- Delivered 45% year-over-year revenue growth to $33.1 million on an as-reported basis
- CTV accounted for 50% of the volume of all video impressions
served
- TV measurement accounted for 22% of all revenue
- Launched InnovidXP – the first cross-platform TV measurement
solution powered by ad serving data and creative
personalization
NEW
YORK, Aug. 10, 2022 /PRNewswire/ -- Innovid
Corp. (NYSE:CTV) (the "Company"), an independent advertising
platform for delivery, personalization and measurement of converged
TV across linear, connected TV (CTV) and digital, today announced
financial results for the second quarter ended June 30, 2022.
"Innovid delivered a strong second quarter with 45%
year-over-year revenue growth, as CTV revenue continued to
grow. We achieved a critical milestone in our mission to
fulfill the future of TV measurement with the launch of our
converged TV measurement solution, InnovidXP, following the
strategic acquisition of TVSquared" said Zvika Netter, Co-Founder and CEO. "Our joint
teams and solutions have been realigned to introduce a unified
first-to-market global cross-platform measurement solution,
directly integrated with ad serving data. Measurement revenue grew
significantly this past quarter and we expect InnovidXP to be a
driving force for our growth story moving forward."
Second Quarter Financial
Highlights:
(All comparisons are to the second quarter of 2021)
• Revenue grew to $33.1 million for the combined business,
reflecting an increase of 45% on an as-reported basis.
° TVSquared business grew 31%
year-over-year and contributed $6.8
million in revenue, or 21% of revenue.
° CTV accounted for 47% of revenue,
excluding TVSquared, up from 45% of revenue, demonstrating 20%
year-over-year growth.
• Net profit was $4.3
million or $0.03 per
share.
• Adjusted EBITDA* was negative $(1.7) million, representing (5)% adjusted EBITDA
margin*.
Second Quarter Business
Highlights:
• CTV Volume Growth: CTV accounted for 50%
of the volume of all video impressions served, up from 46% of
volume in the second quarter of 2021, demonstrating 23%
year-over-year growth.
• Cross-Platform Measurement Expansion:
Launched InnovidXP, the first unified cross-platform solution
directly integrated with ad serving data and creative
personalization, to solve cross-platform TV measurement
globally.
° New Business: Measurement
accounted for 22% of revenue in the second quarter supported by new
clients including several leading multinational and national
restaurant chains, an international design platform, and a
worldwide employment platform.
° Sell-Side Momentum: Expanded
multi-year measurement partnership with Tubi, Fox's streaming
service, demonstrating the power of InnovidXP for always-on
incremental reach measurement across both Fox and Tubi.
• New Client Wins: Closed multiple new clients
across ad serving and personalization solutions including a
multinational e-commerce company, a multinational travel company,
and one of the largest U.S. health insurance providers.
• International Market Adoption: Increased
international revenue by 51% year-over-year on an as-reported
basis, through expanded measurement coverage outside the U.S.
• Expanded Measurement Partnerships: Grew
measurement footprint through strategic partnerships spanning
programmatic, political, and international TV advertising.
° Programmatic CTV: Named a
certified partner in Magnite's expanded measurement and attribution
program, bringing currency optionality to programmatic CTV.
° Political TV
Advertising: Partnered with leading ad intelligence data
provider, AdImpact, to supply a unified view and real-time insights
on reach, frequency, incremental reach, and outcomes, across linear
and CTV.
° International Audience Measurement:
Integrated within FreeWheel by Comcast's newly launched
international AudienceXpress offering, allowing advertisers in
Europe to buy premium TV
advertising on an audience basis across all platforms.
Third Quarter 2022
Outlook
Innovid is providing the following financial guidance for the
third quarter of 2022:
• Revenue is expected to be in the range of
$33 million to $35 million, reflecting 41% to 49% year-over-year
growth on an as-reported basis, and 12% to 19% year-over-year
growth on a pro forma basis when including TVSquared revenue.
• Adjusted EBITDA* is expected to be in the
range of negative $(2) million to
break even.
Full Year 2022 Outlook
Innovid is providing the following updated financial guidance
for the full year of 2022:
• Revenue is expected to be in the range of
$127 million to $132 million including TVSquared, a
year-over-year increase of approximately 41% to 46% growth on an
as-reported basis, and 17% to 22% year-over-year growth on a pro
forma basis when including TVSquared revenue.
• Total annual adjusted EBITDA* when accounting
for the TVSquared acquisition, is expected to be negative
$(6.0) million or higher.
Conference Call
Innovid will host a conference call and live webcast to discuss
its second quarter 2022 financial results and business highlights
today at 8:00 a.m. Eastern
Time. Speakers will include Zvika Netter, Co-founder and Chief Executive
Officer, Tanya Andreev-Kaspin, Chief
Financial Officer, and Tal Chalozin, Co-founder and Chief
Technology Officer. To access the conference call, dial
877-407-3211 for the U.S. or Canada, or +1-201-389-0862 for international
callers. The webcast will be available live on the Investors
section of the Company's website at https://investors.innovid.com/.
Additionally, an archived webcast of the conference call will be
made available on the Innovid website following the call.
*This is a non-GAAP measure. Refer to "Non-GAAP Measures"
section below for additional information.
Non-GAAP Measures
Innovid prepares unaudited condensed consolidated financial
statements in accordance with U.S. generally accepted accounting
principles ("GAAP"). Innovid also discloses and discusses non-GAAP
financial measures such as Adjusted EBITDA and Adjusted EBITDA
margin. Innovid believes that these measures are relevant and
provide useful information to investors by providing a baseline for
evaluation and comparing its operating performance against that of
other companies in Innovid's industry. Adjusted EBITDA is defined
as net income (loss) attributable to Innovid, excluding (1)
depreciation and amortization, (2) stock-based compensation, (3)
finance expense, net, (4) transaction related expenses, (5)
acquisition related expenses, (6) taxes on income and (7) other
one-time items. We calculate Adjusted EBITDA Margin as Adjusted
EBITDA divided by total revenue.
The non-GAAP financial measures that Innovid uses may not be
comparable to similarly titled measures reported by other
companies. Also, in the future, Innovid may disclose different
non-GAAP financial measures in order to help its investors
meaningfully evaluate and compare its results of operations to its
previously reported results of operations or to those of other
companies in Innovid's industry. Non-GAAP financial measures should
be considered in addition to, and not as a substitute for, measures
of financial performance prepared in accordance with GAAP.
Innovid uses Adjusted EBITDA and Adjusted EBITDA margin as
measures of operational efficiency to understand and evaluate its
core business operations. Innovid believes these non-GAAP financial
measures are useful to investors for period to period comparisons
of its core business and for understanding and evaluating trends in
its operating results on a consistent basis by excluding items that
are not viewed as indicative of its core operating performance.
Non-GAAP financial measures have limitations as analytical tools
and should not be considered in isolation or as substitutes for an
analysis of our results as reported under GAAP.
Innovid has provided a reconciliation of Adjusted EBITDA to net
(loss) income and Adjusted EBITDA Margin to net (loss) income
margin, the most directly comparable GAAP measures, for the
historical period in the appendix hereto but is not able to provide
a reconciliation of the projected non-GAAP measures for the second
quarter of 2022 or the full-year 2022, without unreasonable effort,
due to the unknown effect, timing and potential significance of:
taxes on income in multiple jurisdictions, finance expenses
including valuations, and purchase price allocation yet to be
finalized. These items have in the past, and may in the future,
significantly affect GAAP results in a particular period.
Forward-Looking
Statements
This press release includes "forward-looking statements" within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1996. The Company's actual
results may differ from its expectations, estimates and projections
and consequently, you should not rely on these forward-looking
statements as predictions of future events. Words such as "expect,"
"estimate," "project," "budget," "forecast," "anticipate,"
"intend," "plan," "may," "will," "could," "should," "believes,"
"predicts," "potential," "continue," "aim," and similar expressions
are intended to identify such forward-looking statements. These
forward-looking statements include, without limitation, the
Company's expectations regarding its future financial results and
expected growth. These forward-looking statements involve
significant risks and uncertainties that could cause the actual
results to differ materially from the expected results, including
Innovid's ability to raise financing in the future, success in
retaining or recruiting officers, key employees or directors,
changes in applicable laws or regulations, Innovid's ability to
maintain and expand relationships with advertisers, decreases
and/or changes in CTV audience viewership behavior, Innovid's
ability to make the right investment decisions and to innovate and
develop new solutions, the accuracy of Innovid's estimates of
market opportunity, forecasts of market growth and projections
of future financial performance, the extent of investment required
in Innovid's sales and marketing efforts, Innovid's ability to
effectively manage its growth, the impact of the Covid-19 pandemic,
the risk of continued inflation and other macroeconomic events,
acquisition related risks, and other important factors discussed
under the caption "Risk Factors" in Innovid's Annual Report on Form
10-K filed with the SEC on March 18,
2022, as such factors may be updated from time to time in
its other filings with the SEC, accessible on the SEC's website at
www.sec.gov and the Investors Relations section of Innovid's
website at investors.innovid.com. Most of these factors are outside
the Company's control and are difficult to predict. The Company
cautions not to place undue reliance upon any forward-looking
statements, including projections, which speak only as of the date
made. The Company does not undertake or accept any obligation to
release publicly any updates or revisions to any forward-looking
statements to reflect any change in its expectations or any change
in events, conditions or circumstances on which any such statement
is based.
About Innovid
Innovid (NYSE:CTV) powers advertising delivery, personalization,
measurement and outcomes across linear, CTV and digital for some of
the world's largest brands. Through a global infrastructure that
enables cross-platform ad serving, data-driven creative, and
currency-grade measurement, Innovid offers its clients always-on
intelligence to optimize advertising investment across channels,
platforms, screens, and devices. Innovid is an independent platform
that leads the market in converged TV innovation, through
proprietary technology and exclusive partnerships designed to
reimagine TV advertising. Headquartered in New York City, Innovid serves a global client
base through offices across the Americas, Europe, and Asia
Pacific. To learn more, visit innovid.com or follow us on
LinkedIn or Twitter.
Investor Relations:
Brinlea Johnson
ir@innovid.com
Media:
Chris Harihar
chris@crenshawcomm.com
|
INNOVID, CORP. AND
ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except stock and per stock data)
|
|
|
June 30,
2022
|
|
December 31,
2021
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
$
44,024
|
|
$
156,696
|
|
Trade receivables, net
(allowance for doubtful accounts of $69 and $81 at June 30, 2022
and December 31 2021, respectively)
|
43,553
|
|
35,422
|
|
Prepaid expenses and
other current assets
|
5,247
|
|
3,131
|
|
Total current
assets
|
92,824
|
|
195,249
|
|
NON-CURRENT
ASSETS:
|
|
|
|
|
Long-term
deposit
|
312
|
|
310
|
|
Long-term restricted
deposits
|
411
|
|
462
|
|
Property and
equipment, net
|
8,862
|
|
4,840
|
|
Goodwill
|
114,608
|
|
4,555
|
|
Intangible assets,
net
|
35,135
|
|
—
|
|
Operating lease right
of use asset
|
3,069
|
|
—
|
|
Other non-current
assets
|
625
|
|
116
|
|
Total non-current
assets
|
163,022
|
|
10,283
|
|
TOTAL
ASSETS
|
$
255,846
|
|
$
205,532
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Trade
payables
|
3,661
|
|
5,026
|
|
Employees and payroll
accruals
|
9,499
|
|
7,742
|
|
Accrued expenses and
other current liabilities
|
4,662
|
|
3,082
|
|
Current portion of
long-term debt
|
15,000
|
|
6,000
|
|
Lease liabilities -
current portion
|
1,685
|
|
—
|
|
Total current
liabilities
|
34,507
|
|
21,850
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
|
Lease liabilities -
non-current portion
|
2,464
|
|
—
|
|
Other non-current
liabilities
|
3,831
|
|
3,455
|
|
Warrants
liability
|
3,026
|
|
18,972
|
|
Total non-current
liabilities
|
9,321
|
|
22,427
|
|
TOTAL
LIABILITIES
|
43,828
|
|
44,277
|
|
COMMITMENTS AND
CONTINGENT LIABILITIES
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
Common stock of
$0.0001 par value - Authorized: 500,000,000 and 500,000,000 at
June 30, 2022 and December 31, 2021, respectively; Issued
and outstanding: 132,411,715 and 119,017,380 at June 30, 2022
and December 31, 2021, respectively
|
13
|
|
12
|
|
Additional paid-in
capital
|
347,630
|
|
293,719
|
|
Accumulated
deficit
|
(135,625)
|
|
(132,476)
|
|
Total stockholders'
equity
|
212,018
|
|
161,255
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
255,846
|
|
$
205,532
|
|
INNOVID, CORP. AND
ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except stock and per stock data)
|
|
|
Three months
ended
June 30,
|
|
Six months ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Revenues
|
$
33,088
|
|
$
22,842
|
|
$
58,950
|
|
$
40,855
|
|
Cost of revenues
(1)
|
7,351
|
|
3,968
|
|
13,277
|
|
7,811
|
|
Research and
development (1)
|
9,710
|
|
6,131
|
|
16,964
|
|
11,356
|
|
Sales and marketing
(1)
|
14,320
|
|
8,105
|
|
24,671
|
|
14,677
|
|
General and
administrative (1)
|
9,955
|
|
4,200
|
|
21,410
|
|
6,579
|
|
Depreciation and
amortization
|
926
|
|
149
|
|
1,599
|
|
331
|
|
Operating (loss)
profit
|
(9,174)
|
|
289
|
|
(18,971)
|
|
101
|
|
Finance expenses
(income), net
|
(13,306)
|
|
1,602
|
|
(15,617)
|
|
3,171
|
|
Profit (loss) before
taxes
|
4,132
|
|
(1,313)
|
|
(3,354)
|
|
(3,070)
|
|
Taxes on income (tax
benefit)
|
(168)
|
|
346
|
|
(205)
|
|
525
|
|
Net profit
(loss)
|
4,300
|
|
(1,659)
|
|
(3,149)
|
|
(3,595)
|
|
|
|
|
|
|
|
|
|
Accretion of preferred
stock to redemption value
|
—
|
|
(21,076)
|
|
—
|
|
(44,804)
|
|
Net loss
attributable to common stockholders
|
$
4,300
|
|
$
(22,735)
|
|
$
(3,149)
|
|
$
(48,399)
|
|
Net loss per stock
attributable to common stockholders (2)
|
|
|
|
|
|
|
|
|
Basic
|
$
0.03
|
|
$
(1.33)
|
|
$
(0.02)
|
|
$
(2.85)
|
|
Diluted
|
$
0.03
|
|
$
(1.33)
|
|
$
(0.02)
|
|
$
(2.85)
|
|
Weighted-average
number of stock used in computing net loss per stock attributable
to common stockholders (2)
|
|
|
|
|
|
|
|
|
Basic
|
132,152,652
|
|
17,116,586
|
|
128,220,893
|
|
16,956,139
|
|
Diluted
|
139,988,123
|
|
17,116,586
|
|
128,220,893
|
|
16,956,139
|
|
|
|
(1)
|
Exclusive of
depreciation and amortization presented separately.
|
|
(2)
|
Prior period results
have been adjusted to reflect the exchange of Innovid Inc's common
stock for Innovid Corp's common stock at an exchange ratio of
approximately 1.337 as a result of the Transaction.
|
|
INNOVID, CORP. AND
ITS SUBSIDIARIES
CONDENSED STATEMENTS OF CHANGES IN TEMPORARY EQUITY AND
STOCKHOLDERS' EQUITY (DEFICIT)
(In thousands, except stock data)
|
|
|
Temporary
equity
|
|
Common
stock
|
|
Treasury
stock
|
|
Additional paid-in
capital
|
|
Accumulated
deficit
|
|
Total stockholders'
equity (deficit)
|
|
|
|
|
Number
|
|
Amount
|
|
Number
|
|
Amount
|
|
Number
|
|
Amount
|
|
|
|
|
|
|
|
Balance as of
December 31, 2020
|
73,690,340
|
|
$ 86,997
|
|
16,275,609
|
|
$
2
|
|
1,914,328
|
|
$
(1,629)
|
|
$
10
|
|
$
(48,113)
|
|
$
(49,730)
|
|
|
|
|
Accretion of preferred
stock to redemption value
|
—
|
|
23,728
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(586)
|
|
(23,142)
|
|
(23,728)
|
|
|
|
|
Stock-based
compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
280
|
|
—
|
|
280
|
|
|
|
|
Stock options
exercised
|
—
|
|
—
|
|
761,697
|
|
—
|
|
—
|
|
—
|
|
306
|
|
—
|
|
306
|
|
|
|
|
Net loss
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,936)
|
|
(1,936)
|
|
|
|
|
Balance as of March
31, 2021 (unaudited)
|
73,690,340
|
|
110,725
|
|
17,037,306
|
|
2
|
|
1,914,328
|
|
(1,629)
|
|
10
|
|
(73,191)
|
|
(74,808)
|
|
|
|
|
Accretion of preferred
stock to redemption value
|
—
|
|
21,076
|
|
—
|
|
—
|
|
—
|
|
—
|
|
$
(1,500)
|
|
$
(19,576)
|
|
(21,076)
|
|
|
|
|
Stock-based
compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
$
1,440
|
|
$
—
|
|
1,440
|
|
|
|
|
Stock options
exercised
|
—
|
|
—
|
|
1,281,999
|
|
—
|
|
—
|
|
—
|
|
$
61
|
|
$
—
|
|
61
|
|
|
|
|
Net loss
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
$
—
|
|
$
—
|
|
$
(1,659)
|
|
(1,659)
|
|
|
|
|
Balance as of
June 30, 2021 (unaudited)
|
73,690,340
|
|
131,801
|
|
18,319,305
|
|
$
2
|
|
1,914,328
|
|
(1,629)
|
|
$
11
|
|
$
(94,426)
|
|
$
(96,042)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Temporary
equity
|
|
Common
stock
|
|
Treasury
stock
|
|
Additional paid-in
capital
|
|
Accumulated
deficit
|
|
Total stockholders'
equity
|
|
|
|
|
Number
|
|
Amount
|
|
Number
|
|
Amount
|
|
Number
|
|
Amount
|
|
|
|
|
|
|
|
Balance as of
December 31, 2021
|
—
|
|
—
|
|
119,017,380
|
|
$
12
|
|
—
|
|
—
|
|
$
293,719
|
|
$
(132,476)
|
|
$
161,255
|
|
|
|
|
Common stock and equity
awards issued for acquisition of TVS
|
—
|
|
—
|
|
11,549,465
|
|
1
|
|
—
|
|
—
|
|
47,151
|
|
—
|
|
47,152
|
|
|
|
|
Stock-based
compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,496
|
|
—
|
|
1,496
|
|
|
|
|
Stock options
exercised
|
—
|
|
—
|
|
1,521,927
|
|
—
|
|
—
|
|
—
|
|
462
|
|
—
|
|
462
|
|
|
|
|
Net loss
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(7,449)
|
|
(7,449)
|
|
|
|
|
Balance as of March
31, 2022 (unaudited)
|
—
|
|
—
|
|
132,088,772
|
|
13
|
|
—
|
|
—
|
|
342,828
|
|
(139,925)
|
|
202,916
|
|
|
|
|
Stock-based
compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4,628
|
|
—
|
|
4,628
|
|
|
|
|
Stock options
exercised
|
—
|
|
—
|
|
322,943
|
|
—
|
|
—
|
|
—
|
|
174
|
|
—
|
|
174
|
|
|
|
|
Net profit
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4,300
|
|
4,300
|
|
|
|
|
Balance as of
June 30, 2022 (unaudited)
|
—
|
|
—
|
|
132,411,715
|
|
$
13
|
|
—
|
|
—
|
|
$
347,630
|
|
$ (135,625)
|
|
$
212,018
|
|
|
|
|
INNOVID, CORP. AND
ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, except stock and per stock
data)
|
|
|
Six months ended
June 30,
|
|
2022
|
|
2021
|
|
Cash flows from
operating activities:
|
(Unaudited)
|
|
(Unaudited)
|
|
Net loss
|
$
(3,149)
|
|
$
(3,595)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
1,599
|
|
331
|
|
Stock-based
compensation
|
5,634
|
|
1,720
|
|
Change in fair value
of warrants
|
(15,946)
|
|
2,728
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
(Increase)/ decrease
in trade receivables, net
|
(4,624)
|
|
2,605
|
|
Increase in prepaid
expenses and other operating assets
|
(747)
|
|
(623)
|
|
Increase/ (decrease)
in trade payables
|
(321)
|
|
238
|
|
Decrease in operating
lease right of use assets
|
872
|
|
—
|
|
Increase/ (decrease)
in employees and payroll accruals
|
1,044
|
|
184
|
|
Decrease in operating
lease liabilities
|
(1,208)
|
|
—
|
|
Increase in accrued
expenses and other operating liabilities
|
945
|
|
759
|
|
Net cash (used in)/
provided by operating activities
|
(15,901)
|
|
4,347
|
|
Cash flows from
investing activities:
|
|
|
|
|
Acquisition of
business, net of cash acquired
|
(99,568)
|
|
—
|
|
Internal use software
capitalization
|
(3,516)
|
|
—
|
|
Purchase of property
and equipment
|
(221)
|
|
(284)
|
|
Founders' note
receivable
|
—
|
|
(459)
|
|
Decrease in
deposits
|
32
|
|
(24)
|
|
Net cash used in
investing activities
|
(103,273)
|
|
(767)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Repayment of
acquisition liability
|
—
|
|
(126)
|
|
Proceeds from
loans
|
9,000
|
|
—
|
|
Repayment of
loans
|
—
|
|
(3,033)
|
|
Payment of SPAC merger
transaction costs
|
(3,185)
|
|
—
|
|
Proceeds from exercise
of options
|
636
|
|
367
|
|
Net cash (used in)/
provided by financing activities
|
6,451
|
|
(2,792)
|
|
Increase/ (decrease) in
cash, cash equivalents and restricted cash
|
(112,723)
|
|
788
|
|
Cash, cash equivalents
and restricted cash at the beginning of the period
|
157,158
|
|
16,092
|
|
Cash, cash
equivalents and restricted cash at the end of the
period
|
$
44,435
|
|
$
16,880
|
|
Supplemental
disclosure of cash flows activities:
|
|
|
|
|
(1) Cash paid during
the period for:
|
|
|
|
|
Income taxes paid, net
of tax refunds
|
$
363
|
|
$
80
|
|
Interest
|
$
137
|
|
$
128
|
|
(2) Non-cash
transactions:
|
|
|
|
|
Business combination
consideration paid in stock
|
$
47,152
|
|
$
—
|
|
Accretion of preferred
stock to redemption value
|
—
|
|
$
44,804
|
|
Deferred offering cost
included in accrued liabilities
|
—
|
|
$
1,640
|
|
Reconciliation of
cash, cash equivalents, and restricted cash reported within the
statement of financial position
|
|
|
|
|
Cash and cash
equivalents
|
44,024
|
|
16,441
|
|
Long-term restricted
deposits
|
411
|
|
439
|
|
Total cash, cash
equivalents, and restricted cash shown in the condensed
consolidated statements of cash flows
|
$
44,435
|
|
$
16,880
|
|
Key Metrics and
Non-GAAP
Financial Measures
Adjusted EBITDA
|
|
|
In addition to our
results determined in accordance with US GAAP, we believe that
certain non-GAAP financial measures, including Adjusted EBITDA and
Adjusted EBITDA Margin, are useful in evaluating our business. We
calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by
total revenue. The following table presents a reconciliation of
Adjusted EBITDA, a non-GAAP financial measure, to the most directly
comparable financial measure prepared in accordance with US
GAAP.
|
|
|
Three months
ended
June 30,
|
|
Six months ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Net profit
(loss)
|
$
4,300
|
|
$
(1,659)
|
|
$ (3,149)
|
|
$ (3,595)
|
|
Net profit (loss)
margin
|
13 %
|
|
(7) %
|
|
(5) %
|
|
(9) %
|
|
Depreciation and
amortization
|
926
|
|
149
|
|
1,599
|
|
331
|
|
Stock-based
compensation
|
4,138
|
|
1,440
|
|
5,730
|
|
1,720
|
|
Finance expense
(income), net (a)
|
(13,306)
|
|
1,602
|
|
(15,617)
|
|
3,171
|
|
Transaction related
expenses (b)
|
164
|
|
—
|
|
392
|
|
—
|
|
Acquisition related
expenses (c)
|
768
|
|
—
|
|
4,971
|
|
—
|
|
Other (d)
|
1,518
|
|
—
|
|
1,610
|
|
—
|
|
Taxes on
income
|
(168)
|
|
346
|
|
(205)
|
|
525
|
|
Adjusted
EBITDA
|
$
(1,660)
|
|
$
1,878
|
|
$ (4,669)
|
|
$
2,152
|
|
Adjusted EBITDA
margin
|
(5) %
|
|
8 %
|
|
(8) %
|
|
5 %
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Finance expense
(income), net consists primarily of remeasurement expense related
to our foreign subsidiaries' monetary assets, liabilities and
operating results, our interest expense and revaluation of our
warrants. The unrealized gain from changes in the fair value of our
warrants for the three months and six months period ended June 30,
2022 (unaudited) was $13.2 million and $15.9 million, respectively.
The unrealized loss from changes in the fair value of our warrants
for the three months and six months period ended June 30, 2021
(unaudited) was $1.4 million and $2.7 million,
respectively.
|
|
(b)
|
Transaction related
expenses consist of professional fees associated with the SPAC
merger transaction and PIPE related SEC filings.
|
|
(c)
|
Acquisition related
expenses consists of professional fees associated with the
acquisition of TVS.
|
|
(d)
|
For the three months
and six months ended June 30, 2022, "other" consists of exit costs
for a former TVS employee, retention bonus expense for TVS
employees and legal costs related to the Nielsen Claim.
|
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SOURCE Innovid