Innovid Corp. (NYSE:CTV) Q4 2022 Earnings Call Transcript

Tal Chalozin: Sure. Thanks again, for the question, Shyam. First of all, I think you hit a very important point that when we do talk to investors, there’s a big confusion on this point around walled garden and the fragmentation of the connected television space. The market is extremely fragmented by many large players such as Amazon, YouTube, Roku, and many other any other kind of newcomers to the advertising space, Netflix, and Disney Plus, all of them are behaving in somewhat of a walled garden and to your point, creating their own identify or creating their own ways to insert data and extract data out. So we think that the market is amazing. We fragmented, this is why we think that a strong software platform that helps orchestrate media in the streaming space is mandatory for marketers.

To your point about identifiers, we did share in the past, our heavy investments in products, so we call it the key part of InnovidXP, which is doing exactly what you just described. We don’t believe that the industry needs yet another identifier, because there are many out there and the market will become even more fragmented. So what we think is there’s a need for a spine that connects all of those identifiers in the best way possible, and allow marketers to just traverse the industry and deliver the right message to everyone and collect as much data out. And this is what we’re doing in partnership with many of the names that I mentioned. And we will continue to push on that front.

Shyam Patil: And can you guys talk a little bit more about your measurement offering? And what like just — what kind of uptake or kind of new business activity you expect in a software mapping? Is this something that encourages kind of facilitate adoption because of the need for greater efficiency and effectiveness? Is it or is it more of an additional kind of add on that maybe it’s impacted by the macro in a more negative way? So how do you guys think about the measurement offering that you guys have and how the current macro will be impacted?

Zvika Netter: Sure. I mean, the answer is yes and yes to those questions. And I’ll explain the — we are absolutely seeing the decision to acquire TVSquared exactly a year-ago, in a significant transaction for Innovid immediately post-IPO was a very strategic long-term move for us. Because what we heard from our customers is that the need to better understand how television performs versus CTV. So not just looking at CTV as a standalone, kind of almost connected to your question on identity and household identity. So the ability to see the entire household and saying, X percent, let’s say 70% is watched on linear and 30% watch on connected TV. When you’re moving tens of billions of dollars from one site to another, really critical to see the entire picture.

So for us, combining our excellence in CTV measurement and TVSquared, TV measurement combined, created a very unique offering. So from the market acceptance perspective, and we’re not surprised by it because we heard the customers before we made the transaction. So we’re definitely seeing we’re happy with the acquisition, with integration. And the level of adoption we’ve seen is actually from a revenue perspective, definitely around the number we expected to see this year. And it this is a journey. These things — measurement is a major play, and it takes years to build attraction, the adoption and the acceptance because — some of it is science, some of it’s almost art. The — as when we — so from that perspective, strategically, we’re extremely happy with this and we’re happy with the results and we’re definitely seeing adoption.