2018 H1 revenues - actusnews.com...Jul 19, 2018 · Business angels & VCs Free float Founders and...
Transcript of 2018 H1 revenues - actusnews.com...Jul 19, 2018 · Business angels & VCs Free float Founders and...
2018 H1 revenuesJuly 19, 2018
2ATEME © 1991-2018
Disclaimer
This presentation does not constitute or form part of and should not be construed as any offer for sale of or solicitation of any offerto buy any securities of ATEME, nor should it, or any part of it, form the basis of or be relied on in connection with any contract orcommitment whatsoever concerning ATEME’s assets, activities or shares.
All statements other than historical facts included in this presentation, including without limitations, those regarding ATEME’sposition, business strategy, plans and objectives are forward-looking statements.
The forward-looking statements included herein are for illustrative purposes only and are based on management’s current views andassumptions. Such forward-looking statements involve known and unknown risks. For illustrative purposes only, such risks includebut are not limited to impact of external events on customers and suppliers; the effects of competing technologies competitiongenerally in main markets; profitability of the expansion strategy; litigation; ability to establish and maintain strategic relationshipsin major businesses; and the effect of future acquisitions and investments.
ATEME expressly disclaims any obligation or undertaking to update or revise any projections, forecasts or estimates contained in thispresentation to reflect any change in events, conditions, assumptions or circumstances on which any such statements are based,unless so required by applicable law. These materials are supplied to you solely for your information and may not be copied ordistributed to any other person (whether in or outside your organization) or published, in whole or in part, for any purpose.
3ATEME © 1991-2018
Presenters
Michel ArtièresFounder & Chief Executive Officer
Degree in Engineering from Supelec, Paris, with a specialization in signal processing and telecommunications
R&D in Image Processing and Compression for the French Ministry of Defense
Fabrice Sana Chief Financial Officer
Degrees from the European Business School and ESSEC
Management Control Director for KaravelFinance Controller for AlstomManager at Arthur Andersen / BearingPoint
4ATEME © 1991-2018
1.ATEME2. Market Trends
3. H1 2018 Revenues
4. Strategy
5ATEME © 1991-2018
ATEME Factsheet
22 Patents
220 people in 18 countries
700 clients in 100 countries
Public since 2014
48.6 M€ in 2017 (+30%)
ATEME designs software video compression solutions to enable innovative live or on demand video delivery
services while preserving picture quality.
Strategic partnerships
6ATEME © 1991-2018
A Complete Offer for Video Flow
Service Provider(Satellite, Cable, Telco)
Video Headend
Event
ContributionPrimary
DistributionDistribution
OTT / Multiscreen
Subscriber
CDNContent Provider
TV Network
Kyrion encoders in the trucks and decoders at the TV station
TITAN is a virtualized Video Headend software covering all Live and File needs
7ATEME © 1991-2018
1. ATEME
2.Market Trends3. H1 2018 Revenues
4. Strategy
8ATEME © 1991-2018
Growing Demand For UHD TV
Western Europe UHD TV household forecast UHD TV
+32%by 2020
9ATEME © 1991-2018
HEVC Patent Pools Reacting to AV1 Release
10ATEME © 1991-2018
Sept 2015
$300-500M (5-7x)
acquires
Sept 2015
$125M (4x)
acquires
Dec 2015
€69M (1x)
acquires
Consolidation Clearing the Way for ATEME
Essentially down from 7 to 4 Players
• US service providers running away from their competitor (Amazon Prime Video)
• Envivio partners are Ericsson competitors
• Redundant employees (Sales worldwide)
• Products end of life confusing clients
• Redundant employees (Rennes R&D)
Ideal
Scenario
for ATEME
Jan 2018
acquires 51% of
11ATEME © 1991-2018
1. ATEME
2. Market Trends
3.H1 2018 Revenues4. Strategy
12ATEME © 1991-2018
7 436 10 646 9 563
7 544
10 291 13 860
10 632
11 108
11 846
16 554
2011 2012 2013 2014 2015 2016 2017 2018
Q1 Q2 Q3 Q4
Revenues Evolution by Quarter
€37.5m
€28.6m
€12.3m
€17.9m€20.6m
€24.8m
IPO
€48.6m
+18%at constant
exchange rate
+12%in H1 2018
H1 2018 : €24.8m
13ATEME © 1991-2018
H1 2018 Revenue Split by Region
38% of H1 2018
revenue
12%of H1 2018
revenue
EMEA
USA/Canada
Latin America
APAC
13%of H1 2018
revenue
37%of H1 2018
revenue
14ATEME © 1991-2018
8 136
7 863
8 780
H1 2016 H1 2017 H1 2018
EMEA
• The strengthening of our presence in selected key countries is delivering results • The ramp-up of TITAN software deployment with leading European service providers is set to drive
growth over the coming quarters
+12%
In €
K
15ATEME © 1991-2018
4 148
6 068
8 696
H1 2016 H1 2017 H1 2018
USA & Canada
Ongoing robust demand in the region should continue to underpin growth
+43%
In €
K
+56%at constant
exchange rate
16ATEME © 1991-2018
1 466
3 6223 089
H1 2016 H1 2017 H1 2018
LATAM
-15%
High base effect (+147% growth in H1 2017 vs H1 2016)
In €
K
-5%at constant
exchange rate
17ATEME © 1991-2018
1 230
3 3842 859
H1 2016 H1 2017 H1 2018
APAC
-16%
In €
K
High base effect (+175% growth in H1 2017 vs H1 2016)
-7%at constant
exchange rate
18ATEME © 1991-2018
IPO July 2014
20162015
2014
Successful Strategy Since the IPO2017
50 hires in 12 months (R&D in France, Support engineers and Sales in all 4 regions)
€12.3m
€-2.5m
€15.0m
€-1.6m
€16.3m
€0.0m
€22.5m
€12.9m
€-1.1m
€11.9m
€-0.9m
Phase 2:Design of TITAN 4 and reorganization of international offices
Phase 3: Commercial launch
165
135
170
€3.6m
Revenues
Net Loss/Profit
Growth acceleration in H2 2016: a 2 years ROI since the IPO
€20.9m
220
€0.3m
Phase 1: 30 hires in 6 months (opened Rennes R&D office)
€27.7m
€3.5m
2018
€23.4m
19ATEME © 1991-2018
1. ATEME
2. Market Trends
3. H1 2018 Revenues
4.Strategy
20ATEME © 1991-2018
New Video Delivery Schemes Enabling Major TAM Increase
$250mPrimary
Distribution
$100mContribution
$300mOTT / Multiscreen
$350mDistribution
Sources : Frost & Sullivan (2014), Company
Video Delivery Infrastructure
WIN THE VIDEO HEADEND EXPAND TO VIDEO NETWORKING
• TITAN Video Head End software components can be reused in the Network to enable new video delivery schemes
• Limited R&D investment (reusing TITAN components)
• No go to market investment (same clients)
Traditional Video Compression Market = $1B Network Infrastructure Market = $25B
21ATEME © 1991-2018
New Video Delivery Schemes
Traditional distribution schemeA centralized Video Headend provides 1000 contents X 10 formats to the whole network
Video Headend
Adding video processing capabilities closer to the subscribers enables multiple benefits for the Service Provider:• Incremental revenues with targeted add
insertion at the Metro Network• Network CAPEX savings: TITAN’s JITT
(Just In time Transcoding) consists in sending into the network only 1 format per content. TITAN then generates specific formats upon request and available bandwidth, leading to 75% last mile bandwidth savings (1 format vs 10)
LAST MILE
ACCESS NETWORK
WIDE AREA AND METRO NETWORK
BACKBONE OR CORE NETWORK
22ATEME © 1991-2018
20202018Win the Video
Head End market and prepareexpanding to Network
Gross Margin expected up(shift to software)
Increasing operating profit every year
Toplineexpected to grow min 20%per year, with contribution from all 4 regions
3 Year Plan
S&M investments to
keep developing our
international coverage, but will
not grow as fast as the topline
R&D investments to
develop innovative
Network solutions, but will
not grow as fast as the topline
23ATEME © 1991-2018
Investor Relations
Next investor dates
Market data
ISIN: FR0011992700 - Ticker: ATEME
Stock price: €17.24 (as of July 17, 2018)
Market cap: €179.2 m (as of July 17, 2018)
Shareholder structureNumber of shares: 10,394,217Potential dilution : up to 224,066 shares
9,6%
73,5%
16,9%
Business angels& VCs
Free float
Founders and management
Liquidity contract: Gilbert Dupont
Source : company, as of June 30, 2018
Sept. 27, 2018 2018 Half-Year Results
Nov. 8, 2018 2018 Third Quarter Revenues0
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