Fyber N.V. Deutsches Eigenkapitalforum Ziv Elul, CEO 26 November 2018

Transcription

1 Fyber N.V. Deutsches Eigenkapitalforum 2018 Ziv Elul, CEO 26 November 2018

2 Agenda Market Update Fyber at a Glance Growth Strategy & Perspectives Financials & Outlook - Page Page Page Page 13-2

3 01 Market Update 3

4 The global app advertising market is expected to grow from $70B in 2016 to >$200B in 2021 Mobile ad spend to surpass TV ad spend in Global App Advertising Market Programmatic in-app video is the fastest growing subsegment of the digital ad market $61bn Addressable Market: 30% US users spend 88% of their time on mobile in apps Google, Facebook etc.: 70% $141bn Leading app categories by time spent are Gaming, Social, Entertainment, Messaging, Productivity & Utilities Source: AppAnnie 2017, emarketer

5 This fast growing market faces industry challenges impacting ad tech companies of all sizes: Yet, players with distinctive technology & true data-driven value-add report success: < > < > < > Tripled their value in Acquired by AT&T for $1.6B 3 2 < > Raised $225M, valuation of $1B 4 Source: Digital Capital Advisors, Sept 2018; 1: value based on share price Nov 18 vs. Feb 18; 2: terms undisclosed 3: TechCrunch Jun 2018, 4: WSJ Jul 2018 < > 2 5

6 02 ss Fyber at a Glance 6

7 10K+ Apps directly integrated Fyber is a publisher powerhouse catering to all verticals 1.2B Monthly active users 180+ Countries 7

8 Old ad tech vs. New ad tech Ad networks leading with monetization Short-term, opportunistic Hidden fees and mark-ups Strategy & business approach Lead with technology Create sustainable value for clients Address fundamental industry issues Black-box solutions, often biased Underinvestment in proprietary tech Technology Open-source / transparent solutions Primary area of investment Drives diversification of revenue streams Web players moving into in-app Limited industry relationships (with agencies, brands, top tech vendors) Industry positioning Thought leader, influencing industry trends Attractive partner for other industry leading companies 8

9 Achievements Highlights of 9M 2018 on the path to long-term, sustainable growth FairBid was released in September only started scaling recently HOWEVER: it is now scaling quickly Adoption of new SDK is now almost 22% of all impressions, October gross revenue is up 20% compared to avg. Q Integration with Facebook Audience Network started slower than anticipated While revenue goals could not be met, Fyber achieved major milestones and recorded an uptick in numbers in October. HOWEVER: we are now working closely with FB to extend the outreach to publishers and advertisers Further wins Release of Offer Wall Edge redesign and optimization of one of the core ad formats Market introduction of new Fyber brand Continuous implementation of the product roadmap towards unified product Full organizational integration of former group companies & significant synergies 9

10 03 Growth Strategy & Perspectives 10

11 Identified Growth Perspectives Leading through innovation & technology Growth with new publishers: Onboarded > 50 high-profile publishers in 2018, including Atari, Lucky Day, Zoosk, PicsArt, TheChive, Quidd & strong client pipeline for 2019 Growth with existing publishers: Sustainable, loyal client base based on SDK integrations with a consistent retention rate of above 85% Growth with new products: Innovations in areas of fastest market growth including Fyber FairBid, which pushed total gross revenue in October +20% vs. Q Growth through existing products: Fyber is one of the market leaders in rewarded video mediation, yet only a small percentage of the massive traffic is monetized today specific initiative to help raise our share of monetization Securing defensible market position: through proprietary technology which establishes high barriers of entry & a suite of leading ad tech assets, which allows for consistently high net revenue margin, e.g. 36% in Q

12 The new Fyber s path to success Become the primary monetization platform for the in-app environment Build foundation for sustainable growth At the expense of short-term revenue growth (e.g. aggregators) Consistent profitability is the main goal Net revenue margin consistently above industry standard Entrepreneurial management approach Maximize efficiency & synergies by unifying all companies under a single management and brand Integrate all existing platforms to maximize yield Focused resources on core strengths (e.g. 90% of revenue in in-app in 18 vs. 70% in 17) Clear vision & roadmap towards a differentiated, leading unified platform R&D is the top area of investment 12

13 04 Financials & Outlook 13

14 Key Financials Q Uptick in growth in October 2018 Millions Gross revenue in m October Highlight Jul 18 Aug 18 Sep 18 Oct 18 Q3 Highlight Key Financials Q Gross revenue of 31m, -46% YoY Net revenue of 11m, -34% YoY OPEX of 13m, reduced by 20% YoY Adj. EBITDA of -2m Recap of the responsible one-off effects Keeping it Clean -Initiative Ban of charging screen ads Integration of group companies & investment in training Roll-out of new products & ramp-up of new agreements 14

15 Updated Guidance & Outlook 2019 One-off effects lower revenue base, but core business on stable foundations and returning to growth in 2019E Gross revenue in m EBITDA* in m Revenue growth at +52% CAGR Estimate Steady adj. EBITDA improvement since 15 Estimate Core business One-off effects E 2019E E 2019E Starting from lower revenue base, but core business is forecasted to grow ~20% from 18E to 19E Stable margins and fixed cost base will allow to turn break-even at ~ 170 million of gross revenues Note: Pro-forma gross revenue ; EBITDA* = Adjusted EBITDA to eliminate one-off impacts such as impairment of goodwill, acquisition related costs and option plans. 15

16 Intended Bonds Restructuring Reducing interest burden to support ongoing investment strategy Existing convertible bonds 150 million principal 3% coupon p.a., payable biannually Maturity date July 2020 Strike price 3.00 Intended restructuring Bondholder meeting on 4 December 2018 Defer remaining interest payments until July 2020 All interest accrued shall be paid out in whole at final redemption date together with the repayment of the principal in July 2020 In turn, the interest rate shall be increased from currently 3.0% to then 3.5% p.a. 16

17 Thank You! 17

18 Fyber N.V. Contact Office Address Johannisstraße 20, Berlin, Germany About Fyber N.V. Fyber is a leading advertising technology company, developing a next generation platform for the programmatic trading of ads, in a data-driven environment. Our mission is to fuel the creation of quality content by empowering digital publishers and app developers to unlock the true value of their advertising properties through advanced technologies, innovative ad formats and data-driven decision-making. Fyber s technology platform provides an open-access platform for both digital advertisers and publishers with a global reach of more than 1.2 billion unique monthly users. Fyber has offices in Berlin, Tel Aviv, New York, San Francisco, London, Beijing and Seoul. The Company employs more than 300 people globally and is listed on the Prime Standard of Frankfurt Stock Exchange under the symbol FBEN and the ISIN NL

19 Disclaimer These materials may contain forward-looking statements based on current assumptions and forecasts made by Fyber N.V. s management and other information currently available to Fyber N.V. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results, performance or events to differ materially from those expressed or implied by the forward-looking statements. Statements contained in these materials regarding past trends or events should not be taken as a representation that such trends or events will continue in the future. Neither Fyber N.V. nor any other party is under any duty to update or 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 commercial principles. Figures rounded may not in all cases add up to the stated totals or the statements made in the underlying sources. For the calculation of percentages used in the text, the actual figures, rather than the commercially rounded figures, were used. Accordingly, in some cases, the percentages provided in the text may deviate from percentages based on rounded figures. The financial information relating to the Group 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. No representation or warranty, expressed or implied, is given by or on behalf of Fyber N.V. or any of its affiliates, directors, officers or employees, advisors or any other person as to the accuracy or completeness of the information or opinions contained in this document, and no liability whatsoever is accepted for any such information or opinions or any use which may be made of them. This document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities. 19