Innovid (CTV) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 10% year-over-year to $38 million, with adjusted EBITDA up 29% to $5.9 million and margin expanding to 15.5%; net loss narrowed to $10.5 million from $19 million in Q2 2023.

• CTV impressions increased 21% year-over-year, now representing 54% of total video impressions; mobile video impressions rose 13% and desktop impressions declined 9%.

• Launched the Harmony Initiative, including Harmony Direct and Harmony Frequency, to address CTV advertising challenges, with new partnerships such as Yahoo DSP and Nielsen.

• Secured new and expanded client relationships with major brands and publishers, including Amazon, Spectrum, WNBA, and Eli Lilly; joined the Russell 3000® Index.

• Over 50% of the top 200 TV advertisers use the platform, with strong client retention and an average tenure of over 7 years among top 100 accounts.

Financial highlights

• Q2 2024 revenue: $38 million, up 10% year-over-year; adjusted EBITDA margin improved to 15.5% from 13% last year; net loss narrowed to $10.5 million from $19 million.

• Free cash flow usage improved 38% year-over-year; cash and equivalents at June 30, 2024: $30.6 million, up 31% from last year.

• Operating cash flow positive at $5.9 million for the six months ended June 30, 2024.

• CTV revenue from ad serving and personalization grew 21% year-over-year for the second consecutive quarter.

• No goodwill impairment in 2024; $14.5 million impairment in Q2 2023.

Outlook and guidance

• Reaffirmed full-year 2024 revenue guidance of $156–$163 million (11–16% growth) and adjusted EBITDA of $24–$29 million.

• Q3 2024 revenue expected between $40–$42 million (10–16% year-over-year growth), with adjusted EBITDA of $6.5–$8.5 million.

• Long-term targets include 20%+ annual revenue growth and 30%+ adjusted EBITDA margin.

• Guidance reflects continued macro uncertainty, including the impact of the U.S. election cycle and seasonality.

• Existing cash, anticipated operating cash flow, and available credit expected to meet needs for at least the next 12 months.