Slide 1: Investors Presentation 2022 Full-Year Results
INVESTORS PRESENTATION 2022 FULL-YEAR RESULTS Amedeo D’Angelo, Executive Chairmain - Jean-François Labadie, CFO March 2023
Slide 2: Disclaimer
Disclaimer This document was prepared by Verimatrix and is provided for information No statement in this presentation is intended as a profit forecast or estimate for any purposes only. It is public information only. period. Persons receiving this document may not and should not rely on forward look
Slide 3: Introduction
Introduction Copyright © 2023 Verimatrix, All Rights Reserved 3
Slide 4: Verimatrix at a glance
Verimatrix at a glance 800+ 320 GARTNER Customers in 120 countries Employees, 8 global offices RECOGNIZED In-App Protection, 2019–2022 CYBERSECURITY 500M+ 25 BREAKTHROUGH AWARDS App clients across devices Years of security innovation Automotive Cybersecurity Solution of the Year 2021 2021 INFORMA GL
Slide 5: FY 2022 – Financial highlights
FY 2022 – Financial highlights Continued growth in both Sales and Annual Recurring Revenue of subscription products, particularly in the second half of the year A 2022 full-year performance in line with the Group’s strategy 45,9% growth in revenue from subscriptions compared with 2021 47,3% growth i
Slide 6: Verimatrix: protecting an unprotected digital world
VERIMATRIX protecting an unprotected digital world Copyright © 2023 Verimatrix, All Rights Reserved 6
Slide 7: 2 global business lines
2 global business lines ANTI PIRACY THREAT DEFENSE PROTECT VALUABLE CONTENTS PROTECT APPS AND IOT Protecting content for Streaming Media Extended threat defense software Pay TV, Telcos and Broadcasting from the devices to the enterprise 7
Slide 8: Two successful business lines
Two successful business lines Anti-Piracy Threat Defense Verimatrix protects valuable revenue Verimatrix’s threat defense products streams of media distributors, from TV and services close the open door in operators, to OTT service providers, current security walls by monitoring from live and VoD, t
Slide 9: 1. Anti-piracy
Global business lines 1. Anti-piracy Copyright © 2023 Verimatrix, All Rights Reserved 9
Slide 10: Streamkeeper – Launch 2022
ANTI PIRACY Streamkeeper – Launch 2022 battle-ready cybersecurity engineered to hunt down & take out video piracy Multi-DRM Counterspy App Anti-Piracy Telemetry with Edge Authenticator Shutdown Watermarking 10 10
Slide 11: Streamkeeper Recognition
ANTI PIRACY Streamkeeper Recognition Best Content Enterprise Product of the The Revenue Protection Year Security Software Security Award Technology Copyright © 2023 Verimatrix, All Rights Reserved 11
Slide 12: Swisscom SaaS deal
12 ANTI PIRACY Swisscom SaaS deal Migration from On Premise to SaaS New Monitoring Capabilities on the Cloud 3 Years deal “Verimatrix became the reliable and cooperative partner that we are looking for…” Marco Loetscher, Head of IT & Technology, Swisscom 12
Slide 13: 2. Threat Defense
Global business lines 2. Threat Defense
Slide 14: Two User Types Connecting to the Enterprise
THREAT DEFENSE Two User Types Connecting to the Enterprise EDR - MTD MDR - EPP to r s c onnecting Multiple solutions es & contrac to protect managed Empl oy e nd s m a r tphones apps & devices ps a Enterprise IT from lapto e Consumers c onnecting fro smartphones m laptops, and smart TV s ? Cloud API
Slide 15: Fastest Growing Digital Attack Surface Is Mobile
THREAT DEFENSE Fastest Growing Digital Attack Surface Is Mobile New attack vectors evolving from the weakest links – connected apps, APIs and unmanaged devices 45% 73% 60% Of organizations had recently Of organizations that Of organizations report that experienced mobile-related experienced mobile-r
Slide 16: New XTD offering for mobiles
THREAT DEFENSE New XTD offering for mobiles Key Shield XTD Predict Code Shield XTD Prevent Predict Prevent Value Respond Detect XTD Detect & XTD Detect & Respond Respond Copyright © 2023 Verimatrix, All Rights Reserved. 16
Slide 17: Notable Recent Sales Wins
Notable Recent Sales Wins ANTI PIRACY ANTI PIRACY THREAT DEFENSE VCAS Streamkeeper XTD Digital Deutsche Jarir Porto Fastway Edison Bank Store Seguro Nirvana Interactiv e IMAX Banco VanEck Theatre Union Asset Mngt RCBC Bank Copyright © 2023 Verimatrix, All Rights Reserved 17
Slide 18: Solid sales momentum – The case of Izzi Telecom
Solid sales momentum – The case of Izzi Telecom A major player in the Mexican telecommunications sector offering popular services such as Izzi TV or Izzi Go fdfdfdfdfdfdfd Adding Streamkeeper and Extended Threat Defense to protect millions of devices (apps, web streaming services, “Cybersecurity a s
Slide 19: 2025 Ambition & Recurring revenues strategy
2025 Ambition & Recurring revenues strategy
Slide 20: Our ambition for 2025
Our ambition for 2025 PROTECT CONTENT FROM PIRACY AND DEFEND THE ENTERPRISE FROM UNMANAGED DEVICES ANTI PIRACY THREAT DEFENSE Become N°1 in Leverage our position protecting video in IOT and Apps protection for the streaming market to extend into entreprise’s endpoints protection market FINANCIAL TAR
Slide 21: Revenue evolution regarding transformation journey
Revenue evolution regarding transformation journey Revenue evolution (Recurring / Non-Recurring) CAGR in ARR expected above 30% >100 > 30% R CAG 71.8 $26.8M 2021 2025 2021 2022 2023 2024 2025 The change of the business model will deliver a Recurring Revenue Non Recurring Revenue sustainable and prof
Slide 22: Business model transformation is accelerating
Business model transformation is accelerating Split of revenues over the years Total Recurring Revenue will increase over the years % of the annual revenues And will represent more than70% of total revenue by the end 2025 Licence (including Royalties) >70% >70% SaaS & 35% 35% Maintenance 2021 2025 2
Slide 23: ARR will grow supported by SaaS and subscription business model
ARR will grow supported by SaaS and subscription business model CAGR in ARR ARR breakdown expected above 30% (percentage) > 30% R CAG +70% $26.8M >70% 2021 2025 2021 2025 ARR SaaS+Subsc ARR Maintenance 23
Slide 24: Q4 revenue & 2022 full year results
Q4 revenue & 2022 full year results
Slide 25: Q4 & FY 2022 revenues
Q4 & FY 2022 revenues Q4 REVENUE FY REVENUE 4Q22 2022 (in US$ million) 4Q22 4Q21 FY22 FY 21 vs. 4Q21 vs. 2021 Recurring revenue 7.2 6.5 10.2% 26.4 25.0 5.4% of which subscriptions 2.8 1.5 79.1% 8.2 5.6 45.9% of which maintenance 4.4 5.0 -11.1% 18.2 19.4 -6.3% Non-recurring revenue 8.9 14.1 -36.8% 34
Slide 26: Annual Recurring Revenue trend from subscriptions
Annual Recurring Revenue trend from subscriptions 5 consecutive quarters of growth 11.1 9.0 7.8 8.0 7.5 In $M Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Copyright © 2023 Verimatrix, All Rights Reserved 26
Slide 27: FY 2022 – Operating Income
FY 2022 – Operating Income 2021 Core 2021 (US$ million) 2022 Business Company1 Revenue 61,0 71,8 88,5 Decrease of the non-recurring revenue and higher amortisation costs. Gross profit 43,6 54,9 66,7 Negative effects partially offset by the As a % of revenue fdfdfdfdfdfdfd Research and development ex
Slide 28: FY 2022 – Cash Flow
FY 2022 – Cash Flow US$ million) 2022 2021 Income / expense from continuing operations (17.6) 3.7 Non-cash items from continuing operations 18.0 13.7 Changes in working capital from continuing operations 7.7 9.5 Cash generated by / Used in operational activities 8.1 26.9 Cash used in discontinued op
Slide 29: 2023 Outlook
2023 OUTLOOK Copyright © 2023 Verimatrix, All Rights Reserved 29
Slide 30: 2023 Full-year guidance
2023 Full-year guidance Strong growth in recurring revenues Growth of its subscription Growth of the ARR revenues >40% >40% Copyright © 2023 Verimatrix, All Rights Reserved 30
Slide 31: Investor Information
INVESTOR INFORMATION Investor relations CFO finance@verimatrix.com Media Contact Matthew Zintel communication@verimatrix.com Financial Calendar 2023 Earmings: March 9, 2023 (after market) Visit: https://investors.verimatrix.com/