- Increased revenue by 47% year-over-year to $34.5 million
- CTV accounted for 54% of the volume of all video impressions
served
- TV measurement accounted for 23% of all revenue
- Generated net loss of $11.8
million and adjusted EBITDA* of $2.9
million, representing an 8% adjusted EBITDA margin*
- Innovid to host Investor Day on November 16, 2022, in New York City
NEW
YORK, Nov. 11, 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 third quarter ended September 30, 2022.
"Innovid produced strong results in the third quarter of 2022
growing revenue 47% year–over-year, at the high end of our
guidance. Our growth was predominantly driven by CTV, which
accounted for 50% of revenue excluding TVSquared, a new record for
the business," said Zvika Netter,
Co-Founder and CEO. "I'm especially happy to share that we reported
$2.9 million in third quarter
Adjusted EBITDA, significantly exceeding our expectations.
This is a result of the proactive measures we have taken to
implement post-merger synergies to improve margins during the
quarter and on a go-forward basis."
Third Quarter Financial Highlights:
(All comparisons are to the third quarter of 2021)
- Revenue grew to $34.5 million for
the combined business, reflecting an increase of 47% on an
as-reported basis.
-
- Measurement contributed $7.8
million, or 23% of revenue, up from 1% of revenue in the
third quarter of 2021, and grew 23% on a pro forma basis when
including TVSquared in the comparative period.
- CTV accounted for 50% of revenue, excluding TVSquared, the
highest in Company history, up from 46% of revenue in the third
quarter of 2021, demonstrating 28% year-over-year growth.
- Net loss was $11.8 million or
negative $0.09 per share.
- Adjusted EBITDA* was $2.9
million, representing an 8% adjusted EBITDA margin*.
Third Quarter Business Highlights:
- CTV Volume Growth: CTV accounted for 54% of the volume of all
video impressions served, up from 46% of volume in the third
quarter of 2021, demonstrating 36% year-over-year growth.
- New Client Wins: Closed multiple new clients across delivery,
personalization, and measurement capabilities including American
Family Insurance, Astra Zeneca, Diageo, Universal Parks, and
more.
- Programmatic Cross-Platform Measurement: Integrated into The
Trade Desk's Measurement Marketplace to enable always-on
incremental reach analysis across CTV campaigns in the UK and
Germany.
- Creative Optimization Strategies: Introduced new capabilities
to boost creative performance through expanded datasets, deeper
insights, and algorithmic decisioning.
-
- Launched new automated creative optimization technology to
intelligently adjust the rotation of ad creatives in real-time,
while surfacing deeper creative-level insights.
- Joined forces with NCSolutions to leverage unique purchase data
to enable CPG advertisers to boost sales by optimizing creative
based on real-time purchase signals across CTV and digital.
Innovid will be hosting an Investor Day where senior management
will present to the investment community the Company's business
performance, key strategic priorities, and outlook. The event will
be held in person at the New York Stock Exchange Headquarters at 18
Broad Street, in New York on
Wednesday, November 16, 2022, from
2:00pm – 5:00pm ET. The event, along with supporting
materials, can also be accessed live or via an archived replay
through the Investor Relations section of the Company's
website. As space for Investor Day is limited, in-person
attendance is by invitation only and advanced registration is
required. Please contact Investor Relations with any questions at
ir@innovid.com.
Fourth Quarter 2022 Outlook
Innovid is providing the following financial guidance for the
fourth quarter of 2022:
- Revenue is expected to be in line with our previous full-year
guide, in the range of $34 million to
$36 million, reflecting 31% to 39%
year-over-year growth on an as-reported basis, and 6% to 12%
year-over-year growth on a pro forma basis when including TVSquared
revenue in the comparative period.
- Adjusted EBITDA* is expected to be in the range of $1 million to $3
million.
Full Year 2022 Outlook
Innovid is providing the following financial guidance for the
full year of 2022:
- Revenue is expected to be in the range of $127 million to $129
million including TVSquared, a year-over-year increase of
approximately 41% to 43% growth on an as-reported basis, and 17% to
19% year-over-year growth on a pro forma basis when including
TVSquared revenue in the comparative period.
- Total annual adjusted EBITDA* is expected to be nearly
breakeven or positive.
Conference Call
Innovid will host a conference call and live webcast to discuss
its third quarter 2022 financial results and business highlights
today at 8:30 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 loss attributable to Innovid, excluding (1) depreciation,
amortization and impairment, (2) stock-based compensation, (3)
finance expense (income), net, (4) transaction related expenses,
(5) acquisition related expenses, (6) retention bonus expenses, (7)
legal claims, (8) other and (9) taxes on income. 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 and Adjusted EBITDA Margin to net loss 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 third 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)
|
|
|
September 30,
2022
|
|
December 31,
2021
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
46,509
|
|
$
156,696
|
Trade receivables, net
(allowance for doubtful accounts of $69 and $81 at
September 30, 2022 and December 31 2021, respectively)
|
40,223
|
|
35,422
|
Prepaid expenses and
other current assets
|
3,812
|
|
3,131
|
Total current
assets
|
90,544
|
|
195,249
|
NON-CURRENT
ASSETS:
|
|
|
|
Long-term
deposit
|
310
|
|
310
|
Long-term restricted
deposits
|
406
|
|
462
|
Property and
equipment, net
|
11,719
|
|
4,840
|
Goodwill
|
114,678
|
|
4,555
|
Intangible assets,
net
|
34,206
|
|
—
|
Operating lease right
of use asset
|
3,217
|
|
—
|
Other non-current
assets
|
795
|
|
116
|
Total non-current
assets
|
165,331
|
|
10,283
|
TOTAL
ASSETS
|
$
255,875
|
|
$
205,532
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Trade
payables
|
2,950
|
|
5,026
|
Employees and payroll
accruals
|
10,682
|
|
7,742
|
Accrued expenses and
other current liabilities
|
6,573
|
|
3,082
|
Current portion of
long-term debt
|
—
|
|
6,000
|
Lease liabilities -
current portion
|
1,904
|
|
—
|
Total current
liabilities
|
22,109
|
|
21,850
|
NON-CURRENT
LIABILITIES:
|
|
|
|
Long-term
debt
|
15,000
|
|
—
|
Lease liabilities -
non-current portion
|
2,279
|
|
—
|
Other non-current
liabilities
|
3,918
|
|
3,455
|
Warrants
liability
|
7,590
|
|
18,972
|
Total non-current
liabilities
|
28,787
|
|
22,427
|
TOTAL
LIABILITIES
|
50,896
|
|
44,277
|
COMMITMENTS AND
CONTINGENT LIABILITIES
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
Common stock of
$0.0001 par value - Authorized: 500,000,000 at September
30, 2022 and December 31, 2021; Issued and
outstanding: 133,492,514 and
119,017,380 at September 30, 2022 and December 31,
2021, respectively
|
13
|
|
12
|
Additional paid-in
capital
|
352,423
|
|
293,719
|
Accumulated
deficit
|
(147,457)
|
|
(132,476)
|
Total stockholders'
equity
|
204,979
|
|
161,255
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
255,875
|
|
$
205,532
|
INNOVID, CORP. AND
ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except stock and per stock data)
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Revenues
|
$
34,469
|
|
$
23,469
|
|
$
93,419
|
|
$
64,324
|
Cost of revenues
(1)
|
8,534
|
|
4,548
|
|
21,811
|
|
12,359
|
Research and
development (1)
|
7,312
|
|
5,342
|
|
24,276
|
|
16,698
|
Sales and marketing
(1)
|
13,726
|
|
8,689
|
|
38,397
|
|
23,366
|
General and
administrative (1)
|
9,046
|
|
3,982
|
|
30,456
|
|
10,561
|
Depreciation,
amortization and impairment
|
1,882
|
|
156
|
|
3,481
|
|
487
|
Operating (loss)
profit
|
(6,031)
|
|
752
|
|
(25,002)
|
|
853
|
Finance expenses
(income), net
|
4,962
|
|
707
|
|
(10,655)
|
|
3,878
|
(Loss) profit before
taxes
|
(10,993)
|
|
45
|
|
(14,347)
|
|
(3,025)
|
Taxes on
income
|
839
|
|
304
|
|
634
|
|
829
|
Net
loss
|
(11,832)
|
|
(259)
|
|
(14,981)
|
|
(3,854)
|
|
|
|
|
|
|
|
|
Accretion of preferred
stock to redemption value
|
—
|
|
(8,189)
|
|
—
|
|
(52,993)
|
Net loss
attributable to common stockholders
|
$
(11,832)
|
|
$
(8,448)
|
|
$
(14,981)
|
|
$
(56,847)
|
Net loss per stock
attributable to common
stockholders (2)
|
|
|
|
|
|
|
|
Basic
|
$
(0.09)
|
|
$
(0.45)
|
|
$
(0.12)
|
|
$
(4.32)
|
Diluted
|
$
(0.09)
|
|
$
(0.45)
|
|
$
(0.12)
|
|
$
(4.32)
|
Weighted-average
number of stock used in
computing net loss per stock attributable to
common stockholders (2)
|
|
|
|
|
|
|
|
Basic
|
132,959,511
|
|
18,849,710
|
|
129,768,724
|
|
13,157,022
|
Diluted
|
132,959,511
|
|
18,849,710
|
|
129,768,724
|
|
13,157,022
|
|
|
(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)
|
Accretion of preferred
stock to redemption value
|
—
|
|
8,189
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,105)
|
|
(7,084)
|
|
(8,189)
|
Stock-based
compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
591
|
|
|
|
591
|
Stock options
exercised
|
—
|
|
—
|
|
766,664
|
|
—
|
|
—
|
|
—
|
|
513
|
|
|
|
513
|
Net loss
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
(259)
|
|
(259)
|
Balance as of
September 30, 2021 (unaudited)
|
73,690,340
|
|
$
139,990
|
|
19,085,969
|
|
$
2
|
|
1,914,328
|
|
$
(1,629)
|
|
$
10
|
|
$
(101,769)
|
|
$
(103,386)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
Stock-based
compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4,612
|
|
—
|
|
4,612
|
Stock options and RSUs
exercised
|
—
|
|
—
|
|
1,080,799
|
|
—
|
|
—
|
|
—
|
|
181
|
|
—
|
|
181
|
Net loss
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(11,832)
|
|
(11,832)
|
Balance as of
September 30, 2022 (unaudited)
|
—
|
|
$
—
|
|
133,492,514
|
|
$
13
|
|
—
|
|
$
—
|
|
$
352,423
|
|
$
(147,457)
|
|
$
204,979
|
INNOVID, CORP. AND
ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, except stock and per stock
data)
|
|
|
Nine months ended
September 30,
|
|
2022
|
|
2021
|
Cash flows from
operating activities:
|
(Unaudited)
|
|
(Unaudited)
|
Net loss
|
$
(14,981)
|
|
$
(3,854)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation,
amortization and impairment
|
3,481
|
|
487
|
Stock-based
compensation
|
9,956
|
|
2,311
|
Change in fair value
of warrants
|
(11,382)
|
|
3,191
|
Changes in operating
assets and liabilities
|
|
|
|
(Increase)/ decrease
in trade receivables, net
|
(1,294)
|
|
581
|
(Increase)/ decrease
in prepaid expenses and other current assets
|
514
|
|
(1,587)
|
Increase/ (decrease)
in trade payables
|
(1,032)
|
|
710
|
Decrease in operating
lease right of use assets
|
1,332
|
|
—
|
Increase in employees
and payroll accruals
|
2,227
|
|
355
|
Decrease in operating
lease liabilities
|
(1,782)
|
|
—
|
Increase in accrued
expenses and other current liabilities
|
2,872
|
|
852
|
Net cash (used in)/
provided by operating activities
|
(10,089)
|
|
3,046
|
Cash flows from
investing activities:
|
|
|
|
Acquisition of
business, net of cash acquired
|
(99,568)
|
|
—
|
Internal use software
capitalization
|
(6,975)
|
|
(1,049)
|
Purchase of property
and equipment
|
(282)
|
|
(378)
|
Founders' note
receivable
|
—
|
|
(459)
|
Decrease (increase) in
deposits
|
38
|
|
(58)
|
Net cash used in
investing activities
|
(106,787)
|
|
(1,944)
|
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
|
817
|
|
882
|
Net cash (used in)/
provided by financing activities
|
6,632
|
|
(2,277)
|
Decrease in cash, cash
equivalents and restricted cash
|
(110,243)
|
|
(1,175)
|
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
|
$
46,915
|
|
$
14,917
|
Supplemental
disclosure of cash flows activities:
|
|
|
|
(1) Cash paid during
the period for:
|
|
|
|
Income taxes paid, net
of tax refunds
|
$
727
|
|
$
216
|
Interest
|
$
371
|
|
$
189
|
(2) Non-cash
transactions:
|
|
|
|
Business combination
consideration paid in stock
|
$
47,152
|
|
$
—
|
Accretion of preferred
stock to redemption value
|
—
|
|
$
52,993
|
Deferred offering cost
included in accrued liabilities
|
—
|
|
$
2,406
|
Reconciliation of
cash, cash equivalents, and restricted cash reported within the
condensed
consolidated balance sheets
|
|
|
|
Cash and cash
equivalents
|
46,509
|
|
14,472
|
Long-term restricted
deposits
|
406
|
|
445
|
Total cash, cash
equivalents, and restricted cash shown in the condensed
consolidated statements
of cash flows
|
$
46,915
|
|
$
14,917
|
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
September 30,
|
|
Nine months
ended
September 30,
|
(in
thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net loss
|
$ (11,832)
|
|
$ (259)
|
|
$
(14,981)
|
|
$ (3,854)
|
Net loss
margin
|
(34) %
|
|
(1) %
|
|
(16) %
|
|
(6) %
|
Depreciation,
amortization and impairment (a)
|
1,882
|
|
156
|
|
3,481
|
|
487
|
Stock-based
compensation
|
4,322
|
|
591
|
|
10,052
|
|
2,311
|
Finance expense
(income), net (b)
|
4,962
|
|
707
|
|
(10,655)
|
|
3,878
|
Transaction related
expenses (c)
|
—
|
|
—
|
|
392
|
|
—
|
Acquisition related
expenses (d)
|
—
|
|
—
|
|
4,971
|
|
—
|
Retention bonus
expenses (e)
|
1,290
|
|
—
|
|
2,290
|
|
—
|
Legal
claims
|
664
|
|
—
|
|
1,099
|
|
—
|
Other (f)
|
739
|
|
—
|
|
915
|
|
—
|
Taxes on
income
|
839
|
|
304
|
|
634
|
|
829
|
Adjusted
EBITDA
|
$
2,866
|
|
$
1,499
|
|
$ (1,802)
|
|
$
3,651
|
Adjusted EBITDA
margin
|
8 %
|
|
6 %
|
|
(2) %
|
|
6 %
|
|
|
(a)
|
In third quarter, 2022,
the Company recorded impairment charges of $0.5 million related to
the abandonment of certain projects related to our internal
software development.
|
(b)
|
Finance expense
(income), net consists primary of remeasurement expense related to
our foreign subsidiaries' monetary assets, liabilities and
operating results, our interest expense and revaluation of our
warrants. The unrealized loss from changes in the fair value of our
warrants for the three months period ended September 30, 2022, was
$4.6 million. The unrealized gain from changes in the fair
value of our warrants for the nine months period ended September
30, 2022, was $11.4 million. The unrealized loss from changes
in the fair value of our warrants for the three months and nine
months period ended September 30, 2021, was $0.5 million and $3.2
million, respectively.
|
(c)
|
Transaction related
expenses consist of professional fees associated with the SPAC
merger transaction and PIPE related SEC filings.
|
(d)
|
Acquisition related
expenses consists of professional fees associated with the
acquisition of TVS.
|
(e)
|
Retention bonus
expenses consists of retention bonus for TVS employees.
|
(f)
|
For the three months
and nine months ended September 30, 2022, "other" consists
predominantly of exit costs for a former TVS employee. In previous
quarters, retention bonus and legal claims were included in
"other".
|
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SOURCE Innovid