Slide 1: H1 2024 Results
S E P T E M B E R 2 6 , 2 0 2 4 H1 2024 RESULTS 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: We Help Billions of Viewers to Watch Content Anywhere, Anytime
WE HELP BILLIONS OF VIEWERS TO WATCH CONTENT ANYWHERE, ANYTIME 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 Serv
Slide 7: Unique End-to-End Offering
UNIQUE END-TO-END OFFERING D2C Channel Origin Contribution File Xcoding Broadcast Cloud DVR DAI CDN Analytics Delivery Origination Server x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x (partners) x x x Cloudfront Analytics x x x x x x x x x x x x x Offering end-to-end solution
Slide 8: Ateme Is Infrastructure Agnostic
ATEME IS INFRASTRUCTURE AGNOSTIC Titan, Nea and Pilot are available on all infra options 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 Confidential & proprie
Slide 9: 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 10: H1 2024 Results
H1 2024 RESULTS Confidential & proprietary
Slide 11: Activity H1 2024
ACTIVITY H1 2024: €100.0m €40.8m €90.6m €78.8m 30.5 -17% €70.1m -17% €66.3m at constant exchange rate & perimeter €56.5m 20.5 €48.6m €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% at constant exchange rate & perimeter 2015 2016 2017 2018 2
Slide 12: H1 2024 Revenue Split and Growth by Region
H1 2024 REVENUE SPLIT AND GROWTH BY REGION H1 2024 REVENUE H1 2024 REVENUE SPLIT BY REGION GROWTH BY REGION APAC €8.5m 21% EMEA USA/CAN -61% EMEA +34% €18.2m -61% +34% 45% (at constant exch. rate and perimeter) (at constant exch. rate and perimeter) LATAM €4.2m 10% LATAM +35% APAC +24% +34% (at cons
Slide 13: Continued Growth in MRR Since 2019
CONTINUED GROWTH IN MRR SINCE 2019 ARR: MRR, Multi-Year investment SaaS and Maintenance As 1st of month €31.2m Contracts Subscription in € thousands Monthly Recurring Revenue (MRR) 2.600 Integration 2.443 2.470 of Anevia 1.960 1.500 Increased visibility with 880 secured revenues 570 Higher resilienc
Slide 14: P&L
P&L • Margin rate on direct costs is stable around Consolidated data – IFRS – in thousands of euros FY 2023 H1 2023 H1 2024 71.5% • The 3pts decrease in the gross margin is due Revenue 100,032 49,104 40,763 -17% to fixed and indirect sales costs increasing as a percentage following the revenue decli
Slide 15: Balance Sheet
BALANCE SHEET Consolidated data - IFRS – in thousands of euros 2023/12/31 2024/06/30 Non-current assets 32,769 31,719 o/w Goodwill 12,886 12,886 o/w Intangible assets 8,192 8,215 Decrease in inventory (-€0.6 million) Current assets 75,276 66,636 ASSETS o/w stocks 8,100 7,479 Decrease in customer acc
Slide 16: Cash Flow Statement
CASH FLOW STATEMENT Consolidated data – IFRS – in thousands of euros H1 2023 H1 2024 Net Profit (Loss) (3,316) (8,293) (-) Elimination of non-cash elements 2,225 4,223 Gross cash-flow (1,091) (4,090) Decrease in customer accounts (-) Change in Working Capital 5,748 4,825 receivable and in inventory
Slide 17: Strategy
STRATEGY Confidential & proprietary
Slide 18: OTT Streaming Already Exceed Traditional Linear TV and There Is More to Come
OTT STREAMING ALREADY EXCEED TRADITIONAL LINEAR TV AND THERE IS MORE TO COME Personalization Content & Ad insertion (SVoD, AVoD, NextGen TV) Audience engagement x3 I ncrease ad revenues Convergence of the media-tech Infrastructure migration universe Next-Gen architecture (cloud, SaaS, private or mul
Slide 19: Ateme Advisory Committee
ATEME ADVISORY COMMITTEE Mission: help Ateme reinvent the video consumption 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
Slide 20: Key Market Drivers for Growth
KEY MARKET DRIVERS FOR GROWTH Drivers Impact on business Impact on tech Engaging with younger generation Investing in interactivity, data, Convergence and augmenting revenues consumer experience etc. Monetization Increasing subscriber base and boosting profits with targeted delivery Investing in Dyn
Slide 21: Tipping Point of the Money Flow
TIPPING POINT OF THE MONEY FLOW 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 2028 2020 to 2028 Pay-TV & Streaming
Slide 22: AI to Revolutionize Video Delivery
AI TO REVOLUTIONIZE VIDEO DELIVERY Preproduction Postproduction Release Linear/VOD Asset Catalog Writing & Filming & Visual Effects Preparation Broadcast Management Trailers Metadata Clipping Video stream 5 4 6 AntiPiracy use use use 2 use cases EPG cases cases cases Recommen-- dation 2 use cases Pr
Slide 23: Ateme Patented Audience Aware Streaming
ATEME PATENTED AUDIENCE AWARE STREAMING Monitor profiles popularity with analytics 45% 40% 35% Rely on analytics collection for player data 30% 25% 20% Optimize OTT & CPU allocation 15% 10% 5% 0% Analytics Encoding CDN Player 23 Confidential & proprietary
Slide 24: Ateme 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+ TITAN encoders leverage the Gen 7 compression core to supp
Slide 25: Outlook
OUTLOOK Confidential & proprietary
Slide 26: Since IPO, Reinvestment of Excess Margin on Direct Costs to Build E2E Portfolio
SINCE IPO, REINVESTMENT OF EXCESS MARGIN ON DIRECT COSTS TO BUILD E2E PORTFOLIO Over past 10 years, strong increase of fixed cost for ATEME to reach “critical mass” in terms of: solutions portfolio R&D capability regionalized salesforce In € million 2015 2016 2017 2018 2019 2020 2021 2022 2023 Margi
Slide 27: 2024 OPEX Expected Decreasing YoY: Strong Break vs +20% CAGR
2024 OPEX ARE EXPECTED DECREASING YOY: STRONG BREAK VS +20%CAGR FOR PAST 10Y Product portfolio being largely developed, OPEX are stabilized: Expected major shift vs 10Y CAGR decreasing 24 vs 23 OPEX including customer service (in € million) 70,3 20,0% CAGR 60 51 41 34,2 29,3 26,9 20,9 18,7 14,5 11,4
Slide 28: Start of Harvesting Phase Postponed to '25 Due to NAM Headwinds
BUT START OF HARVESTING PHASE POSTPONED TO ’25 DUE TO NAM CONJUNCTURAL HEADWINDS First year of limited growth due to North America conjunctural headwinds Outside of NAM, all regions growing 20-30% despite reduced OPEX NAM, historically most growing region, impacted by temporary M&A 2024: consolidati
Slide 29: Despite Growth Below Expectations, 2024 Results Will Confirm Leverage of Business Model
DESPITE GROWTH BELOW EXPECTATIONS, 2024 RESULTS WILL 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% OPEX (M€) Confidential Confidential Confidential OPEX
Slide 30: Drivers for Growth
DRIVERS FOR GROWTH Products Partnerships Environment 7th generation of video Partnerships with major A more favorable compression technology public cloud providers competitive environment (powers Titan Live for streaming when a major competitor is looking and Titan File for VOD) for divesting their
Slide 31: Drivers for Profitability
DRIVERS FOR PROFITABILITY Fixed cost Scalable Product mix business go-to-market improvement 72% margin on direct costs: Increase of deal size, Hardware sales are reducing all other OPEX are in particular for enterprise as percentage of sales headcount driven license deals, limiting need (cloud deplo
Slide 32: 2024: Decrease in Total Headcount
2024: DECREASE IN TOTAL HEADCOUNT Headcount evolution In number 594 594 580 553 560 • End-September 2024: decrease in total 518 headcount from 580 to 560 (-20 people) over 9 months 490 +41 -14 • Decrease in total headcount, notably -14 in R&D, for the first time since the IPO +35 -34 +28 H2 2021 H1
Slide 33: Mid-Term Financial Objectives
MID-TERM FINANCIAL OBJECTIVES 2023 2027 (realized) (objectives) REVENUES €100.0 m €130 m MARGIN ON €72.8 m €99 m DIRECT COSTS EBITDA €2.7 m €22 m MRR (Monthly Recurring €2.5 m €4 m Revenue) Confidential & proprietary 33
Slide 34: 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 October 17, 2024 2024 Q3 Reve
Slide 35: Thank You
THANK YOU. Confidential & proprietary