NEW YORK--(BUSINESS WIRE)--Innovid (NYSE: CTV), an independent platform for the creation, delivery, measurement, and optimization of advertising across connected TV (CTV), linear TV, and digital, today announced industry-wide availability of the latest self-service feature within its CTV Composer authoring tool. For the first time ever, brands and publishers can create interactive CTV experiences in-house, at scale, for live streaming events. With live events increasingly migrating to streaming, advertis ...

NEW YORK--(BUSINESS WIRE)--Innovid (NYSE: CTV), an independent advertising platform for the delivery, personalization, and measurement of converged TV across linear, connected TV, and digital, today announced that it will release fourth quarter and full year 2023 financial results before the market open on Tuesday, February 27, 2024. The Company will host a conference call to discuss its results at 8:30 a.m. ET that same day. Zvika Netter, Co-founder and Chief Executive Officer, and Anthony Callini, Chief ...

Financial Data and Key Metrics Changes - The company reported Q3 revenue growth of 5% year-over-year, totaling $36.2 million, with adjusted EBITDA more than doubling to $6.5 million compared to Q3 last year [37][45][48] - Adjusted EBITDA margin improved to 18%, up from 8% in Q3 last year and 13% in Q2 [48][36] - Positive free cash flow of $4.1 million was generated, an improvement of 78% from $2.3 million in Q3 2022 [20][37] Business Line Data and Key Metrics Changes - CTV revenue from ad serving and personalization grew 9% year-over-year, while measurement revenue increased by 8% [10][17] - Ad serving and personalization accounted for 77% of total revenue, with measurement making up 23% [17] - The company achieved a revenue less cost of revenue ratio of 77%, improving from 75% in Q3 last year [47] Market Data and Key Metrics Changes - CTV video impression volume grew by 7%, with 55% of all video impressions coming from CTV [46] - Mobile volume represented 35% of all video impressions, growing by 8%, while desktop volume decreased by 12% [46] - The company noted a significant shift in TV viewership, with linear TV viewership falling below 50% in the U.S. for the first time [10] Company Strategy and Development Direction - The company is focused on expanding margins and positioning for accelerated growth as the macro environment improves [8][9] - Innovid is investing in generative AI technologies to enhance its platform, allowing clients to create unique ads based on data feeds [12][40] - The company plans to showcase product innovations and strategies for 2024 at the upcoming Investor Day [42][99] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the ad demand environment, noting some positive trends while acknowledging ongoing uncertainties [78] - The company anticipates continued strong financial performance in Q4, raising its revenue and adjusted EBITDA guidance for the full year [36][21] - Management highlighted the importance of optimizing CTV ad investments and the potential for significant growth as the market normalizes [41][91] Other Important Information - The company ended Q3 with $47.7 million in cash and cash equivalents, with $20 million drawn on its revolving debt facility [20] - The new CFO, Anthony Callini, emphasized the company's scalable model and potential for healthy margins [43][91] Q&A Session Summary Question: Can you frame the opportunity for Instant Optimization and its expected influence on results? - Management discussed the integration of platforms to enhance campaign strategy and optimization, leveraging unique data sets [52][53] Question: What is the current brand advertiser sentiment and how does it vary across verticals? - Management noted that CPG and pharma are investing more aggressively, while financial services and technology companies are seeing decreases [62][64] Question: How should investors think about Innovid's margin profile going forward? - Management indicated a target of 30%+ adjusted EBITDA margins, emphasizing the scalability of the business model [68][91] Question: How does Innovid benefit from the trend of live sports streaming? - Management highlighted that live sports are a significant driver of viewership behavior and brand advertising, which is beneficial for the company [92][93]

Q3 2023 Financial Highlights1 2 | Disclaimers Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1996. The Company's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipat ...

Revenue Performance - Total revenue increased by $1.8 million, or 5%, from $34.5 million in Q3 2022 to $36.2 million in Q3 2023, driven by ad serving volume growth and measurement solution expansion [274]. - Total revenue increased by $7.8 million, or 8%, from $93.4 million in the nine months ended September 30, 2022, to $101.3 million in the same period in 2023 [294]. - Innovid anticipates that revenues from US sales will continue to constitute a majority of total revenues in future periods [270]. Advertising Trends - CTV accounted for 55% of all video impressions served by Innovid in Q3 2023, representing a year-over-year increase of 7% in CTV video impressions [261]. - The growth of CTV advertising is a key driver for Innovid's revenue, as TV ad spend shifts from linear to CTV [290]. Expenses and Cost Management - Research and development expenses decreased by $0.8 million, or 11%, from $7.3 million in Q3 2022 to $6.5 million in Q3 2023, primarily due to a reduction in personnel costs [278]. - Sales and marketing expenses decreased by $2.6 million, or 19%, from $13.7 million in Q3 2022 to $11.2 million in Q3 2023, driven by lower headcount [279]. - Research and development expenses decreased by $3.8 million, or 16%, from $24.3 million in the nine months ended September 30, 2022, to $20.5 million in the same period in 2023 [298]. - Sales and marketing expenses decreased by $4.1 million, or 11%, from $38.4 million in the nine months ended September 30, 2022, to $34.3 million in the same period in 2023 [301]. Impairments and Losses - Goodwill impairment increased by $14.5 million in Q3 2023, representing 14% of total revenue [283]. - Goodwill impairment increased by $14.5 million, or 100%, from $0.0 million in the nine months ended September 30, 2022, to $14.5 million in the same period in 2023 [303]. - Operating loss for Q3 2023 was $(4.3) million, or (12)% of revenue, compared to $(6.0) million in Q3 2022 [293]. - The net loss margin for the nine months ended September 30, 2023, was (30)%, compared to (16)% for the same period in 2022 [331]. Cash Flow and Financial Position - As of September 30, 2023, the company had cash, cash equivalents, and restricted cash of $48.1 million and net working capital of $73.4 million [323]. - For the nine-month period ended September 30, 2023, net cash provided by operating activities was $7.4 million, with a net loss of $(30.3) million adjusted for non-cash charges of $35.1 million [328]. - Net cash provided by investing activities for the nine months ended September 30, 2023, was $1.9 million, a significant improvement from net cash used of $106.8 million in the same period of 2022 [341]. Future Outlook and Strategy - The company plans to continue investing in advanced measurement capabilities to meet evolving advertiser needs in the CTV ecosystem [269]. - Innovid aims to attract new customers from competitors and expand its market share in the digital advertising space [267]. Other Financial Metrics - Finance income decreased by $7.6 million, or 72%, from $(10.7) million in the nine months ended September 30, 2022, to $(3.0) million in the same period in 2023 [319]. - Depreciation, amortization, and long-lived assets impairment increased by $5.3 million, or 153%, from $3.5 million in the nine months ended September 30, 2022, to $8.8 million in the same period in 2023 [302]. - Interest expenses for the nine months ended September 30, 2023, were $1.1 million, up from $0.4 million in the same period of 2022 [326]. - The company’s stock-based compensation for the nine months ended September 30, 2023, was $15.6 million, compared to $10.1 million in the same period of 2022 [331]. - The company’s legal claims expenses for the nine months ended September 30, 2023, totaled $1.5 million [331]. - The company recorded a net provision of $2,858 for the nine months ended September 30, 2023, representing an effective tax rate of (10.4)% [306]. - The New Revolving Credit Facility requires the company to maintain an adjusted quick ratio of at least 1.30 to 1.00 [325]. - The company recognized revenue when customers obtain control of promised services, following ASC Topic 606 [338].

Innovid Corp. (NYSE:CTV) Q2 2023 Results Conference Call August 8, 2023 8:30 AM ET Company Participants Brinlea Johnson - IR Zvika Netter - Co-Founder and CEO Tanya Andreev-Kaspin - CFO Conference Call Participants Jared Pomerantz - Susquehanna Matthew Condon - JMP Securities Shweta Khajuria - Evercore ISI Laura Martin - Needham Operator Good day, ladies and gentlemen, and welcome to the Innovid Second Quarter 2023 Earnings Call. Our host for today’s call is Brinlea Johnson, Investor Relations. [Operator In ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ____________________________ Innovid Corp. (Exact name of registrant as specified in its charter) ____________________________ (State or other jurisdiction of incorporation or organization) (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXC ...

Financial Data and Key Metrics Changes - Q1 revenue grew 18% year-over-year to $30.5 million, exceeding guidance by 5% [16][77] - Adjusted EBITDA was positive at $0.1 million, representing a margin of 0.5%, compared to a negative 12% in Q1 of the previous year [20][16] - Q1 net loss was $8.6 million, or a per share loss of $0.06 [20] Business Line Data and Key Metrics Changes - CTV volume grew 13% year-over-year, representing 54% of all video impressions, up from 49% in Q1 2022 [12] - Mobile volume decreased by 9% and represented 34% of all video impressions, while desktop volume decreased by 10% and was 12% of all video impressions [12] - Measurement revenue grew 1% on a pro forma basis, representing 23% of total revenue in Q1 [77] Market Data and Key Metrics Changes - U.S. revenue grew 18% year-over-year, representing 91% of total revenue, while international revenue grew 14% year-over-year, representing 9% of quarterly revenue [31] - The overall advertising market remains challenged, but there are indications of modest firming [17] Company Strategy and Development Direction - The company is focused on profitable growth and scaling up measurement capabilities as a long-term strategy [18] - Innovid aims to capitalize on the shift to CTV and the growing demand for ad-serving and measurement solutions [10][18] - The company is optimistic about the retail media opportunity, particularly through partnerships like the one with Walmart [53] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the remainder of 2023, noting improvements in advertiser demand trends [48][30] - The company expects to see a growth multiplier effect as the ad market recovers, with a focus on cross-selling to existing customers [17][29] - Management remains focused on controlling costs while investing in R&D and new technology [51][62] Other Important Information - Q1 operating expenses were $36.7 million, up 5% year-over-year, primarily due to stock-based compensation and the TVSquared acquisition [20] - The company ended the quarter with $45 million in cash and cash equivalents and $20 million in debt [33] Q&A Session Summary Question: How did the macro situation affect the company's performance? - Management indicated that the outperformance was driven by company performance and key product strengths, despite market softness [2][3] Question: What is the company's outlook on generative AI? - Management discussed the integration of generative AI into their platform, enhancing creative optimization and measurement capabilities [21][22] Question: How is the company managing pricing and cost controls? - Management noted that they are exploring flexible pricing structures and maintaining focus on EBITDA growth while controlling costs [43][44] Question: What are the trends in advertiser demand? - Management observed a cautious but improving demand trend, with continued spending on CTV despite overall media spend shrinking [49][48] Question: What is the company's strategy regarding retail media? - Management highlighted retail media as a significant opportunity, emphasizing ad-serving and creative personalization as key areas of focus [53][65]

Financial Performance - Total revenue increased by 18% year-over-year, from $25.9 million in Q1 2022 to $30.5 million in Q1 2023, primarily due to the full inclusion of the TVS business [223]. - Adjusted EBITDA for Q1 2023 was $145,000, a significant improvement from a loss of $3,009,000 in Q1 2022, resulting in an Adjusted EBITDA margin of 0.5% compared to (11.6)% in the previous year [244]. - The company reported a net loss of $8,563,000 in Q1 2023, with a net loss margin of (28)%, compared to a net loss of $7,449,000 and a margin of (29)% in Q1 2022 [244]. - Net cash provided by operating activities was $368,000 in Q1 2023, a turnaround from net cash used of $7,213,000 in Q1 2022 [263]. Revenue Sources - CTV accounted for 54% of all video impressions served by Innovid in Q1 2023, representing a 13% year-over-year increase in CTV video impressions [205]. - Innovid's revenue from international customers was approximately 9% of total revenue in 2023 [207]. - The majority of the Company's revenues are derived from ad serving services, focusing on standard, interactive, and data-driven digital video advertising [301]. Expenses - Research and development costs were $7.1 million, representing 23% of total revenue in Q1 2023, down from 28% in Q1 2022 [225]. - Sales and marketing expenses increased by $1.3 million, or 12%, from $10.4 million in Q1 2022 to $11.6 million in Q1 2023, driven by personnel costs following the TVS acquisition [251]. - General and administrative expenses decreased by $1.8 million, or (16)%, from $11.5 million in Q1 2022 to $9.7 million in Q1 2023, mainly due to reduced professional and legal fees related to the TVS acquisition [252]. - Interest expenses for Q1 2023 were $0.4 million, up from $0.1 million in Q1 2022, impacting the finance income, net [262]. Cash and Liquidity - As of March 31, 2023, Innovid had cash, cash equivalents, and restricted cash of $45.4 million and net working capital of $66.8 million [229]. - Innovid utilized $20.0 million of its $50.0 million credit line as of March 31, 2023 [233]. - The company anticipates that existing cash and cash equivalents, along with expected net cash from operating activities, will be sufficient to meet cash needs for at least the next 12 months [258]. Tax and Compliance - The effective tax expense increased by $2.9 million from $(0.04) million in Q1 2022 to $2.8 million in Q1 2023, with effective tax rates of -47.97% and 0.5% for the respective periods [255]. - As of March 31, 2023, the company was in compliance with all covenants of its New Revolving Credit Facility, which requires maintaining an adjusted quick ratio of at least 1.30 to 1.00 [261]. Asset Management - The Company performed an annual impairment test for goodwill as of October 1, 2022, and determined that the fair value of the reporting unit exceeded its carrying amount, indicating no impairment [289]. - During the three-month period ended March 31, 2023, the Company tested its asset groups for recoverability and concluded that no impairment should be recognized [315]. - The Company evaluated its deferred tax assets and established a valuation allowance for portions not likely to be realized, considering cumulative losses and future taxable income expectations [292]. Accounting Policies - The Company recognizes revenues related to measurement services over time, as customers simultaneously receive and consume the benefits provided [305]. - The Company accounts for warrants based on specific terms and authoritative guidance, assessing whether they are equity-classified or liability-classified instruments [310]. - Acquisition-related expenses are expensed as incurred, reflecting costs associated with the acquisition of TVS [316]. - The Company capitalizes software development costs from the time the preliminary project stage is completed and amortizes these costs over an estimated useful life of three years [319]. - The Company applies the practical expedient in ASC 606, not adjusting the promised amount of consideration for significant financing components if the payment period is expected to be one year or less [307].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2022 Commission file number 001-40048 Innovid Corp. (Exact name of registrant as specified in its charter) ____________________________ Delaware 87-3769599 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) 30 Irving Place, 12th Floor ...