Nexxen set to expand partnership with VIDAA in North America

NEW YORK - Nexxen International Ltd. (NASDAQ: NEXN), a global advertising technology platform with an impressive 83.3% gross profit margin and "GREAT" financial health according to InvestingPro, announced today its intention to extend and broaden its strategic partnership with smart TV platform VIDAA. The non-binding memorandum of understanding (MOU) aims to maintain Nexxen’s exclusive access to VIDAA’s Automatic Content Recognition (ACR) data globally and extend its ad monetization exclusivity to include display ads across VIDAA’s North American media. The company’s strong financial position, with more cash than debt on its balance sheet, positions it well for this strategic expansion.

The current agreement between Nexxen and VIDAA is due to expire at the end of 2026. The proposed extension would not only continue the existing terms but also allow Nexxen to invest further in VIDAA, potentially accelerating VIDAA’s smart TV market growth in the U.S. With revenue growth of 10.09% in the last twelve months and a market capitalization of $714 million, InvestingPro analysis suggests the stock is currently undervalued, making this strategic move particularly interesting for investors. Discover 12 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.

The MOU is a preliminary step, subject to the negotiation of definitive agreements and customary closing conditions. If finalized, the extended partnership would deepen the companies’ strategic alignment, leveraging Nexxen’s data and advanced TV capabilities alongside VIDAA’s smart TV platform, which boasts over 40 million connected devices worldwide.

Nexxen, with its unified technology stack that includes a demand-side platform (DSP) and supply-side platform (SSP), serves advertisers, agencies, publishers, and broadcasters globally. The company’s data platform is central to its operations, enabling a wide range of services from discovery to monetization and optimization.

VIDAA, established in 2014, operates a user-friendly smart TV platform with more than 400 brand partners. It emphasizes ease of use, speed, and security, incorporating apps, streaming services, and live TV into a single entertainment hub.

The potential expansion of Nexxen’s and VIDAA’s partnership comes as the smart TV and advanced advertising sectors continue to evolve. The extension of this partnership could further position Nexxen as a key player in North American ad monetization for smart TVs. The company’s strong momentum is evident in its remarkable 131.69% stock price return over the past year, supported by robust fundamentals and efficient operations. Get detailed insights into Nexxen’s growth potential with InvestingPro’s comprehensive research report, part of our coverage of 1,400+ US stocks.

The information in this article is based on a press release statement. It is important to note that the MOU is non-binding, and the future of the partnership is contingent upon successful negotiations and fulfillment of the closing conditions.

In other recent news, Nexxen reported impressive first-quarter results for 2025, exceeding expectations with adjusted earnings per share of $0.16, compared to analyst estimates of $0.07. The company’s revenue reached $78.33 million, surpassing the consensus forecast of $73.2 million, marking a 5% year-over-year increase. Nexxen’s Connected TV (CTV) revenue surged by 40% year-over-year to $26.4 million, significantly contributing to the overall programmatic revenue growth of 10%. Adjusted EBITDA nearly doubled to $23.1 million, with a margin expansion to 31% from 17% a year ago.

Canaccord Genuity maintained its Buy rating for Nexxen, setting a price target of $14, while Citizens JMP raised its price target to $15 from $11, highlighting the company’s strong performance. Despite some softness in the advertising market observed in April, Nexxen has reiterated its fiscal year 2025 guidance, projecting contribution ex-TAC of approximately $380 million and adjusted EBITDA of about $125 million. The company attributes the market softness to delays in advertising campaigns, expecting the spending to resume in the second half of the year.

Nexxen also completed a $50 million share repurchase program and initiated a new $50 million buyback initiative. The firm ended the quarter with $164.7 million in cash and no long-term debt, positioning itself well for future growth. Analyst firms like Canaccord and Citizens JMP express confidence in Nexxen’s strategies and financial health, anticipating that the company will navigate the current market challenges effectively.

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