CTV - Earnings call transcript Q1 2022

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Operator

Greetings. Welcome to the Innovid Q1 2022 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. the to turn Johnson, host, now IR. Innovid, will conference your over Brinlea I you. Thank

begin. may You

Brinlea Johnson

Thank everyone, operator, first you, and quarter to today. XXXX Innovid's Welcome conference call. for joining us

our I pertains call. like on begin, to call forward-looking statement this safe contain and may certain earnings contained we Before in this to remind today's information listeners would provided the harbor statements, that release also

of the the Investor you website. release, results direct could those a have these statements from If business, the of not cause expressed materially yourself or and forward-looking our Relations in made copy section technological regulatory company's received Changes to actual landscape, other today. differ by please competitive to environment factors

performance. Our are historical results future not of necessarily indicative

and Then who can accuracy required Co-Founder as Zvika the joined give to assume Innovid's Innovid's as CEO, and CFO, statements we are of with of forward-looking will law. the obligation assurance turn to them, the no call by to Andreev-Kaspin, over Today, company. we no the will Netter, such, call financials update our by we business except Tanya begin update. discuss will a the As

that, and the Zvika, question-and-answer Chalozin, the Tal well. to ahead. will go call please like Founder session, as join With over During to Netter, I'd pass CTO, Zvika

Zvika Netter

update, to today's at for you, innovation. our Brindle, sharing Thank to and expands last looking good continued been focus an Innovid areas since us forward and and morning, X.X months upon It's exciting growth everyone. call, our I'm which

industry. in market the in rapid to some highlights, been in Innovid's the into like tectonic the The light subscription-based we're expansion streaming decade of business by has jumping shifts Before past marked seeing share. shed broader television would on I

it and Netflix subscribers and ad-supported Amazon services relaunching discussing Now saturated and increase have services ad-supported the adding embrace advertising major streaming as driven doubled attract to market their Disney+ FreeBee eBay models an such the subscription-based services additional revenue. streaming In recently down agenda. service, its under for brand. streaming the has on leading fragmented increasingly been to

dollars on services more even According the CTV, to subscribers TV The ad-supported an Since service Intelligence, to projected the is By of has bright. believe streaming our with used streaming of is people and million by Insider more sorted. is XXX of As linear advertising rapid number shift the and support expansion. content, from XXXX, cusp we users. ad-supported in XXXX. is million rise ad-supported end growth figure to to CTV that line XXX future

in strategic the largest speak measurement of I'll achieved of performance the the business in TVSquared, global acquisition independent attribution CTV business that the business gains to including wins, and by TV. prior an first the products U.S., platform the XXXX, through combination adoption advertisers and of the TV measurement is personalized our our delivered We new highlights. guidance. our expectations for strong outstanding to in surpassing advertising of driven on and quarter converged one our expansion of We increased Now and customer Increased which shortly. of

$XX.X progress Revenue significant the of basis. despite volatility quarterly macro the XX% the in make increased total against to able the to to our of revenue TVSquared, excluding as-reported acquisition X% environment. Revenue February $XX.X was to expectations XX% team stated XX% when above Our an on year-over-year was $X.X goals million by increased or increased growth. million attributed following million, for XXXX. quarter XX% TVSquared to the closing XX, our on year-over-year

XX% of to increased in rate expected grow in negative $X.X in XXXX and excluding spending TVSquared million. CTV and of revenue, accounted QX. million QX from $X.X quarterly growth was nearly loss the this to CTV outpaced total revenue, to the million million, up XX% XXXX. CTV TV business digital $X.X converged of our combination address EBITDA transformative today's advertising of our negative QX XX% negative XXXX, XX% including and first quarter of was was marketplace. by eMarketer, adjusted to TVSquared, the expand year-over-year, is landscape, expected in $X According exceeding the Our net converged names range opportunity of to linear for TVSquared. the growing converged in as addition the acquisition connected of strategic on the broader expanding TV our TV now has is in marketers to we and completed strategic on enormous. TV. of TV TVSquared, to video infrastructure With CTV measurement regional the emphasis encompass The I'll created value advertising grown opportunity

measurement position combination largest we they business TVSquared, automation are of the told world Through the global and unlocking in advertisers view of leading investment justify clients, our server capabilities, and comprehensive independent advertisers to inhabit software to we ecosystem us entire scale optimize have the value on the a ad they are advertising deliver with of solutions. outcomes. and across measurement market and the believe TV built Through robust Our both better need audience more exactly give need. what TV TVSquared that we and and for

that trust the all the have with trade partner has impressions to can platform and Our One with to win, sides measurement publishers serving opportunity the industry transparency, and Innovid's our believe an tighten buyers revenue capabilities measure greater connect across integrate arming already advertisers, between a advertising are independence, creative TVSquareds allowed gives and across to analysis cross-platform TVSquared, directly positive solution in our all We of edge through to into signals line optimization. sellers. foundation success. expectations. our unbiased and the measurement to and we where competitive Innovid's continue accountability to seeing measurement ecosystem and our we us optimization ad offering. which services month progressed also to of drives ability MVPDs agencies evolved ability creative benefit ecosystem will huge acquisition has in support long to outcomes the of our means the and and

for teams go-to-market joint action. are Our primed

to TVSquared already our pleased consolidated engineering development data our single into organization teams platform. are integrated global and measurement have We into ad serving a the

scalable will provide converged with TV like customers the our platform and innovate platform landscape. the to last increasingly robust, a growth, manage global a current the continue our backed and market. excited the to be powered to within measurement currency-grade details teams some in drivers, impact provided coverage growth by TV our more by which of the on believe retention believe converged on I on CTV are We context development expansion. and independent call future With ad and critical update grow what to the our updates the and of volume now provide complex of server time, and and make and we talented profound are business. a share will Like our it clients build in four to industry, upsell, we we geographic I'd product these client-based last and broader conference dependent

begin Innovid eyeballs Let's continues linear of and the from to volume with growth. CTV. from spending to TV benefit movement

Our according CTV to serving allowed data. and market CTV has innovation on year-over-year growth believe the to surpass what we is personalization to volume e-marketed focus XX% our impressions of video ad

NBC pleased partnerships We and CTV Innovid bolster to measurement program. with as Universal, to position ad-serving our long-standing who have in partnerships in to continued have named the certified are partner industry-wide expanded our invest certified leadership

XXXX. behavior-based storytelling sequential as behind Peacock's selecting capabilities to of platform new enabling our infrastructure the QX addition during In

category QX a auto recall, we investment of XX.X% to in As the 'XX. that you seeing to in recovery similar of year-over-year that category may I'm saw of of automotive happy decline in the by we in level for are spending signs reported volume we very QX report XXXX. good a

As optimistic future continue terms spend. issues about supply to automotive we resolve, in chain remain category growth TV their of the of

adoption personalization was and interactive, engine, fueled by Our product creative of second growing growth upsell, experiences.

mentioned, we expand our measurement upsell core also platform. As become will we TVSquared previously our and into driver a continue we offering as to product strategy the believe of integrate

engine, Our third geographic growth expansion.

of international Our on a expanding is Scotland. our to last while across of but our and introduces QX in client our addition addition our measurement portfolio TVSquared the least, ads partners not clients definitely outside of [ph] Purvi XXXX. our international expanding year-over-year international Edinburgh, our through step The markets in north of of XX-plus as product critical grew a measured TVSquared the U.S. base. in footprint revenue And XX% expanding a based host center geographical footprint portfolio, to development limited

loyal converged General as within for unbiased Spencer, of in U.S., The us advertisers of list growing a the onboard the of video with strength to continued our who Motors, evaluate publishers their core one we solutions in customer TV the pro. to to Innovid Innovid opportunity When set a largest asked Emerging business. the build efforts. platforms. to video clear as strong extremely many Innovid realize our I'm pillar independent for of need strategy, the TV support of and challenges partners, space, an set and XXXX, advertisers excited path includes signal also we is the partnership towards to well a that scale. Partnerships forward-looking at sole allowed Innovation Partnering advertising evergreen Media across solutions and opportunities. Motors the compromise about this for we David chosen QX to forward an vote, has we and is on don't look to current began on Motors, the Motors, that During to our of Innovid's General innovation converged our TV with you of General advanced advance as base a underlying growing General Manager and share build

Identity around on changes point. and IRS front, a substantial updates a seen the and do the privacy, business we this impact at material impact On anticipate from not have ongoing not our IDFA

summary, customers an of viewership infrastructure Innovid measurement advertising-supported what identity offering customer approach growth. with We of personalization Innovid's phase for leading Innovid continue help we market-leading the our believe and infrastructure to driving our through reinforced our accelerating and our identity and CTV management. secular universe sets key, manage next capabilities In to combined expanding trends

who are detail of regarding financial into performance Innovate. to optimistic We now expectations. go extremely over the it Tanya, will turn I'll about Tanya? and greater future

Tanya Andreev-Kaspin

Zvika, and good Thank everyone. you, morning,

of CTV results XX% with and In from our XX% $X.X basis. TVSquared quarter first year-over-year contributed February the increased desktop when XX% grew excluding first million on demonstrating revenue, growth. of year Mobile on of start in respectively me acquisition Revenue of year-over-year. TVSquared, XX% before by of million excluding full quarter quarterly attributed up XX% closing to XX% revenue total Let XXXX. the X% XX% outlook. year-over-year year-over-year discussing to nearly grew and revenue, revenue XX% QX was a following XX% this an XXXX, and XXXX, XX, contributed TVSquared. review as-reported $XX.X

converged expanding CTV for continue segment our CTV share of We the to for TV mix And expected offering. outside account driver. primary measurement of to to revenue increasing the our in growth be our an revenue

impressions video by for XX% volume. increased impressions for of [ph] XX% for about Speaking and Mobile and year-over-year volume up accounted and QX video video served XX% XX% XX% served in by Innovid QX from Innovid. impression in accounted of XX% all grew CTV accounted XX% increased XXXX, desktop and XXXX year-over-year.

the to XX% the is growing In XX% main on revenue breakdown, total terms U.S. of reported contributor and accounting of basis. revenue, for as geographical our year-over-year

regions of Our the of U.S., APAC, LATAM the XXXX. of up XX% currently represent revenue, revenue total the outside including X% first in quarter EMEA from and

Our on year-over-year reported total international XX% basis. an grew revenue as

aim As on focusing CTV poised growth growth. expand to presence, geographies we part global accelerated of strategy, for our our

was this amortization basis. a After first from included reported costs. high margins margins has to on XXXX expenses following onetime to XXXX. remain gross financials deSPAC stock-based at million. in quarterly demonstrating a our of profit the QX TVSquared Cost decrease quarter $X.X were driven completing Gross operating and gross slight quarter, million, growth XX%, the million was revenue date. quarter to acquisition operating a $XX.X the compensation, of QX expenses for operating the in increase XXXX Total in transaction-related intern XX% first of for compared technology, primary of $XX.X a asset Moving in $X.X quarter acquisition the a the the acquisition-related by million the expenses related the year-over-year expenses. first TVSquared attributed of Approximately XX% results year-over-year of to XX% the operating reason margins. in were in slight intangible in of decrease of inclusion gross

of amortization. was on from our margin, XX, addressing to the EPS reported outstanding first the March new million continue operating decrease common and increased first goals long-term million. public excluding was as $X.X stock expenses, in March of a negative was in and quarter or we million, marketing, invest included acquisition sales basis. XXXX Net EBITDA the TVSquared to were quarter and EBITDA dates of negative X.XX. by year-over-year XX, XXXX, and as million X R&D sales growth deSPAC talent increase transaction acquisition-related of a creation, compensation, for and value stock-based support operating loss in From as well representing to R&D XXX.X As million our expenses was XX% losses and the adjusted in XXXX, expenses QX negative G&A expenses attributed XX% Adjusted $X EBITDA intangible on asset operational The adjusted X.X marketing million driven needs in company. of the as total $X.X an

Following margins. business high with significant core model operating of our and gross the TVSquared, strong acquisition remains leverage

from The XXX.X from equivalents XXXX. as After balance of our price on to XXX invested defined ending for XXXX, and March December stock the acquisition balance to million sheet. of cash Moving $XX.X and balance and cash adjustments subject XX, shares purchase XX.X agreement. XXX,XXX our the the down fully purchase cash XX, options stock was the million as for acquisition in sheet Innovid the our was million certain company, million, TVSquared of

would I like our go guidance. Finally, over to

we of quarter progresses. year expected. grew our as the the And in advertising faster The economical visibility first improved in hope broader business environment remains XXXX, current macro we outlook market see year the the to than While uncertain.

forma quarter million, on to in XXXX, growth basis. XX% XX% and be of to growth For the a expect the on second million of revenue XX% $XX to pro the year-over-year we basis to year-over-year reported XX% range reflecting $XX

this to contribution We revenue the quarterly $X to million. exceed great expect

adjusted expect million million. range EBITDA minus We X.X minus to in of the X.X

higher following second guidance. synergies the the we the reflected our While realize to EBITDA and trend we in this over expect quarter ability acquisition acquisition TVSquared anticipate from the in expenses quarters have time, operating to

including pleased are to XX% reflects basis. For revenue. to on XXXX, the are XX% a revenue XX% our year-over-year growth a to and we total of year-over-year to million, growth be TVSquared we increasing the in XXX This full million guide range that year share expected of forma XXX basis reported on XX% pro to

We to contribution full call provided Zvika hand the back remain in revenue the expect I take to guidance over great remain exceed EBITDA to to and your million. expect excluding annual We positive. year, previously continue confident this to the to $XX would adjusted With our that, TVSquared to for like questions.

Zvika Netter

Tanya. you, Thank

like opportunity and for strong, solid customers the joining line benefit to this business around all growing to performance this despite the Innovid and on thank for to open forward we Before We dynamics you macro TV of questions, I viewers the the call. us would continue to take started to plan push with world. year energized all our uncertain the and

go And Again, for acquisition ahead. our into and confident time. further measurement expansion in please your through Innovid, we it with that, expect we Operator, of the the are converged the our broader to propel growth. We line TV questions. open you market will for thank

Operator

Instructions] the your Please of from Boone question. [Operator Andrew Securities. Our proceed you. Thank with line first with JMP comes question

Andrew Boone

thanks question. And morning. taking my Good for

in consumption to impact of impressions can less change there terms less there's off, can consumption from as reopening it CTV secondly, per whether think to seeing help of the the impressions. about guys you Just start so consumer the any consuming Anything CTV see your talk Thanks of just you digital some the much. digital then [ph] reopening understand or us peers on guidance, of the and in any overall terms highlighted? relates user? Ukraine about watching to talk video? you quarter? within Did of and and linearity invasion terms in overall, of about other we as impact try the Are advertising any to have side And you either

Zvika Netter

you, And Thanks, good again, morning. everybody. And thank

actually. terms first this and the recovery our with very So in to of to A seeing expectations do that in quarter sorry, I -- the year within above industry what auto mean, started question the we're strong the lot even the CPG. my first quarter, of we and excited we're has the

just auto we about you year-over-year. - reported, of before the in sorry, And we a about saw now flat loan it's be If drop. XX.X% and as for drop recall, XX%

which, So it's drop. lot, a out after it while equal it's to the QX a of flat 'XX, lot

to also one absolutely CPG side, believe right, consistent, uncertainties how forces. dynamics, work back people to, exactly cannot of the from we be optimistic. predict evolves, you we're coming lot recovery from and as home to And that seeing spending time, that of and So are but we once geopolitical stay and either the at macro still, alluded more in a work area. economical at time And to outside it causes there's same different us

no delay ads, in right? or the spend So to revenue explain, - by driven not of necessarily way to general. there's there's less it's directly who just So is volume the connected time the in time no is specific people more

spends somebody advertising sending an or more will Netflix, on you with impact less example, see For not industry. the time time

seeing talking we're even So services themselves opening like more and if up. more Netflix anything, Disney+, it about

the it's the portion pretty certain that for our of available are a advertisers clients. to amount of buy. for to that, availability So inventory we significant have of ads And

the buy, So revenue. and we inventory more volume the more more they the generate

continue the X and up years move right. will we linear shrinking, into constantly all from this XX budgets would know, everybody on that the that our impact can for level within that impact thing moving the is say - trend for And It's expect up the CTV. until revenue this main CTV. going to dollars of So that least or for into TV to to I spend CTV call not down is as at

Andrew Boone

advertisers know the just last can I developed, fronts and guess, is about And change new Can if talk with of viewing CTV. whether were last the of this advertisers how week. they've few years over Tal, you at sneak how your in in. kind conversations I terms any there and one I are you more

Tal Chalozin

for much, Yes. so Thanks question. Andrew. the you Thank

So obviously we time. taking side of the a were to take first not very part we're new in CTV bigger for excited but selling - We're part measurement specifically first in it. the of front and the market and all, the IB we're bigger in media,

our that now look when with everything we're was feel marketers, is marketers than holistically an I platform, into thing in that was do and we spend. So that clearly years, question platform. answer is it longer their This about your the order anything the hear and measurement do more and a emerged excited is I what from for the participation. like acquisition where the TVSquared place emerging main truly the many quantify a CTV look we no for emerging it. CTV we're, cross-media very again, at have to How the talk town, of in good To

Andrew Boone

so Thanks much.

Operator

ISI. comes proceed Our the next Khajuria Please of Evercore your from question with with Shweta line question.

Shweta Khajuria

Two you. for Thank Okay. please. me,

First opportunity your out are the talk Help launch that one quick. second is there? perhaps where that us with measurement the And growth of with that in the competition compare you you what one and about is, as are adoption drivers. could offerings the accelerate will of how you measurement that one today, fairly called you your perhaps and out

light. in that? what You margin Thank you did address please coming repeat drove you. gross Can

Zvika Netter

Thank good for Shweta morning. you, joining. and Thanks

- of which as said take to the CTV but a same hired to and started to the ago, how lot television, converged through exactly, a whatever, for question, bet came largest Andrew's at people ago XX to not can is investing from on team while. what what and brands on tailfin people, actually, household, X measurement A is time a in we refer insights. going to So looking our But measurement, not advertisers the knows going the but they're the very just we a moving times large at year We but for same in means CTV the same Nielsen X, made I and not customers, take linear perform. nobody spend a content, years of just to same earlier, that's from are But TV looking CTV, and same all do people, as device and future CTD as is we different big the the money time, - long see, measurement linear it's to obviously, that. the you that customers physically going audience on to infrastructure. world realization our years,

a a signed more after one solution later, we So the with going X.X, go That IPO, [ph] this a almost and cannot in go and through a in we do practise a it And months out public was our we than closed. was own development actually to both to we're [indiscernible] we two way for linear part have financing, of ago. platform. and harmonis it we provide fully have year And and X single backwards days literally now TVSquared CTV clear and integrated acquire company. started and we did also. the and

first So quarter acquisition would TVSquared, in the of is our the you billion opportunity, say, went into And the in year, we if that future than probably there's more or TV obviously, of add $X.X acquisition mentioned, investment measurement. the as of immense. I

of of not sure over the Nielsen So opportunity. that by massive one kind aware there's everybody thinks here And takeover is only we're I'm of a the PE.

delivering measured, I the So how for believe is concept future. TV dramatically paid digitally how in is TV the TV be being disrupting and will of

data have the flowing ad will don't anybody over a because we're perspective, control a And have this a for leading believe players if also be it. unique, one we - full There's linear We're future one, ours. XXX% be to there extremely We in from the don't it And not I just in money we and at the together buy we space. to the is I actually several which believe that and have we that now, not exhaust we're and that, data think to server, provides acquired measurement. We is that's this. we're lot sets that's putting succeed the CTV and sticky it obviously, the there'll measurement past from an all to So be it. not product a We world. the of we with only position, set is one we'll why where seeing coming What's measurement need one, don't already think in number definitely TV sets. be get number else. companies need be TVSquared, of to the win

one. gross So that's take the want question? on first may you margin Tanya, to the

Tanya Andreev-Kaspin

it. address Zvika, can I you. thank Absolutely.

our as the First of you the mark QX, it's of in all, - could a see, GAAP in I did previously. gross change on XX%. margin our What margin address basis gross

perhaps Following the what QX. the see that specifically on gross see strong. acquisition, seeing important the gross that the profitability related reason accounting QX following margin, technology. decline the and to remain for And in primary We in specifically, intangible is mind the measures margin keep that certain road, on our impact down do $XXX,XXX are in mentioned impact QX that you're profile of I margins acquisition in to gross included the asset amortization TVSquared you'll

Shweta Khajuria

Okay. Thanks, Tanya.

Operator

Our comes of Please the from next question. question proceed Capital. your BMO Dan with with Salmon line

Dan Salmon

good morning, questions. Okay. Great. two I everyone. have

maybe address pursuing First, IP And measurements, we deal the advertising on it I little CTV missed against the bit the expand but Zvika, Innovid people but bummer, many quarter second, it I'm closed a more it pursuing in but IDFA it other that that, headwinds to lawsuit just and include a during there, moving clearly broadly, sorry matter as you privacy patent you're more? doesn't loss as impacting be infringement. laid does was following TVSquared then broadly? think address on restrictions, said, you you. very your you filed does ecosystem a of not comments, day IP of in opportunity I as if out how you see the Squarepatent was that not in the that if out and Maybe Nielsen to TV the already said

specifically surprise? But know litigation, was you tell can about Anything whether you could more limited a it comment was little can As Thanks. be active would whether amount always, you we us you that it. bit add great. that regarding a expected, with

Zvika Netter

the infrastructure to update take related our to you the person Tal, patent and being to IP the and addresses do Yes, CTO, else question. want right co-founder and talk anything the [indiscernible] about Tal? the

Tal Chalozin

Sure. you, Dan, for question. Thanks, Zvika. Thank the you, Thank

changes that least server as less So don't in changes in about measurement, noted on IP ad use is are impact happening your identity around our and see IP now definitely To remarks, that we we happening at specifically of we products, any around because right privacy see address question Zvika other don't that. or the [indiscernible] or his address, prepared offering. headwinds

leading the we're days a, don't However, on side. happening that of the solution, in with identifiers. we We're think - the changes early we're on is a working lot IT many And we together the pack on companies in alternative and the on address. that's an industry, on IP side the Trade anybody unique of Desk, that heavily any that on think already LiveRamp and alternative we're investment others

Tanya Andreev-Kaspin

the definitely me let it's a stage the competition. very - we the stick we'll the - not bummer and with deli a Okay. about within called by dealing life get life, continue with and process. believe life we got a And way, - very on to that early and question far the with in script, I are it's at

bit closing and is of closing, something TVSquared Just not was the best been alleged knowledge the patent. this do also good view process not validity question, that Nielsen definitely have and be believe we as that everybody and literally to in advised stage And successful. several waited the after after team think we brand action like we is team. for early have day of grounds Nielsen it I and both no, challenging right? your you that somebody the announcement. was the to to our to the Innovid reading, And new, very the did the We're complaint a will of everybody little - a and

measurement of Let's - as a the on contender - the to - back significant the future TV on this in look at measurement.

answer. the that's part think of I

Dan Salmon

was... That Okay.

Tanya Andreev-Kaspin

converged did. [ph] fast think server measurement the what I'm few the existing We will I believe unique measurement a they set stack. to single in for combination of months leading system were each CTV connected a with TV market only the a together is all the is this total fit in What the data to industry not at in the ad plus bring combined first the point, [indiscernible] very to other optimization, that combination month that aware very

Dan Salmon

say just on quick Maybe you follow-up one Would that.

Tanya Andreev-Kaspin

the fact with We our talk. finished

take questions. to So we'd love

Dan Salmon

just you're So new something out with that on that Nielsen... able competitive solution as would you would the that, be it to be converged see roll would that directly

Tanya Andreev-Kaspin

not us, may We're not on on we're they well, focusing be focusing them. -

We right? on the have largest customers, in world. are our of the TV some We focusing spenders

GM, largest General platform, one spender the to switching the TV was - DoubleClick of were way the largest U.S, if believe one I not Innovid. the one the of the in Motors, which Now Google on

there's where reason in. that that's the before So opportunity for a think right? measure, And I even comes

charge have and the fast happened companies. of either CTC. something when advertisers focus, on So but the We in that do the of things single of of if flow TV two or is to at spend, more every very and large the a TV significant XX% So a measure They XXX from scale over interactive through growing in XX% spend going That contenders first we a That's are delivering through this the and of our for U.S. not I'm the names side advertising more be on semi top amount does right? math things going our unique. our They we is for it's in the the lot of platform. massive of CPD forward, to any part accuracy the very connect right? data. you a you're year. have data that's impression clients, of sets, were video the of don't creating function And what exist that measurement not,

and for more it customers anything it's So us, what for market products get this have it's market, less telling our has get is it go else and the us. to in or creating plan They're literally are somebody about replacing need I that me. to that designing

we if way it buy it any in We want this We're hands. We they'll the money, like they more. focusing other We're not to to got player. the raise So or together. them. put we ourselves. it on it, And lead their putting

Dan Salmon

Very you. helpful. Thank

Zvika Netter

Thank you.

Operator

Needham. next your line proceed question Please Laura the Martin Our with question. of comes from with

Laura Martin

morning. Good an on first to to like up follow question. give Shweta's 'd answer there. measurement Hi, to

So TTV what that X comes to database next going also said you get But said be think is you digital. that linear integrating years bought the time, you linear with XX linear. to over clients we because to we're TVSquared the your to for all for

the does irrelevant TVSquared moving an acquisition to we're XX-year frame at implication, X made So because the to become world. you over by really, all-digital

Zvika Netter

Right.

I thesis So will I I'm not right? then take, it X later, smart person probably a we years on all do that call XX%, fast the people on the better XX to Innovid, it's XX%. have than would we when of probably hope years, this - future how we're started

XX, XX So XX, it's years. which going good, long time, to is X, a take

over theatrical, to There's television over it now, moving for text over world is including linear of a IP. some calls IP. video, the technically, to move like today, time. piece right reason Most to believe is an analog stay in it format long almost world will by any voice at [ph] in will of stay brokers no yes, our like digital. definitely the the point in division is But future, transition So all I here

on So long, from and long that's the very most a But built worried the time. a have absolutely future, in boost some will - are the world been of legacy right? all - going guess to companies the take is revenue that injection about the digital. theoretical that And of perspective, on that I have

we're almost future was on think you this meeting So moving. we decisions. We're the the to We how it to provide about CPV what's help bridge. transition idea our us what smart a saying, guys, should our should side. move, the impact solution and a in still that to customers as make of needed have of in that move, budget make XX% the and other What we we

the of acquisition. that's the so And purpose

Now some data. of market. not buy it's in licensed just is really in terms - also the of the Actually, data

Innovid of other able data. much sets, together, sets of like connecting not data We put television, data was it's the piece, data the IPs, TVSquared IP, was understanding outcomes being the and the to household as about data demographics, as analysis household talked the business without effective. is but which and understanding right? So third not this is this saying understanding outcomes, then extremely was core and but important effective, So

be GoDaddy TV a television most We advertisers, which think have customers question ROI. about Peloton, performance-driven - the I lot of we a are and will like like very eventually, which them

we're across we're components So outcome that we're that getting implementing and linear CTV. plus getting the now

this in see you demographics and decisions your in what's that's what which considering to creative when, full if works, allow our work. today, doesn't fast move picture how the customers mind, make futuristic. budget, buy, you smart what That's what and So creative where to about to market this put will pretty

I'm acquisition. going on we're get very the confident this I So ROI to believe on

Laura Martin

P&L second you That's your revenue Great. the does political half of Could upside? Okay. remind us impact your the in just helpful. year? political How on the of affect

Zvika Netter

not we're actually, that political that the pulled little Innovid, say from we have. on wouldn't the for Historically, the election, even last focused - from slightly back we I

and through is performance, So social focus obviously, We're on us. that to on for because it's are some always political focusing visitation, website see a We huge advertisers and largest app TVSquared that. may it's and area of TV revenue stuff, the all not acquisition related off. the downloads tracking

through or on see say But some banking significant revenue we're not counting the to So expect measurement it. that I or piece. would it's I

Laura Martin

helpful. Super Okay.

thanks very Okay, much.

Zvika Netter

Thanks, Laura.

Operator

your Susquehanna. Our Instructions] Patil Please question. next proceed with the Shyam of [Operator question from line with comes

Shyam Patil

a I couple questions. Good Hey, guys. morning. of had

Was you're what kind XQ you're for less issues the sounded curious there? assuming your XQ supply if seeing your maybe of you that on curious you in your question, that saw And call, could kind of it of comps Zvika, on that CPT. one, - recovery measurement. a of about just had on else? and chain Was seeing I'm First then headwind just talked you second of in there. prepared I'm something kind like what Are auto you year? guys first it remarks from issue? elaborate rest in a and the

you other kind have about TVSquared? the And think that do advantages take think But players? upmarket you combining you of this on with that call. kind to the you of already do Zvika think with quite guys think move said kind - talked kind a you of your some that times and from combining shares you take do move bit what you you unique happen? that larger You of you. upmarket their call, can do How can quickly in data several given of share gives Thank do ad-serving, sets, measurement the already

Zvika Netter

Shyam. Thanks,

see, we So on supply - set can obviously as the passed chain, this the - since and is guidance. we you

progress that recovery. QX faster is we anticipated terms in than the we saw So of in

it, advertising in something not is brand It's the clients control senior we spend less our have the This industry. on right? As to shared within very that in or largest decision executive QX, we close of more right? marketers, the TV auto

of a significant in XX%. QX saw So drop XX year-over-year almost we yes,

from - that to back moving So flat. to

time issues we chain So was CODID you to remember right saw QX if but of the from pre-supply that QX category level still other volume time. XXXX, in which that similar was the

in years. this last of is the interesting a kind So environment X.X operated we very

of So QX. that auto are manufacturers definitely back terms communicates side coming the spend a the year to of that on of optimism last in similar levels

second a take it. predict in the cautious that aside and actually the given now, evolve different will we a a supply trend, continue to the environment, line the putting time, same right, chain, that live have rest right of for we to how year it's hard environment all from can at perspective. look as you that At want If macro be it we and continue to you

things monitor specifically for and trend you that's very, we why this kept the two our we'll continue to very together, positive. closely, category, guidance, put the So auto if is

So Similar large on slightly scattered. CPG continuing that supply some CPGs the dramatically to QX. CPG, in that's less, was more dropped spend some but had chain. continue but We to

- And but So a companies, or of not, saw there, the products? the measurement mean component, recovery everywhere. And across upmarket, in the just say course. more the in we to terms of in then type innovate what of we're when basis. of seeing the integration it's brand-by-brand board, other definitely you Auto type now in was customer you're clarify, whether of also, clients, you perspective terms [indiscernible] we're you maybe with of what an you saw do like almost said this

Tal Chalozin

Yes.

the was TVSquared focused it's just get would of And - a move and curious kind larger combination publishers. it more is large competitors SMB-type your to of focus strategy understood the your on of advertisers was So the way on some there's and of press, now part the advertisers up market... lot that I largest if if I

Zvika Netter

say Absolutely. That's XXX% two move. of the would things. I

and performance created about TV brands there's to run my with to not like capabilities advanced it's very like year because with I'm strategic needs existing known customer are a segment the the who They're the someone and head think continue, the so of existing base that's less customers self-service So and over said, continue business, a also details that accounted which to most from to maybe sell continues platform rest ROI, type it, the as will growing a side, measurement be to you advanced perspective, expect in is the are faster branding on more team clear, customer see business, all, the performance SMBs in that on to First share be to very Innovid it's, like segment the By that's to the right, market in we also it, Sky. performance, going for.\ and generating a existing side. but help, advertisers. very, faster immediate [indiscernible] base. looking and to for less with a the core TVSquared if both you and TVSquared, system they're clear Spectrum going that than and the from every customer, way, set self-service grow - of is customers found

that's and own the is What So also take of campaigns sales there from doing our performance legacy stuff, later focused old This last our the large point, also years. stuff To on publishers the account the it the That measure We Innovid CTV the X, is all of public product. to customers management XXX now Linear sharing everything all very we're MVPDs the using non-organic we're on X, X TVSquared information. platform for move. we coming which training customers. team your top is the their XXX% shared. and the the are have for business. we're XXX%, already advertisers team, converged is to

of linear the the all customers. we same So have data

player was So - be a you question, could can advanced imagine into measurement a understanding, and this people right? what in there. not taking we now, I putting TV speak. this space, exactly we're space play, we're was That's offering. doing very believe compelling including what we right that were that's Obviously, else of TV doing find your the That - and the together who to everybody market, lawsuits, as

Shyam Patil

you talk core on are I mean I with Got about you see sneak of if AVOD, different more, it. their Netflix, I ambitions could lot in. announcement just you one had it things. a - what can guys

your CTV you You guys? vantage kind point, for means industry? gardens it What evolutions. think overall Just means many walled in think and this your of do what you would do seen And have the you many, from to love for guys thoughts. get

Zvika Netter

AVOD everything love to a the take known would SVOD in on I'm you I between. would and Rockstar of one sure this speaker topic Tal, as and

Tal Chalozin

our think is, on very much of the In aligned first part in revenue with same future And a doing way obviously much. media battle fragmentation. that others. like strategy platforms this well announcements on very the you think dual an of use Plus of I used the be that the be and to Hulu we to streaming that package allows is will will television and HBO way the - and to is think bunch to Netflix, We that a extremely were second enjoy can much. to and introducing you their it's innovators way technology of the a be are Disney model tremendous Thank same. ad-supported. And essentially ad-supported and that that that all, good and are platform marketers about regards very content I job create Thank recently combine big that other

are players with inevitable. very aligned more is our much So offering. This

to those personalization - the We this and with on are think see with we much thing, Plus we more aligned companies echoing experience advertising. the viewing for players, many add that. experience viewers part. as innovating maybe think our invested out Netflix will for with of This would that specifically product all is products, those been in really and ad going what DC very in investment and one historically more Just coming much user better better advanced And around we've doing years what user be that. with with invested creative a experience in tailwind great in

Shyam Patil

Thank you, guys.

Zvika Netter

Thank you, Shyam.

Operator

the session. Zvika now of Ladies and and CEO we Netter, question-and-answer over end have remarks. for I will to reached call the closing Co-Founder, turn the gentlemen,

Zvika Netter

you, everybody. Thank Alex. Thanks,

passionate the new see business tech far new And as strong. commitment Innovid, and phenomenal comes continue innovation us there to have of as you as many years, practically coming from some and X and like I year of relates recording support in years, say the there time excellence everybody business and question. thank us. ahead a strong next really see would partners. [indiscernible] internal great KPIs, journey advertising them bullish to trust the the believe a be what to new This the I of affected the - quarter. in we X, to but but all, of great coming as can got the forward a our I and is for product, teams. and one of - No partnerships, expect very of to looking teams our kind situation, is there's part and more world most lot that Innovid downs. talk through and of day moment the announcement, Huge I much like of best is extremely strong here. to our months, and really a We year. months. believe it the On with heard off, customers, upselling, the you matter you winning in also the have will XX as XX this I'm all We in sign this not we now to else their note, for to internal personal driving I started all the about macroeconomic and all a in to Q&A live retention, two thank, your logos, the is day ups that's or for KPIs, most, of lot here our this a take obviously, you Before from first

a So so you Have day great you. thank and a so. Thank much. you lovely weekend, and

Operator

and you This lines your wonderful Thank may today's for conference, participation, concludes this have day. disconnect your and a time. at you

Innovid (CTV) 8 May 222022 Q1 Earnings call transcript