- Q3 revenue increased to $36.2
million, up 5% year-over-year
- CTV revenue from Ad Serving and Personalization, up 9%
year-over-year
- Company raises full year 2023 guidance
NEW
YORK, Nov. 8, 2023 /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 fiscal quarter
ended September 30, 2023.
"I am pleased to report we delivered a strong third quarter -
exceeding our prior guidance for both revenue and Adjusted EBITDA*,
positioning us to raise our full year guidance," said Zvika Netter, Co-Founder and CEO. "Importantly,
we significantly increased Adjusted EBITDA* margins to 18%, up from
8% in the prior year period and we generated $4.1 million in positive Free Cash Flow* this
quarter. Our Q3 results are evidence of our increased operational
efficiency and our focus on profitable growth. Looking ahead, we
are optimistic about future growth and our ability to expand our
moat as a leader in building critical technology for the future of
TV advertising."
Third Quarter 2023 Financial Summary
- Revenue increased to $36.2
million, reflecting year-over-year growth of 5%.
- CTV revenue, from Ad Serving and Personalization, increased to
$14.4 million, up 9%
year-over-year.
- Measurement contributed $8.4
million, up 8% year-over-year, representing 23% of
revenue.
- Net loss was $2.7 million,
compared to a net loss of $11.8
million for the same period in 2022.
- Adjusted EBITDA* more than doubled to $6.5 million, compared to $2.9 million for the same period in 2022,
representing 18% Adjusted EBITDA margin.
- Free cash flow* increased 78% to $4.1
million, compared to $2.3
million in the same period in 2022.
- Cash and cash equivalents as of September 30, 2023 increased from the prior
quarter by $4.3 million, to a total
of $47.7 million.
Recent Business Highlights
- CTV accounted for 55% of all video impressions served in Q3
2023.
- Significant customer wins this quarter included Revlon,
Fanatics, Bausch Health, and OnRunning.
- Existing premium publisher partners such as NBC Universal
expanded their usage commitment for our measurement solution to
help prove the value of their inventory to advertisers.
- We announced the launch of Instant Optimization, a
machine-learning solution that empowers converged TV marketers with
the ability to immediately optimize ad performance as the campaign
is running.
- Innovid will be hosting an Investor Day detailing the company's
vision, market opportunities, and product innovation on
November 30, 2023 in New York City. Please find additional
information here.
Financial Outlook
Innovid is providing the following financial guidance for Q4 and
full year 2023:
- Q4 2023 revenue in a range between $35
million and $37 million.
- Q4 2023 Adjusted EBITDA* in a range between $5.5 million and $7.5
million.
FY 2023 revenue in a range between $136
million and $138 million.
- FY 2023 Adjusted EBITDA* in a range between $16.6 and $18.6
million for the full year with an Adjusted EBITDA margin* of
at least 12% for the full year.
*See Use of Non-GAAP Financial Information and Reconciliation of
GAAP to Non-GAAP Financial Measures table.
Conference Call
The Company will host a conference call and webcast to discuss
third quarter 2023 financial
results today at 8:30 a.m. Eastern
Time. Hosting the call will be Zvika
Netter, Co-founder and Chief Executive Officer and
Anthony Callini, Chief Financial
Officer. The conference call will be available via webcast at
investors.innovid.com. To participate via telephone, please dial
877-407-3211 (toll free) or 201-389-0862, and click here for
international dial-ins. Following the call, a replay of the webcast
will be available for 90 days on the Innovid Investor Relations
website.
Non-GAAP Measures and Certain Operational Metrics
Innovid prepares unaudited interim 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 and Free Cash Flow.
We use Adjusted EBITDA, Adjusted EBITDA margin and Free Cash
Flow as measures of operational efficiency to understand and
evaluate our core business operations. We believe that these
non-GAAP financial measures are also useful to investors for
period-to-period comparisons of our core business.
Additionally, these figures provide an understanding and evaluation
of our trends when comparing our operating results, on a consistent
basis, by excluding items that we do not believe are indicative of
our core operating performance.
These 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. Some of the
limitations of these measures are:
- they do not reflect changes in, or cash requirements for, our
working capital needs;
- Adjusted EBITDA does not reflect our capital expenditures or
future requirements for capital expenditures or contractual
commitments;
- they do not reflect costs of acquiring and integrating
businesses, which will continue to be a part of our growth
strategy;
- they do not reflect one-time, non-recurring, bonus costs and
third party costs associated with the SPAC merger transaction and
regulatory filings;
- they do not reflect goodwill impairment;
- they do not reflect severance costs;
- they do not reflect income tax expense or the cash requirements
to pay income taxes;
- they do not reflect our interest expense or the cash
requirements necessary to service interest or principal payments on
our debt; and
- although depreciation and amortization are non-cash charges
related mainly to intangible assets and amortization of software
development costs, certain assets being depreciated and amortized
will have to be replaced in the future, and Adjusted EBITDA does
not reflect any cash requirements for such replacements.
Adjusted EBITDA is defined as net loss attributable to Innovid,
excluding (1) depreciation, amortization and long-lived assets
impairment, (2) goodwill impairment, (3) stock-based compensation,
(4) finance (income) expenses, net, (5) transaction related
expenses, (6) acquisition related expenses, (7) retention bonus
expenses, (8) legal claims, (9) severance cost, (9) other, and (10)
taxes on income.
We calculate Adjusted EBITDA margin as Adjusted EBITDA divided
by total revenue.
We define Free Cash Flow as net cash provided by operating
activities less capital expenditures.
Other companies in our industry may calculate the above
described non-GAAP financial measures differently than we do,
limiting their usefulness as a comparative measure. You should
compensate for these limitations by relying primarily on our US
GAAP results and using the non-GAAP financial measures only
supplementally.
Innovid has provided a reconciliation of Adjusted EBITDA and
Adjusted EBITDA margin to net (loss) income, the most directly
comparable GAAP measure, for historical periods in the appendix
hereto. We also have provided reconciliation of Free Cash Flow to
net cash provided by operating activities. We are not able to
provide a reconciliation of the projected Adjusted EBITDA or
Adjusted EBITDA margin to expected net (loss) income attributable
to Innovid for the fourth quarter of 2023 or the full-year 2023,
without unreasonable effort. This is due to the unknown effect,
timing, and potential significance of the effects of taxes on
income in multiple jurisdictions, finance (income)/expenses
including valuations, among others. 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 achieve and, if achieved,
maintain profitability, decrease and/or changes in CTV audience
viewership behavior, Innovid's failure to make the right investment
decisions or to innovate and develop new solutions, inaccurate
estimates or projections of future financial performance, Innovid's
failure to manage growth effectively, the dependence of Innovid's
revenues and business on the overall demand for advertising and a
limited number of advertising agencies and advertisers, the actual
or potential impacts of international conflicts and humanitarian
crises on global markets, the rejection of digital advertising by
consumers, future restrictions on Innovid's ability to collect, use
and disclose data, market pressure resulting in a reduction of
Innovid's revenues per impression, Innovid's failure to adequately
scale its platform infrastructure, exposure to fines and liability
if advertisers, publishers and data providers do not obtain
necessary and requisite consents from consumers for Innovid to
process their personal data, competition for employee talent,
seasonal fluctuations in advertising activity, payment-related
risks, interruptions or delays in services from third parties,
errors, defects, or unintended performance problems in Innovid's
platform, intense market competition, failure to comply with the
terms of third party open source components, changes in tax laws or
tax rulings, failure to maintain an effective system of internal
controls over financial reporting, failure to comply with data
privacy and data protection laws, infringement of third-party
intellectual property rights, difficulty in enforcing Innovid's own
intellectual property rights, system failures, security breaches or
cyberattacks, additional financing if required may not be
available, the volatility of the price of Innovid's common stock
and warrants, 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 3,
2023, 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. You should carefully consider the
risks and uncertainties described in the documents filed by the
Company from time to time with the U.S. Securities and Exchange
Commission. These filings identify and address other important
risks and uncertainties that could cause actual events and results
to differ materially from those contained in the forward-looking
statements. 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, and measurement across linear, connected TV (CTV)
and digital for the world's largest brands. Through a global
infrastructure that enables cross-platform ad serving, data-driven
creative, and 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.
Contacts
Investor Contact
Brinlea Johnson
IR@innovid.com
Media Contacts
Megan Garnett Coyle
megan@innovid.com
Caroline Yodice
cyodice@daddibrand.com
INNOVID, CORP. AND
ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands,
except stock and per stock data)
|
|
|
September 30,
2023
|
|
December 31,
2022
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
47,680
|
|
$
37,541
|
Short-term bank
deposits
|
—
|
|
10,000
|
Trade receivables, net
(allowance for credit losses of $270 and $65 at September 30,
2023, and December 31, 2022,
respectively)
|
43,559
|
|
43,653
|
Prepaid expenses and
other current assets
|
3,905
|
|
2,640
|
Total current
assets
|
95,144
|
|
93,834
|
Long-term
deposit
|
253
|
|
277
|
Long-term restricted
deposits
|
387
|
|
430
|
Property and
equipment, net
|
18,097
|
|
14,322
|
Goodwill
|
102,473
|
|
116,976
|
Intangible assets,
net
|
26,529
|
|
29,918
|
Operating lease right
of use asset
|
1,559
|
|
2,910
|
Other non-current
assets
|
787
|
|
938
|
Total non-current
assets
|
150,085
|
|
165,771
|
TOTAL ASSETS
|
$
245,229
|
|
$
259,605
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Trade
payables
|
3,325
|
|
3,361
|
Employees and payroll
accruals
|
11,935
|
|
10,165
|
Lease liabilities -
current portion
|
1,325
|
|
2,186
|
Accrued expenses and
other current liabilities
|
5,183
|
|
5,474
|
Total current
liabilities
|
21,768
|
|
21,186
|
Long-term
debt
|
20,000
|
|
20,000
|
Lease liabilities -
non-current portion
|
814
|
|
1,636
|
Other non-current
liabilities
|
9,113
|
|
6,554
|
Warrants
liability
|
613
|
|
4,301
|
Total non-current
liabilities
|
30,540
|
|
32,491
|
TOTAL
LIABILITIES
|
52,308
|
|
53,677
|
COMMITMENTS AND
CONTINGENT LIABILITIES
|
|
|
|
Common stock: $0.0001
par value - Authorized: 500,000,000 at September 30, 2023,
and December 31, 2022; Issued and outstanding: 140,136,905 and
133,882,414 at
September 30, 2023, and December 31, 2022, respectively
|
13
|
|
13
|
Additional paid-in
capital
|
374,047
|
|
356,801
|
Accumulated
deficit
|
(181,139)
|
|
(150,886)
|
Total stockholders'
equity
|
192,921
|
|
205,928
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
245,229
|
|
$
259,605
|
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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Revenues
|
$
36,234
|
|
$
34,469
|
|
$
101,265
|
|
$
93,419
|
Cost of revenues
(1)
|
8,428
|
|
8,534
|
|
25,284
|
|
21,811
|
Research and
development (1)
|
6,486
|
|
7,312
|
|
20,479
|
|
24,276
|
Sales and marketing
(1)
|
11,175
|
|
13,726
|
|
34,272
|
|
38,397
|
General and
administrative (1)
|
9,753
|
|
9,046
|
|
28,327
|
|
30,456
|
Depreciation,
amortization and long-lived assets impairment
|
4,714
|
|
1,882
|
|
8,808
|
|
3,481
|
Goodwill
impairment
|
—
|
|
—
|
|
14,503
|
|
—
|
Operating
loss
|
(4,322)
|
|
(6,031)
|
|
(30,408)
|
|
(25,002)
|
Finance (income)
expenses, net
|
(290)
|
|
4,962
|
|
(3,013)
|
|
(10,655)
|
Loss before
taxes
|
(4,032)
|
|
(10,993)
|
|
(27,395)
|
|
(14,347)
|
Taxes on
income
|
(1,301)
|
|
839
|
|
2,858
|
|
634
|
Net
loss
|
(2,731)
|
|
(11,832)
|
|
(30,253)
|
|
(14,981)
|
|
|
|
|
|
|
|
|
Net loss
attributable to common stockholders
|
$
(2,731)
|
|
$
(11,832)
|
|
$
(30,253)
|
|
$
(14,981)
|
Net (loss) income
per stock attributable to
common stockholders
|
|
|
|
|
|
|
|
Basic and
diluted
|
$
(0.02)
|
|
$
(0.09)
|
|
$
(0.22)
|
|
$
(0.12)
|
Weighted-average
number of stock used in
computing net (loss) income per stock
attributable to common
stockholders
|
|
|
|
|
|
|
|
Basic and
diluted
|
139,607,389
|
|
132,959,511
|
|
137,826,099
|
|
129,768,724
|
|
|
(1)
|
Exclusive of
depreciation, amortization, long-lived assets and goodwill
impairment presented separately.
|
INNOVID, CORP. AND ITS
SUBSIDIARIES
|
CONDENSED STATEMENTS OF CHANGES IN TEMPORARY EQUITY
AND STOCKHOLDERS' EQUITY
|
(In thousands, except stock
data)
|
|
|
Common
stock
|
Additional paid-
in capital
|
Accumulated
deficit
|
Total
stockholders'
equity
|
|
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 income
|
—
|
—
|
—
|
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 exercised
and RSUs vested
|
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
|
|
|
|
|
|
|
|
Common
stock
|
Additional paid-
in capital
|
Accumulated
deficit
|
Total
stockholders'
equity
|
|
Number
|
Amount
|
Balance as of
December 31, 2022
|
133,882,414
|
$
13
|
$
356,801
|
$
(150,886)
|
$
205,928
|
Stock-based
compensation
|
—
|
—
|
4,897
|
—
|
4,897
|
Stock options exercised
and RSUs vested
|
2,734,320
|
—
|
250
|
—
|
250
|
Net loss
|
—
|
—
|
—
|
(8,563)
|
(8,563)
|
Balance as of March
31, 2023 (unaudited)
|
136,616,734
|
$
13
|
$
361,948
|
$
(159,449)
|
$
202,512
|
Stock-based
compensation
|
—
|
—
|
5,658
|
—
|
5,658
|
Stock options exercised
and RSUs vested
|
2,120,370
|
—
|
364
|
—
|
364
|
Net loss
|
—
|
—
|
—
|
(18,959)
|
(18,959)
|
Balance as of June
30, 2023 (unaudited)
|
138,737,104
|
$
13
|
$
367,970
|
$
(178,408)
|
$
189,575
|
Stock-based
compensation
|
—
|
—
|
5,919
|
—
|
5,919
|
Stock options exercised
and RSUs vested
|
1,399,801
|
—
|
158
|
—
|
158
|
Net loss
|
—
|
—
|
—
|
(2,731)
|
(2,731)
|
Balance as of
September 30, 2023 (unaudited)
|
140,136,905
|
$
13
|
$
374,047
|
$
(181,139)
|
$
192,921
|
INNOVID, CORP. AND ITS
SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
(In thousands, except stock and per stock
data)
|
|
|
Nine Months Ended
September 30
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
(Unaudited)
|
|
(Unaudited)
|
Net loss
|
$
(30,253)
|
|
$
(14,981)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation,
amortization and long-lived assets impairment
|
8,808
|
|
3,481
|
Goodwill
impairment
|
14,503
|
|
—
|
Stock-based
compensation
|
15,470
|
|
9,956
|
Change in fair value
of warrants
|
(3,688)
|
|
(11,382)
|
Changes in operating
assets and liabilities
|
|
|
|
Trade receivables,
net
|
94
|
|
(1,294)
|
Prepaid expenses and
other current assets
|
(1,167)
|
|
514
|
Operating lease right
of use assets
|
1,351
|
|
1,332
|
Trade
payables
|
(36)
|
|
(1,032)
|
Employees and payroll
accruals
|
1,770
|
|
2,227
|
Operating lease
liabilities
|
(1,683)
|
|
(1,782)
|
Accrued expenses and
other current liabilities
|
2,268
|
|
2,872
|
Net cash provided by /
(used in) operating activities
|
7,437
|
|
(10,089)
|
Cash flows from
investing activities:
|
|
|
|
Acquisition of
business, net of cash acquired
|
—
|
|
(99,568)
|
Internal use software
capitalization
|
(7,795)
|
|
(6,975)
|
Purchase of property
and equipment
|
(395)
|
|
(282)
|
Withdrawal of
short-term bank deposits
|
10,000
|
|
—
|
Increase in
deposits
|
77
|
|
38
|
Net cash provided by /
(used in) investing activities
|
1,887
|
|
(106,787)
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from
loans
|
20,000
|
|
9,000
|
Repayment of
loans
|
(20,000)
|
|
—
|
Payment of SPAC merger
transaction costs
|
—
|
|
(3,185)
|
Proceeds from exercise
of options
|
772
|
|
817
|
Net cash provided by
financing activities
|
772
|
|
6,632
|
Increase (decrease) in
cash, cash equivalents, and restricted cash
|
10,096
|
|
(110,243)
|
Cash, cash equivalents,
and restricted cash at the beginning of the period
|
37,971
|
|
157,158
|
Cash, cash
equivalents, and restricted cash at the end of the
period
|
$
48,067
|
|
$
46,915
|
Supplemental
disclosure of cash flows activities:
|
|
|
|
(1) Cash paid during
the period for:
|
|
|
|
Income taxes paid, net
of tax refunds
|
$
1,129
|
|
$
727
|
Interest
|
$
1,141
|
|
$
371
|
(2) Non-cash
transactions:
|
|
|
|
Business combination
consideration paid in stock
|
$
—
|
|
$
47,152
|
Reconciliation of
cash, cash equivalents, and restricted cash reported within the
condensed consolidated balance sheets
|
|
|
|
Cash and cash
equivalents
|
47,680
|
|
46,509
|
Long-term restricted
deposits
|
387
|
|
406
|
Total cash, cash
equivalents, and restricted cash shown in the condensed
consolidated statements of cash flows
|
$
48,067
|
|
$
46,915
|
Key Metrics and Non-GAAP Financial Measures
In addition to our results determined in accordance with
US GAAP, we believe that certain non-GAAP financial measures,
including Adjusted earnings before interest, taxes, depreciation
and amortization ("EBITDA"), Adjusted EBITDA Margin and Free Cash
Flow are useful in evaluating our business. 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 GAAP.
Adjusted EBITDA
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
(in
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net loss
|
$
(2,731)
|
|
$
(11,832)
|
|
$ (30,253)
|
|
$
(14,981)
|
Net loss
margin
|
(8) %
|
|
(34) %
|
|
(30) %
|
|
(16) %
|
Depreciation,
amortization and long-lived assets impairment
|
4,714
|
|
1,882
|
|
8,808
|
|
3,481
|
Goodwill
impairment
|
—
|
|
—
|
|
14,503
|
|
—
|
Stock-based
compensation
|
5,605
|
|
4,322
|
|
15,563
|
|
10,052
|
Finance (income)
expenses, net (a)
|
(290)
|
|
4,962
|
|
(3,013)
|
|
(10,655)
|
Transaction related
expenses (b)
|
—
|
|
—
|
|
—
|
|
392
|
Acquisition related
expenses (c)
|
—
|
|
—
|
|
—
|
|
4,971
|
Retention bonus
expenses (d)
|
119
|
|
1,290
|
|
564
|
|
2,290
|
Legal claims
|
420
|
|
664
|
|
1,076
|
|
1,099
|
Severance cost
(e)
|
—
|
|
—
|
|
845
|
|
—
|
Other
|
(80)
|
|
739
|
|
192
|
|
915
|
Taxes on
income
|
(1,301)
|
|
839
|
|
2,858
|
|
634
|
Adjusted
EBITDA
|
$
6,456
|
|
$
2,866
|
|
$
11,143
|
|
$
(1,802)
|
Adjusted EBITDA
margin
|
17.8 %
|
|
8.3 %
|
|
11.0 %
|
|
(1.9) %
|
|
|
(a)
|
Finance income, net
consists mostly of remeasurement related to revaluation of our
warrants, remeasurement of our foreign subsidiary's
monetary assets, liabilities and operating results, and our
interest expense.
|
(b)
|
Transaction related
expenses consist of costs related to the SPAC merger
transaction.
|
(c)
|
Acquisition related
expenses consists of professional fees associated with the
acquisition of TVS.
|
(d)
|
Retention bonus
expenses consists of retention bonuses for TVS
employees.
|
(e)
|
Severance cost is
related to the personnel reductions that occurred during the first
quarter of 2023.
|
Free Cash Flow
We define Free Cash Flow as net cash provided by operating
activities less capital expenditures.
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net cash provided by
operating activities
|
6,489
|
|
5,812
|
|
7,437
|
|
(10,089)
|
Capital
expenditures
|
(2,410)
|
|
(3,520)
|
|
(8,190)
|
|
(7,257)
|
Free Cash
Flow
|
$
4,079
|
|
$
2,292
|
|
$
(753)
|
|
$
(17,346)
|
Operational Metrics
In addition, Innovid's management considers the number of core
clients, annual core clients retention and annual core
clients net revenue retention in evaluating the performance of the
business. These metrics are reported annually. Prior to our
acquisition of TVS in 2022, our definition of a core client
included only advertisers that generated at least $100,000 revenue in a twelfth-months period.
Following our acquisition of TVS, we have included publishers as
core clients.
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SOURCE Innovid LLC