Slide 1: Q3 2024 Revenues
O C T O B E R 1 7 , 2 0 2 4 Q3 2024 REVENUES VISIOCONFERENCE Confidential & proprietary
Slide 2: Disclaimer
DISCLAIMER This presentation does not constitute or form part of and should not be construed as any offer for sale of or solicitation of any offer to buy any securities of Ateme, nor should it, or any part of it, form the basis of or be relied on in connection with any contract or commitment whatsoe
Slide 3: Presenters
PRESENTERS Michel ARTIÈRES Véronique COULMANN Founder & Chief Executive Officer Chief Financial Officer Degree in Engineering from SUPELEC, PARIS, Degree from Sup de Co (Poitiers) with a specialization in signal processing MBA from Seattle University and telecommunications D.E.S.C.F - Certified Publ
Slide 4: Who we are
Who we are Confidential & proprietary
Slide 5: The Video Delivery Leader
THE VIDEO DELIVERY LEADER Public since 2014 Ateme enables content providers, service providers and streaming platforms to captivate their audiences with a superior Quality of Experience, so they can €100m in 2023 (+10%) boost viewership engagement, acquire new customers, and unleash new monetization
Slide 6: Quickly Evolving Market: From Traditional TV to Streaming
QUICKLY EVOLVING MARKET: FROM TRADITIONAL TV TO STREAMING Streaming platforms SVOD, AVOD, virtual video distributor Digital Experience & E-commerce OTT streaming services to multiscreen CDN, cDVR 5G Broadcast Viewers Pay-TV services Contribution Distribution to set-top box Content provider Service P
Slide 7: Ateme Engaged in Corporate Social Responsibility
ATEME ENGAGED IN CORPORATE “ Make the SOCIAL RESPONSIBILITY entertainment and video experience captivating, greener, and accessible to everyone ” A CSR policy led by the COO in direct contact with the Executive Committee and fully integrated into the company’s overall strategy Already achieved >>>>>
Slide 8: Market Dynamics
Market Dynamics
Slide 9: Structured Around 6 Segments Addressed Through 4 Product Lines
STRUCTURED AROUND 6 SEGMENTS ADRESSED THROUGH 4 PRODUCT LINES CONTRIBUTION HEADEND DELIVERY Ad Broadcast OTT DVR Insertion Delivery Contribution 6 Market Headend Headend Storage segments Multiscreen Media Supply Chain Orchestration / Network Management / Analytics 4 Ateme Linear / VOD Transcoding Ju
Slide 10: Strong Opportunity Benefiting from the Shift Towards OTT Services
STRONG OPPORTUNITY BENEFITING FROM THE SHIFT TOWARDS OTT SERVICES Pay-TV generates more $$ OTT generates more $$ 400 360 300 325 260 220 190 150 100 85 100 125 140 150 160 170 180 60 150 160 160 160 170 160 160 160 160 210 210 200 195 190 190 180 180 180 2020 2021 2022 2023 2024 2025 2026 2027 202
Slide 11: Market Drivers Creating Opportunities for Ateme
MARKET DRIVERS CREATING OPPORTUNITIES FOR ATEME TO DRIVE REVENUE AND PUSH INVESTMENT OF CUSTOMERS TO GAIN COMPETITIVE ADVANTAGE Drivers Impact on business Impact on tech Engaging with younger generation Investing in interactivity, data, Convergence and augmenting revenues consumer experience etc. Mo
Slide 12: Overall Market of USD 2.4B in 2024, Growing at a CAGR of 2.7%
FOR ATEME, OVERALL MARKET OF USD 2.4B IN 2024, GROWING AT A CAGR OF 2.7% +2.7% CAGR 3000 2591 2510 2500 2429 2348 2266 2000 1500 1000 500 0 2022 2023 2024 2025 2026 12 Source: Caretta Research Confidential & proprietary
Slide 13: Strong Dynamics Across All Market Segments
STRONG DYNAMICS ACROSS ALL MARKET SEGMENTS CONTRIBUTION HEADEND DELIVERY Ad Broadcast OTT DVR Insertion Delivery Contribution Headend Headend Storage Convergence - neutral ++ neutral ++ neutral Monetization neutral neutral +++ + +++ + Transformation - - +++ +++ +++ +++ -- - +++ ++ +++ ++ Confidentia
Slide 14: Resulting in Positive Market Dynamics
…RESULTING IN POSITIVE MARKET DYNAMICS Ateme product 2022 2023 2024 2025 2026 CAGR ’22-’26 Kyrion CM5000 Contribution Kyrion DR5000 192 174 155 152 149 -4,9% Titan Edge (Decoder) TITAN Live Broadcast TITAN Mux 313 310 307 305 302 -0.8% Headend Pilot Manager TITAN Edge (Enc) TITAN Live TITAN File OTT
Slide 15: The 7 Pillars of Ateme Business Model
THE 7 PILLARS OF ATEME BUSINESS MODEL UNIQUE TECH OFFER … … DELIVERED WITH EXCELLENCE End-to-End software offer Value-driven validated by key executives sales process Mission critical Solid base of services experts Infrastructure Worldclass partnership Agnostic network Go-to-market tailored to Tier-
Slide 16: Ateme Unique Position with End-to-End Stack
ATEME UNIQUE POSITION WITH END-TO-END STACK Broadcast OTT Contribution DVR Storage Ad Insertion Delivery Headend Headend x x x x x x x x x x x x x x x x x x x x x x x Cloudfront Analytics x x x x x x x x x Confidential & proprietary 16
Slide 17: Q3 Revenues
Q3 Revenues Confidential & proprietary
Slide 18: Activity
9M 2024: ACTIVITY €100.0m €63.2m €90.6m -9% €78.8m 30.5 -8% at constant exchange €70.1m rate & perimeter €66.3m €56.5m 20.5 Q3 2024: +10% €48.6m 22.4 +10% at constant exchange rate & perimeter €37.5m 21.8 Q2 2024: +6% €28.6m +6% at constant exchange 23.0 rate & perimeter 27.3 Q1 2024: -35% 17.7 -35%
Slide 19: 9M 2024 Revenue Split and Growth by Region
9M 2024 REVENUE SPLIT AND GROWTH BY REGION 9M 2024 REVENUE 9M 2024 REVENUE SPLIT BY REGION GROWTH BY REGION APAC €12.6m 20% EMEA USA/CAN -48% EMEA +25% €27.8m -47% +26% 44% (at constant exch. (at constant exch. LATAM rate and perimeter) rate and perimeter) €6.8m 11% LATAM +3% APAC +25% +3% (at const
Slide 20: Continued Growth in MRR Since 2019
CONTINUED GROWTH IN MRR SINCE 2019 ARR: Multi-Year SaaS and MRR, €33.7m investment Maintenance As 1st of month Contracts Subscription in € thousands Q3 2024: +€427 K (+18% year-on-year) 2.805 Three multi-year Monthly Recurring Revenue (MRR) Integration 2.443 2.470 contracts signed of Anevia (3 to 5
Slide 21: Ateme Performance Analysis
Ateme Performance Analysis
Slide 22: Tried and Tested Development Strategy That Enabled to Build TITAN Offer
TRIED AND TESTED DEVELOPMENT STRATEGY THAT ENABLED TO BUILD TITAN OFFER Post IPO, ATEME performed strong R&D efforts … financed by reinvesting excess gross margin to become a software company… into OPEX, while maintaining EBITDA ~ 5M€ ATEME successfully introduced to stock 2015 2016 2017 2018 2019 m
Slide 23: 2020-2024 Strategy of Heavy R&D Investments to Build Solutions
2020-2024 SHOWCASED A STRATEGY OF HEAVY R&D INVESTMENTS TO BUILD SOLUTIONS Post 2020 Anevia acquisition, strong R&D efforts … financed by reinvesting excess gross margin required to integrate and update E2E tech into OPEX, while maintaining EBITDA ~5M€ stack… Anevia delivery product portfolio acquir
Slide 24: Harvesting Phase Expected as of 2025
HARVESTING PHASE EXPECTED AS OF 2025 Product portfolio being largely developed, 2024 is our first year of limited growth due to OPEX are stabilized: major shift vs 10Y CAGR USA/CAN conjonctural headwinds Outside of USA/CAN, all regions growing 20-30% despite reduced OPEX OPEX including customer serv
Slide 25: Ongoing Consolidation in US Media Industry
ONGOING CONSOLIDATION IN US MEDIA INDUSTRY: SOURCE OF WAIT-AND-SEE ATTITUDE Initiator Target Key points Joint takeover bid of $26 billion to acquire Paramount’s film and TV studio businesses Forming joint venture to launch streaming sports service in the U.S. Bid of $85 billion – Disney acquires rig
Slide 26: USA/CAN Expected to Remain Our Main Growth Market
USA/CAN IS EXPECTED TO REMAIN OUR MAIN GROWTH MARKET AS IT HAS BEEN FOR 10Y ATEME revenues in USA/CAN have grown with Several key drivers will support a continuous a 10Y CAGR of 24.8% growth in USA/CAN over next 5 years Largest market size ATEME revenues in USA/CAN [M€] Low penetration of NEA vs TIT
Slide 27: 2024 Results Confirm Leverage of Ateme Business Model
2024 RESULTS CONFIRM LEVERAGE OF ATEME BUSINESS MODEL Three regions are growing at double digit while OPEX are down year on year H1 2024 EMEA APAC LATAM Revenues (M€) 18.2 8.5 4.2 Growth yoy +34% +24% +35% Regional OPEX (M€) 13.4 (vs 14.2 in 2023) 4.2 (vs 5.0 in 2023) 2.7 (vs 3.7 in 2023) OPEX chang
Slide 28: Strategy Will Enable Profitability Leverage Around 3 Pillars
ATEME’S STRATEGY WILL ENABLE PROFITABILITY LEVERAGE AROUND 3 PILLARS Fixed cost Scalable Product mix business go-to-market improvement 72% gross margin on Increase in deal size, in Hardware sales are procurement: all other particular for enterprise reducing as percentage OPEX are headcount license d
Slide 29: Outlook
OUTLOOK Confidential & proprietary
Slide 30: Ateme's Guidance
ATEME’S GUIDANCE c. 130 M€ c. 22 M€ c. 100 M€ c. 100 M€ c. 91 M€ c. 79 M€ c. 6 M€ c. 5 M€ c. 3 M€ c. 3 M€ 2021 2022 2023 2024 2027 Revenue EBITDA Ateme at tipping point after 5 years of investment targeting 22 M€ Ebitda in 2027 Confidential & proprietary 30
Slide 31: EL to Grow at High Rate
EL TO GROW AT HIGH RATE Go-To- Enhanced and Higher Market evolving deal size model product offer Max deal size x2 Increasing adoption of the Nea Composer every other year EL strategy by USA/CAN Nea Genesis Today: multiple Commercial support from Cloud native $10m deals cloud providers versions of al
Slide 32: With Several Untapped Opportunities
WITH SEVERAL UNTAPPED OPPORTUNITIES AR/VR (augmented / virtual AI (Artificial Intelligence) will Ateme OTT technology is reality) is creating new enable more efficient end applicable to Cloud video consumptions to end video delivery Gaming, an adjacent experiences (shortening replacement fast-growin
Slide 33: Well Positioned in the Emerging Immersive Experience Market
ATEME WELL POSITIONED IN THE EMERGING IMMERSIVE EXPERIENCE MARKET Apple announced support for 3D movies on the Apple Vision Pro at WWDC23 with Bob Iger, Disney’s CEO ~200 3D titles available at launch on February 2024 on Apple TV and Disney+ Encoded by Ateme TITAN in MV-HEVC (Mutli View HEVC), not s
Slide 34: Focus AI in Video
FOCUS AI IN VIDEO Ateme AI expertise recognized Ateme won a NATAS TV Emmy award in 2021 for our Artificial Intelligence Optimization for Video Compression, acknowledging ATEME’s Content Adaptive Encoding "Audience Aware Streaming" Next, Ateme will improve AI based content analysis tools, with multip
Slide 35: Focus Gaming
FOCUS GAMING Gaming is yet another opportunity that has not been explored by Ateme Cloud gaming and streaming are using similar technologies (H.264 encoding and low latency) Confidential & proprietary 35
Slide 36: Investor Relations
INVESTOR RELATIONS Shareholder structure Stock price (€) Number of shares : 11,489,444 Potential dilution : 3.83% as of August 2024 Concert Artières NJJ Capital 11% (Xavier Niel) 5% Float 68% Positano 5% Otus Capital 12% Market data Financial Calendar ISIN: FR0011992700 January 30, 2025 2024 FY Reve
Slide 37: Thank You.
THANK YOU. Confidential & proprietary
Slide 38: More details
More details Confidential & proprietary
Slide 39: The 7 Pillars of Ateme Business Model
THE 7 PILLARS OF ATEME BUSINESS MODEL UNIQUE TECH OFFER … … DELIVERED WITH EXCELLENCE End-to-End software offer Value-driven validated by key executives sales process Mission critical Solid base of services experts Infrastructure Worldclass partnership Agnostic network Go-to-market tailored to Tier-
Slide 40: Pillar 1/7: E2E Software Backed by Key Executives
PILLAR 1/7: E2E SOFTWARE BACKED BY KEY EXECUTIVES Ateme advisory board Anne Schelle Yuval Fisher Nitin Mittal Weidong Mao Andy Beach Sebastian Audoux Sotiris Salamouris Pascal Crochemore Anna Lockwood Mike Kralec Anil Jain Frank Penning Chris Blandy Confidential & proprietary 13
Slide 41: Pillar 2/7: Mission Critical Services for International Events
PILLAR 2/7: MISSION CRITICAL SERVICES FOR INTERNATIONAL AND PRESTIGIOUS EVENTS Most streamed and watched sport event used International sports events Ateme for streaming on its internet player International Use Ateme for offering exclusive content in entertainment Spatial Computing on the Apple Visi
Slide 42: Pillar 3/7: Infrastructure Agnostic
PILLAR 3/7: INFRASTRUCTURE AGNOSTIC We are ideally positioned to address both on premise and public cloud Rationale to own the datacenter Rationale to move to public cloud On prem or public Cost cloud? Fast deployment Control of the infrastructure Externalization Ateme partners Ateme partners Confid
Slide 43: Pillar 4/7: GTM Tailored to Tier-1
PILLAR 4/7: GTM TAILORED TO TIER-1 Main strategy is to focus on Tier-1 customers EYEBALLS ACCESS WHAT WE SELL Tier-1 customers rationalize their purchasing Global process and rely on less and less providers platforms +30m Direct IP Ateme strength is Enterprise License, aka Tier-1 Multi-Year Enterpri
Slide 44: Pillar 5/7: Value Driven Sales Process (1/3)
PILLAR 5/7: VALUE DRIVEN SALES PROCESS (1/3) Quality driven Versatile Cost saver Visionary Sales Steps Video Quality Superiority Ecosystem Proof Savings Enabler Visionary Partner Demonstrating bandwidth savings Showing integration and Presenting reduced Outlining company’s vision and Goals while mai
Slide 45: Pillar 5/7: Value Driven Sales Process (2/3)
PILLAR 5/7: VALUE DRIVEN SALES PROCESS (2/3) Bring more value to customers 01 Average benefit for ATEME’s customers Datacenter footprint Density of Channels Comparative analysis COMPETITION COMPETITION Comparative analysis of the encoding 149 x SD 178 x SD +20% efficiency of our Titan vs their curre
Slide 46: Pillar 5/7: Value Driven Sales Process (3/3)
PILLAR 5/7: VALUE DRIVEN SALES PROCESS (3/3) Examples of successful "VQ reports" performed Client #3 Client #4 Client #5 a. Cable & OTT/MP2 & H264 a. Satellite/MP2 SD a. Cable/MP2 HD (CBR) b. Imagine b. Harmonic b. Cisco c. QAM: 30%; OTT: 25% c. TP Density +30% (16ch/TP) c. 30% Client #2 Client #6 a
Slide 47: Pillar 6/7: Solid Base of Industry Experts Across the World
PILLAR 6/7: SOLID BASE OF INDUSTRY EXPERTS SPREAD ACROSS THE WORLD Headcount evolution In number 580 553 550 490 +27 +63 -30 2021 2022 2023 2024 • Field presence in 26 countries • 2023: increase in total headcount from 553 to 580 over the year – Decrease in H2 2023 (-14 people) • Direct sales in +50
Slide 48: Pillar 7/7: Worldclass Commercial Partnership Network
PILLAR 7/7: WORLDCLASS COMMERCIAL PARTNERSHIP NETWORK SI/Service Delivery Platforms/Consulting Content Protection Analytics & Player Broadcast, OTT & Workflow Infrastructure CDN Confidential & proprietary 48
Slide 49: Case Study – Understanding Enterprise License
CASE STUDY – UNDERSTANDING ENTERPRISE LICENSE Enterprise License (EL) brings revenue recurrence to our model Relationship Year 1 Year 2 Year 3 Year 4 Year 5 SLA Year 6+ secured over 6 years $3.0m $2.0m $2.0m $2.0m $2.0m $1.4m Access to Clear territories Software Availability of Clearly products defi
Slide 50: We Thrive Against Legacy Competitors with Indirect Cloud Strategy
TODAY, WE THRIVE AGAINST LEGACY COMPETITORS WITH A HIGHLY FLEXIBLE INDIRECT CLOUD STRATEGY AND OFFER Competition is losing Ateme delivers quality Ateme is a key streaming market share against and technical agility partner of the top 4 cloud Ateme mainly due to a providers lack of investment Confiden
Slide 51: Legacy Competitors Can't Adapt to Market Needs
LEGACY COMPETITORS CAN’T ADAPT TO MARKET NEEDS Less investment in core expertise resulting in less efficient solution (eg: lower Video Quality) 2 direct competitors let go their tech experts Ateme’s core strength: Maintain investment in R&D & CTO office Organization size not adapted to the new agili