Nexxen International Ltd. Q3 FY2024 earnings call

• Integration of MoVI's tech, data, and talent base has boosted performance, with rebrand to Nexen aiding in increased spending. - Key partnerships include with Stegwin, Connective Media by United Airlines, The Trade Desk, and SpeckedUp, driving growth in data licensing and client acquisition. - Added 138 new actively spending first-time advertisers in Q3, including 31 enterprise self-service and 2 independent agencies, and 61 new supply partners. - Data-driven political solution launched in Q3 capitalized on the U.S. election cycle, and Gen AI integration is underway to enhance platform capabilities in planning, activation, and monetization.

In Q3 2024, Nexon generated contribution ex tax of $85.5 million, a 12% growth from Q3 2023. Programmatic revenue was $81.6 million, a 10% y/y growth. CTV revenue was $29.7 million, a 52% y/y growth, representing 36% of programmatic revenue (up from 26% in Q3 2023). Video revenue expanded to 71% of programmatic revenue in Q3 2024 from 66% in Q3 2023. Display contribution ex tax grew 21% y/y, self-service contribution at SaaS 15%, PMT 52%, and mobile 4% y/y. Adjusted EBITDA was $31.6 million, a 49% y/y increase. Net cash from operating activities was $39.9 million, over three times the Q3 2023 figure. Non-IFRS diluted earnings per ordinary share was $0.14 in Q3 2024 vs $0.09 in Q3 2023.

• Reaffirmed full-year 2024 contribution ex tax guidance of $340 million to $345 million and programmatic revenue to be ~90% of full-year revenue. - Raised full-year 2024 adjusted EBITDA guidance to ~$107 million from ~$100 million. - Anticipates a strong Q4 2024 from contribution ex tax and adjusted EBITDA perspectives, with continued momentum from Q3. - Intends to invest in share repurchases and data/technology, including Gen AI integration across core products.

Q: Matt Swanson asked about how customers and advertisers are seeing new capabilities and going to market with them, and about CTV growth and political contribution in Q3.

A: Ofer Druker responded that the discovery tool is a key entry point, showing advertisers audience insights and activation, and CTV growth is driven by long-term tech investment, expanded publisher list, LG settlement, and market conditions.

Q: Laura Martin inquired about end-to-end platforms vs single-sided platforms and data scale.

A: Ofer Druker stated end-to-end platforms have advantages in efficiency, privacy, data synchronization, and Gen AI integration, while data is a core strength with unique datasets and ID graph solutions.

Q: Andrew Marok asked about sales execution changes and political in Q4.

A: Ofer Druker mentioned improved sales alignment with sharper messaging post-rebranding and political contribution in Q4 is part of growth but not the major driver.

Q: Mark Kelley asked about seasonality and CTV vs PMP growth.

A: Sagi Niri said Q1 2025 should be better with growth drivers in place, and Ofer Druker noted PMP is not a direct comparison to CTV as it includes other formats.

Q: Matt Condon asked about commerce media partnerships and Trade Desk partnership.

A: Ofer Druker mentioned a healthy pipeline for commerce media partnerships and the Trade Desk partnership is building traction, expanding globally.