Adslot Ltd · ASX:ADS
Adslot — Corporate Update (March 2023)
37 slides from Adslot's corporate update, Mar 31, 2023
Slide 1: Progress Update
PROGRESS UPDATE. Adslot Limited (ASX: ADS) March 2023
Slide 2: Contents
CONTENTS. 1. Background to the business 2. Point of departure 3. Path to profitability 4. Next steps
Slide 3: Background
BACKGROUND.
Slide 4: Background to Adslot
4 BACKGROUND TO ADSLOT. Adslot (ASX: ADS) provides workflow (Symphony) and media trading automation (Adslot Media) to media buyers and sellers driving efficiency, transparency and better outcomes. ▪ Founded in 2010, headquartered in Melbourne, Australia, with ~60 FTEs in product and development and ~80
Slide 5: Adslot Media: Simplifying Direct Trading
5 ADSLOT MEDIA: SIMPLIFYING DIRECT TRADING. Legacy Buying/Selling Process is Manual, Slow and Expensive Adslot Media has Created an Organized Market ▪ Single, curated environment in which a diverse range of inventory is ▪ Highly iterative workflow involving 42 different steps categorized for buyers ▪
Slide 6: Adslot Media: Simplifying Direct Trading
ADSLOT MEDIA: SIMPLIFYING DIRECT TRADING. Adslot Media does not run through a Demand Side Platform but allows direct collaboration with agency clients One simple interface to… SCALE cross-publisher direct buying ACCESS guaranteed, premium inventory OVERLAY 1st and 3rd party data •Buyer-seller direct
Slide 7: Adslot Media: Removing the Ad Tech Tax
7 ADSLOT MEDIA: REMOVING THE AD TECH TAX. Adslot Media’s automated guaranteed solution can save 45% of the costs for advertisers and can generate 38% more revenue for publishers. Source: WARC “Global Ad Trends” March 2018, ISBA “Programmatic Supply Chain Transparency Study” May 2020, McKinsey “Truth
Slide 8: Adslot Media: A Large Addressable Market
8 ADSLOT MEDIA: A LARGE ADDRESSABLE MARKET. Automated Guaranteed is a Multi-Billion Dollar Addressable Market… … Supported Not Only By Continued Global Digital Ad Spending Growth… ▪ Adslot Media’s automated guaranteed solution USD $181bn Global Digital Ad Spending Worldwide, 2021-2026 (USD $bns) tak
Slide 9: Industry Trends Are in Our Favour
9 INDUSTRY TRENDS ARE IN OUR FAVOUR. Flight to Quality: Premium Direct Poised to Ascend in the “Cookieless” Advertisers Value Transparency, Safety and Access to Premium Inventory World “Caught between resignation and resistance, ad industry grapples with High-volume, low Direct deal-based value inve
Slide 10: Symphony: Streamlining Workflow for Agencies
10 SYMPHONY: STREAMLINING WORKFLOW FOR AGENCIES. Data transfer via API Data Push and Master Data Control Pull via API RFP Agency’s Automated Insertion Media Billing Trafficking Reporting Guaranteed Orders Schedule Result of this process: Trading clean investment and Desk performance data assets genera
Slide 11: Contracts with the Industry's Biggest Players
CONTRACTS WITH THE INDUSTRY’S BIGGEST PLAYERS. Significant time and resources have been invested in securing MSAs with the largest global media buying agencies, as well as establishing numerous partnerships with top premium publishers around the world Publisher Partners Agency Relationships Note: Sel
Slide 12: H1 FY23 Saw Continued Financial Improvement
H1 FY23 SAW CONTINUED FINANCIAL IMPROVEMENT. Millions TRADING GROUP REVENUE FROM LICENSE FEE TRADING FEE TECHNOLOGY REVENUE CONTINUING OPERATIONS REVENUE REVENUE REVENUE $4.776M $4.633M $3.919M $3.242M $0.677M VS PCP +2% +6% +9% +12% -3% For the current period, Group Revenue includes Revenue from Co
Slide 13: H1 FY23: Improved Adjusted EBITDA and Adjusted NPAT
H1 FY23: IMPROVED ADJUSTED EBITDA AND ADJUSTED NPAT. Millions EBITDA LOSS IMPAIRMENT ADJUSTED EBITDA LOSS NPAT LOSS ADJUSTED NPAT LOSS ($6.165M) ($5.162M) ($1.003M) ($8.039M) ($2.877M) VS PCP -3% -3% Adjusted EBITDA (loss) and adjusted NPAT (loss): excluding the following; ● Reversal of $1.5M one-of
Slide 14: An Experienced Leadership Team
14 AN EXPERIENCED LEADERSHIP TEAM. • 25+ years of experience as a technology entrepreneur; co-founder of Hitwise (sold to Experian Group in 2007); founder and CEO of Max Super, an Andrew Barlow online retail superannuation fund sold to Orchard Funds Management in 2007; founded Adslot in 2007 Founder
Slide 15: A Committed Share Register
A COMMITTED SHARE REGISTER. The Company retains a committed and tightly held share register comprising directors (and family) and long-standing institutional shareholders. 39.55 % Directors & family Committed Share 22.5% Register Institutional Shareholders 17.05%
Slide 16: Our Point of Departure
OUR POINT OF DEPARTURE.
Slide 17: Our Point of Departure: Technology Validated
OUR POINT OF DEPARTURE. Our technology has been validated by the largest players in the industry. ● Adslot Media used to transact over $181M in media to date ● Over 7,000 individual campaigns transacted ● Over 2,000 active users on our platforms ● More than 50% of Comscore top 50 publishers in the U
Slide 18: Critical Demand Side Relationships in Place
OUR POINT OF DEPARTURE. Critical demand side relationships in place. THE BIG SIX EMERGING Contracted with Adslot
Slide 19: Industry Trends Are Finally Working in Our Favour
OUR POINT OF DEPARTURE. Industry trends are finally working in our favour. ● A flight to quality for both advertisers and agencies ● Agencies looking to simplify their supply chains and remove intermediaries ● Publishers looking to grow yield and protect their premium inventory ● Greater scrutiny of p
Slide 20: Substantial First Mover Advantage
OUR POINT OF DEPARTURE. We retain a substantial first mover advantage in automating direct trading of digital media. ● Over $40m invested in building a world leading solution ● Adslot Media the only purpose-built solution to automate direct trading ● Considerable effort and money has gone in to build
Slide 21: Trading on Adslot Media Is Starting to Take Off
OUR POINT OF DEPARTURE. Trading on Adslot Media is starting to take off DECEMBER QUARTER TTV. RECORD RESULT. $33.14M +5% QoQ +295 PCP
Slide 22: Trading on Adslot Media Is Starting to Take Off
OUR POINT OF DEPARTURE. Trading on Adslot Media is starting to take off DEC QUARTER MONETISED TTV. RECORD RESULT. $13.49M +95% QoQ +61% PCP
Slide 23: Pathway to Profitability
PATHWAY TO PROFITABILITY.
Slide 24: Pathway to Profitability
PATHWAY TO PROFITABILITY. Over the past 5 years, a combination of revenue increases and cost management has seen a continuing decline in cash burn across the business. • Normalised* cash burn reduced from $9.7m to $6.1m between 2017 and 2022. • Cost reductions implemented in July 2022 and took full
Slide 25: Re-focus Enables Further Reduction of Costs
RE-FOCUS ENABLES FURTHER REDUCTION OF COSTS. The business is seeing a continuing shift from a development and sales focus to one of activation and scaling of trading on our platforms. This allows for a further reduction in the ongoing cost bases; • Targeted reduction in sales and development headcou
Slide 26: Pathway to Profitability
PATHWAY TO PROFITABILITY. Following the March ‘23 cost reductions, normalised cash burn will be reduced to approximately $2.0M per annum. *Normalised cash burn excludes publisher collections and payments not related to Adslot fees and aligns R&D grant receipts to the year in the claim was made (not
Slide 27: Quicker Pathway to Break-Even
QUICKER PATHWAY TO BREAK-EVEN. The new cost base of the business will mean an incremental $2.0M in revenue will see the business to cash flow break-even. Whilst this will come from multiple sources, the quickest path is a growth in Adslot Media trading fees. • At an average take rate of 5%, this repr
Slide 28: Revenue Growth Expected from Currently Contracted Sources
REVENUE GROWTH EXPECTED TO COME FROM CURRENTLY CONTRACTED SOURCES.
Slide 29: IPG - Kinesso Health & Wellness: USA
IPG - KINESSO HEALTH & WELLNESS: USA. • Custom built marketplace for large US based agency group IPG; • Client fund substantial development prior to marketplace activation; • Specifically designed to enable trading for the substantial Health & Wellness (incl Pharma) sector in the US ; • Large endemic
Slide 30: IPG - Kinesso Health & Wellness: USA
IPG - KINESSO HEALTH & WELLNESS: USA.
Slide 31: GroupM Marketplace: UK
GROUPM MARKETPLACE: UK. • Custom marketplace for world’s largest buyer of media, GroupM, in their home market of the UK; • Key publisher partners of GroupM in the UK onboarded to marketplace under GroupM commercial terms; • Trading commenced in 2022, in particular for leading advertiser Tesco; • Tra
Slide 32: Operative: Access to Linear/CTV Endpoints
OPERATIVE: ACCESS TO LINEAR/CTV ENDPOINTS. • Leading order management platform for both digital and Linear (i.e., traditional) TV; • Looking to migrate from primarily infrastructure play to incorporate trading • Partnership in place to integrate Adslot Media and later Operative platform, AOS, includ
Slide 33: Adslot - Symphony Integration: Australia
ADSLOT - SYMPHONY INTEGRATION: AUSTRALIA. • Second active market for integrated solution following Austria; • Trading on Symphony - Adslot Media integrated offering continues to grow in Australia; • Majority of large Australian pubs now active under SaaS or percentage fee models; • Outstanding large
Slide 34: ABS-CBN Publisher Marketplace
ABS-CBN PUBLISHER MARKETPLACE. • Largest entertainment and media conglomerate in the Philippines; • Adslot Media platform to automate trading for direct orders from clients; • Includes agencies and over 800 current direct clients; • Percentage fee charged for all trades; • Platform usage has commenc
Slide 35: Ogury (UK): Replication of a Successful Formula
OGURY (UK): REPLICATION OF A SUCCESSFUL FORMULA. • Leading UK based provider of proprietary formats and tools for mobile advertising; • Adslot Media platform provides unique ability to manage custom mobile ad formats within the publisher’s ad server removing complex and costly trafficking ; • Follows
Slide 36: German Market Activation
GERMAN MARKET ACTIVATION. German market research and preparation has + In December 2022 initial trading occurred been underway for 12 months with local partner between agencies of the Interpublic Group (IPG) Polarisfactor and 3 leading German publishers German market is well su Adslot Media Jing occ
Slide 37: Thank you
Thank you. you Questions? Contact us: investorrelations@adslot.com Adslot.com