Innovid, an independent connected TV (CTV) ad serving platform, achieved a revenue of USD 34.5 million (4% YoY growth) during Q2 2023, above management and analyst expectations. The majority of the growth was accounted for by the CTV segment, which accounted for 51% of the volume of all video ad impressions and contributed to 39% of its top-line revenue. In addition, its ad measurement unit, CTV Squared, which the firm acquired in Q1 2022 , contributed USD 7.9 million to top-line performance, which accounted for 23% of total revenue.

Innovid’s adjusted EBITDA was USD 4.5 million for Q2 2023 marking a substantial upturn from the USD 1.7 million loss in Q2 2022 and exceeding management expectations ,  which resulted in a notable 13% adjusted EBITDA margin. The firm also reported a net loss of USD 0.14 per share, compared to a net loss of USD 0.03 per share the previous year. This was primarily due to a USD 14.5 million one time non-cash goodwill impairment expense during the quarter.

The company upgraded its full-year 2023E revenue guidance to range from USD 132 million–USD 136 million. Additionally, it raised its positive adjusted EBITDA, targeting a margin of 10%, a significant increase from the previous 5%. 

Analyst QuickTake: Innovid appears to have bolstered its EBITDA performance through a multifaceted approach, including , notable cost reductions via a 24% workforce cut and tech-driven efficiencies during the quarter, as well the realization of synergies from its acquisition of TvSquared were instrumental. Strategic alliances with industry leaders like NBCU Universal and Disney drove revenue growth, while integrating generative AI into workflows enhanced campaign performance. These efforts collectively drove an impressive EBITDA improvement for the quarter.