Q1 2016 results 12 May 2016 CXENSE:OSE today Sector - - PowerPoint PPT Presentation

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Q1 2016 results 12 May 2016 CXENSE:OSE today Sector - - PowerPoint PPT Presentation

Oct 22, 2022 369 likes •701 views

Q1 2016 results 12 May 2016 CXENSE:OSE today Sector Software-as-a-Service Value prop. Personalization of internet sites and apps Customers All companies with online sites and apps NOK 200 million annualized and growing Revenues

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Q1 2016 results

12 May 2016

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CXENSE:OSE today

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

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People want relevant and engaging online experiences Personalization needed

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Why personalization?

Improved user experience More engagement Higher conversion Reduced churn Increased revenue

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1.5bn devices interacted with Cxense technology in Q1

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

# Events interacting with Cxense # Devices interacting with Cxense

5 10 15 20 25 30 35 40 45 50 Billion 200 400 600 800 1000 1200 1400 1600 Million
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Growing customer base and adoption

Verticals Time Media

Publishers and Broadcasters

Sports Consumer brands Financial services e-commerce and classifieds

Cxense customers Q1’16

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389 619 887 1 065 1 110 1 500 1 708 3 212 4 174 4 115 4 140 4 152 3 881 3 540 4 818 6 056 6 263 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

Group revenue*

USD 1 000

Revenue development

*Figures for period Q2’12 to Q1’13 are restated to exclude the discontinued operations of PPN AG
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Growth strategy: Pursuing value within three areas

  • Continue to commercialize the world’s leading personalization offering
  • Customer up-lift and add new customers to recurring revenue base
  • Minimize churn
  • Sharp focus on core, most value-enhancing products for customers
  • Cost effectiveness
  • Focused R&D investments to maintain and develop uniqueness
  • Streamlining a market-oriented organization to enhance sales efficiency
  • Financial flexibility

Revenue growth Profitability Scalability

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Streamlining a market-oriented technology company

OSLO LONDON MADRID NEW YORK BUENOS AIRES TOKYO SINGAPORE SAMARA BOSTON Strengthened R&D:

Doubled

  • rganization at

stable cost base

Focused sales and marketing:

Americas, Europe and Japan

Focused offering:

Leading personalization suite

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Financials

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1.6 1.8 1.7 3.7 0.6 0.8 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Q1'15 Q1'16

Ad Network Personalization Suite Advertising Solutions 6.3 +61% 3.9

  • Strong personalization trend drives Cxense’s

growth

  • Personalization Suite growth of 111%
PCAN Business Segment SaaS Business Segment SaaS Business Segment Personalization Suite: DMP, analytics, content, video and search products Advertising Solutions: Display, CXAD and Maxifier products

Revenue USD million per quarter

61% YoY revenue growth

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Continued high contracting activity in Q1 2016

New contracts per quarter

11 14 11 7 11 21 22 34 31 37 31 41 37 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

  • 37 new contracts
  • 22 on new customers
  • 15 up-sell on existing customers
  • Annualized Recurring Revenue (ARR)
  • f new contracts closed in the quarter
  • f USD 1.6 million
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Recurring revenue model: Solid foundation for organic growth

Statistics last four quarters:

  • Closed New Annualized Recurring (ARR)Revenue
  • f USD 7.5 million
  • Lost ARR of USD -2.6 million
  • Net New ARR of USD 4.9 million (27% organic

growth over total revenue in the period)

1 320 1 404 1 476 2 652 1 716 1 536 1580 964 1 100 1 784 1 084 2 441 1 650 1672 (212) (308) (1 668) (892) (520) (489) (648) (2 000) (1 500) (1 000) (500)
  • 500
1 000 1 500 2 000 2 500 3 000 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Annualized Recurring Revenue (ARR) on contracts closed in the quarter New ARR effect in reported figures Lost ARR (churn) 1 Annualized recurring revenue effect of quarterly performance * H1 2015 Churn was higher than normal due to losses on advertising portfolio
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3.54 4.82 6.06 6.26 (2.19) (1.61) (1.50) (0.79) Q2'15 Q3'15 Q4'15 Q1'16 Revenues EBITDA adjusted

  • In Q1 2016 Cxense completed the planned

post-acquisition restructuring

  • Thus reported OPEX was high and impacted

reported EBITDA negatively

  • EBITDA adjusted for one-off restructuring

costs and full effect of the completed cost reductions is USD -0.8 million USD million

Underlying EBITDA improvement continues

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Quarterly group OPEX – reported vs “run-rate”

USD 1 000

Q1 2016 opex run-rate level below reported opex as a result

  • f completed cost reductions

5 505 6 689 6 188

  • 525
  • 208
  • 451

Q1 2016 adjusted run-rate Share based payments Q1 2016 reported Full effect of completed cost reductions Restructuring costs Q4 2015 adjusted run-rate

Effects of the Q1 2016 restructuring:

  • R&D development from two main
  • ffices – Oslo and Samara. Close down
  • f Melbourne and Stockholm offices
  • More R&D resources focused on

Personalization suite development

  • Output increase: 75 R&D FTEs in Q2

2016 vs 39 in Q1 2015

  • Cost effectiveness
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5 829 (2 241) 3 072 ( 516 ) Cash at period start Net cash from

  • perations

Net cash used in investing activities Net cash from financing activities Cash at period end

Q1 2016 cash flow development

USD 1,000

  • Q1 2016 cash flow from operations of USD -2.2

million, impacted by;

  • Year end bonuses paid accrued for in 2015 but

paid in Q1 2016

  • Restructuring cost
  • Through a year the EBITDA adjusted for share

based payments and cash flow from operations will equal

  • Q1 2016 adjusted EBITDA run rate was -0.8

million and USD -1.3 million per quarter with R&D

capitalization add back

  • Outgoing cash position of USD 3.1 million

Cash flow and cash position

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Operations

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Why personalization?

Improved user experience More engagement Higher conversion Reduced churn Increased revenue

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CX NEWS

One size fits all?

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  • 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

CX NEWS

London Desktop 8.23 pm Logged in CX MAG

One size fits all?

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  • 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
Enjoy your subscription? Update your CC details today
  • 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

CX NEWS

London Desktop 8.23 pm Logged in

One size fits all?

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Strong need for personalization across multiple verticals

CX TRAVEL

and many more…

Young professional?

We give you the best mortgage rates

Read more
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Engage Understand Convert Real-time, actionable

Data

is the foundation enabling you to Users expect a personalized experience

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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

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Summary and outlook

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Summary and Outlook

  • All-time-high revenues in Q1 2016
  • 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

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Appendix

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Key figures

Change USD 1,000 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 q/q Revenues 3 881 3 540 4 818 6 056 6 263 3 % SaaS segment 3 301 2 954 4 183 5 291 5 467 3 % PCAN segment 619 620 675 805 837 4 % Inter-segment elimination (39) (34) (39) (39) (41) Gross profit 2 916 2 426 3 646 4 686 4 717 1 % Gross margin SaaS segment 84 % 78 % 83 % 85 % 83 % Gross margin PCAN segment 24 % 22 % 24 % 22 % 19 % OPEX 4 466 5 518 5 779 6 093 6 689 Non-IFRS OPEX adjustments (121) (901) (523) 95 (659) Estimated full effect of cost-reduction program (176) (525) OPEX adjusted 4 170 4 617 5 256 6 188 5 505

  • 11 %

EBITDA (1 550) (3 092) (2 134) (1 407) (1 972)

  • 40 %

EBITDA adjusted (1 253) (2 191) (1 611) (1 502) (789) 47 %

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Income Statement

USD 1,000 Q1 2016 Q1 2015

Revenues consolidated 6 263 3 881 Cost of goods sold 1 546 965 Employee benefit expense 4 857 2 918 Depreciation & Amortisation expense 865 358 Other operating expense 1 832 1 548 Total operating expense 1 546 965 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)

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Consolidated Statement of Financial Position

USD 1,000 As at 31 Mar 2016 As at 31 Mar 2015

Non-current assets Goodwill 14 364 3 807 Deferred tax asset 37 34 Intangible assets 13 061 4 434 Office machinery, equipment,etc. 314 400 Investments in associated companies 4 620
  • Other financial assets
251 173 Total non-current assets 32 647 8 847 Current assets Trade receivables 3 725 2 120 Other short-term assets 989 1 641 Cash and cash equivalents 3 072 8 291 Total current assets 7 786 12 051 Total Assets 40 433 20 898 Total Equity 27 035 15 616 Non-current liabilities Deferred tax liabilities 968 507 Other long-term liabilities 2 688
  • Total non-current liabilities
3 657 507 Non-current liabilities Trade payables 1 463 1 100 Current taxes 109 77 Other short-term liabilities 8 170 3 597 Total current liabilities 9 742 4 775 Total equity and liabilities 40 433 20 898
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Cash Flow Statement

USD 1,000 Q1 2016 Q1 2015

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

171 121

Share of profit of investments accounted for using the equity method

149

  • Depreciation and amortization

865 358

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
  • 8 624
Proceeds from minority interest
  • Net cash flow from / (used in) financing activities
  • 8 624
Net increase/ (decrease) in cash and cash equivalents

(2 757) 5 462

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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