Release Date: August 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Innovid Corp (CTV, Financial) reported a 10% year-over-year revenue growth in Q2 2024, reaching $38 million.
- Adjusted EBITDA increased by 29% to $5.9 million, with an improved margin of 15.5%, up from 13% in the previous year.
- The company launched the Harmony initiative, including Harmony Direct and Harmony Frequency, aimed at optimizing CTV advertising and improving efficiency.
- Innovid Corp (CTV) announced a strategic collaboration with Nielsen to enhance cross-media ad measurement, strengthening its market position.
- The company expanded its client base with new partnerships, including notable brands like WNBA, Eli Lilly, and Amazon, showcasing its growing influence in the industry.
Negative Points
- Despite revenue growth, Innovid Corp (CTV) reported a net loss of $10.5 million for Q2 2024.
- The macroeconomic environment remains uncertain, with potential impacts from the US election cycle affecting future performance.
- Desktop video volume decreased by 9%, indicating challenges in certain segments of the business.
- Retail was identified as a weak vertical in Q2, reflecting broader macroeconomic challenges in the sector.
- The company anticipates continued uncertainty in the second half of 2024, which could impact revenue growth and market dynamics.
Q & A Highlights
Q: Can you discuss the common thread among the new customer wins and whether they are entering through ad serving or a broader product suite?
A: Zvika Netter, CEO, explained that Innovid is known for its ad serving, especially in CTV and online video. Customers often switch from Google to Innovid as they invest more in CTV. Some start with measurement or DCO on top of Google ad server and then switch to Innovid. The focus on product excellence and neutrality, especially amid antitrust developments against Google, are key reasons for these wins.
Q: What are the drivers for the sequential revenue acceleration in the second half of the year?
A: Anthony Callini, CFO, noted that the company anticipated building momentum throughout the year, driven by volume increases, cross-selling, and upselling. CTV growth, with video impressions and revenue both growing over 20% for two consecutive quarters, is a primary driver. The company is positioning itself to capitalize on future growth opportunities like live sports and ad-supported streaming.
Q: How has new CTV inventory impacted the ecosystem, and what role has Amazon's Prime Video played?
A: Zvika Netter highlighted that CTV inventory is growing as more content is consumed via connected TVs. Live sports are a significant driver due to their exclusivity and live nature. Amazon Prime Video is a part of this growth, contributing to a 21% increase in ad delivery volume year-over-year.
Q: Can you elaborate on the strategic collaboration with Nielsen and its expected impact?
A: Zvika Netter expressed excitement about the partnership, which aims to integrate Innovid's platform with Nielsen's for better workflow and measurement solutions. This collaboration is expected to enhance Innovid's position in TV and CTV measurement, providing long-term growth opportunities and signaling Innovid's credibility in the industry.
Q: With the Harmony initiative rolling out, what are the expected future investments, and how will OpEx trends look?
A: Anthony Callini stated that the Harmony initiative was developed within the existing R&D budget, with no significant uptick in expenses. Future investments will focus on innovation with the current team. The business model's leverage allows for efficient scaling, and the company aims to maintain a balance between growth investments and revenue.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
