Financial Data and Key Metrics Changes - Nexxen reported a contribution ex-TAC of $92.6 million in Q3, an 8% increase year-over-year or 14% ex-political, marking a Q3 record [16] - Programmatic revenue reached a Q3 record of $89.6 million, up 10% year-over-year or 15% ex-political [16] - Adjusted EBITDA was $28.6 million in Q3, reflecting a 30% adjusted EBITDA margin as a percentage of contribution ex-TAC [18] - Non-IFRS diluted earnings per share were $0.20 in Q3 compared to $0.27 in Q3 2023 [19] - The company generated $35.8 million in net cash from operating activities in Q3, down from $39.9 million in Q3 2023 [19] Business Line Data and Key Metrics Changes - Contribution ex-TAC from non-programmatic business declined roughly $1 million year-over-year [16] - CTV revenue declined 17% year-over-year in Q3 to $24.5 million [16] - Desktop revenue increased 67% year-over-year, while mobile revenue rose 3% [18] - Self-service contribution ex-TAC grew 11% year-over-year amid greater enterprise DSP adoption [18] - Contribution ex-TAC from data products increased 154% [18] Market Data and Key Metrics Changes - The company observed year-over-year decreases in CTV and display, as well as reduced spending within government, retail, and education verticals [16] - Competitive pressures in CTV have led to lower CPMs, affecting revenue [40] - The company expects significant CTV revenue growth opportunities in 2026 and beyond, particularly following the renewal of the VIDAA partnership [17] Company Strategy and Development Direction - Nexxen is focused on enhancing its omnichannel DSP, improving automation, performance, and user experience to attract more enterprise partners [7] - The company aims to reduce reliance on third-party DSPs and strengthen its end-to-end revenue opportunities [10] - Nexxen plans to release new DSP innovations and expand infrastructure in 2026 [14] - The strategic partnership with VIDAA has been renewed and expanded through 2029, providing exclusive access to ACR data and third-party ad monetization [10] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in lowering guidance due to near-term headwinds, including softness in select channels and changes in a leading DSP customer's spending behavior [13] - The company remains confident in its long-term strategy and positioning, emphasizing the importance of its unique data and media assets [22] - Management believes that the combination of CTV, in-app mobile media, and enhanced data capabilities will drive growth in 2026 and beyond [32][78] Other Important Information - Nexxen repurchased approximately 1.8 million shares in Q3, investing about $18.1 million [19] - The company invested $20 million in VIDAA in Q3, with an additional $15 million planned for Q3 2026 [20] - Nexxen is exploring M&A opportunities focused on accelerating programmatic revenue growth and enhancing data capabilities [20] Q&A Session Summary Question: Steps to address DSP headwinds - Management outlined a clear path to enhance CTV media capabilities and self-service solutions to reduce reliance on third-party DSPs [27][29] Question: Current trend in CTV - Management acknowledged softness in CTV categories and increased competition leading to lower CPMs, but expressed optimism for growth in 2026 [38][40] Question: Impact of DSP spending on future guidance - Management clarified that reduced spending from a major DSP is expected to be isolated to Q4 2025 and will not materially impact 2026 performance [71][72] Question: Data licensing partnerships - Management discussed the growth potential of data licensing partnerships with Yahoo and Trade Desk, emphasizing the profitability of these initiatives [63][65] Question: Non-programmatic business impact - Management confirmed that the non-programmatic business operates in silos and does not provide benefits to the programmatic business [58][60]

Financial Data and Key Metrics Changes - Nexxen reported a contribution ex-TAC of $92.6 million in Q3, an 8% increase year-over-year or 14% ex-political, marking a Q3 record [16] - Programmatic revenue reached a Q3 record of $89.6 million, up 10% year-over-year or 15% ex-political, driven by data products and self-service [16] - Adjusted EBITDA was $28.6 million in Q3, reflecting a 30% margin as a percentage of contribution ex-TAC [19] - Non-IFRS diluted earnings per share were $0.20 in Q3 compared to $0.27 in Q3 2024 [19] - The company lowered its full-year 2025 guidance, expecting contribution ex-TAC in the range of $350 million-$360 million, representing approximately 3% growth at the midpoint [20][21] Business Line Data and Key Metrics Changes - Contribution ex-TAC from non-programmatic business lines declined by roughly $1 million year-over-year [16] - CTV revenue declined 17% year-over-year in Q3 to $24.5 million, impacted by decreased activity from third-party DSP partners and competitive CPMs [16][17] - Desktop revenue increased 67% year-over-year, while mobile revenue rose 3% [18] - Self-service contribution ex-TAC grew 11% year-over-year amid greater enterprise DSP adoption, and contribution from data products increased 154% [18] Market Data and Key Metrics Changes - The company observed year-over-year decreases in CTV and display, as well as reduced spending within government, retail, and education verticals [16][17] - Competitive pressures in the CTV market have led to lower CPMs, affecting revenue generation [40] Company Strategy and Development Direction - Nexxen is focusing on enhancing its omnichannel DSP, improving automation, performance, and user experience to attract more enterprise partners [7][10] - The company is doubling down on its DSP, Discovery, and broader data platform to drive enterprise adoption and reduce reliance on third-party DSPs [13][22] - Strategic partnerships, particularly with VIDAA, are expected to provide long-term growth opportunities through exclusive data and media access [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in lowering guidance due to near-term headwinds, including softness in select channels and changes in DSP customer spending behavior [13][21] - The company remains confident in its long-term strategy and positioning, expecting to navigate current challenges and emerge stronger in 2026 and beyond [24] Other Important Information - Nexxen repurchased approximately 1.8 million shares in Q3, investing about $18.1 million through its share repurchase program [19] - The company invested $20 million in VIDAA in Q3, with an additional $15 million planned for Q3 2026 [20] Q&A Session Summary Question: Steps to address DSP headwinds - Management outlined a clear path to enhance self-service solutions and reduce reliance on third-party DSPs, emphasizing the launch of new CTV products and the growth of self-service offerings [27][29] Question: Current trend in CTV - Management acknowledged softness in CTV categories and increased competition leading to lower CPMs, but expressed optimism for growth in 2026 due to strategic partnerships and new product offerings [38][41] Question: Impact of DSP changes on future guidance - Management clarified that the reduced spending from a major DSP is expected to be isolated to Q4 2025 and will not materially impact performance in 2026 [22][71] Question: Data licensing partnerships - Management discussed the growth potential of data licensing partnerships with Yahoo and Trade Desk, highlighting the profitability of these initiatives [63][66] Question: Non-programmatic business impact - Management confirmed that the non-programmatic business operates in silos and does not provide benefits to the programmatic business [58][60]

Financial Data and Key Metrics Changes - Nexxen reported a contribution ex-TAC of $92.6 million in Q3, an 8% increase year-over-year or 14% ex-political, marking a Q3 record [14] - Programmatic revenue reached a Q3 record of $89.6 million, up 10% year-over-year or 15% ex-political [14] - Adjusted EBITDA was $28.6 million in Q3, reflecting a 30% adjusted EBITDA margin as a percentage of contribution ex-TAC [16] - Non-IFRS diluted earnings per share were $0.20 in Q3 compared to $0.27 in Q3 2023 [17] - Cash and cash equivalents stood at $116.7 million with no long-term debt as of September 30 [17] Business Line Data and Key Metrics Changes - Contribution ex-TAC from non-programmatic business lines declined by approximately $1 million year-over-year [15] - CTV revenue decreased by 17% year-over-year in Q3 to $24.5 million, impacted by reduced activity from third-party DSP partners and competitive CPMs [15] - Desktop revenue increased by 67% year-over-year, while mobile revenue rose by 3% [16] - Self-service contribution ex-TAC grew by 11% year-over-year amid greater enterprise DSP adoption, and contribution ex-TAC from data products increased by 154% [16] Market Data and Key Metrics Changes - The company observed year-over-year decreases in CTV and display, as well as reduced spending within government, retail, and education verticals [15] - Competitive pressures in the CTV market have led to lower CPMs, affecting revenue [35] Company Strategy and Development Direction - Nexxen is focusing on enhancing its omnichannel DSP, improving automation, performance, and user experience to attract more enterprise partners [6] - The company is doubling down on its DSP, Discovery, and broader data platform to drive enterprise adoption and reduce reliance on third-party DSPs [12] - A renewed partnership with VIDAA extends exclusive global access to ACR data and secures third-party ad monetization exclusivity, providing a competitive advantage [10] - Nexxen plans to release new DSP innovations and expand infrastructure in 2026, while also pursuing new strategic commercial partnerships [13] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in lowering guidance due to near-term headwinds, including softness in select channels and changes in a leading DSP customer's spending behavior [12] - Despite challenges, management remains confident in the company's long-term strategy and positioning, emphasizing the importance of exclusive data and advanced technology solutions [22] - The company expects contribution ex-TAC from the VIDAA partnership to increase in 2026, supported by ACR data licensing revenue [21] Other Important Information - Nexxen repurchased approximately 1.8 million shares in Q3, investing about $18.1 million through its share repurchase program [17] - The company invested $20 million in VIDAA in Q3, with an additional $15 million planned for Q3 2026 [18] Q&A Session Summary Question: Steps to address DSP headwinds - Management outlined a clear path to address DSP headwinds, including launching a new product for programmatic TV ads and enhancing self-service solutions [24][27] Question: Current trend in CTV - Management acknowledged softness in CTV due to competition and political factors, but expressed optimism for growth in 2026 with new partnerships and innovations [33][36] Question: Impact of DSP changes on future guidance - Management clarified that the reduced spending from a major DSP is expected to be isolated to Q4 2025 and will not materially impact 2026 performance [20][41] Question: Data licensing partnerships - Management discussed the growth potential of data licensing partnerships with Yahoo and Trade Desk, emphasizing the profitability of these initiatives [49][50] Question: Non-programmatic business impact - Management confirmed that the non-programmatic business operates in silos and does not provide benefits to the programmatic business [47]

Core Insights - Nexxen International Ltd. reported financial results for Q3 and the first nine months of 2025, highlighting strong performance driven by omnichannel growth and increased demand for data solutions [1][3] - The company renewed and expanded its strategic partnership with VIDAA, which is expected to enhance its CTV capabilities and drive future growth [3][11] - Nexxen lowered its full-year 2025 financial guidance due to lower-than-expected activity from certain third-party DSP partners [6][11] Financial Performance - Q3 2025 Contribution ex-TAC reached $92.6 million, an 8% increase year-over-year, while programmatic revenue was $89.6 million, up 10% year-over-year [5][12] - Adjusted EBITDA for Q3 2025 was $28.2 million, down 11% year-over-year, representing a 30% margin [5][12] - The company reported a total comprehensive income of $3.8 million for Q3 2025, a 77% decrease compared to the same period in 2024 [12][23] Operational Highlights - Nexxen launched the industry's first solution for programmatic Smart TV home screen activation, enhancing its advertising capabilities [3][11] - The company repurchased 1,796,215 Ordinary Shares during Q3 2025, completing a $50 million share repurchase program and initiating a new $20 million program [9][11] - Nexxen's cash and cash equivalents stood at $116.7 million as of September 30, 2025, with no long-term debt [5][12] Strategic Initiatives - The renewed partnership with VIDAA secures exclusive rights for video and display ad monetization in North America and extends access to ACR data through at least 2029 [11][11] - Management is shifting resources towards its DSP and data platform to enhance enterprise adoption and reduce reliance on third-party partners [11][11] - The company is exploring strategic opportunities to accelerate programmatic revenue growth and expand its data and CTV capabilities [11][11]

Core Insights - Nexxen has launched a programmatic activation capability for native Smart TV advertising inventory, making it the first in the market to do so through its demand-side platform (DSP) [1][4][6] - Viewers spend an average of 10.5 minutes browsing content on Smart TV home screens, providing a significant opportunity for brands to engage with consumers during decision-making moments [2][5] - The new system streamlines the activation process for advertisers, allowing for real-time targeting and measurement of campaign outcomes [3][4] Company Overview - Nexxen is a global advertising technology platform that integrates data and advanced TV capabilities, offering a unified technology stack that includes both DSP and supply-side platform (SSP) [7] - The company aims to empower advertisers, agencies, publishers, and broadcasters by providing tools for discovery, planning, activation, monetization, measurement, and optimization [7] - Nexxen is headquartered in Israel and has a global presence with offices in the United States, Canada, Europe, and Asia-Pacific, and is publicly traded on NASDAQ under the ticker NEXN [8]