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 and tech capabilities, rebrand, and strong CTV revenue up 52% year-over-year.

• Recognized as a data-first AdTech platform with advanced CTV and audience-targeting, winning new partnerships and expanding into new markets.

• End-to-end platform and exclusive CTV data assets provide competitive advantages, fueling growth and attracting major partners.

• GenAI and machine learning are being integrated to enhance usability, customer retention, and campaign optimization.

• Strategic partnerships and new product launches contributed to operational momentum, with 138 new advertiser customers and 61 new supply partners in Q3.

Financial highlights

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

• Adjusted EBITDA for Q3 was $31.6M, a 49% increase year-over-year, with margin rising to 37% from 28%.

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

• Non-IFRS diluted EPS was $0.14, up 48% year-over-year.

• Net cash position at September 30, 2024, was $166.5M with no long-term debt.

Outlook and guidance

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

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

• Expect continued strong performance in Q4 2024 and 2025, with ongoing investments in data, technology, and GenAI.

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