Nexxen International Ltd. Q4 FY2024 earnings call

• Post-integration of Amobi in 2023, the focus shifted to driving stronger sales execution, enhancing brand recognition, and organic product and data innovation.
• Emphasized AI initiatives, with plans to deploy generative AI across core products to simplify platform usability and improve targeting precision.
• Notable growth in CTV revenue due to factors like stronger sales execution, partnership with LG, and tailwinds from the 2024 U.S. election cycle.
• Added 112 new first-time advertisers and 73 new supply partners in Q4 2024.
• Streamlined trading structure to a single U.S. ordinary share listing on NASDAQ in Q1 2025.
• Attracted new talent across sales, marketing, and product teams at various levels.

In the fourth quarter of 2024, programmatic revenue reached $98.7 million, representing a 15% year-over-year growth. CTV revenue was $37 million, marking an 86% year-over-year increase and accounting for 38% of programmatic revenue. Display contribution ex-TAC grew 9% year-over-year, self-service contribution ex-TAC increased 21%, PMPs contribution ex-TAC grew 20%, and data products contribution ex-TAC saw a 102% year-over-year growth. For full-year 2024, contribution ex-TAC retention rate climbed to 102% from 73% in 2023. The 2025 guidance anticipates contribution ex-TAC of approximately $380 million, with programmatic revenue expected to make up around 90% of the full-year 2025 revenue.

• Full-year 2025 contribution ex-TAC is anticipated to be approximately $380 million, with programmatic revenue expected to account for ~90% of full-year 2025 revenue.
• Expect to generate approximately $125 million of adjusted EBITDA for full-year 2025.
• Focus on integrating generative AI across core products to drive better platform usability and returns on advertising spend.
• Current $50 million share repurchase program ongoing, with a new $50 million ordinary share repurchase program approved, aiming for continued share repurchases.
• Aim to grow revenue relationships, attract new partners, and expand CTV, omnichannel, and data licensing revenue.

• Unexpected changes in business operations that could impact results.
• Unforeseen macroeconomic or industry conditions that might materially affect actual results compared to forward-looking statements. These risks are detailed in the company's SEC filings, including the 'Risk Factors' section of the most recent annual report on Form 20-F.

Q: Matt Swanson asks about go-to-market improvements and building on momentum into 2025.

A: Ofer Druker talks about brand improvement, data usage, and the strength of the end-to-end solution, stating that the brand tightening and data usage are helping reach publishers and advertisers.

Q: Laura Martin asks about data product growth and U.S. GAAP transition.

A: Sagi Niri and Ofer Druker discuss data product usage, ACR data, and plans for transitioning to U.S. GAAP, with Sagi mentioning ongoing discussions in the audit committee and board meeting around the transition.

Q: Andrew Marok asks about supply side trends in CTV.

A: Ofer Druker mentions that the unique demand from the sales team helps in growing the publisher base, as publishers are looking for more partners that can bring unique demand.

Q: Matt Condon asks about generative AI and SMB focus.

A: Ofer Druker discusses how AI simplifies platform use and has the potential to address smaller, SMB-type performance advertisers by lowering barriers to entry and enhancing performance