Q results. 12 May 2016

Transcription

1 Q results 12 May 2016

2 CXENSE:OSE today Sector Value prop. Customers Revenues Software-as-a-Service Personalization of internet sites and apps All companies with online sites and apps NOK 200 million annualized and growing Gross margin ~83% Recurring software license fees Organization 160 employees in Europe, Americas and Asia 2

3 People want relevant and engaging online experiences Personalization needed 3

4 Why personalization? Improved user experience More engagement Higher conversion Reduced churn Increased revenue 4

5 1.5bn devices interacted with Cxense technology in Q1 # Events interacting with Cxense # Devices interacting with Cxense Billion Million Events = page-views Device = Browser with unique history. A user using Opera, Firefox and Chrome on one PC equals 3 devices. Mobile, ipad and so on are devices, as is one PC with several unique logins 5

6 Growing customer base and adoption Cxense customers Q1 16 Consumer brands Financial services Sports e-commerce and classifieds Media Publishers and Broadcasters Time Verticals 6

7 Revenue development Group revenue* USD Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 *Figures for period Q2 12 to Q1 13 are restated to exclude the discontinued operations of PPN AG 7

8 Growth strategy: Pursuing value within three areas Continue to commercialize the world s leading personalization offering Revenue growth Customer up-lift and add new customers to recurring revenue base Minimize churn Profitability Sharp focus on core, most value-enhancing products for customers Cost effectiveness Focused R&D investments to maintain and develop uniqueness Scalability Streamlining a market-oriented organization to enhance sales efficiency Financial flexibility 8

9 Streamlining a market-oriented technology company OSLO BOSTON NEW YORK LONDON MADRID SAMARA TOKYO Focused offering: Leading personalization suite Focused sales and marketing: Americas, Europe and Japan Strengthened R&D: Doubled organization at stable cost base SINGAPORE BUENOS AIRES 9

10 Financials 10

11 61% YoY revenue growth Revenue USD million per quarter % Ad Network PCAN Business Segment Strong personalization trend drives Cxense s growth Personalization Suite SaaS Business Segment Personalization Suite growth of 111% Q1'15 Q1'16 Advertising Solutions SaaS Business Segment Personalization Suite: DMP, analytics, content, video and search products Advertising Solutions: Display, CXAD and Maxifier products 11

12 Continued high contracting activity in Q New contracts per quarter new contracts 22 on new customers 15 up-sell on existing customers Annualized Recurring Revenue (ARR) of new contracts closed in the quarter of USD 1.6 million Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 12

13 Recurring revenue model: Solid foundation for organic growth Annualized Recurring Revenue (ARR) on contracts closed in the quarter New ARR effect in reported figures Lost ARR (churn) Statistics last four quarters: Closed New Annualized Recurring (ARR)Revenue of USD 7.5 million 500 Lost ARR of USD -2.6 million - (500) (1 000) (212) (308) (892) (520) (489) (648) Net New ARR of USD 4.9 million (27% organic growth over total revenue in the period) (1 500) (2 000) (1 668) Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 1 Annualized recurring revenue effect of quarterly performance * H Churn was higher than normal due to losses on advertising portfolio 13

14 Underlying EBITDA improvement continues USD million Revenues EBITDA adjusted In Q Cxense completed the planned post-acquisition restructuring Thus reported OPEX was high and impacted reported EBITDA negatively (2.19) (1.61) (1.50) (0.79) EBITDA adjusted for one-off restructuring costs and full effect of the completed cost reductions is USD -0.8 million Q2'15 Q3'15 Q4'15 Q1'16 14

15 Q opex run-rate level below reported opex as a result of completed cost reductions Quarterly group OPEX reported vs run-rate USD Effects of the Q restructuring: R&D development from two main offices Oslo and Samara. Close down of Melbourne and Stockholm offices More R&D resources focused on Personalization suite development Output increase: 75 R&D FTEs in Q vs 39 in Q Cost effectiveness Q adjusted run-rate Q reported Share based payments Restructuring costs Full effect of completed cost reductions Q adjusted run-rate 15

16 Cash flow and cash position Q cash flow development USD 1, (2 241) Q cash flow from operations of USD -2.2 million, impacted by; Year end bonuses paid accrued for in 2015 but paid in Q Restructuring cost ( 516 ) Through a year the EBITDA adjusted for share based payments and cash flow from operations will equal Q adjusted EBITDA run rate was -0.8 million and USD -1.3 million per quarter with R&D capitalization add back Cash at period start Net cash from operations Net cash used in investing activities Net cash from financing activities Cash at period end Outgoing cash position of USD 3.1 million 16

17 Operations 17

18 Why personalization? Improved user experience More engagement Higher conversion Reduced churn Increased revenue 18

19 One size fits all? CX NEWS 19

20 One size fits all? CX NEWS London Desktop 8.23 pm Logged in Subscribes to CX Magazine CX MAG Not interested in Entertainment Not interested US domestic news Recently viewed Mercury Crossing Recently Read El Chapo s Extradition No plans of travelling to Egypt 20

21 One size fits all? CX NEWS Enjoy your subscription? Update your CC details today London Desktop 8.23 pm Logged in Subscribes to CX Magazine Not interested in Entertainment Not interested US domestic news Recently viewed Mercury Crossing Recently Read El Chapo s Extradition No plans of travelling to Egypt Interested in Politics Regularly scans Tech news Keeps updated on the latest science news Likes Horse racing Long term interest for Parenting In the market for a new car Credit card expires in 1 month 21

22 Strong need for personalization across multiple verticals CX TRAVEL Young professional? We give you the best mortgage rates Read more and many more 22

23 Real-time, actionable Data is the foundation enabling you to Users expect a personalized experience Understand Engage Convert 23

24 Cxense offers the world s leading personalization software Unique real-time data capture 1.5 billion devices Multiple data sources The richest user profiles in the market Real-time personalized site&apps A personal and engaging experience More digital revenue 24

25 Summary and outlook

26 Summary and Outlook All-time-high revenues in Q High activity on new customers and upsell to existing client base Refocusing executed in Q1 2016; strengthening service offerings at a lower cost Continued cost synergies expected in Q2 2016; on target for 2016 EBITDA profitability Well-positioned in a growing digital economy with real-time data management and personalization offerings 26

27 Appendix 27

28 Key figures Change USD 1,000 Q Q Q Q Q q/q Revenues % SaaS segment % PCAN segment % Inter-segment elimination (39) (34) (39) (39) (41) Gross profit % Gross margin SaaS segment 84 % 78 % 83 % 85 % 83 % Gross margin PCAN segment 24 % 22 % 24 % 22 % 19 % OPEX Non-IFRS OPEX adjustments (121) (901) (523) 95 (659) Estimated full effect of cost-reduction program (176) (525) OPEX adjusted % EBITDA (1 550) (3 092) (2 134) (1 407) (1 972) -40 % EBITDA adjusted (1 253) (2 191) (1 611) (1 502) (789) 47 % 28

29 Income Statement USD 1,000 Q Q Revenues consolidated Cost of goods sold Employee benefit expense Depreciation & Amortisation expense Other operating expense Total operating expense Net operating income/(loss) (2 838) (1 908) Net financial income/(expense) (171) 11 Share of profit from associated companies (149) - Net income/(loss) before taxes (3 158) (1 896) Income tax expense 27 (7) Net income/(loss) for the period (3 185) (1 890) 29

30 Consolidated Statement of Financial Position USD 1,000 As at 31 Mar 2016 As at 31 Mar 2015 Non-current assets Goodwill Deferred tax asset Intangible assets Office machinery, equipment,etc Investments in associated companies Other financial assets Total non-current assets Current assets Trade receivables Other short-term assets Cash and cash equivalents Total current assets Total Assets Total Equity Non-current liabilities Deferred tax liabilities Other long-term liabilities Total non-current liabilities Non-current liabilities Trade payables Current taxes Other short-term liabilities Total current liabilities Total equity and liabilities

31 Cash Flow Statement USD 1,000 Q Q Cash flow from operating activities Profit/(loss) after income tax (including disposal group) (3 185) (1 890) Adjustments: Income tax payable (93) 29 Share-based payments Share of profit of investments accounted for using the equity method Depreciation and amortization Currency translation effects 243 (624) Change in trade receivables (188) 30 Change in trade payables 82 (354) Change in other accrual and non-current items (286) (431) Net cash flow from / (used in) op. activities (2 241) (2 761) Cash flow from investing activities Investment in furniture, fixtures and office machines (20) 6 Investment in intangible assets (496) (406) Investment in associated companies - - Investment in subsidiary - - Net cash effects from disposal subsidiary Net cash flow from / (used in) investing activities (516) (400) Cash flow from financing activities Net proceeds from share issues Proceeds from minority interest - - Net cash flow from / (used in) financing activities Net increase/ (decrease) in cash and cash equivalents (2 757)

32 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 32