Innovid Corp (CTV) Reports Solid Q4 and Full-Year 2023 Financial Growth
Q4 Revenue Growth: Increased by 15% year-over-year to $38.6 million.
Full-Year Revenue: Rose to $140 million, a 10% increase from the previous year.
Adjusted EBITDA: More than doubled in Q4 to $8.3 million, representing a 21% margin; full-year Adjusted EBITDA reached $19.4 million.
Net Loss Improvement: Q4 net loss improved to $1.7 million; full-year net loss was $31.9 million.
Free Cash Flow: Achieved a positive free cash flow of $1.4 million for the full year.
Financial Outlook: Innovid anticipates continued revenue growth and margin expansion in 2024.
On February 27, 2024, Innovid Corp (NYSE:CTV) released its 8-K filing, announcing its financial results for the fourth quarter and full fiscal year ended December 31, 2023. The company, which provides a software platform for ad serving, measurement, and creative services across connected TV, mobile TV, and desktop TV environments, has reported a year of solid growth and financial performance.
In the fourth quarter, Innovid Corp (NYSE:CTV) saw its revenue grow to $38.6 million, a 15% increase compared to the same period in the previous year. This growth was driven by a 14% increase in CTV revenue from Ad Serving and Personalization, which reached $14.2 million, and a 14% increase in Measurement revenue, contributing $8.6 million. The company's net loss for the quarter improved to $1.7 million, down from a net loss of $3.4 million in Q4 2022. Adjusted EBITDA more than doubled to $8.3 million, with a margin of 21%.
For the full year, Innovid Corp (NYSE:CTV) reported a revenue increase to $140 million, marking a 10% growth from the previous year. The company's CTV revenue from Ad Serving and Personalization grew by 9% to $53.2 million, while Measurement contributed $31.8 million, accounting for 23% of the total revenue. The net loss for the year was $31.9 million, compared to $18.4 million in 2022. However, the Adjusted EBITDA saw a significant increase to $19.4 million, representing a 14% margin. Operating cash flow was positive at $12.4 million, compared to a cash use of $11.6 million in the previous year. The company also achieved a positive free cash flow of $1.4 million, a substantial improvement from a use of $22.0 million in 2022.
Financial Performance Analysis
Innovid Corp (NYSE:CTV)'s performance in 2023 demonstrates the company's ability to grow its revenue streams and improve its profitability metrics, such as Adjusted EBITDA. The company's focus on connected TV advertising and measurement services aligns with the industry's shift towards streaming and digital platforms, positioning Innovid for continued growth in a rapidly evolving media landscape.
The improvement in net loss and the achievement of positive free cash flow are particularly noteworthy, as they indicate a strengthening financial position and the potential for sustainable growth. The company's cash and cash equivalents also increased to $49.6 million as of December 31, 2023, providing a solid liquidity foundation for future investments and operations.
Innovid's financial outlook for 2024 suggests confidence in its business model and market opportunities, with expected revenue growth of 10% to 16% and Adjusted EBITDA in the range of $22 million to $28 million. These projections reflect the company's strategic initiatives and the anticipated continued demand for its advertising technology solutions.
In conclusion, Innovid Corp (NYSE:CTV)'s latest earnings report underscores its successful navigation through the dynamic media industry, with a clear trajectory for growth and profitability. As the company capitalizes on the shift to streaming and digital advertising, it remains a compelling entity for investors interested in the media and technology sectors.
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Explore the complete 8-K earnings release (here) from Innovid Corp for further details.
This article first appeared on GuruFocus.
