Nexxen International Ltd.

Welcome to Nexen's fourth quarter earnings call. At this time, participants are in a listen-only mode. With a question and answer session to follow at the end of 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 Billy 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 fourth quarter earnings call. During today's call, we will discuss our financial and operating results for the three and 12 months ended December 31st, 2024, as well as our forward-looking guidance. With us on today's call are Ofer Juker, Nexen's Chief Executive Officer, and Sagi Neri, the company's Chief Financial Officer. This morning, we issued a press release, which you can access on our IR website at investors.nexen.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 recent 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 420F. Nexen 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 Druker, CEO of Nexen. Ofer, please go ahead.

Thanks, Billy. You four kept up an incredible year for Nexen as we generated the record quarterly and annual contribution extract for dramatic revenue and CTV revenue results alongside significantly expanded profitability. Our success in 2024 was a byproduct of getting back to basics after completing the integration of Amobi in 2023. We focused on driving stronger sales execution, installing key talent, simplifying our messaging, boosting our brand recognition, and organic product and data innovation. Our achievement on these fronts fueled strong results, and alongside our planned AI innovation, positioned us for continued market share gains in 2025 and beyond. Following this improvement, We have consistently received validation from the market that our years-long strategy to operate an end-to-end platform, connect our data platform to our tech stack, and enrich its capabilities, and focus on CCTV and video placed us well ahead of our peers. Since 2019, we have operated an end-to-end platform which we believe give us a clear competitive edge, as others in the industry are only now working to try unlocking the benefits of this approach. While one-sided peers are trying to replicate our model, we have an advantage of years of experience serving advertisers, agencies, and digital publishers across the ecosystem, supported by our fully functional and robust DSP and SSP technologies. Currently, we believe our DSP and SSP rank among the top in terms of scale and reach within the publicly traded open internet edtech space, especially in CTV. Our end-to-end tech platform and operating model benefits customers by enabling enhanced results through access to robust targeting data alongside simplicity and cost efficiency, while offering a larger time and growth opportunity for Nexen compared to one-sided platform. Customers can flexibly choose to work with us through one or more solutions, enabling us to land and expand with partners. And throughout 2024, we were successful in growing relationship with existing customers, including several independent agencies and CTV OEMs like LG. We generated significantly increased spend consolidation and multi-solution adoption driven largely by our efforts to get all of our enterprise DSP customers to adapt Nexen SSP as a preferred SSP, which fueled greater end-to-end revenue and, in turn, strong growth and expanded profitability in 2024. We ended the year with much stronger platform capabilities following the successful integration of Amobi in 2023. Amobi brought us powerful enterprise DSP capabilities, enhanced our data capabilities, and bolstered our CTV and omnichannel offerings, the combination of which positioned us for deeper penetration with large customers, including independent agencies. As I will expand on later, we are enhancing our platform, data and technology capabilities, several steps further throughout 2025 by strategically deepening our AI capabilities and deploying generative AI innovation across our core products, building on our success and momentum from 2024. We are confident that our planned AI initiatives in 2025 will make our platform's user interface more intuitive and easier to navigate, better linking customer results to the strength of our tech and data, reducing reliance on user sophistication, and expanding our market opportunity. By unleashing and integrating generative AI across our core offerings, we will refine our audience targeting precision and deepen the interconnectivity of our platform solution, which we believe will generate even stronger returns for our customers and drive greater spend consolidation. We firmly believe these combined efforts will not only boost our standing within the industry, but also accelerate our long-term growth, differentiation, and strategic value to industry leaders. The timing couldn't be more ideal to deepen our AI capabilities, having laid a strong tech and data foundation. By integrating Amobi in 2023, and launching Nexen Data Platform in 2024, the combination of which has propelled Nexen into a new era of edtech leadership and differentiation. Nexen Data Platform is integrated with our DSP and SSP and has become central to every key discussion with customers, partners, and the industry, while establishing us as the leading data-first platform. The platform unifies all our data assets and capabilities, creating a wide range of interconnected and advanced data solutions working in synchrony to drive better results for our partners. Nexon Data Platform features our proprietary audience discovery technology, unified ID graphs, curated media capabilities, and robust TV-focused data tools. highlighted by our exclusive access to VISA global ACR data and our TV intelligence solution, which incorporates seven far-reaching TV data sources. We believe this reflects one of the most comprehensive data offering in EdTech, and it has tangibly fueled better returns on the advertising spend for our customers, greater confidence in our holistic solution, and ultimately increased spend consolidation. Nexen Data Platform is unique, enabling our customers to onboard first-party data, enrich it with our powerful data sources and tools to extend audience reach, activate audiences on our DSP and measure, eliminating the need for other partners. With an open and scalable approach to data, our platform is also built to thrive regardless of changes in the addressability landscape. We have generated early adoption from notable partners, while our ACL data exclusivity is driving more and more data licensing partnerships with major players in the industry, like the Traders and StackAdapt. This highlights that Nexen data platform is not only powering better results for Nexen and its customers, but also increasing our value and recognition across the ecosystem. In 2025, we will continue leading with Nexen data platform in our sales effort and expect to build on the success we achieved in 2024 following the launch. Outside of our data platform release, our strong Q4 and full year 2024 results were driven by CPD, one of our core pillars where we expect to continue increasing our competitive advantage and growing our market share. Our years of focused investment in building an ecosystem designed to deliver better results for both advertisers and CTV publishers have positioned us for continued success. Our platform-unified CTV-focused DSP, SSP, and TV data solution enables seamless experience and better returns for our customers, creating a clear value proposition. CTV advertisers are seeking more direct relationship and integration with publishers to generate better returns on expense, while CTV publishers are seeking greater and unique advertising demand, as well as solutions designed to maximize their revenue and efficiency. With our capabilities strongly positioned to assist and enhance results on both fronts, our end-to-end CTV-focused platform is a perfect fit for both sides of the ecosystem, providing a larger CTV market and growth opportunity for Nexen compared to one-sided peers. Additionally, our simplified messaging and stronger brand recognition has driven customers and new partners to recognize us more and more as a true CTV ad tech leader. With billions of dollars in linear TV ad budget expected to migrate to digital over time, Particularly as live sports shifts towards CTV, we believe we are well positioned for long-term CTV revenue growth through our robust access to premium CTV and live sports inventory, alongside our CTV-focused tech and data capabilities. We also anticipate more major CTV and streaming platforms which seek partnership with Nexen going forward, as the industry is recognizing the value that our collective solution can bring. Amid strong execution on our strategy, in Q4, we added 112 new actively spending first-time advertisers' customers, including 18 new enterprise self-service DSP customers and three new independent agencies leveraging our self-service solution. We also added 73 new supply partners including some of the industry's most well-known free and supported streaming services. In addition to our data and tech advancement, our success at tracking and onboarding new talent across our sales, marketing, and product teams at both senior and middle management level has positioned us strongly for future growth and accelerated innovation. We have continued to see an influx of talent eager to join Exxon, including from peers and renowned industry leaders. In Q1, we also evolved our trading structure by streamlining to a single U.S. ordinary share listing on NASDAQ, which we believe enhance our long-term capital appreciation potential. When we executed our secondary listing on NASDAQ in 2021, We were certain it would be in our best interest to eventually delist from AIM and move solely to the U.S. ordinary share listing. But before we could make these changes, we needed to accelerate our growth and await a stronger advertising environment for the move to be well received by investors. With these factors now aligned, We believe over time these changes will increase our U.S. investor footprint and recognition, drive greater liquidity, improve our screening on financial data platforms, and increase our eligibility for inclusion in select indices. Finally, as mentioned earlier, we are executing on a clear strategic vision to strengthen our platform by deepening our AI capabilities, inclusive of generative AI and machine learning. In 2025, we are launching our first material generative AI-driven innovations with new solutions rolling out in H1 and throughout the year. AI has been called to our platform for years. By further scanning these capabilities through generative AI implementations across our vertically integrated platforms, we believe we will be able to deliver stronger performance, better operational efficiency, and cost saving for our customers across the key jobs of planning, activation, optimization, and monetization. Generative AI isn't a buzzword for us. Our end-to-end technology stack connected to a wealth of data enable us to unlock value for our customers through generative AI in ways one-sided solutions can't. This year, we are implementing AI-driven enhancements across our DSP creative studio and data platform audience creation and analytics capabilities focused on two key objectives. The first is to simplify platform usability by deploying AI agents that we believe will lower barriers to entry, foster customer spending growth and expand our market opportunity. These agents will provide real-time campaign optimization suggestions and integrate directly with our activation tools, driving better returns on ad spend and widening our platform's utility to a larger base. The second objective is to optimize the use of our robust data sets, focusing specifically on enhancing our data and audience capabilities, which we believe will significantly improve targeting precision and reach and also lead to higher customer returns and increased spending on our platform. While there is low-hanging fruit for us to achieve short-term AI innovation needs, in other instances, our more complex initiatives will take time before we reap the full benefits of our investments. That said, we are confident this enhancement will accelerate our long-term growth opportunity, make Nexen a fundamentally stronger company, and solidify us as a strategic partner and platform of choice for industry leaders in the years to come. 2022 and 2023 were years of acquisition and integration. 2024 was focused on transformation, simplification, and innovation. And in 2025, we believe we are poised to achieve market share gain acceleration. After years of enhancing our platform, business, and trading structure, and simplifying our messaging, we are better positioned than ever to execute. Our strategy is resonating, and customers across the ecosystem are continuing to flock to Nexen for our flexible platform data, CTV, video, and omni-channel capabilities, and we believe our AI investments will further advance our competitive edge, differentiation, and leadership position. I'm excited to continue supporting and driving innovation for our partners, and with that, I'm happy to turn the call to Sagi.