CTV - Earnings call 4 2023

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Operator

Greetings, and welcome to the Innovid Q4 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brinlea Johnson, Investor Relations. Thank you, Ms. Johnson, you may begin.

Brinlea Johnson

Thank you, operator.

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

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

investors. including where our can measures Zvika call In earnings EBITDA, cash in considered will addition, GAAP non-GAAP non-GAAP business to information for today's include and These call to GAAP use begin. Q&A addition the our are they corresponding We EBITDA today's non-GAAP Innovid's our CEO; Zvika, measures in Innovid and on Zvika SEC. Hosting turn as whom our now ahead. results. as call free our available measures the Netter, financial release and should believe a measures, managing of of go Anthony their substitute the useful participate and Co-founder adjusted be will appropriate, margin filings the CFO, Callini, to as website in Reconciliations session. I'll in and measures, not our with well over be these adjusted provide flow. both please found to to

Zvika Netter

on for that the year a the of to annual and TV, linear revenue today. innovation largest excited quarter. approximately report quarter Innovid's resulting review in financials, full We ahead. by publishers. possible provide over of evidence Financial strong year-over-year, ad-supported some made a industry create, transformational Bidding updates Brinlea, year and addition details technology what's our and revenue we close provided very to and boundaries the quarter year. achieve push we on both digital guidance love and it all of connected year progress beyond. Today, full fourth some them which to many TV more the year guidance with Callini, will through fast-growing And fourth our enterprise measure XXXX our empower our world's constant QX who further $XX to Thanks, proud to $X.X adjusted TV the to our pleased share EBITDA, am reflecting in the million, software XX% adjusted what thoughts up of for in expect CTV you on experiences XX% doubled I'll Chief deliver agencies in and across results recent joining and infrastructure EBITDA turn continue platform. We're I'm people to margin. followed thank than highlights XXXX EBITDA Q&A. I of of I'll adjusted a business brands, to We million, for our and past channels. call other Officer, Tony critical in growth and fourth share provide then and the

Our operation in flow generated as to positive quarter. we million cash profitability this increase, $X.X continues free

XX% full reflecting growth of million, margin. $XXX XX% and the reported adjusted For adjusted million, reported revenue we as $XX.X year, EBITDA a of EBITDA

from in year, XXXX. full We $XX flow over also a million the cash generated free $X.X positive improvement million

the but financial from improved in and guidance revenue standpoint are exceeded EBITDA, of only was organizational perspective. from year, an financial which the quarter throughout our XXXX We also important not with adjusted proud an perform each year. XXXX

Financial possible market Given Tony Officer. Officer; accelerate Chief to as hired talent with our Callini, Commercial the our conviction and team strong and and strengthened growth as David the in executive business, We Chief best position. we Helmreich drive the

Ken experience Operating Chief Marcus leading and wealth We team of Officer. welcomed Technology a Officer. Cushion recently, public Marketing also we Most as companies. growth private brings promoted Yuval as in Dani the Dani Pempe organizations Chief marketing Officer, Chief technology to and both to in

really team We who to excited additions making an impact. the already our about are new are

growth Additionally, clients, The sales to new reorganized commercial share wallet deepening their on and we Rain with for Philips been quarter, logos such and the we organization our relationship fourth focused ad drive has from in most accelerated XXXX. serving, increasing Growth existing team serving adding our the as and In customers Media Agency Nexstar for ad creative measurement. optimization across clients. won client dynamic portfolio for new strategic

relationships existing quarter. this also We customer expanded

added our serving client For QX. an example, in measurement solution PetSmart, ad

top recent Revlon, had including Microsoft, and wins, these to as Verizon, us join addition few. fourth global we clients quarter a name Mazda to U.S., of In brands XXXX, a number throughout

XX% in a XX% result and our offering Innovid's fourth accelerating quarter measurement last and CTV reported of focused revenue compared operational XX% we represented in As from revenue execution, grew year-over-year. InnovidXP, serving profitability the growth our grew year. improved to of specifically, More personalization the and in quarter revenue. fourth XXXX ad

the to our competitive We made and technology strategic our and year operational, I go of extend pleased improvements product. measurement about with market are business. we continue macro financial to as proud measurement in the We and all our geopolitical with the team very accomplished as significant critical a growth optimistic usage, of are ad prospects we am piece ramp-up to despite as this challenges. we

Looking ad ahead which we to are for trends, XXXX, spend CTV and migration. meaningful see adoption accelerators key

have are ad-supported more more and platforms unsustainable. proven implementing First, models subscription-only offerings, a streaming

months, introduced ad past and Prime Video these Amazon streaming as such other following giants Disney+. HBO Just Netflix,

a news a Bros CTV launch in the streaming programming. forward sports linear main platform increasingly also to are space. a to it's fall step Fox by step one another on XXX% of TV the is ESPN, journey is sports Warner and live because of TV. And recent the sports The Second, digital part huge

been ad past quarters, spend few the spending reacceleration believe inevitable. ad has is While CTV suppressed we on in that

market dollars and unique digital to we to partnerships will XXXX technology also more market dynamics, ad our follow as beyond. are. will to growth and and becomes engage CTV, the more they where fragmented, need to shift continue for believe technology and in As viewership These capabilities consumers continues the drive expands. TV And

happy [indiscernible] issues closely to used possible. focus on platform technology we We've bar understand related innovation. always on we the our what And face, to CTV of we've to have of integrate on challenges focused for today. Executing days multiyear look facing should future I'm our value powerful to and is and setting focus. founded a measurement our From Innovid, share delivery unique the with platform TV push biggest when the the our one Next, big data-rich exceptional inside continue we're to first early continued for provide and on CTV some to with been It our updates plan, class like, and together a Innovid where data clients to with working we is we small. the actively what's of the solutions solving creative platform both set. and capabilities business client they the work boundaries

find event as exciting advertising helps with most web opportunity last as the across dashboard to even month. consumer of to real-time Disney's Disney CES suite the Disney's performance full have clients showcase optimize Powered on and insights, We or real display by focus time. to the and in advertisers creative such conversion use AI creative, to was the more products the This winning helping automatically allows technology, through introduced of The data creative our dashboard app them shift effective. real-time Innovid provide which optimization. how at global tech a we're data for point solutions. An further use optimization on value of improving are investment

this solve CTV and exciting just challenges continue in the we in While ecosystem. invest new to will example, release capabilities, XXXX, optimization which believe is X we'll in

currently efficiency, brands, agencies these major publishers engaging partners. From new new that to summary, ecosystem we ROI will growth. viewers closely focused value whole. In margins enhance transparency for market and customers as will remain solutions to to continue that vastly control maximize and we are brands, Innovid, provide We believe the for the have invest and and expanding And we to our to with ourselves and accelerated to our TV a day improve bring X test and positioning solutions what offer innovation. committed publishers, at on meaningful we and several

our commendable. is on As when work we reflect where environment this were XXXX, hard and team's dedication entered I macro in uncertain navigating

industry a Tony? cash made consistent take provide improving insights and in progress I'll have each I'm flow. generate ability shareholders. With into this that, ask to for strengthening expectations. to We to value and our the and operational some execution meaningful and numbers profitability XXXX through in Tony us quarter performance, difference about operational make a our excited financial

Anthony Callini

everyone. Thank Zvika, you, good and morning,

and and EBITDA quarter expansion positive growth the full results. revenues focus report XXXX, our heard, our evident just both both quarter in you margin third on profitable pleased double-digit We're record adjusted of fourth in QX growth is driving year free we and cash last and As the the over and a exciting XXXX with enter flow year. hard second and both consecutive quarter kind exit demonstrated work the momentum for It's transformation to full few XXXX of year been it's of and that quarters. the to

to numbers. Now while grew revenue personalization a XX% XX%. revenues serving further, down year-over-year, more If QX we into let were revenue $XX.X measurement the ad little that up year-over-year break grew XX% me dig and million.

serving measurement ad up XX%. serving As accounted of while made growth The revenue the CTV. ad spend QX, in and to personalization a shift continued reflects percentage and of and stabilization emerging advertising personalization in for XX%,

and revenue from personalization grew QX. fact, last over serving CTV ad In XX%

a improvement. sustain tell While traditional it's we to to completely early too we year-over-year experienced are meaningful back levels, spend certainly if

to generated more and which growth X of XX% to reflected continue take in Innovid valuable were strength continued pleased desktop. this and X have these fourth of of more from by set quarter. Growth impressions, Both video reflects we with served impression enhancement increased volume impressions. video It's reminder, impression grew XX% our streaming Mobile InnovateXP mobile a of desktop of within market. ad measurement grew to advantage measurement business X% closely helpful full ad of transition the personalization impressions revenue and by to return in inconsistent serving continued increased XX% all platform. Within XX% also look in quarters applications. the overall CTV and of represent first television video the data impressions. as video volume the ad to the healthy XX% while in of volume the platform and devices see all revenue All total watching all in through the As serving growth represented and impressions, and side been at category, connected correlates represented volume the capabilities desktop and of video XXXX, modest XX% the consumers to our mobile

to provide be solutions expect client As measurement we continued for growth. our value catalyst Zvika delivery mentioned, revenue and differentiated to combine ability creative, unique and a

moving $X.X year. per in cost Revenue model. margins excluding in total XX% We of investments value scales, increase The areas which was to an from was year the improved revenue costs end amortization as and while out count XXX.X QX committed base the compared to protecting million, reflecting XX% of creation drive remain fourth share a EBITDA our our to the than for $XX year in in more business million improve we XXXX. long-term quarter expenses. embedded December million net calculated a depreciation, to $X.X These supporting XX% last finished lower of to the count margin shares. Adjusted cost on the from million X% continue $X.XX. operating managing outstanding XX% XXXX. Employee last end our adjusted the QX to Now loss QX was and and year as and high-growth less than loss EBITDA operating representing of in leverage X% XX% QX. business impairment, XX% where revenue million, XXX, at but share shareholders. QX profitability or common of totaled expenses, revenue $XX.X last in just of in was at in was improving

grew XXXX. EBITDA margin a each XXXX operating was the in quarter revenue nominally XXXX, model. cost sequentially equivalent throughout demonstrating over and percentage in revenues that These of growth, over impact grew sustained fact, inherent of improvements period, the adjusted improvement in and operating the reflect the revenue In of an its leverage lower quarter costs as

as including XXXX, we of revenue an over on basis the talk an $XXX largest a least advertiser of of and a is TVSquared increase an revenue increase the core 'XX. annual we generates global pro the and our the at the XXXX on $XXX,XXX year. publisher one course of all For the a on clients, basis brands, year Because which X.X% over basis, as-reported forma ad results of XX% million, target are platforms, define of clients metrics that full or reported agencies for we about publisher

there active or can any year. you imagine, in who clients As be given $XXX,XXX that can over may line be under

we to look each So cohort. group feel important at own its it's year's as

clients this XXX as with definition during XXXX. XXXX, met During XXX compared

X% net With of revenue net the a revenue year. Full of and XXXX, from of last year expenses, that and Total from and below the to revenue, in core $XXX.X and excluding XXXX the year. to XX% throughout improved efforts XX% totaled million is reduction client $XXX.X macro remain a experienced decrease valuable a XXX% retention revenue operating spend XXXX, clients. efficiency basis, dropped out during of depreciation, amortization result cohort XXXX. On This but was impairment million, per calculated loss noncash clients just share or of who Approximately consistent $XX.X XXXX this completion cost QX. of this the revenue with was active in pullback a in less TVSquared of retention $X.XX. ad a recorded impairment we integration. XXXX of a related intangible $XXX,XXX line number million to asset loss loss half was

If we year. Adjusted $XX.X to loss the year the in an at million, $X.X adjusted a year of compared half EBITDA as the of X $X.X the in XXXX. XXXX million we $XX.X million for compared of improvement of of EBITDA representing net the as was million you halves full to first reported $XX.X the XXXX, in million look second recorded the half of

as X% As EBITDA XXXX year of to and margin just compared a X% revenue, adjusted XX% this was XXXX. in percentage in

have adjusted EBITDA still and both While to to that delivered acknowledge we XXXX. there work is in we do, growth adjusted double-digit EBITDA proud double-digit are margin

cash strong sheet $XX balance an and a drawn that million cash $XX ended the on financial equivalents and million year facility We position with in on flow. our additional with line. in $XX to and Turning debt million the cash available revolving

improvement During the cash flow flow XXXX. free million free was was $X.X over cash operating cash used in million of an flow QX million, quarter, million, $X.X and the $X.X of $X.X

cash $X.X use in cash was million million. of of For a was and $XX.X compared full the operating of $XX.X year, cash cash million, XXXX, flow flow as $XX free of improvement free flow million to an

look year the full me and touch the our first on for let Finally, quarter the outlook first at XXXX.

strong financial finish XX-plus target XXXX We long-term committed percent annual are growth XX-plus our and encouraged by remain the percent of revenue to to and adjusted EBITDA margin.

of in in expect first to confident disruption of opportunities market total the strength underlying XX% way ability a We towards are in the XXXX, range our as to year-over-year to those business, we targets. In see quarter representing step XXXX revenue meaningful our for profitable longer-term million the revenue and grow and XX% the $XX growth. $XX in million, a of

year. first of We expect million a quarter million $X adjusted the $X.X last in $X range million to compared in as EBITDA QX to

$XXX and year, For and to $XX XX% $XXX XX% the $XX reflecting annual adjusted we million million between EBITDA full expect million, growth revenue to million. of

and infrastructure more our are remarks. on margins for and is TV advertising committed well as begin of shareholders. This operational exit session. proud with XXXX levels. now some customers Operator, Q&A to of accelerate outsized prepared believe returns future questions. I value and the are are us the remain profitability front Zvika the the experience technology positioned innovation for ad of historic in our we happy concludes and to accomplishments growth spend and become please opportunity The and our to to strategic, expand essential our in financial to We take creation and year We team to significant to momentum. growth focused continue further XXXX. We our this

Operator

[Operator from Instructions] question Shweta comes Our first Khajuria ISI. from Evercore

Shweta Khajuria

if see Tony, guidance, could giving the what What's is in visibility of And puts in confidence you the question that's one. And you potentially XX% you Zvika and cross-sell your question please what some provide referencing, and takes? right the or of guidance year comment guidance the P&L? how contributions that optimization now, your solutions. as and in they your terms would second baked drive That Tony testing on your from impact with the great. be could upside new solutions the is, terms was ad That's the then talk full new could that about to Any growth? driving additional environment color XX% on guidance? this upsell, to could what you Zvika are you're would that

Anthony Callini

try I'll Shweta. the take one the color certainly first optimization. you, and Thank some And Yes. Zvika to on can add

our the that the and I over QX, feel of look growth about as XXXX in think into strong growth guidance. that a double-digit as factors think there's QX kind seeing number well, pretty finished XXXX, And think carry you at So into you're and play guidance, a we we with we year, XX% I of from XXXX.

stabilization and verticals. everything seeing lift we we're are normal know say a if But we a not all were a certainly And across don't is seeing to strengthening So ready return in to I ad spend. that's maybe the consistent Certainly, from back the some yet. year. prior completely to

that And television. And It was which continued -- in that the lot digits a for nicely last a mobile. was and you carry you comp at kind the X more for So made we've are this and surprise the those spend. talked was things in we're were pleasant year, general that of performance us, for QX measurement sales albeit then have investments done fourth that lot a lift revenue But year. that we really the over. We've seeing to CTV then little with half of things about softer double have bit you in surprised the pieces It just second drove a if transition team quarter. volume. grew of mobile a look it. was connected the a there's in And measurement, of

So forward that to some we're for into sales guidance this the of it going are cycles. pertains new logo acquisitions, certainly longer baking although those sometimes as year,

amount think, sports, that see tailwind video is we're a ad year. are So throughout looking streaming conditions live tailwinds These half all that supportive of sports of. And advantage more over an is take I potentially transition we some us. election the be demand. More on for and can kind that of year, certainly the in to the mindful second the to going something some of that spend the think then like at great uncertainty on as we look create with that that things I brand live on impact of Macro of to that have period.

that. of mindful we're So

So think build the that the say I and the over Zvika into of would is the of of tailwinds. And of guidance, this pricing, specific stronger mid-digit from play about to our cross-sell, I to a there's pricing And that I'll takes. spend, just -- will break uplift opportunity the certainly if into all seen we'd year. an optimization. some those uplift down a for would Zvika, strongest you in expect is part. We've I upsell spending in built low a feature throughout thinking number macro general puts it say know it that's things the year. Cross-sell a certainly if I turn for don't

Shweta Khajuria

Yes, that helpful. was

Zvika Netter

Thanks, Tony. joining. Shweta, for thanks

extremely about. thanks excited On we're the asking. something definitely for It's optimization,

the of and year board. from flow and and So profitability strategy, to going growth, optimization be algorithmic company cash a optimization across data-driven free is XXXX beyond product absolutely accelerated the

something of This the media this as creative that This optimization it their technology because stage and is actually optimization-related As customer expect in shared Investor campaigns. XXXX, is Day, the optimize multiple we that selling is can creative run dashboard about Disney -- Disney investing this what's Disney based the CES. This seller. customers, end of last It's available definitely data. Disney advertisers is Disney real-time one brand. outcomes. And releases started that sharing excited with is the already is is it the their that for very -- as upload creators in year is shared released and enable in with throughout -- is our data very that is terms their dashboards into features. There's this at this specific their to unique year on because something can publisher and a of on -- buyers their also a that in real-time and of platform is that we market very Disney a and we a we in through first-party connected the we're use publisher it it about excited data, partnership this

outside those because friction area their trust the a prove not the the because is performance in platform but end partner want we're advertiser optimize or that media platform. seller this no to doesn't Disney the business, -- better to on to like to against of the the they data get Innovid go competition get can and performance points customer So there's that at the to

the creative. terms optimization workflow, of a the lot to of in and optimization, deploy getting there's So path industry. the that's in They of something smarter. areas like in that's live opportunity of this optimization. still believe It of other guidance frequency there's revenue. in already type And the under type keep launched falls data-driven already opportunities are and plenty those of that those plan supply still generating creative reach, We smarter in for

So based on our customers' pain points.

to So definitely in committed year. those release we the are

in initial of investment on counting So an it's them perspective, P&L. From and will already sometimes we're in because beta. from some will upside launches not this that it's and an year something be alpha be perspective, the these

on for committed we're So but want market. to don't into to them the we them release absolutely rely revenue the

definitely definitely products should I sure. to want revenue would So from year, see -- see significant next for these we

Operator

from Patil Susquehanna. Shyam question next Our comes from

Aaron Samuels

on fourth on January looked trends? results. additional and compared share we've a have for an color environment Aaron advertiser then quarter-to-date the starters, -- additional strong got any can maybe you on February This how is for Maybe color follow-up. Congratulations there demand to And the any is Shyam. quarter from on color

Anthony Callini

one. that take can I Yes.

some perspective. activity we're is from of certainly I saw we first into the carrying the for growth QX, QX gave that reflected improved and think seeing we a a in what that So the continuation over that's in of guidance think I quarter

first say, think I XX% XX% quarter year-over-year. that to growth was

So midpoint-ish quarter. fourth is up XX% growth, what ended growing in which is we the

think call little would -- the guidance. I in call the a share quarter the year-end right, timing you when points I that with being just that all -- right, have So data later you of this benefit the we say the as when meet and we of more

things I stabilize. we're So think seeing

at those finance, unevenness, in are broader things As sorts back bounce about mentioned and pharma, tech, economic thing those so verticals, things. those haven't CPG you think And -- how before, mean same as you performing at We insurance, we're right? the the look seeing just performing, there. it's market of a seen and like the are still -- I companies well. if there's some still really look

to some So or to room I back the we think about maybe better for there's not about think altogether. trying it. just not market balance continued I optimism all And there's our conditions guidance. But -- certainty we as feel think still we're certainly, bounce but these

Aaron Samuels

of a follow-up thinking business more deprecation. sort signal about year of Innovid's are focuses ecosystem? is potential Obviously, being from maybe How impact ad Google digital big then the and the it. digital Got one broadly And in Chrome cookie any here. for in deprecated ads you cookies the on just

Zvika Netter

our of thing and Sure. than activity CTV nice more connected The TV revenue. about now XX% and is

they're drop operating collection, it's of come need Innovid and for a cookies share of like and apps Disney. standard. in together need Hulu existed, cookie. And There's something theirs it way, let's very the and -- increases there's can where the to cookies Roku and you it, Innovid all They good and about like Samsung devices garden, platform it's fragmented it for of looking -- a hardware, will have technologies, own CTV, of video, didn't what's but system nice have on it almost platform and some fact the a Netflix their a industry own TV have and walled and say, all that is their because think go across a is nothing a is that it's no for like not cross. a All and collection of it

a there's fragmented environment walled garden. it's collection -- to close a with standards no So and of a

to it cannot stuff cookies like does to Google and retract value do That just not So while be have a out they other where value CTV. taking players. exist owning can of maybe in lot they the

so is -- many many, And nothing at basically away. So been going we've years. for this

fact the and we ad, ad actually say, that creative a we're is let's the so GM the customer. the stream ads, So the of server, physically

the a see physically you GM app. U.S. a Hulu TV, when So into ad on Roku in We're CTV. streaming inside device, Samsung your

a have we direct household. So connection to your

Innovid build whatever a have -- graph, of seat, this available terms it Key. let's is called in So this own household it put front to we what's data our have to access to data store and

partner our to but there's that's away We So we going identity the CTV ecosystem anything from nothing own change dramatically during going variety with this. solution. have providers that's

an us. would have And not I say that's actually exposure an market. in CTV the advantage for So that was Innovid it

Operator

Company. Laura Our from & Needham next Martin question comes from

Laura Martin

I'd to down competition. you, like for into Zvika drill

more wondering they're all primary Google. and AI everybody because on I'm are which focus with the know I if AI, clients if of in AI are an the with take over leader. if mean years Gen knows, their Gen that I'm you right next competitor know clients So with you landscape tilts them under [ and some now your your And press catch all ChatGPT the which of they and into of their that backwards up helps OpenAI. this competitive is X in or the more sort to even rise the more guys day wondering product, of pressure AI AI, they're sort every integrating happen ]

the landscape for about I you, CES talked Tony, So our with this. you understand, creative to can on wanted you vis-a-vis then at this competitor Disney better Google. And competitive you of -- talk on primary thing sort twice

insertion? piece Or for you ad that you is, give to like my that to marketing that something with question your do so clock paid get thousand? insertion? is somebody that? how Like your ad Is you do linear creative on extra just for pay per to a Or free get added for for and or it serving And ad $X.XX paid the an it's it's measurement? is how your it free upsell

Zvika Netter

Laura. to But if I'm pretty AI said the not entire to the Always overuse for Thanks, about clearly, it topic. these question. big wonder thank talking tech. you're we're sure exciting because an script, in days, because not And I being AI. AI is careful you everything you

anywhere pushing the and and to and an have rather race Google citizen AI, of optimization, levels, Because scary higher there's most between much much, [ do those to ad I levels. which ad Amazon or almost it's like better the a course, as Microsoft So right? ] advanced trafficking AI of much, serving not having or for better right? to front say even ease on world, arms of Facebook, they're It's a

public in So you investing they're layoffs that. -- in can in terms of another what's only like wave the of a they're is the see Google and that of I of can towards going layoffs energy organizations repeat the that information world, our investing modest world, less. lot where And some had fact

tech kind -- that perspective, we in let's invest feel in losing and and for infrastructure, of saturated I their marketing from different us. less. of terms of shares is similar around it, absolutely it's of the the some a great of ROI, is think they fact de-investment, some market That they actually, So are efforts absolutely in a fronts. kind Google I terms sales had the put

they We are DSP front, have fronts. on several part, have they [indiscernible] the

I'll that the say, to decision -- It's fact a fuel of yourself we're So because to Yes, really news. And AI it's beyond relationship to perspective, an move Innovid In connected our interesting How decision from be. the you want terms that head-to-head them. of your AI. is want strategic not platform. we're customers in where to taking The with it's partner? from marketing. with way, sales data good day-to-day to and do us a to you align data is and

of the data, lot that to used CPG how be largest of marketing might that other to tech data the data, data big the God or own in a comfortable things. are largest at for So manufacturers, and auto you you least, you a your all manufacturer, be want of publisher. let's advertising say, your Do have hands really -- all one big forbid you're this will want

So that of our concept as last we've increase share been years. X driving in market the

the a will The antitrust deal neutrality something the and not it. It's behind the that to So separate advertisers. accelerate the acting that manipulating focus on and is I huge us. still platform to for seems think platform and need be

audience, the shared optimization this and reduce of So we're still already We and it wait [indiscernible] front, better in to now we waste, kind a is question some AI. Investor to availability achieve smaller rest things in with call helping on investment. the some Shweta's I in usage, of of, those, customers we're terms reason in to our and with needle our optimistic and moving very where general some go and reverse. And no see in these of in the less are beta with Day you things them one -- reduce market some and I'll of of for show with share exciting of actually carbon into driven live, that for footprint, the terms to cannot outcomes back it alpha the

throughout market forward think believe would So about excited I I looking this year. and -- the to share the be it

the Tony, question you And think had other this. I about

Anthony Callini

This Thanks, exciting really can that. pretty take real-time make and Yes. of can certainly this difference. Yes, concept for I think we a is Laura. measurement us

way measurement upside arrangement, component SaaS there's provision work, of it's also model like where measurement and the that's talked a before, a arrangements there's we've it's fixed, about so for data a as those usage. And the on

value So will see back. real-time drive utility more where difference we and going customers is for this the this of a of that's we think, measurement its just our information usage making for because functionality, us its again, and

the around. work SaaS a creative actual there is which some is So Again, piece, and then well. kind there measurement, will around as and that's fixed the how based there's like model a some usage of real-time in economics

and the of or the we're side. the measurement main of creative DCO So boxes what doing serving, ad then this kind the all checks from

Operator

comes question Our Condon Matt from JMP Securities. from final

Matthew Condon

accelerated going self-service launch side, what Can week, Two, the quarter. the then And revenue last if composer. we're drivers XXXX? heading you talk I into maybe the measurement of just there? a CTV nicely on expect about also And could, announced the in just you your within feature

Just stepping to more SMB over back, can order you talk about shift CTV? to what for needs to budgets happen in

Anthony Callini

in you ask fixed I quarter of SaaS nice mean, some then fee, of that's on and there's fee, about it's Sure. that for to -- software We blend or just I usage model mentioned can a a use if measurement And I is Laura, a or measurement. the as take had top. license a QX. a will, and upside first

what think seeing usage get the both revenue. those we're model grows, to builds is on effectively the kind time increasing, of is that their more you base. base concept on which I and as where recurring of top you typically add have you of of customers over itself And So then kicker that, SaaS the

for think I area measurement So us, of been big focus. a has

the With having we're serving for the I with we a ad measurement. of organization, more made our approach and in holistic combinations think them, around changes go-to-market customers successful including

to that grow. to So expect we base continue would

more we things we with these usage And real-time conversation that the again, up. capabilities like, just see can had we the connect together, the about measurement going

course continue kind of would of those to increase parts year. of the over both the I of So expect to it

to And second you. turn of Zvika, question I'll over the half maybe the

Zvika Netter

absolutely. I on was Yes, And mute.

already. way a for the So the -- bit And so I was thanks question.

that a very to part of won't technology we unique are it's say, have. it's critical a CTV of It's definitely the critical, critical. piece So future. on Innovid I composer, specifically

the HTML self-service I no than platforms. What offers feel CTV this purpose. world say, the that interactive at create CTV the with CTV, thing such and HTML, the [indiscernible] or on the -- them would design believe released can about days I a engage across I actually everything to we're advertising. as And is ads, and you web. asked that days we this tool really And to can multiple day, more we're and company say only scale early several document there's standard take tool run still you in You that you advanced We as that the in ago. of in core years publish any HTML save can these on devices run across offering

As I said is CTV a the still bigger of earlier multi everybody on share. a wants to kind of to get and walled questions garden cookies, one

what selling. technology, So deepening their audience their they're they're around building walls is

content Samsung a or Disney selling or audiences, Netflix, you're Roku like et or like device VIZIO or If cetera.

So -- trying ever to there's standards. is no so

So can Roku create Fire have Apple on on TV remotes, cetera. that actually with we the only ad or the different et interactive work an Amazon tool that will

very advanced that an the technology. an the It SDK on it's and actually offering app, very, sits So and device tool. has

a general, SMB, in of it's the So very unique technology. a regardless of CPG or huge piece advertiser is

So I U.S. I With if was we -- boundaries believe, the of that in of see and are maybe on, used can within way, sports it press technology by can large advertisers recently this it largest that don't in some in used was what later aired, say. the the release you'll the -- there. in was the the we be event but

feel even do tool. using production very in you cart, live like of a move watch want small advertisers think I is to use days could this usage. me scale. still to percentage send large massive coupon, it's a the to early at plenty for this So there's still things at more, ClickXBuy, I we're of

upside largest a there's the huge with there advertisers. even So

don't it scale. YouTube, DSPs the massive adoption feel ones like the with to I need you because the goes the early are who As platforms will SMBs, gain SMBs

single have this can across unique in world You to type proposition. a that the And you we'll that's need multiple but our just see in where a I take of case, run gardens, they represent into XXX the is absolutely platform, smaller sense, XX% spend. walled of U.S., the it use you Innovid a really give way. shines XX% where you go these to top to about advertisers those advertisers where when let's call technologies, TV

who even needle really -- the sorry, spend The of movers already large the large dollars So brands is amount pharma, CPGs, Innovid XXX top of the half and telco, marginal. who are medium dollars actual the, are that SMBs and auto, are on be big billions of customers. will that television, real guys,

actually we're focus, not mid a half in which the tail. we to point focused, we'll a bigger first actually we're the -- to because more than market be journey believe and hard get that Google, where then long we but and XX% that. have Our on achieve share, other can is on that's And foremost, to laser to get and we'll

Operator

back like concludes for floor This over closing comments. our turn question-and-answer to Zvika the I would session. to

Zvika Netter

everybody, Thank thank you, operator, and joining. you, for

joining was beauty it and half a this year. like everybody team. of board, -- year. Chief As thanks started was Commercial year the XX quarter themselves really agencies, that their The was who of XXXX, positive They brands, months flow. And the this -- our XXXX pushing the year. is aligned, of of the the the everybody -- dedicated executives them XXXX like company X got to the team and us commitment goal for you for to of the our ago. will added -- some And spoke of cash in some industry them Officer heard, continue ago, goal joined on towards to some not months free congratulated keep growth, making fully growth, the accelerated onboarded innovation, them is above, ago, was XXXX, time or so challenging those us The of of same our releasing double-digit more advertisers. than and our on the the executive proud as Definitely, I'm and extremely basically time, with is we deliver QX, a create the course, of needs ecosystem we XX the and deliver to market better because as viewers products successful. publishers that us that a at everybody about, XXXX, Rule

XXXX, very Thank you excited to about company, day. very know. proud, come. the and here a for you listening So very being thank what's all and Beautiful much. following And and great you which

Operator

teleconference. today's concludes This

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

Innovid (CTV) 27 Feb 242023 Q4 Earnings call transcript