Nexxen International Ltd. Ordinary Shares Citi Global TMT Conference

Thank you so much for being here today. Let's dive right in. Okay.

Nexxen has spent several years integrating assets and building this unified platform with both an SSP and a DSP. As we talked about at your Analyst Day, momentum has really picked up. Nexxen has raised full-year guidance 3 times. Why is the market more receptive now to your unified kind of end-to-end model versus several years ago? How does consolidating demand, supply data help Nexxen capture more value and lower customer cost? Loaded question, but I wanted to really get started off right.

Sure. No problem. Thanks for having me. I think that, as you said, in the last couple of years, we integrated and consolidated different companies. We acknowledge back in 2019 even, that going end-to-end probably is making the more sense economically and for the clients and our publishers. I know that there are still some companies that are one-sided and saying that they will not go dual-sided because of transparency and conflict of interest and other than that. Having said that, we are going that direction. I think that it took us a while in order to put everything in place, sunset some of the assets, putting everything on the same infrastructure and refine our offering in order for the market to acknowledge and understand exactly what we are offering and what we are doing.

I think that it's making sense because at the end of the day, if you are controlling the full funnel, you are really controlling everything you are doing for both of your partners, i.e. the publishers, the broadcasters, the apps or the clients, which can be agencies, DSPs, direct clients, and other. I think sitting on one infrastructure and having a full functional DSP and a full functional SSP, and in the middle, controlling the DMP, which is being leveraged by first-party data of the demand-side partners and first-party data coming from the supply-side partners and our own exclusive ACR data and other 70 different data publishers that are connected into our own DMP, is making the efficiency and the life of all of our partners much easier.

Instead of getting an activation partner, which is only a DSP, and utilize only that, with us, we are getting a technology partner, which is answering all the full funnel of their ask. We are doing discovery, we are doing planning, we are doing activation, we are doing optimization, we are doing measurement. Without the technology stack and the end-to-end abilities, we couldn't do that. This is the reason I think that now enterprise clients are moving towards us much more because they acknowledge that they need a technology partner and not only an activation partner. They understand the level of efficiency we are getting from working on our end-to-end platform. I give you a good example. For example, Toyota onboarded our platform in early 2025. At the beginning, they were only using our DSP. They did well. They were happy from the performance, from the metrics they got, and from the measurements that they had.

But after that, I think it was Q3 2025, we managed to make them understood that they should utilize more than the DSP itself. They should utilize our data and our SSP and our premium inventory and exclusive inventory. They did that, and what happened? In the 12 months after, they lowered their cost per vehicle by 62%. They are paying only 38% right now in order to get the same result they got before. Their return on advertising spend went up by more than 2.5 times. This is an example of showing you why utilizing everything on the same infrastructure is giving you a lot of advantages when you are utilizing that. I think this is where the market is.

This is what now enterprise clients are acknowledging, and probably there will be a question on AI. I will make sure you understand why AI now is doing all of that much bigger and much streamlined.

Toyota was a good example. First of all, so many things to touch on there. Toyota is a great example of kind of the enterprise focus, which is now your primary go-to-market motion. Your enterprise spend grew 25%, advertisers activated through enterprise customers now over 750, right? As the DSP has historically been Nexxen's entry point into these new kind of enterprise relationships, how has that go-to-market motion evolved to win these larger agencies and brands? How do you move customers up the value chain from DSP onboarding to becoming just a more core technology partner?

Okay, that is a good one as well. I think at the beginning, when we are pitching on the demand side to our enterprise client or independent agencies or whoever, direct clients as well, we understand that the DSP is the entry point into our full ecosystem. This is what we are looking for. At the end, when we are looking for something, they understand that they need someone to activate their campaigns and bring them the desirable action and to get to the audience that they are looking for. Having said that, they are onboarding, and the flow is like, we are pitching, and they are onboarded into the system. It is taking around between 3 to 6 to 9 months in order to expand, get the right confidence, understand how the ecosystem is working.

After they are acknowledging that, there is no reason why not do everything through the same entry point. It is very easy without doing anything now to buy Inventory over Nexxen SSP. It is very easy, without doing anything, to utilize exclusive data and a lot of data discovery and data audience through our DMP. It only makes sense that when they are onboarded, they are utilizing a very small portion of our abilities. Over time, when we are getting the confident and we are seeing the metrics and the KPIs that are being met, they are moving up the ladder in order to get the full functionality of the ecosystem. Then they are acknowledging that the efficiency that we are getting, as in the Toyota example, is much higher than they can get only if utilizing part of the ecosystem.

Make sense. On that kind of end-to-end expansion, your long-term target there in terms of makes is 65%, as everyone knows. As you continue to add more capabilities and improve the economics for these customers that have 35% better performance with end-to-end relationships, how do you think about customers consolidating increasingly more activity on your platform and gaining share relative to peers?

I think that within the question you have the answer. First of all, you just mentioned that most of our clients are transparent with us. There is almost no one client that is utilizing only one DSP. Most of them are using at least two in order to benchmark and to understand what DSP is performing better, and that is fine. When we are finding that, of course, we are allocating more spend towards the winning DSP or the winning platform. I think that, as you mentioned, an average of our clients are doing better 35% on performance when they are utilizing our ecosystem. That means either they can take 35% less or buy less media, or they can get much more with the same budget that we are spending somewhere else. I think the answer is there.

When people are acknowledging that and they understand that the efficiency and the KPIs and the metrics that we are looking for is much more positive on our platform, we are allocating more and more towards our platform. I think that we are seeing a shift and a move from managed campaign that were the majority, I don't know, 10 years ago, of course, to now enterprise or what we are calling self-serve clients. We have in the middle even another layer which we are calling hybrid clients, because the movement from managed into self-serve is not easy for anyone. So we are offering a level of service that is higher than the self-serve, but as transparent as the self-serve. For that, they are paying somewhere between managed to self-serve activation. We are seeing a lot of movement from managed clients into this hybrid model.

From the hybrid model, it's much easier for them to go to the self-serve or to the enterprise solution.