cxense quarterly presentation 2014-q3 › ... › cxense-2014-q3-presentation.pdf · 2017-06-22 ·...
TRANSCRIPT
Cxense Quarterly Presentation 2014-Q3
2014-11-19 Oslo, Norway
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Important notice
THIS PRESENTATION AND ITS ENCLOSURES AND APPENDICES (HEREINAFTER JOINTLY REFERRED TO AS THE “PRESENTATION”) HAVE BEEN PREPARED BY CXENSE ASA (THE”COMPANY”) EXCLUSIVELY FOR INFORMATION PURPOSES. THIS PRESENTATION HAS NOT BEEN REVIEWED OR REGISTERED WITH ANY PUBLIC AUTHORITY OR STOCK EXCHANGE. RECIPIENTS OF THIS PRESENTATION MAY NOT REPRODUCE, REDISTRIBUTE OR PASS ON, IN WHOLE OR IN PART, THE PRESENTATION TO ANY OTHER PERSON. THE CONTENTS OF THIS PRESENTATION ARE NOT TO BE CONSTRUED AS LEGAL, BUSINESS, INVESTMENT OR TAX ADVICE. EACH RECIPIENT SHOULD CONSULT WITH ITS OWN LEGAL, BUSINESS, INVESTMENT AND TAX ADVISER AS TO LEGAL, BUSINESS, INVESTMENT AND TAX ADVICE. THERE MAY HAVE BEEN CHANGES IN MATTERS, WHICH AFFECT THE COMPANY SUBSEQUENT TO THE DATE OF THIS PRESENTATION. NEITHER THE ISSUE NOR DELIVERY OF THIS PRESENTATION SHALL UNDER ANY CIRCUMSTANCE CREATE ANY IMPLICATION THAT THE INFORMATION CONTAINED HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO THE DATE HEREOF OR THAT THE AFFAIRS OF THE COMPANY HAVE NOT SINCE CHANGED, AND THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT ANY INFORMATION INCLUDED IN THIS PRESENTATION. THIS PRESENTATION INCLUDES AND IS BASED ON, AMONG OTHER THINGS, FORWARD-LOOKING INFORMATION AND STATEMENTS. SUCH FORWARD-LOOKING INFORMATION AND STATEMENTS ARE BASED ON THE CURRENT EXPECTATIONS, ESTIMATES AND PROJECTIONS OF THE COMPANY OR ASSUMPTIONS BASED ON INFORMATION AVAILABLE TO THE COMPANY. SUCH FORWARD-LOOKING INFORMATION AND STATEMENTS REFLECT CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS, UNCERTAINTIES AND ASSUMPTIONS. THE COMPANY CANNOT GIVE ANY ASSURANCE AS TO THE CORRECTNESS OF SUCH INFORMATION AND STATEMENTS. AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION, INCLUDING, AMONG OTHERS, RISKS OR UNCERTAINTIES ASSOCIATED WITH THE COMPANY’S BUSINESS, SEGMENTS, DEVELOPMENT, GROWTH MANAGEMENT, FINANCING, MARKET ACCEPTANCE AND RELATIONS WITH CUSTOMERS, AND, MORE GENERALLY, GENERAL ECONOMIC AND BUSINESS CONDITIONS, CHANGES IN DOMESTIC AND FOREIGN LAWS AND REGULATIONS, TAXES, CHANGES IN COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN CURRENCY EXCHANGE RATES AND INTEREST RATES AND OTHER FACTORS. SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALISE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THIS DOCUMENT. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT THE INFORMATION INCLUDED IN THIS PRESENTATION. THIS PRESENTATION IS SUBJECT TO NORWEGIAN LAW, AND ANY DISPUTE ARISING IN RESPECT OF THIS PRESENTATION IS SUBJECT TO THE EXCLUSIVE JURISDICTION OF NORWEGIAN COURTS
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Agenda
Welcome and highlights Q3 2014
Financials Q3 2014
Technology update
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Welcome and highlights Q3 2014 Financials Q3 2014 Technology update
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Predictable high-growth revenue stream 1
Unique technology with infinite scalability and real-time accessibility 2
Robust growth in several geographical markets and verticals 3
Powering premium publishers and E-commerce companies
The enterprise market is an untapped potential
Our three core assets
The “SaaS” (software as-a-service) revenue model represents a predictable revenue stream
Contracts are normally signed for 12-24 months with auto renewal
Proprietary real-time big data technology: Extraordinary Insight Engine (“EIE”) is the core
part of our clients internet offering
More than half a billion user profiles maintained across more than 5000 internet sites
6 19.11.2014
We empower online companies (our clients)…
… to analyze and understand
their web and mobile audience… … to deliver individualized…
More product sales, advertising revenue, digital subscriptions, engagement and traffic
…Advertising
…Content
& Promotions
Cxense Software
Internet audience / our customers audience
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Selected highlights Q3 2014
Q3 2014 SaaS revenue reached USD 3.53m, up 221% from Q3 2013
22 new contracts signed in the quarter
EMEA and APAC continued to be our strongest performing markets with 84% of the SaaS revenue
Major wins in Latin America during the quarter
SaaS segment gross margin of 81%
R&D delivers new advertising functionality representing a significant milestone within networked online advertising, as well as unique ID management for all devices incl. mobile
SaaS segment adjusted EBITDA of – USD 3.0 million
Ongoing organizational optimization to reduce OPEX by > 20% without sacrificing growth
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Streamlining of the operation
Synergy realization following the Emediate acquisition in Q4 2013
Staff trimmed to 95 employees
Removing overlapping resources in sales & account management and customer onboarding & support
Reallocating sales resources from North America to EMEA and APAC making these regions stronger to handle the increased volume
Opex run rate reduced with more than 20%
With continued top line growth combined with a leaner cost base, we are well positioned to move towards profitability at the same time as we increase our footprint
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Improved ”go-to-market ” strategy
Continued focus on premium publishers and e-commerce companies
Intensify the work on our real-time ”big data” offering to enterprises
Launch an online self-service offering in Q1 2015
Dedicated team working towards ”elephant hunting” world wide
Establish partner sales channel
EXPAND Upsell of more Cxense applications
GROW Increase usage by additional deployment or traffic increase
LAND Acquire new customer
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22 new recurring revenue contracts in different parts of the world
Vocento, S.A., also known as Grupo Vocento, is the leading multimedia communications group in the general press market in Spain
20 minutes is a free, daily online newspaper in France
CVC is the largest retailer of tourism in Latin America, accounting for 60 % of tour packages sold in Brazil
Singapore Press Holdings Limited is a media organization in Singapore with businesses in print, internet, new media, television and radio
Grupo Clarin is the largest media conglomerate in Argentina
Spain
France
Brazil
Singapore
Argentina
Japan Yodobashi Camera Co. is the leading Japanese retailer of electronic products
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Welcome and highlights Q3 2014 Financials Q3 2014 Technology update
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Strong sales growth from Q3 2013 to Q3 2014
0
1
2
3
4
1.09
Q3 2013
2.44 3.53
USDm
Q3 2014 Growth
Cxense SaaS segment* revenue growth Growth drivers • Growth in existing customer
base • Capacity increase and upsell of new
applications
• Sale of recurring software
licenses to new customers • Gives accumulating revenue base
• Acquisition of existing customer
bases • Upsell and value increase/leverage
on acquired customer bases by connecting the EIE platform
• Q3 2014 SaaS segment gross margin of 81% (vs. 84% 2013-Q3)
*Q3 2014 (Q3 2013) Consolidated revenues (SaaS segment and PCAN segment) of USD 4.14million (USD 1.7 million)
Gross margin
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KPIs for Q3 2014 SaaS segment
New recurring revenue
New contracts / average deal size
Churn
• New Monthly Recurring Revenue (MRR) of USD 96 thousand in the quarter, whereof USD 53 from September alone
• Annualized effect of new MRR of USD 1.2 million, whereof USD 0.6 million from Sept.
• Annualized revenue run-rate at the end of the quarter of USD 14.4 million
• 22 new SaaS contracts
• Average deal size of new contracts is USD 4.4 thousand (USD 3.4 last quarter)
• New churn with MRR effect of USD 18 thousand (vs. USD 107k in first half)
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SaaS Segment: Income Statement
Q3 2014 gross margin of 81%. CoS relates mainly to hosting of our software solutions.
Q3 2014 personnel costs of USD 4.0 million, whereof USD 137 thousand relates to Share Based payments with no cash effect.
SaaS segment with 118 employees at the end of the quarter
Q3 2014 SaaS segment other OPEX of USD 1.64 million.
Other OPEX positively affected by IPO cost VAT refund of USD 189 thousand and a reversal of one-off receivable loss provision of USD 130 thousand.
Other Opex negatively affected by office moving costs USD 57 thousand and other extraordinary / special of USD 50 thousand.
Q3 2014 EBITDA of USD – 2.8 million and USD -3.0 million adjusted for the special other opex items.
Comments P&L SaaS (USD thousands) Q3 2014 Q3 2013 2 013
Revenues 3 530 1 091 5 573
COGS 666 179 1 030
Gross profit 2 864 912 4 543
In % of revenue 81 % 84 % 82 %
Employee benefi ts 4 034 1 833 8 389
Other operating expenses 1 636 643 3 970
Whereof office moving costs 57
Whereof extraordinary/ special 50
Whereof direct transaction costs -189
Whereof one-off receivable provision -130
Total operating expenses 5 670 2 476 12 359
Total operationg expenses adj. 5 458 2 903 12 346
EBITDA -2 805 -1 564 -7 816
EBITDA adj. -3 017 -1 564 -7 816
Depreciation & Amortization 334 6 223
EBIT -3 139 -1 570 -8 039
Net financia l income/expenses 74 41 194
Net income before tax -3 065 -1 529 -7 845
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Consolidated Statement of Financial Position
Comments
Total assets of USD 19.7 million Largest components:
Goodwill and intangible non-current assets related to the acquisition of Emediate
Cash
Very limited fixed assets, but invested USD 290 thousand in owned hosting capacity in Q3 2014
Q3 2014 Trade receivables of USD 2.7 million (59 days) compared to USD 1.5 million (78 days) in Q3 2013.
Cash and cash equivalents of USD 5.5 million
Other short term assets of USD 2.2 million including USD 1.2 million escrow account related to Emediate acquisition.
Current liabilities of USD 4.9 million, whereof USD 0.3 million relates to unpaid IPO costs and USD 1.2 million relates to the escrow account related to the Emediate acquisition.
Total equity of USD 14.2 million
USD thousandsAs at 30 Sept
2014
As at 30 Sept
20132013
Non-current assets
Goodwill 3,807 0 3,807
Deferred tax assets 10 18 36
Intangible assets 4,778 6 5,429
Office machinery, equipment, etc. 561 74 295
Other financial assets 79 18 20
Total non-current assets 9,235 116 9,586
Current assets
Trade receivables 2,716 1,479 3,000
Other short-term assets 2,201 840 1,870
Cash and cash equivalents 5,524 3,842 8,843
Total current assets 10,441 6,160 13,714
Assets classified as "held for sale" 0 0 0
Total Assets 19,676 6,276 23,300
Total Equity 14,219 3,963 16,883
Non-current liabilities
Deferred tax liabilities 562 0 654
Total non-current liabilities 562 0 654
Non-current liabilitiesTrade payables 1,191 886 1,933
Current taxes 99 66 35
Other short-term liabilities 3,604 1,361 3,794
Total current liabilities 4,894 2,313 5,763
Liabilities related to assets "held for sale" 0 0 0
Total equity and liabilities 19,676 6,276 23,300
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Cash Flow Statement
Comments
Share based payment of USD 137 thousand relates to the 216 thousand outstanding share options (no cash effect)
Depreciation and amortization: Largely attributable to amortization of the allocated purchase price from the Emediate acquisition.
Change on trade receivables affects cash flow negatively as a result more outstanding receivables and reversal of a USD 130 thousand provision
Change in other accrual and non-current items affects cash flow negatively as a result of USD 1.4 million of IPO costs paid in Q3 2014, that was accrued in Q2 2014
Investments in fixed assets includes a USD 290 thousand investment in owned hosting capacity
Q3 2014 net proceeds from share issues affected negatively by the USD increase
*After the share issue there were 3 681 717 shares outstanding. There were also 718 634 warrants and 216 300 share options outstanding
Cash flow statement Q3 2014 Q3 2013 2013
Cash flow from operating activities
P/(L) before income tax (inc. disposal group) -3,009 -1,373 -8,202
Adjustments: -
Income tax payable -66 -
Share- based payments 137 98 199
Result from investment in associates - -
Depreciation and amortization 335 7 227
Currency translation effects 17 118 -364
Change in trade receivables -500 872 465
Change in trade payables -650 -500 -544
Change in other accrual and non-current items -1,321 -1,375 409
Net cash flow from / (used in) op. activities -5,059 -2,153 -7,810-1321.4618 694.14643
Cash flow from investing activities
Investment in fixed assets -331 -5 -62
Investment in intangible assets 0 0 0
Investment in associated companies 5 0 0
Investment in subsidiary (1) 0 0 -9,809
Sale of subsidiary (1) 0 55 55
Net cash flow from / (used in) investing activities -326 50 -9,817
Cash flow from financing activities
Net proceeds from share issues -338 142 16,260
Proceeds from minority interest 0 0 0
Net cash flow from / (used in) finaning activities -338 142 16,260
Net inc / (dec) in cash and cash equivalents -5,722 -1,961 -1,367
(1) Cash effects are net of cash received on sale of subsidiary,
and cash held by the subsidiary.
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Q3 2014 - USD thousands EMEA Americas APAC
Revenues 2 586 507 437 3 530
COGS 489 96 83 666
Gross profit 2 097 411 354 2 864
Gross magin % 81 % 81 % 81 % 81 %
Employees (FTEs) 29,0 16,3 9,0 64,0 118
OPEX 1 326 705 412 3 437 5 880
EBITDA adjusted 771 -294 -57 -3 437 -3 017
In % of revenues 30 % -58 % -13 % -85 %
SaaS segmentSaaS Segment: Regional Sales & Operations SaaS segment:
Group
functions and
R&D
Strong scalability opportunity of group functions and R&D resources through organic growth and acquisition of customer portfolios
Whereof 46 within R&D
Streamlining of the organization after the Q3 2014 will reduce opex run-rate with more than 20%
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Agenda
Welcome and highlights Q3 2014
Financials Q3 2014
Technology update
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Cxense powers the next generation digital consumer experiences…
Internet in 1995 Now Next Generation
Search
Social
Directory
Mobile
Relevant and individualized internet experience
Use
r ex
pe
rie
nce
Cxense provides the opportunity for independent players to get access to similar technology that Facebook, Google and Amazon use today
Sta
tic
& G
ener
ic
Ind
ivid
ua
l & R
elev
an
t
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Data (consumer insight) is the new oil…
• Actionable user data is required to provide relevant, individual user experience • To leverage user data, companies needs advanced technology, for harvesting, processing and applying the extracted insight • Amazon, Google and Facebook have this technology, but keep it for themselves to dominate the online advertising and e-commerce value chains • Cxense is the independent provider of that technology to all other companies
…and it is the users that generate the oil
Capture user data from ANY device,
and across MULTIPLE devices using
multiple tracking technologies
Our 600 million USER PROFILES contain details on every
user’s interest and intent, locations and devices, as well as
data from business systems, such as demographics,
subscription status, or purchase history
Audience Interests Audience Interests
Location Location
Devices Devices
Gain actionable REAL-TIME INSIGHT about traffic, content, and users
from standard and HIGHLY CUSTOMIZABLE dashboards
Custom Dashboard Custom Dashboard
Create AUDIENCE SEGMENTS using
flexible segment criteria, combining
data captured from websites and
apps, with 1st party business data
Leverage the audience segments to drive TARGETED MESSAGING
across multiple marketing channels, increasing REVENUE and
creating ENGAGING user experiences
Targeted Advertising Targeted Advertising Targeted Email Marketing Targeted Email Marketing Personalized Content Personalized Content
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DMP: Contextual & Behavioral User Profiling Targeted advertising & promotions
Conversion to product sales
Compelling value proposition, providing real time consumer insight & customer engagement and monetization
360° customer view
Relevant & individualized content
Female, 31 years old Buenos Aires Likes entertainment news Enjoys premium content Subscribes to sports
Internet user
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Summary
Q3 2014 SaaS revenue of USD 3.53m, up 221% from Q3 2013 (USD 1.1m).
22 new contracts signed in Q3 2014
APAC and Europe continue to be our best performers. A total of 13 new SaaS contracts were signed in the two regions in the quarter representing 59% of the total contract volume in Q3 2014
Realizing synergies from the Emediate acquisition, reducing the Opex run-rate with more than 20%.
The DMP (data management platform) launched in Q2 2014 represented close to 10% of total revenue in Q3 2014
Q3 2014 Adjusted EBITDA for the SaaS segment was USD -3.0m. Extraordinary churn in Q2 2014, which gives a full revenue effect in this quarter, affected the EBITDA negatively.