NYSE:CTV Innovid Q3 2023 Earnings Report $3.14 0.00 (0.00%) As of 02/21/2025 Earnings HistoryForecast Innovid EPS ResultsActual EPS-$0.02Consensus EPS -$0.01Beat/MissMissed by -$0.01One Year Ago EPSN/AInnovid Revenue ResultsActual Revenue$36.23 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/AInnovid Announcement DetailsQuarterQ3 2023Date11/8/2023TimeN/AConference Call DateWednesday, November 8, 2023Conference Call Time8:30AM ETUpcoming EarningsInnovid's Q1 2025 earnings is scheduled for Tuesday, June 10, 2025Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Innovid Q3 2023 Earnings Call TranscriptProvided by QuartrNovember 8, 2023 ShareLink copied to clipboard.There are 8 speakers on the call. Operator00:00:00Greetings, and welcome to Innovid Q3 2023 Earnings Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Trulia Johnson? Operator00:00:28Thank you. Ms. Johnson, you may begin. Speaker 100:00:33Thank you, operator. So pertain to this call. These forward looking statements may include, without limitation, predictions, expectations, targets or estimates regarding our Financial performance, business plans and objectives, future events and developments. Changes in our business, competitive landscape, technological or regulatory environment and other Factors could cause actual results to differ materially from those expressed by the forward looking statements made today. Our historical results are not necessarily indicative of future performance, and as such, We can give no assurance as to the accuracy of our forward looking statements and assume no obligation to update them, except as required by law. Speaker 100:01:20In addition, today's call will include Non GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin and free cash flow. We use these non GAAP measures in managing the business and believe they provide useful information for our investors. These measures should be considered in addition to and not as a substitute for our GAAP results. Reconciliations of the non GAAP measures to their corresponding GAAP measures, where appropriate, can be found in the earnings release available on our website and in our filings with the Hosting today's call are Zvek Nadir, Innovid's Co Founder and CEO as well as Anthony Collini, Innovid's CFO, both of whom will participate And now, I'll turn the call over to Zika to begin. Zika, go ahead. Speaker 200:02:04Thanks, Brinley, and thank you all for joining the call today. Before I begin, I would like to thank our teams around the world for their hard work. We reported an excellent quarter and are on track to close out a great year. As many of you know, 1 of our development teams is located in Israel and would like to give a special thanks to them for continuing to deliver on track despite the heartbreaking situation in the region. I will start our call with our Q3 results and provide some recent business updates and highlights. Speaker 200:02:37I will then turn it over to our newly appointed Chief Financial Officer, Anthony Calini, who will provide further details on our Q3 performance and share updated guidance, We are well positioned for continued execution in the Q4 to deliver a solid full year 2023. As a result, we are raising our full year revenue and adjusted EBITDA guidance and now expect adjusted EBITDA margins of at least 12% compared to 10% prior. This is the 3rd consecutive quarter of outperforming our guidance and I'm proud of the team's ability to execute As we continue to improve financial metrics on all fronts, we remain committed to expanding our margins and positioning ourselves for accelerated growth Looking at the quarter, our Q3 revenue grew 5% year over year and importantly, we more than doubled our adjusted EBITDA to $6,500,000 compared to last Q3. This follows a strong Q2 in which our adjusted EBITDA margin grew from negative 5% in Q2 of 2022 to 13% last quarter. Additionally, as our operation profitability increased, We generated $4,100,000 in positive free cash flow this quarter. Speaker 200:04:07Our improving bottom line results Over the last few quarters demonstrate that our products are profitable at their core. We have a business model where we generate margin expansion even as we continue to invest in exciting new and innovative technologies. We have a strong competitive mode and are Capitalizing on our inevitable transformation of the market as more and more viewers watch television through CTV. We continue to see more streaming platforms implementing ad supported offerings. Recently, Amazon Prime Video announced It will join the overall ad supported CTV trend and will introduce ads into Prime Video next year. Speaker 200:04:47This creates huge value for the industry, our partners And Innovate. There's also been a rapid shift in TV viewership. This quarter, it was widely reported That linear TV viewership fell below 50% in the U. S. For the first time, which is a major milestone. Speaker 200:05:05Even in a world where ad budgets continue to be impacted by the macro environment, we expect that advertising dollars will meaningfully shift To align with eyeballs and time spent on CTV platforms, InnoBeat CTV revenue from ad serving and personalization grew 9% over last year, Position us to benefit once ad budgets normalize and we can capitalize on this massive opportunity as more impressions transition to CTV. Another growth driver Innovate XP, our measurement offering grew 8% as compared to last year, representing 23% of total revenue in the 3rd quarter. We are pleased with the ramp up in measurement as we continue to cross sell and extend usage. Growth this quarter was also fueled by significant new customer wins including Revlon, Fanatics, Box Health and On Running. In addition, existing large publisher partners such as NBCUniversal have Turning to our platform. Speaker 200:06:18We continue to invest in new functionality to power the future of TV and how brands can reach consumers In new and powerful ways using the latest breakthroughs in AI technology. Innovate is a data rich business that generates an unparalleled CTV data set. This dataset is the optimal foundation for sophisticated AI tools that can deliver exceptional value to our clients. I'm excited to announce that we have implemented leading generative AI engines into our platform. Using these AI engines, Our clients will be able to generate images, videos, voiceover and ad copy based on the first and third party data feeds. Speaker 200:07:00Those never seen before unique creative ads are then streamed, measured and optimized by Innovate platform based on customer set strategies. We have also implemented a natural language query engine into our platform that will allow our clients to gain valuable information and insights about the CTV campaigns via a conversation like interface. Now, I would like to share with you a few words regarding our 2024 Product strategy. Innovate's ability to apply AI algorithms to our ad server data Uniquely positions us to optimize CTV ad investments. In October, we launched instant optimization, A machine learning solution that empowers converged TV advertisers to immediately improve ad performance, Our instant optimization solution goes beyond measurement by intelligently selecting the most impactful creatives to serve at the delivery times. Speaker 200:08:00We see considerable opportunity to optimize the CTV market to drive outcomes for lower investments Using our proprietary data and technology, we are excited about the momentum we've seen over the last few quarters with increasing revenues, Expanding adjusted EBITDA margins and improved positive free cash flow. We continue to roll out the valuable product enhancements, Sign new clients and expand our existing partnerships. Although the market has not fully rebounded and we are experiencing different spend levels across our verticals, we are encouraged by the continued shift in viewership from linear to CTV and believe we are well positioned for growth. Once the market normalizes, we expect higher future growth rates and higher profitability margins. As we've demonstrated over the last few quarters, we remain committed to operational execution and expanding margins. Speaker 200:08:58We plan to share more about our excitement around 2024, including our product innovation and pipeline in which CTV performance optimization It's the main theme at our upcoming Investor Day on November 30 in New York City. Before I turn the call over to Anthony Calini, our new Chief Financial Officer, I want to thank Tanya for all her contributions to Innovate over the last 11 years. Tanya has been a key pillar in our success to date and has built a strong finance team during her tenure. Tanya, I wish you all the best in your future endeavors. I am excited to welcome Tony to his first Innovate earnings call as our new Chief Financial Officer. Speaker 200:09:42Tony has over 20 years of financial experience at leading private and public technology companies. He possesses deep experience in helping growth companies Scale in a sustainable way and bring extensive SaaS and enterprise software experience to our team. Tony, welcome to Innovid. Speaker 300:10:03Thank you for the warm welcome, Zwika, and good morning, everyone. I'm incredibly excited to join Innovid and be part of this experienced and passionate team. It's only been a few weeks, but the opportunity here is clearly apparent to me. The combination of a growing business, strong secular trends in CTV migration, a leading platform, world class customers and a leverageable operating model are all powerful attributes that contribute to creating sustainable long term value. As you just heard from Zika, our dedication to driving profitable growth is once again evident in our results. Speaker 300:10:38We beat the top end of the revenue guidance range by 3.5% and delivered an adjusted EBITDA margin of 18%, the 2nd straight quarter of EBITDA expansion. Now let me dig a little more into the numbers. Q3 revenue grew 5% year over year to $36,200,000 If we break that down further, ad serving and personalization revenues were up 4% year over year, reflecting the continued pressure on ad spend in the broader market. As a reminder, Innovent's ad serving and personalization revenue closely correlates with ad impression volumes served through our platform. Within this category, CTV revenue, which comes from ad serving and personalization, increased 9% as more impressions continue to transition to Connected TV. Speaker 300:11:28Measurement revenue grew 8% as compared to last Q3 as we continue to build out our products to take full advantage of the valuable data set generated from the ad serving side of the business. As a percentage of revenue in Q3, ad serving and personalization made up 77%, while measurement accounted for 23%. A few more comments on the CTV activity this quarter. Q3 CTV revenue, excluding measurement, grew 9% over last year And CTV video impression volume grew 7%. Additionally, we reached another high point this quarter with 55% of all video impressions coming in via CTV. Speaker 300:12:12Mobile volume grew by 8% and represented 35% of all video impressions, while desktop volume decreased by 12% and reflected 10% of all video impressions. Both mobile and desktop have been inconsistent in the first 3 quarters of 2023, while CTV has continued gaining share of total video impressions and demonstrated constant growth even against the backdrop of the uncertainty in the market. Revenue less cost of revenue calculated out to 77% of revenue, improving from 75% in Q3 last year. As the business scales, our margins continue to improve, reflecting the operating leverage embedded in our business model. Now moving on to expenses. Speaker 300:12:59We're pleased to report that we are continuing to see the impact of efficiency efforts and the integration of the TVSquared acquisition, As Q3 total operating expenses, excluding depreciation, amortization and impairment, totaled $35,800,000 a decrease of 7% from 38,600,000 last year. Employee count at quarter end was 460, a 14% decrease compared to the previous year and resulted in a 16% reduction in compensation expenses excluding stock based comp. We remain committed to managing our cost base while protecting investments in high growth areas to drive improved or a per share loss of $0.02 The outstanding common share count at the end of the quarter was 140,100,000 shares. Adjusted EBITDA was $6,500,000 representing an 18% adjusted EBITDA margin as compared to just 8% in Q3 last year and 13% in Q2. This improvement reflects the impact of our modest revenue growth, Lower cost of revenues as a percentage of revenue and lower operating costs. Speaker 300:14:19We ended Q3 in a strong financial position with $47,700,000 in cash and cash equivalents and $20,000,000 drawn on our revolving debt facility, with an additional $30,000,000 available on that line. And during the quarter, we generated $4,100,000 in positive free cash flow, an improvement of 78% from $2,300,000 in Q3 2022. Finally, let me touch on our outlook for the Q4 and the full year 2023. We are confident in the underlying strength of our business and anticipate continued strong financial performance, given recent trends over the last few quarters as well as early returns thus far in Q4. We expect Q4 total revenue in a range of 35 to $37,000,000 representing 4% to 10% year over year growth. Speaker 300:15:14We expect Q4 adjusted EBITDA in a range of 5.5 to $7,500,000 as compared to $2,900,000 in the Q4 last year. For the full year, we expect revenue of 136 To $138,000,000 reflecting 7% to 9% annual growth and EBITDA between 16.6 And $18,600,000 reflecting an adjusted EBITDA margin of at least 12%. In conclusion, we are proud of the team's work and encouraged by our Q3 results and the momentum we are seeing in the business, Even in light of the broader uncertainty across the ad market, we believe we are well positioned to become the essential technology infrastructure For the future of TV advertising and to experience outsized growth as ad spend returns to more historic levels. We remain committed to innovation and value creation for our customers and shareholders. This concludes our prepared remarks. Speaker 300:16:16Zika and I are now happy to take some questions. Operator, please begin the Q and A session. Operator00:16:23Thank you. We will now be conducting The first question comes from the line of Andrew Boone with JMP Securities. Please go ahead. Speaker 400:17:01Thank you guys for taking my question. This is Matt on for Andrew. My first one is Instant optimization. Can you just tell us or frame the opportunity for us? And then also just bring it back to the model and How can we expect it to influence results and when? Speaker 400:17:19And then Tony, welcome aboard. And I just wanted to get your thoughts Here on your philosophy between growth and profitability and what we should expect heading into 2024 here. Thank you. Speaker 200:17:32Thanks, Matt. Yes, so you definitely picked on an important topic for us that we worked a lot on this year, But even so, it will be a major theme for 2024 and not pushing forward on optimization. And in a way closing a flywheel. If you zoom out, you see that we have the ad server, the core, the key delivery engine That generates massive amount of data. The input into it is creative and campaign strategy. Speaker 200:18:01The output is the data, But then post the acquisition and the release of Innovid XP, our measurement and outcome solution, now we can see the results. So the next step, which is the big major step is connecting all these 3 platforms together, which was done this Here to allow to understand based on the output, based on the outcome, right, and all the data that we have that is very unique to us, I think kind of unprecedented outside of the Google universe, the data set that we have is to impact then the campaign strategy, Basically to close the loop. And that's where optimization and the heart of it, the AI models that can constantly do that. And the release of instant optimization is not just Here's some recommendation, but actually to be able to affect the creative, the messaging and the campaign strategy in real time. And this is just the initial release. Speaker 200:18:58We're definitely looking forward to meet investors and analysts at the end of this month. In our investor there, we're going to actually demo live Some of these technology, including some live AI demos, so it will give a better sense. So in terms of opportunity, we think there's a Massive opportunity to generate value for our customers and partners. We're not talking yet about next year, but this is Certainly, a path to additional revenue generation the way we see it and hence the significant investment. Speaker 500:19:32Thanks, Meeka. Hey, Matt. How are you? Yeah, so here's how I think about The balance between growth and profitability and I'll tell you that's really one of the main reasons why this was such an attractive Opportunity for me is the company has done a lot of work over the last year or so to expand margins And at the same time, it represents some growth even in a market that's been challenging just due to some of the macro trends. So, you know, my personal belief is really the best way to create value for shareholders and really all stakeholders is through Sustainable long term profitable growth. Speaker 500:20:14And I think we've done the hard work to really set ourselves up for that and it's nice see that coming through in the numbers over the last couple of quarters and even as we look to Q4 and some of the guidance that we gave there kind of expanding Margins showing higher growth there. So I think as we think forward, we're very mindful Balancing those two things, I do think there's the opportunity for some breakout growth as the market turns around because of our position in the CTV space. But driving profitability, expanding margins is kind of key, right, to developing that long So that's kind of my personal thoughts and just views on the company in general and what I've seen here just over a relatively short time. Speaker 400:21:07Great. Thank you. Operator00:21:13Next question comes from the line of Shyam Katheilubit, Susquehanna. Please go ahead. Speaker 600:21:21Hi. This is Aaron Samuels on for Sean Patil. Thank you for taking our questions. Maybe first, just on the Q4 guidance. Could you unpack a bit what that assumes in terms of the macro and Ad environment, are you expecting things to generally remain steady from where they were in the Q3 or is that suggesting maybe A little bit of improvement. Speaker 600:21:46And also if you have any color to share on how October looked just from an ad demand environment, that would be helpful as well. And I have a follow-up as well. Thank you. Speaker 500:21:57Yeah. Aaron, I can try to take this and Zika can certainly add some color. So Yeah. I mean, I think as we look at Q4, there's some things that are encouraging to us and there's some things that, you know, there's still uncertainty in the broader market. So I think the increase in the guidance certainly reflects our confidence that while we haven't Turned a sharp corner and it's not up into the right yet in terms of the macro that We're starting to see some signs, so I would say cautiously optimistic. Speaker 500:22:33There's some verticals that are positive. There's some verticals that They haven't quite rebounded yet. Traditionally, Q4 is where you see a lot of seasonality from a positive tailwinds perspective That historically the company has seen and didn't see last year. And so October kind of gives us confidence in terms of our guidance, But we haven't seen November December really that seasonality hits yet. So trying to balance all of those things. Speaker 500:23:01So a number of different data points, but what I would say is we feel Confident enough to be able to increase the guidance the way that we did. Speaker 600:23:11Excellent. And then maybe one question for Spica. I think in the past, we've talked about Sort of the big media trends right now being CTV and retail media, obviously, Innovate has substantial CTV exposure. Can you refresh us on Innovid's exposure to retail media and how you're thinking about that opportunity more broadly? Thank you. Speaker 200:23:39Sure. In terms of with retail media, what's unique, of course, it's the data sets. So we have been striking though some of the large retailers are actually customers of the ad serving data And so we already have the relationship in place. As retail media comes in and become data platforms and media platforms, They're now on the other side of the equation as partners, definitely using data to personalize and target better target Ads that we deliver in those platforms, measurement is a product that's being used more and more to prove ROI to their customers. And so we have already several partnership in that space. Speaker 200:24:27I believe, again, if we look into the future that we're going to see much more, including the ability to do shoppable ads and really closing the loop if you think about what we talked about the Thesis and our strategy for 2024 for optimization, working with those platforms that you can actually close the loop, So better target, better target the messaging, target the audience to a specific product, be able to create a shoppable environment, And then close the loop and see what's working. And based on that, not only execute on retail media, but also execute later in other areas, But use the very unique data sets that those platforms have to understand what's working and what's not working and then implement this Outside of retail media. So absolutely, any data reach environment and data environment that can give Our customers' feedback on the outcome is something that can dramatically improve the optimization, which is the key theme here for us for 2024. Speaker 600:25:32Great. Thank you very much. Appreciate the answers. Operator00:25:39Thank you. Next question comes from the line of Shweta Kajuria with Evercore ISI. Please go ahead. Speaker 700:25:52Okay. Thank you for taking my questions. Could you please comment Just at a high level, what you experienced and what you're hearing in terms of brand advertiser sentiment right now, You talked a little bit about October and your confidence in giving and raising the guidance for the Q4. But any more granularity on whether On certain verticals, I know in one of the prior 4th quarters, you had the auto vertical headwind. So where do you stand now given the strike versus Perhaps CPG or some of the other key verticals, if you could provide some comments? Speaker 700:26:28And then have you seen any Political spend start to flow in, in terms of political advertising ad serving in the Q4? Thank you. Speaker 200:26:40Sure. Thanks, Sweta. So in terms and as Tony mentioned regarding the Q4, We feel pretty comfortable in terms of the trend. We have not seen last year, we started Seeing a tipping at the end of Q3 and of course, this year behaves normal. So it's a surpassed normal. Speaker 200:27:06It's Definitely, there are customers that reduced their spending on brand advertising, on TV advertising. TV advertising declined in general. But what helps with CTV is the fact that the audience continues to move from linear to CTV. So that keeps pushing the numbers up into the right in terms of viewership. So the budgets, even if a certain brand contracts, you can see increase in their CTV spend from that perspective. Speaker 200:27:33Now in terms of specific verticals, we're seeing a pretty consistent behavior where some verticals like CPG and pharma I continue to invest, I would say, more aggressively compared to others and we see nice year over year growth compared to last year, even compared to the healthy part of last year. And other areas like financial services, insurance company, technology companies, We are seeing a decrease. Overall, it's a positive. It's still a positive. We're obviously looking forward that All verticals will go up into the right. Speaker 200:28:11And to your comment about auto, we're not seeing Back those days, it was more related to supply and like vertical specific dynamics. What we're seeing now is general economy dynamics and we're also following closely some of our largest customers' earning calls and They are giving some indication in terms of their spend and investment in marketing. So that helps us. So overall, we feel pretty comfortable about Q4. And overall for next year also, while we're not providing guidance, we're not seeing significant volatility. Speaker 200:28:47We're not seeing Sudden extreme decisions by our customers. So that helps us plan for top line and bottom line. And regarding political ads, on that front, political ads is not an area that we're heavily focused on. It comes and goes And they tend to be more performance oriented. We work with on the measurement side, on the sales side with publishers, in terms of creative tools, Personalization, things like measurement, that's an area that we definitely see an uptick In political revenue, but on the brands, the brands itself, It's not usually an area that we heavily invest. Speaker 700:29:37Okay. Thank you very much. Operator00:29:39Thank you. Thank you. Next question comes from the line of Shyam Khatil with Susquehanna. Please go ahead. Speaker 600:29:52Thanks for taking one more question. This is for Tony. Clearly, Innovate has seen some nice margin expansion Over this year, I know you're not providing guidance for 2024 at this point, but just wanted to See if there's any additional color you can share about how to think about Innovate's margin profile going forward? Thank you. Speaker 500:30:18Yes. No problem at all. Yes. I mean, obviously, it's something that we give a lot of thought to as well. And I think we've said in the past that we see this business Really being a 30 plus percent adjusted EBITDA margin business and continuing to march forward to that. Speaker 500:30:35You're right. We haven't talked about 2024 guidance yet. But this is a scalable model And the underlying business is profitable and as you combine the ad serving CTV with the measurement, You know that's kind of a nice combination. And as I mentioned before, once we see the market turn, I think We're going to be in a position to really grow in a nice way. And with that, you'll see a larger and larger Amount of that growth kind of fall through to the bottom line. Speaker 500:31:11Again, it is a leverageable business model. Nice healthy Margins from cost of revenues as a percentage of revenue and so there's no reason why this shouldn't be a healthy grower And 30 plus percent margin business. Speaker 600:31:32Really helpful. Thank you. And then just one last question. Live sports have become increasingly available Through streaming and CTV and in more and more cases more exclusively available through those channels. Could you speak about how Innovid may benefit from these trends? Speaker 600:31:54And do you view this as a significant driver for CTV viewership growth and maybe an accelerant of the cord cutting phenomenon? Speaker 200:32:05Absolutely. I mean, this is and you nailed it. The sports and live sports are a massive driver of behavior, viewership behavior. And the more rights that are being bought by some of the streaming platforms That includes digital kind of digital native like Apple and Amazon, Google through YouTube. As long as these are available also on streaming and definitely exclusively on streaming, that is a major driver to get more and more people. Speaker 200:32:37The first thing we want to get people is not to cut cable completely or something is at least get them to Start connecting to the Wi Fi, running the app, getting comfortable with using that, like moving from an analog phone to a smartphone. Once you're in that smart environment, You're getting installed more and more apps and really you're basically getting more users to adopt TV is a main connected TV is a main viewership platform. So that's one thing. Clearly, sports is where a lot of brand advertising takes These are kind of lucrative spots. So our focus is on those large brands. Speaker 200:33:17So there are definitely spenders on that. So that is also helpful. And also, The ability to better target in real time As you're going to an ad break and instead of showing the same ad like a Super Bowl situation to everybody, the ability to Segment the audience and from a publisher perspective, sell that segment for a higher CPM for the relevant Whether it's auto intenders or families with kids or toddlers at home, you can imagine how you can generate more revenue by segmenting the audience and sending the right Creative to the right household and that is impossible to do with live broadcasting. It's absolutely impossible to do in streaming. And If you think about it, it requires very unique technology because you're getting like 1,000,000 or 10,000,000 or 50,000,000 hits literally the same split second. Speaker 200:34:11So this is an area where we heavily invested it. We were partners in the Olympics and this is something that's extremely exciting for us moving forward. Operator00:34:28Thank you. There are no further questions at this time. I would now like to turn the floor over to speaker Netter for closing comments. Speaker 200:34:39Thank you all for joining us this morning. I would like to first also thanks again our team around the world We're exceeding all expectations this year and hopefully moving forward in this challenging From different reasons, I'm really excited as we just spoke about sports, I'm really excited about all the opportunities ahead As more and more inventory is moving to television streaming and we can generate more value to our advertisers and the partners, I'd like to highlight and remind you all about our Investor Day coming up later this month on November 30, where we're going to And in order to get more information and register for that, you can email us at investorsinnovid.com. Looking forward to see you all there. Have a great day.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallInnovid Q3 202300:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K)Quarterly report(10-Q) Innovid Earnings HeadlinesInnovid’s 2025 CTV Benchmarks Reveal Big Opportunities in Reach, Frequency & Interactive EngagementApril 23 at 11:04 AM | finance.yahoo.comInnovid’s Feature Beat: New Tools to Make CTV Ads Even More Engaging, Shoppable, & ScalableApril 9, 2025 | finance.yahoo.comTrump to redistribute trillions of dollars This playbook is something my connections and I have been discussing in private ever since we met with Trump at Mar-a-Lago last year. And while Trump has never formally acknowledged this plan, if you connect the dots on the chaos he’s been sowing, it’s obvious. April 24, 2025 | Porter & Company (Ad)Mediaocean Unveils Innovid as Unified Brand for Global Ad Tech BusinessMarch 17, 2025 | businesswire.comBasis Technologies Integrates with IRIS.TV for Contextual Targeting on Programmatic CTV AdvertisingMarch 6, 2025 | markets.businessinsider.comMediaocean Completes Acquisition of Innovid – Creating the Premier Global Independent, Omnichannel Ad Tech PlatformFebruary 13, 2025 | businesswire.comSee More Innovid Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Innovid? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Innovid and other key companies, straight to your email. Email Address About InnovidInnovid (NYSE:CTV) operates an independent software platform that provides ad serving, measurement, and creative services. It offers advertising services for the creation, delivery, and measurement of TV ads across connected TV, mobile TV, and desktop TV environments to advertisers, publishers, and media agencies. The company serves consumer packaged goods, pharmaceutical and healthcare, retail, financial services, and automotive and technology industries; third party agencies; and publishers in the United States, Canada, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. Innovid Corp. was incorporated in 2007 and is headquartered in New York, New York.View Innovid ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Seismic Shift at Intel: Massive Layoffs Precede Crucial EarningsRocket Lab Lands New Contract, Builds Momentum Ahead of EarningsAmazon's Earnings Could Fuel a Rapid Breakout Tesla Earnings Miss, But Musk Refocuses and Bulls ReactQualcomm’s Range Narrows Ahead of Earnings as Bulls Step InWhy It May Be Time to Buy CrowdStrike Stock Heading Into EarningsCan IBM’s Q1 Earnings Spark a Breakout for the Stock? Upcoming Earnings AbbVie (4/25/2025)AON (4/25/2025)Colgate-Palmolive (4/25/2025)HCA Healthcare (4/25/2025)NatWest Group (4/25/2025)Cadence Design Systems (4/28/2025)Welltower (4/28/2025)Waste Management (4/28/2025)AstraZeneca (4/29/2025)Booking (4/29/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. Start Your 30-Day Trial MarketBeat All Access Features Best-in-Class Portfolio Monitoring Get personalized stock ideas. Compare portfolio to indices. Check stock news, ratings, SEC filings, and more. Stock Ideas and Recommendations See daily stock ideas from top analysts. Receive short-term trading ideas from MarketBeat. Identify trending stocks on social media. Advanced Stock Screeners and Research Tools Use our seven stock screeners to find suitable stocks. Stay informed with MarketBeat's real-time news. Export data to Excel for personal analysis. Sign in to your free account to enjoy these benefits In-depth profiles and analysis for 20,000 public companies. Real-time analyst ratings, insider transactions, earnings data, and more. Our daily ratings and market update email newsletter. Sign in to your free account to enjoy all that MarketBeat has to offer. Sign In Create Account Your Email Address: Email Address Required Your Password: Password Required Log In or Sign in with Facebook Sign in with Google Forgot your password? Your Email Address: Please enter your email address. Please enter a valid email address Choose a Password: Please enter your password. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. Create My Account (Free) or Sign in with Facebook Sign in with Google By creating a free account, you agree to our terms of service. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
There are 8 speakers on the call. Operator00:00:00Greetings, and welcome to Innovid Q3 2023 Earnings Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Trulia Johnson? Operator00:00:28Thank you. Ms. Johnson, you may begin. Speaker 100:00:33Thank you, operator. So pertain to this call. These forward looking statements may include, without limitation, predictions, expectations, targets or estimates regarding our Financial performance, business plans and objectives, future events and developments. Changes in our business, competitive landscape, technological or regulatory environment and other Factors could cause actual results to differ materially from those expressed by the forward looking statements made today. Our historical results are not necessarily indicative of future performance, and as such, We can give no assurance as to the accuracy of our forward looking statements and assume no obligation to update them, except as required by law. Speaker 100:01:20In addition, today's call will include Non GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin and free cash flow. We use these non GAAP measures in managing the business and believe they provide useful information for our investors. These measures should be considered in addition to and not as a substitute for our GAAP results. Reconciliations of the non GAAP measures to their corresponding GAAP measures, where appropriate, can be found in the earnings release available on our website and in our filings with the Hosting today's call are Zvek Nadir, Innovid's Co Founder and CEO as well as Anthony Collini, Innovid's CFO, both of whom will participate And now, I'll turn the call over to Zika to begin. Zika, go ahead. Speaker 200:02:04Thanks, Brinley, and thank you all for joining the call today. Before I begin, I would like to thank our teams around the world for their hard work. We reported an excellent quarter and are on track to close out a great year. As many of you know, 1 of our development teams is located in Israel and would like to give a special thanks to them for continuing to deliver on track despite the heartbreaking situation in the region. I will start our call with our Q3 results and provide some recent business updates and highlights. Speaker 200:02:37I will then turn it over to our newly appointed Chief Financial Officer, Anthony Calini, who will provide further details on our Q3 performance and share updated guidance, We are well positioned for continued execution in the Q4 to deliver a solid full year 2023. As a result, we are raising our full year revenue and adjusted EBITDA guidance and now expect adjusted EBITDA margins of at least 12% compared to 10% prior. This is the 3rd consecutive quarter of outperforming our guidance and I'm proud of the team's ability to execute As we continue to improve financial metrics on all fronts, we remain committed to expanding our margins and positioning ourselves for accelerated growth Looking at the quarter, our Q3 revenue grew 5% year over year and importantly, we more than doubled our adjusted EBITDA to $6,500,000 compared to last Q3. This follows a strong Q2 in which our adjusted EBITDA margin grew from negative 5% in Q2 of 2022 to 13% last quarter. Additionally, as our operation profitability increased, We generated $4,100,000 in positive free cash flow this quarter. Speaker 200:04:07Our improving bottom line results Over the last few quarters demonstrate that our products are profitable at their core. We have a business model where we generate margin expansion even as we continue to invest in exciting new and innovative technologies. We have a strong competitive mode and are Capitalizing on our inevitable transformation of the market as more and more viewers watch television through CTV. We continue to see more streaming platforms implementing ad supported offerings. Recently, Amazon Prime Video announced It will join the overall ad supported CTV trend and will introduce ads into Prime Video next year. Speaker 200:04:47This creates huge value for the industry, our partners And Innovate. There's also been a rapid shift in TV viewership. This quarter, it was widely reported That linear TV viewership fell below 50% in the U. S. For the first time, which is a major milestone. Speaker 200:05:05Even in a world where ad budgets continue to be impacted by the macro environment, we expect that advertising dollars will meaningfully shift To align with eyeballs and time spent on CTV platforms, InnoBeat CTV revenue from ad serving and personalization grew 9% over last year, Position us to benefit once ad budgets normalize and we can capitalize on this massive opportunity as more impressions transition to CTV. Another growth driver Innovate XP, our measurement offering grew 8% as compared to last year, representing 23% of total revenue in the 3rd quarter. We are pleased with the ramp up in measurement as we continue to cross sell and extend usage. Growth this quarter was also fueled by significant new customer wins including Revlon, Fanatics, Box Health and On Running. In addition, existing large publisher partners such as NBCUniversal have Turning to our platform. Speaker 200:06:18We continue to invest in new functionality to power the future of TV and how brands can reach consumers In new and powerful ways using the latest breakthroughs in AI technology. Innovate is a data rich business that generates an unparalleled CTV data set. This dataset is the optimal foundation for sophisticated AI tools that can deliver exceptional value to our clients. I'm excited to announce that we have implemented leading generative AI engines into our platform. Using these AI engines, Our clients will be able to generate images, videos, voiceover and ad copy based on the first and third party data feeds. Speaker 200:07:00Those never seen before unique creative ads are then streamed, measured and optimized by Innovate platform based on customer set strategies. We have also implemented a natural language query engine into our platform that will allow our clients to gain valuable information and insights about the CTV campaigns via a conversation like interface. Now, I would like to share with you a few words regarding our 2024 Product strategy. Innovate's ability to apply AI algorithms to our ad server data Uniquely positions us to optimize CTV ad investments. In October, we launched instant optimization, A machine learning solution that empowers converged TV advertisers to immediately improve ad performance, Our instant optimization solution goes beyond measurement by intelligently selecting the most impactful creatives to serve at the delivery times. Speaker 200:08:00We see considerable opportunity to optimize the CTV market to drive outcomes for lower investments Using our proprietary data and technology, we are excited about the momentum we've seen over the last few quarters with increasing revenues, Expanding adjusted EBITDA margins and improved positive free cash flow. We continue to roll out the valuable product enhancements, Sign new clients and expand our existing partnerships. Although the market has not fully rebounded and we are experiencing different spend levels across our verticals, we are encouraged by the continued shift in viewership from linear to CTV and believe we are well positioned for growth. Once the market normalizes, we expect higher future growth rates and higher profitability margins. As we've demonstrated over the last few quarters, we remain committed to operational execution and expanding margins. Speaker 200:08:58We plan to share more about our excitement around 2024, including our product innovation and pipeline in which CTV performance optimization It's the main theme at our upcoming Investor Day on November 30 in New York City. Before I turn the call over to Anthony Calini, our new Chief Financial Officer, I want to thank Tanya for all her contributions to Innovate over the last 11 years. Tanya has been a key pillar in our success to date and has built a strong finance team during her tenure. Tanya, I wish you all the best in your future endeavors. I am excited to welcome Tony to his first Innovate earnings call as our new Chief Financial Officer. Speaker 200:09:42Tony has over 20 years of financial experience at leading private and public technology companies. He possesses deep experience in helping growth companies Scale in a sustainable way and bring extensive SaaS and enterprise software experience to our team. Tony, welcome to Innovid. Speaker 300:10:03Thank you for the warm welcome, Zwika, and good morning, everyone. I'm incredibly excited to join Innovid and be part of this experienced and passionate team. It's only been a few weeks, but the opportunity here is clearly apparent to me. The combination of a growing business, strong secular trends in CTV migration, a leading platform, world class customers and a leverageable operating model are all powerful attributes that contribute to creating sustainable long term value. As you just heard from Zika, our dedication to driving profitable growth is once again evident in our results. Speaker 300:10:38We beat the top end of the revenue guidance range by 3.5% and delivered an adjusted EBITDA margin of 18%, the 2nd straight quarter of EBITDA expansion. Now let me dig a little more into the numbers. Q3 revenue grew 5% year over year to $36,200,000 If we break that down further, ad serving and personalization revenues were up 4% year over year, reflecting the continued pressure on ad spend in the broader market. As a reminder, Innovent's ad serving and personalization revenue closely correlates with ad impression volumes served through our platform. Within this category, CTV revenue, which comes from ad serving and personalization, increased 9% as more impressions continue to transition to Connected TV. Speaker 300:11:28Measurement revenue grew 8% as compared to last Q3 as we continue to build out our products to take full advantage of the valuable data set generated from the ad serving side of the business. As a percentage of revenue in Q3, ad serving and personalization made up 77%, while measurement accounted for 23%. A few more comments on the CTV activity this quarter. Q3 CTV revenue, excluding measurement, grew 9% over last year And CTV video impression volume grew 7%. Additionally, we reached another high point this quarter with 55% of all video impressions coming in via CTV. Speaker 300:12:12Mobile volume grew by 8% and represented 35% of all video impressions, while desktop volume decreased by 12% and reflected 10% of all video impressions. Both mobile and desktop have been inconsistent in the first 3 quarters of 2023, while CTV has continued gaining share of total video impressions and demonstrated constant growth even against the backdrop of the uncertainty in the market. Revenue less cost of revenue calculated out to 77% of revenue, improving from 75% in Q3 last year. As the business scales, our margins continue to improve, reflecting the operating leverage embedded in our business model. Now moving on to expenses. Speaker 300:12:59We're pleased to report that we are continuing to see the impact of efficiency efforts and the integration of the TVSquared acquisition, As Q3 total operating expenses, excluding depreciation, amortization and impairment, totaled $35,800,000 a decrease of 7% from 38,600,000 last year. Employee count at quarter end was 460, a 14% decrease compared to the previous year and resulted in a 16% reduction in compensation expenses excluding stock based comp. We remain committed to managing our cost base while protecting investments in high growth areas to drive improved or a per share loss of $0.02 The outstanding common share count at the end of the quarter was 140,100,000 shares. Adjusted EBITDA was $6,500,000 representing an 18% adjusted EBITDA margin as compared to just 8% in Q3 last year and 13% in Q2. This improvement reflects the impact of our modest revenue growth, Lower cost of revenues as a percentage of revenue and lower operating costs. Speaker 300:14:19We ended Q3 in a strong financial position with $47,700,000 in cash and cash equivalents and $20,000,000 drawn on our revolving debt facility, with an additional $30,000,000 available on that line. And during the quarter, we generated $4,100,000 in positive free cash flow, an improvement of 78% from $2,300,000 in Q3 2022. Finally, let me touch on our outlook for the Q4 and the full year 2023. We are confident in the underlying strength of our business and anticipate continued strong financial performance, given recent trends over the last few quarters as well as early returns thus far in Q4. We expect Q4 total revenue in a range of 35 to $37,000,000 representing 4% to 10% year over year growth. Speaker 300:15:14We expect Q4 adjusted EBITDA in a range of 5.5 to $7,500,000 as compared to $2,900,000 in the Q4 last year. For the full year, we expect revenue of 136 To $138,000,000 reflecting 7% to 9% annual growth and EBITDA between 16.6 And $18,600,000 reflecting an adjusted EBITDA margin of at least 12%. In conclusion, we are proud of the team's work and encouraged by our Q3 results and the momentum we are seeing in the business, Even in light of the broader uncertainty across the ad market, we believe we are well positioned to become the essential technology infrastructure For the future of TV advertising and to experience outsized growth as ad spend returns to more historic levels. We remain committed to innovation and value creation for our customers and shareholders. This concludes our prepared remarks. Speaker 300:16:16Zika and I are now happy to take some questions. Operator, please begin the Q and A session. Operator00:16:23Thank you. We will now be conducting The first question comes from the line of Andrew Boone with JMP Securities. Please go ahead. Speaker 400:17:01Thank you guys for taking my question. This is Matt on for Andrew. My first one is Instant optimization. Can you just tell us or frame the opportunity for us? And then also just bring it back to the model and How can we expect it to influence results and when? Speaker 400:17:19And then Tony, welcome aboard. And I just wanted to get your thoughts Here on your philosophy between growth and profitability and what we should expect heading into 2024 here. Thank you. Speaker 200:17:32Thanks, Matt. Yes, so you definitely picked on an important topic for us that we worked a lot on this year, But even so, it will be a major theme for 2024 and not pushing forward on optimization. And in a way closing a flywheel. If you zoom out, you see that we have the ad server, the core, the key delivery engine That generates massive amount of data. The input into it is creative and campaign strategy. Speaker 200:18:01The output is the data, But then post the acquisition and the release of Innovid XP, our measurement and outcome solution, now we can see the results. So the next step, which is the big major step is connecting all these 3 platforms together, which was done this Here to allow to understand based on the output, based on the outcome, right, and all the data that we have that is very unique to us, I think kind of unprecedented outside of the Google universe, the data set that we have is to impact then the campaign strategy, Basically to close the loop. And that's where optimization and the heart of it, the AI models that can constantly do that. And the release of instant optimization is not just Here's some recommendation, but actually to be able to affect the creative, the messaging and the campaign strategy in real time. And this is just the initial release. Speaker 200:18:58We're definitely looking forward to meet investors and analysts at the end of this month. In our investor there, we're going to actually demo live Some of these technology, including some live AI demos, so it will give a better sense. So in terms of opportunity, we think there's a Massive opportunity to generate value for our customers and partners. We're not talking yet about next year, but this is Certainly, a path to additional revenue generation the way we see it and hence the significant investment. Speaker 500:19:32Thanks, Meeka. Hey, Matt. How are you? Yeah, so here's how I think about The balance between growth and profitability and I'll tell you that's really one of the main reasons why this was such an attractive Opportunity for me is the company has done a lot of work over the last year or so to expand margins And at the same time, it represents some growth even in a market that's been challenging just due to some of the macro trends. So, you know, my personal belief is really the best way to create value for shareholders and really all stakeholders is through Sustainable long term profitable growth. Speaker 500:20:14And I think we've done the hard work to really set ourselves up for that and it's nice see that coming through in the numbers over the last couple of quarters and even as we look to Q4 and some of the guidance that we gave there kind of expanding Margins showing higher growth there. So I think as we think forward, we're very mindful Balancing those two things, I do think there's the opportunity for some breakout growth as the market turns around because of our position in the CTV space. But driving profitability, expanding margins is kind of key, right, to developing that long So that's kind of my personal thoughts and just views on the company in general and what I've seen here just over a relatively short time. Speaker 400:21:07Great. Thank you. Operator00:21:13Next question comes from the line of Shyam Katheilubit, Susquehanna. Please go ahead. Speaker 600:21:21Hi. This is Aaron Samuels on for Sean Patil. Thank you for taking our questions. Maybe first, just on the Q4 guidance. Could you unpack a bit what that assumes in terms of the macro and Ad environment, are you expecting things to generally remain steady from where they were in the Q3 or is that suggesting maybe A little bit of improvement. Speaker 600:21:46And also if you have any color to share on how October looked just from an ad demand environment, that would be helpful as well. And I have a follow-up as well. Thank you. Speaker 500:21:57Yeah. Aaron, I can try to take this and Zika can certainly add some color. So Yeah. I mean, I think as we look at Q4, there's some things that are encouraging to us and there's some things that, you know, there's still uncertainty in the broader market. So I think the increase in the guidance certainly reflects our confidence that while we haven't Turned a sharp corner and it's not up into the right yet in terms of the macro that We're starting to see some signs, so I would say cautiously optimistic. Speaker 500:22:33There's some verticals that are positive. There's some verticals that They haven't quite rebounded yet. Traditionally, Q4 is where you see a lot of seasonality from a positive tailwinds perspective That historically the company has seen and didn't see last year. And so October kind of gives us confidence in terms of our guidance, But we haven't seen November December really that seasonality hits yet. So trying to balance all of those things. Speaker 500:23:01So a number of different data points, but what I would say is we feel Confident enough to be able to increase the guidance the way that we did. Speaker 600:23:11Excellent. And then maybe one question for Spica. I think in the past, we've talked about Sort of the big media trends right now being CTV and retail media, obviously, Innovate has substantial CTV exposure. Can you refresh us on Innovid's exposure to retail media and how you're thinking about that opportunity more broadly? Thank you. Speaker 200:23:39Sure. In terms of with retail media, what's unique, of course, it's the data sets. So we have been striking though some of the large retailers are actually customers of the ad serving data And so we already have the relationship in place. As retail media comes in and become data platforms and media platforms, They're now on the other side of the equation as partners, definitely using data to personalize and target better target Ads that we deliver in those platforms, measurement is a product that's being used more and more to prove ROI to their customers. And so we have already several partnership in that space. Speaker 200:24:27I believe, again, if we look into the future that we're going to see much more, including the ability to do shoppable ads and really closing the loop if you think about what we talked about the Thesis and our strategy for 2024 for optimization, working with those platforms that you can actually close the loop, So better target, better target the messaging, target the audience to a specific product, be able to create a shoppable environment, And then close the loop and see what's working. And based on that, not only execute on retail media, but also execute later in other areas, But use the very unique data sets that those platforms have to understand what's working and what's not working and then implement this Outside of retail media. So absolutely, any data reach environment and data environment that can give Our customers' feedback on the outcome is something that can dramatically improve the optimization, which is the key theme here for us for 2024. Speaker 600:25:32Great. Thank you very much. Appreciate the answers. Operator00:25:39Thank you. Next question comes from the line of Shweta Kajuria with Evercore ISI. Please go ahead. Speaker 700:25:52Okay. Thank you for taking my questions. Could you please comment Just at a high level, what you experienced and what you're hearing in terms of brand advertiser sentiment right now, You talked a little bit about October and your confidence in giving and raising the guidance for the Q4. But any more granularity on whether On certain verticals, I know in one of the prior 4th quarters, you had the auto vertical headwind. So where do you stand now given the strike versus Perhaps CPG or some of the other key verticals, if you could provide some comments? Speaker 700:26:28And then have you seen any Political spend start to flow in, in terms of political advertising ad serving in the Q4? Thank you. Speaker 200:26:40Sure. Thanks, Sweta. So in terms and as Tony mentioned regarding the Q4, We feel pretty comfortable in terms of the trend. We have not seen last year, we started Seeing a tipping at the end of Q3 and of course, this year behaves normal. So it's a surpassed normal. Speaker 200:27:06It's Definitely, there are customers that reduced their spending on brand advertising, on TV advertising. TV advertising declined in general. But what helps with CTV is the fact that the audience continues to move from linear to CTV. So that keeps pushing the numbers up into the right in terms of viewership. So the budgets, even if a certain brand contracts, you can see increase in their CTV spend from that perspective. Speaker 200:27:33Now in terms of specific verticals, we're seeing a pretty consistent behavior where some verticals like CPG and pharma I continue to invest, I would say, more aggressively compared to others and we see nice year over year growth compared to last year, even compared to the healthy part of last year. And other areas like financial services, insurance company, technology companies, We are seeing a decrease. Overall, it's a positive. It's still a positive. We're obviously looking forward that All verticals will go up into the right. Speaker 200:28:11And to your comment about auto, we're not seeing Back those days, it was more related to supply and like vertical specific dynamics. What we're seeing now is general economy dynamics and we're also following closely some of our largest customers' earning calls and They are giving some indication in terms of their spend and investment in marketing. So that helps us. So overall, we feel pretty comfortable about Q4. And overall for next year also, while we're not providing guidance, we're not seeing significant volatility. Speaker 200:28:47We're not seeing Sudden extreme decisions by our customers. So that helps us plan for top line and bottom line. And regarding political ads, on that front, political ads is not an area that we're heavily focused on. It comes and goes And they tend to be more performance oriented. We work with on the measurement side, on the sales side with publishers, in terms of creative tools, Personalization, things like measurement, that's an area that we definitely see an uptick In political revenue, but on the brands, the brands itself, It's not usually an area that we heavily invest. Speaker 700:29:37Okay. Thank you very much. Operator00:29:39Thank you. Thank you. Next question comes from the line of Shyam Khatil with Susquehanna. Please go ahead. Speaker 600:29:52Thanks for taking one more question. This is for Tony. Clearly, Innovate has seen some nice margin expansion Over this year, I know you're not providing guidance for 2024 at this point, but just wanted to See if there's any additional color you can share about how to think about Innovate's margin profile going forward? Thank you. Speaker 500:30:18Yes. No problem at all. Yes. I mean, obviously, it's something that we give a lot of thought to as well. And I think we've said in the past that we see this business Really being a 30 plus percent adjusted EBITDA margin business and continuing to march forward to that. Speaker 500:30:35You're right. We haven't talked about 2024 guidance yet. But this is a scalable model And the underlying business is profitable and as you combine the ad serving CTV with the measurement, You know that's kind of a nice combination. And as I mentioned before, once we see the market turn, I think We're going to be in a position to really grow in a nice way. And with that, you'll see a larger and larger Amount of that growth kind of fall through to the bottom line. Speaker 500:31:11Again, it is a leverageable business model. Nice healthy Margins from cost of revenues as a percentage of revenue and so there's no reason why this shouldn't be a healthy grower And 30 plus percent margin business. Speaker 600:31:32Really helpful. Thank you. And then just one last question. Live sports have become increasingly available Through streaming and CTV and in more and more cases more exclusively available through those channels. Could you speak about how Innovid may benefit from these trends? Speaker 600:31:54And do you view this as a significant driver for CTV viewership growth and maybe an accelerant of the cord cutting phenomenon? Speaker 200:32:05Absolutely. I mean, this is and you nailed it. The sports and live sports are a massive driver of behavior, viewership behavior. And the more rights that are being bought by some of the streaming platforms That includes digital kind of digital native like Apple and Amazon, Google through YouTube. As long as these are available also on streaming and definitely exclusively on streaming, that is a major driver to get more and more people. Speaker 200:32:37The first thing we want to get people is not to cut cable completely or something is at least get them to Start connecting to the Wi Fi, running the app, getting comfortable with using that, like moving from an analog phone to a smartphone. Once you're in that smart environment, You're getting installed more and more apps and really you're basically getting more users to adopt TV is a main connected TV is a main viewership platform. So that's one thing. Clearly, sports is where a lot of brand advertising takes These are kind of lucrative spots. So our focus is on those large brands. Speaker 200:33:17So there are definitely spenders on that. So that is also helpful. And also, The ability to better target in real time As you're going to an ad break and instead of showing the same ad like a Super Bowl situation to everybody, the ability to Segment the audience and from a publisher perspective, sell that segment for a higher CPM for the relevant Whether it's auto intenders or families with kids or toddlers at home, you can imagine how you can generate more revenue by segmenting the audience and sending the right Creative to the right household and that is impossible to do with live broadcasting. It's absolutely impossible to do in streaming. And If you think about it, it requires very unique technology because you're getting like 1,000,000 or 10,000,000 or 50,000,000 hits literally the same split second. Speaker 200:34:11So this is an area where we heavily invested it. We were partners in the Olympics and this is something that's extremely exciting for us moving forward. Operator00:34:28Thank you. There are no further questions at this time. I would now like to turn the floor over to speaker Netter for closing comments. Speaker 200:34:39Thank you all for joining us this morning. I would like to first also thanks again our team around the world We're exceeding all expectations this year and hopefully moving forward in this challenging From different reasons, I'm really excited as we just spoke about sports, I'm really excited about all the opportunities ahead As more and more inventory is moving to television streaming and we can generate more value to our advertisers and the partners, I'd like to highlight and remind you all about our Investor Day coming up later this month on November 30, where we're going to And in order to get more information and register for that, you can email us at investorsinnovid.com. Looking forward to see you all there. Have a great day.Read morePowered by