Verimatrix Sa · EURONEXT:VMX
Verimatrix Sa — ODDO BHF Forum 2021
28 slides from Verimatrix Sa's conference presentation, January 2021
Slide 1: ODDO BHF Forum 2021
ODDO BHF FORUM 2021 January 7-11, 2021 Amedeo D’Angelo, Chairman & CEO Richard Vacher Detournière, GM & CFO Copyright © 2021 Verimatrix. All Rights Reserved. 1
Slide 2: Disclaimer
Disclaimer This document was prepared by Verimatrix and is provided for information purposes only. It is public information only. This presentation includes statements that are, or may be deemed to be, “forward looking statements” and may include projections and estimates and their underlying assump
Slide 3: Verimatrix protects digital content, applications, and devices
Verimatrix protects digital content, “Unambiguous momentum applications, and devices with intuitive, leader in content security.”2 people-centered and frictionless security. 25+ 325+ employees across 12 global offices years of security innovation Pioneer of studio-compliant video software security 1
Slide 4: Verimatrix Safeguards An Unprotected World
Verimatrix Safeguards An Unprotected World Copyright © 2021 Verimatrix Verimatrix. -All AllRights RightsReserved. Reserved 4
Slide 5: Selected Studios and Media Partners
Selected Studios and Media Partners Copyright © 2021 Verimatrix Verimatrix. -All AllRights RightsReserved. Reserved 5
Slide 6: Selected Customers & Partners
Selected Customers & Partners Verimatrix serves over 1,000 customers/partners across 120 countries, including some of the world’s most admired brands. Copyright © 2021 Verimatrix Verimatrix. -All AllRights RightsReserved. Reserved 6
Slide 7: Market Focus
Market Focus MEDIA & VIDEO SERVICE GAMING ENTERTAINMENT PROVIDER & ESPORTS HEALTHCARE MOBILE APP INTERNET SECURITY AUTOMOTIVE FINANCIAL OF THINGS Copyright © 2021 Verimatrix Verimatrix. -All AllRights RightsReserved. Reserved 7
Slide 8: Portfolio: Content Protection
Portfolio: Content Protection Protect and maximize the value of your content everywhere ▪ Protect your valuable content to increase revenue. VCAS Multi-DRM Embedded DRM ▪ Get to market faster. ▪ Design your ideal solution. ▪ Scale easily to new users and services. Content TV Everywhere Watermarking
Slide 9: Portfolio: Application Shielding
Portfolio: Application Shielding Secure your software and transactions across devices ▪ Shield your business from loss and exposure. ▪ Integrate with your current Code Protection Whitebox development practices. ▪ Provide a compelling customer experience. ▪ Deploy intelligent and adaptive protection.
Slide 10: Flexible deployment options
Flexible deployment options We support our customer’s legacy on-prem operations with an easy migration path toward and innovative, cost-effective SaaS model. Verimatrix On-Premise Verimatrix SaaS Verimatrix turnkey installation, with 24/7 From video operators, OTT service providers, to global suppor
Slide 11: Recognition: Verimatrix is the segment's Momentum leader
Recognition “Verimatrix is the content security segment’s unambiguous Momentum leader” 2020 OMDIA Video Content Security Scorecard Copyright © 2021 Verimatrix. All Rights Reserved. 11
Slide 12: Customer Support Excellence
Customer Support Excellence Winner of multiple awards for customer service and technical support 99% CUSTOMER SATISFACTION Copyright © 2021 Verimatrix Verimatrix. -All AllRights RightsReserved. Reserved 12
Slide 13: Winner of over 30 awards
Recognition Winner of over 30 awards for product & technical innovation Copyright © 2021 Verimatrix. All Rights Reserved. 13
Slide 14: Our Digital World is Expanding Rapidly
Our Digital World is Expanding Rapidly More video, more apps, accessed on more connected devices $73B 7M+ 3X GLOBAL OTT MARKET APPS ON CONNECTED DEVICES BY 2023* GOOGLE PLAY & THAN PEOPLE BY 2023 APPLE APP STORE Copyright © 2021 Verimatrix Verimatrix. -All AllRights RightsReserved. Reserved 14
Slide 15: Digital Experiences Have No Boundaries
Digital Experiences Have No Boundaries All of those digital experiences are at risk – security matters more than ever $12.5B 75% 94% EXPERTS PREDICT ELEVATED LOST REVENUE FROM OF APPS VIDEO PIRACY BY 2024* SECURITY THREATS ON ARE UNPROTECTED 5G NETWORKS* Copyright © 2021 Verimatrix Verimatrix. -All
Slide 16: Financials
Security Made for People Financials Copyright © 2021 Verimatrix. All Rights Reserved. 16
Slide 17: Transition towards recurring subscription and SaaS model well on track
Transition towards recurring subscription and SaaS model well on track $70.4 million revenue in first 9-month 2020 Recurring revenues representing 60% of revenue at $42.0 million; up 3% year-over- year1 (lower than H1 YoY growth due to strong license revenue in Q3 2020) Strong growth of subscription
Slide 18: Resilient First-Half 2020 Results
Resilient First-Half 2020 Results $44.2 million revenue in first-half 2020 $7.4 million EBITDA in first-half 2020 (17% of revenue) Core software business EBITDA up 54% year-over-year $46.5m in cash and cash equivalents Solid financial position to face the global pandemic situation Copyright © 2021 V
Slide 19: First-half 2020: Growing EBITDA thanks to tight control on Opex
First-half 2020: Growing EBITDA thanks to tight control on Opex and positive impact of 2019 cost synergy plan (in million US$) H1 2020 H1 2019 Revenue 44,2 50,4 Adjusted gross profit 37,0 40,4 As a % of revenue 83,9% 80,2% Research and development expenses (11,5) (12,8) Selling and marketing expense
Slide 20: H1 2020: Improving IFRS operating income and net income
H1 2020: Improving IFRS operating income and net income (in million US$) H1 2020 H1 2019 (*) Adjusted operating income/(loss) 5,2 9,5 Fair value adjustment on deferred revenue (**) - (1,0) Amortization and depreciation of assets acquired through business (2,5) (2,0) combinations (**) Acquisition rel
Slide 21: H1 2020: Cash flows reflecting operating performance and seasonality
H1 2020: Cash flows reflecting operating performance and seasonality (in million $) H1 2020 H1 2019 Cash generated by / (used in) continuing operations before changes in working capital 6,7 3,4 Cash generated by / (used in) changes in working capital from continuing operations (5,8) (13,7) Cash gene
Slide 22: H1 2020: Strong balance sheet
H1 2020: Strong balance sheet June 30, December 31, June 30, December 31, (in million $) (in million $) 2020 2019 2020 2019 Equity and retained earnings 154,7 156,4 Goodwill and intagible assets 136,0 136,9 Property and equipment 14,1 15,5 Borrowings 55,8 56,6 Other receivables 20,7 18,7 Convertible
Slide 23: Business Outlook & Objectives
Security Made for People Business Outlook & Objectives Copyright © 2021 Verimatrix. All Rights Reserved. 23
Slide 24: Business Outlook and Objectives
Business Outlook and Objectives Focused on executing strategy, and, in particular: Continuously growing recurring revenues and SaaS and subscription-based business in particular Develop the code and application protection solutions business (App. Shielding) Increase cross-selling and up-selling reve
Slide 25: Appendix
Security Made for People Appendix Copyright © 2021 Verimatrix. All Rights Reserved. 25
Slide 26: Basis of preparation
Basis of preparation Inside Secure (renamed Verimatrix following shareholders’ vote on June 24, 2019) completed the acquisition of Verimatrix, Inc., on February 28, 2019. Verimatrix (the “Company”) has prepared its results in accordance with IFRS (which accounted for 4 months of activity of Verimatr
Slide 27: Supplementary non-IFRS financial information (adjusted measures)
Supplementary non-IFRS financial information (adjusted measures) Certain financial measures and performance indicators are presented on an adjusted basis. These indicators are not defined under IFRS; they should be considered to be supplementary information, not substitutable for any other indicator
Slide 28: Investor information
Investor information Investor relations Richard Vacher Detournière GM & CFO finance@verimatrix.com Media Contact Matthew Zintel communication@verimatrix.com Financial Calendar Fiscal year 2020 earnings: March 10, 2021