Tremor International (NASDAQ: NEXN)Q4 2024 Earnings CallMar 05, 2025, 9:00 a.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Welcome to Nexxen's fourth-quarter earnings call. At this time, participants are in a listen-only mode with a question-and-answer session to follow at the end of the presentation. This call is being recorded, and a replay of today's call will be made available on Nexxen's investor relations website. I will now hand the call over to Billy Eckert, vice president of investor relations, for introductions and the reading of Safe Harbor Statement.

Billy, please go ahead.

Billy Eckert -- Senior Director, Investor Relations

Thank you, operator. Good morning, everyone, and welcome to Nexxen's fourth-quarter earnings call. During today's call, we will discuss our financial and operating results for the three and 12 months ended December 31st, 2024 as well as our forward-looking guidance. With us on today's call are Ofer Druker, Nexxen's chief Executive officer; and Sagi Niri, the company's chief financial officer.

This morning we issued a press release which you can access on our IR website at investors.nexxen.com. During today's conference call, we will make forward-looking statements. All statements other than statements of historical fact could be deemed as forward-looking. We advise caution in reliance on forward-looking statements.

These statements include, without limitation, statements and projections regarding our anticipated future financial and operating performance, market opportunity, growth prospects, strategy, financial outlook, partnership and anticipated benefits related to those partnerships, anticipated benefits related to the recent changes in the company's trading security structure, anticipated benefits related to the company's intended growth and platform investments, forward-looking views on macroeconomic and industry conditions, as well as any other statements concerning the expected development, performance and market share, or competitive performance relating to our products or services. All forward-looking statements are based on information available to us as of the date of this call. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those implied by these forward-looking statements, including unexpected changes in our business or unexpected changes in macroeconomic or industry conditions. More detailed information about these risk factors and additional risk factors are set forth in our filings with the US Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled Risk Factors in our most recent annual report on Form 20-F.

Nexxen does not intend to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in IFRS and non-IFRS terms. We refer you to the company's press release for additional details, including definitions of non-IFRS items and reconciliations of IFRS to non-IFRS results. At this time, it is my pleasure to introduce Ofer Druker, CEO of Nexxen.

Ofer, please go ahead.

Ofer Druker -- Chief Executive Officer

Thanks, Billy. Q4 capped off an incredible year for Nexxen as we generated record quarterly and annual contribution ex-TAC, programmatic revenues, and CTV revenue results, alongside significantly expanded profitability. Our success in 2024 was a byproduct of getting back to basics after completing the integration of Amobee in 2023. We focused on driving stronger sales execution, installing key talent, simplifying our messaging, boosting our brand recognition and organic product and data innovation.

Our achievements on these fronts fueled strong results and, alongside our planned AI innovation, position us for continued market share gains in 2025 and beyond. Following these improvements, we have consistently received validation from the market that our year-long strategy, to operate an end-to-end platform, connect our data platform to our tech stacks, and enrich its capabilities and focus on CTV and video, placed us well ahead of our peers. Since 2019, we have operated an end-to-end platform, which we believe give us a clear competitive edge as others in the industry are only now working to try unlocking the benefits of this approach. While one-sided peers are trying to replicate our model, we have an advantage of years of experience, serving advertisers, agencies, and digital publishers across the ecosystem, supported by our fully functional and robust DSP and SSP technologies.

Currently, we believe our DSP and SSP rank among the top in terms of scale and reach within the publicly traded open Internet ad tech space, especially in CTVs. Our end-to-end tech platform and operating models benefits customers by enabling enhanced results through access to robust targeting data alongside simplicity and cost efficiencies, while offering a larger TAM and growth opportunity for Nexxen compared to one-sided platforms. Customers can flexibly choose to work with us through one or more solutions enabling us to land and expand with partners. And throughout 2024, we were successful in growing relationship with existing customers, including several independent agencies and CTV OEMs like LG.

We generated significantly increased spend consolidation and multi-solution adoption, driven largely by our efforts to get all of our enterprise DSP customers to adopt Nexxen SSP as a preferred SSP, which fuel greater end-to-end revenue and, in turn, strong growth and expanded profitability in 2024. We entered the year with much stronger platform capabilities following the successful integration of Amobee in 2023. Amobee brought us powerful enterprise DSP capabilities, enhanced our data capabilities and bolstered our CTV and omnichannel offerings, the combination of which positioned us for deeper penetration with large customers, including independent agencies. As I will expand on later, we are enhancing our platform, data and technology capabilities, several steps further throughout 2025 by strategically deepening our AI capabilities and deploying generative AI innovation across our core products, building on our success and momentum from 2024.

We are confident that our planned AI initiatives in 2025 will make our platform's user interface more intuitive and easier to navigate, better linking customer results to the strength of our tech and data, reducing reliance on user sophistication and expanding our market opportunity. By unleashing and integrating generative AI across our core offerings, we will refine our audience-targeting precision and deepen the interconnectivity of our platform solutions, which we believe will generate even stronger returns for our customers and drive greater spend consolidation. We firmly believe these combined efforts will not only boost our standing within the industry but also accelerate our long-term growth, differentiation, and strategic value to industry leaders. The timing couldn't be more ideal to deepen our AI capabilities, having laid a strong tech and data foundation.

By integrating Amobee in 2023 and launching Nexxen Data Platform in 2024, the combination of which has propelled Nexxen into a new era of ad tech leadership and differentiation. Nexxen Data Platform is integrated with our DSP and SSPs and has become central to every key discussion with customers, partners, and the industry, while establishing us as the leading data first platform. The platform unifies all our data assets and capabilities, creating a wide range of interconnected and advanced data solutions working in synchrony to drive better results for our partners. Nexxen Data Platform features our proprietary audience discovery technology, unified ID graph, curated media capabilities, and robust TV focused data tools, highlighted by our exclusive access to VIDAA global ACR data and our TV intelligence solutions, which incorporates seven far-reaching TV data sources.

We believe this reflects one of the most comprehensive data offering in ad tech and it has tangibly fueled better returns on the advertising spend for our customers, greater confidence in our holistic solution, and ultimately, increased spend consolidation. Nexxen Data Platform is unique, enabling our customers to onboard first party data, enrich it with our powerful data sources and tools to extend audience reach, activate audiences on our DSPs and measure eliminating the need for other partners. With an open and scalable approach to data, our platform is also built to drive regardless of changes in the addressability landscape. We have generated early adoption from notable partners, while our ACR data exclusivity is driving more and more data licensing partnerships with major players in the industry like the Trade Desk and Takeda.

This highlights that Nexxen Data Platform is not only powering better results for Nexxen and its customers but also increasing our value and recognition across the ecosystem. In 2025, we will continue leading with Nexxen data platforms in our sales efforts and expect to build on the success we achieved in 2024 following the launch. Outside of our data platform release, our strong Q4 and full-year 2024 results were driven by CTV, one of our core peers where we expect to continue increasing our competitive advantage and growing our market share. Our years of focused investment in building an ecosystem designed to deliver better results for both advertisers and CTV publishers have positioned us for continued success.

Our platform unified CTV focused DSP, SSP, and TV data solutions enables seamless experience and better returns for our customers, creating a clear value proposition. CTV advertisers are seeking more direct relationships and integration with publishers to generate better returns on ad spend, while CTV publishers are seeking greater and unique advertising demand as well as solutions designed to maximize their revenue and efficiency. With our capabilities strongly positioned to achieve and enhance results on both fronts, our end-to-end CTV-focused platform is a perfect fit for both sides of the ecosystems, providing a larger CTV market and growth opportunity for Nexxen compared to one-sided peers. Additionally, our simplified messaging and stronger brand recognition has driven customers and new partners to recognize us more and more as a true CTV ad tech leader.

With billions of dollars in linear TV ad budget expected to migrate to digital over time, particularly as live sports shifts toward CTV, we believe we are well positioned for long term CTV revenue growth through our robust access to premium CTV and live sports inventory, alongside our CTV focused tech and data capabilities. We also anticipate more major CTV and streaming platforms will seek partnership with Nexxen going forward as the industry is recognizing the value that our collective solution can bring. Amidst strong execution on our strategy, in Q4, we added 112 new actively spending first time advertiser customers, including 18 new enterprise self-service DSP customers and three new independent agencies leveraging our self service solutions. We also added 73 new supply partners, including some of the industry's most well-known free ad supported streaming services.

In addition to our data and tech advancements, our success at tracking and onboarding new talent across our sales, marketing, and product teams at both senior and middle management level has positioned us strongly for future growth and accelerated innovation. We have continued to see an influx of talent eager to join Nexxen, including from peers and renowned industry leaders. In Q1, we also evolved our trading structure by streamlining to a single U.S. ordinary share listing on NASDAQ, which we believe enhance our long-term capital appreciation potential.

When we executed our secondary listing on NASDAQ in 2021, we were certain it would be in our best interest to eventually delist from AIM and move solely to the U.S. ordinary share listing. But before we could make these changes, we needed to accelerate our growth and await a stronger advertising environment for the move to be well received by investors. With these factors now aligned, we believe over time, these changes will increase our U.S.

investor footprint and recognition, drive greater liquidity, improve our screening on financial data platforms, and increase our eligibility for inclusion in select indices. Finally, as mentioned earlier, we are executing on a clear strategic vision to strengthen our platform by deepening our AI capabilities, inclusive of generative AI and machine learning. In 2025, we are launching our first material generative AI-driven innovations with new solutions rolling out in H1 and throughout the year. AI has been called to our platform for years.

By further scanning these capabilities through generative AI implementations across our vertically integrated platforms, we believe we will be able to deliver stronger performance, better operational efficiency, and cost saving for our customers across the key jobs of planning, activation, optimization, and monetization. Generative AI isn't a buzzword for us. Our end-to-end technology stack connected to a wealth of data enable us to unlock value for our customers through generative AI in ways one-sided solutions can't. This year, we are implementing AI-driven enhancement across our DSP, creative studio, and data platform audience creation and analytics capabilities focused on two key objectives.

The first is to simplify platform usability by deploying AI agent that we believe will lower barriers to entry, foster customer spending growth, and expand our market opportunity. These agents will provide real-time campaign optimization suggestions and integrate directly with our activation tools, driving better returns on ad spend, and widening our platform's utility to a larger base. The second objective is to optimize the use of our robust data sets, focusing specifically on enhancing our data and audience capabilities, which we believe will significantly improve targeting precision and reach and also lead to higher customer return and increased spending on our platform. While there is low-hanging fruits for us to achieve short term AI innovation wins, in other instances, our more complex initiatives will take time before we reap the full benefits of our investments.

That said, we are confident this enhancement will accelerate our long-term growth opportunity, make Nexxen a fundamentally stronger company, and solidify us as a strategic partner and platform of choice for industry leaders in the years to come. 2022 and 2023 were years of acquisition and integration. 2024 was focused on transformation, simplification, and innovation. And in 2025, we believe we are poised to achieve market share gain acceleration.

After years of enhancing our platform, business, and trading structure and simplifying our messaging, we are better positioned than ever to execute. Our strategy is resonating, and customers across the ecosystem are continuing to flock to Nexxen for our flexible platform data, CTV, video, and omnichannel capabilities, and we believe our AI investments will further advance our competitive edge, differentiation, and leadership position. I'm excited to continue supporting and driving innovation for our partners. And with that, I'm happy to turn the call to Sagi.

Sabi Niri -- Chief Financial Officer

Thank you, Ofer. Q4 was very strong for Nexxen as we exceeded the Rule of 50, generating 16% year-over-year contribution ex-TAC growth and an adjusted EBITDA margin of 42% on a contribution ex-TAC basis. In Q4, we generated contribution ex-TAC of $105.2 million, which reflected an all-time quarterly record. Programmatic revenue was $98.7 million in Q4, reflecting 15% growth from Q4 2023 and an all-time quarterly record, while contribution ex-TAC from our non-programmatic business lines increased $1.9 million year over year in Q4.

Growth in Q4 was driven by stronger sales execution following our recent platform, business and brand recognition enhancements, scaling partnerships, improved advertising conditions, particularly within the CTV market, greater multi-solution adoption by customers, and the U.S. election cycle. We observed strength in CTV, video, display, data products, self-service products, and PMPs and increases across most of our industry verticals with the largest increases observed in our government, retail, finance, automotive, health, and technology verticals. On the opposite side, we experienced a year-over-year decrease in mobile video revenue and within our travel and education verticals.

The majority of our contribution ex-TAC strength in Q4 was driven by CTV as we generated CTV revenue of $37 million, reflecting 86% growth from Q4 2023 and an all-time quarterly record as CTV revenue represented 38% of our programmatic revenue, up from 23% in Q4 2023. Our robust CTV revenue growth was attributable to a combination of factors. Those factors include stronger sales execution, better recognition within the CTV market following our rebranding to Nexxen and improved macroeconomic and industry environment, which drove new and existing customers to our premium CTV solutions, benefits related to our partnership with LG and tailwinds from the 2024 U.S. election cycle.

Our CTV revenue growth drove our video revenue to expand significantly as a percentage of programmatic revenue to 75% in Q4 2024 from 67% in Q4 2023 as CTV revenue growth substantially outpaced mobile video revenue decline. We've boosted our CTV and video capabilities over the last several years, and we'll continue investing in enhancing them further. As a result, we expect video revenue to remain a primary growth driver for Nexxen over time. We continue to see customers increasingly choosing to partner with us and allocating more budget toward our video solution as our data-driven video and CTV focused platform oftentimes drives better targeting, audience reach extension, and return on advertising spend than other platforms within the industry.

Elsewhere, contribution ex-TAC from display grew 9% year over year in Q4, while self-service contribution ex-TAC increased 21%, driven largely by strong growth within our enterprise DSP solution. Additionally, in Q4, contribution ex-TAC from PMPs grew 20%, and contribution ex-TAC from data products grew 102% year over year. The 2024 U.S. election cycle contributed approximately $6 million in political contribution ex-TAC in Q4 2024 and approximately $10 million for full-year 2024, reflecting new quarterly and annual political contribution ex-TAC records for Nexxen.

In Q4, we also generated adjusted EBITDA of $44.3 million, the second highest quarterly adjusted EBITDA in Nexxen's history, reflecting a 38% increase from Q4 2023. Our significant adjusted EBITDA growth was driven by higher contribution ex-TAC, greater customer spend consolidation, lower than expected cost in the quarter and customers increasingly adopting multiple solutions within our ecosystem, particularly as our enterprise DSP customers access more inventory through our SSP. Our adjusted EBITDA margin in Q4 increased to 42% as a percentage of contribution ex-TAC from 35% in Q4 2023, and we remain confident in our ability to continue expanding our adjusted EBITDA margins over time. In 2024, our contribution ex-TAC retention rate increased to 102% from 73% in 2023 amid greater customer spend consolidation and expanded multi-solution adoption, underscoring the benefits of the platform, sales teams, and brand enhancements we've made since the completed integration of Amobee and rebrand to Nexxen.

The increase was further supported by us proactively and strategically discontinuing relationship with smaller customers that were not generating significant revenue or profitability for Nexxen to sharpen our focus on better servicing and growing revenue relationships with larger customers. As a result of these combined factors, for full year 2024, our contribution ex-TAC per active customer increased to roughly $526,000, reflecting 69% growth from 2023. And we believe we remain well positioned to continue expanding our contribution ex-TAC retention rate over time. In Q4, we generated $52.3 million in net cash from operating activities compared to $43.6 million in Q4 2023.

As of December 31st, we had $187.1 million in cash and cash equivalents, $90 million undrawn on our revolving credit facility, and no long-term debt, following the full repayment of our approximately $100 million of pending principal long term debt balance in April 2024. We also reported non-IFRS diluted earnings per ordinary share of $0.48 in Q4 2024, compared to $0.20 in Q4 2023 or $0.24 in Q4 2024, compared to $0.10 in Q4 2023 on a pre reverse split basis. During Q4, we repurchased roughly 4.5 million ordinary shares or 2.25 million shares on a cost reverse split basis, reflecting an investment of 15.6 million pounds or $20.1 million. From March 1st, 2022 when we began a series of share repurchase programs through December 31st, 2024, we invested roughly $157.3 million in our repurchase program, buying back approximately 37.9 million ordinary shares or roughly 19 million shares on a post reverse split basis, which reflected approximately 24.5% of our shares outstanding.

Our current and ongoing $50 million share repurchase program launched on November 19th, 2024 and is expected to continue until the earlier of May 19th, 2025 or completion and is now being executed on NASDAQ following our voluntary delisting from AIM in mid-February. As of December 31st, 2024, we had $38.4 million remaining on our share repurchase program authorization and $17.4 million remaining as of February 28th, 2025. Additionally, our board of directors approved the launch of a new $50 million ordinary share repurchase program following completion of the current ongoing program. The new program is expected to begin on the earlier of May 19th, 2025 or completion of the currently ongoing program and continue until the earlier of November 19th, 2025 or completion.

If shares remain at prices the board believes continue to reflect a discount to fair value following the end of the current and impending program, we will consider initiating an additional one thereafter. With that, I'll turn to our outlook. For full-year 2025, we anticipate generating contribution ex-TAC of approximately $380 million with programmatic revenue expected to reflect approximately 90% of full-year 2025 revenue. We also expect to generate approximately $125 million of adjusted EBITDA for full-year 2025 and to expand our CTV revenue and data licensing revenue compared to 2024.

For full-year 2025, we expect our sales and marketing expenses, G&A and depreciation and amortization to reflect roughly the same percentage of contribution ex-TAC as in full-year 2024, and we expect R&D expenses to increase as a percentage of contribution ex-TAC. In full-year 2025, we anticipate stock-based compensation expenses will increase compared to 2024, largely due to our increased share price compared to 2023. Our board's compensation committee with guidance from its independent consultant has approved an updated executive compensation philosophy aimed at aligning total target pay near the median of the committee approved comparison group comprised of similarly sized U.S. listed companies operating broadly similar businesses.

Consisting of base salaries, cash bonuses, and long-term equity incentives, the program closely ties actual executive pay to the achievement of predefined revenue, EBITDA and relative total shareholder return goals, ensuring executive compensation is aligned with the performance of the business while remaining at or below median dilution levels of our comparison groups. As Ofer mentioned, throughout 2025, we will be investing more in advancing our tech, data, and AI capabilities, increasingly integrating generative AI across our core products to drive better platform usability and returns on advertising spend for our customers. Our two primary capital allocation focuses in 2025 will remain on share repurchases and investing in our platform as we currently have no plans for major M&A in the near term. Looking ahead, we remain hyper focused on growing revenue relationships with customers by working to gain larger budget shares and fostering increased multi-solution adoption across our end-to-end ecosystem, building of our success on this front in 2024.

We will also seek to attract new sizable partners to our platform in 2025 and grow our CTV, omnichannel, and data licensing revenue opportunities. In 2025, we will continue focusing on expanding relationship with independent agencies where we believe we are particularly well positioned to serve as a strategic partner, have a strong growth opportunity and can establish a dominant position and niche within the industry. These independent agencies are expected to continue gaining market share from major holding companies for the foreseeable future, and we believe our platform is uniquely and strategically positioned to help support and benefit from that growth. Our tech platform's ability to serve customers flexibly and holistically alongside our robust data capabilities gives us confidence in our positioning to drive increased customer spending, attract new partners, and achieve sustainable long-term growth, expanded profitability and market share gains.

We also believe Nexxen's ability to land and expand with customers through multi-solution, end to end adoption gives us a larger market and long-term growth opportunity than one-sided platforms. After a strong and transformational 2024, our momentum has carried over to this point in 2025. We believe we have all the right pieces in place to continue building on our success from 2024 with a stronger platform that we are continuing to strategically enhance through generative AI as well as an improved sales organization, value proposition and brand. 2025 is now all about execution.

We want to thank our shareholders, employees, and partners for their support, and we look forward to increasing our U.S. investor presence following our recent shift to a single U.S. ordinary share listing on NASDAQ, which we expect will benefit Nexxen and its shareholders over the long term. With that, operator, we'll now take questions.

Questions & Answers:

Operator

Thank you. We will now begin the question-and-answer session [Operator instructions] And your first question comes from the line of Matt Swanson with RBC Capital Markets. Your line is open.

Matt Swanson -- Analyst

Great. Thank you and congratulations on the quarter, particularly relative to kind of how uneven this earning season has been for a lot of peers. Ofer, the customer and publisher additions were strong in the quarter and really aligns with kind of what we've been talking about in terms of flipping from defense to offense post the Amobee integration. Could you just talk a little bit more about the go-to-market improvements and how you're looking to build on some of this momentum into 2025?

Ofer Druker -- Chief Executive Officer

Thank you, Matt, and thank you also for the question. I think that the change that we've done after the integration of Amobee is, of course, material. We consider it also in the results, but part of the things that we are talking about go to market is changing the brand and improving and tightening the messages to the message to the market make a lot of difference because people now understand better what we are basically offering and how we can help them grow their business. And we see a lot of good response from the market around that, that people starting to -- they see also the behavior of the other partner or other peers in the market that everybody is trying to build an end-to-end solution, while we already got it ready.

And we are working with that for the last almost six years, and it's helping us to do that. But we feel also that the brand and the connection of everything under one umbrella is basically, as I mentioned, explained and improving the message. And the data, in every discussion that we are doing, data is basically -- is a very key point because people understand more and more the value in data and how they can integrate it into their business. And it's helping us, of course, because we are one of the only platforms that is horizontal integration.

And it's very rich in data and enable the partners from both sides of the screen, like the advertisers and the publishers to launch, to utilize their data, to enrich it, and to utilize it on the platform. So, I think that all of that together end-to-end usage of data, a strong reach in CTV is helping us to reach publishers and advertisers that want to work with us. And we see the results in the numbers that we mentioned.

Matt Swanson -- Analyst

That's great. And then, Sagi, there's a lot of, I guess, we call it noise in the macro right now. Could you just give us kind of an update on what you're seeing in Q1 so far and then also kind of how you're thinking about the environment in your full-year guidance?

Sabi Niri -- Chief Financial Officer

Yeah. So, thank you, Matt. I think that as we said in our call couple of minutes ago, we are seeing a normalized environment post the election cycle in the U.S. We enter 2025 on the same sentiment we ended 2024.

As everybody is aware, the macro is a little bit fragile and changing every day. But at this point of time, we are not seeing any change in something that we didn't anticipate or something that can even affect our 2025 results. So, for now, business as usual, we are moving ahead. And as you asked Ofer before, it's all about execution and now going to offense, and we are doing the best effort in order to bring more clients into our ecosystem and go with strategic partnerships.

Matt Swanson -- Analyst

Great. Thank you.

Ofer Druker -- Chief Executive Officer

Thank you.

Operator

Next question comes from the line of Laura Martin with Needham and Company. Your line is open.

Laura Martin -- Analyst

Good morning. Ofer, my first one for you is about data. I think you said it grew by 100%. And I'm wondering if you could talk more granularly about what that product looks like and whether you foresee the data product growing that rapidly in 2025 and 2026?

Sabi Niri -- Chief Financial Officer

Hey, Laura. Thank you for the question, and good morning. I think, yes. If you're talking like percentage wise, yes, it grew dramatically, but the numbers over there are quite small right now.

It's not that small. When we are talking about data products or like organic data products, we are talking about products as our discovery tool and ID graph that we are catering and enabling clients to benefit specifically, and they are paying for that service on a usage basis. So, for this product, we are seeing a very increased usage and engagement for clients, and we are managing to license more and more of these solutions into our clients. Ofer, do you want to add?

Ofer Druker -- Chief Executive Officer

Yeah. I would just add, Laura, that usually we prefer not to sell or to offer the data as a stand-alone product but to offer it in the mid -- in like a mix of other services, mostly media. And it's hard to dissect that to say because as I mentioned also on our last call, about 90% of our campaigns are data enriched. So, when we are talking about data products, we are talking about when we are basically offering data as a stand-alone product, which is usually not something that we push to do because we prefer to include it with media because then, of course, the margins and the activity is bigger for us.

Laura Martin -- Analyst

So, is this separate from the VIDAA CTV ACR data?

Ofer Druker -- Chief Executive Officer

Mostly, it's about ACR. But in general, we are selling and offering data in many types of data to our clients, mostly advertisers when they're building their audiences and targeting or measuring. But when we are talking about this data tools, we are talking mostly about the ACR data, yes.

Laura Martin -- Analyst

OK. And then, Sagi, a couple for you. One is now that you're 100% U.S., what's your thinking about moving from IFRS to U.S. GAAP? And then secondly, can you remind us both -- the guidance is for 90% programmatic.

Can you remind us is the rest is the other 10% managed service, or what's the other 10% that isn't programmatic?

Sabi Niri -- Chief Financial Officer

OK. I'll answer both questions. So, first of all, I will start with the second one. So, when we are guiding that 90% or around 90% of our $380 million of guided net revenue for 2025, we are meaning that 90% will go through our full end-to-end ecosystem.

And the other 10% is what we are calling legacy performance activities, which now are mainly through related to influencer advertising that we are involved in. So, in our eyes, although it's been transacted and executed through programmatic activities, it's not like really going through our end-to-end ecosystem. And can you remind me the first question? What was the first question?

Laura Martin -- Analyst

U.S. GAAP.

Ofer Druker -- Chief Executive Officer

She asked if -- IFRS.

Sabi Niri -- Chief Financial Officer

IFRS. We had a very fruitful discussion in our audit committee and board meeting in the last couple of days around that. And we are now looking for all the gaps between IFRS and U.S. GAAP accounting wise and other related issues.

And I think that we are intending to go to U.S. GAAP and probably better sooner than later. But we are not guiding yet that we will go fully U.S. GAAP in 2025, but I think that you can think that we will do that.

Ofer Druker -- Chief Executive Officer

Great.

Laura Martin -- Analyst

Super helpful. Thanks, guys. Good numbers. Thanks.

Ofer Druker -- Chief Executive Officer

Thank you.

Operator

Next question comes from the line of Andrew Marok with Raymond James. Your line is open.

Andrew Marok -- Analyst

Hi. Thanks for taking my questions. Maybe one on CTV, if I could. So, we've obviously seen the direction of travel on the demand side to be -- to open up to more partners.

But interested on the supply side. I mean, typically, publishers on CTV have been working with fewer supply partners certainly than desktop display or mobile publishers. But have you seen the direction of travel of that increasing? Have there been any certain catalyst behind that, and how much has that been helpful to your CTV business? Thanks.

Ofer Druker -- Chief Executive Officer

Good morning. Yes, I think that you are right in the point that you mentioned that CTV partners and major partners and publishers are lowering the number of partners that they got in order to sell their media programmatically. Our advantage on that matter is that we have our own demand. So, it's not that we are offering just a connection point to the same demand sources like when you have duplication of SSPs that these guys were using in the past.

We can basically offer a lot of unique demand that is coming from our sales team, which is why that's the reason that we are able still to grow our publisher base. And I feel that this is a major benefit that the publishers of CTV look at us. And I feel that the trend now is not to rely only on one or two sources of SSP but to expand it to more people that can bring value. Meaning additional demand, unique demand that they cannot get through their old relationship.

So, we see this move in the market, and it's helping us to grow our business, helping us to widen our base of publishers and partners and, of course, grow our revenues from CTV.

Sabi Niri -- Chief Financial Officer

Andrew?

Ofer Druker -- Chief Executive Officer

Andrew, you are with us?

Andrew Marok -- Analyst

Sorry, I was on mute. Thank you. Much appreciated.

Ofer Druker -- Chief Executive Officer

Thank you.

Operator

And your last question comes from the line of Matt Condon with JPM. Your line is open.

Matt Condon -- JMP Securities -- Analyst

Thank you so much for taking my questions. My first one is just on the new generative AI products. You're focused on ease of use and performance there. Can you just talk about the opportunity to potentially move down market into the SMB performance territory? Is that a focus or -- yes, just can you elaborate on that?

Ofer Druker -- Chief Executive Officer

So, you're asking if we can basically go down the path of the funnel and offer with AI more performance based?

Matt Condon -- JMP Securities -- Analyst

I was more so just asking just the broadening of the advertiser base that you can address. Can you address now smaller, more SMB-type performance advertisers, just given generative AI is now reducing the ease of use of the platform and also increasing the performance?

Ofer Druker -- Chief Executive Officer

Yes. I think that AI in general will enable us to -- and enabling us already -- to simplify the usage of our platforms. And you are right that in so many ways to operate the full platform that we -- that after we integrated Amobee into our platform, it's a very sophisticated platform, but you need to be a professional in order to use it. And we have a lot of professional partners that are using it.

But if you are going to a smaller size for advertisers and partners, it will be easier for them to do that with the AI tools that we are building right now. And our advantage also for these clients is that since we are sitting end to end and we are -- enable -- we can enable them to run different agents of AI across the advertisers and the publisher side, the DSP and the SSP basically, including the data, which is audience segmentation, creating audiences, targeting them, measuring them, and so on. So, it will open more venues around it. In this stage that we are now, we are introducing this technology and this capabilities to our major partners.

But down the road, I think it's of course -- some of our plan is to enhance the size of the audience that we are able to reach and also to increase what I -- the question that I thought that you are asking, which is also I feel a good question is that basically it will enable -- also people to get -- to be able to get better results from the media because they will be able to utilize the data and the targeting and the platform and the optimizations in a much more meaningful manner. So, I think it will do both. And we feel that we are in front of a very big revolution. We are making like a lot of steps now.

We are introducing these tools right now to our major partners. But soon, we will open it to more.

Matt Condon -- JMP Securities -- Analyst

Great. That's helpful. And then maybe just a follow-up from an earlier question on data licensing revenue. Can you just talk about the key levers for growth in 2025? Is it expanding to new DSPs or is it getting more out of The Trade Desk and StackAdapt? Just anything that you can highlight there would be very helpful.

Thanks, guys.

Ofer Druker -- Chief Executive Officer

Of course. I think that our growth is coming will come and coming from a few trends. One of them is, of course, to win new business. And as I mentioned before, our new messaging, our tightened messaging, better go-to-market strategy is helping us to win more business in the market.

And I think that it's easier also because I think that our offering is basically responding and giving solution to all the trends that are worrying or challenging our advertisers and publishers. So, for them to find -- to work with us, it's resolving for them a lot of these issues, and they feel that we can give them a very strong solution to their needs, which of course is super important, and it enhanced the growth. The second thing is also to grow our current base. So, we have big base of partners and publishers already.

And what we are now able to do is to basically enhance the engagement with our platform. And so, in other ways, we're basically increasing the revenues that we are generating per client and per partner, which of course is very meaningful. Because as you know, in this type of relationship, the trust to know each other, to trust each other, to have like working habits is super important. And when you have them, it's easier to grow the revenues across additional platforms and so on.

So, these are the two major things that we are doing. And we have a lot of fronts to grow around, meaning we have -- as you can see also in our earnings today that we shared that we have our own -- different formats like display, online video, and, of course, CTV that is fulfilling and it's building like full solution to advertisers today. If in the past, some of these guys were using us only for video or CTV, now, they are expanding to display. If they were like display, they are now expanding to other formats and, of course, it's very helpful and it's growing our revenues with them in a very meaningful manner.

Matt Condon -- JMP Securities -- Analyst

Thank you so much.

Ofer Druker -- Chief Executive Officer

OK. So --

Operator

And that concludes our question-and-answer session. I will turn the call back over to Ofer Druker for closing remarks.

Ofer Druker -- Chief Executive Officer

Thank you. I think that when we look at 2024, so as we wrote in the PR, I think that for us it was back to basic. We worked very hard years before to make acquisition, to integrate them, to consolidate them, to tighten our message, to rebrand. And 2024 was a year that we felt that things came together, and you can see that by our results and the momentum that we created over the years.

And we believe that it's just setting the stage for the years to come that we call the growth years, which will be this year and next year. And for that, we also onboarded additional talent people from the industry, grew and promoted people from within company. And this is a great opportunity also to say thank you very much from full out to all our employees around the globe that worked very hard in 2024 to make these results happen. And you can see that it's a teamwork.

It's not one star that created this change. It's a lot of people around the world that worked together in order to make the change. And thank you for our clients and partners for the trust and patience to get to this point that we can generate for you amazing results and grow the base of our partnership together going forward. I wish us all that 2025 will be a good year.

It started now in the last 10 days, and there is unrest in the public markets. But I hope that it will resolve, and it will let us fulfill our potential in this year and going forward. So, thank you very much.

Operator

[Operator signoff]

Duration: 0 minutes

Call participants:

Billy Eckert -- Senior Director, Investor Relations

Ofer Druker -- Chief Executive Officer

Sabi Niri -- Chief Financial Officer

Matt Swanson -- Analyst

Sagi Niri -- Chief Financial Officer

Laura Martin -- Analyst

Andrew Marok -- Analyst

Matt Condon -- JMP Securities -- Analyst

All earnings call transcripts