Innovid Corp.

Good day, ladies and gentlemen, and welcome to the InnoVid Second Quarter 2023 Earnings Call. Our host for today's call is Brinley Johnson, Investor Relations. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. I would like to now turn the call over to your host. Brinley, the floor is yours.

Thank you, Operator. Before we begin, I'll remind you that today's call may contain forward-looking statements and that the forward-looking statement disclaimer included in today's earnings release available on the investor relations page also pertains to this call. These forward-looking statements may include, without limitation, predictions, expectations, targets, or estimates included regarding our anticipated financial performance, business plans, and objectives, future events, and developments, changes in our business, competitive landscapes, 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 and 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, today's call will include non-GAAP financial measures including adjusted EBITDA and adjusted EBITDA margins. We use these non-GAAP measures in managing the business and believe they provide useful information for our investors. These measures should be considered in addition to and not as a substitute for our GAAP results. Reconciliations of the non-GAAP measures to their corresponding GAAP measures, where appropriate, can be found in the earnings release available on our website and on our filings with the SEC. Hosting today's call are Zvika Netter, Innovid's co-founder and CEO, as well as Tanya Andreev-Caspin, Innovid's CFO, who will participate in our Q&A session. With that, I'll turn the call over to Zvika to begin.

Thanks, Brittany, and thank you all for joining the call today. I'll begin with some thoughts about the second quarter and some recent business updates and highlights. Our CFO, Tanya Andreev-Caspin, will provide details on our Q2 performance and our updated guidance, followed by Q&A. I am pleased to report we delivered a strong second quarter, positioning us for a solid full year of 2023. We exceeded our prior guidance for both revenue and adjusted EBITDA and are raising our full-year guidance. We are increasing our full-year revenue guidance and are guiding to expected adjusted EBITDA margins of at least 10%. Looking at the quarter, our Q2 revenue grew 4%, and we posted adjusted EBITDA of $4.5 million, representing 13% adjusted EBITDA margin. as we progress in our plans to improve profitability. Our Q2 results are evidence that we're executing on our plan. We remain focused on profitable growth and are improving the profitability profile of the company. During recent quarters, we have focused on integrating the acquisition of TV Squared, realizing synergies in the business, and making important operational cost improvements. Now, for the first time since the acquisition, We are benefiting from the full impact of the post-merger integration and the full suite of our expanded product offerings. Our measurement offering, Innovate XP, helped fuel our growth this quarter, with top-line revenue growth up to 10% year-over-year, measurement with 23% of total revenue in the second quarter. We are excited about the ramp-up in measurement growth, Some of the growth is attributed to the deals we reported earlier in the second quarter with NBCU and Disney. Our partnership with NBCU Universal further solidifies our position as an advanced measurement solution built for the future of advertising in multi-currency marketplace. It can provide a unified cross-platform view of local linear and CTV advertising alongside actionable metrics to meet advertiser and publisher needs across the ecosystem. Another wing we expanded on this quarter was Disney advertising. We are enabling the measurement of outcomes such as app conversion and website visitation across Disney's addressable footprint, giving both local and national advertisers the tools and insights they need to inform and continuously improve their campaign strategies. We are also piloting measurement solutions with one of the largest publishers in the world, which we intend to launch in the second half. Turning to our overall growth, we delivered continuous CTV growth with impressions up 11%. Innovative benefits as linear TV continues to shift to CTV. This is a crucial part of our story. Even in a challenged market for ad spend by specific verticals, we were able to deliver growth because of our favorable secular trends in CTV and the critical nature of the technology we provide for our customers. Our growth this quarter was also fueled by new business flows. new accounts, and cross-sale opportunities. We are having a great deal of success adding new customers and focus on deepening our relationship as clients activate more products. Our new wins and expansions include some of the largest auto brands such as Mazda US and American Honda, and some of the largest global advertisers including Microsoft, Butuka Pharmaceutical US, and Pluto TV. We are also strengthening our sales leadership to fuel future growth. This quarter, we announced the hire of Dave Fahey as Vice President, Agency Partnerships, an industry veteran with tenure at Google. Dave will be responsible for driving strategic growth in our agency partnership. Most recently, we also announced the hire of Jeff Austin, a Senior Vice President of Revenue Operations. Jeff brings close to 20 years of experience in sales and revenue operations. We are continuing our investment in new capabilities to power the future of television. Two areas where we're seeing credible potential as data-rich business is in the adoption of AI to help marketers discover the value from insights, creative optimization, and measurement, and in putting more media dollars to work through CTV-specific supply path optimization. Innovate is already leveraging the power of AI to optimize business outcomes for our customers. Our capabilities help advertisers transform measurement insight into creative actions and highlight where they should be investing future media dollars. Based on numerous performance signals we receive, our platform is delivering the optimal creative within a campaign, all in real time and without human intervention. In Q3, we will continue to enhance our platform to allow customers to more effectively use generative AI in the creative workflow, as some of our customers already take advantage of the ability to drive dynamic messaging using generative AI. Supply path optimization, or SPO, is expected to have a positive measurable impact on both media efficiency and our industry's carbon footprint. Our largest clients and partners are asking for our involvement to improve the CTV media supply path. And we are exploring how our platform can assist in the efforts to further optimize our customers' business objectives while minimizing the impact on our planet. This will benefit advertisers, publishers, and the viewers alike. In summary, we delivered a solid quarter, including some key client wins and expansion, And we are also encouraged by some signs affirming in the advertising market. We are optimistic about our future growth and our ability to expand our moat as a leader in building critical technology for future of television. As our products are profitable at the core, the surplus in revenue flows through to the bottom line, evidenced by our strong adjusted EBITDA results. We will continue to focus on profitable growth in 2023 while making investments with the target of achieving at least 10% adjusted EBITDA margin this year. I'll now hand the call over to our CFO, Tanya Andreev-Cassey, to discuss our second quarter results and updated guidance. Tanya?