- Delivered 45% year-over-year revenue growth to $33.1 million on an as-reported basis
- CTV accounted for 50% of the volume of all video impressions served
- TV measurement accounted for 22% of all revenue
- Launched InnovidXP – the first cross-platform TV measurement solution powered by ad serving data and creative personalization
Innovid Corp. (NYSE:CTV) (the “Company”), an independent advertising platform for delivery, personalization and measurement of converged TV across linear, connected TV (CTV) and digital, today announced financial results for the second quarter ended June 30, 2022.
“Innovid delivered a strong second quarter with 45% year-over-year revenue growth, as CTV revenue continued to grow. We achieved a critical milestone in our mission to fulfill the future of TV measurement with the launch of our converged TV measurement solution, InnovidXP, following the strategic acquisition of TVSquared” said Zvika Netter, Co-Founder and CEO. “Our joint teams and solutions have been realigned to introduce a unified first-to-market global cross-platform measurement solution, directly integrated with ad serving data. Measurement revenue grew significantly this past quarter and we expect InnovidXP to be a driving force for our growth story moving forward.”
(All comparisons are to the second quarter of 2021)
• Revenue grew to $33.1 million for the combined business, reflecting an increase of 45% on an as-reported basis.
° TVSquared business grew 31% year-over-year and contributed $6.8 million in revenue, or 21% of revenue.
° CTV accounted for 47% of revenue, excluding TVSquared, up from 45% of revenue, demonstrating 20% year-over-year growth.
• Net profit was $4.3 million or $0.03 per share.
• Adjusted EBITDA* was negative $(1.7) million, representing (5)% adjusted EBITDA margin*.
• CTV Volume Growth: CTV accounted for 50% of the volume of all video impressions served, up from 46% of volume in the second quarter of 2021, demonstrating 23% year-over-year growth.
• Cross-Platform Measurement Expansion: Launched InnovidXP, the first unified cross-platform solution directly integrated with ad serving data and creative personalization, to solve cross-platform TV measurement globally.
° New Business: Measurement accounted for 22% of revenue in the second quarter supported by new clients including several leading multinational and national restaurant chains, an international design platform, and a worldwide employment platform.
° Sell-Side Momentum: Expanded multi-year measurement partnership with Tubi, Fox’s streaming service, demonstrating the power of InnovidXP for always-on incremental reach measurement across both Fox and Tubi.
• New Client Wins: Closed multiple new clients across ad serving and personalization solutions including a multinational e-commerce company, a multinational travel company, and one of the largest U.S. health insurance providers.
• International Market Adoption: Increased international revenue by 51% year-over-year on an as-reported basis, through expanded measurement coverage outside the U.S.
• Expanded Measurement Partnerships: Grew measurement footprint through strategic partnerships spanning programmatic, political, and international TV advertising.
° Programmatic CTV: Named a certified partner in Magnite’s expanded measurement and attribution program, bringing currency optionality to programmatic CTV.
° Political TV Advertising: Partnered with leading ad intelligence data provider, AdImpact, to supply a unified view and real-time insights on reach, frequency, incremental reach, and outcomes, across linear and CTV.
° International Audience Measurement: Integrated within FreeWheel by Comcast’s newly launched international AudienceXpress offering, allowing advertisers in Europe to buy premium TV advertising on an audience basis across all platforms.
Innovid is providing the following financial guidance for the third quarter of 2022:
• Revenue is expected to be in the range of $33 million to $35 million, reflecting 41% to 49% year-over-year growth on an as-reported basis, and 12% to 19% year-over-year growth on a pro forma basis when including TVSquared revenue.
• Adjusted EBITDA* is expected to be in the range of negative $(2) million to break even.
Innovid is providing the following updated financial guidance for the full year of 2022:
• Revenue is expected to be in the range of $127 million to $132 million including TVSquared, a year-over-year increase of approximately 41% to 46% growth on an as-reported basis, and 17% to 22% year-over-year growth on a pro forma basis when including TVSquared revenue.
• Total annual adjusted EBITDA* when accounting for the TVSquared acquisition, is expected to be negative $(6.0) million or higher.
Innovid will host a conference call and live webcast to discuss its second quarter 2022 financial results and business highlights today at 8:00 a.m. Eastern Time. Speakers will include Zvika Netter, Co-founder and Chief Executive Officer, Tanya Andreev-Kaspin, Chief Financial Officer, and Tal Chalozin, Co-founder and Chief Technology Officer. To access the conference call, dial 877-407-3211 for the U.S. or Canada, or +1-201-389-0862 for international callers. The webcast will be available live on the Investors section of the Company’s website at https://investors.innovid.com/. Additionally, an archived webcast of the conference call will be made available on the Innovid website following the call.
*This is a non-GAAP measure. Refer to “Non-GAAP Measures” section below for additional information.
Innovid prepares unaudited condensed consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”). Innovid also discloses and discusses non-GAAP financial measures such as Adjusted EBITDA and Adjusted EBITDA margin. Innovid believes that these measures are relevant and provide useful information to investors by providing a baseline for evaluation and comparing its operating performance against that of other companies in Innovid’s industry. Adjusted EBITDA is defined as net income (loss) attributable to Innovid, excluding (1) depreciation and amortization, (2) stock-based compensation, (3) finance expense, net, (4) transaction related expenses, (5) acquisition related expenses, (6) taxes on income and (7) other one-time items. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue.
The non-GAAP financial measures that Innovid uses may not be comparable to similarly titled measures reported by other companies. Also, in the future, Innovid may disclose different non-GAAP financial measures in order to help its investors meaningfully evaluate and compare its results of operations to its previously reported results of operations or to those of other companies in Innovid’s industry. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP.
Innovid uses Adjusted EBITDA and Adjusted EBITDA margin as measures of operational efficiency to understand and evaluate its core business operations. Innovid believes these non-GAAP financial measures are useful to investors for period to period comparisons of its core business and for understanding and evaluating trends in its operating results on a consistent basis by excluding items that are not viewed as indicative of its core operating performance.
Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under GAAP.
Innovid has provided a reconciliation of Adjusted EBITDA to net (loss) income and Adjusted EBITDA Margin to net (loss) income margin, the most directly comparable GAAP measures, for the historical period in the appendix hereto but is not able to provide a reconciliation of the projected non-GAAP measures for the second quarter of 2022 or the full-year 2022, without unreasonable effort, due to the unknown effect, timing and potential significance of: taxes on income in multiple jurisdictions, finance expenses including valuations, and purchase price allocation yet to be finalized. These items have in the past, and may in the future, significantly affect GAAP results in a particular period.
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 raise financing in the future, success in retaining or recruiting officers, key employees or directors, changes in applicable laws or regulations, Innovid’s ability to maintain and expand relationships with advertisers, decreases and/or changes in CTV audience viewership behavior, Innovid’s ability to make the right investment decisions and to innovate and develop new solutions, the accuracy of Innovid’s estimates of
market opportunity, forecasts of market growth and projections of future financial performance, the extent of investment required in Innovid’s sales and marketing efforts, Innovid’s ability to effectively manage its growth, the impact of the Covid-19 pandemic, the risk of continued inflation and other macroeconomic events, acquisition related risks, and other important factors discussed under the caption “Risk Factors” in Innovid’s Annual Report on Form 10-K filed with the SEC on March 18, 2022, 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. 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.
Tune in to Martech Cube Podcast for visionary Martech Trends, Martech News, and quick updates by business experts and leaders!