Financial Data and Key Metrics Changes - Full year 2021 revenue grew 31% year-over-year to 26 million, with CTV representing 45% of total revenue and growing by 48% in 2021 [37][38] - Gross profit for Q4 was 7.6 million, with an adjusted EBITDA margin of 7% for Q4 and 6% for the full year [43] Business Line Data and Key Metrics Changes - CTV accounted for the largest share of revenue, with a growth rate of 48% in 2021, while mobile contributed 39% and grew by 21%, and desktop contributed 16% with a growth of 19% [37][38] - Advanced creative revenue grew 49% year-over-year due to increased adoption of personalization products [18] - International revenue grew 39% year-over-year to 14.4 billion in 2021, accounting for 18.2% of total TV spending, projected to triple by 2025 [11][10] - Non-U.S. CTV volume grew 137% year-over-year, indicating significant global adoption potential [12] Company Strategy and Development Direction - The company aims to reimagine TV advertising by providing infrastructure for personalized, data-driven advertising [9][10] - Four primary growth engines identified: delivery volume growth, product upsell, geographic expansion, and expanding client base [13] - The acquisition of TVSquared is expected to enhance measurement capabilities and expand market presence [29][30] Management Comments on Operating Environment and Future Outlook - Management noted a temporary slowdown in volume growth during Q4 due to supply chain issues affecting major clients, particularly in the automotive sector [24] - Despite short-term challenges, the company remains optimistic about the long-term shift of TV advertising budgets to CTV [26] - The company anticipates continued growth in CTV ad spend driven by new streaming platforms and sports broadcasting changes [26][27] Other Important Information - The company reported a record high retention rate of 97% for core platform clients, indicating strong customer loyalty [22][44] - Cash and cash equivalents at the end of 2021 were 150 million [46] Q&A Session Summary Question: What is the total investment in the measurement line extension for 2022? - Management indicated that a significant portion of resources, between a third to half, will be dedicated to extending the measurement line of business, particularly following the acquisition of TVSquared [54] Question: What is the expected return on investment from the measurement spending? - Management plans to provide a pro forma outlook on revenue streams post-acquisition closure, emphasizing the strategic importance of measurement for client acquisition and retention [55] Question: What is the outlook for the automotive vertical in Q1? - Management noted that while supply chain issues persist, they expect growth rates in CTV to return to normal levels as inventory issues resolve [58] Question: How does TVSquared differentiate from other measurement players? - Management highlighted that Innovid's edge lies in its ability to collect census-level data through its ad delivery platform, providing a more accurate measurement solution [66] Question: What is the opportunity in China? - The company is entering the Chinese market to support global clients' measurement needs, rather than local sales, due to demand from existing multinational clients [75] Question: How do measurement products currently monetize? - TVSquared's revenue model is based on annual contracts rather than CPM, and management plans to integrate CTV measurement capabilities into a unified pricing model post-acquisition [79] Question: What is Innovid Key? - Innovid Key is an identity framework that connects multiple identifiers to first-party data, enhancing ad exposure measurement [81]
Innovid (CTV) - 2021 Q4 - Earnings Call Transcript