0001835378False00018353782024-05-072024-05-070001835378us-gaap:CommonStockMember2024-05-072024-05-070001835378us-gaap:WarrantMember2024-05-072024-05-07


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): May 7, 2024
Innovid Corp.
(Exact name of registrant as specified in its charter)
Delaware001-4004887-3769599
(State or other jurisdiction
of incorporation or organization)		(Commission
File Number)		(I.R.S. Employer
Identification No.)

30 Irving Place, 12th Floor
New York, New York 10003
(Address of principal executive offices) (Zip Code)
(212) 966-7555
(Registrant’s telephone number, include area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.0001 per share
CTV
New York Stock Exchange
Warrants to purchase one share of common stock, each at an exercise price of $11.50 per shareCTVWSNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02.     Results of Operations and Financial Condition.

On May 7, 2024, Innovid Corp. issued a press release announcing its financial results for the quarter ended March 31, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein to this item 2.02.

In accordance with General Instruction B.2 of Form 8-K, the information included under Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.


Item 9.01.     Financial Statements and Exhibits.

(d)     Exhibits

Exhibit NoDescription
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document)




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

INNOVID CORP.
Date: May 7, 2024By:/s/ Anthony Callini
Name:Anthony Callini
Title:Chief Financial Officer





Exhibit 99.1
Innovid Reports Q1 2024 Financial Results

•Company exceeds both revenue and Adjusted EBITDA guidance for Q1
•Q1 revenue grew to $36.7 million, up 21% year-over-year
•Q1 net loss improved year-over-year to $6.2 million and Adjusted EBITDA* improved to $4.4 million, representing a 12% Adjusted EBITDA margin*
•Company raises full-year 2024 guidance

NEW YORK, May 7, 2024 -- Innovid Corp. (NYSE:CTV) (the "Company"), an independent software platform for the creation, delivery, measurement, and optimization of advertising across connected TV (CTV), linear TV, and digital, today announced financial results for the first quarter ended March 31, 2024.

“We’re very proud to start 2024 with solid business momentum. We exceeded our revenue and Adjusted EBITDA guidance, demonstrated continuous improvement, and generated positive free cash flow for the quarter,” said Zvika Netter, Co-Founder and CEO. "Most recently, we launched our Harmony initiative and product suite to optimize the CTV advertising ecosystem. This initiative brings value to advertisers, publishers, technology players, and ultimately, to viewers, as we seek to keep TV open for everyone and controlled by no one.”

First Quarter 2024 Financial Summary

•Revenue increased to $36.7 million, reflecting year-over-year growth of 21%.
•Net loss was $6.2 million, compared to a net loss of $8.6 million for the same period in 2023.
•Adjusted EBITDA* grew to $4.4 million, compared to $0.1 million for the same period in 2023, representing a 12.0% Adjusted EBITDA margin.*
•Operating cash flow was $4.7 million, compared to $0.4 million in the same period of 2023.
•Free cash flow* was $2.0 million, an increase of $4.8 million, compared to a use of $2.8 million in the same period in 2023.

Recent Business Highlights

•Recent new client wins, product expansions, and renewals with leading brands such as Eli Lilly, Haleon, Homes.com, and Verizon; as well as new publishers, including the Tennis Channel owned by Sinclair.
•Launched Harmony initiative to optimize CTV advertising at the infrastructure level to improve efficiency, enhance transparency and control, reduce carbon emissions, and increase ROI to ultimately provide better viewing experiences.
•Launched Harmony Direct, the first in a wave of new product innovations released as part of the Harmony initiative. Harmony Direct streamlines the supply path for non-biddable guaranteed media to its purest form, and aims to direct more advertiser dollars toward working media, increase revenue opportunities for publishers, and create a more sustainable, transparent path. Agency and publisher partners, including Assembly, CMI Media Group, PMG, RPA, and Roku, are among the first using Harmony Direct.
•Won “Best Measurement Tool” in the 2024 Digiday Video & TV Awards, highlighting the companies, campaigns, and technology modernizing video and TV. Innovid is the first to receive recognition within this new category.


•Launched a series of first-to-market interactive ads in partnership with Paramount+ during SuperBowl LVIII - the most-streamed Super Bowl ever. The ads engaged consumers with new ‘Add to Watchlist’ units to promote Paramount+ content, as well as interactive ads for Pfizer, which drove viewers to their “Let’s Outdo Cancer” website.

Financial Outlook

Innovid anticipates continued revenue growth and margin expansion in 2024 as reflected in the following financial guidance for Q2 and updated outlook for full year 2024:

•Q2 2024 revenue in a range between $37.5 million and $39.5 million, reflecting year-over-year growth between 9% and 14%.
•Q2 2024 Adjusted EBITDA* in a range between $5.0 million and $6.0 million.
•FY 2024 revenue in a range between $156 million and $163 million, representing annual growth of between 12% and 17%. This reflects an increase from prior guidance of $154 million and $162 million.
•FY 2024 Adjusted EBITDA* in a range between $24 million and $29 million, raised from the prior range of $22 million and $28 million.

*See non-GAAP financial measures and reconciliation of GAAP to non-GAAP tables. This press release does not include a reconciliation of forward-looking Adjusted EBITDA to forward-looking GAAP Net Income (Loss) because the Company is unable, without making unreasonable efforts, to provide a meaningful or reasonably accurate calculation or estimation of certain reconciling items which could be significant to the Company’s results.

Conference Call

The Company will host a conference call and webcast to discuss first quarter 2024 financial results today at 8:30 a.m. Eastern Time. Hosting the call will be Zvika Netter, Co-founder and Chief Executive Officer and Anthony Callini, Chief Financial Officer. The conference call will be available via webcast at investors.innovid.com. To participate via telephone, please dial (+1) 866-682-6100 (toll free) or 862-298-0702 (toll-free international).

Following the call, a replay of the webcast will be available for 90 days on the Innovid Investor Relations website.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures under the rules of the U.S. Securities and Exchange Commission. This non-GAAP information supplements and is not intended to represent a measure of performance in accordance with disclosures required by generally accepted accounting principles. Non-GAAP financial measures are used internally as measures of operational efficiency to understand and evaluate our core business operations. as well as comparisons to peers as similar measures are frequently used by securities analysts, investors, ratings agencies and other interested parties to evaluate businesses in our industry. Accordingly, Innovid believes it is useful for investors and others to review both GAAP and non-GAAP measures in order for (a) period-to-period comparisons of our core business, (b) comparisons to peers as similar measures are frequently used by securities analysts, investors, ratings agencies and other interested parties to evaluate businesses in our industry, and (c) providing an understanding and evaluation of our trends when comparing our operating results, on a consistent basis, by excluding items that we do not believe are indicative of our core operating performance. However, these non-GAAP financial measures should not take the place of GAAP financial measures in evaluating our business. The primary limitations
2

associated with the use of non-GAAP financial measures are that these measures may not be directly comparable to the amounts reported by other companies and they do not include all items of income and expense that affect operations. Innovid management compensates for these limitations by considering the company’s financial results and outlook as determined in accordance with GAAP and by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in the tables attached to this press release. We are not able to provide a reconciliation of the projected Adjusted EBITDA to expected net (loss) income attributable to Innovid for the second quarter of 2024 or the full year 2024, without unreasonable effort. This is due to the unknown effect, timing, and potential significance of the effects of taxes on income in multiple jurisdictions, finance (income)/expenses including valuations, among others. These items have in the past, and may in the future, significantly affect GAAP results in a particular period.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1996. The Company's actual results may differ from its expectations, estimates, and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," "aim," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company's expectations regarding its future financial results, expected growth, and future market opportunity. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results, including Innovid's ability to achieve and, if achieved, maintain profitability, decrease and/or changes in CTV audience viewership behavior, Innovid's failure to make the right investment decisions or to innovate and develop new solutions, inaccurate estimates or projections of future financial performance, Innovid's failure to manage growth effectively, the dependence of Innovid's revenues and business on the overall demand for advertising and a limited number of advertising agencies and advertisers, the actual or potential impacts of international conflicts and humanitarian crises on global markets, the rejection of digital advertising by consumers, future restrictions on Innovid's ability to collect, use and disclose data, market pressure resulting in a reduction of Innovid's revenues per impression, Innovid's failure to adequately scale its platform infrastructure, exposure to fines and liability if advertisers, publishers and data providers do not obtain necessary and requisite consents from consumers for Innovid to process their personal data, competition for employee talent, seasonal fluctuations in advertising activity, payment-related risks, interruptions or delays in services from third parties, errors, defects, or unintended performance problems in Innovid's platform, intense market competition,failure to comply with the terms of third party open source components, changes in tax laws or tax rulings, failure to maintain an effective system of internal controls over financial reporting, failure to comply with data privacy and data protection laws, infringement of third party intellectual property rights, difficulty in enforcing Innovid's own intellectual property rights, system failures, security breaches or cyberattacks, additional financing if required may not be available, the volatility of the price of Innovid's common stock and warrants, and other important factors discussed under the caption "Risk Factors" in Innovid's Annual Report on Form 10-K filed with the SEC on February 29, 2024, as such factors may be updated from time to time in its other filings with the SEC, accessible on the SEC's website at www.sec.gov and the Investors Relations section of Innovid's website at investors.innovid.com. You should carefully consider the risks and uncertainties described in the documents filed by the Company from time to time with the U.S. Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Most of these factors are outside the Company's control and are difficult to predict. The Company cautions not to place undue reliance upon any forward-looking statements, including projections, which speak only as of the date made. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-
3

looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

About Innovid

Innovid (NYSE:CTV) is an independent software platform for the creation, delivery, measurement, and optimization of advertising across connected TV (CTV), linear, and digital. Through a global infrastructure that enables cross-platform ad serving, data-driven creative, and measurement, Innovid offers its clients always-on intelligence to optimize advertising investment across channels, platforms, screens, and devices. Innovid is an independent platform that leads the market in converged TV innovation, through proprietary technology and exclusive partnerships designed to reimagine TV advertising. Headquartered in New York City, Innovid serves a global client base through offices across the Americas, Europe, and Asia Pacific. To learn more, visit https://www.innovid.com/ or follow us on LinkedIn or X.


Contacts
Investor Contact
Brinlea Johnson
IR@innovid.com

Media Contacts
Megan Garnett Coyle
megan@innovid.com

Caroline Yodice
cyodice@daddibrand.com

4

INNOVID, CORP. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited and in thousands, except share and per share data)

March 31, 2024December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$31,574 $49,585 
Trade receivables, net41,814 46,420 
Prepaid expenses and other current assets
6,099 5,615 
Total current assets79,487 101,620 
Long-term restricted deposits
434 412 
Property and equipment, net
19,613 18,419 
Goodwill
102,473 102,473 
Intangible assets, net23,314 24,318 
Operating lease right of use asset11,129 1,435 
Other non-current assets1,055 1,278 
Total assets
$237,505 $249,955 
Liabilities and Stockholders' Equity
Current liabilities:
Trade payables$1,527 $2,810 
Employees and payroll accruals11,324 14,060 
Lease liabilities - current portion928 1,200 
Accrued expenses and other current liabilities10,835 7,426 
Total current liabilities24,614 25,496 
Long-term debt— 20,000 
Lease liabilities - non-current portion10,630 634 
Other non-current liabilities7,833 7,528 
Warrants liability511 307 
Common stock13 13 
Additional paid-in capital382,935 378,774 
Accumulated deficit(189,031)(182,797)
Total stockholders’ equity193,917 195,990 
Total liabilities and stockholders’ equity$237,505 $249,955 

5

INNOVID, CORP. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in thousands, except share and per share data)

Three months ended March 31,

20242023
Revenue$36,738 $30,485 
Cost of revenue (1)8,732 8,265 
Research and development (1)6,321 7,117 
Sales and marketing (1)11,626 11,637 
General and administrative (1)10,535 9,650 
Depreciation and amortization2,624 2,030 
Operating loss(3,100)(8,214)
Finance (income) expenses, net(42)(2,475)
Loss before taxes(3,058)(5,739)
Taxes on income3,176 2,824 
Net loss$(6,234)$(8,563)
Net loss per share common share—basic and diluted$(0.04)$(0.06)
Weighted-average number of shares used in computing net loss per share:
Basic and diluted142,376,026 136,008,998 
(1) Exclusive of depreciation and amortization presented separately.



6

INNOVID, CORP. AND ITS SUBSIDIARIES CONDENSED STATEMENTS STOCKHOLDERS’ EQUITY
(Unaudited and in thousands, except share and per share data)
Common stock
Additional paid-in capital
Accumulated deficit
Total stockholders’ equity
Number
Amount
Balance as of December 31, 2022133,882,414 $13 $356,801 $(150,886)$205,928 
Stock-based compensation4,897 4,897 
Issuance of common stock
—exercised options and RSUs vested2,734,320 — 250 250 
Net loss(8,563)(8,563)
Balance as of March 31, 2023136,616,734 $13 $361,948 $(159,449)$202,512 
Common stock
Additional paid-in capital
Accumulated deficit
Total stockholders’ equity
Number
Amount
Balance as of December 31, 2023141,194,179 $13 $378,774 $(182,797)$195,990 
Stock-based compensation4,118 4,118 
Issuance of common stock
—exercised options and RSUs vested2,667,430 — 43 43 
Net loss(6,234)(6,234)
Balance as of March 31, 2024143,861,609 $13 $382,935 $(189,031)$193,917 


7

INNOVID, CORP. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and in thousands)
Three months ended March 31,
20242023
Cash flows from operating activities:
Net loss$(6,234)$(8,563)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization2,624 2,030 
Stock-based compensation3,838 4,533 
Change in fair value of warrants204 (2,714)
Loss on foreign exchange, net90 — 
Changes in operating assets and liabilities:
Trade receivables, net4,606 3,708 
Prepaid expenses and other assets(201)(2,922)
Operating lease right of use assets376 459 
Trade payables(1,282)1,558 
Employee and payroll accruals(2,736)(299)
Operating lease liabilities(347)(584)
Accrued expenses and other liabilities3,714 3,162 
Net cash provided by operating activities4,652 368 
Cash flows from investing activities:
Internal use software capitalization(2,269)(3,091)
Purchases of property and equipment(272)(89)
Withdrawal of short-term bank deposits— 10,000 
Investment in short-term bank deposits(53)7 
Net cash (used in) provided by investing activities(2,594)6,827 
Cash flows from financing activities:
Proceeds from loan— 5,000 
Payment on loan(20,000)(5,000)
Proceeds from exercise of options43 250 
Net cash (used in) provided by financing activities(19,957)250 
Effect of exchange rates on cash, cash equivalents and restricted cash(90)— 
(Decrease) increase in cash, cash equivalents, and restricted cash(17,989)7,445 
Cash, cash equivalents, and restricted cash at the beginning of the period49,997 37,971 
Cash, cash equivalents, and restricted cash at the end of the period$32,008 $45,416 
8
INNOVID, CORP. AND ITS SUBSIDIARIES
OTHER INFORMATION
(Unaudited and in thousands)

RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN PERCENT
Three months ended March 31,
20242023
Net loss$(6,234)$(8,563)
Net loss margin percent(17)%(28)%
Depreciation and amortization2,624 2,030 
Stock-based compensation3,838 4,625 
Finance (income) expenses, net (a)(42)(2,475)
Retention bonus expenses (b)92 297 
Legal claims928 314 
Severance cost (c)— 821 
Other14 272 
Taxes on income3,176 2,824 
Adjusted EBITDA
$4,396 $145 
Adjusted EBITDA margin percent
12.0 %0.5 %
(a) Finance (income) expenses, net consists mostly of remeasurement related to revaluation of our warrants, remeasurement of our foreign subsidiary’s monetary assets, liabilities and operating results, and our interest expense.
(b) Retention bonus expenses consists of retention bonuses for TVS employees.
(c) Severance cost is related to the personnel reductions that occurred during the first quarter of 2023.



RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW

Three months ended March 31,
20242023
Net cash provided by operating activities$4,652 $368 
Gain (loss) on foreign exchange, net(90)— 
Capital expenditures(2,541)(3,180)
Free Cash Flow$2,021 $(2,812)


9
v3.24.1.u1
Cover
May 07, 2024
Document Information [Line Items]  
Document Type 8-K
Document Period End Date May 07, 2024
Entity Registrant Name Innovid Corp.
Entity Incorporation, State or Country Code DE
Entity File Number 001-40048
Entity Tax Identification Number 87-3769599
Entity Address, Address Line One 30 Irving Place
Entity Address, Address Line Two 12th Floor
Entity Address, City or Town New York
Entity Address, State or Province NY
Entity Address, Postal Zip Code 10003
City Area Code 212
Local Phone Number 966-7555
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company true
Entity Ex Transition Period false
Entity Central Index Key 0001835378
Amendment Flag false
Common Stock  
Document Information [Line Items]  
Title of 12(b) Security Common stock, par value $0.0001 per share
Trading Symbol CTV
Security Exchange Name NYSE
Warrant  
Document Information [Line Items]  
Title of 12(b) Security Warrants to purchase one share of common stock, each at an exercise price of $11.50 per share
Trading Symbol CTVWS
Security Exchange Name NYSE
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