Slide 1: Investors Presentation 2023 Full-Year Results
INVESTORS PRESENTATION 2023 FULL-YEAR RESULTS March 2024
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: Your speakers today
Your speakers today Amedeo D’Angelo Jean-François Labadie Executive Chairman CFO
Slide 4: Summary
Summary 1. Leading in top cybersecurity market 2. Verimatrix : a Tech company in transformation 3. Anti-Piracy 4. Threat Defense 5. 2023 Results 6. 2024 Perspectives Copyright © 2023 Verimatrix. All Rights Reserved. 4
Slide 5: 1. Leading in top Cybersecurity market
1. Leading in top Cybersecurity market Copyright © 2023 Verimatrix. All Rights Reserved. 5
Slide 6: Leading in top cybersecurity markets
Leading in top cybersecurity markets THREAT DEFENSE ANTI PIRACY Integrated Network B2C Other Application Cloud Content & Identity Infrastructure Risk Security Consumer Security Security Security Data Security Access protection Management Equipment software software Secure API visibility App Multi-cl
Slide 7: 2. Verimatrix: A Tech company in transformation
2. VERIMATRIX : A Tech company in transformation Copyright © 2023 Verimatrix. All Rights Reserved. 7
Slide 8: Verimatrix at a glance
Verimatrix at a glance ARR 25 Verimatrix XTD Named Application Security Solution Of The Year in 7th 50% of total revenue Years of security innovation Annual CyberSecurity Breakthrough Awards Leader in the 2023 SPARK 500M+ 153 Matrix™for In-App App clients across devices Patents granted Protection Re
Slide 9: A strong management team
A strong managemen team Amedeo Jean-François Asaf Ashkenazi Valérie Convers Andrew Bear Tom Powledge Jon Samsel Kim Voegele D’Angelo Labadie n Executive n CEO since 2022, n CFO since n SVP HR since n Head of Anti- n Head of the n Head of n Head of Chairman since formerly COO November 2021 2015 Pirac
Slide 10: A proven capacity to expand internationally
A proven capacity to expand internationally Verimatrix international footprint 120 countries Helsinki 8 Glasgow offices Amsterdam 8 Paris Munich Budapest R&D offices Meyreuil San Diego 2023 Revenue by geography Mexico 35% City 37% LATAM EMEA 15% North America Asia 14% R&D office Headquarters Copyrig
Slide 11: Innovative security solutions
Innovative security solutions ANTI PIRACY THREAT DEFENSE 93% of turnover 7% of turnover Protect valuable contents Protect Apps and IoT Protecting content for Streaming Media, Pay TV, Extended threat defense software from the devices to Telcos and Broadcasting the enterprise n Verimatrix protects val
Slide 12: Market momentum
Verimatrix is well-positioned at the crossroads of the video content and threat & defense markets Video content security market Threat and defense market 5.0 CHALLENGER LEADER Application MARKET MOMENTUM Security Device EDR1 Security 3.0 ESTABLISHED 1.0 3.0 5.0 MARKET PRESENCE Verimatrix is recogniz
Slide 13: Verimatrix Positioned as Leader in the 2023 SPARK Matrix for In-App Protection
Verimatrix Positioned as Leader in the 2023 SPARK Matrix™ for In-App Protection Read more
Slide 14: 3. Anti-piracy
3. Anti-piracy • Market shift • Resilient revenue Copyright © 2023 Verimatrix. All Rights Reserved. 14
Slide 15: Anti-Piracy clients and awards overview
Verimatrix is well-positioned at the crossroads of the ANTI PIRACY video Anti-Piracy clients and awards overview Selected historical clients Notable recent sales wins Awards and certifications Recent selected awards ISO certifications 2023 NAB Show Winner – Best Content Enterprise Product of 2023 SP
Slide 16: 4. Threat Defense
4. Threat Defense • New offers • New verticals • Strong dynamic
Slide 17: Threat defense clients overview
THREAT DEFENSE Threat defense clients overview Fintech Healthtech Automotive Entertainment Copyright © 2023 Verimatrix. All Rights Reserved. 17
Slide 18: Q4 revenue & 2023 full year results
Q4 revenue & 2023 full year results • Stabilization of revenue • EBITDA growth +18%
Slide 19: 2023 Results
2023 Results INITIAL H1 2023 GUIDANCES GUIDANCES ACHIEVED 2023 2023 Growth of subscription >40% >60% +69% revenues Growth of the >40% >40% +34% ARR ü Recurring revenue from subscriptions and maintenance : 31M$ +16% ü Recurring revenue represented 50% of total revenue vs 45% in 2022 ü ARR growth +34%
Slide 20: Q4 2023 Revenue
Q4 2023 Revenue (in US$ million) 4Q23 4Q22 Var % Comments Recurring revenue 7.7 7.2 7% • Total revenue $17M +6% of which subscriptions 3.7 2.8 +32% • Recurring revenue at $7.7M +7% of which maintenance 4.0 4.4 -9% • Improvement of non-recurring revenue in Q4 2023, +5% revenue growth after 3 declinin
Slide 21: Annual Recurring Revenue trend from subscriptions
Annual Recurring Revenue trend from subscriptions Q4 2023 ARR +34% yoy 15 15 14 13 13 12 11 11 9 9 8 8 7 5 3 In $M 1 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 -1 Copyright © 2023 Verimatrix. All Rights Reserved. 21
Slide 22: FY 2023 revenues
FY 2023 revenues Comments (in US$ million) FY23 FY 22 Var % Continuous transformation of one-off license sales to SAAS revenue Recurring revenue 30.7 26.4 16% • Recurring revenue $30.7M +16%, half of total revenue of which subscriptions 13.8 8.2 69% • Subscription revenue $13.8M +69%, in line with g
Slide 23: FY 2023 revenues by business and region
FY 2023 revenues EMEA -15% 2022 performance was particularly dynamic for USA & Canada +13% license sales, creating a high comparison base for Growth of subsription 2023 ANTI PIRACY • Resilient revenue offers 93% of turnover In 2023, revenues fell slightly by 1% Due to 2 transformations : fdfdfdfdfdf
Slide 24: FY 2023 – Results
FY 2023 – Results (millions $) 2023 2022 Var. Revenue 61.6 61.0 +1% Comments Gross Profit 43.4 43.6 +0% % of revenue 70.4% 71,4% • Revenue : $61M +1%, stabilization R&D expenses (18.4) (19.3) -5% Sales & Marketing expenses fdfdfdfdfdfdfd (17.0) (15.2) +11% • Gross margin : $43.4M, 70,4 % of turnover
Slide 25: FY 2023 – Cash Flow
FY 2023 – Cash Flow December December (millions $) 31, 2023 31, 2022 Comments Income / (loss) for the period (14,3) (17,6) Non cash income statement items from continuing activities 14,2 18,0 Changes in working capital from continuing operations 4,7 7,7 Cash and cash equivalents : $22.6M, . Cash gen
Slide 26: FY 2023 – Balance Sheet
FY 2023 – Balance Sheet Assets Equity and liabilities December December December December (in US$ million) 31, 2023 31, 2022 (in US$ million) 31, 2023 31, 2022 Ordinary shares 41,5 41,5 Share premium 94,7 94,7 Goodwill 115,2 115,2 Retained earnings (0,2) 17,2 Intangible assets 13,0 16,5 Income / (lo
Slide 27: 2024 Outlook
2024 OUTLOOK Copyright © 2023 Verimatrix. All Rights Reserved. 27
Slide 28: 2024 Objectives
2024 Objectives • Resilient revenue • Strong growth • ARR suscription growth >20% • Ongoing transformation: decline • New offers in broadcasting partially offset • New verticals by growth in OTT • Recurring revenue transformation EBITDA continuous improvement Copyright © 2023 Verimatrix All Rights R
Slide 29: Why to invest?
Why to invest? Innovative technology Dynamic markets company in cybersecurity Threat defense Transformation is delivering Improving profitability Anti-Piracy Supportive and confident shareholders
Slide 30: Verimatrix Share
Verimatrix Share ISIN Code FR0010291245 VMX Market Euronext Paris Number of shares 85 535 147 Share price (03/13/2023) €0.51 Market capitalisation €43m CAC All Share, CAC All Tradable, CAC Mid & Small, Indices CAC Small, CAC Technology, Enternext PEA-PME 150 Analysts Coverage fdfdfdfdfdfdfd Oddo, Po
Slide 31: Investor Information
INVESTOR INFORMATION Investor relations CFO finance@verimatrix.com SEITOSEI.ACTIFIN Media Contact Matthew Zintel communication@verimatrix.com Visit: https://investors.verimatrix.com/