Accessibility Statement Skip Navigation
  • Resources
  • Investor Relations
  • Journalists
  • Agencies
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • Arabic
      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Explore Our Platform
  • Plan Campaigns
  • Create with AI
  • Distribute Press Releases
  • Amplify Content
  • All Products
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Hamburger menu
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • Explore Our Platform
  • Plan Campaigns
  • Create with AI
  • Distribute Press Releases
  • Amplify Content
  • All Products
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS

Innovid Reports Q3 2023 Financial Results

Innovid. (PRNewsFoto/Innovid)

News provided by

Innovid LLC

Nov 08, 2023, 07:30 ET

Share this article

Share toX

Share this article

Share toX

  • 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
[email protected]      

Media Contacts
Megan Garnett Coyle
megan@innovid.com

Caroline Yodice
[email protected]

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.

SOURCE Innovid LLC

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

icon3
440k+
Newsrooms &
Influencers
icon1
9k+
Digital Media
Outlets
icon2
270k+
Journalists
Opted In
GET STARTED

Modal title

Contact PR Newswire

  • Call PR Newswire at 888-776-0942
    from 8 AM - 9 PM ET
  • Chat with an Expert
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices

Products

  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • All Products

About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • Accessibility Statement
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Italy
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United Kingdom
  • Vietnam

My Services

  • All New Releases
  • Platform Login
  • ProfNet
  • Data Privacy

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact PR Newswire

Products

About

My Services
  • All News Releases
  • Platform Login
  • ProfNet
Call PR Newswire at
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookies
Copyright © 2025 Cision US Inc.