rnts media results presentation - fyber · results presentation first half 2016 rnts media sep 22,...
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Results PresentationFirst Half 2016
RNTS MEDIA
Sep 22, 2016Andreas Bodczek CEO
Heiner Luntz CFOZiv Elul COO
“These materials may contain forward-looking statements based on current assumptions and forecasts made by RNTS Media N.V.’smanagement and other information currently available to RNTS Media N.V. By their nature, forward-looking statements involve a number ofrisks, uncertainties and assumptions that could cause actual results, performance or events to differ materially from those expressed or impliedby the forward-looking statements. Statements contained in these materials regarding past trends or events should not be taken as arepresentation that such trends or events will continue in the future. Neither RNTS Media N.V. nor any other party is under any duty to updateor inform you of any changes, whether as a result of new information, future events or otherwise, to the information in these materials.Certain market data and financial and other figures (including percentages) in these materials were rounded in accordance with commercialprinciples. Figures rounded may not in all cases add up to the stated totals or the statements made in the underlying sources. For thecalculation of percentages used in the text, the actual figures, rather than the commercially rounded figures, were used. Accordingly, in somecases, the percentages provided in the text may deviate from percentages based on rounded figures. The financial information relating to theGroup contained in this document has not been audited or reviewed.No reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness. Norepresentation or warranty, expressed or implied, is given by or on behalf of RNTS Media N.V. or any of its affiliates, directors, officers oremployees, advisors or any other person as to the accuracy or completeness of the information or opinions contained in this document, and noliability whatsoever is accepted for any such information or opinions or any use which may be made of them. This document does notconstitute an offer to sell, or a solicitation of an offer to buy, any securities.”
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Disclaimer
by creating technology solutions for smarter ad monetization
Mission – Powering the App Economy
App Developer
Empower app developers and publishers to monetize their user base through in-app advertising
Comprehensive proprietary software, designed with the publishers’ needs in mind
Enable global advertisers to buy targeted audiences at scale
across ad formats and regions
Advertiser
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Highlights H1 2016Andreas Bodczek
› Strong top line growth: pro-forma gross revenues up 90% YoY to €95m
› Adjusted pro-forma EBITDA improvement by €3.5m to €-2.3m1
› Main growth drivers: Programmatic trading & Real-time bidding and Video advertising
› Inneractive revenues up +158% YoY to €35m
› Fyber RTB increased revenues more than twelve-fold YoY to €20m
› Revenue from video ad formats up +350% YoY
› Share of revenue from video ad formats more than doubled, making up 44% in H1 2016 on a pro-forma basis
51 Pro-forma financials as if Heyzap and Inneractive had been acquired on 1 January 2015Results adjusted to exclude separately disclosed items as explained in the notes to the consolidated financial statements
Highlights H1 2016 (1/2)
› Ziv Elul appointed as CEO designate and COO to capitalize on growth in RTB market, becoming CEO after transition period
› Andreas Bodczek to be appointed Group President after transition period, focusing on strategy, integration and new relationships
› Upgraded pro-forma gross revenue guidance from more than €160m to more than €185m for 2016
› Introduced guidance for 2017 with more than €240m in gross revenues
› EBITDA break-even expected on a run-rate basis by the end of 2017
› Placed €50m in convertible bonds by July as the final tranche of the €150m convertible bonds launched in 2015
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Highlights H1 2016 (2/2)
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RNTS Media’s Growth Strategy Along Three Dimensions
NativeBannerInterstitialRew. VideoOffer Wall
DMPAd ServingRTBMediationExchange
UtilityProductivityMessagingEntertainmentGaming
H2’14 H1’15 H2’15 H1’16 H2’16 2017
+ Rewarded Video + Interstitials + Banner, Native
Vert
ical
Ad
Form
atPl
atfo
rm
1-dimensional offering Organic & acquisition driven growth Full-stack offering
NativeBannerInterstitialRew. VideoOffer Wall
DMPAd ServingRTBMediationExchange
UtilityProductivityMessagingEntertainmentGaming
Expand Gaming market share
+ tap into Messaging, Entertainment
+ Productivity, Utility
+ add ad formats on Mediation & Exchange
+ RTB Exchange
+ Ad Serving
+ Expand ad formats per platform
App Vertical
Ad Format
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Acquisitions Supporting Accelerated Growth
Platform Services
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The Inneractive Solution
RTBEXCHANGE AND PRIVATE PIPES
MOBILE SSP PROGRAMMATICVIDEO
PUBLISHER VERTICALS News Entertainment Social/Messaging Utilities
INVENTORY 100% Mobile 630m MAUs 70% In-App >50% RTB 20% Video
AD UNITS Video Native Rich Media Display
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Inneractive at a Glance
FOUNDED
EMPLOYEES
50PRODUCT & R&D
PROFITABLE SINCE AUGUST 2015
EBITDA
2007
NEW YORK
LONDON
SAN FRANCISCO
LOCATIONS
RECOGNITION
TEL AVIV BEIJING
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Fyber and Inneractive - The Combined Vision
Ad serving Mediation SSP Exchange Private Pipes
COMPANIES ARE VERY COMPLEMENTARY IN THEIR PRODUCTS, CLIENT/PARTNER LISTS, CROSS-SCREEN ABILITIES AND MORE AT THE HEART OF KEY MARKET GROWTH TRENDS: MOBILE, RTB AND VIDEO
Full-stack solution Variety of ad units Rewarded video Offer wall Display Video Native
Complementary audience App developers Mobile web publishers ComScore 500 Mobile and desktop
publishers
› Fyber’s and Inneractive’s platform running separately in the short term
› Enabling cross-platform functionalities to leverage traffic on both platforms
› Unified corporate organization
› A single, unified brand and solution in the future
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Financials H1 2016Heiner Luntz
13All values in €m
Key Financials H1 2016 - Reported
Gross revenue Gross margin EUR EBITDA
15,9 16,719,6
28,926,2
33,6
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
5,6 5,5 5,77,5 7,3
9,3
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016 -3,0
-4,9 -6,2 -5,1 -4,4 -4,6
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
+83% H1 2016 YoY +50% H1 2016 YoY -14% H1 2016 YoY
14All values in €m, Pro-forma financials as if Heyzap and Inneractive had been acquired on 1 January 2015
Key Financials H1 2016 – Pro-forma
Gross revenue Gross margin EUR EBITDA
24,0 25,930,5
48,8
42,5
52,4
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
8,4 8,7 9,414,2 13,2
15,6
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016 -3,3 -5,0 -6,2
-3,6 -2,7 -2,8
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
+90% H1 2016 YoY +68% H1 2016 YoY +34% H1 2016 YoY
15All values in €m, Pro-forma financials as if Heyzap and Inneractive had been acquired on 1 January 2015Results adjusted to exclude separately disclosed items as explained in the notes to the consolidated financial statements
Key Financials H1 2016 – Pro-forma Adjusted
Gross revenue Gross margin EUR EBITDA
24,0 25,930,5
48,8
42,5
52,4
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
8,4 8,7 9,414,2 13,2
15,6
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016 -2,1 -3,6 -5,3
-1,0 -1,4 -0,9
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
+90% H1 2016 YoY +68% H1 2016 YoY +60% H1 2016 YoY
16Note: Total may differ from sum due to rounding
Pro-forma Separately Disclosed Items H1 2016
€m H1 2015 H2 2015 H1 2016
Discontinued operations (Big Star Global) -1.0 -13.4 1.6
Non-cash accounting charges for stock options, warrants etc. -1.3 -1.8 -1.3
Amortization of acquisition intangibles -3.7 -4.1 -3.8
Transaction costs related to acquisitions -0.3 -0.9 -1.8
Other non-recurring costs -1.1 -0.7 0.0
Related tax effects of the items listed above 0.0 0.7 0.0
Total -7.4 -20.1 -5.4
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Adjusted Pro-Forma Financial Results H1 2016
€m H1 2015 H2 2015 H1 2016 Change YoY
Revenue 49.9 79.3 94.8 90%
Gross margin % 34.4% 29.7% 30.3% -4.1 pp
Adjusted personnel costs -13.4 -18.4 -17.8 -32%
Adjusted other operating expenses -11.5 -14.5 -16.5 -43%
Adjusted other operating income 2.0 3.0 3.2 57%
Adjusted EBITDA -5.8 -6.4 -2.3 60%
Adjusted D&A -0.9 -0.7 -1.6 -75%
Net interest -0.5 -5.6 -7.5 n/m
Tax -0.3 5.1 -0.7 -174%
Adjusted loss after tax -7.4 -7.5 -12.1 -63%Adjusted basic loss per share from totaloperations in € -0.07 -0.06 -0.10 -43%
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Balance Sheet H1 2016 - Reported
€m 31 December 2015 30 June 2016
Goodwill 144.2 173.4Other intangible assets 13.8 16.4Property and equipment 2.2 2.1Non-current financial assets 0.7 30.2Trade and other receivables 23.2 41.9Other current financial assets 15.0 35.6Other current assets 3.0 1.2Cash and cash equivalents 79.1 8.2Total assets 281.2 309.0Equity 144.8 130.6Long-term borrowings 88.6 112.3Other non-current liabilities 0.7 14.6Trade and other payables 21.7 37.7Short-term employee benefits liabilities 17.5 11.3Other current liabilities 7.9 2.5Total equity and liabilities 281.2 309.0
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Cash Flow Statement H1 2016 - Reported
€m H1 2015 H1 2016Loss for the year before tax -10.3 -15.7Depreciation, amortization and impairment 2.0 3.2Changes in provisions, employee benefit obligations -3.8 -2.5Changes in working capital 6.3 -4.9Other 0.6 -0.4Net cash flow from operating activities -5.2 -20.3
Reclassification of cash deposit 0.0 -25.0Heyzap acquisition -10.5 -18.1Inneractive purchase price payment to escrow account 0.0 -30.0Purchases of property and equipment -0.2 -0.4Purchases, capitalization of intangible assets -1.0 -2.4Other 8.9 0.3Net cash flow from investing activities -2.8 -75.6
Net cash flow from financing activities 16.5 25.0Net changes in cash 8.5 -70.9
Cash at beginning of period 12.1 79.1Net changes in cash 8.5 -70.9Cash and cash equivalents at end of period 20.6 8.2
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Financing
› As of 30th June the Company held €8m of cash and €25m were classified under other financial assets – of which €10m were converted into cash in July
› €125m of Convertible Bonds had been placed already with an additional €25m settling on 8th and 20th July, which were fully applied to the Inneractive acquisition
› No bank facility was drawn at that time
› Inneractive holds a working capital line with Bank Leumi for $8.0m of which $2.5m are drawn
› Management expects that additional funding is required until cash flow break even is achieved to fund working capital growth, interest payments on the Convertible Bonds (€7.5m p.a.) and potential earn-outs of the Heyzap and Inneractive acquisitions
› Management is currently reviewing its options for further financing in the best interest of all stake holders
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OutlookAndreas Bodczek
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Clear Road to Profitability
EBITDA to reach break-even by the end of 2017, on a run-rate basis
› Adding profitable components
› Improve profitability of existing businessLeverage overhead across Group
› Scaling into profit
› Synergies
› Reduced non-recurring costs
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Summary
Solving key challenge for thousands of the world’s top publishers How to monetize their user reach
Strong position to benefit from key market growth trendsMobile, video, RTB among the key growth tech markets
Proprietary technologyGenerating lock-in with clients & barriers to entry
Fyber & Inneractive – Unique full-stack offeringSupply-side infrastructure across verticals & formats
› Positioned to benefit from market trends and confident for the future
› Continuous revenue growth translating into profit
› Growing into profitEBITDA guidance to reach break-even on a run rate basis by the end of 2017
€43m €64m €129m €185m €240m
2013 2014 2015 2016E 2017E
24Notes: Pro-forma numbers as if Heyzap and Inneractive had been acquired on 1 January 2015
Outlook
Pro-forma gross revenue: Actuals & Guidance
+48%
+100%
~ +43%
~ +30%
+ +
25
Thank you!
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Back-up
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Reported Financial Results H1 2016
€m H1 2015 H1 2016 Change
Revenue 32.6 59.8 84%
Gross margin % 34.0% 27.8% -6.2 pp
Adjusted personnel costs -9.6 -13.4 -39%
Adjusted other operating expenses -8.9 -12.9 -44%
Adjusted other operating income 2.0 3.2 57%
Adjusted EBITDA -5.5 -6.4 -18%
Adjusted D&A -0.9 -1.5 -78%
Net interest -0.4 -3.5 n/m
Tax -0.2 -0.3 -80%
Adjusted loss after tax -6.9 -11.7 -70%Adjusted basic loss per share from total operations in € -0.06 -0.11 -83%
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Reported Financial Results – Quarterly Development
€m Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Revenue 15.9 16.7 19.6 28.9 26.2 33.6
Gross margin EUR 5.6 5.5 5.7 7.5 7.3 9.3
Personnel costs -5.6 -5.2 -6.1 -8.8 -7.5 -7.0
Other operating expenses -4.8 -5.5 -6.2 -6.4 -7.7 -6.6
EBITDA -3.0 -4.9 -6.2 -5.1 -4.4 -4.6
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Pro-Forma Financial Results – Quarterly Development
€m Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Revenue 24.0 25.9 30.5 48.8 42.5 52.4
Gross margin EUR 8.4 8.7 9.4 14.2 13.2 15.6
Personnel costs -7.4 -7.3 -8.3 -12.0 -9.8 -9.3
Other operating expenses -6.0 -6.8 -7.8 -8.3 -9.6 -8.7
EBITDA -3.3 -5.0 -6.2 -3.6 -2.7 -2.8
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Pro-Forma Adjusted Financial Results – Quarterly Development
€m Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Revenue 24.0 25.9 30.5 48.8 42.5 52.4
Gross margin EUR 8.4 8.7 9.4 14.2 13.2 15.6
Adjusted personnel costs -6.6 -6.8 -8.0 -10.4 -9.1 -8.6
Adjusted other operating expenses -5.6 -5.9 -7.2 -7.3 -9.0 -7.6
Adjusted EBITDA -2.1 -3.6 -5.3 -1.0 -1.4 -0.9