www.cxense.com
Q1 2017 results
10 May 2017
Q1 2017 results 10 May 2017 www.cxense.com Cxense is a - - PowerPoint PPT Presentation
Q1 2017 results 10 May 2017 www.cxense.com Cxense is a Software-as-a-Service (SaaS) company Business model: Cxense offering: Customers: Cxenses customers subscribe for Data Companies management & software and services that they can
www.cxense.com
10 May 2017
www.cxense.com
Recurring revenues and gross margin >80% | Organization of ~170 employees in Europe, North and South America, and Asia | Listed on Oslo Børs
Cxense offering: Data management & personalization software Customers: Companies with sites and apps across the world Business model: Cxense’s customers subscribe for software and services that they can access in the cloud and pay a monthly fee
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customer and continued decline of advertising portfolio
reflected in growing lead pipeline
RepKnight to strengthen Cxense’s offering, distribution and sales
3,6 3,9 4,3 4,5 4,3 1,9 1,4 1,2 1,2 0,9 0,8 1,0 0,8 0,9 0,7 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Data management & personalization software Advertising software PCAN Cxense revenue overview USD million
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13,2 15,2 16,3 17,0 Q2'16 Q3'16 Q4'16 Q1'17
revenue contracts in Q1’17
momentum despite high churn in the quarter
Ad Network / Programmatic = The PCAN segment Advertising Software and Personalization and Data Management = The SaaS segment
Rolling 12-month data management and personalization revenue
USD million
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Content Promotions Personalized Product Offerings Emails & newsletters Display Ads Push notifications
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find and consume what they want
consume when they want it
Personalized content, advertising and product offering 6
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…personalize news sites and increase revenue from ads …personalize online shopping to increase revenue from online sales …personalize subscription offers and increase subscription revenue
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11 14 11 7 11 21 22 34 31 37 31 41 37 35 26 39 30
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 Q2'16 Q3'16 Q4'16 Q1'17
# of new SaaS contracts
All Q1’17 contracts for data management & personalization software 12 up-sell 18 new customers
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Cxense customers Q1’17
Media
Publishers and Broadcasters
Sports Consumer brands Financial services e-commerce and classifieds Verticals Time
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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
200 400 600 800 1000 1200 1400 1600 1800 2000 Q3'11 Q4'11 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 Q2'16 Q3'16 Q4'16 Q1'17 Million 11
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Last recurring revenue Churn New Revenue New recurring revenue Upsell existing customers New customers Lost customers
SaaS recurring revenue business model
Illustrative
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3,6 4,3 1,9 0,9 0,8 0,7 6,26 5,92 0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 Q1'16 Q1'17
revenue decrease in the advertising software segment
software growing 21% y/y
revenues
Data management and personalization is the main revenue driver
Ad network/ Programmatic, -12% Data management & personalization software, +21% Advertising software, -52%
Revenue
USD million
Ad Network / Programmatic = The PCAN segment Advertising Software and Personalization and Data Management = The SaaS segment
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Strong demand for data management and personalization software
Reported Revenues, USD million Churn effect, USD million 4,30 4,50 4,30 3,90 3,60 Q1 ’16 Q2 ’16 Q3 ’16 Q4 ’16 Q1 ’17
0,90 1,20 1,20 1,40 1,90 Q1 ’17 Q3 ’16 Q4 ’16 Q2 ’16 Q1 ’16
Personalization and Data Management software Advertising software
sequentual revenue drop
customer results
competition is high
segment now is relatively small to rest of revenue
www.cxense.com
million
reps delivered results
effective sales quotas
Quotas (SQ) per quarter
Q4 Plan
SQ per quarter New ARR per quarter
18 30* 0.12
USDm
0.12**
USDm
2.1
USDm
3.5
USDm
** Assuming the same sales performance as in Q4 2016
Q1
19 0.09
USDm
1.7
USDm
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75% 73% 70% 70% 66% 83% 82% 77% 79% 74% 19% 18% 16% 12% 12% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Group SaaS segment PCAN segment
margin:
location solution
data management features
Quarterly gross margin
Percent
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million in Q1 2016
spending
USD 1,000 Q1 2016 Q4 2016 Q1 2017 Revenues 6 263 6 562 5 918 Gross profit 4 717 4 574 3 937 Gross margin 75 % 70 % 67 % OPEX 6 689 7 204 6 848 Non-IFRS OPEX adjustments (659) (397) (358) Estimated full effect of cost-reduction program (525) OPEX adjusted 5 505 6 807 6 490 EBITDA (1 973) (2 629) (2 911) EBITDA adjusted (790) (2 233) (2 553)
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10 35
80 100 20 20
R&D EBITDA Marketing Account Mngmnt & support ARR* CoS (Hosting cost) Gross Profit Capitalized R&D 10 15 G&A Sales & Impl. 45
*Annualized Recurring Revenue (ARR) ** All cost vouchers are not split by operational department, hence cost break-down is illustrative and in round numbers
Variable costs Economies of scale 50% increase in sales & implementation capcity costs 17.5% of revenue baseline Illustrative**
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Q1 2017 cash flow
USD 1,000
21 960 12 805
(3 995) (5 160)
Cash at period start Net cash from
Net cash from investing activities Net cash from financing activities Cash at period end
accrued for in 2016 and paid in Q1 2017.
EBITDA
social media analytics capabilities
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“The world’s most valuable resource is no longer oil, but data” “Alphabet (Google’s parent company), Amazon, Apple, Facebook and Microsoft—look unstoppable. They are the five most valuable listed firms in the world. Their profits are surging: they collectively racked up over $25bn in net profit in the first quarter of
revenue growth in digital advertising in America last year.”
The Economist, Print edition | Leaders | May 6th 2017
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Feb 2017: Gartner Group included Cxense in its Third Magic Quadrant for Digital Marketing Hubs made up of 22 selected vendors globally Gartner said “marketing leaders need a system that can integrate and coordinate data and activities across channels, devices and contexts, continuously and in real time”. The quadrant provides an overview of vendors from advertising, marketing automation and analytics that deliver personalized digital marketing at scale.
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NEW YORK OFFICE BOSTON OFFICE
to grow from
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mporium Group plc - GBP 0.65 million
device users RepKnight - GBP 3 million
reach and impressions
enables more relevant personalization
Strategic investments made in Q1 2017 to add capabilities and widen market reach
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USD 1,000 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Change y/y Data Management & Personalization software 3 566 3 933 4 295 4 495 4 299 21% Advertising software 1 900 1 448 1 216 1 159 911
SaaS segment 5 467 5 381 5 511 5 654 5 209
PCAN segment 837 990 840 938 733
Inter-segment elimination (41) (41) (34) (30) (24) Revenues 6 263 6 330 6 317 6 562 5 918
Gross profit 4 717 4 594 4 394 4 575 3 937
Total gross margin 75 % 73 % 70 % 70 % 67 % Gross margin SaaS segment 83 % 82 % 77 % 79 % 74 % Gross margin PCAN segment 19 % 18 % 16 % 12 % 12 % OPEX 6 689 5 904 6 266 7 204 6 848 2% Non-IFRS OPEX adjustments (659) (204) (226) (397) (358) Estimated full effect of cost-reduction program (525) OPEX adjusted 5 505 5 700 6 040 6 807 6 491 EBITDA (1 972) (1 310) (1 873) (2 629) (2 911)
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USD 1,000
369 663 429 384 395 637 240 516 429 446 271 610 413 418 290 514 373 469 (417) (223) (130) (122) (162) (360) (131) (131) (691)
(800) (600) (400) (200) 200 400 600 800 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
Quarterly Recurring Revenue (QRR) on contracts closed in the quarter New QRR effect in reported figures Lost QRR (churn)
USD 0.2 million related to one large video customer
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USD 1,000 Q1 2017 Q1 2016 Revenue 5 918 6 263 Operating expense Cost of goods sold 1 981 1 546 Employee benefit expense 4 586 4 857 Other operating expense 2 262 1 832 EBITDA (2 911) (1 973) Depreciation & amortization expense 983 865 Net operating income/(loss) (3 894) (2 838) Net financial income/(expense) 76 (171) Share of profit of investments accounted for using the equity method (375) (149) Net Income/(loss) before taxes (4 193) (3 158) Income tax expense 85 27 Net income/(loss) for the period (4 278) (3 185)
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USD 1,000 As at 31 Mar 2017 As at 31 Mar 2016
Non-current assets Goodwill 14 364 14 364 Deferred tax asset 15 37 Intangible assets 11 426 13 061 Office machinery, equipment, etc. 280 314 Investments in associated companies 8 391 4 620 Other financial assets 646 251 Total non-current assets 35 121 32 647 Current assets Trade receivables 3 046 3 725 Other short-term assets 1 382 989 Cash and cash equivalents 12 805 3 072 Total current assets 17 233 7 786 Total Assets 52 354 40 433 Total Equity 44 338 27 035 Non-current liabilities Deferred tax liabilities 674 968 Other provisions 121 Other long-term liabilities 199 2 688 Total non-current liabilities 994 3 657 Non-current liabilities Trade payables 1 403 1 463 Current taxes 178 109 Other short-term liabilities 5 441 8 170 Total current liabilities 7 022 9 742 Total equity and liabilities 52 354 40 433 32
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USD 1,000 Q1 2017 Q1 2016
Cash flow from operating activities Profit/(loss) after income tax (including disposal group) (4 278) (3 185) Adjustments: Income tax payable (110) (93) Share-based payments 242 171 Share of profit of investments accounted for using the equity method 375 149 Depreciation and amortization 983 865 Currency translation effects 210 243 Change in trade receivables 587 (188) Change in trade payables (361) 82 Change in other accrual and non-current items (1 644) (286) Net cash flow from / (used in) op. activities (3 995) (2 241) Cash flow from investing activities Investment in furniture, fixtures and office machines (76) (20) Investment in intangible assets (507) (496) Investment in associated companies (4 577) Investment in subsidiary
Net cash flow from / (used in) investing activities (5 160) (516) Cash flow from financing activities Net proceeds from share issues
(9 155) (2 757) 33
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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
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