Download as PDF, PPTX
Yu me ir_deck_06jan2015
- 1. ©2013 YUME. ALLRIGHTS RESERVED.1 YuMe. Digital Video Audience Platform.
- 2. FORWARD-LOOKING STATEMENTS This presentationcontains 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 annual report on Form 10-K for the year ended December 31, 2013 and our quarterly report on Form 10-Q for the quarter ended October 31, 2014, and in our future filings and reports with the SEC. 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 reconciliations between each non-GAAP measure and the most comparable GAAP measure contained in our prior reports filed with or furnished to the SEC. This presentation also 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. ©2015 YUME. ALL RIGHTS RESERVED.2
- 3. LEADING END-TO-END DIGITALVIDEO AD PLATFORM COMPANY Delivering Audiences That Matter to TV Brands 3 Unlocking Audience Value Combining the reach and frequency of TV with the software of digital Embedded Software + Data Sciences = Cross-screen, brand-safe campaigns to attentive & receptive audiences
- 4. Massive Global Marketin Transition 4 2012 2016 $15.1 VIDEO ADVERTISING 2 $ IN BILLIONS $5.3 1 Global entertainment and media outlook 2014-2018, PwC, Informa Telecoms & Media 2 Global Online Video Advertising Platforms Market, Frost & Sullivan, 2013. TV $173.7B 1 $133B 1 DIGITAL
- 5. Content TV 1-5 Cable5-500 Internet >10,000 Technology Radical Shifts are Causing Audience Fragmentation 5 Screen Devices Per Person 2000 2014 Data
- 6. Audience Fragmentation PresentsBrand Challenges 6 Advertiser Challenges Greater brand safety risk Inefficient reach & frequency Less attention & receptivity Fragmentation Our embedded software, buyer and seller audience software and data sciences solve three key audience problems TV brand advertisers face in digital video:
- 7. CONSUMER BEHAVIOR YuMe Opportunity:Extend TV Audiences to Digital 7 ONE SCREEN AT PRIMETIME MULTI-SCREEN VIDEO ALL THE TIME
- 8. CONSUMER BEHAVIOR YuMe Opportunity:Extend TV Audiences to Digital 8 ONE SCREEN AT PRIMETIME MULTI-SCREEN VIDEO ALL THE TIME Is changing the way advertisers plan. Convergence in ad spend is already happening. “Video Neutral” Planning
- 9. The Challenge: Television≠ Digital Video Audience Efficiency Still provides efficient scale for branding, in spite of cable and OTT fragmentation Massive content and device fragmentation = inefficient scale for TV brand advertisers Data & Targeting Data & targeting considered imperfect, but sufficient for branding metrics Content and device fragmentation = data fragmentation Legacy cookie-based targeting: built for browser- based direct response/display campaigns, but not viable in app & CTV video environments Audience Attention Primarily long-form content on one screen: less audience distraction Primarily short-form content across multiple screens = more audience distraction Brand Safety Inherently brand-safe: closed ecosystem, curated content No inherent brand safety: open ecosystem, low barriers to entry ≠ Serving TV brand advertisers’ needs in digital video requires a TV- centric approach
- 10. The YuMe Platform– A Complete Audience Ad Solution 10 Publisher Benefits Advertiser Benefits Provides advertisers with marketing software and automation tools to find, target and deliver digital video ads to aggregated, qualified audiences in brand safe environments. YuMe provides the software and tools for publishers to identify, segment and measure their digital video audiences. Data sciences allow publishers to extract more value from their audiences. Both win. Publishers maximize their audience value by clearly defining the audience for advertisers who benefit from having distilled audiences at scale that meet their marketing objectives.
- 11. Purpose Built VideoAudience Tech Stack 11 YuMe Supply Platform YuMe Demand Platform • Multiple buying channels – Direct, programmatic, private marketplaces, exchanges • DSP enabling programmatic procurement of YuMe SDK- enabled inventory as well as third-party SSP inventory • Deal ID management • RTB 2.2 Support • Bidding engine to optimize deals • RFP/IO Workflow Automation • 450+ brand advertisers: global, regional, local • 150+ Ad Sales & Ad operations people in NA, APAC and Europe • Ad serving: Online, Mobile and Smart TV • SSP Integrated with RTB 2.2 compliant exchanges and demand side platforms • Full suite of campaign management, creative, targeting and reporting capabilities • Universal SDKs - Support for AS3, iOS, Android, HTML5 and Embedded C SDKs, MRAID, VPAID and VAST standard compliant • Targeting and reporting across all screens YuMe Data Platform First Party data collection through embedded SDK in video delivery environment Targeting and reporting across all screens. Integration with advertisers and publishers DMP Audience Modeling and Targeting Capability TURNKEY PLATFORM + SERVICES
- 12. POWERING AUDIENCE DISCOVERYAND MEASUREMENT How Our Data Sciences Work 12 YuMe technology unifies data and audience fragmentation Machine Learning Algorithm Data Sciences Leverages disparate audience data silos via advanced data sciences YuMe Audience Segments Delivers highly targetable, segmented audiences at large scale
- 13. YUME AUDIENCE SEGMENTS DataScience Driven Insights 13 18-34 22% 35-54 72% 55+ 6% GenderAge Light 31% Heavy 69% Light Heavy VCR 55% 46% CTR 0.11% 0.16% Performance by Age TV ViewershipAd Receptivity Ad Receptivity by Show VCR 43% 52% 59% 0.12% 0.19% 0.15% 0.00% 0.04% 0.08% 0.12% 0.16% 0.20% 0% 10% 20% 30% 40% 50% 60% 70% 18-34 35-54 55+ CTR VCR VCR CTR 45% 56% 77% 41% 75% 65% 54% Big Bang Theory How I Met Your Mother Modern Family Two and a Half Man The Millers Other Comedy Programs Comedy Genre % Who Viewed Shows 19% 13% 9% 6% 3% 1% 0% 5% 10% 15% 20% 25% Big Bang Theory How I Met Your Mother Other Comedy Programs Two and a Half Man Modern Family The Millers 62% 38% Male Female Two and a Half Men Two and a Half Men
- 14. BEHIND THE INFLUENCE MeasuringBrand Impact YuMe partnered with a third-party research partner to measure increases in: attitude, awareness, favorability, intent and preference based on the exposures to YuMe placements More than 145 brand studies across 9 categories completed since 2010 14 RESULTS Brand Awareness 1 Overall CPG Brand Lift 1 Purchase Intent 1 71.2%72.5% 7x Norm 1 Data from Nielsen Online Brand Effect (formerly Vizu Ad Catalyst)
- 15. 100% 100% 67% 60% 26% The Power ofTelevision – Magnified Cross-platform exposure drives superior brand-lift compared to TV alone for AdAge 100 Advertisers. 15 43% 24% 20% 15% 12% 34% 15% 10% 9% 6% General Recall Brand Recall Message Recall Likeability Purchase Intent Exposed To YuMe Campaign + TV Exposed to TV Ads Only
- 16. The Multi-Screen Multiplier ©2015YUME. ALL RIGHTS RESERVED.16 AD RECALL BRAND X OPINION CHANGE 25% 21% 11% 26% 51% 41% 39% 61% 25% 36% 50% 14% 2% More negative (Net) Neutral - No change in opinion More positive Much more positive CONNECTED TV MOBILE ONLINE MULTI-DEVICES Measuring brand lift across screens on an ongoing basis shows that single platform offerings simply leave performance on the table for brands.
- 17. 25% 21% 11% 26% 51% 41% 39% 61% 25% 36% 50% 14% 2% More negative(Net) Neutral - No change in opinion More positive Much more positive The Multi-Screen Multiplier ©2015 YUME. ALL RIGHTS RESERVED.17 AD RECALL BRAND X OPINION CHANGE CONNECTED TV MOBILE ONLINE MULTI-DEVICES Measuring brand lift across screens on an ongoing basis shows that single platform offerings simply leave performance on the table for brands. 76% 62% 50% 87% 25% 21% 11% 26% 51% 41% 39% 61% TOTAL POSITIVE AD RECALL
- 18. Launch an inventory gradingsystem that identifies optimal ad placements 2012 CONTINUING TO PAVE THE WAY From Innovation to Industry Standard 18 Offer cross-platform ad solutions 2006 to 2008 Introduce a unit that synchronizes an in- stream video ad with an in-banner ad as well as the first to pull in a XML feed into an ad unit 2009 Launch dynamic ads 2007 Introduce iGRPs via Mindshare partnership 2009 Integrate 1st party data targeting and measurement capabilities 2013 First video solution to: FROM DAY 1 100% In-Stream Placements Professionally Produced Content Always Brand-Focused 100% Visibility Launch a Programmatic Video Branding SolutionTM--Video Reach 2014 Run interactive InVideo overlay ads 2008 Be embedded into internet- connected TVs 2011 Offer volume video ads in iPhone apps 2010 Establish industry- first Traffic Quality Unit focused on creating best-in- breed practices 2014 20082007 2009 2010 201320122011 2014
- 19. INTRODUCTION YuMe Company Profile 19 Clientsand Partners FOUNDED IN 2004 PUBLIC COMPANY LISTED ON NYSE ORIGINAL INVESTORS ACCEL Partners BV Capital Intel Capital West Summit Capital DAG Ventures Menlo Ventures Samsung Venture Investment Khosla Ventures Translink Capital YuMe operates the largest independent digital video brand advertising platform across four screens: smartphones, tablets, PCs and Connected TVs. Operations in North America, Europe and Asia. Expanded to China and Latin America in 2014. 500+ Employees Global brands and media companies relying on YuMe technology in video ad serving, targeting, audience sciences, creative services and brand strategy. AWARD WINNING TEAM AND TECHNOLOGY Connected TV Awards 2013 Digiday 2012 Best Video Ad Network Advertiser Perceptions Highest Rated Media iab Rising Stars Award
- 20. 20 COMPANY OVERVIEW Global Officesand Ongoing Expansion 2014 Total Headcount: 500+ Employees Offices: Redwood City HQ New York, Chicago, Los Angeles, Boston, Dallas, Detroit, Atlanta, Miami, Toronto, Mexico City, Pune, Chennai, London, Paris, Madrid, Hamburg, Stockholm, Hong Kong, Shanghai
- 21. Financial Highlights 21 Proven BusinessModel US business profitable on an adjusted-EBITDA basis Operational Leverage Sales team investments expected to peak in 2014 Efficient R&D operations from India-based tech centers R&D Advantage Strong & efficient R&D operations India-based technology development center Sustained Gross Margin Illustrates platform’s strength & differentiation Already consistently within the long-term operating model Strong Advertiser Growth Early days of ad dollars from TV to digital video Seeding the clouds for long-term growth
- 22. Revenue and aEBITDATrend 22 Note: Unaudited
- 23.
- 24. Long-Term Operating Model 24 TargetModel 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% 1 GAAP-based, except adjusted EBITDA 2 Target model assumes stock-based compensation and depreciation and amortization expense of 5%-6% of revenue
- 25. ©2013 YUME. ALLRIGHTS RESERVED.25 Thank you.