Nexxen International Ltd.

Thank you for standing by. My name is Janine and I will be your conference operator for today. Welcome to Nexen's third quarter earnings call. At this time, participants are in listen-only mode with a question and answer session to follow at the end of the presentation. This call is being recorded and a replay of today's call will be made available on Nexen's Investor Relations website. I will now hand the call over to Lily Eckert, Vice President of Investor Relations. for introductions and the reading of Safe Harbor Statement. Billy, please go ahead.

Thank you, Operator. Good morning, everyone, and welcome to Nexen's third quarter earnings call. During today's call, we will discuss our financial and operating results for the three and nine months ended September 30th, 2024, as well as our forward-looking guidance. With us on today's call are Ofer Druker, Nexen's Chief Executive Officer, and Sugi Neri, the company's Chief Financial Officer. This morning, we issued a press release, which you can access on our IR website at investors.nexon.com. During today's conference call, we will make forward-looking statements. All statements, other than statements of historical fact, could be deemed as forward-looking. We advise caution and reliance on forward-looking statements. These statements include, without limitation, statements and projections regarding our anticipated future financial and operating performance, market opportunity, growth prospects, strategy, financial outlook, partnership and anticipated benefits related to those partnerships, anticipated benefits related to the potential changes in the company's trading security structure, anticipated benefits related to the company's intended growth and platform investments, forward-looking views on macroeconomic and industry conditions, as well as any other statements concerning the expected development, performance and market share, or competitive performance relating to our products or services. All forward-looking statements are based on information available to us as of the date of this call. These statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those implied by these forward-looking statements, including unexpected changes in our business or unexpected changes in macroeconomic or industry conditions. More detailed information about these risk factors and additional risk factors are set forth in our filings with the U.S. Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled Risk Factors in our most recent annual report on Form 20F. NECI does not intend to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in IFRS and non-IFRS terms. We refer you to the company's press release for additional details, including definitions of non-IFRS items and reconciliations of IFRS to non-IFRS results. At this time, it is my pleasure to introduce Ofer Druka, CEO of Nexen.

Ofer, please go ahead. Thanks, Billy. Since late last year, we significantly improved the company's performance. Our improvement is a direct byproduct of our hard work integrating the mobile technology, data assets, and talent base, which we accomplished amidst challenging macroeconomic conditions, as well as our rebrand to Nexen, the combination of which has boosted our standing within the industry. Since early 2024, we achieved significantly better results than in 2023. as our business, test teams, and markets is on better footing, as evidenced by our ability to generate record Q3 results and accelerate our growth prospects by winning partnerships with some of the world's top companies. After enhancing our tech products, data, and advanced CTV capabilities, Nexen is being recognized as a strategic partner that can drive superior results regardless of how customers across the industry choose to work with us. It is clear NextGen is now viewed as the data-first edtech platform that enhance outcomes and solves key problems across the supply chain with data-driven video, advanced CTV, and audience targeting capabilities unlike any other in the industry. Our strategy to seamlessly connect our robust data solution to our flexible platform to fuel better customer outcome is a winning value proposition that is leading more and more partners to select Nexen as the platform of choice. A key advantage for Nexen is that we are one of the pioneers and leaders in the concept of owning and operating an end-to-end platform, a trend that others in edtech are trying to catch up to. Operating a full stack platform brings efficiency and simplicity to our partners, and customers that adapt multiple solutions across our end-to-end ecosystem typically save costs while generating improved results and ROI. Our end-to-end platform includes a flexible, full-service, state-of-the-art DSP and SSP centered around a data platform, which is unique and appreciated in the marketplace. and our data strategy strongly complement and significantly advance the benefits created by our full-stack tech infrastructure. Through our mobile, we gain even greater combined technology and data benefit and reach, which are now providing massive advantages for Nexen and its customers in the market. Following the integration, our robust data is now fully intertwined into our advanced technology solution across our platform, enabling our partners to better fulfill their needs, better service their clients, and win new accounts. As I will touch on later, we plan to incorporate GenAI more and more across our platform to further enhance our combined tech and data capabilities and competitive advantage to drive even better results and usability for our customers. Customers and prospects continue to increasingly embrace our data-powered end-to-end approach. A great example is our partnership with Tagwell, which continues to adopt a growing number of solutions within our product suite, and they are driving better results when leveraged together. Tagwell recently ran an analysis of our performance against another major DSP for one of its clients. Our combined data and technology offerings significantly outperformed, generating far superior returns on ad spend, a tremendous reduction in cost per customer acquisition, and a notable increase in CPM efficiencies. Data is a key element for the success of any advertising campaign. This is the main reason customers lately have been seeking to partner with Nexen, as the company has robust and unique data capabilities and assets that yield better results. Our tools, like Nexon Discovery, enable advertisers to find and target audiences, unlock insights, visual strengths, and extend likely to engage or buy audience reach to achieve better returns. Advertisers are also able to onboard their first-party data onto our platform and enrich it with our data sets or any other data set of their choosing, improving their results when activating campaigns on Next-Gen VSP by enhancing the power of our recently launched data platform. Our data platform combines our data assets, capabilities, and applications in one place and also features a unified ID graph solution. Our ID graph combines and deduplicates several identifiers into a merged graph Enabling increased scale, frequency capping, and better targeting and distribution at the personal and household level while furthering our already strong positioning to address change in privacy and identity. We are also adding curated media capabilities to our roster of data offerings. In short, our differentiated ability to connect the data and edtech supply chain through our data onboarding, audience enrichment, activation, and measurement capabilities separate Nexen from the PEC. Our realistic set of data capabilities have also led to new opportunities in growth areas like commerce media. As connected media by United Airlines recently selected Nexen as a preferred data platform partner. The partnership extends first-party data from United's customers, and minus-plus program members to advertisers leveraging Nexen for activation across premium off-site CTV, linear, and digital content. Our clients can leverage this data to generate insights onto campaigns, and Tenuity, one of the leading performance agencies in the U.S., has been an early adapter, enabling its clients to reach new audiences. We strongly believe in the importance of CTV advertising, as it reflects a critical conduit to better understand and more effectively reach likely to engage or buy audiences. Our full-stack platform benefits TV advertisers and streaming platforms as we bring unique demand and supply to each side of the transaction while enabling cost efficiencies. We also hold relationships with all the world's major CTV OEMs. provide access to premium supply for many of the largest streaming players and possess exclusive TV data assets. Within our data offering, we stand out for our unique and advanced TV data solution, such as our discovery tool and exclusive global ACR data capabilities enabled by our partnership with VIDA, which amplify the effectiveness and appeal of our TV-focused tech products. We have built these capabilities over several years, and as a result, today Nexen is a leader in CTV advertising data and technology. We believe we are well positioned to capitalize over the long-term image, continued growth in ad-supported TV content, and live sports growing digital. Our depreciated TV data assets and capabilities led us to win a strategic partnership with the traders in Q3. resulting in our ACL data segments becoming available on their platform for activation in the U.S., U.K., Canada, and Australia. Nexon segments enable the traders' clients to unlock unique targeting capabilities that can enhance their TV advertising efforts, while we gain another channel to expand our data licensing revenue over time. We also recently entered a data partnership with Packadapt, in which our ACI data segments became available for activation in the U.S. within their programmatic platform. The StackAdapt platform connects to our SSP, and this partnership creates increased data licensing revenue opportunities and serves as a testament to customers leveraging several solutions within our ecosystem, underscoring the strategic nature of our platform. Data licensing reflects a significant long-term opportunity for Nexen. In addition to these recent wins, we are in advanced discussions with many others seeking to license our data, including some of the industry's largest and most recognized brands. As I mentioned, live sports is shifting to CTV, creating opportunities for Nexen amid strong and growing advertiser demand. Our relationship with FOX FUBU, and DirecTV, amongst others, are driving sports-related tailwinds. For example, Fox has a plethora of live college football inventory, and Nexen has been able to complement their sales efforts, enabling them to maximize yield and monetization. Additionally, other partners are granting Nexen access to live NFL and other major sports inventories. driving better monetization for these customers while creating robust and unique opportunities for our advertiser clients. Our data-driven political solution, launched in Q3, also enabled us to capitalize on the U.S. election cycle, particularly in Q4, and generate what we believe will reflect record annual political contribution XTAC connections based on results we have seen to this point in the year. These tools empowered our political advertising customers to gain deeper insights and maximize audience reach, and our data and audience capabilities drove better targeting and engagement with multicultural voters. This emerged as a key feature that we believe will serve us in the future as many companies increasingly focus on diversity and seek solutions to help them prudently address the topic. In Q3, we added an all-time high, 138 new actively spending first-time advertiser customers. This included 31 new enterprise self-service customers and two new independent agencies leveraging next-gen self-serve offering. We also added 61 new supply partners in Q3, highlighted by premium streaming customers and new audio customers like SoundClouds. Finally, we believe, inclusive of Gen AI and machine learning, Nexen is uniquely situated to harness the full power of AI as we operate a full-stack platform connected by data, which benefits customers across all steps of their workflows. Over several years, we have developed deep machine learning, AI, and data capabilities, and by integrating Gen AI, we can amplify the power of Nexen platform across planning, activation, and monetization. We believe Nexen is an AI edge due to how many data signals we collect and utilize. AI solutions are dependent on robust data to generate accurate signals and accesses on a platform. Because we operate an end-to-end full-stack platform, we can also incorporate AI very broadly and effectively. GenAI can benefit Nexen across many use cases, including driving incremental opportunities, predictive analytics, data enrichment, customer support automation, content creation and personalization, creative ideation, and optimization. We are now actively integrating GenAI into our core products to drive better usability and customer retention. In recent months, we have built out a GenAI team and partnership roster featuring OpenAI and others to execute on this initiative. In the near future, within our data and planning solution, we anticipate releasing a GenAI-powered in-platform virtual assistant to help customers find and reach new audiences, generate audience segments, and seamlessly activate them on our DSP and SSP. Our first priority is to leverage NAI to empower our discovery tool to drive additional value and generate better results around audience creation, gaining granular insights on targets within those created audiences, extending likely to engage or buy audience reach, and activating those enhanced and extended audiences on our DSP. We expect this will make discovery more user-friendly, widen its utility beyond senior industry analysts, and further the differentiation and appeal of NextGen platform. For activation, we plan to introduce GenAI-powered co-piloting capabilities within our DSP as part of a new and enhanced user interface. These features will proactively extract key insights find enhancement opportunities, and offer campaign optimization suggestions in real time. We believe these upgrades and others planned in the future will further position our platform technology and data capabilities as the primary driver of better customer results. Looking ahead, we are poised to continue accelerating our growth. In 2025, we expect our recently launched partnership and data licensing opportunities to scale, and our generic field enhancement to attract more partners to our platform. This catalyst, alongside our data, CTV and video capabilities, and flexible platform, position us to continue capitalizing on large multi-solution revenue opportunities, grow our market share, and showcase our value as the best in class strategic partner for the industry. With that, I'm happy to turn the call to Stagi.