New Thread

Ctrl

Innovid Corp. Stock Price: Quote, Forecast, Splits & News (CTV)

Perplexity Finance

Company Profile

Innovid Corp. Price & Performance (CTV)

Stock Performance

Updated Feb 12, 9:01 PM UTC

Innovid Corp.

$3.14USD

+$0.08 (+2.61%)

After Hours

+$0.0094 (+0.3%)

Open

$3.14

Market Cap

$473.89M

Year High

$3.40

High

$3.15

P/E Ratio

-34.9

Year Low

$1.47

Low

$3.14

Dividend Yield

0.00%

Volume

1.82M

Latest News

Valneva's Chikungunya Vaccine Faces New Precaution for Older Travelers
Apr 17, 2025
Valneva announced that U.S. health authorities have updated guidelines for its single-dose chikungunya vaccine IXCHIQ. While the vaccine remains recommended for adults traveling to outbreak regions, a new precaution applies to those aged 65 and older after rare serious adverse events were reported. Ongoing safety monitoring continues.1
Scientific Industries Appoints Nicholas Lavacca as CFO Amid Financial Turnaround
Apr 2, 2025
Scientific Industries has named Nicholas Lavacca as its new Chief Financial Officer, effective April 1, 2025. Lavacca brings decades of experience to the laboratory instruments company, which is working to improve its financial performance after recent operational gains and product innovations. The company aims for growth despite ongoing cash management challenges.2
Mediaocean Completes Innovid Acquisition, Creating New Ad Tech Powerhouse
Mar 21, 2025
Mediaocean has finalized its acquisition of Innovid, delisting the company from the NYSE and merging it with subsidiary Flashtalking. The combined entity, led by Innovid’s CEO, aims to offer advertisers a comprehensive, independent ad tech solution, challenging industry giants and emphasizing neutrality in digital advertising services.3

What's Happening

Peers

Earnings

Report Date

Nov 12, 2024

Reported Revenue

38.3M

Avg 1d Change

9.29%

Report Period

Q3 2024

Reported EPS

0.03

Implied Move 1d

—

Transcript

6m 25s

We use these non GAAP measures in managing the business and believe they provide useful information our investors, These measures should be considered in addition to and not as a substitute for our GAAP results. Reconciliations of the non GAAP measures to their corresponding GAAP measures where appropriate, can be found in the earnings release available on our website and in our filings with Hosting today's call are Zvighan Utter, Innovid Co Founder and CEO as well as Anthony Kleenie, Innovid's CFO, both of whom will participate in the Q and A session. I'll now turn the call over to Zviqa to begin.

6m 58s

Thanks, Lauren, and welcome everyone to our 2024 Third Quarter Earnings Call. Today, I'll review our 3rd quarter results, and provide an update regarding ongoing strategic initiatives and progress in the market. I'll then turn the call over to our Chief Financial Officer, Tony Calini, will provide further details with respect to our Q3 results, and full year 2024 outlook. Followed by Q and A. Revenue for the Q3 grew 6% year over year to $38,000,000 I'll explain the drivers momentarily. We continue to focus on driving revenue growth while expanding margins. Adjusted EBITDA grew 29% to $8,000,000 a 22% adjusted EBITDA margin this quarter. CTV ad serving and personalization revenue led the quarterly growth with a 12% year over year improvement and CTV share of total video impressions reached a new record high of 58%. We're encouraged that these CTV numbers continue to increase. Which gives us confidence in the future growth prospects of connected television. The growth we're seeing in CTV is fueled by the continuous shift of our clients budgets from linear to connected TV. And by more ad supported platforms existing and new, gaining scale. While we saw strong CTV growth, this growth was offset by lower mobile impressions which were down by 2%.

8m 25s

And desktop video impressions which were also weaker, expected. Up only 5%. Total revenue by the 3rd quarter came in below our expectations as a result of 3 main factors. First, we inflated demand for media in the market driven by the influx of political ads for the U. S. Election, many brands slowed their ad spending during this period. And at a greater than anticipated rate. Since our customers are brand, and not political advertisers, [indiscernible] spending softened after the election due to political dollars crowding out the traditional spend. There were more dollars that were spent in this election cycle than ever before. And was the primary reason for the slower revenue growth. While the election cycle now behind us, anticipating more normalized ad spend moving forward. Although we still expect to see some effect on our 4th quarter and full year revenue. 2nd, we also saw slower than anticipated growth in the cross sell of additional products to our clients. But we have driven broader product adoption with a number of large blue This happened at a slower rate than expected. Accordingly, our measurement offering delivered 1% growth this quarter. We remain confident that we are well positioned to drive enhanced value for our clients and have taken concrete steps to address our growth objectives.

9m 52s

Taking into account these factors and controlling what we can. We are actively realigning the sales organization and overall go to market to take better advantage of the cross sell opportunity and accordingly we expect to see an improvement in our cross sell motion in the coming quarters. Lastly, have multiple layers of service available on top of our technology. Depending on how much support the client needs. As we invest in AI and workflow automation, we're seeing an increase in the number of clients that are leverage our technology directly without an additional service layer. The software only model has both favorable unit economics and is a way for us to extend our reach to smaller advertisers. As this lower price option is an attractive alternative. In the 3rd quarter, adoption of this offering accelerated and impressions from those using our platforms without an additional service layer were 50% over the same period last year. While we expect some near term revenue pressure from this ongoing mix shift, software only offering inherently has a better margin is 1 of the reasons why our profitability was strong this past quarter. We believe having flexibility in our offerings that meet the various needs of the market with a strategic differentiate.

11m 10s

Especially considering Google's antitrust lawsuit and the uncertainty it brings to its customers. We are pleased to have a suite of offerings that can support a broad range of clients. We expect each of these 3 revenue headwinds to persist in the 4th quarter. Therefore, we have brought down our full year revenue guidance accordingly. But we remain encouraged by our long term opportunities. And the growth of our core PTV product The overall CTV market has significant room for expansion. We have strategically positioned Innovate to capitalize on its expected growth. As mentioned earlier, CTV video impressions have now reached 58% of all video impressions and we expect that number to continue to increase. Additionally, there are strong industry trends that are working in our favor. Including the increasing number of ad supported streaming platforms, [indiscernible] and the expected shift of live sports from linear to CTV. Not to mention the increased number of partners in our Harmony initiative as I'll discuss momentarily. We fully expect that revenue growth will reaccelerate in 2025 as we execute on several key initiatives. Including cross sell go to market enhancement, Harmony adoption and continued development of strategic partnerships. These initiatives should drive more normalized top line growth and set the stage for stronger performance.

12m 31s

In addition to the CTV growth this quarter, I am proud of our improved operational profitability. Adjusted EBITDA grew 29% hitting the higher end of our guidance. And adjusted EBITDA margin expanded to 22% up from 18% in the prior year. As we shared previously, our business model is scalable and efficient at its core. Importantly, the team has delivered margin expansion even in a lower growth environment. As market condition improves and our revenue growth reaccelerates, we expect to see a continued increase in profitability and remain committed to our long term goal of surpassing 30% adjusted EBITDA margin. As part of our continued drive, for operational efficiency, we are expanding the implementation of AI into Innovative's platform. The last couple of quarters, AA has been implemented into our workflow supporting faster and more seamless ways to create, monitor and ensure quality of campaigns. The implementation of AI is already starting to pay off. And it's having a positive effect on operational efficiency. Now I'd like to share some additional highlights from the quarter. First, we signed new clients and expanded our relationship with leading brands such as Toyota, Dollar General, ITD, American Signature, [indiscernible] among others. We also launched and expanded our partnership with Metrix, 1 of the world's largest streaming services.

13m 56s

Netflix rolled out its ad supported tier Inuit was selected as 1 of the 2 partners for impression verification within Netflix ad supported platform. This allows our clients to activate their Netflix campaign while leveraging the Innovate platform. We look forward to continuing to work closely with Netflix as they grow their ad supported business build their technology further to benefit advertisers. This new partnership with Netflix is a testimony to the strong industry position that Innovid holds and to the critical infrastructure we provide to key players in the market. This collaboration not only amplifies our visibility and also increases the number of ads we can serve as major ad supported platforms like Netflix gain scale. Additionally, last quarter we announced our planned strategic collaboration with Nielsen, a global leader in audience measurement. Nielsen is integrating Innovative's workforce solution [indiscernible] With the aim of providing seamless workflow and holistic view of the cross media ads universe. We're working together on defining and building the optimal path to provide the industry with a complete comprehensive measurement offering and are pleased with the progress underway. Early this year, we launched our strategic Harmony initiative with a goal to optimize CTV advertising at the infrastructure level.

15m 14s

We've been focused on expanding Harmony's adoption and launching new capabilities under the Harmony umbrella. We recently announced that LG ad solution the latest partner to join the Harmony initiative. Joining other top CTV platforms such as Roku and Vizio. The agency PMG an early adopter of Harmony is also running us our Harmony direct solution across its full portfolio of clients. In July, launched our Harmony Frequency solution in beta and we have already seen clear evidence of its effectiveness. Initial Harmony Frequency campaigns that were launched with DSP partners and some of the world's largest advertisers revealed a reduction of over 50% in audiences who were overexposed to the same ads. His initial results have several market defining implications. First, the ability to manage frequency over different publishers and media execution types can meaningfully reduce media waste for advertisers. 2nd, limiting the number of times that a viewer sees the same ad creates a better viewer experience for streaming services subscribers. We're delighted to lead the charge in shaping the future of TV advertising and to be recognized for it. During the quarter, Innovid, 2024 Ad Xchanger Award of Most Innovative TV Advertising Technology [indiscernible] I want to thank our partners, clients, and team for their innovation and efforts to make Tiva better.

16m 43s

In summary, I am proud of the team for delivering another quarter of growth while expanding margins. Despite a more challenging environment. Our team is continuing to develop strategic partnerships and products to create an open thriving CTV market, while expanding operation profitability and increasing margins. We anticipate continued CTV growth. And as we exit the U. S. Election cycle, and focus on more effective cross sell go to market motions, we expect to see revenue growth improvement and continued expansion in our business. Finally, our executive team Board of Directors remain confident in Innovid's long term strategy and growth potential. And today, we are announcing a stock repurchase program reinforcing our commitment to delivering both short and long term shareholder value. We do not believe our current stock price reflects the value of our business today or its long term prospects. Rather, we expect that the combination of our financial position highly differentiated product offering market expertise and strategic investments will allow us to enhance shareholder value in the quarters and years ahead. With that, I'll ask Tony to take us through the numbers and provide some insights into Q4 and full year expectations. Tony? Thank you, Zvieka, and good morning, everyone.

18m 6s

In addition to the operational progress revenue growth and notable partnerships that Zviqa just shared, we're also pleased to report another quarter of solid bottom line performance. Our focus on profitable cash generating growth resulted in the 9 straight quarter of adjusted EBITDA margin expansion and 7th consecutive quarter of generating cash from operating activities. As we've highlighted, Innovid's business has a highly leverageable operating model giving us the ability to deliver healthy free cash flow and expanding margins. And during these times where we experienced weaker ad spending, our ability to continue to grow the bottom line as a significantly faster rate than the top line remains strong. Now let's dig into the numbers. 3rd quarter revenue grew 6% year over year to 38,300,000 Breaking that down further, ad serving and personalization revenue was up 7% while measurement revenue grew 1%, As a percentage of revenue, ad serving and personalization made up 78% of the total, while measurement accounted for 22%. Ad serving and personalization is heavily influenced by continued healthy growth in our core growth driver, CTV video impressions. CTV revenue from ad serving and personalization grew 12% over the Q3 of 2023. While impressions grew 13%. As a percentage of total video impressions, CTV continues to represent a bigger piece of the pie at 58%, as compared to 55% in the Q3 of 2023.

19m 51s

In fact, 58% is the largest share to date for CTV video impressions of total video impressions. As we see the CTV share grow, we expect our results to represent more of a convergence of CTV growth and overall top line growth. As we've seen in the past number of quarters, inconsistent growth in mobile and desktop impressions continue to mute our overall growth as they typically lag CTV impressions. In Q3, mobile video volume declined by 2% and represented 32% of all video impressions. While desktop volume increased by 5% percent and reflected 11% of all video impressions. Going forward, we'd expect to see similar trends with CTV growing consistently and ultimately accelerating and mobile and desktop being less predictable. As Vikka mentioned, 1 additional positive trend we're seeing is expanded interest in our software only offering. We provide this alternative for customers to utilize our ad serving platform while managing the campaigns themselves. While naturally we charge a lower fee for platform only access, our unit economics improve, which supports further margin expansion. Currently, about a quarter of our ad serving revenue is on the service free model and we've seen that increase by about 30 percent since the beginning of the year.

21m 18s

Which is a more rapid transition than we anticipated. While this migration put pressure on our revenue growth this quarter, it's also 1 of the drivers behind our ability to deliver improved profitability. As well as expanding our potential customer base going forward. We expect that trend to continue into 2025 as we see this as a continued opportunity to meet our clients where they are and drive margin expansion along the way. Moving to measurement. Measurement revenue growth has decelerated throughout 2024 And while our measurement capabilities are a key part of the Zika touched on the steps we are taking as measurement continues to be a key part of our growth thesis. With the benefit of a revised and focused strategy, we expect our unique and measurement solutions to be a catalyst for reaccelerating revenue growth. Stepping back and looking at overall performance in Q3, while revenues fell short of expectations, the under We remain focused on expanding profitability and driving free cash flow while we manage through a challenging macro environment. We continue to have conviction in the inevitability of outsized growth once more brands shift spend to CTV driven by all the factors Vivek referenced earlier.

22m 50s

Now moving on to costs and expenses. Revenue less cost of revenue calculated out to 78 percent of revenue, which was consistent with Q3 last year. As we include more automation and AI into our offerings, and experience growth in our software only model, we expect to see incremental margin expansion. Q3 total operating expenses excluding depreciation, amortization dollars an increase of 2% from 27,400,000 dollars in the same quarter last year. Employee count at the end of September was 461 as compared with 460 at the end of Q3 2023.

23m 35s

We remain committed to managing our cost base effectively to drive improved growth and profitability and generate long term value for our shareholders. Pretax operating loss of 1,200,000 in Q3 improved 71% as compared to a pre tax operating loss of $4,000,000 in the same period last year. This improvement was driven by a larger percentage of revenue growth converting to earnings as well as lower depreciation, and amortization expense. We recorded a tax benefit in the quarter of 5,800,000 primarily related to truing up our full year effective tax rate for the revised full year outlook. Our effective tax rate continues to be volatile as we are still reserving tax assets in a valuation allowance and our pre tax income is relatively low. That said, cash taxes in the quarter were about 500,000 dollars Q3 net income increased to $4,700,000 or per share earnings of $0.03 This compares with a net loss of $2,700,000 and a per share loss of $0.02 in Q3 2023. The outstanding common share count at September 30 was 147,800,000 shares. Adjusted EBITDA in the 3rd quarter was $8,400,000 a $1,900,000 improvement or 29% increase as compared to 6,500,000 in Q3 last year. As I mentioned earlier, this is the 9th consecutive quarter of year over year adjusted EBITDA margin expansion.

25m 12s

As our margin improved to 22% this past quarter as compared to 18% last year. These improvements reflect the impact of sustained revenue growth, lower cost of revenues as a percentage of revenue and operating costs that grew nominally over the prior year. Demonstrating the leverage inherent in our operating model. I will now turn to the balance sheet and cash flow. We ended Q3 in a solid financial position and our balance sheet has never been stronger. At September 30, we had 34 $6,000,000 in cash and cash equivalents on hand, with no outstanding balance on our revolving debt facility. As a reminder, we have $50,000,000 available on that facility. On a net cash basis or to say it another way, cash and cash equivalents less outstanding revolver balance, the $34,600,000 on hand at the end of Q3, 2024, is a 25% improvement as compared to the $27,700,000 of net cash at the end of Q3 2023. During the quarter, net cash provided by operating activities was 6,000,000 dollars and free cash flow was 3,700,000 dollars as compared to $4,100,000 of free cash flow generated in Q3 2023. If we look at free cash flow on a trailing 12 month basis, we have seen an improvement of $12,100,000 compared to the same 12 month period ended September 30, 2023.

26m 46s

I'll now touch on our outlook for the Q4 and provide an update for full year 2024 expectations. We are proud of our ability to continue to execute in an uncertain environment and are confident in the underlying strength of our business and in our ability to grow revenue profitably. We remain committed to our long term financial target of 20% plus annual revenue growth and 30% plus adjusted EBITDA margin. That said, due to the specific factors that Zvieka shared, primarily pressure in Q3 and early Q4 from political ad spending and muted cross sell activity. As well as the trend towards software only offerings, we are lowering our full year revenue expectations. At the same time, given the strong profitability performance in Q3, and continued focus on operational efficiency, we are reaffirming the top end of our adjusted EBITDA guidance, and raising the lower end of the range, thus materially increasing the expectation around adjusted EBITDA margin. As a result, in the Q4 of 2020, $5,000,000 to $39,500,000 which would be flat with Q4 2023 at the midpoint. We expect Q4 adjusted EBITDA in a range of $8,000,000 to $10,000,000 as compared to 8,300,000 in the Q4 of 2023.

28m 13s

For the full year, we now expect total revenue in a range of 150.5 dollars to $152,500,000 representing 8% year over year growth at the midpoint. And adjusted EBITDA between 26.7 dollars $28,700,000 While it's a bit too early to get into specifics on 20 growth next year after a slower second half of 20 24. As Vikram mentioned, there are several secular industry trends that we expect to work in our favor. [indiscernible] by market adoption of our Harmony Suite. And as these growth drivers don't require incremental investments, we expect a continuation of margin and cash flow improvement throughout 2025. Finally, a word on capital allocation. As Vikram mentioned, our Board of Directors has authorized the company to implement a stock repurchase program of up to 20,000,000 dollars subject to the final terms of the program it's expected that repurchases will be dependent on market conditions, regulatory requirements and other considerations. This program is not expected to obligate us to acquire any particular amount of common stock and may be modified, suspended or terminated any time at the discretion of our Board of Directors. And the company may decline to move forward with the implementation of any repurchase plan.

29m 50s

We are focused on generating value for our shareholders. Repurchase program both effectively returns capital to our shareholders and demonstrates our conviction that the current share price does not reflect its true value today or over the long term. We will continue to deploy our capital in ways that we believe will result in the best return on investment and creation of long term value for our shareholders. Remain confident in Innovid's underlying business fundamentals and the long term secular market dynamics that we expect will drive outsized CTV growth. In the meantime, we are focused on providing exceptional product offerings to our clients, expanding operating margins and driving free cash flow generation. Putting us another step closer to achieving our long term targets. We will continue to mindfully invest in long term sustainable growth while efficiently managing our cost structure and strengthening our financial condition. This concludes our prepared remarks.

30m 54s

Zvieka and I are now happy to take your questions. Operator, please begin the Q and A session.

31m 1s

Thank you. We'll now be conducting the question and answer session. Thank you. And our first question is from the line of Matt Condon with Citizens JMP. Please proceed with your questions. Thank you for taking my questions. My first 1 is just on understood the crowding out due to political spend in the quarter. Was there any change in the competitive environment or any change in customer behavior that you noticed or any verticals that you would call out the particularly weak?

31m 53s

Yes.

31m 53s

I mean, we're in terms of competitive environment, there was no change. What we saw this election cycle The estimations are that [indiscernible] the investment in TV advertising and CDV advertising specifically in CTV advertising for political grew 500%. We definitely saw a heavy investment from political advertisers and since Innovid we don't run political ads. That pushed some of the large brands, the very large brands out. They kind of they waited out this Specifically, we saw a drop in CPG. [indiscernible] from that perspective, but I would say argue that most brands pulled back during this time. And in terms of [indiscernible] question in terms of the competitive environment, no. There's no specific changes either to products in market, pricing, no significant churn out of the order, nothing of that. It's pure volume shift due to the political That's very helpful. And then my second 1 was just on obviously, the slower than anticipated cross sell in the sub [indiscernible] what's changing there? I guess what went wrong before and what's the difference gives you confidence that that can accelerate in the future? Thank you so much.

33m 27s

Sure. And you're asking about the cross sell?

33m 31s

Yes. This is the sales force reorganization just to facilitate greater [indiscernible] Yes. Yes, absolutely. So as we shared we're not seeing we haven't seen the momentum we wanted to see the cross sell We believe we're making As I think we shared earlier in the year, that's 1 of the number 1 goals in the sales organization and realignment is to move the company from selling mostly the ad server to selling platform sale that includes several products including measurement, creative optimization and recently Harmony that motion the organization was structured in a certain way. As we saw, we're not seeing the results be [indiscernible] We believe in the strategy, we believe in the go to market, the way we're structured, incentivized did not yield the desired results. And for that reason, We learned from that and made changes. We believe we have a great suite of products that work very well together and we believe in the strategy So it's more about how do we execute it And we made some necessary changes and believe that we will see the results coming in next year.

34m 55s

Great.

34m 55s

Thank you so much. Thank you.

35m

Next question is from the line of Matthew Kost with Morgan Stanley. Please proceed with your question.

35m 7s

Good morning. Thanks for taking the question. Guess just mechanically, when we think about the impact of political rolling offs from 4Q to 1Q, if we just sort of isolate that. How much of an uplift in quarter on quarter growth or year on year growth should we expect see as we sort of exit this political cycle fully beginning of next year. And see the big brands reengage? That's question 1. And then the second question is just obviously, raised the midpoint of the EBITDA guidance, showing a lot of discipline on the cost side, great to see. I guess where are you prioritizing investment right now versus where are you looking for savings? Thank you.

35m 50s

Hey, Matt, this is Tony. I think I could take take that 1. So on the political side, I mean, this is definitely uncharted waters in terms of just the volume that Zika mentioned before of money that poured into this election cycle and where We're a week out from it now. We're happy to see there's been a little bounce back. I don't know, it's probably premature to say like what what normalization from this looks like. I think we'll have to go to the rest of the quarter. But we certainly have not seen this level of spend before and pull back from the brands. And again, the brands are our customers. And not the political advertisers. So I think it's 1 piece of essentially a number of drivers as we think about 2025 and Azveeta touched on a lot of those, between Harmony Nielsen being able to affect [indiscernible] a bit better than we have. And so those are all headwinds. And then the 1 other thing I'd call out is Zeke had mentioned, an increase that we've seen in essentially our software only only service offering or software only offering without the service layer on it and that that's something that we think is going to drive growth in the long term.

37m 5s

It may have some near term muting effects just on the price arbitrage between the different service offerings. So it's a combination of things. Again, I think we're pleased that seen a bit of a bounce back in the 1st week after the election, but it's very early to tell what the ultimate impact of it is. That said, I think we continue to believe strongly in the ability to grow double digits. Our long term target still remains 20%. All the growth drivers, all the fundamentals we've talked about before are are the same. And as you mentioned, in the meantime, we're focusing on driving profitability until we get some more momentum on the revenue side. In terms of priorities on that profitability, I mean, we've said all along, I mean, this is just an inherently leverageable operating model. And every incremental dollar comes in comes in, the unit economics are really strong. And so so we look always looking throughout the organization of ways to be ways to be more efficient. And I think that's showing up in the numbers right right now. And so we're pleased to see that and we'll continue to on that. So I don't know that there's 1 area that we're prioritizing over another.

38m 16s

Just trying to be kind of mindful stewards of the business and making sure that we invest in the things that are going to drive value and not spend money on the things that are not.

38m 31s

Great. Thank you.

38m 35s

Our next question is from the line of Please proceed with your question.

38m 43s

The first 1, I wanted to drill down on this I'll call it the self-service product, what you guys are calling a software only offering. Since you only work with the largest advertisers, would all of them be incented to take a cost a lower cost product and just do it themselves through self-service. So that this this will actually be a headwind to growth for all of 2025?

39m 7s

So with seen, hey, Laura, we've seen we're definitely encouraged by this, I have to say. It's an area we invested heavily in in. We talked a lot in the past calls and meetings about AI. We're happy to see that so we invest, we believe that the future is what you call self-service. It's a much more efficient model and we believe also scalable in terms of growth potential in the mid and long tail in terms of account size, and also from a global perspective. And if we look at the situation with Google and the anti we believe it's a great timing. I wouldn't anticipate it will grow so fast, but it's a great timing to have that product ready in market and to see the the adoption. To your question, some of the [indiscernible] it doesn't have to do with us as much as with the agencies. It's the in housing, their in housing services. And hiring employees. To use the system. And in that case, and you saw the large growth, we that you are right that this is a trend I wish we saw more of it, I have to say, than what happened here is it grew faster than we planned.

40m 24s

So in the short term, it hit the top line, but overall, we believe it can actually scale the top line while definitely scaling the bottom line. So this is something that we're seeing And I wouldn't put all the large brands in a single bucket. Some of them are still using outdated systems, not by Innovid, but other companies. So they're not all acting the same, but those who are looking for additional efficiency and control, I think the key here is the control and the data that they want to have put their own hands on keyboard rather than the agencies. We expect to see expansion of that. We don't provide guidance yet. I have to say we need to monitor this. How fast this will grow. But definitely this year we saw an increase in usage and overall it's a positive trend.

41m 12s

Okay. Helpful. And then on Nielsen, was interesting, your partnership with Nielsen. How do you make how does the money work there? How do you make money from your deal with helping Nielsen make a better product for them actually? So how do you make money from that?

41m 30s

Yes. So we haven't shared yet the financial arrangement since what we announced is our intent to partner on let's call it joint product or basically us empowering their product with our technology. It's something that we're still exploring. How exactly to make this work? I don't believe this is something that will generate revenue in Q4. This year But basically, clearly, when we're assuming this will develop into product in market, you can imagine that we have a structure in place, which we already negotiated a structure in place in terms of how we make money out of it. This is it's not going to be It's not going to be something that we hope to see, but something that's contractual and it's part of the revenue and the growth of the joint product. Still early days to say in terms of actually hitting the market generating revenue.

42m 40s

Okay. And my last 1 is on Google. Now that we have a new President, maybe this is moot, but 2 weeks ago, I would have asked if Google is if AppVet is forced to sell off their ad tech business, Is that better for you or worse for you because their ad tech business is separate and standalone from their YouTube and search first party?

43m 4s

We believe that regardless where this goes and who's the President, I mean, we know who's going to be the President. Overall, the amount of focus that this case has brought, you can read it in the Wall Street Journal, New York Times and things that we've been saying for 10 years about the importance of having an unbiased platform that is pure tech and not skewed by media bias. Something we've been saying for day 1 and we're very happy that it got all the way to the DOJ and to the press. That marketers, where the decision maker is and agencies, agencies I believe new more about this than marketers, but marketers are now way better educated about the challenges and risks that it has for them and the overall the market. So I believe the benefit is going to stay regardless if it's going to split or not. I think even if it would split that is something that's take many, many, many years. So I don't think it's anything that can happen even under a different administration anytime soon. Overall, I think it's a good thing that there's attention to the ad server and the importance the data and how the data could be used to potentially manipulate the outcomes.

44m 19s

And we believe it's something that more and more brands should understand the benefit of switching to innovate to an unbiased vendor to make sure that data are their data is in safe hands and is not being used in a way against them. Against the bottom line.

44m 36s

Super helpful. Thanks very much. Thanks, Pika.

44m 39s

Thank you.

44m 41s

The next question is from the line of Sean Patel with Susquehanna. Please proceed with your question. Good morning. This is Aaron Samuels on for Shyam. Thank you for taking our questions. Maybe starting off, CICA, ad supported CTV offerings like Prime Video and Netflix scaling quickly internationally Can you refresh us on how you're thinking about the international Absolutely. And thanks for bringing this in. Massive growth opportunity to the front lines. We kind of put this on the back burner. Year or 2 years ago with the economy slowing down, definitely and CTV not being a major trend outside of the U. S. It's clear that platforms like Netflix, Amazon and Disney, I would say also, Disney Plus all with premium content, all of them now offer an option to be ad based on CTV basically generate create markets in markets where CTV did not have the the Netflix phenomena to push people to use their smart TVs not through broadcast, but actually connect them. It's literally that moment when you connect your TV to the Internet with the WiFi and putting the password, that's the kind of once you do that and you enter the App Store to Netflix, you'll install also other applications, maybe local applications, And by these increase the amount of money that's moving from linear to CTV.

46m 24s

So that's a great opportunity. Our way of growth we have a deep integration in the U. S. With Netflix sorry, not just in U. S. We can deliver ads into Netflix anywhere. Currently, most of our revenue is coming from global brands that are U. S.-based. So there large auto, large pharma, etcetera. We believe it's a massive opportunity We're not giving guidance. It would be interesting to debate not on this call. Is 2025 the year that the trends you mentioned with Amazon and Netflix pushing really going to create a massive market outside of the U. S. For CTV. [indiscernible] It's yet to be seen. From an infrastructure perspective, we're already delivering every corner of the world except China. We're streaming ads in every every corner across thousands of publishers already. The key is about really adopting the tools and the platforms, but by brand that operate outside of the U. S. The key will be having significant scale enough scale to justify to move to Innovid.

47m 31s

Great. Thank you. And then Tony, maybe 1 for you on the margin trajectory. Obviously, the business is showing really nice operating leverage. In terms of the long term target of 30% EBITDA margin How would you say that you're tracking against that Any kind of color in terms of timeline here? Is this something that we could see in the next 1 or 2 years? Or is it maybe a longer term target? Yes, no, great question. I mean, we're tracking well against I think we've seen I'll call the stat out again because we feel good about 9 straight quarters of margin expansion, a quarter year over year margin expansion. 22% in Q3. And I think in terms of the the The timing to how we get to 30, a lot of it's going to be based on the market. And I think what we're trying to do is manage the business the best we can in a market where the growth hasn't been consistent.

48m 37s

And what we've always said is that as we see growth, we'll be investing behind it. And so that'll continue in the future. And if we look if we see an opportunity to kind of invest behind some growth and accelerate it, we'll do that. And there might be some near term margins will expand as fast. And in quarters like this where we've seen slower growth, that's where we can really lean in. So I think it's I'm not trying to avoid the question. It's really we're going to see the successes that we've had and the market adoption of CTV in general and kind of invest behind that. So So certainly, this is something that we could see ourselves getting to in the reasonably near term, somewhere over the next couple of years. And if you just kind of take the trajectory of where we've been and how we've grown EBITDA as a margin percentage over the last year or so, we'd expect that to happen. I mean, I know we said 2025, we'll give guidance when we do our Q4 results, but we certainly see the opportunity to expand margins again in 2025. 1 step closer to that 30%.

49m 49s

That's really helpful. Thank you.

49m 53s

Thank you. At this time, we've reached the end of our question and answer session. I'll hand the floor back to Zviqa Neder closing remarks. Thank you.

50m 4s

We are very proud to deliver another quarter of profitable growth despite the underlying challenges. This result maintained our path to trajectory towards our long term targets Today, we remain well positioned to the exciting opportunity of CTV growth and we're taking the necessary step to reaccelerate our top line growth and I look forward to keeping all of you updated about our progress. Thank you very much and have a wonderful day. Goodbye.

50m 35s

This will conclude today's conference. May disconnect your lines at this time. Thank you for your participation.

Key Insights

Q3 revenue grew 6% year-over-year to $38.3M, driven by 12% growth in CTV ad serving and personalization, with CTV now representing a record 58% of total video impressions; however, total revenue came in below expectations due to political ad spend crowding out brand advertisers, slower cross-sell activity, and a shift toward software-only offerings.
Adjusted EBITDA increased 29% year-over-year to $8.4M (22% margin, up from 18%), marking the ninth consecutive quarter of margin expansion; profitability benefited from increased adoption of the higher-margin software-only model, now accounting for about a quarter of ad serving revenue.
Full-year 2024 revenue guidance was lowered to $150.5M–$152.5M (8% YoY growth at midpoint) due to ongoing headwinds, but adjusted EBITDA guidance was raised to $26.7M–$28.7M, reflecting continued focus on operational efficiency and margin expansion.
Strategic initiatives included new and expanded partnerships (notably with Netflix and Nielsen), further adoption of the Harmony initiative (with partners like LG, Roku, and Vizio), and increased investment in AI and workflow automation to drive efficiency and scalability.
Management remains confident in long-term growth prospects, targeting 20%+ annual revenue growth and 30%+ adjusted EBITDA margin; a $20M stock repurchase program was announced, reflecting conviction in the company’s value and commitment to shareholder returns.

Recent Transcripts

Q3 revenue grew 6%, with strong CTV momentum but revenue headwinds from political ad spend.

Innovid delivered double-digit revenue growth, margin expansion, and strong CTV momentum in Q2 2024.

Q1 2024 revenue grew 21% with significant margin and cash flow improvements.

Q4 revenue grew 15% with expanding margins and positive free cash flow, exceeding guidance.

21% Q4 EBITDA Margin, Doubled YoY

Income Statement

Revenue

	2019	2020	2021	2022	2023
Revenue	$56M	$69M	$90M	$127M	$140M
Cost of Revenue	$11M	$12M	$18M	$30M	$34M
Gross Profit	$46M	$56M	$73M	$97M	$106M
Gross Profit %	81%	82%	80%	76%	76%
R&D Expenses	$15M	$18M	$25M	$31M	$27M

2019

2020

2021

2022

2023

Revenue

$56M

$69M

$90M

$127M

$140M

Cost of Revenue

$11M

$12M

$18M

$30M

$34M

Gross Profit

$46M

$56M

$73M

$97M

$106M

Gross Profit %

81%

82%

80%

76%

R&D Expenses

$15M

$18M

$25M

$31M

$27M

Cash Flow

Net Income

	2019	2020	2021	2022	2023
Net Income	-$7.3M	-$812K	-$11M	-$18M	-$32M
Dep. & Amort.	$431K	$730K	$661K	$6.1M	$13M
Def. Tax	$25K	$213K	$0	$0	$0
Stock Comp.	$378K	$584K	$3.3M	$14M	$20M
Chg. in WC	-$2.5M	-$4.9M	$687K	$1.6M	$117K

2019

2020

2021

2022

2023

Net Income

-$7.3M

-$812K

-$11M

-$18M

-$32M

Dep. & Amort.

$431K

$730K

$661K

$6.1M

$13M

Def. Tax

$25K

$213K

Stock Comp.

$378K

$584K

$3.3M

$14M

$20M

Chg. in WC

-$2.5M

-$4.9M

$687K

$1.6M

$117K

Balance Sheet

Cash

	2019	2020	2021	2022	2023
Cash	$12M	$16M	$157M	$38M	$50M
ST Investments	$261K	$30K	$142K	$10M	$165K
Cash & ST Inv.	$12M	$16M	$157M	$48M	$50M
Receivables	$26M	$35M	$35M	$44M	$46M
Inventory	$0	$1	$1	$0	$0

2019

2020

2021

2022

2023

Cash

$12M

$16M

$157M

$38M

$50M

ST Investments

$261K

$30K

$142K

$10M

$165K

Cash & ST Inv.

$12M

$16M

$157M

$48M

$50M

Receivables

$26M

$35M

$44M

$46M

Inventory

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

Overview
Latest News
Earnings
Income Statement
Cash Flow
Balance Sheet
Related

Earnings

Report Date

Nov 12, 2024

Reported Revenue

38.3M

Avg 1d Change

9.29%

Report Period

Q3 2024

Reported EPS

0.03

Implied Move 1d

—

Transcript

6m 25s

6m 58s

8m 25s

9m 52s

11m 10s

12m 31s

13m 56s

15m 14s

16m 43s

18m 6s

19m 51s

21m 18s

22m 50s

23m 35s

25m 12s

26m 46s

28m 13s

29m 50s

30m 54s

Zvieka and I are now happy to take your questions. Operator, please begin the Q and A session.

31m 1s

31m 53s

Yes.

31m 53s

33m 27s

Sure. And you're asking about the cross sell?

33m 31s

34m 55s

Great.

34m 55s

Thank you so much. Thank you.

35m

Next question is from the line of Matthew Kost with Morgan Stanley. Please proceed with your question.

35m 7s

35m 50s

37m 5s

38m 16s

Just trying to be kind of mindful stewards of the business and making sure that we invest in the things that are going to drive value and not spend money on the things that are not.

38m 31s

Great. Thank you.

38m 35s

Our next question is from the line of Please proceed with your question.

38m 43s

39m 7s

40m 24s

41m 12s

41m 30s

42m 40s

43m 4s

44m 19s

44m 36s

Super helpful. Thanks very much. Thanks, Pika.

44m 39s

Thank you.

44m 41s

46m 24s

47m 31s

48m 37s

49m 49s

That's really helpful. Thank you.

49m 53s

Thank you. At this time, we've reached the end of our question and answer session. I'll hand the floor back to Zviqa Neder closing remarks. Thank you.

50m 4s

50m 35s

This will conclude today's conference. May disconnect your lines at this time. Thank you for your participation.

Key Insights

Q3 revenue grew 6% year-over-year to $38.3M, driven by 12% growth in CTV ad serving and personalization, with CTV now representing a record 58% of total video impressions; however, total revenue came in below expectations due to political ad spend crowding out brand advertisers, slower cross-sell activity, and a shift toward software-only offerings.
Adjusted EBITDA increased 29% year-over-year to $8.4M (22% margin, up from 18%), marking the ninth consecutive quarter of margin expansion; profitability benefited from increased adoption of the higher-margin software-only model, now accounting for about a quarter of ad serving revenue.
Full-year 2024 revenue guidance was lowered to $150.5M–$152.5M (8% YoY growth at midpoint) due to ongoing headwinds, but adjusted EBITDA guidance was raised to $26.7M–$28.7M, reflecting continued focus on operational efficiency and margin expansion.
Strategic initiatives included new and expanded partnerships (notably with Netflix and Nielsen), further adoption of the Harmony initiative (with partners like LG, Roku, and Vizio), and increased investment in AI and workflow automation to drive efficiency and scalability.
Management remains confident in long-term growth prospects, targeting 20%+ annual revenue growth and 30%+ adjusted EBITDA margin; a $20M stock repurchase program was announced, reflecting conviction in the company’s value and commitment to shareholder returns.

Innovid Corp. Price & Performance (CTV)

Stock Performance

Open

Market Cap

Year High

High

P/E Ratio

Year Low

Low

Dividend Yield

Volume

Latest News

What's Happening

Peers

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights

Recent Transcripts

Income Statement

Cash Flow

Balance Sheet

Go Deeper

Related

Go Deeper

Recent Transcripts

Latest News

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights