Investor Presentation - April 2021 - Tremor International
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Investor Presentation
April 2021
© 2021 Tremor International Ltd. All rights reserved.
Global and Seasoned Management Non-Executive Board
of Directors
Team & Board of Industry Veterans
Chris Stibbs, Chairman
CEO of The Economist Group until
August 2019
Rebekah Brooks, Director
Ofer Druker Sagi Niri Yaniv Carmi Amy Rothstein Anthony Flaccavento CEO of News Corp UK
CEO & Board Member CFO & Board Member COO & Board Member CLO & Head of Corporate Dev. Chief Revenue Officer, Tremor Video
New York, NY Tel Aviv, Israel New York, NY Bellevue, WA New York, NY
Norm Johnston, Director
Global Head of Advertising Strategy
of News Corp
Neil Jones, Senior Director
Steve Sottile Karim Rayes Jackie Orris Tal Mor Kenneth Suh
Chief Revenue Officer, Unruly Chief Product Officer SVP HR Chief Technology Officer Chief Strategy Officer COO & Director of Huntsworth plc
New York, NY Bellevue, WA New York, NY Tel Aviv, Israel New York, NY
Joanna Parnell, Director
100+ Co-Founder of Project50
years of combined ad
tech industry experience
2
Our Mission
To provide an automated marketplace
for advertisers & publishers that
leverages advanced data-driven
technology to deliver impactful brand
stories for audiences across the globe.
3
A Global Leader in All-Screen Video
Advertising Technologies
$184M
2020 NET REVENUE
78%
OF 2020 NET REVENUE IS
VIDEO, INCLUDING CTV
26%
NET REVENUE CAGR
112%
2020 NET REVENUE
(2017-2020) RETENTION
33%
2020 ADJUSTED
89%
OF 2020 NET REVENUE
EBITDA MARGIN IS FROM THE U.S
4
Our Core Strengths & Differentiation
End-to-End Platform Industry Leadership in Poised for Future Growth
Proprietary, leading-edge technology Video and CTV Via continued innovation, global
comprised of our DSP, DMP & SSP Established expertise and expansion and M&A
credibility in video & CTV
Expansive Scale Robust Data Set Management Team
Ensures wide reach among consumer Fully integrated into our platform Industry veterans with
audiences, advertisers & publishers for seamless activation extensive experience
5
Tremor is Well-Positioned to 2021 Ad Spend
Capitalize on Next-Generation
Opportunities
~$748B
TOTAL GLOBAL
Digital Ad Spending Worldwide
US$ in billions
CAGR ~$455B
11%
TOTAL DIGITAL
$700
~$55B
$646 U.S. VIDEO
$586
$524
$455
~$13B
U.S. CTV
2021E 2022E 2023E 2024E 2025E
6 Source: eMarketer, March 2021.
Key Ecosystem Trends Driving Our Growth:
Video
of our net revenue is generated
78% through the video ad format growing
at 31% in the past year
By Formats
U.S. ad spend 2021-2025 CAGR
16%
12% 13%
0%
Linear TV Search Display Video
7 Source: eMarketer, March 2021.
Key Ecosystem Trends Driving Our Growth:
CTV & Mobile
of our net revenue is generated through
74% Mobile & CTV, growing at 34%in the
past year *
By Devices
U.S. ad spend 2021-2025 CAGR
20%
12%
10%
Desktop Mobile Connected TV
Source: eMarketer, March 2021.
8
*Note: Referring to our programmatic activity only
Key Ecosystem Trends Driving Our Growth:
The CTV Opportunity
CTV ad spend is in the early innings with outsized growth
potential, as it follows consumers’ shift in video consumption
U.S. CTV Ad Spending Pay TV vs CTV in the U.S.
US$ in billions % of U.S. households
CAGR
Pay TV CTV
20%
83% 84%
$28 81%
74% 77%
$13 72%
65%
61% 58%
54%
2021E 2025E 2018A 2019A 2020A 2021E 2022E
9 Source: eMarketer, February 2021; eMarketer, March 2021.
Our End-to-End Technology Platform
DEMAND-SIDE SUPPLY-SIDE
DATA MANAGEMENT
A DV E RT I S ER S
PUBLISHERS
TREMOR
DMP
Audiences
SSP
DSP
VIDEO TV SAAS & MANAGED CREATIVE MASSIVE SAAS & MANAGED OMNI- EXCLUSIVE
FOCUS RETARGETING OFFERING STUDIO REACH OFFERING CHANNEL SUPPLY
100 250 500 100
BILLION MILLION TERABYTES MILLION
DAILY AD REQUESTS DAILY AD IMPRESSIONS OF DAILY DATA PROCESSED DAILY UNIQUE SITES / APPS
10DSP: Optimize Advertising Campaigns
& Improve ROI DEMAND-SIDE
Access to wide-reaching and high-quality ad
inventory, audience targeting and advanced
reporting +1,200 BRANDS
Designed to empower advertisers to optimize
their video & CTV campaigns for efficiency & Managed
return on investment (ROI) using AI and and Self-
Machine Learning (ML) for automation Service
DSP +400 AGENCIES
Self-service solution for advertisers and
agencies gives them more control over
planning and executing their campaigns
Managed-service optionality enables
advertisers to benefit from the experience VIDEO SAAS & MANAGED TV CREATIVE
and guidance of our team of experts FOCUS OFFERING RETARGETING STUDIO
11DMP: Real-Time, Intelligent Decision-
Making Through Data-Driven Insights DATA
MANAGEMENT
Fully integrated and flexible solution sitting at the
center of the platform EMOTION-BASED
INSIGHTS (EQ)
Provides real-time, device-agnostic, and data-driven
marketing to maximize campaign performance & impact AD VERIFICATION
Leverages first- and third-party data to identify and TREMOR
reach curated audiences DMP GEO/LOCATION-BASED
TARGETING
AUTOMATIC CONTENT
RECOGNITION (ACR)
AUDIENCE ATTRIBUTES
& BEHAVIORS
CONTEXTUALIZED
TARGETING
12SSP: Optimize Inventory Management
& Revenue Yield SUPPLY SIDE
~1,450 Publishers
Self-service solution for digital
publishers to sell their online ad DSP
WEB PUBLISHERS
placements and maximize advertiser
revenue via a real-time bidding auction SELF-
SERVICE
across all screens
DSP MOBILE PUBLISHERS
Access to significant amounts of data,
unique demand (Tremor DSP) and
private marketplaces (PMPs)
SSP
PMP
CTV PUBLISHERS
Direct relationships with publishers &
platforms facilitates supply path
optimization process for all parties
OMP
Model-driven KPI & yield automation SAAS & MANAGED MASSIVE EXCLUSIVE
increases publishers’ inventory value OFFERING REACH SUPPLY
while delivering higher performance for
advertisers
13Our End-to-End Platform: Significant Benefits for Both
Advertisers & Publishers
ADVERTISERS TREMOR PUBLISHERS
DSP
DMP SSP Audiences
Benefits for Advertisers Benefits for Publishers
✓ Optimized audience reach & engagement ✓ Premium, high-value campaigns from a wide range of advertisers
✓ Robust data assets ✓ First- and third-party data maximizes revenue generation
✓ Omni-channel scale to optimize campaign impact ✓ Flexibility via wide breadth of ad formats
✓ Creative capabilities ✓ UnrulyX CTRL, a proprietary insights & reporting dashboard,
facilitates Direct, Preferred, and Open Auction programmatic deals
14Our Clients: Top-Tier Global Brands & Agencies Across
the Spectrum of Key Verticals
Launched and maintained by Unruly, the U7 Council represents influential decision-makers from the
world’s biggest brands & media agencies, who actively partner with us to shape the future of the industry.
15Significant Premium Global Media Reach
CTV
Partners
Ads on Global
Sites that
Consumers Trust
Exclusive Access
to 50+ World
Renowned
Publications
16Powerful Strategic Drivers Are Generating Growth
Growth Drivers ORGANIC Tech Innovation ORGANIC
• CTV • Heavy investment in customized
data segments.
• PMP and
• Self-Service Demand and Supply
• Self-Service
platforms
• CTV marketplace
Global Presence ORGANIC M&A
• Major international markets • Evaluate selected opportunities,
mainly focused on adding demand.
• Global advertisers
• Focused on Data tech, assets and
partnerships
17Financial Summary 18
Key 2020 Financial Highlights
Scaled Global
Business
$184M 26%
Net Revenue Net Revenue CAGR (‘17-’20)
Strong Growth
Opportunity 164% 31%
(CTV and Video) CTV CAGR Video CAGR
Revenue Visibility
and Predictability 112% Net Revenue Retention Rate
Efficient
Operating Model
$61M 33% 97%
Adj. EBITDA Adj. EBITDA Margin FCF Conversion
19 Note: FCF Conversion = (Adjusted EBITDA – CAPEX) / Adjusted EBITDAStrong and Solid Performance Over Time
Performance Driven by Strong Adoption of Next Generation Media and Programmatic Solutions
REVENUE YOY REVENUE YOY REVENUE
Long-Term CAGR H2 Comparison GROWTH Q1 Comparison GROWTH
Performance
US$ in millions
26% (‘19 vs ‘20)
US$ in millions
37% (‘20 vs ‘21)
US$ in millions
71-87%
$184
$164
$131 $124
$91 $55-60
$91
$60 $61 $59
$32 $25-28
$44 $39
$34
$1
2017 2018 2019 2020 H2 2019 H2 2020 Q1 2020 Q1 2021
Net Revenue Adjusted EBITDA
Note: In Q1’20 we concluded the acquisition of Unruly. Unruly is being recognize as part of the exchange activity.
20 Note: Revenue calculated on a net basis by excluding the media cost for both Programmatic and Performance activities.Adoption of Next-Generation Media Has Driven Robust
Increase in Platform Utilization
Video CTV
Platform Intentionally Built as an End-to-End First Movers in the Digital Video
Video Campaign Delivery Solution Advertising and CTV Markets
Q4 YOY Q4 YOY
US$ in millions GROWTH US$ in millions GROWTH
69% 116%
$61
$17
$40
$36
$32 $29 $9
$8
$22 $20 $6 $6
$13 $4
$2
$1
Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20
Note: In Q1’20 we concluded the acquisition of Unruly. Unruly is being recognize as part of the exchange activity.
21 Note: Revenue calculated on a net basis by excluding the media cost for both Programmatic and Performance activities.Industry-Leading
Margin Profile
High scalability business model
that support margin leverage
Gross Margin
(CY2020A)
83%
Highly efficient architecture
creates scalability and flexibility through
operating our own data centers
71%
Economy of scale that enable
advance terms with service providers
Ad Tech Comps
Source: Company materials.
22 Note: Gross Margin presented as a percent of net revenue. Ad Tech Comps refers to median gross margin of CRTO, DSP, MGNI, PUBM, RAMP, TTD.Rapid Customer Growth
with Strong Retention Loyal Customer
Base
(Advertisers)
~900
2018 or
Active earlier 83%
Clients
WITH $184M
Net Revenue
7%
112%
2019
Net Revenue 10%
Retention 2020
23Tremor Investment Highlights
End-to-End Industry Poised for Expansive Robust Management
Platform Leadership in Future Growth Scale Data Set Team
Proprietary, leading-
Video and CTV Via continued Ensures wide reach Fully integrated into Industry veterans
edge technology Established expertise innovation, global among consumer our platform for with extensive
comprised of our and credibility in expansion and M&A audiences, seamless activation experience
DSP, DMP & SSP video & CTV advertisers &
publishers
24Appendix 25
Reconciliation to the IFRS Measures
Net Revenue Adjusted EBITDA
2017FY 2018FY 2019FY 2020 FY (2) 2017FY 2018FY 2019FY 2020 FY
Profit for the year $13,759 $22,154 $6,224 $2,139
Revenues (as reported) $210,900 $276,872 $325,760 $211,920
Add back (deduct):
(1)
Media cost -$119,762 -$145,441 -$161,722 -$27,638 Taxes on income (benefit) $3,561 $5,015 -$2,636 -$9,581
Financial expenses (Income), net $307 -$473 $315 $1,417
Net Revenue $91,138 $131,431 $164,038 $184,282
Operating income (loss) $17,627 $26,696 $3,903 -$6,025
Add back (deduct):
Depreciation and Amortization $13,499 $10,808 $32,359 $45,187
Stock-based compensation $884 $8,037 $15,809 $14,490
Other expenses (Income) $2,205 -$1,598 $0 $1,700
Restructuring $0 $0 $5,500 $4,637
Acquisition related costs $0 $192 $2,840 $524
Adjusted EBITDA $34,215 $44,135 $60,411 $60,513
(1) Represents both (i) the costs of acquiring publishers’ advertising space that is purchased by advertisers via our programmatic end-to-end solution and (ii) the traffic acquisition costs which consist of purchases of impressions from publishers
on a cost per thousand impression basis in our performance activities
(2) Effective from 1 January 2020, Tremor now recognizes revenue on a net basis for the Programmatic activity, which had been recognized on a gross basis historically, including for 2019. Performance revenue will continue to be recognized on
a gross basis for 2019 and 2020. The media cost reflected in 2020 reflects only Performance activity. More details can be found in our financial statement and RNS
26Disclaimer
This presentation and the accompanying oral presentation contain forward-looking statements. These statements may relate to, but are not limited to, expectations of future operating results or financial performance, market size and growth
opportunities, the calculation of certain of our key financial and operating metrics, capital expenditures, plans for future operations, competitive position, technological capabilities, and strategic relationships, as well as assumptions relating to the
foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,”
“could,” “expect,” “plan,” anticipate,” “believe,” “estimate,” “predict,” “intend,” “potential,” “would,” “continue,” “ongoing” or the negative of these terms or other comparable terminology. You should not put undue reliance on any forward-looking
statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all.
Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith beliefs and assumptions as of that time with respect to future events and are subject to risks and
uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. In light of these risks and uncertainties, the forward-looking events and circumstances
discussed in this presentation may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. These risks and uncertainties include our dependence on the overall demand for
advertising and the channels we rely on; our existing customers’ expanding their use of our platform; our ability to maintain and expand access to valuable ad impressions; our ability to maintain and expand access to spend from buyers,
including a limited number of DSPs, agencies, and advertisers; and any rejection of digital advertising by consumers, through opt-in, opt-out or ad-blocking technologies or other means. Moreover, we operate in a competitive and rapidly
changing market, and new risks may emerge from time to time. Except as required by law, Tremor International Ltd. (the “Company” or “Tremor”) does not undertake any obligation to publicly update or revise any forward-looking statement,
whether as a result of new information, future developments or otherwise.
In addition to financial information presented in accordance with the International Financial Reporting Standards (“IFRS”), this presentation includes certain non-IFRS financial measures, including adjusted EBITDA and adjusted EBITDA margin.
These non-IFRS measures are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with IFRS. These non-IFRS measures have limitations as
analytical tools. For example, other companies may calculate non-IFRS metrics differently or may use other metrics to evaluate their performance, all of which could reduce the usefulness of our non-IFRS financial metrics as tools for
comparison. They should not be considered in isolation or as a substitute for analysis of other IFRS financial measures. A reconciliation of these measures to the most directly comparable IFRS measures is included in the Appendix to this
presentation.
This presentation contains statistical data, estimates and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on our internal sources. This information involves
many assumptions and limitations, and you are cautioned not to give undue weight to these estimates. We have not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly
available information. Accordingly, we make no representations as to the accuracy or completeness of that data nor do we undertake to update such data after the date of this presentation.
The Company is not making an offer to sell or the solicitation of an offer to buy, or otherwise seeking to gauge interest in, its securities, nor shall there be any sale of its securities in any state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the platform and products of Tremor.
.
27You can also read
