Tremor International Ltd.

Welcome to Tremor International's third quarter and nine-month 2021 conference 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 conference call is being recorded and a replay of today's call will be made available on the investor relations section of Tremor's website and will remain posted there for the next 30 days. I will now hand the call over to Billy Eckert, Senior Director of Investor Relations for introductions and the reading of the Safe Harbor Statement. Please go ahead.

Thank you, operator. Good morning, everyone, and welcome to Tremor International's third quarter and nine-month 2021 earnings call. With us on today's call are Ofer Juker, Tremor's Chief Executive Officer, and Sigi Neri, the company's Chief Financial Officer. This morning, we issued a press release, which you can access on our website at investors.tremorinternational.com. During today's call, we may 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, projections about our future financial results and future business, and statements concerning the expected development, performance, and market share or competitive performance relating to 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. 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 registration statement on Form F1. Tremor 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 reconciliation of IFRS to non-IFRS results. At this time, it is my pleasure to introduce Ofer Djouker, CEO of Tremor International. Ofer, please go ahead.

Thank you, Billy, and welcome to everyone joining us on today's third quarter Earnings Webcast. Let me start by saying this quarter has been a significant period of growth for the company. Today, we reported our strongest quarter in corporate history, and we are encouraged by the momentum we have generated across our core verticals, which I will cover in more details on today's call. Afterwards, our Chief Financial Officer, Saghin Neri, will review the highlights of our Q3 financial results. Following that, we will be happy to take your questions. First, I would like to cover some brief performance highlights. For the three months ended September 30, 2021, we generated contribution ex-tech of 76.7 million U.S. dollars compared to 49.7 million dollars in Q3 2020. 54% organic growth. An adjusted EBITDA of 42.3 million dollars compared to 19.6 million dollars in Q3 2020, which is 2.2 times growth. This reflected our strongest quarter reported today, highlighted by September being the strongest single month since the company inception. For the nine months ended September 30, 2021, we generated contribution ex-tech of 213.4 million US dollars compared to 110.3 million dollars in nine months of 2020, which reflects organic growth of 93% and adjusted EBITDA of US dollars, $107.2 million, compared to $21.4 million during the period last year, which resulted in a five times growth. Our core growth driver is in CTB services, where our revenues grew 115% in Q3 2021 versus Q3 2020, and 188% in the nine months period ended September 30, 2021 versus same the nine months period in 2020. We also achieved a 49% EBITDA margin in Q3 2021 on a reported revenue basis and a 55% margin on net revenue, which is the higher than the median of our direct peers. I emphasize The core of this performance is the strength of Tremor end-to-end technology and business platform, which covers the three pillars of this business, DSP, DMP, and SSP. Our end-to-end technology platform provides simplicity for our customers, better data empowerment for advertisers and publishers, and is accelerating the industry move towards supply pet optimization. As we serve customers on both the demand side and supply side, Tremor obtains robust access to first and third party data from both advertisers and media partners, which customers can leverage to generate better returns on ad spend and maximize their ad inventory revenue. Tremor's platform also offers customers key opportunity on who they choose as a partner to best suit their needs. Our DSP, Tremor Video, is compatible with our SSP annually, as well as other providers. while our SSP can also be leveraged by other DSPs as well. Later in this presentation, I will touch upon the continued progress we are making in CTV, which is a key performance driver for Tremor. Tremor's consistent primary focus on video and CTV is proving prescient in today's market, leading to a meaningful growth across our exchange and putting us ahead of platforms only recently evolving from display. We have enhanced our offering further through the acquisition of Spirit, our exclusive global ACR data partnership with VIDA, and our recent launch of Programmatic TV Marketplace. I would like also to comment on perceived headwinds in our sector, as it relates to challenges associated with IDFA changes and cookie deprecation that are impacting our industry players. We do not anticipate a significant impact on our business. Our end-to-end platform and presence across all screens provide us with the key advantages that reduce tremor exposure to these issues. We believe this strategy has proven successful and we will continue to advance and enhance this model as we look to the future. It's also worth noting that although COVID-19 proved to be challenging, it is also served as an opportunity for tremor by accelerating growth trends in segments that we have strong exposure in, such as CTV and video. Recently, however, many companies have been citing supply chain constraints attributable to the COVID-19 pandemic as a negative catalyst for the sector as certain advertisers have reduced budgets due to these constraints. While we have seen some evidence of lower advertising spend to this point in Q4 2021, in certain sector, particularly automotive, due to cheap shortages, we have seen stronger demand in other segments and the diversification of our customers base on both the demand and supply side have helped offset any significant adverse impact to our business. I will now shift the discussion to our vision and some of the key development that have occurred since last quarter. As I have stated before, four years ago, our senior team set a plan to transform Tremor into a market-leading company focused on video, data, and CTV, with the ability to capture users across all screens, deliver through a full end-to-end tech platform. Our team has M&A execution experience and has successfully integrated companies in the past. We are constantly searching for strategic opportunities to acquire additional companies that can become meaningful contributors in video, data, and CTV, such as what we accomplished with the recent acquisition of Spirit. We believe we have delivered on a promise to continue expanding and enhancing each element of our end-to-end platform with an emphasize on CTV, and we'll continue to do so going forward. One recent example of this comes from the previously mentioned acquisition of Spirit, a global CTV ad server featuring a robust user interface with advanced tools for ad port monetization. Spirit was purpose-built for broadcaster to deliver seamless TV-like experience in CTV and over-the-top environments. Spirit will integrate it into Tremor and Wooly SSP enabling CTV header bidding, channel inventory management, and ad port mode management. This transaction was particularly compelling as the addition of a CTV ad server further expands our differentiation and strengthen our position within CTV, while also significantly deepening relationship with our media partners and further complementing our end-to-end CTV offering. Prior to this, Media clients were reliant on either in-house ad servers or third parties. Whereas now, broadcaster with deep relationship with Tremor can leverage us for our ad server and other bidder capabilities. This enabling us to maintain more of the relationship in-house and allow us to better serve our customers through added technology solution. This will also allow us to potentially expand our revenue footprint with current customers and we expect that it will also attract future media partners seeking to utilize this advanced technology solution. Not all ad servers have CTV ad port monetization capabilities like Spirit, which is why we were particularly excited about adding the technology built by savvy industry veterans to our end-to-end platform. We anticipate this technology addition will allow us to capture a greater portion of CTV inventory through both current and future media partners and provide added benefit to help those partners better control their inventory and maximize revenue opportunities. We will also continue to evaluate future strategic exclusive global partnership that expand our data reach and differentiation within CTV, such as the partnership we recently announced with VIDA. The partnerships give us exclusive global access to VIDA's Automatic Content Recognition, ACR, data, pre-installed on most ISIN smarts TV and is also integrated into a number of premium original equipment manufacturers, such as Toshiba. These partnerships give us access on an exclusive basis to VIDA global ACR data, accelerating our U.S. and international growth and footprint. We will utilize this data for targeting purposes, making us one of the only end-to-end technology platform outside of the walled gardens with this type of data exclusivity. The agreement provides us access to video distribution, which reaches approximately 20 million smart TVs globally. And we will anticipate this reach could roughly double over the course of our partnership. The data will be available for activation for customers on both sides of the end-to-end platform, which will enable the ability to offer proprietary measurement capabilities for TV intelligence campaigns. I also want to highlight the recent launch of Tremor Programmatic TV Marketplace, which enabled advertisers to access a centralized platform for planning CTV campaigns, facilitating Turkey campaigns activation and providing great transparency into the correlation of data-driven audiences. Our TV marketplace give brands the ability to take even greater control over the planning, execution, and customization of their CTV campaigns, coupled with a more transparent view into the supply and audience targeting capabilities available to them. Within this marketplace, Advertisers can activate deals leveraging Tremor content-level targeting solution enabled by TV-like content attributes from direct media partners. By curating deals based on content attributes like genre and rating from Tremor media partners, advertisers can tap into traditional and linear TV buying tactics in digital environments like CTV at scale. This expansion of Tremor contextual capabilities also addresses the market needs for more privacy mindful, verifiable, targeting solutions across CTV and video. Tremor also achieved a number of important business wins during the quarter. In Q3, we added 35 new US supply partners across critical growth verticals such as sport, entertainment, and lifestyle, as well as original equipment manufacturers, OEM, and multicast video on demand, MVOD, businesses. Our Unruly product team also streamlined revenue opportunities for publishers by rolling out consolidated and enhanced header bidding adapter on both the client side and server side Publishers can now access Tremor Video demand for all unruly formats via a single adapter rather than legacy version. Additionally, through Q321, Tremor Video observed a major increase in adoption of our data-driven creative offering, truly, since 2020, including expansion across CTV, as well as a substantial increase in client usage of our custom QR code solution for CTV. Truly continues to be a differentiator for Tremor and is a unique offering and advantage within our end-to-end solution. Truly is our in-house creative studio and it allows us to provide custom data-driven creative solution for our advertising customer to align with their complex global campaign objective. Leveraging Truly underpins our strategy of being completely end-to-end where advertisers and media partners can utilize us in all key aspects of their buying process across all screens, which offers us numerous growth trajectories and differentiation of revenue streams. Finally, our strong balance sheet and cash positions give us a strong foundation from which to continue exploring future growth opportunities through additional exclusive strategic global partnership or acquisitions. Tremor has a robust history and proven track record of successfully integrating this into our unified end-to-end platform, and we will continue to remain active in evaluating deals that can further complement and enhance our existing platform. With those comments complete, it's now my pleasure to turn the call over to Sagi to review our financial results.