Exhibit Number | Description | ||
99.1 | Velti Press Release "Velti Announces a Strong Fourth Quarter and Fiscal Year 2011 With 63% Year on Year Revenue and 95% Adjusted EBITDA Growth, Provides Guidance for a Robust 2012" | ||
99.2 | Investor Presentation "2011 Earnings Slide Deck" |
VELTI PLC | |
(Registrant) | |
By: | /s/ Wilson W. Cheung |
Name: | Wilson W. Cheung |
Title: | Chief Financial Officer |
• | Announces fourth quarter revenue of $87.1 million and full year revenue of $189.2 million, a growth of 52% and 63%, respectively; |
• | Announces fourth quarter Adjusted EBITDA of $43.1 million and full year Adjusted EBITDA of $53.1 million, a growth of 92% and 95%, respectively. |
• | Revenue of $189.2 million, an increase of 63% from fiscal year 2010; |
• | Revenue less 3rd party costs of $135.3 million (resulting in a margin of 72% as a percentage of revenue), an increase of 70% from fiscal year 2010; |
• | Adjusted EBITDA of $53.1 million, compared with $27.2 million in fiscal year 2010, an increase of 95%; |
• | GAAP net loss attributable to Velti of $15.4 million and EPS of $(0.28) compared with a net loss of $15.7 million and EPS of $(0.41) for fiscal year 2010; and |
• | Adjusted net income of $29.0 million and adjusted diluted EPS of $0.50 compared with adjusted net income of $3.0 million and adjusted diluted EPS of $0.07 for 2010. |
• | Mobile advertising revenue of $29.8 million and mobile advertising 3rd party costs of $25.0 million; resultant mobile advertising revenue less 3rd party costs of $4.8 million (16% as a percentage of revenue); |
• | Mobile marketing revenue of $159.4 million, an increase of 45% from fiscal year 2010 and mobile marketing 3rd party costs of $28.9 million; resultant mobile marketing revenue less 3rd party costs of $130.5 million (82% as a percentage of revenue), an increase of 67% from fiscal year 2010; |
• | Velti's platforms provide marketers the ability to reach more than 4.3 billion consumers in 67 countries and our customers have already connected with 1.4 billion consumers; |
• | During 2011, our 1,232 customers executed 4,114 campaigns on our platforms;Americas is the fastest growing region with $41.1 million of 2011 revenue (compared to $9.2 million in 2010), representing 22% of revenues (compared to 8% in 2010); and |
• | Velti increased its SaaS revenue contribution to 73% of total revenue for the fiscal year ended December 31, 2011, compared to 66% for the fiscal year ended December 31, 2010. |
• | Revenue of $87.1 million, an increase of 52% from Q4 2010; |
• | Revenue less 3rd party costs of $68.3 million (resulting in a margin of 78% as a percentage of revenue), an increase of 76% from Q4 2010; |
• | Adjusted EBITDA of $43.1 million, compared with $22.5 million in Q4 2010, an increase of 92%; |
• | GAAP net income attributable to Velti of $25.0 million and diluted EPS of $0.40 compared with net income of $2.0 million and EPS of $0.05 for Q4 2010; |
• | Adjusted net income of $37.3 million and adjusted diluted EPS of $0.59 compared with adjusted net income of $13.5 million and adjusted diluted EPS of $0.34 for Q4 2010; |
• | Mobile advertising revenue of $10.0 million, an increase of 67% from Q4 2010; and |
• | Mobile marketing revenue of $77.2 million, an increase of 50% from Q4 2010. |
• | Completed the acquisitions of both Air2Web and Mobile Interactive Group, significantly expanding Velti's geographic presence in the United States, the United Kingdom and India, and simultaneously expanding the mGage Platform's product offering with mobile customer relationship management, mobile commerce and mobile billing solutions; |
• | Expanded its global presence, opening new offices in high growth markets, including, among others Sao Paolo, Brazil, Dubai, U.A.E. and Istanbul, Turkey. |
• | Achieved numerous new customer wins, including, among others such blue chip brands as Armani Exchange, Bath & Body Works, Budget Rent A Car, MoneySupermarket.com, Motorola and Subway Restaurants; |
• | Facilitated, via the Company's mGage platform a large scale mobile marketing campaign in the United States for T-Mobile to promote "America's Largest 4G network," attracting 1.3 million T-Mobile customers; |
• | Further expanded its emerging and developing markets expertise, successfully completing a 16 country mobile marketing campaign for the Middle East Broadcasting Center; |
• | Established a long-term partnership with Bharti Airtel, the world's 3rd largest telecom operator by subscribers. |
• | Launched 5ml, enabling simple, efficient creation of rich media enabled mobile ad units which utilize the mobile device's native functionality; and |
• | Won the prestigious 2011 OMMA (Online Media, Marketing and Advertising) Global Award for its Integrated Online Campaign for National Geographic's documentary, "The Last Lions," resulting in over a quarter million mobile consumers engaged. |
($ in millions) | Quarter Ending March 31st | Fiscal Year Ending December 31st | |||||||||||
Low | High | Low | High | ||||||||||
Revenue | $ | 44.0 | $ | 48.0 | $ | 280.0 | $ | 295.0 | |||||
Adjusted EBITDA | $ | 3.5 | $ | 5.5 | $ | 80.0 | $ | 88.0 |
• | these non-GAAP financial measures are often used by investors to measure a company's operating performance without regard to items such as interest expense, taxes, depreciation and amortization and foreign exchange gains and losses, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired; and |
• | investors commonly use these non-GAAP financial measures to eliminate the effect of restructuring and share-based compensation expenses, one-time non-recurring expenses, and acquisition-related expenses, which vary widely from company to company and impair comparability. |
• | as a measure of operating performance to assist in comparing performance from period to period on a consistent basis; |
• | as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; |
• | as a primary measure to review and assess the operating performance of our company and management team in connection with our executive compensation plan incentive payments; |
• | and in communications with our board of directors, stockholders, analysts and investors concerning our financial performance. |
For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Reconciliation to adjusted EBITDA: | (in thousands except per share amounts) | ||||||||||||||
Net income (loss) before non-controlling interest | $ | 25,187 | $ | 1,968 | $ | (15,238 | ) | $ | (15,750 | ) | |||||
Adjustments: | |||||||||||||||
Foreign exchange (gains) losses | 774 | 674 | (6,200 | ) | 1,726 | ||||||||||
Non-cash share based compensation (1) | 4,000 | 945 | 27,626 | 6,272 | |||||||||||
Non-recurring and acquisition-related expenses (2) | 4,641 | 6,364 | 16,322 | 6,364 | |||||||||||
Loss from equity method investments (3) | 490 | 2,776 | 1,888 | 2,776 | |||||||||||
Depreciation and amortization - acquisition related | 2,220 | 784 | 4,607 | 1,635 | |||||||||||
Adjusted net income (loss) | $ | 37,312 | $ | 13,511 | $ | 29,005 | $ | 3,023 | |||||||
Loss (gain) from equity method investments - other | (673 | ) | (268 | ) | (1,688 | ) | 1,839 | ||||||||
Depreciation and amortization - other | 5,030 | 3,251 | 16,293 | 10,496 | |||||||||||
Income tax expense (benefit) | 368 | 3,101 | 3,808 | 3,771 | |||||||||||
Interest expense, net | 1,026 | 2,876 | 5,610 | 8,069 | |||||||||||
Other expense (income) | 15 | — | 49 | — | |||||||||||
Adjusted EBITDA | $ | 43,078 | $ | 22,471 | $ | 53,077 | $ | 27,198 | |||||||
Adjusted net loss per share - basic | $ | 0.60 | $ | 0.35 | $ | 0.52 | $ | 0.08 | |||||||
Adjusted net loss per share - diluted | $ | 0.59 | $ | 0.34 | $ | 0.50 | $ | 0.07 | |||||||
Basic shares | 61,718 | 38,297 | 55,865 | 37,933 | |||||||||||
Diluted shares | 62,921 | 39,551 | 58,071 | 40,382 | |||||||||||
For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
(in thousands) | |||||||||||||||
Datacenter and direct project | $ | 568 | $ | 87 | $ | 3,549 | $ | 443 | |||||||
General and administrative | 1,516 | 880 | 11,735 | 2,613 | |||||||||||
Sales and marketing | 1,266 | (321 | ) | 8,288 | 2,231 | ||||||||||
Research and development | 650 | 299 | 4,055 | 985 | |||||||||||
$ | 4,000 | $ | 945 | $ | 27,627 | $ | 6,272 | ||||||||
For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenue: | |||||||||||||||
Software as a service (SaaS) revenue | $ | 62,650 | $ | 40,854 | $ | 139,024 | $ | 77,202 | |||||||
License and software revenue | 19,746 | 12,282 | 36,705 | 26,586 | |||||||||||
Managed services revenue | 4,710 | 4,351 | 13,473 | 12,481 | |||||||||||
Total revenue | 87,106 | 57,487 | 189,202 | 116,269 | |||||||||||
Cost and expenses: | |||||||||||||||
Third-party costs | 18,805 | 18,578 | 53,901 | 36,658 | |||||||||||
Datacenter and direct project costs | 5,734 | 1,942 | 17,952 | 6,312 | |||||||||||
General and administrative expenses | 11,121 | 7,322 | 45,258 | 22,484 | |||||||||||
Sales and marketing expenses | 10,369 | 5,918 | 37,733 | 23,049 | |||||||||||
Research and development expenses | 3,853 | 3,201 | 13,060 | 7,840 | |||||||||||
Acquisition related and other charges | 2,787 | 5,364 | 10,390 | 5,364 | |||||||||||
Depreciation and amortization | 7,250 | 4,035 | 20,900 | 12,131 | |||||||||||
Total cost and expenses | 59,919 | 46,360 | 199,194 | 113,838 | |||||||||||
Income (loss) from operations | 27,187 | 11,127 | (9,992 | ) | 2,431 | ||||||||||
Interest expense, net | (1,026 | ) | (2,876 | ) | (7,389 | ) | (8,069 | ) | |||||||
Gain (loss) from foreign currency transactions | (774 | ) | (674 | ) | 6,200 | (1,726 | ) | ||||||||
Other expenses | (15 | ) | — | (49 | ) | — | |||||||||
Income (loss) before income taxes, equity method investments and non-controlling interest | 25,372 | 7,577 | (11,230 | ) | (7,364 | ) | |||||||||
Income tax expense | (368 | ) | (3,101 | ) | (3,808 | ) | (3,771 | ) | |||||||
Income (loss) from equity method investments | 183 | (2,508 | ) | (200 | ) | (4,615 | ) | ||||||||
Net income (loss) | 25,187 | 1,968 | (15,238 | ) | (15,750 | ) | |||||||||
Net income (loss) attributable to non-controlling interest | 205 | (21 | ) | 130 | (81 | ) | |||||||||
Net income (loss) attributable to Velti | $ | 24,982 | $ | 1,989 | $ | (15,368 | ) | $ | (15,669 | ) | |||||
Net income (loss) attributable to Velti per share: | |||||||||||||||
Basic | $ | 0.40 | $ | 0.05 | $ | (0.28 | ) | $ | (0.41 | ) | |||||
Diluted | $ | 0.40 | $ | 0.05 | $ | (0.28 | ) | $ | (0.41 | ) | |||||
Weighted average number of shares outstanding for use in computing per share amounts: | |||||||||||||||
Basic | 61,718 | 38,297 | 55,865 | 37,933 | |||||||||||
Diluted | 62,921 | 39,551 | 55,865 | 37,933 | |||||||||||
December 31, | December 31, | ||||||
2011 | 2010 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 75,765 | $ | 17,354 | |||
Trade receivables (including related party receivables of $0.5 million and $3.7 million as of December 31, 2011 and 2010), net of allowance for doubtful accounts | 70,968 | 39,114 | |||||
Accrued contract receivables (including related party receivables of $3.8 million and $0 as of December 31, 2011 and 2010) | 98,203 | 33,588 | |||||
Prepayments | 22,664 | 9,533 | |||||
Other receivables and current assets (including related party receivables of $4.4 million and $0.7 million as of December 31, 2011 and 2010) | 53,963 | 28,307 | |||||
Total current assets | 321,563 | 127,896 | |||||
Property and equipment, net | 5,922 | 3,253 | |||||
Intangible assets, net | 91,192 | 45,650 | |||||
Equity investments | 2,270 | 2,328 | |||||
Goodwill | 52,956 | 18,451 | |||||
Other assets | 19,720 | 11,590 | |||||
Total assets | $ | 493,623 | $ | 209,168 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 41,565 | $ | 32,514 | |||
Accrued liabilities | 49,621 | 27,515 | |||||
Deferred revenue and current portion of deferred government grant | 6,217 | 2,849 | |||||
Current portion of acquisition related liabilities | 26,900 | 8,529 | |||||
Current portion of long-term debt and short-term financings (including related party debt of $0 and $500,000 as of December 31, 2011 and 2010) | 2,881 | 50,430 | |||||
Income tax liabilities | 21,686 | 9,875 | |||||
Total current liabilities | 148,870 | 131,712 | |||||
Long-term debt | 6,859 | 19,685 | |||||
Deferred government grant - non-current | 3,162 | 4,335 | |||||
Acquisition related liabilities - non-current | 18,772 | 10,915 | |||||
Other non-current liabilities | 18,469 | 6,252 | |||||
Total liabilities | 196,132 | 172,899 | |||||
Commitments and contingencies (See Note 15) | |||||||
Shareholders' equity: | |||||||
Share capital, nominal value £0.05, 100,000,000 ordinary shares authorized; 61,790,985 and 38,341,760 shares issued and outstanding as of December 31, 2011 and 2010 | 5,148 | 3,397 | |||||
Additional paid-in capital | 346,031 | 50,415 | |||||
Accumulated deficit | (34,726 | ) | (19,358 | ) | |||
Accumulated other comprehensive income | (19,046 | ) | 1,639 | ||||
Total Velti shareholders' equity | 297,407 | 36,093 | |||||
Non-controlling interests | 84 | 176 | |||||
Total equity | 297,491 | 36,269 | |||||
Total liabilities and shareholders' equity | $ | 493,623 | $ | 209,168 | |||
Velti plc Wilson W. Cheung Chief Financial Officer wcheung@velti.com |
Investor Relations Contact: ICR ir@velti.com |
• | Revenue, Margin, Adjusted EBITDA Growth |
• | Organic vs. Inorganic Growth and Margin evolution |
• | Revenue breakdown by type and geography |
• | Customer Statistics |
• | Trade DSO evolution |
• | GAAP, Adjusted EBITDA & Adjusted Net Income reconciliation |
• | Q1 2012 and FY 2012 guidance |
Q1 2012 | FY 2012 | |
Revenue | $ 44.0 - $48.0 million | $ 280.0 - $295.0 million |
Adjusted EBITDA | $ 3.5 - $5.5 million | $ 80.0 - $88.0 million |
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