Financial Data and Key Metrics Changes - Revenue grew 10% year-over-year in Q2 2024 to 5.9 million [5][14] - Adjusted EBITDA margin improved to 15.5%, up from 13% in the prior year [5][20] - CTV impressions, a key growth driver, increased by 21% over last year [5][15] Business Line Data and Key Metrics Changes - Ad serving and personalization revenue rose 11%, while measurement revenue grew 6% [14] - Ad serving and personalization accounted for 78% of total revenue, with measurement making up 22% [14] - CTV revenue from ad serving and personalization grew 21% year-over-year [14][15] Market Data and Key Metrics Changes - CTV impressions represented 54% of total video impressions, up from 51% in the previous year [15] - Mobile video volume grew by 13%, while desktop volume decreased by 9% [16] - Total video impressions served grew 14% overall compared to Q2 2023 [16] Company Strategy and Development Direction - The company launched the Harmony initiative to address challenges in CTV advertising and improve efficiency [6][10] - New products like Harmony Direct and Harmony Frequency aim to optimize ad delivery and frequency management [8][9] - Strategic collaborations, including a partnership with Nielsen, are expected to enhance measurement capabilities and drive growth [11][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term targets of 20%+ annual revenue growth and 30%+ adjusted EBITDA margin despite macroeconomic uncertainties [22][24] - The company anticipates continued growth in CTV, driven by increasing ad spending and new inventory [36] - Management highlighted the importance of live sports as a significant driver of CTV impressions [36] Other Important Information - The company reported a net loss of 19 million in Q2 2023 [19] - Free cash flow usage improved by 38% compared to the previous year [21] - The company ended Q2 with $30.6 million in cash and cash equivalents, a 31% increase from the previous year [21] Q&A Session Summary Question: What are the common threads among new customer wins? - Management noted that new customers often switch from competitors like Google to Innovid for advanced ad serving capabilities, with a focus on CTV [25][31] Question: What drives the sequential revenue growth guidance for Q3 and Q4? - Management highlighted volume increases, cross-selling, and upselling as key drivers for anticipated growth [26][27] Question: How has new CTV inventory impacted the ecosystem? - Management indicated that the inventory of CTV is growing significantly, driven by increased content consumption and live sports [35][36] Question: What are the vertical trends observed in Q2? - Strong performance was noted in CPG and pharma, while retail showed weakness [38] Question: What is the goal of the collaboration with Nielsen? - The partnership aims to create a streamlined workflow for measurement, enhancing value for mutual customers [40][41] Question: What are the expected investments going forward? - Management indicated that investments will continue to focus on innovation without significant increases in R&D spending [44][45] Question: Does Innovid serve ads into Amazon Prime Video? - Management confirmed that Innovid serves ads on Amazon and is also a customer for measurement products [46][48]
Innovid (CTV) - 2024 Q2 - Earnings Call Transcript