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Generated record Q3 CTV spendwhichgrew 45% year-over-year,and Companybelieves itiswell-positioned for success duringthe2022 FIFA World Cup through global ad monetization exclusivity on the FIFA+ app across Hisense connected TVs powered by VIDAA and its global partner ecosystem
Completed acquisition of Amobee, and investment in VIDAA, an operating system and subsidiary of Hisense, enables exclusive access to global ACR data and media in select countries, strengthening the Company’s ability to capitalize on future CTV, video, and cross-channel growth opportunities
Generated positive Adjusted EBITDA from Amobee within first three weeks of closing the acquisition, highlighting management’s proven track record of strong cost discipline
NEW YORK, Nov. 14, 2022 (GLOBE NEWSWIRE) -- Tremor International Ltd. (AIM/NASDAQ: TRMR) (“Tremor” or the “Company”), a global leader in data-driven video and connected TV (“CTV”) advertising technology offering an end-to-end platform that enables advertisers to optimize their campaigns and media companies to maximize inventory yield, today announces its financial results for the third quarter and nine-month period ended September 30, 2022.
Financial Summary
“During the third quarter we executed on long-term strategic initiatives that we believe will support our future growth by completing our acquisition of Amobee and investment in VIDAA,” said Ofer Druker, Tremor International’s Chief Executive Officer. “The combination of the expanded scale, customer base, and new technological capabilities from Amobee, alongside the exclusive ability to share global ACR data, enable exclusive high quality CTV advertising opportunities, and gain access to exclusive sports content monetization opportunities through our investment in VIDAA, is expected to greatly benefit our partners and expand our market share within the CTV arena.”
Operational Highlights and Recent Business Wins
Share Repurchase Program Updates
Financial Guidance
Third Quarter 2022 Financial Highlights ($ in millions, except per share amounts)
| Three months ended September 30 | Nine months ended September 30 | ||||||||||
| 2022 | 2021 | % | 2022 | 2021 | % | ||||||
| IFRS highlights | |||||||||||
| Non-IFRS Highlights | |||||||||||
| Revenues | 70.9 | 87.0 | (19%) | 227.6 | 239.4 | (5%) | |||||
| Programmatic Revenues | 60.1 | 68.9 | (13%) | 179.9 | 192.1 | (6%) | |||||
| Operating Profit | 4.1 | 13.7 | (70%) | 33.9 | 50.1 | (32%) | |||||
| Total Comprehensive Income/(Loss) | (5.2) | 10.2 | (151%) | 6.4 | 46.7 | (86%) | |||||
| Diluted EPS | (0.01) | 0.07 | (109%) | 0.11 | 0.33 | (66%) | |||||
| Contribution ex-TAC | 64.9 | 76.7 | (15%) | 206.7 | 213.4 | (3%) | |||||
| Adjusted EBITDA | 30.1 | 42.3 | (29%) | 102.9 | 107.2 | (4%) | |||||
| Adjusted EBITDA Margin | 46% | 55% | (16%) | 50% | 50% | 0% | |||||
| Non-IFRS net Income | 16.9 | 33.3 | (49%) | 65.9 | 83.5 | (21%) | |||||
| Non-IFRS Diluted EPS | 0.11 | 0.21 | (47%) | 0.42 | 0.56 | (26%) | |||||
Third Quarter and Nine Month 2022 Financial Results Webcast and Conference Call Details
Use of Non-IFRS Financial Information
In addition to our IFRS results, we review certain non-IFRS financial measures to help us evaluate our business, measure our performance, identify trends affecting our business, establish budgets, measure the effectiveness of investments in our technology and development and sales and marketing, and assess our operational efficiencies. These non-IFRS measures include Contribution ex-TAC, Adjusted EBITDA, Non-IFRS Net Income (Loss) and Non-IFRS Earnings (Loss) per share, each of which is discussed below.
These non-IFRS financial measures are not intended to be considered in isolation from, as substitutes for, or as superior to, the corresponding financial measures prepared in accordance with IFRS. You are encouraged to evaluate these adjustments and review the reconciliation of these non-IFRS financial measures to their most comparable IFRS measures, and the reasons we consider them appropriate. It is important to note that the particular items we exclude from, or include in, our non-IFRS financial measures may differ from the items excluded from, or included in, similar non-IFRS financial measures used by other companies. See "Reconciliation of Revenue to Contribution ex-TAC," "Reconciliation of Net Income (Loss) to Adjusted EBITDA," and "Reconciliation of Net Income (Loss) to Non-IFRS Net income," included as part of this press release.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (as implemented into English law) ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
About Tremor International
Tremor is a global company offering an end-to-end technology advertising platform, operating across three core capabilities - Video, Data and CTV. Tremor's unique approach is centered on offering a full stack of end-to-end solutions which provides it with a major competitive advantage within the video advertising ecosystem.
Tremor Video helps advertisers deliver impactful brand stories across all screens through the power of innovative video technology combined with advanced audience data and captivating creative content. Tremor Video's innovative video advertising technology has offerings in CTV, in-stream, out-stream and in-app. To learn more, visit www.tremorvideo.com
Amobee optimizes outcomes for advertisers and media companies, while providing a better consumer experience. Its platform assists customers by furthering their audience development, optimizing their cross-channel performance across all TV, connected TV, and digital media, and driving new customer growth through detailed analytics and reporting. To learn more, visit www.amobee.com
Unruly, the media side of Tremor, drives real business outcomes in multiscreen advertising. Its programmatic platform efficiently and effectively delivers performance, quality, and actionable data to demand and supply-focused clients and partners. Tremor has a meaningful number of direct integrations with premium publishers, unique demand relationships with a variety of advertisers and privileged access to News Corp inventory. Unruly connects to the world's largest DSPs and is compatible with most Ad Age top 100 brands. To learn more, visit www.unruly.co
Tremor is headquartered in Israel and maintains offices throughout the United States, Canada, Europe, Asia-Pacific and is traded on the London Stock Exchange (TRMR" href="/company/TRMR" onmouseover="handlePagePreview('company','TRMR')" style="color:#4007a2 !important; text-decoration:underline !important; font-weight:bold;">AIM: TRMRTRMR-pp">) and NASDAQ: (TRMR).
For more information, visit: https://www.tremorinternational.com/
For further information please contact:
Tremor International Ltd.
Billy Eckert, Senior Director Investor Relations
ir@tremorinternational.com
KCSA (U.S. Investor Relations)
David Hanover, Investor Relations
tremorir@kcsa.com
Vigo Consulting (U.K. Financial PR & Investor Relations)
Jeremy Garcia
Kate Kilgallen
Tel: +44 20 7390 0230 or tremor@vigoconsulting.com
finnCap Ltd.
Jonny Franklin-Adams / Charlie Beeson / George Dollemore (Corporate Finance)
Tim Redfern / Harriet Ward (ECM)
Tel: +44 20 7220 0500
Stifel Nicolaus Europe Limited
Fred Walsh
Alain Dobkin
Nick Adams
Richard Short
Tel: +44 20 7710 7600
PR Contact
Caroline Smith
VP, Communications, Tremor International
csmith@tremorinternational.com
Forward Looking Statements
This press release contains forward-looking statements, including forward-looking statements within the meaning of Section 27A of the United Stated Securities Act of 1933, as amended, and Section 21E of the United States Securities and Exchange Act of 1934, as amended. Forward-looking statements are identified by words such as “anticipates,” “believes,” “expects,” “intends,” “may,” “can,” “will,” “estimates,” and other similar expressions. However, these words are not the only way Tremor identifies forward-looking statements. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the anticipated financial results for Q4 2022, full year 2022, and full year 2023; anticipated benefits of Tremor’s strategic transactions and commercial partnerships; anticipated features and benefits of Tremor’s products and service offerings; Tremor’s positioning for continued future growth in both the US and international markets in the fourth quarter of 2022 and beyond; Tremor’s implementation of a substantial share repurchase while also continuing to evaluate strategic opportunities to acquire companies and invest in technology, products, sales and marketing to further expand its platform; Tremor’s medium- to long-term prospects; management’s belief that Tremor is well-positioned to benefit from anticipated future industry growth trends and Company-specific catalysts; the potential negative impact of inflationary pressures, rising interest rates, geopolitical and macroeconomic uncertainty, recession concerns, and the widespread global supply chain issues that have limited advertising activity and the anticipation that these challenges could continue to have an impact for the remainder of 2022 and beyond; the anticipated impact of the FIFA World Cup on Tremor’s anticipated performance; the anticipated benefits from the Company’s investment in VIDAA and its enhanced strategic relationship with Hisense; the anticipated benefits and synergies from the Amobee acquisition and ability of Tremor to continue to recognize those synergies; Tremor’s ability to continue to execute on cross-selling opportunities and its introduction of new technology products to a significantly larger customer base and addressable market; the timing to complete the technology integration of Amobee, as well as any other statements related to Tremor’s future financial results and operating performance. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors that may cause Tremor's actual results, performance or achievements to be materially different from its expectations expressed or implied by the forward-looking statements, including, but not limited to, the following: negative global economic conditions, potential negative developments in the COVID-19 pandemic and how those developments may adversely impact Tremor’s business, customers and the markets in which Tremor competes, changes in industry trends, the risk that Tremor will not realize the anticipated benefits of its acquisition of Amobee and strategic investment in VIDAA, including as a result of an inability to integrate Amobee’s business effectively and efficiently into Tremor, other negative developments in Tremor's business or unfavourable legislative or regulatory developments. Tremor cautions you not to place undue reliance on these forward-looking statements. For a more detailed discussion of these factors, and other factors that could cause actual results to vary materially, interested parties should review the risk factors listed in Tremor’s most recent Annual Report on Form 20-F, which was filed with the U.S. Securities and Exchange Commission ( www.sec.gov ) on March 15, 2022. Any forward-looking statements made by Tremor in this press release speak only as of the date of this press release, and Tremor does not intend to update these forward-looking statements after the date of this press release, except as required by law.
Tremor, and the Tremor logo are trademarks of Tremor International Ltd. in the United States and other countries. All other trademarks are the property of their respective owners. The use of the word “partner” or “partnership” in this press release does not mean a legal partner or legal partnership.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
| Three months ended September 30 | Nine months ended September 30 | ||||||||||
| 2022 | 2021 | % | 2022 | 2021 | % | ||||||
| ($ in thousands) | |||||||||||
| Net Income (Loss) | (959) | 11,880 | (108%) | 17,676 | 48,823 | (64%) | |||||
| Taxes on income | 4,458 | 1,491 | 14,648 | (347) | |||||||
| Financial expense , net | 617 | 312 | 1,610 | 1,623 | |||||||
| Depreciation and amortization | 10,159 | 10,033 | 25,516 | 29,945 | |||||||
| Stock-based compensation | 11,166 | 18,745 | 42,519 | 23,696 | |||||||
| Restructuring & Acquisition costs | 4,685 | 74 | 5,992 | 508 | |||||||
| Other income | - | - | (5,103) | - | |||||||
| IPO related one-time costs | - | (195) | - | 2,938 | |||||||
| Adjusted EBITDA | 30,126 | 42,340 | (29%) | 102,858 | 107,186 | (4%) | |||||
Reconciliation of Revenue to Contribution ex-TAC
| Three months ended September 30 | Nine months ended September 30 | ||||||||||
| 2022 | 2021 | % | 2022 | 2021 | % | ||||||
| ($ in thousands) | |||||||||||
| Revenues | 70,851 | 87,023 | (19%) | 227,553 | 239,411 | (5%) | |||||
| Cost of revenues (exclusive of depreciation and amortization) | (14,064) | (16,373) | (43,480) | (51,303) | |||||||
| Depreciation and amortization attributable to Cost of Revenues | (5,925) | (4,010) | (13,557) | (12,209) | |||||||
| Gross profit (IFRS) | 50,862 | 66,640 | (24%) | 170,516 | 175,899 | (3%) | |||||
| Depreciation and amortization attributable to Cost of Revenues | 5,925 | 4,010 | 13,557 | 12,209 | |||||||
| Cost of revenues (exclusive of depreciation and amortization) | 14,064 | 16,373 | 43,480 | 51,303 | |||||||
| Performance media cost | (5,976) | (10,359) | (20,829) | (26,012) | |||||||
| Contribution ex-TAC (Non-IFRS) | 64,875 | 76,664 | (15%) | 206,724 | 213,399 | (3%) | |||||
Reconciliation of Net Income (Loss) to Non-IFRS Net Income
| Three months ended September 30 | Nine months ended September 30 | ||||||||||
| 2022 | 2021 | % | 2022 | 2021 | % | ||||||
| ($ in thousands) | |||||||||||
| Net Income (Loss) | (959) | 11,880 | (108%) | 17,676 | 48,823 | (64%) | |||||
| Acquisition and related items, including amortization of acquired intangibles and restructuring | 9,072 | 6,641 | 18,264 | 20,294 | |||||||
| Stock-based compensation expense | 11,166 | 18,745 | 42,519 | 23,696 | |||||||
| IPO related one-time costs | - | (195) | - | 2,938 | |||||||
| Other Income | - | - | (5,103) | - | |||||||
| Tax effect of Non-GAAP adjustments (1) | (2,390) | (3,793) | (7,488) | (12,235) | |||||||
| Non-IFRS Income | 16,889 | 33,278 | (49%) | 65,868 | 83,516 | (21%) | |||||
| Weighted average shares outstanding—diluted (in millions) (2) | 153.3 | 159.7 | 156.5 | 147.8 | |||||||
| Non-IFRS diluted EPS (in USD) | 0.11 | 0.21 | (47%) | 0.42 | 0.56 | (26%) | |||||
| (1) | Non-IFRS income includes the estimated tax impact from the expense items reconciling between net income (loss) and non-IFRS income |
| (2) | Non-IFRS earnings per share is computed using the same weighted-average number of shares that are used to compute IFRS earnings per share |
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(Unaudited)
| September 30 | December 31 | |||
| 2022 | 2021 | |||
| USD thousands | ||||
| Assets | ||||
| ASSETS: | ||||
| Cash and cash equivalents | 211,571 | 367,717 | ||
| Trade receivables, net | 227,406 | 165,063 | ||
| Other receivables | 25,527 | 18,236 | ||
| Current tax assets | 931 | 981 | ||
| TOTAL CURRENT ASSETS | 465,435 | 551,997 | ||
| Fixed assets, net | 28,707 | 3,464 | ||
| Right-of-use assets | 31,130 | 13,955 | ||
| Intangible assets, net | 398,719 | 208,220 | ||
| Deferred tax assets | 20,083 | 24,431 | ||
| Investment in shares | 25,000 | - | ||
| Other long-term assets | 472 | 672 | ||
| TOTAL NON-CURRENT ASSETS | 504,111 | 250,742 | ||
| TOTAL ASSETS | 969,546 | 802,739 | ||
| Liabilities and shareholders’ equity | ||||
| LIABILITIES: | ||||
| Current maturities of lease liabilities | 15,621 | 7,119 | ||
| Trade payables | 223,621 | 161,812 | ||
| Other payables | 57,424 | 42,900 | ||
| Current tax liabilities | 4,979 | 8,836 | ||
| TOTAL CURRENT LIABILITIES | 301,645 | 220,667 | ||
| Employee benefits | 240 | 426 | ||
| Long term debt | 98,385 | - | ||
| Other long-term liabilities | 4,456 | - | ||
| Long-term lease liabilities | 18,441 | 7,876 | ||
| Deferred tax liabilities | 1,377 | 1,395 | ||
| TOTAL NON-CURRENT LIABILITIES | 122,899 | 9,697 | ||
| TOTAL LIABILITIES | 424,544 | 230,364 | ||
| SHAREHOLDERS’ EQUITY: | ||||
| Share capital | 418 | 442 | ||
| Share premium | 403,685 | 437,476 | ||
| Other comprehensive income (loss) | (10,536 | ) | 698 | |
| Retained earnings | 151,435 | 133,759 | ||
| TOTAL SHAREHOLDERS’ EQUITY | 545,002 | 572,375 | ||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 969,546 | 802,739 | ||
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATION AND OTHER COMPREHENSIVE INCOME
(Unaudited)
| Nine months ended September 30 | Three months ended September 30 | ||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||
| USD thousands | USD thousands | ||||||||||
| Revenues | 227,553 | 239,411 | 70,851 | 87,023 | |||||||
| Expenses: | |||||||||||
| Cost of Revenues (Exclusive of depreciation and amortization shown separately below) | 43,480 | 51,303 | 14,064 | 16,373 | |||||||
| Research and development expenses | 21,818 | 10,916 | 8,237 | 4,108 | |||||||
| Selling and marketing expenses | 59,447 | 55,453 | 18,739 | 18,934 | |||||||
| General and administrative expenses | 48,461 | 41,895 | 15,536 | 23,892 | |||||||
| Depreciation and amortization | 25,516 | 29,945 | 10,159 | 10,033 | |||||||
| Other income, net | (5,103 | ) | (200 | ) | - | - | |||||
| Total Expenses | 193,619 | 189,312 | 66,735 | 73,340 | |||||||
| Operating Profit | 33,934 | 50,099 | 4,116 | 13,683 | |||||||
| Financing income | (1,870 | ) | (394 | ) | (843 | ) | (221 | ) | |||
| Financing expenses | 3,480 | 2,017 | 1,460 | 533 | |||||||
| Financing expenses, net | 1,610 | 1,623 | 617 | 312 | |||||||
| Profit before taxes on income | 32,324 | 48,476 | 3,499 | 13,371 | |||||||
| Tax benefit (expenses) | (14,648 | ) | 347 | (4,458 | ) | (1,491 | ) | ||||
| Profit (Loss) for the period | 17,676 | 48,823 | (959 | ) | 11,880 | ||||||
| Other comprehensive income (loss) items: | |||||||||||
| Foreign currency translation differences for foreign operation | (11,234 | ) | (2,127 | ) | (4,246 | ) | (1,634 | ) | |||
| Total other comprehensive income (loss) | (11,234 | ) | (2,127 | ) | (4,246 | ) | (1,634 | ) | |||
| Total comprehensive income (loss) | 6,442 | 46,696 | (5,205 | ) | 10,246 | ||||||
| Earnings per share | |||||||||||
| Basic earnings (loss) per share (in USD) | 0.12 | 0.35 | (0.01 | ) | 0.08 | ||||||
| Diluted earnings (loss) per share (in USD) | 0.11 | 0.33 | (0.01 | ) | 0.07 | ||||||
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY
(Unaudited)
| Share capital | Share premium | Other comprehensive income | Retained Earnings | Total | |||||||||
| USD thousands | |||||||||||||
| Balance as of January 1, 2022 | 442 | 437,476 | 698 | 133,759 | 572,375 | ||||||||
| Total Comprehensive income (loss) for the period | |||||||||||||
| Profit for the period | - | - | - | 17,676 | 17,676 | ||||||||
| Other comprehensive Income: | |||||||||||||
| Foreign Currency Translation | - | - | (11,234 | ) | - | (11,234 | ) | ||||||
| Total comprehensive Income (loss) for the period | 442 | 437,476 | (10,536 | ) | 151,435 | 578,817 | |||||||
| Transactions with owners, recognized directly in equity | |||||||||||||
| Own shares acquired | (41 | ) | (74,959 | ) | - | - | (75,000 | ) | |||||
| Share based payments | - | 39,109 | - | - | 39,109 | ||||||||
| Exercise of share options | 17 | 2,059 | - | - | 2,076 | ||||||||
| Balance as of September 30, 2022 | 418 | 403,685 | )10,536( | 151,435 | 545,002 | ||||||||
| Balance as of January 1, 2021 | |||||||||||||
| Total Comprehensive income (loss) for the period | 380 | 264,831 | 3,330 | 60,472 | 329,013 | ||||||||
| Profit for the period | - | - | - | 48,823 | 48,823 | ||||||||
| Other comprehensive Income: | |||||||||||||
| Foreign Currency Translation | - | - | (2,127 | ) | - | (2,127 | ) | ||||||
| Total comprehensive Income (loss) for the period | 380 | 264,831 | 1,203 | 109,295 | 375,709 | ||||||||
| Transactions with owners, recognized directly in equity | |||||||||||||
| Revaluation of liability for put option on non- controlling interests | - | - | - | 64 | 64 | ||||||||
| Issuance of shares | 47 | 136,111 | - | - | 136,158 | ||||||||
| Own shares acquired | (3 | ) | (6,640 | ) | - | - | (6,643 | ) | |||||
| Share based payments | - | 25,150 | - | - | 25,150 | ||||||||
| Exercise of share options | 14 | 1,045 | - | - | 1,059 | ||||||||
| Balance as of September 30, 2021 | 438 | 420,497 | 1,203 | 109,359 | 531,497 | ||||||||
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(Unaudited)
| Nine months ended September 30 | |||||
| 2022 | 2021 | ||||
| USD thousands | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
| Profit for the period | 17,676 | 48,823 | |||
| Adjustments for: | |||||
| Depreciation and amortization | 25,516 | 29,945 | |||
| Net financing expense | 1,537 | 1,505 | |||
| Loss (gain) on leases change contracts | 56 | (373 | ) | ||
| Share-based payment | 42,519 | 23,696 | |||
| Gain on sale of business unit | - | (200 | ) | ||
| Tax expenses (benefit) | 14,648 | (347 | ) | ||
| Change in trade and other receivables | 41,282 | 17,912 | |||
| Change in trade and other payables | (73,315 | ) | 1,436 | ||
| Change in employee benefits | (176 | ) | (194 | ) | |
| Income taxes received | 948 | 2,231 | |||
| Income taxes paid | (13,017 | ) | (2,858 | ) | |
| Interest received | 1,685 | 238 | |||
| Interest paid | (298 | ) | (447 | ) | |
| Net cash provided by operating activities | 59,061 | 121,367 | |||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||
| Change in pledged deposits | 1,455 | (102 | ) | ||
| Leases Receipt | 833 | 2,200 | |||
| Acquisition of fixed assets | (1,011 | ) | (2,193 | ) | |
| Acquisition and capitalization of intangible assets | (4,869 | ) | (3,691 | ) | |
| Acquisition of subsidiaries, net of cash acquired | (199,928 | ) | - | ||
| Investment in shares | (25,000 | ) | - | ||
| Proceeds from sale of business unit | 857 | 275 | |||
| Net cash used in investing activities | (227,663 | ) | (3,511 | ) | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||
| Acquisition of own shares | (75,000 | ) | (6,643 | ) | |
| Issuance of shares, net of issuance costs | - | 134,557 | |||
| Payment of call option liability | - | (2,414 | ) | ||
| Proceeds from exercise of share options | 2,076 | 1,059 | |||
| Receipt of long-term debt, net of debt cost | 98,977 | - | |||
| Leases repayment | (7,082 | ) | (8,106 | ) | |
| Net cash provided by financing activities | 18,971 | 118,453 | |||
| Net increase (decrease) in cash and cash equivalents | (149,631 | ) | 236,309 | ||
| CASH AND CASH EQUIVALENTS AS OF THE BEGINNING OF PERIOD | 367,717 | 97,463 | |||
| EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS | (6,515 | ) | (490 | ) | |
| CASH AND CASH EQUIVALENTS AS OF THE END OF PERIOD | 211,571 | 333,282 | |||