Executive Summary

Q4 2023 revenue was $38.6M (+15% YoY) and Adjusted EBITDA was $8.3M (21.4% margin), both above guidance; GAAP net loss improved to $1.7M and EPS was $(0.01). Management cited a stabilizing ad spend environment, continued shift to CTV, and stronger measurement usage as drivers .
Mix and KPIs strengthened: measurement represented 22% of revenue, CTV impressions rose 16% YoY, and CTV’s share of total video impressions reached 52% in Q4 .
2024 outlook introduced: Q1 revenue $34–36M and Adjusted EBITDA $3–4M; FY 2024 revenue $154–162M and Adjusted EBITDA $22–28M, reflecting a plan for profitable growth and margin expansion .
Strategic catalysts include Disney’s real-time creative optimization powered by Innovid technology, expanding AI-driven optimization, and tailwinds from live sports migrating to streaming platforms .
Street consensus from S&P Global was unavailable; results are assessed versus company guidance. Management emphasized “beating guidance for both revenue and adjusted EBITDA” in Q4 and FY 2023 .

What Went Well and What Went Wrong

What Went Well

Revenue momentum and profitability: Q4 revenue +15% YoY to $38.6M and Adjusted EBITDA up to $8.3M (21.4% margin) with positive free cash flow; “we exceeded our revenue and Adjusted EBITDA guidance” .
Measurement adoption: InnovidXP grew 14% in Q4 and represented 22% of revenue, supporting a more diversified mix and recurring SaaS-plus-usage economics .
CTV mix and volume: CTV revenue within ad serving/personalization grew 14% YoY; CTV impressions +16% YoY and 52% of total video impressions, underscoring secular shift to CTV .

What Went Wrong

GAAP losses persist: Q4 GAAP net loss was $1.7M and FY 2023 net loss was $31.9M (including prior non-cash impairments), reflecting remaining non-GAAP adjustments and costs .
Vertical unevenness: Finance, tech, and insurance remain soft; strength observed in CPG and pharma, indicating an uneven ad recovery by sector and potential sensitivity to macro/election seasonality .
Mobile/desktop inconsistency: While Q4 saw healthier mobile growth (+21%) and modest desktop growth (+5%), management noted broader inconsistency across earlier quarters, highlighting lingering demand variability .

Financial Results

Metric	Q2 2023	Q3 2023	Q4 2023
Revenue ($USD Millions)	$34.5	$36.2	$38.6
Net Loss ($USD Millions)	$(19.0)	$(2.7)	$(1.7)
GAAP Diluted EPS ($USD)	$(0.14)	$(0.02)	$(0.01)
Adjusted EBITDA ($USD Millions)	$4.5	$6.5	$8.3
Adjusted EBITDA Margin %	13.1%	17.8%	21.4%

Segment/Mix and KPIs

Metric	Q4 2023
Ad Serving & Personalization (% of revenue)	78%
Measurement (% of revenue)	22%
Measurement Revenue ($USD Millions)	$8.6
CTV Revenue (Ad Serving & Personalization) ($USD Millions)	$14.2
Total Video Impressions Growth YoY (%)	+16%
CTV Impression Volume Growth YoY (%)	+16%
CTV Share of Total Video Impressions (%)	52%
Mobile Video Volume Growth YoY (%)	+21%
Desktop Video Volume Growth YoY (%)	+5%

Notes:

CEO referenced “approximately $39 million” Q4 revenue in prepared remarks; press release and financial statements show $38.6M (rounding difference) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	Q4 2023	$35–$37	Actual $38.6	Raised vs guidance (beat)
Adjusted EBITDA ($USD Millions)	Q4 2023	$5.5–$7.5	Actual $8.3	Raised vs guidance (beat)
Revenue ($USD Millions)	Q1 2024	N/A	$34–$36	New
Adjusted EBITDA ($USD Millions)	Q1 2024	N/A	$3–$4	New
Revenue ($USD Millions)	FY 2024	N/A	$154–$162	New
Adjusted EBITDA ($USD Millions)	FY 2024	N/A	$22–$28	New

No guidance provided for OpEx, OI&E, tax rate, or dividends in the reviewed materials .

Earnings Call Themes & Trends

Topic	Q2 2023 (Q-2)	Q3 2023 (Q-1)	Q4 2023 (Current)	Trend
AI/Optimization	Introduced AI and Instant Optimization roadmap; tying measurement outcomes to creative optimization; generative AI workflow plans	Launched Instant Optimization; integrated generative AI engines into platform (images/video/VO/copy)	2024 “year of optimization”; Disney live real-time creative optimization; broader AI-driven features in beta/GA	Accelerating productization and partnerships
Measurement (InnovidXP)	23% of revenue; NBCU and Disney partnerships fueling growth	23% of revenue; strong recurring + usage economics	14% growth in Q4; 22% of revenue; SaaS + usage model emphasized	Stable to improving mix and growth
Macro/ad spend	CTV secular tailwind vs uneven spend; cautious 2H outlook	Cautiously optimistic; raised FY guidance; vertical divergence	Q4 stabilization carrying into Q1; strength in CPG/pharma, softness in finance/tech/insurance	Gradual stabilization, uneven by vertical
Live sports streaming	Opportunity to optimize and handle high concurrency; partner history (Olympics)	Highlighted sports as accelerant for CTV adoption	ESPN/Fox/WBD JV noted; live sports a catalyst for CTV ad migration	Strengthening tailwind
Competition (Google)	Emphasized independence and data positioning; expansion with major brands	Optimization moat messaging	CEO frames Google focus shifting; data/neutrality advantage; client strategy to own data	Favorable positioning vs walled gardens
Identity/Cookies	Innovid Key household graph; CTV not cookie-dependent; fragmentation increases platform need	—	Chrome cookie deprecation impact limited in CTV; Innovid’s direct household link	Low risk; potential relative advantage
Supply Path Optimization (SPO)	Exploring CTV SPO to reduce cost/carbon; platform visibility across stack	—	Continued focus as part of optimization agenda	Under evaluation; potential efficiency lever
Retail media/SMB	Retail media partnerships, shoppable ads potential; focus on large brands (bulk of spend)	—	Composer self-serve launched; SMB adoption likely via platforms; large brand focus near-term	Strategic but secondary near-term

Management Commentary

“We’re very proud to close out a transformational year…We exceeded our revenue and Adjusted EBITDA guidance, demonstrated sequential improvement each quarter, and generated positive free cash flow for the year.” — Zvika Netter, CEO .
“Q4 revenue grew 15% year-over-year to $38.6 million…ad serving and personalization revenues were up 15%…measurement revenue grew 14%…Adjusted EBITDA…21% margin.” — Anthony Callini, CFO .
“2024 is absolutely going to be the year of optimization and data-driven algorithmic optimization across the board…Disney…introduced the dashboard for real-time creative optimization powered by Innovid.” — Zvika Netter, CEO .
“We expect Q1 total revenue in the range of $34–$36 million…Q1 Adjusted EBITDA $3–$4 million…For the full year, revenue of $154–$162 million and Adjusted EBITDA between $22–$28 million.” — Anthony Callini, CFO .

Q&A Highlights

Near-term demand: Q4 stabilization carrying into Q1; midpoint implies ~15% YoY growth; strength in CPG/pharma vs softness in finance/tech/insurance .
Optimization economics: Disney real-time creative optimization drives increased measurement usage with SaaS base plus usage kicker; additional optimization features in beta during 2024 .
Cookie deprecation: Minimal impact on CTV; Innovid’s direct ad streaming and household identity (Innovid Key) in fragmented, walled-garden ecosystem .
Competitive landscape: Independence and data stewardship viewed as strategic advantage vs Big Tech; reported reduced Google sales/marketing focus could aid Innovid’s share gains .
Measurement drivers: Base SaaS growth plus usage uplift; tighter bundling of ad serving and measurement supports adoption and usage .

Estimates Context

S&P Global/Capital IQ consensus for Q4 2023 EPS and revenue was unavailable via our data integration, so comparisons to Street estimates cannot be provided at this time. Results are assessed versus company guidance and actuals .
Actuals vs Company Guidance (Q4 2023): Revenue $38.6M vs $35–$37M (beat), Adjusted EBITDA $8.3M vs $5.5–$7.5M (beat) .

Key Takeaways for Investors

Execution improving: Sequential margin expansion throughout 2023 and positive free cash flow signal operating leverage; Q4 Adjusted EBITDA margin reached 21.4% .
Mix upgrade: Measurement at 22% of revenue with SaaS-plus-usage model enhances durability and gross margin scale potential .
Secular CTV tailwind: CTV impressions +16% YoY; live sports moves and new ad-supported offerings (e.g., Amazon Prime Video ads) support volume and monetization growth in 2024 .
Product catalysts: Disney real-time optimization and broader AI features should lift usage and cross-sell; watch for further optimization launches in 2024 .
Near-term trading lens: Momentum from guidance beats and 2024 outlook could be supportive; monitor vertical recovery breadth (finance/tech/insurance) and election-year spend dynamics .
Medium-term thesis: Independence and data positioning vs walled gardens, measurement scale, and optimization flywheel point to sustainable profitable growth; management targets longer-term ~30% Adjusted EBITDA margins .
Risk checks: Continued GAAP losses, macro unevenness, and execution on optimization/SPO initiatives remain watch items; non-GAAP adjustments (impairments, stock comp, legal/severance) are material to GAAP results .

Appendix note on non-GAAP: Adjusted EBITDA excludes depreciation/amortization, impairments, stock-based comp, finance items, transaction/acquisition/retention costs, legal/severance/other, and taxes; reconciliation provided in 8-K .

Innovid Corp. (CTV)·Q4 2023 Earnings Summary