Innovid Corp (CTV) 2024 Q3 法說會逐字稿

Greetings, and welcome to the Innovid Third Quarter 2024 Earnings Call. (Operator Instructions)

您好，歡迎參加 Innovid 2024 年第三季財報電話會議。（操作員指示）

As a reminder, this conference is being recorded.

提醒一下，本次會議正在錄製中。

It’s now my pleasure to introduce, Lauren Hartman with Investor Relations. Thank you. You may now begin.

現在我很高興介紹投資者關係部的勞倫·哈特曼。謝謝。現在你可以開始了。

Thank you, operator. Before we begin, I’ll remind you that today’s call may contain forward-looking statements and that the forward-looking statement disclaimer included in today’s earnings release available on our Investor Relations page also pertains to this call.

謝謝您，接線生。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的收益報告中包含的前瞻性陳述免責聲明也適用於本次電話會議。

These forward-looking statements may include without limitation, predictions, expectations, targets, or estimates regarding our anticipated financial performance, business plans and objectives, future events and developments, 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.

這些前瞻性陳述可能包括但不限於有關我們預期的財務表現、業務計劃和目標、未來事件和發展、業務變化、競爭格局、技術或監管環境以及其他因素的預測、期望、目標或估計，這些因素可能導致實際結果與今天所作的前瞻性陳述所表達的結果有重大差異。

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.

我們的歷史表現不一定能代表未來的表現，因此，我們無法保證前瞻性陳述的準確性，並且除非法律要求，否則不承擔更新這些陳述的義務。

In addition, today’s call will include non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margins, free cash flow and net cash. We use these non-GAAP measures in managing the business and believe they provide useful information to our investors.

此外，今天的電話會議將包括非公認會計準則財務指標，包括調整後的 EBITDA、調整後的 EBITDA 利潤率、自由現金流和淨現金。我們在管理業務時使用這些非公認會計準則指標，並相信它們為我們的投資者提供了有用的信息。

These measures should be considered in addition to and not as a substitute for our GAAP results. Reconciliations of the non-GAAP measures to those corresponding GAAP measures, where appropriate, can be found in the earnings release available on our website and in our filings with SEC.

這些措施應被視為我們 GAAP 結果的補充，而不是替代。非 GAAP 指標與相應 GAAP 指標的對帳表（如適用）可在我們網站上的收益報告和我們向美國證券交易委員會提交的文件中找到。

Hosting today’s call are Zvika Netter, Innovid’s Co-Founder and CEO; as well as Anthony Callini, Innovid’s CFO, both of whom will participate in the 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 和 Innovid 財務長 Anthony Callini 主持，他們兩人都將參加問答環節。

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

現在我將把電話交給 Zvika 開始。

Thanks, Lauren, and welcome everyone to our 2024 third quarter earnings call. Today, I’ll review our third quarter results and provide an update regarding ongoing strategic initiatives and progress in the market. I’ll then turn the call over to our Chief Financial Officer, Tony Callini, who will provide further details with respect to our Q3 results and full year 2024 outlook, followed by Q&A.

謝謝，勞倫，歡迎大家參加我們 2024 年第三季財報電話會議。今天，我將回顧我們第三季的業績，並提供有關正在進行的策略舉措和市場進展的最新資訊。然後，我將把電話轉給我們的財務長 Tony Callini，他將提供有關我們第三季業績和 2024 年全年展望的更多詳細信息，然後進行問答。

Revenue for the third quarter grew 6% year-over-year to $38 million. I’ll explain the drivers momentarily. We continue to focus on driving revenue growth, while expanding margins. Adjusted EBITDA grew 29% to $8 million, and a 22% adjusted EBITDA margin this quarter. CTV ad serving and personalization revenue led the quarterly growth with a 12% year-over-year improvement and CTV share of total video impressions reach a new record high of 58%.

第三季營收年增 6% 至 3,800 萬美元。我馬上會解釋一下這些驅動因素。我們持續致力於推動營收成長，同時擴大利潤率。本季調整後的 EBITDA 成長 29% 至 800 萬美元，調整後的 EBITDA 利潤率為 22%。CTV 廣告服務和個人化收入引領季度成長，年增 12%，CTV 在總影片展示量中的份額達到 58% 的新高。

We’re encouraged that the CTV numbers continue to increase, which gives us confidence in the future growth prospects of connected television. The growth we’re seeing in CTV is fueled by the continuous shift of our clients’ budget from linear to connected TV, and by more ad-supported platforms existing and new gaining scale. While we saw strong CTV growth, this growth was asserted by lower mobile impressions, which were down by 2%, and desktop video impressions, which were also weaker than expected, up only 5%.

我們很高興看到連網電視數量的持續成長，這讓我們對連網電視的未來成長前景充滿信心。我們在 CTV 中看到的成長是由客戶的預算從線性電視向聯網電視的持續轉變以及更多現有的和新的廣告支援平台的規模不斷擴大所推動的。雖然我們看到了強勁的 CTV 成長，但這種成長是由行動展示次數下降（下降了 2%）和桌上型影片展示次數下降（也低於預期，僅成長了 5%）所導致的。

Total revenue by the third quarter came in below our expectations as a result of three main factors. First, when inflated demand for media in the market, driven by the influx of political ads for the US election, many brands loathe their ad spending during this period, and at a greater than anticipated rate.

由於三個主要因素，第三季的總收入低於我們的預期。首先，當美國大選政治廣告大量湧入，導致市場對媒體的需求膨脹時，許多品牌厭惡在此期間的廣告支出，而且支出速度高於預期。

Since our customers are brand, and not political advertisers, brand spending softened up to the election due to political dollars crowding out the traditional spend. There were more dollars that were spent in this election cycle than ever before.

由於我們的客戶是品牌廣告商，而不是政治廣告商，由於政治資金擠佔了傳統支出，品牌支出在選舉期間有所減少。這次選舉所花費的資金比以往任何時候都多。

This pressured our growth this quarter, and was the primary reason for the slower revenue growth. While the election cycle now behind us were anticipating more normalized ad spend moving forward, although we still expect to see some effect on our fourth quarter and full year revenue.

這給我們本季的成長帶來了壓力，也是營收成長放緩的主要原因。雖然選舉週期已經結束，我們預計未來的廣告支出將更加正常化，但我們仍然預計這會對我們的第四季和全年收入產生一些影響。

Second, we also saw slower than anticipated growth in the cross-sell of additional products to our clients. While we have driven broader product adoption with a number of large global brands and publisher, this happened at a slower rate than expected.

其次，我們也發現向客戶交叉銷售附加產品的成長速度低於預期。雖然我們已經推動了許多大型全球品牌和出版商更廣泛的產品採用，但這項進展的速度比預期的要慢。

Accordingly, our measurement offering delivered 1% growth this quarter. We remain confident that we are well positioned to drive enhanced value for our clients, and have taken complete steps to address our growth objectives take into account these factors and controlling what we can.

因此，我們的測量服務本季實現了 1% 的成長。我們仍然相信，我們有能力為客戶創造更高的價值，並且已經採取了全面措施來實現我們的成長目標，考慮到這些因素並控制我們所能控制的。

We are actively realigning the sales organization and overall go-to-market strategy to take better advantage of the cross-sell opportunity, and accordingly, we expect to see an improvement in our cross-sell motion in the coming quarters.

我們正在積極調整銷售組織和整體市場策略，以更好地利用交叉銷售機會，因此，我們預計未來幾季我們的交叉銷售情況將有所改善。

Lastly, we have multiple layers of service available on top of our technology, depending on how much support the client needs. As we invest in AI and workflow automation, we’re seeing an increase in the number of clients that are leveraging our technology directly without an additional service layer.

最後，根據客戶需要的支援程度，我們在技術之上提供多層服務。隨著我們對人工智慧和工作流程自動化的投資，我們看到越來越多的客戶直接利用我們的技術，而無需額外的服務層。

The software-only model has both favorable unit economics and is a way for us to extend our reach to smaller advertisers, as this lower price option is an attractive alternative.

純軟體模式既具有良好的單位經濟效益，也是我們擴大覆蓋範圍至較小廣告商的一種方式，因為這種較低的價格選擇是一種有吸引力的替代方案。

In the third quarter, adoption of this offering accelerated, and impressions from those using our platforms without an additional service layer were 50% over the same period last year. While we expect some near-term revenue pressure from this ongoing mix shift, a software-only offering inherently has a better margin and is one of the reasons why our profitability was strong this past quarter.

第三季度，該產品的採用速度加快，使用我們平台且無需額外服務層的用戶的印像比去年同期增長了 50%。雖然我們預計這種持續的組合轉變會在短期內帶來一些收入壓力，但純軟體產品本身俱有更好的利潤率，這也是我們上個季度盈利能力強勁的原因之一。

We believe having flexibility in our offerings that meet the various needs of the market is a strategic differentiator, especially considering Google’s antitrust lawsuit and the uncertainty it brings to its customers. We are pleased to have a suite of offerings that can support a broad range of clients.

我們相信，我們提供的產品具有靈活性，可以滿足市場的各種需求，這是一種策略差異化因素，尤其是考慮到Google的反壟斷訴訟及其給客戶帶來的不確定性。我們很高興能提供一系列能夠支援廣泛客戶的服務。

We expect each of these three revenue headwinds to persist in the fourth quarter and, therefore, we have brought down our full year revenue guidance accordingly, but we remain encouraged by our long-term opportunities and the growth of our core CTV product.

我們預計這三大收入逆風都將在第四季度持續存在，因此，我們相應下調了全年收入預期，但我們仍然對長期機會和核心 CTV 產品的成長感到鼓舞。

The overall CTV market has significant room for expansion, and we have strategically positioned innovate to capitalize on its expected growth.

整個 CTV 市場具有巨大的擴展空間，我們已策略性地定位創新以利用其預期的成長。

As mentioned earlier, CTV video impressions have now reached 58% of all video impressions, and we expect that number to continue to increase.

如前所述，CTV 影片展示量現已達到所有影片展示量的 58%，我們預計這一數字還將繼續增加。

Additionally, there are strong industry trends that are working in our favor, including the increasing number of ad-supported streaming platforms, growing viewership, and the expected shift of live sports from linear to CTV, not to mention the increased number of partners in our Harmony initiative as a discussed momentary.

此外，行業中還有一些對我們有利的強勁趨勢，包括廣告支持的串流媒體平台數量的增加、觀眾人數的不斷增長以及體育直播從線性到 CTV 的預期轉變，更不用說我們討論過的 Harmony 計劃中的合作夥伴數量的增加。

We fully expect that revenue growth will re-accelerate in 2025 as we execute on several key initiatives, including cross-sell go-to-market enhancement, Harmony adoption, and continued development of strategic partnerships.

我們完全相信，隨著我們實施幾項關鍵舉措，包括交叉銷售市場進入增強、Harmony 採用以及策略合作夥伴關係的持續發展，收入成長將在 2025 年再次加速。

These initiatives should drive more normalized top-line growth and set the stage for stronger performance. In addition to the CTV growth this quarter, I am proud of our improved operational profitability, adjusted EBITDA with 29%, hitting the higher end of our guidance, and adjusted EBITDA margin expanded to 22%, up from 18% in the prior year.

這些措施應能推動更正常化的營收成長，並為更強勁的業績奠定基礎。除了本季度 CTV 的成長之外，我還為我們提高的營運獲利能力感到自豪，調整後的 EBITDA 成長了 29%，達到了我們預期的高端，調整後的 EBITDA 利潤率從上年的 18% 擴大到 22%。

As we shared previously, our business model is scalable, and efficient at its core. Importantly, the team has delivered margin expansion even in a lower growth environment. As market conditions improve and our revenue growth re-accelerates, we expect to see a continued increase in profitability and remain committed to our long-term goal of surpassing 30% adjusted EBITDA margin.

正如我們之前所分享的，我們的商業模式本質上是可擴展且有效率的。重要的是，即使在成長較低的環境下，該團隊也實現了利潤率的擴大。隨著市場狀況的改善和收入成長的重新加速，我們預計獲利能力將繼續成長，並將繼續致力於實現超過 30% 調整後 EBITDA 利潤率的長期目標。

As part of our continued drive for operational efficiency, we are expanding the implementation of AI into innovative platforms. Over the last couple of quarters, AI has been implemented into our workflow, supporting faster and more seamless ways to create, monitor, and ensure quality of campaigns. The implementation of AI is already starting to pay-off, and it’s having a positive effect on operational efficiency.

作為我們持續提高營運效率的一部分，我們正在將人工智慧的實施擴展到創新平台。在過去的幾個季度中，人工智慧已經融入我們的工作流程，支援更快、更無縫地創建、監控和確保活動品質。人工智慧的實施已經開始產生回報，並且對營運效率產生了積極的影響。

Now, I’d like to share some additional highlights from the quarter. First, we signed new clients and expanded our relationship with leading brands such as Toyota, Dollar General, IPB, American Signature, AbbVie, among others.

現在，我想分享本季的一些其他亮點。首先，我們簽約了新客戶，並擴大了與豐田、Dollar General、IPB、American Signature、AbbVie 等領先品牌的關係。

We also launched and expanded our partnership with Netflix, one of the world’s largest streaming services. As Netflix rolled out its ad-supported tier, Innovid was selected as one of the two partners for impression verification within Netflix ad-supported platform. This allows our clients to activate their Netflix campaign while leveraging the Innovid platform.

我們還與全球最大的串流媒體服務之一 Netflix 建立並擴大了合作夥伴關係。隨著 Netflix 推出其廣告支援層，Innovid 被選為 Netflix 廣告支援平台內印象驗證的兩個合作夥伴之一。這使得我們的客戶能夠在利用 Innovid 平台的同時啟動他們的 Netflix 活動。

We look forward to continuing to work closely with Netflix as they grow their ad-supported business and build their technology further to benefit advertisers. This new partnership with Netflix is a testimony to the strong industry position Innovid holds and to the critical infrastructure we provide to key players in the market. This collaboration not only amplifies our visibility. It also increases the number of ads we can serve as major ad-supported platforms like Netflix gain scale.

我們期待繼續與 Netflix 密切合作，幫助他們發展廣告支援業務並進一步建立技術，使廣告商受益。與 Netflix 的這項新合作證明了 Innovid 所擁有的強大產業地位以及我們為市場主要參與者提供的關鍵基礎設施。這次合作不僅擴大了我們的知名度。隨著 Netflix 等主要廣告支援平台規模的擴大，我們可以提供的廣告數量也增加了。

Additionally, last quarter we announced our planned strategic collaboration with Nielsen, a global leader in audience measurement. Nielsen is integrating innovative workforce solution in Nielsen ONE with the aim of providing seamless workflow and holistic view of the cross-media ads universe.

此外，上個季度我們宣布了與全球領先的受眾測量公司尼爾森的策略合作計劃。尼爾森正在 Nielsen ONE 中整合創新勞動力解決方案，旨在提供無縫的工作流程和跨媒體廣告領域的整體視圖。

We’re working together on defining and building the optimal path to provide the industry with a complete comprehensive measurement offering and are pleased with the progress underway.

我們正在共同努力定義和建立最佳路徑，為業界提供完整且全面的測量產品，並對目前的進展感到滿意。

Early this year, we launched our strategic Harmony initiative with a goal to optimize CTV advertising at the infrastructure level. We’ve been focused on expanding Harmony’s adoption and launching new capabilities under the Harmony umbrella. We recently announced that LG Ad Solutions is the latest partner to join the Harmony initiative, joining other top CTV platforms such as Roku and Vizio.

今年年初，我們啟動了策略性 Harmony 計劃，目標是在基礎設施層面優化 CTV 廣告。我們一直致力於擴大 Harmony 的採用並在 Harmony 框架下推出新功能。我們最近宣布，LG Ad Solutions 成為加入 Harmony 計畫的最新合作夥伴，並加入了 Roku 和 Vizio 等其他頂級 CTV 平台。

The agency PMG, an early adopter of Harmony is also warning us our Harmony Direct Solution across its full portfolio of clients. In July, we launched our harmony frequency solution in beta and we have already seen clear evidence of its effectiveness.

作為 Harmony 的早期採用者，PMG 機構也向我們展示了其所有客戶群的 Harmony Direct 解決方案。7 月份，我們推出了和諧頻率解決方案的測試版，並且已經看到了其有效性的明確證據。

Initial Harmony frequency campaigns that were launched with DSP partners, and some of the world’s largest advertisers revealed a reduction of over 50% in audiences who were overexposed to the same ads. These initial results have several market defining implications.

與 DSP 合作夥伴和一些全球最大的廣告商共同推出的初始 Harmony 頻率廣告活動顯示，過度接觸相同廣告的受眾減少了 50% 以上。這些初步結果對市場有多種定義意義。

First, the ability to manage frequency over different publishers and media execution types can meaningfully reduce media waste for advertisers. Second, limiting the number of times that a viewer sees the same ad creates a better viewer experience for streaming services subscribers. We’re delighted to lead the charge in shaping the future of TV advertising and to be recognized for it.

首先，管理不同出版商和媒體執行類型的頻率的能力可以顯著減少廣告商的媒體浪費。其次，限制觀眾看到相同廣告的次數可以為串流媒體服務訂閱者創造更好的觀看體驗。我們很高興能夠引領塑造電視廣告的未來並因此獲得認可。

During the quarter, Innovid won 2024 AdExchanger Award for Most Innovative TV Advertising Technology for the Harmony Initiative. I want to thank our partners, clients, and team for their innovation and efforts to make TV better.

本季度，Innovid 憑藉 Harmony 計劃榮獲 2024 年 AdExchanger 最具創新性電視廣告技術獎。我要感謝我們的合作夥伴、客戶和團隊為使電視變得更好而做出的創新和努力。

In summary, I am proud of the team for delivering another quarter of growth while expanding margins, despite a more challenging environment. Our team is continuing to develop strategic partnerships and products to create an open and thriving CTV market while expanding operational profitability and increasing margins. We anticipate continued CTV growth.

總而言之，儘管環境更具挑戰性，但團隊仍實現了另一個季度的成長並擴大了利潤率，我對此感到自豪。我們的團隊正在繼續發展策略合作夥伴關係和產品，以創建一個開放且繁榮的 CTV 市場，同時擴大營運獲利能力並提高利潤率。我們預計 CTV 將持續成長。

And as we exit the US election cycle and focus on more effective cross-sell go-to-market motions, we expect to see revenue growth improvement and continued expansion in our business.

隨著我們退出美國大選週期並專注於更有效的交叉銷售市場動議，我們預計收入成長將有所改善，業務將持續擴張。

Finally, our executive team and Board of Directors remain confident in Innovid’s long-term strategy and growth potential. And, today, we are announcing a stock repurchase program reinforcing our commitment to delivering both short- and long-term shareholder value.

最後，我們的執行團隊和董事會仍然對 Innovid 的長期策略和成長潛力充滿信心。今天，我們宣布了一項股票回購計劃，以加強我們對實現短期和長期股東價值的承諾。

We do not believe our current stock price reflects the value of our business today or its long-term prospects. Rather, we expect that the combination of our financial position, highly differentiated product offering, market expertise, and strategic investments will allow us to enhance shareholder value in the quarters and years ahead.

我們認為，我們目前的股價並不能反映我們業務的當前價值或其長期前景。相反，我們預計，我們的財務狀況、高度差異化的產品供應、市場專業知識和策略投資的結合將使我們能夠在未來幾季和幾年內提升股東價值。

With that, I’ll ask Tony to take us through the numbers and provide some insight into Q4 and full year expectations. Tony?

為此，我將請托尼向我們介紹這些數字，並對第四季度和全年的預期提供一些見解。托尼？

Thank you, Zvika, and good morning, everyone. In addition to the operational progress, revenue growth, and notable partnerships that Zvika just shared, we’re also pleased to report another quarter of solid bottom-line performance. Our focus on profitable cash generating growth resulted in the 9th straight quarter of adjusted EBITDA margin expansion and 7th consecutive quarter of generating cash from operating activities.

謝謝你，Zvika，大家早安。除了 Zvika 剛剛分享的營運進度、收入成長和顯著的合作夥伴關係之外，我們還很高興地報告另一個季度的穩健獲利表現。我們專注於獲利性現金產生成長，連續 9 個季度實現調整後 EBITDA 利潤率擴張，並連續 7 個季度實現經營活動現金產生。

As we’ve highlighted, Innovid’s business has a highly leverageable operating model, giving us the ability to deliver healthy free cash flow and expanding margins. And during these times where we experience weaker ad spending, our ability to continue to grow the bottom-line at a significantly faster rate than the top-line remains strong.

正如我們所強調的，Innovid 的業務具有高度可利用的營運模式，使我們能夠提供健康的自由現金流並擴大利潤率。在我們經歷廣告支出疲軟的時期，我們繼續以明顯快於營收的速度成長獲利的能力依然強勁。

Now, let’s dig into the numbers. Third quarter revenue grew 6% year-over-year to $38.3 million. Breaking that down further, ad serving and personalization revenue was up 7%, while measurement revenue grew 1%. As a percentage of revenue, ad serving and personalization made up 78% of the total, while measurement accounted for 22%. Ad serving and personalization is heavily influenced by continued healthy growth in our core growth driver, CTV video impressions.

現在，讓我們深入研究一下這些數字。第三季營收年增 6% 至 3,830 萬美元。進一步細分，廣告投放和個人化收入成長了 7%，而測量收入增加了 1%。以收入百分比計，廣告投放和個人化佔總收入的 78%，而衡量佔 22%。廣告投放和個人化在很大程度上受到我們核心成長動力——CTV 影片展示的持續健康成長的影響。

CTV revenue from ad serving and personalization grew 12% over the third quarter of 2023, while impressions grew 13%. As a percentage of total video impressions, CTV continues to represent a bigger piece of the pie at 58% as compared to 55% in the third quarter of 2023. In fact, 58% is the largest share to date for CTV video impressions of total video impressions.

2023 年第三季度，CTV 來自廣告投放和個人化的收入成長了 12%，而展示次數增加了 13%。就總影片展示次數的百分比而言，CTV 繼續佔據更大的份額，達到 58%，而 2023 年第三季這一比例為 55%。事實上，迄今為止，CTV 影片展示量佔總影片展示量的最大份額為 58%。

As we see the CTV share grow, we expect our results to represent more of a convergence of CTV growth and overall top-line growth.

隨著我們看到 CTV 份額的成長，我們預計我們的業績將更能反映 CTV 成長和整體營收成長的融合。

As we’ve seen in the past number of quarters, inconsistent growth in mobile and desktop impressions continue to mute our overall growth as they typically lag CTV impressions. In Q3, mobile video volume declined by 2% and represented 32% of all video impressions, while desktop volume increased by 5% and reflected 11% of all video impressions.

正如我們在過去幾個季度所看到的那樣，行動和桌面展示量的不一致增長繼續抑制我們的整體成長，因為它們通常落後於 CTV 展示量。第三季度，行動視訊播放量下降了 2%，佔所有影片播放量的 32%，而桌上型影片播放量增加了 5%，佔所有影片播放量的 11%。

Going forward, we’d expect to see similar trends, with CTV growing consistently and ultimately accelerating, and mobile and desktop being less predictable.

展望未來，我們預計會看到類似的趨勢，CTV 持續成長並最終加速，而行動裝置和桌上型電腦的發展則變得難以預測。

As Zvika mentioned, one additional positive trend we’re seeing is expanded interest in our software-only offering. We provide this alternative for customers to utilize our ad serving platform, while managing the campaigns themselves. While naturally we charge a lower fee for platform-only access, our unit economics improve, which supports further margin expansion.

正如 Zvika 所提到的，我們看到的另一個正面趨勢是人們對我們的純軟體產品的興趣日益濃厚。我們為客戶提供這種替代方案，讓他們利用我們的廣告投放平台，同時管理廣告活動本身。雖然我們對僅限平台存取收取的費用自然較低，但我們的單位經濟效益有所改善，從而支持進一步擴大利潤率。

Currently, about a quarter of our ad serving revenue is on the service-free model, and we’ve seen that increase by about 30% since the beginning of the year, which is a more rapid transition than we anticipated. While this migration put pressure on our revenue growth this quarter, it’s also one of the drivers behind our ability to deliver improved profitability, as well as expanding our potential customer base going forward.

目前，我們大約四分之一的廣告投放收入來自免費服務模式，自今年年初以來，這一數字增長了約 30%，這是一個比我們預期更快的轉變。雖然這種遷移給我們本季的營收成長帶來了壓力，但它也是我們提高獲利能力以及擴大未來潛在客戶群的驅動力之一。

We expect that trend to continue into 2025, as we see this as a continued opportunity to meet our clients where they are and drive margin expansion along the way.

我們預計這一趨勢將持續到 2025 年，因為我們認為這是一個持續滿足客戶需求並推動利潤率擴張的機會。

Moving to measurement. Measurement revenue growth has decelerated throughout 2024 and while our measurement capabilities are a key part of the Innovid platform, we’re not achieving the same cross-sell execution that we believe is achievable.

轉向測量。2024 年全年，測量收入成長有所放緩，雖然我們的測量能力是 Innovid 平台的關鍵部分，但我們並未實現我們認為可以實現的交叉銷售執行。

Zvika touched on the steps we are taking as measurement continues to be a key part of our growth thesis. With the benefit of a revised and focused strategy, we expect our unique ability to combine creative, delivery, and measurement solutions to be a catalyst for reaccelerating revenue growth.

Zvika 談到了我們正在採取的措施，因為測量仍然是我們成長論點的關鍵部分。憑藉修訂後的重點策略，我們預計我們結合創意、交付和測量解決方案的獨特能力將成為重新加速收入成長的催化劑。

Stepping back and looking at overall performance in Q3, while revenues fell short of expectations, the underlying fundamentals of the business remain strong. We remain focused on expanding profitability and driving free cash flow, while we manage through a challenging macro environment.

回顧第三季的整體表現，雖然營收未達預期，但業務的基本面依然強勁。在應對充滿挑戰的宏觀環境的同時，我們仍將專注於擴大獲利能力和推動自由現金流。

We continue to have conviction in the inevitability of outsized growth once more brands shift spend to CTV driven by all the factors Zvika referenced earlier.

我們仍然堅信，一旦更多的品牌將支出轉移到 CTV，在 Zvika 之前提到的所有因素的推動下，超額成長是不可避免的。

Now, moving on to costs and expenses. Revenue less cost of revenue calculated out to 78% of revenue which was consistent with Q3 last year. As we include more automation and AI into our offerings and experienced growth in our software-only model we expect to see incremental margin expansion.

現在，我們來談談成本和費用。收入減去收入成本計算的收入為 78%，與去年第三季一致。隨著我們在產品中加入更多自動化和人工智慧，以及純軟體模式的成長，我們預計利潤率將逐步擴大。

Q3 total operating expenses excluding depreciation, amortization and impairment totaled $27.9 million, an increase of 2% from $27.4 million in the same quarter last year. Employee count at the end of September was 461 as compared with 460 at the end of Q3 2023.

第三季不包括折舊、攤提和減損的總營運費用為 2,790 萬美元，比去年同期的 2,740 萬美元成長 2%。9 月底員工人數為 461 人，而 2023 年第三季末員工人數為 460 人。

We remain committed to managing our cost base effectively to drive improved growth and profitability, and generate long-term value for our shareholders.

我們將繼續致力於有效管理成本基礎，以推動成長和獲利能力的提高，並為股東創造長期價值。

Pre-tax operating loss of $1.2 million in Q3, improved 71% as compared to a pre-tax operating loss of $4 million in the same period last year. This improvement was driven by a larger percentage of revenue growth converting to earnings as well as lower depreciation and amortization expense.

第三季稅前營業虧損為 120 萬美元，較去年同期的 400 萬美元稅前營業虧損改善了 71%。這一改善是由於收入成長轉化為收益的比例增加以及折舊和攤銷費用降低所致。

We recorded a tax benefit in the quarter of $5.8 million, primarily related to truing up our full year effective tax rate for the revised full year outlook. Our effective tax rate continues to be volatile as we are still reserving tax assets in evaluation allowance and our pre-tax income is relatively low. That said, cash taxes in the quarter were about $500,000.

我們在本季記錄了 580 萬美元的稅收優惠，主要與調整全年有效稅率以適應修訂後的全年前景有關。由於我們仍在評估準備中保留稅收資產，且稅前收入相對較低，因此我們的有效稅率持續波動。也就是說，本季的現金稅約為 50 萬美元。

Q3 net income increased to $4.7 million or per share earnings of $0.03. This compares with a net loss of $2.7 million and a per share loss of $0.02 in Q3 2023. The outstanding common share count at September 30 was 147.8 million shares.

第三季淨利增至470萬美元，每股收益0.03美元。相較之下，2023年第三季淨虧損270萬美元，每股虧損0.02美元。截至 9 月 30 日，已發行普通股股數為 1.478 億股。

Adjusted EBITDA in the third quarter was $8.4 million, a $1.9 million improvement or 29% increase as compared to $6.5 million in Q3 last year. As I mentioned earlier, this is the 9th consecutive quarter of year-over-year adjusted EBITDA margin expansion, as our margin improved to 22% this past quarter as compared to 18% last year.

第三季調整後的 EBITDA 為 840 萬美元，與去年同期的 650 萬美元相比增加了 190 萬美元，增幅為 29%。正如我之前提到的，這是連續第 9 個季度調整後的 EBITDA 利潤率同比增長，因為我們的利潤率在本季度提高了 22%，而去年同期為 18%。

These improvements reflect the impact of sustained revenue growth, lower cost of revenues as a percentage of revenue and operating costs that grew nominally over the prior year, demonstrating the leverage inherent in our operating model.

這些改進反映了持續的收入成長、收入成本佔收入的百分比降低以及營運成本較上年名義上有所增長的影響，證明了我們營運模式固有的槓桿作用。

I will now turn to the balance sheet and cash flow. We ended Q3 in a solid financial position and our balance sheet has never been stronger.

現在我將討論資產負債表和現金流量。我們以穩健的財務狀況結束了第三季度，我們的資產負債表從未如此強勁。

At September 30, we had $34.6 million in cash and cash equivalents on hand, with no outstanding balance on a revolving debt facility. As a reminder, we have $50 million available on that facility.

截至 9 月 30 日，我們手頭上有 3,460 萬美元的現金和現金等價物，循環債務融資沒有未償還餘額。提醒一下，我們為該設施提供了 5000 萬美元。

On a net cash basis, or to say it another way, cash and cash equivalents less outstanding revolver balance, the $34.6 million on hand at the end of Q3 2024 is a 25% improvement as compared to the $27.7 million of net cash at the end of Q3 2023.

以淨現金計算，或者換句話說，現金和現金等價物減去未償還循環信貸餘額，2024 年第三季末的現金餘額為 3,460 萬美元，與 2023 年第三季末的淨現金 2,770 萬美元相比增長了 25%。

During the quarter, net cash provided by operating activities was $6 million and free cash flow was $3.7 million as compared to $4.1 million of free cash flow generated in Q3 2023. If we look at free cash flow on a trailing 12-month basis, we have seen an improvement of $12.1 million as compared to the same 12-month period ended September 30, 2023.

本季度，經營活動提供的淨現金為 600 萬美元，自由現金流為 370 萬美元，而 2023 年第三季產生的自由現金流為 410 萬美元。如果我們查看過去 12 個月的自由現金流，我們會發現與截至 2023 年 9 月 30 日的 12 個月相比，自由現金流增加了 1,210 萬美元。

I’ll now touch on our outlook for the fourth quarter and provide an update for full year 2024 expectations. We are proud of our ability to continue to execute in an uncertain environment and are confident in the underlying strength of our business and in our ability to grow revenue profitably. We remain committed to our long-term financial target of 20%-plus annual revenue growth and 30%-plus adjusted EBITDA margin.

現在我將談談我們對第四季度的展望，並提供對 2024 年全年預期的最新資訊。我們為自己能夠在不確定的環境中繼續執行的能力感到自豪，並對我們業務的潛在實力和盈利性增長的能力充滿信心。我們仍然致力於實現我們的長期財務目標，即年收入成長 20% 以上，調整後 EBITDA 利潤率 30% 以上。

That said, due to the specific factors that Zvika shared, primarily pressuring Q3 and early Q4 from political ad spending and muted cross-sell activity, as well as the trend towards software-only offerings, we are lowering our full year revenue expectations.

話雖如此，由於 Zvika 分享的具體因素，主要是政治廣告支出和交叉銷售活動低迷給第三季度和第四季度初帶來壓力，以及純軟體產品的趨勢，我們下調了全年收入預期。

At the same time, given the strong profitability performance in Q3 and continued focus on operational efficiency, we are reaffirming the top end of our adjusted EBITDA guidance, and raising the lower end of the range, thus materially increasing the expectation around adjusted EBITDA margin.

同時，鑑於第三季強勁的獲利表現和對營運效率的持續關注，我們重申調整後 EBITDA 指引的最高值，並提高該範圍的最低值，從而大幅提高對調整後 EBITDA 利潤率的預期。

As a result, in the fourth quarter of 2024, we expect total revenue in a range of $37.5 million to $39.5 million, which would be flat with Q4 2023 at the midpoint. We expect Q4 adjusted EBITDA in a range of $8 million to $10 million, as compared to $8.3 million in the fourth quarter of 2023.

因此，我們預計 2024 年第四季的總營收將在 3,750 萬美元至 3,950 萬美元之間，與 2023 年第四季的中點持平。我們預計第四季度調整後的 EBITDA 在 800 萬美元至 1000 萬美元之間，而 2023 年第四季為 830 萬美元。

For the full year, we now expect total revenue in a range of $150.5 million to $152.5 million, representing 8% year-over-year growth at the midpoint, and adjusted EBITDA between $26.7 million and $28.7 million. While it’s a bit too early to get into specifics on 2025 guidance, we see a resumption of more normalized growth next year after a slower second half of 2024.

就全年而言，我們目前預計總營收將在 1.505 億美元至 1.525 億美元之間，中位數年增 8%，調整後的 EBITDA 在 2,670 萬美元至 2,870 萬美元之間。雖然現在談論 2025 年的具體指導還為時過早，但我們預計在 2024 年下半年經濟放緩之後，明年經濟將恢復更正常的成長。

As Zvika mentioned, there are several secular industry trends that we expect to work in our favor, pushing brands towards a CTV first ad strategy as well as expected improvements in our cross-sell opportunities, partially fueled by market adoption of our Harmony suite. And as these growth drivers don’t require incremental investments, we expect a continuation of margin and cash flow improvement throughout 2025.

正如 Zvika 所提到的，我們預計有幾個長期的行業趨勢將對我們有利，推動品牌走向 CTV 優先廣告策略，同時我們的交叉銷售機會也將有望改善，部分原因是市場對我們 Harmony 套件的採用。由於這些成長動力不需要增量投資，我們預期 2025 年利潤率和現金流將持續改善。

Finally, a word on capital allocation.

最後，談談資本配置。

As Zvika mentioned, our Board of Directors has authorized the company to implement a stock repurchase program of up to $20 million. Subject to the final terms of the program, it’s expected that repurchases will be dependent on market conditions, regulatory requirements, and other considerations.

正如 Zvika 所提到的，我們的董事會已授權公司實施高達 2000 萬美元的股票回購計畫。根據該計劃的最終條款，預計回購將取決於市場條件、監管要求和其他考慮因素。

This program is not expected to obligate us to acquire any particular amount of common stock and may be modified, suspended, or terminated at any time at the discretion of our Board of Directors. And the company may decline to move forward with the implementation of any repurchase plan.

該計劃預計不會強制我們收購任何特定數量的普通股，董事會可隨時自行決定修改、暫停或終止該計劃。且該公司可能拒絕繼續實施任何回購計畫。

We are focused on generating value for our shareholders, and we and our Board currently believe a share repurchase program both effectively returns capital to our shareholders and demonstrates our conviction that the current share price does not reflect its true value today or over the long-term.

我們專注於為股東創造價值，我們和董事會目前認為，股票回購計畫既能有效地向股東返還資本，又能表明我們的信念，即當前的股價並不能反映其當前或長期的真實價值。

We will continue to deploy our capital in ways that we believe will result in the best return on investment and creation of long-term value for our shareholders. We remain confident in its underlying business fundamentals and the long-term secular market dynamics that we expect will drive outsized CTV growth.

我們將繼續以我們認為能夠帶來最佳投資回報並為股東創造長期價值的方式部署我們的資本。我們對其潛在的業務基本面和長期市場動態仍然充滿信心，我們預計將推動 CTV 的大幅成長。

In the meantime, we are focused on providing exceptional product offerings to our clients, expanding operating margins, and driving free cash flow generation, putting us another step closer to achieving our long-term targets. We will continue to mindfully invest in long-term sustainable growth, while efficiently managing our cost structure and strengthening our financial condition.

同時，我們專注於為客戶提供卓越的產品，擴大營業利潤率，推動自由現金流的產生，使我們離實現長期目標更近一步。我們將繼續謹慎地投資於長期可持續成長，同時有效管理我們的成本結構並加強我們的財務狀況。

This concludes our prepared remarks. Zvika and I are now happy to take your questions. Operator, please begin the Q&A session.

我們的準備好的演講到此結束。Zvika 和我現在很高興回答您的問題。接線生，請開始問答環節。

(Operator Instructions)

（操作員指示）

Matt Condon with Citizens JMP.

公民 JMP 的 Matt Condon。

Thank you for taking my questions. My first one is just on understood the crowding out due to political spend in the quarter. Was there any change in the competitive environment or any change in customer behavior that you noticed or any verticals that you would call out that were particularly weak?

感謝您回答我的問題。我的第一個問題是了解本季由於政治支出而造成的擠出效應。您是否注意到競爭環境或客戶行為發生了任何變化，或者您認為哪些垂直產業特別薄弱？

Yeah. I mean, in terms of competitive environment, there was no change. What we saw this election cycle, the estimations are that the investment in TV advertising and CTV advertising, specifically in CTV advertising for political grew 500%. We definitely saw a heavy investment from political advertisers.

是的。我的意思是，就競爭環境而言，沒有任何變化。我們看到，在本次選舉週期中，電視廣告和 CTV 廣告的投資估計增加了 500%，特別是 CTV 政治廣告的投資增加了 500%。我們確實看到政治廣告商的大量投資。

And since Innovid worked with large brands and not we don’t run political ads, that pushed some of the large brands, the very large brands out kind of the weighted out this. Specifically, we saw a drop in CPG, financial services from that perspective.

由於 Innovid 與大品牌合作，我們不投放政治廣告，這在一定程度上擠壓了一些大品牌，尤其是大型品牌。具體來說，從這個角度來看，我們看到 CPG 和金融服務有所下降。

But I would say argue that most brands pulled back during this time. And in terms of – your question, in terms of the competitive environment, no. There was nothing, there’s no specific changes either to products in-market, pricing, no significant churn out of the order, nothing that it’s pure volume shift due to the political.

但我想說的是，大多數品牌在這段期間都退縮了。就您的問題而言，就競爭環境而言，答案是否定的。什麼都沒有，市場上的產品、定價都沒有任何具體變化，訂單也沒有發生重大變動，也沒有純粹因政治原因而導致的數量變化。

That’s very helpful. And then my second one was just on, obviously, the slower than anticipated cross-sell and the subsequent salesforce reorganization. Can you just talk about specifically what’s changing there? I guess what went wrong before and what’s the difference and what gives you confidence that that can accelerate the future? Thank you so much.

這非常有幫助。然後我的第二個問題顯然是，交叉銷售比預期的要慢，以及隨後的銷售人員重組。能具體談談那裡發生了什麼變化嗎？我想問之前出了什麼問題，有什麼區別，是什麼讓您有信心這可以加速未來的發展？太感謝了。

Sure, and you’re asking about the cross-sell?

當然，您問的是交叉銷售嗎？

Yeah, this is a salesforce re-organization just to facilitate greater cross-sell, yeah.

是的，這是銷售團隊的重組，只是為了促進更大的交叉銷售。

Yeah, absolutely. So as we shared, we’re not seeing, we haven’t seen the momentum we wanted to see in the cross-sell. We believe we’re making, as I think we shared earlier in the year, that’s one of the number one goals in the sales organization and realignment, is to move the company from selling mostly the ad server to selling a platform sale that includes several products, including measurement, creative optimization, and recently Harmony.

是的，絕對是。因此，正如我們所分享的，我們沒有看到，我們沒有看到我們希望在交叉銷售中看到的勢頭。我們相信，正如我們在今年稍早分享的那樣，我們正在實現銷售組織和重組的首要目標之一，即讓公司從主要銷售廣告伺服器轉變為銷售包含多種產品的平台，包括測量、創意優化以及最近的 Harmony。

That motion, the organization was structured in a certain way. As we saw, we’re not seeing the results we aim to see. We believe in the strategy, we believe in the go-to-market, the way we’re structured and incentivized did not yield the desired results, and for that reason, we learned from that and made changes.

該動議、該組織以某種方式建構。正如我們所見，我們並沒有看到我們想要看到的結果。我們相信這項策略，我們相信行銷，但我們的結構和激勵方式並未產生預期的結果，因此，我們從中吸取了教訓並做出了改變。

We believe we have a great suite of products that work very well together, and we believe in the strategy, so it’s more about how do we execute it, and we made some necessary changes and believe that we will see the results coming in next year.

我們相信我們擁有一套非常出色的產品，它們可以很好地協同工作，我們也相信這項策略，所以更重要的是如何執行它，我們做出了一些必要的改變，並相信明年我們將看到結果。

Great. Thank you so much.

偉大的。太感謝了。

Matthew Cost with Morgan Stanley.

摩根士丹利的馬修‧科斯特 (Matthew Cost)。

Good morning. Thanks for taking the question. I guess just mechanically, when we think about the impact of political rolling off from 4Q to 1Q if we just sort of isolate that. How much of an uplift in quarter-on-quarter growth, your year-on-year growth, should we expect to see as we sort of exit this political cycle fully the beginning of next year, and see the big brands reengage? That’s question one.

早安.感謝您回答這個問題。我想，從機械角度來說，當我們考慮政治因素從第四季度延續到第一季的影響時，如果我們將其孤立出來的話。當我們在明年年初完全退出這個政治週期，看到大品牌重新參與進來時，我們預計季度環比增長和同比增長會有多大？這是第一個問題。

And then the second question is just, obviously, you’ve raised the midpoint of EBITDA guidance, so showing a lot of discipline on the cost side, which is great to see. I guess where are you prioritizing investment right now versus where are you looking for savings? Thank you.

然後第二個問題是，顯然，您已經提高了 EBITDA 指導的中點，因此在成本方面表現出很大的紀律性，這很好。我猜您現在優先投資哪些領域，又在尋求哪些儲蓄？謝謝。

Hey, Matt, this is Tony. I think I could take that one. So on the political ad side, I mean, this is definitely uncharted waters in terms of just the volume that Zvika mentioned before of money that poured into this election cycle. We’re a week out from it now. We’re happy to see there’s been a little bounce back. I don’t know, it’s probably premature to say, like, what normalization from this looks like. I think we’ll have to go to the rest of the quarter.

嘿，馬特，我是東尼。我想我可以接受這個。因此，就政治廣告方面而言，就 Zvika 之前提到的湧入本次選舉週期的資金量而言，這絕對是未知領域。現在距離它還有一週的時間。我們很高興看到出現了一些反彈。我不知道，現在說這種正常化會是什麼樣子可能還太早。我認為我們必須繼續本季的剩餘工作。

But, we certainly have not seen this level of spend before and pull back from the brands. And, again, the brands are our customers and not the political advertisers. So, I think it’s one piece of essentially a number of drivers as we think about 2025. And as we could touch on a lot of those between Harmony and Nielsen being able to effectively cross-sell a bit better than we have. And so those are all headwinds.

但是，我們之前確實沒有見過這種程度的支出，也沒有看到品牌撤資。再次強調，品牌才是我們的客戶，而不是政治廣告商。所以，我認為，當我們考慮 2025 年時，這基本上是眾多驅動因素之一。我們可以觸及 Harmony 和 Nielsen 之間的許多方面，它們能夠比我們更好地進行交叉銷售。所以這些都是不利因素。

And then one of the things I call out is, as Zvika mentioned, an increase that we’ve seen in essentially our software-only service offering or software only offering without the service layer on it. And that’s something that we think is going to drag growth in the long-term.

然後我要指出的一件事是，正如 Zvika 所提到的，我們看到純軟體服務產品或不帶服務層的純軟體產品的數量有所增長。我們認為從長遠來看這將拖累經濟成長。

May have some near-term muting effects just on the kind of price arbitrage between the different service offerings. So it’s a combination of things. And, again, I think we’re pleased that we’ve seen a bit of a bounce back in the first week after the election, but it’s very early to tell what the ultimate impact of it is.

可能對不同服務產品之間的價格套利產生一些短期抑製作用。所以這是多種因素的綜合作用。而且，我認為我們很高興看到選舉後第一周出現了一些反彈，但現在判斷其最終影響還為時過早。

That said, I think we continue to believe strongly in the ability to grow double-digits. Our long-term target still remains 20%. All the growth drivers, all the fundamentals that we’ve talked about before are the same. And as we mentioned, in the meantime, we’re focusing on driving profitability until we get some momentum on the revenue side.

話雖如此，我認為我們仍然堅信能夠實現兩位數的成長。我們的長期目標仍然是20%。我們之前談到的所有成長動力、所有基本面都是一樣的。正如我們所提到的，同時，我們正專注於提高獲利能力，直到收入方面獲得一些發展動力。

In terms of priorities on that profitability, I mean, we’ve said all along, I mean, this is just an inherently leverageable operating model. And, every incremental dollar comes in the union economics are really strong. And so, we always look throughout the organizations of ways to be more efficient. And I think that’s showing up in the numbers right now.

就獲利能力的優先順序而言，我的意思是，我們一直在說，這只是一種本質上可利用的營運模式。而且，每一美元的增加都意味著工會經濟的強勁成長。因此，我們始終在整個組織內尋找提高效率的方法。我認為這一點現在已在數字上體現出來了。

And so, we’re pleased to see that and we’ll continue to focus on that. So, I don’t know that there’s one area that we’re prioritizing over another, just trying to be kind of mindful stewards of the business and making sure that we invest in the things that are going to drive value and not spend money on the things that are not.

因此，我們很高興看到這一點，我們將繼續關注這一點。所以，我不知道我們優先考慮哪個領域，只是試圖成為業務的謹慎管理者，並確保我們投資在那些能帶來價值的事情，而不是把錢花在那些不會帶來價值的事情上。

Great. Thank you.

偉大的。謝謝。

Laura Martin with Needham & Company.

尼德漢姆公司的勞拉馬丁 (Laura Martin)。

Hey, good morning. The first one I wanted to drill down on this, I’ll call it the self-service product, what you guys are calling the software-only offering. Since you only work with the largest advertisers, wouldn’t all of them be incentive to take a cost, a lower cost product and just do it themselves through self-service so that this will actually be a headwind to growth for all of 2025, please?

嘿，早安。我想深入研究的第一個產品是自助服務產品，也就是你們所說的純軟體產品。既然您只與最大的廣告商合作，難道他們不會願意承擔成本，使用低成本產品，並透過自助服務自己完成，這樣一來，這實際上會成為 2025 年全年增長的阻力嗎？

Hey, Laura. We’ve seen – we’re definitely encouraged by this, I have to say, it’s an area we invested heavily in, we talked a lot in the past calls and meetings about AI, we’re happy to see that, so we invest. We believe that the future is what you call self-service. It’s a much more efficient model and we believe also scalable in terms of growth potential in the mid- and long-tail in terms of account size and also from a global perspective.

嘿，勞拉。我們已經看到——我們對此感到非常鼓舞，我不得不說，這是我們投入巨資的領域，我們在過去的電話會議和會議上談論了很多關於人工智慧的事情，我們很高興看到這一點，所以我們進行了投資。我們相信，未來就是所謂的自助服務。這是一個更有效率的模型，我們相信，從帳戶規模和全球視角來看，它在中長尾的成長潛力方面也具有可擴展性。

And if we look at the situation with Google and the antitrust, we believe it’s a great timing. I wouldn’t anticipate it will grow so fast, but it’s a great timing to have that product ready in market and to see the adoption.

如果我們看看谷歌和反壟斷的情況，我們認為這是一個絕佳的時機。我沒有預料到它會成長得如此之快，但現在是將該產品推向市場並見證其普及的絕佳時機。

To your question, some of the large brands, when they look for efficiency, it’s actually not – it doesn’t have to do with us as much as with the agencies. It’s the in-housing, their in-housing services and hiring employees to use the system. And in that case, and you saw the large growth, you are right that this is a trend. I wish we saw more of it, I have to say, what happened here is it grew faster than we planned.

對於您的問題，一些大品牌在尋求效率時，實際上並不是——這與我們沒有關係，而是與代理商有關。這是內部服務，他們的內部服務和僱用員工來使用該系統。在這種情況下，你看到了巨大的成長，你說得對，這是一種趨勢。我希望我們能看到更多，我不得不說，這裡發生的事情比我們計劃的要快。

So in the short-term, it hit the top-line, but overall, we believe it can actually scale the top-line, while definitely scaling the bottom-line. So this is something that we’re seeing, and I wouldn’t put all the large brands in a single bucket.

因此，從短期來看，它會影響營收，但總體而言，我們相信它實際上可以擴大營收，同時肯定可以擴大利潤。這就是我們所看到的，我不會把所有大品牌都歸為一類。

Some of them are still using outdated systems, not by Innovid, but other companies. So they’re not all acting the same, but those who are looking for additional efficiency and control, I think the key here is the control and the data that they want to have put their own hands on keyboard rather than the agency.

其中一些仍在使用過時的系統，不是 Innovid 的系統，而是其他公司的系統。所以他們的行為並不都一樣，但對於那些尋求額外效率和控制的人來說，我認為這裡的關鍵是他們想要自己而不是代理商控制的資料。

We expect to see expansion of that. We don’t provide guidance yet, I have to say, we need to monitor this, how fast this will grow. But definitely this year, we saw an increase in usage, and overall, it’s a positive trend.

我們期望看到這一趨勢的擴大。我們還沒有提供指導，我必須說，我們需要監控這一點，看看它會成長得有多快。但今年我們確實看到了使用量的增加，整體而言，這是一個正面的趨勢。

Okay. Helpful. And then on Nielsen, that was interesting, your partnership with Nielsen, how does the money work there? How do you make money from your deal with helping Nielsen make a better product for them actually? So how do you make money from that?

好的。很有幫助。然後談到尼爾森，這很有趣，您與尼爾森的合作關係，資金是如何運作的？您實際上如何從幫助尼爾森生產更好的產品的交易中獲利？那你要如何從中賺錢呢？

Yes. So we haven’t shared, yes, the financial arrangement since what we announced is in our intent to partner on, let’s call it, a joint product, or basically us empowering their product with our technology, it’s something that we’re still exploring, how exactly to make this work. I don’t believe this is something that will generate revenue in Q4 this year.

是的。所以我們還沒有分享財務安排，因為我們宣布的是我們合作的意圖，我們稱之為聯合產品，或者基本上是我們用我們的技術增強他們的產品，這是我們仍在探索的事情，如何準確地做到這一點。我不相信這會在今年第四季產生收入。

But basically, clearly, when we’re assuming this will develop into a product in market, you can imagine that we have a structure in place, which we already negotiated a structure in place in terms of how we make money out of it. It’s not going to be something that we hope to see, but something that’s contractual and is part of the revenue and the growth of the joint product, but still early days to say in terms of actually hitting the market and generating revenue.

但基本上，很明顯，當我們假設這將發展成為市場上的產品時，你可以想像我們已經有一個現有的結構，我們已經就如何從中賺錢協商了一個現有的結構。這並非我們希望看到的事情，而是一種合同，是聯合產品收入和成長的一部分，但就實際進入市場和創造收入而言，還為時過早。

Okay. And my last one is on Google. Now that we have a new president, maybe this is moot, but two weeks ago I would have asked, if Google is, if app that is forced to sell off their ad tech business, is that better for you or worse for you if their ad tech business is separate standalone from their YouTube and search first-party business?

好的。我的最後一個是在谷歌上。現在我們有了一位新總統，也許這已經沒有意義了，但兩週前我會問，如果谷歌被迫出售他們的廣告技術業務，如果他們的廣告技術業務與 YouTube 和搜索第一方業務獨立開來，這對你來說是好是壞？

We believe that regardless where this goes and who’s the president, I mean, we know who’s going to be the president. Overall, the amount of focus that this case has brought, you can read it in the World Street Journal, New York Times, and things that we’ve been saying for 10 years about the importance of having an unbiased platform that is pure tech and not skewed by media bias is something we’ve been saying for day one, and we’re very happy that it, got all the way to the DOJ and to the press, that marketers, what the decision makers and agencies; agencies,

我們相信，無論結果如何，無論誰當總統，我們都知道誰會當總統。總的來說，這個案件引起了廣泛關注，你可以在《華爾街日報》和《紐約時報》上看到。我們十年來一直在強調，建立一個純粹的技術平台、不受媒體偏見影響的重要性，這是我們從第一天起就一直在強調的。我們很高興這個案件一路傳到了司法部和媒體，行銷人員、決策者和代理商；

I believe, knew more about this than marketers, but marketers are now way better educated about the challenges and risks that it has for them and overall the market.

我相信，我們比行銷人員更了解這一點，但行銷人員現在對他們以及整個市場所面臨的挑戰和風險有了更好的了解。

So, I believe the benefit is going to stay regardless if it’s going to split or not. I think even if it was split that that is something that’s taken many, many, many years. So I don’t think it’s anything that can happen even under a different administration any time soon.

因此，我相信無論是否分割，利益都會保留下來。我認為，即使將其拆分，那也需要花費很多很多年的時間。因此，我認為即使在不同的政府領導下，這種事情也不可能在短期內發生。

Overall, I think it’s a good thing that there’s attention to the ad server and the importance of the data and how the data could be used to potentially manipulate the outcomes. And we believe it’s something that more and more brands should understand the benefit of switching to innovate to an unbiased vendor to make sure that their data is in safe hands and it’s not being used in a way against them, against the bottom-line.

總的來說，我認為專注於廣告伺服器和數據的重要性以及如何使用數據來操縱結果是一件好事。我們相信，越來越多的品牌應該認識到轉向公正的供應商進行創新的好處，以確保他們的數據處於安全狀態，並且不會以對他們不利、損害底線的方式被使用。

Super helpful. Thanks very much. Thanks, Zvika.

超有幫助。非常感謝。謝謝，Zvika。

Thank you.

謝謝。

Shyam Patil with Susquehanna.

薩斯奎哈納 (Susquehanna) 的 Shyam Patil。

Good morning. This is Aaron Samuels on for Shyam. Thank you for taking our questions. Maybe starting off, Zvika, with ad supported CTV offerings like Prime Video and Netflix scaling quickly internationally, can you refresh us on how you’re thinking about the international CTV opportunity and what Innovid is doing to make sure it’s well positioned in markets outside the US?

早安.這是 Shyam 的 Aaron Samuels。感謝您回答我們的問題。首先，Zvika，隨著 Prime Video 和 Netflix 等廣告支持的 CTV 產品在國際上迅速擴張，您能否向我們介紹一下您對國際 CTV 機遇的看法，以及 Innovid 正在採取哪些措施來確保其在美國以外的市場佔據有利地位？

Absolutely, and thanks for bringing this massive growth opportunity to the front lines. We kind of put this on the back burner a year or two years ago with the economy slowing down. Definitely and CTV not being a major trend outside of the US it’s clear that platforms like Netflix, Amazon, and Disney, I would say also, Disney Plus, all with premium content,

當然，感謝您為前線帶來如此巨大的成長機會。一兩年前，隨著經濟放緩，我們就把這個問題擱置了。當然，CTV 在美國以外並不是一個主要趨勢，但很明顯，像 Netflix、亞馬遜和迪士尼這樣的平台，我想說的還有 Disney+，它們都提供優質內容，

All of them now offer an option to be ad-based on CTV, basically generate create markets, in markets where CTV did not have the Netflix, phenomena to push people to use their smart TVs, not through broadcast, but actually connect them.

現在，它們都提供了基於 CTV 的廣告選項，基本上是在 CTV 沒有 Netflix 的市場中創造市場，推動人們使用智慧電視，不是透過廣播，而是實際連接它們。

It’s literally that moment when you connect your TV to the Internet through the Wi-Fi and putting the password, that’s the kind of once you do that and you enter the App Store to install Netflix, you’ll install also other applications, maybe local applications, and by this increase the amount of money that’s moving from linear to CTV. So that’s a great opportunity.

確切地說，就是當你透過 Wi-Fi 將電視連接到互聯網並輸入密碼時，一旦你這樣做了，你就會進入 App Store 安裝 Netflix，你還會安裝其他應用程序，可能是本地應用程序，這樣就可以增加從線性到 CTV 的資金量。所以這是一個很好的機會。

Our way of growth, we have a deep integration in the US with Netflix – sorry, not just in the US we can deliver ads into Netflix anywhere. Currently, most of our revenue is coming from global brands that are US based, so the large auto, large farmers, et cetera. We believe it’s a massive opportunity. We’re not giving guidance. It would be interesting to debate not on this call. It’s 2025, the year that the trends you mentioned with Amazon and Netflix pushing, they’re really going to create a massive market outside of the US for CTV. It’s yet to be seen.

我們的成長方式是，我們在美國與 Netflix 進行了深度整合——抱歉，不僅僅是在美國，我們還可以在任何地方向 Netflix 投放廣告。目前，我們大部分的收入來自美國的全球品牌，例如大型汽車、大型農場主等等。我們相信這是一個巨大的機會。我們不提供指導。在這次電話會議上進行辯論將會很有趣。現在是 2025 年，也就是您提到的亞馬遜和 Netflix 推動的趨勢的一年，他們將真正在美國以外為 CTV 創造一個巨大的市場。這還有待觀察。

From an infrastructure perspective, we’re already delivering every corner of the world except China. We’re streaming ads in every country, every corner across thousands of publishers already. The key is about really adopting the tools and the platforms, but by brands that operate outside of the US The key will be having significant scale, enough scale to justify to move to Innovid.

從基礎設施角度來看，我們的業務範圍已經涵蓋中國以外的世界各地。我們已經在每個國家、每個角落透過數千家出版商投放串流廣告。關鍵在於真正採用這些工具和平台，但對於在美國以外經營的品牌來說，關鍵在於擁有相當大的規模，足夠的規模來證明轉向 Innovid 是合理的。

Great. Thank you. And then, Tony, maybe one for you on the margin trajectory. Obviously, the business is showing really nice operating leverage. In terms of the long-term target of 30% EBITDA margins, how would you say that you’re tracking against that? Any kind of color in terms of timeline here, is this something that we could see in the next one or two years, or is it maybe a longer-term target?

偉大的。謝謝。然後，托尼，也許你在邊際軌跡上有一個。顯然，該業務展現了非常好的經營槓桿。就 30% EBITDA 利潤率的長期目標而言，您認為您如何實現這一目標？這裡的時間線有什麼特色嗎？這是我們能在未來一兩年內看到的事嗎？或者它可能是長期目標？

Yeah. No, great question. I mean, we’re tracking well against them. I think we’ve seen, I’ll call this that out again, because we do feel good about nine straight quarters of margin expansion, a year-over-year margin expansion, 22% in Q3. And, I think in terms of the timing to how we get to 30%, a lot of it’s going to be based on the market.

是的。不，這個問題問得好。我的意思是，我們正在很好地追蹤他們。我想我們已經看到了，我會再次提到這一點，因為我們確實對連續九個季度的利潤率增長感到滿意，利潤率同比增長，第三季度增長了 22%。而且，我認為就我們如何達到 30% 的時機而言，這很大程度取決於市場。

And, I think what we’re trying to do is manage the business the best we can in a market where the growth hasn’t been consistent. And what we’ve always said is that as we see growth, we’ll be investing behind it. And so that’ll continue in the future.

我認為，我們正在努力做的就是在成長不穩定的市場中盡最大努力管理業務。我們一直說的是，只要我們看到成長，我們就會對其進行投資。未來這種情況還會持續下去。

And if we see an opportunity to kind of invest behind some growth and accelerate it, we’ll do that, and there might be some near-term margins will expand as past. And in quarters like this, where we’ve seen slower growth, that’s where we can really lean in.

如果我們看到有機會投資並加速成長，我們就會這麼做，而且短期內利潤率可能會像過去一樣擴大。在這樣的季度中，我們看到成長放緩，這正是我們真正可以依靠的地方。

So, I think, it’s – I’m not trying to avoid the question. It’s really, we’re going to see the successes that we’ve had and the market adoption of CTV in general and kind of invest behind that. So, certainly this is something that we could see ourselves getting to in the reasonably near-term somewhere over the next couple of years.

所以，我認為，我並不是想迴避這個問題。事實上，我們將會看到我們所取得的成功以及 CTV 的普遍市場採用情況，並對其進行投資。因此，我們肯定可以預見，在未來幾年內，我們可以在相當短的時間內實現這一目標。

And if you just kind of take the trajectory of where we’ve been and how we’ve grown EBITDA as a margin percentage over the last year or so, we’d expect that to happen. I mean, we said 2025, we’ll give guidance when we do our Q4 results. But, we certainly see the opportunity to expand margins again in 2025, one step closer to that 30%.

如果你看一下我們的發展軌跡以及過去一年左右我們的 EBITDA 作為利潤率百分比的成長情況，我們預計這種情況會發生。我的意思是，我們說過 2025 年，我們將在公佈第四季度業績時給予指導。但是，我們確實看到了 2025 年再次擴大利潤率的機會，距離 30% 更近了一步。

That’s really helpful. Thank you.

這真的很有幫助。謝謝。

Thank you. At this time, we’ve reached end of our question-and-answer session. I’ll hand the floor back to Zvika Netter for closing remarks.

謝謝。至此，我們的問答環節已經結束。我將把發言權交還給 Zvika Netter 做結束語。

Thank you. We’re very proud to deliver another quarter of profitable growth, despite the underlying challenges. These results maintain our path to interjectory towards our long-term targets. Today, we remain well positioned to the exciting opportunity of CTV growth. And we’re taking the necessary step to reaccelerate our top-line growth. And I look forward to keeping all of you updated about our progress.

謝謝。儘管面臨潛在挑戰，我們仍非常自豪地實現了另一個季度的獲利成長。這些結果使我們朝著長期目標邁進。今天，我們仍然處於有利地位，可以抓住 CTV 成長的令人興奮的機會。我們正在採取必要措施，重新加速我們的營收成長。我期待向大家通報我們的進展。

Thank you very much, and have a wonderful day. Goodbye.

非常感謝，祝您有美好的一天。再見。

This will conclude today’s conference. We may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。我們此時可能會斷開您的線路。感謝您的參與。