Innovid (CTV) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 6% year-over-year to $38.3 million, driven by CTV ad serving and personalization, with CTV impressions up 13% to 58% of total video impressions.

• Adjusted EBITDA rose 29% to $8.4 million, with margin expanding to 22% from 18% last year, marking the ninth consecutive quarter of margin expansion.

• Net income improved to $4.7 million from a $2.7 million loss in Q3 2023, reflecting improved operating leverage and a significant tax benefit.

• Strategic partnerships expanded, including new deals with Netflix for impression verification, ongoing collaboration with Nielsen, and the Harmony initiative.

• Announced a $20 million stock repurchase program, reflecting confidence in long-term value.

Financial highlights

• Q3 2024 revenue: $38.3 million, up 6% year-over-year; Adjusted EBITDA: $8.4 million, 22% margin; net income: $4.7 million (EPS: $0.03).

• Free cash flow for Q3 2024 was $3.7 million; cash and equivalents at quarter-end were $34.6 million.

• No debt outstanding under the $50 million revolving credit facility as of September 30, 2024.

• Net working capital at September 30, 2024, was $59.7 million.

• No goodwill or long-lived asset impairments recorded in 2024.

Outlook and guidance

• Q4 2024 revenue expected between $37.5–$39.5 million; Adjusted EBITDA guidance: $8–$10 million.

• Full-year 2024 revenue guidance: $150.5–$152.5 million (8% growth at midpoint); Adjusted EBITDA: $26.7–$28.7 million.

• Long-term targets reaffirmed: 20%+ annual revenue growth, 30%+ Adjusted EBITDA margin, and >60% free cash flow realization.

• 2025 expected to see normalized growth as political ad headwinds subside and cross-sale initiatives take effect.

• Management expects continued revenue growth driven by CTV ad spend and cross-selling of measurement solutions.