Q2 2025 Nexxen International Ltd Earnings Call
Second quarter earnings call at this time participants are in a listen only mode with a question and answer session to follow at the end of the presentation. This call is being recorded and a replay of today's call will be made available on Nexus Investor Relations website, I will now hand the call.
Over to Beth Billy at Kurt Vice President of Investor Relations for introductions and the reading of the Safe Harbor statement. Billy. Please go ahead.
Thank you operator, good morning, everyone and welcome to <unk> second quarter earnings call.
During today's call, we will discuss our financial and operating results for the three and six months ended June 32025, as well as our forward looking guidance.
With us on today's call are <unk>, <unk> Executive officer, and Seguin here, the company's Chief Financial Officer.
This morning, we issued a press release, which you can access on our IR website at investors that next <unk> Dot com.
During today's conference call, we will make forward looking statements.
All statements other than statements of historical fact could be deemed as forward looking.
We advise caution and reliance on forward looking statements.
These statements include without limitation statements and projections regarding our anticipated future financial and operating performance market opportunity growth prospects strategy financial outlook partnerships and anticipated benefits related to those partnerships.
Data benefits related to the company's intended 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.
All forward looking statements are based on information available to us as of the date of this call.
These statements involve known and unknown risks uncertainties and other factors that may cause our actual results to differ materially from those implied by these forward looking statements, including unexpected changes in our business or unexpected changes in macroeconomic or industry conditions.
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.
<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.
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.
We refer you to the company's press release for additional details, including definitions of non <unk> items and reconciliations of <unk> to non <unk> results.
At this time it is my pleasure to introduce Overdrew her CEO of Nexen over please go ahead.
Thanks, Billy in tier two we delivered strong results, but also reflect the growth as data and tech licensing revenue underscoring the strength of our diversified platform offering.
We have continued to execute against our core strategy, making meaningful advancements across CTV data.
Our end to end platform that further position us for long term growth and market share gains.
Typically we renewed and extended our strategic partnership with visa.
<unk> exclusive access to inventory for our customers, while creating significant long term monetization potential for Nixon.
In 2026.
The agreement also extends our exclusive global access to beat Us ACI about strengthening our long term Tvs out the footprint and capabilities accelerating our shift into tech data licensing and reinforcing our position as a leading provider.
Provider.
We have also made important strides on originally.
Our strategy, particularly with the mixes that the platform integrating transformative capabilities into an excellent discovery, which are already enabling customers to better August the full power of our platform.
With strong momentum and ongoing innovation, we are confident in our ability to build on our tech data CTV NII leadership and create impressive value for our customers across the ecosystem.
In Q2, we introduced next era is switched off.
I followed assistance.
Features designed to enhance efficiency and results across planning activation optimization and amortization.
Next AI combines proprietary data and machine learning and generating value to deliver even more powerful cutting edge capabilities.
We are innovating quickly already.
Do you really see it.
We've seen the Nixle DXP and generating power solutions, we see the next data platform, including the next AI discovery assistance.
Since launch next day, it's been adopted by over 100 combined users, including some of our largest agency in bread customers early.
<unk> signaling productivity gains improve outcomes and more time for high value strategic initiatives like winning new business.
By streamlining inside and automate the reporting.
Next is delivery what customers need most faster access to external data and better returns.
Accelerating the benefits of our integrated Tech and Douglas fir.
We expect it will continue driving even stronger digital.
Engagement and broader adoption over time.
We plan to roll out.
Driven SSD functionality and broader platform integration later in 2025, and 2026, which we expect will further enhance usability performance and excellent overall value proposition.
Okay.
<unk>.
Now, let's focus on both driving customer safety assessment, the fuel performance in revenue and internal efficiency.
Federated development cycle and support long term margin expansion.
We believe these investments will further support sustained increasingly profitable growth in the core.
<unk> heads.
Our AI opportunity is massive and with unique tech and data infrastructure <unk> is well positioned to continue delivering smarter faster AI powered solution for both sides of the industry.
Our ability to review and expand our unique strategic partnership with visa is an important achievement.
<unk> strengthened our leadership and growth position within the global CPP ecosystem.
Through the agreements, we extended our global API exclusivity and secure exclusive and monetization rights on <unk> in North America through at least the end of 2029.
This enabled us to deliver premium CTV inventory unavailable anywhere else while the deal.
Enforcing our position is D. That's a platform agnostic.
As one of the only platform with exclusive global television data expert outside the ecosystem this way.
Strengthen our open holistic approach.
Amplify our ADESA addresses.
Since 2022, we have laid the foundation for long term growth with visa establishing leadership positions in key international markets and next thing building the infrastructure to digest and integrate visa ACR data into the next one that's a platform.
This update into agreement.
Ashish.
The foundation to scaling commercial value during a time of rapid global expansion for visa.
For example through its recent policy shifts investor Visa was significantly increased <unk> footprint enhancing next series of additional growth opportunities.
We will now focus on scaling North American revenue, expanding international amortization growing extreme as inventory and accelerating desktop syndication and measurement partnership.
To support this effort, we are investing an additional $35 million EBITDA to accelerated the north Americas 50, the expansion and unlock increased growth across the world's largest advertising market.
We expect this will drive greater scale and monetize the AD inventory in AC the long sales volume of all exclusive rights and overall investments.
We renewed and expanded processes extend our growth run rate and we believe unlock great potential to bring tremendous value to both <unk> and the industry.
Additionally, we have continued attractive and onboarding top tier commercial leaders from major industry players across the U S and international markets. These silos alongside other recent additions are gaining traction.
And we believe will better position us for.
For both new and long term revenue growth.
We will continue to invest in bringing world class talents through nexen, particularly within our commercial and leadership teams to support our expanding global footprint.
We are also continue building momentum and visibility with Wall Street following a move to a single U S ordinary share listing.
It means improving our structure analyst coverage has grown 80%.
Investor interest is rising and we have been added to the Russell 3000 index.
Our first U S investor they made through strong turnout viewership and response from analysts investors and banking partners and we remain committed to active engagements across the capital markets.
In Q2, we added one other than H, you actively spending first time advertiser customers, including 43 enterprise self service customers and five independent agencies, leveraging our self service solution alongside 86, new supply partners.
Our conviction in our strategy has never been stronger.
Standard partnership with industry leaders like Vida Ni.
Celebrate our CTV growth opportunity.
Enforce our strategic role within the ecosystem.
Our end to end model gives us an edge and we will continue investing in Nancy and expanding platform capability to fuel further growth and sharpen our differentiation.
We are also closely monitoring the Google.
Antitrust case.
Depending on outcomes and remedies it could be a catalyst for next and other open internet speeds to achieve higher win rates and increased share gain potential.
While the journey to category leadership takes time Nexsan is well positioned for success.
With unmatched and growing capabilities and advantages.
We are energized by the dual facilities.
And remain focused on innovating and executing to deliver long term value to our customers partners and shareholders.
With that.
I'd like to turn the call over to Peggy.
Thank you all fir in Q2, we generated contribution ex Tac of $87 $8 million, a Q2 record and a 6% increase year over year.
Programmatic revenue also reached a Q2 record $85 million, reflecting an 8% increase compared to Q2 2024.
Growth was driven by strength in backup product health service Tech licensing and desktop revenue alongside increases across our health travel education and automotive verticals.
In contrast, we experienced an approximately $1 $7 million year over year decline in contribution ex tax from our non programmatic business line and decreasing display mobile and DNP revenue and reduced spending within our retail and government verticals.
CTV revenue grew 1% year over year to $28 4 million, marking a Q2 record despite the advertising environment being impacted by macroeconomic uncertainty largely due to tariffs, which constrained <unk> from <unk> partners.
That said, we remain confident in our long term CTG revenue growth opportunity, given our robust integrated CTV tech and data capabilities and expanding CTV partnerships.
Outside of CTV desktop revenue increased 3% year over year in Q2 mobile revenue declined 9% and overall video revenue reflected 68% of programmatic revenue compared to 74% in Q2 2024.
Elsewhere in Q2 self service contribution ex Tac grew 4% year over year and contribution ex Tac from data products increased 76%.
On the opposite side contribution ex Tac from Pmt's and display declined 6% and 4% year over year, respectively.
We exceeded wall Street's adjusted EBITDA expectation generating $29 $9 million in Q2 at 1% increase from Q2 2024.
This growth was driven by higher contribution ex Tac and strong cost discipline.
As a result, our adjusted EBITDA margin increased to 34% of contribution ex Tac from 32% in Q2 2024.
We remain confident in our ability to expand our margins over time, particularly as we begin to increasingly realized benefits related to our AI initiatives later, this year and into 2026 and beyond.
In Q2, we generated $17 $4 million in net cash from operating activities compared to $29 million in Q2 2024.
As of June 30, we had $131 $5 million in cash and cash equivalents, no long term debt and $50 million Undrawn and remaining on our renewed and extended revolving credit facility.
We also reported non FRS diluted earnings per share of 2009 in Q2 2025 compared to <unk> 18 in Q2 2024 on a post reverse split basis.
In Q2, we repurchased roughly $3 9 million ordinary shares investing approximately $39 1 million.
Through March 2022 through the end of Q2, 2025, we repurchased roughly 34, 3% of our outstanding shares investing approximately $229 $3 million and as of July 31st hedge roughly $7 $2 million remaining on our car.
Current share repurchase authorization.
On capital allocation, our board is actively evaluating the launch of a new buyback program. Following completion of our current program and as announced in Q3, we will be increasing our investment in visa.
Additionally, we are exploring targeted M&A opportunities, which we expect would be smaller in size minimum ob that align with our resource to expand data enhanced AI capabilities accelerate revenue in our core business lines or entering new high growth markets.
With that I'll turn to our outlook, we are reaffirming our prior full year 2025 guidance. We continue to anticipate contribution ex Tac of approximately $380 million adjusted EBITDA of approximately $125 million and for programmatic revenue to represent roughly 90%.
<unk> of our full year 2025 revenue.
Additionally, we continue to expect year over year growth in both CTV and that's our licensing revenue in 2025.
Well, we are closely monitoring ongoing market uncertainty related to tariffs evolving trade policies and geopolitical tension trends observed so far in Q3 support our confidence in meeting our full year guidance.
This confidence is based on the assumption that market conditions do not significantly worsen and that there are no material adverse changes in industry, the nymex or customer spending behavior.
Our diversified revenue base deepening self service enterprise relationships and continued expansion into tech and data licensing support contribution ex Tac resiliency.
Our end to end strategy also continues to enable strong growth opportunities.
Profitability and cash flow effectively positioned us to manage near term market fluctuations, while investing in high potential areas that position us for long term value creation and market share gains.
We're also beginning to realize benefits from our AI investments.
<unk> seen strong accelerating adoption already delivering productivity and performance gains for major customers.
As a further integrates and scale cross Nexsan, we believe it will become a meaningful driver of operational efficiency.
Higher adjusted EBITDA and margin expansion, especially in 2026 and beyond and we'll continue investing to generate increasing returns over time.
Beginning in 2026, we anticipate generating increased contribution ex Tac related to our expanded Vida partnership is nexsan monetization of visa CTV inventory and ACR data is expected to ramp in North America and across other key international markets.
As also mentioned we are also continuing to invest in service strengthening our sales and media teams to more fully capitalize on the growth opportunities ahead, including those enabled by our partnership with visa.
Despite the complex environment, we've executed well through the first half of the year and are focused on both delivering against our guidance and strengthening the business for accelerated growth and leadership beyond 2025.
Our platform advantages that our differentiation AI momentum expanding global partnerships and ongoing investments in innovation provides a robust foundation for long term growth and margin expansion.
We also believe our opportunity in data in CTV remains vast and in early innings.
As always.
Thank you to our shareholders employees and partners for your continued support.
Operator, we'll now take questions.
At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad and we ask you. Please limit your question to one and a follow up to help US cover all your constraints. Thank you we will pause for just a moment to compile the Q&A.
<unk> roster.
Your first question comes from the line of Matt Swanson of RBC capital markets. Please go ahead.
Yes. Thank you guys. So much for taking my question.
First it was great to hear more about the next AI product.
DSP assistant that we talked about at the Investor day.
Could you talk a little bit more I think one of the highlights for the Investor day was kind of going to be the power. Once you get the all three assistance.
Integrated stack of kind of like the end state of next AI and just kind of how you can lean into that full stack differentiation.
Of course, thank you Matt.
So as we indicated at the Investor Day and also in this report we also started to.
Deliver this.
Next AI product enhancement to our clients more than 100 already using it and we are really getting great feedback from them.
Of course now moving to the next.
Level of or the next step for us in the next AI, which is also adding these capabilities into the SSP media side.
In order to have like a full cycle and then of course, the nature or the <unk>.
The next step will be to connect all of them with another mixed elements agents that will connect all the thoughts that will enable our agencies and clients to <unk>.
Utilized older order strategies across the board from the DSP and.
And SSP, which I think will happen probably at the end of this year and early next year.
So we are going now by the plan, we released the first products that are on that.
Demand side, the darker side, we already deliver them to our clients, we're getting great feedback and we are.
Enhancing and getting ready for the next step which will be the SSP side.
Thank you and then.
This is another quarter, where we saw the adjusted EBITDA upside greater than the revenue upside.
You just kind of talk about where you're finding the efficiencies and cost savings that you continue to.
Deliberate additional adjusted EBITDA beyond the revenue outperformance.
Sure I think that you know.
We are we have like a.
Operational leverage and as long as we are scaling the business and building it forward.
We will see more and more efficiencies going forward I think that we are seeing like very very initial internal efficiencies coming from our next AI internal tool.
And the utilization of that.
Going forward you know it.
It really depends on the level of on boarding and an investment that we are going to put in different initiative I think that we reaffirm our guidance at around $125 million adjusted EBITDA. It looks like the trend that we will bypass that but we're trying to be cautious and we may invest more in the <unk>.
In order to accelerate the growth in 2026.
So I think we are in the right track around that and as we said in the past our adjusted EBITDA margin will grow.
Year over year.
We are moving forward.
Thank you.
Your next question comes from the line of Xyrem <unk> of Needham. Please go ahead.
Good morning.
So my first question is on connected TV.
<unk> connected television revenue grew 1% year over year in the quarter, which is pretty slow and the slowest in AD Tech for this quarter I would've thought that your exclusive deal with Theta would've given you sort of a competitive advantage in connected TV.
So my question is why do you think connected TV revenues are growing so slowly and is that is the purpose of spending another $35 million of D. On data primarily to just drive measurement or is it somehow supposed to be helping connected television revenue growth, but it just didnt happen to have that happen.
In the second quarter.
Thank you Laura and Hello.
First of all regarding the ICT revenues.
Regarding your question about the city of your revenues, what we witnessed from the beginning of the year is like a growth it's happening in the industry from time to time that youll see trends.
And wave of new media, the discounting game like Big Big blocks of media that is coming in and there is not admission demand that will cover this growth in media. So it's affecting of course, the cpm's because people are willing to take lower CPM in order to.
<unk> and <unk>.
Monetize that media, so we witnessed that from the beginning of the year.
So the fact that we basically.
<unk> made a small a small uplift for last quarter in Q2 last year that was an amazing one for US I think it's a good indication that as we grow the number of advertisers and basically partners that are utilizing our technology and our media on the CTV front and we believe that it will it's a good indication for.
Growth in the future.
The point about Vida.
As we mentioned in the PR.
We are a long term players so when we invested in data in 2022.
By the way Dan like one of the top five.
TV delivery manufactures and delivery delivering Tvs in the market now that number too.
And they keep.
Keep growing and adding more capabilities to their so therefore to the ltvs in order to get to be the leaders in the.
Doing their best already starting into international and from next year, They will move their attention and growth also into the U S.
And it's a long term so the fact that what we see now that we are already starting to utilized they are.
Lifting that we've done on the ACO that ingesting and youth usage and licensing that thoughtful activation and measurement to a cell phone of course into clients.
Already kicking in and working for Us and we believe that in the second half of this year.
To grow and next year it will grow a lot and we are happy for the investments and we've always said that first of all we need to build the infrastructure build to build the offering.
Pushing it to the market, we see very good response from clients and partners.
We are accelerating and growing invested another another amount of money in order to grow also the North America.
Penetration of leader in order to get like a better reach in that market which of course.
It's super important to us and to be though I hope.
I answered your questions.
Okay and then my second question is on.
I would love your general thinking offer on this issue that investors are having with the fact that Google search is no longer sending as much traffic into the open internet because it's just answering questions and so there is some fear that the open internet is going to lose you.
Users and viewers and AD units over the next five years, which puts the open internet companies like AD Tech companies at a disadvantage compared to walled gardens. So could you talk about what youre seeing.
In terms of open Internet demand and how you feel about the long term prospects for open Internet companies.
Of course.
So.
First of all I think that AI is conductor is making a change in the industry and the behavior of clients, including myself.
If you want to.
Gather information.
I will search for something you can use the old Chesapeake team.
Our effective manner with co pilot that you have on your computer.
So I agree with the fact that and I saw the researchers that the number of the number of visitors into pages web pages wind down.
Basically the number of clicks per searches according to the information that I saw.
Went down so if people are also even conducting a search.
Clicking on the results because they are getting like a small summary of AI into their searching into the search and they use that in order to get the answer so I think that it's there I think that there are two.
Basically pets that are less influence or not influenced right now, which is CPG and mobile in app.
We of course, putting a lot of emphasize on CDP for long time and this is an element that we believe that will keep growing that's also by the way going to connect it to your first question about Vida. This is why we are investing and building the relationship with one of the biggest Oems in the market and we.
I believe that we are one of the only companies that such a relationship with an OEM in operating system like we do that is super important in order to grow.
<unk> annual revenues coming from CTV. The second bad debt is less influence is mobile in App that I mentioned.
And we are we started to shift gears into that it's like a few months ago and we are now announcing it.
Big manner, because we believe that this is an area that will keep growing and to get like a.
The support of their market the advertisers in order to grow this field and we are also in a bigger way in a bigger window.
Thank you.
Thank you Laura.
Your next question comes from the line of annual Merit of Raymond James. Please go ahead.
Thank you for taking my questions.
This ties into your answer from the CTV question earlier, but just wanted to ask about the confidence that you guys have in the second half of the year given your guidance on contribution ex Tac you've got growth assumptions for I think it's about 14% year over year in the second half versus about seven in the first half, but the comps from last year also get several.
Points tougher as well so if you could just talk about some of the things you're seeing that give you.
Confidence to back your full year revenue guidance.
Okay. Thank you Andrew for your question.
Yes.
We see.
First of all we really like them.
In the last two years, we were working very hard in order to combine all the companies that are the company that we acquired Admob and all these different gives US units. We are have a lot of top managers in order to add talent at knowledge and capabilities into their mix.
And I feel that it's a.
It's starting to kick in the second thing is usually we.
So as the level of visibility to the market in order to understand like booking and trends and discussions with companies and we feel secure that in this stage weekend basically reached our targets. We feel we believe that it's it's variable of course.
And we think that as we are doing almost on a weekly basis, we are checking ourselves and making assurance that we are able to touch the targets. The investment that we've done in the last few years in what I just mentioned to also to Laura about that.
That's the technology that is related to that like discovery.
The management platform and so on are helping us to build relationship with more and more companies and to also generate revenues that are related to that technology, and I think that both debt and.
The irregular activity that we're doing around VDI can get us to our targets and we feel at this point of time, we feel secure that we can basically it was these targets.
But the way I agree with that.
Yes, Andrew just to add to what 4% I think.
<unk> mentioned that we are growing now heavily on.
On mobile apps monetization for.
For our advertisers. So we are in the process of signing capital a big partnership with.
In up an SDK networks, which will affect our.
<unk> ability to grow in the second half.
Okay. Thank you for the detail there and then maybe one more if I could you kind of been seeing recently that M&A was a lower priority for capital allocation, but the language. This quarter kind of suggest that you could be a bit more open to considering M&A than in the past. So is there anything specific changing there or is it the case that as you get more interactions with things like the next.
<unk> data platform and next AI, the new adjacencies or opportunities are popping up thanks.
Thank you Andrew.
First of all in order to make an acquisition or an M&A you need to be of course.
Clear.
About strategy and about <unk>.
The ability to already adjust.
And digest the acquisition that you've done before and we feel that we did it. So I think that we are ready to look for an opportunity now.
I think that we can look now if opportunity now to make an acquisition that will add to us not technology not every technology, we have the technology that we need but if we can if we can make an acquisition of additional.
Client base or coverage that we don't have in this market it can be interesting.
And I feel that we feel that there is opportunities in the market that can basically interest be interesting for us. So we are checking it and we need to remember that we conducted the buyback already in the last few years of close to quarter of a billion dollars. So we are looking also for use of capital that will not be just.
I back, but also making gen.
Generating potential to growth through acquisition that we know and we did it in the past few times. So we are trying to divest and to grow organically, but also through smart acquisitions that we can basically conduct.
Thank you.
Thank you.
Your next question comes from the line of Jason <unk> of Craig Hallum. Please go ahead.
Great. Thank you guys for taking my questions.
Just wanted to ask for more detail on what you guys seeing the opportunity with Google's anti trust laws likely behavioral remedies being placed on then and if you think theres an opportunity to perhaps invest more in kind of that open web SSP opportunity as some market shares likely vacated in.
Theres, probably more more room for you guys to grab share there.
Alright.
I think that Hey, Jason.
Thanks for the question I think there's a lot of assumption in estimation around when and what will be exactly the remedies around the.
Jay.
Claim around Google.
Think that there is no there.
No way that we will not gain from that to what extent I don't think that anyone can really estimate and understand.
Everybody now understand that probably in the open internet there will be that nexsan and other players didn't even.
Got the chance in order to beat them and there were media inventory pockets that nobody other than Google got the chance to win so the minute the court will decide about the behavioral.
Claimed and <unk> of course, we will gain from debt again, I can't really first of all it's not like embedded into our <unk>.
Plans estimation forecast and guidance of course, it will be an extra and thats good.
And second we are on an ongoing basis investing a lot into our SSP both on the infrastructure technology.
<unk> capabilities and of course on boarding new publishers are new.
Inventory.
We will keep doing that and hopefully in a winter the claim will be over we will gain much more allocation of inventory that now we are not.
Entitled or not getting into.
Hope that answer your question yes.
We need to remember and I have one more.
The additional point is that timeline so.
As like you said, we know that.
Probably something improving our terms and improving our chance to win more business will happen to tell you that we know when exactly it will happen we can plan on that.
It's hard to say and we believe that you need to be.
It's your best in order to win more market share and Thats, what we are trying to do.
Wonderful Thank you guys.
Thank you.
Your next question comes from the line of Barton Crockett of Rosenblatt. Please go ahead.
Okay My question.
Let me see one of the things that I just wanted to ask you guys about was.
On the SSP side of the business or spin.
A little bit of noise, I think injected into the conversation by one of the peers.
<unk> CAD.
Adjusted that there was.
Some type of transition.
The major DSP kind of approach.
That was meaningfully affecting them, causing a big step down in kind of revenue in the third quarter versus the second.
And you talked about investing in your SSP business I was just wondering if youre seeing any impacts.
From that change that was impacting one of your peers and just in general how you feel about the backdrop for that business right now.
Thank you for your question, but I think that the.
First of all we don't witnessed this phenomena as was indicated by yield right now.
By our peers.
Again, it may be they they see something that we don't but we don't feel it but you have to understand that.
Differently.
In many ways, what I mean by that while most of the ssds.
Relying on what we call the open market or <unk>.
The relationship that they are building with clients in order to drive revenues. We are also on DSP <unk>.
<unk> solutions. So we are.
Very talented sales team on the ground in the U S and in other places that are basically pitching clients and bringing their campaigns in so we are dependent on our success on that and the second thing is our enterprise solution, which is very robust and growing a successful, but basically we offer to brands.
Agencies, mostly independent agencies to adopt to.
To adopt our technology and our solution and we.
Incentivize them and providing them.
Advantages is now directed directly also part of their spend to us. So we are less less.
Affected by one DSP over another because we are basically having our own operation that bring the demand into the platform and we are very diversified.
Around as you can see CTV display mobile and did so.
Less affected than we lost.
Was exposed to the to the element that you mentioned in your question.
Okay, and then if I could just follow up a little bit on the earlier discussion about the second half outlook. So you guys have reiterated the guidance siding in part what you've been seeing so far in the third quarter in the press release, you said that.
The second quarter <unk> growth rate was I think 6%.
Obviously the back half has to accelerate are you seeing acceleration in the third quarter, specifically is that what you're referring to when you say you're reiterating guidance based on what you've seen in the third quarter. So far.
Okay.
So usually the of course, the fourth quarter is strong.
We see the growth coming usually the acceleration is coming in the in the end of the summer and until the end of the EU right now we see like as I mentioned before we see like a regular trends that we see every year in general in the last two years I am not saying more than that because the last few years.
Trends in the past.
We have a strong.
Ability to to estimate that we are on the right track. According to the behavior that we see now and according to the to the trends that we recognized in the market as indicated just now we are not just dependent on one DSP and other DSP. We also have I'll answer his team and our enterprise solution and.
All the indications that we are getting we are.
We believe that we are in their lifecycle.
Okay, all right well thank you for that.
Thank you.
Yes.
Again as a reminder, if you would like to ask a question press star one on your telephone keypad.
Our next question comes from the line of Matt Condon of citizens. Please go ahead.
Thank you so much for taking my questions. My first one is just on the exclusive premium inventory that youre getting with the expanded partnership with Davita can you just talk about what size that opportunity could potentially be for you guys and how should we think about that ramping in 2026 and then my second question is just on platts.
Data licensing it seems like that's going really well for you guys can you just remind us how big an opportunity you guys believed that that can be thank you. So much.
Okay.
First on your first question.
Types of media that we are getting from that we are supposed to get from Vida and of course the.
The rational expectation one of them is around in stream because of the Didi China's that are basically running on the on the Tvs that bj's is managing all integrated into <unk>.
And the second one is what we called on platform adds the screenings that this debt.
There is all sitting in the on the operating system.
And enabling new enabling us basically in visa to show ads to the slides.
We are talking here about the massive amount of impressions and opportunities that will spread over the next couple of years I don't want to touch on our numbers because I don't want to mislead you, but I think that in the early next week. When we will early next year, when we'll get more visibility to the to the volume shortfall.
Are you able to give like.
Hi, Barbara privilege, but.
But in general we see the growth it's millions of Tvs that are adding up.
Massive amounts of impressions and opportunities to show ads.
On your second question regarding <unk>.
Data and technology.
And we are starting to see this year like the first fruits of it.
Our work in the last few years, we invested a lot of innovation in our resources in order to build technologies, we just wanted to say it.
Award for a cookie less data.
Platform the discovery tool.
And it shows that basically we are we believe that all the time, we manage it that we are saying all the time that the major differentiation between companies is related to two data really.
The fact that we are able to show and utilize that.
DSP and SSP, because giving us a major advantage.
And the fact that we own a lot of unique and exclusive that that is helping us to be.
More interesting for clients who looks for.
Activation, meaning targeting is building audiences and measurements and.
We have both we have the technology that we can license to people in order to create.
Stronger bonds and partnership and we have the data that we can license sometimes we can license just about that sometimes we can license just.
And that's what we are doing and I say that is.
We just started this year, but I feel that it can be massive in years to come for two elements. One of them is to get license fees for the solutions and the other one is equal in order to encourage more cooperation and diverting expense to basically to our SSP and our platform.
I believe that it's it's.
Meaningful and we.
We worked very hard because of that in order to build it up and Gaslog the day to day, but it's also enabling us to be like a profit center.
Several settings.
Platform and also encouraging the other people to work with us closely in order to enjoy from these capabilities.
Thank you.
Thank you.
Does that and so I can day session and we appreciate your participation.
I'll now turn the call back over to <unk>, Chief Executive Officer for closing remarks. Please go ahead.
Thank you.
So first of all thank you all all of you I think that the.
Yeah.
We got into a point that we are able to basically to do two things first of all as we mentioned also in the in the earnings we feel that we are basically validates our strategy over the last few years, we see other companies follow the track that we took in order to build an end to end solution.
Just two.
And there we started that in 2019, we said that basically the deadline between SSP and TSP will get cleared and the center will be it will be one platform that can use that term.
Kosmos can use and thats why we build our platform in the way we built it and we added the data platform above that we feel that this is the time.
We are validating our capabilities and our strategy, we feel very secure about it and the second thing is volatile.
<unk> and other people ask us about.
Is the fact that over the years, we invested a lot of money and resources of.
Of course, the tension in order to build the platforms the technology platforms and built the relationship with the Oems and the operating system of the CTV in order to build the capabilities that can enhance our technology and strategy, but also can become a profit center by itself.
Sensing technology and licensing that that and we feel that we all have the right track I want to take also caused allowing for all our shareholders stakeholders employees that are working night and day in order to make it happen. So thank you very much.
Ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.