Tremor International Ltd (TRMR) Q2 2021 Earnings Call Transcript

Tremor International Ltd (TRMR 0.18%)
Q2 2021 Earnings Call
Aug 19, 2021, 9:00 a.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Welcome to Tremor International second-quarter and H1 2021 conference call. [Operator instructions] This conference call is being recorded, and a replay of today's call will be made available on the Investor Relations section of Tremor's website and will remain posted there for the next 30 days. I will now hand the call over to Todd Fromer, principal and president at KCSA, for introductions and reading of the safe harbor statement. Please go ahead.

Todd Fromer -- Investor Relations Contact

Thank you, operator. Good morning, everyone, and welcome to Tremor International's second-quarter and first-half 2021 results conference call. With us on today's call are Ofer Druker, Tremor's chief executive officer; and Sagi Niri, chief financial officer. This morning, we issued a press release, which you can access on our website at investors.tremorinternational.com.

During today's conference call, we may make forward-looking statements. All statements other than statements of historical fact could be deemed as forward looking. We advise caution in reliance on forward-looking statements. These statements include, without limitation, projections about our future financial results or future business and statements concerning the expected development, performance, and market share or competitive performance relating to products, and services.

All forward-looking statements are based on information available to us as of the date of this call. These statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those implied by these forward-looking statements, including unexpected changes in our business. More detailed information about these risk factors and additional risk factors are set forth in our filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled risk factors in our registration statement on Form F-1. Tremor does not intend to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise, except as required by law.

Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in IFRS and non-IFRS terms. We refer you to the company's press release for additional details, including definitions of non-IFRS items and reconciliation of IFRS to non-IFRS results. At this time, it is my pleasure to introduce Ofer Druker, CEO of Tremor International. Ofer, please go ahead.

Ofer Druker -- Chief Executive Officer

Thank you, Todd, and welcome to everyone for joining today's earnings webcast. And this is our first major communication since listing on the Nasdaq on June 22nd. Before reviewing the highlights of our second quarter and first half of 2021 results, I would like to talk briefly about who we are, the market in which we operate, and how we have positioned the business for future growth. Afterward, our chief financial officer, Sagi Niri, will review the highlights of our Q2 financial results.

Following that, we'll be able to take your questions. Before getting into the details, Tremor delivered amazing Q2 results that when combined with Q1 represent great progress and testament to the success of our strategy driven by our end-to-end platform, which is focused on video, data, and Connected TV. For the three months that ended June 30, '21, we generated contribution ex-TAC of $74 million, compared to 20.4 -- $28.5 million in Q2 2020, a 160% growth; and adjusted EBITDA of $37 million, compared to 1.2 million in Q2 2020, 29 times growth. And for the six months that ended in June 30, '21, we generated contribution ex-TAC of $137 million, compared to $61 million in H1 2020, 125% growth; and adjusted EBITDA of $65 million, compared to $1.8 during the same period last year, 35 times growth.

Our CTV revenue grew 280% in Q2 2021 versus Q2 2020 and grew 249% in H1 2021 compared to H1 2020. Central to this performance is the strength of our end-to-end technology and business platform. Later in this presentation, I will also touch upon the progress we achieved in the CTV, which is also a key performance to our driver for Tremor. We also achieved a 46% EBITDA margin in Q2 2021 on a reported revenue basis and a 51% margin on net revenue, which is higher than the median of the direct fees.

Finally, 92% of our net revenues in Q2 2021 was generated in the U.S., highlighting to strength in our most important market, but also showing the upside potential we have to expand our global footprint. I'm proud to say that Tremor is recognized by the industry as the leading video and Connected TV-focused adtech platform. For the second quarter of 2021, video and Connected TV comprised 82% of our revenue ex-TAC. Please note that for accounting purposes, we report contribution ex-TAC, but we view this as our net revenue.

Our mission. four years ago, we set a vision and plan to transform Tremor into a unique market-leading company, focused on video, data, and CTV delivered through a full end-to-end tech platform, capitalizing on our collective experience and expertise integrating companies, we handpicked and acquired companies that we are committed to investing in these areas and connected them to create a powerful platform. Successfully completing three major acquisitions in about three years, we have created what we believe is one of the leading end-to-end technology and business platform, offering video, data, and CTV. We further believe that owning an end-to-end platform comprised of our demand-side platform, supply side platform, and data management platform give us a competitive advantage in the marketplace.

The success of these forward-looking initiatives is the driving force behind the strong growth and financial results we reported earlier today. The high level of success we achieved completing the integration of Unruly, our last acquisition in January 2020 about a year ago, has translated into a strong organic growth and profitability. It's worth touching upon the fact that although COVID-19 proved particularly challenging in the first half of 2020, but it also serves as an opportunity for Tremor to focus our vision and accelerate our strategy, and ultimately, to evolve. We have built and positioned Tremor to achieve success for the long term, supported by favorable fundamental changes occurring within the advertising industry, which we believe will provide us with a long runway to grow over the coming years.

Now let's look at our core strengths and differentiation. Our core differentiation is grounded in our end-to-end business platform, which has validated our approach and is fueling our growth and profitability. Brands have increasingly become more sophisticated to how they reach their target audience while simultaneously seeking to simplify the execution of their campaigns. Tremor direct address this need by providing a flexible solution to address the increased complexity of the industry.

With many years of product development, experience, and knowledge, we have established credibility in the market for our best-in-class video and CTV capabilities. This level of experience is unique in the industry and is respected by our clients. The key trends driving our growth include the shift of advertising budget from broadcast and cable TV to digital platform; growth in usage of video; advertising formats; the importance of leveraging data together with significant scale in which to deliver amazing audience-targeting benefits and capabilities to our advertisers; the growth in CTV; and market trends, such as supply path optimization and the increased emphasis on consumer privacy around cookies. Video is the fastest-growing format in the U.S.

market in terms of ad spend and is viewed as the most engaging format by advertisers. We have established track record of video capabilities and expertise, resulting in almost 200% growth in our video segment year over year, which was significantly higher than the CAGR achieved by the industry. We are also focused on the fastest-growing channels by device, CTV, and mobile, which collectively accounts for 79% of our net revenues and 86% of our programmatic net revenues. Our CTV and mobile growth has significantly outpaced the industry at 167% year over year, compared to 20% for CTV and 12% for mobile in the U.S.

As the fastest-growing advertising medium by expense, CTV represents a tremendous growth opportunity for Tremor. Currently, there is an anomaly between the ad spend on CTV, which remains lower relatively to other digital advertising channel, and the extremely high viewership and engagement from consumer who are consuming content through CTV data. We expect that ad spend will catch up to the eyeballs and advertisers will continue allocating a meaningful portion of their budget to CTV, which will benefit Tremor as CTV represents 28% of our revenues and continues to increase. Tremor works with premium and well-known brands that have global reach and a large addressable digital expense.

Our revenues is widely spread across a variety of verticals including entertainment, CPG, finance, restaurant, travel, health, and many more. Our emphasis on data is being supported by our ability to layer data through our proprietary DMP and our unique partnership with data provider. This enable our advertisers to target their audience with precision through the growing emphasis on CTV, where we offer a strong reach through the growing number of our partnership. We continue to partner closely with top brands in our industry and are proud of this strong global partnership.

Two partnership highlights from Q2 include our integration with LiveRamp that will help connect marketer demand to high-quality publisher inventory across channel while fortifying data-driven customers' insight for improved activation and measurement and our launch of in-house TV retargeting, which will help our advertisers' partner to increase their audience reach. Finally, our in-house creative studio, truly, pronounced truly, continues to be a differentiation for Tremor International, with some of the world's top brands leaning into our bespoke solution. In Q2 alone, 150 -- 175 different brands ran over 800 million impressions of truly custom creative through Tremor video and Unruly platform, and we sold $18 million in custom creative in Q2. With those introductory comments complete, it is my pleasure to turn the call to Sagi Niri to review our financial results.

Sagi Niri -- Chief Financial Officer

Thank you, Ofer, and thank you, everyone, for joining us today. We are certainly encouraged to see our momentum building as we move ahead of the first half of 2021. Today, I'll be discussing some of the highlights of our Q2 performance as well as some of the key financial and operational drivers during the quarter. Tremor International achieved another outstanding record quarter in Q2 with revenue and adjusted EBITDA propelled by organic revenue growth.

In Q2 2021, we've completed an exciting dual-listing process resulting in an equity raise with investor endorsement in Tremor, bringing the total gross proceeds of our offering to approximately 147.9 million before underwriter discounts and fees. For the quarter ended June 30, 2021, Tremor generated $74 million in net revenue, the key metric we focus on in evaluating revenue performance, an increase of 159% year over year, significantly stronger with the digital ad industry growth. Our CTV revenue grew 280% in Q2 2021 versus Q2 2020 and are poised to continue the strong momentum as increasingly more business is being transacted through programmatic platforms. During the same period, our video revenues grew almost 200%, which again was much faster than the forecasted CAGR for video advertising.

As a result of running an efficient business, we achieved adjusted EBITDA of $37 million in Q2 2021 and $65 million in H1 2021 or adjusted EBITDA margin of 51% and 47% out of net revenue, respectively. Our net revenue grew 155% in Q2 year over year and came in at $74 million for Q2 2021 versus $29 million in Q2 2020, all of which was organic growth. We continue to consistently generate meaningfully positive EBITDA while investing in the critical areas of our business that can drive our future growth. We have been generating positive EBITDA since 2014 and ended Q2 2021 and H1 2021 with $37 million and $65 million, respectively, representing again a 51% and 47% margin on net revenue, respectively.

We saw very strong year-over-year momentum in Q2 and H1 2021, which increased our EBITDA by 29 times and 35 times, respectively, compared to the same period in 2020 underpinned by enhanced fulfillment of our omnichannel product offering, the full integration of the Unruly business offering in relation into Tremor and the utilization of our economy of scale and efficiency through our cutting-edge tech platform, allowing us to translate the majority of the growth directly into the bottom line. Our early entrance into CTV, coupled with the enhancements we made to our offering during the pandemic, resulted in 280% year-over-year CTV revenue growth in Q2 2021. Our video net revenue increased 199% from $20 million in Q2 2020 to $61 million in Q2 2021 and was driven by our video capabilities and focus. Even though there is seasonality in the industry, we experienced significant growth in the first half of 2021, during which we exceeded market expectations and proved that our strategy is working.

We believe we have a competitive advantage from our omnichannel end-to-end platform versus one-dimensional solution. Tremor's structure of running its own data centers alongside cloud-based computing allows us to deliver consistent performance, guaranteed quality, and massive cost efficiency. We have an efficient and profitable business model with high efficiency around operating costs, leading to maximum operating leverage, economies of scale, and strong productivity. Among our adtech peers, Tremor has one of the highest margin and operational profitability, resulting in 46% adjusted EBITDA margin in Q2 2021 on a reported revenue basis and 51% on a net revenue basis.

Turning to our cash flow. We generated net cash from operating activities of $57 million for Q2 2021 versus $7 million in Q2 2020, uplift of approximately 700%. We ended the quarter with cash and cash equivalent of 275 million, up over from 172 million from the prior quarter, which with disregarding net proceeds of our offering grew $54 million in the quarter. By 31st of July, we had $314 million cash and cash equivalent with no debt.

We also experienced 99% free cash flow conversion during the quarter. Non-IFRS diluted earnings per share of class A common stock is $0.23 for the quarter versus $0.02 loss on Q2 2020. And finally, I'll now turn to our outlook. For the third quarter of 2021, we expect net revenue to be at least $75 million, which represent year-over-year growth of approximately 50%; and adjusted EBITDA to be approximately $37 million, which represent year-on-year growth of approximately 85%; and expected adjusted EBITDA margin of 49% as a percentage of net revenue.

We believe that our growth profile and healthy balance sheet positions us extremely well to take advantage of the rapidly growing market opportunity in front of us. And with my remarks completed, I'll turn the call back to Ofer.

Ofer Druker -- Chief Executive Officer

Thank you, Sagi. To summarize, Tremor operates in the fastest-growing segment of digital advertising, an ecosystem consisting of video, CTV, and usage of data. These fastest-growing areas of digital advertising accounts for 85% of our revenues. We created an end-to-end platform that addresses the opportunities in the market, mainly around the staticity clients are looking for, uses of data, and supply path optimization.

Our success has been proven out by the strength of our operational growth and financial performance. Our focus on CTV is evident, as CTV represents approximately 28% of our net revenue and is expected to be a driving force in our growth going forward and in our product road map. The combination of our strong tech platform, our soft activity, and discipline provide an excellent road map for our continued operation and financial success. We strongly believe that we have a lot of room to grow and remain confident for the future.

Operator, we'll now open the call for investors' questions. Thank you.

Questions & Answers:

Operator

[Operator instructions] Our first question comes from the line of Laura Martin from Needham. Your line is now open.

Laura Martin -- Needham & Company -- Analyst

Can you hear me OK, you guys?

Ofer Druker -- Chief Executive Officer

Yes.

Laura Martin -- Needham & Company -- Analyst

Great. Fantastic. Maybe a --

Ofer Druker -- Chief Executive Officer

Good morning.

Laura Martin -- Needham & Company -- Analyst

Good morning. Great numbers. Congratulations, you guys. So I'm very interested in two things.

One is your CTV versus online video. I'm very interested in whether you see CTV cannibalizing online video or whether you see the growth coming from different types of advertisers in the two categories? And then my second question is on News Corp. You have this wonderful exclusive deal with News Corp to sell certain of their outstream video units until the end of 2022. Just as a housekeeping item, how much of your total revenue did that -- did News Corp represent in the second quarter? Thank you.

Ofer Druker -- Chief Executive Officer

OK. So for the first question about if CTV is cannibalizing online video, both sectors are basically growing. We have growth that is coming from both sections. When we're looking at CTV, this is something that people are basically expanding into lately for us.

So we have clients that are coming directly from CTV, but we have also clients that we basically work with them in the past, and they are expanding. But we see both channels growing. Regarding the questions about News Corp, Sagi, can you give like the numbers about what is the -- if it's side of the activity? Thank you.

Sagi Niri -- Chief Financial Officer

Yes. So first of all, of course, we are very happy with the deal with News Corp. Secondly, the deal is around £30 million for three years. And if I'm taking it per quarter, it's not meaningful out of our net revenues.

Laura Martin -- Needham & Company -- Analyst

OK. Thanks very much. Great numbers.

Ofer Druker -- Chief Executive Officer

Thank you.

Sagi Niri -- Chief Financial Officer

Thank you.

Operator

Thank you. Our next question comes from the line of Matt Swanson from RBC Capital Markets. Your line is now open.

Matt Swanson -- RBC Capital Markets -- Analyst

Yeah. Thank you and I'll add my congratulations on the strong quarter. Ofer, just kind of following up on Laura's question. So obviously, results in CTV kind of the highlight.

Could you expand on where you're focusing your investments in this market? And then I was really interested in the launch of the in-house TV retargeting and measurement solution. So if you could give us a little bit more color on that from the press release.

Ofer Druker -- Chief Executive Officer

Of course. So I will start maybe with the TV retargeting. So we are basically doing TV retargeting for a couple of years. In the past year, we changed our providers, and we are using now another provider that works with us in order to build the solution.

That is providing like a very strong solution in the market regarding ACR and TV retargeting. And we are integrated into a major -- in the major verticals that we are working with already for a couple of years, mostly entertainment, travel, automobile, and so on in CPG that we are using this technology with. And we see great success. And one of the major advantages that we got is the full end-to-end solution that we are driving.

And in that matter, in this scenario, it's also helping us to integrate data whenever we are basically using our DSP, when we are running managed campaigns or when we are selling PMPs, and we are able basically to offer this data as a layer around the media that we are selling. So in these both occasions, we can basically use this solution that we integrated. Regarding the question about the CTV, can you basically tell me what you are looking to understand? Because I need to understand -- what is your question?

Matt Swanson -- RBC Capital Markets -- Analyst

Yeah, definitely. So just seeing how fast the market is growing, what are kind of your focus areas of investment around the market to continue to gain share? Like is it in technology? Is it targeting new customers, the TV retargeting? Essentially, like you said, there's a divergence in viewership versus ad spend. Is there anything company specific you could do to kind of drive that?

Ofer Druker -- Chief Executive Officer

I agree. So basically, what we see is that -- I think that you need when you are trying to capture the wave of CTV, we need to put emphasis on all the elements, meaning we are putting much more emphasis on technology and product innovation. We said in the past that we are going to grow our investment in innovation and mostly around CTV, and that's what we are doing now. So this is something that we are doing, building our -- launching more and more capabilities around CTV that we are offer to our clients successfully.

Regarding clients, we have -- we are one of the companies that got like a really strong sales team on the ground in the U.S. and globally. And this team is offering, of course, CTV opportunities to new clients but also to clients that we used to work with them in the past. And we see great adoption by clients that used to work with us in other formats, mostly video, shifting also to CTV because of the advantages that CTV is offering, mostly reach, and also engagement.

According to our studies that we did in the past year, we saw that also the engagement around CTV is very strong and compared to other formats. So it's like accelerating the usage of CTV as a format that basically advertisers are using in order to reach their audiences. So I think it's a mix. Answering your question, Matt, I think it's a mix of efforts.

One of them is on the innovation and product. The second one is increasing the sales also in all fronts, meaning increasing the sales which we are bringing new clients and also encouraging and educating clients to push their budgets into CTV because this is basically for them also is the future.

Matt Swanson -- RBC Capital Markets -- Analyst

That's extremely helpful. And I can add one more for Sagi. Just being your first-quarterly call, could you just talk to us a little bit about your philosophy around guidance? And any additional color on the macro environment that you might be thinking about when you're going through that process?

Sagi Niri -- Chief Financial Officer

Sure. So yes, it's the first-earning call we are doing as a dual-listed company that now is part of Nasdaq. I think that we gave guidance only for Q3 in order to be cautious. Of course, we will consider going forward maybe give a yearly forecast as well.

And when we are doing our forecast, of course, we have our platforms in place and we have the pipeline both on the demand side and the supply side that out of that, we can generate a model like you are doing and forecast next quarter and beyond that. And that's how we are doing that. On top, of course, the COVID-19 situation is not -- we didn't pass that as well. So we are trying to be cautious as well on that front because we are not aware or we are not sure what will happen next.

Another thing that is influencing our forecast going forward is, as we discussed before, we are going to invest much more now in products, in technology, in sales, and marketing in order to enhance our organic growth, and capture the market opportunity. And all of these parameter scores are influencing our forecast going forward.

Matt Swanson -- RBC Capital Markets -- Analyst

All right. Thanks for the time. Congrats again on numbers was [Inaudible]

Ofer Druker -- Chief Executive Officer

Thank you.

Sagi Niri -- Chief Financial Officer

Thank you.

Operator

Thank you. Our next question comes from the line of Ron Josey from JMP Securities. Your line is now open.

Ron Josey -- JMP Securities -- Analyst

Great. Thanks for taking the question. Another offer of congratulations here. Ofer, I wanted to follow up on CTV, which is what most are asking.

But we're seeing accelerating growth here and another impressive quarter. You mentioned in your remarks that CTV is not yet on par with engagement. And of course, we're seeing that as well. But can you just talk about the shift, what needs to happen for CTV ad spend to be on par with engagement? And any thoughts on time line here? That'd be very helpful.

And then, Sagi, following up on your comments just now on investments. Just can you talk to us a little bit more just around margins and where you see they might level off overall? Just -- we're seeing the benefits from the revenue scale follow the bottom line, and then margin guidance is extremely strong for 3Q as well. So talk to us about how you view margins longer term as well. Thank you, guys.

Ofer Druker -- Chief Executive Officer

OK. So I will start about CTV. Yes, there is -- when you look at, let's say, the level of engagement of users with CTV, it's really amazing to see. And I think that basically the pandemic just accelerated it because people are consuming much more content through CTV channels right now.

And when you look at that, I think that sometimes it takes -- from my experience, sometimes we know what the future will bring, but we don't know how long it will take us to reach this point. So I think that we feel like a graduate education and testing and adaptation of clients to use them more and more into CTV. And I think that this phenomena will grow. And I think that another element will allow more clients to get in is when the size of the CTV is growing, the size of the media is growing, and it will allow like also more, let's say, flexibility on pricing that will allow even more clients to jump into this opportunity and start buying media on CTV, which in the beginning was very expensive, and now it's changing over time.

So I think that it's hard to say to give like indication of time, but I think that we are in the middle of this revolution or process, where advertisers are basically now adopting new format of CTV. They are moving more and more budget into that. Some of them are already there and just moving more into this channel. And some of them are just testing and still exploring, if it makes sense to them to make this switch now or to wait or.

So sometimes it takes simply some time to make this adjustment in order to buy this new type of media. But overall, I think that -- if you ask me, I think that in the next one and a half year, until the end of next year, we'll see much more participation in CTV coming from different type of advertisers and different verticals that we started up this model and format and will grow it with -- in their budgets. I hope that I answered your question.

Ron Josey -- JMP Securities -- Analyst

Yes. Thank you, and --

Sagi Niri -- Chief Financial Officer

Regarding the question about margin, I think -- and we said it as well, among our adtech peers, I think we have one of the highest margin and operational profitability. I think that most of it are coming from the competitive advantage of our omnichannel end-to-end platform versus the other one-sided solution. And again, some things around our structure and data centers, and of course, the efficiency we have within our business, I think that some of it is coming as it's coming in other companies from the pandemic itself where some recurring costs are not being expensed anymore or at a very low level. But probably post the pandemic, it will get into the usual costs.

So we will see a little bit the profitability going down. And again, we are going to invest more in product R&D, sales, and marketing. Having said that, we will scale our revenues and net revenues up. So I think going forward, as we stated for Q3, still our margin is going to be high.

Ron Josey -- JMP Securities -- Analyst

Great. Thank you, guys.

Ofer Druker -- Chief Executive Officer

I think that also there is some philosophy that in the past, we were like more focused on EBITDA, and we are moving out to look more on growth. And this is, of course, a period of transformation that we are managing now.

Operator

Thank you. Our next question comes from the line of Lara Lee from Jefferies. Your line is now open.

Unknown speaker

Hi, guys. So firstly, congrats on the strong results. So I guess I just have one question. So could you maybe provide a comment on the acquisition pipeline given like you guys now have a growing cash? And also like related to that, do you see like potentially share buyback would be a possibility, especially when it is targeting at the U.K.

listing?

Ofer Druker -- Chief Executive Officer

I think that your line is not -- I couldn't understand your first sentences. Can you please repeat? Sorry.

Unknown speaker

Yes. Sure. Sorry. Could you hear me now?

Ofer Druker -- Chief Executive Officer

Yeah.

Unknown speaker

Yeah. So I'm just wondering if you could comment on the acquisition pipeline, please.

Ofer Druker -- Chief Executive Officer

Acquisition pipeline?

Unknown speaker

Yes.

Ofer Druker -- Chief Executive Officer

OK. So basically, our company is known also for conducting successful acquisition in the past few years. We acquired Tremor and then we acquired basically RhythmOne, and the last one was Unruly that we conducted in January 2020. So of course, it's -- for us, it's a valid growth path also to grow through acquisitions, and we are looking what's going into the market, and we are looking for additional targets.

That's, of course, part of the reason that we, of course, raised cash in order to be able to be in this position. And I think that we also proved that we know how to basically integrate these companies in a quick and efficient manner like we did in the last three acquisitions over the last three years building our company from that. So we are open to that, and we are looking for acquisitions in the market always in order to grow. But having said that, as you can see in the past, since we finished the integration of Unruly like a year ago, in June, July 2020, we're also being able to grow very nice organically.

So this fact, of course, allows and gives us the time frame and the opportunity to look carefully to find our candidates for acquisitions. And we keep doing that also in parallel to the organic growth that we are demonstrating.

Unknown speaker

OK. Great. That's very helpful. And apologies for my connection.

Thank you.

Ofer Druker -- Chief Executive Officer

No problem.

Operator

Thank you. Our next question comes from the line of Andrew Marok from Raymond James.

Andrew Marok -- Raymond James -- Analyst

Hi. Thanks for taking my questions. Two, if I could. One, obviously, the growth in the Americas has been really strong to date.

But I guess, could we get a perspective on your potential for international scale? And what is the international focus on this point, particularly in APAC and EMEA? And secondly, you've given some quantitative data in the past around your private marketplace and self-serve businesses. I guess if you could just give us an update as to how those aspects of your business scale in Q2. Thank you.

Ofer Druker -- Chief Executive Officer

OK. I will start with the international potential. So basically, Tremor also got very interesting capabilities around the globe. We have offices and operations in Australia, in Japan, in Singapore, in Germany, and U.K.

and some back-office and development office, of course, in Israel. But the activity is also done in the locations that I mentioned before. COVID basically did two things to us. And the first thing after the acquisition of Unruly last year, most of the activity that was -- that is international for us, it came from the activity of Unruly.

And basically, immediately almost after the acquisition, most of these markets were shut down because of COVID and still under very tough restrictions and limitations. So it's slowing us down in this matter of integrating them, pushing more products into these locations, and growing this potential. I'm sure that when this limitation will lift or -- we will be able to grow them again -- to grow them and integrate our capabilities also there -- in these locations in order to grow this activity. And in the location that we are, we believe that these are the main locations that we want to basically stay and operate, which is Australia, where we're also enjoying there from what was mentioned before, the cooperation with News Corp; Japan, which is really an interesting market.

And even before Unruly, we had an office there and activity there. So we believe in this market and we want to invest in that. Singapore, which is more like a regional office that we believe that because we have a lot of global partners and advertisers that are interested in this area, we need to provide them also solutions in these locations, and we are doing it very successfully. And in Europe, the two main markets that we are active in and we will stay there is U.K.

and Germany, which are really interesting for us. And we -- also in the U.K., we enjoy from the partnership with News Corp in this country, which is, of course, meaningful because News Corp is a very big player in the U.K. market. So I think that COVID slows us down in the -- in integrating more products and growing these revenues because of the restrictions.

So also the economies of some of these markets, we are suffering from the effects of COVID in the last 18 months. That, of course, affects our capability to grow our revenues in this location for now. The second question was about -- Remind me. About?

Sagi Niri -- Chief Financial Officer

Yeah. I will take the second question.

Ofer Druker -- Chief Executive Officer

OK.

Andrew Marok -- Raymond James -- Analyst

It was on the PMP and self-serve businesses.

Ofer Druker -- Chief Executive Officer

OK. Sagi?

Sagi Niri -- Chief Financial Officer

So we disclosed before. Yes, PMPs and self-serve. I think that we understand that both of that are our main growth driver. We stopped disclosing the level of increase or the scaling up of these two KPIs because everything is going now under the programmatic umbrella line, and we are disclosing only the CTV part and the video part.

Having said that, I can share with you not the exact number, but it increased dramatically from Q1 and incredibly from Q2 2020. So the trends are still very high. It's jumping every quarter at least double-digit growth from quarter to quarter. But again, this is our KPIs and our growth drivers.

And as Ofer mentioned, we are going to invest more and more in our product offering in order to keep this organic growth moving forward.

Ofer Druker -- Chief Executive Officer

Yeah.

Andrew Marok -- Raymond James -- Analyst

All right. Thank you.

Operator

Thank you. At this time, I'm showing no further questions. I would like to turn the call back over to the speakers for closing remarks.

Ofer Druker -- Chief Executive Officer

Thank you, everyone, for participating in this call and looking forward for the next call next quarter and -- to keep providing good news to the market. I think that -- it was our first call, and I hope that you enjoyed it like us. Thank you.

Sagi Niri -- Chief Financial Officer

Thank you, everyone.

Operator

[Operator signoff]

Duration: 44 minutes

Call participants:

Todd Fromer -- Investor Relations Contact

Ofer Druker -- Chief Executive Officer

Sagi Niri -- Chief Financial Officer

Laura Martin -- Needham & Company -- Analyst

Matt Swanson -- RBC Capital Markets -- Analyst

Ron Josey -- JMP Securities -- Analyst

Unknown speaker

Andrew Marok -- Raymond James -- Analyst

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