|
Exhibit 99.1
|
|
Company announcement dated March 6, 2024, “Nexxen Reports Results for the Fourth Quarter and Year Ended December 31, 2023”.
|
By: |
/S/ Sagi Niri
|
Name: |
Sagi Niri
|
Title: |
Chief Financial Officer
|
Exhibit List
|
||
• |
Contribution ex-TAC: Generated Contribution ex-TAC of $90.5 million in Q4 2023, reflecting a 12% decrease from $103.0 million in Q4 2022, and Contribution
ex-TAC of $314.2 million for the year ended December 31, 2023, reflecting a 1% increase compared to $309.7 million for the year ended December 31, 2022. Weakness in Q4 2023 Contribution ex-TAC was a byproduct of reduced managed service,
video, and CTV spending from some of the Company’s highest-spending agency customers it is heavily indexed to, as well as Nexxen discontinuing less profitable relationships with certain customers. Full year 2023 Contribution ex-TAC was also
affected by challenging advertising conditions throughout the year which disproportionately impacted budgets and spending for several of the Company’s small- and mid-sized agency customers, a notable decline in the Company’s non-core business
focused on legacy non-programmatic performance-related activities, and challenges stemming from the initial integration of Amobee’s and Nexxen’s sales teams, technology stack, and management teams. Nexxen believes its sales team is
well-positioned to drive growth in 2024 as it is now exclusively focused on selling as opposed to integration initiatives and is equipped with a significantly enhanced platform featuring in-demand tech and data capabilities. Nexxen is
cautiously optimistic that macroeconomic and advertising conditions will improve in 2024, potentially driving increased budgets and spending for its larger customers.
|
• |
Programmatic Revenue: Programmatic revenue was $86.0 million in Q4 2023, reflecting a 9% decrease from $94.5 million in Q4 2022, while programmatic revenue was $299.0 million for the year ended
December 31, 2023, reflecting a 9% increase compared to $274.4 million for the year ended December 31, 2022. Reduced programmatic revenue in Q4 2023 compared to Q4 2022 was a byproduct of lower overall Contribution ex-TAC driven by weaker
comparative advertising demand and spending from some of the Company’s larger customers, while increases for the year ended December 31, 2023, compared to the year ended December 31, 2022, were driven largely by the completed integration of
Amobee, which included a strong programmatic revenue footprint.
|
• |
CTV Revenue: CTV revenue was $19.9 million in Q4 2023, compared to $33.0 million in Q4 2022. CTV revenue was impacted by a combination of factors including the SAG-AFTRA strike, and reduced CTV
spending from some of the Company’s largest small- and mid-sized agency customers. Importantly, these customers continued to spend within Nexxen’s broader platform offerings during Q4 2023 but largely selected the Company’s lower-cost,
performance-based programmatic solutions, such as mobile video and display. The Company believes this was a result of cost-savings efforts and the continued evolution of on-the-go streaming preferences as consumers increasingly stream content
on mobile phones and tablets, in addition to CTVs, all of which are options the Company can flexibly service advertising customers across. CTV revenue was $85.5 million for the year ended December 31, 2023, reflecting a 12% decrease from
$97.2 million for the year ended December 31, 2022. The Company believes it will achieve CTV revenue growth in 2024 amidst optimism that macroeconomic conditions will improve, and its larger customers’ budgets and spending will increase.
|
• |
CTV and Programmatic Revenue Percentages: CTV revenue during the three and twelve months ended December 31, 2023 represented 23% and 29% of programmatic revenue, respectively, compared to 35% for the
same prior year periods. Programmatic revenue increased to 90% of revenue for the three and twelve months ended December 31, 2023, compared to 88% and 82% of revenue, respectively, for the same prior year periods.
|
• |
Adjusted EBITDA: Generated Adjusted EBITDA of $32.0 million for the three months ended December 31, 2023, and $83.2 million for the twelve months ended
December 31, 2023, compared to $36.9 million and $144.9 million for the same prior year periods. Year-over-year decreases were attributable to the integration of Amobee, whose business lines operate at a lower profitability profile than
Nexxen’s pre-acquisition standalone business, and reduced spending from some of the Company’s largest customers throughout 2023 compared to 2022.
|
• |
Adjusted EBITDA Margins: Achieved a 35% Adjusted EBITDA Margin on a Contribution ex-TAC basis, and 33% on a revenue basis, for the three months ended December 31, 2023, compared to 36% on a
Contribution ex-TAC basis, and 34% on a revenue basis for the three months ended December 31, 2022. Nexxen achieved an Adjusted EBITDA Margin of 26% on a Contribution ex-TAC basis, and 25% on a revenue basis, for the twelve months ended
December 31, 2023, compared to 47% on a Contribution ex-TAC basis, and 43% on a revenue basis for the twelve months ended December 31, 2022. The Company anticipates Adjusted EBITDA Margins will expand
in full year 2024 compared to full year 2023 amidst expectations for increased Contribution ex-TAC.
|
• |
Video Revenue: Video revenue continued to represent most of the Company’s programmatic revenue at 67% and 69% for the three and twelve months ended December 31, 2023, respectively, compared to 80%
and 89% for the three and twelve months ended December 31, 2022, respectively.
|
• |
Liquidity Resources: As of December 31, 2023, the Company had net cash of $134.3 million, consisting of cash and cash equivalents of $234.3 million, offset by approximately $100.0 million in
principal long-term debt, as well as $80 million undrawn on its revolving credit facility. The Company’s net cash balance as of March 4, 2024, increased to approximately $146.0 million. The Company intends to prioritize near-term cash
resources on strategic internal growth investments and initiatives and its ongoing Ordinary share repurchase program, as well as future potential share repurchase programs. The Company does not anticipate any major near-term acquisitions as
it believes its technology and data stack now offers the necessary components to enable market share gains within the digital advertising ecosystem.
|
• |
Completed rebrand to Nexxen (from Tremor International), better positioning the Company with customers and investors
|
o |
Simplified and enhanced the holistic value proposition of the Company’s advanced data-driven tech stack.
|
o |
Updated the Company’s parent name to Nexxen International Ltd. and changed its stock tickers in the U.S. and U.K. markets from “TRMR” to “NEXN” in January 2024.
|
o |
Celebrated the Company’s rebranding at NASDAQ’s Closing Bell ceremony on February 28, 2024, generating further momentum with customers and investors, and increased industry awareness.
|
• |
Investment in VIDAA enabled the creation of new data licensing revenue streams, reflecting an exciting growth opportunity
|
o |
Nexxen is generating notable initial demand for automatic content recognition (“ACR”) data licensing partnerships from major third-party DSPs, agencies, and key research and measurement players within the industry seeking to leverage the
Company’s exclusive global access to VIDAA’s rapidly growing smart TV data footprint.
|
o |
This high-margin annually recurring data licensing revenue is expected to reflect a significant growth opportunity for Nexxen, while also enabling greater resiliency in the Company’s revenue base, as the Company believes the revenue is
less susceptible to volatility in advertising demand conditions.
|
• |
Significantly expanded TV Intelligence data footprint through exclusive partnership with PeerLogix and continued growth by VIDAA; now offering solution in U.S. and U.K. with further international expansion
expected in 2024
|
o |
Nexxen entered a new exclusive partnership with PeerLogix, an audience discovery platform, to augment the Company’s TV Intelligence solution with premium on-the-go streaming viewership data from platforms like Netflix, Hulu, and Disney+.
TV Intelligence is an expansive dataset inclusive of Set-Top Box (“STB”), ACR, and cross-screen panel data that can offer insights on TV and streaming viewership data across approximately 50 million households in the U.S. alone, enabling more
effective targeting for customers across the TV and streaming ecosystem.
|
o |
VIDAA, Hisense’s primary CTV operating system, whose global ACR data can be exclusively monetized and distributed by Nexxen through at least the end of 2026, grew its reach to over 25 million Connected TVs during 2023, significantly
expanding and enhancing Nexxen’s TV viewership data footprint. According to VIDAA, this number has already increased to over 26 million Connected TVs thus far in 2024.
|
o |
Launched TV Viewership Audiences in the U.K. while expanding the Company’s TV Intelligence offering in the U.S., generating notable and increased adoption during Q4 2023. The Company expects further growth in both markets in 2024.
|
o |
The Company expects to launch its TV Intelligence solution in additional major international markets in 2024, enhancing and expanding the Company’s international CTV growth opportunity.
|
• |
Scaled and expanded CTV partnership roster; established relationships with more of the world’s major smart TV OEMs
|
o |
Expanded the Company’s strategic partnership with TCL FFALCON (“TCL”) beyond solely granting advertising customers access to CTV and OTT supply in the TCL channel, to also exclusively sell TCL’s native display inventory as a preferred
supply partner.
|
o |
Following Nexxen’s settlement and partnership agreement with Alphonso Inc. and LG Electronics, Inc., the Company now holds relationships with a larger base of the world’s major smart TV OEMs.
|
o |
Partnered with out-of-home (“OOH”) advertising group, Taiv, to broaden Nexxen’s CTV OOH opportunities for clients across the advertising ecosystem. The partnership delivers immersive, high impact ad experiences by reaching audiences on
screens in U.S. sports bars and restaurants, hitting another CTV touchpoint within Nexxen’s larger CTV OOH offering.
|
• |
Nexxen Discovery’s audience finding and targeting capabilities generating increased adoption and significant interest ahead of the 2024 U.S. election cycle
|
o |
Nexxen Discovery, the Company’s data fueled B.I. tool, has been adopted by key industry partners and is generating significant interest with political advertisers and agencies ahead of the 2024 U.S. election cycle.
|
o |
While political has not historically been a material vertical for Nexxen, with the addition of Nexxen Discovery to the Company’s product portfolio, and an increased dedicated sales focus on the vertical, Nexxen anticipates growth within
the vertical in 2024 in an election year where eMarketer estimates over $12 billion in U.S. political ad spending.
|
• |
Added a significant number of new customers on the buy- and sell-sides of the ecosystem during the three and twelve months ended December 31, 2023, while retaining the vast majority of the Company’s
highest-spending customers throughout 2023
|
o |
Nexxen DSP added 111 new actively-spending first-time advertiser customers during Q4 2023 across entertainment, food and beverage, automotive, and finance verticals, as well as others. This figure included 14 new enterprise self-service
advertiser customers, highlighted by some of the world’s largest and most-recognized CTV publishers, broadcasters, and Consumer Packaged Goods (“CPG”) companies, as well as three new independent agencies leveraging the Company’s solutions in
a self-service capacity. The Company added 334 new actively-spending first-time advertiser customers for the twelve months ended December 31, 2023.
|
o |
Nexxen SSP added 89 new supply partners, including 78 in the U.S., during Q4 2023, across several verticals and formats, including CTV, broadcast TV, mobile, and mobile gaming. The Company added 372 new supply partners during the twelve
months ended December 31, 2023, including 327 in the U.S.
|
o |
The Company achieved a 73% net revenue retention rate for the year ended December 31, 2023, compared to 80% for the year ended December 31, 2022. The decrease was driven by reduced budgets for some of the Company’s largest small- and
mid-sized agency customers due to challenging macroeconomic conditions, which drove lower overall spending and shifts to lower-cost options within Nexxen’s broader product ecosystem, as well as Nexxen discontinuing less profitable
relationships with certain customers.
|
o |
On December 20, 2023, the Company launched a new $20 million Ordinary share repurchase program, following approval from the Israeli Court and the Company’s Board of Directors.
|
o |
The Company repurchased 221,506 shares during Q4 2023 at an average price of 201.01 pence, reflecting a total investment of £446,139, or $565,714.
|
o |
The Company’s Ordinary share repurchase program will continue until the earlier of June 18, 2024 and the date the program is completed. The share repurchase program does not obligate Nexxen to repurchase any particular amount of Ordinary
Shares and the program may be suspended, modified, or discontinued at any time at the Company’s discretion, subject to applicable law.
|
o |
Upon completion of the current share repurchase program, the Company’s Board of Directors intends to evaluate the implementation of an additional share repurchase program, subject to then current market conditions and obtaining requisite
regulatory approval, including, if required, approval from the Israeli Court.
|
o |
On February 28, 2024, Nexxen announced it reached a favorable settlement agreement and launched a three-year strategic partnership with Alphonso Inc. and LGE, resolving the disputes underlying the complaints, and concluding the parties’
litigation.
|
o |
The executed settlement agreement includes a cash component and a commercial strategic partnership. Through the partnership and settlement agreement, Alphonso Inc. will grant Nexxen limited access to monetize a portion of LG’s premium CTV
inventory and will also leverage Nexxen’s data-driven discovery and segmentation tools.
|
o |
Management believes ongoing macroeconomic headwinds and uncertainty may continue to limit near-term budgets and spending for some of the Company’s largest small- and mid-sized agency customers, drive continued managed service softness, and
cause customers to continue to focus spending on lower-cost solutions within Nexxen’s broad suite of offerings, but is cautiously optimistic these customers will revert to the Company’s premium solutions amidst anticipated improvement in
macroeconomic and advertising demand conditions.
|
o |
Management also believes the Company is well-placed to capitalize on industry growth trends following the completed integration of Amobee given its unique positioning to flexibly serve customers on both sides of the ecosystem across
formats and devices, expand its end-to-end customer base, increase its base of customers leveraging multiple enterprise tech and data solutions, grow its data licensing revenue, and increase its agency and TV partnerships. Management also
anticipates Adjusted EBITDA Margin expansion and CTV revenue growth in full year 2024 compared to full year 2023, and Nexxen provides the following financial guidance:
|
• |
Full year 2024 Contribution ex-TAC in a range of approximately $340 - $345 million
|
• |
Full year 2024 Adjusted EBITDA of approximately $100 million
|
• |
Full year 2024 Programmatic revenue to reflect approximately 90% of full year 2024 revenue
|
Three months ended December 31
|
Twelve months ended December 31
|
|||||||||||||||||||||||
|
2023
|
2022
|
%
|
2023
|
2022
|
%
|
||||||||||||||||||
IFRS highlights
|
||||||||||||||||||||||||
Revenues
|
95.9
|
107.7
|
(11
|
%)
|
332.0
|
335.3
|
(1
|
%)
|
||||||||||||||||
Programmatic Revenues
|
86.0
|
94.5
|
(9
|
%)
|
299.0
|
274.4
|
9
|
%
|
||||||||||||||||
Operating Profit (loss)
|
9.6
|
10.8
|
(11
|
%)
|
(17.0
|
)
|
44.8
|
(138
|
%)
|
|||||||||||||||
Net Income (loss) Margin on a Gross Profit basis
|
5
|
% |
6
|
%
|
(10
|
%)
|
9
|
%
|
||||||||||||||||
Total Comprehensive Income (loss)
|
5.3
|
9.8
|
(45
|
%)
|
(18.1
|
)
|
16.2
|
(212
|
%)
|
|||||||||||||||
Diluted earnings (loss) per share
|
0.02
|
0.03
|
(36
|
%)
|
(0.15
|
)
|
0.15
|
(201
|
%)
|
|||||||||||||||
Non-IFRS highlights
|
||||||||||||||||||||||||
Contribution ex-TAC
|
90.5
|
103.0
|
(12
|
%)
|
314.2
|
309.7
|
1
|
%
|
||||||||||||||||
Adjusted EBITDA
|
32.0
|
36.9
|
(13
|
%)
|
83.2
|
144.9
|
(43
|
%)
|
||||||||||||||||
Adjusted EBITDA Margin on a Contribution ex-TAC basis
|
35
|
%
|
36
|
%
|
26
|
%
|
47
|
%
|
||||||||||||||||
Non-IFRS net Income
|
14.5
|
22.2
|
(35
|
%)
|
32.2
|
91.8
|
(65
|
%)
|
||||||||||||||||
Non-IFRS Diluted earnings per share
|
0.10
|
0.15
|
(35
|
%)
|
0.22
|
0.60
|
(63
|
%)
|
• |
Nexxen International Fourth Quarter and Twelve Months Ended December 31, 2023 Earnings Webcast and Conference Call
|
• |
March 6, 2024, at 6:00 AM PT / 9:00 AM ET / 2:00 PM GMT
|
• |
Webcast Link: https://edge.media-server.com/mmc/p/93my32xz
|
• |
Participant Dial-In Numbers:
|
o |
U.S. / Canada Participant Toll-Free Dial-In Number: (888) 596-4144
|
o |
U.K. Participant Toll-Free Dial-In Number: +44 800 260 6470
|
o |
International Participant Toll-Free Dial-In Number: (646) 968-2525
|
o |
Conference ID: 5462475
|
o |
Contribution ex-TAC: Contribution ex-TAC for Nexxen is defined as gross profit plus depreciation and amortization attributable to cost of revenues and cost of revenues (exclusive of depreciation and
amortization) minus the Performance media cost (“traffic acquisition costs” or “TAC”). Performance media cost represents the costs of purchases of impressions from publishers on a cost-per-thousand impression basis in our non-core Performance
activities. Contribution ex-TAC is a supplemental measure of our financial performance that is not required by, or presented in accordance with, IFRS. Contribution ex-TAC should not be considered as an alternative to gross profit as a measure
of financial performance. Contribution ex-TAC is a non-IFRS financial measure and should not be viewed in isolation. We believe Contribution ex-TAC is a useful measure in assessing the performance of Nexxen, because it facilitates a
consistent comparison against our core business without considering the impact of traffic acquisition costs related to revenue reported on a gross basis.
|
o |
Adjusted EBITDA: We define Adjusted EBITDA for Nexxen as total comprehensive income (loss) for the period adjusted for foreign currency translation differences for foreign operations, foreign
currency translation for subsidiary sold reclassified to profit and loss, financing expenses (income), net, tax expenses, depreciation and amortization, stock-based compensation, restructuring, acquisition-related costs and other expenses,
net. Adjusted EBITDA is included in the press release because it is a key metric used by management and our board of directors to assess our financial performance. Adjusted EBITDA is frequently used by analysts, investors, and other
interested parties to evaluate companies in our industry. Management believes that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate directly to the performance
of the underlying business.
|
o |
Adjusted EBITDA Margin: We define Adjusted EBITDA Margin as Adjusted EBITDA on a Contribution ex-TAC basis.
|
o |
Non-IFRS Income (Loss) and Non-IFRS Earnings (Loss) per Share: We define non-IFRS earnings (loss) per share as non-IFRS income (loss) divided by non-IFRS weighted-average shares outstanding.
Non-IFRS income (loss) is equal to net income (loss) excluding stock-based compensation, and cash- and non-cash-based acquisition and related expenses, including amortization of acquired intangible assets, merger-related severance costs,
and transaction expenses. In periods in which we have non-IFRS income, non-IFRS weighted-average shares outstanding used to calculate non-IFRS earnings per share includes the impact of potentially dilutive shares. Potentially dilutive
shares consist of stock options, restricted stock awards, restricted stock units, and performance stock units, each computed using the treasury stock method. We believe non-IFRS earnings (loss) per share is useful to investors in evaluating
our ongoing operational performance and our trends on a per share basis, and also facilitates comparison of our financial results on a per share basis with other companies, many of which present a similar non-IFRS measure. However, a
potential limitation of our use of non-IFRS earnings (loss) per share is that other companies may define non-IFRS earnings per share differently, which may make comparison difficult. This measure may also exclude expenses that may have a
material impact on our reported financial results. Non-IFRS earnings (loss) per share is a performance measure and should not be used as a measure of liquidity. Because of these limitations, we also consider the comparable IFRS measure of
net income.
|
|
Three months ended
December 31
|
Twelve months ended
December 31
|
||||||||||||||||||||||
|
2023
|
2022
|
%
|
2023
|
2022
|
%
|
||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
Total comprehensive income (loss)
|
5,341
|
9,796
|
(45
|
%)
|
(18,127
|
)
|
16,238
|
(212
|
%)
|
|||||||||||||||
Foreign currency translation differences for foreign operation
|
(2,114
|
)
|
(4,735
|
)
|
(2,126
|
)
|
6,499
|
|||||||||||||||||
Foreign currency translation for subsidiary sold reclassified to profit and loss
|
-
|
-
|
(1,234
|
)
|
-
|
|||||||||||||||||||
Tax expenses
|
6,487
|
5,040
|
2,503
|
19,688
|
||||||||||||||||||||
Financial expense (income), net
|
(105
|
)
|
717
|
2,008
|
2,327
|
|||||||||||||||||||
Depreciation and amortization
|
21,047
|
17,184
|
78,285
|
42,700
|
||||||||||||||||||||
Stock-based compensation
|
1,386
|
7,986
|
19,169
|
50,505
|
||||||||||||||||||||
Acquisition related costs
|
-
|
93
|
171
|
6,085
|
||||||||||||||||||||
Restructuring
|
-
|
307
|
796
|
307
|
||||||||||||||||||||
Other expense
|
-
|
540
|
1,765
|
540
|
||||||||||||||||||||
Adjusted EBITDA
|
32,042
|
36,928
|
(13
|
%)
|
83,210
|
144,889
|
(43
|
%)
|
Three months ended
December 31
|
Twelve months ended
December 31
|
|||||||||||||||||||||||
2023 |
2022 |
% |
2023 |
2022 |
% |
|||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
Revenues
|
95,916
|
107,697
|
(11
|
%)
|
331,993
|
335,250
|
(1
|
%)
|
||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization)
|
(17,886
|
)
|
(17,265
|
)
|
(62,270
|
)
|
(60,745
|
)
|
||||||||||||||||
Depreciation and amortization attributable to Cost of Revenues
|
(13,682
|
)
|
(11,810
|
)
|
(50,825
|
)
|
(25,367
|
)
|
||||||||||||||||
Gross profit (IFRS)
|
64,348
|
78,622
|
(18
|
%)
|
218,898
|
249,138
|
(12
|
%)
|
||||||||||||||||
Depreciation and amortization attributable to Cost of Revenues
|
13,682
|
11,810
|
50,825
|
25,367
|
||||||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization)
|
17,886
|
17,265
|
62,270
|
60,745
|
||||||||||||||||||||
Performance media cost
|
(5,392
|
)
|
(4,695
|
)
|
(17,810
|
)
|
(25,524
|
)
|
||||||||||||||||
Contribution ex-TAC (Non-IFRS)
|
90,524
|
103,002
|
(12
|
%)
|
314,183
|
309,726
|
1
|
%
|
Three months ended
December 31
|
Twelve months ended
December 31
|
|||||||||||||||||||||||
2023
|
2022 |
% |
2023
|
2022 |
% |
|||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
Net Income (loss)
|
3,227
|
5,061
|
(36
|
%)
|
(21,487
|
)
|
22,737
|
(195
|
%)
|
|||||||||||||||
Acquisition related costs
|
-
|
93
|
171
|
6,085
|
||||||||||||||||||||
Amortization of acquired intangibles
|
14,931
|
8,496
|
42,952
|
20,768
|
||||||||||||||||||||
Restructuring
|
-
|
307
|
796
|
307
|
||||||||||||||||||||
Stock-based compensation expense
|
1,386
|
7,986
|
19,169
|
50,505
|
||||||||||||||||||||
Other expense
|
-
|
540
|
1,765
|
540
|
||||||||||||||||||||
Tax effect of Non-IFRS adjustments (1)
|
(5,086
|
)
|
(262
|
)
|
(11,153
|
)
|
(9,130
|
)
|
||||||||||||||||
Non-IFRS Income
|
14,458
|
22,221
|
(35
|
%)
|
32,213
|
91,812
|
(65
|
%)
|
||||||||||||||||
Weighted average shares outstanding—diluted (in millions) (2)
|
147.5
|
147.6
|
145.2
|
153.1
|
||||||||||||||||||||
Non-IFRS diluted Earnings Per Share (in USD)
|
0.10
|
0.15
|
(35
|
%)
|
0.22
|
0.60
|
(63
|
%)
|
(1) |
Non-IFRS income includes the estimated tax impact from the expense items reconciling between net income (loss) and non-IFRS income
|
(2) |
Non-IFRS earnings per share is computed using the same weighted-average number of shares that are used to compute IFRS earnings per share
|
December 31
|
||||||||||||
2023
|
2022
|
|||||||||||
Note
|
USD thousands
|
|||||||||||
Assets
|
||||||||||||
ASSETS:
|
||||||||||||
Cash and cash equivalents
|
10
|
234,308
|
217,500
|
|||||||||
Trade receivables, net
|
8
|
201,973
|
219,837
|
|||||||||
Other receivables
|
8
|
8,293
|
23,415
|
|||||||||
Current tax assets
|
7,010
|
750
|
||||||||||
TOTAL CURRENT ASSETS
|
451,584
|
461,502
|
||||||||||
Fixed assets, net
|
5
|
21,401
|
29,874
|
|||||||||
Right-of-use assets
|
6
|
31,900
|
23,122
|
|||||||||
Intangible assets, net
|
7
|
362,000
|
398,096
|
|||||||||
Deferred tax assets
|
4
|
12,393
|
18,161
|
|||||||||
Investment in shares
|
18
|
25,000
|
25,000
|
|||||||||
Other long-term assets
|
525
|
406
|
||||||||||
TOTAL NON-CURRENT ASSETS
|
453,219
|
494,659
|
||||||||||
TOTAL ASSETS
|
904,803
|
956,161
|
||||||||||
Liabilities and shareholders’ equity
|
||||||||||||
LIABILITIES:
|
||||||||||||
Current maturities of lease liabilities
|
6
|
12,106
|
14,104
|
|||||||||
Trade payables
|
9
|
183,296
|
212,690
|
|||||||||
Other payables
|
9
|
29,098
|
44,355
|
|||||||||
Current tax liabilities
|
4,937
|
9,417
|
||||||||||
TOTAL CURRENT LIABILITIES
|
229,437
|
280,566
|
||||||||||
Employee benefits
|
237
|
238
|
||||||||||
Long-term lease liabilities
|
6
|
24,955
|
15,234
|
|||||||||
Long-term debt
|
11
|
99,072
|
98,544
|
|||||||||
Other long-term liabilities
|
6,800
|
8,802
|
||||||||||
Deferred tax liabilities
|
4
|
754
|
1,162
|
|||||||||
TOTAL NON-CURRENT LIABILITIES
|
131,818
|
123,980
|
||||||||||
TOTAL LIABILITIES
|
361,255
|
404,546
|
||||||||||
SHAREHOLDERS’ EQUITY:
|
15
|
|||||||||||
Share capital
|
417
|
413
|
||||||||||
Share premium
|
410,563
|
400,507
|
||||||||||
Other comprehensive loss
|
(2,441
|
)
|
(5,801
|
)
|
||||||||
Retained earnings
|
135,009
|
156,496
|
||||||||||
TOTAL SHAREHOLDERS’ EQUITY
|
543,548
|
551,615
|
||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
904,803
|
956,161
|
Chairman of the Board of Directors
|
CEO
|
CFO
|
Year ended
December 31
|
||||||||||||||||
2023
|
2022
|
2021
|
||||||||||||||
Note
|
USD thousands
|
|||||||||||||||
Revenues
|
12
|
331,993
|
335,250
|
341,945
|
||||||||||||
Cost of Revenues (Exclusive of depreciation and amortization shown separately below)
|
13
|
62,270
|
60,745
|
71,651
|
||||||||||||
Research and development expenses
|
49,684
|
33,659
|
18,422
|
|||||||||||||
Selling and marketing expenses
|
105,914
|
89,953
|
74,611
|
|||||||||||||
General and administrative expenses
|
14
|
51,051
|
68,005
|
63,499
|
||||||||||||
Depreciation and amortization
|
78,285
|
42,700
|
40,259
|
|||||||||||||
Other expenses (income), net
|
1,765
|
(4,564
|
)
|
(959
|
)
|
|||||||||||
Total operating costs
|
286,699
|
229,753
|
195,832
|
|||||||||||||
Operating Profit (loss)
|
(16,976
|
)
|
44,752
|
74,462
|
||||||||||||
Financing income
|
(8,192
|
)
|
(2,284
|
)
|
(483
|
)
|
||||||||||
Financing expenses
|
10,200
|
4,611
|
2,670
|
|||||||||||||
Financing expenses, net
|
2,008
|
2,327
|
2,187
|
|||||||||||||
Profit (loss) before taxes on income
|
(18,984
|
)
|
42,425
|
72,275
|
||||||||||||
Tax benefit (expenses)
|
4
|
(2,503
|
)
|
(19,688
|
)
|
948
|
||||||||||
Profit (loss) for the year
|
(21,487
|
)
|
22,737
|
73,223
|
||||||||||||
Other comprehensive income (loss) items:
|
||||||||||||||||
Foreign currency translation differences for foreign operations
|
2,126
|
(6,499
|
)
|
(2,632
|
)
|
|||||||||||
Foreign currency translation for subsidiary sold reclassified to profit and loss
|
1,234
|
-
|
-
|
|||||||||||||
Total other comprehensive income (loss) for the year
|
3,360
|
(6,499
|
)
|
(2,632
|
)
|
|||||||||||
Total comprehensive income (loss) for the year
|
(18,127
|
)
|
16,238
|
70,591
|
||||||||||||
Earnings per share
|
||||||||||||||||
Basic earnings (loss) per share (in USD)
|
16
|
(0.15
|
)
|
0.15
|
0.51
|
|||||||||||
Diluted earnings (loss) per share (in USD)
|
16
|
(0.15
|
)
|
0.15
|
0.48
|
Share capital
|
Share premium
|
Other comprehensive income (loss)
|
Retained Earnings
|
Total
|
||||||||||||||||
USD thousands
|
||||||||||||||||||||
Balance as of January 1, 2021
|
380
|
264,831
|
3,330
|
60,472
|
329,013
|
|||||||||||||||
Total Comprehensive income (loss) for the year
|
||||||||||||||||||||
Profit for the year
|
-
|
-
|
-
|
73,223
|
73,223
|
|||||||||||||||
Other comprehensive loss:
|
||||||||||||||||||||
Foreign currency translation
|
-
|
-
|
(2,632
|
)
|
-
|
(2,632
|
)
|
|||||||||||||
Total comprehensive income (loss) for the year
|
-
|
-
|
(2,632
|
)
|
73,223
|
70,591
|
||||||||||||||
Transactions with owners, recognized directly in equity
|
||||||||||||||||||||
Revaluation of liability for put option on non- controlling interests
|
-
|
-
|
-
|
64
|
64
|
|||||||||||||||
Own shares acquired
|
(3
|
)
|
(6,640
|
)
|
-
|
-
|
(6,643
|
)
|
||||||||||||
Share based compensation
|
-
|
41,822
|
-
|
-
|
41,822
|
|||||||||||||||
Exercise of share options
|
17
|
1,353
|
-
|
-
|
1,370
|
|||||||||||||||
Issuance of shares
|
47
|
136,111
|
-
|
-
|
136,158
|
|||||||||||||||
Issuance of Restricted shares
|
1
|
(1
|
)
|
-
|
-
|
-
|
||||||||||||||
Balance as of December 31, 2021
|
442
|
437,476
|
698
|
133,759
|
572,375
|
Total Comprehensive Income (loss) for the year
|
||||||||||||||||||||
Profit for the year
|
-
|
-
|
-
|
22,737
|
22,737
|
|||||||||||||||
Other comprehensive loss:
|
||||||||||||||||||||
Foreign Currency Translation
|
-
|
-
|
(6,499
|
)
|
-
|
(6,499
|
)
|
|||||||||||||
Total comprehensive Income (loss) for the year
|
-
|
-
|
(6,499
|
)
|
22,737
|
16,238
|
||||||||||||||
Transactions with owners, recognized directly in equity
|
||||||||||||||||||||
Own shares acquired
|
(50
|
)
|
(86,202
|
)
|
-
|
-
|
(86,252
|
)
|
||||||||||||
Share based compensation
|
-
|
47,049
|
-
|
-
|
47,049
|
|||||||||||||||
Exercise of share options
|
21
|
2,184
|
-
|
-
|
2,205
|
|||||||||||||||
Balance as of December 31, 2022
|
413
|
400,507
|
(5,801
|
)
|
156,496
|
551,615
|
Share capital
|
Share premium
|
Other comprehensive income (loss)
|
Retained Earnings
|
Total
|
||||||||||||||||
USD thousands
|
||||||||||||||||||||
Balance as of January 1, 2023
|
413
|
400,507
|
(5,801
|
)
|
156,496
|
551,615
|
Total Comprehensive Income (loss) for the year
|
||||||||||||||||||||
Loss for the year
|
-
|
-
|
-
|
(21,487
|
)
|
(21,487
|
)
|
|||||||||||||
Other comprehensive income:
|
||||||||||||||||||||
Foreign Currency Translation
|
-
|
-
|
2,126
|
-
|
2,126
|
|||||||||||||||
Foreign Currency Translation for subsidiary sold
|
-
|
-
|
1,234
|
-
|
1,234
|
|||||||||||||||
Total comprehensive Income (loss) for the year
|
-
|
-
|
3,360
|
(21,487
|
)
|
(18,127
|
)
|
|||||||||||||
Transactions with owners, recognized directly in equity
|
||||||||||||||||||||
Own shares acquired
|
(8
|
)
|
(9,306
|
)
|
-
|
-
|
(9,314
|
)
|
||||||||||||
Share based compensation
|
-
|
19,141
|
-
|
-
|
19,141
|
|||||||||||||||
Exercise of share options
|
12
|
221
|
-
|
-
|
233
|
|||||||||||||||
Balance as of December 31, 2023
|
417
|
410,563
|
(2,441
|
)
|
135,009
|
543,548
|
Year ended
December 31
|
||||||||||||
2023
|
2022
|
2021
|
||||||||||
USD thousands
|
||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Profit (loss) for the year
|
(21,487
|
)
|
22,737
|
73,223
|
||||||||
Adjustments for:
|
||||||||||||
Depreciation and amortization
|
78,285
|
42,700
|
40,259
|
|||||||||
Net financing expense
|
1,699
|
2,147
|
2,023
|
|||||||||
Loss from disposals of fixed and intangible assets
|
2
|
542
|
-
|
|||||||||
Loss (gain) on leases modification
|
119
|
56
|
(377
|
)
|
||||||||
Loss (gain) on sale of business unit
|
1,765
|
-
|
(982
|
)
|
||||||||
Share-based compensation and restricted shares
|
19,169
|
50,505
|
42,818
|
|||||||||
Tax (benefit) expense
|
2,503
|
19,688
|
(948
|
)
|
||||||||
Change in trade and other receivables
|
30,603
|
57,050
|
(11,676
|
)
|
||||||||
Change in trade and other payables
|
(43,077
|
)
|
(100,145
|
)
|
26,845
|
|||||||
Change in employee benefits
|
(1
|
)
|
(179
|
)
|
(69
|
)
|
||||||
Income taxes received
|
352
|
1,175
|
2,231
|
|||||||||
Income taxes paid
|
(8,721
|
)
|
(14,784
|
)
|
(3,185
|
)
|
||||||
Interest received
|
8,016
|
2,103
|
496
|
|||||||||
Interest paid
|
(8,486
|
)
|
(587
|
)
|
(570
|
)
|
||||||
Net cash provided by operating activities
|
60,741
|
83,008
|
170,088
|
|||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||
Change in pledged deposits, net
|
1,498
|
(213
|
)
|
(11
|
)
|
|||||||
Payments on finance lease receivable
|
1,112
|
1,306
|
2,454
|
|||||||||
Repayment of long-term loans
|
51
|
-
|
-
|
|||||||||
Acquisition of fixed assets
|
(4,495
|
)
|
(6,433
|
)
|
(3,378
|
)
|
||||||
Acquisition and capitalization of intangible assets
|
(15,126
|
)
|
(8,750
|
)
|
(4,966
|
)
|
||||||
Proceeds from sale of business unit
|
-
|
1,180
|
415
|
|||||||||
Investment in shares
|
-
|
(25,000
|
)
|
-
|
||||||||
Acquisition of subsidiaries, net of cash acquired
|
-
|
(195,084
|
)
|
(11,001
|
)
|
|||||||
Net cash used in investing activities
|
(16,960
|
)
|
(232,994
|
)
|
(16,487
|
)
|
||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||
Acquisition of own shares
|
(9,518
|
)
|
(86,048
|
)
|
(6,643
|
)
|
||||||
Proceeds from exercise of share options
|
233
|
2,205
|
1,370
|
|||||||||
Leases repayment
|
(17,262
|
)
|
(12,018
|
)
|
(10,009
|
)
|
||||||
Issuance of shares, net of issuance cost
|
-
|
-
|
134,558
|
|||||||||
Receipt of long-term debt, net of transaction cost
|
-
|
98,917
|
-
|
|||||||||
Payment of financial liability
|
-
|
-
|
(2,414
|
)
|
||||||||
Net cash provided by (used in) financing activities
|
(26,547
|
)
|
3,056
|
116,862
|
||||||||
Net increase (decrease) in cash and cash equivalents
|
17,234
|
(146,930
|
)
|
270,463
|
||||||||
CASH AND CASH EQUIVALENTS AS OF THE BEGINNING OF YEAR
|
217,500
|
367,717
|
97,463
|
|||||||||
EFFECT OF EXCHANGE RATE FLUCTUATIONS ON CASH AND CASH EQUIVALENTS
|
(426
|
)
|
(3,287
|
)
|
(209
|
)
|
||||||
CASH AND CASH EQUIVALENTS AS OF THE END OF YEAR
|
234,308
|
217,500
|
367,717
|