Summary of Nexxen International (NEXN) 2025 Capital Markets Day Company Overview - **Company**: Nexxen International (NEXN) - **Event**: 2025 Capital Markets Day - **Date**: May 22, 2025 Key Points Company Transformation and Strategy - Nexxen has undergone significant transformation, including the largest acquisition in its history, leading to a comprehensive ad tech platform [2][3] - The company rebranded to better showcase its holistic value to the industry [2] - Focus on reducing trading complexity and streamlining to a single US listing to enhance investability [3] Product and Technology - Nexxen operates an end-to-end ad tech platform that includes a Demand Side Platform (DSP), Supply Side Platform (SSP), and a robust Data Management Platform (DMP) [8][57] - Approximately 50% of the business is moving towards an end-to-end model, enhancing efficiency and margins [10] - Over $1 billion has been invested in technology development, with a strong R&D team of 300-350 people [13] Market Position and Growth - The programmatic video advertising market has grown by 17% CAGR over the last three years, with 72% of Nexxen's business running on video [17] - Connected TV (CTV) has seen a 70% CAGR, contributing 35% of net revenue at the programmatic level [17] - 89% of Nexxen's business operates programmatically, with 86% of campaigns utilizing data [17] Strategic Partnerships - A non-binding MOU was signed with VIDA to extend their agreement and invest in growing their presence in the US [18][66] - The partnership with VIDA, which operates the Hisense TV operating system, is expected to drive growth through access to viewership data [66][68] AI and Data Utilization - Nexxen emphasizes the importance of AI in optimizing ad campaigns and enhancing data utilization [20][49] - The company has launched an AI assistant, NexAI, to help clients manage campaigns more effectively [72][80] - The data platform is central to Nexxen's strategy, enabling real-time insights and audience targeting [58][60] Industry Outlook - The advertising technology sector is characterized by scale, growth, fragmentation, complexity, and dynamics, with a total addressable market of $1 trillion [30] - The shift from third-party to first-party data due to regulatory changes has created challenges and opportunities for ad tech intermediaries [40] - CTV is seen as a key growth area, with a significant shift from linear to digital advertising expected [46][84] Competitive Advantage - Nexxen's integrated end-to-end platform is positioned as a competitive advantage, allowing for better customer value and operational efficiencies [85] - The company believes it is ahead of competitors in developing a fully integrated ad tech ecosystem [85] Financial Performance - The company reported strong momentum in Q1 results, indicating continued growth and interest from investors [12][14] Additional Insights - The importance of understanding audience behavior and sentiment is highlighted as critical for effective advertising [23][66] - The integration of technology across platforms is seen as essential for driving profitability and market leadership [57][84]