Innovid Corp (CTV) 2023 Q1 法說會逐字稿

Greetings. Welcome to the Innovid Q1 2023 Earnings Conference Call. (Operator Instructions) Please note, this conference is being recorded. I will now turn the conference over to your host, John Williams. You may begin.

問候。歡迎參加 Innovid 2023 年第一季度收益電話會議。 （操作員說明）請注意，本次會議正在錄製中。現在我將會議交給主持人約翰·威廉姆斯。你可以開始了。

Thank you, operator. Before we begin, I'll remind you that today's call may contain forward-looking statements and that the safe harbor statement in today's earnings release available on our Investor Relations page also pertains to this call. Changes in our business, competitive landscape, technological or regulatory environment and other factors could cause actual results to differ materially from those expressed by the forward-looking statements made today.

謝謝你，接線員。在我們開始之前，我要提醒您，今天的電話會議可能包含前瞻性陳述，並且我們投資者關係頁面上今天收益發布中的安全港聲明也與本次電話會議有關。我們的業務、競爭格局、技術或監管環境以及其他因素的變化可能導致實際結果與今天前瞻性陳述所表達的結果存在重大差異。

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 may include non-GAAP financial measures. We use these non-GAAP measures in managing the business and believe they provide useful information for 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 presentation and earnings release available on our website and in our filings with the SEC.

我們的歷史結果並不一定代表未來的表現。因此，我們無法保證前瞻性陳述的準確性，也不承擔更新這些陳述的義務，除非法律要求。此外，今天的電話會議可能包括非公認會計準則財務指標。我們使用這些非公認會計準則衡量標準來管理業務，並相信它們為我們的投資者提供了有用的信息。這些措施應作為我們公認會計準則結果的補充而不是替代。在適當情況下，可以在我們網站上的收益報告和收益發布以及我們向 SEC 提交的文件中找到非 GAAP 衡量標準與其相應 GAAP 衡量標準的調節表。

Hosting today's call is Zvika Netter, Innovid's Co-Founder and CEO; Tanya Andreev-Kaspin, Innovid's CFO; and Tal Chalozin, Co-Founder and CTO, who will participate in our Q&A session.

今天的電話會議由 Innovid 聯合創始人兼首席執行官 Zvika Netter 主持。 Tanya Andreev-Kaspin，Innovid 首席財務官；聯合創始人兼首席技術官 Tal Chalozin 將參加我們的問答環節。

I'll now turn the call over to Zvika to begin.

我現在將把電話轉給茲維卡開始。

Thanks, John, and thank you all for joining the call today. I'll begin with some thoughts about the first quarter and some recent business updates and highlights. Our CFO, Tanya Andreev-Kaspin, will provide details on our Q1 performance and updated guidance followed by Q&A.

謝謝約翰，也感謝大家今天加入電話會議。我將從對第一季度的一些想法以及最近的一些業務更新和亮點開始。我們的首席財務官 Tanya Andreev-Kaspin 將提供有關我們第一季度業績的詳細信息和更新的指導，然後進行問答。

We were excited to share our preliminary results a few weeks ago and are even more thrilled to share our full Q1 results and update on our progress today. I'm proud of our team for winning new business and remaining focused on execution.

我們很高興在幾週前分享我們的初步結果，更興奮地分享我們第一季度的完整結果和今天的進展更新。我為我們的團隊贏得新業務並繼續專注於執行而感到自豪。

So to start, let's talk a bit about our quarter and the current environment. We beat both our guidance and consensus and are tracking ahead of where we hoped it would be when we last spoke back in February. Our Q1 revenue grew 18% year-over-year, and we posted year-over-year adjusted EBITDA improvement that exceeded our guidance. We remain very focused on profitable growth, and our Q1 results demonstrate that we're executing on our plan. Innovid benefits a linear shift to CTV. This is a crucial part of our story. Even in a down market for advertising, we can still grow because of our favorable secular trends in CTV and the critical nature of what we provide for our customers. We continue to have a great deal of success adding new customers.

首先，我們來談談我們的季度和當前的環境。我們超出了我們的指導和共識，並且正在朝著我們上次在二月份發表講話時所希望的方向前進。我們第一季度的收入同比增長 18%，調整後的 EBITDA 同比改善超出了我們的指導。我們仍然非常注重盈利增長，第一季度的業績表明我們正在執行我們的計劃。 Innovid 受益於向 CTV 的線性轉變。這是我們故事的關鍵部分。即使在廣告市場低迷的情況下，我們仍然可以實現增長，因為我們在 CTV 領域的長期趨勢良好，而且我們為客戶提供的服務至關重要。我們在增加新客戶方面繼續取得巨大成功。

Our core client growth exceeded 12% on a pro forma basis year-over-year. We expect that when the ad market bounces back, we'll see a growth multiplier effect as our larger customer base runs back up, and we deepen our relationships as they can activate more products and our cross-sell efforts pay off. To be clear, the overall advertising market is still challenged. While we saw some indications of modest firming in Q1, our visibility is still limited, and some of our existing customers have pulled back ad spending due to macro concerns.

按預計，我們的核心客戶同比增長超過 12%。我們預計，當廣告市場反彈時，隨著我們更大的客戶群回升，我們將看到增長乘數效應，並且我們深化我們的關係，因為他們可以激活更多產品，我們的交叉銷售努力得到回報。需要明確的是，整體廣告市場仍然面臨挑戰。儘管我們在第一季度看到了一些適度堅挺的跡象，但我們的能見度仍然有限​​，而且我們的一些現有客戶由於宏觀擔憂而縮減了廣告支出。

Specifically, looking at verticals, we've seen strength in telecom, CPG and auto, and weakness in tech, financial and insurance and consumer electronics. Importantly, advertising verticals tend to move in cyclical fashion. So we expect the slower growth areas to pick up as a macro trend improved. Now for a few additional quarter highlights. We continue to see success in adding new logos to our platforms. Exciting recent wins and expansions include PadSquad, (inaudible) We also announced several new partnerships, most notably with Walmart DSP.

具體來說，從垂直行業來看，我們看到電信、消費品和汽車領域的優勢，以及科技、金融和保險以及消費電子領域的弱勢。重要的是，廣告垂直行業往往以周期性方式移動。因此，我們預計隨著宏觀趨勢的改善，增長較慢的領域將會回升。現在介紹一些額外的季度亮點。我們繼續看到在我們的平台上添加新徽標的成功。最近令人興奮的勝利和擴展包括 PadSquad，（聽不清）我們還宣布了幾個新的合作夥伴關係，尤其是與沃爾瑪 DSP 的合作夥伴關係。

Looking ahead through the rest of 2023, we're focused on cross-selling for additional upside. I'm thrilled to report that we renewed and expanded our relationship with Verizon, continuing our partnership with video ad-serving, and DCO and adding InnovidXP measurement. We also recently expanded our relationship with Disney, building on our multiyear Hulu relationship to enhance measurement for more than 60 advertisers and (inaudible) including travel, telco and e-commerce across Disney addressable footprint. We're excited that Disney and others are adopting Innovid measurement solutions to further enhance their streaming strategies.

展望 2023 年剩餘時間，我們將專注於交叉銷售以獲得額外的優勢。我很高興地向大家報告，我們續簽並擴大了與 Verizon 的合作關係，繼續與視頻廣告服務和 DCO 合作，並添加了 InnovidXP 衡量功能。我們最近還擴大了與迪士尼的關係，以我們多年的 Hulu 關係為基礎，加強對 60 多家廣告商的衡量，並（聽不清）包括迪士尼可尋址足跡中的旅遊、電信和電子商務。我們很高興迪士尼和其他公司正在採用 Innovid 測量解決方案來進一步增強他們的流媒體策略。

For Innovid, scaling up further in measurement is a key long-term component of our strategy. More than a brand advertisers need a centralized platform and measurement capabilities to help them navigate this complex environment and its lack of standardization. For us, this is fantastic. It is aligned with our value proposition across ad-serving, measurement and personalization. And our continued growth in core clients shows just how much customers value what we bring to the table.

對於 Innovid 來說，進一步擴大衡量範圍是我們戰略的關鍵長期組成部分。廣告商不僅僅需要一個集中的平台和測量功能來幫助他們駕馭這個複雜的環境及其缺乏標準化的環境。對我們來說，這太棒了。它與我們在廣告服務、衡量和個性化方面的價值主張保持一致。我們核心客戶的持續增長表明客戶對我們提供的服務有多麼重視。

In summary, we had a solid quarter, including some key client wins and expansions and experienced some ad industry firming. We exited Q1 still cautious but are a bit more optimistic about the remainder of 2023. We remain confident in our position as the clear leader in building the critical technology infrastructure for the future of TV advertising and specifically CTV. I'll now hand the call over to our CFO, Tanya Andreev-Kaspin, to discuss our first quarter results and updated guidance. Tanya?

總而言之，我們度過了一個穩健的季度，包括一些關鍵客戶的贏得和擴張，並經歷了一些廣告行業的堅挺。我們在第一季度結束時仍然保持謹慎態度，但對 2023 年剩餘時間更加樂觀。我們仍然對自己在為電視廣告（特別是 CTV）的未來構建關鍵技術基礎設施方面的明顯領導者地位充滿信心。我現在將把電話轉交給我們的首席財務官 Tanya Andreev-Kaspin，討論我們第一季度的業績和更新的指導。坦尼婭？

Thank you, Zvika, and good morning, everyone. We are happy to report our Q1 results and are pleased with our outperformance. We beat the top range of the initial revenue guide by 5% and delivered positive adjusted EBITDA. Q1 revenue grew 18% year-over-year to $30.5 million on a reported basis or 1% on a pro forma basis. Measurement grew 1% on a pro forma basis and represented 23% of total revenue in Q1. Ad-serving and personalization services were up 1% year-over-year and represented 77% of total revenue in Q1.

謝謝你，茲維卡，大家早上好。我們很高興報告第一季度的業績，並對我們的優異表現感到滿意。我們超出了最初收入指導的最高範圍 5%，並實現了正調整 EBITDA。按報告計算，第一季度收入同比增長 18% 至 3,050 萬美元，按預計增長 1%。預估增長 1%，佔第一季度總收入的 23%。廣告服務和個性化服務同比增長 1%，佔第一季度總收入的 77%。

Innovid ad-serving and personalization revenue closely relates with ad impressions volume served through our platform. Q1 CTV volume grew 13% year-over-year and represented 54% of all video impressions, up from 49% in the first quarter of 2022. Mobile volume decreased by 9% and represented 34% of all video impressions, while desktop volume decreased by 10% and was 12% of all video impressions.

Innovid 廣告服務和個性化收入與通過我們平台提供的廣告展示量密切相關。第一季度 CTV 播放量同比增長 13%，佔所有視頻展示次數的 54%，高於 2022 年第一季度的 49%。移動播放量下降 9%，佔所有視頻展示次數的 34%，而桌面播放量則有所下降增加了 10%，佔所有視頻展示次數的 12%。

CTV demonstrated resilience and generated growth, while desktop and mobile, most acceptable to the challenging macro backdrop declined in the first quarter. We expect the growth of the CTV business to continue to outpace other channels, gaining even more share of total video impressions. On to our geographic breakdown. In Q1, U.S. revenue grew 18% on a reported basis and represented 91% of the total revenue. International revenue grew 14% year-over-year and represented 9% of quarterly revenue compared to 10% in Q1 last year.

CTV 表現出了韌性並實現了增長，而最能適應充滿挑戰的宏觀背景的桌面和移動設備在第一季度出現了下滑。我們預計 CTV 業務的增長將繼續超過其他頻道，在視頻總印像數中獲得更大的份額。關於我們的地理分佈。據報告，第一季度美國收入增長了 18%，佔總收入的 91%。國際收入同比增長 14%，佔季度收入的 9%，而去年第一季度為 10%。

Now moving on to expenses. Cost of revenues increased by $2.3 million year-over-year in Q1. The increase is primarily attributed to the TVSquared acquisition and stock-based compensation. Revenue less cost of revenues was 73% of revenue in Q1, down from 77% in Q1 of 2022, again, impacted mainly by TVSquared. We expect the legacy TVSquared business to eventually operate at or close to our pre-acquisition margin level.

現在轉向開支。第一季度收入成本同比增加 230 萬美元。這一增長主要歸因於 TVSquared 收購和股票薪酬。扣除收入成本後的收入佔第一季度收入的 73%，低於 2022 年第一季度的 77%，這同樣主要受到 TVSquared 的影響。我們預計傳統的 TVSquared 業務最終將達到或接近我們收購前的利潤水平。

Q1 operating expenses, excluding depreciation and amortization, were $36.7 million, up $1.7 million or 5% year-over-year. Most of the increase is due to the increase in stock-based compensation and the TVSquared acquisition, primarily offset by a reduction in onetime expenses, particularly the $4.4 million acquisition and IPO-related expenses we incurred in Q1 last year. Employee count at quarter end after Q1 reduction in force was 465, a 16% decrease compared to the previous year on a pro forma basis. Q1 net loss was $8.6 million or a per share loss of $0.06. Q1 adjusted EBITDA was positive $0.1 million, representing 0.5% of positive adjusted EBITDA margin versus a negative 12% in the first quarter last year.

第一季度運營費用（不包括折舊和攤銷）為 3,670 萬美元，同比增加 170 萬美元，即 5%。大部分增長是由於股票薪酬的增加和 TVSquared 收購的增加，主要被一次性費用的減少所抵消，特別是我們去年第一季度發生的 440 萬美元的收購和 IPO 相關費用。第一季度裁員後，截至季度末的員工人數為 465 人，按預計數據比上年減少 16%。第一季度淨虧損為 860 萬美元，每股虧損 0.06 美元。第一季度調整後 EBITDA 為正 10 萬美元，佔正調整 EBITDA 利潤率的 0.5%，而去年第一季度為負 12%。

Now on to cash and capital allocation. We are comfortable with our cash position and liquidity and expect our focus on profitable growth in 2023 to reduce our already modest cash burn and support our overall liquidity position. We ended the quarter with $45 million in cash and cash equivalents and $20 million in debt with an additional $30 million available on our revolver. Quarter-end common stock outstanding was 136.6 million shares.

現在討論現金和資本配置。我們對我們的現金狀況和流動性感到滿意，並預計我們對 2023 年盈利增長的關注將減少我們本已不大的現金消耗並支持我們的整體流動性狀況。本季度結束時，我們有 4500 萬美元的現金和現金等價物以及 2000 萬美元的債務，還有 3000 萬美元的可用左輪手槍。季末已發行普通股為 1.366 億股。

Finally, I would like to discuss our outlook. We are encouraged by our Q1 performance and are projecting a modestly improved outlook for the full year. For the second quarter of 2023, we expect total revenue in the range of $31 million to $33 million, representing negative 6% to 0% year-over-year growth. We expect Q2 adjusted EBITDA in the range of 0 to positive $2 million. Two additional reminders. First, our outlook includes the full expense benefit of our recent 10% headcount reduction completed in Q1. Second, beginning in Q2, we will no longer be breaking out as reported versus pro forma as we will be letting a full year since the TVSquared acquisition.

最後，我想談談我們的展望。我們對第一季度的業績感到鼓舞，並預計全年前景將略有改善。 2023 年第二季度，我們預計總收入在 3100 萬美元至 3300 萬美元之間，同比負增長 6% 至 0%。我們預計第二季度調整後 EBITDA 在 0 至正 200 萬美元之間。兩個額外的提醒。首先，我們的前景包括我們最近在第一季度完成的 10% 員工削減所帶來的全部費用收益。其次，從第二季度開始，我們將不再按照報告與預計數據進行比較，因為自 TVSquared 收購以來我們將出租一整年的數據。

Full year outlook. We are increasing our revenue guidance for the full year to slightly higher than year-over-year versus our previous guidance of flat year-over-year. We expect a full year adjusted EBITDA margin of at least 5%, an improvement versus our previous full year guidance. We're encouraged by the current business momentum and in the economic environment improves, we believe we could exceed the profitability expectations we have already factored into our guidance.

全年展望。我們將全年收入指導上調至略高於去年同期，而之前的指導則與去年同期持平。我們預計全年調整後 EBITDA 利潤率至少為 5%，比我們之前的全年指引有所改善。我們對當前的業務勢頭感到鼓舞，並且在經濟環境改善的情況下，我們相信我們可以超出我們已經納入指導的盈利預期。

In conclusion, we are pleased with our first quarter results and remain focused on driving profitable growth. Innovid is well positioned strategically and financially to continue building the critical technology infrastructure for the future of TV advertising and driving value for our customers and shareholders. Thank you again for joining the call. Zvika, Tal and I are now ready to answer your questions. Operator, please begin the Q&A session.

總之，我們對第一季度的業績感到滿意，並將繼續專注於推動盈利增長。 Innovid 在戰略和財務上處於有利地位，可以繼續為電視廣告的未來構建關鍵技術基礎設施，並為我們的客戶和股東創造價值。再次感謝您加入通話。茲維卡、塔爾和我現在準備回答你們的問題。接線員，請開始問答環節。

Thank you. (Operator Instructions) Our first question comes from the line of Laura Martin with Needham.

謝謝。 （操作員說明）我們的第一個問題來自勞拉·馬丁（Laura Martin）與李約瑟（Needham）的對話。

I guess I have a couple. I guess I'm most interested, Zvika, in generative AI. I think that's all the raise right now. I'm very interested in how you think generative AI affects your business -- investments in terms of the cost side, but also how you think it a revenue growth and productivity over the next several years?

我想我有幾個。 Zvika，我想我最感興趣的是生成人工智能。我想這就是現在所有的加薪。我對您認為生成式人工智能如何影響您的業務非常感興趣——在成本方面的投資，以及您如何看待未來幾年的收入增長和生產力？

Sure, Laura. Thanks for the question. Generative AI, as you remember, I think you also attended our investor -- New York Stock Exchange Investor Day back, I believe, in November, where we already presented before generative AI was all the range, where AI fits into our platform and how it's actually already in production improving results. What's unique about Innovid, AI operates on data, right? Data patterns, inputs and outputs. So basically, because of the ad server, we deliver all the CTV ads through creative optimization and creative, we can change the creative as we serve it. And then, of course, measurement, we see how many households will reach at what frequency and most importantly, the outcome.

當然，勞拉。謝謝你的提問。生成式人工智能，正如你所記得的，我想你也參加了我們的投資者 - 紐約證券交易所投資者日回來，我相信，在 11 月，我們已經在生成式人工智能之前介紹了所有範圍，人工智能在哪裡適合我們的平台以及如何它實際上已經投入生產並改善了結果。 Innovid 的獨特之處在於，人工智能基於數據進行操作，對嗎？數據模式、輸入和輸出。所以基本上，由於有了廣告服務器，我們通過創意優化和創意來投放所有的 CTV 廣告，我們可以在提供服務時更改創意。然後，當然，我們會進行衡量，看看有多少家庭會以什麼頻率到達，最重要的是，結果。

What's exciting is when you connect the 3 pieces of the system with a brand that can see what's going on and based on the customers' goals, can optimize the performance. That is something not just by targeting, which is the medium part, but actually optimizing the creative, optimizing reach and frequency. So this is something that's already in the system, obviously, generative AI in terms of the next generation that we're seeing now can help with the creative, creative versioning, creative -- generating both text and images for our (inaudible). And some exciting ideas that we're looking at right now on the measurement side, insights. So overall, it's an excellent thing that's going to push us further and make the job of our customers much more efficient.

令人興奮的是，當您將系統的 3 個部分與一個品牌連接起來時，該品牌可以看到正在發生的情況並根據客戶的目標優化性能。這不僅僅是通過目標定位（中間部分）來實現的，而是實際上優化創意、優化覆蓋範圍和頻率。因此，這是系統中已經存在的東西，顯然，我們現在看到的下一代生成人工智能可以幫助我們進行創意、創意版本控制、創意——為我們生成文本和圖像（聽不清）。我們現在在測量方面正在研究一些令人興奮的想法，見解。總的來說，這是一件很棒的事情，它將推動我們走得更遠，並使我們客戶的工作更加高效。

Fantastic. And then I heard you talk about the Verizon went on measurement and the Disney comments on measurement. Could you talk about what you are learning now in terms of companies that are adopting your measurement solution? What do they like? What do they need? What kinds of things get to change? Can you tell us -- just bring us up to date on what you're learning about measurements and where you have to go from here in terms of integrating measurements into your go-to-market strategy?

極好的。然後我聽到你談論 Verizon 進行的測量以及迪士尼對測量的評論。您能否談談您現在在採用您的測量解決方案的公司方面學到了什麼？他們喜歡什麼？他們需要什麼？什麼樣的事情會發生改變？您能否告訴我們——請向我們介紹一下您正在了解的有關測量的最新知識，以及在將測量集成到您的上市策略方面您必須採取哪些行動？

Sure. So basically, what drove our TVSquared acquisition a few months after we went public, was years of working together with our largest customers, the largest brands out there, and Verizon is definitely a great example. And what they told us back then is while they love our CTV Insight, the data that we generate from the ad server and they can see a lot of insights around the CTV portion, what they really wanted to see is cross-platform, looking both linear because linear television broadcast TV ads are here to stay for at least another 5, 10, 15 years. And as people migrate to CTV.

當然。所以基本上，我們上市幾個月後推動我們收購 TVSquared 的原因是與我們最大的客戶、最大的品牌多年的合作，而 Verizon 絕對是一個很好的例子。他們當時告訴我們的是，雖然他們喜歡我們的 CTV Insight，即我們從廣告服務器生成的數據，他們可以看到有關 CTV 部分的很多見解，但他們真正希望看到的是跨平台，同時查看線性，因為線性電視廣播電視廣告至少還會再存在 5 年、10 年、15 年。隨著人們轉向 CTV。

So the big view that they wanted to see is a combined view of both the linear television and the connected TV. And that's what drove the acquisition. It was more than a year ago. Since then we integrated the teams, integrated the product and launched InnovidXP, which is in a single platform that you can see, reach frequency, how many households you reach and what frequency and of course, the more important point is the outcome, what outcome that grow. So that's the promise of InnovidXP and this is exactly what the Verizon is -- what -- if you recall, TVSquared was a company that was focusing more on direct-to-consumer smaller-type customers. And with Innovid, we came and refocus on the largest TV advertisers out there and again Verizon is a good example. That took some time in terms of introducing the product and then testing and now it's in fully in production. So that the conviction was there years ago, and now we're delivering in that promise and Verizon using not just our ad server and DCO, but also adding the measurement component is kind of the Holy Grail. This is what we would love to see from all of our customers. And this is, by the way, arising directly, and it deals with Verizon.

因此，他們希望看到的大觀點是線性電視和聯網電視的結合。這就是推動收購的原因。那是一年多前的事了。從那時起我們整合了團隊，整合了產品，推出了InnovidXP，它在一個平台上你可以看到，到達頻率，你到達了多少個家庭，什麼頻率，當然，更重要的一點是結果，什麼結果那個成長。這就是 InnovidXP 的承諾，這也正是 Verizon 的本質——如果你還記得的話，TVSquared 是一家更專注於直接面向消費者的小型客戶的公司。通過 Innovid，我們重新關注最大的電視廣告商，Verizon 就是一個很好的例子。引入產品和測試花了一些時間，現在已經完全投入生產。因此，多年前就有了這樣的信念，現在我們正在兌現這一承諾，Verizon 不僅使用我們的廣告服務器和 DCO，而且還添加了測量組件，這就是聖杯。這是我們希望從所有客戶那裡看到的。順便說一句，這是直接產生的，並且與 Verizon 打交道。

Disney is another great example on the sales side. So the Disney is actually a publisher, one of the largest media owners in the world, looking to do the same thing. Cross-platform plus outcome. It's a very unique integration because it's always on and it's connected to the first-party data that is very unique. And a pause there because they're still a long -- but both of these are very, I would say, from Innovid perspective, very iconic large deals, and we expect to see more like this throughout the year.

迪士尼是銷售方面的另一個很好的例子。所以迪士尼實際上是一家出版商，世界上最大的媒體所有者之一，希望做同樣的事情。跨平台加成果。這是一個非常獨特的集成，因為它始終處於開啟狀態，並且連接到非常獨特的第一方數據。在這裡暫停一下，因為它們仍然很長——但我想說，從 Innovid 的角度來看，這兩筆交易都是非常具有標誌性的大型交易，我們預計全年會看到更多這樣的交易。

Our next question comes from the line of Andrew Boone with JMP Securities.

我們的下一個問題來自 JMP 證券的安德魯·布恩 (Andrew Boone)。

Matt, on for Andrew. Maybe first, just taking a step back, can you guys just talk to us long term about your philosophy around pricing? And then also great to see positive adjusted EBITDA in 1Q guide calling for expanding margins in 2Q. Can you guys just talk about cost controls and how you're thinking about investments for the remainder of the year?

馬特（Matt）代表安德魯（Andrew）發言。也許首先，退後一步，你們能和我們長期談談你們的定價理念嗎？然後也很高興看到第一季度指南中調整後的 EBITDA 呈正值，要求第二季度擴大利潤率。你們能否談談成本控制以及您如何考慮今年剩餘時間的投資？

So on the -- on pricing, we definitely feel that there is room for us to explore unique and different and can further expand our pricing currently from the history of the ad server, this is where we started, it's a very, I would say, rigid fixed price that was actually set by Google many, many years ago as kind of almost the standard at the lowest level possible. So we started from there as we gain more and more market share. But as we're now CTV becomes a bigger part of the company as we're investing in innovation in DCO and measurement, we definitely feel we can present a more flexible pricing structure and then in some cases, also rewarding minimum commitments, annual committed deals and things like that. Definitely in the mindset of -- you mentioned the margins, the free cash flow and all that stuff.

因此，在定價方面，我們絕對認為我們有探索獨特和不同的空間，並且可以從廣告服務器的歷史進一步擴展我們目前的定價，這就是我們的起點，我想說，這是一個非常，嚴格的固定價格實際上是由谷歌很多很多年前設定的，幾乎是最低水平的標準。因此，我們從那裡開始，獲得了越來越多的市場份額。但是，隨著我們現在投資 DCO 和測量方面的創新，CTV 已成為公司的重要組成部分，我們絕對認為我們可以提供更靈活的定價結構，然後在某些情況下，還獎勵最低承諾、年度承諾交易之類的事情。絕對是在心態上——你提到了利潤、自由現金流和所有這些東西。

So we believe as our deals with large brands become -- are entering in the millions, the multimillions a year with as we transact more and more with brands directly, we believe there are more models that come from the enterprise software world that we can introduce that are somewhat different than the models of that media companies is with agency. So that's on the pricing. On the EBITDA, we are very proud of this. I mean we always said that we have a long-term goal to get to 30%, 35% EBITDA within a couple of years.

因此，我們相信，隨著我們與大品牌的交易數量達到數百萬、每年數百萬，隨著我們直接與品牌的交易越來越多，我們相信我們可以引入更多來自企業軟件世界的模型這與媒體公司的代理模式有些不同。所以這就是定價。就 EBITDA 而言，我們對此感到非常自豪。我的意思是，我們總是說我們的長期目標是在幾年內達到 30%、35% 的 EBITDA。

Obviously, the acquisition in the down market last year was -- made it more challenging to see our focus on the EBITDA, and we're very happy there in Q1, and we'll expect to see it in Q2, and we expect to see the improvement throughout the year is constantly controlling our cost and giving very clear KPIs in terms of how we progress on both EBITDA and free cash flow. While ideally, the top line grows, what you should see is that a lot of that growth is going to go all the way to the bottom line and improve EBITDA. As Tanya mentioned, we made about a 10% headcount reduction in -- earlier in the year. This is opposed to acquisitions so it's the right thing to do anyway. And what we're making sure is the control continues to control that cost. We already have 3 products. They were in market, in production. We're focusing more on existing customers and upsell like Disney and Verizon, both of them are existing. All of these things will ideally allow us to grow the top line but definitely maintain the growth on the bottom line.

顯然，去年在低迷市場的收購使我們對 EBITDA 的關注變得更具挑戰性，我們對第一季度非常滿意，我們預計在第二季度看到這一點，我們預計看到全年的改進是不斷控制我們的成本，並就我們如何在 EBITDA 和自由現金流方面取得進展提供非常明確的 KPI。雖然理想情況下，收入會增長，但你應該看到的是，大部分增長將一直影響利潤並提高 EBITDA。正如 Tanya 提到的，我們在今年早些時候削減了約 10% 的員工人數。這與收購相反，所以無論如何這是正確的做法。我們要確保的是控制措施能夠繼續控製成本。我們已經有 3 個產品。它們在市場上，在生產中。我們更關注現有客戶和追加銷售，例如迪士尼和威瑞森，這兩家公司都是現有的。所有這些都將理想地幫助我們增加收入，但肯定會保持利潤的增長。

Our next question comes from the line of Shweta Khajuria with Evercore.

我們的下一個問題來自 Shweta Khajuria 和 Evercore 的關係。

This is (inaudible) asking a question for Shweta Khajuria. Could you elaborate a little bit more on how did advertisers demand trend through the quarter? And then what are you hearing from advertisers as you think about the rest of the year?

這是（聽不清）向 Shweta Khajuria 提出的問題。您能否詳細說明一下本季度廣告商的需求趨勢？那麼當您想到今年剩下的時間時，您從廣告商那裡聽到了什麼？

Can you repeat the question? Is that advertiser something through the quarter, I couldn't hear.

你能重複一下這個問題嗎？那個廣告商整個季度都有什麼活動嗎，我聽不到。

Advertiser demand trend.

廣告商需求趨勢。

You mentioned through the quarter and the second question?

您提到了整個季度和第二個問題？

And I'm just wondering what are you hearing from advertisers when you think about the rest of the year? What's your expectation?

我只是想知道當你想到今年剩下的時間時，你從廣告商那裡聽到了什麼？你的期望是什麼？

So this is -- what we're seeing is especially and as you can see also from the results, and we're now more optimistic than we were a couple of months ago. I mean we're definitely in an economical -- challenging economical environment, that we see that in Innovid and other companies at the same time, we're definitely seeing improvement throughout the quarter, and we're seeing that improvement going into Q2. So it's definitely not going back to normal. So that's why we're being cautious with our guidance because situation can change. But we're definitely feeling a more -- slightly more optimistic based on what we're seeing.

所以這就是——我們所看到的尤其是，正如你也可以從結果中看到的那樣，我們現在比幾個月前更加樂觀。我的意思是，我們肯定處於一個經濟的、充滿挑戰的經濟環境中，我們同時看到 Innovid 和其他公司，我們肯定會看到整個季度的改善，而且我們看到這種改善進入第二季度。所以絕對不會恢復正常。這就是為什麼我們對我們的指導持謹慎態度，因為情況可能會發生變化。但根據我們所看到的情況，我們確實感到更加樂觀。

The customer demand, so this is just -- this is specifically on spend. The actual demand for our products has never stopped. As you heard, we closed on the ad server new customers like [UPS] and other existing customers buy more products from us. And overall, people spend more on CTV. So while overall media spend is shrinking because of the growth of CTV that even in this difficult environment, grew 13% in Q1. And now it's more than -- for the first time, it's more than half of the company. So half the 54% of all the ads we delivered in Q1 were on CTV. So CTV continues to grow. Customers continue to buy ad servers or additional products from us. So from that perspective, we're very optimistic. I would say to your question about advertising in general, like any other business, people are -- companies are cautious and are spending very diligently and where they actually see a return, and we believe that's a great thing for adopting our platform.

客戶的需求，所以這只是——這是專門針對支出的。對我們產品的實際需求從未停止過。正如您所聽到的，我們關閉了廣告服務器，像 [UPS] 這樣的新客戶和其他現有客戶從我們這裡購買了更多產品。總體而言，人們在有線電視上的花費更多。因此，雖然整體媒體支出因 CTV 的增長而萎縮，但即使在這種困難的環境下，第一季度仍增長了 13%。現在它已經超過了——這是第一次，超過了公司的一半。因此，我們在第一季度投放的 54% 廣告中，有一半是在 CTV 上投放的。因此，CTV 持續增長。客戶繼續從我們這裡購買廣告服務器或其他產品。所以從這個角度來看，我們非常樂觀。我想說的是，關於你關於廣告的問題，就像任何其他企業一樣，人們非常謹慎，並且非常勤奮地花錢，並且他們實際上看到了回報，我們相信這對於採用我們的平台來說是一件好事。

Our next question comes from the line of Shyam Patil with Susquehanna.

我們的下一個問題來自希亞姆·帕蒂爾 (Shyam Patil) 與薩斯奎哈納 (Susquehanna) 的關係。

This is Jared on for Shyam. Thanks for taking the question. Thanks for all the color on how you're thinking about profitability for the year and managing the cost base. Towards the end of the prepared remarks, Tanya, you mentioned that we could see a potential acceleration in growth in the second half flowing through to EBITDA margin expansion. How are you thinking through the trade-off there between margin expansion and areas of potential stepped up investment expense areas that you might want to lean back into to the extent that we do see an improving environment.

這是賈里德替補席亞姆。感謝您提出問題。感謝您對如何考慮今年的盈利能力和管理成本基礎的所有顏色。在準備好的發言即將結束時，Tanya，您提到我們可能會看到下半年增長的潛在加速，從而帶來 EBITDA 利潤率的擴張。您如何考慮利潤率擴張和潛在增加的投資支出領域之間的權衡，您可能希望在我們確實看到環境改善的情況下重新投入這些領域。

Thank you for the question. Great question. So when we prepared the plan for 2023, we set a very clear financial goal for the year to be focused on profitable growth. In the economical growth in an uncertain macro situation as we are all experiencing right now, we believe we need to focus on what we can control. And those are our investments, our investments in R&D, our investments in sales and marketing, but we have to make it in the most efficient way. And that's what we are seeing. We already delivered Q1, which is profitable, and we indicated to the market that we will be improving our profitability for the year, delivering 5% at least adjusted EBITDA margin. And that what we're absolutely staying focused on right now. We don't want to be distracted by the economical downturn and such. We think that, that's what's important for us. And as you could see in our P&L, we still invest quite substantially in R&D and new technology.

感謝你的提問。很好的問題。因此，當我們準備2023年的計劃時，我們為這一年設定了非常明確的財務目標，專注於盈利增長。正如我們現在所經歷的那樣，在不確定的宏觀形勢下的經濟增長中，我們認為我們需要關注我們可以控制的事情。這些是我們的投資，我們對研發的投資，我們對銷售和營銷的投資，但我們必須以最有效的方式進行投資。這就是我們所看到的。我們已經實現了第一季度的盈利，並且我們向市場表明，我們將提高今年的盈利能力，調整後的 EBITDA 利潤率至少達到 5%。這也是我們現在絕對關注的重點。我們不想因經濟衰退等問題而分心。我們認為這對我們來說很重要。正如您在我們的損益表中看到的那樣，我們仍然在研發和新技術方面進行了大量投資。

Great. And then one more, if I may. I was hoping that we could just dig in a bit further on how you guys are thinking about the retail media opportunity broadly at this point? And then that recently announced Walmart partnership, how you're thinking through the various elements from personalization to ad-serving and anything else that you might call out there?

偉大的。如果可以的話，再來一張。我希望我們能進一步深入了解你們目前如何廣泛思考零售媒體機會？然後，最近宣布的沃爾瑪合作夥伴關係，您如何考慮從個性化到廣告服務以及您可能會提到的其他內容的各種要素？

Sure. I'll have Tal, our CTO, take that. We're definitely seeing really great progress on that front. Tal?

當然。我會讓我們的 CTO Tal 接手。我們確實看到了這方面的巨大進展。塔爾？

Sure. Thanks, Jared. So yes, we definitely see retail media as a massive opportunity. I think in general, if you follow the industry, and I'm sure you do. Connected Television is the main focus and the main growth driver along with retail media as a tremendous opportunity. We think that there's a couple of ways that we play in the retail media space, a lot around ad-serving and allowing marketers to really buy media [everywhere] across all places and leverage data. And the second one is using creative personalization, which plays a massive role when you talk to consumer packaged goods or other type of advertisers that have multiple products in their portfolio and can leverage retail media networks as data to optimize the creative and align the message to specific users.

當然。謝謝，賈里德。所以，是的，我們確實將零售媒體視為一個巨大的機會。我認為總的來說，如果你關注這個行業，我相信你會關注的。聯網電視是主要焦點和主要增長動力，零售媒體則是巨大的機遇。我們認為，我們在零售媒體領域有多種方式，主要圍繞廣告服務，並允許營銷人員真正在所有地方[無處不在]購買媒體並利用數據。第二個是使用創意個性化，當您與消費品或其他類型的廣告商交談時，創意個性化發揮著重要作用，這些廣告商在其產品組合中擁有多種產品，並且可以利用零售媒體網絡作為數據來優化創意並將信息與特定用戶。

So we think that -- so far, we've seen a lot of progress on retail media in the industry around targeting, and we think that the next generation a lot that we would see right now, this is where we put a lot of efforts is around creative messaging and personalization. We're very excited about our partnership with Walmart DSP that we announced this quarter. And we think that -- but again, as I said, the retail media networks is retail media in general, is a massive opportunity for our industry and for us to capitalize on.

因此，我們認為，到目前為止，我們已經看到該行業零售媒體在定位方面取得了很多進展，我們認為我們現在會看到下一代很多，這就是我們投入大量資金的地方努力圍繞創意信息傳遞和個性化。我們對本季度宣布的與 Walmart DSP 的合作夥伴關係感到非常興奮。我們認為，但正如我所說，零售媒體網絡總體上是零售媒體，對於我們的行業和我們來說是一個巨大的機會。

And our next question comes from the line of Matthew Cost with Morgan Stanley.

我們的下一個問題來自 Matthew Cost 與摩根士丹利的對話。

When we look at the first quarter and just the top line beat, you mentioned the macro situation firming up, but there's still real uncertainty into the rest of the year. Is -- was the outperformance versus your guidance in the first quarter, a function of kind of that firming up macro? Or were there some key products that outperformed or some wins that you would call out as kind of the driver of the beat.

當我們看第一季度和營收增長時，您提到宏觀形勢趨於穩定，但今年剩餘時間仍然存在真正的不確定性。第一季度的表現優於您的指導，是宏觀經濟趨緊的結果嗎？或者是否有一些關鍵產品表現出色，或者是否有一些你會稱之為推動力的勝利。

And then just secondly, thinking out to the rest of the year and the full year guidance. When we think about the competitive landscape, do you -- does your guidance for the year as you see market growth this year imply maintaining share, gaining share or maybe seeding some share?

其次，思考今年剩餘時間和全年指導。當我們考慮競爭格局時，您認為今年的市場增長是否意味著保持份額、增加份額或可能播種一些份額？

Sure. So in terms of driving the outperformance, it's definitely the performance of the company, the KPIs and what's -- what basically brought it to the level of is, it's kind of the softness in the market. But we're definitely adding more. If you think about it, just -- and I'll give you kind of a high-level overview, almost all the KPIs that drive our business that are CTV-related are up into the right, right? So it's like a bigger part of the company is CTV and a smaller part of the company's mobile and desktop video. We have -- there are more -- there's more content out there that is ad based. People are watching more ad-based content.

當然。因此，就推動業績出色而言，絕對是公司的業績、關鍵績效指標以及市場的疲軟，基本上使其達到了這樣的水平。但我們肯定會增加更多。如果你想一想，我會給你一個高層次的概述，幾乎所有推動我們與 CTV 相關的業務的 KPI 都是正確的，對嗎？因此，公司的大部分業務是 CTV，而一小部分業務是移動和桌面視頻。我們有——還有更多——還有更多基於廣告的內容。人們正在觀看更多基於廣告的內容。

So overall, the supply, the impressions out there are constantly increasing. Brands spend more while brands are cutting overall budgets in many cases, they spend more money on CTV because more people. So you have 2 factors. One is maybe calling down, but the other one is increasing fast in that CTV. So that's causing the CTV to grow 13%. So all of Innovid was 100% CTV, you'll see a much faster growth. And this will happen over time.

總的來說，供應量和印像都在不斷增加。在很多情況下，品牌在削減總體預算的同時，也會花更多的錢，因為更多的人在 CTV 上花更多的錢。所以你有兩個因素。一個可能正在呼叫下降，但另一個在該 CTV 中正在快速增加。因此，CTV 增長了 13%。因此，Innovid 的全部都是 100% CTV，您會看到更快的增長。隨著時間的推移，這將會發生。

On top of it, as we added today, we added, we were gaining share. So especially around the ad server where we gain share out of Google from Google Campaign Manager that for the last 5 years did not change. It all goes mostly in one direction. We gained share. Overall, we gained share constantly and it's usually out of the platform of Google. So there's no reason that in the foreseeable future from our perspective, we don't expect to see a dramatic change in trend. So you should expect every quarter to hear about more and more customers that join our platform and more and more customers that are using more than one product in Innovid.

最重要的是，正如我們今天補充的，我們補充說，我們正在獲得份額。因此，特別是在廣告服務器方面，我們從 Google Campaign Manager 獲得了 Google 的份額，這一點在過去 5 年裡沒有改變。一切大多朝一個方向發展。我們獲得了份額。總的來說，我們不斷獲得份額，而且通常是在谷歌平台之外。因此，從我們的角度來看，在可預見的未來，我們沒有理由不期望看到趨勢發生巨大變化。因此，您應該預計每個季度都會聽到越來越多的客戶加入我們的平台，以及越來越多的客戶在 Innovid 中使用多種產品。

So all this in the model is fixed volume based. So all this joy should create a much faster growth on the top line. What's calling that is the overall macroeconomic environment and spend. Our cost is not there because that's the one thing we don't control. We control all the other factors, and we are very bullish on them, and we keep investing on them. The -- what we're looking for is once the market starts to recover, much steeper growth on the top line that will flow to the bottom line. So that's basically what we're looking for. But in terms of share expansion and selling more products to more customers, that did not change and continues to grow. In terms of the competitive landscape, can you repeat the question? I wrote it here, but I'm not sure I got the full question.

因此模型中的所有這些都是基於固定體積的。因此，所有這些喜悅應該會帶來更快的收入增長。這就是整體宏觀經濟環境和支出。我們的成本不存在，因為這是我們無法控制的一件事。我們控制所有其他因素，我們非常看好它們，並且繼續投資它們。我們所期待的是，一旦市場開始復蘇，營收將大幅增長，並將流向利潤。這基本上就是我們要尋找的。但就份額擴張和向更多客戶銷售更多產品而言，這一點並沒有改變，而且還在繼續增長。關於競爭格局，您能重複一下這個問題嗎？我寫在這裡，但我不確定我是否得到了完整的問題。

Yes. The question was -- you really kind of answered it on (inaudible) perspective. Yes.

是的。問題是——你確實從（聽不清）的角度回答了這個問題。是的。

Yes. Yes. So that's -- from a platform perspective, we don't see a reason why we will see a change in trend. In a way, actually difficult environments like this, encourage customers, brands to look at every dollar they spend and try and look to optimize it. And if I'm connected to the question lower asked about AI, Generative AI. We're just using technology. Technology is a great way to understand the outcomes, what are you getting when you're spending $100 million on a campaign in television? How many household it, what frequency, what type of action it created and constantly optimize.

是的。是的。因此，從平台的角度來看，我們看不出趨勢會發生變化的原因。在某種程度上，像這樣的實際困難環境鼓勵客戶、品牌關注他們花費的每一美元並嘗試優化它。如果我與下面提出的關於人工智能、生成人工智能的問題有關。我們只是使用技術。技術是了解結果的好方法，當您在電視宣傳活動上花費 1 億美元時，您會得到什麼？有多少戶，什麼頻率，什麼類型的動作，它創造並不斷優化。

So in an environment like this, is actually good for closing new business and absolutely new product. It's less good in terms of overall spend, but we all know that this is a temporary thing. So it will go up dramatically.

因此，在這樣的環境中，實際上有利於關閉新業務和絕對新產品。就總體支出而言，情況不太好，但我們都知道這是暫時的。所以它會急劇上升。

(Operator Instructions) And it looks like we have reached the end of the question-and-answer session. And we have -- and this also concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

（操作員說明）看來我們的問答環節已經結束了。我們已經——今天的會議也結束了，你現在可以掛斷電話了。感謝您的參與。