Innovid (CTV) Q3 Earnings call transcript Nov 12, 2024
2min read Innovid, a leading technology company specializing in video advertising and personalization, recently held its third quarter 2024 earnings call, highlighting the company's financial performance and strategic initiatives. The call, led by Co-Founder and CEO, Zvika Netter, and CFO, Anthony Callini, provided valuable insights into Innovid's current financial health and future growth prospects.
Financial Highlights
Innovid reported a 6% year-over-year revenue growth to $38 million, with adjusted EBITDA growing 29% to $8 million at a 22% adjusted EBITDA margin. The growth was primarily driven by a 12% increase in CTV ad serving and personalization revenue, with CTV share of total video impressions reaching a new record high of 58%. The company's strategic focus on driving revenue growth while expanding margins has been successful, as shown in the significant growth in adjusted EBITDA and EBITDA margin.
Market Position and Challenges
The earnings call highlighted the ongoing shift from linear to connected television (CTV) and the company's strong positioning in this market. Innovid's success is attributed to its ability to capture a significant portion of the CTV market, with CTV video impressions accounting for 58% of all video impressions. However, the growth was offset by lower mobile impressions and desktop video impressions, which were down by 2% and 5%, respectively. These trends are influenced by the influx of political ads in the market during the U.S. election cycle, causing brands to slow their ad spending. Innovid anticipates more normalized ad spend moving forward but still expects to see some impact on fourth-quarter and full-year revenue.
Strategic Initiatives and Future Outlook
Innovid is actively addressing the challenges faced in the market by realigning its sales organization and overall go-to-market strategy to better capitalize on cross-sell opportunities. The company is expanding its Harmony initiative, a strategic collaboration aimed at optimizing CTV advertising at the infrastructure level, and has recently added LG Ad Solutions and the agency PMG to its list of partners. Innovid also launched its software-only model, which has accelerated adoption and reached 50% growth in impressions from clients using the platform without an additional service layer. This model not only improves unit economics but also extends Innovid's reach to smaller advertisers.
Conclusion
Innovid's third quarter 2024 earnings call presented a mixed bag of results, with strong growth in CTV ad serving and personalization revenue but a slower than anticipated growth in measurement revenue. Despite the challenges faced in the market, Innovid remains optimistic about its long-term prospects, particularly in the CTV market, which has significant room for expansion. The company's strategic initiatives, including the expansion of Harmony and the software-only model, are expected to drive growth in the future. Overall, Innovid's focus on operational efficiency and margin expansion, coupled with its strategic positioning in the CTV market, positions the company well for future success.