Nexxen’s Investor Day: A Catalyst for Dominance in CTV and AI-Driven Ad Tech

Nexxen International Ltd. (NASDAQ: NEXX), a global leader in video and Connected TV (CTV) advertising technology, is poised to make a bold statement at its inaugural Investor Day on May 22, 2025, in New York City. The event promises to outline the company’s strategic roadmap for 2025 and beyond, emphasizing its growth in AI-driven solutions, CTV dominance, and shareholder-friendly initiatives. For investors, this is a critical moment to assess Nexxen’s potential in an industry primed for innovation.

Why Nexxen’s Investor Day Matters

Nexxen’s rise in the ad tech sector has been fueled by its specialization in video and CTV advertising, two areas where spending continues to grow. In 2024, the company achieved record results: Contribution ex-TAC (traffic acquisition costs) hit $343.5 million, up 9% year-over-year, while CTV revenue surged 33% to $113.8 million. These figures underscore the strength of its core business, which now accounts for 90% of total revenue through programmatic advertising.

The Investor Day will likely highlight three key areas critical to Nexxen’s future:
1. AI Integration: Plans to launch generative AI tools to enhance targeting and campaign efficiency.
2. Global CTV Expansion: Leveraging partnerships with TV manufacturers like Hisense and LG to access premium inventory.
3. Financial Ambitions: Aiming for $380 million in Contribution ex-TAC and $125 million in Adjusted EBITDA in 2025, up 11% and 10%, respectively, from 2024.

The Case for Nexxen’s Long-Term Growth

1. CTV Dominance in a Shifting Landscape
CTV advertising is a high-growth segment, with global spend expected to reach $40 billion by 2027 (eMarketer). Nexxen’s TV Intelligence platform, which aggregates data from 50 million U.S. households, gives it a unique edge. By licensing this data to agencies and advertisers, Nexxen generates high-margin recurring revenue—a strategy that reduced its reliance on volatile ad budgets in 2024.

2. AI as a Competitive Weapon
The ad tech industry is undergoing a “data arms race”, where AI-driven solutions like audience targeting and real-time bidding optimization are table stakes. Nexxen’s planned generative AI tools could streamline workflows for advertisers and publishers, reducing costs and boosting ROI. This aligns with its $380 million 2025 revenue target, which assumes continued CTV and data licensing growth.

3. Shareholder-Friendly Tactics
Nexxen’s financial discipline is evident in its $187.1 million cash reserves (as of Q4 2024) and its $50 million share repurchase program approved in March 2025. These moves signal confidence in its balance sheet and a commitment to returning value to investors. The delisting from London’s AIM market and shift to a single Nasdaq listing also simplify trading and could boost liquidity.

Risks and Challenges

While Nexxen’s trajectory is promising, risks remain. Macroeconomic uncertainty could delay advertiser spending recovery, particularly in smaller markets. Additionally, competition in ad tech is fierce, with giants like Google and Amazon continually innovating. Nexxen’s success hinges on executing its AI roadmap and maintaining its CTV partnerships flawlessly.

Conclusion: A Buy Signal for Patient Investors

Nexxen’s Investor Day is a pivotal opportunity to validate its strategy as a CTV and AI leader. With a $125 million EBITDA target, strong cash reserves, and a focus on high-margin data licensing, the company is well-positioned to capitalize on the $40 billion CTV market opportunity.

Investors should watch for clarity on two key points during the event:
1. AI’s Impact on Margins: How will generative AI reduce costs or boost revenue?
2. CTV Market Share: Will Nexxen expand its global footprint beyond the U.S. and U.K.?

Final Take: Nexxen’s combination of CTV leadership, data assets, and AI ambition makes it a compelling play on the future of digital advertising. While risks exist, the 2025 Investor Day could be the catalyst for a re-rating of its stock. For investors seeking exposure to the next wave of ad tech innovation, Nexxen deserves a close look.

Data as of March 2025. For the latest updates, refer to Nexxen’s investor relations page at https://investors.nexxen.com.