- Company exceeds both revenue and Adjusted EBITDA guidance for Q1
-
Q1 revenue grew to
$36.7 million , up 21% year-over-year -
Q1 net loss improved year-over-year to
$6.2 million and Adjusted EBITDA* improved to$4.4 million , representing a 12% Adjusted EBITDA margin* - Company raises full-year 2024 guidance
“We’re very proud to start 2024 with solid business momentum. We exceeded our revenue and Adjusted EBITDA guidance, demonstrated continuous improvement, and generated positive free cash flow for the quarter,” said
First Quarter 2024 Financial Summary
-
Revenue increased to
$36.7 million , reflecting year-over-year growth of 21%. -
Net loss was
$6.2 million , compared to a net loss of$8.6 million for the same period in 2023. -
Adjusted EBITDA* grew to
$4.4 million , compared to$0.1 million for the same period in 2023, representing a 12.0% Adjusted EBITDA margin.* -
Operating cash flow was
$4.7 million , compared to$0.4 million in the same period of 2023. -
Free cash flow* was
$2.0 million , an increase of$4.8 million , compared to a use of$2.8 million in the same period in 2023.
Recent Business Highlights
-
Recent new client wins, product expansions, and renewals with leading brands such as Eli Lilly, Haleon,
Homes.com , and Verizon; as well as new publishers, including the Tennis Channel owned by Sinclair. - Launched Harmony initiative to optimizeCTV advertising at the infrastructure level to improve efficiency, enhance transparency and control, reduce carbon emissions, and increase ROI to ultimately provide better viewing experiences.
-
Launched Harmony Direct, the first in a wave of new product innovations released as part of the Harmony initiative. Harmony Direct streamlines the supply path for non-biddable guaranteed media to its purest form, and aims to direct more advertiser dollars toward working media, increase revenue opportunities for publishers, and create a more sustainable, transparent path. Agency and publisher partners, including Assembly,
CMI Media Group , PMG, RPA, and Roku, are among the first using Harmony Direct. -
Won “Best Measurement Tool” in the 2024 Digiday Video & TV Awards, highlighting the companies, campaigns, and technology modernizing video and TV.
Innovid is the first to receive recognition within this new category. -
Launched a series of first-to-market interactive ads in partnership with Paramount+ during SuperBowl LVIII - the most-streamed
Super Bowl ever. The ads engaged consumers with new ‘Add to Watchlist’ units to promote Paramount+ content, as well as interactive ads for Pfizer, which drove viewers to their “Let’s Outdo Cancer” website.
Financial Outlook
-
Q2 2024 revenue in a range between
$37.5 million and$39.5 million , reflecting year-over-year growth between 9% and 14%. -
Q2 2024 Adjusted EBITDA* in a range between
$5.0 million and$6.0 million . -
FY 2024 revenue in a range between
$156 million and$163 million , representing annual growth of between 12% and 17%. This reflects an increase from prior guidance of$154 million and$162 million . -
FY 2024 Adjusted EBITDA* in a range between
$24 million and$29 million , raised from the prior range of$22 million and$28 million .
*See non-GAAP financial measures and reconciliation of GAAP to non-GAAP tables. This press release does not include a reconciliation of forward-looking Adjusted EBITDA to forward-looking GAAP Net Income (Loss) because the Company is unable, without making unreasonable efforts, to provide a meaningful or reasonably accurate calculation or estimation of certain reconciling items which could be significant to the Company’s results.
Conference Call
The Company will host a conference call and webcast to discuss first quarter 2024 financial results today at
Following the call, a replay of the webcast will be available for 90 days on the Innovid Investor Relations website.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures under the rules of the
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1996. The Company's actual results may differ from its expectations, estimates, and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," "aim," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company's expectations regarding its future financial results, expected growth, and future market opportunity. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results, including
About
|
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(Unaudited and in thousands, except share and per share data) |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
31,574 |
|
|
$ |
49,585 |
|
Trade receivables, net |
|
41,814 |
|
|
|
46,420 |
|
Prepaid expenses and other current assets |
|
6,099 |
|
|
|
5,615 |
|
Total current assets |
|
79,487 |
|
|
|
101,620 |
|
Long-term restricted deposits |
|
434 |
|
|
|
412 |
|
Property and equipment, net |
|
19,613 |
|
|
|
18,419 |
|
|
|
102,473 |
|
|
|
102,473 |
|
Intangible assets, net |
|
23,314 |
|
|
|
24,318 |
|
Operating lease right of use asset |
|
11,129 |
|
|
|
1,435 |
|
Other non-current assets |
|
1,055 |
|
|
|
1,278 |
|
Total assets |
$ |
237,505 |
|
|
$ |
249,955 |
|
|
|
|
|
||||
Liabilities and Stockholders' Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Trade payables |
$ |
1,527 |
|
|
$ |
2,810 |
|
Employees and payroll accruals |
|
11,324 |
|
|
|
14,060 |
|
Lease liabilities - current portion |
|
928 |
|
|
|
1,200 |
|
Accrued expenses and other current liabilities |
|
10,835 |
|
|
|
7,426 |
|
Total current liabilities |
|
24,614 |
|
|
|
25,496 |
|
Long-term debt |
|
— |
|
|
|
20,000 |
|
Lease liabilities - non-current portion |
|
10,630 |
|
|
|
634 |
|
Other non-current liabilities |
|
7,833 |
|
|
|
7,528 |
|
Warrants liability |
|
511 |
|
|
|
307 |
|
Common stock |
|
13 |
|
|
|
13 |
|
Additional paid-in capital |
|
382,935 |
|
|
|
378,774 |
|
Accumulated deficit |
|
(189,031 |
) |
|
|
(182,797 |
) |
Total stockholders’ equity |
|
193,917 |
|
|
|
195,990 |
|
Total liabilities and stockholders’ equity |
$ |
237,505 |
|
|
$ |
249,955 |
|
|
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
(Unaudited and in thousands, except share and per share data) |
|||||||
|
Three months ended |
||||||
|
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
36,738 |
|
|
$ |
30,485 |
|
Cost of revenue (1) |
|
8,732 |
|
|
|
8,265 |
|
Research and development (1) |
|
6,321 |
|
|
|
7,117 |
|
Sales and marketing (1) |
|
11,626 |
|
|
|
11,637 |
|
General and administrative (1) |
|
10,535 |
|
|
|
9,650 |
|
Depreciation and amortization |
|
2,624 |
|
|
|
2,030 |
|
Operating loss |
|
(3,100 |
) |
|
|
(8,214 |
) |
Finance (income) expenses, net |
|
(42 |
) |
|
|
(2,475 |
) |
Loss before taxes |
|
(3,058 |
) |
|
|
(5,739 |
) |
Taxes on income |
|
3,176 |
|
|
|
2,824 |
|
Net loss |
$ |
(6,234 |
) |
|
$ |
(8,563 |
) |
|
|
|
|
||||
Net loss per share common share—basic and diluted |
$ |
(0.04 |
) |
|
$ |
(0.06 |
) |
Weighted-average number of shares used in computing net loss per share: |
|
|
|
||||
Basic and diluted |
|
142,376,026 |
|
|
|
136,008,998 |
|
(1) Exclusive of depreciation and amortization presented separately. |
|||||||
|
|||||||||||||||
CONDENSED STATEMENTS STOCKHOLDERS’ EQUITY |
|||||||||||||||
(Unaudited and in thousands, except share and per share data) |
|||||||||||||||
|
Common stock |
Additional paid-in capital |
Accumulated deficit |
Total stockholders’ equity |
|||||||||||
|
Number |
Amount |
|||||||||||||
Balance as of |
133,882,414 |
$ |
13 |
$ |
356,801 |
$ |
(150,886 |
) |
$ |
205,928 |
|
||||
Stock-based compensation |
|
|
|
4,897 |
|
|
4,897 |
|
|||||||
Issuance of common stock |
|
|
|
|
|
||||||||||
—exercised options and RSUs vested |
2,734,320 |
|
— |
|
250 |
|
|
250 |
|
||||||
Net loss |
|
|
|
|
(8,563 |
) |
|
(8,563 |
) |
||||||
Balance as of |
136,616,734 |
$ |
13 |
$ |
361,948 |
$ |
(159,449 |
) |
$ |
202,512 |
|
||||
|
|
|
|
|
|
||||||||||
|
Common stock |
Additional paid-in capital |
Accumulated deficit |
Total stockholders’ equity |
|||||||||||
|
Number |
Amount |
|||||||||||||
Balance as of |
141,194,179 |
$ |
13 |
$ |
378,774 |
$ |
(182,797 |
) |
$ |
195,990 |
|
||||
Stock-based compensation |
|
|
|
4,118 |
|
|
4,118 |
|
|||||||
Issuance of common stock |
|
|
|
|
|
||||||||||
—exercised options and RSUs vested |
2,667,430 |
|
— |
|
43 |
|
|
43 |
|
||||||
Net loss |
|
|
|
|
(6,234 |
) |
|
(6,234 |
) |
||||||
Balance as of |
143,861,609 |
$ |
13 |
$ |
382,935 |
$ |
(189,031 |
) |
$ |
193,917 |
|
||||
|
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(Unaudited and in thousands) |
|||||||
|
Three months ended |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(6,234 |
) |
|
$ |
(8,563 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
2,624 |
|
|
|
2,030 |
|
Stock-based compensation |
|
3,838 |
|
|
|
4,533 |
|
Change in fair value of warrants |
|
204 |
|
|
|
(2,714 |
) |
Loss on foreign exchange, net |
|
90 |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Trade receivables, net |
|
4,606 |
|
|
|
3,708 |
|
Prepaid expenses and other assets |
|
(201 |
) |
|
|
(2,922 |
) |
Operating lease right of use assets |
|
376 |
|
|
|
459 |
|
Trade payables |
|
(1,282 |
) |
|
|
1,558 |
|
Employee and payroll accruals |
|
(2,736 |
) |
|
|
(299 |
) |
Operating lease liabilities |
|
(347 |
) |
|
|
(584 |
) |
Accrued expenses and other liabilities |
|
3,714 |
|
|
|
3,162 |
|
Net cash provided by operating activities |
|
4,652 |
|
|
|
368 |
|
Cash flows from investing activities: |
|
|
|
||||
Internal use software capitalization |
|
(2,269 |
) |
|
|
(3,091 |
) |
Purchases of property and equipment |
|
(272 |
) |
|
|
(89 |
) |
Withdrawal of short-term bank deposits |
|
— |
|
|
|
10,000 |
|
Investment in short-term bank deposits |
|
(53 |
) |
|
|
7 |
|
Net cash (used in) provided by investing activities |
|
(2,594 |
) |
|
|
6,827 |
|
Cash flows from financing activities: |
|
|
|
||||
Proceeds from loan |
|
— |
|
|
|
5,000 |
|
Payment on loan |
|
(20,000 |
) |
|
|
(5,000 |
) |
Proceeds from exercise of options |
|
43 |
|
|
|
250 |
|
Net cash (used in) provided by financing activities |
|
(19,957 |
) |
|
|
250 |
|
Effect of exchange rates on cash, cash equivalents and restricted cash |
|
(90 |
) |
|
|
— |
|
(Decrease) increase in cash, cash equivalents, and restricted cash |
|
(17,989 |
) |
|
|
7,445 |
|
Cash, cash equivalents, and restricted cash at the beginning of the period |
|
49,997 |
|
|
|
37,971 |
|
Cash, cash equivalents, and restricted cash at the end of the period |
$ |
32,008 |
|
|
$ |
45,416 |
|
|
|||||||
OTHER INFORMATION |
|||||||
(Unaudited and in thousands) |
|||||||
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN PERCENT |
|||||||
|
Three months ended |
||||||
|
2024 |
|
2023 |
||||
Net loss |
$ |
(6,234 |
) |
|
$ |
(8,563 |
) |
Net loss margin percent |
|
(17 |
)% |
|
|
(28 |
)% |
Depreciation and amortization |
|
2,624 |
|
|
|
2,030 |
|
Stock-based compensation |
|
3,838 |
|
|
|
4,625 |
|
Finance (income) expenses, net (a) |
|
(42 |
) |
|
|
(2,475 |
) |
Retention bonus expenses (b) |
|
92 |
|
|
|
297 |
|
Legal claims |
|
928 |
|
|
|
314 |
|
Severance cost (c) |
|
— |
|
|
|
821 |
|
Other |
|
14 |
|
|
|
272 |
|
Taxes on income |
|
3,176 |
|
|
|
2,824 |
|
Adjusted EBITDA |
$ |
4,396 |
|
|
$ |
145 |
|
Adjusted EBITDA margin percent |
|
12.0 |
% |
|
|
0.5 |
% |
(a) Finance (income) expenses, net consists mostly of remeasurement related to revaluation of our warrants, remeasurement of our foreign subsidiary’s monetary assets, liabilities and operating results, and our interest expense. |
|||||||
(b) Retention bonus expenses consists of retention bonuses for TVS employees. |
|||||||
(c) Severance cost is related to the personnel reductions that occurred during the first quarter of 2023. |
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW |
|||||||
|
Three months ended |
||||||
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities |
$ |
4,652 |
|
|
$ |
368 |
|
Gain (loss) on foreign exchange, net |
|
(90 |
) |
|
|
— |
|
Capital expenditures |
|
(2,541 |
) |
|
|
(3,180 |
) |
Free Cash Flow |
$ |
2,021 |
|
|
$ |
(2,812 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240507073455/en/
Investors
Brinlea Johnson
IR@innovid.com
Media
megan@innovid.com
cyodice@daddibrand.com
Source: