Adslot Ltd · ASX:ADS

Adslot — FY2019 Earnings Presentation

21 slides from Adslot's earnings presentation, Aug 23, 2019

  1. Slide 1: Financial Year 2019 Full Year Results

    FINANCIAL YEAR 2019 FULL YEAR RESULTS. 1

  2. Slide 2: FY19 – Results Highlights

    FY19 – Results Highlights • In FY19, the Company focused on three key strategic priorities: • Return Symphony business to growth via regular market deployments (grow Licence Fees); • Return Adslot Media business to growth by focussing on the US market (grow Trading Fees); and, • Reduce operating cos

  3. Slide 3: FY19 saw strong revenue growth across the business

    FY19 saw strong revenue growth across the business… Group Revenue from Trading Licence Fee Trading Fee Revenue Continuing Technology Revenue Revenue Operations Revenue $10.272M $9.894M $8.038M $6.668M $1.370M Up 28% Up 40% Up 56% Up 49% Up 104% vs PCP Thousands Note: For the current period, Group Re

  4. Slide 4: Reduced operating costs, and improved EBITDA and NPAT

    …reduced operating costs, and improved EBITDA and NPAT Operating EBITDA NPAT Costs Loss Loss $12.836M ($2.619M) ($7.043M) -10% -59% -40% vs PCP

  5. Slide 5: Revenue Segments

    Revenue Segments • Adslot derives its revenue from 3 main sources: • Licence Fees generated primarily from Symphony but also from Adslot Media; • Trading Fees generated primarily from Adslot Media but also from Symphony; and, • Services revenue provided to Symphony and Adslot Media customers as well

  6. Slide 6: Licence Fee Revenue has returned to strong growth

    Licence Fee Revenue has returned to strong growth +49% vs PCP Licence Fees $6.668M • Licence Fees grew 49% on prior corresponding period (PCP), exceeding market guidance of 43.1% growth

  7. Slide 7: Trading Fee revenue has also returned to growth

    Trading Fee revenue has also returned to growth +104% vs PCP Trading Fees $1.370M Note: Trading Fee revenues are invoiced and recognised in the Company accounts in the month(s) in which the advertising activity is published, and on a pro-rata basis where activity falls over multiple months. The valu

  8. Slide 8: Delivering a record year in Trading Technology revenue overall

    Delivering a record year in Trading Technology revenue overall +56% vs PCP Trading Technology $8.038M • Trading Technology revenue (Licence Fees and Trading Fees combined) grew by 56% on prior corresponding period (PCP) • The increase in Trading Technology revenue was driven by a growth of $2.2M (49

  9. Slide 9: Services revenue has stabilised

    Services revenue has stabilised +2% vs PCP Services $1.801M • Services revenue is non-strategic and includes statement of works for Adslot Media and Symphony clients with the majority of the revenue from the Company’s Webfirm services division ($1.672M). • Webfirm underwent a strategic review in 201

  10. Slide 10: FY19 – Operating Costs Reduced

    FY19 – Operating Costs Reduced -10% vs PCP Operating Costs $12.836M

  11. Slide 11: Operating Costs

    Operating Costs • Total Operating costs of $12.836m for the year were 10% lower on PCP • Operating Costs are Total Expenses excluding Depreciation and Amortisation and Taxes • The operating cost reduction was primarily driven by salary savings, down $1.126M (13%) on PCP • Employment related expenses

  12. Slide 12: Improved EBITDA

    Improved EBITDA -59% vs PCP EBITDA Loss ($2.619M) • EBITDA Loss was more than halved in FY19, decreasing by 59% on PCP to a $2.619M loss • The best EBITDA result in the last 5 years due to cost reductions and revenue acceleration

  13. Slide 13: Improved NPAT

    Improved NPAT -40% vs PCP NPAT Loss ($7.043M) • NPAT Loss also decreased by 40% on PCP to $7.043M • The best NPAT result in 5 years due to reduced costs and accelerated revenue

  14. Slide 14: Increased cash receipts and reduced net operating cash outflows

    Increased cash receipts and reduced net operating cash outflows Net Cash Receipts Operating Cash Cashflows $ 17.401M $8.166M ($1.110M) +110% -79% +71% vs PCP

  15. Slide 15: Strategy Update

    Strategy Update

  16. Slide 16: FY20 Strategic Objectives

    FY20 Strategic Objectives The successful execution of the Company’s previous strategic direction has enabled it to re- set its objectives to drive further growth. Key strategic objectives for FY20 are: 1. Execute Master Service Agreements with the 6 global agency holding companies and activate their

  17. Slide 17: Execute Master Service Agreements with Agency Holding Companies

    Execute Master Service Agreements with Agency Holding Companies Majority of media dollars globally are traded via agencies owned by one of the six global agency holding companies – WPP, Interpublic Group, Omnicom, Publicis, Dentsu Aegis and Havas. Executing MSAs with agency holding companies enables

  18. Slide 18: Growing supply within the Adslot Media marketplace

    Growing supply within the Adslot Media marketplace Significant supply already exists in major markets around the world. • Almost 50% of the Comscore Top 50 publishers are available on the Adslot Media marketplace in the US. Expected strong growth in trading demand will require an expansion of supply

  19. Slide 19: Maintain Cost Management Focus

    Maintain Cost Management Focus The Company has shown an ongoing commitment to cost management. • Operating costs reduced by 10% on PCP; • Minimised impact on product investment; and, • No impact on key client relationships. Increased cash receipts, reduced net operating cash outflows and cash balanc

  20. Slide 20: Disclaimer

    Disclaimer The information contained in this presentation is given in good faith and has been prepared from information believed to be accurate and reliable. The information presented does not take into account your individual financial circumstances and it is not designed to be a substitute for spe

  21. Slide 21: Thank You

    Thank You @adslot investor.relations@adslot.com

Adslot — FY2019 Earnings Presentation on 6ix