Summary of Nexxen International (NEXN) FY Conference Call - August 13, 2025 Company Overview - Nexxen operates in the programmatic advertising technology space, uniquely combining demand side platform (DSP) and supply side platform (SSP) capabilities to serve both advertisers and publishers through a unified platform [3][4] - The company has undergone significant transformation through acquisitions, with the most notable being Moby in 2022, enhancing its technology and market presence [4][5] - Nexxen rebranded in 2024 and transitioned to a single listing on Nasdaq, improving visibility and analyst coverage [6] Financial Performance - In Q2 2025, Nexxen reported an 8% year-over-year growth in programmatic revenue and generated $29.9 million in adjusted EBITDA, reflecting a 12% increase [7][8] - Data products were a standout, growing 76% year-over-year, indicating a strong trajectory for data and technology licensing [8] - The company repurchased approximately $39 million in stock during Q2, having bought back around 34% of its shares outstanding over the past three years [9][49] Industry Trends and Growth Areas - Connected TV (CTV) revenue grew 1% in Q2, attributed to CPM pressure and customer impacts from tariffs, but long-term growth in CTV remains optimistic due to strong technology and data capabilities [11][12] - The rise of AI and platforms like ChatGPT is shifting consumer attention from traditional search to video and CTV, potentially accelerating advertising spend in these areas [31] Unique Value Proposition - Nexxen's end-to-end approach allows for seamless transactions and higher scale, leveraging a proprietary Nexon Data Platform that enhances efficiency for both buyers and sellers [15][22] - The company has developed a unique identity graph that integrates various identity solutions, improving audience targeting and campaign effectiveness [22][23] Strategic Partnerships - Nexxen renewed its partnership with Vita, gaining exclusive global ACR data rights and video/display ad monetization rights in North America through 2029, which is expected to enhance monetization opportunities [38][40][41] - The partnership positions Nexxen to capitalize on the growing CTV market, particularly in North America, which is the largest advertising market [42] Future Outlook - Nexxen is focused on continued investment in technology, particularly in AI capabilities, with plans to enhance offerings for both DSP and SSP sides [54][55] - The company is exploring strategic acquisition opportunities to enhance its data footprint and accelerate growth in high-potential areas [52][53] Key Takeaways - Nexxen's unique positioning in the programmatic advertising space, strong financial performance, and strategic partnerships position it well for future growth - The focus on AI and data capabilities, along with the renewal of key partnerships, are critical components of Nexxen's strategy moving forward [55]

Financial Data and Key Metrics Changes - In Q2, the company generated contribution ex TAC of $87.8 million, a record for Q2, reflecting a 6% year-over-year increase [20] - Adjusted EBITDA reached $29.9 million in Q2, a 12% increase from Q2 2024, with an adjusted EBITDA margin rising to 34% from 32% [22] - Non-IFRS diluted earnings per share were $0.29 in Q2 2025, compared to $0.18 in Q2 2024 [23] - The company had $131.5 million in cash and cash equivalents, no long-term debt, and $50 million undrawn on its revolving credit facility as of June 30 [23] Business Line Data and Key Metrics Changes - Programmatic revenue reached a Q2 record of $85 million, reflecting an 8% increase compared to Q2 2024, driven by strength in data, product, health service, tech licensing, and desktop revenue [20] - CTV revenue grew 1% year-over-year to $28.4 million, marking a Q2 record despite macroeconomic challenges [21] - Contribution ex TAC from data products increased by 76%, while PMPs and display revenue declined by 64% year-over-year [21] Market Data and Key Metrics Changes - The company added 108 new actively spending first-time advertiser customers in Q2, including 43 enterprise self-service customers [16] - The company is focusing on scaling North American revenue and expanding international monetization, particularly through its partnership with VIDA [13] Company Strategy and Development Direction - The company is executing its core strategy by advancing in CTV, data, AI, and its tech platform, aiming for long-term growth and market share gains [7] - A renewed partnership with VIDA is expected to enhance CTV revenue and data monetization opportunities starting in 2026 [11][12] - The company is investing an additional $35 million in VIDA to accelerate North American CTV expansion [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting full-year guidance, anticipating contribution ex TAC of approximately $380 million and adjusted EBITDA of approximately $125 million for 2025 [24] - The company is closely monitoring market uncertainties related to tariffs and geopolitical tensions but remains optimistic about growth in CTV and data licensing revenue [24][25] - Management believes that AI investments will drive operational efficiency and margin expansion, particularly in 2026 and beyond [27] Other Important Information - The company has repurchased approximately 3.9 million ordinary shares, investing about $39.1 million, and is evaluating a new buyback program [23] - The company has been added to the Russell 3,000 Index, and analyst coverage has grown by 80% since moving to a single U.S. ordinary share listing [14][15] Q&A Session Summary Question: Insights on Next AI product and its integration - Management discussed the positive feedback from clients using the Next AI product and plans to integrate capabilities into the SSP for a full-cycle solution [30][31] Question: Adjusted EBITDA growth exceeding revenue growth - Management attributed the adjusted EBITDA upside to operational leverage and efficiencies from the Next AI internal tool [33][34] Question: Slow growth in connected television revenue - Management explained that the slow growth in CTV revenue is due to macroeconomic factors affecting CPMs but remains optimistic about future growth [38][39] Question: Long-term prospects for open Internet companies - Management acknowledged the impact of AI on user behavior but emphasized growth opportunities in CTV and mobile in-app advertising [44][46] Question: Confidence in second half revenue guidance - Management expressed confidence in achieving guidance based on visibility into market trends and ongoing investments in technology and data [51][52] Question: Potential for M&A activity - Management indicated readiness to consider acquisitions that would enhance client base and market coverage, while also focusing on organic growth [57][58] Question: Opportunities from Google's antitrust case - Management believes that potential remedies from the antitrust case could provide opportunities for market share gains in the open Internet space [63][64] Question: Impact of peer transitions in the SSP business - Management stated that they have not experienced the same issues as peers and highlighted their diversified approach with both DSP and SSP capabilities [71][72]

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]