Out of many publicly-traded advertising technology (or ad-tech) companies, Nexxen International Ltd. (NASDAQ: NEXN ) is a name that could be considered under-the-radar. While shares in the Israel-based ad-tech firm are listed on theAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation ...

NEW YORK, March 13, 2025 (GLOBE NEWSWIRE) -- Nexxen, a global, unified advertising technology platform with deep expertise in data and advanced TV, today announced the appointment of four new executives to spearhead its business development, enterprise sales and client services initiatives across specific U.S. regions as well as globally. With expertise spanning data, streaming, omnichannel formats and advanced TV convergence, and senior relationships across brands, advertising holding companies, independen ...

NEW YORK, March 13, 2025 (GLOBE NEWSWIRE) -- Nexxen, a global, unified advertising technology platform with deep expertise in data and advanced TV, today announced the appointment of four new executives to spearhead its business development, enterprise sales and client services initiatives across specific U.S. regions as well as globally. With expertise spanning data, streaming, omnichannel formats and advanced TV convergence, and senior relationships across brands, advertising holding companies, independen ...

Financial Data and Key Metrics Changes - In Q4 2024, Nexxen International Ltd. generated a contribution ex-TAC of $105.2 million, marking a 16% year-over-year growth and an all-time quarterly record [31] - Adjusted EBITDA for Q4 was $44.3 million, reflecting a 38% increase from Q4 2023, with an adjusted EBITDA margin of 42%, up from 35% in Q4 2023 [36][37] - Contribution ex-TAC per active customer increased to approximately $526,000, representing a 69% growth from 2023 [37] Business Line Data and Key Metrics Changes - Programmatic revenue reached $98.7 million in Q4, a 15% increase from Q4 2023, also an all-time quarterly record [32] - CTV revenue was $37 million in Q4, reflecting an 86% growth year-over-year and accounting for 38% of programmatic revenue, up from 23% in Q4 2023 [33] - Contribution ex-TAC from data products grew by 102% year-over-year in Q4 [36] Market Data and Key Metrics Changes - The U.S. election cycle contributed approximately $6 million in political contribution ex-TAC in Q4 2024 and about $10 million for the full year [36] - The company added 112 new actively spending first-time advertisers and 73 new supply partners in Q4 [22][23] Company Strategy and Development Direction - The company is focused on enhancing its platform through AI capabilities and generative AI innovations, aiming to improve user experience and targeting precision [14][25] - Nexxen International Ltd. is positioned to capture market share in the CTV space, leveraging its end-to-end platform and strong relationships with publishers and advertisers [20][21] - The company plans to deepen its AI capabilities and expand its CTV, omnichannel, and data licensing revenue opportunities in 2025 [45][46] Management's Comments on Operating Environment and Future Outlook - Management noted a normalized environment post-election cycle and expressed confidence in executing their strategy for 2025 [58][59] - The company anticipates generating approximately $380 million in contribution ex-TAC for full-year 2025, with programmatic revenue expected to account for about 90% of total revenue [41] Other Important Information - The company repurchased approximately 4.5 million ordinary shares in Q4, reflecting an investment of $20.1 million [38] - Nexxen International Ltd. has transitioned to a single U.S. ordinary share listing on NASDAQ, which is expected to enhance its long-term capital appreciation potential [24] Q&A Session Summary Question: Can you talk about the go-to-market improvements and how you're looking to build on some of this momentum into 2025? - Management highlighted the importance of brand improvement and data integration in enhancing market understanding and response [54][56] Question: What are you seeing in Q1 so far and how do you think about the environment in your full-year guidance? - Management indicated a stable environment and continued execution of their strategy without unexpected changes affecting 2025 results [58][59] Question: Can you elaborate on the data product growth and its future trajectory? - Management confirmed significant growth in data products, particularly ACR data, and emphasized the preference to integrate data with media services for better margins [62][67] Question: What is the guidance for programmatic revenue and what constitutes the remaining 10%? - Management clarified that 90% of revenue will come from the end-to-end ecosystem, with the remaining 10% related to legacy performance activities [70] Question: How is the company positioned to grow its CTV business? - Management noted that the company has unique demand and is able to grow its publisher base by offering additional value beyond traditional SSP relationships [80] Question: Can you discuss the opportunity to move down market into the SMB performance territory with generative AI? - Management acknowledged that generative AI will simplify platform usage, enabling the company to reach smaller advertisers more effectively [88][90] Question: What are the key levers for growth in data licensing revenue in 2025? - Management identified winning new business and enhancing engagement with existing partners as primary growth strategies [93][95]

Revenue Concentration and Customer Dependency - For the year ended December 31, 2024, one buyer represented 11.5% of the revenue, compared to no individual buyer accounting for more than 10% in 2023[59]. - As of December 31, 2024, three buyers accounted for 19.1%, 12.1%, and 11.2% of trade receivables, indicating increased concentration in revenue sources[59]. - The company relies on a limited number of large advertising customers, which may account for a significant portion of revenue, highlighting potential risks in customer dependency[58]. - The company has no minimum commitments from advertisers, agencies, or DSPs, leading to fluctuating demand and potential revenue instability[62]. Competition and Market Dynamics - The company faces intense competition and must continuously innovate its platform, including investments in machine learning and generative artificial intelligence[65]. - The advertising technology market is dynamic, and the company's growth is essential to avoid a decline in value[71]. - The company faces significant competition and potential pricing pressure due to industry consolidation, which may affect its ability to attract and retain key customers[72]. - The company must adapt to changes in technology and consumer preferences to retain advertisers and publishers, or risk declining revenue[65]. Regulatory and Compliance Risks - Regulatory scrutiny and evolving standards in the AdTech industry could limit the company's ability to collect and use data, impacting advertising effectiveness[68]. - The company is subject to evolving regulations regarding data privacy and consumer protection, which may increase compliance costs and impact advertising revenue[136]. - The California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA) impose additional regulations that may require modifications to data collection practices and increase potential liabilities[138]. - Under GDPR, fines for breaches can reach up to €20 million or 4% of total global annual turnover, which could significantly impact the company's financials[141]. Technology and Data Management - The company’s ability to deliver targeted advertising campaigns depends on acquiring effective data sets, which may be restricted by third-party providers[66]. - Any limitations on the use of tracking technologies, such as cookies and mobile device IDs, could diminish the platform's effectiveness and harm revenue[69]. - The company is integrating generative AI technologies into its operations, which presents both significant potential benefits and risks related to regulatory compliance and data privacy[94][96]. - The Nexxen Data Platform enables advertisers and publishers to optimize advertising campaigns using data from various sources[236]. Financial Performance and Growth - Total comprehensive income for 2024 was $35.4 million, a 295.3% increase from a loss of $18.1 million in 2023[199]. - Adjusted EBITDA for 2024 increased to $114.6 million, a 37.7% year-over-year increase from $83.2 million in 2023[199]. - Video revenue increased to $232.4 million in 2024 from $207.5 million in 2023, representing a growth of 12.0%[198]. - CTV revenue rose to $113.8 million in 2024 from $85.5 million in 2023, marking a growth of 33.1%[198]. Operational Challenges - The company must scale its platform infrastructure to support anticipated growth and transaction volume, or risk limiting its revenue potential[78]. - Cybersecurity risks pose a threat to operational systems and could disrupt business continuity, impacting financial results[82]. - The company is dependent on its sales and support teams to acquire new customers and increase usage of its platform, with challenges in recruiting and training skilled personnel[103]. - Long sales cycles can lead to significant time and investment before generating revenue, making it difficult to project new advertiser or publisher acquisitions[124]. International Operations and Market Expansion - The company operates in 193 countries, exposing it to various risks including political unrest, natural disasters, and cyberattacks, which could adversely affect its financial results[91]. - The anticipated international growth is expected to increase the number of transactions in various foreign currencies, despite existing hedging programs[182]. - The company aims to expand its international footprint and U.S. market share by acquiring new publishers and advertisers globally[231]. Shareholder and Financial Management - The company repurchased 18,954,608 Shares, or 24.5% of outstanding shares, from March 1, 2022, to December 31, 2024, for a total investment of £125.9 million or $157.3 million[172]. - A share repurchase program of $20.0 million was announced on December 18, 2023, and completed on April 24, 2024[173]. - The current outstanding share repurchase program of $50.0 million, announced on October 17, 2024, commenced on November 19, 2024, and will end by May 19, 2025, or upon completion[173]. - The company may not guarantee the effectiveness of its share repurchase plan in enhancing long-term shareholder value[176].

Exhibit 99.1 Nexxen Reports Fourth Quarter and Full Year 2024 Financial Results Generated all-time quarterly Contribution ex-TAC, programmatic revenue and CTV revenue records in Q4 2024, achieving 16%, 15%, and 86% year-over-year growth, respectively Attained 38% year-over-year Adjusted EBITDA growth in Q4 2024, while expanding Adjusted EBITDA Margin as a percentage of Contribution ex-TAC to 42% from 35% Simplified the Company's stock exchange and trading structure in Q1 2025, streamlining to a single U.S. ...

Core Insights - Nexxen International Ltd. achieved all-time quarterly records in Contribution ex-TAC, programmatic revenue, and CTV revenue in Q4 2024, with year-over-year growth rates of 16%, 15%, and 86% respectively [1][5] - The company reported a 38% year-over-year growth in Adjusted EBITDA for Q4 2024, increasing the Adjusted EBITDA Margin on Contribution ex-TAC to 42% from 35% [1][5] - Nexxen's Board of Directors approved a new $50 million Ordinary Share repurchase program following the completion of the ongoing program [1][11] Q4 2024 Financial Highlights - Contribution ex-TAC reached $105.2 million, a 16% increase from Q4 2023 [5][12] - Programmatic revenue was $98.7 million, reflecting a 15% year-over-year growth [5][12] - CTV revenue hit $37.0 million, marking an 86% increase year-over-year [5][12] - Adjusted EBITDA for Q4 2024 was $44.3 million, up 38% from the previous year [5][12] - The company had cash and cash equivalents of $187.1 million as of December 31, 2024, with no long-term debt [5][12] Full Year 2024 Financial Highlights - Total revenue for 2024 was $365.5 million, a 10% increase from 2023 [5][12] - Annual Contribution ex-TAC was $343.5 million, up 9% year-over-year [5][12] - Annual programmatic revenue reached $324.5 million, also a 9% increase [5][12] - CTV revenue for the full year was $113.8 million, reflecting a 33% increase from 2023 [5][12] - Adjusted EBITDA for the full year was $114.6 million, a 38% increase compared to 2023 [5][12] Operational Highlights - The company simplified its trading structure by transitioning to a single U.S. Ordinary Share listing on Nasdaq [1][9] - Nexxen's DSP added 112 new actively spending first-time advertiser customers in Q4 2024 [9][6] - The company onboarded 73 new supply partners across various verticals in Q4 2024 [9][6] - Nexxen launched a Deal Marketplace within its DSP to enhance campaign planning and execution [9][6] Financial Guidance for 2025 - Nexxen anticipates Contribution ex-TAC of approximately $380 million for the full year 2025 [9] - Programmatic revenue is expected to represent about 90% of total revenue in 2025 [9] - Adjusted EBITDA is projected to be around $125 million for 2025 [9] - The company plans to increase investments in technology, data, and Generative AI in 2025 [9]

Core Viewpoint - Nexxen International Ltd. is set to release its financial results for the year ending December 31, 2024, on March 5, 2025, before the U.S. market opens [1] Company Overview - Nexxen is a global advertising technology platform specializing in data and advanced TV, providing a flexible and unified technology stack that includes a demand-side platform (DSP) and supply-side platform (SSP) [4] - The company is headquartered in Israel and has offices across the United States, Canada, Europe, and Asia-Pacific, and is publicly traded on Nasdaq under the ticker NEXN [5] Financial Results Discussion - A webcast and conference call will be held on March 5, 2025, at 6:00 AM PT / 9:00 AM ET / 2:00 PM GMT to discuss the financial results and outlook [2][6]

Core Points - Nexxen International Ltd. has completed its transition to a full U.S. Ordinary Share listing on Nasdaq, effective February 18, 2025 [1] - The company executed a reverse split of its Ordinary Shares, consolidating every two shares into one New Ordinary Share to facilitate a one-to-one ADR exchange [2] - Nexxen's AIM-listed Depository Interests were cancelled, and trading of New Ordinary Shares on Nasdaq commenced under the ticker "NEXN" [3] - The company has a $50 million Ordinary Share repurchase program that will continue on Nasdaq until May 19, 2025, or until completion [4] - The CEO of Nexxen believes that the new trading structure will enhance the company's ability to attract U.S. investors and improve its market presence [5] Company Overview - Nexxen is a global advertising technology platform specializing in data and advanced TV, offering a unified technology stack that includes a demand-side platform (DSP) and supply-side platform (SSP) [6] - The company is headquartered in Israel and has offices across the United States, Canada, Europe, and Asia-Pacific [7]

Core Insights - Nexxen has enhanced its live sports offerings and formed key partnerships with publishers to capitalize on the growing demand for live sports advertising [1][2] - The company reported a significant 315% increase in spending on live sports deals through StackAdapt campaigns in 2024, indicating strong market engagement [2][3] Company Developments - Nexxen's live sports packages allow advertisers to reach highly engaged audiences across both linear and streaming channels, addressing the fragmented nature of live sports viewing [1][4] - The partnerships with premium publishers and demand-side platforms, including FOX Sports and FanDuel Sports Network, have enabled Nexxen to boost campaign engagement and drive advertising spend [2][3] Market Position - The collaboration with StackAdapt has demonstrated the value of strategic partnerships in enhancing campaign outcomes and maximizing return on investment for advertisers [3] - FanDuel Sports Network has reported increased revenue due to its partnership with Nexxen, highlighting the effectiveness of Nexxen's technology in streamlining monetization efforts [4] Technology and Capabilities - Nexxen's technology stack includes both demand-side and supply-side platforms, with a focus on data and advanced TV capabilities, allowing for comprehensive solutions in advertising [5] - The company emphasizes its ability to provide flexible and unified technology that supports various advertising goals, from discovery to optimization [5]