Nexxen International Ltd. Ordinary Shares Canaccord Genuity's 46th Annual Growth Conference

Yeah, it's a great question. We have an incredible leadership team at Nexxen across the board. The seat that I vacated, the Chief Commercial Officer, our former Chief Customer Officer, Kara Puccinelli, will step into that role, and she'll oversee our enterprise business. Former Chief Strategy Officer, Ken Suh, will step into the Chief Business Officer role, and Ken's primary responsibility is to focus on growing the exchange business as well as our CTV partnerships. As we've brought together so many different elements of the advertising ecosystem, the buy side, the sell side, the data side, a lot of what I'm going to be doing day to day is focused on how all of those pieces can work in concert to help our customers. What we've introduced to the market as a full end-to-end tech stack is still relatively new.

There's not a lot of companies that have robust capabilities on both sides. I spend a lot of my time propagating not just what we are, but why we are and the value it can bring to our customers, whether they are on the buy side or the sell side, or somewhere in between.

Yeah, absolutely. It was a great quarter for us in Q2. We increased our Contribution ex-TAC by 11% year over year, which was a Q2 record for us. Programmatic revenue grew a little bit faster, 12% year over year. The standout for us this quarter was CTV, though. It was the best CTV revenue quarter in our company's history. We grew 33% year over year there, and really, it's a byproduct of a lot of the things that we've been talking about and working on strategically for the last several years, expanding our enterprise customer mix, getting customers to utilize more solutions within the platform. A lot of that is begetting the success that we're seeing across some of our other growth drivers, like CTV and mobile in-app.

In addition to the quarter, this was actually the third time that we were able to raise our top-line guidance this year, where we increased both Contribution ex-TAC and programmatic revenue for the third time. When you think about where we started the year, when we issued initial guidance in March, we guided to 8% net revenue growth, which now we're up into the 12% net revenue growth. It's a really exciting time for our business, and in addition to really seeing the growth engine moving, we're investing around the opportunities ahead in AI and data and go-to-market execution. We're feeling very strongly about the success that we've been seeing in the business, and some of the commercial positioning updates that we've made will help us continue to keep that engine running.

Yeah. I'm very happy to. If you think of it just logically, it's much easier to work with one company than it is three companies, especially when you think about the amount of logins and the amount of time it takes for an individual or a team of individuals to set up and activate an advertising campaign. It's not just the fact that we're time-saving, we can also provide cost savings and better performance. Rather than pay three different companies, you can work with us. We can give you much more transparency and commercial incentives so that if you're using our DSP, we'll give you an incentive to buy from our supply. We'll give you an incentive to use our data. And we're being very transparent with our customers about where their money is going, and that's something that is relatively new to this market.

Advertisers really wonder how much of their working investment is actually getting to the actual advertising. And in a lot of cases, for our industry, it's not as much as they'd like. So for us to be able to shine a light on that, it provides a lot of value. But the most important thing, cost savings is nice, but when these three technologies work in concert the way they do and all integrated into one tech foundation, it just performs better. So they see much better results, they see lower costs, and time efficiency of having to work with just one partner instead of three-plus.

We joke that the only certainty this year has been macro uncertainty. Unlike previous years, what we are really seeing is advertisers being much more resilient. They have experienced this volatility. Certainly earlier in the year, there was a tremendous amount of it. It has ebbed and flowed, but we are seeing pretty consistent budgets over the year. The one big trend that we are seeing, and I think why Nexxen is very well-positioned, is the decline in open web display traffic. Certainly the advance of LLMs and ChatGPT, you do not need to browser on the web to 20 different pages to find your answer or to find your recipe. You can get it in one stop. While we are seeing open web decline, we are seeing growth in other areas. Thankfully, we have invested for years in CTV, which is a huge growth driver.

We are seeing a lot more investment going into the CTV space as well as the native home screen space, which we are well-positioned, but also in mobile in-app. These are areas that are very AI resilient, and it is a big part of the growth that we are seeing. As Billy Eckert mentioned, the meaningful year-on-year growth in CTV of 33%-plus is an indication that we are positioned to be able to capture more of the money as the ecosystem shifts around.