Innovid Corp.

Greetings and welcome to the Innovid Q2 2024 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and then zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Lauren Hartman. Thank you. You may begin.

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 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 developments. Changes in our business, competitive landscape, technological or regulatory environment, and other factors could cause actual results to differ materially from those expressed by our 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 to 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 in our filings with the SEC. Hosting today's call are Zika Netter, Innovid's co-founder and CEO, as well as Anthony Collini, Innovid's CFO, both of whom will participate in our Q&A session. I will now turn the call over to Zika to begin.

Thanks, Lauren, and welcome everyone to our 2024 second quarter's earning call. Today, I'll review our second quarter results and provide an update regarding our ongoing strategic initiatives and progress in the market. I'll then turn the call over to our Chief Financial Officer, Tony Carlini, who will provide further details with respect to our Q2 results and full year 2024 outlook, followed by Q&A. We're proud to deliver another quarter of double-digit growth and improving margin. Revenue grew 10% year-over-year in the second quarter to $38 million. Adjusted EBITDA grew 29% to $5.9 million. Adjusted EBITDA margin increased to 15.5% up from 13% in the prior year. CTV impressions, our key growth driver, increased by 21% over last year. The solid business momentum we delivered in the first half of the year keeps us on track to execute against our long-term targets and in line with our full-year financial guidance. Our adjusted EBITDA margin expansion also demonstrates our ability and commitment to delivering profitable growth while continuing to invest in strategic innovation for the future of CTV. We have made momentous progress since the beginning of 2024, including the launch of our strategic harmony initiative and new partnerships with the world leading players in the market. As we shared last quarter in April, 2024, we launched the harmony initiative and product suite. We created harmony, to solve some of the biggest challenges facing CTV advertising today and to build a better CTV advertising for future of tomorrow. As TV rapidly transitions to fully digital future, our aim is to optimize CTV advertising at the infrastructure level to improve efficiency and ROI, enhance transparency and control, reduce carbon emissions, and provide a better viewing experience for consumers. I'm excited to share. that we've seen great progress in the last couple of months with clients, publishers, and partners. As part of a Harmony launch in April, we introduced a new product called Harmony Direct, which streamlines the supply path, making it more sustainable and transparent. Supply path optimization helps advertisers ensure more of their dollars go towards working media and helps publishers increase revenue opportunities. The data from our early results have been positive. Our beta partners saw a benefit of up to 15% improved yield and an average increase of 8% in working media. We are encouraged that more and more forward-thinking industry leaders are adopting Harmony Direct to help address the complexities of the CTV ecosystem. A few weeks ago, we announced that Goodway Group and Vizio joined the Harmony Initiative, alongside previously announced partners like Roku, PMG, Assembly, and the CMI Media Group. And in light of the successful results, PMG, an early agency adopter, is now rolling out Harmony Direct across its portfolio of clients. In addition to Harmony Direct, we announced last week that we launched our Harmony Frequency product, the first holistic frequency management solution for CTV and digital advertising. Frequency management remains a consistent challenge for advertisers. Until now, advertisers and media providers have had to separately manage frequency with each publisher or DSP platform. This led to ads being shown repeatedly to the same audiences and left key audiences underexposed. Through our ad server, we are able to see every impression, publisher, platform, device, and household across the entire ecosystem on both direct and programmatic media buys. Advertisers adopting Harmony Frequency can now prevent overexposure, maximize budget by reallocating spend to underexposed households, and improve the viewing experience by limiting ad fatigue. We're currently in beta testing for Harmony Frequency with CTV platforms, brand partners, and some of the leading DSPs in the world. We're especially excited to include Yahoo DSP as one of our first two market partners. We anticipate moving to general availability later this year. The strategic importance of the Harmony Initiative and specifically Harmony Frequency have been a key topic of discussion among industry leaders. In June, I had the pleasure of attending the Cannes Lion Festival together with my Innovate colleagues, where we met with leading brands, publishers, and industry partners. Many of our conversations reaffirmed the long-term potential of our Harmony Initiative and validated our efforts to solve the problems in the CTV industry today. In addition to conversations about Harmony, There were many discussions at Cannes focused on the expanding CTV market. I am very encouraged by these conversations and the elevated strategic position that Innovit holds as a critical and leading player in the industry. To reinforce that point, I am also excited to announce a new strategic collaboration that demonstrates our essential position in the market and the power of the Innovit platform. Earlier this morning, we shared that we are collaborating with Nielsen, a global leader in audience measurement, with the aim of providing a seamless workflow and holistic view of the cross-media ads universe. By leveraging Innovate's ad-serving infrastructure to access Nielsen One, Nielsen and Innovate together would provide a seamless workflow, ultimately driving greater usability and coverage for ad measurement. Together, we aim to provide the industry with a holistic, comprehensive view of cross-media ad campaigns. By integrating directly with Nielsen's established currency solution, Innovid will enhance its position as a vital player for TV and digital advertising, opening new avenues for growth. Nielsen and Innovid will be testing the technical integration in the coming months, and we look forward to updating you all on our progress. In addition to this exciting collaboration with Nielsen, we remain committed to investing in Innovid's own measurement solutions, which are used by some of the leading global advertisers and publishers. We also are introducing more and more real-time optimization solutions with Harmony, powered by our evolving measurement solution. Finally, I am pleased to share some customer wins and expansions from the second quarter. We signed new clients and expanded our relationship with leading brands such as WNBA, Eli Lilly, Lunderback, Purple Innovation, Habit Burger, and The Wonderful Company. We're particularly excited about the expanded partnership with leading publishers Amazon and Spectrum. We remain very focused on delivering value for our clients across our suite of products and are committed to driving impact for their businesses. None of these partnerships accomplishments or growth would have been possible without a world-class team, which is why I'm proud that Innovate was recently named on Inc's best workplaces list of 2024. I want to thank our employees for all their hard work and for creating a workplace that balances innovation and culture. Our unique culture has been a driving force behind our ability to lead industry change. I am very pleased with the progress we have made so far in 2024. I am excited about our sustained business momentum. Our Harmony Initiative continues to be well received and adopted by industry leaders. We are well positioned to benefit from the secular CTV trends and are confident in InnovIT's underlying business strength. Our second quarter results keep us on track to execute in 2024 and deliver double digit profitable growth over the long term. With that, I'll ask Tony to take us through the numbers and provide some insights into Q3 and full year expectations.