- Q2 2024 revenue increased 10% year-over-year to $38.0
million
- Q2 2024 net loss improved year-over-year to $10.5 million and
Adjusted EBITDA* increased 29% year-over-year to $5.9 million
- Adjusted EBITDA margin increased to 15.5%, the eighth
consecutive quarter of expansion
- CTV impression volume from ad serving and personalization
increased 21% year-over-year
Innovid Corp. (NYSE:CTV) (the "Company"), an independent
software platform for the creation, delivery, measurement, and
optimization of advertising across connected TV (CTV), linear TV,
and digital, today announced financial results for the second
quarter ended June 30, 2024.
“I am pleased to report Innovid delivered another quarter of
double-digit, profitable revenue growth,” said Zvika Netter,
Co-Founder and CEO. “Since the beginning of 2024, we have made
momentous progress, including the launch of our strategic Harmony
Initiative and new partnerships with leading players in the market.
We continue to invest significantly in strategic innovation for the
future of CTV, while also delivering Adjusted EBITDA margin
expansion.”
Second Quarter 2024 Financial Summary
- Revenue increased to $38.0 million, reflecting year-over-year
growth of 10%, compared to $34.5 million for the same period in
2023.
- Net loss was $10.5 million, compared to a net loss of $19.0
million for the same period in 2023, an $8.5 million improvement
year-over-year.
- Adjusted EBITDA* grew to $5.9 million, an increase of 29%
year-over-year, compared to $4.5 million for the same period in
2023, representing a 15.5% Adjusted EBITDA margin.*
- Operating cash flow was $1.2 million, compared to $0.6 million
for the same period in 2023.
- Free cash flow* use of cash was $1.3 million, compared to use
of cash of $2.0 million for the same period in 2023, a $0.7 million
improvement year-over-year.
Recent Business Highlights
- Innovid launched Harmony Frequency, the first holistic
frequency management solution for CTV and digital advertising, with
Yahoo DSP as a launch partner.
- Innovid announced today a collaboration with Nielsen with the
intent to provide a seamless workflow solution and holistic view of
the cross-media ads universe. The integration aims to bring
Innovid’s ad serving infrastructure together with Nielsen ONE to
simplify and improve ad measurement.
- Goodway Group and Vizio recently joined the Harmony initiative,
alongside previously announced partners Roku, PMG, Assembly, and
CMI Media Group.
- Recent new client wins and product expansions with leading
advertisers and publishers such as Spectrum, WNBA, Eli Lilly,
Lundbeck, Purple Innovation, Habit Burger, and The Wonderful
Company.
- CTV impression volume from ad serving and personalization
increased 21% year-over-year, while Mobile video impressions from
ad serving and personalization grew by 13% year-over-year, and
desktop impressions from ad serving and personalization decreased
by 9% year-over-year.
- Innovid joined the broad-market Russell 3000® Index during the
2024 Russell US Indexes annual reconstitution.
Financial Outlook
Innovid is providing the following financial guidance for Q3 and
reiterating full year 2024 guidance:
- Q3 2024 revenue in a range between $40 million and $42 million,
reflecting year-over–year growth between 10% and 16%.
- Q3 2024 Adjusted EBITDA* in a range between $6.5 million and
$8.5 million.
- FY 2024 revenue in a range between $156 million and $163
million, representing annual growth between 11% and 16%.
- FY 2024 Adjusted EBITDA* in a range between $24 million and $29
million.
*See non-GAAP financial measures and reconciliation of GAAP to
non-GAAP tables.
Conference Call
The Company will host a conference call and webcast to discuss
second quarter 2024 financial results today at 8:30 a.m. Eastern
Time. Hosting the call will be Zvika Netter, Co-founder and Chief
Executive Officer and Anthony Callini, Chief Financial Officer. The
conference call will be available via webcast at
investors.innovid.com. To participate via telephone, please dial
(+1) 877-407-3211 (toll free) or (+1) 201-389-0862 (toll-free
international).
Following the call, a replay of the webcast will be available
for 90 days on the Innovid Investor Relations website.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures under
the rules of the U.S. Securities and Exchange Commission. This
non-GAAP information supplements and is not intended to represent a
measure of performance in accordance with disclosures required by
generally accepted accounting principles. Non-GAAP financial
measures are used internally as measures of operational efficiency
to understand and evaluate our core business operations, as well as
comparisons to peers as similar measures are frequently used by
securities analysts, investors, ratings agencies and other
interested parties to evaluate businesses in our industry.
Accordingly, Innovid believes it is useful for investors and others
to review both GAAP and non-GAAP measures in order for (a)
period-to-period comparisons of our core business, (b) comparisons
to peers as similar measures are frequently used by securities
analysts, investors, ratings agencies and other interested parties
to evaluate businesses in our industry, and (c) providing an
understanding and evaluation of our trends when comparing our
operating results, on a consistent basis, by excluding items that
we do not believe are indicative of our core operating performance.
However, these non-GAAP financial measures should not take the
place of GAAP financial measures in evaluating our business. The
primary limitations associated with the use of non-GAAP financial
measures are that these measures may not be directly comparable to
the amounts reported by other companies and they do not include all
items of income and expense that affect operations. Innovid
management compensates for these limitations by considering the
company’s financial results and outlook as determined in accordance
with GAAP and by providing a detailed reconciliation of the
non-GAAP financial measures to the most directly comparable GAAP
measures in the tables attached to this press release. We are not
able to provide a reconciliation of the projected Adjusted EBITDA
to expected net (loss) income attributable to Innovid for the
second quarter of 2024 or the full year of 2024, without
unreasonable effort. This is due to the unknown effect, timing, and
potential significance of the effects of taxes on income in
multiple jurisdictions, finance (income)/expenses including
valuations, among others. These items have in the past, and may in
the future, significantly affect GAAP results in a particular
period.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1996. The Company's actual
results may differ from its expectations, estimates, and
projections and consequently, you should not rely on these
forward-looking statements as predictions of future events. Words
such as "expect," "estimate," "project," "budget," "forecast,"
"anticipate," "intend," "plan," "may," "will," "could," "should,"
"believes," "predicts," "potential," "continue," "aim," and similar
expressions are intended to identify such forward-looking
statements. These forward-looking statements include, without
limitation, the Company's expectations regarding its future
financial results, expected growth, and future market opportunity.
These forward-looking statements involve significant risks and
uncertainties that could cause the actual results to differ
materially from the expected results, including Innovid's ability
to achieve and, if achieved, maintain profitability, decrease
and/or changes in CTV audience viewership behavior, Innovid's
failure to make the right investment decisions or to innovate and
develop new solutions, inaccurate estimates or projections of
future financial performance, Innovid's failure to manage growth
effectively, the dependence of Innovid's revenues and business on
the overall demand for advertising and a limited number of
advertising agencies and advertisers, the actual or potential
impacts of international conflicts and humanitarian crises on
global markets, the rejection of digital advertising by consumers,
future restrictions on Innovid's ability to collect, use and
disclose data, market pressure resulting in a reduction of
Innovid's revenues per impression, Innovid's failure to adequately
scale its platform infrastructure, exposure to fines and liability
if advertisers, publishers and data providers do not obtain
necessary and requisite consents from consumers for Innovid to
process their personal data, competition for employee talent,
seasonal fluctuations in advertising activity, payment-related
risks, interruptions or delays in services from third parties,
errors, defects, or unintended performance problems in Innovid's
platform, intense market competition, failure to comply with the
terms of third party open source components, changes in tax laws or
tax rulings, failure to maintain an effective system of internal
controls over financial reporting, failure to comply with data
privacy and data protection laws, infringement of third party
intellectual property rights, difficulty in enforcing Innovid's own
intellectual property rights, system failures, security breaches or
cyberattacks, additional financing if required may not be
available, the volatility of the price of Innovid's common stock
and warrants, and other important factors discussed under the
caption "Risk Factors" in Innovid's Annual Report on Form 10-K
filed with the U.S. Securities and Exchange Commissions (“SEC”) on
February 29, 2024, as such factors may be updated from time to time
in its other filings with the SEC, accessible on the SEC's website
at www.sec.gov and the Investors Relations section of Innovid's
website at investors.innovid.com. You should carefully consider the
risks and uncertainties described in the documents filed by the
Company from time to time with the SEC. These filings identify and
address other important risks and uncertainties that could cause
actual events and results to differ materially from those contained
in the forward-looking statements. Most of these factors are
outside the Company's control and are difficult to predict. The
Company cautions not to place undue reliance upon any
forward-looking statements, including projections, which speak only
as of the date made. The Company does not undertake or accept any
obligation to release publicly any updates or revisions to any
forward-looking statements to reflect any change in its
expectations or any change in events, conditions or circumstances
on which any such statement is based.
About Innovid
Innovid (NYSE:CTV) is an independent software platform for the
creation, delivery, measurement, and optimization of advertising
across connected TV (CTV), linear, and digital. Through a global
infrastructure that enables cross-platform ad serving, data-driven
creative, and measurement, Innovid offers its clients always-on
intelligence to optimize advertising investment across channels,
platforms, screens, and devices. Innovid is an independent platform
that leads the market in converged TV innovation, through
proprietary technology and exclusive partnerships designed to
reimagine TV advertising. Headquartered in New York City, Innovid
serves a global client base through offices across the Americas,
Europe, and Asia Pacific. To learn more, visit
https://www.innovid.com/ or follow us on LinkedIn or X.
INNOVID, CORP. AND ITS
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited and in thousands)
June 30, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
30,580
$
49,585
Trade receivables, net
45,762
46,420
Prepaid expenses and other current
assets
5,375
5,615
Total current assets
81,717
101,620
Long-term restricted deposits
430
412
Property and equipment, net
20,449
18,419
Goodwill
102,473
102,473
Intangible assets, net
22,309
24,318
Operating lease right of use asset
11,047
1,435
Other non-current assets
799
1,278
Total assets
$
239,224
$
249,955
Liabilities and Stockholders’
Equity
Current liabilities:
Trade payables
$
6,548
$
2,810
Employee and payroll accruals
9,312
14,060
Lease liabilities—current portion
1,354
1,200
Accrued expenses and other current
liabilities
11,849
7,426
Total current liabilities
29,063
25,496
Long-term debt
—
20,000
Lease liabilities—non-current portion
10,053
634
Other non-current liabilities
10,536
7,528
Warrants liability
664
307
Common stock
14
13
Additional paid-in capital
388,467
378,774
Accumulated deficit
(199,573
)
(182,797
)
Total stockholders’ equity
188,908
195,990
Total liabilities and stockholders’
equity
$
239,224
$
249,955
INNOVID, CORP. AND ITS
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited and in thousands,
except share and per share data)
Three months ended June
30,
Six months ended June
30,
2024
2023
2024
2023
Revenue
$
37,951
$
34,546
$
74,689
$
65,031
Cost of revenue (1)
9,097
8,591
17,829
16,856
Research and development (1)
7,304
6,876
13,625
13,993
Sales and marketing (1)
12,215
11,460
23,841
23,097
General and administrative (1)
9,297
8,924
19,832
18,574
Depreciation and amortization
2,831
2,064
5,455
4,094
Goodwill impairment
—
14,503
—
14,503
Operating loss
(2,793
)
(17,872
)
(5,893
)
(26,086
)
Finance income, net
(78
)
(248
)
(120
)
(2,723
)
Loss before taxes
(2,715
)
(17,624
)
(5,773
)
(23,363
)
Taxes on income
7,827
1,335
11,003
4,159
Net loss
$
(10,542
)
$
(18,959
)
$
(16,776
)
$
(27,522
)
Net loss per share common share—basic and
diluted
$
(0.07
)
$
(0.14
)
$
(0.12
)
$
(0.20
)
Weighted-average number of shares used in
computing net loss per share:
Basic and diluted
144,772,932
137,643,910
143,574,479
134,296,569
(1) Exclusive of depreciation and
amortization presented separately.
INNOVID, CORP. AND ITS
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited and in thousands,
except share and per share data)
Three months ended June 30,
2024
Common stock
Additional paid-in
capital
Accumulated deficit
Total stockholders’
equity
Shares
Amount
Balance as of March 31, 2024
143,861,609
$
13
$
382,935
$
(189,031
)
$
193,917
Stock-based compensation
5,496
5,496
Issuance of common stock:
—exercised options and RSUs vested
1,942,048
1
36
37
Net loss
(10,542
)
(10,542
)
Balance as of June 30, 2024
145,803,657
$
14
$
388,467
$
(199,573
)
$
188,908
Three months ended June 30,
2023
Common stock
Additional paid-in
capital
Accumulated deficit
Total stockholders’
equity
Shares
Amount
Balance as of March 31, 2023
136,616,734
$
13
$
361,948
$
(159,449
)
$
202,512
Stock-based compensation
5,658
5,658
Issuance of common stock:
—exercised options and RSUs vested
2,120,370
—
364
364
Net loss
(18,959
)
(18,959
)
Balance as of June 30, 2023
138,737,104
$
13
$
367,970
$
(178,408
)
$
189,575
Six months ended June 30,
2024
Common stock
Additional paid-in
capital
Accumulated deficit
Total stockholders’
equity
Shares
Amount
Balance as of December 31, 2023
141,194,179
$
13
$
378,774
$
(182,797
)
$
195,990
Stock-based compensation
9,614
9,614
Issuance of common stock:
—exercised options and RSUs vested
4,609,478
1
79
80
Net loss
(16,776
)
(16,776
)
Balance as of June 30, 2024
145,803,657
14
$
388,467
$
(199,573
)
$
188,908
Six months ended June 30,
2023
Common stock
Additional paid-in
capital
Accumulated deficit
Total stockholders’
equity
Shares
Amount
Balance as of December 31, 2022
133,882,414
$
13
$
356,801
$
(150,886
)
$
205,928
Stock-based compensation
10,555
10,555
Issuance of common stock:
—exercised options and RSUs vested
4,854,690
—
614
614
Net loss
(27,522
)
(27,522
)
Balance as of June 30, 2023
138,737,104
$
13
$
367,970
$
(178,408
)
$
189,575
INNOVID, CORP. AND ITS
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENT OF CASH FLOWS
(Unaudited and in thousands)
Six months ended June
30,
2024
2023
Cash flows from operating activities:
Net loss
$
(16,776
)
$
(27,522
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
5,455
4,094
Goodwill impairment
—
14,503
Stock-based compensation
9,025
9,865
Change in fair value of warrants
357
(3,279
)
Loss on foreign exchange, net
251
—
Changes in operating assets and
liabilities:
Trade receivables, net
658
415
Prepaid expenses and other assets
535
(1,390
)
Operating lease right of use assets
404
902
Trade payables
3,739
1,060
Employee and payroll accruals
(4,748
)
804
Operating lease liabilities
(444
)
(1,130
)
Accrued expenses and other liabilities
7,430
2,626
Net cash provided by operating
activities
5,886
948
Cash flows from investing activities:
Internal use software capitalization
(4,280
)
(5,591
)
Purchases of property and equipment
(587
)
(189
)
Withdrawal of short-term bank deposits
165
10,000
Increase in deposits
—
27
Net cash (used in) provided by investing
activities
(4,702
)
4,247
Cash flows from financing activities:
Proceeds from loan
—
10,000
Payment on loan
(20,000
)
(10,000
)
Proceeds from exercise of options
80
614
Net cash (used in) provided by financing
activities
(19,920
)
614
Effect of exchange rates on cash, cash
equivalents and restricted cash
(251
)
—
(Decrease) increase in cash, cash
equivalents, and restricted cash
(18,987
)
5,809
Cash, cash equivalents, and restricted
cash at the beginning of the period
49,997
37,971
Cash, cash equivalents, and restricted
cash at the end of the period
$
31,010
$
43,780
INNOVID, CORP. AND ITS
SUBSIDIARIES
OTHER INFORMATION
(Unaudited and in thousands)
RECONCILIATION OF GAAP NET LOSS TO
NON-GAAP ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN PERCENT
Three months ended June
30,
Six months ended June
30,
2024
2023
2024
2023
Net loss
$
(10,542
)
$
(18,959
)
$
(16,776
)
$
(27,522
)
Net loss margin percent
(28
)%
(55
)%
(22
)%
(42
)%
Depreciation and amortization
2,831
2,064
5,455
4,094
Goodwill impairment
—
14,503
—
14,503
Stock-based compensation
5,187
5,334
9,025
9,958
Finance income, net (a)
(78
)
(248
)
(120
)
(2,723
)
Retention bonus expenses (b)
40
148
132
445
Legal claims
206
342
1,134
656
Severance cost
415
—
415
845
Other
(14
)
23
—
272
Taxes on income
7,827
1,335
11,003
4,159
Adjusted EBITDA
$
5,872
$
4,542
$
10,268
$
4,687
Adjusted EBITDA margin percent
15.5
%
13.1
%
13.7
%
7.2
%
(a)
Finance income, net consists mostly of
remeasurement related to revaluation of our warrants, remeasurement
of our foreign subsidiary’s monetary assets, liabilities and
operating results, and our interest expense.
(b)
Retention bonus expenses consists of
retention bonuses for certain TVS employees.
RECONCILIATION OF NET CASH PROVIDED BY
OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW
Three months ended June
30,
Six months ended June
30,
2024
2023
2024
2023
Net cash provided by operating
activities
$
1,234
$
580
$
5,886
$
948
Loss on foreign exchange, net
(161
)
—
(251
)
—
Capital expenditures
(2,326
)
(2,600
)
(4,867
)
(5,780
)
Free Cash Flow
$
(1,253
)
$
(2,020
)
$
768
$
(4,832
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240806855808/en/
Investor Lauren Hartman IR@innovid.com
Media Megan Garnett Coyle megan@innovid.com
Innovid (NYSE:CTV)
Historical Stock Chart
From Jul 2024 to Aug 2024
Innovid (NYSE:CTV)
Historical Stock Chart
From Aug 2023 to Aug 2024
