Nexxen's Q1 2025: Contradictions Unveiled on Macroeconomics, GenAI Integration, and Sales Strategy

Macroeconomic stability and growth expectations, GenAI integration and platform evolution, sales execution and growth strategy, CTV supply and partnership strategy, and the impact of Google AI initiatives on Nexxen's business are the key contradictions discussed in Nexxen International Ltd.'s latest 2025Q1 earnings call.



Revenue and EBITDA Growth:
- Nexxen International Ltd. reported a Q1 record contribution ex-TAC of $75 million, up 8% year-over-year, with programmatic revenue reaching $71.8 million, reflecting a 10% increase compared to Q1 2024.
- The growth was driven by strong sales execution, continued CTV momentum, increased end-to-end revenue, and higher spend consolidation from key partners.

CTV and Video Revenue Expansion:
- Nexxen generated record CTV revenue of $26.4 million, which reflected 40% year-over-year growth, accounting for 37% of programmatic revenue, up from 29% in Q1 2024.
- This momentum was supported by Nexxen's leadership position in delivering measurable performance across CTV advertising and strategic partnerships with leading CTV advertisers and streaming platforms.

Adjusted EBITDA Increase:
- Nexxen achieved an adjusted EBITDA of $23.1 million, a 95% increase from Q1 2024, with an adjusted EBITDA margin in Q1 increasing to 31% as a percentage of contribution ex-TAC from 17% in Q1 2024.
- The increase was driven by higher contribution ex-TAC, increased spend consolidation, and customers adopting more solutions within Nexxen's ecosystem, particularly as enterprise self-service customers accessed more inventory through their SSP.