2020 half year results - actusnews.com€¦ · 2 days ago · consolidated data –ifrs –in...
TRANSCRIPT
2020 Half Year Results
September 24, 2020
2ATEME © 1991-2020
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 © 1991-2020
Presenters
Michel ArtièresFounder & Chief Executive Officer
Degree in Engineering from Supelec, Paris, with a specialization in signal processing and telecommunications
Fabrice Sana Chief Financial Officer
Degrees from the European Business School and ESSEC
4ATEME © 1991-2020
1.ATEME for beginners2. Market Trends
3. Financial Performance
4. Strategy
5ATEME © 1991-2020
ATEME Factsheet
43 Patents
Up 55% in 2019
300 people in 18 countries
Public since 2014
800 clients in 100 countries
66.4 M€ in 2019 (+18%)
ATEME helps Content Providers and Service Providers transform their video delivery to
enable innovative live and on demand video services and enhance the quality of experience
MRRMONTHLY
RECURRINGREVENUE
6ATEME © 1991-2020
A Complete Offer for the Complete Video Flow
Service Provider(Satellite, Cable, Telco)
Video Headend
Event
ContributionPrimary
DistributionDistribution
OTT / Multiscreen
Subscriber
CDNContent Provider
TV Network
Kyrion encoders in the trucks and decoders at the TV station
TITAN is a virtualized Video Headend software covering all Live and File needs
7ATEME © 1991-2020
1. ATEME for beginners
2.Market Trends3. Financial Performance
4. Strategy
8ATEME © 1991-2020
Evolution of the Media Landscape
Studios/Broadcasters/NetworksCreated string brands in the 80’s-90’s
Service Providers (MVPDs) Historically, got the broader access to customer
SVOD or Ad-Supported VOD ServiceImpose Binge Watching as the Way to consume video
Virtual Service Providers (vMVPDs)New content or Skinny cost-effective bundlesNew
Entrants
Digital Native
Traditional Players
TV/STB native
Content ProvidersCreate/Produce/License Content
Service ProvidersAggregate/Distribute Content
9ATEME © 1991-2020
Challenges: Lost in Searching, Fragmentation, Subscription Fatigue
Where do I find this content ? (eg: Aquaman vs Avengers vs Peaky
Blinders)
Content Fragmentation
Will we pay for 10-12 services ?Again my ID/Password/Credit Card ??
(Player solving this issue in a diff Industry: WhatsApp)
Subscription Fatigue
10ATEME © 1991-2020
Opportunities: SPs Become OTT App Aggregators, Personalized TV
MVPDs (Comcast, LG, Canal+…) acting as OTT App Market Place
In some regions sensitive to credit card payment, they are also carrier billing
Personalized TV
aka Linear On Demand
‘’The great un-bundling could give birth to the great re-bundling’’, Matt Strauss, Chairman, Peacock and NBCUniversal Digital Enterprise
11ATEME © 1991-2020
The Power of Personalization
Source: The Trade DeskSource: Google
Source: Tivo
Reduce Churn Rate for Service Providers Customers are Looking for It
Increase Ads Revenue
12ATEME © 1991-2020
COVID: Acceleration to Multi & Hybrid Cloud
Post Covid-19, 93% of enterprises have a multi-cloud strategy
Companies use an average of 2.2 public clouds and 2.2 private clouds
Public Cloud
Source: Flexera 2020 State of the Cloud Report
Strengthening ATEME competitive advantages
• ATEME solutions are agnostic to infrastructure
• Strong partnership build with AWS, MS Azure, Google Cloud and leading regional cloud providers
Private cloud Virtualisation
13ATEME © 1991-2020
1. ATEME for beginners
2. Market Trends
3.Financial Performance4. Strategy
14ATEME © 1991-2020
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Q1 Q2 Q3 Q4
Revenues Evolution by Quarter
€37.5m
€28.6m
€12.3m
€17.9m€20.6m
€24.8m
IPO
€48.6m -3%OrganicgrowthIn S12020
-5%at constant
exchange rate
€56.5m
13.6
€66.3m
12.4
16.5 16.7
€29.0m
15ATEME © 1991-2020
S1 2020 Revenue Split and Growth by Region
USA/CAN+19%
LATAM-45%
APAC+34%
S1 2020 REVENUE SPLIT BY REGION S1 2020 REVENUE GROWTH BY REGION
-xx%at constant
exchange rate
+xx%at constant
exchange rate
+xx%at constant
exchange rate EMEA-20%
+15%at constant
exchange rate
-46%at constant
exchange rate
+31%at constant
exchange rate
EMEA8.027%
USA/Canada12.744%
LATAM3.010%
APAC5.419%
16ATEME © 1991-2020
MRR (12 months) FY GM
MRR Up 55% in 2019 and 25% in H1 2020
Multi-Year Contracts
Monthly Recurring Revenue
SLASoftware
Lease Contracts
• €8.4 million in multi year contracts in January 2020 (vs 0 in 2019)• Monthly Recurring Revenue up 25% in H1 (€1.1m in July 2020 vs
€0.9m in January 2020)
in € January 2018 January 2019 January 2020 July 2020
MRR 300,000 570,000 880 000 1 100 000
FY GM 28,000,000 36,000,000 n/a n/a
MRR (12 months) as a % of GM
13% 19% n/a n/a
✓ Increased visibility with secured revenues
✓ Higher resilience in crisis✓ Increased profitability with
optimization of S&M costs
€28m
€36m
€3.6m
€10.6m €6.8m
€13,2m
17ATEME © 1991-2020
H1 2020 P&LConsolidated data – IFRS –in thousands of euros
Improved product mix with increased software sales increased and reduced resale of third-party products (notably servers sold with TITAN software)
Opex was contained at 10%, focus on strategic investment in future software solutions (R&D)
H1 2019 H1 2020 % change
Revenue 30,080 29,039 -3%
Gross profit 14,052 14,554 +4%
Gross margin 46.7% 50.1% +3.4 points
R&D expenses (4,507) (5,640) +25%
Sales & marketing expenses (9,095) (9,484) +4%
G&A expenses (1,706) (1,674) -2%
Total Opex 15,308 16,798 +10%
Operating profit (1,256) (2,243) na
Financial loss (102) (99)
Financial profit 4 4
Exchange effect 159 (60)
Tax income 12 (193)
Net profit (1,182) (2,591) na
18ATEME © 1991-2020
IPO July 2014
2016
2015
2014
Growing Profitably Since 2016
2017
€12.3m
€-2.5m
€15.0m
€-1.6m
€16.3m
€0.0m
€12.9m
€-1.1m
€11.9m
€-0.9m
165135
170
€22.5m
€3.6m
Revenues
Net Loss/Profit
220
€20.9m
€0.3m
€27.7m
€3.5m
2018
€23.2m
€-3.2m
252
€33.3m
€4.9m
2019
€30.1m
€-1.2m
300
€36.2m
€5.8m
2020
€29.0m
319
€-2.6m
19ATEME © 1991-2020
2020/06/30 Balance SheetConsolidated data - IFRS – in thousands of euros
2019/12/31 2020/06/30A
SSET
S
Non-current assets 8,931 8,780
Current assets 48,204 55,307
o/w stocks 3,065 4,410
o/w trade receivables 29,333 23,118
o/w cash and cash equivalents 10,345 20,654
57,135 64,087
LIA
BIL
ITIE
S
Shareholders’ equity 27,127 25,354
Non-current liabilities 8,217 11,696
o/w non-current financial debt 5,420 9,008
Current liabilities 21,791 27,037
o/w current financial debt 1,252 5,453
o/w trade payables 10,399 10,944
57,135 64,087
Strong increase in Cash associated with positive change in working capital and bank and government-backed loans (PGE). Net cash (excl. IFRS 16) at €6.2m
20ATEME © 1991-2020
H1 2019 FCFConsolidated data - IFRS – in thousands of euros
Net Cash end of June 2020: €6.2m
2019/06/30 2020/06/30
Net Profit (Loss) (1,182) (2,591)
(-) Elimination of non-cash elements 1,671 2,263
Gross cash flow 489 (329)
(-) Change in Working Capital 923 (4,238)
Cash flow from operations (434) 3 909
Cash flow from investing activities (1,000) (1,132)w/o new tangible and intangible fixed assets (538) (936)w/o capitalisation of development costs (300) (295)
Cash flow from financing activities (269) 7,579w/o exercice of stock-options 310 199w/o new borrowings - 8 078w/o interest expense (58) (74)w/o repayment of loans and contingent advances (580) (224)w/o repayment of financial leases (393) (400)w/o other financial flows (including factoring) 451 -
Currency effect 14 (45)
Net Change in Cash (1,689) 10,311
Opening Cash position 6,206 10,341
Closing Cash position 4,517 20,652
Bank and government-backed loans
Significant decreased in trade receivables (high level of invoicing in Q4 2019)
21ATEME © 1991-2020
Visibility on a solid pipeline of funded opportunities,including TITAN playout solution
Expanding portfolio of software solutionswith Aneviaacquisition
2020-21 Outlook
Solid cash position
Habitual H2 revenue
acceleration
MRR x2 in 18 months to 1.1 M€
in July 2020
DELIVER MODERATE GROWTH AND OPERATIONAL PROFITABILITY IN FY 2020& PREPARE FOR AN EXCITING 2021
22ATEME © 1991-2020
1. ATEME for beginners
2. Market Trends
3. Financial Performance
4.Strategy
23ATEME © 1991-2020
Playout Brings Video Contents To Home
Live Streams
Video Files
Subtitles
Playlist
Graphics
PLAYOUT
Source : ESPN User Interface
24ATEME © 1991-2020
Prepare Expanding to CPs and SPs OTT delivery
Service Provider(Satellite, Cable, Telco)
Video Headend
PrimaryDistribution
Traditional Distribution
SubscriberCDN
Content ProviderTV Network
CDN
2 Enable new decentralized
distribution workflow for SPs
1 Enable CPs’ direct access
to consumers
OTT
Most of ATEME business today
Playout Compression Distribution
NEA (Anevia) TITAN Live TITAN Playout
25ATEME © 1991-2020
Acquisition of Anevia, Established Leader of OTT & IPTV Delivery
2019 REVENUES: €15.8M
202 CUSTOMERS
IN 60 COUNTRIES
110 PEOPLE
70% engineers
CAGR 2015-2019: +21%Company founded in 2003
Approved & deployed by Tier-1
26ATEME © 1991-2020
ANEVIA & ATEME to Win the OTT Market
Service Provider(Satellite, Cable, Telco)
End-userContent Provider
TV Network
Direct-to-Consumer
Channel Origination
VideoHeadend
OTTStreaming
CDN Cloud DVR Analytics
High Fidelity QualityMulti-Cloud Operations
Reduced TCO of 1000’s of channels
Low Latency NetworkMonetizing OTT with Cloud DVR, Catch-up TV
Customize Ads and Content
Enhanced Customer SatisfactionIncreased ARPU & Ads Revenue
Reduced Churn Rate
CDN
27ATEME © 1991-2020
Contribution Distribution File Prod File VOD D2C Dist.Channel
OriginationOrigin Cloud DVR CDN Analytics
x x x x x x x x x x
x x x x x x x x (3rd party)
x x x x x x x
x x x x x x x
x x x x x x Cloudfront Analytics
x x x x
x x x x
x x x
x x x
$2b TAM, Unique Innovative Player with E2E Offering
~$1b TAM~$1b TAM
28ATEME © 1991-2020
Investor Relations
Next investor dates
Market data
ISIN: FR0011992700 - Ticker: ATEME
Stock price: €17.8 (as of September 22, 2020)
Market cap: €187.3m (as of September 22, 2020)
Concert Artières
12%NJJ Capital (Xavier Niel)
5%
Keren Finance6%
Axa IM5%
Otus Capital10%
Others < 5%60%
Liquidity contract: Kepler Cheuvreux
Source : Company, as of August 31, 2020
Shareholder structureNumber of shares : 10,520,563Potential dilution : 239,188
Stock price (€)
Volumes(nb of shares)
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