- Earnings call transcript Q3 2022

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Operator

Greetings. Welcome to Innovid's Third Quarter 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. conference Brinlea the Relations. with turn now over Johnson to Investor I'll you now Brinlea, begin. may

Brinlea Johnson

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

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

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

Our historical are performance. necessarily results not indicative of future

give our assurance accuracy obligation can the by as no assume no forward-looking and update to of them, to except law. required as As such, statements we

discuss joined call in call the are will CFO, over he our the In release believe by for well these available financials business Reconciliations begin Zvika should and in measures will useful supplemental and the which found to will appropriate our Innovid's who where references measures, the non-GAAP SEC. on a not Andreev-Kaspin, addition, GAAP corresponding a financial earnings will we presentation our can Netter, to the and information to be to as in provide of as Innovid's update. discussion our non-GAAP and non-GAAP We the business turn use today to managing company. GAAP our of measures results. as considered certain be earnings our website they who Today, measures filings CEO, include investors. addition the a substitute with with Tanya Then the Co-Founder

CTO, be During will session, and Founder the joining. also Tal Chalozin, question-and-answer

of to the Day Netter. the ahead. look first in I would details host planning of to section the to City. New Investor And York Please highlight November with Investor like Zvika, that pass to XXXX, are call Wednesday, I'd the company's go on website. like over our we please to Lastly, Relations XX, that, Zvika

Zvika Netter

you, Thank Brinlea.

XX% thanking military their families service. basis. XXXX. exceeding quarter to reported the Innovid results And EBITDA course the start increased break produce in accounting for $XX.X Delivering veterans guidance all and revenue third expectations. the in TVSquared high-end strong for business, me Day. Veterans as the revenue and of Let by our Revenue Happy the to of on at by CTV million their third continues an XX% quarter. records of of excluding for year-over-year

net range of We improve to the loss negative in post-merger margins the a also exceeded generated a proactive positive have of of our This million. taken expected breakeven. to A EBITDA million through $XX.X synergies. we $X million to testament measures $X.X adjusted

deliver ability and We continue are will to despite growth business CTV top-line converge our We the ongoing our to our to due position pleased in economic confident leadership industry. uncertainty. with TV broader feel thrive

gamut streamline TV for compliance confidence believe to on workflow Peacock volume relied tools Per delivery CBS the infrastructure I types. base business. independent expanding is focus next within plan the drive TV to Disney Plus we against future promise of and in Disney these to a show of power properties the its rise the our well partnership now in biggest deliver TV partnership of new the working including to updates and be implement across digital. creative impact. In empowering creative believe the reach provide demands specifications. existing growth, This growth is to unification drivers, delivery, This to software launches across of net that of of This dating the Games, trusted with to past of time interactive scale supported Netflix. quality it's landscape. and of concurrent again we launch, to app time industry. which platform TV our recent be to in major will of quarter, TV to for Brothers usual we four context the internet incremental highest During with we the full open and ad ability see due Discovery, that launch ad Family Superbowl, leading Hulu the Innovid I'd ad And ads to to initial we our levels provided and Plus, to retention coverage our on steel key particular, supported I'm of our tier. uniquely NBCU also in long-standing more during growth expansion when pleased to of across one X, as are: our what the and assets to geographic and call, commissioned during third biggest among the and Innovid the tech upcoming new automation share needs expansion. our providers the Olympic advertiser’s Innovid Warner converge earnings to deliver wave offerings achieve stance adhere platforms consistent and of Innovid delivery updated build basic believe partnerships the and We strengthening support ago. Walled December integration been upsell, quality advertising. recently Netflix, to has fragmentation. includes business. and In our leveraging like the introducing our the streamers our with this validated coverage, their ads state to the for with of continue to the platforms for of such the from publishers, on own few Disney market the Netflix is power decade drive back depth Innovid on suited to one over The of strengthened and and on by new technology the personalization symbolic the pace measurement some keep position as Gardens the as ads validation to current converge past have and Innovid for product clients livestream. details alike client the are call our We study, ad to and all streamline to controls advertiser advertising Innovid's Netflix inventory pinpoints According and allows across and

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across a global acquisition We're our a quarter, Let's on the the actionable directly forms simple, new global the And AstraZeneca, and measurement and to personalization clients large believe Family in view XX% advertisers upselling ad to Universal solution cross serving including by value is leading investment platform third now expanding power as offering, unify grew measurement our of advanced product delivery creative one data our unified InnovidXP, creative has past revenue integrated independent Diageo, move to and In of Since first American advertising gained the platform of add scalable, quarter, such In are in year-over-year. and including platform we XX% significant our succeeding their InnovidXP to our We not module. our the cross advertisers for place quarter to measurement year-over-year solve need third quarter, television. second Last traction InnovidXP. grew been [performance] in with in of products. market and we launched all several then, growth onboarded personalization huge TVSquared and the upsell. personalization engine, eBay, marketers. we has We discussed measurement the Parks revenue more. basis. launch Insurance adopted

consolidate a TV partners]. We We the ad also with serving and from chose the delivery partnership personalization tech U.S. long-standing both clients expand [silo our moving within away of Verizon, to advertisers one in in Innovid, largest

sales, announcement, the in Simply activated, are consumer a optimization were Innovid on to through creative reports. the based offerings significant their our an expanded advanced via customizable, NCSolutions. a partnerships recent Verizon of leverage Performance of campaigns. recent intelligently shift “Innovid in dynamic adopter enhancements upgrades time auto said Murray, personalization Steve unique a to early optimization intelligence for These third elements for personalization data And way DCO highly constantly Director capabilities. Innovid and been care needed on capabilities NCS you reality.” data our the understanding providing MarTech In debuted drive Through of Marketing, enable in advertisers combination technology advertisers iterate Verizon, has statistically the algorithmic on but which most data always Analytics delivery allow about. also enable now Innovid can KPIs to creative real everyday six of what growing adjust personalization, dynamic collaboration, at ad is this a our decisioning partnership optimization store to to make So revolutionary with recently into to quarter auto quote based seeing driven purchase support

SDK. connected Innovid component highly as more creative environment. personalization, platform key the advanced TV Another CTV, of commerce, enables and and in differentiated is such features the That

of This quarter, partnership. we of extending to SDK proud the years that we share deployment Innovid our are extended Paramount+ to

and new our bring We to continue products impressive customers. expect of to Innovid to list upsell

allow can running trader programmatic announcement of Trade said the platform. global advertisers to on By incremental both selected of advertisers successfully audiences on by powered Desk the In actually the string Desk content introduced adoption U.S. incremental have Steve favorite fragmented advertisers directly the incrementality fragmented platform, reach publisher insights platform. they third Data the we're Notably, the advertiser always other reach always UK household Trade platform to across across measurement quarter. now our demand that InnovidXP new maximize of Vice right expected in analysis. available to our automated access code. engine. EMEA, into in screens overlap, of were channels Geographic and analysis market. level CTV by TV globe, move now reach on the countries Innovid beyond these on beyond CTV activate and to incremental unique this for our we suite can CTV. to reach strategies watching of campaigns users Let's increases Selected President the within entities their the APAC a European in integration, XXXX. as audiences as analysis ensure platform the the and the on where Expansion linear Australia they making reach steadily their third side by and the channels advertisers highly meeting across reach enable Partnership the surface publisher publishers, are with in to as Martin, Selected well German expansion. analysis uncovering growth capabilities have CTV cross These by insights for campaigns including TV, measurement We is

our platform Now mid-market deliver personalization we base. references over our our and various to pipeline opportunities. this spanning Many grown of have also our let's a on new This But past call. expanding quarter boarded and of measurement. our growth throughout diversified course To we clients. client significantly advertising ad models of client pillar, base final move advertiser have dozen

inventory, to such to underlying closing, like Innovid to concerns market into of CTV moving search space. a address streaming product combination Amazon Despite see about to offerings. the football Thursday macroeconomic strength position economy. as to the night business continues grow, new ongoing I'd and and has continued the conditions Before better testament platforms our of

to are of positive economic the see uncertainties expect offline growth. we to industry proactive costs remain While and continue growth measures overall, to monitor the that to are and we impacting taking mindful advertising relative manage the

on the last XXXX, of and core believe we make converge to committed TV we our important the XXXX strategies, As we are continue into investments capitalize will to growing to remain head quarter space.

pragmatic we that to in of investment approach, efficiencies our both driving As always, overall boost we'll the focus business. remain continue on profitability to

who Tanya, revenue. and line call we top grow regarding now to While on pass performance Tanya? the go into to financial will focus detail I'll continuing guidance. greater

Tanya Andreev-Kaspin

everyone. EBITDA Already number results. year-over-year driven third on growth pleased is The delivered Thank XX.X our increased adjusted by to you, profitable quarter We're was an factors. morning, growth XX% substantial We Zvika million. good and by a of basis.

First, total XX% quarterly the TVSquared of revenue X% following on measurement, significant revenue. basis. the up XX% which revenue became revenue of And from for the of of the Innovid, in grew acquisition QX driver from forma it a generated pro XXXX. That's

revenue and serving services quarterly XX% XX% of aggregate. from personalization ad contributed total and Personalization higher XX%. of grew in grew the Second, year-over-year at revenue rate

XX% for from with Our serves XX% accounted increased for CTV ad-serving it to XX% all and volume accounted decreased all In Mobile impressions. video last by year-over-year. closely X% and impressions desktop impression X% all impressions of volume video and the volume ad accounted grows the for XX% year, innovate XX% correlates third of impressions impressions. personalization and And impression revenue by video of up platform. quarter,

We drive and continue expect CTV measurement ad offerings growth. our serving, to personalization to

The Turning and our is the revenue, in adoption is XX% reported on and breakdown, focus geographic our for growing innovation, of basis. investments. the as U.S. year-over-year deployment now XX% leader main main global accounting to revenue, and total for CTV of this to contributor

impacted the total on expected straightening the Our international the revenue quarterly of International headwinds as grew basis, dollar, is by of reported of continue which quarter X% were revenue U.S. also XX% the to from revenue. year-over-year through fourth year. the contributing

costs third post-merger expenses attributed depreciation, were and million synergies. we increase increase inclusion reported in in operating is expenses drove the financials, operating that quarter, basis. Nearly quarter, XX% the excluding benefited this amortization in It in total third to our operating bottom-line. grew of and TVSquared impairment in now, a costs XX.X our compensation. XX% an savings activated expenses install-based In of on the to Moving quarterly for

efficiencies critical, Focusing resource navigating optimization the and on uncertain macroeconomic is operating while conditions.

in and synergies, volatility million It representing overall primarily to synergies X will XXXX increase this operating investing expenses efficiencies advances third with share impact XX.X adjusted continue of X% in price. effect. at not EBITDA on impacted EBITDA Networks Adjusted margin. X.X In position headcount being derived million measured CPD third An we those operational of from synergies for EBITDA and the fallen adjusted addition due was was further our growth, innovation in while market in to this growth, result a quarter affecting that X.X post-merger leadership revalued fair driving have quarter this million will revenue of our an the X.XX. by space. improvement is million, in the These realized in of acquisition. warrants negative was of finance EPS company's was The third operational long-lasting and actions efficiencies temporary. quarter expense

margin As laser we're and a company long-term on focused profitability growth.

balance Moving equivalents to ending and was our XX.X our balance cash sheet, cash million.

stock XX, XXXX The outstanding XXX.X at total common million. profile, our we Given of time. as was margin are believe capitalized well we that this September

holiday Traditionally, and are overall the quarter like industry. I go guidance. our Finally, season our for the the would fourth strongest to

inflationary strong However, advertising full offset supply headwinds lingering this the of spend. environment, range current previously year revenue pressure XXXX. macroeconomic seasonal and chain increase enough create macroeconomic uncertainty, in the to for we're issues the year stated our tightening standard still may Considering

expect This XXXX million. full XXXX million to reflecting and guide the on quarter basis, we previously all growth of for Consequently, year-over-year better. minus to We in XX% X% for and our be a basis. We're to pro year-over-year year pleased an on or fourth million six forma reported EBITDA share to on range positive to basis. XX% breakeven adjusted as growth reported million goals of expect to revenue on XX of year-over-year shared range a reflects in XXX to growth as expect near XXX the the the performance to negative XX% also improvement XX we be from revenue guide year-over-year basis, XX% XX% of to of XX% that XX%

call to to million. over We of X back adjusted I questions. expect like you. million Zvika the in range the hand to Thank to With the EBITA would positive your take that X

Zvika Netter

for Operator, this line for Tanya, Thank joining you on the We'll all please you, thank now call. questions. ahead. go us and open

Operator

[Operator Boone of the from is Instructions] And JMP line Andrew first Securities. our question with

Andrew Boone

by that. overall it CTV being to down what's shares, back of to it's for the trying and CTV kind numbers advertisers CTV level is with I'm share understand growth driven do so on guys level below get XQ mid-teens of going like me you me, growth slowed market Google aren't feels taking just Or that's assumes into help organic online slower just than some that to addressing? smaller is

And how So Thanks in about anything 'XX? about as so us and be XQ. you you're helpful. on post-merger much. highlighted Help enact next to think then thinking share the cost you year, synergies would we guys start understand OpEx for

Zvika Netter

the morning. good question. Andrew, Thanks for

very we terms between actually XX% that's share, I'll we rate move in maintaining of and we're XX% and to logos seeing we words the earlier we sometime Actually I'll to day So not in close and say retention and of customer were share you. a shared. reported customers terms few was high the it, our and more Tanya, with core country more as in shrinking when

and definitely to CTV continues the that by we far increase. in So I share also lose continues customers percentage was our general win more grow. than would say to

much is will it CTV. in break will we continue As with through mentioned, every records over we how business of I driven we and year believe our

desktop. and grow CTV spite the see see or So flat you where the while a to you continues of mobile headwinds actually, in run decline

in way, As by companies I other the believe report QX. some

is year-over-year spite higher year, for of believe what marketer CTV, actually than is is we to which desktop have XX% the in the question. pressure more this if display Tanya, actually next immune other quarter, to in we in CTV headwinds, don't the move that, growing suggests So, can formats. anything overall is to mobile I to than to you third add know

Tanya Andreev-Kaspin

I category. our previously mention growing So strongest is remaining if

to compare desktop to you this If way. mobile, continue going it we're and and

On the And the felt sustainable the to the are operating operating very in be as a that's efficiencies, and are that we really that due actually expenses synergies in great delivering absolutely, mentioned actions taking profitable, our also were as to growth improving to QX. we results, expect following quarters. we effect proud,

Andrew Boone

on earlier we accelerated started the efficiencies headwinds of And and cost integration the year, the we from and seeing labor. in given we're process efficiencies, that seeing structure, already of this the and obviously, we efficiencies, post-merger TVSquared both organizational foot

are gardens, As obviously we what's we very see programmatic, wall attuned market, the perspective different have in to different the the trends good the we industry. part devices, a publishers, a very all the of cover because going on different verticals, of we massive

more it's So we're pockets definitely and of seeing than softness. volatility the softness,

do of we're see what that So between linear going the switch believe is and because growth will to the from growth absolutely CTV we constant to in advertising, balance to CTV. continue

timespan forward pushing especially model, eyeballs Disney+ pushing based with are Netflix the So is ad moving on moving, forward.

So the there's we're overall some we definitely spending advertising. all that in expecting as time, At know, to a on tailwind. as see softness same

in to we we easy make change Innovid invest, And massively EBITDA we need minimum. some innovation, monitor for ahead. at us we have of that sure four relatively So sometimes invest in we'll because two as terms QX, levers three, that constantly stay to we how positive of demonstrate levers it's to and with and can pull plenty years

Operator

is Shyam Susquehanna. Patil next line the with Our of question from

Shyam Patil

regarding related, do Netflix, in of guys see about of available And large new opportunity? of two, I the that the few the that the with how and either guess had lead for kind last And guys Or I guys. and one launch counter somewhat you're or your to sense towards the we kind CTV size that volume AVOD should Is advertising are to CTV? think first any on inventory. that think all then that there you attached services going comments seen we more could positive the questions. macro a all you, Thank you in question, risks are, trends that weakening more you cord given cyclical of? cutting it's how of could to be ship you be And do already CTV? increase aware for

Zvika Netter

much. Thanks so

a advertising to been opposed us. going AVOD, content the them was way definitely options We one, and always and when Netflix and you years have since definitely leading to billion is it's us, we for the exciting headwind always change. AVOD at anti-ad based And So to actually to the that model model said, that our industry. win, for people feel ad-based a for was Netflix of what's A want free But lower this it's has and to huge the clear ad very that TV make from know, based, topic of a this many was consume scale now to cost. cost happen. of $XXX part TV kind

So absolutely, this very positive is signal. a

none the there So additional lower doesn't increased it several go, happen point, it's necessarily based. In your more volume. us. actually it to actually prices, doesn't of are brands theory, ad To Netflix inventory, saying [indiscernible] whether them of because doing affect allows participate really benefits media but of they

it's classical So situation. supply demand a and

right set, the broader way, you now. But better you which budget is prices down reach set, target. if set if they're can can go not let's necessarily by So $XXX audience, the million, the are budgets a say

So that volume. more actually means

media should So up. see since actually, and volume And and there pricing. base, can no our volume is percentage you base, we're that on pressure going

So others it and it's linear Disney to more from and television people as see and television. you basically Plus more can connected Netflix pushing

Netflix around the both a Disney started of both people world. and Plus Netflix Another the Netflix benefit aspect. is global countries; with I lot consume believe of

major now, this, and then a proves point we But terms Amazon world future two that that for about powers like major for So believe power. what tech, to over mega refer where or And Facebook not push point we will it of footprint. one commerce, television to search, actually there major, the now we downside of just YouTube last of the platform global will kind of about Netflix your going all the be to least limited in social, big positive are have the a third at CTV only to couple. future television is was several until not the Google a that

see building of what's as type them our platform walled referred that that Netflix to their will Large analytics, we'll deliver all to customers brands creative, to some these is kind neutral, to may always their be all you of a gardens, their own platforms. of able own released while So need be platforms, spec own from these just aggregate able data for creative. back we'll And the all etc.

to So you Verizon, a you is or contact. a which and platform, if Gamble, or are single have Procter Apple of point have

delivery, creative other And exactly measurement. is optimization And Google. alternative do. we is For this the and what

a them. nature who's can competing with up and or have you somebody rather and efficiency Trade that workflow that assume Disney gates open So the or Netflix not or Desk, to is of with if Roku And it's better would neutrality. their that they

the line cyclical about excited bottom you to Tal, we're do counter the extremely question? So take this. want And of this is

Tal Chalozin

Sure.

that question cyclical view as is CTV if your people test for other economic pushes biggest driver disconnect agree to point think, support we the to with current the is I is probably status, call, think more that we So counter many people to of and with advertising that. it definitely

time people of Prime of concurrently. a of and subscription Amazon driving So lot as all streaming watching football number lunching Prime hitting the you're seeing highs night on Amazon, Thursday

your platform. events tailwinds great And us, this those drivers are volume where all based in viewers of the All of into question, mentioned, streaming as you business. is for a

we're Zvika businesses as wins. our wall important care about So leaning for very it's a as we up, we or specifically positive don't a towards monetize Internet, really goes and That's garden, an well, mentioned Netter volume us. open as point that who not everything, long

definitely CTV winner So could a be a even the we that downturn. think in

Zvika Netter

better a none which we who customers the of wins, we believe who, about, kind fragmented everybody. relevant, for care ROI for is a can point, care in experience media brands, and viewers about time achieve to monopolistic care with the we personalized, one And end environment going terms a more less is both course, of it consumer, actually effectiveness. more we get dollars, via of And, user CTV. for believe our the lot of the Just the we good watching marketers targeted, disruptive, and will the more television better better the be better and better, their for measurement

win, all. it's for win a So

Operator

Next question is the Khajuria line Shweta from of Evercore. with

Shweta Khajuria

Zvika, how you InnovidXP emerging in there attribution remind for I measurement please competitive could mean, differentiated is, the lot connectedTV. and us other of and a options are

market. on, advantage then the you you long So is But have capability that cover win in And scale comes new measurement of how you understood lot how data in comes please different why measurement? and because the second us is supply a would the households. it supply remind and how does take when

surf, be What to is can so with integrated the that process et Disney+, Netflix, you Disney+ like? So cetera?

Zvika Netter

this everybody you what's interesting acquisition immediately been for combination that the two these that's future to InnovidXP, it's from all really CTV, see overlaps, CTD And customers attribution to digital. right linear is not the of see include TVSquared our a both. have want because of integration. and feedback reach been just and IPO things, of InnovidXP available analytics fast lot get remind led to But you versus CTV outcome efficiencies, the our now, great. what than if traction, after to like terms of frequency did got the product between our the is that we own more was In is for It's to the years

already joint two version worlds a June, the combined InnovidXP the product. of as product. those world linear for the to this world So CTV adoption first great launched seeing was in And and we're

of, As you to market we whether it unfair when call go advantages, there's mentioned, is. I'll several kind

client of to that half of close all, XXX. a uses, top the First already base getting advertisers of strong have very we hundreds

large CTV these by all been we just advertisers So have CTV us for are working impression future, all years, the also have data, impression with we data. their five, backwards, not the seven

powerful. provider, perspective, chances advantage, leaving even either release workflow almost challengers mentioned, and time is the further perspective, very on to this the perspective, already because this we're or that to early hard that features those data reason rely a chance from one, efficiency So the systems saying you going be measurement no a that of have integrated, XXXX, to legacy integration. these, they're we'll seeing build that the I'm will we're already unfair largest CTV, ad building an I'm And winning the kind some the of are other platforms your market. like infrastructure, Google, we're it's to early that, and we've prove been adopters to in we the an very definitely, very for to not years are XX crush going like persistent market. not the myself combination, And from and going CTV an share And very overnight, serving we that we for be very, point, fooling focused. that is just But believe

So the signals between of for creative ad get combination optimization the creative, the serving, we the actually also we a just measurement, also the feature, measurement. and the is launched mentioned, optimization can

delivery, extremely any the This in the don't you a that the world look future, if and like the without we're in optimization now. measuring unique is CTV So the linear outcomes the something across That believe that there's creative neutral. delivering is components, doing other we is company right creative, constantly the and optimizing. media personalized measurement and

profitable ability said why industry comfortable for now not many, I to said, very that's So we that are. will funds, And would I actually those like also acquisition. headwinds are the companies you the the that's raise And that who everybody smaller say additional challenge impacting believe are an from then not perspective, we impact that many. and made we're that, we feel

also Tal, serving to or in you somebody significant there's economy, ad this and others? tries platforms who headwinds type Disney onboarding think be enter I very there'll So want about to of process either talk to like management. of do Plus the

Tal Chalozin

Of course.

So thank you for the much very question.

and component value we is a So very to the for ability the deliver give us, customers everywhere. our that of core Innovid ads

launch, ID in the them. team apps data that to. different and on quality with ahead we're that get And the the integrated workflow we aligning type sure making services is XXXX components needed. other of tools working other and one of is can of any that terms north device there's Plus that other we're any access and aligned access were and the of constantly or that we're of a the with So with of Disney And we're devices ad,

the going and plug, shameless our way, workflow, doing demo. All that don't said all is deliver earlier our Investor under in of customers hood, as a walled encapsulated to as place. any By ad very garden, other part open now those Innovid they next care I'm showcase internet, that simple our just and integration. distinct an in we enable Day, we're UI, describing that across we're of anywhere the want the platform, a encapsulated week very It on internet or to in what an right

Zvika Netter

believe to you Just the complete answer, long I it asked how takes. about

on you does the So what seven answer the that nine, released, is of them press in is, just of nine named our of I'll data advertisers they large an release based described, that which incentive the those launch customers. incentive example XX% the at Of are the give that Netflix serving innovate because partners. that those platforms the is,

that a So in from we them that no significant the and picture industry, force threat clear to definitely them. pose are we perspective to is

class us measurement their deliver can workflow to is customers for their to those it imagine perspective perspective. seamless it's ads to So make best environments in a into you partner interest in Netflix, from from a with

is and six at or we possible us, let's We earlier. as platform. beta do the platform, to place, because actually will conversation, partnering their the we doesn't post the of your sense least like you any much additional and we destination launch, workflow, that launch it to both perspective. the, on launch We where believe, should, of to the life say, believe be platform and take or part pose platforms months makes close sometimes And from any streamlined easier definitely of read dollars. question more there benefit be as a don't cost threat. So this scaled It to data as timing makes I their work anything a their workflow it the doesn't that everybody

important and incentive to talking is others. disincentive six but more part months So with do do timeframe, we're months three it their to bottom the line, it potentially to

Operator

the Needham line from with is question next of Our Martin Instructions] [Operator Laura & Company.

Laura Martin

to you top negatives and ask do when people three other first into give Shweta’s my side. question are they're not conflict or that is, the you? question want run the follow-up taking What three a on So XP, not I reasons adopt of top why was

Zvika Netter

Okay.

legacy GoDaddy, like, it's TV great are that will right? I performance TVSquared would imagine, you towards to the aside, hard benefit I more like, choose. Joke to I are that. is more classical new on I offering, because of need CTV performance. is to think, advertisers a from, going mean, harder or a think the calls, course, asked be, driving Of If need terms Laura, all in their kind came you're why us Peloton to the more it you remember, somebody mid-market, Because future which and entrants a clients in of going to think us hi, to is new smaller, not look, that first to be see of previous place which be of great more

And and to So phenomenal always track our to what X is product is that's XP large does this performance, the TVSquared it build And takes in an enterprise to six anywhere adoption go-to-market solution, to a really frequency. vendor, customers. do actual XX easily. from then organization to XX why sales to but between takes months you if with months the to have nine it's begin existing new take can relationship, a with, large the even can't you which three a

time the of from so release. that, have we So

time them use say, also, of almost So already Nielsen. I obviously, will everybody's some using it's

So already somebody is using something.

making clear new new are it's platform, about what from a the benefits this So platform. delivering

I that's classical like either relatively combined so very takes an enterprise they're time, a that new, the but incumbent new. unique, say relatively And would and also offering is the sale,

all wants everybody So talk adopters, now. about. to the early that benefit very that adopters classical right It's hot The graph something subject late and stuff. a there's is of

So in of terms of XP. taking meetings where we have hundreds of meetings launch since the

So in there's interest it. a lot of

cycle So and you there interest, of get is classical then is there enterprise the sale. engagement, sales

I growth more So we're XXXX. and throughout to adoption going the believe more see

Laura Martin

question you different vertical with in what's at are is, great position guys a delivery. look my happening And really second to then,

off we're seen from you you're us insight you looking at deliveries going on? your of actual And retail. So deliveries, these campaigns CPG? what's what's vertical your of going hearing days? on give I going on a, love about versus sort a just with and into canceled autos things versus your mix Could retail would Have pushed what's get when in mixed QX? ad

Zvika Netter

this, of more, I or brands, when time significant what maybe than the we look explain strategic. in is Yes, is our What you everybody on seen auto, industry basis. vertical tactical their we're remember, Since a that and colleagues shift, it something was at basis, from like be call from remember wouldn't the like like us the that's say, movies mean, wide I that kind something, probably have did marketing of even dramatic we it the would it microchips. like challenge And And efficiencies, cut. profitable. we then, industry it's the with type we I and of all budget issue our that, other and not entertainment we we COVID last are we volatility specific vertical see haven't a which mean. I'll scars seeing the very and detainment post seeing did, we not very all was saw supply just in

much spend large ad ROI, measurement, So does much to you performance and return the you more attention organizations, see to attention on more see quicker. to much to so

product, without if you look stuck you of you're it a spending be latent Even they for if headwinds. because the know ahead? adjustments, year exactly some in going large January, sometimes is with have February, nothing. Absolutely and see brand, year the how the it issues, very us will a brand enough rest So economical planned you have to the quick If she like the right. make gets to

and what and was decided I same more decide see use brand, be in will the cut maybe So we'll think another you this aggressive. be brand so to can vertical make, by the on budgets, brand opportunity and brand one

trend like So companies with other brands. other very a in but would companies. And not see like a we're don't significant I've year on seeing more very it specific large ago. we saw volatility from seen by reports I We say a

I think brand more on tactical brand be going it's by a basis. to

It's all Just in verticals back. economy they're hurt, more situation. all that very the all, thing. generic But were the general, they're it's

So it's this overall. softness

Operator

I'll question-and-answer to remarks. our we've the closing turn for At you. reached floor session. Thank this now time, end the of back management

Zvika Netter

answer was here. another I writing Okay.

and So we're you volatile, extremely the I we’ve take while future these as about interesting economically we're to X capitalizing time -- hear, future Innovid, investments on the just want the are opportunity and XX we're may to done for of last confident years. CTV, the of

to the ourself see our innovation excited is and lead CTV, future the discussed in at experience. for today, continue unpack the the falling back across which to be the talk way about frontlines publishers, see a this vision, we're we demo us action, to future But of means to the going landscape. service you and can a no throughout on -- for to preparing for product taking is on capitalize no how of of Laura's we at And CTV we're to want I the time I it's feel better is upcoming the it We going we questions market job all what and stage, we point the and So very to always live but the we're today. benefit in exciting hope very more discuss of going you to actually thank you about so efficient profitable week the for bring market, York exciting the complex Innovid an see on CTV actual join and and Exchange, interesting. year. it how the day New kind course, our to show is exciting and the going we next and product consumers also future bring to going hear We're we're Stock to investor our television to to client. by on the and behind. advertisers, as next

us like have great thank you to reimagine Happy customer mission we the all as who are employees our to Day. period, want this of shareholders Veterans base and Thank our during loyal to and I and a Bye-bye. advertising. always, dedicated to talented As TV continue trusting course,

Operator

conclude will This today's conference.

You participation. may for Thank at this disconnect lines your you your time.

Innovid (CTV) 11 Nov 222022 Q3 Earnings call transcript