Nexxen International (NEXN) Q4 2021 earnings summary

Executive summary

• Record FY2021 performance: Contribution ex-TAC $302.0m, up 64% organically; Adjusted EBITDA $161.2m, up 166% organically.

• End-to-end video, CTV and data platform adoption, self-service growth and stronger CTV activity supported results; year-end net cash was $367.7m.

Financial highlights

• Revenue $341.9m, up 61.4% YoY from $211.9m; roughly $105m of the increase came from Programmatic activity, with the balance from Performance.

• Net income $73.2m vs. $2.1m; basic EPS $0.51 vs. $0.02 and diluted EPS $0.48 vs. $0.02.

• Gross profit margin was 79%, up from 72%; cost of revenue rose 19.8% to $71.6m, below revenue growth.

• Adjusted EBITDA was $161.2m vs. $60.5m; Contribution ex-TAC was $302.0m vs. $184.3m.

• Operating cash flow was $170.1m vs. $35.2m; cash and cash equivalents were $367.7m at year-end vs. $97.5m.

Outlook and guidance

• Growth priorities remain CTV, video, Programmatic activity, PMP and self-service, alongside technology investment, international expansion and potential M&A.

• Spearad is expected to make its main contribution from H2 2022 onward; VIDAA ACR data access was expected in Q2 2022, with monetization in key international markets from H2.

• VIDAA distribution was expected to expand from 20m smart TVs to more than 40m in coming years.

• A $75m share buyback was approved after year-end, with the stated aim of returning value to shareholders.