Financial Data and Key Metrics Changes - Q1 revenue grew 18% year-over-year to $30.5 million, exceeding guidance by 5% [16][77] - Adjusted EBITDA was positive at $0.1 million, representing a margin of 0.5%, compared to a negative 12% in Q1 of the previous year [20][16] - Q1 net loss was $8.6 million, or a per share loss of $0.06 [20] Business Line Data and Key Metrics Changes - CTV volume grew 13% year-over-year, representing 54% of all video impressions, up from 49% in Q1 2022 [12] - Mobile volume decreased by 9% and represented 34% of all video impressions, while desktop volume decreased by 10% and was 12% of all video impressions [12] - Measurement revenue grew 1% on a pro forma basis, representing 23% of total revenue in Q1 [77] Market Data and Key Metrics Changes - U.S. revenue grew 18% year-over-year, representing 91% of total revenue, while international revenue grew 14% year-over-year, representing 9% of quarterly revenue [31] - The overall advertising market remains challenged, but there are indications of modest firming [17] Company Strategy and Development Direction - The company is focused on profitable growth and scaling up measurement capabilities as a long-term strategy [18] - Innovid aims to capitalize on the shift to CTV and the growing demand for ad-serving and measurement solutions [10][18] - The company is optimistic about the retail media opportunity, particularly through partnerships like the one with Walmart [53] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the remainder of 2023, noting improvements in advertiser demand trends [48][30] - The company expects to see a growth multiplier effect as the ad market recovers, with a focus on cross-selling to existing customers [17][29] - Management remains focused on controlling costs while investing in R&D and new technology [51][62] Other Important Information - Q1 operating expenses were $36.7 million, up 5% year-over-year, primarily due to stock-based compensation and the TVSquared acquisition [20] - The company ended the quarter with $45 million in cash and cash equivalents and $20 million in debt [33] Q&A Session Summary Question: How did the macro situation affect the company's performance? - Management indicated that the outperformance was driven by company performance and key product strengths, despite market softness [2][3] Question: What is the company's outlook on generative AI? - Management discussed the integration of generative AI into their platform, enhancing creative optimization and measurement capabilities [21][22] Question: How is the company managing pricing and cost controls? - Management noted that they are exploring flexible pricing structures and maintaining focus on EBITDA growth while controlling costs [43][44] Question: What are the trends in advertiser demand? - Management observed a cautious but improving demand trend, with continued spending on CTV despite overall media spend shrinking [49][48] Question: What is the company's strategy regarding retail media? - Management highlighted retail media as a significant opportunity, emphasizing ad-serving and creative personalization as key areas of focus [53][65]
Innovid (CTV) - 2023 Q1 - Earnings Call Transcript