Nexxen Reports Strong Q4 2024 Results with Record Revenue Growth

Nexxen has reported strong fourth-quarter results, highlighting significant revenue growth and profitability. The company's adjusted EBITDA margin reached 42%, driven by increased customer spending and enhanced platform capabilities, setting a positive outlook for 2025.

Date: 08-03-2025

AI Rating: 8

Strong Financial Performance
Nexxen showcased a robust financial performance, generating a record contribution ex-TAC of $105.2 million in Q4 2024, reflecting a 16% year-over-year growth. The company's adjusted EBITDA margin increased to 42%, from 35% in Q4 2023. This impressive increase is attributed to higher contribution ex-TAC and greater customer spend consolidation.

Earnings Per Share (EPS)
During Q4 2024, the company reported a non-IFRS diluted EPS of $0.48, significantly increasing from $0.20 in Q4 2023. This improvement could positively impact investor sentiment and stock prices as it indicates better profitability and operational efficiency.

Revenue Growth
Nexxen's programmatic revenue reached $98.7 million, marking a 15% growth from Q4 2023, alongside a substantial 86% increase in CTV revenue year-over-year, reaching $37 million. This strong growth trajectory signals a strong demand for Nexxen’s services and may enhance future revenue expectations.

Net Income and Profit Margins
The company’s adjusted EBITDA growth implies a significant increase in profitability, underscoring Nexxen's capability to improve profit margins. This signals to investors that the company is effectively managing operational costs while increasing revenue.

Free Cash Flow (FCF)
Nexxen generated $52.3 million in net cash from operating activities in Q4, up from $43.6 million year-over-year. This growth in cash flow suggests a stronger liquidity position, which can be used for various strategic initiatives.

Outlook
Looking forward, Nexxen anticipates significant growth in 2025, with expected contribution ex-TAC around $380 million and programmatic revenue making up approximately 90% of this total. Such positive forecasts can create optimism among investors, potentially driving up stock prices as market confidence grows.

Stocks: NEXN