Innovid (CTV Quick QuoteCTV - Free Report) shares have rallied 70.2% over the past six months, outperforming the Zacks Computer & Technology sector’s appreciation of 7.4% and the Zacks Internet - Software industry’s return of 14.4%.

Innovid has outperformed its competitor, Alphabet (GOOGL Quick QuoteGOOGL - Free Report) , which provides ad-serving and creative personalization solutions. Alphabet shares have gained 5.8% over the past six months.

The outperformance can be attributed to the growing adoption of connected TV advertising, expanded software-only offerings, and partnerships with major platforms like Netflix (NFLX Quick QuoteNFLX - Free Report) and LG Ad Solutions. 

In the third quarter of 2024, Innovid experienced strong growth in its connected TV ad serving and personalization revenues, which grew 12% year over year. 

Innovid video impressions also reached a new record high of 58% of total video impressions, reflecting the increasing shift of client budgets from linear TV to connected TV.

Innovid’s Growth Fueled by Key Partnerships

Innovid expanded its partnerships with key players such as Netflix, Alltold, Nielsen, IRIS.TV and Disney (DIS Quick QuoteDIS - Free Report) in the advertising ecosystem have been major growth drivers for its success.

In the third quarter of 2024, the company expanded its partnership with Netflix as one of the two partners for impression verification in Netflix’s ad-supported tier. This partnership enhanced Innovid’s visibility and opened up more opportunities to serve ads on a major ad-supported platform as Netflix continues to scale its ad business.

CTV’s partnership with Disney enhances real-time creative optimization and measurement across Disney’s streaming platforms, enabling advertisers to adjust campaigns based on immediate consumer insights.

The company recently announced its partnership with IRIS.TV on Dec. 18, 2024, to integrate its content data marketplace and contextual relevance indexing into Innovid’s measurement platform. This will empower advertisers with actionable insights to optimize campaigns while prioritizing privacy.

The launch and expansion of Innovid’s Harmony initiative in the third quarter of 2024, aimed to optimize CTV advertising infrastructure, further solidified the company’s position in the advertising landscape.

CTV Initiates Strong FY24 Guidance

Innovid’s strong growth in connected TV and an expanding clientele is expected to benefit the company’s financial performance.

For the fourth quarter of 2024, Innovid expects revenues between $37.5 million and $39.5 million. 

For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $39.02 million, indicating a year-over-year increase of 1.04%.

For the fourth quarter, the Zacks Consensus Estimate for earnings is pegged at 1 cent per share, which has remained unchanged in the past 30 days.

For full year 2024, the company expects revenues in the range of $150.5 million-$152.5 million, representing 8% year-over-year growth at the midpoint.

The Zacks Consensus Estimate for full year 2024 revenues is pegged at $151.96 million, indicating a year-over-year increase of 8.63%.

For full year 2024, the consensus mark for loss is pegged at 7 cents per share, which remained unchanged in the past 30 days.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

What Should Investors Do With CTV Stock?

Innovid’s focus on solidifying its leadership in connected TV, particularly through its Harmony initiative, AI-powered capabilities, and ongoing collaborations with major streaming platforms, is expected to have been a tailwind for CTV.

The company is also dedicated to enhancing client retention and increasing operational efficiencies within its advertising platform, making the stock attractive to investors.

CTV currently sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank stocks here.