Azerion Group N.v · EURONEXT:AZRN
Azerion — Q3 2024 Earnings Presentation
29 slides from Azerion's earnings presentation, Nov 19, 2024
Slide 1: Q3 2024 Interim financial results and business update presentation
Q3 2024 Interim financial results and business update presentation 19 November 2024
Slide 2: Disclaimer
Q3 YTD 2024 Results presentation Disclaimer The following disclaimer applies to this document, any oral or video presentation of the information in this document by Azerion Group N.V. (“Azerion Group”) or any person on behalf of Azerion Group and any question-and-answer session that follows the oral
Slide 3: Forward-looking statement
Q23 YTD 2024 Results presentation Forward-looking statement The Information includes statements, including Azerion Group's financial and operational objectives that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements may be identified by the use of forward-loo
Slide 4: Strong financial performance
Strong financial performance REVENUE ADJ. EBITDA REVENUE ADJ. EBITDA Q3 2024 Q3 2024 Ytd 2024 Ytd 2024 ~€125M ~€18M >€383M €45M YoY +23%1 YoY +9%1 YoY +22%1 YoY +26%1 1. Excluding the divested social card games portfolio. Azerion completed the sale of its social card games portfolio to Playtika Hold
Slide 5: Highlights of Q3 '24
Highlights of Q3 ‘24 1｜ Double digit revenue growth 5｜ Capturing opportunities Group Revenue of € 125 million (+23%), Adjusted Market dynamics and tailwinds present opportunities EBITDA € 18 million (+9%) Q3 2024 for accelerated growth, Well progressed M&A pipeline with several 2｜ Strong segment gro
Slide 6: Q3 & YTD Group Financial Highlights
Q3 & YTD Group Financial Highlights Group Quarter Performance1 €m Group YTD Performance1 €m 1 Q3 '23 Q3 '24 YTD '23 YTD '24 +22% +23% € 383 € 125 € 315 € 102 +9% +26% € 16 € 18 €36 € 45 Revenue Adjusted EBITDA Revenue Adjusted EBITDA Organic Revenue Growth Q3 2024 Organic Revenue Growth YTD Q3 2024
Slide 7: Platform performance
Platform performance Financial performance revenue €m Ads sold (in Bn) Advertising Platform AAA Game Distribution Avg. Monthly Digital Ads Sold 344 13.9 280 58 12.6 11.9 11.9 12.1 57 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 286 111 91 223 19 18 Avg. Gross Revenue per Million Ad Request 73 92 € 34.5 Q3 '23
Slide 8: Premium Games performance
Premium Games performance Financial performance revenue €m1 MAUs2 252 255 253 251 39 239 35 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Avg. Time in Game2 95 14 87 85 80 81 11 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q3 '231 Q3 '24 YTD '23 YTD '24 ARPDAU2 € 0.57 € 0.53 Adj. EBITDA €m1 € 0.47 € 0.44 2.7 4.6 5.4 8.8
Slide 9: Improved operating performance
Improved operating performance Revenue per FTE '000 FTEs 180 152 1,900 160 143 140 126 1,700 117 120 100 96 93 100 1,500 76 78 74 80 73 1,300 60 40 1,100 20 - 900 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024
Slide 10: Financial Framework
Financial Framework 5-quarter rolling financial Q3 2024 Q3 2024 Net interest bearing debt* performance Net Cash Flow From Operations Revenue Adjusted EBITDA 171.8 138.7 124.8 119.7 101.8 25.9 16.2 17.5 17.7 9.8 Operating Other Interest, Profit/ Tax & Interest Cash and Net Interest Q3 '23 Q4 '23 Q1 '
Slide 11: Growing digital advertising opportunities for brands and agencies
Growing digital advertising opportunities for brands and agencies as audiences go online 2.5bn 10 years ago +5.5bn Today 10% $1trillion ‘24-‘28 CAGR 2028 Market size # Internet users1 Digital advertising2 Source: 1) Statista Number of internet users worldwide from 2005 to 2023 (May 2024). 2) eMarket
Slide 12: Crowded and complex digital advertising market dominated by a few large players
Crowded and complex digital advertising market dominated by a few large players Digital Advertising Market 2024 Digital ad spend concentration Top 10 Next 11 - 25 Remaining companies 16.3 15.7 14.9 16.4 12.4 6.2 6.5 7.9 7.0 6.9 76.6 78.1 78.6 76.8 79.8 2019 2020 2021 2022 2023 Digital advertising ma
Slide 13: Advertisers must navigate a complex and costly value chain
Advertisers must navigate a complex and costly value chain to reach target audiences Advertiser Publisher Agency Demand-side Ad networks Supply-side platform platform Create Buy Facilitate digital Ad servers Facilitate digital ads media inventory purchases inventory sale Spends Receives Ad exchange
Slide 14: Azerion offers an efficient and cost-effective one-stop solution
Azerion offers an efficient and cost-effective one-stop solution minimising risk Advertiser Publisher Agency Demand-side Ad networks Supply-side platform Ad servers platform Create ads Buy media Facilitate digital inventory Facilitate digital purchases inventory sale Owned publishers Ad exchange Exc
Slide 15: Generating real outcomes by reaching targeted audiences
Generating real outcomes by reaching targeted audiences in the right place with the right message EMPOWERING ADVERTISERS Azerion’s local Direct Sales teams have the knowledge and network to connect brands with highly engaged audiences through multiple channels and formats. Our proprietary AI technol
Slide 16: Omnichannel coverage
Omnichannel coverage Expansive suite of tailored advertising formats and monetisation solutions across multiple channels Mobile/ Web DOOH Audio In-Game CTV • ~450m MAUs • +1m digital screens • 500m monthly • ~50k MAUs • +2bn weekly impressions • 300k Publishers available impressions • +20k Casual Ga
Slide 17: Delivering contextually relevant and highly engaging ad campaigns
Delivering contextually Supporting brands create dynamic and relevant ads relevant and highly engaging ad campaigns to reach targeted audiences FREENOW hyper local campaign • Geographic campaign targeting DOOH screens with 500m radius of metro stations • Environmental triggers such as weather and co
Slide 18: Technical and commercial partnerships
Technical and commercial partnerships Strengthening our local connection with advertisers and publishers Leveraging its monetisation Captify’s extensive onsite search Azerion’s advertising clients gain Goldbach’s extensive network of solutions, Azerion to become the data enhances Azerion’s cookieles
Slide 19: Delivering on Technology Roadmap
Delivering on Technology Roadmap Channel and format expansion • CTV & Set-Top Box granular targeting for third party quality measurement • Launched programmatic advertising audio, enabling brands to reach audiences through highly engaging podcasts, radio, music and more programmatically Inventory en
Slide 20: New audio solutions unlocking additional revenue
New audio solutions unlocking additional revenue New Azerion Podcast Hosting Platform Audio Adserver Product for publishers A new hosting platform that allows publishers to use Azerion as their Launched an improved audio adserver as a standalone product in our tech provider for creating, distributin
Slide 21: Fully integrated Tech Stack
Fully integrated Tech Stack Connecting advertisers and content publishers together to create real outcomes at scale Consolidating previous acquisition Creating real outcomes Azerion Edge technology embedded into Hawk, An integrated omnichannel solution offering digital enriching advertisers audience
Slide 22: Preferred partner of advertisers, agencies and publishers
Preferred partner of advertisers, agencies and publishers for local and tailored solutions
Slide 23: European champion providing access to local and global audiences
European champion providing access to local and global, diverse and engaged audiences Consumers Advertisers Digital publishers Game creators ~1,000 +500m 400k+ 300k+ ~1.3k Employees1 Unique monthly Advertisers 3 Contracted Contracted active users2 publisher websites 3 game creators1 HQ 20k+ ~13bn 10
Slide 24: Proven growth strategy underpinned by four pillars
Proven growth strategy underpinned by four pillars for continued growth 4 Acquire new technology, people and key partnerships Consolidate market position in key geographies M&A pipeline Strengthen relationships with publishers through minority stakes 3 Capturing platform synergies and network effect
Slide 25: Market dynamics and tailwinds present opportunities for accelerated growth
Market dynamics and tailwinds present opportunities for accelerated growth Increased competition Continued new number of entrance, increased M&A activity in and need for Ad Tech industry, accelerated consolidation of revenues consolidation amongst largest firms Market Dynamics Industry and audience
Slide 26: Strong position across entire value chain
Strong position across entire value chain following recently integrated partnerships Demand Technology & Data Monetisation Content Localised, full monetisation for End-to-end advertising Intelligence platform Proprietary digital content publishers, managed by campaign management for combining cookie
Slide 27: Proven acquisition model and well-progressed M&A pipeline
Proven acquisition model and well-progressed M&A pipeline M&A strategy and acquisition criteria Acquisition pipeline(1) Selected • M&A is a key tool in executing on the Group’s growth strategy, enabling further Region Vertical Rationale Target description Adj. EBITDA(2) target strengthening of the e
Slide 28: Summary of M&A factors underpinning growth pipeline
Summary of M&A factors underpinning growth pipeline 4 Pipeline of >20 actionable targets 8 highest conviction opportunities M&A pipeline Revenue of highest conviction opportunities in aggregate of ~€255-285m and Adjusted EBITDA in aggregate of ~€20-25m (pre-synergies) 3 Ytd Q3 ‘24 Revenue growth of
Slide 29: Q&A
Q&A