Q3 2015 results 20 November 2015 Cxense enables businesses to - PowerPoint PPT Presentation

Q3 2015 results 20 November 2015

Cxense enables businesses to increase digital revenue CUSTOMER BENEFITS > INCREASE CONVERSION Enables businesses to gather, ..to create more more personalized analyze and use data… and engaging user experinces > INCREASE DIGITAL REVENUE 2

Operational data reflect increasing impact # Events interacting with Cxense # Sessions interacting with Cxense # Devices interacting with Cxense Billion Million Million 1400 45 14000 40 1200 12000 35 1000 10000 30 800 25 8000 20 600 6000 15 400 4000 10 200 2000 5 0 0 0 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 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 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 Events = page-views Device = Browser with unique history. A user Sessions= Continuous browsing event (less using Opera, Firefox and Chrome on one PC than 30 minutes pause) with one browser equals 3 devices. Mobile, iPad and so on are devices, as is one PC with several unique logins 3

Growing customer base and adoption across verticals Cxense customers Q3’15 Financial services Consumer brands Sports e-commerce and classifieds Media Publishers and Broadcasters 4 Verticals Time

Revenue development 4 818 Group revenue* USD 1 000 4 174 4 152 4 140 4 115 3 881 3 540 3 212 1 708 1 500 1 110 1 065 887 619 389 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 *Figures for period Q2’12 to Q1’13 are restated to exclude the discontinued operations of PPN AG 5

Strategic development Combining Cxense DMP with… …market leading technologies, offerings and people • Acquired in Q3’15 • Strengthens Cxense’s video platform + • Drive monetization of tier-one media sites • Accelerates North America expansion • Acquired in Q2’15 • Enables businesses to optimize advertising campaigns + • Complements product offerings and technology competence • Complements customer base • Acquired minority stake in Q2’15 + • Signed 3 year OEM licensing agreement in Q2’15 • Strengthens mobile ecommerce offering • mporium a marketing channel for the entire Cxense SaaS suite 6

Recent contracts Vertical Publisher e-commerce Online media e-commerce/publisher Region EMEA EMEA Japan North America • Cxense Maxifier (advertising • Cxense Insight (real-time • • Cxense DMP (Data Cxense Insight (real-time Cxense optimization) products analytics) analytics) Management Platform) deliveries • Cxense DMP (Data • Cxense DMP (Data • Cxense Content (site Management Platform) Management personalization) • Platform) • Cxense Maxifier (advertising solutions • Cxense Advertising products optimization) products 7

Financials 8

Revenue increase and profitability improvement vs last quarter Growth effects Change USD 1 000 Q2 2015 Acquired Organic Q3 2015 q/q Revenues 3 540 4 818 36 % SaaS segment 2 954 712 517 4 183 42 % PCAN segment 620 55 675 9 % Inter-segment elimination (34) (5) (39) Gross profit 2 426 655 565 3 646 50 % Gross margin SaaS segment 78 % 83 % Gross margin PCAN segment 24 % 24 % OPEX 5 518 5 779 Non-IFRS OPEX adjustments (901) (523) OPEX adjusted 4 617 1 470 (831) 5 256 14 % EBITDA (3 092) (2 134) EBITDA adjusted (2 191) (815) 1 396 (1 611) 26 % 9

SaaS segment: Q3 2015 revenues vs Q3 2014 USD 1 000 Accumulated currency effect - add back Reported SaaS segment revenue 5 000 4 736 553 • USD appreciation vs other 34% 4 000 4 183 18% currencies masks year-over-year growth 3 530 3 000 • 34% year-over-year growth when accumulated currency effect is added 2 000 back 1 000 0 Q3’14 Q3’15 *Cxense presentation currency is USD, but the majority of contracts are denoted in other currencies. When the USD appreciates against all other currencies, as is the case for the period Q3’14 to Q3’15 the value of recurring revenues presented in USD decreases. See Q3’15 report page 4 for currency effect per quarter. 10

Underlying organic growth with positive trend 3 000 Recurring revenue on contracts closed in qtr. 1) 2 652 New recurring revenue effect in reported figures 2 441 2 500 Lost recurring revenue (churn) • Annualized revenue on contracts 2 000 1 784 closed in Q3’15 at second highest 1 716 1 476 1 404 1 500 1 320 level so far 1 100 1 032 964 • Increasing trend over last 4 quarters 876 1 000 804 • 500 Churn declined - • Q3’15 net value of new contracts and (212) (308) (500) churn translates to 10% quarterly (520) organic growth (1 000) (892) (1 084) (1 500) (1 668) (2 000) Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 1 Annualized recurring revenue effect of quarterly performance 11

New contracts Sales efficiency per sales representative* Quarterly number of new contracts 37 USD 1 000 34 31 31 528 404 22 21 312 300 288 14 240 11 11 11 7 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 1) Sales efficiency: Annualized recurring revenue effect of contracts closed on a yearly basis per sales rep 12

Acquisition of Ramp Media adds to North American revenue base Quarterly SaaS segment revenues – reported vs “run - rate” USD 1 000 400 5 633 • Asset Carve out transaction 800 • Consideration: USD 10m +/- closing 5 000 adjustments + revenue growth 290 dependent earn-out structure (max 517 4 183 USD 9m) ( 40 ) 4 000 712 • Annualized revenue of ~ USD 5m • Minor part of portfolio expected to be 2 954 discontinued business 3 000 • North American customer portfolio with up-sell potential 2 000 • Stronger North American organizational foot-print 1 000 • Attractive Video Software offering 0 Q2’15 Q3’15 Acquired Organic Full effect Full effect Estimated Estimated SaaS reported revenue growth reported of of known Q4 effect additional segment revenue contracts churn until of Ramp full effect revenue closed until 30 October Media Ramp "run-rate" 30 October 2105 Media estimate The Ramp Media acquisition closed 22 October 2015 2015 13 Will partly effect in Q4’15 – full effect from Q1’16

Significant OPEX reductions realized SaaS segment: Quarterly OPEX – reported vs “run - rate” USD 1 000 1 470 6 000 5 744 975 5 635 • Cxense continues to focus on 5 056 5 000 profitable growth (831) 4 417 (396) • Modest net OPEX increase from 4 000 Maxifier acquisition due to cost 50% by end of synergy realization Q4 and 100% 3 000 by end of Q1 • According to plan 2016 • Even after the Maxifier and Ramp 2 000 Media acquisitions, the OPEX run- rate is lower than OPEX one year 1 000 ago 0 Q3 2014 Q2 2015 Maxifier Realized Q3 OPEX Expected Estimated OPEX OPEX OPEX Q2 run- OPEX adjusted full effect OPEX from run-rate adjusted adjusted rate OPEX reduction from Ramp Carve Maxifier Maxifier out at take- integration integration over 14

R&D capacity almost doubled at 26% cost increase through Maxifier acquisition R&D headcount R&D OPEX FTEs USD 1 000/quarter +26% +91% 2 376 492 86 41 1 884 45 Existing Aquired Total Existing Aquired Total • New Russian development office with 41 R&D resources will strengthen future development output 15

Cash flow • The Q3’15 cash flow used in operations is higher than Cash flow statement Q3 2015 Q3 2014 EBITDA due to transaction costs paid, but accrued in Cash flow from operating activities previous quarter P/(L) before income tax (2 894) (3 009) Adjustments: • Over time the cash flow from operations will reflect reported Income tax payable (104) (66) Share- based payments 156 137 EBITDA Result from investment in associates 692 - Depreciation and amortization 566 335 • Investment in intangible assets reflects capitalized R&D Currency translation effects (864) 17 cost for the quarter Change in trade receivables (191) (500) Change in trade payables 380 (650) • Capitalization of R&D costs started in 2015 Change in other accrual and non-current items (732) (1 321) Net cash flow from / (used in) op. activities (2 990) (5 058) • Investments in subsidiary line includes the addition of the Maxifier cash position Cash flow from investing activities Investment in fixed assets (68) (331) Investment in intangible assets (378) - Investment in associated companies - 5 Investment in subsidiary (1) 193 - Sale of subsidiary (1) - - Net cash flow from / (used in) investing activities (254) (326) Cash flow from financing activities Net proceeds from share issues - (338) Proceeds from minority interest - - Net cash flow from / (used in) finaning activities - (338) Net inc / (dec) in cash and cash equivalents (3 244) (5 722) (1) Cash effects are net of cash received on sale of subsidiary, and cash held by the subsidiary. 16