TREMOR INTERNATIONAL LIMITED ((NEXN)) has held its Q3 earnings call. Read on for the main highlights of the call.
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During the recent earnings call, TREMOR INTERNATIONAL LIMITED expressed a generally positive sentiment, highlighting significant achievements in programmatic revenue growth and record contribution ex-TAC. The company attributed these successes to strategic partnerships and the expansion of data products. However, challenges such as declining CTV revenue, competitive CPMs, and reduced spending in non-core business lines have led to a lowered full-year guidance. Despite these hurdles, the company remains optimistic about its long-term growth potential through continued strategic investments and partnerships.
Strong Programmatic Revenue Growth
Nexxen International Ltd. reported a 10% year-over-year increase in programmatic revenue, or 15% when excluding political impacts. This growth was driven by the company’s omnichannel strength and the rising adoption of enterprise DSPs, showcasing the company’s robust performance in this segment.
Record Contribution ex-TAC
The company achieved a record contribution ex-TAC of $92.6 million in Q3, marking an 8% increase year-over-year, or 14% excluding political factors. This milestone underscores the company’s ability to generate substantial value from its operations.
Significant Data Product Growth
Contribution ex-TAC from data products surged by 164% year-over-year in Q3, reflecting a strong market demand for data-driven solutions. This growth highlights the company’s successful expansion in this area and its potential for future revenue streams.
Renewed and Expanded Partnership with Vida
Nexxen International Ltd. renewed and expanded its partnership with Vida through 2029, securing exclusive global access to ACR data and third-party ad monetization exclusivity in North America. This strategic move is expected to enhance the company’s competitive edge and revenue potential.
CTV Revenue Decline
The company experienced a 17% year-over-year decline in CTV revenue in Q3, or 13% excluding political impacts. This decrease was attributed to reduced activity from select third-party deals and more competitive CTV CPMs, presenting a challenge for the company.
Lowered Full-Year Guidance
Due to various short-term challenges, Nexxen International Ltd. lowered its full-year 2025 guidance. The company now anticipates contribution ex-TAC between $350 million and $360 million, with adjusted EBITDA ranging from $113 million to $117 million. This revision reflects the company’s cautious approach amidst current market conditions.
Non-Programmatic Business Decline
The non-programmatic business line saw a decline in contribution ex-TAC by roughly $1 million year-over-year, indicating continued weakness in non-core business areas. This decline emphasizes the need for strategic adjustments in these segments.
Forward-Looking Guidance
Looking ahead, Nexxen International Ltd. plans to focus on strategic partnerships, DSP innovations, and expanding its CTV capabilities to drive double-digit growth by 2026. The renewed partnership with Vida is expected to bolster contribution ex-TAC through exclusive ACR data and third-party ad monetization opportunities, enhancing the company’s competitive positioning and long-term growth potential.
In summary, TREMOR INTERNATIONAL LIMITED’s earnings call conveyed a mix of optimism and caution. While the company celebrates significant achievements in programmatic revenue and data product growth, it also faces challenges in CTV revenue and non-core business lines. The lowered full-year guidance reflects these short-term hurdles, yet the company’s strategic focus on partnerships and innovations promises a positive outlook for future growth.