Nexxen International (NEXN) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 results with 12% year-over-year growth in Contribution ex-TAC, driven by enhanced data, technology, successful MobiZ integration, and a rebrand that improved industry standing.

• Positioned as a data-first AdTech platform with unique end-to-end capabilities, exclusive CTV data assets, and expanded partnerships, fueling growth and new market entry.

• Significant advancements in CTV, data, and AI/GenAI integration, with a focus on leveraging these strengths for future growth.

• Added 138 new actively spending first-time advertiser customers and 61 new supply partners in Q3, including premium streaming and audio clients.

• Strategic partnerships and new product launches contributed to operational momentum.

Financial highlights

• Q3 2024 Contribution ex-TAC reached $85.5 million, up 12% year-over-year; programmatic revenue was $81.6 million (+10% YoY); CTV revenue grew 52% to $29.7 million, representing 36% of programmatic revenue.

• Adjusted EBITDA was $31.6 million, a 49% increase year-over-year, with margin rising to 37% from 28%.

• Net cash from operating activities was $39.9 million, over three times higher than Q3 2023.

• Non-IFRS diluted EPS was $0.14, up from $0.09 in Q3 2023 (+48% YoY).

• Net income for Q3 2024 was $14.5 million, compared to $(1.2) million in Q3 2023.

Outlook and guidance

• Reaffirmed full-year 2024 guidance for Contribution ex-TAC of $340–$345 million and programmatic revenue at ~90% of total revenue.

• Raised full-year 2024 Adjusted EBITDA guidance to ~$107 million from ~$100 million.

• Expect continued strong performance in Q4, with ongoing investments in data, technology, and GenAI.

• Positioned for accelerated growth in 2025 through scaling partnerships and GenAI enhancements.

• Focus remains on expanding customer relationships, growing data licensing, and CTV revenue opportunities.