fy 2017 revenues - · pdf fileposition, business strategy, ... distribution to the box ......
TRANSCRIPT
FY 2017 Revenues
February 1st, 2018
2ATEME © 1991-2018
Disclaimer
This presentation does not constitute or form part of and should not be construed as any offer for sale of or solicitation of any offerto buy any securities of ATEME, nor should it, or any part of it, form the basis of or be relied on in connection with any contract orcommitment whatsoever concerning ATEME’s assets, activities or shares.
All statements other than historical facts included in this presentation, including without limitations, those regarding ATEME’sposition, business strategy, plans and objectives are forward-looking statements.
The forward-looking statements included herein are for illustrative purposes only and are based on management’s current views andassumptions. Such forward-looking statements involve known and unknown risks. For illustrative purposes only, such risks includebut are not limited to impact of external events on customers and suppliers; the effects of competing technologies competitiongenerally in main markets; profitability of the expansion strategy; litigation; ability to establish and maintain strategic relationshipsin major businesses; and the effect of future acquisitions and investments.
ATEME expressly disclaims any obligation or undertaking to update or revise any projections, forecasts or estimates contained in thispresentation to reflect any change in events, conditions, assumptions or circumstances on which any such statements are based,unless so required by applicable law. These materials are supplied to you solely for your information and may not be copied ordistributed to any other person (whether in or outside your organization) or published, in whole or in part, for any purpose.
3ATEME © 1991-2018
ATEME Factsheet
22 Patents
220 people in 18 countries
700 clients in 100 countries
Public since 2014
48.4 M€ in 2017 (+29%)
ATEME designs software video compression solutions to enable innovative live or on demand video delivery
services while preserving picture quality.
Strategic partnerships
4ATEME © 1991-2017
Market Trends
5ATEME © 1991-2018
Industry Shift to Software, the Revolution in Progress
Today, Service Providers deploy Software Converged Video Headends (Live + VOD, Box + Multiscreen), in a virtualized environment
Legacy Video Headendfor the linear distribution to the box
VOD and Multiscreenseparated infrastructure
Software Virtualized Video Headendrunning on a private cloud
=Software
Virtualized Headend
Running on
Private cloud
+ + Multi-Screen
VOD
10 years ago,Video Head Ends consisted in heterogeneous specialized hardware for each operation
Then,VOD and multiscreen were added and managed as separate operations
Legacy VHE
6ATEME © 1991-2018
30% density increase without network or
decoder/STB upgrade
QAM reclamation enabling new services
ATEME’s research team is working to help
define the next MPEG video compression
standard
Close partnership with
Reduce the required bandwidth for main-
screen & OTT HD
Reduce the solution’s TCO
1st to market with a production -ready
HEVC solution
Deploying HEVC projects with Tier1 clients worldwide
Transforming Video Delivery, Reducing Distribution Costs
MPEG2 (1994)
The only compression vendor part of
AV1, the royalty free codec, will be
supported by TITAN in 2018
H264 (2003) HEVC (2013) AV1 (2018) H266 (2020 ?)
TITAN supports all international video compression standardsRecent involvement of ATEME R&D and deployment successes include:
7ATEME © 1991-2018
Sept 2015
$300-500M (5-7x)
acquires
Sept 2015
$125M (4x)
acquires
Dec 2015
€69M (1x)
acquires
Consolidation Clearing the Way for ATEME
Essentially down from 7 to 4 Players
• US service providers running away from their competitor (Amazon Prime Video)
• Envivio partners are Ericsson competitors
• Redundant employees (Sales worldwide)
• Products end of life confusing clients
• Redundant employees (Rennes R&D)
Ideal
Scenario
for ATEME
Jan 2018
acquires 51% of
8ATEME © 1991-2017
2017 Revenues
9ATEME © 1991-2018
2017 in Short
Revenues 9 Months €32.0m
Revenues Q4 €16.4m
Revenues FY 2017 €48.4m
+25.1%
+38.3%
+29.3%
The statements are currently being audited.
10ATEME © 1991-2018
7 436 10 646
7 544
10 291
10 632
11 108
11 846
16 378
2011 2012 2013 2014 2015 2016 2017
Q1 Q2 Q3 Q4
Consistent Organic Growth
€37.5m
€28.6m
€12.3m
€17.9m€20.6m
€24.8m
IPO
€48.4m
The statements are currently being audited.
+30%CAGR
11ATEME © 1991-2018
2017 Revenue Split by Region
38% of 2017 revenue
13%of 2017 revenue
EMEA
USA/Canada
Latin America
APAC17%
of 2017revenue
32%of 2017revenue
12ATEME © 1991-2018
16,3 16,3
18,6
2015 2016 2017
EMEA : +14.1%
Increasing demand for software solutions
+14.1%
In €
Mill
ion
13ATEME © 1991-2018
7,1
11,9
15,7
2015 2016 2017
USA & Canada : +31.4%
TITAN powers significant percentage of primetime America, for both OTT applications and “traditional” TV services
+31.4%
In €
Mill
ion
14ATEME © 1991-2018
2,4
4,2
8,0
2015 2016 2017
LATAM : +90.4%
+90.4%
Growth driven by strong demand for digital terrestrial distribution solutions
In €
Mill
ion
15ATEME © 1991-2018
2,7
5,0 6,1
2015 2016 2017
APAC : +22.3%
Revenues for Asia-Pacific increased by 22.3%, following 2016 80% growth
+22.3%
In €
Mill
ion
16ATEME © 1991-2018
Increasing Number of Customers
279
327
378
2015 2016 2017
Nu
mb
er o
f cu
sto
me
rs in
voic
ed
pe
r ye
ar
17ATEME © 1991-2018
No Dependency
18ATEME © 1991-2018
IPO July 2014
20162015
2014
Successful Strategy Since the IPO 2017
50 hires in 12 months (R&D in France, Support engineers and Sales in all 4 regions)
€12.3m
€-2.5m
€15.0m
€-1.6m
€16.3m
€0.0m
€22.5m
€12.9m
€-1.1m
€11.9m
€-0.9m
Phase 2:Design of TITAN 4 and reorganization of international offices
Phase 3: Commercial launch
165
135
170
€3.6m
Revenues
Net Loss/Profit
Growth acceleration in H2 2016: a 2 years ROI since the IPO
€20.9m
220
€0.3m
Phase 1: 30 hires in 6 months (opened Rennes R&D office)
€27.5m
TBD
19ATEME © 1991-2017
Outlook
20ATEME © 1991-2018
ATEME Competitive Advantages
• Technology leadership :• TITAN offers : Video Quality, Speed / Density,
100% Home Grown Software, Flexibility• TITAN supports all international video compression
standards : HEVC and AV1
• Close Strategic Partnerships
• Growing access to Video Infrastructure Market ;
Capacity to win tier-1 customers
• Significant expansion in addressable market : Video Networking Market ≈ $25 billion
• One of the last independent player
UHD / HEVC broadcasted eventsusing ATEME’s technology
21ATEME © 1991-2018
20182017Win the Video
Head End market and prepareexpanding to Network
Gross Margin expected up(shift to software)
Targeting double digit operating profit in 2018
Toplineexpected to keep growing in the 20-30%range (all regions will contribute)
2017-2018 Plan
S&M investments to
win the Video Head End market and prepare expanding
to Network, but
will not grow as fast as the topline
R&D investments to
prepare expanding
to Network, but
will not grow as fast as the topline
22ATEME © 1991-2018
Investors Relations
Next investor dates
Market data
ISIN: FR0011992700 - Ticker: ATEME
Stock price: €15.24 (as of 30 January 2018)
Market cap: €156 m (as of 30 January 2018)
Shareholder structureNumber of shares: 10,284,539Potential dilution : up to 227,244 shares
8,9%
11,7%
64,5%
14,9%
ELIGIBLE PEA PME
Business angels
Free float
Founders and management
VCs
Liquidity contract: Gilbert Dupont
Source : company, as of 31 Dec. 2017
March 28, 2018 2017 Year-End Results
May 4, 2018 2018 First Quarter Revenues
June 7, 2018 Annual Shareholders Meeting
July 25, 2018 2018 Half-Year Revenues
Sept. 27, 2018 2018 Half-Year Results
Nov. 8, 2018 2018 Third Quarter Revenues
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