Investor Overview
November 2013
The Science Behind Influence
FORWARD-LOOKING STATEMENTS
This presentation contains forward-looking statements. All statements other than statements of ...
Overview

2

©2013 YuMe. All rights reserved.
Yesterday
3

3

©2013 YuMe. All rights reserved.
©2013 YuMe. All rights reserved.
Today
4

©2013 YuMe. All rights reserved.
One Screen at Primetime

Multi-Screen Video All the Time

And it’s Happened Before –
Newspaper

5

©2013 YuMe. All rights ...
Media
Strategy

Television

Digital
Video

Reach & Frequency

Data & Analytics

+

6

©2013 YuMe. All rights reserved.
BRAND
ADVERTISERS

REVENUE
$116.7 M

449

288

$68.6 M

242

$51.9 M

36% CAGR
2010

2011

1 Global Online Video Advertisi...
Massive brand advertising market disruption

Proprietary data sciences platform

Platform drives outstanding brand results...
VIDEO ADVERTISING2

TV

$ IN BILLIONS

$15.1

$193B

1

$5.3

DIGITAL

$100B1

1 Magna Global, estimated 2012 global TV & ...
2 Billion

Share of Time Spent1
80%

TV

Smartphones3

DIGITAL

70%

60%

332 Million

50%

Tablets Shipped4

40%

30%

50...
Content

Screen
Devices
per person

TV 1-5

Cable 5-500

Internet >10,000
2000

Data

11

©2013 YuMe. All rights reserved....
BRAND CHALLENGES
Data
Which screen
should I target?

12

©2013 YuMe. All rights reserved.

On which
placements
should my
a...
SOLUTION
LEARN
Placement

EMBED

DELIVER

LEARN
Audience

13

©2013 YuMe. All rights reserved.
Software

Web
PLACEMENT

Connected TV

200 Billion

1,500

Data Points

Properties
Tablet

SURVEY

Smartphone

14

©2013 Y...
PQI Algorithm

Real-Time Inventory Grading
BEST

PLACEMENT
DATA

BETTER

257 Million Global
Unique Viewers1

1 May 2013

1...
Data Sciences

Brand
Segments

Machine Learning
Algorithm

16

©2013 YuMe. All rights reserved.
AUDIENCE AMPLIFIER

PQI Inventory

Brand Segments

17

©2013 YuMe. All rights reserved.
Reach
More
Efficient
Brand Spend
Television

Spend
18

©2013 YuMe. All rights reserved.
16% TV Budget Shift to YuMe
Reaching Adults 35-54
15.9 Million
YuMe

Reach and Frequency Results

Exclusive Online Reach

...
Brand Awareness

1

72.5%

Overall CPG Brand Lift

1

Purchase Intent

1

7x

71.2%
Norm

CONSUMER GOODS

AUTOMOTIVE

1 Da...
Expand share of wallet

Grow customer base

Expand global footprint

Pursue strategic acquisitions

21

©2013 YuMe. All ri...
Ayyappan Sankaran

Tim Laehy

CEO and Co-Founder

CTO and Co-Founder

CFO

Frank Barbieri

Scot McLernon

Corporate Develo...
Financial Overview

23

©2013 YuMe. All rights reserved.
Large Attractive Market

Strong Growth

Operational Leverage

R&D Advantage

Proven Business Model

24

©2013 YuMe. All ri...
ANNUAL REVENUE

QUARTERLY REVENUE

$ IN MILLIONS

$ IN MILLIONS

$116.7
$45.5

$34.3

$68.6

$28.4

$26.6

$25.2 $26.0

$5...
REVENUE
PER ADVERTISER

REVENUE FROM
TOP 20 ADVERTISERS

$ IN 000s

TOTAL
ADVERTISERS

$ IN MILLIONS

$58.6

449

$257
$23...
ANNUAL GROSS PROFIT

QUARTERLY GROSS MARGIN

ANNUAL ADJUSTED EBITDA1

$ IN MILLIONS

$ IN MILLIONS
ADJUSTED EBITDA MARGIN ...
FY 2011

FY 2012

Target Model 2

Gross Profit

38%

46%

46%-48%

Sales & Marketing

34%

27%

17%-18%

General & Adminis...
In Conclusion

29

©2013 YuMe. All rights reserved.
Massive disrupted market

Differentiated data sciences platform

High growth with significant operating leverage

30

©201...
YUME/NYSE

31

©2013 YuMe. All rights reserved.
APPENDIX

32

©2013 YuMe. All rights reserved.
(in thousands)
Net income (loss)

2010

2011

2012

$ (366)

$ (11,089)

$ 6,266

Interest expense

$ 54

$ 164

$ 117

In...
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Yume Investor Overview - November 2013

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Yume Investor Overview - November 2013

  1. 1. Investor Overview November 2013 The Science Behind Influence
  2. 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 forwardlooking 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 September 30, 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. 1 ©2013 YuMe. All rights reserved.
  3. 3. Overview 2 ©2013 YuMe. All rights reserved.
  4. 4. Yesterday 3 3 ©2013 YuMe. All rights reserved. ©2013 YuMe. All rights reserved.
  5. 5. Today 4 ©2013 YuMe. All rights reserved.
  6. 6. One Screen at Primetime Multi-Screen Video All the Time And it’s Happened Before – Newspaper 5 ©2013 YuMe. All rights reserved. Web Yellow Pages & Local Advertising Search
  7. 7. Media Strategy Television Digital Video Reach & Frequency Data & Analytics + 6 ©2013 YuMe. All rights reserved.
  8. 8. BRAND ADVERTISERS REVENUE $116.7 M 449 288 $68.6 M 242 $51.9 M 36% CAGR 2010 2011 1 Global Online Video Advertising Platforms Market, Frost & Sullivan, 2013. 7 ©2013 YuMe. All rights reserved. 50% CAGR 2012 2010 2011 2012
  9. 9. Massive brand advertising market disruption Proprietary data sciences platform Platform drives outstanding brand results High growth with significant operating leverage 8 ©2013 YuMe. All rights reserved.
  10. 10. VIDEO ADVERTISING2 TV $ IN BILLIONS $15.1 $193B 1 $5.3 DIGITAL $100B1 1 Magna Global, estimated 2012 global TV & digital ad spend, June 2013 2 Global Online Video Advertising Platforms Market, Frost & Sullivan, 2013. 9 ©2013 YuMe. All rights reserved. 2012 2016
  11. 11. 2 Billion Share of Time Spent1 80% TV Smartphones3 DIGITAL 70% 60% 332 Million 50% Tablets Shipped4 40% 30% 500 Million 20% Connected TVs5 10% 0% 1995 1 MagnaGlobal, 2012 2 Includes Internet & mobile devices 10 ©2013 YuMe. All rights reserved. 2003 3 Total by 2015, Strategy Analytics 2012 4 Shipped in 2015, IDC 2013 2012 5 Total by 2015, DisplaySearch, 2011
  12. 12. Content Screen Devices per person TV 1-5 Cable 5-500 Internet >10,000 2000 Data 11 ©2013 YuMe. All rights reserved. 2012 Technology
  13. 13. BRAND CHALLENGES Data Which screen should I target? 12 ©2013 YuMe. All rights reserved. On which placements should my ads run? How do I find people receptive to my message?
  14. 14. SOLUTION LEARN Placement EMBED DELIVER LEARN Audience 13 ©2013 YuMe. All rights reserved.
  15. 15. Software Web PLACEMENT Connected TV 200 Billion 1,500 Data Points Properties Tablet SURVEY Smartphone 14 ©2013 YuMe. All rights reserved.
  16. 16. PQI Algorithm Real-Time Inventory Grading BEST PLACEMENT DATA BETTER 257 Million Global Unique Viewers1 1 May 2013 15 ©2013 YuMe. All rights reserved. f (x, y, z) GOOD
  17. 17. Data Sciences Brand Segments Machine Learning Algorithm 16 ©2013 YuMe. All rights reserved.
  18. 18. AUDIENCE AMPLIFIER PQI Inventory Brand Segments 17 ©2013 YuMe. All rights reserved.
  19. 19. Reach More Efficient Brand Spend Television Spend 18 ©2013 YuMe. All rights reserved.
  20. 20. 16% TV Budget Shift to YuMe Reaching Adults 35-54 15.9 Million YuMe Reach and Frequency Results Exclusive Online Reach 6M Total Reach Cross Platform Reach 19 ©2013 YuMe. All rights reserved. +23% Average Frequency 42.7 Million TV +14% +18%
  21. 21. Brand Awareness 1 72.5% Overall CPG Brand Lift 1 Purchase Intent 1 7x 71.2% Norm CONSUMER GOODS AUTOMOTIVE 1 Data from Nielsen Online Brand Effect (formerly Vizu Ad Catalyst) 20 ©2013 YuMe. All rights reserved. TELECOM & ELECTRONICS FINANCIAL ENTERTAINMENT
  22. 22. Expand share of wallet Grow customer base Expand global footprint Pursue strategic acquisitions 21 ©2013 YuMe. All rights reserved.
  23. 23. Ayyappan Sankaran Tim Laehy CEO and Co-Founder CTO and Co-Founder CFO Frank Barbieri Scot McLernon Corporate Development Sales Bryan Everett Michael Hudes Jayant Kadambi Business Development 22 ©2013 YuMe. All rights reserved. Emerging Markets Ed Haslam Marketing Paul Porrini General Counsel
  24. 24. Financial Overview 23 ©2013 YuMe. All rights reserved.
  25. 25. Large Attractive Market Strong Growth Operational Leverage R&D Advantage Proven Business Model 24 ©2013 YuMe. All rights reserved. Dramatic shift in TV viewing patterns Capturing the shift of ad dollars from TV to digital video More advertisers spending more over time 50% revenue CAGR (2010-12) Utilizing inventory quality scoring (PQI) Technology, data & scale provide enhanced results Strong & efficient R&D operations India-based technology development center Demonstrated growth and profitability Blending technology and media
  26. 26. ANNUAL REVENUE QUARTERLY REVENUE $ IN MILLIONS $ IN MILLIONS $116.7 $45.5 $34.3 $68.6 $28.4 $26.6 $25.2 $26.0 $51.9 $36.2 $20.1 $13.6 $15.0 $11.5 2010 25 2011 ©2013 YuMe. All rights reserved. 2012 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q313
  27. 27. REVENUE PER ADVERTISER REVENUE FROM TOP 20 ADVERTISERS $ IN 000s TOTAL ADVERTISERS $ IN MILLIONS $58.6 449 $257 $237 288 $37.2 $213 242 $26.9 2010 26 ©2013 YuMe. All rights reserved. 2011 2012 2010 2011 2012 2010 2011 2012
  28. 28. ANNUAL GROSS PROFIT QUARTERLY GROSS MARGIN ANNUAL ADJUSTED EBITDA1 $ IN MILLIONS $ IN MILLIONS ADJUSTED EBITDA MARGIN % GROSS MARGIN % 39.1% 37.6% 3.1% 46.0% (10.8%) 10.1% 48.4% 47.5% $53.8 45.8% 44.6% 45.3% 45.6% $11.8 42.8% 40.2% $25.8 $1.6 $20.3 37.4% 35.8% 34.3% ($7.4) 2010 2011 2012 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 PQI Rollout 1 See Appendix for a reconciliation of adjusted EBITA to net income (loss) 27 ©2013 YuMe. All rights reserved. 2010 2011 Investment 2012 Proved Model
  29. 29. FY 2011 FY 2012 Target Model 2 Gross Profit 38% 46% 46%-48% Sales & Marketing 34% 27% 17%-18% General & Administration 15% 11% 9%-10% Research & Development 4% 2% 5%-6% (11%) 10% 18%-22% % of Revenue 1 Adjusted EBITDA 2 1 GAAP-based, except adjusted EBITDA 2 Target model assumes stock-based compensation and depreciation and amortization expense of 5%-6% of revenue 28 ©2013 YuMe. All rights reserved.
  30. 30. In Conclusion 29 ©2013 YuMe. All rights reserved.
  31. 31. Massive disrupted market Differentiated data sciences platform High growth with significant operating leverage 30 ©2013 YuMe. All rights reserved.
  32. 32. YUME/NYSE 31 ©2013 YuMe. All rights reserved.
  33. 33. APPENDIX 32 ©2013 YuMe. All rights reserved.
  34. 34. (in thousands) Net income (loss) 2010 2011 2012 $ (366) $ (11,089) $ 6,266 Interest expense $ 54 $ 164 $ 117 Income tax expense $ 111 $ (62) $ 612 Depreciation & amortization expense $ 926 $ 2,097 $ 2,783 Stock based comp expense $ 860 $ 1,468 $ 2,042 Total Adjustments $ 1,951 $ 3,667 $ 5,554 Adjusted EBITDA $ 1,585 $ (7,422) $ 11,820 Plus Adjustments: 33 ©2013 YuMe. All rights reserved.

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