Innovid Corp.

Good day, ladies and gentlemen, and welcome to the Innovid First Quarter 2024 Earnings Call. Our host for today's call is Brenly Johnson. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. I would now like to turn the call over to your host, Brenly Johnson. You may begin.

Thank you, operator. Before I begin, I would like to 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 our investor relations page, also pertains to this call. These forward-looking statements may include, without limitation, predictions, expectations, targets, or estimates regarding our anticipated financial performance, business plans and objectives, future events and development, 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, 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, adjusted EBITDA margins, and free cash flow. 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 our earnings release available on our website and in our filings with the SEC. Hosting today's call are Zika Netter, Inovid's co-founder and CEO, as well as Anthony Collini, Inovid's CFO, both of whom will participate in our Q&A session. And now I'll turn the call over to Zika to begin. Go ahead.

Thanks, Brittany, and thank you all for joining the call today. We had a strong start to 2024 as Q1 revenue grew over 20% and adjusted EBITDA significantly improved compared to Q1 last year. Most recently, we launched our Harmony initiative and related product suite to optimize the CTV advertising ecosystem as we seek to keep TV open for everyone and controlled by no one. Today, our review of first quarter results provide several exciting business updates, unpack the Harmony Initiative, and share some thoughts on the rest of the year. I'll then turn it over to our Chief Financial Officer, Tony Collini, who will provide further details on our Q1 financials, updates on the financial guidance, and we'll finish with Q&A. I am pleased to report first quarter revenue of $36.7 million reflecting 21% growth over the last year. Adjusted EBITDA improved from effectively break-even last Q1 to $4.4 million in the first quarter of 2024, reflecting an adjusted EBITDA margin of 12% as operation profitability continues to improve. We also delivered another quarter of positive free cash flow at $2 million, a $4.8 million improvement over Q1 of last year. In the first quarter, we signed new client wins, product expansion, and renewals with leading brands such as Eli Lilly, Hellion, Homes.com, and Verizon, as well as publishers like the Tennis Channel, owned by Sinclair. Our financial results and client wins are a gratifying reflection of our team's hard work and the power of our platform. Another important part of what makes Innovit unique is our focus on innovation. We push the boundaries of what's possible in the fast-growing CTV industry. And today, I'll share a few highlights of what we accomplished in Q1. In February, we launched a series of first-to-market interactive ads in partnership with Paramount+. During Super Bowl 58, the most streamed Super Bowl ever, the ads engaged consumers with the new Add to Watchlist units to promote Paramount Plus content. We also developed interactive ads for Pfizer, which drove viewers to their Let's Outdo Cancer website. As live sports and other high value content continues to shift the streaming platform, we believe this will further accelerate the increase in CTV viewership and advertising spent. More recently, we were recognized as the best measurement tool by Digiday in their 2024 Digiday Video and TV Awards, which highlights the company's campaigns and technologies modernizing video and TV. This recognition exemplifies the power of our platform and the value our measurement solution provides to brands and publishers. We do not only help measure the efficiency and effectiveness of CTV advertising, but we also empower them to act on that intelligence to optimize their investments. Next, I'm very excited to share more about our new strategic initiative at Innovit. A few weeks ago, We were joined by clients and industry partners, including ANA, the 4As, and the Ivy, at the New York Stock Exchange and via global webcast as we launched our Harmony initiative and product suite. Our Harmony initiative was created to address some of the biggest challenges facing CTV advertising today. By optimizing CTV advertising at the infrastructure level, we believe we can improve efficiency, enhance transparency and control, reduce carbon emissions, and increase ROI to ultimately provide better viewing experience that will benefit advertisers, publishers, edtech platforms, and of course, CTV viewers. Every day, our ad-serving capabilities, our award-winning creative technology, and our measurement capabilities help us deliver exceptional value to our clients. Now with Harmony, we're adding an activation and optimization layer powered by our CTV data set and our unique position in the ecosystem. On the data front, we deliver 1.3 billion TV ads a day and see trillions of data points giving us an unrivaled view of the ecosystem. That covers programmatic and direct buys, the open web and walled gardens. This means we sit in the unique position to be able to deliver and as a result, see and understand 100% of what our clients run in CTV. In addition, Since we don't buy, bid on, or sell media, we are media agnostic and unbiased, which puts us in the best position together with our partners to solve the biggest challenges in CTV. We are releasing a series of product innovations throughout 2024 under the Harmony product suite umbrella to openly share our unique data-driven CTV intelligence with the industry. We believe This will help make the entire CTV advertising ecosystem better for the benefit of all advertisers, publishers, DSPs, and SSPs, and of course, the viewers at home. One of the first product innovations to be released as part of the initiative is Harmony Direct, which connects the Innovate Buy Site ad server directly to the publisher ad server for the delivery of guaranteed, non-beatable CTV ad impressions. This streamlines the workflow for these types of campaigns to its purest form, removing all friction points, including technology hops, fees, and energy waste. With fewer hops and less budget going to intermediates, advertisers can drive better outcomes from the same investment because more is going to actual working media. Harmony Direct also aims to lower the risk of latency and fraud. provide a greener supply path, and improve fill rates for publishers. Agency and publisher partners, including Assembly, CMI Media Group, PMG, RPA, and Roku, are among the first to use Harmony Direct. In line with our commitment to stay an unbiased, true partner to our customers and publisher partners, we are offering an impression-based software pricing model for our Harmony product suite, rather than a percentage of media model. For Harmony Direct, in particular, having a flat fee per impression model versus a take rate is increasing the amount of working media dollars that actually make their way from the advertiser to the publisher. This is a true win-win. Brands will have more dollars for working media and publishers will have more revenue opportunities from the exact same budget. As I mentioned earlier, we have a roadmap of Harmony products that will continue to be released throughout 2024. We believe Harmony will better balance the value creation in CTV, which will accelerate budget shifting from linear TV to CTV. While still in early days, we expect the Harmony strategy to help drive revenue growth over the long term by enhancing our cross-sell opportunities and strengthening our strategic positioning. Our products are becoming more and more connected and integrated, increasing the overall stickiness of the Innovic platform. However, since this initiative and product are still new, Any commercial impact is not yet reflected in our 2024 guidance. In summary, we had a great start to 2024 and are excited about the opportunities ahead of us. We continue to innovate and release exciting new optimization capabilities to support and further drive the shift from linear to CTV. Financially, we are trending towards our long-term financial goals of over 20% sustained growth and 30% adjusted EBITDA margins. We believe we are well positioned to become the essential technology infrastructure for the future of TV advertising and to experience outsized growth when ad spend returns to its historic level. We remain committed to innovation and value creation for our customers and shareholders. With that, I'll ask Tony to take us through the numbers and provide some insight into Q2 and full year expectations. Tony?