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

Welcome to Nexxen's Second Quarter Earnings Call. [Operator Instructions] This call is being recorded, and a replay will be made available on Nexxen's Investor Relations website. I will now hand the call over to Billy Eckert, Vice President of Investor Relations, for introductions and the reading of the safe harbor statement. Billy, please go ahead.

Thank you, operator. Good morning, everyone, and welcome to Nexxen's Second Quarter Earnings Call. During today's call, we will discuss our financial and operating results for the 3 and 6 months ended June 30, 2026, as well as our forward-looking guidance. With us on today's call are Ofer Druker, Nexxen's Chief Executive Officer; and Sagi Niri, the company's Chief Financial Officer. This morning, we issued a press release, which you can access on our IR website at investors.nexxen.com. During today's call, we will make forward-looking statements. All statements other than statements of historical fact may be deemed forward-looking. We advise caution in relying on them. These statements include, without limitation, statements and projections regarding our anticipated future financial and operating performance, market opportunity, growth prospects, strategy and financial outlook. They also include, without limitation, statements regarding our partnerships and anticipated benefits related to those partnerships as well as expected benefits from our growth initiatives and platform investments. In addition, we may provide forward-looking views on macroeconomic and industry conditions and other statements regarding the expected development, performance, market share or competitive position of our products and services. All forward-looking statements are based on information available to us as of the date of this call. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those implied by these statements. These include, among other things, unexpected changes in our business or in macroeconomic or industry conditions. More detailed information about these risk factors and additional risk factors are set forth in our filings with the U.S. Securities and Exchange Commission, including, but not limited to, those listed in the section entitled Risk Factors in our most recent annual report on Form 20-F. Nexxen does not intend to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Additionally, the company's press release and management statements during this call will include discussions of certain measures and financial information in IFRS and non-IFRS terms. We refer you to the company's press release for additional details, including definitions of non-IFRS items and reconciliations of IFRS to non-IFRS results. At this time, it is my pleasure to introduce Ofer Druker, CEO of Nexxen. Ofer, please go ahead.

Thanks, Billy. Q2 was another strong quarter as we delivered record results well ahead of consensus estimates, highlighted by our best CTV revenue quarter in company history. Our outperformance enabled us to raise our full year Contribution ex-TAC and programmatic revenue guidance for the third time this year and reflects continued execution against our long-term strategy. The investments we have made across the major elements of our platform, alongside our enhanced AI capabilities and tighter, sharper go-to-market approach are improving execution. These investments are translating into stronger adoption, accelerating spend ramp and growing platform usage by clients and partners. We have continued to onboard a growing number of enterprise customers and as they scale spend and adopt more solutions, we believe they will support our growth in the second half and over the coming years. We are also strengthening our CTV leadership through our growing strategic commercial initiative and innovations like Nexxen TV Home Screen. At the same time, we have continued to expand in AI resilient channels such as mobile in-app, reinforcing several long-term growth drivers. As AI initiate programmatic advertising, we believe differentiation will be driven not simply by AI capabilities, but by the strength of the integrated platform on which those capabilities are built and the core platform elements that power them, including proprietary data, exclusive media assets and open interoperable technology. Those are areas where Nexxen has built a durable competitive advantage through both our differentiated products and integrated end-to-end platform strategy, enabling us to innovate across the programmatic value chain. While many view AI as mainly efficiency tool, we are using AI primarily to drive growth by delivering stronger outcomes and expanding the benefits customers can realize from our platform. We strongly believe that nexAI can represent a meaningful long-term strategic growth engine for Nexxen, not just a productivity enhancer. Over the last several quarters, we have made significant strides in our enterprise go-to-market execution while enhancing our DSPs full funnel performance, usability and integration with nexAI. The investments we have made are helping us attract enterprise customers with large, more recurring budgets and fueling deeper platform-wide engagement. In Q2, we announced our new DSP UI and enhanced nexAI DSP assistant, both of which are seeing growing usage across our enterprise customer base while improving performance and efficiency. Customers are also benefiting from our DSPs tighter integration with Nexxen Discovery, our proprietary audience insights and segmentation solution. This deeper integration is helping customers identify and activate new audiences using differentiated insights to expand reach and drive stronger outcomes. We also significantly enhanced our first-party data onboarding capabilities, enabling advertisers to move audiences from uploads to activation within 24 hours. Alongside our enhanced unified identity graph, these innovations simplify activation, strengthen intelligence, improve effectiveness and accelerate campaign execution. Built upon our DSP's direct integration with Nexxen Discovery, our proprietary data assets and our SSP premium media supply, these enhancements are strengthening an already differentiated enterprise value proposition. They are delivering even stronger results and driving customer adoption across more of our end-to-end solutions. For example, after initially onboarding as a DSP customer, Toyota expanded to leverage our data capabilities, Nexxen Discovery and our media supply, generating approximately 2.7x the return on ad spend and a 62% reduction in cost per vehicle sold. Supported by growing adoption and innovation, enterprise spend increased by over 25% year-over-year in Q2, and our pipeline remains strong. Additionally, the number of advertisers activated through enterprise customers increased from less than 400 in Q2 2025 to over 750 in Q2 2026, with each leveraging more than one solutions across our platform. Our CTV momentum continued in Q2 as we delivered CTV revenue growth of 33% year-over-year with year-over-year momentum carrying into Q3. Growth was broad-based as customers continue to increase spend across our integrated CTV technology solutions, exclusive TV data assets and premium media. As enterprise customers continue scaling spend and new publishers on board, we believe we are well positioned to expand our CTV revenue footprint over the long term. Momentum behind Nexxen TV Home Screen, our industry-first programmatic smart TV home screen ad activation solution also continues to build. We expect Nexxen TV Home Screen to begin contributing more meaningfully to revenues in Q4 with contribution ramping throughout 2027, supported by a strong pipeline across demand and OEM partners. Looking ahead, we are also continuing to expand our performance-based CTV capabilities, which we believe can further support our long-term CTV revenue growth opportunity. Beyond CTV, we're also continuing to benefit from execution against our mobile in-app strategy, which helped drive significant year-over-year mobile revenue growth in Q2 with year-over-year momentum continuing into Q3. Our SDK integration with Unity and others have strengthened our position in this AI resilient channel, expanding monetization opportunities across our platform. We continue to believe mobile in-app will remain a durable long-term growth driver. Beyond improving our platform today, we are also positioning Nexxen for the next evolution of programmatic advertising, where AI agents increasingly help advertisers and agencies plan and execute campaigns. We believe nexAI represents a core differentiator built on the advantages of our end-to-end platform, proprietary data, premium media assets and audience intelligence. Today, nexAI is already helping drive stronger customer outcomes, accelerating adoption and beginning to contribute to revenue growth, and we believe its value will continue to expand over time. Our initial focus with nexAI has been on expanding its platform agentic capabilities across the campaign life cycle. We already have agents assisting customers with reporting, audience research, QA and troubleshooting, and we plan to introduce additional agents supporting media planning, audience creation, optimization and advanced creative automation soon. As these capabilities continue to mature, we believe they will further support growing enterprise and publishers' engagements. During Q2, we also announced nexAI interoperability, which will enable our AI agents to connect with external AI agents through open standards such as MCP and Agent-to-Agent interoperability. This will allow advertisers and agencies to access Nexxen's data, audience intelligence and activation capabilities directly from the AI tools and environments they already use. We believe interoperability will become more and more important as enterprises build out their own AI ecosystems. Our strategy is to ensure that whether campaigns are run on Nexxen or through our customers' own AI assistants, we remain a trusted source of data, intelligence and campaign execution across those workflows as well as an integral part of our partners' AI infrastructure. Additionally, we are continuing to expand our dedicated AI teams to increase our focus on accelerating product innovation. Today, AI supports approximately 95% of our software development efforts, enabling our teams to deliver new capabilities faster while enhancing efficiency and supporting long-term operating leverage. We expect these benefits to continue scaling into late 2026 and beyond. In closing, we are continuing to execute against our strategy while investing in the priorities we believe matters most, accelerating enterprise adoption, growing our CTV leadership, deepening our mobile in-app footprint, enhancing our data capabilities and advancing our AI leadership through expanded nexAI products and solutions. Together, we believe these investments are strengthening our competitive position while creating several durable long-term growth drivers. In H2, we expect to continue executing strongly and to also generate incremental revenues around the U.S. midterm elections, which are expected to represent a strong political advertising cycle. To support our next phase of growth, we have also made important enhancement to our leadership team. Chance Johnson, our former Chief Commercial Officer, has been promoted to President of Nexxen. Chance will focus on strengthening Nexxen relationship with strategic clients and partners by better demonstrating how the company connected, robust and differentiated full platform capabilities can uniquely position them for success in the market. Kara Puccinelli, formerly our Chief Customer Officer, has assumed the role of Chief Commercial Officer and will continue managing the company's enterprise offering. Finally, Ken Suh, formerly Nexxen's Chief Strategy Officer, has assumed the role of Chief Business Officer, continue to position the company to capitalize on growth opportunities across its exchange business, particularly within mobile in-app and CTV. Chance, Kara and Ken's leadership role strengthened our commercial organization, unify execution and position us to accelerate growth across our core drivers, including enterprise, CTV and mobile. I have the utmost confidence in each of them. As CEO, I will continue focusing on Nexxen's short-term execution and long-term strategy while supporting our leadership team as we execute against that strategy. With that, I will turn the call to Sagi.

Thank you, Ofer. Our momentum from Q1 extended into Q2 as we once again generated record results that exceeded Wall Street consensus, fueled by continued disciplined execution across our core programmatic growth drivers. In Q2, we delivered Contribution ex-TAC of $97.8 million, a Q2 record, reflecting an 11% year-over-year increase. Programmatic revenue was $95.2 million, up 12% year-over-year, also representing a Q2 record. Our outperformance in the quarter was driven by strength within CTV, mobile data products and displays supported by growth across our entertainment, automotive and health verticals. In contrast, Contribution ex-TAC from desktop and our non-programmatic business lines declined year-over-year, and we observed softness within our travel vertical. During Q2, we initiated a strategic wind down of our nonprogrammatic influencer marketing business, RhythmInfluence. The wind down resulted in restructuring expenses in the quarter, but we do not expect it to have a material impact on Contribution ex-TAC or adjusted EBITDA in H2. We are continuing to evaluate strategic options for our remaining nonprogrammatic business lines to further improve our business mix and sharpen our programmatic focus. Growth in the quarter was highlighted by CTV as we delivered all-time record quarterly CTV revenue of $37.8 million, up 33% year-over-year, and that year-over-year momentum has continued to this point in Q3. CTV revenue growth was broad-based across our platform and not concentrated in any one particular area of the business. Mobile revenue increased 23% year-over-year in Q2, driven by execution against our mobile in-app strategy and that year-over-year strength has also continued into Q3. Contribution ex-TAC from data products, CMPs and display increased 46%, 23% and 18% year-over-year, respectively, while desktop revenue declined by 13%. Adjusted EBITDA for Q2 came in ahead of Wall Street consensus at $27.6 million, representing a 28% margin as a percentage of Contribution ex-TAC. The year-over-year change in adjusted EBITDA primarily reflects increased investment across AI, data, infrastructure, go-to-market execution and platform capabilities to support the company's long-term growth opportunities. We remain confident in our ability to expand margins over time through execution against our end-to-end enterprise strategy, nexAI-driven operational efficiencies and disciplined cost management. In Q2, we generated $61.3 million of operating cash flow compared to $17.4 million in Q2 2025. Our cash and cash equivalents increased significantly quarter-over-quarter to $132 million as of June 30, reflecting strong operating performance as well as the collection of receivables outstanding at the end of Q1. We continue to maintain a debt-free balance sheet with an additional $50 million of available capacity under our revolving credit facility. Non-IFRS diluted earnings per share was $0.23 in Q2 compared to $0.29 in Q2 2025. On capital allocation, we did not repurchase any shares during Q2. We prioritize maintaining financial flexibility while evaluating disciplined M&A opportunities alongside opportunities to deploy capital across our long-term strategic priorities, including continued investment in AI, data platform capabilities and go-to-market execution. Nexxen has authorization to initiate a new repurchase program of up to $40 million. We also expect to complete our additional $15 million investment in V during Q3, bringing our total investment to $60 million and our equity ownership stake to approximately 6%. Additionally, we are continuing to evaluate disciplined strategic opportunities that can further strengthen our mobile in-app, CTV data and AI capabilities and accelerate long-term programmatic revenue growth. Turning to our outlook. We are raising our full year 2026 Contribution ex-TAC and programmatic revenue guidance last provided on June 16. We now expect Contribution ex-TAC in the range of $388 million to $402 million, up from our previous guidance of $385 million to $400 million, representing approximately 12% year-over-year growth at the midpoint. Programmatic revenue is now expected in the range of $380 million to $393 million, up from our previous guidance of $377 million to $391 million, representing approximately 13% year-over-year growth at the midpoint. This reflects our first top line guidance raised this year. Since issuing the initial full year guidance in March, we've increased the midpoint of our Contribution ex-TAC growth estimate from approximately 8% to approximately 12% and the midpoint of our programmatic revenue growth estimate from approximately 10% to approximately 13%. We are reaffirming our full year 2026 adjusted EBITDA guidance, which we continue to expect in the range of $122 million to $132 million, representing approximately 10% year-over-year growth and a 32% margin on a Contribution ex-TAC basis at the midpoint. Our reaffirmed adjusted EBITDA guidance primarily reflects our expectation to continue investing across our strategic growth initiatives and platform capabilities in H2. Our outperformance in Q2 alongside continued momentum into Q3 and increased visibility into the remainder of the year enable us to increase our Contribution ex-TAC and programmatic revenue guidance. We are seeing continued year-over-year momentum across our core drivers to this point in Q3 and believe growth in the back half will be driven by accelerating enterprise customer engagement, growing end-to-end utilization and continued strength within CTV, mobile and data products. We continue to believe Nexxen TV Home Screen will further support our long-term end-to-end CTV revenue opportunity with initial meaningful contribution expected in Q4 and increasing throughout 2027 and beyond. Additionally, we expect incremental Contribution ex-TAC benefits in H2 around the U.S. midterm election cycle. To support our growth drivers, we will continue investing in AI, data, infrastructure, go-to-market execution and our CTV and mobile in-app capabilities to enhance performance, capitalize on the revenue opportunities ahead and extend long-term operating leverage. In summary, we believe Nexxen is well positioned not only for the second half, but also for leadership in the next generation of programmatic advertising, supported by our strong financial position, improving business mix and accelerating growth profile. We are continuing to execute while building upon the advantages of our end-to-end platform and doubling down on our most compelling growth opportunities across enterprise, CTV, mobile in-app, data and AI. Through disciplined execution and continued investment across our platform and highest priority growth engine, we believe Nexxen is poised to deliver sustainable, profitable growth while creating long-term value for both customers and shareholders. As always, we thank our shareholders, employees and partners for their support. Operator, we'll now take questions.

[Operator Instructions] Your first question comes from Jason Kreyer with Craig-Hallum.

Pretty impressive growth in Connected TV, particularly taking into consideration the turnaround that you guys have orchestrated there over the last couple of quarters. Can you just talk about what's driven that turnaround or the primary growth drivers in Connected TV? And then what is your view of the durability of those growth rates?

Thank you, Craig. (sic) [ Jason ] It's Ofer. I agree. I think that we see growth across all elements of our company, but it's really meaningful to see the growth over the CTV year-over-year. And it's coming from a few things that we've done lately, but most of that is better execution in generally speaking, meaning bringing more sales, more demand sources into the mix. We said we spoke about the growth of our enterprise solution, and we are incentivizing our clients that are using our enterprise solution to buy on our properties of the CTV. So we see growth also from that direction coming in. And lately, we also issued new initiatives around data and the native CTV ads that we Home Screen that we basically launched programmatically that's bringing a lot of interest. It's still not kicking in, in revenue, but it's bringing interest and people are more open to work with us in bring their -- and starting to move spend to our direction. And on the other side, I think that our media team is doing a great job managing the relationship with our partners on the CTV front, bringing new clients and new partners into the mix. And all of that together, we see growth coming in. And when you look at the numbers, not just percentage, we see that it's massive and it's growing. And of course, it's super important, and we'll keep emphasizing that.

I've got a follow-up for Sagi. I just wanted to ask about operating expenses on the outlook there. We've seen accelerating growth over the last couple of quarters that's been paired with just a little bit of contraction on EBITDA margins. I know you've made some investments there. But can you just talk about the outlook for OpEx and thus the outlook for EBITDA margin expansion in the coming quarters?

Jason, thanks. I think that's what we are seeing is like kind of intentional strategic growth investment. And as Ofer mentioned, it's all around. It's around AI, data, infrastructure, platform capabilities, enterprise go-to-market, strategic partnerships and other. Of course, it's affecting our cost structure in 2026. I think that on the long-term EBITDA objective, it's still unchanged. And as we disclosed it in our Analyst Day a couple of months ago, it's still on the long term, we are aiming to get to the 40-ish-percent. In 2026, our guidance is reflecting 32% on adjusted EBITDA margin, which is a little bit 1% less than what we had in 2025. I think that we are seeing that the intentional investment is fruitful, and we are doing right, and we are taking more market share. Going into 2027, although it's a little bit initial, we are seeing that some efficiencies that we already put in place in the last couple of months and ahead of us and reflect in 2026, not materially and to some extent, is going to be much more material in 2027. And we feel that we can reach 34% EBITDA margin already in 2027. So I think it's like a transformational year around investment in our cost structure, but it soon will show the right fruit and scale the expansion of our margin.

Allow me just to say one more sentence, Craig. (sic) [ Jason ] I think that the investment is shown in the growth. We are growing at midpoint for the full year according to our basically guidance, around 13% year-over-year, which is in our eyes, it's a very good event. And of course, the growth that you just mentioned on CTV and the growth that we are reporting on in-app -- in mobile in-app, all of that is coming also from investment. And together with AI that we put a lot of resources and attention to that, but we can discuss it. It's bringing a lot of fruits already, and we believe that it will be the foundation of the company in the next couple of years.

Your next question is from Matt Swanson with RBC Capital Markets.

This is Simran on for Matt Swanson. Congrats on the quarter. So for my first question, you framed nexAI as a growth engine and not just a productivity enhancer. Can you walk through the specific mechanism of how AI will help drive incremental revenue today versus improving internal efficiency?

Of course. In general, of course, AI for a long time until now in the last 18 or so months brought mostly efficiency. But lately, we integrated very deeply into our product, and we see that basically it's creating 2 things. First of all, when people are testing our platform basically together with AI, they are getting much better outcome from their campaigns that they are running with us. And not just in efficiency, but also in general outcomes that they are basically running, and it's basically driving them to move more of their budget to us. Most of the companies in our industry are not working with one provider. They are working with a few. But if someone of these providers is generating better results, of course, they will shift their budget from other providers to this provider, which is, in this case, us because of the results that we are driving, and we see growth that is coming from better performance of our platform, thanks to AI. The second thing is basically when people are teaching our technology and product and platform to clients -- new clients and they are showing the importance, not just of an efficiency, which is there also, of course, but also of the outcomes that they can generate, it's helping us to onboard more clients on our platform and getting them to run, as I mentioned, more budget with us, which is basically generating growth. And I think that also the AI is open to us better monetization of our own platform. In general, we believe that the power of AI or nexAI is not coming just from the AI, but also of the fundamental platform that is based on and working with and integrated in. And we feel that we have a very big advantage because we are end-to-end and it's driving better results for the people and the clients that are basically utilizing our platform together with AI tools.

Okay. Got it. That's helpful. And then in the quarter, it looks like enterprise spend was growing nicely and you have customers using more than one solution. Is that primarily driven by go-to-market execution? Or is it more of like the newer products that are resonating with customers? And just like more broadly, like what's been working well that's been helping drive this adoption?

So I think that it's starting with better go-to-market that we implemented in the last 12 months or so. It comes with great talent and better training to the people that we got, and they learn how to basically package it and present it better that people will understand the value of the platform, of the full platform that we can offer as we indicated with the results that we already mentioned in my script. But in general, I think that this is one, the go-to-market. The second thing is that basically, as I mentioned before, people are running on a few platforms. And when they see that one of the platform is delivering to them better results, they are shifting more and more spend. In this case, we see like agencies or clients that are running more -- clients moving more lines of business to us and agencies moving more products, more of their customers to run on our platform because of the results and also, I'm sure, because of the efficiency. But altogether, we see growth in the number of customers that we are running on our enterprise solution, which is, of course, encouraging. But as we indicated in the call, this is the foundation of our growth in the future. So it's super important that people will learn, understand what is the value, get better outcomes and shift budget to us in order to grow their business. And we are making everything that we can, of course, in order to deliver to them the best outcomes in the condition and the efficiency that they need in order to run their business.

Your next question comes from Andrew Marok with Raymond James.

Maybe first, this was the first quarter in quite a while where you haven't bought back shares. So maybe 2 questions on that. First, what were some of the specific signals you're seeing out of your product efforts so far that's giving you the confidence that internal reinvestment is the right move? And then second, what types of M&A opportunities are raising your interest right now as you cited in your prepared remarks?

Okay. Thank you for your question. I think that it's a combination of a few things what you just said. First of all, self-investment doesn't show sometimes a risk it's showing an opportunity, meaning we believe and we show -- we basically demonstrated that the extra investment that we made in the past 12 months in our own business basically generated for us better results as we indicated the growth of year-over-year according to our guidance of 13% on the programmatic level, which is for us, it's considered meaningful and good results. So we see that when we are investing back in our business and grow our operations, we are driving better growth to the company, which is a good signal. The second thing about buyback, we acquired in the last few years, about 40% of our company share. About -- we invested about $250 million. And we believe that we are not removing this tool from the table, and we feel that we need to look at it and examine this opportunity again, how we can basically utilize it. But side-by-side with that, in parallel to that, we are looking also at opportunities to make acquisitions that will not be massive, will not create a disruption to the business that we are running now, but can touch points and increase the capabilities in certain areas in the areas of growth, meaning some of them around CTV, some of them around in-app mobile and of course, AI that can basically provide us additional advantages in this field. And we have the cash, we have no debt. We are generating cash. So we are looking at all the opportunities and all the tools, the variety of tools that we have in front of us, meaning acquisition, as I mentioned right now, continuing buyback and of course, keep investing in ourselves, which is already delivering very good results.

Great. If I can maybe sneak in one more. We've heard the automotive vertical as being a drag for some of your peers and that vertical just kind of being generally soft on an industry basis. In your remarks, you cited it as a growth vertical. You had a case study there in your remarks as well. So I guess what were some of the reasons why you're able to beat the general industry trend of softness there?

Of course. I think that all the industry and especially car industry also, they know what they are looking for. They have very good KPIs that they are trying to achieve when they are running their campaigns and budget. I think that we are able to serve them well. I think that, again, when you're talking an overall slowdown, it's -- we are still part of this industry, and we are able to satisfy some of the needs and we are growing the interaction and success with these providers. But I think that it's probably what people are reporting about is more about like general macroeconomics or taxation that was happening in the beginning of the year and basically slowed down some of the -- some of this. But as I mentioned, in our case studies, we see we generate great success with these clients, and we are working hard in order to bring more clients to our platform in order to utilize the success and the platform that we created here that can drive them amazing results, efficiency and save resources when they are basically trying to get new clients.

Your next question is from Laura Martin with Needham & Company.

This is Dan calling -- talking for Laura. But CTV revenue hit an all-time record, and it's representing 40% of programmatic revenue. I'm curious as to how much of this acceleration is driven by native home screen ad units and the ACR data integration through the VIDAA partnership versus core stream inventory? And then kind of as a follow-up to that, what does the pricing CPM environment look like heading into the second half of '26? Congratulations.

Of course, thank you, Dan. So when we are looking at our CTV, the good news is this growth is without most of the elements that you just indicated, meaning it's still -- I strongly believe, we strongly believe in what we built here about the CTV Home Screen because of a few reasons, and I will elaborate to the people that may be less aware of that, but there is like hundreds of millions of TV -- CTV sets in the world. They are already showing us on their platform when you are launching the TV. But until now, it was not programmatic. We were the first to basically enable these OEMs to run a programmatic advertising on the screens. And we are working very hard with VIDAA, with others in order to basically provide them this capability in order to run programmatically on their TV screen. Since there are hundreds of millions of TVs outside, the volume of the media is huge. And this is a very unique media because it's encouraging engagement. It's getting a lot of attention when the user is launching this TV because you are there, you're in front of them. And if you are putting the right ad in the right time, there is a very good chance that the outcome will be good. And first result that we show already shows very good traction to that. But it's still early in our revenue. It's not like contributing this growth. This growth is coming from initiatives, business initiatives, growth in our business, as I mentioned before. And I feel that the next wave of growth will come from a few things. First of all, is the native ad. The second thing is the increased activity on business initiatives that we are doing now around so many projects and things that we are working with our clients and partners in order to drive. And the third element is also the data. So for the last few years, we are carrying the flag of data because we put it in front of the advertisers, its importance in order to create audiences, build segmentation, measure the results and so on. And we feel that now it's becoming like more and more evident to all the industry that is super important, including to our clients and is driving more spend coming to our platform overall, not just to VIDAA, but across the board, what we see is that the way that we are basically utilizing the data on our platform is helping us to generate better results and people are, again, like to spend where it's working for them, so they are moving their spend to us. So I feel that while we show great results in Q2, it's still without this initiative of Nexxen Home Screen native that is going to kick in mostly in Q4, but mainly in 2027 and forward. And the rest of the initiatives that we see are supporting and growing and generating better and better outcome also on the CTV front, and we are getting a lot of interest from advertisers, agencies, publishers in order to increase the work around our CTV activity because it's working very well for them and, of course, for us.