Financial Data and Key Metrics Changes - In Q1, the company generated contribution ex TAC of 71.8 million, reflecting a 10% increase compared to Q1 2024 [18] - Adjusted EBITDA was 0.16 in Q1 2025, compared to 26.4 million, reflecting 40% year-over-year growth, accounting for 37% of programmatic revenue, up from 29% in Q1 2024 [19] - Self-service contribution ex TAC grew by 32%, while PMP revenue rose by 12% year-over-year [20] - Contribution ex TAC from display decreased by 22%, largely due to declines in non-core, non-programmatic business lines [20] Market Data and Key Metrics Changes - The company observed continued growth in CTV, video, self-service products, and PMPs, with increases across education, finance, health, and automotive verticals [19] - The company is well diversified across various verticals, mitigating risks from any single sector [35] Company Strategy and Development Direction - The company emphasizes its unified end-to-end platform, which is gaining recognition for delivering simplicity, control, and efficiency [6] - The launch of NextAI is seen as a transformational step, enhancing the advertising journey through AI and machine learning capabilities [7][8] - The company aims to capitalize on the long-term growth opportunity in CTV as consumers shift to ad-supported streaming [11] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the advertising market due to economic uncertainty but is confident in achieving its full-year guidance [23][25] - The company is well positioned to support customers in challenging markets, focusing on efficiency and stronger ROI [25][26] - The ongoing Google AdTech antitrust case could potentially benefit the company by creating a more level playing field in the market [27] Other Important Information - The company repurchased approximately 3.7 million ordinary shares in Q1, representing an investment of about $32.9 million [21] - The company has no long-term debt and plans to continue allocating capital to share repurchases [22] Q&A Session Summary Question: Can you elaborate on the macro comments and specific verticals showing strength or weakness? - Management noted some softness in April but emphasized diversification across verticals, which helps mitigate risks [34] Question: Is the reiteration of guidance due to conservatism or related to AI investments? - Management indicated that the adjusted EBITDA beat was due to several factors, including top-line performance and better utilization, while maintaining caution regarding yearly guidance [36] Question: What feedback are you receiving from customers unfamiliar with Nexon? - Management highlighted improved messaging and the rising importance of data as key factors in attracting new customers [40] Question: Will there be incremental investments to take advantage of the Google outcome? - Management stated that no extra investment is needed, as growth can be achieved with current resources [44] Question: Can you provide more color on CTV segment growth versus platform improvements? - Management anticipates reaching around 40% CTV revenues out of programmatic revenue, while remaining cautious about external factors [49] Question: What partnerships are driving growth? - Management emphasized a diversified approach and did not rely on any single partnership for growth [70] Question: What percentage of DSP buys go through your SSP? - Currently, about 50% of DSP buys are facilitated through the SSP, with potential for growth in the future [74]
Nexxen International(NEXN) - 2025 Q1 - Earnings Call Transcript