Financial Data and Key Metrics Changes - Revenue increased by 47% year-over-year to 11.8 million but achieved a positive adjusted EBITDA of 2 million to breakeven [8][34] - Adjusted EBITDA margin for the third quarter was 8%, an increase from the previous year [34] Business Line Data and Key Metrics Changes - Revenue from measurement services grew to 23% of total quarterly revenue, up from 1% in Q3 2021, reflecting a 23% growth on a pro forma basis [28] - Ad serving and personalization services contributed 77% of total revenue, with personalization growing at a rate of 24% year-over-year [29] - CTV impression volume accounted for 54% of all video impressions, up from 46% the previous year, with a year-over-year growth of 36% [30] Market Data and Key Metrics Changes - U.S. revenue accounted for 92% of total revenue, growing 48% year-over-year, while international revenue grew 38% year-over-year, contributing 8% of quarterly revenue [31] - The company noted that the strengthening of the U.S. dollar impacted international revenue [31] Company Strategy and Development Direction - The company aims to expand its platform across delivery, personalization, and measurement, focusing on partnerships with major streamers like Disney Plus and Netflix [10][12] - Innovid is positioned to unify advertising across platforms, addressing fragmentation in the CTV advertising market [13] - The company plans to continue investing in the growing CTV space while maintaining a pragmatic approach to cost management [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to thrive despite economic uncertainties, citing a strong market position in CTV [9][26] - The company is taking proactive measures to monitor and manage costs in light of macroeconomic conditions [26] - For Q4 2022, the company expects revenue in the range of 36 million, reflecting year-over-year growth of 31% to 39% [38] Other Important Information - The company plans to host its first Investor Day on November 16, 2022, in New York City [7] - The total operating expenses for Q3 were $38.6 million, growing 31% year-over-year, primarily due to the inclusion of TVSquared [32] Q&A Session Summary Question: What is the outlook for organic growth in Q3 and how does it compare to CTV growth? - Management indicated that they are not seeing a decline in market share and maintain a high customer retention rate, with CTV continuing to grow at 36% year-over-year despite headwinds [41][42] Question: How does the company view the opportunity with Netflix and the impact of new AVOD services? - Management sees Netflix's shift to an ad-based model as a significant positive, allowing for increased volume and participation from brands [49][50] Question: What are the top reasons for not adopting InnovidXP? - Management noted that adoption can take time due to existing relationships with other measurement providers and the nature of enterprise sales cycles [68] Question: What is the current state of ad campaigns across different verticals? - Management observed that while there is volatility in ad spending, there is no significant trend affecting specific verticals, with adjustments being more tactical on a brand-by-brand basis [72]
Innovid (CTV) - 2022 Q3 - Earnings Call Transcript