Exhibit Number | Description | ||
99.1 | Velti Press Release "Velti Announces solid First Quarter 2012 financial results: 75% year on year revenue and 260% adjusted EBITDA growth, increases 2012 guidance" | ||
99.2 | Investor Presentation "Q1 2012 Earnings Slide Deck" |
VELTI PLC | |
(Registrant) | |
By: | /s/ Wilson W. Cheung |
Name: | Wilson W. Cheung |
Title: | Chief Financial Officer |
• | Announces first quarter revenue of $51.8 million, growth of 75%, compared to Q1 2011 |
• | Announces first quarter adjusted EBITDA of $4.6 million, growth of 260%, compared to Q1 2011 |
• | Increases annual revenue and adjusted EBITDA guidance and reiterates commitment to achieve break-even operating cash flow by Q3 2012 and positive free cash flow by Q4 2012 |
• | Revenue of $51.8 million, an increase of 75% from Q1 2011, with improving margins; |
• | Revenue less 3rd party costs of $34.9 million, an increase of 85% from Q1 2011, and resultant margin of 67% as percentage of revenue, in comparison to 64% in Q1 2011; |
• | Adjusted EBITDA of $4.6 million, compared with $1.3 million in Q1 2011, an increase of 260%; |
• | GAAP net loss attributable to Velti of $8.8 million and EPS of $(0.14) compared with a net loss of $15.9 million and EPS of $(0.34) for Q1 2011; and |
• | Adjusted net loss of $1.1 million and adjusted EPS of $(0.02) compared with an adjusted net loss of $5.2 million and adjusted EPS of $(0.11) for Q1 2011. |
• | Mobile advertising revenue of $11.2 million and mobile advertising 3rd party costs of $8.8 million; resultant mobile advertising revenue less 3rd party costs of $2.5 million (22% as a percentage of revenue); |
• | Mobile marketing revenue of $40.6 million, an increase of 76% from Q1 2011 and mobile marketing 3rd party costs of $8.1 million; resultant mobile marketing revenue less 3rd party costs of $32.5 million (80% as a percentage of revenue), an increase of 82% from Q1 2011; |
• | Velti's margins across both mobile marketing and advertising continue to increase year-on-year. |
• | Velti's platform provides marketers the ability to reach 4.3 billion consumers in 67 countries and our customers have already connected with 1.4 billion consumers; |
• | The Americas, which we expect to be our largest region globally in 2012, contributed revenues of $13.3 million, compared to $8.2 million in Q1 2011; |
• | Europe, excluding the U.K., contributed $15.2 million, compared to $11.8 million in the same period last year, a solid increase defying a hard macroeconomic environment; |
• | The U.K. contributed $16.0 million, compared to $7.0 million in the same period last year; |
• | Asia and Africa revenue grew to $7.3 million, compared to $2.6 million in Q1 2011; and |
• | For Q1 2012, SaaS revenue contributed 90% of total revenue, in comparison to 79% for Q1 2011; license and managed services revenue fell to 3% and 7%, respectively, vs. 9% and 12% in Q1 2011. |
• | Completed the acquisition of the remaining equity ownership interest of the parent company of CASEE, the largest mobile ad exchange and mobile ad network in China; |
• | Achieved numerous new customer wins and incremental sales into existing customers, across geographies and product segments, including incremental customers in the automotive, retail, quick-serve restaurant, financial, healthcare and consumer packaged goods industries; |
• | Significantly expanded product penetration in the automotive, retail, and financial verticals, furthering Velti's mGage as the industry's only end-to-end platform that combines mobile advertising and mobile marketing to provide mobile customer lifecycle management solutions; |
• | Launched its next generation of private mobile ad exchange, allowing premium publishers to have significantly greater inventory control, generate more revenue and maintain higher quality advertising; |
• | Ended Q1 2012 with five issued patents and 21 pending patent applications on file. |
($ in millions) | Quarter Ending June 30th | Fiscal Year Ending December 31st | ||
Low | High | Low | High | |
Revenue | $55.0 | $59.0 | $283.0 | $296.0 |
Adjusted EBITDA | $4.5 | $7.0 | $81.0 | $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 March 31, | |||||||
2012 | 2011 | ||||||
Reconciliation to adjusted EBITDA: | (in thousands except per share amounts) | ||||||
Net loss before non-controlling interest | $ | (8,839 | ) | $ | (15,923 | ) | |
Adjustments: | |||||||
Foreign exchange gains | (1,375 | ) | (378 | ) | |||
Non-cash share based compensation(1) | 8,608 | 6,562 | |||||
Non-recurring and acquisition-related (income) expenses(2) | (2,301 | ) | 2,282 | ||||
Loss from equity method investments(3) | 133 | 1,458 | |||||
Depreciation and amortization - acquisition related | 2,637 | 795 | |||||
Adjusted net loss | $ | (1,137 | ) | $ | (5,204 | ) | |
Loss (gain)from equity method investments - other | 238 | (493 | ) | ||||
Depreciation and amortization - other | 4,632 | 2,959 | |||||
Income tax expense | 278 | 2,237 | |||||
Interest expense, net | 743 | 1,704 | |||||
Other (income) expense | (146 | ) | 76 | ||||
Adjusted EBITDA | $ | 4,608 | $ | 1,279 | |||
Adjusted net loss per share - basic | $ | (0.02 | ) | $ | (0.11 | ) | |
Adjusted net loss per share - diluted | $ | (0.02 | ) | $ | (0.11 | ) | |
Basic shares | 61,816 | 47,099 | |||||
Diluted shares | 61,816 | 47,099 | |||||
For the Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
(in thousands) | |||||||
Datacenter and direct project | $ | 972 | $ | 628 | |||
General and administrative | 3,660 | 3,244 | |||||
Sales and marketing | 2,392 | 1,876 | |||||
Research and development | 1,584 | 814 | |||||
$ | 8,608 | $ | 6,562 | ||||
For the Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
Revenue: | |||||||
Software as a service (SaaS) revenue | $ | 46,768 | $ | 23,279 | |||
License and software revenue | 1,505 | 2,791 | |||||
Managed services revenue | 3,520 | 3,480 | |||||
Total revenue | 51,793 | 29,550 | |||||
Cost and expenses: | |||||||
Third-party costs | 16,862 | 10,633 | |||||
Datacenter and direct project costs | 7,892 | 2,951 | |||||
General and administrative expenses | 15,132 | 9,468 | |||||
Sales and marketing expenses | 12,753 | 7,993 | |||||
Research and development expenses | 4,684 | 2,830 | |||||
Acquisition related charges | 2,197 | 1,461 | |||||
Depreciation and amortization | 7,269 | 3,754 | |||||
Total cost and expenses | 66,789 | 39,090 | |||||
Loss from operations | (14,996 | ) | (9,540 | ) | |||
Interest expense, net | (743 | ) | (3,483 | ) | |||
Gain (loss) from foreign currency transactions | 1,375 | 378 | |||||
Other expense | 6,174 | (76 | ) | ||||
Gain (loss) before income taxes, equity method investments and non-controlling interest | (8,190 | ) | (12,721 | ) | |||
Income tax expense | (278 | ) | (2,237 | ) | |||
Income (loss) from equity method investments | (371 | ) | (965 | ) | |||
Net income (loss) | (8,839 | ) | (15,923 | ) | |||
Net income (loss) attributable to non-controlling interest | (21 | ) | (51 | ) | |||
Net income (loss) attributable to Velti | $ | (8,818 | ) | $ | (15,872 | ) | |
Net income (loss) attributable to Velti per share: | |||||||
Basic | $ | (0.14 | ) | $ | (0.34 | ) | |
Diluted | $ | (0.14 | ) | $ | (0.34 | ) | |
Weighted average number of shares outstanding for use in computing per share amounts: | |||||||
Basic | 61,816 | 47,099 | |||||
Diluted | 61,816 | 47,099 | |||||
March 31, | December 31, | ||||||
2012 | 2011 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 40,951 | $ | 75,765 | |||
Trade receivables (including related party receivables of $1.2 million and $0.5 million as of March 31, 2012 and December 31, 2011, respectively), net of allowance for doubtful accounts | 85,496 | 70,968 | |||||
Accrued contract receivables (including related party receivables of $2.1 million and $3.3 million as of March 31, 2012 and December 31, 2011, respectively) | 103,313 | 98,203 | |||||
Prepayments | 24,868 | 22,664 | |||||
Other receivables and current assets (including related party receivables of $4.0 million and $5.5 million as of March 31, 2012 and December 31, 2011, respectively) | 56,027 | 49,726 | |||||
Total current assets | 310,655 | 317,326 | |||||
Non-current assets: | |||||||
Property and equipment, net | 11,325 | 5,922 | |||||
Intangible assets, net | 100,320 | 91,192 | |||||
Equity investments | 502 | 2,270 | |||||
Goodwill | 69,841 | 52,956 | |||||
Other assets | 12,429 | 11,865 | |||||
Total non-current assets | 194,417 | 164,205 | |||||
Total assets | $ | 505,072 | $ | 481,531 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 33,421 | $ | 41,565 | |||
Accrued liabilities | 69,352 | 49,621 | |||||
Deferred revenue and current portion of deferred government grant | 6,171 | 6,217 | |||||
Current portion of acquisition related liabilities | 49,961 | 26,900 | |||||
Current portion of long-term debt and short-term financings | 3,228 | 2,881 | |||||
Income tax liabilities | 9,985 | 9,883 | |||||
Total current liabilities | 172,118 | 137,067 | |||||
Non-current liabilities: | |||||||
Long-term debt | 6,397 | 6,859 | |||||
Deferred government grant - non-current | 2,880 | 3,162 | |||||
Acquisition related liabilities - non-current | 4,716 | 18,772 | |||||
Other non-current liabilities | 16,743 | 18,180 | |||||
Total liabilities | 202,854 | 184,040 | |||||
Commitments and contingencies | |||||||
Shareholders' equity: | |||||||
Share capital, nominal value £0.05, 100,000,000 ordinary shares authorized; 61,816,314 and 61,670,396 shares issued and outstanding as of March 31, 2012 and December 31, 2011, respectively | 5,225 | 5,148 | |||||
Additional paid-in capital | 355,267 | 346,031 | |||||
Accumulated deficit | (43,544 | ) | (34,726 | ) | |||
Accumulated other comprehensive (loss) | (14,795 | ) | (19,046 | ) | |||
Total Velti shareholders' equity | 302,153 | 297,407 | |||||
Non-controlling interests | 65 | 84 | |||||
Total equity | 302,218 | 297,491 | |||||
Total liabilities and shareholders' equity | $ | 505,072 | $ | 481,531 | |||
Velti plc Wilson W. Cheung Chief Financial Officer wcheung@velti.com |
Paul W. Clausing Vice President, Finance pclausing@velti.com |
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