Nexxen Q2 2024 IR Newsletter
Hello Everyone,
We are pleased to share the Q2 2024 edition of the Nexxen IR Newsletter.
In Q2, we enhanced momentum and adoption across our platform, benefiting from significantly improved sales execution following the completed integration of Amobee. Our rebranding, and work advancing our narrative, have driven significantly greater traction with industry leaders and a much better fundamental understanding of our platform’s holistic value proposition in the market. Through these efforts, Nexxen is increasingly being recognized as an important strategic partner that brings value in addressing the industry’s biggest challenges including maximizing the value of data and driving better results and returns for customers. As an important milestone, we also released new innovative data solutions, directly leading to new partnerships and growing revenue opportunities. This reflects a key step forward in our journey to realizing our vision of becoming the industry’s go-to strategic AdTech and data partner.
Video, CTV, and data have served as the foundational pillars of our business for several years, but data has recently ascended to the forefront of our strategy, as our data capabilities have greatly enhanced our ability to attract new partners and increased customer spending. In Q2, we furthered our data usability through the launch of Nexxen Data Platform. Nexxen Data Platform combines and expands upon our suite of data sources and proprietary applications including Nexxen Discovery, which drives improved insights and data enrichment, and our TV Intelligence solutions, which meaningfully enhance customers’ CTV targeting and measurement capabilities. Through Nexxen Data Platform, partners can now directly and securely onboard first party data and enrich it to expand audience reach and maximize returns through our comprehensive datasets, highlighted by robust first-party, third-party, contextual, and advanced TV data, as well as exclusive access to VIDAA’s global ACR data. Customers can then seamlessly activate this enriched data in campaigns across our platform, and measure impacts, all through the convenience of a single full stack platform, which is unique to Nexxen and serves as a massive differentiator. We also expanded the availability of our TV data offerings internationally in Q2 through the launch of our TV Intelligence solutions in Australia, increasing Nexxen’s ability to attract global CTV advertising customers given the scarcity of TV data in markets outside the U.S.
Within Nexxen Data Platform, we also launched our proprietary Unified Identity Graph solution which combines and deduplicates multiple identifiers into a merged graph, enabling increased scale and better targeting, while positioning Nexxen and its customers for Google’s evolving approach to third party cookies. While Google has recently pivoted from full third-party cookie deprecation to an “opt-in” approach, reducing risk across the industry, users that opt-out of cookies will still likely move to the privacy sandbox workflow, continuing to necessitate identity graph solutions like Nexxen’s to preserve audience visibility. We continue to embrace the industry’s need for alternative ID solutions and our agnostic identity strategy hasn’t changed in wake of Google’s decision. Nexxen Data Platform, and our unified identity graph, is already enabling customers to achieve better outcomes, and serving as a key catalyst that is increasingly driving new partners to our platform and unlocking data monetization opportunities.
Our strategic partnership with Stagwell, in which Stagwell selected Nexxen as its ID graph partner during Q2, was a direct byproduct of our data platform and unified identity graph release. The partnership enables Stagwell Marketing Cloud clients to utilize Nexxen Data Platform to onboard and enhance their first party data, improve targeting and planning efforts, and expand audience reach across formats and devices. These clients can then seamlessly activate this enriched data in campaigns across Nexxen’s platform to improve advertising returns. The relationship is off to a strong start, and we believe our solutions will not only enhance Stagwell’s customers’ results, but also drive increased revenue opportunities for both companies over time.
As we noted in our Q1 earnings call, in Q2 our multi-year strategic partnership with Alphonso (now LG Ad Solutions) and LG Electronics that we announced in late-February started to bear fruit and benefit Nexxen. The partnership enables Nexxen’s customers to access some of LG’s premium CTV inventory and gives Nexxen relationships with all the world’s major CTV OEMs.
Additionally, we strengthened our balance sheet by fully repaying our outstanding ~$100 million long-term debt in May 2024, leaving Nexxen long-term-debt free with $90 million undrawn on its revolving credit facility. In Q2, we also completed our $20 million Ordinary share repurchase program and launched a new $50 million program. Assuming we complete the ongoing program, we will have repurchased approximately $165 million in Ordinary shares from March 2022 through November 2024, underscoring our commitment to shareholders. Should shares remain at what the Board believes reflect discounted valuation levels at the end of the ongoing program, we will consider implementing an additional repurchase program.
Our successes in Q2 reinforce our confidence in our technology, strategy, and ability to realize our vision, while serving as a testament to the transformational milestones we’ve achieved over the last two years. Our strategy to connect our cutting-edge data platform to our suite of AdTech software solutions has created a unique value proposition for Nexxen that is resonating with partners across the industry and widening our competitive moat.
We hope you find this newsletter helpful. If you have any questions or feedback, or if you’re interested in connecting with the investor relations team or Company management, please reach out to ir@nexxen.com.
Please also feel free to sign up for email alerts regarding important news, filings or upcoming events on the bottom of our investor relations website homepage at https://investors.nexxen.com/.
Thank you!
Nexxen Investor Relations
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Introducing the Flexible, Unified Nexxen Data Platform
Nexxen Launches New $50 Million Ordinary Share Repurchase Program
Nexxen Fully Repays Outstanding ~$100 Million Long-Term Debt
Nexxen Empowers Australian Advertisers with Exclusive Access to VIDAA ACR Data
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Nexxen Connect: Q&A on Political Advertising with Ryanne Brown – Part 2
What Should You Know About Voice-to-Action Campaigns? A Q&A with Say It Now
Our Rendezvous at Cannes
Behind the Scenes of Nexxen’s Kubernetes Deployments: Crafting Scalable Systems
Nexxen DSP Enhancements
During Q2 2024 we continued to improve user experience and workflows for Nexxen DSP customers and released solutions tied to our Identity Resolution including:
- In-platform notifications when customers’ IO, package and line-item settings are incongruent and may impact campaign delivery.
- RampID-based measurement which enables DSP customers to determine which users performed specific actions after viewing an ad without having to rely on cookies. With this new launch, we can now leverage universal IDs (RampIDs) to measure performance campaigns which is a significant milestone in preparing our DSP for Google’s evolving approach to cookies.
Additionally, we rolled out political-specific solutions including:
- Targeting campaigns by U.S. Congressional District to reach relevant voters.
- Setting campaign end times at both the package and line-item level, which gives clients more control over delivery of their campaigns and the ability to manage flights with greater precision – down to the minute!
Driving Incremental Value for Customers Through Compelling Narratives, Data and TV Intelligence
- We rolled out our “Nexxen Data Platform” (NDP) narrative which 1) builds and expands upon our proprietary DMP and 2) provides an enriched ecosystem for brands to securely and effectively input data of their choosing to reach expanded audiences across multiple touchpoints and devices. With ongoing consumer privacy regulations, industry-wide signal loss, and the upcoming changes to Google’s cookie policies, data is increasingly essential to reach target consumers, drive incremental gains and maximize ROI.
- Launched our first-party data offering, “Audience Select,” which allows clients to safely and securely onboard their data assets into Nexxen Data Platform for activation.
Further Expanded our TV Intelligence Solution Internationally for Clients:
- Launched TV Viewership Audiences and cross-screen measurement in Australia, a major milestone for our proprietary TV Intelligence solution in the APAC region. This launch, once again, solidifies our commitment to delivering unparalleled TV targeting to solve for evolving industry needs.
Nexxen SSP and Nexxen Ad Server Enhancements
In Q2 2024, there were a variety of enhancements made to both the Nexxen SSP and Ad Server. Resources were focused on internal improvements around efficiency and optimization. In addition, the following features were released:
SSP: First-Party Data Ingestion
- Users can now upload and use first-party data in Nexxen SSP. This allows publishers to create customized targeting opportunities that will greatly increase the value and monetization of their data and inventory.
SSP: Customizable Deal IDs
- When creating a Publisher Deal, the user now has the option to customize the Deal ID on the configuration page. This gives publishers the flexibility of using their own preferred naming conventions when creating Deal IDs.
SSP: Display Tag Support
- Nexxen SSP now supports display tags, enabling publishers to create new revenue opportunities.
Ad Server: Read & Filter Creative Ad Server Per Account
- This enhancement provides an option to define a list of allowed 3P Creative Ad Servers to each Account as part of the Admin section in the UI. This enables publishers to use their choice of trusted Creative Ad Server to ensure the creatives will run properly.
Ad Server: Bring Your Own Bidder
- This feature allows publishers to bring a demand vendor endpoint of their own for easy integration. Now our Ad Server gives publishers complete control and increased monetization opportunities with flexible demand integration options including our turn-key oRTB connection or their own oRTB connection(s) or tag-based demand.
Ad Server: Performance Report by Content Attribute
- Users can view reporting based on performance attributes (Content ID, Content Title, Content Producer). This will allow them to report the effectiveness of a campaign to buyers.
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Campaigns & Elections - Unveiling the Power of Diversified Political Data: A New Frontier in Understanding the Electorate
Digiday - Brands are Rethinking their CTV Strategies as the Channel Matures
Media Post - Stagwell Brings Identity Tools to Its 'Marketing Cloud' Via Nexxen Partnership
Ad Exchanger - The Rise of Sell-Side Curation
Ad Week - Lack of Revenue Benefits and Access to Data Thwart Media's Green Progress
Forward Looking Statements
This IR Newsletter contains forward-looking statements, including forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities and Exchange Act of 1934, as amended. Forward-looking statements are identified by words such as “anticipates,” “believes,” “expects,” “intends,” “may,” “can,” “will,” “estimates,” and other similar expressions. However, these words are not the only way Nexxen, or any of its affiliates, identify forward-looking statements. All statements contained in this IR Newsletter that do not relate to matters of historical fact should be considered forward-looking statements including without limitation statements regarding anticipated financial results for H2 2024, full year 2024 and beyond; anticipated benefits of Nexxen’s strategic transactions and commercial partnerships; anticipated features and benefits of Nexxen’s products and service offerings; Nexxen’s positioning for accelerated growth and continued future growth in both the U.S. and international markets in 2024 and beyond; Nexxen’s medium- to long-term prospects; management’s belief that Nexxen is well-positioned to benefit from future industry growth trends and Company-specific catalysts; the Company’s expectations with respect to Video revenue; the potential negative impact of ongoing macroeconomic headwinds and uncertainty that have limited advertising activity and the anticipation that these challenges could continue to have an impact for the remainder of 2024 and beyond; the Company’s plans with respect to its cash reserves; its continued focus in 2024 on expanding its base of end-to-end customers, growing data licensing revenue and expanding its streaming, TV, and agency partnerships to drive growth and increased profitability; the expectation of launching its TV Intelligence solution in additional major international markets in 2024, enhancing and expanding the Company’s international CTV growth opportunity; the anticipated benefits from the Company’s strategic partnership with Stagwell; the anticipated benefits from the Company’s investment in VIDAA and its enhanced strategic relationship with Hisense; the anticipated benefits of the rebranding of the Tremor group to Nexxen, and the Company’s plans with respect thereto, as well as any other statements related to Nexxen’s future financial results and operating performance. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors that may cause Nexxen’s actual results, performance or achievements to be materially different from its expectations expressed or implied by the forward-looking statements, including, but not limited to, the following: negative global economic conditions; global conflicts and war, including the current terrorist attacks by Hamas, and the war and hostilities between Israel and Hamas and Israel and Hezbollah, and how those conditions may adversely impact Nexxen’s business, customers, and the markets in which Nexxen competes; changes in industry trends; the risk that Nexxen will not realize the anticipated benefits of its acquisition of Amobee and strategic investment in VIDAA; and, other negative developments in Nexxen’s business or unfavourable legislative or regulatory developments. Nexxen cautions you not to place undue reliance on these forward-looking statements. For a more detailed discussion of these factors, and other factors that could cause actual results to vary materially, interested parties should review the risk factors listed in the Company’s most recent Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission (www.sec.gov) on March 6, 2024. Any forward-looking statements made by Nexxen in this IR Newsletter speak only as of the date of this IR Newsletter, and Nexxen does not intend to update these forward-looking statements after the date of this IR Newsletter, except as required by law.
Nexxen, and the Nexxen logo are trademarks of Nexxen International Ltd. in the United States and other countries. All other trademarks are the property of their respective owners. The use of the word “partner” or “partnership” in this IR Newsletter does not mean a legal partner or legal partnership.