Q4 2024 Nexxen International Ltd Earnings Call
Welcome to next since fourth quarter earnings call. At this time participants are in your listen only mode.
Operator: Welcome to Nexxen's 4th Quarter Earnings Call. At this time, participants are in a listen-only ?? With the question and answer session to follow at the end of presentation, this call is being recorded and a replay of today's call will be made available on Nexxen's investor relations website.
<unk> and answer session to follow at the end of presentation. This call is being recorded and a replay of today's call will be made available on <unk> Investor Relations website.
Billy Eckert: I will now hand the call over to Billy Eckert, Vice President of Investor Relations, for introductions and the reading of Safe Harbor's Billy, please go ahead. Thank you, Operator. Good morning, everyone, and welcome to Nexxen's fourth quarter earnings.
Be Li: I'll now hand, the call over to be the accurate Vice president of Investor Relations for introductions and the reading our safe Harbor statement be Li. Please go ahead.
Be Li: Thank you operator, good morning, everyone and welcome to <unk> fourth quarter earnings call. During today's call, we will discuss our financial and operating results for the three and 12 months ended December 31, 2024, as well as our forward looking guidance.
Billy Eckert: During today's call, we will discuss our financial and operating results for the 3 and 12 months ended December 31st, 2024, as well as our forward-looking With us on today's call are Ofer Druker, Nexxen's Chief Executive Officer, and Sagi Niri, the company's Chief Financial Officer. This morning we issued a press release which you can access on our IR website at investors.nexsen.com.
Speaker Change: With us on today's call are Ofer, Joker, Nexus, Chief Executive Officer, and Fergie nears, the Companys Chief Financial Officer.
Speaker Change: This morning, we issued a press release, which you can access on our IR website at investors that Nexium Dot com.
Billy Eckert: During today's conference call, we will make forward All statements other than statements of historical fact could be deemed as forward We advise caution and reliance on... These statements include, without limitation, statements and 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 recent changes in the company's trading security structure, anticipated benefits related to the company's intended growth and platform investments, forward-looking views on macroeconomic and industry conditions, as well as any other the expected development, performance and market share, or competitive performance relating to our products.
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.
Speaker Change: These statements include without limitation statements and projections regarding our anticipated future financial and operating performance market opportunity growth prospects and strategy financial outlook partnership and anticipated benefits related to those partnerships anticipated benefits related to the recent changes in the Companys trading security structure.
Speaker Change: Dissipated benefits related to the Companys incentive growth and platform investments forward looking views on 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.
Billy Eckert: All forward-looking statements are based on information available to us as of the date of the meeting. 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 industrial...
Speaker Change: All forward looking statements are based on information available to us as of the date of this call. These.
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.
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 28. Nexxen 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: 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 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.
Speaker Change: Additionally, the company's press release and management statements. During this conference call will include discussions of certain measures and financial information in FRS and non Ifr S terms.
Speaker Change: We refer you to the company's press release for additional details, including definitions of non <unk> items and reconciliations of FRS to non <unk> results.
Ofer Druker: At this time, it is my pleasure to introduce Ofer Druker, CEO of Nexxen. Ofer, please go ahead. Thanks, Billy. U4 kept up an incredible year for Nexxen, as we generated record quarterly and annual contribution access, programmatic revenues, and CTV revenue results, alongside significantly expanded profitability.
Speaker Change: At this time it is my pleasure to introduce Overdrew Kirk CEO of Jackson over please go ahead.
Speaker Change: Q4 capped off an incredible year for <unk> as we generated record quarterly and annual contribution ex tax.
Speaker Change: There might be revenue and CTV revenue results alongside significantly expanded profitability.
Ofer Druker: Our success in 2024 was a byproduct of getting back to base. after completing the integration of AMOBI in 2020. We focus on driving stronger sales execution, installing key talent, simplifying our messaging, boosting our brand recognition, and organic product and data innovation. Our achievement on this front fuels strong results, and alongside our planned AI innovation, position us for continued market share gains in 2025 and beyond. Following these improvements, we have consistently received validation from the market that our years-long strategy to operate an end-to-end platform, connect our data platform to our tech stack and enrich its capabilities, and focus on CTV and video, places us well ahead of our peers.
Speaker Change: Our success in 2024, it was a byproduct of getting back to basics after completing the integration of <unk> in 2023.
Speaker Change: We focused on driving stronger sales execution installing keep diluting <unk>.
Speaker Change: Finally, our messaging.
Speaker Change: Our brand recognition and organic products and better innovation.
Speaker Change: Our achievement on these fronts fueled strong results and alongside our planned AI innovation position us for continued market share gains in 2025 and beyond.
Speaker Change: Following these improvements we have consistently received validation from the market.
Speaker Change: <unk> long strategy to operate an end to end platform connects our data platform to our tech stack and enrich its capabilities and focus on CCP and video placed us well ahead of our peers.
Ofer Druker: Since 2019, we have operated an end-to-end platform, which we believe gives us a clear competitive edge, as others in the industry are only now working to try unlocking the benefits of this platform. While one-sided fields are trying to replicate our model, we have an advantage of years of experience serving advertisers, agencies, and digital publishers across the ecosystem, supported by our fully functional and robust DSP and SSP technologies. Currently, we believe our DSP and SSP rank among the top in terms of scale and reach within the publicly traded open internet edtech space, especially in CTG. Our end-to-end tech platform and operating model benefits customers by enabling enhanced results through access to robust targeting data alongside simplicity and cost efficiency.
Speaker Change: Since 2019 with operators and end to end platform, which we believe give us a clear competitive edge as others in the industry are only now working to try unlocking the benefits of this approach.
Speaker Change: One sided P is trying to replicate our model we have.
Speaker Change: Vantage of years of experience.
Speaker Change: Moving advertisers agencies and digital partnerships across the ecosystem supported by our fully functional and robust DSP and SSP technology.
Speaker Change: Currently we believe our DSP and SSP rank among the top in terms of scale and reach within the publicly traded open Ethernet ethics space, especially in CTV.
Speaker Change: Our end to end tech platform and operating model benefits customers by enabling enhanced results through access to robust targeting data alongside simplicity and cost efficiencies.
Ofer Druker: while offering a larger time and growth opportunity for Nexxen compared to one-sided platforms. Customers can flexibly choose to work with us through one or more solutions, enabling us to learn and expand with partners. And throughout 2024, we were successful in growing relationships with existing customers, including several independent agencies and CTV OEMs like LG. We generated significantly increased spend consolidation and multi-solution adoption, driven largely by our efforts to get all of our enterprise DSP customers to adapt Nexxen SSP as a preferred SSP. which fuel greater end-to-end revenue and in turn strong growth and expanded profitability in 2020.
Speaker Change: While offering allows us time and growth opportunity for nexsan compared to one sided platform.
Speaker Change: Customers can flexibly choose to work with us through one or more solutions, enabling us to land and expand with partners and to our 2024.
Speaker Change: Successful in growing relationship with existing customers, including several independent agencies and CTV Oems like energy.
Speaker Change: We generated significantly increased spend consolidation and multi solution adoption driven largely by our efforts to get all of our enterprise DSP customers to it.
Speaker Change: That makes sense as steep as it broke.
Speaker Change: SSP.
Speaker Change: Youll greater end to end revenue and in turn.
Speaker Change: Loan growth and expanded profitability in 2024.
Ofer Druker: We enter the year with much stronger platform capabilities following the successful integration of Amobi in 2021. Amavi brought us powerful enterprise DSP capabilities, enhanced our data capabilities, and bolstered our CTV and omni-channel offerings, the combination of which positioned us for deeper penetration with large customers, including independent agencies. As I will expand on later, we are enhancing our platform, data and technology capabilities several steps further throughout 2025 by strategically deepening our AI capabilities and deploying generative AI innovation across our core products. building on our success and momentum from 2020. We are confident that our planned AI initiatives in 2025 will make our platform's user interface more intuitive and easier to navigate, better linking customer results to the strength of our tech and data, reducing reliance on user sophistication, and expanding our market opportunity.
Speaker Change: We ended the year with much stronger platform capabilities.
Speaker Change: Showing the successful integration of <unk> in 2023.
Speaker Change: Won't be brought us powerful enterprise DSP capabilities enhance our data capabilities and bolsters, our CPB and omnichannel offering the combination of which positions us for deeper penetration with large customers, including independent agencies.
Speaker Change: As Doug will expand on later, we are enhancing our platform data and technology capabilities.
Speaker Change: Our steps further throughout 2025 by strategically deepening AI capabilities and deploy generates evi innovation across our core products.
Speaker Change: Building on our success and momentum from 2024.
Speaker Change: We are confident that our planned AI initiatives in 2025 will make our platform user interface more intuitive and easier to navigate better linking customers result to the strength of our tech and data, reducing reliance on user sophistication and expanding our.
Market volatility.
Ofer Druker: By unleashing and integrating generative AI across our core offerings, we will refine our audience targeting precision and deepen the interconnectivity of our platform solutions, which we believe will generate even stronger returns for our customers and drive greater spend consolidation. We firmly believe these combined efforts will not only boost our standing within the industry, but also accelerate our long-term growth, differentiation, and strategic value to industry leaders.
Speaker Change: <unk> leasing and integrating generated across.
Speaker Change: Across our core offering we will refine our audience targeting precision and deepen the interconnectivity of our platform solution, which we believe will generate even stronger returns for our customers and drive greater spend consolidation.
Speaker Change: We firmly believe these combined efforts will not only boost our standing within the industry, but also accelerate our long term growth differentiation and strategic value two industry leaders.
Ofer Druker: The timing couldn't be more ideal to deepen our AI capabilities, having laid a strong tech and data foundation by integrating Amobi in 2023 and launching Nexxen data platform in 2024, the combination of which has propelled Nexxen into a new era of ed-tech leadership and differentiation. Nexxen Data Platform is integrated with our DSP and SSP and has become central to every key discussion with customers, partners, and the industry. while establishing us as the leading data-first platform. The platform unifies all our data assets and capabilities, creating a wide range of interconnected and advanced data solutions working in synchrony to drive better results for our partners.
Speaker Change: The timing couldnt be more ideas to deepen our AI capabilities.
Speaker Change: <unk> laid a strong tech and data foundation by integrating that won't be in 2023 and launching next week.
Form in 2012 before the combination of which is fulfilled <unk> into a new era of ethical leadership and differentiation.
Speaker Change: <unk> data platform is.
Speaker Change: Integrated with our DSP and SSP and has become central to every key discussion with customers partners and the industry.
Speaker Change: While establishing us as the leading data platform.
Speaker Change: The platform unifies all of our debt.
Speaker Change: And capabilities, creating a wide range of interconnected and advanced solution working infrequently.
Speaker Change: Drive better results for our partners.
Speaker Change: <unk> data platform features our proprietary audience discovery technology unified I'd graph, two ranked as media capabilities and robust television focused set of tools.
Ofer Druker: Nexxen Data Platform features our proprietary audience discovery technology, unified ID graphs, curated media capabilities, and robust TV-focused data to highlighted by our exclusive access to VIDA global ACR data and our TV intelligence solution which incorporates several far-reaching TV data sources. We believe this reflects one of the most comprehensive data offerings in edtech. And it has tangibly fueled better returns on the advertising spend for our customers, greater confidence in our holistic solution, and ultimately, increased spend consolidation. Nexxen Data Platform is unique, enabling our customers to onboard first-party data, enrich it with our powerful data sources and tools to extend audience reach.
Speaker Change: I liked it by all exclusive access to visa global ACR data and our TV intelligent solution, which incorporates seven far reaching TD data sources.
Speaker Change: We believe this reflects one of the most comprehensive offering in <unk>.
Speaker Change: Tangibly feel better retention as well.
Speaker Change: <unk> spend ball customers greater confidence in our logistic solution.
Speaker Change: We increased spend consolidation.
Speaker Change: Next one thats a platform with unique enabling our customers to on both first party data enriches with our powerful data sources and two to expand audience reach.
Ofer Druker: Activate audiences on our VSP and measure, eliminating the need for other parts. With an open and scalable approach to data, our platform is also built to thrive regardless of changes in the addressability lens. We have generated early adoption from notable partners, while our ACL data exclusivity is driving more and more data licensing partnerships with major players in the industry, like the traders and stock adopters. This highlights that the Nexxen data platform is not only powering better results for Nexxen and its customers, but also increasing our value and recognition across the ecosystem. In 2025, we will continue leading with Nexxen Data Platform in our sales effort and expect to build on the success we achieved in 2024 following the launch.
Speaker Change: Activate audiences.
Speaker Change: <unk> and measure eliminating the need for other partners.
Speaker Change: We've been open and scalable approach to data. Our platform is also built to thrive regardless of changes in the address ability landscape.
Speaker Change: We have generated early adoption for multiple partners, while our ACI that exclusivity is driving more and more of that licensing partnership with major players in the industry like the trade desk in second half.
Speaker Change: This highlights the <unk> data platform is not only powering better results for Nexsan and its customers, but also increasing our value and our recognition across the ecosystem.
Speaker Change: In 2025, we will continue leading with <unk> data platform.
Speaker Change: Therefore, and expect to build on the success, we achieved in 2024 following the launch.
Speaker Change: Outside of our data platform release, our strong Q4 and full year 2024 results were driven by CPT one of our core peers.
Ofer Druker: Outside of our data platform release, our strong Q4 and full year 2024 results were driven by CTV, one of our core peers, where we expect to continue increasing our competitive advantage and growing our market share. Our years of focused investment in building an ecosystem designed to deliver better results for both advertisers and CTV publishers have positioned us for continued success. Our platform, Unified QTV Focus DSP, SSP, and TV Data Solution enables seamless experience and better returns for our customers, creating a clear value proposition. CTV advertisers are seeking more direct relationships and integration with publishers to generate better returns on S&P.
Speaker Change: We expect to continue increasing our competitive advantage and growing our market share.
Speaker Change: So focus investment and building an ecosystem designed to deliver better results for both advertisers and CTV publishers and position us for continued success.
Speaker Change: Our platform really prior to television focused DSP SSP and TV solution.
Speaker Change: Table seamless experience and better returns for our customers, creating a clear value proposition.
Speaker Change: Advertisers are seeking more direct relationship and integration with publishers generate better returns on SP.
Ofer Druker: While CTV publishers are seeking greater and unique advertising demand, as well as solutions designed to maximize their revenue and efficiency. With our capabilities strongly positioned to assist and enhanced results on both fronts, our end-to-end CTV focus platform is a perfect fit for both sides of the ecosystem, providing a larger CTV market and growth of utility for Nexxen compared to one-sided peers. Additionally, our simplified messaging and stronger brand recognition has driven customers and new partners to recognize us more and more as a true CTV ad tech leader. With billions of dollars in linear TV ad budget expected to migrate to digital over time, particularly as live sports shifts towards CTV, we believe we are well positioned for long-term CTV revenue growth through our robust access to premium CTV and live sports inventory, alongside our CTV-focused tech and data capability.
Speaker Change: Whereas typically publishes seeking greater and unique advertising demand.
Speaker Change: Well as solution designed to maximize the revenue and efficiency.
Speaker Change: With our capabilities strongly positioned to ft and enhanced results on both fronts. Our end to end CTV focused platform is a perfect fit for both sides of the ecosystem.
Speaker Change: <unk> allows the CBD market and growth opportunity for <unk> compared to one sided fields.
Speaker Change: Additionally, our simplified messaging and stronger brand recognition is driven customers and new partners to recognize us more and more as a true CTV ethics review.
Speaker Change: With billions of dollars in linear TV AD budget expected to migrate to digital overtime.
Last four shifts CBD, we believe we are well positioned for long term <unk> revenue growth through our robust access to premium CTV and life, both inventory alongside our strategic focus tech and data capabilities.
Speaker Change: We also anticipate more major CPL streaming platform will seek partnership with Axa in going forward.
Ofer Druker: We also anticipate more major CTV and streaming platforms will seek partnership with Nexxen going forward as the industry is recognizing the value that our collective solution can bring.
Speaker Change: The industry is recognizing the value that our collective solution can bring.
Ofer Druker: Amid strong execution on our strategy, in Q4, we added 112 new actively spending first-time advertisers customers, including 18 new enterprise self-service DSP customers and three new independent agencies, leveraging our self-service solution. We also added 73 new supply partners, including some of the industry's most well-known free and supported streaming services. In addition to our data and tech advancement, our success at tracking and onboarding new talent across our sales, marketing, and product teams at both senior and middle management level has positioned us strongly for future growth and accelerated innovation. We have continued to see an influx of talent eager to join Nexxen, including from peers and renowned industry leaders.
Speaker Change: Amid strong execution on our strategy in Q4, we added 112, new actively spending first time advertiser customers.
Speaker Change: 18, New enterprise self service DSP customers and three new independent agencies, leveraging our self service solution.
Speaker Change: We also added 73, new supply partners, including some of the industry's most well known free AD supported streaming services.
Speaker Change: In addition to our data and tech advancements.
Speaker Change: Success, attracting and Onboarding, new talent across our sales marketing and product teams at both senior and Middle management level.
Speaker Change: Position us strongly for future growth and accelerated innovation.
Speaker Change: We have continued to see an influx of talent you guys, who joined exits including from peers.
Speaker Change: Sound industry leaders.
Speaker Change: In Q1, we also evolved our trending structure by streamlining towards single use ordinary share listing on NASDAQ, which we believe enhance our long term capital appreciation potential.
Ofer Druker: In Q1, we also evolved our trading structure by streamlining to a single U.S. ordinary share listing on NASDAQ, which we believe enhance our long-term capital appreciation potential. When we executed our secondary listing on NASDAQ in 2021, we were certain it would be in our best interest to eventually delist from AIM and move solely to the U.S. Ordinary Share List. But before we could make these changes, we needed to accelerate our growth and await a stronger advertising environment for the move to be well-received by investors. With these factors now aligned, we believe over time these changes will increase our U.S.
Speaker Change: When we executed our secondary listing on NASDAQ in 2021.
Speaker Change: Sales then it would be in our best interest.
Speaker Change: Eventually the least forming and move volume to the U S ordinary share listing.
Speaker Change: But before we could make these changes we needed to accelerate our growth and our weights are strongest advertising environment for the move to be well received by investors with.
Speaker Change: With respect those now aligned we believe over time. These changes will increase our USC vessel footprint and the recognition drive greater liquidity improve our screening on financial data platform and increase our eligibility for inclusion in select industries.
Ofer Druker: investor footprint and recognition, drive greater liquidity, improve our screening on financial data platforms, and increase our eligibility for inclusion in select industries.
Ofer Druker: Finally, as mentioned earlier, we are executing on a clear strategic vision to strengthen our platform by deepening our AI capabilities, inclusive of generative AI and machine learning. In 2025, we are launching our first material generative AI driven innovation. with new solutions rolling out in H1 and throughout the year. AI has been called to our platform for years. By further scanning these capabilities through generative AI implementations across our vertically integrated platforms, we believe we will be able to deliver stronger performance, better operational efficiency, and cost saving for our customers across the key jobs of planning, activation, optimization, and monetization.
Speaker Change: Finally as mentioned earlier.
Speaker Change: Executing on a clear strategic vision to strengthen our platform by deepening our AI capabilities.
Speaker Change: <unk> of generative AI and machine learning.
Speaker Change: In 2025, we are launching our first material to generate these AI driven innovations with.
Speaker Change: New solutions Rolling out in H, one and two <unk> AI has been core to our platform fully.
Speaker Change: By further scaling these capabilities through generating AI implementations across our vertically integrated platform. We believe we will be able to deliver stronger performance better operational efficiency and cost savings for our customers across the key job of planning activation optimum.
Speaker Change: Nation and monetization journey.
Ofer Druker: Generative AI isn't a password for us. Our end-to-end technology stack, connected to a wealth of data, enables us to unlock value for our customers through generative AI in ways one-sided solutions can't. This year, we are implementing AI-driven enhancements across our DSP, creative studio, and data platform, audience creation, and analytics capabilities focused on two key objectives. The first is to simplify platform usability by deploying AI agents that we believe will lower barriers to entry, foster customer spending growth, and expand our market opportunities. These agents will provide real-time campaign optimization suggestions and integrate directly with our activation tools, driving better returns on ad spend and widening our platform's utility to a larger base.
Speaker Change: <unk> uses a buzzword for us.
Speaker Change: Our end to end technology stack connected to a wealth of data enabled us to unlock value for customers through generative AI in ways, one sided solutions cuts.
Speaker Change: This year, we are implementing AI driven enhancements across our DSP creative studio and data platform audience creation and analytics capabilities focused on two key objectives.
Speaker Change: The first is to simplify platform usability by deploying AI agent that we believe we lower barriers to entry.
Speaker Change: Customer spending growth and expand our market opportunity.
Speaker Change: These agents will provide real time campaign optimization suggestion.
Speaker Change: <unk> integrates directly with our activation tools driving better returns on expense and widening our platform of futility.
Speaker Change: Roger base.
Ofer Druker: The second objective is to optimize the use of our robust data sets, focusing specifically on enhancing our data and audience capabilities, which we believe will significantly improve targeting precision and reach, and also lead to higher customers' returns and increased spending on our platform. While there is low-hanging fruit for us to achieve short-term AI innovation needs, in other instances, our more complex initiatives will take time before we reap the full benefits of our innovation.
Speaker Change: The second objective is to optimize the use of our robust data set.
Speaker Change: Focusing specifically on enhancing our data and audience capabilities, which we believe we've significantly improved targeting precision and reach and also leads to customers with them and increased spending on our platform.
While there is low hanging fruit for us to achieve short and AI innovation in other instances our more complex initiatives will take time before this.
Speaker Change: The full benefits of our investments.
Ofer Druker: That said, we are confident this enhancement will accelerate our long-term growth of utility, make Nexxen a fundamentally stronger company, and solidify us as a strategic partner and platform of choice for industry leaders in the years to come.
Speaker Change: That said we are confident this announcement will accelerate our long term growth of utility <unk>, a fundamentally stronger company and solidify us as their strategic partner and platform of choice for industry leaders in days to come.
Speaker Change: 2022, and 2023, where is of acquisition and integration.
Ofer Druker: 2022 and 2023 were years of acquisition and integration. 2024 was focused on transformation, simplification, and innovation. And in 2025, we believe we are poised to achieve market-share gain acceleration. After years of enhancing our platform, business, and trading structure, and simplifying our messaging, we are better positioned than ever to expand. Our strategy is resonating and customers across the ecosystem are continuing to flock to Nexxen for our flexible platform data, CTV, video, and omnichannel capabilities, and we believe our AI investments will further advance our competitive edge, differentiation, and leadership position. I'm excited to continue supporting and driving innovation for our partners.
Speaker Change: Default was focused on transformation simplification and innovation and in 2025, we believe we are poised to achieve market share gains acceleration.
Speaker Change: After years of enhancing our platform business and trading structure and simplifying our messaging, we are better positioned than ever to execute.
Speaker Change: Our strategy is resonating and Perth domestic cost the ecosystem are continuing to slog through nexen.
Speaker Change: Our flexible platform data CTV video and Omnichannel capabilities, and we believe our AI investments will further advance our competitive.
Speaker Change: Differentiation and leadership position.
Speaker Change: I am excited to continue supporting and driving innovation for our partners and with that I'm happy to turn the call to <unk>.
Sagi Niri: And with that, I'm happy to turn the call to Sagi. Thank you, Ofer. Q4 was very strong for Nexxen as we exceeded the rule of 50, generating 16% year-over-year contribution XTAC growth and an adjusted EBITDA margin of 42% on a contribution XTAC basis. In Q4, we generated a contribution exact of $105.2 million, which reflected an all-time quarterly record. Programmatic revenue was $98.7 million in Q4, reflecting 15% growth from Q4 2023, and an all-time quarterly record, while contribution extracts from our non-programmatic business lines increased $1.9 million year-over-year in Q4. Growth in Q4 was driven by stronger sales execution following our recent platform, business and brand recognition enhancement, scaling partnerships, improved advertising conditions, particularly within the CTV market, greater multi-solution adoption by customers, and the U.S.
Speaker Change: Thank you all per Q4 was very strong for Nexsan as we exceeded the rule of 50% generating 16% year over year contribution ex Tac growth and an adjusted EBITDA margin of 42% on a contribution ex Tac basis.
Speaker Change: In Q4, we generated contribution ex Tac of $105 $2 million, which reflected an all time quarterly record.
Speaker Change: Programmatic revenue was $98 $7 million in Q4, reflecting 15% growth from Q4, 2023, and an all time quarterly record well contribution ex tax from our non programmatic business lines increased $1 $9 million year over year in Q4.
Growth in Q4 was driven by stronger sales execution. Following our recent platform business and brand recognition enhancement.
Speaker Change: <unk> partnership improved advertising conditions, particularly within the CTV market greater multi solution adoption by customers in the U S election cycle.
Sagi Niri: election cycle. We observe strength in CTV, video display, data products, self-service products, and PMPs, and increases across most of our industry verticals, with the largest increases observed in our government, retail, finance, automotive, health, and technology verticals. On the opposite side, we experience a year-over-year decrease in mobile video revenue and within our travel and education verticals. The majority of our contribution extra strength in Q4 was driven by CTV as we generated CTV revenue of $37 million, reflecting 86% growth from Q4 2023, and an all-time quarterly record as CTV revenue represented 38% of our programmatic revenue, up from 23% in Q4 2023.
Speaker Change: We observed strength in CTV video display that's our product self service products and Pnp and increases across most of our industry verticals with the largest increases observed in our government retail finance automotive Elsa and technology verticals.
Speaker Change: On the opposite side, we experienced a year over year decrease in mobile video revenue and we are in our travel and education verticals.
Speaker Change: The majority of our contribution SaaS strength in Q4 was driven by CTV as we generated CTV revenue of $37 million, reflecting 86% growth from Q4, 2023, and an all time quarterly record as CTV revenue represented 38% of our programmatic revenue up.
Speaker Change: From 23% in Q4 2023.
Sagi Niri: Our robust CTV revenue growth was attributable to a combination of Those factors include stronger sales execution, better recognition within the CTV market following our rebranding to Nexxen, an improved macroeconomic and industry environment which drove new and existing customers to our premium CTV solutions, benefits related to our partnership with LG, and tailwinds from the 2024 US election cycle. Our CTV revenue growth drove our video revenue to expand significantly as a percentage of programmatic revenue to 75% in Q4 2024, from 67% in Q4 2023. As CTV revenue growth substantially outpaced mobile video revenue decline. We've boosted our CTV and video capabilities over the last several years, and we'll continue investing in enhancing them further.
Speaker Change: Our robust CTV revenue growth was attributable to a combination of factors.
Speaker Change: Those factors include stronger sales execution.
Speaker Change: Hey recognition within the CTV market, following our rebranding to nexsan and improved macroeconomic and industry environment, which drove new and existing customers to our premium CTV solutions benefits related to our partnership with LG and tailwind from the 2024 U S election cycle.
Speaker Change: Our CTV revenue growth drove our video revenue to expand significantly as a percentage of programmatic revenue to 75% in Q4 2024 from 67% in Q4 2023 as CTV revenue growth essentially outpaced mobile video revenue decline.
Speaker Change: We've boosted our CTV and video capabilities over the last several years and will continue investing and enhancing them further.
Sagi Niri: As a result, we expect video revenue to remain a primary growth driver for Nexxen over time. We continue to see customers increasingly choosing to partner with us and allocating more budget towards our video solutions, as our data-driven video and CTV-focused platform oftentimes drives better targeting, audience-rich extension, and returns on advertising spend than other platforms within the industry. Elsewhere, contribution x-tax from display grew 9% year-over-year in Q4, while self-service contribution x-tax increased 21%. driven largely by strong growth within our enterprise DSP. Additionally, in Q4, contribution extracts from PMPs grew 20% and contribution extracts from data products grew 102% year-over-year.
Speaker Change: As a result, we expect video revenue to remain our primary growth driver for Nexsan overtime.
Speaker Change: We continue to see customers increasingly choosing to partner with us and allocating more budget towards our video solution as our data driven video and CTV focused platform oftentimes drive better targeting audience reach extension and we turned on advertising spend than other platforms within the industry.
Speaker Change: Elsewhere contribution ex Tac from display grew 9% year over year in Q4, well self service contribution ex Tac increased 21% driven largely by strong growth in our enterprise DSP solution. Additionally.
Speaker Change: Additionally, in Q4 contribution ex Tac from Pnp's grew 20% and contribution ex Tac from data products grew 102% year over year.
Sagi Niri: The 2024 U.S. election cycle contributed approximately $6 million in political contribution EXPAC in Q4 2024, and approximately $10 million for full year 2024, reflecting new quarterly and annual political contribution EXPAC records for next year. In Q4, we also generated adjusted EBITDA of $44.3 million, the second highest quarterly adjusted EBITDA in Nexxen's history, reflecting a 38% increase from Q4 2020. Our significant adjusted EBITDA growth was driven by higher contribution exacts, greater customer spend consolidation, lower than expected costs in the quarter and customers increasingly adopting multiple solutions within our ecosystem, particularly as our enterprise DSP customers access more inventory through our EBITDA.
Speaker Change: The 2024 U S election cycle contributed approximately $6 million in political contribution ex Tac in Q4, 2024, and approximately $10 million portfolio 2024, reflecting new quarterly and annual political contribution ex Tac record for next one.
Speaker Change: In Q4, we also generated adjusted EBITDA of $44 3 million.
Speaker Change: The second highest quarterly adjusted EBITDA, and <unk> III, reflecting a 38% increase from Q4 2023.
Speaker Change: Our significant adjusted EBITDA growth was driven by higher contribution ex Tac greater customer spend consolidation and lower than expected cost in the quarter and customers increasingly adopting multiple solutions within our ecosystem, particularly as our enterprise DSP customers access more inventory through our SSP.
Speaker Change: Our adjusted EBITDA margin in Q4 increased to 42% as a percentage of contribution ex tax from 35% in Q4, 2023, and we remain confident in our ability to continue expanding our adjusted EBITDA margins over time.
Sagi Niri: Our adjusted EBITDA margin in Q4 increased to 42% as a percentage of contribution extracts from 35% in Q4 2023, and we remain confident in our ability to continue expanding our adjusted EBITDA margins over time. In 2024, our contribution X-PAC retention rate increased to 102% from 73% in 2023, amid greater customer spend consolidation and expanded multi-solution adoption, underscoring the benefits of the platform, sales team, and brand enhancements we've made since the completed integration of Amobi and rebranding. The increase was service-supported by us proactively and strategically discontinuing relationships with smaller customers that were not generating significant revenue or profitability for Nexxen to sharpen our focus on better servicing and growing revenue relationships with larger customers.
Speaker Change: In 2024 hour contribution ex Tac retention rate increased to 102% from 73% in 2023 amid greater customer spend consolidation and expanded multi solution adoption underscoring the benefits of the platform sales team and brand enhancement we've maintained the completed.
Speaker Change: The integration of <unk> and rebrand through Nexen the.
Speaker Change: The increase was further supported by us proactively and strategically this continuing relationship with smaller customers that were not generating significant revenue or profitability for next time to sharpen our focus on better servicing and growing revenue relationships with larger customers.
Sagi Niri: As a result of these combined factors, for full year 2024, our contribution x-stack per active customer increased to roughly $526,000, reflecting 69% growth from 2023. And we believe we remain well positioned to continue expanding our contribution x-stack retention rate over time. In Q4, we generated $52.3 million in net cash from operating activities, compared to $43.6 million in Q4. As of December 31st, we had $187.1 million in cash and cash equivalents, $90 million undrawn on our revolving credit facility, and no long-term Following the full repayment of our approximately $100 million of pending principal long-term debt balance in April.
Speaker Change: As a result of these combined factors for the full year 2024 hour contribution ex Tac per active customer increased to roughly $526000, reflecting 69% growth from 2023, and we believe we remain well positioned to continue expanding.
Speaker Change: <unk> contribution ex Tac retention rates overtime.
Speaker Change: In Q4, we generated $52 3 million in net cash from operating activities compared to $43 6 million in Q4 2023.
Speaker Change: As of December 31, we had $187 $1 million in cash and cash equivalents $90 million undrawn on our revolving credit facility and no long term debt.
Speaker Change: Following the full repayment of our approximately $100 million outstanding principal long term debt balance in April 2024.
Sagi Niri: We also reported non-IFRS diluted earnings per ordinary share of 48 cents in Q4, 2024, compared to 20 cents in Q4, 2023, or 24 cents in Q4, 2024, compared to 10 cents in Q4, 2023, on a pre-reverse split basis. During Q4, we repurchased roughly 4.5 million ordinary shares, or 2.25 million shares on a cost-reverse split basis, reflecting an investment of £15.6 million, or $20.1 million. From March 1st, 2022, when we began a series of share repurchase programs, through December 31st, 2024, we invested roughly $157.3 million in our repurchase program, buying back approximately 37.9 million ordinary shares, or roughly 19 million shares on a post-reverse split basis, which reflected approximately 24.5% of our shares outstanding.
Speaker Change: We also reported non ISR as diluted earnings per ordinary share.
Speaker Change: 48, <unk> in Q4 of 2024 compared to <unk> 20 in Q4 2023.
Speaker Change: 24, <unk> in Q4 2024 compared to <unk> 10 in Q4 2023 on a pre reverse split basis.
Speaker Change: During Q4, we repurchased roughly $4 5 million ordinary shares or two 5 million shares on a post reverse split basis, reflecting an investment of $15 6 million pounds or $21 million.
Speaker Change: Through March 2022, when we began a series of share repurchase program through December 31st 2024, we invested roughly $157 $3 million in our repurchase program buying back approximately $37 9 million ordinary shares or roughly 19 million.
Speaker Change: Shares on a post reverse split basis, which reflected approximately 24, 5% of our shares outstanding.
Speaker Change: Our current and ongoing $50 million share repurchase program launch on November 19, 2024, and is expected to continue until the earlier of May 19, 2025, well completion and is now being executed on nasdaq's following our voluntary delisting from an in mid February.
Sagi Niri: Our current and ongoing $50 million dollar share repurchase program launched on November 19, 2024, and is expected to continue until the early year of May 19, 2025, or completion, and is now being executed on NASDAQ following our voluntary delisting from AIM in mid-February. As of December 31, 2024, we had $38.4 million remaining on our share repurchase program authorization and $17.4 million remaining as of February 28, 2025. Additionally, our Board of Directors approved the launch of a new $50 million Ordinary Share Repurchase Program following completion of the current ongoing The new program is expected to begin on the earlier of May 19th.
Speaker Change: As of December 31st 2024, we had $38 $4 million remaining on our share repurchase program authorization and $17 $4 million remaining as of February 28 2025.
Speaker Change: Additionally, our board of directors approved the launch of a new $50 million ordinary share repurchase program. Following completion of the current ongoing program.
Speaker Change: The new program is expected to begin on the earlier of May 19, 2025 or completion of the currently ongoing program and continue until the NDA off November 19, 2025 or completion.
Sagi Niri: or completion of the currently ongoing program, and continue until the earlier of November 19th, 2025. If shares remain at prices the board believes continue to reflect a discount to fair value following the end of the current and impending program, we will consider initiating an additional one thereafter.
These shares remain at prices. The board believes continues to reflect the discount to fair value. Following the end of the current and pending programs, we will consider initiating an additional one very often.
Speaker Change: With that I'll turn to our outlook.
Sagi Niri: With that, I'll turn to our For full year 2025, we anticipate generating contribution X-stack of approximately $380 million, with programmatic revenue expected to reflect approximately 90% of full year 2025 revenue. We also expect to generate approximately $125 million of adjusted EBITDA for full year 2025 and to extend our CTV revenue and data licensing revenue compared to 2020. For full year 2025, we expect our sales and marketing expenses, G&A and depreciation and amortization to reflect roughly the same percentage of contribution exact as in full year 2024. And we expect R&D expenses to increase as a percentage of contribution exact.
Speaker Change: For full year 2025, we anticipate generating contribution ex Tac of approximately $380 million with programmatic revenue expected to reflect approximately 90% of full year 2025 revenue.
Speaker Change: We also expect to generate approximately $125 million of adjusted EBITDA for full year 2025 and to extend our CTV revenue in data licensing revenue compared to 2024.
Speaker Change: For full year 2025, we expect our sales and marketing expenses, G&A and depreciation and amortization to reflect roughly the same percentage of contribution ex Pat is in full year 2024, and we expect R&D expenses to increase as a percentage of contribution ex tax.
Speaker Change: In full year 2025, we anticipate stock based compensation expenses will increase compared to 2024, largely due to our increased share price compared to 2023.
Sagi Niri: In full year 2025, we anticipate stock-based compensation expenses will increase compared to 2024, largely due to our increased share price compared to 2035.
Sagi Niri: Our Rebourse Compensation Committee, with guidance from its independent consultants, has approved an updated executive compensation philosophy aimed at aligning total target pay near the median of the committee-approved comparison group comprised of similarly sized U.S.-listed companies operating broadly similar businesses. Consisting of base salaries, cash bonuses, and long-term equity incentives, the program closely ties actual executive pay to the achievement of predefined revenue, EBITDA, and relative total shareholder return goals, ensuring executive compensation is aligned with the performance of the business. While remaining at or below median dilution levels of our comparison.
Speaker Change: Our board's compensation committee with guidance from independent consultant has approved an updated executive compensation philosophy and aligning total target paying near the median of the committee approved comparison group comprised of stimulators tight U S listed companies operating broadly similar businesses.
Speaker Change: Consisting of base salaries cash bonuses and long term equity incentive the program closely ties actual executive pay to the achievement of a predefined revenue EBITDA and relative total shareholder return goals, ensuring the executive compensation is aligned with the performance of the business will remain.
Speaker Change: <unk> at or below median dilution levels of our comparison groups.
Speaker Change: As also mentioned throughout 2025, we will be investing more in advancing our tech data and AI capabilities increasingly integrate and generate these AI across our core products to drive basic platform usability and returns on advertising spend for our customers.
Sagi Niri: As Ofer mentioned, throughout 2025, we will be investing more in advancing our tech, data and AI capabilities, increasingly integrating generative AI across our core products to drive better platform usability and returns on advertising spend for our customers. Our two primary capital allocation focuses in 2025 will remain on share repurchases and investing in our platform as we currently have no plans for major M&A in the near For more information visit www.FEMA.gov Looking ahead, we remain hyper-focused on growing revenue relationships with customers by working to gain larger budget shares and fostering increased multi-solution adoption across our end-to-end ecosystem, building on our success on these fronts in 2021.
Speaker Change: Our two primary capital allocation focus is in 2025, we will remain on share repurchases and investing in our platform. As we currently have no plans for major M&A in the near term.
Speaker Change: Looking ahead, we remain focused on growing revenue relationships with customers by working to gain larger budget chairs and posted increased multi solution adoption across our end to end ecosystem building off our success on these fronts in 2024.
Sagi Niri: We will also seek to attract new sizable partners to our platform in 2025 and grow our CTV, omni-channel, and data licensing revenue opportunities. In 2025, we will continue focusing on expanding relationships with independent agencies, where we believe we are particularly well positioned to serve as a strategic partner, have a strong growth opportunity, and can establish a dominant position and niche within the These independent agencies are expected to continue gaining market share from major holding companies for the foreseeable future, and we believe our platform is uniquely and strategically positioned to help support and benefit from that.
Speaker Change: We will also seek to attract new sizable partners to our platform in 2025 and grow our CTV omnichannel in data licensing revenue opportunities in.
Speaker Change: In 2025, we will continue focusing on extending relationship with independent agencies, we believe we're particularly well positioned to serve as a strategic partner had a strong growth opportunity and can establish a dominant position in niche within the industry.
Speaker Change: These independent agencies are expected to continue gaining market share through a major holding companies for the foreseeable future and we believe our platform is uniquely and strategically positioned to help support and benefit from that growth.
Sagi Niri: Our tech platform's ability to serve customers flexibly and holistically alongside our robust data capabilities gives us confidence in our positioning to drive increased customer spending, attract new partners, and achieve sustainable long-term growth, expanded profitability, and market share. We also believe Nexxen's ability to land and expand with customers through multi-solution, end-to-end adoption, gives us a larger market and long-term growth opportunity than one-sided platforms. After a strong and transformational 2024, our momentum is carried over to this point in 2025. We believe we have all the right pieces in place to continue building on our success from 2024 with a stronger platform that we're continuing to strategically enhance through generative AI, as well as an improved sales organization, value proposition, and brand.
Speaker Change: Our tech platforms ability to serve customers flexibly and Holistically alongside our robust data capabilities gives us confidence in our positioning to drive increased customer spending attract new partners and achieve sustainable long term growth expanded profitability and market share gains.
Speaker Change: We also believe <unk> ability to land and expand with customers for multi solution end to end adoption gives us a larger market and long term growth opportunity and one sided platform.
Speaker Change: After a strong and transformational 2024 hour momentum has carried over to this point in 2025.
Speaker Change: We believe we have all the right pieces in place to continue building on our success from 2024 with a stronger platform that will continue to strategically enhance through generated with AI as well as an improved sales organization value proposition and brand.
Ofer Druker: 2025 is now all about. We want to thank our shareholders, employees, and partners for their support, and we look forward to increasing our U.S. investor presence following our recent shift to a single U.S. ordinary share listing on NASDAQ, which we expect will benefit Nexxen and its shareholders over the long term.
Speaker Change: 2025 is now all about execution.
Speaker Change: We want to thank our shareholders employees and partners for their support and we look forward to increasing our U S. Investor presents following a recent shift to a single use ordinary share listing on NASDAQ, which we expect will benefit <unk> and its shareholders over the long term.
Operator: With that operator, we'll now take questions. Thank you. We will now begin the question and answer session.
Speaker Change: With that operator, we'll now take questions.
Speaker Change: Yeah.
Speaker Change: Thank you we will now begin the question and answer session.
Operator: If you would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the To withdraw your questions, simply press star 1. 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. Again, press star 1 to join.
Speaker Change: I would like to ask a question. Please press star one on your telephone keypad to Asia and China.
Speaker Change: Thank you.
Speaker Change: We draw your question simply press Star one again.
Speaker Change: I call upon to ask your question listen via loud speakers.
Speaker Change: Please pickup your handset and ensure that your phone is not on mute when asking your question again crestar one to join the queue.
Speaker Change: And your first question comes from the line of Matt Swanson with RBC capital markets.
Matthew Swanson: And your first question comes from the line of Matt Swanson with RBC Capital Markets. Your line is open. Great, thank you. And congratulations on the quarter, particularly relative to kind of how uneven this earnings season's been for a lot of peers. Ofer, the customer and publisher additions were strong in the quarter. It really aligns with kind of what we've been talking about in terms of flipping from defense to offense post-EMOB integration.
Speaker Change: Youre open.
Matt Swanson: Great. Thank you and congratulations on the quarter, particularly relative to kind of how uneven Miss earnings season spend for a lot of peers.
Matt Swanson: Oh for the customer and publisher editions were strong in the quarter. It really aligns with kind of what we've been talking about in terms of flipping from defense to offense post BMO be integration.
Ofer Druker: Can you just talk a little bit more about the go-to-market improvements and how you're looking to build on some of this momentum into 2025? Thank you, Matt. Thank you also for the question. I think that the change that we've done after the integration of Amobi is of course material, we can see that also in the results. But part of the thing that we are talking about go-to-market is changing the brand and improving and tightening the messages to the message to the market make a lot of difference because people now understand better what we are basically offering and how we can they how we can help them grow their business and we see a lot of good response from the market around that but people starting to you know they see also the behavior of the other other partner or other peers in the market that everybody is trying to build an end-to-end solution while we already got it ready and we are working with that for the last for the last almost six years and it's helping us to do that but we feel also that the brand and the connection of everything under one umbrella is basically as I mentioned explain and improving the message and the data in every discussion that we are doing data is basically is a very key point because people understand now more and more the value in data and how they can integrate it into their business and it's helping us of course because we are one of the only platforms that is horizontal integration and it's very rich in data and enable the departments from both sides of the of the screen like the advertisers and the publishers to launch to utilize their data to enrich it and to utilize them on the platform so I think that all of that together end-to-end usage of data a strong reach in CTV is helping us to reach publishers and advertisers that want to work with us and we see the results in the number of the tubing.
Matt Swanson: Could you just talk a little bit more about the go to market improvements and how you are looking to build on some of this momentum into 2025.
Matt Swanson: Thank you Matt.
Matt Swanson: Thank you also for the question.
Matt Swanson: I think that the change that we've done after the integration of <unk> will be.
Matt Swanson: Course material, we can see that also in the results, but part of the thing that we are talking about go to market is <unk>.
Matt Swanson: <unk>, the brand and improving and tightening the messages to the message to the market to make a lot of defense because people now understand better.
Matt Swanson: We are basically offering and how we can how we can help them grow their business and we see a lot of good.
Matt Swanson: Response from the market around that with people starting to <unk>.
Matt Swanson: See also the behavior of the other partners or other peers in the market that everybody is trying to build an end to end solution, while we already got it will be.
Matt Swanson: We are working with us for the last.
Matt Swanson: For the last.
Matt Swanson: Almost six years, and it's helping us to do that but we've seen also that the brand.
Matt Swanson: The connection of everything under one umbrella is basically as I mentioned explain.
Matt Swanson: Proving the message and the data in every discussion that we are doing.
Matt Swanson: Data is basically is a very key point because people understand more and more the value and that they know if they can integrate it into their business and it's helping us of course, because we are one of the only platform that is already done that integration and it's very rich in data and enabled the.
Matt Swanson: The Panthers from both sides of the.
Matt Swanson: <unk> like the advertisers and publishers to launch to utilize there that we can reach you for Google as a mobile platform. So I think that all of that together end to end usage of data.
Matt Swanson: Strong reach in CTV.
Matt Swanson: US to reshape publishers and advertisers that want to work with us and we see the resorts and the numbers that you mentioned.
Unknown Executive: That's great.
Matt Swanson: That's great and then.
Sagi Niri: And then, Sagi, there's a lot of, I guess we'd call it noise in the macro right now. Can you just give us kind of an update on what you're seeing in Q1 so far? And then also kind of how you're thinking about the environment in your full year, guys? Yes, so thank you, Matt. I think that, you know, as we said in our call a couple of minutes ago, we are seeing a normalized environment, you know, post the election cycle in the US. We entered 2025 on the same sentiment we ended 2024. As everybody is aware, you know, the macro is a little bit fragile and changing every day, but at this point of time, we are not seeing any change, you know, in something that we didn't anticipate or something that can even affect our 2025 results.
Matt Swanson: There is a lot of I guess, we'd call it noise in the macro right now.
Matt Swanson: Give us kind of an update on what youre seeing in Q1, so far and then also kind of how youre thinking about the environment in your full year guidance.
Matt Swanson: Yes, so thank you math I think that.
Matt Swanson: As we said in our in our call a couple of minutes ago, we are seeing a normalized environment.
Matt Swanson: The election cycle in the U S. We enter 2025 on the same sentiment we ended 2024.
Matt Swanson: As everybody is aware the macro is a little bit project and changing.
Matt Swanson: Every day, but.
Matt Swanson: At this point of time, we are not seeing any change in something that we didn't anticipate or something that can even affect our 2025 results. So for now business as usual we are moving ahead and as you asked also before it's all about execution now going to offense and we're doing the best.
Sagi Niri: So for now, business as usual, we are moving ahead. And as you asked Ofer before, it's all about execution and now going to offense and we are doing the best effort in order to, you know, bring more clients into our ecosystem and go with strategic partnerships. Agreed. Thank you.
Matt Swanson: The best effort in order to.
Matt Swanson: Bring more clients into our ecosystem and go with strategic partnerships.
Speaker Change: Thank you.
Matt Swanson: Thank you.
Speaker Change: Next question comes from the line of Laura Martin with Needham and company. Your line is open.
Laura Martin: Next question comes from the line of Laura Martin with Needham and Company. Your line is open. Good morning, Ofer.
Laura Martin: Good morning, Ofer My first one for you is about data I think you said it grew by 100%.
Ofer Druker: My first one for you is about data. I think you said it grew by And I'm wondering if you could talk more granularly about what that product looks like and whether you foresee the data product growing that rapidly in 25. Hey, Laura. Thank you for the question and good morning. I think, yes, you know, if you're talking like percentage-wise, yes, it grew dramatically, but the numbers over there are quite small right now. It's not that small. When we are talking about data products or like organic data products, we are talking about products as our discovery tool and the ID graph that we are catering and enabling clients to benefit specifically, and they are paying for that service on a usage basis.
Speaker Change: And I'm wondering if you could.
Speaker Change: You could talk more granularly about what that product looks like and whether you foresee data product growing that rapidly and 25 and 26.
Laura Martin: Hey, Laura Thank you for the question.
Laura Martin: I think yes.
Laura Martin: If you are talking like percentage wise, yes, it grew dramatically, but the numbers over there.
Laura Martin: Right.
Laura Martin: Small right now it's not that small.
Laura Martin: When we're talking about that's a product or like.
Laura Martin: Organic that the products, we are talking about product as our discovery tool and IV graph that we are catering and enabling clients to benefit.
Laura Martin: Typically they're paying for that service.
Laura Martin: On a usage basis, so for this product.
Ofer Druker: So, for this product, we are seeing a very increased usage and engagement for clients, and we are managing to license more and more of these solutions into our clients. Ofer, you want to add something?
Laura Martin: We are seeing a very increase.
Laura Martin: You said and engagement for our clients and we are managing to license more and more of these solutions into our clients' offer you want to add there I think I will just to add lower here.
Ofer Druker: Yes, I want just to add, Laura, that usually we prefer not to sell or to offer the data as a standalone product, but to offer it in like a mix of other services, mostly media, and it's hard to say because, as I mentioned also in our last call, about 90% of our campaigns are data-enriched. So, when we are talking about data products, we are talking about when we are basically offering data as a standalone product, which is usually not something that we push to do because we prefer to include it with media, because then, of course, the margins and the activity is bigger for So is this separate from the VITA, CTV, ACR data?
Laura Martin: Really we prefer not to sale to offer these data as a standalone product, but to offer it in the <unk>.
Laura Martin: In like a mix of other services, mostly media and it's also fair to say because as I mentioned also on our last call about 90% of our campaigns.
Laura Martin: So when we are talking about that the products. We are talking about when we are basically offerings out there as a standalone product which is easily.
Laura Martin: It's something that we.
Pushed to do because we prefer to included media.
Laura Martin: Then of course the.
Laura Martin: The margins and the activity is bigger for us.
Laura Martin: So is this separate from the Adidas D TV ACR data.
Laura Martin: Mostly it's about ACL, but in general we are selling and offering data in many of many.
Ofer Druker: Mostly it's about ACR. But in general, we are selling and offering data in many of many types of data to our clients, mostly advertisers when they're building their audiences and targeting or measuring. But when we are talking about this, this data tools, we are talking mostly about the ACR data. Yes.
Laura Martin: And the types of.
Laura Martin: Data to our clients most of the advertisers window building their audiences and targeting of measuring but when we're talking about this.
Laura Martin: The tools, we are talking mostly about the ACO that yes.
Laura Martin: Okay.
Sagi Niri: And then, Sagi, a couple for you. One is, now that you're 100% U.S., what's your thinking about moving from IFRS to U.S. GAAP? And then, secondly, can you remind us both the guidances for 90% programmatic, remind us is the rest, is the other 10% managed service, or what's the other 10% that isn't programmatic? Okay, I'll answer both questions. So first of all, I will start with the second one. So when we are guiding that 90% or around 90% of our $380 million of guided net revenue for 2025, we are meaning that, you know, 90% will go through our full end-to-end ecosystem.
Laura Martin: And then <unk>.
Speaker Change: A couple for you one is now that you're 100% U S. What's your thinking about moving from ISR.
Laura Martin: S. GAAP and then secondly can you remind us.
Laura Martin: Both but the guidance is for 90% programmatic Youre line is the rest is the other 10% managed service or what's the other 10% that isn't programmatic.
Laura Martin: Okay I'll answer both questions. So.
Laura Martin: First of all I will start with the second one so when we are guiding that 90% or around 90% of our $380 million of guided net revenue for 2025.
Laura Martin: Meaning that you know.
Laura Martin: 90% will go through our full end to end ecosystem and the other 10% is what we are calling at legacy performance activities, which now are mainly through <unk>.
Sagi Niri: And the other 10% is what we are calling legacy performance activities, which now are mainly through and related to influencer advertising that we are involved in. So in our eyes, although it's been transacted and executed through programmatic activities, it's not like really going through our end-to-end ecosystem. And can you remind me of the first question? What was the first question? U.S.A. Thank you. We had a very fruitful discussion in our audit committee and board meeting in the last couple of days around that, and we are now looking for all the gaps between IFRS and US GAAP accounting-wise and other related issues.
Laura Martin: Related to influence their advertising that we are involved in so in our eyes, although it's been transacted and executed through programmatic activity, it's not like really going through our end to end ecosystem.
Okay.
Speaker Change: The whole question what was the first question.
Laura Martin: Yes, yes.
Laura Martin: I'm sorry, you asked we had a you know.
Laura Martin: A very.
Laura Martin: Bruce will discuss and in our audit Committee and board meeting in the last couple of days around that and we are now.
Laura Martin: Looking for all the gaps between <unk> and U S and U S GAAP accounting wise and other related issues and I think that we are intending to go to U S GAAP and probably better sooner than later, but we are not guiding yet, but we will go full U S. GAAP.
Sagi Niri: I think that we are intending to go to US GAAP, and probably better sooner than later. We are not guiding yet that we will go fully US GAAP in 2025, but I think that you can think that we will do that. Super helpful. Thanks, guys. Good numbers. Thanks.
Laura Martin: In 2025, but I think that you can you can see that we would do that.
Laura Martin: Okay.
Speaker Change: Super helpful. Thanks, guys.
Laura Martin: Thanks Colby.
Laura Martin: Next question comes from the line of Andrew Mirror.
Andrew Marok: Next question comes from the line of Andrew Marok with Raymond James, your line is open. Hi, thanks for taking my questions. Maybe one on CTV, if I could. So we've obviously seen the direction of travel on the demand side to be to open up to more partners, but interested on the supply side. Typically, publishers on CTV have been working with fewer supply partners, certainly, than desktop display or mobile publishers, but have you seen the direction of travel of that increasing? Have there been any certain catalysts behind that, and how much has that been helpful to your CTV business?
Speaker Change: Raymond James Your line is now open.
Speaker Change: Hi, Thanks for taking my questions, maybe one on CTV, if I could so we've obviously seen the direction of travel on the demand side to be to open up to more partners, but interested on the supply side.
Speaker Change: Typically publishers on CTV had been working with fewer supply partners certainly than desktop display or mobile publishers, but have you seen the direction of travel of that increasing have there been any certain catalysts behind that and how much has that been helpful to your CTV business. Thanks.
Ofer Druker: Thanks. Of course, good morning. Yes, I think that you are right in the point that you mentioned the TTV partners and major partners and publishers are lowering the number of partners that they got in order to sell their media programmatically. Our advantage on that matter is that we have our own demand. So it's not that we are offering just a connection point to the same demand sources like when you have duplication of SSPs that these guys were using in the past. We can basically offer a lot of unique demand that is coming from our system.
Speaker Change: Good morning.
Speaker Change: <unk>.
Speaker Change: Yes, I think that you are right and the point that you mentioned the TPB power boost them.
Speaker Change: Hey, Joe Powerpoints and publishers lowering the number of buses that they got in order to sell their media programmatically.
Speaker Change: Our advantage on that matter is that we have our own demand. So it's not that we are offering just the connection point to the same demand sources like when you have duplication of SSP is that these guys were using in the past we can basically offer a lot of unique demand that is coming from our sales team, which is why that's the reason that we are able to see.
Ofer Druker: Which is why that's the reason that we are able still to grow our publisher base. And I feel that this is a major benefit that the publishers of TTV look at us. And I feel that the trend now is not to rely only on one or two sources of SSP, but to expand it to more people that can bring value, meaning additional demand, unique demand that they cannot get through their old relationships. We see this move in the market and it's helping us to grow our business, helping us to widen our base of publishers and partners, and of course, grow revenues from TTV.
Speaker Change: To grow our publisher base.
Speaker Change: I feel that this is a major benefit the publishers of CTV look at us and I feel that the trend now is not to rely only on one or two sources of <unk>.
Speaker Change: But to expand it to more people that can bring value, meaning additional demands unique demand.
Speaker Change: They cannot get through the the old relationships. So we see this move in the market and it's helping us to grow our business, helping us to widen our base of publishers and partners and of course grow our revenues from Citibank.
Speaker Change: Andrew Andrew.
Andrew Marok: Andrew? Andrew, you're what? He left. Oh, sorry, I was on mute. Thank you. Much appreciated. Thank you.
Speaker Change: Yes.
Speaker Change: Oh, sorry, I was on mute. Thank you much I appreciate it.
Speaker Change: Okay. Thank you.
Speaker Change: And your last question comes from the line of Matt Condon with JP Ann Your line is open.
Matthew Condon: And your last question comes from the line of Matt Condon with JPM. Thank you so much for taking my questions. My first one is just in the new generative AI products, you know, you're focused on Lunch Break 2 So you're asking if we can basically go down the path of the funnel and offer with AI more performance-based?
Matt Condon: Thank you so much for taking my questions. My first one is just on the new generative AI products Youre focused on ease of use and performance. There can you just talk about the opportunity to potentially move down market into the S&P performance territory, which is that a focus or yes. Just can you elaborate on that.
Matt Condon: So you are asking if we can basically go down the path of their final offer with AI more performance based.
Matt Condon: I was just asking just the broadening of the Advertiser base that you can address can you address now smaller more SMB type performance advertisers just given generative AI is now reducing the ease of use of the platform and also increasing the performance.
Unknown Executive: I was more so just asking just the broadening of the Can you address now smaller... Transcription by Transcriptional Services, LLC. © 2013 Transcription Overseen by Transcription Overseen, LLC. All rights reserved. © 2013 Transcription Overseen by Transcription Overseen, LLC.
Ofer Druker: platform, and also increased Yes, I think that AI in general will enable us to, and enabling us already, to simplify the usage of our platforms. And you are right that in so many ways to operate the full platform that after we integrated Amoeba into our platform, it's a very sophisticated platform, but you need to be a professional in order to use it. And we have a lot of professional partners that are using it. But if you're going to a smaller size advertisers and partners, it will be easier for them to do that with the AI tools that we are building right now.
Speaker Change: Yes, I think that.
Matt Condon: Yeah in general.
Matt Condon: <unk> will enable us to an enabling us already to simplify the usage of our platform and.
Matt Condon: Alright booked in so many ways to operate the full platform that we after we integrated that will be into a platform. It's a very sophisticated platform, but you need to be a professional in order to use it and we have a lot of professional partners that are using it but if you are going to a smaller size.
Matt Condon: Advertisers and partners it will be easier for them to do that.
Matt Condon: Also as we are building right now and our advantage also for these guys is that since we are stepping into and then we are.
Ofer Druker: And our advantage also for these clients is that since we are sitting end to end and we can enable them to run different agents of AI across the advertisers and the publisher side, the DSP and the SSP basically, including the data, which is audience segmentation, creating audiences, targeting them, measuring them. So it will open more venues around us. In this stage that we are now, we are introducing this technology and these capabilities to our major partners. But down the road, I think it's, of course, some of our plan is to enhance the size of the audience that we are able to reach.
Matt Condon: Yes.
Matt Condon: Enable we can enable them to run different agents.
Matt Condon: Most definitely across the advertisers and publishers.
Matt Condon: The DSP and SSP, basically, including that which is audience segmentation, creating audiences targeting they're measuring them and so on so it will open more venues.
Matt Condon: In this stage that we are now introducing this technology of this capability to our major partners.
Matt Condon: Down the road I think.
Matt Condon: It's of course, some of our plan is to enhance the size of the audience that we are able to reach and also to increase.
Ofer Druker: And also to increase the question that I thought that you are asking, which is also, I feel, a good question, is that basically it will enable also people to be able to get better results from the media, because they will be able to utilize the data and the targeting and the platform and the optimization in a much more meaningful manner. So I think it will do both. And we feel that we are in front of a very big revolution. We are making a lot of steps now. We are introducing these tools right now to our major partners.
Matt Condon: The question that I thought that you are asking which is also fairly good question is that basically it will enable also people to get to be able to get better results from the media because they will be able to utilize the data and the targeting and the <unk>.
Matt Condon: <unk> optimization will be much more meaningful manner. So I think it will do both.
Speaker Change: And we feel that we are in Franco for Ya.
Speaker Change: Very big evolution, we are making like a lot of steps now we are in.
Speaker Change: Introducing these tools right now to our major powerhouse, but soon we will open it to move.
Unknown Executive: But soon we will open it to more. Great, that's very helpful.
Speaker Change: Great. That's very helpful. And then maybe just a follow up from an earlier question on data licensing revenue can you just talk about the key levers for growth in 2025 is it expanding to new DSP or is it getting more out of the trade desk back adapt.
Ofer Druker: And then maybe just a follow-up from an earlier question just on data licensing revenue. Can you just talk about the key levers for growth in 2025? Is it expanding to new DSPs or is it getting more out of the Trade Desk and SACADAPT? Just anything that you can highlight there would be very helpful. Thanks. Of course, I think that our growth is coming, will come and coming from a few, few trends. One of them is, of course, to win new business and our, as I mentioned before, our new messaging, our Titan messaging, a better go-to-market strategy is helping us to win more business in the market.
Speaker Change: Just anything that you can highlight there would be very helpful. Thanks, guys.
Speaker Change: I think that there.
Speaker Change: Our growth is coming will come and coming from a fuel fuel trends one of them is of course to win new business.
Speaker Change: As I mentioned before our new messaging angle with data and messaging.
Speaker Change: Go to market strategy is helping us to win more business in their markets and I think that's it.
Ofer Druker: And I think that it's a. It's easier also because I think that our offering is basically responding and giving solutions to all the trends that are worrying or challenging our advertisers and publishers. So for them to find, to work with us, it's resolving for them a lot of these issues, and they feel that we can give them a very strong solution to their needs, which of course, it's super important and it's enhanced the growth. The second thing is also to grow our So we have a big base of partners and publishers already. And what we are now able to do is to basically enhance the engagement with our platform.
Speaker Change: Also because I think that our offering is basically.
Speaker Change: Bonding and giving solution to order trends data.
Speaker Change: Flooring or challenging all advertisers and publishers so for them to find to work with us at resolving for them a lot of these issues and they feel that we can give them a very strong solution to their needs, which of course is super important and to enhance the growth. The second thing is also to grow coinbase. So we have a big base.
Partners and publishers already and.
Speaker Change: We are now able to do is to basically enhance the engagement with our platform and so in other ways with basically increasing the revenue splits we are generating per client and partner, which of course is very meaningful because as you know in this type of relationship the trust each.
Ofer Druker: And so in other ways, they're basically increasing the revenues that we are generating per client and per partner, which of course, is very meaningful because as you know, in this type of relationship, the trust, to know each other, to trust each other, to have like working habits is super important. And when you have them, it's easier to grow the revenues across additional platforms and so on. So these are the two major things that we are doing. And we have a lot of runs to blow around, meaning we have, as you can see also in our earnings today that we shared, that we have our own different formats like display, online video, and of course CTV that is fulfilling and it's giving like full solution to our advertisers today.
Speaker Change: Each other to trust each other to have like working it's super important and when you have them, it's easier to grow their revenues across across additional platforms and so on so these are the two.
Speaker Change: Major things that we're doing.
Speaker Change: And we have a lot of.
Speaker Change: A lot of fronts to grow around meaning we have as you can see also in our earnings today, we shared that we have on it.
Speaker Change: Different different formats like display online video and of course, CTV that is fulfilling its giving like full solution to our advertisers.
Unknown Executive: If in the past some of these guys were using us only for video or CTV and now they are expanding to display. If they were like display, they are now expanding to other formats and of course it's very helpful and it's growing our revenues with them in a very meaningful manner. Thank you so much.
Speaker Change: If in the past some of these guys were using us only for video CTV and now they are expanding to display even though if they would like display. They are now expanding to other formats and of course, it's very helpful and is growing our revenues with them.
Speaker Change: Very meaningful manner.
Speaker Change: Thank you so much.
Speaker Change: Okay.
Operator: And that concludes our question and answer session.
Speaker Change: And that.
Speaker Change: <unk> and answer session I will turn the call back over to offer <unk> for closing remarks.
Ofer Druker: I will turn the call back over to Ofer Druker for closing. Thank you. I think that when we look at 2020-2024, so as we wrote in the PR, I think that for us it was back to basic. We worked very hard years before to make acquisitions, to integrate them, to consolidate them, to tighten our message, to rebrand. And 2024 was the year that we felt that things came together and you can see that by our results and the momentum that we created over the year. And we believe that it's just, you know, setting the stage for the years to come that we call the growth years, which will be this year and next year.
Speaker Change: Thank you.
Speaker Change: I think that when we look at 2000 22024, so as we wrote in the PR I think that it's for US It goes back to basics.
Speaker Change: We work very hard news before to make acquisition to integrate them to consolidate them to tighten our message to rebrand and 'twenty 'twenty four was that.
Speaker Change: Since we fell that things came together and you've considered by our results and the momentum that we created over the year and we believe that is just the <unk>.
Setting the stage for the years to come that we call the growth yields which will be this year next year.
Ofer Druker: And for that, we also onboarded additional talent people from the industry, grew and promoted people from our within company.
Speaker Change: We also on boarded additional talents people from the industry grew and promoted people from our company and this is a great opportunity to also say thank you very much for full out to all our employees around the globe. That's worked very hard in 2024 to make these results happen.
Ofer Druker: And this is a great opportunity also to say thank you very much from full out to all our employees around the globe that worked very hard in 2024 to make these results happen. And you can see that it's a teamwork. It's not a one star that created this change. It's a lot of people around the world that work together in order to make the change. And thank you for our clients and partners for the trust and patience to get to this point that we can generate for you amazing results and grow the base of our partnership together going forward.
You can see that it's a team works its not the one that created this change it's a lot of people around the world that work together in order to make the change.
Speaker Change: For our clients and partners for the trust and patience.
Speaker Change: To this point that we can generate for your amazing results and grow.
Speaker Change: The base of our partnership together going forward.
Ofer Druker: I wish us all that 2025 will be a good year. It started now in the last 10 days. There is unrest in the public market, but I hope that it will resolve and it will let us fulfill our potential in this year and going forward. So thank you very much.
Speaker Change: We first of all the.
Speaker Change: The 2025 wouldn't be a good deal.
Speaker Change: The last 10 days.
Speaker Change: Last in the public markets.
Speaker Change: That has been resolved.
Speaker Change: It will let us.
Speaker Change: <unk> three level potentially in D C going forward.
Speaker Change: So thank you very much.
Operator: with this conference call you may now Please wait, the conference will begin shortly.
Speaker Change: Today's conference call you may now disconnect.
Speaker Change: Please wait the conference will begin shortly.
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