- Q3 2024 revenue increased 6% year-over-year to $38.3
million
- Q3 2024 net income improved year-over-year to $4.7 million and
Adjusted EBITDA* increased 29% year-over-year to $8.4 million
- Adjusted EBITDA margin* increased to 22%, the ninth consecutive
quarter of expansion
- Company announces board approval to implement stock repurchase
program
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 third
quarter ended September 30, 2024.
“In the third quarter, we were encouraged by the solid growth in
CTV as streaming platforms are gaining scale,” said Zvika Netter,
Co-Founder and CEO. “We delivered the ninth consecutive quarter of
improved Adjusted EBITDA margin* demonstrating our ability to
expand profitability and our leverageable operating model. I am
proud of our team for their hard work developing key partnerships
with the world’s leading players such as Netflix, while also
launching innovative new products and leading the charge in shaping
the future of CTV advertising.”
Third Quarter 2024 Financial Summary
- Revenue increased to $38.3 million, reflecting year-over-year
growth of 6%, compared to $36.2 million for the same period in
2023.
- Net income was $4.7 million, compared to a net loss of $2.7
million for the same period in 2023, a $7.4 million improvement
year-over-year.
- Adjusted EBITDA* grew to $8.4 million, an increase of 29%
year-over-year, compared to $6.5 million for the same period in
2023, representing a 22% Adjusted EBITDA margin* up from 18% in the
prior year period.
- Cash provided by operating activities was $6.0 million,
compared to $6.5 million for the same period in 2023, a $0.5
million decrease year-over-year.
- Free Cash Flow* was $3.7 million, compared to Free Cash Flow*
of $4.1 million for the same period in 2023, a $0.3 million
decrease year-over-year.
Recent Business Highlights
- CTV impression volume from ad serving and personalization
increased 13% year-over-year.
- Innovid was selected as one of two partners for impression
verification within Netflix’s ad-supported platform, expanding its
extensive coverage of the streaming universe.
- LG Ad Solutions is the latest industry leader to join Innovid’s
Harmony initiative.
- Innovid won the 2024 AdExchanger Award for Most Innovative TV
Advertising Technology for its Harmony Initiative.
Stock Repurchase Program
Innovid’s board of directors authorized the Company to implement
a stock repurchase program of up to $20 million. Subject to the
final terms of the program, it is expected that repurchases will be
dependent upon market conditions, regulatory requirements and other
considerations. “The executive team and board of directors are
confident in Innovid’s strategy and growth potential,” said Mr.
Netter. “We believe this stock repurchase program reinforces our
commitment to our shareholders, and that the current stock price
does not represent the value of our business. With our strong
strategic and financial position, we trust we can create enhanced
shareholder value in the coming quarters and years.”
Financial Outlook
Innovid is providing the following financial guidance for Q4 and
updating its full year 2024 guidance:
- Q4 2024 revenue in a range between $37.5 million and $39.5
million
- Q4 2024 Adjusted EBITDA* in a range between $8.0 million and
$10.0 million
- FY 2024 revenue in a range between $150.5 million and $152.5
million
- FY 2024 Adjusted EBITDA* in a range between $26.7 million and
$28.7 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
third 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, including
Adjusted EBITDA, Adjusted EBITDA Margin, and Free Cash Flow. 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
fourth 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 and expected growth. 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)
September 30,
2024
December 31,
2023
Assets
Current assets:
Cash and cash equivalents
$
34,564
$
49,585
Trade receivables, net
44,365
46,420
Prepaid expenses and other current
assets
4,475
5,615
Total current assets
83,404
101,620
Long-term restricted deposits
423
412
Property and equipment, net
21,006
18,419
Goodwill
102,473
102,473
Intangible assets, net
21,305
24,318
Operating lease right of use asset
10,894
1,435
Other non-current assets
903
1,278
Total assets
$
240,408
$
249,955
Liabilities and Stockholders’
Equity
Current liabilities:
Trade payables
$
3,793
$
2,810
Employee and payroll accruals
9,140
14,060
Lease liabilities—current portion
1,388
1,200
Accrued expenses and other current
liabilities
9,397
7,426
Total current liabilities
23,718
25,496
Long-term debt
—
20,000
Lease liabilities—non-current portion
9,835
634
Other non-current liabilities
6,927
7,528
Warrants liability
411
307
Common stock
15
13
Additional paid-in capital
394,410
378,774
Accumulated deficit
(194,908
)
(182,797
)
Total stockholders’ equity
199,517
195,990
Total liabilities and stockholders’
equity
$
240,408
$
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
September 30,
Nine months ended
September 30,
2024
2023
2024
2023
Revenue
$
38,251
$
36,234
$
112,940
$
101,265
Cost of revenue (1)
8,917
8,428
26,746
25,284
Research and development (1)
7,021
6,486
20,646
20,479
Sales and marketing (1)
11,682
11,175
35,523
34,272
General and administrative (1)
9,238
9,753
29,070
28,327
Depreciation, amortization and long-lived
assets impairment
2,836
4,714
8,291
8,808
Goodwill impairment
—
—
—
14,503
Operating loss
(1,443
)
(4,322
)
(7,336
)
(30,408
)
Finance income, net
(285
)
(290
)
(405
)
(3,013
)
Loss before taxes
(1,158
)
(4,032
)
(6,931
)
(27,395
)
Taxes on income
(5,823
)
(1,301
)
5,180
2,858
Net income (loss)
$
4,665
$
(2,731
)
$
(12,111
)
$
(30,253
)
Net income (loss) per share common
share—basic and diluted
$
0.03
$
(0.02
)
$
(0.08
)
$
(0.22
)
Weighted-average number of shares used in
computing net income (loss) per share:
Basic
146,822,073
139,607,389
144,664,912
137,826,099
Diluted
152,504,240
139,607,389
144,664,912
137,826,099
(1) Exclusive of depreciation,
amortization, long-lived assets and goodwill impairment 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 September
30, 2024
Common stock
Additional
paid-in capital
Accumulated
deficit
Total
stockholders’
equity
Shares
Amount
Balance as of June 30, 2024
145,803,657
$
14
$
388,467
$
(199,573
)
$
188,908
Stock-based compensation
5,710
5,710
Issuance of common stock:
—exercised options and RSUs vested
1,969,994
1
233
234
Net income
4,665
4,665
Balance as of September 30, 2024
147,773,651
$
15
$
394,410
$
(194,908
)
$
199,517
Three months ended September
30, 2023
Common stock
Additional
paid-in capital
Accumulated
deficit
Total
stockholders’
equity
Shares
Amount
Balance as of June 30, 2023
138,737,104
$
13
$
367,970
$
(178,408
)
$
189,575
Stock-based compensation
5,919
5,919
Issuance of common stock:
—exercised options and RSUs vested
1,399,801
—
158
158
Net loss
(2,731
)
(2,731
)
Balance as of September 30, 2023
140,136,905
$
13
$
374,047
$
(181,139
)
$
192,921
Nine months ended September
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
15,324
15,324
Issuance of common stock:
—exercised options and RSUs vested
6,579,472
2
312
314
Net loss
(12,111
)
(12,111
)
Balance as of September 30, 2024
147,773,651
15
$
394,410
$
(194,908
)
$
199,517
Nine months ended September
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
16,474
16,474
Issuance of common stock:
—exercised options and RSUs vested
6,254,491
—
772
772
Net loss
(30,253
)
(30,253
)
Balance as of September 30, 2023
140,136,905
$
13
$
374,047
$
(181,139
)
$
192,921
INNOVID, CORP. AND ITS
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENT OF CASH FLOWS
(Unaudited and in thousands)
Nine months ended
September 30,
2024
2023
Cash flows from operating activities:
Net loss
$
(12,111
)
$
(30,253
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation, amortization and long-lived
assets impairment
8,291
8,808
Loss on disposal of property and
equipment
15
—
Goodwill impairment
—
14,503
Stock-based compensation
14,526
15,470
Change in fair value of warrants
104
(3,688
)
Loss on foreign exchange, net
321
—
Changes in operating assets and
liabilities:
Trade receivables, net
2,055
94
Prepaid expenses and other assets
1,349
(1,167
)
Operating lease right of use assets
438
1,351
Trade payables
984
(36
)
Employee and payroll accruals
(4,920
)
1,770
Operating lease liabilities
(508
)
(1,683
)
Accrued expenses and other liabilities
1,371
2,268
Net cash provided by operating
activities
11,915
7,437
Cash flows from investing activities:
Internal use software capitalization
(6,098
)
(7,795
)
Purchases of property and equipment
(983
)
(395
)
Withdrawal of short-term bank deposits
165
10,000
Increase in deposits
—
77
Net cash (used in) provided by investing
activities
(6,916
)
1,887
Cash flows from financing activities:
Proceeds from loan
—
20,000
Payment on loan
(20,000
)
(20,000
)
Proceeds from exercise of options
312
772
Net cash (used in) provided by financing
activities
(19,688
)
772
Effect of exchange rates on cash, cash
equivalents and restricted cash
(321
)
—
(Decrease) increase in cash, cash
equivalents, and restricted cash
(15,010
)
10,096
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
$
34,987
$
48,067
INNOVID, CORP. AND ITS
SUBSIDIARIES
OTHER INFORMATION
(Unaudited and in thousands)
RECONCILIATION OF GAAP NET INCOME
(LOSS) TO NON-GAAP ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
PERCENT
Three months ended
September 30,
Nine months ended
September 30,
2024
2023
2024
2023
Net income (loss)
$
4,665
$
(2,731
)
$
(12,111
)
$
(30,253
)
Net income (loss) margin percent
12
%
(8
)%
(11
)%
(30
)%
Depreciation, amortization and long-lived
assets impairment
2,836
4,714
8,291
8,808
Goodwill impairment
—
—
—
14,503
Stock-based compensation
5,501
5,605
14,526
15,563
Finance income, net (a)
(285
)
(290
)
(405
)
(3,013
)
Retention bonus expenses (b)
(40
)
119
92
564
Legal claims and other legal matters
688
420
1,822
1,076
Severance cost
814
—
1,229
845
Other
—
(80
)
—
192
Taxes on income
(5,823
)
(1,301
)
5,180
2,858
Adjusted EBITDA
$
8,356
$
6,456
$
18,624
$
11,143
Adjusted EBITDA margin percent
21.8
%
17.8
%
16.5
%
11.0
%
(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
September 30,
Nine months ended
September 30,
2024
2023
2024
2023
Net cash provided by operating
activities
$
6,029
$
6,489
$
11,915
$
7,437
Loss on foreign exchange, net
(70
)
—
(321
)
—
Capital expenditures
(2,214
)
(2,410
)
(7,081
)
(8,190
)
Free Cash Flow
$
3,745
$
4,079
$
4,513
$
(753
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241112603209/en/
Investor Contact Lauren Hartman IR@innovid.com
Media Contacts Megan Garnett Coyle megan@innovid.com
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