Financial Data and Key Metrics Changes - In Q3 2024, the company generated contribution ex-TAC of 31.6 million, reflecting a 49% year-over-year increase from Q3 2023 [47] - The adjusted EBITDA margin increased to 37% from 28% in Q3 2023 [48] - The company reported non-IFRS diluted earnings per ordinary share of 0.09 in Q3 2023 [49] Business Line Data and Key Metrics Changes - Programmatic revenue was 29.7 million, representing a 52% growth from Q3 2023, and accounted for 36% of programmatic revenue, up from 26% in Q3 2023 [42] - Contribution ex-TAC from display grew 21% year-over-year, while self-service contribution ex-TAC increased 15% [45] - Contribution ex-TAC from PMP grew 52% and contribution ex-TAC from mobile grew 4% year-over-year [45] Market Data and Key Metrics Changes - The company observed strength in CTV, video, display, mobile, and PMPs, with increases across 10 of 11 industry verticals, particularly in governance, finance, health, and automotive [41] - A year-over-year decrease was noted in the travel vertical [41] Company Strategy and Development Direction - The company aims to incorporate GenAI across its platform to enhance tech and data capabilities [16][34] - The strategy focuses on connecting robust data solutions to a flexible platform to improve customer outcomes [13] - The company is positioned as a leader in CTV advertising data and technology, capitalizing on the growth in ad-supported TV content [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continuing to accelerate growth, expecting strong performance in Q4 2024 and 2025 [38][52] - The company plans to boost data and technology investments to enhance platform differentiation and advantages [54] - Management highlighted the importance of data in driving campaign performance and achieving better results [73] Other Important Information - The company announced a new $50 million ordinary share repurchase program expected to begin on November 19 [50] - Proposed changes to the stock exchange structure aim to attract U.S. investors and reduce regulatory complexity [57][58] Q&A Session Summary Question: How does the company get customers to see the new Nexxen and its capabilities? - Management highlighted the Discovery tool as a powerful means to connect and integrate data sets, allowing advertisers to learn about audiences and measure results effectively [62][64] Question: What factors contributed to the strong growth in CTV? - Growth was attributed to advanced technology, an increasing publisher list, and partnerships that enhanced media acquisition [66][68] Question: Why do end-to-end platforms have an advantage despite slower growth compared to single-sided platforms? - Management emphasized the efficiency, privacy, and data synchronization benefits of a fully functional end-to-end solution [72][77] Question: What are the expectations for political contributions in Q4? - Management indicated that political contributions would not be material but expected a record annual contribution based on current trends [84] Question: What is the outlook for CTV growth compared to PMP growth? - Management noted that while CTV is growing rapidly, PMP will continue to be larger due to its broader scope [91]
Nexxen International(NEXN) - 2024 Q3 - Earnings Call Transcript