Nexxen International Ltd.

Welcome to Nexon'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 Nexon'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 Nexon's fourth quarter earnings call. During today's call, we will discuss our financial and operating results for the three and -months-ended December 31, 2024, as well as our forward-looking guidance. With us on today's call are Ofer Juker, Nexon's Chief Executive Officer, and Sige Neri, the company's Chief Financial Officer. This morning, we issued a press release, which you can access on our IR website at .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 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 in 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 US 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 420-S. Nexton 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 Drucker, CEO of Nexon. Ofer, please go

ahead. Thanks, Billy. You four kept up an incredible year for Nexon 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 achievements on this front 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 -to-end platform, connect our data platform to our tech stack and enrich its capabilities, and focus on CTV and video, placed us well ahead of our peers. Since 2019, we have operated an -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 ad tech space, especially in CTV. Our -to-end tech platform and operating model benefits customers by enabling enhanced results through access to robust targeting data, alongside simplicity and cost efficiencies, while offering a larger time and growth opportunity for next-end 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 next-end SSP as a preferred SSP, which fueled greater -to-end revenue and in turn, strong growth and expanded profitability in 2024. We entered 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 Omni-channel 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 our Mobi in 2023 and launching Nexen Data Platform in 2024, the combination of which has propelled Nexen into a new era of ad tech 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. Nexen 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 VDAR Global ACR data and our TV intelligence solution, which incorporates several far-reaching TV data sources. We believe this reflects one of the most comprehensive data offering in ad tech, and it has tangibly fueled better returns on the advertising span for our customers, greater confidence in our holistic solution and ultimately increased span 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 ACR 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 CTV, 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, a position asked for continued success. Our platform unified CTV focus 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 the revenue and efficiency. With our capabilities strongly positioned to assist and enhanced results on both fronts, our -to-end CTV focus 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 large sports shift stores 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 platform will 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 attracting 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 Nexen, including from peers and renowned industry leaders. In Q1, we also evolved our trading structure by streamlining to a single US ordinary share listing on NASDAQ, which we believe in ends 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 A and move slowly to the US 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 US 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're 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 to our deal. AI has been core 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 -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 opportunities. These agents will provide real-time campaign optimization suggestions and integrate directly with our activation tools, driving better returns on expense 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 leads to higher customer's return and increased spending on our platform. While there is low end-gig fruits for us to achieve short-term AI innovation needs, in other instances, our more complex initiative 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 of utility, 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 investment 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 Sagih.

Thank you, Ofer. Q4 was very strong for Nexen as we exceeded the rule of 50, generating 16% -over-year contribution extract growth, and an adjusted EBITDA margin of 42% on a contribution extract basis. In Q4, we generated contribution extract of $105.2 million, which reflected an all-time quarterly record. Programmatic revenue was $98.7 million in Q4, reflecting 15% growth from Q4 2023, and an all-time quarterly record, while contribution extract from our non-programmatic business lines increased $1.9 million -over-year in Q4. Growth in Q4 was driven by stronger sales execution following our recent platform, business and brand recognition enhancement, scaling partnerships, improved advertising conditions, particularly within the CTV market, greater multi-solution adoption by customers, and the U.S. election cycle. We observed strength in CTV, video display, data products, self-service products, and PMPs, and increases across most of our industry verticals, with the largest increases observed in our government, retail, finance, automotive, health, and technology verticals. On the opposite side, we experienced a -over-year decrease in mobile video revenue, and within our travel and education verticals. The majority of our contribution extracts ranked in Q4 was driven by CTV, as we generated CTV revenue of $37 million, reflecting 86% growth from Q4 2023, and an all-time quarterly record, as CTV revenue represented 38% of our programmatic revenue, up from 23% in Q4 2023. Our robust CTV revenue growth was attributable to a combination of factors. Those factors include stronger sales execution, better recognition within the CTV market, following our rebranding to Nexen, an improved macroeconomic and industry environment, which drove new and existing customers to our premium CTV solutions, benefits related to our partnership with LG, and tailwinds from the 2024 US election cycle. Our CTV revenue growth drove our video revenue to expand significantly as a percentage of programmatic revenue to 75% in Q4 2024, from 67% in Q4 2023, as CTV revenue growth substantially outpaced mobile video revenue decline. We've boosted our CTV and video capabilities over the last several years, and we'll continue investing in enhancing them further. As a result, we expect video revenue to remain a primary growth driver for Nexen over time. We continue to see customers increasingly choosing to partner with us, and allocating more budget towards our video solution, as our data-driven video and CTV-focused platform oftentimes drives better targeting, audience-rich extension, and returns on advertising spend than other platforms within the industry. Elsewhere, contribution X-stacks from display grew 9% -over-year in Q4, while service-service contribution X-stacks increased 21%, driven largely by strong growth within our enterprise DSP solution. Additionally, in Q4, contribution X-stacks from PMPs grew 20%, and contribution X-stacks from data products grew 102% -over-year. The 2024 US election cycle contributed approximately $6 million in political contribution X-stacks in Q4 2024, and approximately $10 million for full year 2024, reflecting new quarterly and annual political contribution X-stack records for Nexen. In Q4, we also generated adjusted EBITDA of $44.3 million, the second highest quarterly adjusted EBITDA in Nexen's history, reflecting a 38% increase from Q4 2023. Our significant adjusted EBITDA growth was driven by higher contribution X-stacks, greater customer spend consolidation, lower than expected costs in the quarter, and customers increasingly adopting multiple solutions within our ecosystem, particularly as our enterprise DSP customers access more inventory through our SST. Our adjusted EBITDA margin in Q4 increased to 42% as a percentage of contribution X-stacks from 35% in Q4 2023, and we remain confident in our ability to continue expanding our adjusted EBITDA margins over time. In 2024, our contribution X-stack retention rate increased to 102% from 73% in 2023, amid greater customer spend consolidation and expanded multi-solution adoption, underscoring the benefits of the platform, sales team, and brand enhancements we've made since the completed integration of Amobi and rebrand to Nexen. The increase was service supported by us proactively and strategically discontinuing relationships with smaller customers that were not generating significant revenue or profitability for Nexen to sharpen our focus on better servicing and growing revenue relationships with larger customers. As a result of these combined factors, for full year 2024, our contribution X-stack per active customer increased to roughly $526,000, reflecting 69% growth from 2023, and we believe we remain well positioned to continue expanding our contribution X-stack retention rate over time. In Q4, we generated $52.3 million in net cash from operating activities compared to $43.6 million in Q4, 2023. As of December 31st, we had $187.1 million in cash and cash equivalent, $90 million undrawn on our revolving credit facility, and no long-term debt. Following the full repayment of our approximately $100 million of pending principal long-term debt balance in April 2024. We also reported non-ISRS diluted earnings per ordinary share of 48 cents in Q4, 2024, compared to 20 cents in Q4, 2023, or 24 cents in Q4, 2024, compared to 10 cents in Q4, 2023 on a pre-reverse split basis. During Q4, we repurchased roughly 4.5 million ordinary shares, or 2.25 million shares on a post-reverse split basis, reflecting an investment of 15.6 million pounds or $20.1 million. From March 1st, 2022, when we began a series of share repurchase programs, through December 31st, 2024, we invested roughly $157.3 million in our repurchase program, buying back approximately 37.9 million ordinary shares, or roughly 19 million shares on a post-reverse split basis, which reflected approximately .5% of our shares outstanding. Our current and ongoing $50 million share repurchase program launched on November 19th, 2024, and is expected to continue until the earlier of May 19th, 2025, or completion, and is now being executed on NASDAQ following our voluntary delisting from AIM in mid-February. As of December 31st, 2024, we had $38.4 million remaining on our share repurchase program authorization, and $17.4 million remaining as of February 28th, 2025. Additionally, our board of directors approved the launch of a new $50 million ordinary share repurchase program following completion of the current ongoing program. The new program is expected to begin on the earlier of May 19th, 2025, or completion of the currently ongoing program, and continue until the earlier of November 19th, 2025, or completion. If shares remain at prices the board believes continue to reflect a discount to fair value following the end of the current and impending program, we will consider initiating an additional one thereafter. With that, I'll turn to our outlook. For full year 2025, we anticipate generating contribution X-TAC of approximately $380 million, with programmatic revenue expected to reflect approximately 90% of full year 2025 revenue. We also expect to generate approximately $125 million of adjusted EBITDA for full year 2025, and to extend our CTV revenue and data licensing revenue compared to 2024. For full year 2025, we expect our sales and marketing expenses, GNA and depreciation and amortization to reflect roughly the same percentage of contribution X-TAC as in full year 2024, and we expect R&D expenses to increase as a percentage of contribution X-TAC. In full year 2025, we anticipate stock-based compensation expenses will increase compared to 2024, largely due to our increased share price compared to 2023. Our Rebourse Compensation Committee, with guidance from its independent consultant, has approved an updated executive compensation philosophy aimed at aligning social service pay near the median of the committee approved comparison group comprised of similarly sized US listed companies operating broadly similar businesses. Consisting of base salaries, cash bonuses, and long-term equity incentives, the program closely ties actual executive pay to the achievement of predefined revenue, EBITDA and relative total shareholder return goals, ensuring executive compensation is aligned with the performance of the business, while remaining at or below median dilution levels of our comparison group. As offer mentioned, throughout 2025, we will be investing more in advancing our tech, data and AI capabilities, increasingly integrating generative AI across our core products to drive better platform usability and returns on advertising spend for our customers. Our two primary capital allocation focuses in 2025, we'll remain on share repurchases and investing in our platform as we currently have no plans for major M&A in the near term. Looking ahead, we remain hyper-focused on growing revenue relationships with customers by working to gain larger budget chairs and fostering increased multi-solution adoption across our -to-end ecosystem, building of our success on these fronts in 2024. We will also seek to attract new sizeable partners to our platform in 2025 and grow our CTV, omni-channel and data licensing revenue opportunities. In 2025, we will continue focusing on expanding relationship with independent agencies. We believe we are particularly well positioned to serve as a strategic partner, have a strong growth opportunity and can establish a dominant position and niche within the industry. These independent agencies are expected to continue gaining market share for major holding companies for the foreseeable future. And we believe our platform is uniquely and strategically positioned to help support and benefit from that growth. Our tech platform's ability to serve customers flexibly and holistically alongside our robust data capabilities gives us confidence in our positioning to drive increased customer spending, attract new partners and achieve sustainable long-term growth, expanded profitability and market share gains. We also believe Nextend's ability to land and expand with customers through multi-solution -to-end adoption gives us a larger market and long-term growth opportunity than one-sided platforms. After a strong and transformational 2024, our momentum is carried over to this point in 2025. We believe we have all the right pieces in place to continue building on our success from 2024 with a stronger platform that we're continuing to strategically enhance through generative AI, as well as an improved sales organization, value proposition and brand. 2025 is now all about execution. We want to thank our shareholders, employees and partners for their support and we look forward to increasing our U.S. investor presence following our recent shift to a single U.S. ordinary share listing on NASDAQ, which we expect will benefit Nextend and its shareholders over the long term. With that, operator, we'll now take questions.

Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. To withdraw your question, simply press star one again. If you are called upon to ask your question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Again, press star one to join the queue. And your first question comes from the line of Matt Swanson with RBC Capital Markets. Your line is open.

Great, thank you. And congratulations on the quarter, particularly relative to how uneven this earnings season's been for a lot of peers. Over the customer and publisher additions were strong in the quarter and really aligned to kind of what we've been talking about in terms of flipping from defense to offense post-EMOB integration. Could you just talk a little bit more about the -to-market improvements and how you're looking to build on some of this momentum into 2025?

Thank you, Matt. Thank you also for the question. I think that the change that we've done after the integration of FOMOBE is of course material we consider also in the results. But part of the thing that we are talking about -to-market is changing the brand and improving and tightening the messages to the message to the market make a lot of difference because people now understand better what we are basically offering and how we can help them grow their business. And we see a lot of good response from the market around that, but people starting to, they see also the behavior of the other partners or other peers in the market. Everybody's trying to build an -to-end solution while we already got it ready and we are working with that for the last, for the last almost six years and it's helping us to do that. But we feel also that the brand and the connection of everything under one umbrella is basically as I mentioned, explained and improving the message and the data. In every discussion that we are doing, data is basically is a very key point because people understand more and more the value in data and how they can integrate it into their business. And it's helping us of course, because we are one of the only platforms that is horizontal integration and it's very reaching data and enable the partners from both sides of the screen, like the advertisers and the publishers to launch, to utilize the data, to enrich it and to utilize it on the platform. So I think that all of that together, -to-end usage of data, a strong reach in CTV is helping us reach publishers and advertisers that want to work with us and we see the results in demand of the two mentioned.

That's great. And then Stygie, there's a lot of, I guess we'd call it noise in the macro right now. Could you just give us kind of an update on what you're seeing in Q1 so far? And then also kind of how you're thinking about the environment in your full year guidance.

Yes, so thank you Matt. I think that, as we said in our call a couple of minutes ago, we are seeing a normalized environment post the election cycle in the US. We entered 2025 on the same sentiment, we ended 2024. As everybody is aware, the macro is a little bit fragile and changing every day, but at this point of time, we are not seeing any change in something that we didn't anticipate or something that can even affect our 2025 results. So for now, business as usual, we are moving ahead and as you asked offer before, it's all about execution and now going to offense and we are doing the best effort in order to bring more clients into our ecosystem and go with strategic partnerships.

Thank you. Thank you.

Next question comes from the line of Laura Martin with Needham and Company. Your line is open.

Good morning. Over, my first one for you is about data. I think you said it grew by 100%. And I'm wondering if you could talk more granularly about what that product looks like and whether you foresee the data product growing that rapidly in 2025 and 2026.

Hey, Laura. Thank you for the question and good morning. I think yes, if you're talking like percentage wise, yes, it grew dramatically, but the numbers over there are quite small right now. It's not that small. When we are talking about data products or like organic data products, we are talking about products as our discovery tool and the ID graph that we are catering and enabling clients to benefit specifically and they are paying for that service on a usage basis. So for this product, we are seeing a very increased usage and engagement for clients. And we are managing to license more and more of this solution into our clients. Hopefully you want to add something.

Yeah, I want just to add Laura that usually we prefer not to sell or to offer the data as a standalone product, but to offer it in the mix of other services, mostly media. And it's hard to say, because as I mentioned also in our last call, about 90% of our campaigns are data-enriched. So when we are talking about data products, we are talking about when we are basically offering data as a standalone product, which is usually not something that we push to do because we prefer to include it with media, because then of course the margins and the activity is bigger for us.

So is this separate from the VITA-CTD ACR data?

Mostly it's about ACR, but in general we are selling and offering data in many, of many types of data to our clients, mostly advertisers when they're building their audiences and targeting or measuring. But when we are talking about these data tools, we are talking mostly about the ACR data, yes.

Okay, and then Sigi, a couple for you. One is now that you're 100% US, what's your thinking about moving from IFRS to US GAP? And then secondly, can you remind us both the guidances for 90% programmatic? To remind us, is the rest, is the other 10% managed service or what's the other 10% that isn't programmatic?

Okay, I'll answer both questions. So first of all, I will start with the second one. So when we are guiding that 90% or around 90% of our $380 million of guided net revenue for 2025, we are meaning that 90% will go through our full -to-end ecosystem. And the other 10% is what we are calling legacy performance activities, which now are mainly through and related to influencer advertising that we are involved in. So in our eyes, although it's been transacted and executed through programmatic activities, it's not like really going through our -to-end ecosystem.

Okay, and then you're on that. And can you remind us, is that the first question?

What was the first question?

USGAP. USGAP. Ah,

IFRS, we had a very fruitful discussion in our audit committee, and board meeting in the last couple of days around that. And we are now looking for all the gaps between IFRS and USGAP, accounting-wise and other related issues. And I think that we are intending to go to USGAP and probably better sooner than later. But we are not guiding yet that we will go fully USGAP in 2025. But I think that you can think that we will do that.

Super helpful. Thanks, guys. Good numbers, thanks. Thank you. Next question comes from the line of Andrew Miroc with

Raymond James. Your line is open.

Hi, thanks for taking my questions. Maybe one on CTV, if I could. So we've obviously seen the direction of travel on the demand side to open up to more partners. But interested on the supply side, I mean, typically publishers on CTV have been working with fewer supply partners, certainly than desktop display or mobile publishers. But have you seen the direction of travel that increasing? Have there been any certain catalysts behind that? And how much has that been helpful to your CTV business? Thanks.

Of course, good morning. Yes, I think that you are right in the point that you mentioned the CTV partners and major partners and publishers are lowering the number of partners that they got in order to sell their media programmatically. Our advantage on that matter is that we have our own demand. So it's not that we are offering just a connection point to the same demand sources like when you have duplication of SSPs that these guys were using in the past. We can basically offer a lot of unique demand that is coming from our sales team, which is why that's the reason that we are able still to grow our publisher base. And I feel that this is a major benefit that the publishers of CTV look at us. And I feel that the trend now is not to rely only on one or two sources of SSP, but to expand it to more people that can bring value, meaning additional demand, unique demand that they cannot get through their old relationship. So we see this move in the market and it's helping us to grow our business, helping us to widen our base of publishers and partners, and of course grow our revenues

from CTV. Andrew? Andrew, you're over. With us? Oh, sorry, I was on mute. Thank you. Much appreciated. Thank you.

And your last question comes from the

line of Matt Condon, with JPM. Your line is open.

Thank you so much for taking my questions. My first one's just in the new generative AI products. You're focused on ease of use and performance there. Can you just talk about the opportunity to potentially move down market into the SMB performance territory? Is that a focus or yeah, just can you elaborate on that?

So you're asking if we can basically go down the path of the funnel and offer with AI more performance-based?

I was more so just asking just the broadening of the advertiser base that you can address. Can you address now smaller, more SMB type performance advertisers, just given generative AI is now reducing the ease of use of the platform and also increasing the performance?

Yes, I think that AI in general will enable us and enabling us already to simplify the usage of our platforms. And you are right that in so many ways to operate the full platform that after we integrate the mobile into our platform, it's a very sophisticated platform, but you need to be a professional in order to use it. And we have a lot of professional partners that are using it. But if you're going to a smaller size advertisers and partners, it will be easier for them to do that with the AI tools that we are building right now. And our advantage also for these clients is that since we are sitting end to end and we can enable them to run different agents of AI across the advertisers and the publisher sites, the DSP and the SSP basically, including the data which is audience segmentation, creating audiences, targeting them, measuring them and so on. So it will open more venues around it. In this stage that we are now, we are introducing this technology and these capabilities to our major partners. But down the road, I think it's of course, some of our plan is to enhance the size of the audience that we are able to reach. And also to increase the question that I thought that you are asking, which is also, I feel a good question is that basically it will enable also people to be able to get better results from the media because they will be able to utilize the data and the targeting and the platform and the optimization in a much more meaningful manner. So I think it will do both. And we feel that we are in front of a very big revolution. We are making like a lot of steps now. We are introducing these tools right now to our major partners, but soon we will open it to more.

Great, that's very helpful. And then maybe just a follow up from an earlier question just on data licensing revenue. Can you just talk about the key levers for growth in 2025? Is it expanding to new DSPs or is it getting more out of the trade desk, back adapt, just anything that you can highlight there would be very helpful. Thanks guys.

Of course, I think that our growth is coming, will come and coming from a few trends. One of them is of course, to win new business. As I mentioned before, our new messaging, our Titan messaging, a better go to market strategy is helping us to win more business in the market. And I think that it's easier also because I think that our offering is basically responding and giving solution to all the trends that are worrying or challenging our advertisers and publishers. So for them to work with us, it's resolving for them a lot of these issues and they feel that we can give them a very strong solution to their needs, which of course it's super important and it's enhanced the growth. The second thing is also to grow our current base. So we have big base of partners and publishers already and what we are now able to do is to basically enhance the engagement with our platform. And so in other ways, that basically increasing the revenues that we are generating per client and per partner, which of course is very meaningful because as you know, in this type of relationship, the trust, to know each other, to trust each other, to have like working habits is super important and when you have them, it's easier to grow the revenues across additional platforms and so on. So these are the two major things that we are doing. And we have a lot of fronts to grow around, meaning we have, as you can see also in our earnings today that we shared that we have our own different formats like display, online video, and of course, CTV that is fulfilling and it's giving like full solution to our advertisers. So if in the past, some of these guys were using us only for video or CTV, now they are expanding to display. If they were like display, they are now expanding to other formats and of course it's very helpful and it's growing our revenues with them in a very meaningful manner.

Thank you so much.

Okay, so. And that concludes our question and answer session. I will turn the call back over to Alfred Drukker for closing remarks.

Thank you. I think that when we look at 2020, 2024, so as we wrote in the PR, I think that for us, it was back to basic. We worked very hard years before to make acquisition, to integrate them, to consolidate them, to tighten our message, to rebrand and 2024 was the year that we felt that things came together and you can see that by our results and the momentum that we created over the year. And we believe that it's just setting the stage for the years to come that we call the growth years, which will be this year and next year. And for that, we also onboarded additional talent people from the industry, grew and promoted people from our within company. And this is a great opportunity also to say thank you very much from Full Art to all our employees around the globe that worked very hard in 2024 to make these results happen. You can see that it's a teamwork. It's not a one star that created this change. It's a lot of people around the world that work together in order to make the change. And thank you for our clients and partners for the trust and patience to get to this point that we can generate for your amazing results and grow the base of our partnership together going forward. I wish us all the 2025 will be a good year. It started now in the last 10 days. There is unrest in the public market, but I hope that it will resolve and it will let us fulfill our potential this year and going forward. So thank you very much.

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