Nexxen International(US:NEXN)2026-03-04 15:02Financial Data and Key Metrics Changes - For Q4 2025, the company reported Contribution ex-TAC of $97.8 million, reflecting a 7% year-over-year decrease or a 1% decrease excluding political revenue [19] - Programmatic revenue was $94.3 million, down 4% year-over-year but up 2% excluding political revenue [19] - Adjusted EBITDA for Q4 was $33.9 million, representing a 35% margin as a percentage of Contribution ex-TAC [22] - Non-IFRS diluted earnings per share was $0.33 in Q4 compared to $0.48 in Q4 2024 [23] - For the full year 2026, the company expects Contribution ex-TAC in the range of $375 million-$390 million, representing over 8% year-over-year growth at the midpoint [26] Business Line Data and Key Metrics Changes - Contribution ex-TAC from the non-programmatic business line declined by approximately $3 million year-over-year [20] - CTV revenue declined 19% year-over-year in Q4 to $30.1 million, but the company expects growth in 2026 [21] - Desktop video revenue increased 21% year-over-year, while mobile video revenue declined 9% [20] - Contribution ex-TAC from data products increased 51% year-over-year [20] Market Data and Key Metrics Changes - The company noted that over 80% of mobile ad spend occurred in apps in 2025, with mobile expected to account for over two-thirds of total digital ad spend by 2027 [11] - The company is focusing on expanding its presence in the CTV market, which is expected to be a core long-term growth engine [21] Company Strategy and Development Direction - The company plans to continue investing in enterprise solutions and has doubled its enterprise customer base in 2025 [7] - The launch of a programmatic Smart TV on-screen advertising solution is expected to create a new growth channel for advertisers [9] - The company is focusing on building partnerships with leading DSPs to enhance its programmatic advertising capabilities [10] - The company aims to capitalize on major advertising events in 2026, including the FIFA World Cup and U.S. midterm elections [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to expand margins over time through disciplined cost management and anticipated benefits from AI initiatives [22] - The company is seeing strong momentum in early 2026, with contribution ad stack and programmatic revenue trending ahead of initial expectations [6] - Management highlighted the importance of infrastructure investments made in 2025 to support long-term programmatic trading growth [6] Other Important Information - The company repurchased 1.44 million shares in Q4, investing approximately $10.8 million [23] - The company plans to invest an additional $50 million in its partnership with V in Q3 2026, expecting to hold a 6% equity stake [24] Q&A Session Summary Question: Can you provide more details on the impact of AI on 2025 results and CTV growth in 2026? - Management noted that AI is reshaping user engagement, leading to a decline in traditional browsing, which has prompted a shift towards CTV and in-app mobile solutions that are less affected by AI [34][35][38] Question: What is the current revenue stream for data and how does it contribute to growth? - Management indicated that ACR data is becoming increasingly valuable for DSPs, with data integration being a significant part of their campaigns, enhancing overall media spend [50][52] Question: What portion of growth is expected from political advertising in 2026? - Management stated that while political advertising is not a major focus, they have built dedicated teams to leverage their segmentation tools for political campaigns, expecting positive contributions [93]