Full year results 2019 Fyber N.V. 30 April 2020
1 2 3 4 Agenda Highlights & Products & Global growth Financials & news differentiators market outlook 2
1 Highlights & news
We build technology that empowers app developers to grow their business through quality advertising 4
Highlights 2019 Product & business ▪ 22% growth in programmatic business YoY in 2019; programmatic is 66% of overall revenue ▪ Successful ongoing roll- out of Fyber’s proprietary monetization technology Fyber FairBid ▪ 2019 was the first year relying solely on the core business – full ad space supply is in-app and comes exclusively from direct integrations with app developers Financials ▪ Adjusted EBITDA improved by +62%; Positive adjusted EBITDA in Q4 2019 ▪ Operational cost base reduced by 20% YoY in 2019 ▪ Completed debt restructuring and returned to positive equity position 5
Recent news 2020 Preliminary Q1 2020 financials ▪ 36% growth of programmatic business in Q1 2020 ▪ Overall revenue +12% growth to €31 million; adjusted EBITDA of € -1 million Initial effects from COVID-19 on Fyber ▪ Fyber’s mix of advertising sources shifted: ▪ Stable development of performance advertising ▪ Decrease in brand advertising spend ▪ Decline in revenue margin due to mix effects ▪ Initiated cost saving initiatives to maintain goal of positive adj. EBITDA for the full year 2020 6
Preliminary Results Q1 2020 Programmatic core business continues to grow; Improved adj. EBITDA ▪ Continued growth in the Q1 programmatic business 2020* 2019 YoY Change In € million ▪ 12% growth in total revenue translated into 23% improvement in Programmatic business 19.7 14.5 36% adjusted EBITDA Non-programmatic business 11.0 13.0 -15% ▪ Overcame short-term revenue Total revenue 30.7 27.5 12% decline in offer wall business during 2019 – expecting to return to growth Adj. EBITDA (1.0) (1.3) 23% for the full year 2020 7 *Note: Preliminary non-audited figures
Mixed impact of COVID-19 on ad tech and app ecosystem Opportunities Immediate impact Mid-term risk ▪ ▪ ▪ Mobile device engagement Brand advertising decreases As more people are affected increases as more people as marketing budget are by economical challenges are required to stay at home affected by cost cuts and ad due to a general economic campaigns are being paused downturn, user spend on in- ▪ Significant growth in activity app purchases may decline; ▪ Activity and marketing spend for gaming apps potentially translating into within certain app verticals reduced marketing spend on such as travel, ride sharing, ▪ Spend on user acquisition user acquisition dating decline ads (performance advertising is stable or ▪ Increased seasonality in ▪ While ad tech companies growing, as app developers advertising spend during and and app publishers are well seek to grow their following following the crisis suited for remote work, and user base product development and ▪ Increased collection business conversation are ▪ Other growing app challenges as typical generally slower and less segments include fitness, payment cycles may expand effective delivery, streaming, e-learning 8
2 Products & differentiators
Fyber’s comprehensive solution State-of-the-art publisher-facing app monetization Publisher Buyer 10
Fyber FairBid The evolution of app monetization Previously Now up Mediation In-app header bidding Why Fyber? Pro: get access to a large ■ Enables publishers to offer every Proven expertise in mediation ■ ■ amount of ad partners with one ad opportunity to all demand and real-time bidding integration partners in real-time Extensive network of over 180 ■ Con: ad partners bidding one at All demand partners, regardless ■ ■ programmatic demand partners a time based on predefined of their technical integration, ranking participate in every auction Advanced analytics tools, ■ granular data & intuitive Con : potential revenue loss for Highest bid wins = true yield ■ ■ dashboard publishers & ad spot loss for optimization for publishers advertisers Partnerships in place with Maximize competition = ■ ■ Con: increased manual effort market leading ad networks & ■ Maximize revenue by publishers to establish the strong pipeline In web, header bidding created ranking ■ an uplift of 20%-50% in publisher Con: limited number of ■ revenue advertisers that publishers can enable 11
Top brand DSPs Global programmatic marketplace Fyber Marketplace Open auction Fyber APP Direct Private marketplace Healthy demand mix ■ Audience & data tools creating a superior user experience Clean, direct traffic (SDK ■ integration) Over 180 directly ■ integrated buyers and Top performance DSPs advertising partners Top 3 banner demand source, Top 4 performer in Top 7 interstitial demand AdLibertas ranking source in AppoDeal ranking Source: Ad Libertas, Top Network Performance 2019, 12 Appodeal Performance Index, H1 2018 Edition
Boosts revenue, retention, and re- engagement Non-intrusive opt-in ad format, ■ popular among gaming publishers Enables users to explore more ■ free content within the app, driving 13 engagement and retention 13
▪ Technology & innovation: first-to- Differentiation market true app bidding with Fyber FairBid through technology & ▪ One-stop-shop for publisher, Seconds covering all aspects of in-app service advertising ▪ Expert guidance for publishers by our monetization experts ▪ Deliberate focus on publisher-side of value chain ▪ Direct technical publisher integrations Seconds ▪ Diversified revenue base by geography and product 14
Our growth strategy is based on technology & innovation New publishers Existing publishers Onboarded 100+ high-profile publishers in 2019 | Strong Sustainable, loyal client network based on client pipeline for 2020 SDK integrations with a consistent retention rate of 85%+ Our programmatic Innovations in areas of Existing products New products business grew 22% in fastest market growth laying 2019 YoY foundations for long-term 15 15 15 value creation
3 Global growth market 16
The Opportunity | Fyber is wholly focused on in-app, the fastest growing segment in digital advertising In-App is dominating US US digital ad spend in $bn mobile advertising spend 14 13 21 2019 11 22 23 9 22 7 In-app 23 83% ($82bn) 167 153 138 120 99 Mobile Web 17% 2019 2020 2021 2022 2023 ($17bn) Mobile Desktop Connected TV Source: eMarketer, October 2019, US market 17
In-app dominates digital in terms of ad spend & user time Users spend 3.2 billion >3hrs/day active smartphone users on mobile (more than on 200 billion app TV) downloads worldwide $120 billion 80% global user spend on apps $190 billion of that within apps global mobile ad spend Source: eMarketer 18 2018, 2019 / App Annie 2020, data for 2019
Gaming not just for kids The gaming audience spans all ages, is highly engaged, and is more likely to make purchases. 19
4 Financials & outlook
Fyber’s programmatic business is on a positive momentum despite challenging business environment Programmatic business revenue Total revenue 79 +22% -7% 128.5 119.0 65 25 38.6 22 36.3 20.3 31.1 18.6 29.3 29.5 16.9 28.6 27.5 26.6 15.2 14.5 12.4 Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year 2018 2019 2018 2019 Total operating cost Adj. EBITDA 0.6 0.6 53.3 -0.3 -1.3 -1.7 -1.9 -2 -19% +62% 43 -2.7 -4 14.2 13 13.2 -7.2 12.9 11.2 10.8 10.9 10.1 Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year 21 2018 2019 2018 2019
Key Financials 2019 Revenue fully based on in-app and core business 20% reduction in operational cost enabled adj. EBITDA improvement ▪ FY’2019: -7% in revenue; slight decline due to Full year Q4 external market effects in the offer wall YoY YoY In € million 2019 2018 2019 2018 change change segment; revenue fully based on core business Revenue 119.0 128.5 -7% 36.3 38.6 -6% ▪ Q4’19: -6% in revenue due to the decline in the non-programmatic business. The Cost of sales (99.5) (105.6) 6% (30.6) (30.0) 1% programmatic business grow by 14% Gross profit 19.5 23.0 -15% 5.6 8.6 -15% ▪ FY’2019 : Cost of sales includes revenue share to 3 rd parties and other components, 6% IT cost* (9.7) (11.2) 13% (2.5) (2.5) - decrease YoY, resulting in 16% gross profit R&D cost* (11.6) (13.5) 14% (2.8) (3.6) 22% margin S&M cost* (15.0) (19.6) 23% (3.5) (4.8) 27% Q4’19: 85% of revenue G&A cost* (6.8) (9.0) 24% (2.1) (1.9) 7% ▪ FY’2019: Operational cost base reduced by 20% YoY, based on completed integration of Total operating (43.0) (53.3) 19% (10.9) (12.9) 16% cost* former group companies Q4’19: Operational cost base reduced by 18% EBITDA* (2.7) (7.2) 63% 0.6 0.6 - YoY EBITDA margin* -2.3% -5.6% 3.3pp 1.6% 1.7% 0.1pp ▪ FY’2019: 62% improvement in adj. EBITDA Q4’19: Positive adj. EBITDA of €0.6 million *Note: Adjusted, non-IFRS figures excluding one-off impacts such as impairment of goodwill, acquisition related 22 costs and option plans.
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