and partnerships in order to to be a major player in this industry around the elements I just mentioned, we choose video CTV and data.

Sagi Niri: As offer mentioned, the success we are seeing now is a byproduct of our hard work enhancing our holistic ability to execute.

Sagi Niri: Our platform approach and ability to offer customers in logistics, software, and data solution across the ethics, supply chain, and across their workflows continues to depreciate nexon, enables more shots on goal, and positions us for sustainable and accelerated long-term growth and expanded profitability.

Sagi Niri: Our recently launched data platform is also unlocking new high-margined data licensing revenue opportunities, and commerce media revenue opportunities, and attracting more advertising spend as the industry increasingly takes a data driven approach to achieve better results and returns.

Ofer Druker: And in some ways, we are helping them on a technology level. So I think it's in process and we believe that it will grow and it's meaningful because we believe that the Stagwell is one of the challenges of this industry and we believe that they will keep growing and we will be able to keep growing, and we'll be just with them.

Speaker Change #138: Thank you everyone.

Ofer Druker: And I hope to see you soon again. Thank you very much.

Sagi Niri: The industry's major players are now actively seeking multi-solution data and take partnerships across our platform, leading to more sizable and durable revenue opportunities, and their adoption and recognition is driving our big names to engage with us, accelerating our growth prospects.

Ofer Druker: Great, thank you so much. You're welcome.

Speaker Change #138: Hope to see you soon again thank.

Speaker Change #138: Thank you very much.

Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Speaker Change #139: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.

Eric Martinuzzi: I wanted to revisit one of the issues that you brought up last, quarter and this was mentioned earlier in the call but this you know one of the issues for Q1 was and the CTV revenue was the you know customers small and mid-sized agency customers that were opting for the company's lower cost programmatic display and mobile and desktop video solutions.

Eric Martinuzzi: With this recovery that we're seeing in that business is this these same customers coming back because their end advertisers have budget or is this kind of larger larger brands and agencies moving the needle for you?

Speaker Change #140: Please wait the conference will begin shortly.

Ofer Druker: Basically when you're looking at business, business cannot grow so fast, Eric just based on new money it's always a mix of a better better revenues that is coming from your current clients and we have hundreds of clients other of partners and clients advertisers that are buying from our CTV media so what we feel that as I mentioned better better education better sales processes that we basically brought into the game because of the what I answered before about the better integration alignment of the sales teams and so on and of course something which is very meaningful in CTV is what I mentioned the first quarter is true and that's what's happening and you can see that across the across the across the industry is basically when there is like doubt or uncertainty people are pulling their budgets more to the side of performance media and less to CTV and high-end inventory and that's what helped us last year and the beginning of this year and we see improvement in the sentiment of the advertisers to invest more and together with our better capabilities better organization a more tight products and offering we see the upside and we see the results in the CTV front which have made a very big jump in revenues and in in our capability basically to provide a good solutions to partners.

Eric Martinuzzi: Okay and then revisiting the free cash flow expectation for 2024 Sagi I think you've said this roughly 100 million dollars of adjusted EBITDA, you expected that to translate into around 60 million free cash flows that's still the expectation for 2024?

Operator: Yes I think it's still it's like the you know the low range of what we are anticipating it can go up to 65% but yes this is like the you know the range that we anticipate that we can generate through 2024 of course we are still utilizing a lot of the cash for our buyback plans.

Sagi Niri: The one that we already ended in Q1 of the $20 million that we announced already at the, end of 2023 and issued a new one in April, May of $50 million.

Speaker Change #139: Sure.

Sagi Niri: So yes, as long as, you know, the board and management will think that the undervalue, of the company is worth spending our money and buy back our shares, we will continue to do that as well.

Speaker Change #139: [music].

Eric Martinuzzi: Your next question comes from the line of Eric Martinuzzi from Lake Street. Please go ahead. I wanted to revisit one of the issues that you brought up last quarter and this was mentioned earlier in the call, but this one of the issues for Q1 and the CTV revenue was the, you know, customers small and mid-sized agency customers that were opting for the company's lower cost, programmatic display and mobile and desktop video solutions.

Speaker Change #139: Okay.

Sagi Niri: For some time, challenging market conditions and our focus on improving the business for the long-term forces to be on defense.

Sure.

Speaker Change #139: [music].

Speaker Change #139: Yes.

Speaker Change #139: Yes.

Speaker Change #139: Yes.

Speaker Change #139: Yes.

Speaker Change #139: Sure.

Speaker Change #139: [music].

Sagi Niri: Now, we're back on the offensive and excellently positioned to realize our strategic vision of becoming one of the industry's most sought after strategic ethics and data partners.

Ofer Druker: With this recovery that we're seeing in that business, is this these same customers coming back because their end advertisers have budget or is this kind of larger brands and agencies moving the needle for you? Basically, when you're looking at business, business cannot grow so fast. Eric is just based on new money. It's always a mix of a better, better revenues that is coming from your coin clients and we have hundreds of clients, other partners and clients advertisers that are buying from our CTV media.

Operator: We're excited for what lies ahead and operator will now take questions.

Operator: Thank you.

Operator: Ladies and gentlemen, we will now begin our question and answer a session.

Operator: If you have dialed in and would like to ask a question, please press star, followed by the number one on your telephone keypad.

Ofer Druker: So what we feel that as I mentioned, better education, better sales processes that we basically brought into the game because of the, what I answered before about the better integration, alignment of the sales teams and so on. And of course, something which is very meaningful in CTV is what I mentioned the first quarter is true and that's what's happening and you can see that across the, across the, across the industry is basically when there is like doubt or uncertainty, people are pulling their budgets more to the side of performance media and less to CPV and INS inventory and that's what Erta's last year in the beginning of this year and we see improvement in the sentiment of the advertisers to invest more and together with our better capabilities, better organization and more tight products and offering.

Operator: If you would like to withdraw your question, simply press star one again.

Ofer Druker: We see the upside and we see the results in the CTV front which have made a very big jump in revenues and in our capability, basically to provide a good solutions to partners.

Sagi Niri: Okay, and then revisiting the free cash flow expectation for 2024. Suggie, I think he said that this roughly $100 million of adjusted EBITDA, you expected that to translate into around 60 million free cash flows. That's still the expectation for 2024. Yes, I think it's still, it's like the, you know, the low range of what we are anticipating, it can go up to 65%, but yes, this is like the, you know, the range that we anticipate that we can generate through 2024.

Sagi Niri: Of course, we are still utilizing a lot of the cash for our buyback plans. The one that we already ended in Q1 of the 20 million that we announced already at the end of 2023 and issued a new one in April May of 50 million. So yes, as long as you know, the board and management will think that the undervalue of the company is worth spending our money and buy the car shares will continue to do that as well.

Sagi Niri: Thank you.

Operator: If you are called upon to ask your question and are listening to be allowed speaker on your device, please pick up your handset and show that your phone is not on mute when asking your question.

Mauricio Munoz: Your next question comes from the line of Mauricio Munoz from Raymond James, please go ahead. Yeah, thank you for taking my question. This is Mauricio for Andrew today. Yeah, I just wanted to go back to the questions of margins. So Sagi, obviously margins were quite strong in the quarter and just trying to understand the sources of upside and how sustainable these are. So you talked about your ability to capture cost efficiencies and I'm assuming some head down rationalization and maybe capability integrations now that we have been fully integrated for for over a quarter, we're just wondering about any positive margin contributions from the revenue mix.

Operator: Thank you.

Matthew Swanson: Your first question comes from the line of Matt Swanson from RBC Capital Markets.

Matthew Swanson: Please go ahead.

Matthew Swanson: Thanks for taking my questions and congratulations on the quarter.

Matthew Swanson: Great to see the rebound in CTV.

Matthew Swanson: I know we talked last quarter about some advertisers opting to lower cost formats.

Mauricio Munoz: Particularly any margin of sight from data licensing revenue or as Vida license revenues grant with the platform scaling, so any color around that will be helpful. Sure. So I think you touched all of the right point. We announced yesterday on our the trade on next and the trade as partnership around ACR data in the US, Canada, UK and Australia. I think that this is like the, you know, our for into the mark into this vertical or line of business where we are generating money out of the data that we have exclusively.

Matthew Swanson: Could you dive in a little bit deeper on the dynamics that led to the growth, the kind of the mix of the benefit from more adoption of premium solutions versus the increased CTV supply that may be make some of these ads more portable.

Ofer Druker: Hi, Math, of course, thank you for the question.

Mauricio Munoz: And probably, you know, over time, we will have more partnerships on that front and the revenue that will generate from that will grow up as the partners will use it and utilize it more and more as we will see, you know, the benefit from that. And as Vida and slash I sense will sell more TV sets, so I think that this line of business is contributing direct to the to the data line, we don't have any cost or any extra incremental cost around that.

Mauricio Munoz: I think that's what I said, you know, everything in our industry is the right seasonality so we can have a, you know, a better quarter or a much better quarter in the margin. And they are just a baby, the line will be will be better at that at that quarter specifically, but again, I think we should look on on our margins on a really basis. And for that, I think that in 2024, we are going to generate something around the 30% and going forward.

Mauricio Munoz: Because as you said, and as offer mentioned, the mobile integration that is already been fulfilled, I don't want to say long time ago, but it's already there. I think that now, as we said in the in the call before we are back on the offense and we are going, to more and more efficiency and more cost leverage on our cost base. And I think that in the last, I don't know, four quarters at least, we are seeing like the numbers of the total account of the companies decreasing the quarter over quarter. And of course, this is helping to increase our margin. And it will be, you know, the same as we will move forward. Well, thank you. Very helpful.

Sagi Niri: And then on, on capital allocation, maybe you can give us an update on, on, on your plans. Obviously, the retired 100 million indeed now have 150 to million cash. So I'm assuming that following the acquisition of a movie, you've probably got a pause on your M&A plans. But how do we think about the pace of the ongoing, ongoing share a buyback program and any plans to simplify your, your church structure? Thank you.

Sagi Niri: Yeah, I think, as I said before, we are generating money on, on a regular basis, our net cash after we fully retain our 100 million dollars of loan that we took in order to find and some of the mobile acquisition already was fully repaid. And we will keep generating money. This is our DNA and this is our plan. And as long as, you know, management and board will think that the value of the company or the is, is undervalued in the market, we will keep on buying back our shares.

Sagi Niri: And according to your first part of the question, yes, I think that now, after the full integration of a movie, we don't think that we are missing like any critical part and any important part. Of course, we may go into something that can add, you know, a critical piece that we may need, but again, it will be a small acquisition or an IT acquisition in order to make a fast progress instead of develop, develop it by ourselves.

Sagi Niri: But again, we are not actively engaged in any MNA, and we are not looking actively for any MNA. We think that we have, you know, all the parts we need. And it's now only about going to offense, execute, and scaling our numbers up. Great. Thank you. You're welcome.

Mark Kelley: Your next question comes from the line of Mark Kelly from Stiefel. Please go ahead. Great. Thank you. Good morning, everyone. I want to ask you about just the TV bigger picture. Are you seeing more, you know, bitable, open-programmatic transactions or is it still primarily private marketplace deals? And then second, you know, can you maybe expand a bit on the commerce media strategy over the long term? Do you see that more as like a data strategy or is it going to be data paired with, you know, your ability to buy across, you know, disparate commerce media and retail media networks? Any health there would be great. Thank you.

Ofer Druker: For many years we are putting a lot of emphasis on CTV and I think that the few things happen basically. One of them is that the market is in a better condition so people are willing to spend more on or to invest more on CTV channels instead of what we said before that they were like running to cheaper channels in order to get results.

Ofer Druker: Again we see movement of budget to CTV which is good for us.

Ofer Druker: The second thing is the amount of tools and technology that we created for CTV is really unparalleled and when you're looking at the abilities of our clients to target, to measure and the major booster of publishers that we got is giving them a lot of opportunities, is basically not just to target well but also to reach big audience thanks to the spread of the publishers that we got.

Ofer Druker: I will start with your second question about usage of data with retail, media and in general so we are not trying to become like traders in data in general but we are utilizing data in two elements one of them is on the DSP side. In order to enable better targeting for advertisers in order to reach better results and usually what we do is we tie our ability to provide data to people spend moving to our platforms and to have a platform from technology perspective and our platform from media perspective which of course contribute to us meaningfully.

Ofer Druker: So they are getting much better results than usual when they are using our platform for CTV and we see that for many for a long time but now it's even in ends thanks to the release of our data and management platform and the enablement of the discovery with the ACR data VIDA that is included and enabled to create segments and audiences and to learn more insights about the users.

Ofer Druker: So this is something that we are putting emphasize for a long time on the advertisers side. Also for publishers, publishers started to use data in a very meaningful manner in order to upgrade their capabilities to sell not media by audiences. And we see this trend growing and we want of course to be part of that because we believe in in the ability to to create to generate meaningful revenues from the combination of data and media.

Ofer Druker: So that's one thing that we are doing in some cases we can sell also just data but it will not be the majority of the revenue that we will generate from from that activity and we believe that the major thing will come when we will basically merge it or connect to to media.

Ofer Druker: On the question of CTV, if you can refine your question it would be great just say for me to understand what you are trying to me to answer about. Yeah, of course. Sure. Yeah, I guess in terms of how CTV inventory is is bought today. Are you seeing you know a shift towards more bitable and kind of open programmatic or is it still you know private marketplace, you know direct deals that you're seeing primarily today.

Ofer Druker: I think it's a mix I think that advertisers are closing deals with publishers that they want to run one to one they call it, which is a they need the pipes in order to do that and they can use our technology in order to do it in a very good manner. Or sometimes they want to buy programmatically we are of course in a we are enabling we are able to do both and we can enable our partners to to buy one on one or to buy programmatically.

Ofer Druker: In general, I think that there are it's a the market is is opening up you see a lot of new publishers coming into the market increasing their inventory and opportunities from one side. Or the other side you see more and more advertisers that are interested to create one and one deals with certain publishers in order to buy the media and and of course we respect both. It's also me to say which one is bigger right now because I think that even that we are in a major player in CTV it's very hard to say the full picture because right now we see that we see growth we see a lot of programmatic of course activity.

Ofer Druker: But we start to see growth on one on one when people are basically using our technology in order to serve campaigns on on publishers that they. One they can ask to buy just this specific publishers or they ever deal with these publishers that they can utilize throughout. Technology.

Ofer Druker: Great. Thank you, Ofer. You're welcome.

Ofer Druker: As there are no further questions at this time, I would now like to turn the call over back to Mr. Ofer Druker for closing remarks. Thank you. So, as we indicated also in our in our PR and our message, after a long period of time, of working very hard in order to integrate the companies that the company that we acquired, a movie into our company, to match the sales teams, like was mentioned here in our conversation, to build their unified offering and messaging, and basically to be able to package better.

Ofer Druker: So all of them is coming together they're still worth to do but we are on the right trend and we see that in the numbers.

Matthew Swanson: Thanks and then also great to see the margin expansion after all the heavy lifting you've done for the platform integration.

Ofer Druker: And after the rebranding process that we did last year that helped us a lot and helped people to understand better what we are offering, we see very good improvement in the parameters and the performance of the company from almost every aspect that we can look at. And we are happy about it, of course, because we worked for a long time very hard in order to create this situation. And we are really excited and we believe in what we are doing.

Ofer Druker: So how should we think about margins moving forward as you reap the benefits in those previous investments but then also highlighting some of the new investments specifically around Genai and sales and marketing.

Ofer Druker: I think that you know we did this quarter 32 percent of adjusted VIDA margin out of contribution extract.

Ofer Druker: I think that this you know again we are weighted as our peers in the industry and as the industry are all for age 2 and of course it's all around the scale gain so as long as our scale will increase for sure our margins will be better.

Ofer Druker: We still hold our strategy which is around CTV video and in-ense data that is basically unifying our platform and touching every point of the journey. And I think that we are equipped with the right tools and partnerships in order to be a major player in this industry around the elements that I just mentioned, which is video CTV data.

Ofer Druker: Having said that I think we are still you know we're affirming our guidance of around 100 million dollars of adjusted VIDA out of let's take the midpoint of 342.5 so it's somewhere around 30 percent I think that on the early basis this will represent what we can do now of course going into 2025 I think that we can do better and again the weighted margin between the different quarters is reflected and related to the seasonality.

Ofer Druker: So I'm guessing that in Q4 we will do much more than 32% but on a daily basis and this is the way you should look at it I think we should now we will settle it around on the 30th and going forward I think that we can do more than that.

Matthew Swanson: Thank you.

Ofer Druker: So, thank you everyone. And I hope to see you soon again. Thank you very much.

Laura Martin: Your next question comes from the line of Laura Martin from meet him please go ahead.

Laura Martin: Good morning.

Laura Martin: The first question I have is could you talk about your GNI wrote that please where do you think you're going to be focusing first on integrating GNI into your product portfolio.

Ofer Druker: Hi Laura of course.

Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Ofer Druker: So our advantage when we look at the GNI is that we have also a lot of point of data connected to our activation platform which is giving us a lot of opportunities to integrate GNI into our work stream into our platform.

Ofer Druker: The first place that we are going to integrate GNI I will be around our discovery which is the basically the unit the data platform that enable advertisers to source the audiences to learn about to get more insights and to get sentiment to the products and services and to create segments that they can operate on our platform.

Ofer Druker: So we believe that this is the first place that we need to invest and integrate GNI and it's in the process already.

Ofer Druker: And we believe that thanks to the fact that it's all around data that is connected to our activation tools the GNI will have like all capabilities and power and basically the ability of the of users to utilize the service will not just be based on the person that is.

Ofer Druker: Operating the discovery tool but from the GNI and the accumulative knowledge and capabilities of our company.

Laura Martin: Okay and it's built on which cloud which cloud are you using open AI are you using Google cloud which weren't using.

Ofer Druker: Google we are using also Google and cloud but we are it's not it's not a it's not an issue.

Ofer Druker: In general we are using a one for everything but for also for certain purposes we're using Google and Amazon cloud.

Laura Martin: Okay and then this my second question is about you talked about United Airlines which is pretty exciting but when you do a partnership with American Airlines.

Ofer Druker: Is there revenue in that for you immediately or is it more like you do a partnership with United and that then attracts new types of advertisers around ecommerce.

Ofer Druker: So basically when I when we look at the United Airlines for us it's the first step into the world first of all and commercial world which is collected data which is a very important step that they give us the trust and we of course owner them and respect this step and we do everything.

Ofer Druker: To touch their expectation from us and from the market.

Ofer Druker: The idea is to basically enable it's not that we are we are going to make you two sources of revenue one to operate their activity basically they have the whole system that is selling media selling activation on based on their data.

Ofer Druker: And the second one is that we will be able to offer this data also to our clients on the program article level so these two levels these two revenues channels will basically, coming to Frutation in the near future.

Ofer Druker: It's new to us, so it's out to say how much revenue it would generate for us, but since it's a very interesting data set of more than 100 million travelers, we believe that it will be meaningful in the years to come.

Laura Martin: Okay, perfect.

Laura Martin: Thanks so much.

Operator: Thank you.

Operator: Have a great day.

Operator: Thank you.

Matthew Condon: Thank you, though.

Matthew Condon: Your next question comes from the line of Matt Condon from JMP.

Matthew Condon: Please go ahead.

Matthew Condon: Thank you for taking my questions.

Ofer Druker: My first one's just, you know, following the integration of a MOBI, and it seems that sales execution is improved.

Ofer Druker: Can you just elaborate on this and maybe how you feel about the sales force of where it's today?

Ofer Druker: Of course.

Ofer Druker: Basically, about close to two years ago, we acquired a MOBI, which was a bigger company than us.

Ofer Druker: There's like close to 1,000 people.

Ofer Druker: We were 600 people. And when you are combining two sales teams, there's a lot of noise, work, integration, and synchronization that needs to happen between the teams.

Ofer Druker: That's one.

Ofer Druker: The second thing is the offering that needs to be aligned because we are integrating new products.

Ofer Druker: We are creating new offering into the market.

Ofer Druker: So we need to, first of all, build the offering.

Ofer Druker: The second thing is basically educate, first of all, our people about the new offering and adjust them to the market needs.

Ofer Druker: Sometimes you need to, it's a process.

Ofer Druker: It's not that the first time that you are creating an offer is like a working 100%.

Ofer Druker: So you need to adjust it over time.

Ofer Druker: And what we saw lately is first of all, the establishment of the team, people that know the assignments, they believe they feel confident about the technology and product that we are offering.

Ofer Druker: We package it and tighten the packaging in a way that they can explain it to the other side in a more meaningful and simple manner.

Ofer Druker: And we feel the results, meaning people, people understand what we have to offer in the marketplace.

Ofer Druker: They understand what is the value that we, the our products can bring to them and they sign in and grow the revenues with us.

Ofer Druker: And it's a process that I think that will just get better over time because basically, we are learning also from the process that I said it in ongoing process.

Ofer Druker: And the advantage that we got is that we basically got a lot of products that we integrated into a packaging that is makes really clear advantage to the clients of the other side to use.

Ofer Druker: So when our teams are aligned, educated, trained and they are coming to the market with organized material and offering its workings.

Ofer Druker: That's why we are talking about better execution. We are hiring more people, we are basically training them better and we are able to give them more tools in order to win in the market.

Matthew Condon: Great, that's helpful.

Matthew Condon: And then maybe my second one, can you talk about the progress you're making with the Stagwell partnership and just how demand is trended?

Ofer Druker: I guess relative to your expectations.

Ofer Druker: Stagwell is an important pattern for us.

Ofer Druker: They are a great company that is basically also challenging the market in so many ways and forms.

Ofer Druker: And we are in the process now of working together, training as we mentioned, educating, building together products that you know, they are helping us to improve some of our products because of their better experience working with clients. They are closer to clients.

Ofer Druker: They are an agency of course.

Ofer Druker: And in some ways, we are helping them on a technology level.

Ofer Druker: So I think it's in process and we believe that it will grow and it's meaningful because we believe that the Stagwell is one of the challenges of this industry and we believe that they will keep growing and we will be able to keep growing, and we'll be just with them.

Matthew Condon: Great, thank you so much.

Matthew Condon: You're welcome.

Eric Martinuzzi: Your next question comes from the line of Eric Martinuzzi from Lake Street.

Eric Martinuzzi: Please go ahead.

Eric Martinuzzi: I wanted to revisit one of the issues that you brought up last quarter and this was mentioned earlier in the call, but this one of the issues for Q1 and the CTV revenue was the, you know, customers small and mid-sized agency customers that were opting for the company's lower cost, programmatic display and mobile and desktop video solutions.

Ofer Druker: With this recovery that we're seeing in that business, is this these same customers coming back because their end advertisers have budget or is this kind of larger brands and agencies moving the needle for you?

Ofer Druker: Basically, when you're looking at business, business cannot grow so fast.

Ofer Druker: Eric is just based on new money.

Ofer Druker: It's always a mix of a better, better revenues that is coming from your coin clients and we have hundreds of clients, other partners and clients advertisers that are buying from our CTV media.

Ofer Druker: So what we feel that as I mentioned, better education, better sales processes that we basically brought into the game because of the, what I answered before about the better integration, alignment of the sales teams and so on.

Ofer Druker: And of course, something which is very meaningful in CTV is what I mentioned the first quarter is true and that's what's happening and you can see that across the, across the, across the industry is basically when there is like doubt or uncertainty, people are pulling their budgets more to the side of performance media and less to CPV and INS inventory and that's what Erta's last year in the beginning of this year and we see improvement in the sentiment of the advertisers to invest more and together with our better capabilities, better organization and more tight products and offering.

Ofer Druker: We see the upside and we see the results in the CTV front which have made a very big jump in revenues and in our capability, basically to provide a good solutions to partners.

Sagi Niri: Okay, and then revisiting the free cash flow expectation for 2024. Suggie, I think he said that this roughly $100 million of adjusted EBITDA, you expected that to translate into around 60 million free cash flows. That's still the expectation for 2024.

Sagi Niri: Yes, I think it's still, it's like the, you know, the low range of what we are anticipating, it can go up to 65%, but yes, this is like the, you know, the range that we anticipate that we can generate through 2024.

Sagi Niri: Of course, we are still utilizing a lot of the cash for our buyback plans.

Sagi Niri: The one that we already ended in Q1 of the 20 million that we announced already at the end of 2023 and issued a new one in April May of 50 million.

Sagi Niri: So yes, as long as you know, the board and management will think that the undervalue of the company is worth spending our money and buy the car shares will continue to do that as well.

Sagi Niri: Thank you.

Mauricio Munoz: Your next question comes from the line of Mauricio Munoz from Raymond James, please go ahead.

Mauricio Munoz: Yeah, thank you for taking my question.

Mauricio Munoz: This is Mauricio for Andrew today.

Sagi Niri: Yeah, I just wanted to go back to the questions of margins.

Sagi Niri: So Sagi, obviously margins were quite strong in the quarter and just trying to understand the sources of upside and how sustainable these are.

Sagi Niri: So you talked about your ability to capture cost efficiencies and I'm assuming some head down rationalization and maybe capability integrations now that we have been fully integrated for for over a quarter, we're just wondering about any positive margin contributions from the revenue mix.

Sagi Niri: Particularly any margin of sight from data licensing revenue or as Vida license revenues grant with the platform scaling, so any color around that will be helpful.

Sagi Niri: Sure.

Sagi Niri: So I think you touched all of the right point.

Sagi Niri: We announced yesterday on our the trade on next and the trade as partnership around ACR data in the US, Canada, UK and Australia.

Sagi Niri: I think that this is like the, you know, our for into the mark into this vertical or line of business where we are generating money out of the data that we have exclusively.

Sagi Niri: And probably, you know, over time, we will have more partnerships on that front and the revenue that will generate from that will grow up as the partners will use it and utilize it more and more as we will see, you know, the benefit from that.

Sagi Niri: And as Vida and slash I sense will sell more TV sets, so I think that this line of business is contributing direct to the to the data line, we don't have any cost or any extra incremental cost around that.

Sagi Niri: I think that's what I said, you know, everything in our industry is the right seasonality so we can have a, you know, a better quarter or a much better quarter in the margin.

Sagi Niri: And they are just a baby, the line will be will be better at that at that quarter specifically, but again, I think we should look on on our margins on a really basis.

Sagi Niri: And for that, I think that in 2024, we are going to generate something around the 30% and going forward.

Sagi Niri: Because as you said, and as offer mentioned, the mobile integration that is already been fulfilled, I don't want to say long time ago, but it's already there.

Sagi Niri: I think that now, as we said in the in the call before we are back on the offense and we are going, to more and more efficiency and more cost leverage on our cost base.

Sagi Niri: And I think that in the last, I don't know, four quarters at least, we are seeing like the numbers of the total account of the companies decreasing the quarter over quarter.

Sagi Niri: And of course, this is helping to increase our margin.

Sagi Niri: And it will be, you know, the same as we will move forward.

Sagi Niri: Well, thank you.

Sagi Niri: Very helpful.

Sagi Niri: And then on, on capital allocation, maybe you can give us an update on, on, on your plans.

Sagi Niri: Obviously, the retired 100 million indeed now have 150 to million cash.

Sagi Niri: So I'm assuming that following the acquisition of a movie, you've probably got a pause on your M&A plans.

Sagi Niri: But how do we think about the pace of the ongoing, ongoing share a buyback program and any plans to simplify your, your church structure?

Sagi Niri: Thank you.

Sagi Niri: Yeah, I think, as I said before, we are generating money on, on a regular basis, our net cash after we fully retain our 100 million dollars of loan that we took in order to find and some of the mobile acquisition already was fully repaid.

Sagi Niri: And we will keep generating money.

Sagi Niri: This is our DNA and this is our plan.

Sagi Niri: And as long as, you know, management and board will think that the value of the company or the is, is undervalued in the market, we will keep on buying back our shares.

Sagi Niri: And according to your first part of the question, yes, I think that now, after the full integration of a movie, we don't think that we are missing like any critical part and any important part.

Sagi Niri: Of course, we may go into something that can add, you know, a critical piece that we may need, but again, it will be a small acquisition or an IT acquisition in order to make a fast progress instead of develop, develop it by ourselves.

Sagi Niri: But again, we are not actively engaged in any MNA, and we are not looking actively for any MNA.

Sagi Niri: We think that we have, you know, all the parts we need.

Sagi Niri: And it's now only about going to offense, execute, and scaling our numbers up.

Sagi Niri: Great.

Sagi Niri: Thank you.

Sagi Niri: You're welcome.

Mark Kelley: Your next question comes from the line of Mark Kelly from Stiefel.

Mark Kelley: Please go ahead.

Mark Kelley: Great.

Mark Kelley: Thank you.

Mark Kelley: Good morning, everyone.

Ofer Druker: I want to ask you about just the TV bigger picture.

Ofer Druker: Are you seeing more, you know, bitable, open-programmatic transactions or is it still primarily private marketplace deals?

Ofer Druker: And then second, you know, can you maybe expand a bit on the commerce media strategy over the long term?

Ofer Druker: Do you see that more as like a data strategy or is it going to be data paired with, you know, your ability to buy across, you know, disparate commerce media and retail media networks?

Ofer Druker: Any health there would be great.

Ofer Druker: Thank you.

Ofer Druker: I will start with your second question about usage of data with retail, media and in general so we are not trying to become like traders in data in general but we are utilizing data in two elements one of them is on the DSP side.

Ofer Druker: In order to enable better targeting for advertisers in order to reach better results and usually what we do is we tie our ability to provide data to people spend moving to our platforms and to have a platform from technology perspective and our platform from media perspective which of course contribute to us meaningfully.

Ofer Druker: So this is something that we are putting emphasize for a long time on the advertisers side.

Ofer Druker: Also for publishers, publishers started to use data in a very meaningful manner in order to upgrade their capabilities to sell not media by audiences.

Ofer Druker: And we see this trend growing and we want of course to be part of that because we believe in in the ability to to create to generate meaningful revenues from the combination of data and media.

Ofer Druker: So that's one thing that we are doing in some cases we can sell also just data but it will not be the majority of the revenue that we will generate from from that activity and we believe that the major thing will come when we will basically merge it or connect to to media.

Ofer Druker: On the question of CTV, if you can refine your question it would be great just say for me to understand what you are trying to me to answer about.

Ofer Druker: Yeah, of course.

Ofer Druker: Sure.

Ofer Druker: Yeah, I guess in terms of how CTV inventory is is bought today.

Ofer Druker: Are you seeing you know a shift towards more bitable and kind of open programmatic or is it still you know private marketplace, you know direct deals that you're seeing primarily today.

Ofer Druker: I think it's a mix I think that advertisers are closing deals with publishers that they want to run one to one they call it, which is a they need the pipes in order to do that and they can use our technology in order to do it in a very good manner.

Ofer Druker: Or sometimes they want to buy programmatically we are of course in a we are enabling we are able to do both and we can enable our partners to to buy one on one or to buy programmatically.

Ofer Druker: In general, I think that there are it's a the market is is opening up you see a lot of new publishers coming into the market increasing their inventory and opportunities from one side.

Ofer Druker: Or the other side you see more and more advertisers that are interested to create one and one deals with certain publishers in order to buy the media and and of course we respect both.

Ofer Druker: It's also me to say which one is bigger right now because I think that even that we are in a major player in CTV it's very hard to say the full picture because right now we see that we see growth we see a lot of programmatic of course activity.

Ofer Druker: But we start to see growth on one on one when people are basically using our technology in order to serve campaigns on on publishers that they.

Ofer Druker: One they can ask to buy just this specific publishers or they ever deal with these publishers that they can utilize throughout.

Ofer Druker: Technology.

Ofer Druker: Great.

Ofer Druker: Thank you, Ofer.

Ofer Druker: You're welcome.

Ofer Druker: As there are no further questions at this time, I would now like to turn the call over back to Mr. Ofer Druker for closing remarks.

Ofer Druker: Thank you.

Ofer Druker: So, as we indicated also in our in our PR and our message, after a long period of time, of working very hard in order to integrate the companies that the company that we acquired, a movie into our company, to match the sales teams, like was mentioned here in our conversation, to build their unified offering and messaging, and basically to be able to package better.

Ofer Druker: And after the rebranding process that we did last year that helped us a lot and helped people to understand better what we are offering, we see very good improvement in the parameters and the performance of the company from almost every aspect that we can look at.

Ofer Druker: And we are happy about it, of course, because we worked for a long time very hard in order to create this situation.

Ofer Druker: And we are really excited and we believe in what we are doing.

Ofer Druker: We still hold our strategy which is around CTV video and in-ense data that is basically unifying our platform and touching every point of the journey.

Ofer Druker: And I think that we are equipped with the right tools and partnerships in order to be a major player in this industry around the elements that I just mentioned, which is video CTV data.

Ofer Druker: So, thank you everyone.

Ofer Druker: And I hope to see you soon again.

Ofer Druker: Thank you very much.

Operator: Ladies and gentlemen, this concludes today's conference call.

Operator: Thank you for your participation.

Operator: You may now disconnect.