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- 2. FORWARD-LOOKING STATEMENTS
This presentation contains forward-looking statements. All statements other than statements of historical fact contained in this
presentation are forward-looking statements. These statements are only current predictions and are subject to known and unknown
risks, uncertainties, assumptions, and other factors that may cause our results or our industry’s actual results, levels of activity,
performance or achievements to be materially different from those anticipated by the forward-looking statements. These forward-
looking statements are subject to a number of risks, including those described under the heading “Risk Factors” in our periodic
reports filed with the U.S. Securities and Exchange Commission, including our Form 10-Q for the quarter ended March 31, 2014, and in
our future filings and reports with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2013. .
Moreover, new risks emerge periodically. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our
business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those
contained in any forward-looking statements we may make. Actual results could differ materially and adversely from those
anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of
future events. Except as required by law, we are under no duty to update or revise any of the forward-looking statements, whether
as a results of new information, future events or otherwise, after the date of this presentation.
In addition to the U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP financial
measures are in addition to, and not a substitute for or superior to measures of financial performance prepared in accordance with
U.S. GAAP. See Appendix for reconciliation between each non-GAAP measure and the most comparable GAAP measure.
This presentation contains statistical data that we obtained from industry publications and reports generated by third parties.
Although we believe that the publications and reports are reliable, we have not independently verified this statistical data.
©2014 YuMe. All rights reserved.1
- 4. ©2013 YuMe. All rights reserved.3
Yesterday
©2014 YuMe. All rights reserved.3
- 6. One Screen at Primetime Multi-Screen Video All the Time
©2014 YuMe. All rights reserved.5
And it’s Happened Before –
Newspaper Web
Yellow Pages &
Local Advertising
Search
- 7. ©2014 YuMe. All rights reserved.6
Media
Strategy
Digital
Video
Television
Reach & Frequency Data & Analytics
+
- 8. ©2014 YuMe. All rights reserved.7
BRAND ADVERTISERS REVENUE
242
288
450
580
2010 2011 2012 2013
33% CAGR 42% CAGR
$51.9
$68.6
$116.7
$151.1
2010 2011 2012 2013
42% CAGR
$ IN MILLIONS
1 GlobalOnline Video Advertising Platforms Market, Frost & Sullivan, 2013.
- 9. Massive brand advertising market disruption
Proprietary data sciences platform
Platform drives outstanding brand results
High growth with significant operating leverage
©2014 YuMe. All rights reserved.8
- 10. 2012 2016
$15.1
VIDEO ADVERTISING
2
$ IN BILLIONS
$5.3
©2014 YuMe. All rights reserved.9
1 Magna Global,estimated 2012 global TV & digital ad spend, June 2013
2 Global Online VideoAdvertising PlatformsMarket, Frost & Sullivan, 2013.
TV
$193B1
$100B1
DIGITAL
- 11. ©2014 YuMe. All rights reserved.10
3 Total by 2015, Strategy Analytics 2012
4 Shipped in 2015, IDC 2013
1 MagnaGlobal, 2012
2 Includes Internet & mobile devices
5 Total by 2015, DisplaySearch, 2011
0%
10%
20%
30%
40%
50%
60%
70%
80%
1995 2003 2012
Share of Time Spent1
TV DIGITAL
Smartphones3
2 Billion
Tablets Shipped4
332 Million
Connected TVs5
500 Million
- 12. Content
TV 1-5 Cable 5-500 Internet >10,000
TechnologyData
©2014 YuMe. All rights reserved.11
Screen
Devices
per person
2000 2012
- 13. ©2014 YuMe. All rights reserved.12
Data
Which screen
should I target?
On which
placements
should my
ads run?
How do I find
people
receptiveto
my message?
BRAND CHALLENGES
- 14. ©2014 YuMe. All rights reserved.13
DELIVEREMBED
LEARN
Placement
LEARN
Audience
SOLUTION
- 15. ©2014 YuMe. All rights reserved.14
1,500
Properties
200 Billion
Data Points
PLACEMENT
SURVEY
Web
Connected TV
Tablet
Smartphone
Software
- 16. ©2014 YuMe. All rights reserved.15
Real-Time InventoryGrading
257 Million Global
Unique Viewers1
PLACEMENT
DATA
f (x, y, z)
PQI Algorithm
BEST
BETTER
GOOD
1 May 2013
- 17. ©2014 YuMe. All rights reserved.16
Brand
Segments
Machine Learning
Algorithm
Data Sciences
- 18. ©2014 YuMe. All rights reserved.17
PQI Inventory
Brand Segments
AUDIENCE AMPLIFIER
- 20. ©2014 YuMe. All rights reserved.19
16% TV Budget Shift to YuMe
Reaching Adults 35-54
Reach and Frequency Results
15.9 Million
YuMe
42.7 Million TV
Exclusive Online Reach 6M
Total Reach +14%
Cross Platform Reach +23%
Average Frequency +18%
- 21. ©2014 YuMe. All rights reserved.20
1 Data fromNielsen Online Brand Effect (formerly Vizu Ad Catalyst)
Brand Awareness
1
Overall CPG Brand Lift
1
Purchase Intent
1
71.2%72.5%
7x
Norm
CONSUMER GOODS AUTOMOTIVE FINANCIAL ENTERTAINMENTTELECOM &
ELECTRONICS
- 22. Expand share of wallet
Expand global footprint
Pursue strategic acquisitions
Grow customer base
©2014 YuMe. All rights reserved.21
- 24. ©2014 YuMe. All rights reserved.23
Proven Business Model
Demonstrated growth and profitability
Blending technologyand media
Operational Leverage
Utilizing inventoryquality scoring (PQI)
Technology, data & scale provide enhanced results
R&D Advantage
Strong & efficientR&D operations
India-based technologydevelopment center
Strong Growth
More advertisers spending more over time
42% revenue CAGR (2010-13)
Large Attractive Market
Dramatic shift in TV viewing patterns
Capturing the shift of ad dollars from TV to digital video
- 25. ©2014 YuMe. All rights reserved.24
$51.9
$68.6
$116.7
$151.1
2010 2011 2012 2013
ANNUAL REVENUE
$ IN MILLIONS
QUARTERLY REVENUE
$ IN MILLIONS
$11.5
$13.6
$15.0
$28.4
$20.1
$25.2 $26.0
$45.5
$26.6
$34.3
$36.2
$54.0
$37.3
Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
- 26. ©2014 YuMe. All rights reserved.25
TOTAL ADVERTISERS REVENUE FROM
TOP 20 ADVERTISERS
$ IN MILLIONS
242
288
449
580
2010 2011 2012 2013
$26.9
$37.2
$58.6
$61.9
2010 2011 2012 2013
REVENUE PER ADVERTISER
$ IN 000s
$213
$237
$257
$255
2010 2011 2012 2013
- 27. ©2014 YuMe. All rights reserved.26
ANNUAL GROSS PROFIT
$ IN MILLIONS
GROSS MARGIN
QUARTERLY GROSS MARGIN
3.1% (10.8%) 10.1%
ANNUAL ADJUSTED EBITDA1
$ IN MILLIONS
Proved
Model
InvestmentPQI
Rollout
1 See Appendix for a reconciliation of adjusted EBITA to net income (loss)
37.6% 46.0% 46.9%
$25.8
$53.8
$70.9
2011 2012 2013
ADJUSTED EBITDA MARGIN
-10.8% 10.1% 5.9%
($7.4)
$11.8
$9.0
2011 2012 2013
PQI Rollout
34.3%
40.2%
42.8%
45.8%
44.6%
48.4%
45.3% 45.6%
47.5%
48.1%
45.9%
Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
- 28. ©2014 YuMe. All rights reserved.27
1 GAAP-based, except adjusted EBITDA
2 Target model assumes stock-based compensation and depreciation and amortization expense of 5%-6% of revenue
Target Model 2
46%-48%
17%-18%
9%-10%
5%-6%
18%-22%
% of Revenue 1
FY 2011 FY 2012 FY 2013
Gross Profit 38% 46% 47%
Sales & Marketing 34% 27% 31%
General & Administration 15% 11% 12%
Research & Development 4% 2% 3%
Adjusted EBITDA
2
(11%) 10% 6%
- 30. High growth with significant operating leverage
Differentiated data sciences platform
Massive disrupted market
©2014 YuMe. All rights reserved.2929
- 33. (in thousands) 2010 2011 2012 2013
Net income (loss) $ (366) $ (11,089) $ 6,266 $ 321
Plus Adjustments:
Interest expense $ 54 $ 164 $ 117 $ 47
Income tax expense $ 111 $ (62) $ 612 $ 670
Depreciation &
amortization expense
$ 926 $ 2,097 $ 2,783 $ 4,103
Stock based comp
expense
$ 860 $ 1,468 $ 2,042 $ 3,834
Total Adjustments $ 1,951 $ 3,667 $ 5,554 $ 8,654
Adjusted EBITDA $ 1,585 $ (7,422) $ 11,820 $ 8,975
©2014 YuMe. All rights reserved.32
