Revenue Concentration and Dependence - For the year ended December 31, 2024, one buyer represented 11.5% of the revenue, compared to no individual buyer accounting for more than 10% in 2023[59]. - As of December 31, 2024, three buyers accounted for 19.1%, 12.1%, and 11.2% of trade receivables, indicating increased concentration in revenue sources[59]. - The company relies on a limited number of large advertising customers, which may account for a significant portion of revenue, highlighting potential revenue volatility[58]. - The company has no minimum commitments from advertisers, agencies, or DSPs, leading to fluctuating demand and potential revenue declines[62]. - The company's revenue and results of operations are highly dependent on overall advertising demand, which has been impacted by macroeconomic headwinds such as rising inflation and interest rates[89]. Competition and Market Dynamics - The company faces significant competition and potential pricing pressure due to industry consolidation, which may affect its ability to attract and retain key customers[72]. - The advertising technology market is dynamic, and the company's growth is essential to avoid a decline in value[71]. - The company must continuously innovate and develop new solutions to attract and retain advertisers and publishers, facing intense competition and rapidly changing technology[65]. - The company faces significant competition in the advertising industry, with competitors potentially having more financial and technical resources, which could hinder its ability to maintain market share[99][101]. Technological and Regulatory Challenges - Regulatory scrutiny and evolving standards in the AdTech industry could limit the company's ability to collect and use data, impacting revenue generation[68]. - The company uses cookies and other tracking technologies to gather data for effective advertising, and restrictions on these technologies could diminish platform effectiveness[69]. - The company is subject to evolving regulations regarding data privacy and protection, which may increase compliance costs and impact advertising revenue[136]. - The California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA) impose additional regulations that could affect the company's advertising business and increase compliance costs[138]. - The evolving EU and UK privacy laws, particularly the upcoming ePrivacy Regulation, may significantly increase fines for non-compliance, impacting marketing activities and operational costs[142]. Growth and Operational Risks - The company must effectively manage its growth to avoid straining resources, which could negatively impact its business value[71]. - The company must scale its platform infrastructure to support anticipated growth and transaction volume, or risk losing revenue[78]. - The company may face challenges in preventing the misappropriation of its intellectual property, despite having confidentiality agreements in place[85]. - The company must effectively grow and train its sales and support teams to add new customers and increase usage of its platform, as competition for skilled personnel is significant[103]. - The company may face increased working capital consumption as it continues to grow, with potential risks of bad debt if accounts receivable collection becomes challenging[127]. Financial Performance and Investments - Video revenue increased to $232.4 million in 2024 from $207.5 million in 2023, representing a growth of 12.0%[198]. - CTV revenue rose to $113.8 million in 2024 from $85.5 million in 2023, marking a growth of 33.1%[198]. - Total comprehensive income for 2024 was $35.4 million, a 295.3% increase from a loss of $18.1 million in 2023[199]. - Adjusted EBITDA for 2024 increased by $31.3 million to $114.6 million, reflecting a 37.7% year-over-year growth[199]. - The company has pursued strategic acquisitions, including RhythmOne, Unruly, SpearAd, and Amobee, which may divert management attention and require significant cash[128]. Geopolitical and Economic Factors - The company operates in 193 countries, exposing it to various risks including political unrest, natural disasters, and cyberattacks, which could adversely affect its financial results[91]. - Ongoing military conflicts and political instability in Israel could materially and adversely affect the company's operations and financial condition[108]. - The current military situation and its economic implications are unpredictable, which may lead to a downgrade in Israel's credit rating, adversely affecting the company[112]. - Economic downturns and health epidemics, such as the COVID-19 pandemic, have historically led to decreased advertising budgets, negatively impacting the company's revenue[93]. Shareholder and Market Considerations - The company announced a share repurchase program of $20.0 million on December 18, 2023, completed on April 24, 2024, and a subsequent program of $50.0 million completed on November 1, 2024[173]. - The company may lose its "foreign private issuer" status, which could result in significant additional costs and expenses if more than 50% of its outstanding voting securities are owned by U.S. residents[168]. - The company has experienced low trading volume on Nasdaq, which may lead to increased share price volatility[164]. - Volatility in share prices may affect employee retention, as many key personnel have substantial vested restricted share units (RSUs) and performance share units (PSUs)[107]. Customer and Market Expansion - The company aims to expand its international footprint and U.S. market share by acquiring new publishers and advertisers globally, enhancing platform flexibility and third-party integrations[231]. - The company is committed to strengthening relationships with existing customers to increase ad spend and adoption of technology solutions, positioning itself well for future growth in programmatic advertising[230]. - The number of active customers reached 653 and active publishers reached 1,516 as of December 31, 2024[196]. - The platform currently accommodates over 388 billion daily ad requests and approximately 625 million daily ad impressions on average, providing significant scale and access to premium advertising inventory[221].

Financial Performance - Achieved all-time quarterly Contribution ex-TAC of $105.2 million, up 16% year-over-year[5] - Recorded all-time quarterly programmatic revenue of $98.7 million, up 15% year-over-year[5] - Generated all-time quarterly CTV revenue of $37.0 million, up 86% year-over-year[5] - Total revenues for 2024 increased to $365,477 thousand, up 10.5% from $331,993 thousand in 2023[29] - Revenue for Q4 2024 reached $112,284 thousand, representing a 17% growth from $95,916 thousand in Q4 2023[23] - Contribution ex-TAC for Q4 2024 was $105,162 thousand, reflecting a 16% increase from $90,524 thousand in Q4 2023[23] - Full year 2024 Contribution ex-TAC reached $343.5 million, up 9% year-over-year[5] - Full year 2024 programmatic revenue totaled $324.5 million, also up 9% year-over-year[5] Profitability Metrics - Attained Adjusted EBITDA of $44.3 million in Q4 2024, reflecting a 38% year-over-year growth and a 42% Adjusted EBITDA Margin on a Contribution ex-TAC basis[5] - Adjusted EBITDA for Q4 2024 was $44,269 thousand, up 38% from $32,042 thousand in Q4 2023[23] - Non-IFRS net income for Q4 2024 was $32,355 thousand, a 124% increase from $14,458 thousand in Q4 2023[24] - Operating profit for 2024 was $40,821 thousand, a significant recovery from an operating loss of $16,976 thousand in 2023[29] - The company reported a net income of $24,854 thousand for Q4 2024, a 670% increase from $3,227 thousand in Q4 2023[24] - Basic earnings per share improved to $0.51 in 2024, compared to a loss of $0.30 in 2023[29] Future Outlook - Management expects full year 2025 Contribution ex-TAC to be approximately $380 million[9] - The company expects continued growth in CTV revenue and data licensing revenue, positioning itself for accelerated growth in 2025 and beyond[17] - The anticipated impact of the Generative AI initiative is expected to contribute positively to the company's growth[17] - The company plans to enhance its investments in technology, data, and Generative AI in 2025 to attract higher customer spending[9] Shareholder Actions - Nexxen's Board approved a new $50 million Ordinary Share repurchase program following the completion of the current program[11] - The company plans to utilize its cash reserves for ongoing and future share repurchase programs[17] - The company acquired own shares worth $60,735 thousand in 2024, significantly higher than $9,518 thousand in 2023[33] Operational Efficiency - Net cash provided by operating activities reached $150,835 thousand, compared to $60,741 thousand in 2023, indicating improved operational efficiency[33] - Total assets decreased to $840,513 thousand in 2024, down from $904,803 thousand in 2023, reflecting a reduction in cash and cash equivalents[28] - Total liabilities decreased to $309,659 thousand in 2024, down from $361,255 thousand in 2023, primarily due to a reduction in long-term debt[28] - Shareholders' equity as of December 31, 2024, was $530,854 thousand, a slight decrease from $543,548 thousand in 2023[28] Investment in Innovation - Research and development expenses for 2024 were $49,992 thousand, slightly up from $49,684 thousand in 2023, indicating continued investment in innovation[29] - In Q4 2024, Nexxen onboarded 112 new actively spending first-time advertiser customers[12]

Share Buyback - Nexxen International Ltd. announced a share buyback transaction on September 25, 26, and 27, 2024[5] - The company is actively engaging in share repurchase to enhance shareholder value[6] - The announcements regarding the share buyback were made in compliance with AIM Market Rules[6]

Customer Concentration and Relationships - For the year ended December 31, 2023, no individual buyer accounted for more than 10% of the revenue, compared to one buyer representing 10.7% in 2022 and 13.6% in 2021[57]. - As of December 31, 2023, two buyers accounted for 16.2% and 16.5% of trade receivables, indicating a slight increase in concentration compared to previous years[57]. - The company relies on a limited number of large advertising customers, which may account for a significant portion of revenue, highlighting the need for diversification[56]. - The master service agreements with most DSPs and other customers automatically renew each year, but either party can terminate with 30 days' notice, indicating potential volatility in customer relationships[58]. - The company must adapt to changes in technology and consumer preferences, as failure to do so could lead to a decline in revenue growth[62]. - The company has no minimum commitments from advertisers, which means demand can fluctuate significantly, posing a risk to revenue stability[59]. - The ability to collect and use data is critical for the company's services, and any limitations could adversely affect business operations and financial condition[64]. - The company is dependent on its sales and support teams to acquire new customers and increase platform usage, and any difficulties in hiring or training could adversely affect business growth[95]. - The company maintains long-standing relationships with its customers, which contributes to repeat usage of its platform[244]. Competition and Market Dynamics - The company faces intense competition and must continuously innovate its platform to retain advertisers and publishers, which is critical for revenue growth[62]. - The advertising technology market is dynamic, and the company's growth is essential to avoid a decline in value[68]. - The company faces intense competition in the advertising market, which may hinder its ability to increase revenue and maintain profitability[91]. - Competitors include Roku Inc., Viant Technology, and The Trade Desk on the demand side, and Magnite, FreeWheel, and PubMatic on the supply side[247]. - The company emphasizes its unique end-to-end technology solution, which few competitors can match[245]. Financial Performance and Risks - Total comprehensive loss for the year ended December 31, 2023, was $18.1 million, representing a 211.6% year-over-year decrease from a total comprehensive income of $16.2 million in 2022[205]. - Adjusted EBITDA for 2023 was $83.2 million, down 42.6% from $144.9 million in 2022[205]. - The company's revenue and operations are highly dependent on advertising demand, which has been negatively impacted by macroeconomic factors such as rising inflation and interest rates[82]. - Economic downturns have led to a decrease in advertising budgets, adversely affecting the company's revenue and financial condition[84]. - The company anticipates continued uncertainty in the advertising environment into 2024 due to rising inflation and geopolitical hostilities[203]. - The company may experience slow payment from advertising agencies, which could adversely affect cash flow and working capital availability[123]. - Future acquisitions may not yield anticipated benefits and could expose the company to unknown risks, adversely affecting financial condition[124]. Regulatory and Compliance Challenges - Regulatory scrutiny and evolving standards in the AdTech industry could restrict data collection and usage, impacting the platform's effectiveness and revenue[65]. - The company faces risks related to evolving regulations on data privacy and consumer protection, which could increase compliance costs and impact business operations[129]. - The California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA) impose additional regulations on data collection and advertising, potentially increasing compliance costs and legal risks[135]. - The company is subject to GDPR and UK data protection laws, with potential fines up to €20 million or 4% of total global annual turnover for breaches[137]. - The company faces significant compliance costs due to evolving EU and UK privacy laws, particularly regarding cookies and e-marketing, with fines expected to increase under the forthcoming ePrivacy Regulation[138]. - The company is subject to various federal and state laws regarding political advertising, which may impact advertising revenue and increase compliance costs[128]. Operational and Technological Considerations - Significant parts of the business depend on relationships with data providers, and any limitations on access to data could impair the ability to deliver effective advertising solutions[63]. - Dependence on third-party technology and data sets poses risks, as any unavailability or performance issues could harm business operations[81]. - The company must scale its platform infrastructure to support anticipated growth and transaction volume, or risk losing revenue[73]. - Cybersecurity risks pose a significant threat, with potential impacts on operational systems and personal data security[77]. - The proprietary Data Management Platform (DMP) enables processing of millions of requests per second, supporting optimization and prediction models[227]. - The company plans to enhance its proprietary data sets and CTV solution capabilities as part of its growth strategy[231]. Economic and Geopolitical Factors - The company operates in 193 countries, exposing it to various risks including political unrest and global health emergencies, which could materially impact its financial results[85]. - The ongoing military conflict in Israel, including the recent escalation with Hamas, poses significant risks to the company's operations and financial performance[104]. - The Israeli government's judicial reforms may deter foreign investment and lead to increased economic volatility, affecting the company's business environment[110]. - The company has a significant portion of its workforce subject to military service, which could further disrupt operations during periods of conflict[109]. - The United Kingdom's withdrawal from the European Union has created ongoing political and economic uncertainty, which may negatively impact global economic conditions and the company's operations[96]. Shareholder and Market Considerations - The trading volume of the company's ADSs is low, which may lead to significant price fluctuations and potential losses for investors[156]. - The company authorized a share repurchase program of up to $20.0 million for ordinary shares on AIM, completed on March 22, 2023, repurchasing 2,505,851 shares at an average price of $3.49[168]. - An additional repurchase plan of $20.0 million commenced on December 20, 2023, with 221,506 shares repurchased at an average price of $2.55 by December 31, 2023[169]. - The company qualifies as an emerging growth company and may rely on reduced disclosure requirements, potentially affecting the attractiveness of its ADSs to investors[161]. - The dual listing of ordinary shares on AIM and ADSs on Nasdaq may dilute liquidity and affect the trading market for ADSs in the U.S.[159]. - The company may lose its foreign private issuer status, resulting in significant additional costs and compliance requirements[163]. - The company is subject to less frequent reporting obligations compared to U.S. domestic public companies, which may affect shareholder protections[162]. Growth Opportunities and Strategic Initiatives - The global digital advertising market is projected to grow from $611 billion in 2023 to $920 billion by 2027, at an approximate CAGR of 11%[214]. - U.S. CTV ad spend is expected to grow at a CAGR of approximately 15% from 2023 to 2027, reaching roughly $42.4 billion[215]. - U.S. mobile ad spend is projected to grow at a CAGR of approximately 13% from 2023 to 2027, reaching approximately $286 billion[217]. - The company serves advertisements in 193 countries with a diversified customer base of 1,008 active customers and 1,636 active publishers as of December 31, 2023[202]. - Digital video advertising comprised 62% of the company's revenue for the year ended December 31, 2023[206]. - The company anticipates that as market conditions improve, customers will increase their spending and adopt additional products from its technology platform[244].

Financial Performance - Tremor International generated record Contribution ex-TAC of $309.7 million in FY 2022, reflecting a resilient performance despite market volatility [11]. - Adjusted EBITDA for the year was $144.9 million, resulting in an impressive adjusted EBITDA margin of 47% [10]. - The company achieved a 21% year-on-year growth in Connected TV (CTV) revenue [15]. - Tremor maintained a healthy net cash position of $115.5 million as of the end of 2022 [10]. - Free cash flow conversion during the period was outstanding at 96% [10]. - Tremor generated record CTV revenue of $97.2 million in 2022, reflecting a 21% year-over-year growth from 2021 [41]. - Adjusted EBITDA decreased by $16.3 million, from $161.2 million in 2021 to $144.9 million in 2022, primarily due to challenging macroeconomic conditions [56]. - Revenue decreased by $6.7 million, or 2.0%, to $335.3 million in 2022, with a $43.5 million decrease attributed to Tremor International, offset by a $36.8 million contribution from Amobee [57]. - Cost of revenues decreased by $10.9 million, or 15.2%, to $60.7 million in 2022, driven by a decrease in Performance revenue and corresponding costs [58]. - Gross profit margin increased by approximately 4%, to 82% in 2022, as costs of revenues declined at a faster rate than revenues [59]. Strategic Acquisitions and Investments - The acquisition of Amobee for $239 million was completed in September 2022, enhancing Tremor's CTV and video platform capabilities [16]. - Tremor is on track to complete the bulk of technology integration and DSP consolidation from the Amobee acquisition by the end of H1 2023 [16]. - The acquisition of Amobee is projected to save approximately $65 million in total annualized operating costs and enhance Tremor's technology capabilities [40]. - Tremor's investment of $25 million in VIDAA is expected to generate meaningful revenues starting in late 2023 [46]. - The Company completed the acquisition of Amobee, the largest in its history, enhancing its technology and data solutions while adding significant scale to its platform [54]. Market and Growth Outlook - Tremor's programmatic advertising market is expected to grow significantly, with CTV ad spend projected to increase at a CAGR of approximately 15.5% from 2022 to 2026, and video ad spend expected to grow at a CAGR of approximately 13.0%, reaching roughly $121.5 billion by 2026 [89]. - Tremor's strategic focus on CTV and programmatic activities is anticipated to drive future growth and revenue increases [41]. - The company expects to capture a larger share of existing customer budgets and attract new customers through its comprehensive technology suite [32]. - The company aims to strengthen relationships with existing customers by improving platform functionality to encourage increased ad spend and inventory allocation [92]. - Tremor is expanding its international footprint and U.S. market share by acquiring new publishers and advertisers globally, enhancing its platform's flexibility [93]. Operational Efficiency and Technology - The company added 319 new supply partners across Unruly and 233 new advertiser customers within Tremor Video during 2022 [51]. - Tremor plans to enhance its technology stack and introduce new innovative products, focusing on improving proprietary data sets and audience targeting capabilities [90]. - The company leverages real-time data, AI, and machine learning to optimize digital ad spend and inventory, providing robust analytics and insights through its proprietary DMP solution [94]. - Research and development expenses increased by $15.2 million, or 82.7%, to $33.7 million in 2022, driven by increased investment in technology and product innovation [60]. - Selling and marketing expenses increased by $15.3 million, or 20.6%, to $90.0 million in 2022, with Amobee contributing $15.7 million for the period post-acquisition [61]. Corporate Governance and Culture - The company recognizes the importance of high standards of corporate governance and has adopted the QCA Code as its governance framework [85]. - Tremor engages with shareholders through regular communication and meetings, ensuring transparency and responsiveness to queries [97]. - The company promotes a transparent organizational culture, encouraging employee feedback and participation in leadership programs [103]. - The Board held 17 meetings in 2022, with executive directors working full-time and non-executive directors dedicating a minimum of two days per month [113]. - The audit committee consists of three independent directors, ensuring compliance with Nasdaq corporate governance rules [132]. Risks and Challenges - The company faces significant risks related to maintaining access to advertising spend and valuable inventory from publishers [182]. - The company’s business is highly dependent on the overall demand for advertising, which can be affected by economic downturns and other factors [186]. - The company is subject to various legal and regulatory constraints, including data privacy and consumer protection laws across different markets [191]. - The company’s global operations expose it to risks beyond its control, which may adversely affect financial results [186].

Financial Performance - The audited consolidated financial statements for the year ended December 31, 2022, include contributions from Amobee for the period from September 12, 2022, to December 31, 2022, following the acquisition[26]. - Adjusted EBITDA for the company is defined as total comprehensive income adjusted for various expenses, with the adjusted EBITDA margin being a percentage of revenue[27]. - The company considers all revenue to be recurring, with a focus on maintaining a high Contribution ex-TAC retention rate from existing customers[28]. - The fiscal year for the company ends on December 31, and the financial statements are prepared in accordance with IFRS[26]. - The company has experienced significant changes due to the integration of acquisitions over the past three years, impacting financial comparability[26]. Revenue Definitions - The company defines CTV revenue as revenue derived from CTV devices, and video revenue as revenue derived from video format ads on all devices[27]. Market Environment - The market for programmatic buying for advertising campaigns is relatively new and evolving, presenting both opportunities and risks[38]. - The company faces macroeconomic headwinds, including rising inflation and interest rates, which could impact advertising demand[38]. Strategic Focus - The company emphasizes the importance of relationships with data providers for delivering targeted advertising campaigns[38]. - The company is committed to scaling its platform infrastructure to support anticipated growth and transaction volume[38].

Financial Performance - Tremor International reported record Q4 2022 Contribution ex-TAC of $103.0 million, a 16% increase from $88.6 million in Q4 2021, and a total of $309.7 million for the year, up 3% from $302.0 million in 2021[3]. - Adjusted EBITDA for Q4 2022 was $36.9 million, down 32% from $54.0 million in Q4 2021, with a full year Adjusted EBITDA of $144.9 million, a 10% decrease from $161.2 million in 2021[3]. - Net income for Q4 2022 was $5,061 thousand, representing a 79% decline from $24,400 thousand in Q4 2021, and for the full year 2022, net income decreased by 69% to $22,737 thousand[24]. - Non-IFRS diluted earnings per share (EPS) for Q4 2022 was $0.15, down 44% from $0.27 in Q4 2021, and for the full year 2022, it decreased by 28% to $0.60[24]. - Total revenues for 2022 were $335,250 thousand, a decrease of 1.9% compared to $341,945 thousand in 2021[29]. - Operating profit for 2022 was $44,752 thousand, down 40.0% from $74,462 thousand in 2021[29]. - Profit for the year was $22,737 thousand in 2022, a decrease of 69.0% compared to $73,223 thousand in 2021[29]. - Basic earnings per share for 2022 were $0.15, down from $0.51 in 2021[29]. Revenue Streams - CTV spend reached a record $99.6 million in Q4 2022, reflecting a 59% increase from $62.5 million in Q4 2021, and total CTV spend for the year was $283.6 million, a 41% increase from $201.0 million in 2021[3]. - Contribution ex-TAC for Tremor International increased by 16% year-over-year to $103,002 thousand for Q4 2022, and by 3% to $309,726 thousand for the full year 2022[24]. - Revenues for Q4 2022 increased by 5% to $107,697 thousand, while full year revenues decreased by 2% to $335,250 thousand[24]. Strategic Initiatives - The company expects to generate meaningful revenue benefits from its investment in VIDAA starting in late 2023, following a strategic partnership with Hisense and Google for ad monetization on the FIFA+ CTV app[4]. - Tremor plans to implement a substantial share repurchase while evaluating strategic opportunities for acquisitions and investments in technology[22]. - The acquisition of Amobee is expected to provide significant synergies and enhance Tremor's ability to cross-sell products to a larger customer base[22]. - The integration of Amobee is expected to be largely completed by the end of H1 2023, with anticipated annualized operating cost synergies of approximately $65 million[7]. - Tremor's investment in VIDAA is anticipated to strengthen its strategic relationship with Hisense, contributing to future growth[22]. Market Position and Growth - The company added 42 new advertiser customers in Q4 2022 and 233 for the full year, indicating growth across various verticals[7]. - Unruly CTRL, Tremor's self-service platform, saw PMP spend increase by 160% in Q4 2022 compared to Q4 2021, demonstrating strong adoption and growth in the self-service segment[7]. - The company anticipates continued growth in both US and international markets in 2023, despite potential challenges from inflation and geopolitical uncertainties[22]. Financial Health - Tremor International achieved a net cash position of $115.5 million as of December 31, 2022, with an additional $80 million undrawn on its revolving credit facility, ensuring strong liquidity for future investments[3]. - Total assets as of December 31, 2022, were $956,161 thousand, an increase of 19.1% from $802,739 thousand in 2021[26]. - Cash and cash equivalents decreased to $217,500 thousand in 2022, down 41.0% from $367,717 thousand in 2021[26]. - Total liabilities rose to $404,546 thousand in 2022, a significant increase from $230,364 thousand in 2021[26]. - Net cash provided by operating activities was $83,008 thousand in 2022, a decrease of 51.2% from $170,088 thousand in 2021[35]. Research and Development - Research and development expenses increased to $33,659 thousand in 2022, up 82.5% from $18,422 thousand in 2021[29].

Financial Performance - Record Q1 Contribution ex-TAC increased by 13% year-over-year to $71.0 million, compared to $63.0 million in Q1 2021[4] - Adjusted EBITDA for Q1 2022 rose by 22% to $33.6 million, up from $27.5 million in Q1 2021, resulting in a 47% adjusted EBITDA margin on a Contribution ex-TAC basis[4][12] - Revenues for Q1 2022 increased by 14% to $80,874,000 compared to $71,009,000 in Q1 2021[24] - Adjusted EBITDA for Q1 2022 was $33,590,000, representing a 22% increase from $27,519,000 in Q1 2021[23] - Non-IFRS Income for Q1 2022 rose by 36% to $23,817,000 from $17,478,000 in Q1 2021[25] - Non-IFRS diluted EPS for Q1 2022 increased by 20% to $0.15 compared to $0.12 in Q1 2021[25] - Contribution ex-TAC for Q1 2022 was $71,017,000, a 13% increase from $62,988,000 in Q1 2021[24] - Profit for the period in Q1 2022 was $11,364 thousand, a decrease of 11.7% compared to $12,874 thousand in Q1 2021[30] - Total comprehensive income for Q1 2022 was $9,234 thousand, down from $12,038 thousand in Q1 2021, reflecting a decline of 23.2%[30] Cash Position and Investments - Tremor's net cash position was $370.8 million as of March 31, 2022, supporting a healthy balance sheet[4] - Cash and cash equivalents at the end of Q1 2022 were $370,827 thousand, up from $103,486 thousand at the end of Q1 2021, representing a significant increase of 258.5%[30] - Net cash provided by operating activities in Q1 2022 was $16,124 thousand, compared to $19,299 thousand in Q1 2021, indicating a decrease of 16.4%[30] - Net cash used in investing activities was $(1,510) thousand in Q1 2022, a decrease from $(2,176) thousand in Q1 2021, indicating improved cash flow management[30] - The company acquired own shares worth $10,505 thousand in Q1 2022, compared to $6,643 thousand in Q1 2021, marking an increase of 58.5%[30] Strategic Initiatives - The company launched a $75 million share repurchase program on March 1, 2022, repurchasing approximately $12.7 million worth of shares by March 31, 2022[4] - The company plans to continue evaluating strategic opportunities for acquisitions and investments in technology and products[21] - Tremor anticipates ongoing growth in the digital advertising industry despite potential supply chain challenges[21] Growth Metrics - CTV spend grew by 21% year-over-year to $46.2 million in Q1 2022, compared to $38.2 million in Q1 2021[4] - Tremor's international spend on creative products increased by 225% year-over-year during Q1 2022[6] - Tremor Video added over 75 new logos in Q1 2022, marking one of the most significant quarterly increases in the company's history[6] - Q2 2022 Contribution ex-TAC is expected to be in the range of $75 - $80 million, with an adjusted EBITDA target of approximately $40 million[11] - Management anticipates a 50% adjusted EBITDA margin as a percentage of Contribution ex-TAC for Q2 2022[11] - The integration of Spearad into Unruly is expected to accelerate growth in the second half of 2022, alongside partnerships with VIDAA and Comscore[8][11] Balance Sheet - Total current assets as of March 31, 2022, were $518,357,000, down from $551,997,000 as of December 31, 2021[26] - Total liabilities decreased to $175,967,000 as of March 31, 2022, from $230,364,000 as of December 31, 2021[26] Other Financial Metrics - Share-based payments in Q1 2022 amounted to $16,029 thousand, a substantial increase from $2,341 thousand in Q1 2021, reflecting a growth of 584.5%[30] - Change in trade and other receivables increased significantly by $25,017 thousand from $11,096 thousand in Q1 2021 to $36,113 thousand in Q1 2022[30] - The company experienced a net increase in cash and cash equivalents of $3,593 thousand in Q1 2022, down from $6,575 thousand in Q1 2021[30] - The company reported a loss on foreign currency translation of $(2,130) thousand in Q1 2022, compared to a loss of $(836) thousand in Q1 2021[30]

Market Overview - The global digital advertising market is approximately $492 billion and is expected to grow at a CAGR of 12% through 2025[268]. - The advertising ecosystem is evolving, with the company positioned to benefit from trends such as digital media consumption and programmatic advertising[362]. Revenue Growth - Revenue increased by $130 million, or 61.4%, to $341.9 million for the year ended December 31, 2021, from $211.9 million for the year ended December 31, 2020[300]. - Programmatic revenue grew by 65% for the year ended December 31, 2021, driven by the growth in Video and CTV revenue[274]. - Programmatic revenue increased to $266.6 million for the year ended December 31, 2021, compared to $161.6 million in 2020, reflecting a strong growth in digital advertising[324]. - CTV revenue increased by $43.5 million or 118% to $80.3 million for the year ended December 31, 2021, driven by increased utilization of the platform[325]. - Video revenue increased by $99.3 million or 69% to $242.7 million for the year ended December 31, 2021, attributed to increased spending on the DSP platform[328]. Profitability and Income - Total comprehensive income for the year ended December 31, 2021, was $70.6 million, representing a 1,319% year-over-year increase from $5.0 million in 2020[275]. - Profit for the year increased by $71.1 million or 3,323.2% to $73.2 million for the year ended December 31, 2021, driven by a revenue increase of $130 million[314]. - Net profit margin increased to 20.6% for the year ended December 31, 2021, from 2.3% in 2020, resulting from a 61.4% revenue increase compared to a 19.8% increase in cost of revenues[317]. Expenses and Costs - Cost of revenues (exclusive of depreciation and amortization) increased by $11.8 million, or 19.8%, to $71.6 million for the year ended December 31, 2021, from $59.8 million for the year ended December 31, 2020[303]. - Research and development expenses increased by $5.2 million, or 38.9%, to $18.4 million for the year ended December 31, 2021, from $13.3 million for the year ended December 31, 2020[304]. - Selling and marketing expenses increased by $5.8 million, or 8.5%, to $74.6 million for the year ended December 31, 2021, from $68.8 million for the year ended December 31, 2020[305]. - General and administrative expenses increased by $33.8 million, or 114.0%, to $63.5 million for the year ended December 31, 2021, from $29.7 million for the year ended December 31, 2020[308]. - Depreciation and amortization expenses decreased by $4.9 million, or 10.9%, to $40.3 million for the year ended December 31, 2021, from $45.2 million for the year ended December 31, 2020[309]. Customer Metrics - The company had approximately 800 active customers and 1,600 active publishers as of December 31, 2021, serving advertisements to around 2 billion unique users[271]. - Active customers decreased from 889 in 2020 to 764 in 2021, while gross profit per active customer increased from $149, in 2020, to $332 in 2021[341]. - Contribution ex-TAC per active customer increased from $207 thousand in 2020 to $395 thousand in 2021, despite a decrease in the overall number of active customers[280]. Cash Flow and Financial Position - As of December 31, 2021, the company had cash of $367.7 million and working capital of $331.3 million, deemed sufficient for current requirements[342]. - Net cash provided by operating activities was $170.1 million for the year ended December 31, 2021, up from $35.2 million in 2020[345]. Future Outlook and Investments - The company plans to invest in long-term growth by focusing on digital video advertising, which accounted for 91% of Programmatic revenue in 2021[282]. - The company anticipates that operating expenses will increase in the foreseeable future due to investments in platform operations and technology[282]. Tax and Financial Management - The company has tax loss carry forwards from the US amounting to $79.4 million and from other international jurisdictions amounting to $16.6 million as of December 31, 2021[298]. - Tax benefit decreased by $8.6 million or 90.1% to $0.9 million for the year ended December 31, 2021, attributed to increased profitability and utilization of carried forward losses[313]. Economic Impact - Advertising demand on the platform decreased in the first half of 2020 due to the COVID-19 pandemic, with recovery observed in the second half of 2020 and 2021, although some verticals remain impacted[363]. - The economic uncertainty caused by the pandemic has led to decreased advertising spending in sectors such as travel, retail, and automotive, negatively impacting revenue[363].

Company Information - The company is based in Tel Aviv, Israel, with its principal executive office located at 82 Yigal Alon Street[1]. Annual Report Details - Tremor International Ltd. published its Annual Report and Accounts for the year ended December 31, 2020 on June 30, 2021[4]. - The report is filed under Form 6-K as a foreign private issuer[1]. - The announcement of the annual report was made through a regulatory news service[4]. - The report is available as Exhibit 99.1 to the Form 6-K submission[5]. - The Chief Financial Officer, Sagi Niri, signed the report on June 30, 2021[9].