Slide 1: First-Half 2020 Financial Results
First-Half 2020 Financial Results July 29, 2020 Amedeo D’Angelo, Chairman & CEO Richard Vacher Detournière, GM & CFO Copyright © 2020 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: Successfully transitioning towards recurring subscription and SaaS model
Successfully transitioning towards recurring subscription and SaaS model $44.2 million revenue in first-half 2020 Recurring revenues up 13% year-over-year1 at $29.5 million (67% of revenue) Strong growth of subscription-based business (ARR* x 2.2 in 6 months at $8.5m) Core software business down by
Slide 4: Resilient First-Half 2020 Results
Resilient First-Half 2020 Results $7.4 million EBITDA in first-half 2020 (17% of revenue) Core software business EBITDA up 54% year-over-year $46.5m in cash and cash equivalents Solid financial position to face the global pandemic situation Copyright © 2020 Verimatrix. All Rights Reserved. 4
Slide 5: Financials
Financials
Slide 6: H1 2020 revenue: Core software business down by 6% year over year (pro forma)
H1 2020 revenue: Core software business down by 6% year over year (pro forma1) Q2 2020 vs. 2020 Q2-2020 Q2-2019 H1 2020 H1 2019 Q2 2019 vs. 2019 (in thousands of US$) Software business 24 151 27 475 -12% 44 170 46 870 -6% NFC patent licensing program - - - - 3 548 - Pro forma adjusted revenue 24 151
Slide 7: 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$) H1 2020 H1 2019 Revenue 44,2 50,4 Adjusted gross profit 37,0 40,4 As a % of revenue 83,9% 80,2% Research and development expenses (11,5) (12,8) Selling and marketing expense
Slide 8: H1 2020: Improving IFRS operating income and net income
H1 2020: Improving IFRS operating income and net income (in million US$) 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 9: 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 10: 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 11: Business Outlook & Objectives
Business Outlook & Objectives
Slide 12: Business Outlook
Business Outlook Confident in the resilience of the business Take benefit from the momentum created by the unprecedented demand for remote access, cloud services and content worldwide, requiring simple, scalable, standardized and secure content protection solutions - momentum boosted by the Covid-19
Slide 13: Business Outlook and Objectives
Business Outlook and Objectives Maintain tight control of expense to preserve profitability and cash flow While investing in products and services and market presence to address markets which long term potential remains intact Due to continuing lack of visibility induced by Covid-19 pandemic, 2020 a
Slide 14: Appendix
Appendix
Slide 15: 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 16: 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 17: Investor information
Investor information Investor relations Richard Vacher Detournière GM & CFO finance@verimatrix.com Media Contact Kelly Foster communication@verimatrix.com Financial Calendar Q3 2020 Revenue: October 22, 2020