yume investor overview - november 2013

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  1. 1. Investor Overview November 2013 The Science Behind Influence
  2. 2. FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements. All statements other than statements of historical fact contained in this presentation are forward-looking statements. These statements are only current predictions and are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause our results or our industrys actual results, levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements. These forwardlooking statements are subject to a number of risks, including those described under the heading Risk Factors in our periodic reports filed with the U.S. Securities and Exchange Commission, including our Form 10-Q for the quarter ended September 30, 2013. Moreover, new risks emerge periodically. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Except as required by law, we are under no duty to update or revise any of the forward-looking statements, whether as a results of new information, future events or otherwise, after the date of this presentation. In addition to the U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for or superior to measures of financial performance prepared in accordance with U.S. GAAP. See Appendix for reconciliation between each non-GAAP measure and the most comparable GAAP measure. This presentation contains statistical data that we obtained from industry publications and reports generated by third parties. Although we believe that the publications and reports are reliable, we have not independently verified this statistical data.12013 YuMe. All rights reserved.
  3. 3. Overview22013 YuMe. All rights reserved.
  4. 4. Yesterday 332013 YuMe. All rights reserved. 2013 YuMe. All rights reserved.
  5. 5. Today 42013 YuMe. All rights reserved.
  6. 6. One Screen at PrimetimeMulti-Screen Video All the TimeAnd its Happened Before Newspaper52013 YuMe. All rights reserved.WebYellow Pages & Local AdvertisingSearch
  7. 7. Media StrategyTelevisionDigital VideoReach & FrequencyData & Analytics+62013 YuMe. All rights reserved.
  8. 8. BRAND ADVERTISERSREVENUE $116.7 M449288$68.6 M242$51.9 M36% CAGR 201020111 Global Online Video Advertising Platforms Market, Frost & Sullivan, 2013.72013 YuMe. All rights reserved.50% CAGR 2012201020112012
  9. 9. Massive brand advertising market disruptionProprietary data sciences platformPlatform drives outstanding brand resultsHigh growth with significant operating leverage82013 YuMe. All rights reserved.
  10. 10. VIDEO ADVERTISING2TV$ IN BILLIONS$15.1$193B1$5.3DIGITAL$100B11 Magna Global, estimated 2012 global TV & digital ad spend, June 2013 2 Global Online Video Advertising Platforms Market, Frost & Sullivan, 2013.92013 YuMe. All rights reserved.20122016
  11. 11. 2 BillionShare of Time Spent1 80%TVSmartphones3DIGITAL70%60%332 Million50%Tablets Shipped440%30%500 Million20%Connected TVs510%0%1995 1 MagnaGlobal, 2012 2 Includes Internet & mobile devices102013 YuMe. All rights reserved.2003 3 Total by 2015, Strategy Analytics 2012 4 Shipped in 2015, IDC 20132012 5 Total by 2015, DisplaySearch, 2011
  12. 12. ContentScreen Devices per personTV 1-5Cable 5-500Internet >10,000 2000Data112013 YuMe. All rights reserved.2012Technology
  13. 13. BRAND CHALLENGES Data Which screen should I target?122013 YuMe. All rights reserved.On which placements should my ads run?How do I find people receptive to my message?
  14. 14. SOLUTION LEARN PlacementEMBEDDELIVERLEARN Audience132013 YuMe. All rights reserved.
  15. 15. SoftwareWeb PLACEMENTConnected TV200 Billion1,500Data PointsProperties TabletSURVEYSmartphone142013 YuMe. All rights reserved.
  16. 16. PQI AlgorithmReal-Time Inventory Grading BESTPLACEMENT DATABETTER257 Million Global Unique Viewers11 May 2013152013 YuMe. All rights reserved.f (x, y, z)GOOD
  17. 17. Data SciencesBrand SegmentsMachine Learning Algorithm162013 YuMe. All rights reserved.
  18. 18. AUDIENCE AMPLIFIERPQI InventoryBrand Segments172013 YuMe. All rights reserved.
  19. 19. Reach More Efficient Brand Spend TelevisionSpend 182013 YuMe. All rights reserved.
  20. 20. 16% TV Budget Shift to YuMe Reaching Adults 35-54 15.9 Million YuMeReach and Frequency ResultsExclusive Online Reach6MTotal ReachCross Platform Reach192013 YuMe. All rights reserved.+23%Average Frequency42.7 Million TV+14%+18%
  21. 21. Brand Awareness172.5%Overall CPG Brand Lift1Purchase Intent17x71.2% NormCONSUMER GOODSAUTOMOTIVE1 Data from Nielsen Online Brand Effect (formerly Vizu Ad Catalyst)202013 YuMe. All rights reserved.TELECOM & ELECTRONICSFINANCIALENTERTAINMENT
  22. 22. Expand share of walletGrow customer baseExpand global footprintPursue strategic acquisitions212013 YuMe. All rights reserved.
  23. 23. Ayyappan SankaranTim LaehyCEO and Co-FounderCTO and Co-FounderCFOFrank BarbieriScot McLernonCorporate DevelopmentSalesBryan EverettMichael HudesJayant KadambiBusiness Development222013 YuMe. All rights reserved.Emerging MarketsEd Haslam MarketingPaul Porrini General Counsel
  24. 24. Financial Overview232013 YuMe. All rights reserved.
  25. 25. Large Attractive MarketStrong GrowthOperational LeverageR&D AdvantageProven Business Model242013 YuMe. All rights reserved.Dramatic shift in TV viewing patterns Capturing the shift of ad dollars from TV to digital videoMore advertisers spending more over time 50% revenue CAGR (2010-12)Utilizing inventory quality scoring (PQI) Technology, data & scale provide enhanced resultsStrong & efficient R&D operations India-based technology development centerDemonstrated growth and profitability Blending technology and media
  26. 26. ANNUAL REVENUEQUARTERLY REVENUE$ IN MILLIONS$ IN MILLIONS$116.7 $45.5$34.3$68.6$28.4$26.6$25.2 $26.0$51.9$36.2$20.1$13.6$15.0$11.520102520112013 YuMe. All rights reserved.2012Q1'11Q2'11Q3'11Q4'11Q1'12Q2'12Q3'12Q4'12Q1'13Q2'13Q313
  27. 27. REVENUE PER ADVERTISERREVENUE FROM TOP 20 ADVERTISERS$ IN 000sTOTAL ADVERTISERS$ IN MILLIONS$58.6449$257 $237288$37.2$213242$26.92010262013 YuMe. All rights reserved.20112012201020112012201020112012
  28. 28. ANNUAL GROSS PROFITQUARTERLY GROSS MARGINANNUAL ADJUSTED EBITDA1$ IN MILLIONS$ IN MILLIONS ADJUSTED EBITDA MARGIN %GROSS MARGIN %39.1%37.6%3.1%46.0%(10.8%)10.1%48.4% 47.5%$53.8 45.8% 44.6%45.3% 45.6%$11.842.8% 40.2%$25.8$1.6$20.337.4% 35.8% 34.3%($7.4) 201020112012Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13PQI Rollout1 See Appendix for a reconciliation of adjusted EBITA to net income (loss)272013 YuMe. All rights reserved.20102011 Investment2012 Proved Model
  29. 29. FY 2011FY 2012Target Model 2Gross Profit38%46%46%-48%Sales & Marketing34%27%17%-18%General & Administration15%11%9%-10%Research & Development4%2%5%-6%(11%)10%18%-22%% of Revenue 1Adjusted EBITDA21 GAAP-based, except adjusted EBITDA 2 Target model assumes stock-based compensation and depreciation and amortization expense of 5%-6% of revenue282013 YuMe. All rights reserved.
  30. 30. In Conclusion292013 YuMe. All rights reserved.
  31. 31. Massive disrupted marketDifferentiated data sciences platformHigh growth with significant operating leverage302013 YuMe. All rights reserved.
  32. 32. YUME/NYSE312013 YuMe. All rights reserved.
  33. 33. APPENDIX322013 YuMe. All rights reserved.
  34. 34. (in thousands) Net income (loss)201020112012$ (366)$ (11,089)$ 6,266Interest expense$ 54$ 164$ 117Income tax expense$ 111$ (62)$ 612Depreciation & amortization expense$ 926$ 2,097$ 2,783Stock based comp expense$ 860$ 1,468$ 2,042Total Adjustments$ 1,951$ 3,667$ 5,554Adjusted EBITDA$ 1,585$ (7,422)$ 11,820Plus Adjustments:332013 YuMe. All rights reserved.