Nexxen International Ltd. (NEXN) Earnings Call Transcript & Summary

Good morning, everyone. For those of you who do know me, my name is Billy Eckert, and I'm Nexxen's Head of Investor Relations. And we're very pleased to welcome you to our first U.S. Investor Day. Before we get started, I want to just extend a sincere thank you to everybody in the room that was able to be here today as well as to everybody watching along on the stream. It's been a transformational few years for us. Over the last couple of years, we went out and did the largest acquisition in our company's history and ultimately following the integration, have created a platform with some of the industry's most comprehensive capabilities. We spent a lot of time upgrading our talent across the organization, especially within our sales and marketing team. We rebranded the company to Nexxen to be able to better showcase to the industry, the holistic value our platform brings to both sides of the ecosystem. And we listen to you guys, the Wall Street community about reducing the complexity of our trading structure and streamlined to a single U.S. listing to make us more investable to the U.S. universe. And we believe all of this in combination positions us very strongly to execute and grow into the future. And also, we believe it makes us a very compelling investment opportunity. So we have a jam pack show for you guys today. We're going to go under the hood of the company a little bit. We're going to begin with an overview from our CEO, Ofer Druker, about our focuses and strategic vision. You're going to hear an industry outlook from Terry Kawaja, who's the CEO of Luma Partners, who we're very excited to have with us today. We're going to do a deep dive into our product suite with our Chief Product Officer, Karim Rayes, including introducing some of our capabilities as well as upcoming innovations. Following that, we'll take a short break. Directly after, you'll get an opportunity to hear from some of our customers about why they choose Nexxen, and why we're strongly positioned within the industry. Following that, you'll hear from our sales and marketing team a little bit about our go-to-market strategy. And finally, we'll wrap up with our CFO, Sagi Niri, giving a little bit of an overview of our financials and growth outlook, followed by closing remarks and Q&A. And for Q&A, we will be saving all questions until the end at a dedicated session following the last closing remarks section. So before I introduce our first speaker, I just want to clear this up from the legal side. We absolutely will be making forward-looking statements today and anybody that wants to read the language in here, please feel free to. So again, we're incredibly excited to have everybody here today. And with that, it is my pleasure to introduce Ofer Druker, CEO of Nexxen. Thank you so much, everyone.

Thank you, Billy. When I'm listening to Billy, I said that I should leave him on the stage all day. He should do all the presentation with his skills, he's very good. Good morning. I'm Ofer. I'm the CEO of Nexxen International. And we are going, as Billy said, we are going to discuss a little bit and show things that we've done in Nexxen. First of all, Nexxen is an end-to-end adtech platform that empower advertisers, agencies and digital publishers through interconnected data AI technology to maximize performance across programmatic video, CTV and omnichannel advertising. It's a long statement, but we will explain it in a few minutes. When we are talking about a full end-to-end platform, what do we mean? We mean that all the tech stack that is sitting between the advertiser, which is the demand side in our world to the publisher side, which represents as the enabler to reach the targeted audience, we occupy this position. And we have a fully functional DSP, demand side platform; fully functional SSP, supply side platform and a very robust data management platform that we will talk about that is sitting in the center of our business and our technology. And it's enabling the clients that we have to do some very important, of course, missions. One of them is planning that we will talk about, the second one is targeting and the third one is measurement. We, in general, allow advertisers and clients to utilize portion of our technology. They can choose to use the DSP or SSP if they want to. But of course, we encourage them to use the full stack because in this case, they are gaining more efficiency, simplicity and of course, better pricing. And for us, it's also serving our needs because it's increasing our margin in general of our activity. And about already 50% of our business is moving from end to end today. How we got to this point that we have such a strong tech? So basically, we described you a journey that we've done in the last 8 years, that is based on building and buying entities. We started this journey in 2017 when we acquired Tremor DSP. This DSP was specialized in video advertising. Immediately after we acquired the company, we understood that in order to be successful in this industry, you need to be end-to-end. Now why? Because you need margins in order to support innovation and growth, and you cannot do that with one-side platform. Also, we looked around and we saw that basically, the margin of the one-sided platforms will shrink. By doing that, 2 years later we acquired -- less than 2 years later, we acquired RhythmOne, that gave us basically a very strong SSP and DMP, and we connected that together to become Tremor International. This was one of the first, if not the first, adtech company that has fully end-to-end solution with fully functional DSP and SSP. One interesting thing because we are now in 2025. When we did it in 2019, people were criticizing us and saying that we are biased and so on. Now everybody is imitating us. And if you look at all the slogans and all the pictures of -- most of our peers, they are talking about end-to-end solutions. One year later, we acquired Unruly. We acquired Unruly in order to add a big list of publishers and advertisers. And of course, talented people that some of them even sit with us today here in this room, and it was a very big push to our business because of the recognition and the size of the business that we got from Unruly. In 2022, we made our major acquisition of Amobee. The reason that we acquired Amobee or the central reason that we acquired Amobee was the enterprise DSP that we thought that is needed in the industry not to be relying on revenues that is just coming from the outside and to be able to support our growth by ourselves. We acquired Amobee, we integrated everything together, and it gave us a tool that we can basically provide to clients and agencies in order to serve their ads in self-serve. And we are really happy with this acquisition, and we conducted everything, connected everything together, which was not an easy mission because Amobee was a much bigger company than us. There were 1,000 people. We were 600 people, but we managed to do that relatively quickly, and we build one platform that is serving our needs. And in 2023, we basically rebranded everything under Nexxen. It was a very important step because it allow us to simplify the message and story to ourselves, first of all, but also, of course, to the market, which help us to generate much better results in 2024, and we showed last week our results for Q1, so we can see that the momentum is continuing. When we look at our full technology today, we can see how it was built. And we also invested a lot of money through these years. Through -- today, we have about 300 to 350 people in R&D and product in U.S., in Europe, in East Europe a little bit and in Israel that are working on these projects. And more than $1 billion were invested in our tech stack that is the center of our business. One more thing is like last quarter, we basically delisted after many, many years. We were dual listed from 2021 in NASDAQ and AIM. Last quarter, we delisted from London, moved to the U.S., which helped us, of course, in many areas. We increased the investors and analyst interest. We basically boosted the daily volumes of our shares trading, and we are now eligible to be included in indices in the stock exchange in NASDAQ, because before that, we couldn't do that. When we are looking at the ecosystem today, we feel that through our strategy and technology, we have the solution and how to manage the challenges and the opportunities of the market. What I mean by that, if we're looking at the opportunities, we are talking about CTV. We are talking about data. We are talking about AI. We are talking about video advertising, which is central in everything that is happening now in the industry. We are there. We have the platform, we have the strategy, we have the business model that support that. And also some growth engines that can be also challenges sometimes that you want to be like end-to-end solution, you want to have to streamline some of the processes because we need to remember that the job of the advertisers and the merchants is not to run adtech business. They need to reach their targets and to do that in a simple manner and not to invest in that most of the resources. Just a few numbers about the industry that we are living in. So on the left side, we can see the programmatic video growth, which grew by 17% in CAGR in the last 3 years. For us, video was very important from almost day one that we acquired Tremor is 72% of our business is running on video. When we are looking on the right side, we see CTV that grew 70% in CAGR also. For us, it's 35% already of net revenue in programmatic level, which is very meaningful. 89% of our business is running programmatically and 86% of our campaigns on our platforms are associated with data, which is showing the importance of data for us in the ecosystem and how we utilize it in order to generate results and stickiness with clients. We will talk a lot today about our data platform. This is sitting in the center of everything we do. This is our main differentiator, and this is something that we invest a lot of innovation, money, time and thoughts in order how to make it more robust and meaningful. And I'm glad to announce this morning an exciting news. This morning here, we signed a nonbinding MoU with VIDAA, in order to extend the agreement that we have with them for several years and to invest -- potentially invest money in the company to grow their presence in the U.S. and to keep managing the ACR globally, which is very meaningful for us. Because as you know, VIDAA is part of Hisense and Hisense is one of the growing CTV producer -- TV producer in the world. And now since we invested with them not because of us, because of their hard work, we see them growing and taking the second position in delivering TVs in the market. When we're looking at media, we are talking -- when you're looking at data, Karim will talk about it a lot, but it's not just a static database that we are pulling information from, it's very alive and it's creating a dialogue with the client. The client can launch his data, enrich it, get insights from that and use it in order to create audiences, which is very important in our business because in the end of the day, static databases are good. But if you want to utilize the power of data and now with AI that we will talk about it in a second, it's very powerful to have the ability to get like what we call a live data set that you can use. AI. AI is a very big word. You hear it every connection to everything lately. We are doing -- we believe that we have a very big advantage around AI, and I will explain why. AI, most of the other companies, which are one-sided, they cannot get data across the journey of the campaign, we do. We are end-to-end solution. We are sitting on the DSP, DMP and SSP and even ad servers. So we can basically have a lot of touch points with the journey of the campaign and can influence it, which is very meaningful. And the second thing, we are reaching data. In order to be able to feed the AI to take decision to optimize, to do things, to analyze, you need that a lot of data reach point, and we have them. So we believe that we have an advantage. A few weeks ago, we released our first agent that is basically helping the DSP to people that are managing our DSP in order to manage campaigns and optimize them on the fly. The clients that are already using it are very excited, and we are getting very good feedback from that. And of course, it will enhance stickiness and will help these companies to move more spend to our platform. The second element that we announced this morning is we are going to release an AI agent for our discovery tool, which is our data management platform that will enable clients to get insights and sentiment in a very quick manner on our platform that usually took a few hours and you need analysts in order to do that and so on. It's now done in a few minutes, very quickly, very easily, and you can basically utilize these insights in your campaign. And if you will ask agency people, they will tell you that the most important stuff for them when they are serving a new client or serving current clients is to know about their audience, to know about -- to get insights about the audience to get sentiment -- their sentiment and what is their -- where they are basically serving and what they are doing and how they are connected to the Internet. And our system will be able to do that much faster now. The last point is the SSP. Basically, when we are looking at that, we will get there in the future, we'll keep developing agents. And the fact that we have all the systems is enabling us basically to -- is enabling us basically to manage all of them in parallel. In order to -- when we are looking at 2025 now, and we are looking at the current situation in the market, the trends, the opportunities and so on, we feel that we are in a very strong position of strength compared to our peers because we have the full technology that everybody is talking about. We got it already. We are utilizing it for 6 years, which is very meaningful. And from our experience and my experience personally when looking at that, even when you recognize that you are missing something, it will take your time to close the gap. And I think that we have an advantage in this manner. And when we are looking at that, we are in a CTV leadership position. We strong -- we have a strong and differentiated data sets and capabilities, not just data set, as I mentioned, but also capabilities, which are super important in this case, end-to-end model that is increasing the healthiness of our company and helping us to also to cross uncertain situation like developed in the beginning of the year and up we hope that it will clear out. Our vision, our vision basically is to becoming adtech leading strategic end-to-end platform partner for people. People are looking for that. In the past, I remember when we launched it in 2019, we went and try to educate people why they need one platform. Why it will help them. Now one of the first question that they ask us if we have the end-to-end solution and if we can -- if they can rely basically on our tech to build their strategy and to utilize this in order to win. So platform partner, empowering clients to win in programmatic video, CTV and omnichannel advertising while continuously enhancing performance through data and AI innovation. As I mentioned this morning, we are expanding and extending our -- we signed a nonbinding agreement with VIDAA in order to extend our agreement and to invest more in the U.S. market and other markets in order to take it to the next level because we strongly believe, first of all, in our partnership with VIDAA, but also in the TV world that is super important for the future of online advertising. With that, I will hand over the mic and the stage to Terry Kawaja, a strategic -- a senior strategic adviser of this industry that I always like to listen to his analysis. So Terry. Thank you, Terry.

Thank you, Ofer. So this is the first time I've ever addressed an Investor Day, I'm usually speaking at an industry conference where we're delving into some of the depths of what's going on in advertising technology. I have the task here of trying to explain the state of advertising technology in 15 minutes, which I will tell you is impossible. But we'll try and hit some of the highlights and hopefully, some of the things that Ofer touched on in terms of what Nexxen is looking to execute. So I run an investment bank. We focus at the intersection of media marketing and technology and have done a lot of the deals in around AdTech and MarTech and in this sector, as we'll talk about, the complexity of it necessitates that you really understand sort of where the industry is going, what the key parameters are and develop the kind of trusted relationships so that you can formulate these deals. What attracted us to this sector was the confluence of 5 attributes, scale, growth, fragmentation, complexity and dynamics and it's almost rare that you get these 5 together at once. I mean $1 trillion of ad spend, that's enormous scale on a global level, growing at almost 20% a year for the last 20 years. So that's almost unreplicable sort of TAM. Tremendous fragmentation is depicted by these graphics that we've published called the LUMAscapes that show all the companies in the space, but there are literally thousands of companies, and that compares to other industries that tend to max out at dozens or hundreds at its Apex. Complexity, there's a lot of moving parts between media and data and software that make up this sort of ecosystem. And then dynamics, things keep changing, policy changes, governmental regulation and new technologies, particularly AI. So agility is key. Some of these are tailwinds. Some of these are kind of like moats, making it difficult for others to come in. And if you had to step back and think about, well, what has happened to companies in the space over the last decade. This is not exact science, but it's sort of indicative of sort of where things have gone. And what you'll observe is value has accrued to the middle. So if you think about what's happened with these -- I picked 4 cohorts, agencies, adtech intermediaries, the independent ones, big tech and publishers. If you go back 10 years and compare the market caps, you've got agency market caps are down, okay, because technology, basically when media buying went from an art to a science, they kind of lost out because they didn't have that technology. Flip side is publishers have barely held their own with this cohort, but you could come up with an analysis that have suggested that they have not done well in the transfer of this modality of media buying. And the big winners are really the adtech intermediaries, now it's not -- I'm not comparing the $7 billion of market cap in 2015 to the 2007 because it's not the same cohort. But suffice to say that a tremendous amount of growth has happened across what was historically mostly private companies that are now public, but a lot of value has been created there. And in particular, big tech has totally boomed. And what are the attributes of big tech that have helped them. And I'm just picking these three. Obviously, Amazon is only about 10% ads, Google and Meta over 90%, massive scale. They operate in a growth channel, which is key. They do, as Ofer mentioned, connect demand with supply. They have a data flywheel and technology that drives optimization. So great. Big Tech is doing well, but what about independent adtech? Well, as it turns out, there is an example of companies in independent adtech that have managed to replicate all five of these attributes in order to succeed, and that is AppLovin in the mobile app space. This is a company, by the way, $130 billion of market cap that's up almost fourfold in the last year. It's a really explosive stock as I'm sure you're aware. And they managed through M&A, we were fortunate to help them with these strategies connected. They bought MoPub for $1 billion from Twitter, which gave them supply to connect with their demand. We sold them MAX, which gave them a data flywheel with their mediation solution. They launched their own AI machine learning technology, AXON 2.0, which materially improved results for their clients. Now this is a different space, right? This is in the mobile app space that's in the sort of strict performance space. But as we'll talk about, this is coming, I think, to all marketers. So a phenomenal success story of a company, an independent company that has managed to replicate many of these attributes in order to succeed. And look, again, as mentioned, this growth rate has been pretty phenomenal. This is just display ad spend growing at around 20%. And you'll note that most of it is programmatic, right? That sort of shift from art to science in terms of how to intermediate. And yet, the display LUMAscape is just an example, an image of how complex and fragmented this ecosystem is, lots and lots of moving parts. And I would suggest inefficient in terms of all the handoffs amongst all the parties, all the sort of mouth to feed along the way that are each taking a cut, which has -- tends to reduce yield to publishers from the total of ad spend. And so what we've noticed is companies executing what we call horizontal strategies, connecting their demand with supply for a variety of reasons. It makes it a more efficient supply chain, better outcomes for the principal. So that means a better ROI for advertisers, higher yield for publishers. Better margin capture for the intermediaries because they've got both sides and enhanced data husbandry in an era where there's a lot of privacy sensitivities. And a function of this was because of what has happened on the data side. We had a wild world of third-party data historically in this industry were cookies, this little JavaScript on publisher websites, enabled intermediaries to do some targeting as to who was seeing which ad. And of course, between GDPR regulation and Apple's moves and then Google's at least initially signaled moves to deprecate the cookie essentially transfer, shifted this world from a third-party data to a first-party data world that unlike the old world that was great with scale, ubiquity and ease now delivers fidelity, control and privacy. And that actually initially created a problem for these adtech intermediaries because they lost all of this signal. And yet the biggest of them, and we'll see with more companies, responded with a technology adaptation that basically resolved this. If you look at -- you don't quite see it as much in Google's numbers because of search. But in Meta and AppLovin, they went through a trough of their stock performance when they were dealing with this signal deprecation and then came back with these new technologies that substantially enhanced their performance, and they're all the way back. Basically, they've moved past that signal loss. And signal is important because data and performance, which are connected, is driving growth. You could think of this as in gestations, right? Initially, the mobile gaming community really figured out the relationship between the lifetime value of a customer and the customer acquisition cost. So that CAC to LTV ratio was critical for them to understand where to spend their dollars. And in their minds, advertising was not a discretionary expense, but rather a cost of goods sold, an absolute necessity to drive growth. Well, that caught on with the mobile app players, next where the direct-to-consumer companies, and we can see this now coming to all marketers where they're placing performance at the top of their priority list. In fact, a recent survey suggested that 70% of brands are facing pressure to demonstrate ROI, where the CFO wants growth, the CMO, which was historically just managing marketing spend is now trying to figure out how to make sure that, that drives outcomes. And we see this across a variety of channels in mobile app. As I mentioned, that was almost born with the performance mindset. We're seeing it in commerce media, which is basically all of these retailers realizing that they have this incredible first-party data collection that they can turn into a media business. We'll talk about that more in a minute. And then the CTV space, where not only are they capturing eyeballs from the shift from linear viewers, but they're also now going after performance advertisers. So on commerce media, this is kind of like one of the fastest-growing sort of subsectors, much faster than search, much faster than social such that they reached $1 billion in 5 years and is actually now over close to $70 billion in spend. A big chunk of that from Amazon, but many, many followers. There are hundreds of companies that have launched retail media networks. And it's important to understand that, yes, they're selling ads on their websites. That's the retail media sort of channel, if you will, but it's both a channel and the layer, because they're taking the first-party data that gives them intense signal in terms of the interest of the visitor to their website, because they know the conversion and then taking that data and applying it to other channels like search, social, mobile app, open web and yes, CTV. In CTV, the premise, as I'm sure you're well aware, is this notion of being able to take the digital attributes of targeting personalization, attribution and performance and applying that to the big screen where you've got sight, sound and motion, audience and spend scale, premium inventory and brand safety. So it's a very exciting premise, this notion of the growth of marriage between the television and digital. And you can see it in the numbers. Linear is in decline as more people cut cords and watch streaming viewing. By the way, the litmus or the indicator of where that growth rate, that linear decline will inflect is all premised on live sports. Basically, the NFL, which comprises about 92 of the top 100 shows in television -- in linear television is really the duct tape of the cable bundle, and we're going to see CTV accelerate when those rights transfer to more digital channels and streaming. And you're -- it's almost daily that you're seeing new and new announcements of sports shows that are transferring to digital. And the opportunity here in CTV is really to democratize TV ad spend. So if you think about it, CBS has 200 advertisers. Facebook has over 10 million and the idea that you can then bring a channel to advertisers heretofore had never advertised in television is a really democratizing effect. That's great for the advertisers, but it also creates a better business model for the intermediaries. So if you think of a distribution from head to tail, the operating leverage goes up, which as evidenced by the large tech companies that basically operate millions or tens of millions in some cases advertisers. So none of those advertisers sort of have control over those platforms. It's harder to get there, but when you do, you get a better business model. And as I mentioned, almost every major TV platform is exploring ways to attract this new smaller, more performant advertiser. Ofer mentioned, AI. AI is going to completely disrupt this industry. And we sort of have this construct of a hierarchy of sort of how it's going to be applied. So think about Maslow, right, the sort of the core functionalities of workflow, audience data, measurement and media buying, which is what adtech intermediaries do every single day. AI represents software that's going to substantially improve the efficiency of that capability. Next rung up is content, ad creative and communications, where you could think of this as AI as being software that helps, yes, with efficiency, but mostly with effectiveness, right? That's where the biggest determinant of whether an ad works or not is the creative. And so it's fascinating to see how this is going to manifest. Next up is Internet navigation. And this is a big one, because AI providing answers has a premise that it can fundamentally disrupt search advertising and maybe even web publishing just largely because it's a different navigation path. You're seeing Google announced this morning or yesterday at their I/O conference, a product to sort of provide ads. And we're seeing OpenAI, Perplexity, others understand that these large language models, which started with a subscription premise, they're spending so much money. They have hundreds of billions of dollars they have to return capital on. They variably will go to some combination of an ad or a commerce linked centric model or some kind of an affiliate or ad model, and they're all experimenting with formats. And then finally, there's the sort of Donald Rumsfeld unknown unknowns. Who knows, a very powerful technology and it's constantly developing. And by the way, you're hearing a lot about agents. This is sort of done two ways. It's either software that humans control or it's agentic which is the software that the software controls, and we're going to see a mix of the two. And as I mentioned, this stands the premise of fundamentally reengineering of this whole ecosystem. Mark Zuckerberg has gone so far as to suggest that it could fundamentally change the relationship between GDP and ad spend if done right, which is basically a relationship that has been constant for over 50 years. So these are just some of the trends, the takeaways I would suggest for the ecosystem. Advertisers are increasingly focused on performance. Scale data and technology are key to delivering outcomes. So it's, again, art to science, this fragmented ecosystem has consolidated somewhat, but it's still in need, and I would suggest we'll be as poised for additional rationalization. Intermediaries focused on key growth sectors are best situated. So you want to be in the CTV or the commerce media or the video space as opposed to just display. AI will be both table stakes and highly disruptive. So having an in-market AI capability is essential and companies in the sector, again, above all, need agility because of the dynamics, because of the fast-moving pace, they have to demonstrate the ability to iterate on product in market and speaking of product, I guess, next up is Karim Rayes, Chief Product Officer from Nexxen. Thank you.

Thank you, Terry. Welcome, everyone. I'm Karim Rayes. I'm the Chief Product Officer at Nexxen. Today, we'll take a deeper look at our platform and how it differentiates us in market. It helps us drive stickiness with our current customers and help us win new customers in business and driving profitable growth for the company. We'll go over our product portfolio and show you how these integrated products work together, and we'll then discuss some of the new innovations that we're working on in the product team at Nexxen. So as we've discussed already today, Nexxen operates an end-to-end programmatic platform. This consists of an SSP or supply-side platform, a DSP or demand-side platform, and these are connected together through our data platform. So while in their own rights, each of these platforms compete with the best-in-class in the industry. Our philosophy is really that the integration of these assets together is what is unique about Nexxen and what will drive our growth in the future. If you look at -- if you look at the customer journey across the board, we are able to support customers through their audience onboarding, their planning, their syndication of those segments, that activation of that segment and real-time optimization, leveraging that first-party data. And finally, the measurement of the campaigns, leveraging our data platform. So this brings cost efficiencies to our customers as they're able to leverage our tools end to end. And for Nexxen, of course, it gives us a higher addressable market, increased profitability per customer, and that profitably enables us to continue to invest in our platform and continue our leadership position there. At the central of this platform is the Nexxen data platform. Ofer mentioned this a little bit the earlier, but 86% of our campaigns leverage audiences from our data platform. It's central in how we sell and how we go to market and a very important part of our company. So if we zoom in on the data platform, this data platform essentially is a collection of integrated products that work together to operate the end-to-end workflow of a customer's journey. So this starts with data onboarding. So we onboard direct data from our customers into the platform. This data is then used to plan and build insights around that data, find new customers, understand the viewership behaviors, trend sentiment, et cetera. And from those insights, we're able to generate enhanced audiences that are then pushed to our SSP and DSP for activation. These audiences are used for targeting, of course, but they're also used in real-time optimization. So we're leveraging these audiences in real time through our models to optimize campaigns. And finally, as the campaigns wrap up, we leverage this data platform to measure the impact of the campaigns and understand the return on investment. And those insights are going back into our planning tools to then feed the next planning cycle for the campaigns. Integral to this platform and central to this data platform is the Nexxen unified identity graph. So what this does, we talked a little bit about Google, Facebook, et cetera, like the power of these big tech platforms is that the audiences and the advertisers sit in the same platform. So we're able, through this device graph essentially to connect consumers to brands end to end. So Nexxen users are consistent across every step of the campaign cycle. So we're planning, activating, measuring off the same audiences through the SSP and DSP. Last year, we've launched our direct data onboarding functionalities to the Nexxen clean rooms. So what this is essentially is a way for customers to directly onboard their data into the Nexxen platform. So we can go anywhere from e-mails to names to addresses, to biddable IDs and onboard that data into the platform in a privacy safe way. From there, that data goes through the Nexxen unified graphs and essentially connects it to Nexxen biddable IDs across our ecosystem. So we're able from there to build audiences for our insights and activate against these audience across the platform. This is very high investment for us, a key to our strategy moving forward. We want to be the platform of choice to enable and empower first-party audiences across the industry. We believe that we have the right tools and the right connection of assets to do that and to essentially become the leading platform for anyone looking to drive value of their first-party data. And speaking of differentiation, I would say one of our most differentiated products in the company is Nexxen Discovery, which is built on top of the Nexxen data platform. Discovery is really the starting point of our planning process, providing key audience insights, competitive analysis, consumer sentiment tracking and content consumption trend on both web and television. Now Discovery is a living system. So this system case stays current in real time, and that really enables marketers to make real-time decisions on their campaign as they're running and optimize to drive value across the campaign journey. Now what makes really Discovery unique versus a lot of these insight platforms you see in the industry is that we're able to go directly from planning and insights to activation, meaning any plan you built into the platform can be translated into an actionable audience that is then leveraged in our DSP and SSP for targeting and optimization. So it's really an end-to-end solution that streamlines that process of planning to activation. It is, I would say, the strongest sales tool in the company. We leveraged this heavily to sell and bring in new clients to the platform and one of our largest investment area for our teams. Next, when it comes to the data platform, Nexxen has access to exclusive data assets. Ofer touched on this a little bit. We have a partnership with VIDAA, which is the operating system of Hisense televisions. This partnership is exclusive to Nexxen. And if you look at VIDAA, it's essentially the operating system on Hisense television, but also over a 100 OEMs across the world. We have worldwide access to this data. And we see this partnership really as a key driver in fueling Nexxen's growth in the coming years. Now Hisense, as Ofer mentioned, is the #2 sold TV in the world in 2024. Their growth has been fantastic. And if we look at VIDAA, it's one of the fastest-growing operating system worldwide as well. This relationship goes beyond licensing of the data. So one, we're investors in VIDAA, and we're a good family. But beyond that, we operate the technology in the TVs that is capturing this data. So it's essentially Nexxen technology that's deployed in the TVs that is pulling ACR data for usage in our platform. So what is ACR data? Think of it as viewership data. So this is the content people consume, whether that's we're talking about movies, TV shows, live events, even gaming. We capture both content and ads people were exposed to on television. This data is used for TV planning to understand how to deploy your budgets across television, for both linear and digital. It is used for activation for targeting of audiences within our platform. And of course, it's used for measurement as well to understand the impact of viewership against the campaigns. So really, as dollars shift from digital to -- sorry, from linear to digital, this is a really key data assets to understand the consumer behavior and be prepared for that transition. Next, let's talk about our DSP. I would say like our DSP is arguably one of the best kept secret in adtech. Of course, through all the name transitions and all of that, we're now raising the awareness of the Nexxen brand when it comes to this platform. We operate one of the programmatic industry's best-in-class enterprise demand side platform. It's packed with features including sophisticated real-time bidding algorithms, powerful tools that will help our customers streamline with their workflow and work faster and more efficiently. It also includes a large CTV marketplace. So this is where the connection of our SSP and DSP come together, and our publishers are able to transact directly or advertisers on the platform. And of course, it connects to our Nexxen data platform, bringing these unique data assets for our customers, but also all of our data tools available in the company. Numbers you can see here on the right, that's ending fiscal year 2024, it should give you a good sense of the scale of the platform today. We're seeing good growth in this platform, both from current customers that will help them grow their business, but also adding new customers to the platform on a regular basis. So it's a larger growth area for our company. Earlier this year, we've launched the nexAI DSP assistant. Next, let's take a quick sneak peek of what that looks like. [Presentation]

So this is nexAI our DSP assistant. We're exceptionally excited about this product. We're going to continue to innovate on this and add features for our customers. It's already live with multiple customers today, and we're going to be growing this through the year. Now shifting to the other side of the platform, there's the Nexxen SSP. So the Nexxen SSP is an industry-leading supply side platform. It connects with over 1,500 direct publishers across CTV, mobile and web. Now while it's an omnichannel SSP, our focus over the years has really been around CTV and video. And a lot of the tools we've been building over the years have been focused on this area. So these tools, combined with the unique demand coming from the Nexxen DSP really drives publisher growth in the platform and that drives the overall revenue growth that we see in that platform. So as discussed earlier, the Nexxen SSP is also integrated to our data platform, and that's actually a pretty unique position in market. Typically, data platform were historically connected to demand side platforms, but operating an end-to-end solution, it enabled us to bring these supply solutions to our publishers. So what that does really is that our publishers can take their media and combine it with our data asset to increase the value of their inventory. Over the last year, we've had a high focus on live sports and our onboarding live sport publishers and enabling advertisement on these streams. We see this as a big growth area, has a lot of these live sports events, are shifting from traditional linear to CTV environments. Of course, the SSP connects to our DSP, but also connects to multiple DSPs in the industry with over 50 connected today. That also drives revenue for the platform coming from these partnerships. So that's a high-level overview of our flexible end-to-end platform. So this model drives amazing customer value, positioning Nexxen for continued growth. For our customer, this unification of technology drives simplicity, cost efficiencies and better results. For us, it really increases our total addressable market as we can be flexible and how we work with our customers. And it provides us a larger revenue opportunity for each customer we onboard on the platform. Because of these advantages, as Ofer alluded to earlier, we're seeing competitors replicate this business model. We've started this in 2019, and it's been our belief that a deeply integrated end-to-end ecosystem is critical for adtech moving forward. And having fully featured supply and demand platform connected to data really gives us an advantage in market, and we believe we're a few years ahead of the competition at this stage. With this, let's watch a video on how the integration of these assets coming together bring value to our customers. [Presentation]

Okay. Before I leave you today, let me spend a few minutes on upcoming product innovation and areas of investment at Nexxen. So the key product investments for us in 2025 are focused on our data platform, AI and improved user experience. We continue to invest in our first-party data enablement strategy. Our goal is to become the obvious choice for anyone looking to unlock the full potential of their data. We also continue to focus on our real-time nexAI algorithms. These are machine learning algorithms that are deployed on our SSP, DSP and Discovery tool. This is a key driver of growth for the company and very important investment in the company. As we saw, we were working on multiple GenAI agents and assistance, amplifying the productivity of our customers. And finally, we're working on a major update to the user experience on multiple of our applications. So first, looking at the Nexxen data platform. In 2024, we've launched our expanded unified identity graph. This year, we'll be adding new partnerships at this graph to expand its capabilities across markets. We've also recently launched the Nexxen clean room. We're adding many capabilities to this tool as well to enable customers to better manage their first-party data and privacy around their data and deploy it across our system. We've been focusing on vertical-specific solution as well. Recently, we've launched Nexxen Health, our healthcare data asset. We're working on multiple other verticals as well to expand our customer portfolio and diversify our revenue. Next, when it comes to real-time campaign optimization, we're improving our tools around first-party data optimization. So what this means really is we're bringing that first-party data into the platform and leveraging that to optimize the campaign in real time. So think here, for example, off-line sales data happening in store, pulling that into the platform to optimize the campaign. And finally, when it comes to the data platform, we've been working over the last couple of years on a brand-new architecture. And the goal of this is, one, to speed up the platform, but also reduce the cost of operation of that platform. So this is set to go live in a couple of months. So when it comes to our AI assistance, our goal here at the start was really to set the foundation and build an assistant in each of our platform, meaning a demand-side platform assistant, a data platform assistant and a supply platform assistant. From there, we'll be connecting these assistant together to give a holistic view to our customers across the portfolio. So as an example here, think of we just saw the DSP assistant. A customer leveraging the DSP assistant will be able to tap into our SSP data to understand media available on the SSP and form a strategy. In the same way, they'll be able to tap into our audience assistance to bring in audience insight and targeting suggestions. So today, our demand-side platform assistant we looked at, our data platform assistant are in active development, we're going to start building our supply side assistant in the second half of this year, and our goal is to have all 3 of them live and integrated by end of the year. So we took a look earlier at the DSP AI assistant. This tool is currently being leveraged by customers. We've designed this product to streamline trading workflows, provide quick access to campaign insights, an easy troubleshooting and suggested action to improve performance. Now we're very excited about the assistant, but today, we want to talk about something new. So a pleasure for me to introduce you to Discovery AI, and this is our Nexxen data platform assistant. So by integrating GenAI into our discovery platform, we're able to take work that takes analysts today several hours to complete and do that in a few minutes. So this really increases the total addressable market for this platform as we can leverage it across more clients and more of the customer personas within an agency and brand can leverage the tool today. You don't need to be a trained analyst to be able to pull insights leveraging the tool. We're now launching the first iteration of this tool. It's going live today, which is focused on building insight decks for our customers. And I'd love to show you a quick preview. [Presentation]

So Discovery AI, as I mentioned, is launching today. Initially, it will be leveraged by the Nexxen team to bring actionable insight to our customers, but we're planning on launching a self-service solution in the near future. So AI is really the next step of our journey. We believe that we're well-positioned, as AI become a central part of adtech. Operating an end-to-end platform really gives us an holistic view of the transaction from the customer to the brand. And this data is key to feed these AI systems and pull actionable insights. We expect that these innovation will enable us to accelerate our growth, increase the stickiness of our current customers and gain market share with new customers joining Nexxen in the future. So Nexxen is working on incredible innovation with data, AI at the forefront. I'm incredibly excited about the future and what the team is building next, and I hope that this today helped you better understand the Nexxen technology. So with this, we're going to take a quick break. Kara Puccinelli, our Chief Customer Officer, will be hosting a panel right after the break with some of our key customers. Thank you for your time today. [Break]

Good morning. We're going to get started. I'm thrilled to welcome two of our customers here to join me today. I hope you got a lot out of this morning's session, and we talked a lot about strategy and vision. You've got to see the product come to life. But you've heard a lot from Nexxen, right? And we wouldn't be anywhere without our customers. And so we thought it was important for you to hear directly from them about how they use us and what their challenges are and how the Nexxen technology helps them solve for that. So I'm thrilled to welcome Anna Johnson from Molson Coors, a media executive overseeing Precision and Marketing Analytics and then Sean Odlum, who is the Chief Product Officer of Tinuiti. Tinuiti is one of the largest independent agency specializing in performance marketing. So we're going to hear more about what their focus areas are and then spend some time hearing directly from them on why they use Nexxen and the value that they get out of that for their businesses.

So I'll open it up, Anna, with you. Talk to us a little bit about your role.

Yes, absolutely. So At Molson Coors, I oversee two main areas, everything to do with precision media, right? So that's really programmatic and social, anything in the biddable space. And then marketing analytics as a separate function. And kind of in that space, what we ground ourselves in is using data and technology to maximize the impact of our marketing investment, right? So my team's job really is to make sure every marketing dollar that Molson Coors is spending is working as hard as it possibly can. And a large part of that strategy is fueled by using data, right? So both our own first-party data, third-party data that we get from other parties, et cetera, really to find the right audiences, right? That is core to kind of what we're trying to do, right? And we've found that, that is really the best way for us to get a return on our investment. And all of that then has to be fueled with technology, right? So we have to be able to move all of our data into tech where we can then find the people, right, online to be able to show them our relevant ads. And that's where our partnership with Nexxen comes in, really in that programmatic space.

Thanks Anna. And obviously, your goal is to get product off shelf, right? So it's a lot about driving returns and driving sales. Sean, being an executive at a large agency, talk to us a little bit about your role and some of the challenges that you have?

Yes, certainly. So I'm responsible for products at Tinuiti. For us, that means primarily measurements and optimization. But of course, fundamentally, my job is to make our clients as successful as possible. We work with brands like examples would be like Instacart, e.l.f. Beauty, right, brands that are really redefining their categories in significant ways. Really, I think the business that we are in, Terry alluded to this a little bit earlier in his talk, this is the era of advertising where money that you are spending on media or that brands you are spending on media is really cost of goods sold, right? It's not just a fraction, say, of revenue that you'll dedicate to marketing, but the budgets are theoretically unlimited to the extent that it is delivering a positive return and one that you can really quantify. So the problem that I'm really trying to solve every day is a little bit of a different puzzle than Anna is solving here. We need to build for a significant level of generality, right? We have clients who are running Super Bowl ads, lots of upper-funnel Media. We have other clients who are very focused on the lower funnel. We have purely D2C brands. We have omnichannel brands. So they are solving for a lot of different problems, which means we need to solve for a lot of different problems. And so really, the focus there especially in terms of our technology stack and our tool stack is the depth of integration, right? So we need data to move back and forth as quickly and as seamlessly as possible and really scalability. A principal in product, anyone doing product is you want to focus on your area of comparative advantage for us that is in proprietary measurement tools and technologies, things of that nature. And then we want the tools that we are using to be highly scalable so that we can go solve for these heterogeneous use cases that our clients bring to us.

Thanks, Sean. You've mentioned a lot on complexity. You all saw earlier from Terry, the complexity in our industry overall. You both have added challenge of how do you take that complexity and deliver outcomes for our organizations. Anna, for you, obviously, that's getting products off shelf and driving sales across your product lines. Talk to us a little bit about some of the challenges that you're up against?

Yes. So when I think about challenges, really, it comes in, I would say, like two big buckets. One is what we've all been talking about this whole morning is this like increasingly fragmented media space, right? Like long gone are the days where you're just going to buy TV spots on 3 networks and call it a day, right? You have to meet consumers where they are. They're everywhere. It's fragmented, there's walled gardens, et cetra, right? So what we're looking to do in that space is like simplify it as much as possible, right? You still have to buy TV, you're still going to have to buy some of those walled gardens, right? But how can you find the right solutions that bring together a large portion of the media ecosystem to kind of simplify this like super complex and fragmented space, right? So a huge part of what we're trying to do again is break down this fragmentation, make it easier for my team to get in front of the consumers at scale. And then the other big challenge we're up against is what we're all up against is just time in our day, right? I have a finite of number of people on my team. Molson Coors has a lot of brands, I'm sure most of you guys are familiar with, right? We need to bring partners to the table that kind of help really meet us at the table as a strategic partner and really kind of help take work off my team's plate so we can focus on the larger strategic things.

Yes. And Sean, you're on the service side of the business, right, representing a portfolio of leading brands and high-growth brands. Talk to us a little bit about the challenges that you face and what they bring you and how you solve for that?

Yes, certainly. I mean, echoing and fragmentation is a big one. Consumers, audiences out there, they're spending time in a lot of different environments in walled gardens, on the open web, mobile app spaces, of course, that complicates our lives significantly, right? When people are watching YouTube, they have a Google ID. When they're on Instagram, they have a Facebook ID. So kind of following people around or understanding where they are, where they're spending time is challenging. Even simple things like understanding and measuring unduplicated reach is non-trivial, right, just because of signal loss and because of certain elements of opacity there. The other big side of the challenge is, which I alluded to a moment ago, was the heterogeneity of the kind of advertiser profile and data structures that we are working with. So we have a number of clients who are very mobile app heavy, right? This means you're going to have a lot of mobile ad IDs that you can work with. We have other clients who do a majority, sometimes even the entirety of their commerce in-store, right, physical transactions in stores. Some of them have point-of-sale systems, where they're going to be capturing PII, some of them don't. We have other clients who are, of course, like very heavy on the web. And so we have all these different streams of data with different configurations that are coming in essentially different currencies, right? Think about IP addresses, think about hashed e-mail addresses, think about mobile ad IDs, think about IFAs. Our job really is to assimilate all of that and then use it in essentially standardized routines to go and activate against that in as intelligent a way as possible. Now of course, our team doesn't want to use as many tools as there are advertising surfaces, right? We want to use as few tools as possible to exert maximal leverage over where we are going and activating. And so the ability to take in multiple streams of data on one end from our customers and then activate it across as many surfaces as possible is really one of the core problems that we are aiming to solve every day.

Thanks, Sean. You talked a lot about data. We heard from Karim, obviously, data is really at the center of everything that Nexxen does, and we're working with brands and agencies to help them maximize the value of reaching their consumers in a smart and effective way. For the audience, Anna, share more about how you work with Nexxen today and how we help support you with that.

Yes. So we really work with Nexxen in a full funnel capacity, right, across all of their solutions, right? So we -- you think about if you're kind of starting from the beginning, we have a lot of data, right? Like I said, both first-party data, other third-party data sources, various data sources that we need to bring together, right? And Nexxen makes that really easy. So we're working with them to be able to ingest all of our data, right, in one place so we can start the activation process. We then work with them through their DSP, right? So I have a team who is going to be hands-on keyboards in the DSP, building the buys, building segments, using the data, deciding kind of how we're going to go to market. Then you have the inventory piece, okay? So now you have your data plus how you want to structure a buy. Where are you going to run these buys on -- what surfaces are you going to run these buys, right? That's where we plug in to the SSP side of Nexxen. And we, as Molson Coors have a very kind of strict, brand safe, I would say, more conservative approach to where we want to show up, right? And Nexxen is great to work with in curating like a very specific list of partners and places that we want to show up, right? So now we're marrying our data, we have our activation ready to go. We know where we are going to show up very transparently and very openly. We put it into market and then it pulls through for measurement, right? So there is all sorts of in-platform signals that we're looking at within Nexxen, but part of my marketing analytics team, we run in-house attribution solutions, right, to look totally omnichannel at everything that we're doing. Nexxen fuels that by all of the transparent data that we're getting, right? So we're then at the end, pulling everything into the models that we're running in-house to be able to look at performance across all of our channels, right? So really, how we work with Nexxen is in all of your capabilities kind of through the line to run our activations.

Yes, and I would imagine that makes your life a lot easier.

It does. Yes. We were saying focusing it kind of in one area, right? I love what Sean said about you do not want the amount of like one technology for one surface. You're trying to aggregate how you can go to market as much as possible.

Yes. Another big benefit of having the end-to-end capabilities is being able to control then that consumer experience. And at the end of the day, in advertising, we are only going to be as strong as the experience we give to consumers, right. And Sean, you've got an added complexity of that with a lot of e-commerce brands and a high portfolio of brands that you're trying to tie data signals together, and we've done a really impressive job doing so. Talk to us a little bit about how you use Nexxen to do that.

Yes. Well, similar to Anna full stack DSP, SSP, DMP, full funnel as well. So we are executing across our hundreds of clients, everything from live sports, the biggest screen in the house, CTV, things like that, to programmatic video, programmatic display, programmatic audio. So kind of top to bottom of funnel and the breadth of the tech stack. The thing that is really crucial for us is data integration as well, right? So not just the ability to ingress data from clients, use it to then go out and like execute in an outbound fashion. We also collect, as you know, of course, huge amounts of data back from the platform, bring that into our own system for measurement, for attribution, for modeling, things like this. This is not only something that we really insist on as table stakes. It is something that is actually an advantage for us, a commercial advantage for us in working with our clients. There is a trend in the industry away from that kind of data transparency. Think of walled garden, think of clean rooms, things like this. I will tell you, brands, they tolerate this because they have to. They don't like it. And we -- our ability to go to our clients and say, "We can give you a high degree of transparency into how you're spending your dollars," really every single impression. Here's the records of the impressions that you're serving out into the world, along with all of the associated Metadata. Our most sophisticated clients -- well, all of our clients like it and our most sophisticated clients are really using it to their own advantage. We've set up data pipelines from Nexxen to Tinuiti, from Tinuiti out to our clients for multi-touch attribution for MMM, for user profiling, things like this. So that level of data integration is absolutely key. And then along another vector data integration in terms of identity resolution. Of course, you've got the identity resolution spine within the platform. I talked earlier about we have point-of-sale, capturing e-mail addresses. We have mobile ad IDs. We have IFAs. This is great when you can get that user level signal very persistently, a very strong signal, you need to be able to do something with it though. And without a layer of identity resolution, your life is just too complicated. You can't really activate against it. You can't do consistent measurement. So those are major areas of focus in terms of our collaboration with your team and with the technology.

Thanks, Sean. You touched on this a little bit. And if we took one thing away from Terry, I think it showed that there's a lot of choice out there, right? Clients have a lot of places that they can buy from and platforms that they can use and license. Anna, I'll start with you, what differentiates Nexxen? Why do you choose Nexxen versus the other many other adtech companies that you could choose to work with?

Yes, it's a great question. And I think it really boils down to kind of two main areas. One is, I'll kind of start with the tech itself, right? The tech itself is very great, right? It works really well. My large hands-on keyboards team is always impressed with the technology compared to other large players in the space. There is frequent innovation, right? It really -- like I know this sounds very table stakes, but it is really like beautifully functioning piece of technology.

You mean a lot of adtech company say, they do...

Yes. And I have very vocal people on my team who can be very frustrated, right? And it just works really well. And you feel like that makes everyone's days easier, right? Along with the technology comes this concept of like transparency, which what Sean was talking about, right? It's shocking how transparency in 2025 is still not table stakes with every piece of technology that you are working with, right? At Molson Coors, we really do demand like full funnel transparency on every single dollar we spent, every single fee, everything, right? There can be a lot of hidden places where technology is chipping away your money throughout the supply chain. And with Nexxen, we have never faced a road block, right, on transparency at all, without question, absolutely transparent, which is critical for us on how we're spending our money, right? So you kind of think about like the tech and the transparency is just excellent. And then also, it is partnership. Really, our partners with Kara's team, right, are really like strategic extensions of our team. This isn't a world in which I am logging a ticket with an offshore team, right? Like they're really, really there at the table with us as a strategic partner. And we can work with them on projects that I would say are even beyond kind of just your day-to-day operations of a DSP, SSP, right? We are really partnering with them on larger strategic questions from help us reach Latino customers, right? Help us think more strategically about our display versus video versus CTV mix, right? So we really feel like we have strategic partners when we are working with Nexxen as a piece of technology.

Thank you, Anna. And you touched on a lot of points, Sean, that I'm sure you face as you think about the landscape because you've got the added challenge of clients that hear things and want to use certain tools and other of our competitors. Why do you choose to use Nexxen? What do you think differentiates us and why do you guide them to use as a solution?

Yes. We've talked about -- a lot about the technology and the data. And of course, that is -- it's critically important. It's kind of table stakes in the sense, connectedness of data, our ability to execute across the totality of the funnel, the ability to do that seamlessly, to have a system learn and improve campaign outcomes over time, all of those things. I would come back to this point that I mentioned, Anna talked about it as well. About transparency, and it is -- I will fully agree, in 2025, it is kind of amazing that it is not just table stakes that the level of transparency is there for the people who are writing the checks and spending their money on the media. There are other platforms out there where if we want the level of transparency that we get from our partnership with Nexxen, you have to pay extra for it, right? There's an additional product that you need to sign up for and pay for. And I mean, look, ultimately, all of this is just kind of hands out in the supply chain between an advertiser spending a dollar on an ad and a consumer actually seeing it, right? So our clients, of course, they want essentially as few taxes as possible along the way. I should certainly mention economics, right? We are looking for efficient solutions, and I want to be able to go to our clients with a clean content and say, we are not wasting your money on excessive adtech fees, DSP fees, things like that, right? So the economics of our partnership with Nexxen, which ultimately extends to all of our clients is a major advantage. And then finally, I think maybe the most important thing to highlight really is the service layer. I'm sure like Karim and Ofer want me to talk about AI and all of that, but service is unbelievably important. I think it's fair to say that Nexxen has, to a significant extent, over the last 7 years whatever that we've worked together, built its business around our business. We have a team that we work with at Nexxen that really, I would say, truly considers our problems to be their problems, have built custom solutions, pieces of technology, really in order to enable us. And like Anna said, we don't go and file a ticket and wait 48 hours for an answer. We've got a team there that will pick up the phone at any hour of the day and really roll up sleeves and solve problems with us. That's not something that we can necessarily take for granted with every player in this space.

Yes absolutely. You've touched on some good themes around transparency. And ultimately, that's something that Nexxen prides itself in is really helping clients reach their outcomes. And the way we support reaching those outcomes is increasing working media and using data to help drive those results, whether that be sales or viewership or reach. Talk to us about your outcomes and how we've helped you achieve those from a sales perspective?

Yes. So the goal of what I'm trying to do is sell more Molson Coors products, right? So sell another Miller Lite, sell another Coors Light, et cetra. And really Nexxen has been able to bring us technology that allows us to identify the right audiences that are going to be the most incremental to our business, right? Or the repeat purchasers or however we want to segment, right, our audiences to ensure that we, again, are selling more Miller Lite, selling more Coors Light. And really kind of how we're doing that with them, again, comes back down to the ability to seamlessly bring any data, any segmentation we have, right, that we want and then find them at a high match rate with strong fidelity within this Nexxen ID, right, out in the open web, right? So it really just allows us to deliver on a centralized audience strategy that we kind of anchor our marketing in, we bring it to life through Nexxen, right?

Yes. Absolutely. And Sean, for you, you touched a little bit on the transparency side and what that does in terms of reducing adtech tax, right, all the fees that are involved in this process. But talk to us a little bit about the outcome side. How does that ultimately help you achieve stronger return on ad spend for your customers?

Yes. I mean advertising is, of course, fundamentally about right message, right person, right time, right price. And everything that we are doing both in our work at Tinuiti and our partnership with Nexxen, and like it is ultimately all about those 4 vectors. We are very much like performance is really in our DNA. We don't come from the brand world where we're strictly focusing on things like GRP and reach, things like that. We are really about understanding and communicating the yield in terms of the business outcome on a $1 invested, whatever it's invested in. We have seen over and over, and this is just obvious when you go and look at the largest advertising platforms in the world, again, when the money that one is spending on media is really a cost of revenue rather than simply a cost of buying an audience or reaching an audience, the budgets are theoretically unlimited. We have seen our growth most potently fueled when we can demonstrate to our clients convincingly and repeatedly that spending $1 on X is returning more than $1 and you can repeat this process and this process is scalable. So again, coming back to essentially the systems integration that we have, but in particular, the ways that we have focused on, essentially real-time performance feedback loops and enhancements, right? So like wrapping the Nexxen pixel in NuBus point pixel, right? And so like the system can learn in real time and make every bid, every impression, a little bit smarter than the last one. One that helps us and our clients sleep soundly at night, knowing that the systems are working on our behalf and are getting a little bit more intelligent all the time. But two, our clients' ability to efficiently access performance media and to direct those impressions and direct those dollars to the right people when they see those returns, investment inevitably follows when we can do this successfully. I mean every marketing channel is essentially in a competition with the other marketing channels, whether it's CTV or whether it's audio or it's programmatic, it's competing for budget with commerce, with search, with Meta, whatever it is. And so really, those are the benchmarks that we need to be aware of and that we need to meet and exceed in order to generate investment essentially outside of the walled gardens.

Yes. And I'm glad you've brought in the channel aspect of it, right? Because we've talked a lot about reaching consumers and the data that's involved in doing that. But the whole other side is what content are we going to reach them on and how do we manage the right mix of our media to get the most impact with our message. Molson Coors, obviously notoriously a TV brand, right? With the emergence of connected TV, I know it's opened up a lot of opportunity for you to reach consumers in different ways. Talk to us about how you use CTV as a channel and how you work with Nexxen?

Yes, absolutely. So yes, you're right. Molson Coors, a big legacy TV buyer, right? There's beer ads in live sporting events. It's pretty much like the classic beer marketing playbook. But there's just -- as we all know, there's been just a rapid shift in where consumers are spending their time, okay? So broad TV ratings are down double digits, right, year-over-year-over-year and there's such a shift to streaming, okay? So yes, there's still a place for live TV in kind of where -- how we go to market, particularly in live sports, but that is rapidly shifting to streaming as we speak, right? So there's still some like anchoring TV marquee moments, right? But our investment really has shifted to streaming, right, where consumers are watching what they want to watch, when they want to watch it, okay? The other element of streaming is there's probably like a set of top players, right, have really quality content, and then you can have a long tail of things that fall into CTV. So really understanding your connected TV supply is incredibly important, right? So we work very closely with Nexxen on the SSP side to curate a list, right, of partners and content, right, that we want to run against. And we monitor that through that incredibly closely with them, right? Because we, in past years, right, when we maybe weren't working with Nexxen on this, we got ourselves into some less transparent situations, right? And when we kind of unpicked what had been happening, we were running on the bottom tail of the long tail of the content, right? And this just kind of goes back to all the themes we've been talking about. But really here, it's about like quality of content, combined with transparency, with your partnership, you can have your brand show up exactly where you want it to show up.

Absolutely. And Sean, for you, much different set of scenario, right? I know a lot of the brands you work with are not traditional linear TV buyers, but you're guiding them into video experiences and streaming experiences as a way to get incremental reach and performance. Talk to us a little bit more about how you use CTV as a channel?

Yes, sure. A major part of it, Terry had a slide this morning about the democratization of TV, right? CBS having 200 advertisers, whatever it is, having this very long tail on the digital side. I would like to think we have played our small part in that process of democratization. We've brought a lot of brands who didn't really think of themselves, didn't conceive with themselves as television advertisers, right, able to take advantage of site, sound and motion, addressing the upper funnel, simply because the price of entry was too high, measurement was too difficult, something like this. We have shown a lot of those brands, how this type of media can be compatible with a very performance-oriented organization. We are very much proponents of the thesis that all media is performance media, even if it's a Super Bowl ad and everything on down. So the -- I'll come back to this transparency point, the data integration point. I know we've hit on these themes already, but this is really important in helping a brand that has heretofore been mainly like search and social, right, which is really the profile, especially of a lot of these D2C advertisers and helping them understand and access essentially a new area for like greenfield growth, right? Anna alluded to something that's really important, which is like understanding where you're actually running, right? A lot of people in this room have probably seen the recent analytics reports, right, kind of purely programmatic media where you're blind to where the ads are ultimately showing up, that comes with some attendant risks. Something that we do a lot because we are very scaled buyers on a lot of these platforms is the utilization of private marketplaces. So we have our own commercial arrangements with people like Disney and NBCUniversal, Paramount so on and so forth. Where we work with Nexxen is an essentially connecting the pipes and making those transactions digital and efficient. So setting up our PMPs within the Nexxen platform. So we have essentially the assurance of brand safety, the knowledge of where our ads are actually running, the efficiency of programmatic transaction, it's really giving us the best of both worlds there.

Great. You talked about efficiency, and I want to go back to a point that you both brought up really around the operational side, right? And while the promise of technology and solutions like AI help reduce that. This is still very much a people-based business. And I know, especially for you, Anna, your job is to drive marketing and media for an organization that's selling products, right, not to be in all the intricacies of how the adtech space for. So talk to me a little bit about the operational side. How does using a technology like Nexxen help you reduce some of the operational components of what you do?

Yes. I mentioned this kind of at the beginning, right? It is -- it's a great piece of technology, right? So that's why I think that's table stakes, right? But it is very easy for a team to use efficiently. I would also point to the enhancements, right, that the team has been making every year, right, to make this technology even better, right? And I'm sure Sean feels the same way, but, right, as big partners of Nexxen, we've had a seat at the table to kind of influence those road maps, right? Like Nexxen is not blindly in a back office, making choices about how to enhance this technology. It is really based on what the customers and the end users needed. So -- and that's also not a conversation that you would have with every piece of technology out there, right, really being invited to the table to help influence a product road map. The other part of that is really the AI. AI is everywhere and it is real in Nexxen right now. Some of the examples that we played before this, right, the product team played before this is that's not insignificant to teams that are managing high, high volumes of dollars flowing through these systems, large numbers of campaigns across multiple brands, the ability to bring AI kind of at their fingertips to be able to make meaningful optimizations that maybe before took several hours of work, selling the data, combing through the data, right, to have that at your fingertips is -- it's operationally huge. And our team has already been taking advantage of it, and it's been great to see.

That's great. Yes. And I think for you and every brand out there, you're probably constantly being asked to do more with less, right? And so having the ability to be able to streamline and spend more value -- time on value...

Yes. You're just able to spend more time on higher-value projects, right, more strategic thinking, it just frees up our team's bandwidth a lot when we have these solutions that are natively built into the platform that don't feel -- they feel very part of a natural process. It feels additive and not something that's hard to access.

Yes. Sean, you have even more complexity in your business because of the number of brands that you operate and they all come with unique challenges and opportunities. Being an agency executive talk to us about the operational side. What is a technology like Nexxen do to help you streamline and reduce efficiency from a cost perspective?

Yes. I mean we are heavily focused on this because it is such a classic trap in the agency business that you have dozens or hundreds of clients and they are all different and you say, "Oh, we have so much complexity and you just start throwing bodies at problems." This is why a lot of agencies end up with very unattractive margin profiles. Some of the investors in the room might be familiar with this. We have tried to be really disciplined about this and the way that we have gone about is trying to create systems that are sufficiently general that they can handle all these different kinds of use cases, but also highly customizable for a particular use case, right? So if it's Instacart, if it's e.l.f, right, they are different. They have their own needs. They have their own objectives. Like we really -- we can't give them a one-size-fits-all solution. So the way that we have attacked that is, one, with focus, and this is about scalability, right? So again, we don't want to be using 9 different DSPs. We want our team to use a very small handful and to really become experts in those platforms, right? So this is where specialization really comes in. And then secondly, is systems integration. So we have built a number of API level connections between our own platform and the Nexxen platform, so that we can transact from our system, which contains all of our client data, all of our proprietary measurement stack, right? So we're putting all of those things together so that we can really understand audiences, so that we can understand campaign outcomes, so that we can understand optimization opportunities and then write those directly via API into the Nexxen platform for activation, right? This is where just getting to some boring details, but you don't want people going in and keying in every -- kind of every element of a buy, right? This is where human error creeps in and those human errors, we all have our horror stories. Those can cost a lot of money, if somebody fat fingers a number, right? So the governance of these systems through technology and particularly the API level connections that we have put in place, they allow us to make sure our error rate is as close to 0 as possible, but it also ensure scalability, right, that we -- our team can really focus on knowing one platform and knowing it really well and abstracting away a lot of the details so that our team can focus on the higher value-added activities, which really is the customization for each individual client.

Yes. And I'm glad you went back to the customization element. We've talked a lot about data, right, and us having access to your first-party data in addition to having supported getting purchase data from a lot of the retailers in the commerce space, groceries and alc-bev chains has really supported you to build a stronger strategy in really segmenting and reaching those consumers. We also look at it as a way to keep us sticky with you all right? And customization plays a part in that as we've built solutions for you. What -- how does that play and how you look at technology partners? Like how do you think about adding or replacing new when you think about that level of stickiness?

Yes. I mean I think similar to Sean, we have built a lot of connections from Nexxen to other tech within our organization, right? From our CDP, also out to our multi-touch attribution model, et cetera, right? And Nexxen has been great to build those connections, right? So I think its kind of when you look at that technology and you see it working so well with other pieces of technology in your stack, right? That's when it really does become super sticky, right? Because it is very harmonious with all of the other things that we are trying to do in our market stack, right? So it's been really great for us to see that, that we've been able to connect. And again, we're going to say this one more time, transparency, right? All the data we could ever want, right, where we want it, when we need it, et cetera, flowing through pipes that we set up.

Absolutely. And I'll leave, one last question, Sean, for you on the data side. We've talked a lot about data transparency and how those data flows work. As you think about the adtech market today and other technology solutions, what does the data that Nexxen brings and the customization we've done help for your business? How does that make that relationship sticky?

Yes. Well, I mean it helps us to essentially harmonize different and heterogeneous data streams. We have clients who have themselves onboarded LiveRamp, when another client uses Experian, right? It's like, okay, they're solving fundamentally the same problem. They've chosen different vendors. And so their data looks different. We can't just say, okay, we're going to standardize on LiveRamp, for example, something like that, right? So we have to maintain sufficient flexibility there. We also have -- like Anna is an interesting example of this, but we have certain clients who have voluminous first-party data. All of their transactions are happening on their websites and in their apps. We have other clients who are CPGs who have very little first-party data, and so they need to either think about a first-party data strategy, how are you going to collect first-party data when it is not naturally part of the transaction or uses of third-party data or renting first-party data, things like this, right? So there are a lot of different ways and configurations that our clients are coming to us with their data. And even -- not even mentioning the kind of mess that most brands actual in-house data stack is, right? So we need to deal with all configurations of that and essentially all states of data maturity on the client side. Ultimately, it needs to be coerced or reconciled into a canonical data structure, which is where essentially our interface with Nexxen comes in, right? Those API-level connections, where we are taking these streams of data from our clients, coercing them into a single, essentially canonical representation through things like identity resolution and then pushing them out to the relevant ad surfaces in ways that are consistent with whatever goals that particular advertiser has at the top of the funnel, the bottom of the funnel and really everywhere in between.

That's great. Yes. It sounds like we also give a lot of flexibility in that with you being able to work in that capacity. Well, I want to thank you, Anna, and Sean for joining us today and giving your perspective. We will now welcome our commercial colleagues on stage with me to speak a little bit more about our growth.

Hello everybody. Thank you for joining us. This is fun because I feel like I get to interview my colleague, which is always a great opportunity. So I know we just had some folks up here, you heard a lot from our customers. I thought it would be a good place to start just going down the line, everyone introducing themselves, obviously, to see the titles behind, but just what is involved? What do they oversee in the next in business. So, Kara we'll start with you.

Hi. Kara Puccinelli, I'm the Chief Customer Officer. I oversee our Enterprise division, which is our technology sales and services group.

Hi, I'm Ken Suh, Chief Strategy Officer. I looked after the exchange business, which connects all of our media partners as well as all of our DSPs, including the one that we own.

Hi, I'm Steve Sottile. I'm the Chief Revenue Officer. I oversee our North America strategic sales organization.

And I'm Chance Johnson. I'm the Chief Commercial Officer. I lead our Data Solutions business, our international revenue organization as well as strategic partnerships.

Awesome. So let's just jump right into it. I heard a little bit from our customers just now. But what I want to start with this group, and I'll call on you, is what is Nexxen's competitive advantage? What makes us special? Why do we win? Why would customers choose Nexxen over any alternative in the space? Chance, I'd love to start just in general from your perspective?

Yes. Happy to kick us off. So it's not just a tagline. So the flexibility and the breadth of our platform is extremely valuable and gives us a huge advantage. So there's very few companies on earth that have robust tools across the buy side, the support marketers and have robust tools across the supply side to help publishers and then are connected by data. So it's a very small list. It's Nexxen, it's Google and it's Amazon, and we're happy to be in that conversation. The reality is what that means is, as you heard from Terry and you heard from others, it's an environment right now where a dollar has to stretch further. We have to show performance for marketers, and we have to show our publishers that we can generate more revenue for their business. The commercial flexibility that we can provide gives us the ability to do all those things, make sure that the dollar of every ad budget goes a little bit further, performs a little bit better and publishers are happy because they're able to run a very healthy business, that drives better performance for them, and it drives better performance for our business because it strengthens the long-term strategic relationship that we can have with our biggest customers like Molson Coors and Tinuiti that you just heard from.

Great. And I don't mean to intentionally do this, but we're going to start making our way back across the line. So totally makes sense, Chance. I love that overview. Steve, I'd love to hear that a little bit more with the industry background in that context.

Sure. I think the partners who turned to us as the world of linear and digital continues to converge and the fragmentation we've talked a lot about today, we've been focused on building a modern video and CTV first technology stack that goes beyond the table stakes of functionality, features and scalability to drive performance and really injects our proprietary data and now GenAI into -- directly into the platform, in order to not only deliver those efficiencies and results and outcomes for clients, but exceptional value beyond that as it relates to data insights, better planning, better execution, better results and better outcomes.

As we zoom in a little bit, I'd love to start thinking about our customer base. So Ken, what does that mean for publishers? What does that mean for third-party DSPs that work with us? What does it mean when we think about our SSP and our exchange?

Yes, when you go into a publisher meeting, they're going to ask you, why do I want to work with you? What do you have that's unique today? There's many solutions out there. Do you have anything from a unique demand perspective? That's usually where they start because publishers under a lot of financial pressure today. And we can continentally say, yes, because of our whole end-to-end stack strategy. We have unique data. We have world-class brands and agencies using our technology on the DSP side, and that just efficiently passes right through to the publishers and that kind of checks that box. But they also want to learn a little bit more about the technology they can use to run their own deals because they often have large sales teams as well. So we have a fully functional control platform is what we call it, where they can run their own deals. And all of that helps our story and our market position with the DSPs. Because, yes, we love every customer out there to use the Nexxen DSP, but the reality is there are other DSPs in market, and we want to be an open ecosystem for them to use those DSPs as well. So we've integrated with all the world-class top DSPs. And what they're concerned about is do you have direct supply connections. Do you have clean signals coming through and do you have brand safety measures in place. And we can check all those boxes, and that's really important for those customers as well.

Kara, what does this mean for buyers?

Well, I don't know that I could say it any better than Anna and Sean did, but I'll try. When we speak to brands and agencies like Molson and Tinuiti, it's really about having a single platform that they trust that delivers for them. But that single platform that can help them plan, buy and measure. And in the world today, we heard from Terry that validated this, data is more important than ever, right? It's seen as a currency for brands that are trying to reach their consumers. And so having the capabilities like Nexxen provides, which are really feature-rich around data that ties into consumer insights so you can really understand how to reach not only your loyal consumers, but new prospective consumers is ultimately the goal. And so the combination of those solutions really helps them achieve a stronger return on their ad spend in the process.

Heard a little bit in Karim's session about where we're going on the tech side and innovation. I'd love to have that question somewhat in the commercial end. So when we think about growth for Nexxen moving forward, opportunities to land and expand, and continue to innovate commercially, I'd love to hear what you all think of that. Ken, I'd love to start with you.

One thing that's really unique about our platform is the DMP component. That's something that does stand us apart from other SSPs that are out there. And because that sits in the middle between the DSP and the SSP, the Nexxen identity graph can be used on both sides. This is really interesting because publishers want to differentiate their own supply through their own first-party data. This is a key strategy for many of the publishers that are out there who have that data and it's extremely valuable, but they're trying to unlock the power of that data. So when they bring it into our Nexxen DMP, they're actually accessing and matching against the Nexxen identity graph, which is really powerful for them. And they can start to utilize other platforms that we're developing as well, such as our curated marketplace. They can bring their audiences in. They can create deal IDs and then send that out to the buyers as well. So we're seeing all of it sort of interconnected throughout our Nexxen data platform.

Right. A lot of talk about the data platform today, all the application assets that we have. There was also some talk around ACR, partnerships we have in some of these proprietary exclusive data assets. Chance, I'd love to ask you, do you see that as a growth opportunity connected to data? If so, how?

I'd be in the wrong job, I guess, if I didn't see it as growth opportunity. So look, Ken mentioned and you saw from Terry, all the different competitors that are in this space. Some of you probably cover some of those companies. There's a lot of noise. And whether it's publishers or advertisers or agencies, the question is why should I work with you? Now our relationship that we have with VIDAA and Hisense and Toshiba Television is a strategic asset, because that data, everybody wants it, and it's highly constrained. There's only so many large globally scaled television manufacturers on the planet. We happen to have a strategic relationship with one of them. And so there isn't a marketer on earth that is not going to take a meeting to talk about this interesting data set that we have because the other players in the space, the other TV manufacturers will only keep that data for themselves. And as we talked about, we are flexible, we are open, and we can do a lot more with that data than a lot of the TV manufacturers that are out there. What that means is it's not just about the ability to provide targeting across that data or licensing across that data, which is a valuable revenue driver for us. It allows us to develop a much more strategic long-term relationship with these marketers because not only do we have something that they immediately want, it allows us to have that as the tip of the spear to have a strategic relationship about their DSP, about how they're thinking about their data, integrating their first-party user audience base and connecting more directly with their publishers that they partner with. So it's a strategic asset to start conversations to then expand into something much larger and ultimately will generate much more revenue than the data set itself.

Data is at the core. Steve, I would love to hear a little bit more what that means to the customers and the partners we have, especially as it pertains to growth.

Sure. I mean if you look at it through the lens of agencies, and you saw Terry's slide earlier, showing the decline in market cap across the holding companies over the last few years, it's no surprise that it's a challenge these days, whether you're an independent agency or a holding company, the challenge they have in driving customer performance and results, while maintaining let alone growing profitability, right? Couple that with the need to continue to innovate and stay ahead of competitors and ahead of the industry, it almost seems like an unsurmountable challenge right? And one of the ways in which they are addressing this, it's through their own differentiated data arms and injecting that into their differentiation to win business and injecting that into their ability to drive profitability and results from clients. You see this with the focus of Publicis and Epsilon, IPG and Acxiom, WPP media just acquired InfoSum and even independent agencies like Horizon are launching Horizon Blue their own data arms, right? And to just echo what Ken and Chance has talked about and what you heard a lot about today around our data management platform and Discovery. This gives us a unique opportunity to forge close partnerships with our agency partners and holding companies to enable them to actually scale and maximize the output and the profitability from their own data assets. This comes from us being that modern tech stack. It comes from us having that proprietary data set that includes our exclusive access to ACR data powered by VIDAA and that really enables us to build stronger partnerships with long-term growth.

Kara, I would love to push on that a little bit further, specifically when it comes to -- and obviously, you just talked to some of our customers. What is it about data at the core, the value that it brings to our customers that enables Nexxen uniquely to add new and expand existing relationships with folks across the media supply chain.

Yes. The takeaway, I'm sure that all you've heard from today is that data is an incredibly important asset to brands. And the reason for that is that they need to have a way to connect with consumers and continue to build that relationship with them. And so when Nexxen can enter a room with a brand or an agency and say, we have a data platform that allows them to onboard data in a very flexible way and privacy safe way, but also can bring other data assets alongside that, so that all of a sudden, they can figure out and discover attributes that they didn't know, right, because a lot of brands have access to data within their own walls. So they might know that someone's traveled or purchased, but they don't know any of the other behavior. And what Nexxen is able to do is bring those other attributes and behaviors alongside that so they can really build much smarter marketing and media strategies. And then the benefit for that in Nexxen is that when you go through the process of onboarding data in that way, it makes us very sticky. So once we have customers' first-party data, there's so much we can do with it. We can cross-sell solutions. We can upsell additional data sources alongside that, and it makes it very hard for them to leave us because of the process that they've invested in with us.

Next question. I'll admit, is a little self-serving. So just about 2 years ago, as you heard Ofer talked about, our company rebranded to Nexxen. So this question, I want to start with Steve, and I'll make my way through all of you. Has there been a difference in our go-to-market strategy and the way we resonated with our clients and partners in the industry. And if so, what has that difference been? So Steve, putting you on the spot first.

Sure. I think the rebrand has been a tremendous success the awareness of who we are as a company and the various product offerings we have, though complex has really been simplified to the new rebranding. It's well known within the walls of many of our biggest partners and prospects. And not only has it enabled us to gain greater access within potential advertisers and partners and clients, from a personnel and a staffing standpoint, it's been a tremendous accelerator in terms of top talent wanting to join Nexxen.

So full stack end-to-end solution, but we also obviously have a DSP and SSP a data platform. Ken, talk to me about what the rebrand has meant, the go-to-market has meant and has it made an impact, and if so how on the exchange side?

Yes, it's been amazing because it sort of follows the trend of what we're trying to do, which is simplify a very complicated marketplace, the LUMAscape, the infamous or famous LUMAscape that Terry showed us, showed so many little logos that have been gobbled up and eaten up. And we're actually a result of that in a way. And what it has done is really simplified it in the minds of our customers of what we do instead of who we are and what part of the business you're from. And I think that's really allowed us to then have a much more progressive conversation around what we can do for you to simplify whether you're buying media, using data platforms or selling media as well.

And Kara, DSP side?

Yes. I'll reference actually dinner last time I had with Anna, and she said, "Wow, like Nexxen is everywhere now." Like everyone's asking about Nexxen and how we work with you and the capabilities. And truly, 1.5 years ago, as we entered early days of the rebrand, it was a lot of discussion about the companies that made up the portfolio. Now no one's asking about the companies that made up the portfolio, everyone's asking about what Nexxen can deliver. And as really a strong education around the solutions that we bring to market and truly the benefit of a data-driven activation model.

Chance, final word, what's your point of view?

Yes. Look, rebrand is not for the faint of heart. Ofer showed the journey of acquisitions that we made. And each one of those companies had a lot of credibility in the market. Each one of those companies has been around for 10, 15-plus years. And so to walk away from those brands was really hard because you could get a meeting instantly, right? Everybody recognized that logo, they knew exactly what you stood for, they knew the technology behind it. When we launched Nexxen, there was a lot of what's Nexxen, and we're able to tell the story. Now the advantage looking back at it 2 years later, when -- as Kara just mentioned, the industry now recognizes Nexxen, and they don't think of us as a DSP, they don't think of us as an SSP, they don't think of us as an ACR data provider, they think of us as a solutions company. And there is not a single person in the industry that we can approach and say, "Hey, I think you have something that might be really interesting for your business." Whether it's a publisher, whether it's a data provider, whether it's an agency or whether it's a brand, and that gives us a lot of advantages compared to our competition who might be solely focused. So really challenging. It was a difficult couple of years to get to the point of ubiquity that we reached. Obviously, we have a lot more work to do and recognition of Nexxen. However, I feel really proud of the work that we've done. And looking back on it, it was the only way forward for us to get that escape velocity as an organization that's trying to do things a little bit different than everybody else.

Two more questions before I let you go, one on product and one on partnerships. We saw a lot of innovation in what we're doing on the tech side that Karim Rayes do. Question for each of you, when you think about the products or the platform that makes up Nexxen, and what are you most excited about as we move forward on the innovation side? Kara, would love to start with you.

Yes. So for me, my hardest job is convincing clients to switch technology, right? You have to convince them to learn a new operation and train their teams in doing that. So what I'm most energized by is nexAI, because it is becoming a complete game changer for that discussion, because now they see how easy everything is to use and that training barrier to entry becomes very low, right? At click of a button and speaking to an agent, they can run a campaign, implement those optimizations and get the reporting results. So now entering in those discussions, we can really push much more on the benefits and the outcomes without having to have that complexity. So I think nexAI is certainly something that's going to help continue to do that not only on the DSP, but now also having the discovery element.

I love it. Chance?

Yes. So plus one nexAI, but more specifically, Discovery AI. So I can't express how much time we have spent over the last how many years with Discovery building reports for clients. And the value that those clients get is remarkable. And a lot of our agency partners actually use our Discovery platform for the agency to win new business. It's deeply insightful, it tells them something about their customers that most of the time, they didn't already know and we're unlocking insights, but it's deeply manual, and it requires a lot of people and it requires a lot of time. For us to be able to do that within seconds, a, like strengthens our sales organization to go out and tell a better story about the ability for us to understand who your target audience is and then reach that audience, but it's a tool that will allow our customers to save time and be more efficient and be more effective. And that's the business we're in, allowing our customers to be more efficient, more effective and drive better outcomes. And that is a step in that direction that is very tangible and advances their business in a very quick way.

Ken, what do you think about the exchange, what stands out to you?

Well, what's really interesting after acquiring all these amazing assets is the opportunity to cross-sell your customers into a whole another bucket of usage of technology. So today, we just had a press release go out of a publisher, a large TV manufacturer, LG, who decided to start using the Discovery tool. This is something that is extremely unique and does not exist for an SSP to offer them at all and this allows their sales teams to start to really unlock a lot of data insights and help them with their sales strategies, and we become much more than just, "Are you a demand partner on the SSP side, can you actually help me drive my own first-party demand through my own data?" This is an amazing opportunity for us to start unlocking cross-sell, up-sell opportunities with some of the assets that we're investing in and with nexAI entering into the Discovery space, we do look forward to seeing who else is interested in that.

Steve, I'm going to come to you in a second, but I want to change the question. Let's talk about partnerships. Obviously, it came up in the customer panel. The tech is amazing, but it's as much, maybe even more about that service and partnership. How do you feel, Steve, and I'd say, I'll go to the rest of the group that how our partnerships have made not only our customers better, but also us better? When you think about that, what really stands out for you in our journey, either in the past few months or even going back years that really has helped us in our partnership with our customers.

I think I wholeheartedly believe the partners who lean in heavily on Nexxen as a technology partner and a true partner, we can transform each other's businesses both for the positive, right? We have many examples of that. And the challenges they put on us to improve our technology in order to tailor it to meet their needs gets extended beyond that partnership and to the broader relationship. Having partners who are at the forefront of client conversations and understand where the market is going to feed that into our product road map with Karim and continue to evolve an already powerful and modern tech stack is again, significant. So what's particularly rewarding for me is to be at a company and on a platform that no matter what the challenge is that our marketers have in this incredibly complex and fragmented world, we can offer a solution that is tailored and scalable and global, right? And I think that is transformational when it comes to the conversations we can have as a full end-to-end stack versus being a single platform adtech stack, which will only become increasingly more challenging in the market.

Kara, same -- feel the same or?

Yes. I think when we talk about partnership, it's really what you all just saw in this panel here, right? It's where we build off of each other's businesses and we really gain in the upside in that. And for Nexxen, our goal is to get as many strategic partnerships as possible because, obviously, that we've subsequently repeatable revenue, which is why we're in this room today to learn about. And I think what Nexxen uniquely does is gives the tools to build those partnerships, right? We're not just a single point solution where we're a piece of their puzzle. We have access to their data. We build alongside them and then ultimately, what that leads to is a partnership where we gain in their upside. So as agencies onboard new clients, we're automatically going to get that organic growth, right? As brands are doing well in the market, we have new brands and products, we're going to ultimately be the partner that they choose to run their media activation. So ultimately, that partnership element is really at the core of what we do because it allows us really to bring the revenue growth and transformation of the business.

Ken, is there anything to comment on partnership there?

Yes. I'll give you a little secret that Ofer told me when I first started at Nexxen. He said to do a partnership, you need 2 things. You need interest and you need momentum. These are 2 key pieces that I really feel we have now assembled an amazing amount of technology assets and so the interest is there, it's going to be obvious. And then on the momentum side, we definitely feel it in market, a big boost of opportunities do sit in front of us. And the partnership side is super interesting because we all kind of come from different parts of the industry, but we've all been assembled in this one company. And oftentimes, we're pulling each other into meetings that are not our core customer to talk about the other side. So a publisher wants to learn about the technology side or the demand side or the Discovery side and likewise, the media side or some of the assets we have with some of our direct CTV publishers in an agency meeting. So that cross collaboration is really key to unlocking a lot of the partnerships that we're seeing today.

Chance, take us home.

Yes. I mean there's a very big difference between a vendor and a partner. Vendors are very transactional and they come and go and partners are with you for a very long time, right? We had 2 of our partners tell you themselves, so I don't need to rehash it too much, but we feel very integrated into their business. Their wins are our wins, their challenges are our challenges. We feel as though we are an extension of their business, and I hope that they feel the same way. And so as much as we talked about technology today and of course, technology is the way forward, at least today, people still do business with people and the trust and the camaraderie and this respect that we have developed with our largest partners, has allowed us to grow with them, share in their wins and again continue to invest in their businesses, so they feel very confident that the technology is supporting their vision is sound and it's backed by people that they have a lot of trust and respect for, and we definitely do not take that lightly.

I want to thank my colleagues for their time today, same time next year. I want to thank you all. I'm now really excited to introduce Sagi, our Chief Financial Officer, to run you through some financials.

That's me. Guys, I know that you are overwhelmed with all the data and information that you got in the last, I don't know, 2 hours or whatever. So if anyone wants me to skip the presentation, you should raise your hand now. Okay. We move to our financial overview and growth outlook. So all the things that you -- that we just shared with you, I think brought us to this point in time where Nexxen has very strong fundamentals. So if you can see up on the screen, you'll see that we choose a number, 33%, because it's a lot of other KPIs that we are measuring. So we grew 33% in our CTV revenue in 2024. We have 33% adjusted EBITDA margin. We have 33% of our revenue being generated through CTV. And we have 38% of adjusted EBITDA growth in 2024. There are other KPIs up there, which you can see you are familiar with, and I will talk about them later. On the left side, you can see, as Ofer mentioned in his presentation, the journey that we did from 2017 till today. So we've been very acquisitive. We've acquired Tremor DSP in 2017; 2019, RhythmOne; and we became really end-to-end solution at that point of time and made a foray into CTV very early. In 2020, we acquired Unruly, which gave us a lot of brand recognition. And our staff, of course, when we acquired a CTV ad server because we wanted to be focused around CTV, which we'll touch in a minute. And after that, we made our biggest acquisition ever, which is Amobee, which gave us an omnichannel enterprise DSP for the first time, and we were starting to focus more and more on self-serve revenues. And that's all brought us to the rebranding that we just mentioned, in 2023, Nexxen, a very comprehensive, full stack end-to-end adtech ecosystem. On the right side, you can see that our revenue CAGR or net revenue CAGR for the 5 years is 16%. So we've been very acquisitive until 2022, this was our last acquisition. I think immediately after the acquisition, we sold some macro trends from the Ukraine-Russia war, supply chain issues following that and almost a full recession at that point of time. It didn't help us a lot in order to integrate all the different moving parts within the big acquisition, and this is why we grow very little in 2023 -- in 2022 and in 2023. After that, after we streamlined everything and you saw what we did in the last couple of years, I think that in 2024, we grew organically almost 10%, and our guided 2025 revenues is taking us for another ride of 10% growth in 2025. So after we consolidate all of that, we wanted to understand in what we are depreciating for our peers. So as you all familiar with, and as it's been told before, we have a DSP, we are part of the open Internet on the SSP, and we are part of the end-to-end players. Some of them are alleged players. I'm not sure they're end-to-end, but they are claiming to be. But we are, at the end, a really end-to-end player with an ad server, and in-house creative data platform and, of course, DSP and SSP. Here you can see, and I think that Ofer mentioned it in his presentation. So we have a 5-year CTV CAGR of 30%. In 2020, we did less than $37 million of net revenue for CTV. In 2025, we will do more than $137 million, it grew from representing 12% in 2020 to 36% in 2025, 3x up. On the right side, you can see that our CAGR in video is 14%, and we were focused on that since we acquired Tremor DSP. And it's representing in 2025, 74% of our revenues through video revenue. So we touched that and we understand and everything around the industry now is about CTV. It's not only a buzzword, Karim in his presentation showed you the decline of the linear TV advertiser -- advertising and the increase in CTV advertising. So Nexxen grew in the last 5 years by 30% in CTV revenue generation, while the industry grew 25%. And of course, ad spend or digital ad spend grew only by 17%. In 2025, we're supposed to grow 20%, while the industry is growing 17% and the digital ad spend is growing 12%. So again, after the acquisition of Amobee and the capabilities that we got from this acquisition, the omnichannel enterprise self-serve DSP, we were very keen to increase our self-serve revenues. And it grew from 2020 with it, all of our spend was 82% in managed service campaigns and 12% -- sorry, 18% was generated through self-serve revenues. In 2025, we are estimating we will have 60% of our revenue generated through self-serve campaigns or spend and 40% will come from managed services. By the way, very interesting, from every dollar that is transacting through our full ecosystem, $0.52 of that is going through our DSP, to our SSP, of course, in the middle we have the DMP and everything that we are doing around that. So this is like the media shift that we are managing right now. It was increased over time, and we are assuming that going forward into 2026, of course, and onwards, this media shift or this utilization of every dollars that is getting into our full ecosystem will be much higher within the ecosystem. And of course, it's contributing to our margins and our expansion and our related KPIs. Again, because we are owning the full ecosystem between the demand side and the supply side and of course, as we are calling us sometimes a first -- a data-first company, we are allowing our customers to enjoy or we can cater them much more services than one-sided or other non end-to-end players can cater them. And of course, if someone is coming to our ecosystem and utilizing only the Discovery tool or only the DSP or only the SSP over time and because of our great service and all the things -- the good things that our clients talked before, we are able to get more and more locations from them into our ecosystem. And that's important because we are capturing like all the value chain, we can increase over time our growth. And of course, it is helping us to expand our margins. Here, you can see that on top of all of that, because of the size that we gained, we have an economy of scale, and we are very, very controlling our -- or managing in a prudent way our cost structure. So when we acquired Amobee on a pro forma basis in 2022, we had like $278 million of operating costs. Immediately 1 year after, which is, in my eyes, amazing in 2023, it went down almost by $50 million. So in 1 year, we managed to do like the cost synergies of $50 million, which is not run rate, it's what happened in 2023. And our cost went to be 74% of our revenue. Year later, we continue to do these efficiencies and put all the monitoring in place, and it went down to 67% to less than $230 million of expenses. And then we are expecting in 2025 to go or our expenses will represent 66% of our contribution ex-TAC. If you are looking on the right side, you can see that our operating costs, we broke it like in very high level. So 70% is coming from our headcount from almost the 900 full-time employees that we have. And the other 30% is composed out of hosting data, rent, marketing and other operating expenses. Here you can see that all we just talked about and all the expansion and all the growth and all the profitability that we gained over the years is translating into cash. So on the left side, you can see our free cash flow in millions. In 2023, we had not an amazing year, again, macro recession and other stuff, and we managed to generate only $21.5 million. In 2024, we had an exceptional year, which we generated more than $110 million of free cash flow. And in 2025, we are assuming that we will be able to generate $75 million in free cash flow. Free cash flow per share because we are very, very aggressive on our share buyback, and we will touch that as well soon. We are seeing impressive numbers of free cash flow per share. So in 2024, it was an exceptional year, it was $1.63 of free cash flow per share, it's going down a little bit, but still very impressive, above $1 in 2025. On the right side, as we talk, because of the end-to-end, because of the different capabilities that we can cater to our clients, we are seeing expansion in our EBITDA -- adjusted EBITDA margins. In 2025, it's kind of steady and will be 33% and some of it is contributed to the fact that we are investing a lot in GenAI and all the great capabilities and new features that Karim took us through in his presentation and videos. By the way, I don't have any video, don't worry. We had, by the end of Q1, almost $165 million of cash and cash equivalents and we still hold a $90 million revolving credit facility, which we are not using. Here, you can see that all of these good money generation is helping us to be very flexible on our capital allocation. So in the last, almost 2.5 years, even less than that, we almost acquired or will acquire until the end of 2025, $250 million, $0.25 billion of our shares. We are intending or there is a plan that's already running of consuming $88 million through 2025 in share buyback. And our management and of course, our Board will keen to continue this share buyback as long as we feel that we are undervalued, which we are. Of course, it's helping us to do all the huge investment in product and technology and all the amazing things you just saw and of course, reinforcing our sales and marketing teams to fuel the continued growth going forward. So this is like our capital allocation strategy for now. Here, you can see that we are building through all the things we just said, relationship that last. And what we mean by that. In 2022, we had a contribution ex-TAC per customer of less than $250,000. It went up dramatically in 2024 to more than $0.5 million per client. And the retention rate went from 80% in 2022 to 102% of contribution ex-TAC retention rate in 2024. Of course, all of that is the outcome of what you just heard in the couple -- in the last 2 hours. So it is part of our, of course, customer service, which is so on the customer panel, data insight and GenAI initiative, which Karim took you through, supply path optimization, which we talked a little bit and touch it. Of course, strong region results, we have reached everywhere. We have our own SSP, so it's allowing us to get anywhere. And of course, the robust interconnected offering that we have within our full ecosystem. Very interesting fact is that 75% of the revenue that we generated in 2024 are related to clients that we've asked from 2021 or earlier. And this is, of course, setting the tone for the customer panel that we just had. Growth drivers and opportunities, again, international markets. We weren't focused really on that. More than 90% of our revenues are being generated in the U.S. We have footprint in the international market. But in 2025, and of course, onwards, we are going to be much more prudent on the growth over there, and we have plans to do so. Of course, we are increasing our end-to-end revenue, as I showed you, 52% in 2025 and it's going, of course, to increase over time. Enterprise self-service, again, moving from 18% to 60% in 2025. We are very focused on that. It's much more sustainable and durable revenues. So we are going to be focused on that. And I don't know, but probably in a couple of years, we will see 90% of our revenues are being generated through self-serve, while only a small portion will be still generated through managed services. Programmatic CTV and video. As you saw, CTV is the most growing device within the digital space. Video is the most engaging and growing format within the adtech space. And we are really focused on these 2. And of course, growth with agencies and large customers. So now we -- that we streamlined all the capabilities and enhanced the new ones, we feel that we can go to larger agencies and to bring much more scaled customers into our ecosystem, which will benefit from our services and will benefit from the margin expansion. Medium-term financial goals. So we are aiming to grow our contribution ex-TAC in the next year in approximately 10% each year. We are aiming to have 40% of our net revenue generated by CTV or more than 40%. We are aiming or we are believing that we can still maintain our 65% free cash flow out of adjusted EBITDA. And we think that we can reach in the mid-term adjusted EBITDA margins around the 40-ish. Last slide for me. So Nexxen and VIDAA, as Ofer mentioned in the morning -- earlier this morning, Ofer and guy from VIDAA signed a non-binding MOU, which will extend our utilization of global ACR data. Of course, our current agreement is still set to be expired on the end of 2026. So we still have a lot of time. Of course, we are going to invest in VIDAA in order to increase their distribution of active screens in the U.S. in order to enhance that front. And I think that we can see that VIDAA reach has grown significantly from the day we invested with them initially. So their active screens globally grew by around 2x and their viewable impressions grew by 50x, which giving you the potential, it's still early days. We don't have all the commercial in place. It will affect the company from 2026 and onwards. And the minute we will have all the details in the definitive agreement in place, of course, will guide the market about what's going to happen in the future. With that, I will call Ofer Druker for his closing remarks.

I have no slides. So thank you, everyone. First of all, thank you, you guys for coming up. I think that -- I hope and believe that we were able to demonstrate to you today how robust is our strategy and supported by a great technology and product line, which are, of course, important in order to maintain strategy. And I want to touch 3 points very quickly. One of them is that if you look into our presentation and all our discussions with our close partners and so on, you can see that we are there for them to deliver to them the best solution that they need in order to face the changes in the market, which I must say, it's not easy to be like a marketeer in this period of time, but they are doing a great job, both companies are very successful. And we are pleasured that -- we have our pleasure that they are using our technology and sharing with us their knowledge that we are building the next products together with them. The second point, which is super important is when you look at our ecosystem and you recognize all the trends, all the growth trends, challenges and so on, you can see that we are basically have the strategy and the solutions -- the technology solution to manage them properly. And we've done it many years already ahead of time. So it's not something that we wake up and found that the market changes, that we need to address them. We did it for many years, we built it slowly, but truly and we are there. We have a solution in order to enjoy from demand trends in the industry, which can generate growth, which is video, it's CTV, it's data and AI, and we will keep doing that. And the third element is the future. When you want to keep your edge and I think that we have an edge compared to our peers, we want to keep investing in innovation across the board of our product side and stack. And of course, to put emphasis now on AI, keeping -- putting emphasis on AI, which is a differentiator and multiplier of the technology that we are building and the next thing is to keep investing in data. Everything that we believe is a differentiator in this industry is related -- a lot of that is related to data, and we'll keep doing investment in that and integrate it very deeply and very smartly into our activity. And the agreement that we announced this morning, the non-binding agreement to expand and extend the relationship with VIDAA as Sagi mentioned to just a few minutes ago, it's super important for that, and more to come because we have a lot of agreements and a lot of activities around data, but it's of course, this is a very meaningful one for us. With that, I want to thank our amazing marketing team that is always making things happen in the right manner. I want to thank Billy, that is one man team, army, and I want to thank of course all our employees and all of you for your support and your trust in us, and we keep doing -- we will keep doing our best in order to lead and grow in this market. So thank you. Now we open the session for basically questions. Where is Billy?

Laura Martin from Needham & Company. So I have 2. Sagi, first if you -- is the deal that you're thinking about through VIDAA will extend the 3 years of the original deal and will it cost about the same as the first deal? Are the terms similar to the first time you did this?

Yes, first of all, the initial deal is supposed to end by the end of 2026. We are aiming to get to a new deal, which will start January 1, 2026 and will take us a couple of years ahead. Of course, as long as we will manage to utilize the data in order to generate more revenue, VIDAA will enjoy it more. So it's like very related to the consumption of -- of data story that we will utilize.

Okay, like a rev share kind of a idea, the more -- Okay, got it. And then Ofer for you, one of the things we're seeing from Google with a lot of announcements this week is they're increasingly going to answer questions and send less traffic to the open Internet. And since most of the open Internet that's ad-driven is a cost per thousand, the notion that once thousands will be delivered into the open Internet implies there might be downward pressure on ad revenue from the open web. Can you talk about how Nexxen reacts to this kind of new competitive reality where Google and all these generative AI large language models are going to be answering questions, which is a different form of organizing the world's information than has been in the past?

Thank you, Laura. I think that -- what we will see soon is that we see lower engagement with basically website in general. Maybe luckily for us that we are more heavily invested into CTV and mobile. And I think that less display, which is very meaningful, but we are less in display. But what we learned in the past 30 years of time in this business that you always find opportunities to integrate advertising into these messages, into this interaction with the users. So I think that also in this case, there will be ways to basically integrate advertising into these messages and into this new type of media. But right now, again, we put -- we are doubling up on CTV. We are doubling up on other formats, which is mostly display, which is what we call TV ads, which will be in the TV itself. And I don't think that this can be replaced by AI in this stage. But of course, it will be a challenge that we will need to learn and get more information and more knowledge about it in order to see how we are basically interacting with this challenge or opportunity. Usually, every challenge is also an opportunity, that's how we are looking at things. Thank you.

Maria Ripps, Canaccord Genuity. Can you maybe share a little bit more color on the extended partnership with VIDAA? Are there sort of any additional data capabilities or exclusivity in certain geographies or new geographies that come with this sort of expansion? And how should we think about either direct or indirect impact on budget growth over time?

What is the last point that you mentioned? What is the direct and indirect...

Impact on budget growth on the quarter?

Okay. So first of all, we're already working with VIDAA for several years. And of course, what I learned, and I mentioned it in one of our last earnings calls, the work that an OEM -- that is done by an OEM is a little bit different than adtech companies. It's taking longer time to see the fruits, to grow things because the processes are taking a little bit longer. We think that VIDAA is a very good partner for us, and we build like a lot of mutual interest and mutual things that we are building with them. And we believe that we are going to adjust the focus in order to bring now more presence into the U.S., which is our main market, and it's important to us to grow. In the international market, we feel that we will keep cooperating, but it's less something that VIDAA or us needs to invest direct revenues in that because it's growing anyway by demand and supply request that is happening in the market. And regarding the budget, like Sagi said, we are now -- after signing now this morning, by the way, the non-binding MOU, we will sit on the definitive agreements and the plans because there is a lot of areas that we should work with them in order to build this agreement. And hopefully, in the next couple of months, we will finalize it, and we will be able to give more information about the growth projection and so on. So it's a little bit too early, but we will do that soon.

Got it. That's very helpful. And then Sagi, you talked about CTV growing about 20% this year versus 17% for the industry overall and you discussed a lot of sort of exciting capabilities and partnerships today that's driving all this growth. I guess, can you talk about what segment or segments of their CTV market that you are taking share from?

Yes. I think CTV is growing or I don't think -- I'm sure that it's growing. I think that CTV entering now into live sports is going to make a collapse through the slow trajectory of what happened in the last couple of years to a much more enhanced one. I will not be amazed if in 2 years, linear TV will go dramatically down, and CTV will grow dramatically high. I think that we are well positioned in order to capture this huge potential because of our relationship and capability. On top of that, I think there is some kind of price pressure on CTV. So CPMs are going lower over there. And I think that it helps advertisers that isn't has the budget or the bandwidth or we're afraid in order to go that road, we are now trying it. So I think at the end of the day, CTV will be for everyone. It's already replacing linear TV and mobile and some other stuff. It's like a combination of different devices and different trends. So I think the future is very bright to the companies that have all the capabilities in place in order to capture that, and it's coming very soon.

I want just to add to this one thing. I think that the pricing that Sagi mentioned, basically, when it's going down and technology and targeting is going like making more advancements and so on, it's opening the market to a lot of performance related or semi -- soft performance and heavy performance campaigns in companies to get in and contribute. So if -- in the past, the CTV was the area of mostly high brands that are looking to improve their brand and awareness. Now we see that the market is taking into a little bit different position, which is good, because more advertisers will be able to get into the CTV world, and it will increase the demand and in the end, will increase the supply and we can grow this ecosystem even further.

Matt Swanson, the Royal Bank of Canada. Over the last 1.5 years, we've talked a lot about post integration of Amobee of shifting from defense to offense. And then Karim, I think you said today that your DSP is the best kept secret in the adtech space. So thinking about the offensive playbook to not have that be a secret combined with all the tech innovation we've seen today, how do you think about getting into more proof of concepts? And then maybe as like a natural follow-on to that, Sagi in your slides, you showed the 75% of revenue in 2024, given customers since '21 and we saw the improvement in retention rates. When you're thinking about the forward-looking trajectory of the company, how important is new customers and getting into those new proof of concepts to show off this technology versus the deeper opportunity in your installed base?

Karim, do you want to answer about the DSP, and I will...

Sure. I mean, to start with, as I mentioned during my presentation, we're already seeing that shift. So we have new customers testing the platform and we're winning a lot of these new customers as they're testing and winning in performance. So we're already seeing that shift. The brand awareness, as Chance mentioned earlier, as well, has grown tremendously in the last year. So we believe we're there now, right? And so right now, our focus is on organic growth, onboarding new customers to the platform, but also, as we mentioned earlier, help our current customers grow as well. And we're seeing that as well and we are seeing more revenue from these customers.

And one more thing that when you're talking about from a defense to offense, I think that one thing that is important. After we basically rebranded the company, improved the messaging, tighten the packaging of the product because it was very complex in the past to understand what we are offering. It's like we have so many systems, so we used to have so many names. Now we have material offering to -- we are adding a lot of new talent to the company. We are putting a lot of emphasis on bringing strong experienced people into the business that will help us to market this great solution into the market. And I think that this is a step that we are doing. And we waited because you cannot do that without this rebranded, without this strong and precise packaging, you cannot go to the market in full speed because then you will lose your name. What you need to do is to, first of all, settle the offering, settle the packaging. And now we are basically in a stage that we are adding a lot of very experienced people into the mix in order to grow our presence and touch points with the market.

Yes. To answer your question, Matt, I think that contribution ex-TAC retention rate is very important. I think that's being more than 100% in 2024 is implying that we are succeeding in getting more allocation for existing clients. So to bring a new client, it's important. But after you have this client, you want to get or to catering much more services than the reason he came for. And I think that if we were to succeed to do more than 100%, it's saying that we are succeeding in what we are doing and all the things that we just laid around our capabilities and different aspects of the business and different level of services and all of that. So I think it's very important because it's already -- the client or the customer is already in the door. Having said that, I think to bring new clients, of course, this is the growth of the future. So in our industry, a self-served client is not like exploring on the first day, it's taking time. It's taking time to ramp up, to integrate, to do A/B testing, to get trust in the system, to get educated, then to try different services. And from that moment on, of course, this client is becoming from a small client into a much bigger potential client. So I think at the end of the day, both are very important. We have a dedicated team that is hunting all day in order to bring new clients into the ecosystem. And we have another team which is growing the existing and selling the existing clients to go to the different level.

Jason Kreyer from Craig-Hallum. I wanted to ask about just the relationship on Discovery AI and how that interacts with your end-to-end stack, because it seems like you've got a lot of uniqueness in the fact that you're ingesting data from both the demand side and the supply side. So how does that create a competitive advantage versus others that have like AI solutions in the market?

Yes. If you look at Discovery, it's a brand insight tool. It's a trend analysis tool, et cetera. You'll see similar tools at agencies today. What makes Discovery truly unique is the ability to take those insights of those analytics and transform that into actionable audiences that we can activate in the platform. So it's really that unification of the Discovery AI and the Discovery assets with the DSP, with the SSP to translate from insight to activations to performance and connecting those dots together. That's really like the main driver of the platform. And so as mentioned before, it helps us win customers, but then it helps us drive performance for those customers and grow those customers. So for that, it's really a key asset for us.

On that, I just want to add something which is more maybe general, but important to understand. I think that when you're looking at technology, sometimes you have a platform, which is like outstanding. But if it's not -- if it's working in silo and it's not connected to the rest of the product that's supposed to provide the solution, it's interesting, but it's not great. I think that the importance that we created, we built everything on one platform, which is giving us a lot of advantages to us and to our partners and our customers. And this is something that people are basically experiencing on the move. So basically, when they start to test our technology, they feel that they can basically utilize more and more capabilities of our platform in a very easy manner and in a very -- in simplicity, which is super important because again, sometimes we forget, but the issue and the main challenge of most of our customers is not to manage adtech platforms to reach their goals. And they need to get simplicity, they need to get ability to move their data into a system to enjoy analyzing their audience, getting insights and sentiment and able to activate it in a very quick manner and that's what we are basically offering. And this is what we are now messaging to the market more and more through clients. And the clients that came here today super important to us, and we, of course, appreciate for the fact that they came and what they said about our company. And I think that they are very 2 professional clients in the industry that knows how to manage their budget in a very, very, very tight and smart manner. And the fact that they are giving us their trust and showing that they are working with us for long -- such a long term, just show you that what I said before, it's not just every piece of the technology that is standing out, but also the combination of everything that is creating a very powerful platform that is generating ability for our partners to win in this marketplace.

Matt Condon from Citizens Bank. I wanted to ask is just all these degenerative AI tools that you guys are launching and really lowering the barriers to entry of coming on to the platform. It seems like you guys are focused on moving upmarket into the enterprise, but what opportunity is there in the SMB segment to maybe address that area of advertisers that have historically not advertised on CTV?

Right now, we are not so much on SMB because we are not -- there are companies that are basically addressing this market space. We are more working with agencies and direct partners, but in bigger sizes right now. But I think that the phenomena that I mentioned before that basically the prices of CTV is going down, I think that will open more opportunities to do more stuff. And of course, our system today -- the full system that we are managing today together with AI will help less, let's say, sophisticated advertisers to run campaigns basically on our platform in the future because it's very -- you need a team. It's not an easy to run campaigns in magnitude on platforms like ours when you are a national advertiser player. But I think that as the development of AI will come, they're lowering the price of entry points to people to join, I think that will help to grow this segment in a very big manner. I expect that the additional growth in CTV will come from people that will practice more performance on the platform. And also our DSP, what Karim mentioned before, I think that our DSP is set very well to performance because in the past, the people that build the DSP, built it in a way that it will serve companies to achieve their goals in a very meaningful manner. So I feel that this combination of what we got with AI, data, the ability to all the algorithm and machine learning and now AI that is being used in order to generate results will play a very big role in our future. So given the fact that we until now, we're like considered like more branding and some performance, I think that our systems are heavily duty for performance, and I'm coming from a background of most of my years in this industry, I'm close to more than 27 years in this business, I think 20 years came from performance. So I think that our system is well addressed and well fitted in order to drive performance. And we will probably integrate more performance elements into the system in the near future.

And then Sagi, just on capital allocation. I know the main focus is on share repurchases and then investing back into the business. But specifically on the data side and that's been the focus today, just what opportunities are there maybe to -- for acquisitions in the data space? Is that something that you guys are looking at? Or is that not the focus today?

I can share that we are not involved in any active M&A right now. We are not saying no, we've been very acquisitive until 2022, and then we take some time in order to streamline all the 5 major acquisition we did through these years. I think that if the right opportunity will come, we may take it. I think that we will not buy a huge client base or huge publisher base because I think that we have most of the reach that we want to have. And I think that you will probably -- we will probably overpay for that. I think that data, AI and some initiative around tech is something that is making sense to buy some small IP that can enhance our development by 12 months ahead. Karim, do you have anything on that?

No, that's basically, if there are technologies that can help us accelerate our growth, we will look at that. We -- of course, we build a lot of things in-house, but we can't be everywhere, it's a big platform. So we have to focus on the areas where we feel the impact can be the greatest. But we're always on the look out for additive solutions that we can add to the platform. So kind of as Sagi said, not necessarily major acquisitions that come in and require another major integration but rather pieces that we can add in that will help us improve our performance and our service to our customers.

I just want to say one thing that's about this. I think that after finishing the integration with Amobee and all the DSPs and all the hard work that we've done in the last few years, we don't feel that we need like an heavy duty piece of platform that we are missing. We have it. As we said, we are talking about sometimes enhancement or small tools that can enhance and build more way capabilities. We will never say no. And the second thing is that we are open-minded. We don't have ego that say we will build everything by ourselves and so on. We always check 2 options, build or buy. So every technology, we are building our own technology. As I said, we have about 350 people in our product and technology teams, and we trust them, they are very professional. And you can see today, they are doing a great job. But sometimes you need to look at the market and see if there is something that makes sense for you to acquire. And without an ego you should sometimes do that. But of course, this is not an heavy duty platform that we need to integrate into our platform right now.

I often tell Ofer, I had no white hair before these integrations. So really, our focus is on organic growth, and I think we have the pieces we need to deploy market.

Mauricio Munoz with Raymond James. Just wanted to ask you about the drivers of improved profitability, maybe a strategy for increasing adoption of your end-to-end platform. Could you please share some color on the percentage of total platform spend that currently touches the DSP and SSP? And then as we think about the benefit for Nexxen on having an interim platform, obviously, an uptick in revenue, but also some efficiencies in improved utilization. Are you passing down to your advertisers, some of those benefits in order to sort of increase adoption of your DSP omnichannel -- of your omnichannel enterprise DSP? Maybe help us understand that dynamic and how it should fit within the entire strategy?

Yes. Do you want to take the second one?

No. Take first part, maybe about the...

Yes. I think I touched it within my session. From every dollar that is now entering our full ecosystem, $0.52 are being utilized or consumed within the full ecosystem. So from every dollar, $0.52 is going both ways. And of course, if the media shift will increase, it will help our margins because at the end of the day, we are end-to-end. So we are a DSP and an SSP and much more than that, but we are enjoying or benefiting both sides of the equation. So we are taking a take rate, which is the benchmark in the industry from the demand partners, and we are doing the same with our inventory partners. So it's 52%, probably from 2026 and onwards, it will increase. And of course, it will help or increase our margins.

I mean there's tech fees in obviously supply and demand platform, but there's tech fees in onboarding, there's tech fees in planning and measurement. So as we bring all of these together, we can unify them into one fee for our advertisers and ultimately get money back in their pocket. But on the other side as well, we're able to pay publishers more. So essentially, we share some of that enhanced profit. Of course, we keep some for ourselves as well. And then ultimately, everyone -- everybody wins.

I think that when you're looking at it, we are not trying to get to 100%, and we'll never be able to do that I feel, because I think that we are giving our advertisers and partners the option to buy media, for example, wherever they want or to buy with us only media and not using our DSP, so it's fine. We are trying to capture as many opportunities as we can in the market. I think that the fact that we are developing now, as you saw, the Discovery, which is relatively new to us. I think that it will increase the usage of the platform in general because people will like to get more and more out of the platform. We are doing it in an incentivized manner, meaning we are sharing with them that if they will run with us on more of our platforms, they will get simplicity, they will get efficiency, they will get better pricing, lower their costs and something that is also very important is how much work they need to place into that. And of course, when you're using one platform, it's lower numbers of headcount that you need in order to manage your campaigns with us and so on. So all over, we are giving incentivized to these people. But again, we will not reach 100% because we let people choose and sometimes they want to run campaigns according to their agreements or to on positions that they choose, and we are fine with it.

And then when we think about the monetization opportunities for your DMP platform and the sort of demand that you're seeing for advertisers may be looking to buying from a curated packages through PMPs. Usually, I think more about these from like a bigger opportunity of the DMP and SSP. But is there also an opportunity maybe for your DSP as advertisers might also want to integrate with your DSP rather than access these PMPs through their DSP of choice today?

So the question is, if we -- what is the last question? If your DSP...

There is so many times DSP and DMP. So we lost you.

Yes. I just want to understand the potential impact for your DSP from curation, if at all, given that you are entering the platform?

So DSP using our DMP?

Advertisers using your DSP to access your curated packages through PMPs?

So we are doing that. We are basically -- our sales team is basically supporting 2 elements. One of them is when you are launching your campaigns through our DSP, which is one option when sometimes -- by the way, some of the advertisers, there is like a mix. So they can run some of their campaigns manage, some of their campaigns they can run it on a programmatic level meaning on a PMP, they don't want to use your DSP and they are running it by themselves, which is fine. I think that the nice thing that we built, and I feel that it's accommodating the market needs that we build in our company, as I mentioned before, we are not basically forcing advertisers to use our DSP when they want to run or work with us. So they basically can use our -- they can buy media from us. And the fact that we basically placed our DMP in the center of our business -- in the center of our technology stack enable us to basically use data also when you're buying just media. We can allocate segments, we can integrate segments into the media reach and people can enjoy from that. So we are very flexible in what we are doing. But of course, we are trying always and forcing always that some of their main activity will be done on our platform, so we'll generate revenues from that and not just provide technology to someone to -- and run in other places.

You heard from our customers today, it's extremely common for our DSP customers to curate media through our SSP to activate. I'd say that most of the case that's how it runs. Where curation comes in from the sell side, as Ofer mentioned, is for customers to choose other DSPs. We're still able to bring them the benefit of our data and our media. So that's the use case where we would push data to the sell side and package it there. So while curation became a big topic in the industry, we've been doing this for well over a decade at this point because we've had data and media connect together for a long time.

I think that's all we have time for.

Thank you very much.

Thank you.