Nexxen International Ltd. · NASDAQ:NEXN
Nexxen International — Q3 2024 Earnings Presentation
22 slides from Nexxen International's earnings presentation, Nov 15, 2024
Slide 1: Nexxen Third Quarter 2024 Earnings Call
Nexxen Third Quarter 2024 Earnings Call November 15, 2024 © 2024 Nexxen International. All rights reserved. Confidential information of Nexxen.
Slide 2: Introduction to Speakers & Safe Harbor Statement
Introduction to Speakers & Safe Harbor Statement This presentation has been prepared by Nexxen International Ltd. (the "Company" or "Nexxen"). This presentation and the accompanying oral presentation contain forward-looking statements. These statements may relate to, but are not limited to: statemen
Slide 3: Nexxen's Platform, Business, Value Proposition and Industry Standing Has Taken a Massive Leap Forward
Nexxen’s Platform, Business, Value Proposition and Industry Standing Has Taken a Massive Leap Forward • Enhanced data and tech capabilities, rebrand and sales execution drove record Q3 results • Nexxen now viewed as the “data-first” platform that enhances outcomes across the AdTech supply chain • Ou
Slide 4: End-to-End Platform Approach Provides Competitive Advantages
End-to-End Platform Approach Provides Competitive Advantages Our flexible and differentiated end-to-end platform features a state-of-the art DSP and SSP, centered around a data platform, driving better results and ROI for partners while enabling cost savings especially when customers adopt multiple
Slide 5: Nexxen's Data Capabilities Creating Differentiation, Driving New Partnerships and Opening New Markets
Nexxen’s Data Capabilities Creating Differentiation, Driving New Partnerships and Opening New Markets Our platform connects the data and AdTech supply chain through data onboarding, audience enrichment, activation and measurement capabilities, separating Nexxen from the pack ONBOARDING ENRICHMENT AC
Slide 6: Nexxen is a True Leader in CTV Advertising Data and Technology
Nexxen is a True Leader in CTV Advertising Data and Technology • Full stack platform benefits CTV advertisers and streaming platforms • Nexxen holds relationships with all the world’s major CTV OEMs, provides access to premium streaming supply and has exclusive TV data assets • Our CTV data solution
Slide 7: Winning New ACR Data Licensing Partnerships With Strong and Growing Pipeline
Winning New ACR Data Licensing Partnerships With Strong and Growing Pipeline Nexxen’s ACR data segments are now available on The Trade Desk’s platform In advanced discussions for activation in the U.S., U.K., Canada and Australia with many others seeking to license our ACR data, including some of th
Slide 8: Nexxen Well Positioned in Live Sports Amidst Shift to CTV
Nexxen Well Positioned in Live Sports Amidst Shift to CTV and Strong and Growing Advertiser Demand • Nexxen’s relationships with Fox, Fubo and DIRECTV, amongst others, are creating live sports-related tailwinds • Our partners are granting us access to live college football, NFL and other major sport
Slide 9: Data-Driven Political Tools Launched in Q3 Helped Nexxen Capitalize on the 2024 U.S. Election Cycle
Data-Driven Political Tools Launched in Q3 Helped Nexxen Capitalize on the 2024 U.S. Election Cycle • Generated what the Company believes will reflect record annual political Contribution ex-TAC • Nexxen’s recently launched tools for political advertisers enabled deeper campaign insights and expande
Slide 10: Q3 Business Wins
Q3 Business Wins Highlighted by All-Time High New Advertiser Customer Additions +138 +31 +61 New actively spending first- New enterprise New supply partners time advertiser customers self-service customers © 2024 Nexxen International. All rights reserved. Confidential information of Nexxen.
Slide 11: Nexxen has an AI Edge and GenAI is Expected to Turbocharge its Platform
Nexxen has an AI Edge and GenAI is Expected to Turbocharge its Platform and Data Capabilities and Advantages DATA PLATFORM DEMAND PLATFORM SUPPLY PLATFORM DMP Discovery PLANNING ACTIVATION MONETIZATION Releasing GenAI-powered in-platform virtual assistant Introducing GenAI-powered Discovery enhancem
Slide 12: Nexxen Strongly Positioned for 2025 and Beyond
Nexxen Strongly Positioned for 2025 and Beyond Nexxen poised to accelerate growth in 2025 through recently launched partnerships and data licensing opportunities scaling, while GenAI-fueled enhancements are expected to attract more partners to our platform Data, CTV and video capabilities; alongside
Slide 13: Q3 2024 Financial Highlights
Q3 2024 Contribution ex-TAC $85.5 M (+12% y/o/y and a Q3 record) Financial Highlights Programmatic Revenue $81.6 M (+10% y/o/y and a Q3 record) CTV Revenue $29.7 M (+52% y/o/y and a Q3 record) Adjusted EBITDA $31.6 M (+49% y/o/y) Generated record Q3 Contribution ex- TAC and programmatic revenue, fue
Slide 14: Cash Flow, Liquidity and EPS
Cash Flow, Liquidity and EPS $39.9 M $166.5 M $0.14 Q3 2024 Net Cash from Operating Activities Net Cash as of 09/30/2024 Q3 2024 Non-IFRS Diluted Generated over 3X more than Q3 2023 Earnings Per Ordinary Shares $90 Million undrawn and remaining on the Company’s revolving credit facility and no long-
Slide 15: Share Repurchase Program Updates
Share Repurchase Program Updates • Repurchased ~5.1M Ordinary Shares in Q3 2024 (~$18.3M or ~£14.1M invested) • Repurchased ~33.4M Ordinary Shares from March 1, 2022, through September 30, 2024 (~21.6% of shares outstanding) • Launching new $50 million Ordinary Share repurchase program on November 1
Slide 16: Reaffirming Full Year 2024 Contribution ex-TAC Guidance and Raising Adjusted EBITDA Guidance
Reaffirming Full Year 2024 Contribution ex-TAC Guidance and Raising Full Year 2024 Adjusted EBITDA Guidance REAFFIRMING GUIDANCE RAISING GUIDANCE $340 – $345 M ~$107 M FY 2024 Contribution ex-TAC FY 2024 Adjusted EBITDA (from ~$100 M) 90% 2024 Programmatic Revenue as a % of FY 2024 Revenue The Compa
Slide 17: ADR to Ordinary Share Exchange, Reverse Split and AIM Delisting to be Voted on
ADR to Ordinary Share Exchange, Reverse Split and AIM Delisting to be Voted on by Shareholders at Upcoming AGM • If shareholders approve at upcoming AGM, the Company intends to exchange its NASDAQ-listed ADRs to NASDAQ-listed Ordinary Shares and terminate the ADR facility, conduct a reverse stock sp
Slide 18: Thank you
Thank you © 2024 Nexxen International. All rights reserved. Confidential information of Nexxen.
Slide 19: Appendix
Appendix © 2024 Nexxen International. All rights reserved. Confidential information of Nexxen.
Slide 20: IFRS / Non-IFRS Reconciliation: Revenue to Contribution ex-TAC
IFRS / Non-IFRS Reconciliation: Revenue to Contribution ex-TAC Three months ended September 30 Nine months ended September 30 2024 2023 % 2024 2023 % ($ in thousands) Revenue 90,184 80,094 13% 253,193 236,077 7% Cost of revenue (exclusive of depreciation and amortization) (13,857) (13,683) (43,952)
Slide 21: IFRS / Non-IFRS Reconciliation: Total Comprehensive Income (Loss) to Adjusted EBITDA
IFRS / Non-IFRS Reconciliation: Total Comprehensive Income (Loss) to Adjusted EBITDA Three months ended September 30 Nine months ended September 30 2024 2023 % 2024 2023 % ($ in thousands) Total comprehensive income (loss) 16,485 (2,563) 743% 12,123 (23,468) 152% Foreign currency translation differe
Slide 22: IFRS / Non-IFRS Reconciliation: Net Income (Loss) to Non-IFRS Net Income
IFRS / Non-IFRS Reconciliation: Net Income (Loss) to Non-IFRS Net Income Three months ended September 30 Nine months ended September 30 2024 2023 % 2024 2023 % ($ in thousands) Net income (loss) 14,541 )1,196( 1,316% 10,583 )24,714( 143% Acquisition related costs - 171 - 171 Amortization of acquired