Cxense Quarterly Presentation 2014-Q Oslo, Norway

Transcription

1 Cxense Quarterly Presentation 2014-Q Oslo, Norway

2 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 2

3 Agenda Welcome and highlights Q Financials Q Technology update 3

4 Welcome and highlights Q Financials Q Technology update 4

5 Our three core assets 1 Predictable high-growth revenue stream The SaaS (software as-a-service) revenue model represents a predictable revenue stream Contracts are normally signed for months with auto renewal 2 Unique technology with infinite scalability and real-time accessibility 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 3 Robust growth in several geographical markets and verticals Powering premium publishers and E-commerce companies The enterprise market is an untapped potential 5

6 We empower online companies (our clients) Cxense Software to analyze and understand their web and mobile audience to deliver individualized Internet audience / our customers audience Advertising Content & Promotions More product sales, advertising revenue, digital subscriptions, engagement and traffic

7 Selected highlights Q Q SaaS revenue reached USD 3.53m, up 221% from Q 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 7

8 Streamlining of the operation Synergy realization following the Emediate acquisition in Q 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 8

9 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 LAND Acquire new customer GROW Increase usage by additional deployment or traffic increase Launch an online self-service offering in Q Dedicated team working towards elephant hunting world wide Establish partner sales channel EXPAND Upsell of more Cxense applications 9

10 22 new recurring revenue contracts in different parts of the world Spain Vocento, S.A., also known as Grupo Vocento, is the leading multimedia communications group in the general press market in Spain France 20 minutes is a free, daily online newspaper in France Brazil CVC is the largest retailer of tourism in Latin America, accounting for 60 % of tour packages sold in Brazil Singapore Argentina 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 Japan Yodobashi Camera Co. is the leading Japanese retailer of electronic products 10

11 Welcome and highlights Q Financials Q Technology update 11

12 Strong sales growth from Q to Q Cxense SaaS segment* revenue growth Growth drivers USDm Growth in existing customer base Capacity increase and upsell of new applications 3 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 Gross margin 0 Q Growth Q Q SaaS segment gross margin of 81% (vs. 84% Q3) *Q (Q3 2013) Consolidated revenues (SaaS segment and PCAN segment) of USD 4.14million (USD 1.7 million) 12

13 KPIs for Q SaaS segment New recurring revenue 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 New contracts / average deal size 22 new SaaS contracts Average deal size of new contracts is USD 4.4 thousand (USD 3.4 last quarter) Churn New churn with MRR effect of USD 18 thousand (vs. USD 107k in first half) 13

14 SaaS Segment: Income Statement P&L SaaS (USD thousands) Q Q Revenues COGS Gross profit In % of revenue 81 % 84 % 82 % Employee benefits Other operating expenses Whereof office moving costs 57 Whereof extraordinary/ special 50 Whereof direct transaction costs -189 Whereof one-off receivable provision -130 Total operating expenses Total operationg expenses adj EBITDA EBITDA adj Depreciation & Amortization EBIT Net financial income/expenses Comments Q gross margin of 81%. CoS relates mainly to hosting of our software solutions. Q 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 Q 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 oneoff 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. Q EBITDA of USD 2.8 million and USD -3.0 million adjusted for the special other opex items. Net income before tax

15 Consolidated Statement of Financial Position USD thousands Non-current assets As at 30 Sept 2014 As at 30 Sept Goodwill 3, ,807 Deferred tax assets Intangible assets 4, ,429 Office machinery, equipment, etc Other financial assets Total non-current assets 9, ,586 Current assets Trade receivables 2,716 1,479 3,000 Other short-term assets 2, ,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" Total Assets 19,676 6,276 23,300 Total Equity 14,219 3,963 16,883 Non-current liabilities Deferred tax liabilities Total non-current liabilities Non-current liabilities Trade payables 1, ,933 Current taxes 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" Total equity and liabilities 19,676 6,276 23,300 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 Q Q Trade receivables of USD 2.7 million (59 days) compared to USD 1.5 million (78 days) in Q 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 15

16 Cash Flow Statement Cash flow statement Q Q Cash flow from operating activities P/(L) before income tax (inc. disposal group) -3,009-1,373-8,202 Adjustments: - Income tax payable Share- based payments Result from investment in associates - - Depreciation and amortization Currency translation effects Change in trade receivables Change in trade payables Change in other accrual and non-current items -1,321-1, Net cash flow from / (used in) op. activities -5,059-2,153-7, Cash flow from investing activities Investment in fixed assets Investment in intangible assets Investment in associated companies Investment in subsidiary (1) 0 0-9,809 Sale of subsidiary (1) Net cash flow from / (used in) investing activi ,817 Cash flow from financing activities Net proceeds from share issues ,260 Proceeds from minority interest Net cash flow from / (used in) finaning activiti ,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. 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 Q Investments in fixed assets includes a USD 290 thousand investment in owned hosting capacity Q net proceeds from share issues affected negatively by the USD increase *After the share issue there were shares outstanding. There were also warrants and share options outstanding 16

17 Strong scalability opportunity of group functions and R&D resources through organic growth and acquisition of customer portfolios SaaS Segment: Regional Sales & Operations SaaS segment: Group functions and Q USD thousands EMEA Americas APAC R&D SaaS segment Revenues COGS Gross profit Whereof 46 within R&D Gross magin % 81 % 81 % 81 % 81 % Employees (FTEs) 29,0 16,3 9,0 64,0 118 OPEX EBITDA adjusted In % of revenues 30 % -58 % -13 % -85 % Streamlining of the organization after the Q will reduce opex run-rate with more than 20% 17

18 Agenda Welcome and highlights Q Financials Q Technology update 18

19 User experience Cxense powers the next generation digital consumer experiences Relevant and individualized internet experience Static & Generic Individual & Relevant Directory Search Social Mobile Cxense provides the opportunity for independent players to get access to similar technology that Facebook, Google and Amazon use today Internet in 1995 Now Next Generation 19

20 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 20

21 Capture user data from ANY device, and across MULTIPLE devices using multiple tracking technologies

22 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

23 Audience Interests Devices Location Custom Dashboard Gain actionable REAL-TIME INSIGHT about traffic, content, and users from standard and HIGHLY CUSTOMIZABLE dashboards

24 Create AUDIENCE SEGMENTS using flexible segment criteria, combining data captured from websites and apps, with 1 st party business data

25 Targeted Advertising Personalized Content Targeted Marketing Leverage the audience segments to drive TARGETED MESSAGING across multiple marketing channels, increasing REVENUE and creating ENGAGING user experiences

26 Compelling value proposition, providing real time consumer insight & customer engagement and monetization 360 customer view Internet user Relevant & individualized content DMP: Contextual & Behavioral User Profiling Targeted advertising & promotions Female, 31 years old Buenos Aires Likes entertainment news Enjoys premium content Subscribes to sports Conversion to product sales 26

27 Summary Q SaaS revenue of USD 3.53m, up 221% from Q (USD 1.1m). 22 new contracts signed in Q 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 Q Realizing synergies from the Emediate acquisition, reducing the Opex run-rate with more than 20%. The DMP (data management platform) launched in Q represented close to 10% of total revenue in Q Q 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. 27