Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| We strongly believe that our pre-existing and newly launched solution will enable us to expand the base of customers gained through the Amobee acquisition that leverage us for multiple video-centric solutions in the future and also attract new video customers to our platform over time |
| We’ll strongly position the company for outside future market share gain, contribution ex-TAC growth, and improve profitability |
| So I think that we are well situated |
| However, for now, we are confident in the strategic competitive positioning and breadth of our platform's current offerings |
| During the quarter, we deepen the relationship with existing customers and emphasize introducing our capabilities of solutions to new potential partners and bolstering our sales and marketing team to position us for accelerated growth within our core strategic drivers, CTV, video and data |
| The rebrand to Nexxen was still in early stages as it improved our positioning by simplifying our story and valuable position for customers and prospects, enabling our sales team to seamlessly package several solutions and create a pathway to expand the sustained revenue per account growth through increased cross selling opportunities |
| We also believe we have further amplified the power of our rebrand by recently installing a new Chief Marketing Officer with a strong product marketing background, who join us from one of our closest ad tech peers |
| And as market conditions improve, our impressive ability to increase contribution ex-TAC in Q3 and over the first nine months of 2023, despite a lack of significant growth in CTV, highlights the strength and durability how the diversified revenue model provides |
| The Board has high confidence in the company's future growth prospects and believe repurchasing its shares at current level reflects a strong long-term investment opportunity for the company and its shareholders |
| Contribution aspect growth was largely a critical role to significant growth in programmatic revenue as our core business benefited from increased demand for our programmatic solutions, as well as the integration of Amobee, which featured strong programmatic footprint |
| While it's definitely a work in progress, we believe we are now better positioned to highlight the meaningful holistic value of our unified platform |
| We believe we now have the right structure and team members in place to best showcase the value proposition of our comprehensive suite of offerings and that we are well positioned to accelerate long-term growth and share gains through the combined strength of our people and platforms |
| So I think it’s too early now, but we are – since we have much more products, much more capabilities, we feel that we will be able to get more traction on this patent to grow our revenues around that next year |
| We believe as we generate higher level of contribution ex-TAC that the majority of increased contribution ex-TAC will flow through to adjusted evidence, given the strength of our operating model, which provides strong and increasing degree of operating leverage |
| We believe Amobee has already added a tremendous amount of value on this front and uniquely depreciated us while positioning us strongly for success in the future TV advertising ecosystem |
| We believe capable technology partners like us with robust cross-platform capabilities are best positioned to help them achieve continuous success converting linear budget into digital |
| We continue to believe that the combination of our durable business model and diversified revenue stream, focus on core strategic growth drivers, enhanced ability to drive multi-solution enterprise deals, greater stability following the completed integration of Amobee, and growing demand for our programmatic solution and recently added product |
| Now it's time to market the product and create a solid base of partnership that will fuel our future CTV growth as we become more active in assisting with the convergence between linear and digital |
| We believe Nexxen has a critical advantage on this front and is well positioned for this development specifically through the first to market cross-platform planner we launched in April |
| We have a very strong DSP that is basically a result of a lot of DSPs that we integrated into one technology, and we did it best-of-breed technology around the DSP |
| The solution is providing us a strong foundation for opening significant partnership discussions and we believe we experience strong growth related to this tool over the intermediate and long-term |
| We will continue to work tirelessly on further integration of this solution into new and current partnerships as we are confident it reflects a strong potential future growth driver for the business that can deliver significant value by attracting new customers and enticing existing customers to increase spending on our platform |
| It also further supports our belief that as market condition improves and customers shift more aggressively into CTV advertising in the future, that we are very well positioned for outside long-term market share gain |
| As demand for Hisense connected TV powered by VIDAA operating system continue to grow, driven by consumer desire for high-quality low-cost smart TV options, we believe our company and its customers will increasingly benefit from our strategic investment in VIDAA |
| So we look for a CMO that will have a very strong product marketing experience that will be able to help us to connect the doors, explain it in a meaningful manner to the market |
| We also continue to further strengthen our impressive talent base across all major focus areas of the company |
| And your ex-TAC revenue has been accelerating in every quarter to date, like really nice growth in the third quarter |
| So I think that we are in a very good position on that front |
| With Amobee’s team members and technology successfully integrated into our business, we believe we are developed and now both one of the most comprehensive TV and video focused platforms in the market, differentiated by unmatched data power solution that enable better outcomes and greater efficiency for customers across the entire advertising value chain |
| The integration of Amobee further accelerated our product innovation leadership role and enable us to launch thought after and desperately needed solutions that we believe will deepen our relationship with customers, attract new customers and further position us as a trusted industry partner and leaders in the combined future CTV and TV advertising ecosystem |
| Statement |
|---|
| As macro uncertainty drove managed service toughness, causing customers to temporarily shift spending from higher cost options like CTV into lower cost options like mobile and desktop as well as display |
| So we all heard about from our peers also, that there is a pressure from macroeconomics on the performance of the advertising industry for sure |
| Conversely, softness was observed within our CPG vertical and within CTV, as challenging market conditions drove reduced advertising demand and softness in managed service, particularly in July, causing customers to temporarily shift spending from CPG into lower cost options such as desktop and mobile as well as display |
| As I mentioned, the year-over-year decrease in CTV revenue was largely driven by weakness earlier in Q3, particularly in July |
| The year-over-year decrease in adjusted EBITDA were driven by the acquisition and integration of Amobee, which was generating significant losses when we first acquired the company, as well as a weaker comparative advertising demand environment earlier in 2023 |
| Year-over-year decline in CTV revenue driven by challenging market condition and significant year-over-year increases in programmatic revenue |
| It’s, of course, lowering the CPM, slowing the traction and so on |
| CTV revenue declined from Q2 to Q3, essentially went from in round numbers, $25 million in Q2 to $20 million in Q3 |
| CTV revenue for Q3 2023 was $19.6 million, which reflected a decrease of 21% from $24.7 million in Q3 2022 |
| But you're showing negative year-over-year growth in your guidance for Q4 |
| I think that there is a lot of instability in the market |
| So in terms of customers seeking kind of lower-priced formats, like one thing that we've heard kind of across the space this quarter is that CPMs on non-CTV video are coming down |
| And in general, cautious about the market that is slowing down the industry |
| The second thing is also verticals that in the last year that were like very strong on CTV like entertainment, and automotive suffered from internal issue for them of the verticals that basically affected also the they're buying metrics and affected the size of the industry |
| We are also seeing signs that the recovery will remain uneven and that ongoing macroeconomic headwinds and uncertainty will limit advertising demand and budget, drive continued managed service softness, and cause our customers to continue to focus near-term spending on our lower cost solutions, such as display, through at least the reminder of 2023 |
| I think that we mentioned it in the previous calls that was also slow us down is because we needed to work very hard on the integration |
| And then the second thing, just back on CTV, with more inventory coming online, CPMs and CTV have come down as well |
| So I think that all of that together showing weakness in CTV like we see across the board, not just with us, but I think that we have the tools, as I mentioned, like the ACR that we are now expanding into new territories with success and the cross platform that we are initiated to the publisher side, and we are moving it now to the demand side next year |
| Of course, it's not as it's been before the macro challenges and headwinds hit all of us |
| While we believe conditions in the CTV advertising market have stabilized, compared to July, We expect ongoing market uncertainty and managed service toughness to constrain advertising badges and drive customers to continue to more so leverage our lower cost solution through at least the end of 2023 |
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