Q3 2024 Nexxen International Ltd Earnings Call
Okay.
Janine: Thank you for standing by my name is Janine and I will be conference operator today welcome to <unk> third quarter earnings call. At this time participants are.
Speaker Change: In listen only mode with a question and answer session to follow at the end of the presentation. This call is being recorded and a replay of today's call will be made available on <unk> Investor Relations website, I will now hand, the call over to be the Urquhart, Vice president of Investor Relations for introductions and the reading of cheap.
Speaker Change: Harbor State Mobily. Please go ahead.
Urquhart: Thank you operator, good morning, everyone and welcome to <unk> third quarter earnings call.
Urquhart: During today's call, we will discuss our financial and operating results for the three and nine months ended September 32024, as well as our forward looking guidance.
With us on today's call are <unk>, <unk>, Chief Executive Officer, and for junior He's the company's Chief Financial Officer.
Urquhart: This morning, we issued a press release, which you can access on our IR website at investors that Mexican dot com <unk>.
Urquhart: During today's conference call, we will make forward looking statements all statements other than statements of historical facts could be deemed as forward looking we must caution in Hawaii and some forward looking statements.
Urquhart: These statements include without limitation statements or projections regarding our anticipated future financial and operating performance market opportunity growth prospects strategy financial outlook partnership and anticipated benefits related to those partnerships anticipated benefits related to the potential changes in the companys trading security structure anticipated benefits related to the company's embedded growth and platform investments.
Urquhart: Forward looking views of macroeconomic and industry conditions as well as any other statements concerning the expected development performance in market share or competitive performance relating to our products or services.
Urquhart: All forward looking statements are based on information available to us as of the date of this call.
Urquhart: 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.
Urquhart: 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.
Urquhart: <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.
Urquhart: Additionally, the company's press release and management statements. During this conference call will include discussions of certain measures and financial information in <unk> and not our FRS terms, we refer you to the company's press release for additional details, including definitions of non <unk> items and.
Urquhart: Reconciliations of iron.
<unk> results.
At this time, it's my pleasure to introduce <unk> CEO.
Ofer: Ofer. Please go ahead.
Thanks, Billy since late last year, we significantly improved the company's performance or improvement is a direct byproduct of our outwork integrating the mobius technology.
Ofer: Assets and talent base.
Ofer: We accomplished amidst challenging macroeconomic conditions as well as our rebrand to Nixon the combination of which has boosted our standing with the district.
Ofer: Since early 2024, we achieved significantly better results than in 2023 is our business sales teams and markets.
Ofer: Better footing as evidenced by our ability to generate record Q3 results and accelerate our growth prospect by winning partnership with some of the world's top companies.
Ofer: After seeing our tech products data and advanced <unk> capabilities Nexsan is being recognized as a strategic partner that can drive superior results, regardless of our customers across the industry choose to work with us.
Ofer: This is clear Nexium is now viewed as the data ethics.
Ofer: Platform.
Ofer: Outcomes, and so skewed problems across the supply chain.
Ofer: Thats driven video advanced CTV and audience targeting capabilities. Unlike any other in the industry.
Ofer: Our strategy is to seamlessly connect our robust solution to our flexible platform to fuel better customer outcome is that we.
Ofer: Winning value proposition that is leading more and more partners to select next thing is the platform of choice.
Ofer: Thank you very much for Nexsan is this we are one of the pioneers and leaders in the concept of owning and operating an end to end platform.
Ofer: A trend.
I'm just trying.
Ofer: Trying to catch up.
Speaker Change: Operating a full stack platform brings efficiency and simplicity to our partners and customers.
Multiple solutions across our end to end ecosystem typically stayed course, while generating improved results and otherwise.
Speaker Change: Our end to end platform include a flexible full service staples.
DSP and SSP centers around adaptive platform.
Speaker Change: Which is unique and differentiated in the marketplace.
Speaker Change: Is that a strategy strongly complements and significantly advance the benefits created by our full stack tech infrastructure.
Speaker Change: Shlomo regain even greater combined technology, and that's a benefit and reach which are now providing massive advantages for nexsan and these customers in their markets.
Speaker Change: Following the integration our robust that that is now fully intertwined into our advanced technology solutions across our platform <unk>.
Speaker Change: Enabling our partners to better fulfill their needs better service their clients and winning new accounts.
Speaker Change: I guess I would touch on later, we plan to incorporate journey more and more across our platform to further enhance our combined <unk>.
Speaker Change: And thats, our capabilities and competitive advantage to drive even better results and usability for our customers.
Speaker Change: Customers and prospects continue to increasingly embrace our data powered end to end approach.
Speaker Change: A great example is our partnership with Starwood, we've continuing to add that a growing number of solution within our product suite as they are driving better results when leverage together.
Speaker Change: Bad weather recently ran an analysis of our performance against another major DSP for one of its flat.
Speaker Change: Our combined data and technology offerings significantly outperformed generating philosophy Lindsay stands on it's been a tremendous reduction in cost per customer acquisition and a notable increase in CPM efficiencies.
That's why it's a key element for the success of any advertising campaign.
Speaker Change: This is the main reason customers lately has been seeking to partner with Nexsan as the company is robust and unique capabilities and assets that yield better results.
Speaker Change: Our tools like an excellent discovery enabled advertisers to find and target audiences.
Insights visual strengths and extend likely to engage or by audience reach to achieve better returns.
Speaker Change: <unk> also able to onboard their first party data onto our platform and in reach if we started that process or any other deficits of their choosing improving their results with activating campaigns are a mix of ESP, but enhancing the power of our recently launched the platform.
Our data platform combine our data assets capabilities and application in one place and also feature unify IV graft solutions.
However, I did graph combines and duplicate several identifiers into have merged gruss, enabling increased scale frequency capping and better targeting and distribution as a personal and household level, while furthering our already strong position to address change in privacy.
Entity.
Speaker Change: We are also adding generated media capabilities to our roster.
Speaker Change: Operator.
Speaker Change: In short our.
Speaker Change: Differentiated ability to connect the dots and ethics supply chain through all that onboard the audience enrichment activation and measurement capabilities separate <unk> from the pack.
Speaker Change: Our holistic set of data capabilities have also led to new opportunities in growth areas like Commerce media.
As connective media by United Airlines recently selected <unk> as the preferred data platform partner.
Speaker Change: The partnership extends first party data from United's customers that minus plus program members to advertisers leveraging next senseful estimation at gross premium oxide CTV linear and digital content.
Speaker Change: Our clients can leverage.
Speaker Change: Insights onto campaigns and community one of the leading performance agencies in the U S has been an early adopter.
Speaker Change: Enabling us to reach new audiences.
Speaker Change: We strongly believe in the importance of CTV advertising.
Speaker Change: This reflects a critical couldnt do it to better understand and more effectively which likely to engage or by audiences.
Speaker Change: On a full stack platform benefits television advertisers and streaming platform.
Great unique demand and supply to each side of this transaction, while enabling cost efficiencies.
Speaker Change: We also all relationship with all their words Batesville CTV Oems provide access to premium supply for many of the largest streaming players and possess exclusive TV assets.
Speaker Change: We did all of that the offering we stand out for our unique and advanced CTV data solutions.
Speaker Change: Thus as our discovery tools and exclusive global ACR data capabilities enabled by our partnership with visa.
Speaker Change: Amplify the effectiveness and the appeal of our TV focus tech products.
Speaker Change: We have built these capabilities over several years.
As a result today <unk> is a leader in CTV advertising data and technology.
Speaker Change: We are well positioned to capitalize over the long term and continued growth in AD supported TV content and last fall, it's going to get done.
Speaker Change: Our depreciated TV data assets and capabilities led us to really a strategic partnership with a trade desk in Q3.
Speaker Change: I think in our Acos that segment's becoming available on their platform for activation in the U S U K, Canada and Australia.
Nexsan segments enabled the trade the slides two and most unique targeting capabilities that can enhance the TV advertising efforts, while we gain and other channels to expand our data licensing revenue overtime.
Speaker Change: Also recently entered the data partnership with respect to that.
Speaker Change: In which sell at Acs that the segments became available for activation in the U S. We've seen their programmatic platform.
Speaker Change: The second that platform connects to our SSP and this partnership creates increased data licensing revenue opportunities and serves as a testament to customers leveraging evidenced solution, we see an ecosystem underscoring the strategic nature of our platform.
Speaker Change: That's their license reflects the significant long term opportunity for <unk>. In addition to these recent wins we are in advanced discussions with many other seeking to license out about that including some of the industry's largest and most recognized brands.
Speaker Change: As I mentioned large sports is shifting to CTV, creating opportunities for nexen amid strong and growing advertiser demand.
Speaker Change: Our relationship with folks <unk>, and Directv amongst others driving sports related.
Speaker Change: For example, Fox as a plethora of life College football inventory.
Speaker Change: <unk> has been able to complement their sales efforts, enabling them to maximize yields and monetization.
Speaker Change: Additionally, other partners granting makes in excess to live NFL and other major sports inventory driving better monetization for these customers, while creating robust and unique opportunities for our advertiser clients.
Speaker Change: All of that is driven political solution launched in Q3 also enable us to capitalize on the U S election cycle, particularly in Q4 and generate what we believe will reflect record annual political contribution ex Tac for <unk> based on results we've seen to this point.
Speaker Change: Deal.
Speaker Change: These tools and followed our political advertisers customers to gain deeper insights and maximize audience reach and our data and audience capabilities drove better targeting and engagement with multi cultural voters.
Speaker Change: This image is the key feature that we believe will serve us in the future as many companies increasingly focus on diversity and sixth solution to help them prudently address the topics.
Speaker Change: In Q3, we added an all time high 138, new actively spending first time advertiser customers. This included 31 U S enterprise self service customers and two new independent agencies leveraging next gen self serve offerings.
Speaker Change: I'll say that 61, new supply partners in Q3 highlighted by premium streaming customers, a new audio customer like Soundcloud.
Speaker Change: Finally, we believe inclusive of Gen AI and machine learning Nexgen is uniquely situated to harness the full firewall Fai.
Speaker Change: We operate a full stack platform connected by Delta, which benefit customers across all steps of therefore flows.
Speaker Change: Over several years, we have developed deep machine learning AI and data capabilities and by integrating Zen AI, we can amplify the power of <unk> platform across planning activation and monetization.
Speaker Change: We believe <unk> is an AI edge due to our many that the stickiness, we collect and utilize AI.
Speaker Change: AI solutions are dependent on robust data to generate accurate cygnus and excess is an a plus royalties.
Speaker Change: Because we operate in end to end full stack platform. We can also incorporate AI very broadly and effectively.
Speaker Change: Jamie I can benefit next sent across many use cases, including driving incremental opportunities.
Speaker Change: Steve analytics data enrichment customer support automation content creation, and personalization creative ideation and optimization.
Speaker Change: We are now actively integrating <unk> into our core products to drive better usability and customer depth.
Speaker Change: In recent months, we have built out at <unk> and partnership Roaster, featuring open AI and others to execute on this initiative.
Speaker Change: In the near future with that.
And planning.
Speaker Change: We anticipate releasing a gen AI powered platform virtual assistance to help customers find and reach new audiences generate audience segments and seamlessly activates them on our DSP and SSP.
Speaker Change: Our first priority is to leverage AI to empower our discovery tool to drive additional value and generate better results around audience creation gaming granule insight on targets repeat dose created audiences extending likely to engage or by audio.
Speaker Change: Switch and activating those enhanced and extended audiences.
Speaker Change: USP.
Speaker Change: We expect this will make discovery more user friendly why then its utility beyond video industry analysts and further depreciation in a deal of an excellent platform.
Speaker Change: Activation, we plan to introduce Jenny I pilot copilot income stability within our DSP as part of a new and enhanced user interface.
This futures will proactively extract key insights finding instrument opportunities and also campaign optimization suggestion in real time.
Speaker Change: We believe these upgrades and other planned in the future will further position our platform technology and data capabilities is the primary driver of better customer results.
Speaker Change: Looking ahead, we are poised to continue accelerating our growth in 2025, we expect our recently launched partnership industrial licensing opportunities to scale and our general fueled enhancement to attract more partners to our platform.
Speaker Change: This catalyst alongside our data free TV and video capabilities and flexible platform position us to continue capitalizing on large multi solution revenue opportunities grow our market share and showcase our value is the best in class strategic partner for the industry.
Speaker Change: With that I'm happy to turn the call to <unk>.
Speaker Change: Thank you all fir in Q3, we generated contribution ex Tac of $85 $5 million, achieving 12 sustained growth from Q3 2023 programmatic revenue was $81 6 million in Q3, reflecting 10% growth from Q3 2023 well contribution.
Speaker Change: Ex tax from our non programmatic business line increased slightly year over year from a dollar perspective.
Speaker Change: Growth in Q3 was broad based driven by enhanced sales execution gaming partnerships and improved market conditions.
Speaker Change: We observed strength in CTV video display mobile and Pnp and increases across 10 of our 11 industry vertical is the biggest increases reflected in our governance finance health and automotive verticals.
Speaker Change: On the opposite side in Q3, we observed the year over year decrease in our travel vertical.
Speaker Change: We achieved a major year over year increase in CTV revenue in Q3, generating $29 $7 million in CTV revenue, which reflected 52% growth from Q3 2023.
Q3, 2024 was the second best CTG revenue quarter in accident is III, reflecting strong results for the second consecutive quarter as CTV revenue represented 36% of programmatic revenue up from 26% in Q3 2023.
Speaker Change: <unk> revenue growth was driven by benefits related to our partnership with <unk> and strong sales execution at MIT and continued shifts by new and existing customers into our premium CTV solution.
Speaker Change: We strongly believe that our differentiated advanced television technology, and Thats a solution robust CTV, an OEM partnership platforms ability to flexibly caters to both sides of the CTV advertising ecosystem and access to premium supply positions us to capitalize on what we believe to be a long.
Speaker Change: Term CTV growth opportunity still in early evening.
Speaker Change: Video revenue continued to account for most of our programmatic revenue expanding to 71% in Q3 2024 from 66% in Q3 2023.
This year over year increase was driven by video revenue strength fueled by CTV outpacing programmatic revenue growth.
Speaker Change: We continue to expect video revenue to be our primary growth driver overtime and for <unk> to remain one of the most heavily index AD tech companies to video on the open Internet.
Speaker Change: Our advanced TV offering in audience extension capabilities across the video advertising ecosystem.
Speaker Change: A key reason for major industry players to increasingly choose to partner with Nexsan for their video advertising gains.
Speaker Change: Elsewhere contribution ex Tac from display grew 21% year over year in Q3, while self service contribution ex Tac increased 15%.
Speaker Change: <unk> X back from Pmt's grew 52% and contribution ex Tac from mobile grew 4% year over year.
Speaker Change: On political contribution ex Tac, while we didn't see much of a lift in Q3 as we anticipated in Q4. We saw this number increased sharply heading into election day in the U S.
Speaker Change: To this point in 2024, we generated approximately $10 million in political contribution ex Tac, which we believe will ultimately result in an annual political contribution ex Tac record for Nexium.
In Q3, we also generated adjusted EBITDA of $31 6 million.
Speaker Change: Which reflected a 49% year over year increase from Q3 2023.
Speaker Change: Our adjusted EBITDA growth was a byproduct of higher contribution ex Tac improving cost efficiencies and our platform models ability to generate significant operating leverage, particularly as an increasing number of customers choose to adopt multiple solutions within our ecosystem.
Speaker Change: Our adjusted EBITDA margin in Q3 increased to 37% as a percentage of contribution ex Tac from 28% in Q3, 2023, and we remain confident in our ability to further expand our adjusted EBITDA margin overtime.
In Q3, we generated over three times more net cash from operating activities year over year generating $39 $90 million in net cash from operating activities compared to $13 1 million in Q3 2023.
Speaker Change: As of September 30, we had $166 $5 million in net cash $90 million undrawn on our revolving credit facility and no long term debt.
Speaker Change: We also reported non <unk> diluted earnings per ordinary share of <unk> 14 in Q3 2024 compared to <unk> <unk> in Q3 2023.
Speaker Change: During Q3, we repurchased roughly $5 1 million ordinary shares, reflecting an investment of $14 1 million pounds or $18 3 million.
Speaker Change: From March 2022 through September 32024, we invested around $137 2 million in our repurchase program buying back roughly $33 4 million ordinary shares or 21, 6% of shares outstanding.
We received approval to launch a new $50 million ordinary share repurchase program, which is expected to begin in November 19, and expected to continue until may 19 or completion.
Speaker Change: Our previous program expired on November 1st.
Speaker Change: Sales to remain at prices the board believes continuing to reflect the discount to fair value. Following the end of the upcoming program, we will consider initiating an additional one thereafter.
Speaker Change: With that I'll turn to our outlook.
Speaker Change: Our full year 2024, we are reaffirming our guidance for a contribution ex Tac in the range of approximately $340 million to $345 million.
Speaker Change: And for programmatic revenue to reflect approximately 90% of full year 2020 for revenue.
Speaker Change: We are also now raising our full year 2024, adjusted EBITDA guidance to approximately $107 million.
Speaker Change: From approximately $100 million.
Speaker Change: In Q4, 2024, we anticipate achieving a strong quarter from a contribution ex Tac and adjusted EBITDA perspective, as we continue to see momentum from Q3 carrying over into the fourth quarter.
Speaker Change: Our debt free balance sheet and cash generating abilities also enable us to continue investing in share repurchases in Q4, 2024, and 2025, which we view as one of our key capital allocation priority assuming that our shares continue to trade at all around level, our both deemed to reflect a discount to fair value.
Speaker Change: As the aforementioned in Q4 2024, and 2025, we will also boost our data and technology investments to favor our platform differentiation and advantages with a core focus on increasing our AI edge by incorporating gen AI across our core product.
Speaker Change: Looking ahead, we will continue focusing on expanding revenue relationship with customers to increase spending in multi solution adoption, attracting new partners to our platform and growing our ADESA licensing of CTV revenue opportunity.
Speaker Change: Through a combination of our flexible end to end platforms ability to service the industry holistically across formats devices, and the data and ethics supply chain as well as our collective robust and unique data and technology solutions, which help attract and drive better ROI for our customers. We believe we remain well positioned.
Speaker Change: <unk> for sustainable long term growth expanding profitability and ethics leadership.
Speaker Change: Finally, this morning, we announced that our board approved submission of several changes to our stock exchange structure for shareholders to consider and vote on at our upcoming AGM in December.
Speaker Change: If the proposal is approved we believe this evolved structure can significantly benefit nexsan and <unk> shareholders over the long term.
Speaker Change: If shareholders approve the proposal the company intends to exchanges NASDAQ listed ADR.
Speaker Change: That list of ordinary shares and terminate the AVR facility conducting a reverse stock split at the 241 ratio, which will allow for a one to one exchange for <unk> to ordinary shares and delete from BN.
Speaker Change: We believe these proposed changes are beneficial for several reasons.
These reasons include amongst others, increasing the potential to attract U S investors, reducing the complexity of the company is reporting and review literary compliant structure, consolidating and likely increasing liquidity and possible inclusion in major indices, which the company's shares are preclude.
Speaker Change: It is from used to its current ADR structure.
Speaker Change: Additionally, we also believe these proposed changes better align our stock we've other U S listed at the company helped reduce price volatility that can result from being lifted and save costs.
Speaker Change: Our AGM circular provide greater detailed information on this proposal.
Speaker Change: Mining of the proposed changes and its effect on trading for.
Speaker Change: Our U S and UK and vessels.
Speaker Change: We also intend to call for both U S and UK investors and analysts as of our AGM to provide greater detail on the proposed changes timing of those changes in our strategic rationale.
Speaker Change: Over the last several quarters, we've enhanced our strategic capabilities rebranded to clarify our platform's value proposition and boosted our sales efforts and team the combination of which has improved our results.
Speaker Change: Ending within the industry and long term growth position.
Speaker Change: Following this milestone we believe it is now time for our trading structure to also undergo advancements to further align our business improvement and stronger results with our future capital appreciation potential.
Speaker Change: We look forward to continuing to work hard to serve our customers partners and shareholders and are excited about these potential changes and for what lies ahead.
Speaker Change: Operator, we'll now take questions.
Speaker Change: Thank you.
Ladies and gentlemen, we will now begin the question and answer session I would like to remind everyone for one question. One follow up should you have a question. Please press star followed by one on your Dutch Stephane and he will be here.
Speaker Change: I understand great.
Speaker Change: Should you wish to withdraw please press star followed with number one again.
Speaker Change: We are using a speaker phone please lift the handset before pressing and our first question comes from the line of Matt Swanson from RBC capital markets. Please go ahead.
Matt Swanson: Alright. Thank you guys. So much for taking my question.
Speaker Change: I really appreciate it the stack while example.
Speaker Change: Go ahead.
Speaker Change: <unk>.
Speaker Change: Example.
Speaker Change: Yes, with all of these new capabilities and then everything else that you asked about investing and around data and Jenny can you talk a little bit more about how you get.
Speaker Change: Customers and advertisers see the new next inventory.
Speaker Change: Go to market with all these new capabilities.
Speaker Change: Of course.
Speaker Change: Good morning, Matt.
Speaker Change: I think that the entry point for us that we are now presenting to the new advertisers decline is all of the discovery.
Speaker Change: Our discovery too is a very powerful tool that we basically acquired through the acquisition of <unk>.
Speaker Change: It's a very.
Speaker Change: <unk> ability to basically connect and integrate a lot of deficits into one platform in order to learn about audiences.
Basically what we are doing we are showing through this platform and the ability for the advertisers to learn about this potential audience to learn about the insights and sentiment of the audience regarding this product to services is trying to do also to create audiences and to activate them very simple in a.
Speaker Change: A very simple mode will now platform basically on all of this is Phil do you see that he wants to and even measure results. So.
Speaker Change: Everything is basically now all the efforts that we are doing the ability to to.
Speaker Change: To follow the campaign from end to end.
Speaker Change: To follow the journey of the campaign across all the systems.
Speaker Change: Basically translated to a very powerful capability on the discovery to basically enable us to do what I just mentioned and this is all we are basically demonstrating it to them.
And of course advertisers react you actually it's very good to the platform into the ability because it's giving them a lot of capabilities that they cannot find in any other manner in other platform.
Speaker Change: Also the simplicity of the activation of the audience of the Laramie.
On our platform is very meaningful because they don't need to take the data out and find a place to activated which usually is very complicated.
Speaker Change: Upload data the second thing that we are enabling the discovery is basically pool, leading advertisers to upload their that the first.
First party data.
Speaker Change: Richard and.
Speaker Change: And I will give just one example.
Speaker Change: Which is our television.
Speaker Change: But to enable them to basically match and.
Speaker Change: And you can reach it with our TV data.
Speaker Change: Giving them a lot of insights you've alluded to push more campaigns to CTV more campaigns to linearity, if they choose to do that and so on and it's a unique and very powerful too. So this is basically due.
Speaker Change: Window that we are giving to advertisers in order to choose and to understand our capabilities.
Speaker Change: More mature lately and we feel that we are.
Speaker Change: The rights for in the right place at the right time in order to serve our clients both sides.
Passes and major publishers.
Speaker Change: I hope that answers your question.
Speaker Change: Yes.
Speaker Change: That's perfect.
And maybe this answers it's similar but I think on first blush people saw the strong growth you had in CTV I'm sure it'd be maybe there is political contribution but it sounds like that wasn't really the case in Q3. So could you talk a little bit more just kind of about where you guys are expecting success.
Speaker Change: So gena on growth right there.
Speaker Change: Of course.
Speaker Change: Political was part of that but it's not the major force of course.
Speaker Change: We generated this growth.
Speaker Change: This growth is coming from a few elements one of them is that we.
Speaker Change: We are working on technology for <unk> for the last more than five years.
Speaker Change: From 2019.
Speaker Change: I think that we got to a point that we can really offer to advertisers and publishers are very strong tech stack that enable them to run their campaign is the most efficient manner and also to publishers to also then maybe at the most efficient efficient manner than to sell audiences and not just museum.
Speaker Change: This is of course.
Speaker Change: Integrated with the locals algorithm and machine learning that we build over the year.
Speaker Change: Optimizing our capability to CTV.
Speaker Change: If you would check back the last five years, we are talking about it.
Speaker Change: We are demonstrating that basically the second point is also.
Speaker Change: So the fact that we are increasing always.
Speaker Change: The publisher lease that we got and the partner at least with regard to the CTD front from ability to reach additional users and additional audiences in the market and it's working very well because it's one that I said our technology capabilities is basically we can prove.
Speaker Change: So these publishers that we can add to the value we can add to them more revenues that they don't see from other from other connections that they've got two other this is because we are also on sales.
Speaker Change: And the third element that help us this new is close to the edge settlements that basically.
Speaker Change: Able us to require much mobile media much more quality media market and enable us to grow our revenues.
Speaker Change: This is the major three elements. The first one is what I said before which is the discovery. So basically today people are choosing to buy more CTV. If so if you are able to show them. The discovery to pitch them work with them about their audiences and enabled them to learn about their insights and sentiment and also directed to.
Speaker Change: CTV it's of course.
Speaker Change: Important element that help us and the last point, which is not connected to ask but connected to the market I think that the market now in a better shape. So its helping people to in a good and a good market conditions people direct most pay those sorts of strategic.
Thank you.
Speaker Change: Yes.
Speaker Change: Question comes from the line of Laura Martin from Needham. Please go ahead.
Speaker Change: From the earn out for you Andre So the first thing you talked a lot about what happens.
Speaker Change: Your end to end platform and you think that gives you a competitive advantage, but I would just point out that most of the end to end platforms. During the quarter grew 12% and the single sided platforms <unk> and trade desk, 25%. So right now it looks like the single sided platforms have a big competitive advantage in terms of.
Speaker Change: We adopted by new clients. So if you could talk about why you think end to end platforms have an advantage and if they do why their growth rate is it closer to the single sided platform I'd be interested in that answer and then you basically you used the word data in almost every sentence and sort of data is important.
Speaker Change: Scale is important because trade desk waiting if data is important just because bigger. So does that is there something you bring data because you don't have as much of it is you are not that big So is there something you bring to the data that adds value or do you need to be buying things because you need to be double and triple your current site.
Speaker Change: Thank you Laura I'll start with your second point about data we are mentioning every sentence because it's.
Speaker Change: Incorporated about 90% of all campaigns.
Usually now advertisers running campaigns and we're using that in order to do enhanced.
Speaker Change: Basically the performance and enable to get the results that they're looking for.
Speaker Change: We basically already for the last few years implementing that.
Speaker Change: Will we ever been thrown BNP.
Speaker Change: The graph curated media that we launched and that is all about that because we believe that this is the future. That's why I mentioned it a lot and we have yes, we have a lot of unique stuff that we are giving on the data side.
Speaker Change: I think that we are one of the only companies in the open web that is basically.
Speaker Change: And the agreements with the OEM.
Speaker Change: Yes.
Speaker Change: That and utilize it in order to the targeting and we are very.
Speaker Change: Dominance and active in the TV TV will need to gain these data and incorporated it into each other about the sales in order to get more insights for advertisers to about as well.
Speaker Change: Other than simply related to television.
Speaker Change: So I think that when youre looking at these two points meaning.
More than 90% of our components.
Speaker Change: Using data in a very.
Speaker Change: It would be committed in order to achieve better results. The second thing we have a lot of unique datasets also to remind you about United.
Speaker Change: <unk> choose to love to load to load to upload their birthday about minus plus mileage plus another another platform and we are.
Speaker Change: Again, a lot of other sources of data from our activity from other companies with obesity zones in the components of course with consent.
Speaker Change: So I think that on the data elements. It's good that we're mentioning it because this is very important part of what we're doing.
Speaker Change: Your first point about first one.
Speaker Change: Im sorry, the campaigns I think.
Speaker Change: That's where you are including the trade desk is a little bit to changing the picture, but the trade desk themself also operates Ethernet appeal, which means that they've already achieving more and more what we call end to end capabilities and.
Speaker Change: And also other companies are doing the same in the industry.
Speaker Change: Sector, meaning.
Speaker Change: And different capabilities in order to close the loop and <unk>.
Speaker Change: To be able to touch side to side I think that our advantage comes from the fact that we are fully functional DSP and fully functional in essence field. The other side, which is connected to our E&P, which not a lot of companies that we just mentioned good so.
Speaker Change: I think that eventually you have so many advantages to have end to end solution, which are fully functional because of proficiency because of privacy because that's a synchronization because when we were talking about Jimmy I will you have ability to basically follow the signals of the debt.
Speaker Change: Im just giving you a lot of more capabilities to integrate the machine learning algorithm that we already build and utilize them through the journey.
More basic manner. When you are controlling influence solution. So I strongly believe in that.
Speaker Change: I cannot argue with your numbers, but.
I think the end to end solution as they look of advantages and in general I think that the other companies basically.
Basically building this capability and.
Speaker Change: Using different things before that.
Speaker Change: Super helpful and sorry into one for you.
Speaker Change: Dealers basically offshore RMB, a NASDAQ listed company any thoughts about moving to U S. GAAP out of Ifr at some point.
Speaker Change: Yes, good question.
Speaker Change: Yes, we are considering that.
We may lose our Spi going forward, so we acknowledge that.
Speaker Change: Somewhere.
Speaker Change: In the timeline we should.
Speaker Change: Move to U S. GAAP, so it's something that's worth taking into consideration and of course, it will help that.
Speaker Change: We'll get into more in besides so it's something that is on the table and we are and probably we will move to that in some point of time.
Speaker Change: Okay. Thanks, very much guys great numbers.
Speaker Change: Thank you.
Speaker Change: Thank you. Our next question comes from the line of Andrew <unk> from Raymond James. Please go ahead.
Speaker Change: Hi, Thanks for taking my questions.
Speaker Change: Maybe one that I think you've touched on in a couple of your previous answers, but siggi I heard the phrase strong sales execution a couple of times in your remarks, I guess, what's changing there is it is it really just the result of the broader product offering you were able to sell or are there. Some maybe internal measures that drove either better efficiency or anything you can call out there and kind of how does that.
Speaker Change: Play into your investment priorities for the Salesforce over the near term.
Speaker Change: I will take this one.
Speaker Change: I think that after the acquisition of them will be what.
Speaker Change: What we saw is that we needed in house, the rebranding, but basically we've done last year.
Speaker Change: We needed to.
Speaker Change: Basically sharpen our message in the market and as you know when you when you.
Speaker Change: Just making a move in changing your messaging and changing you not having yet like a very sharp message. It's also of course affecting your sales team.
Speaker Change: They need a very sharp.
Speaker Change: And understanding about what's you're basically offering it will be.
Basically.
Speaker Change: We indicated.
Speaker Change: That <unk> got and what are the unique capabilities that we got.
Speaker Change: I think that in the last nine months.
Speaker Change: We see a really good good improvements on that so our sales team are more aligned with our offering I think that our sales materials, our messaging outside the rebranding everything is getting more mature and more south bend.
Speaker Change: And it is helping of course, our salespeople to drive better results. So it's not we didn't change the metrics. We are counting cash and says basically but they think that we are very much south and message inside and outside that is helping us to achieve better results.
Speaker Change: Great.
Speaker Change: No no that's fine okay.
Speaker Change: I appreciate it maybe one quick one on <unk> and political if I could we'd heard from some other companies in the industry, maybe a little bit of a crowding out in October as political kind of heated up it doesn't sound like that's the case from your neck of the woods. So I guess, what's kind of embedded in the <unk> guide in terms of.
Speaker Change: Post election macro assumptions and things like that if youre coming off of a strong political in October and early November. Thank you.
Andrew: Andrew I think that.
Andrew: As we said earlier.
Andrew: It was.
Andrew: On a full year 2024.
Andrew: Politico.
Andrew: Contribution ex Tac were.
Andrew: Record for Nexsan, having said that it is not a lot.
Andrew: Some of it of course came in Q3 and some of it came in Q4.
Andrew: I think as the Ultra mentioned you know our we are seeing the trend of Q3.
Andrew: TP into Q4, and we are seeing we really don't see any drops.
Andrew: Political.
Andrew: Election day revenues and of course, we have a tight forecast that we're maintaining and in fact, the pipeline I think as <unk> mentioned.
The growth drivers that are.
Andrew: Within our company for a long time is now.
Andrew: Materializing and I think as also mentioned that there's a huge opportunity of course CTD, we are well positioned as we grew more than 50%.
Andrew: Year over year and of course, we think.
Andrew: Our TV capability puts that cream supply end to end footprint.
Andrew: The key growth.
Andrew: Driver setup.
<unk> with the customers. So I think nothing changed political was <unk>.
Andrew: <unk> for us, it's not material and we're moving full steam ahead.
Speaker Change: I appreciate it thank you.
Speaker Change: Thank you.
Speaker Change: Thank you. Our next question comes from the line of Matt Koranda from citizens JMP Securities. Please go ahead.
Speaker Change: Okay.
Speaker Change: One moment of a foot.
Speaker Change: Tim back on the queue.
Speaker Change: Thank you.
Speaker Change: Please give me one moment.
Speaker Change: I guess I accidentally Jonathan I apologize.
Speaker Change: Okay for now we will jump to Mark Kelley.
Speaker Change: Question from Stifel. Please go ahead.
Mark Kelley: Great. Thank you good morning, everyone. Maybe just two for me I guess the first one just on the.
Mark Kelley: Political side.
Mark Kelley: I appreciate the color there.
Speaker Change: You guys don't really consider it material, but I guess, how do we think about seasonality.
Speaker Change: Seasonality as we go from Q4 to Q1.
Speaker Change: And as we take that political out that's my first question and then the second one is.
Speaker Change: At what point do you think we might see your CTV growth outpace.
Speaker Change: <unk> growth.
Speaker Change: Which would imply that we're seeing more open exchange programmatic inventory in CTV. Thank you.
Speaker Change: Hey, Marc.
Speaker Change: Thank you for the question and good morning.
Speaker Change: I think if we're taking political I'm not sure the comparison between Q4 and Q1.
Speaker Change: <unk> as you know Q1 is the is the.
Speaker Change: Softer fuel within the within the calendar year and Q4 is the strongest.
Speaker Change: I think thats, what we will see and we've talked about it earlier is that our growth drivers are in place we are putting a lot of emphasize.
Speaker Change: On new initiative around AI and Jane AI in 2025, we're going to invest there.
Speaker Change: And I think that all the capabilities offer mentioned regarding our discovery tool.
Speaker Change: That does that end to end in Africa stability that we have in place that brought us to this point of time, we are seeing the growth quarter over quarter I'm sure that Q1, 2025 will be better or much better than Q1 2024, if thats. What you are asking so I think we have all the all the capabilities we need in place.
Speaker Change: <unk> and.
Speaker Change: And as we mentioned on our vehicles now it's all around execution.
Speaker Change: And we are doing great job on the on the offerings with the theme of course, and we will see greater revenue generation going forward.
Speaker Change: On your other question about when CTV will bypass DNP.
Speaker Change: It's not there.
Speaker Change: With like one to Apple to Apple competition, but in general CTV is making a meaningful part of our E&P activity basically.
Speaker Change: I feel that BNP will be always bigger because <unk> also other activities that is coming from either the DSP.
Speaker Change: The case.
Speaker Change: The terminal buying Jeff CTV, they'll buy Ngos so video on <unk> display. So in general I don't think that its like an apple to Apple competition, and I think that the CTV is growing very fast, but they think that BNP is also in our case is growing pretty fast because this is basically following the trend of the market.
Speaker Change: And the agencies and the advertisers now.
Speaker Change: And they'll buy more programmatic than they used to so the PMT will continue to grow but of course there are other opportunities in the market also.
Speaker Change: Okay. Thank you Bob.
Speaker Change: Okay.
Speaker Change: Thank you. Our last question comes from the line of Matt <unk> from JMP Securities. Please go ahead.
Speaker Change: Thank you so much for taking my question. My first one is just on the potential for additional commerce and media partnerships. It's nice to see the partnership with United but could you just remind us or update us on the pipeline of additional companies that you're potentially looking to partner with.
Speaker Change: So.
It's basically.
Speaker Change: You will need a few examples in order to start selling it and I think Thats fair.
Speaker Change: We started now because of the discovery tool that I mentioned before because of the end to end solution because of our deep.
Speaker Change: Rich in media, which is CTV and also other formats, we are making its making more it's becoming more interesting for you.
Speaker Change: For these type of clients basically to choose to work with us and because of the fact that we are putting emphasize on earlier.
Speaker Change: The E&P basically that the management platform that is very robust and enabled in basically two low they're about to enrich it with TV dot, though other that they choose to to bring in or for us to connect and to be able to do better targets and to better utilize their media I cannot of course share with you like pipeline.
Speaker Change: Because it.
Speaker Change: It's not something that we can do in the session but.
Speaker Change: There is a very healthy pipeline of companies.
Speaker Change: Reaching out and we are reaching out to them in order to build because we have scale with people are looking exactly for this solution.
Speaker Change: Offering which is very strong BNP, enabling to upload yield that we choose to utilize the space very easily and get more insights and sentiment about your audience and even measure of your results as they are running the company.
Speaker Change: Great.
Speaker Change: With Lenovo.
Speaker Change: Okay, Great. That's very helpful. And then my second one is just on your partnership with the trade desk I just wanted to hear if there's any early indications of demand coming through that channel or maybe when we can expect that to start contributing to results.
Speaker Change: Early in 2025.
Speaker Change: So.
Speaker Change: The relationship with the trade desk around around the data.
Speaker Change: Just started like last quarter, and it's building up meaning we started mostly in Australia, but it's building up people need to get educated.
Speaker Change: This growth of course, a lot of data sets on their platforms and we are one of them, but we are building traction with them and with their clients.
Speaker Change: It's becoming more and more interesting and the idea is to open more and more markets together globally because of.
Speaker Change: This is basically our <unk>.
Strategy and its matching.
Speaker Change: Their strategy I cannot tell you that it's the full strategy, because I'm not representing them, but in general in this case.
Speaker Change: You want to expand with us internationally.
Speaker Change: And that's what we will do that.
Speaker Change: Thank you.
Speaker Change: Thank you so much.
Speaker Change: Thank you that concludes our Q&A session I would now like to turn the call over to al <unk> for closing remarks.
Speaker Change: Thank you.
Speaker Change: Thank you everyone for getting on this call. This morning, we strongly believe we made the right strategic decision.
Speaker Change: In the in the past few years, we got really good tech products to cover what is important to our industry today, which we believe is that the CTV privacy journey and very strong programmatic capabilities.
Speaker Change: We believe we got what we need from tech and product perspective, and we will put the attention.
Speaker Change: Back to innovation and execution and good luck and we are excited about the future and I won't use this opportunity to thank our teams and our employees around the globe that are working very hard in the past few months and in general in order to achieve these goals.
We are excited about it.
Everyone have a nice weekend.
Speaker Change: Thank you for joining the conference call for today, you may now disconnect.
Okay.
Speaker Change: Please wait the conference will begin shortly.
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Speaker Change: Yes.
Speaker Change: Okay.