Innovid Corp.

Greetings. Welcome to InnoVid's third quarter 2022 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. Please note this conference is being recorded. I'll now turn the conference over to Brynlee Johnson with Investor Relations. Brynlee, you may now begin.

Thank you, operator, and everyone for joining us today. Welcome to InnoVid's third quarter 2022 conference call. Before we begin, I would like to remind our listeners that certain information provided on this call may contain forward-looking statements. The Safe Harbor statement contained in today's earnings release also pertains to this call. If you've not received a copy of the release, please direct yourself to the Investor Relations section of the company's website. Changes in our business, competitive landscape, technological or regulatory environment, and other factors could cause actual results to differ materially from those expressed by the forward-looking statements made today. Our historical results are not necessarily indicative of future performance. As such, we can give no assurance as to the accuracy of our forward-looking statements and assume no obligation to update them except as required by law. In addition, our discussion today will include references to certain supplemental non-GAAP financial measures which should be considered in addition to and not as a substitute for GAAP results. We use these non-GAAP measures in managing the business and believe they provide useful information to our investors. Reconciliations of the non-GAAP measures to the corresponding GAAP measures, where appropriate, can be found in the earnings presentation available on our website, as well as our earnings release and our filings with the SEC. Today we are joined by Zvika Netter, Innovid's co-founder and CEO, who will begin the call with a business update. Then he will turn the call over to Tanya Andreev-Taspin, Innovid's CFO, who will discuss the financials of the company. During the question and answer session, Tal Tolosin, co-founder and CTO, will also be joining. Lastly, I would like to highlight that we are planning to host our first Investor Day on Wednesday, November 16, 2022, in New York City. Please look for the details of the investor relations section of the company's website. And with that, I'd like to pass the call over to Zvika Netter. Zvika, please go ahead.

Thank you, Bruni. let me start by thanking all military veterans and of course their families for their service happy veterans day innovate produced strong results in the third quarter of 2022 delivering revenue at the high end of our guidance and extending ebitda expectations revenue increased by 47 percent year-over-year to 34.5 million dollars on an as reported basis and CTV continues to break records for the business accounting for 50% of the revenue excluding TV Squared in the third quarter. We also generated a net loss of $11.8 million and a positive adjusted EBITDA of $2.9 million. This exceeded our expected range of negative $2 million to break even, a testament to the proactive measures we have taken to improve margins through the post-merger synergies. We are pleased with our ability to deliver top-line growth despite ongoing economic uncertainty. We feel confident our business will continue to thrive due to our leadership position in the CTV and broader converged TV industry. During the third quarter, we strengthened our position through focus on expanding the scale of the innovative platform across the full gamut of delivery, personalization, and measurement by strengthening the existing partnership as well as introducing net new partnerships to drive incremental reach and impact. In particular, we see the plan to launch ad-supported offerings from leading streamers such as Disney+, Netflix, and Warner Brothers Discovery as fuel to drive the next wave of growth for our business. Inovit has been trusted time and time again to power tech automation for some of the biggest properties in TV advertising. This includes NBCU for ad delivery during the past and upcoming Olympic Games, CBS to power interactive apps during the Super Bowl, and Peacock, who relied on Innovate to implement creative compliance tools to achieve what we believe to be among the highest quality levels in the industry. I'm pleased to share that Innovate is working to be one of the few technology providers empowering to deliver ads on December 8th when Disney Plus launches its ad-supported tier. This expansion of our long-standing partnership with the Disney family dating back to our initial integration with Hulu over a decade ago. And it's symbolic of their confidence in our platform's quality controls and the ability to keep pace with the demands of concurrent live streaming. In support of Netflix's recent basic with ad launch, we have also updated our asset validated tool to adhere to Netflix's new creative specifications. This allows our advertiser clients to continue leveraging InnoVid for streamlined validation of TV ads and consistent workflow delivery across all major streamlined publishers, including Netflix. According to InnoVid's own recently commissioned study, one of advertisers' biggest pain points for converged TV advertising is fragmentation. We believe the market needs unification across platforms and inventory types, the open internet and walled gardens alike to deliver against the promise of the new TV landscape. We believe Innovate is uniquely suited to rise to this call due to our independent stance and the depth and the coverage of our software infrastructure across converged TV and digital. I'd now like to build on the update we provided in the past earning call and show more details on the current and future state of our business. Per usual, I will provide these updates within the context of our four key growth drivers, which are volume growth, product upsell, geographic coverage, and client-based retention and expansion. First, volume growth. Once again, CTV had a record-breaking quarter for Innovit, accounting for 54% of total video impressions volume, excluding TVSquare, reinforcing that the shift from traditional to streaming is growing and persistent. Our overall CTV volume grew 36% year-over-year, outfacing U.S. CTV ad spend according to eMarketer, which is projected to grow 23% year-over-year in 2022. The consensus is that linear TV advertising has passed its peak, which presents new opportunities for advertisers to adopt traditionally digital-centric strategies on the big screen in the home. We believe the demands for automated technology to help unify converged TV advertising will expand as viewership increasingly pivots to the streaming space. And Innovid will continue to deliver volume growth. Let's now move to our second growth engine, product upsell. We believe the power of our platform to unify delivery, personalization, and measurement in one place is a huge value add to marketers. And we are succeeding in upselling our products. In the third quarter, advanced creative revenue grew 24% year-over-year and measurement revenue grew 23% year-over-year. We're not including our TVSquared acquisition on a before-out basis. Last quarter, we discussed the launch of our expanded global cross-platform measurement offering, InnovateXP. We launched InnovateXP, the first global unified cross-platform measurement solution directly integrated with ad-serving data and creative personalization to solve advertisers' needs for simple, scalable, independent, and actionable view of their investment across all forms of television. Since then, Innovate XP has gained significant traction in the market and has been adopted in the past quarter by leading advertisers such as AstraZeneca, Diageo, eBay, Universal Parks, and more. In the third quarter, we onboarded several new large advertising clients, including American Family Insurance, to our personalization module. We also expanded our partnership with Verizon, a long-standing ad-serving client and one of the largest TV advertisers in the U.S., who chose to consolidate both delivery and personalization with InnoVid, moving away from siloed tech partners. Since growing their InnoVid partnerships into personalization, Verizon has been an early adopter of our recently-debuted advanced auto-optimization capabilities. These recent upgrades of our personalization offering allow advertisers to intelligently adjust what ad consumers are seeing based on statistically significant understanding of which combination of elements drive peak performance. In a recent announcement, Steve Murray, Director of Performance Marketing, MarTech, and Analytics at Verizon, said, and I quote, Innovate auto-optimization enables algorithmic decisioning to constantly iterate for the KPIs you care most about. Simply activated but highly customizable, Innovit is providing the technology needed to make everyday enhancements a reality." Our personalization capabilities were also expanded in the third quarter to support dynamic creative optimization via unique purchase data through the partnership with NCS Solutions. Through this collaboration, Innovit advertisers can now leverage real-time NCS data to shift dynamic creative delivery based on in-store sales. a revolutionary way to enable always-on intelligence for data-driven DCO campaigns. Another key and highly differentiated component of the Innovate platform is the CTV SDK. That enables advanced creative features such as personalization, commerce, and more in connected TV environment. This quarter, we are proud to share that we extended our deployment of the Innovate SDK to Paramount+, extending years of partnerships. We expect to continue to upsell and bring innovative new products to our impressive list of customers. Let's move on to our third growth engine, geographic expansion. We successfully introduced new capabilities beyond the US with global entities in the third quarter. Notably, we were selected by leading demand-side platform, the Trade Desk, to enable always-on incremental reach analysis across CTV campaigns in the UK and Germany. Powered by the InnovateXP measurement platform, selected users of the trade desk now have access to our suite of cross-platform incremental reach analysis insights for advertisers running campaigns on CTV. These insights allow advertisers to surface the incrementality of streaming beyond linear TV, as well as unique reach by publishers, including publisher-by-publisher analysis. By uncovering the overlap, these advertisers can maximize the household-level reach for their programmatic CTV strategies in a highly fragmented market. In the announcement of this integration, Steve Martin, Vice President of Data Partnership EMEA and APAC at the trade has said, quote, as CTV adoption steadily increases across the globe, we are making incremental reach analysis available to advertisers that have audiences fragmented across channels and screens. Directly within our platform, selected advertisers can now activate Innovate Always On automated measurement platform to ensure they reach the right audiences on the channels where they are actually watching their favorite TV content, end quote. Expansion into other European countries and Australia is expected in 2023. Now, let's move to our final growth pillar, expanding our client base. This past quarter, we onboarded over a dozen new advertising clients, many referenced throughout this call, to various models of our platform, spanning ad delivery personalization and, of course, measurement. We have also diversified our client base and have significantly grown our pipeline of mid-market advertiser opportunities. Before closing, I'd like to address the economy. Despite ongoing concerns about microeconomic conditions, innovative business has continued to grow, a testament to the strength of our market position and underlying product offerings. CTV continues to surge, boosted by the combination of new platforms and inventories such as Amazon Thursday Night Football moving into the streaming space. While we expect to continue to see positive growth overall, we remain mindful of the economic uncertainties that are impacting the advertising industry and are taking proactive measures to monitor and manage costs relative to the top-line growth. As we head into the last quarter of 2022, we remain committed to our core 2022 strategies and will continue to make investments we believe are important to capitalize on the growing Converge TV space. As always, we remain pragmatic in our investment approach and will continue to focus on driving efficiencies to boost both overall profitability of the business while we focus on continuing to grow top-line revenue. I now pass the call to Tanya, who will go into greater detail regarding financial performance and guidance. Tanya?