-
Q2 2024 revenue increased 10% year-over-year to
$38.0 million -
Q2 2024 net loss improved year-over-year to
$10.5 million and Adjusted EBITDA* increased 29% year-over-year to$5.9 million - Adjusted EBITDA margin increased to 15.5%, the eighth consecutive quarter of expansion
- CTV impression volume from ad serving and personalization increased 21% year-over-year
“I am pleased to report
Second Quarter 2024 Financial Summary
-
Revenue increased to
$38.0 million , reflecting year-over-year growth of 10%, compared to$34.5 million for the same period in 2023. -
Net loss was
$10.5 million , compared to a net loss of$19.0 million for the same period in 2023, an$8.5 million improvement year-over-year. -
Adjusted EBITDA* grew to
$5.9 million , an increase of 29% year-over-year, compared to$4.5 million for the same period in 2023, representing a 15.5% Adjusted EBITDA margin.* -
Operating cash flow was
$1.2 million , compared to$0.6 million for the same period in 2023. -
Free cash flow* use of cash was
$1.3 million , compared to use of cash of$2.0 million for the same period in 2023, a$0.7 million improvement year-over-year.
Recent Business Highlights
-
Innovid launched Harmony Frequency, the first holistic frequency management solution for CTV and digital advertising, with Yahoo DSP as a launch partner. -
Innovid announced today a collaboration with Nielsen with the intent to provide a seamless workflow solution and holistic view of the cross-media ads universe. The integration aims to bring Innovid’s ad serving infrastructure together with Nielsen ONE to simplify and improve ad measurement. -
Goodway Group and Vizio recently joined the Harmony initiative, alongside previously announced partners Roku, PMG, Assembly, andCMI Media Group . -
Recent new client wins and product expansions with leading advertisers and publishers such as Spectrum,
WNBA , Eli Lilly, Lundbeck, Purple Innovation, Habit Burger, andThe Wonderful Company . - CTV impression volume from ad serving and personalization increased 21% year-over-year, while Mobile video impressions from ad serving and personalization grew by 13% year-over-year, and desktop impressions from ad serving and personalization decreased by 9% year-over-year.
-
Innovid joined the broad-market Russell 3000® Index during the 2024 Russell US Indexes annual reconstitution.
Financial Outlook
-
Q3 2024 revenue in a range between
$40 million and$42 million , reflecting year-over–year growth between 10% and 16%. -
Q3 2024 Adjusted EBITDA* in a range between
$6.5 million and$8.5 million . -
FY 2024 revenue in a range between
$156 million and$163 million , representing annual growth between 11% and 16%. -
FY 2024 Adjusted EBITDA* in a range between
$24 million and$29 million .
*See non-GAAP financial measures and reconciliation of GAAP to non-GAAP tables.
Conference Call
The Company will host a conference call and webcast to discuss second 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) |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
30,580 |
|
|
$ |
49,585 |
|
Trade receivables, net |
|
45,762 |
|
|
|
46,420 |
|
Prepaid expenses and other current assets |
|
5,375 |
|
|
|
5,615 |
|
Total current assets |
|
81,717 |
|
|
|
101,620 |
|
Long-term restricted deposits |
|
430 |
|
|
|
412 |
|
Property and equipment, net |
|
20,449 |
|
|
|
18,419 |
|
|
|
102,473 |
|
|
|
102,473 |
|
Intangible assets, net |
|
22,309 |
|
|
|
24,318 |
|
Operating lease right of use asset |
|
11,047 |
|
|
|
1,435 |
|
Other non-current assets |
|
799 |
|
|
|
1,278 |
|
Total assets |
$ |
239,224 |
|
|
$ |
249,955 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Trade payables |
$ |
6,548 |
|
|
$ |
2,810 |
|
Employee and payroll accruals |
|
9,312 |
|
|
|
14,060 |
|
Lease liabilities—current portion |
|
1,354 |
|
|
|
1,200 |
|
Accrued expenses and other current liabilities |
|
11,849 |
|
|
|
7,426 |
|
Total current liabilities |
|
29,063 |
|
|
|
25,496 |
|
Long-term debt |
|
— |
|
|
|
20,000 |
|
Lease liabilities—non-current portion |
|
10,053 |
|
|
|
634 |
|
Other non-current liabilities |
|
10,536 |
|
|
|
7,528 |
|
Warrants liability |
|
664 |
|
|
|
307 |
|
Common stock |
|
14 |
|
|
|
13 |
|
Additional paid-in capital |
|
388,467 |
|
|
|
378,774 |
|
Accumulated deficit |
|
(199,573 |
) |
|
|
(182,797 |
) |
Total stockholders’ equity |
|
188,908 |
|
|
|
195,990 |
|
Total liabilities and stockholders’ equity |
$ |
239,224 |
|
|
$ |
249,955 |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited and in thousands, except share and per share data) |
|||||||||||||||
|
Three months ended |
|
Six months ended |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
37,951 |
|
|
$ |
34,546 |
|
|
$ |
74,689 |
|
|
$ |
65,031 |
|
Cost of revenue (1) |
|
9,097 |
|
|
|
8,591 |
|
|
|
17,829 |
|
|
|
16,856 |
|
Research and development (1) |
|
7,304 |
|
|
|
6,876 |
|
|
|
13,625 |
|
|
|
13,993 |
|
Sales and marketing (1) |
|
12,215 |
|
|
|
11,460 |
|
|
|
23,841 |
|
|
|
23,097 |
|
General and administrative (1) |
|
9,297 |
|
|
|
8,924 |
|
|
|
19,832 |
|
|
|
18,574 |
|
Depreciation and amortization |
|
2,831 |
|
|
|
2,064 |
|
|
|
5,455 |
|
|
|
4,094 |
|
|
|
— |
|
|
|
14,503 |
|
|
|
— |
|
|
|
14,503 |
|
Operating loss |
|
(2,793 |
) |
|
|
(17,872 |
) |
|
|
(5,893 |
) |
|
|
(26,086 |
) |
Finance income, net |
|
(78 |
) |
|
|
(248 |
) |
|
|
(120 |
) |
|
|
(2,723 |
) |
Loss before taxes |
|
(2,715 |
) |
|
|
(17,624 |
) |
|
|
(5,773 |
) |
|
|
(23,363 |
) |
Taxes on income |
|
7,827 |
|
|
|
1,335 |
|
|
|
11,003 |
|
|
|
4,159 |
|
Net loss |
$ |
(10,542 |
) |
|
$ |
(18,959 |
) |
|
$ |
(16,776 |
) |
|
$ |
(27,522 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share common share—basic and diluted |
$ |
(0.07 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.20 |
) |
Weighted-average number of shares used in computing net loss per share: |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
|
144,772,932 |
|
|
|
137,643,910 |
|
|
|
143,574,479 |
|
|
|
134,296,569 |
|
(1) Exclusive of depreciation and amortization presented separately. |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited and in thousands, except share and per share data) |
|||||||||||||||
|
Three months ended |
||||||||||||||
|
Common stock |
|
Additional paid-in capital |
|
Accumulated deficit |
|
Total stockholders’ equity |
||||||||
|
Shares |
|
Amount |
|
|
|
|||||||||
Balance as of |
143,861,609 |
|
$ |
13 |
|
$ |
382,935 |
|
$ |
(189,031 |
) |
|
$ |
193,917 |
|
Stock-based compensation |
|
|
|
|
|
5,496 |
|
|
|
|
5,496 |
|
|||
Issuance of common stock: |
|
|
|
|
|
|
|
|
|
||||||
—exercised options and RSUs vested |
1,942,048 |
|
|
1 |
|
|
36 |
|
|
|
|
37 |
|
||
Net loss |
|
|
|
|
|
|
|
(10,542 |
) |
|
|
(10,542 |
) |
||
Balance as of |
145,803,657 |
|
$ |
14 |
|
$ |
388,467 |
|
$ |
(199,573 |
) |
|
$ |
188,908 |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three months ended |
||||||||||||||
|
Common stock |
|
Additional paid-in capital |
|
Accumulated deficit |
|
Total stockholders’ equity |
||||||||
|
Shares |
|
Amount |
|
|
|
|||||||||
Balance as of |
136,616,734 |
|
$ |
13 |
|
$ |
361,948 |
|
$ |
(159,449 |
) |
|
$ |
202,512 |
|
Stock-based compensation |
|
|
|
|
|
5,658 |
|
|
|
|
5,658 |
|
|||
Issuance of common stock: |
|
|
|
|
|
|
|
|
|
||||||
—exercised options and RSUs vested |
2,120,370 |
|
|
— |
|
|
364 |
|
|
|
|
364 |
|
||
Net loss |
|
|
|
|
|
|
|
(18,959 |
) |
|
|
(18,959 |
) |
||
Balance as of |
138,737,104 |
|
$ |
13 |
|
$ |
367,970 |
|
$ |
(178,408 |
) |
|
$ |
189,575 |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Six months ended |
||||||||||||||
|
Common stock |
|
Additional paid-in capital |
|
Accumulated deficit |
|
Total stockholders’ equity |
||||||||
|
Shares |
|
Amount |
|
|
|
|||||||||
Balance as of |
141,194,179 |
|
$ |
13 |
|
$ |
378,774 |
|
$ |
(182,797 |
) |
|
$ |
195,990 |
|
Stock-based compensation |
|
|
|
|
|
9,614 |
|
|
|
|
9,614 |
|
|||
Issuance of common stock: |
|
|
|
|
|
|
|
|
|
||||||
—exercised options and RSUs vested |
4,609,478 |
|
|
1 |
|
|
79 |
|
|
|
|
80 |
|
||
Net loss |
|
|
|
|
|
|
|
(16,776 |
) |
|
|
(16,776 |
) |
||
Balance as of |
145,803,657 |
|
|
14 |
|
$ |
388,467 |
|
$ |
(199,573 |
) |
|
$ |
188,908 |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Six months ended |
||||||||||||||
|
Common stock |
|
Additional paid-in capital |
|
Accumulated deficit |
|
Total stockholders’ equity |
||||||||
|
Shares |
|
Amount |
|
|
|
|||||||||
Balance as of |
133,882,414 |
|
$ |
13 |
|
$ |
356,801 |
|
$ |
(150,886 |
) |
|
$ |
205,928 |
|
Stock-based compensation |
|
|
|
|
|
10,555 |
|
|
|
|
10,555 |
|
|||
Issuance of common stock: |
|
|
|
|
|
|
|
|
|
||||||
—exercised options and RSUs vested |
4,854,690 |
|
|
— |
|
|
614 |
|
|
|
|
614 |
|
||
Net loss |
|
|
|
|
|
|
|
(27,522 |
) |
|
|
(27,522 |
) |
||
Balance as of |
138,737,104 |
|
$ |
13 |
|
$ |
367,970 |
|
$ |
(178,408 |
) |
|
$ |
189,575 |
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited and in thousands) |
|||||||
|
Six months ended |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(16,776 |
) |
|
$ |
(27,522 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
5,455 |
|
|
|
4,094 |
|
|
|
— |
|
|
|
14,503 |
|
Stock-based compensation |
|
9,025 |
|
|
|
9,865 |
|
Change in fair value of warrants |
|
357 |
|
|
|
(3,279 |
) |
Loss on foreign exchange, net |
|
251 |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Trade receivables, net |
|
658 |
|
|
|
415 |
|
Prepaid expenses and other assets |
|
535 |
|
|
|
(1,390 |
) |
Operating lease right of use assets |
|
404 |
|
|
|
902 |
|
Trade payables |
|
3,739 |
|
|
|
1,060 |
|
Employee and payroll accruals |
|
(4,748 |
) |
|
|
804 |
|
Operating lease liabilities |
|
(444 |
) |
|
|
(1,130 |
) |
Accrued expenses and other liabilities |
|
7,430 |
|
|
|
2,626 |
|
Net cash provided by operating activities |
|
5,886 |
|
|
|
948 |
|
Cash flows from investing activities: |
|
|
|
||||
Internal use software capitalization |
|
(4,280 |
) |
|
|
(5,591 |
) |
Purchases of property and equipment |
|
(587 |
) |
|
|
(189 |
) |
Withdrawal of short-term bank deposits |
|
165 |
|
|
|
10,000 |
|
Increase in deposits |
|
— |
|
|
|
27 |
|
Net cash (used in) provided by investing activities |
|
(4,702 |
) |
|
|
4,247 |
|
Cash flows from financing activities: |
|
|
|
||||
Proceeds from loan |
|
— |
|
|
|
10,000 |
|
Payment on loan |
|
(20,000 |
) |
|
|
(10,000 |
) |
Proceeds from exercise of options |
|
80 |
|
|
|
614 |
|
Net cash (used in) provided by financing activities |
|
(19,920 |
) |
|
|
614 |
|
Effect of exchange rates on cash, cash equivalents and restricted cash |
|
(251 |
) |
|
|
— |
|
(Decrease) increase in cash, cash equivalents, and restricted cash |
|
(18,987 |
) |
|
|
5,809 |
|
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 |
$ |
31,010 |
|
|
$ |
43,780 |
|
OTHER INFORMATION (Unaudited and in thousands)
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN PERCENT |
|||||||||||||||
|
Three months ended |
|
Six months ended |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(10,542 |
) |
|
$ |
(18,959 |
) |
|
$ |
(16,776 |
) |
|
$ |
(27,522 |
) |
Net loss margin percent |
|
(28 |
)% |
|
|
(55 |
)% |
|
|
(22 |
)% |
|
|
(42 |
)% |
Depreciation and amortization |
|
2,831 |
|
|
|
2,064 |
|
|
|
5,455 |
|
|
|
4,094 |
|
|
|
— |
|
|
|
14,503 |
|
|
|
— |
|
|
|
14,503 |
|
Stock-based compensation |
|
5,187 |
|
|
|
5,334 |
|
|
|
9,025 |
|
|
|
9,958 |
|
Finance income, net (a) |
|
(78 |
) |
|
|
(248 |
) |
|
|
(120 |
) |
|
|
(2,723 |
) |
Retention bonus expenses (b) |
|
40 |
|
|
|
148 |
|
|
|
132 |
|
|
|
445 |
|
Legal claims |
|
206 |
|
|
|
342 |
|
|
|
1,134 |
|
|
|
656 |
|
Severance cost |
|
415 |
|
|
|
— |
|
|
|
415 |
|
|
|
845 |
|
Other |
|
(14 |
) |
|
|
23 |
|
|
|
— |
|
|
|
272 |
|
Taxes on income |
|
7,827 |
|
|
|
1,335 |
|
|
|
11,003 |
|
|
|
4,159 |
|
Adjusted EBITDA |
$ |
5,872 |
|
|
$ |
4,542 |
|
|
$ |
10,268 |
|
|
$ |
4,687 |
|
Adjusted EBITDA margin percent |
|
15.5 |
% |
|
|
13.1 |
% |
|
|
13.7 |
% |
|
|
7.2 |
% |
(a) |
Finance income, 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 certain TVS employees. |
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW |
|||||||||||||||
|
Three months ended |
|
Six months ended |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities |
$ |
1,234 |
|
|
$ |
580 |
|
|
$ |
5,886 |
|
|
$ |
948 |
|
Loss on foreign exchange, net |
|
(161 |
) |
|
|
— |
|
|
|
(251 |
) |
|
|
— |
|
Capital expenditures |
|
(2,326 |
) |
|
|
(2,600 |
) |
|
|
(4,867 |
) |
|
|
(5,780 |
) |
Free Cash Flow |
$ |
(1,253 |
) |
|
$ |
(2,020 |
) |
|
$ |
768 |
|
|
$ |
(4,832 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806855808/en/
Investor
IR@innovid.com
Media
megan@innovid.com
Source: