Powering the Next Generation of Digital Advertising
Results Presentation – September 2015
CONFIDENTIAL
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Powering the Next Generation of Digital Advertising Results Presentation September 2015 CONFIDENTIAL Disclaimer The information contained in these slides and communicated verbally to you, including the speech(es) of the presenter(s) and any
Powering the Next Generation of Digital Advertising
Results Presentation – September 2015
CONFIDENTIAL
The information contained in these slides and communicated verbally to you, including the speech(es) of the presenter(s) and any materials distributed at or in connection therewith (together, the "Presentation") is confidential. Reliance upon the Presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. If any person is in any doubt as to the contents of the Presentation, they should seek independent advice from a person who is authorized for the purposes of the Financial Services and Markets Act 2000 (“FSMA") and who specializes in advising on investments of this kind. The Presentation is being supplied to you solely for your information. The Presentation has been prepared by, and is the sole responsibility of Crossrider plc. (the "Company"). The directors of the Company have taken all reasonable care to ensure that the facts stated herein are true to the best
warranty or other assurance, expressed or implied, is made or given by or on behalf of the Company or any of its respective directors, officers, partners, employees or advisers or any other person as to the fairness, accuracy or the completeness of the information or opinions contained herein and to the extent permitted by law no responsibility or liability is accepted by any of them for any such information or opinions. Notwithstanding the aforesaid, nothing in this paragraph shall limit
exclude liability for any representation or warranty made fraudulently. The Presentation has not been approved by the Financial Conduct Authority, AIM or any other regulatory authority and does not constitute, or form part
relating to the Company, nor does it constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any ordinary shares in the Company. Further, neither the Presentation nor any part of it, or the fact of its distribution, shall form the basis of, or be relied upon in connection with, or act as any inducement to enter into any contract for purchase or acquisition of the ordinary shares in the Company. The Presentation may not be copied, reproduced or further distributed, in whole or in part, to any other person, or published, in whole or in part, for any purpose without the prior written consent of the Company. The Presentation is being distributed only to, and is directed at, authorized persons or exempt persons within the meaning of the FSMA or any order made thereunder or to those persons falling within the following articles of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (S.I. 2005 (No 1529)) (as amended) (the "Financial Promotion Order") made pursuant to section 21(5) of the FSMA: Investment Professionals (as defined in Article 19(5)); and High Net Worth Companies (as defined in Article 49(2)). Persons who do not fall within either of these definitions should not rely on the Presentation nor take any action based upon it but should instead return it immediately to the Company. The Presentation is exempt from the general restriction in section 21 of the FSMA relating to the communication of invitations or inducements to engage in investment activity on the grounds that it is made only to certain categories of persons. The distribution of this document in jurisdictions other than the United Kingdom may be restricted by law and persons into whose possession this document comes should inform themselves about and observe any such
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The Presentation contains forward-looking statements. These statements relate to the future prospects, developments and business strategies of the
terms as "believe", "could", "envisage", "estimate", "potential", "intend", "may", "plan", "will" or variations or similar expressions, or the negative
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Positioned across the value chain Building technology Diversified business models Unique monthly users up 70m since IPO to 220m Video Programmatic RTB for Mobile
Revenue growth of $14m to $41m Big Data Analytics
INVESTING IN MOBI OBILE: E:PROGRESS AND STRATEGY ADTECH PLATFORMS EXTENDED REACH
Results Presentation – September 2015
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Strong financial discipline Adjusted EBITDA $5.5m (H1/14: $7.6m) Organic revenue growth Revenue up by $14.2m to $40.8m Organic revenue growth of $11.4m Cash generative Cash flow from
$4.1m (H1/14: $4.8m) Strong balance sheet $78m of cash balances at the period end No debt
Results Presentation – September 2015
5 Results Presentation – September 2015
4.2 6.8
25.1 34.0 H1/14 H1/15
Pro-forma Revenue(1) by Channel $million
Mobile Web
St Statut atutor
$mi mill llio ion 2015 2015 H1 H1 2014 2014 H1 % % Ch Chang nge Mobile 6.8 1.5 333% Web 34.0 25.1 35% To Total talrevenu nue 40.8 26.6 53% 53% Pr Pro-forma(1) $mi mill llio ion 2015 2015 H1 H1 2014 2014 H1 H1 % Ch Change Mobile 6.8 4.2 62% Web 34.0 25.1 35% To Total talrevenu nue 40.8 29.3 39% 39%
(1) *The H1 /14 revenue presented above includes the results of Ajillion and DefinitiMedia, acquired in May 2014, as if the companies had been part of the group for H1/14 as a whole.
Web 83%
Mobile 17% Revenue by Channel
6 Results Presentation – September 2015 37% 26% 9% 7% 6% 5% 4% 3% 3%
Revenue by Geography
Rest of the world United States Germany France United Kingdom Australia Italy Brazil Spain
7 Results Presentation – September 2015
Web $million 2015 H1 2014 H1 % Change Revenue 34.0 25.1 35% Direct costs (1) (22.5) (13.5) 67% Segment margin 11.5 11.6 (1)% Margin % 34% 46% (12)% Mobile (1) $million 2015 H1 2014 H1 % Change Revenue 6.8 1.5 353% Direct costs (1) (5.4) (1.3) 315% Segment margin 1.4 0.2 600% Margin % 22% 16% +6%
(1) Direct costs comprise cost of sales plus traffic acquisition costs included within sales and marketing
0.2 1.4
11.6 11.5 H1/14 H1/15
Margin by Channel $million
Mobile Web
8 Results Presentation – September 2015
$mi mill llio ion 2015 2015 H1 H1 2014 2014 H1 H1 Ch Chang ange Mobile 6.8 1.5 353% Web 34.0 25.1 35% Revenu nue 40.8 26.6 53% 53% Direct costs (27.9) (14.7) 90% Se Segment nt ma margin in 12.9 11.9 8% Segment margin % 32% 45% (13%) Opex (7.4) (4.3) 72% Adjus justed EBITDA 5.5 7.6 (28)% )% EBITDA % 4% 29% (25)%
9 Results Presentation – September 2015
$million 2015 2015 H1 H1 2014 2014 H1 H1 Ch Chan ange Ca Cash sh gene nerate ated from
perat atio ions ns 4.1 4.7 (0.6) Purchase of fixed assets (0.2) (0.2)
(1.0) (0.3) (0.7) Net cash paid for acquisitions (0.6) (8.9) 8.3 Other
(0.1) Net t ca cash sh used investin ing act ctiv ivit itie ies (1.8) (9.3) 7.5 Proceeds from borrowings
(6.6) Ne Net t ca cash sh generat ated from financin cing activ ctiviti ties
(6.6) Net t ca cash sh inflo flow for the pe perio iod 2.3 2.0 0.3 Cl Closi
ng Ca Cash sh 78.3 4.1 74.2
Koby Menachemi, CEO Ran Goldi, VP Mobile
Powered Mobile Ad Networks
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daily AVAILABLE ad spaces
daily MONETISED ad spaces
Crossrider Platform
Results Presentation – September 2015
MONTHLY UNIQUE USERS exposed to Crossrider’s advertising content 6bn via Mobile
12 Results Presentation – September 2015
Merged Data Q2 2014 Q3 2014 Q4 2014 Acquired Ajillion & DefinitiMedia Launched Ajillion‘s RTB Bidder Q2 2015 Q1 2015 DefinitiMedia Focusing on margins Extending reach - Connecting to Google & Twitter
ad spaces
technology (Ajillion)
Progress
Buying capabilities
development team
Investing for the future
8.8 17.8 32.7 49.7 69.1 88.6 108.9 104.6 120.1 140.2 160.2 178.5 196.1 213.9
2012A 2013A 2014E 2015E 2016E 2017E 2018E Digi gital Video Adve vertising Val alue Mobile
13 Results Presentation – September 2015 *Source: Google's Rich Media Gallery, February 2015
units*
using existing capabilities (Ajillion Platform)
via Investment in Clearvelvet Trading Ltd
*Source: eMarketer 2014
14
Criteria
profitability; and
Business
Technology
Results Presentation – September 2015
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Results Presentation – September 2015