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• Contribution ex-TAC: $105.2 million in Q4, an all-time quarterly record, with 16% year-over-year growth.

• Programmatic Revenue: $98.7 million in Q4, reflecting 15% growth from Q4 2023.

• CTV Revenue: $37 million in Q4, representing 86% growth from Q4 2023.

• Adjusted EBITDA: $44.3 million in Q4, a 38% increase from Q4 2023, with a margin of 42%.

• Net Cash from Operating Activities: $52.3 million in Q4, compared to $43.6 million in Q4 2023.

• Cash and Cash Equivalents: $187.1 million as of December 31, 2024.

• Non-IFRS Diluted Earnings per Share: $0.48 in Q4 2024, compared to $0.20 in Q4 2023.

• Share Repurchase: Approximately 4.5 million ordinary shares repurchased in Q4, reflecting an investment of $20.1 million.

• 2025 Outlook: Expected contribution ex-TAC of approximately $380 million and adjusted EBITDA of approximately $125 million.

• Warning! GuruFocus has detected 7 Warning Signs with CHPT.

Release Date: March 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Nexxen International Ltd (NASDAQ:NEXN) achieved record quarterly and annual Contribution ex-TAC for programmatic revenues and CTV revenue results in 2024.

• The successful integration of Amobee in 2023 enhanced Nexxen's enterprise DSP capabilities, data capabilities, and CTV and omnichannel offerings.

• Nexxen's end-to-end platform and robust DSP and SSP technologies provide a competitive edge in the CTV market.

• The company plans to deepen its AI capabilities in 2025, which is expected to enhance platform usability and improve targeting precision.

• Nexxen's CTV revenue grew by 86% year-over-year in Q4 2024, driven by strong sales execution and improved macroeconomic conditions.

Negative Points

• Nexxen experienced a year-over-year decrease in mobile video revenue and within its travel and education verticals.

• The macroeconomic environment remains fragile, which could impact future performance.

• Despite strong growth, the data product segment is still relatively small in terms of revenue contribution.

• The company anticipates an increase in stock-based compensation expenses in 2025 due to a higher share price.

• Nexxen's transition from IFRS to US GAAP accounting is still under consideration, which may involve complexities and adjustments.

Q & A Highlights

Q: Can you discuss the go-to-market improvements post-Amobee integration and how you plan to build on this momentum in 2025? A: Ofer Druker, CEO, explained that post-Amobee integration, Nexxen focused on rebranding and refining their market messaging, which has clarified their offerings and enhanced market understanding. This strategic shift has positioned Nexxen as a leader in end-to-end solutions, leveraging their rich data capabilities to attract both advertisers and publishers.