Innovid Corp.

Third quarter revenue increased 6% year over year to $38.3 million. Ad serving and personalization revenue rose 7%, measurement revenue grew 1%, adjusted EBITDA was $8.4 million versus $6.5 million a year ago, and adjusted EBITDA margin expanded to 22% from 18%. Net income was $4.7 million, or $0.03 per share, versus a net loss of $2.7 million, or $(0.02) per share, last year. Cash and cash equivalents were $34.6 million at September 30, with no outstanding revolver balance; net cash from operating activities was $6 million and free cash flow was $3.7 million. For Q4, management expects revenue of $37.5 million to $39.5 million and adjusted EBITDA of $8 million to $10 million. For full-year 2024, revenue is expected to be $150.5 million to $152.5 million and adjusted EBITDA $26.7 million to $28.7 million.

Zvika Netter said the quarter showed continued CTV momentum and margin expansion despite a tougher market, with CTV share of video impressions hitting 58% and core CTV revenue up 12%. He emphasized that political ad dollars crowded out brand spending, cross-sell was weaker than planned, and software-only adoption accelerated, all of which pressure near-term revenue but improve the product mix and margins. He was upbeat on strategic initiatives like Netflix, Nielsen, and Harmony, and said the company expects revenue growth to reaccelerate in 2025 as those efforts and a more normal ad environment take hold.

Anthony Callini highlighted a 9th straight quarter of adjusted EBITDA margin expansion and a 7th consecutive quarter of operating cash generation. He noted Q3 revenue of $38.3 million, adjusted EBITDA of $8.4 million, operating expenses excluding D&A and impairment of $27.9 million, pre-tax operating loss of $1.2 million, and free cash flow of $3.7 million; cash taxes were about $500,000 and cash on hand was $34.6 million. He said about a quarter of ad serving revenue is now on the software-only model, up about 30% since the start of the year, and that the board authorized a stock repurchase program of up to $20 million.

Analysts focused on how much political ad spending crowded out demand, whether any competitive or customer-behavior changes occurred, and what was changing in the salesforce to improve cross-sell. Management said there was no competitive change or churn issue; the main issue was volume displacement from political ads, especially in CPG and financial services, and a need to rework incentives and structure so the company sells a broader platform instead of mainly the ad server. They also said software-only adoption reflects customer demand for efficiency and control, while Nielsen monetization is still being worked out and not expected to contribute revenue in Q4.