Earnings call transcript Q2 2023

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Operator

Good day, ladies and gentlemen, and welcome to the Innovid Second Quarter 2023 Earnings Call.

Our host for today’s call is Brinlea Johnson, Investor Relations. [Operator Instructions]

I would like to now turn the call over to your host. Brinlea, the floor is yours.

Brinlea Johnson

operator. you, Thank

page regulatory I factors estimates expectations, regarding forward-looking begin, included that our call include, Investor business, today’s today’s and These this cause Before and statements events future in forward-looking to included and remind that from contain may anticipated Relations the on our statements release plans limitation, differ other made disclaimer pertains or those the the developments. may landscape, competitive environment to earnings actual results call. predictions, we without or available expressed you also targets technological objectives, forward-looking in could forward-looking financial performance, and today. Changes materially business statements by statement

performance, Our to historical by no as and assurance give law. accuracy we the obligation except results statements as no can to are such, not and future required our of as forward-looking of them assume update necessarily indicative

EBITDA In addition, EBITDA will financial include margins. non-GAAP today’s including call and adjusted adjusted measures,

non-GAAP in useful considered information We use investors. for provide believe not a be our should substitute measures and business these as measures our These to for they and addition the managing in GAAP of in website Reconciliations results. filings and their appropriate, measures on corresponding non-GAAP found measures can our be GAAP SEC. the were available to the release with earnings the our in

With Tanya Hosting to today’s session. call turn over Innovid’s I’ll CFO, Andreev-Kaspin, CEO; as will are Co-Founder who in begin. well Innovid’s to Zvika Q&A that, Netter, the as participate our and Zvika call

Zvika Netter

some updates highlights. Brin-lee, today. quarter thoughts the the I’ll business call thank begin and for and some all about joining Thanks, with second and you recent

guidance, our by on our Our CFO, Tanya Q&A. will Andreev-Kaspin, QX followed performance and details updated provide

for quarter, for guidance. we our revenue year to both full raising delivered solid guidance year and We exceeded strong report full pleased our EBITDA am are adjusted positioning prior us and second of XXXX. a I

EBITDA XX%. of We are guiding at to year adjusted are revenue increasing and expected margins full our least guidance

our revenue XX% we posted quarter, EBITDA million, QX the of grew and adjusted Looking at margin. representing $X.X EBITDA X% adjusted

our to improve in progressed our we profitability. As plans

we’re We’ve our of improving plan. Our results focused the are profitable evidence that and QX on executing now profitability profile the growth on company. remained

quarters, recent cost TV realizing acquisition the business Square, important in synergies integrating on making of have the and During improvements. focused we operational

the for since are product first benefiting suite of the and we full the time impact from post-merger Now of offerings. acquisition, the the expanding our full integration

up Our InnovidXP, measurement fuel revenue to year-over-year, offering, with our were of this in measurement growth top-line growth quarter. helped second quarter, XX% total revenue XX% the

the about growth. ramp-up measurement We in are excited

is second attributed reported to NBCU deals the in Disney. Some growth earlier of the and we the quarter with

Universal can We Our for ecosystem. of as linear our an partnership provide advertising built the with solution of metrics alongside publisher advertising, across to meet CTV’s and advanced actionable cross-platform in NBCU advertiser and future local a measurement position multicurrency unified further solidifies needs view marketplace. the

expanded we this win advertising. was quarter Disney on Another

their campaign We and outcomes advertisers, as addressable and need continuously both insights strategies. are Disney’s and across national enabling they to conversion improve the of and local website visitation giving the such app footprint, inform tools measurement

publishers world, are solutions measurement the intend the the which We of also piloting half. second largest one with we launch in to in

TVs growth delivered overall to shift impressions Innovid CTV We Turning continues with as benefits to CTV. growth. our XX%. up to linear continuous to

by our provide in CTV the deliver in trends is for our favorable our growth for technology specific to a we of challenging story. Even the critical because This crucial able part a customers. spend we were market nature verticals, of and ad of secular

focus our adding more deal customers clients fueled quarter having new products. this was growth Our relationship and were deepening on new activate business opportunities. great of new closed, by accounts also We cross-sell and success a as

and such largest some brands wins Pluto Otsuka of American Honda, global and the including some advertisers, as U.S. TV. include of new and auto their largest expansions Pharmaceutical and Our Microsoft, Mazda U.S.

stressing our leaderships growth. future also are fuel to sales We

hire Fahey announced President, for This in They our of Partnerships, driving Agency Dave Google. the be as strategic quarter, agency with an Vice growth will partnership. responsible we tenure industry at veteran

we of Revenue Jeff brings President sales also of Austin, years hire to of recently, the as Most Vice experience announced operations. close Jeff Senior in revenue and XX Operations;

Lastly, future new capabilities continuing we the are television. our power investment to in of

measurement. potential given where business to as of the path creative areas Two marketers supply optimization we’re more see from dollars help CTV discover specific to media optimization. AI work adoption and data-rich the and insights, inputting value through incredible

outcomes Innovid is customers. already for leveraging their AI to business our optimize power of

highlight measurement insight advertisers help media future and should Our be into actions they creative transform where capabilities dollars. investing in

on a use campaign, we allow within continue we the intervention. and delivering time performance created enhance where In our signals, see all our effectively generative is QX, optimal will to human numerous more Based customers real to creative in without workflow. platform to the in platform AI

the Path expected industry’s using to Supply dynamic impact ability AI. As measurable messaging media or our both have already positive and some of advantage footprint. efficiency SPO, Optimization, customers drive generative a our on of carbon is to take

and supply improve path. for CTV Our are the asking largest media clients partners our to involvement

solid in some impact And we platform are how will benefit and including key our on publishers the our of the In our summary, to exploring optimize can and are client alike. customers’ business a signs while assist by firming delivered some efforts objectives, market. expansion, we quarter, minimizing advertisers, wins planet. we also advertising encouraged the in further viewers the This and

television. and about future optimistic expand in ability [boat] leader We are technology for future our our critical a as to growth our of building

the core, products strong adjusted our the at our to by are evidenced EBITDA the results. bottom through flows line revenue As surplus in profitable

a EBITDA growth target on XXXX, while profitable We at XX% with year. of to will investments making in continue this focus adjusted achieving least margin

Tanya Tanya? the results quarter guidance. to hand our updated over now I’ll our Andreev-Kaspin, discuss call CFO, and to second

Tanya Andreev-Kaspin

morning, Thank you, good everyone. Zvika, and

range a adjusted the the margin. revenue As just X% delivered beat profitable to driving guidance Zvika, from initial off. top you of heard paying EBITDA been XX% by has We dedication our growth and

grew year-over-year $XX.X revenue to million. QX X% Our

As X% of TV. grew and our market, on force year total previously XX% revenue. this shared, we is revenue global in U.S. U.S. represented leading the focus predominantly the connected the

by declined revenue last to X% and of year. XX% quarterly represented International compared XX% in QX of revenue year-over-year

about revenue our measurement in revenues QX. XX% XX% segments, of grew product and represented total Speaking

personalization As up revenues combined of and serving X% year-over-year and were represented revenue. XX% total

ad As closely a and correlates personalization reminder, through served ad revenue volume Innovid’s survey our impressions platform. with

XX% all XX% impressions. and video and desktop by XX% all impressions, QX Last volume of by CTV XX% volume while represented of impressions. all all it XX%. impressions year, Mobile video video was volume grew X% grew year-over-year grew of share video XX% of and was represented

both Despite in declined in this lingering in of but last impression. total still trend trends, As fluctuation and quarter, and a we mobile continue CTV advertising video spend. gaining quarter’s share desktop we signals have desktop market uncertainty the seasonal transitory stabilization shared potentially to possible QX, especially reversal, expect

to quarter’s as overall with year. million to on the solution. implemented TVSquared of $XX.X in the at operating of costs $X.X measurement in depreciation, moving amortization process and compared integration compensation. overall The stock-based operating previous reduction million, Due reduction Employee acquisition by following to expenses. XX% $XX.X year-over-year Now post-merger efficiency total force reduction of associated million and count excluding The from were a and an increase synergies was of in hosting data throughout the well cost the last the impairment, $X.X was was expansion offset XX% end year. quarter. a initiated in our XXX, a partially reduction result as increase million improvement the last expenses, of reflecting a

was While XX% the and down cost million an of in revenue revenues improvement revenues. increased of of is year. This the QX, from last in from previous XX% cost by $X.X revenues XX% the year-over-year less quarter

we eventually level. And operate at Our we scales, believe margins are our margin will business constantly improving. as pre-acquisition

We OpEx benefited from prioritize in incurred TV and to driving Savings the while a expenses of and and innovation space. continuing committed onetime also year a invest reduction development operational in $XXX,XXX connected research efficiency, IPO-related been in to also the in remain acquisition ago.

that an price incurred market and book to from noncash in our we onetime compared given accepted used charge equity as associated not want capitalization does results. and the of goodwill resulted end. charge to principles decline EBITDA million. capitalization, market $XX.X generally value reiterate goodwill our current was quarter, impairment a share noncash This adjusted This quarter accounting charge the of impact of I impairment the

or additional comes cash equivalents We and debt liquidity. ended with cash last allocation, When was XXX.X loss $X.XX. share and was was on with cash $XX quarter per representing Adjusted a of million it our outstanding net available share to X% capital margin QX million, $XX.X $XX cash in position an in common we’re adjusted in the positive revolver. versus and our million a shares. with million comfortable million EBITDA count year. Quarter-end million $X.X EBITDA loss XX% negative QX $XX and

Finally, revenue in full for of to representing total and quarter year. the QX, million, X% the expect growth. to range X% our minus $XX $XX outlook third year-over-year million the we In

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

total of We growth million the full the year in reported year-over-year expect a guidance are on $XXX to reflecting and million, revenue for full raising basis. $XXX our range year to X% X%

year XX%, of guidance full least adjusted the versus at an our margin of least at EBITDA year previous expect full We X%. improvement

we encouraged year by when our conclusion, that raising and pleased second are results quarter full In our guidance.

value TV an the remain essential advertising is of to for committed and customers Our working creation for building our towards team technology shareholders. and infrastructure innovation to future

I are the and questions. session. to Operator, your please now Zvika begin Q&A ready answer

Operator

Shyam question first Patil of Your from Instructions] comes [Operator Susquehanna.

Jared Pomerantz

mind. starters, on could quarter Tanya, couple I the the outlook And solid on unpack don’t a for quarters is if you a fourth further? had third for Jared the for results. This Maybe you Shyam. bit little and for if just you, congrats

it of factors that sequential actually particular line a the the conservatism? any more is decline, of top at that deceleration, you’d so Looking a just highlight a there? outlook, Or factors bit midpoint in

you Shopify, ecosystem, is to the to an that, back collaboration would characterize if from going at this stepping over stepping And this do longer then you’re overall And back ongoing on you how a point? think with Roku CTV wider where commerce run? spoke

Tanya Andreev-Kaspin

the first Zvika I speak will take perhaps also about question the part. and second can

considering guidance, to the mention of As did macro first quite for environment. in half our uncertainties execution. QX we year that pleased the want certain still we we given providing I And guidance are with

or in are their different mix spending some we’re What back overall among spend. still verticals. brands are There not seeing to certain fully usual

guide account. our what that’s the for particularly takes QX, So into

results guide were for and for importantly, half the X% to considering to overall of overall However, we even X% to between growth profitability. raise guide year the overall full the the first able, raise year the to more

X% we the on add guiding second are which improvement adjusted least XX% margin, from in please? last want year. part, an is Meaning, to you at now EBITDA right to Zvika,

Zvika Netter

Yes, for sure.

Innovid the with will So been industry innovation, has now, delivered and we expanding reinforces a years of in the in and the we’re lot since very that encouraged CTV the by that’s be concept be XX content over personalization future television for IP, is and and future seeing where innovating interactivity innovation, advertising see of where around all basically going. will pushing

ability educate also. is to a and step people allow natural about this So with interact to ads the to

And of you device, have Roku built that capabilities about television commerce allows Apple allows have devices technology is Xboxes and so unique is also our across already that and these since as on TV, the type a you part fragmented, it technology TV but Samsung we across TV and and publishers. very

some but our customers, definitely, really us others technology the at take and introducing this interactivity of allows us like a this is we’re scalable sell market, infrastructure So -- this allow to techs. what of Amazon that personalization. to will the and advantage for and Roku scale and educating excited more basically and are advertisers, And partners our

news. very So good is this

Operator

comes Boone next Your question from Securities. JMP with Andrew

Matthew Condon

Congrats us the those investments just higher you the on of just guide then for more could, the backing and today? specifically EBITDA last and quarter. bit just your X preventing that And talk adjusted on year generative [dye] SPO. color can for for magnitude also off Two key about, on the a you’re for just then Matt investment are just maybe can to right those the of what’s Can what Andrew. us now? market AI within in a see further contextualize them. And personalization it’s I if great CTV great XXXX. question, with give themes Obviously, you obviously, little investments adoption onto But please. you Can rest CTV making? you

Zvika Netter

Sure.

operation as year quarter this our a very efficient profitable in are least very growth the by the So first of the this is all, second XX% total based for also shared we on to yes, mean, from doubling I guidance the and EBITDA least about drive X% commitment -- tight at XX%. run year X% from EBITDA. with excited to And for results at

DNA we’re not we’ve not So what product that innovation, heavily in been and for heavily mean and continue does XX that investing our years. that’s that’s investing doing

So investment not is significant actually, the measurement of stopping actually. first, that one is

large Measurement TV, next this a quarter, reach outcomes. very in is an see as measured, strategic many how the now significant many, frequency grew CTV, XX% years the This acquisition, is investment transformation being which for is we great.

is this focus. So huge a

is And I would SPO, largest R&D AI around part to our and a say and part, a connects which product measurement, in touch that significant I’ll innovation is minute. of and the which also actually

the comments we we’re big saying are are a year, X second in in here What that’s investment. expanding that half So here also of the areas.

think, new we I more AI the at version. engine, the not creative is which the is machine to learning measurement presented, an Innovid, have outcomes, at a and and intelligence, One component as the we that then outcome ago, looks looks the than optimize AI, year artificial something

So at about look if -- you you personalization. asked

outcomes So optimize with the audience the just right happens. in set based the it’s real what on look We creative at now and actually right data on personalization of to used audience not AI. can time, based

generative other, is everybody something our some into and So that we’ve else. AI want And about we to optimizing messaging the our been more. that of -- unique do this some engine with we customers technology And where generating and keeps and the loop, that like have combined that asset looking generative the been really AI of invest definitely to were creation. improving excited using is some campaigns

So be AI, in that there more generated area, on the will workflow.

of So technologies type how our do into we workflow. better these integrate

to to want customers an easier much will already our it. advantage but it’s it of doing when they’re this easy So it, take technology, be do --

encouraging. very that’s So

ecosystem path think that walled On we stack, delivering right? delivery in -- non-programmatic, open see ads all unique programmatic, our basically we’re CTV we optimization, web, survey, at about in you very we place if in the the very, supply sit because everything, infrastructure a all impressions, the to gardens,

CTV to days are And the there’s especially that these a publishers trend display are unique that say, around that a efficient than, process, different advertising. marketers, run more about strong has looking let’s characteristics

So drop working everybody carbon a footprint. to media money efficient to into actually more is and to process dramatically looking run put the more

customers see position on on if our that, So based and our partners, we can our based we’ve on that there’s to been our those. relationship ways asked with and improve

So we’re very excited to do that.

the And last question, I believe, was sizing market. personalization in

last seeing out growth the definitely years. X We’re there. zooming like I’m X,

data, We’re use different different the versioning definitely audiences. of understanding forward that AI idea is of can data, the pushing to optimization creative run seeing of the understanding you of

in Innovid, from would would media them, decisioning delaying and but Concept a brand. creative actually the say I’d more your creative has been around X% specifically to see like ads of I the that. perspective, forever, just more about usage not seeing decision what’s same there decisioning question, but a XX% of a To the growth, say out we’re from you to have in I the regards scale the say

that to Again, delays it’s the we the The -- workflow. XXX%. get think is lot a it should in of

the see the agencies. not So that the with actually real it’s data media working creative brands, to champion are agency, the necessarily with providers growth for the and basically And altogether. adoption agency, working the

it. agency, media campaigns, actually like not the what’s would on, Brands to whatever and the to would creative creative execute like but infrastructure the that based tailor using audience. can to set is experimenting. audience, and data buy or actually now driving the tell, from And programmatically We we tell like right we the on just our start partners, strategy media their can to would they’re agency

So doing this the we’ll we makes faster do more deals the move. are that brands sense strategy -- to with and the more will marketers

Operator

Our Instructions] question with Stanley. next Morgan Cost comes Matthew [Operator from

Unidentified Analyst

[ph] Matt. Chloe is This for on

it, of just generative those what interesting potential really how Just And that takes on there. ramp the if think I you doing curious to And a might a into to I’m of through that’s AI optimization, about you upside piece monetization on going perspective for scaling noticed piece? do path sort continue second, forward you’re then how costs, start, around you product increase mentioned with what an do ‘XX? as you’re thinking see and the you how off? supply potentially that you the be cloud

Zvika Netter

Tanya, do you question? want to first take the

Tanya Andreev-Kaspin

couldn’t hear the sentence? can I first repeat the question, part of first if the you

Unidentified Analyst

cloud on sorry I’m costs. -- Yes, just

generative little capabilities potentially? those increased are mentioned the see that this You different that in a year. we’re remarks to continue as And have products? ramping your where more prepared use curious, the do you AI Or levers how bit in you and

Tanya Andreev-Kaspin

Of course.

we expenses use mentioned, -- What using board generative AI our efficiencies. Zvika when look really to the you are throughout to at starting quarters. year we throughout interesting, the overall and improve As are is across the

are seeing R&D, You marketing, departments. improvement certain starting earlier implemented in we all board across year. sales the and this synergies G&A,

technology. And it is really part leveraging of

it forward, further We’re we in so will really even what reflected far. be moving margins demonstrated about excited believe improving that and our we beyond

Zvika Netter

add cost measurement regardless the also, data I and business and that’s higher. measurement of there’s data of amount that would that’s processing revenue, the to for the of And the the cost and

thing that of more the be we’ll usage have measurement, more What’s and it, part cost the cost of fixed the be the nice scale will will -- fixed. about that

to the expect time So business. over the gross margin we of -- that grow as our scale that’s to margin how continue part we

Tanya Andreev-Kaspin

excellent This point. is

and improvement cost of to And in less quarter-over-quarter revenue this of already Our even revenues you that -- saw from business -- cost XX% improved have operating XX%. revenues. a revenue significant leverage of quarter cost

the forward, leverage moving for business. improving constantly of the We will be specifically seeing overall it operating

Zvika Netter

they could is the and focus of industry more serious path also in in done this Innovid, are there’s Google, question positioned Google it’s is initiative but the the optimization. very Zeromedia, place a things fully cost selling, CTV, a that sees very, the no the ad Campaign And scale the media in to of in for regardless that in in business. industry. Yes, way obviously, terms who’s the exciting everything. how which efficient independent is Manager, a are supply which footprint, business, server of in very of about of a a buying, is unfolding be basically we no in way, have part terms because both a of Innovid, big we and and indeed, very, actually carbon this of the deep Now your conversation terms unique industry in -- terms Because

it’s So programmatic. not just the

We also gardens, walled have the with indirect programmatic of component the the the publishers open deals side, web. the

everything. we So see

the We have all data.

We -- also right, have so engine. measurement, decisioning and

have So these components. we all

everywhere. customers asking to the and integrations since to we So server, with be are and publishers, DSPs ad SSPs all have what our the we’re have us we an because the is

We’re amount amount get is, perspective to can are stream perspective that been do will to your home to minimize work workflow things deliver there in asked an of to we of hoops impression and power from processing jump and order the that needs your that screen. a the to

this partners process there provide a participate where that we better here and exploring we’re environment and we’re customers and us. if and exploring are ways And our with of a that’s that is all our better -- for is that could

that, when definitely financial, our are will an cetera, make we but on it area customers and comments we’re it’s if offerings now. is And about our impact this that and also. excited an our et So have and are on where we’ll

Operator

next of Evercore comes Khajuria ISI. Shweta from Your question

Shweta Khajuria

How year? for volume business, should back that’s of the but the you as for to back question mid-term especially just a impacting next then And growth not so of for we Zvika. half I in this on Okay. and year, think does. half high-level the volume near- the about CPMs about understood year, this think have your

So see thinking -- that? drivers are where do you you what how the are about and biggest --

Zvika Netter

Sure. Shweta.

an don’t for what platform a fast that what’s growth -- that’s change to from the of the watching more tailwind matter that’s very through increasing increases. what AVA expect More called and that of we people streaming we’re the are and perspective, price content connections -- growing ad-based no with no and a is usage basically, IP constant the is directional CTV. consuming So Internet, excited, television device, so or usage ad-based like matter and also

extremely ad cooler spite from that So in we’re in kind of spending and And perspective perspective, of a interesting that and continues encouraged to an about. relatively economical excited grow. environment perspective, CTV what’s

of I a impressions. none year. lower This than the are believe, in this normal while budgets the normal We kind than quarter, it usual was -- in of is terms believe overall XX%

top-line already Actually, of gross So the the in there growth in is of I positive volume, lead clearly, and terms a in cost EBITDA once say significant CTV we significant expansion environment, absolutely will demonstrating. to definitely, margin which change see as our a should of because fixed and would acceleration definitely we’re margin. growth both

environment strong and bit services, regardless But also be upselling personalization, volume. is logos, space, a are perspective, that’s current CTV some And budgets. forward a financial these in lowering little -- the terms tech, of sales of from that of to pushing all believe the And I CPG it kind measurement, trends are -- depends are verticals overall strong upselling other continue in companies that new the like there’s verticals on other there and growing still like nicely.

environment So normal a we’re, -- year. than cooler seeing seeing a again, we’re

We -- it that’s want the in QX. question we’re -- QX to of environment be we cautious definitely, to better be And is still will your we’re in second seeing half, very thought the in. on terms than

about next will expect on And seeing we better right a second half, guidance we’re the that asked year. what provide to what clearly, based on now. would we’re Some you like seeing people based

will that The using large they’re advertisers are the and will recovery our platform, the second start on. of be, that always

investing second bottom climb just top into and more, line numbers the right, you’ll the So both start see up it’s also. those line they

Operator

Your next question Susquehanna. is of a Patil Shyam follow-up from

Jared Pomerantz

highlighted dig and you and of hoping the on bit financial I on again. saw was verticals further Shyam that just I touched for or at CPG on either the on a specific could quarter, advertisers bit particular a then services. what what hoping just tech some could point? vertical in relative a U.S., Honda, dig a you American this likes with wins Jared that this the you in you is auto like with a strength that letter, bit of any weakness Mazda pockets And auto front know into you’re This here? seeing But I’m you further

Zvika Netter

Sure. with that the latter creative to it’s of and you a I asks in I’ll kind start the definitely terms or auto, somebody connected asked question and stuff. dynamic think that about of the personalization,

for and from perspective. share, have even Chrysler, Honda mentioned That’s many, U.S., in footprint customers So others. also the is Mazda that from market a a have the say for we the I iconic many than And and auto would definitely ad vertical Google we serving but strong customer that They’re -- -- like auto we Innovid. more a classical would in -- argue we now have technology and I U.S. in innovators. GM we Mercedes,

dealership, of availability, reason The for is of addressability the local that concept local local promotions.

code So from the of on a ZIP localize data the to using usage to right inventory. and personalize ad based perspective

for data. These auto rendering of concepts based HDTV very a ads connection to model on data lot sense the personalization, of So straightforward infrastructure daily thousands of manufacturers. and make right showing are full audience and

more us seeing that Innovid we’re and to technology. closing with and logos from and Google from moving definitely taking advantage more perspective, of So

economy way the impacting verticals way. large clearly, time, different some a everybody is a in the in At same

adoption may hence within delivery increased see a vertical volume in might of and plus server specific in -- and might our vertical, revenue that same creative, you while see decrease So for a year-over-year. the at even decrease see time, you ad platform you

the back thing advanced and specifically But game, is $XXX pharmas, has TV revenue this our right clearly, what, continue services, short spike is impacting of those this billion the goes advertising vertical too right? already brands, based So key industry happens, the a on anywhere. and once the going see term. XX just up that for, a CTV, without type ad-based in -- once because is it the built up to advertiser on business into that’s have investing volume TV, around a And using these recovery the actually down, financial industry or consumption, -- is The technology It’s a and on right? brands, margin TV type there it’s their CPGs, consumption is years, you’ll been that advertising. it’s not they’re going getting the auto,

-- mean, where year. from it growing, understand will we’re growth. -- focusing this year, is shook] but this I a challenging kind So a we -- it’s summarize of profitable if we’re we’re -- [I’m I it, on

profile in be, see the line in and we So a a very margins, business we want cannot top close and and this terms will prepared to the line. recovery demonstrate that we’ll once more bottom environment, because innovate and different of even growing produce comes can that nice in healthy educate in EBITDA more and market I and when guarantee

Operator

next Your Martin Laura from with question Instructions] [Operator Needham. comes

Laura Martin

mean, when role margins, the or think margins you terms how of these in using the AI really and about cost are the role see Actually techs? think you generative do on upside, you new benefit, of I in side, downside? AI of the AI and one, driving on you’re generative terrific. When about that

Zvika Netter

I Thanks, this Innovid Absolutely. company. is on a mean are stands about and video. -- like Laura. Absolutely technology exciting it, the upside. what a I innovation for is Innovid is very in we really --

just new been right, a that really leveraging about geeks, investing excited -- the of technologies. tech less core advanced are bunch in were We’ve

concept super specifically like these of advantage are not of to AI years. taking been we’ve things generative none And us. So for new AI already

are in very than sitting except more is phenomenal that Google the right, using CTV, view than we walled what’s so a see cost, more question area X DSPs, than terms we because is on in more the the were gardens is publishers, One the optimization, going delivering. of and XXX% areas, world asset if to unparalleled we specific of brand in really on what Now data of specific your there right? is set of unique have

if you’re household. specific saying company, we an for everywhere I’m and every like, doing, that And audio everything we see you’re see auto -- it

the that very to performance ROI is ROI AI the entrepreneur-zation, you’re So on asking very, outcomes. and can from use reduce because the based improve you perspective waste high about ability is on

a more that’s something we’re that’s even implement positive and AI, So very investing so. to ROI

terms generative is creative -- way replacing our in insert that’s heavier button perspective, click in that messaging definitely in We the is second creative question and your from actually term. not a the creative to ad. and don’t of images, news that platform something creative, not creative somebody And to AI and for that video we’re cost. half realistic that’s expanding a the workflow the allow short to agencies, To giving think

agents we are the What’s customers, already the but with already workflow. have our be the say, using these allowing I going The that’s to our brands But surprised cost combined going in half, second perspective. saw somewhat to not tools, we’re that manual that a of in some that integrate into actually, us. -- will tools, to by beared us happen

automate. platform, They come data that to they generate is it way have API into flow will will back into a will AI the will our have whatever their The to we’re They going use to and want. accounts. work -- generative

to don’t So any expect we expect for for -- a process more we’re and we our have see us. to -- and cost not definitely, increased see actually customers going to efficient

side, within on not these are ad -- on the the system, measurement, agency comment our Innovid the would I last side. serving So say, labor-intensive and

of less process So processes that further automation automation allow be clearly, to will more hands efficient certain see that have the stuff. and on for keyboard we --

should see and bottom-line that’s kind increase the things innovation. efficiency we of third area margin. these our So absolutely that our All

Operator

questions. are there At Netter appears any over the like closing this remarks. further call to for back I’d it no to turn Zvika time,

Zvika Netter

very everybody. you, an the somehow bonus. excited Thanks again reduce Thank we the I’m for and innovation, us wonderful like that footprint about question world joining in see more added the carbon more are much is it’s Thanks efficiency our Sure. fact lively there for questions. can today. that to --

deals nice expect of there. continue. We we key some We customers, CTV driven and growth, to and expansion delivered by which client quarter had existing a solid really wins some measurement

a the somewhat seeing are encouraged some better momentum I’m of we still but had the are we’re the advertising a year. market, a great that there. firming that the of in than trend to volatile, seeing seeing we in positive environment it’s we So beginning quarter-over-quarter, signs

day. we but will be product of terms to scaling and profitable run Thank cautious. innovation. organization our operation, course, forward talked Have today, in about We adding continuous to all look progress you. still we we on good, of and how marketing on and that’s a that focus more growth. to you So efficiency on talent, on conversation And sales our great sales focus these more fronts. update want continue our I

Operator

of Thank today’s second day. you, concludes everyone, for attending Have Innovid This earnings call. rest a your great today’s call. quarter

Innovid (CTV) 8 Aug 232023 Q2 Earnings call transcript