TRMR - Earnings call transcript Q1 2022 | Nexxen International Ltd.

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Operator

Welcome to Tremor International's First Quarter 2022 Conference Call. At this time, participants are in a listen-only mode, with the question-and-answer session to follow at the end of the presentation. This conference call is being recorded and a replay of today's call will be made available on the Investor Relations section of Tremor's website and will remain posted for the next 30 days. I will now hand it over to Billy Eckert, Senior Director of Investor Relations, for introductions and the reading of the Safe Harbor statement. Please go ahead.

Billy Eckert

operator. you, Thank everyone. Good morning, to XXXX Tremor ended welcome first International's call. XX, earnings March And quarter With call Chief on and us today's Sagi Executive Tremor's Niri, Officer; Chief the company's Financial are Officer. Ofer Druker, our issued a which access This morning website press investors.tremorinternational.com. we at you release, can on

and filings future than partnerships, in as of forward-looking conference to will future forward-looking. caution statements anticipated continued financial forward-looking and outlooks, opportunities reliance statements strategic Tremor's on market and information, for business, shares, potential and of expected statements strategic these in development and More cause and other future risks forth performance We about projections to investing uncertainties and including and share about both to competitive listed These risk and section as performance changes and today's historical the additional known revenue, statements on expected in available strengthening statements limitation, evaluating the those economic by U.S. fact and and or statements, not statements. All companies, implied other commercial those marketing its information statement are as QX our future make advise During anticipated us acquire and future unexpected our and results growth intend from Form-XXF. of relating whether but materially international Factors our result call. business. Tremor's or our markets, our including, these in the forward-looking law. statements update factors products required without discussions with results repurchasing involve ability actual factors and reach, information to except uncertainties could about factors and statements. current expected Securities transactions, and risk otherwise, of and product that registration entitled include, and call, our a to may sales not technology, on differ in forward-looking including statements continue as limited events we statements detailed of to, forward-looking These new and by concerning products of or U.S. margin, set be the are in guidance statements Commission, Risk Exchange services. deemed anticipated alter accelerated does or other and Tremor launches All unknown based expenses benefits XXXX to forward-looking date our risks, industry this

definitions company's the of call IFRS financial and during time, statements my and including in non-IFRS to company's CEO ahead. the of Ofer release is of of Druker, terms. press Tremor of items conference release management IFRS introduce non-IFRS to Additionally, At refer it press details additional to and for this this Ofer, will results. certain We reconciliation discussions non-IFRS International. pleasure you information go include measures please

Ofer Druker

Officers, by XXXX our Sagi of review welcome And highlights an and strategy, Financial by our our joining to financials. today. followed results Billy. Niri, giving begin of you, will I Thank overview QX, Chief us everyone will the

We the open for up will questions. then call

and quarter the adtech was of across in performance an we which year growth first best-in-class Tremor, represent incredible be and company's strongest for to The the the followed profitability believe history industry. XXXX what

on important expanded chain to February inflation, as data-driven model. market continuing adjusted growth, advertiser condition strength supply end-to-end capabilities when and of platform that achieve during business and EBITDA were and period while strong generate and continue on business Despite conversion, quarter, XXth such also the During our video that is economic spending strong constraints, Ukraine able was profitability. challenging durability and earning, customer's adoption. enhanced free announced interest in Tremor to industry-leading and focused the able rates, critically the our to serves We cash testament as last a rising impacted to of year-to-year and CTV maintaining we end-to-end war technology began revenue margin, uncertainty flow which

continue where focus sales to these continue on growth, drive as well we future to engage as technology, generating environment, strong the believe will to means a in robust We in as enabled organic be well the investing maintain have continue meaningful to the operating value. in Tremor drive for us decreased shares, opportunistic profitability as long-term and market and to opportunities. valuation researching premiums M&A shareholder marketing growth current positions and model

Our largely our strategic path in QX ability an XXXX platform. end-to-end we chose intentionally the and this become strong to success was in fundamentals achieve driven by to

is this part able than to in and are profitability the achieving. in due growth model belief Our stronger continue to ever we

of million QX, $XX.X in million three For ended in represents million X.X $XX.X we XXXX, generated $XX to to times compared XXXX, the EBITDA million adjusted representing compared XXXX, ex-TAC And growth. months March $XX XX, XX% contribution organic growth. QX, which of in

We continue within of us and CTV diversity help successfully a complex navigate self-serve and greater revenue video environment. offering, offering, customers' our growth of adoption our industry base to then our experience strength and streams and

headwinds business basis to Our in adjusted net advantage revenue take these industry the opportunities. in to current position future of believe represent a well We drove end-to-end as environment, strong continued XX% more potential the market and margins weather best-in-class. margin the related strategy XX% efficient importantly, margin macro QX, data-driven of XXXX basis. EBITDA growth a reported future on profitability as and The deterioration us on

others to strong seeking way. we this expand are changes certain pricing to relationship and model and path to advantages, their In of of data optimization. realize trend data, industry direct operating to brands the against towards business It SSPs in privacy the key agency. have that its that most recent reduce loss, end-to-end as are regulation, also and and platforms audience begin publishers with connect advertisers We indicated supportive strong efficient better access supply type have simplicity, commentary, they conviction and our industry installation in seeing in the provides technology platform,

and way some On into we the scaled end-to-end that brands whether DSP three extent and for have is side, at beneficial media least no directly it they inventory. more advertisers saying companies we companies Make positively their directly and or they years. capabilities experience business platform, customers. because relationship that end-to-end allowing have operating their operating fully to believe and their and expanding are technology heard plug very than this and view integrated as we these We robust this not, mistake have indicate to demonstrating for are built completely they're

industry positioning to fully both specific with Tremor, benefit and and customers, and for providers the their shareholders years. Specific strong adtech the this while held of this CTV of integrate growth to our relationship monetize of unique was and us Spearad. ad are take the trend catalysts across partners, anticipated brands, As data for as advantage effectively companies, global others with growth achieve we recently year. in expected to agency, realizing relationship in VIDAA and industry model contributing server media ability the relationship ecosystem and and media profitability, to ACR partnership are to the exclusive expect Tremor Tremor second This just our and half data

U.S. the the will associated well strong we soccer as boosted cup, the election. fourth industry, as midterms advertiser seasonally the believe world further quarter be Within with by spend

XX%. service platform, Studio. performance demand managed fully platform, and comprised Our ad CTV award platform video XXXX. Creative continue XXXX Video provide PMP, in winning platform, growth represent supply requirements. to ex-TAC is million a saw overwhelming continue screens their revenues, for of as as now offering grew CTV management Tremor to and $XX.X $XX.X compared integrated of of customers, driver in including offering QX, CTV, components, QX, offering these spend side contribution programmatic server, services majority CTV total the remain we side and data In-House and level Across our all we key for to million across XX% self also to regardless approximately

platform, believe capabilities this offering focus from As in strong substantial and attention their growing and evolving longstanding video, continued and footprint Tremor. and invest in result our build fast in will for many our partnership we growth marketplaces budgets segments display to of

growth as has interest remains and ability its advertising to adtech supported and years show consumer expressed subscription will long-term the We the channels steady in well-positioned and launched also reflect already companies. to can willingness the experienced Tremor advertising platform valuable and market tools. next health impact have believe the CTV the Tremor supporting across or money saving the and become adversely major changes the services several streaming over landscape potentially evolution that for level, preferences industry on ads content. in several At meaningful more This view privacy for

and data Our first-party significant during and eliminates end-to-end SSP cookie graph, audience technology our the and loss of third-party a same share growing which and DSP footprint data sync. contained platform

changes. meeting better changes. ID major will market, minimally as believe remain we of targeting Contextual factors despite also We we against unique us privacy universal confidence universal announced such This December solution continue developing us the privacy are solution support exposed in cookies. in that are the to solution. content also and own combination to ID give needs Tremor these our solution, we level We insulate our able customers

and automotive constraints the we of such supply due of in advertising due interest factors, QX, chain combination continued evidence spend during inflation, war in mentioned, continue sectors, rising Ukraine. chip As to to including we as shortage saw lower rates, certain

While challenge the microeconomics initial diversify on challenge are to platform travel will and as as durability our we position model. business adverse offset show that in market base also underscoring, the are us overall substantial customer QX, seeing recovery, compared in further to business, and automotive near-term. and bookings, pressure impact any far our QX to of to tech however, well well as advertiser recent sectors We such could highly and spend our revenue we so continue continue in believe, activities growth increased of programmatic signs and seeing

progress Tremor XXXX. QX a for we specific catalysts has our that in platform this enhance well-positioned in second are and expected point industry, we QX, believe expand have in and helped significant positive and achieved During of the

is consumers its U.K. exclusive subsidiary market We XXXX as ACR the is recognition Hisense, of over Australia, years VIDAA, several and the international targeting and beyond is segmentation, which our Germany. ambitious in we and data and ACR the OEMs next and And internationally. customer others. of and for the are largest measurement partnership the very terms half intend of meaningful second in major and for and this a to unique U.S. Toshiba, global VIDAA to system and in use significantly including reach Hisense, advertiser OEMs, the the global U.S. data data with operating content. growth expected share give that reach, availability continue to one so in partnership The whatever their leverage holistic viewing can such key expanding open purposes. media they accelerate Hisense the choice excited of data mix, to internet sell strategic for run of over Canada, ACR on market, they campaign currently

coming marketing sets smart available million While to and internet. currently as ACR to strategies and that enhance this exclusive data offer campaign to U.S. for VIDAA we grow World expected December. VIDAA with in catalyst the across is world capitalize operating adapting leveraging of TVs ad outside data well which in as enable in relationship which Unruly have beyond our the growth official for in control said is cup We November the a several and as enable also world data it's been adtech, million gardens accessible This we of its soccer XX opportunities to their blended TV positive reached years. substantially and differentiated to Tremor U.S. our and Tremor TV be data us sets, capabilities, optimization, solution, for which and is take years, that exclusive XX to half place rare ruling reach specifically the media approximately and as poised selecting now broad-based the content to In us and the SSP, as Hisense customers will during generally, FIFA on reaches the our to strategic CTV over and of advertising second have support will ACR have the expands election with open already exclusive an delivery. in partnership believe cycle. will such is Brands year, the to unique midterm while believe system. on intelligence also industry on sponsor VIDAA and data worldwide, the Qatar and data offer data leverage serves and VIDAA Cup, KPIs. customers. and of customized will desirable access household agencies Spearad advertise

operating this substantial sponsor, event. to the Hisense We expected this our is VIDAA. benefits TV awareness global relationship expand during achieve official of believe an with system increase in As will Hisense

additional and and we will and believe increasingly opportunities, Tremor As and leverage future and content this will we advertise of beneficiary Hisense VIDAA continue a advertising to this monetization, be sponsorship major pursue expect content to sports seek data. this exclusive customers on that differentiated exclusive unique

we which half the generally midterm We the tailwinds see video cycle, from from of will industry also level during ad spending year. believe the brings U.S. candidates heightened election second of

easier marketers the TV important screen and blended have it by to run blended of advertisers mechanism global Activating meets to on we media data make XX mix upon campaigns from the expand curate partnership that U.S. momentum for February, CTV incredibly TV To win XXXX. internet represents freedom, TV that apart intelligence with expanded all like their providing XXXX, datasets to million across targeting to data-driven measurements. objective. a for we campaigns business sets solution in and announced to for access our precision far So, advertisers video. reach household. In Tremor new and an with intelligence open our the TV

scale expect We increase and data ACR through to exclusive this to global partnership, with partnership various including VIDAA. our continue reach

predictive audience Comscore the leverage our customers available secure across data cookie against partnership in makes allows level to The pre-bid with April, CTV. customers. agreement activation platform Tremor for to contextual privacy enhance targeting our regulation within also behavioral based which granular better audience reach and Comscore changes cookie-free We the in early installation for on video audience free signals

in including businesses. multichannel from distributors including XX and growth broadcast Unruly XX across XXXX, verticals programming Our apps SSP critical and lifestyle, U.S. OTP added and partners new QX, supply sport, news, the in during video leading entertainment

QX, self-service of QX, also for to spend continue We in XXXX. our Unruly and strong XXXX CTRL, increase adoption PMP platform experienced during XXX% to which generate publishers a compare

travel engagement Business award gathering and across Tremor video over XX continued In-House differentiator across such companies the Insider, QX of most a in and as critical new and which ly, significant impress Tremor. Studio customer MediaPost added Creative Drum platforms, enhances XXXX logo increase healthcare, in CPG profitability today. creates relationship during in spend quarterly Tr. XXXX. to increase Tr. international each our to recognition meaningful serve ly a Digiday, key QX, major and and grew in verticals Additionally, it for Tr. logo and as XX% It on its advertisers stickier during reflected QR campaigns. one excited ly XXXX. ly the popular manner, XX% for particularly campaign compared codes feature creative QX, experience ad products custom touches. we and revenues of XXX% see remains adds year-over-year all Tr. year-over-year a to QX included request to in were creative And of most CTV creative was growth XXX%

it so more custom in executed Tr. ly Additionally, far and XXXX strength data-driven in did to XX% it video all continued XXXX see alone, in QX, QX. campaigns than

also recently Data Michigan, extremely proud a Marketing to been the for tourism the We Digiday Use Content Award ly for of XXXX produced have campaign are brand. Michigan awarded of for Pure for Best state Tr.

pence value increasing strong £X.X and is first as Sagi quarter extending discounted also the Finally, strength intermediate during return in to profitability benefit the our its March buyback X,XXX,XXX we be acquisition we for sheet, results. we over levels. our shareholders. $XX.X price as total balance pleasure now quarterly uncover abilities, share average Should buyback additional to the a on consider our buying spend program what we buyback X, and will The to financial to continue Tremor evaluate shares announce of and to XXX.XX review to It turn our repurchase cash opportunities near launched at believe at ordinary on that investors note the or million. million generating opportunities to of approximately my the and call of enable a last QX are well back $XX to The shares us program call, would term, program. and pleased million repurchase earning

Sagi Niri

million you, and highlights see through revenue we strong of will Today, as quarter. as QX, some record continued XXXX EBITDA Thank business financial organic excited second similar progress another as the XXXX. adjusted operational Tremor propelled revenue million of quarter first with of outstanding were are our quarter. revenue momentum in trends to efficient and an increased review compared operating We achieved Ofer. model. and to key pleased quarter drivers the I QX, profitability see by QX, performance, XX% $XX XXXX to and well for growth impressive revenue and net in to our and $XX the QX, international

which grew are for with was strong All QX the platform business towards to continue seasonally XXXX. growth, spends being and well XXXX we given more was war This through in to performance tends that future. versus FX constraints, to ongoing increasingly in as chain QX, the impressive is associated known in fact and amidst particularly supply on Ukraine. be growth CTV transacted inflation, programmatic growth. of to driven the through and platforms this XX% pressure macro And our organic move the we QX, CTV quarter budget weakest expect programmatic continue and well-positioned

During video period, grew the same revenues our X% net year-over-year.

in adjusted continue growth. strong also margin, our the while areas We critical future that drive very business investing of EBITDA to generate can

a For EBITDA XX% out QX, revenue. which point advantage competitive revenue generated reported reflected believe of XX% $XX.X out XX% adjusted of solution. adjusted us XXXX, end-to-end QX and net We of million, growth platform we of margin from XXXX, EBITDA gives our versus and

costs, significant scale. can and profitability We split sides both across profitable ability maximizing our efficiency of to leading to high platform economies model due have Tremor operating a with while end-to-end achieve revenue business to leverage operating opportunities. highly our around developed costs of

own our in infrastructure, also we third-party were which significantly results and We achieve server lower global we to efficiencies cost as than cloud operate exclusively if services. operate cost on

QX, generated of have believe industry previously, an of mentioned and And margins XXXX As revenue. EBITDA best-in-class we out operational profitability. net we adjusted margin XX%

Turning $XX.X activities cash QX, generated million cash operating for net We of to flow. from XXXX. our

no March and equivalents, of had with we cash cash $XXX.X XXst, As million debt.

XXXX also for quarter. We versus XXXX, during QX, XX% the share year-over-year. is in XXX% of diluted cash flow earnings conversion QX, $X.XX per experienced ordinary free Non-IFRS an increase $X.XX

Finally, our will outlook. now to I turn

quarter XXXX, expect to $XX the revenue in second $XX the $XX net we QX, million and of to of adjusted For be approximately of million. million range EBITDA XXXX

We Particularly our that XX%. remain fundamentals, to strong contribution and indicators. both We inflation, on QX, Tremor's even we growth advantage rising for find Tremor supply companies ongoing adjusted growing in call also prudent generate turn taking maintain to uncertainty, end-to-end profile such the model an adjusted and With potential of as can significant as model sheet focused also forecast continue that challenging recessionary expect and international. growth generating market, EBITDA under consistent the QX, enables operating enables factors efficient to amidst is EBITDA Ukraine in environment. rapidly profitability. healthy target believe Ofer. interest to XXXX future The can of best-in-class remain our during economic growth confident change a efficient profitability margin war current a to profitability, and and advantage rates, digital completed, and capitalized, the a constraints, model to enable a related well continued profitability. gives EBITDA and U.S. focus back This helping ex-TAC end-to-end headwinds, adjusted margin in macro continue excellent growth significant scores able periods more our robust economic my and of achieve meet remarks our will us CTV I'll approximately strong on investments be leverage, maintain operating balance well while durable CTV positioning advertising continuous industry in emphasis percentage us opportunities. of we investors to guidance we take on that This growth, and

Ofer Druker

quarter, Tremor Thank to which and well able you, second believe Tremor the great expected Sagi. specific the success for the XXXX. achieve first in we us positions was catalysts during half industry of

and focused platform for CTV to continue evidence our reflects its media data-driven see technology that video the advertisers, Tremor, partners, and end-to-end best shareholders. model We

sales to profitability Our ability to our continue and valuation M&A fuels and organically, to shares. ability buying invest marketing, opportunities continue grow and back at generate significant cash technology, business evaluate to rewarding in

reasons, Our in and replicate capitalizing conviction have stronger seeing for the is been in years. we the to model a than are we for model these ever because that attempts industry others

our our continue net to approximately XX% enhance CTV We and data of expand for promise to fulfill now our capabilities, of XX% our which net also and revenues. revenue and video accounts programmatic

We Spearad position as global are partnership acquisition, a with media ACR relationship excited and our as to well our start be unique VIDAA. in data to monetizing

that expect boosted truly the years, half Operator, an the the the open future by excited International. is have for for be and serve right I at time, needs cup, end-to-end say customer strong cycle with Over XXXX industry business believe holistic adtech, have to technology questions. world for now can second for honestly a bring and we model seasonally the are which built resilient we can our the we global Hisense that official call I'm what now and the investors' stronger partners. of sponsor the will which adtech we in strong and to We Tremor soccer the of. XX right for midterm election U.S. been industry in

Operator

Thank you.

session. Instructions] question our We And begin RBC Markets. the now Swanson Capital is [Operator from will Matt from first question-and-answer right. All

Matthew Swanson

those similar of those durability seems so guidance EBITDA being much a quarter, really there's you are in drive made top right right. where Spearad the though And the investments back more that be taking and Thank year for little shined Or line second despite be left needed are VIDAA, of kind guidance for there my specifically, up to around you in the headwinds. it incremental a of half off, to to able QX. now? Sagi, the you model All like leverage Could about beat revenue? the we're the maybe question. to bit guys seeing the picking dynamic kind make investments talk going of half you adjusted

Sagi Niri

Yes. Thanks Matt question. for the

us end-to-end that is model profitability what's I to think have our this business allowing magnificent margins.

in our more the As product earning, R&D per and to we challenging organic in QX is course, investing the already question, department, VIDAA/Hisense. growth, are of sales marketing, macro integrated we ad I your think, it that Again, very think fully became I and the of Spearad said, although, environment. keep into Unruly and server

of So, you think things to the will all enable mentioned an have and HX. I went, Ofer course, us amazing

Of course, us. to will everything according is at the macro what throw

Matthew Swanson

Ofer, standpoint QX Thank thing, a the positive lot one news. And you. just really that especially of maybe Netflix news a from CTV, good is around then, sentiment

add sentiment thinking from what what the and more of the between and health you think feels So, need you added streaming amount the potentially CTV ASBO. support. this impact couple largest service about Apple? this HBO, of And talk ways, And environment to could kind of the to then about a the being about on that market inventory one, what Netflix a says says maybe maybe that different Disney, subscription of from ad is overall long-term Max, the standpoint, it

Ofer Druker

question. you, Matt, for For the sure. Thank

of happening ASBO will now, follow because for also that, happened and to time I in that it targeting what's to it content pay show desktop we said get of with see this moving product order their think and to after the of willing first on. course, conversation, this products, display all, And is at or with it's this or for become with first set spoke with in and And are addressable line I TV we for see in subscriptions in ACR this market look it big And And intelligence products and extend statement will mobile, less first And really I people also, for meaning our this free. or of more us a us it. line to growing. TV phenomena conversation CTV. partly when content order targeting that that you in basically, good and that previous market of about So, targeting above and think that really okay, CTV, and declaration in to our library the is [ph] able. so of

opportunities more media think will also to that to it'll is I think web And of give buy open amount much this and think is model. this CTV it needs market. give just great that account, taking us really companies And all serve all more are these all the that in joining from basically can for these that will business the effort their that I our that demand more into advertisers the it for of market open and will coming opportunities increase the basically. I size

thought maybe probably we happen And that it it happen it. we it's even because felt that And come it will we faster. next think two the we or before in will will really about came I years. now, that excited are So, feel three that

Matthew Swanson

Right. Thank you.

Ofer Druker

us, that and also because is budgets movement purpose which it our from will digital. interest serve move for And the enhance point it'll last linear welcome is more to to basically CTV, that the probably

Operator

next from is We'll go question Mark to from Kelly our Stifel.

Mark Kelly

much. want next upfronts year, as have healthy of growth moving deceleration. the how quarter. obviously, end bit the Good just second, CTV, caused a Thank get fourth Curious the Great. this get morning. during start of after on tend just pieces It what did very Thanks first to thoughts week you. the you week. over, deaccelerate just much in for the you from on is the week? this perhaps And and would or year to get quarter, visibility some this I the to your with love to

Ofer Druker

bringing what Mark, can is acceleration in that basically is you is are front? or just about this question what to upside the about CTV to, you product CTV, the shorten asking this ask what

Mark Kelly

in guess, QX, in was XX%. was I QX, No, it high-XXs. the the growth CTV And in

sense the you would matter the why for get no but curious it, to from rate. just healthy a slice growth, delta like love -- Just exit how QX deceleration still get the to

Ofer Druker

Okay.

the Hisense like was look of else and -- a the is there not in CTV open that market. U.S., very XX% using I size that for long main development our basically it'll for which are part in the because of other of future Toshiba are of that of we Sagi that So, to we'll our all, along now have remember data data now. this not when when -- potential The it more that a future, ACR. Comscore also think amount anyone the offering part us, And of that And reachable And basically there that manner there in basically we front basically R&D and strong first targeting the in CTV a also and today, of a will the and I Because from And from basically, world is they efforts as lot is couple the focus clients. this was already the is developing think the things year of the about from talking with from of Toshiba. web, ACR data, us yesterday, got ACR that will data. in even the most build in -- which our like to this our we product the even the serve is be all a ACR -- already for of coming basically the Hisense CTV occasionally us and is belongs we think that I at indicated unique article that world CTV by the we more CTV of next -- at -- of second from our gathering. is time. the because we interesting you time, that look will which accelerate market, we database, that is growth accelerate got so that, and in portfolio of coming data half product that months differentiate available very and of when that meaningful support basically have a market the the we this is to this a is potential look believe very

that CTV, Regarding the and as see thing in already the coming the keep coming in the we this upfront we -- we quarter the feel quarter. growth the in said, and the booking, in we are next potential

a So, there CTV CTV now and something is we the that setting movement is growing. booking from But there confident that is in And on is is and overall a of that expected years, growing. that we feel one side quarter, feel strange believe we'll basically we so be to but accounts but taking in growth, in are that the looking of we the at we deliver the the market into we year. basically able still that and beginning situation

Mark Kelly

Thank right. much. very you All

Operator

Hill finnCap. Michael from is from question next Our

Michael Hill

of quite on of check that's Could can Thank or have if Great. XX% I a there's of percent say any from on give the sectors the sectors really you you. mix that you And the over platform? ad XX% diverse or your just ad is there's also, that it that if spend detail autos? spend, any

Ofer Druker

couldn't understand Again, I what…

Sagi Niri

will question. take I Ofer, that

Ofer Druker

Okay.

Sagi Niri

hey, for the Michael, question. thanks

I think verticals of is that. than of than out are our XX%, that CPG all less more that

in quite we the supply So, was is it lower because that little bit diversified course, front. are of on than a Automotive, chain the constraint past. of

we I today within of environment. think course, was growing X%. past, other and like to than And seeing a trend a In X%. the hospitality, are post-pandemic travel something it it's X% around like that, that

So, I think that answer I question. your

Michael Hill

very Thanks much. brilliant. That's Yeah.

Sagi Niri

Thank you.

Operator

Andrew Our Raymond from is James. question next from Marok

Andrew Marok

from strategic an importance coming the bit in, a wondering Was dig thinking perspective and I that, wanted M&A it the in does like change spoke kind has a what on in thinking of Hi. prepared of programmatic your behind then, briefly shopping growth any about business. of the row available that the in of Thanks in side -- that business? could side the you. And Thank on versus breakout. around third drivers to with valuations you the quarter in that list? the of know remarks. consecutive for and M&A changed the your coming This was the what's be the evaluations performance the XX%-plus But taking revenue my questions. on of non-programmatic on outlook, second, I little

Ofer Druker

with I will M&A. start an

capabilities so an And the also the the And experience for in always how want M&A. more that, we importantly, fully that organically, grow the and and have not into to choose ways, are we cash, both acquire. and have far of looking we them to business. but our We knowledge cash, also integrate to basically to doing companies just we our

quarter last and into the the Just already it's in to example, a ruling. in integrated end Spearad quarter, the of year we first for that, acquired fully October, indicate

an and evaluations for asked that year, that course, make we that are opportunities is acquisition think the we because the our basically So, direction, more I to of moving the time value now things And to to us market looked looking And to our parallel back on private more from examining at the bring that. and everybody on company's shareholders moving public generating even organic in and growth all reasonable, growth. to side. think we something for last to make sense are that are the the will these I

feel business so second because the performance, there that around that I about future performance and basically the -- we the growing ask on. performance growing with job that to a our CTV we people are On and that the that. that us performance more the think offering in for that is they're question that. that I also feel we the great connectivity bring think partners it us doing so I be will past team said along And and it it, it'll And you serve said said more and and in the will I in

marketing our can bring and XX partners we that and around XX attention be the channels something our behavior together basically to the are into ability DNA that I that, -- think to from to months. to in we that able putting also is us open the help knowledge, be benefit our with next CTV will new to performance able will

Andrew Marok

Thank you.

Sagi Niri

Ofer the just add and both have platform I we channels to -- said, performance just what think And using Yes. channel. like using the clients programmatic i.e. are that

their their on focus we're putting quarter sometime programmatic the the And on side front. some performance and effort putting

of sides executing end clients on bringing both sometimes because we us, nourishing the end vice and And it's arm other we one helping that we're are on one have. and the it's versa. clearly So, then

Ofer Druker

your question. we Hope that answered

Andrew Marok

you. Thank Definitely.

Operator

JMP And our Andrew from from next question Securities. is Boone

Andrew Boone

three million is $XX allocation quarter. possibility of Thank you capital Thanks a M&A Hi. and of Understood taking is the Good executed as like the in much. half buyback, the terms looks an talked there XXXX. from as back what's world acceleration morning. but the do million for my thinking just $XX shares contribution trading downturn, questions. release the you secondly, The EBITDA better help market press about capital and Shares given as buyback think And well cup, think just and political accelerate of guys last of in guys to meaningful, about you and comments? you versus about the us those allocation, Andrew's this may kind more in more we something question. allocation understand that, of then it the as getting anything to can capital about of just then kind so you just extend how times do But trading?

Ofer Druker

like agree the acquire, ability question the we the answer when look so deals we makes will will are -- I have I I I it and And that M&A. that more think you at context. about have with to So, we give and on. you and sense. cash

a change when -- [indiscernible] you will block can that, when have are cannot it to consider our more bring elaborate basically We we and like the that, we when buyback different around the also accelerating in Sagi But by value deal, it. manners, that are trying and about Basically, you in chance can to it's that. do reach course. of managed extending by shareholders to share

Regarding We I will mention mention the and it it just -- manage again. M&A.

I a cash a time, periods software, lower because that in, amount the still at cash. when think now, look but generation, of our usually in with think great market, basically of quarters, in that generated even cash we QX bringing like I we this software EBITDA our you that are position like we challenging and or keep and

grow XX year, XX%. and basically to translation, -- the I it's and in ability the not to or can on grow the in we and Russia we and what the think company. do do XX%, market to Ukraine. deal in target basically and order through to parallel that basically basically invaded for lost when accelerate basically, our company, acquisition grow ask in meaningful us is this M&A transition to also get our do right it we are Last gave be to and buyback giving this into organically. It's the searching looking and February because for And that to message move just an

-- market So, there so that that lot and after was it's the like of a noise around on. change and

M&A like even year So we look -- feel but -- And last also made to the buyback. that, year. the to the jump to the Sagi, again, organically. able in we're order do going this is you we looking we last year, very a and because to when now acquisition, go ready right a at -- big and organically we -- And that the we And that keep XX% we are to experience on knowledge have the for that means, more have that. elaborate we want we make think the I for good this. opportunity company

Sagi Niri

Yeah.

did repurchase So, started March of the $XX.X only because through first on million we first we of question program March.

today triple almost till we So, it.

it lot outside And out to manage or as economically you at the to Of are even and think looking plan. is to M&A, keep mentioned, think Tremor, shares. Tremor there synergies buying and I business, to enhance Ofer in there not as I of that increase course, scale we value our there a are our when valuation. -- the our opportunities sense the an the than we on current if a asked or and shareholders, to before. valuation sense grow of looking about will the conclude may thinking we But we valuation make lower business if makes But repurchase of enjoy M&A and order saw in to may an course, all long-term

Operator

Druker Ofer over turn I'd for remarks. to to call And closing like back now, Thank the you.

Ofer Druker

for Thank questions. your thank everyone. you for and you you Thank participation

profitability platform think from shareholders keep to And return one, the extremely look you growing and our strong that to I at period of of we uncertainty markets. growing end-to-end built are solution growth is demonstrate from generating results built that from we is profitability. of very able And again cash EBITDA, investment is and a flow. this keep we our that to important we great when the this that the profitability our -- time

for market of in And and this we're the that are the call here. of about ability in this And us. be [indiscernible], do and looking anticipation, think this enhancing a which with order very market this our bigger to data steps from the enable VIDAA, is mentioning year to much the why leadership launch movement positions at grow that are on CTV in we of keep our And player it half in people we future CTV CTV in position in data video we to basically in and important and to with partnership the a of we and market, that data very with our things the important our to changes is the condition. I more because is the second us are video. meaningful all believe

companies supply plans now the And believe OEM the us look -- talking biggest player business our that dominant And to even active that exclusivity that provide targeting with to all the company of with already we enjoy and it, demand to be their CTV this the that I we to to at measurement the paths, business. partners, more it the our can they in to growth property from at people that, grow OEM. will open a provide more look to and of more talk and basically enable And you are of media very a until side. data to of but also data small on U.S. markets here us, are ACR able about the that when be that's now, XX% will and now, help to it and and in, international we web have is data And partners We the as one us basically companies as measurement. about is with from the side, more basically gather. open world -- because of from a to targeting we mention capabilities it as about also group lot whoever the for the we the

future we So, are position looking very of on and we in. are I feel we that very we're to view, excited spot the that are success. the point strategic good of ahead from grow

So, thank you everyone.

Operator

you you, concludes for Thank That today's now ladies and And participating. gentlemen. may disconnect. you Thank call.

Nexxen International (NEXN) 17 May 222022 Q1 Earnings call transcript