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  ATEME company press release from 29/09/2022

  29/09/2022 - 18:05

FIRST HALF 2022 RESULTS


  • Revenues up 38% with 32% rise in gross margin
  • H1 Positive EBITDA[1]: €1.3 MILLION
  • Operating loss cut to €1.3 MILLION from €4.8 million in H1 2021
  • BREAKEVEN versus €4.4 million NET LOSS in H1 2021
  • All financial objectives confirmed
Consolidated data (in € million) H1 2021 H1 2021 H1 2022 Change
IFRS   restated *   H1 2022/2021 restated*
Revenues 32.4 31.0 42.9 +38.1%
Gross profit 19.6 18.8 24.9 +32.0%
Gross margin (%) 60.4% 60.6% 58.0% -2.6 pts
Operating profit -4.7 -4.8 -1.3  
Operating margin (%) -14.5% -15.6% -3.0%  
Financial profit / loss 0.1 0.1 1.2  
Tax income 0.2 0.2 -0.1  
Group net profit of continued activities -4.4 -4.5 -0.1  
Group net profit -4.4 -4.4 -0.1  
Net margin (%) -13.5% -13.5% -0.3%  
         
EBITDA1 -2 -2.1 1.3  


(*) Following the disposal of the Enterprise business, financial statements have been prepared in accordance with the provisions of IFRS 5 relating to discontinued operations.

ATEME's (ISIN: FR0011992700) financial statements for the Six Months to June 30th, 2022, were approved by the Board of Directors at its meeting on 28 September. The limited review of the company's financial information by its statutory auditors is complete. The limited review report will be issued following verification of the Half Year activity report.


Paris, Sept 29, 2022 - ATEME the global specialist in video delivery, has published its results for the Half Year to 30th June 2022.


Significant increase in H1 revenues

First Half revenues amounted to €42.9 million, a significant 38% increase year-on-year on a reported basis and 29% like-for-like.

All geographies delivered stable or growing revenues, with varying performances reflecting the ongoing business model transition:

  • EMEA revenues were virtually stable, down 1% year on year (2% like-for-like). They were however the strongest contributor to Monthly Recurring Revenues (MRR)
  • North America showed strong growth, up 74% and 58% like-for-like.
  • Latin America revenues were up 14% and 4% on a like-for like basis.
  • Asia Pacific revenues were up 84% and 68% on a like-for like basis.

Monthly Recurring Revenues (MRR)[2] rose from €1,960K in January 2022 to €2,115K in July 2022.


Gross margin reflecting global inflation and semiconductor supply chain issues pressures

With a few exceptions including China, the Covid-19 is no longer impacting the ability to travel and meet with customers in their offices and trade shows. Nevertheless, the global disruption in the semiconductor industry that resulted from the Covid-19 is still there, impacting lead times and margins. This is reflected in the gross margin decline from 61% in H1 2021 to 58% in H1 2022, and in the high inventory position in the balance sheet deliberately increased in anticipation of potential delays in deliveries.


Full Year Sales growth and EBITDA targets confirmed

Since the 2014 IPO, Second Half revenues have established a pattern of exceeding the First Half by some 30%. This established seasonality is not expected to change in 2022. 

Indeed, visibility over the Second Half is higher than ever, thanks to both the rise in the Monthly Recurring Revenues as well as a sales pipeline boosted by the increasing adoption by customers of the end-to-end OTT delivery solution combining the Titan and Nea product lines.

We have continued investments to accelerate our innovation roadmap and global expansion throughout the semester:

  • The R&D investments in H1 were 19% up vs H1 2021 (+€1.6 million), at 23.5% of the topline.
  • The Sales and Marketing investments in H1 were 4% up vs H1 2021 (+€0.6 million), at 31.3% of the topline.

Recording a positive EBITDA in the first semester (€1.3 million), we are confident the seasonal acceleration in Second Half revenues will enable us to reach our target of 15-20% like-for-like topline growth for the Full Year, with EBITDA close to €10 million.

We also maintain our objective of €3 million in Monthly Recurring Revenue in 2024.


A memorable IBC edition

After two canceled editions, IBC, the largest European trade show in the industry resumed in September in Amsterdam. The demonstrations of the combination of Titan and Nea and the new Ateme+ SaaS offering received significant interest from the thousand customers visiting our booth. Ateme also treated its visitors to a “future zone” on its booth, showcasing partnering startups in the fields of cloud gaming and the metaverse.

On the occasion of IBC, Ateme held the second meeting of its Customer Advisory Board, exploring these adjacent markets the company could expand into whilst leveraging its technology expertise.


Ateme Chairman and Chief Executive Officer, Michel Artières, said: "The €12 million revenue increase in First Half 2022 exceeded competitors' performance. It represented Ateme's fastest market share gain since the 2014 IPO. Annual Recurring Revenue also increased by a further €2 million. Ateme continues to demonstrate the value created by the combination of Titan with Anevia's Nea product line as the ultimate end-to-end OTT delivery solution on the market, improving viewers' experience with high picture quality and low latency, whilst containing network costs. We are confident in attracting further key global customers in the coming months and reiterate our Financial Targets for 2022 and beyond”.


Upcoming event:

November 9th, 2022: Third Quarter 2022 revenues

About Ateme: Ateme is a global leader of video compression and delivery solutions helping Tier-1 Content Providers, Service Providers and Streaming Platforms to boost their viewership and subscription engagement.

Leveraging a unique R&D task force in the video industry, Ateme's solutions power green sustainable TV services, improve end-users' quality of experience, optimize the total cost of ownership of TV/VOD services and generate new revenue streams based on personalization and ad insertion. Beyond the technology agility, Ateme's value proposition is to partner with his customers by offering a great flexibility in the engagement and business models matching their financial priorities. A consequence is a rapid shift to Recurring Revenues, boosting the company resilience and creating long term value for the shareholders.

Founded in 1991, Ateme has 520 employees spread over its headquarters in France and 20 offices around the world including the USA, Brazil, Argentina, UK, Spain, Germany, the UAE, Singapore, China, Korea, and Australia.

Ateme has been listed on the Paris Euronext market since 2014 and in November 2020 it made the acquisition of Anevia, a provider of OTT and IPTV software solutions. In 2021, Ateme served close to 1,000 customers worldwide with revenues of €79 million, of which 93% outside its home market.

Find out more: www.ateme.com.

Name: ATEME - ISIN Code: FR0011992700 - Ticker: ATEME - Compartment: C

Ateme INVESTOR RELATIONS PRESS RELATIONS
Michel Artières 
President and CEO
Anne-Catherine Bonjour
Tel: +33 (0)1 53 67 36 93
ateme@actus.fr
Amaury Dugast
Tel: +33 (0)1 53 67 36 74
adugast@actus.fr


DISCLAIMER

This press release 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 whatsoever concerning Ateme's assets, activities or shares.

All statements other than historical facts included in this presentation, including without limitations, those regarding Atemes' position, business strategy, plans and objectives are forward-looking statements.

The forward-looking statements included herein are for illustrative purposes only and are based on management's current views and assumptions. Such forward-looking statements involve known and unknown risks. For illustrative purposes only, such risks include but are not limited to impact of external events on customers and suppliers; the effects of competing technologies competition generally in main markets; profitability of the expansion strategy; litigation; ability to establish and maintain strategic relationships in major businesses; and the effect of future acquisitions and investments.

Ateme expressly disclaims any obligation or undertaking to update or revise any projections, forecasts or estimates contained in this presentation to reflect any change in events, conditions, assumptions or circumstances on which any such statements are based, unless so required by applicable law. These materials are supplied to you solely for your information and may not be copied or distributed to any other person (whether in or outside your organization) or published, in whole or in part, for any purpose.


[1] EBITDA = earnings before interest, tax, depreciation and amortisation. Underlying EBITDA equals Group pre-tax profit before deduction of interest, depreciation, amortisation and impairment charges on non-current assets, and staff share-based payments, but after impairment of inventories and trade receivables. It shows profit generated by business activities regardless of financing conditions, tax constraints and the upgrading of operating assets. Non-recurring expenses (one-off, unusual or infrequent items) are excluded

[2] Alternative performance indicator, not subject to Ateme's statutory auditors' review


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  Original Source: ATEME