• Contribution ex-TAC: $105.2 million in Q4, an all-time quarterly record, with 16% year-over-year growth.
• Programmatic Revenue: $98.7 million in Q4, reflecting 15% growth from Q4 2023.
• CTV Revenue: $37 million in Q4, representing 86% growth from Q4 2023.
• Adjusted EBITDA: $44.3 million in Q4, a 38% increase from Q4 2023, with a margin of 42%.
• Net Cash from Operating Activities: $52.3 million in Q4, compared to $43.6 million in Q4 2023.
• Cash and Cash Equivalents: $187.1 million as of December 31, 2024.
• Non-IFRS Diluted Earnings per Share: $0.48 in Q4 2024, compared to $0.20 in Q4 2023.
• Share Repurchase: Approximately 4.5 million ordinary shares repurchased in Q4, reflecting an investment of $20.1 million.
• 2025 Outlook: Expected contribution ex-TAC of approximately $380 million and adjusted EBITDA of approximately $125 million.

• Warning! GuruFocus has detected 7 Warning Signs with CHPT.

Release Date: March 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Nexxen International Ltd (NASDAQ:NEXN) achieved record quarterly and annual Contribution ex-TAC for programmatic revenues and CTV revenue results in 2024.
• The successful integration of Amobee in 2023 enhanced Nexxen's enterprise DSP capabilities, data capabilities, and CTV and omnichannel offerings.
• Nexxen's end-to-end platform and robust DSP and SSP technologies provide a competitive edge in the CTV market.
• The company plans to deepen its AI capabilities in 2025, which is expected to enhance platform usability and improve targeting precision.
• Nexxen's CTV revenue grew by 86% year-over-year in Q4 2024, driven by strong sales execution and improved macroeconomic conditions.

Negative Points

• Nexxen experienced a year-over-year decrease in mobile video revenue and within its travel and education verticals.
• The macroeconomic environment remains fragile, which could impact future performance.
• Despite strong growth, the data product segment is still relatively small in terms of revenue contribution.
• The company anticipates an increase in stock-based compensation expenses in 2025 due to a higher share price.
• Nexxen's transition from IFRS to US GAAP accounting is still under consideration, which may involve complexities and adjustments.

Q & A Highlights

Q: Can you discuss the go-to-market improvements post-Amobee integration and how you plan to build on this momentum in 2025? A: Ofer Druker, CEO, explained that post-Amobee integration, Nexxen focused on rebranding and refining their market messaging, which has clarified their offerings and enhanced market understanding. This strategic shift has positioned Nexxen as a leader in end-to-end solutions, leveraging their rich data capabilities to attract both advertisers and publishers.

Q: How is the macroeconomic environment affecting Nexxen's performance in Q1 2025 and the full-year guidance? A: Sagi Niri, CFO, noted that despite a fragile macroeconomic environment, Nexxen has not observed any unexpected changes that could impact their 2025 results. The company remains focused on execution and strategic partnerships to drive growth.

Q: Can you elaborate on the growth of Nexxen's data products and their future potential? A: Sagi Niri highlighted that while data products have grown significantly, they are still a small part of the business. Nexxen focuses on integrating data with media services to enhance margins and performance. Ofer Druker added that data products, particularly ACL data, are increasingly being licensed to clients, contributing to growth.

Q: With Nexxen now 100% US-based, is there a plan to transition from IFRS to US GAAP? A: Sagi Niri confirmed that Nexxen is evaluating the transition to US GAAP, with discussions ongoing. While not yet committed to a 2025 transition, the company is considering it for the near future.

Q: How is the CTV market evolving, and what impact does this have on Nexxen's business? A: Ofer Druker explained that CTV publishers are expanding their partnerships to include platforms like Nexxen, which offer unique demand sources. This trend is beneficial for Nexxen, allowing them to grow their publisher base and CTV revenues by providing unique value through their integrated platform.

Q: What opportunities does generative AI present for Nexxen, particularly in expanding the advertiser base? A: Ofer Druker stated that generative AI simplifies platform usability, making it accessible to smaller advertisers. This technology enhances targeting and optimization, potentially broadening Nexxen's market reach and improving media performance.

Q: What are the key growth levers for data licensing revenue in 2025? A: Ofer Druker mentioned that growth will come from winning new business and expanding existing client relationships. Nexxen's comprehensive solutions address industry challenges, fostering deeper engagement and increased revenue per client.

Q: How does Nexxen plan to leverage its platform to drive long-term growth and market share gains? A: Sagi Niri emphasized Nexxen's focus on expanding customer relationships and multi-solution adoption. The company's end-to-end platform and robust data capabilities position it well to attract new partners and achieve sustainable growth.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.