TREMOR INTERNATIONAL LIMITED ((NEXN)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Tremor International Limited’s recent earnings call revealed a mixed sentiment, highlighting both achievements and challenges. The company celebrated record programmatic revenue and strategic partnerships, yet faced hurdles with certain revenue streams and slower-than-expected growth in Connected TV (CTV).
Record Contribution ex-TAC and Programmatic Revenue
Nexxen, a division of Tremor International, achieved a Q2 record with a contribution ex-TAC of $87.8 million and programmatic revenue reaching $85 million, marking an 8% increase compared to Q2 2024. This milestone underscores the company’s robust performance in the programmatic advertising sector.
Expansion of Strategic Partnership with VIDAA
The company renewed and expanded its strategic partnership with VIDAA, securing exclusive ad monetization rights on VIDAA Media in North America through at least the end of 2029. This move is expected to strengthen Nexxen’s market position and drive future growth.
Introduction of nexAI
Nexxen launched nexAI, a suite of AI-powered tools that has already been adopted by over 100 users. This innovation is aimed at enhancing productivity and improving outcomes, reflecting the company’s commitment to leveraging technology for business advancement.
Strong Adjusted EBITDA Performance
Nexxen exceeded Wall Street’s expectations with an adjusted EBITDA of $29.9 million in Q2, a 12% increase from the previous year. This performance highlights the company’s operational efficiency and financial health.
Growth in Data Products
The contribution ex-TAC from data products saw a significant 76% year-over-year increase, showcasing the growing importance of data-driven solutions in Nexxen’s revenue mix.
Decline in Non-Programmatic Business
Despite overall growth, Nexxen experienced a $1.7 million year-over-year decline in contribution ex-TAC from its non-programmatic business line, indicating challenges in this segment.
Slow Growth in CTV Revenue
CTV revenue grew by only 1% year-over-year to $28.4 million, falling short of expectations despite the strategic partnership with VIDAA, suggesting potential areas for improvement.
Decline in Mobile and Display Revenue
The company reported a 9% decline in mobile revenue, with contribution ex-TAC from PMPs and display declining by 6% and 4% year-over-year, respectively, highlighting ongoing challenges in these areas.
Forward-Looking Guidance
Looking ahead, Nexxen reaffirmed its full-year guidance, projecting a contribution ex-TAC of approximately $380 million and adjusted EBITDA of around $125 million. The company anticipates programmatic revenue to constitute about 90% of its full-year 2025 revenue and expects growth in both CTV and data licensing revenue, despite macroeconomic uncertainties.
In summary, Tremor International’s earnings call reflected a balanced outlook with notable achievements in programmatic revenue and strategic partnerships, alongside challenges in certain revenue streams. The company’s forward-looking guidance remains optimistic, with expectations of continued growth in key areas.