Reports Record Second Quarter Net Income of
$4.4 Million and aEBITDA of $7.6 Million
Reports Quarterly Total Revenue Growth of
5%
Declares Quarterly Cash Dividend of $0.03
per Share
YuMe, Inc. (NYSE: YUME), a proven partner for video advertising
leadership and innovation, today announced its financial results
for the second quarter ended June 30, 2017 and a quarterly cash
dividend of $0.03 per share of common stock.
“We are very pleased to report that in the second quarter, we
returned to revenue growth, significantly reduced operating
expenses, generated positive net income and exceeded our prior
adjusted EBITDA guidance. We continue to benefit from the strength
in our programmatic business and are solidifying our position
through industry leading innovation such as our connected TV
initiatives,” said Paul Porrini, Chief Executive Officer. “Our
continued focus on operational efficiency helped make the first
half of 2017 the most profitable first half of the year in the
Company’s history. Our second quarter, and year to date results
show that we can tune our expense profile to achieve profitability
while executing against our financial and strategic goals. We are
building on this momentum and our third quarter outlook combined
with our quarterly dividend payments illustrate our continued
confidence in the financial strength of the business and our
commitment to delivering shareholder value.”
Financial highlights for second quarter
2017:
- Revenue of $42.8 million, compared to
$40.7 million in the second quarter of 2016 (Q2 2016);
- Revenue from top 20 advertising
customers of $21.9 million;
- Mobile, tablet and connected television
impressions accounted for 64% of revenue;
- Programmatic revenue1 was $11
million;
- Gross margin of 50.9%, compared to
50.6% in Q2 2016;
- Net income of $4.4 million, or $0.12
per diluted share, compared to net loss of $2.5 million, or $0.07
per diluted share, in Q2 2016;
- Adjusted EBITDA2 of $7.6 million,
compared to adjusted EBITDA of $2.3 million in Q2 2016;
- $73.9 million in cash, cash equivalents
and marketable securities and no debt as of June 30, 2017.
Dividends
In June 2017, YuMe declared a special cash dividend of $1.00 per
share and a quarterly cash dividend of $0.03 per share. Both
dividends totaled $35.6 million and were paid on July 7, 2017 to
stockholders of record as of the close of business on July 3,
2017.
YuMe’s Board of Directors has declared a quarterly cash dividend
of $0.03 per share of common stock to be paid on October 9, 2017 to
all common stockholders of record as of September 29, 2017. Future
dividends are subject to the determination of YuMe’s Board of
Directors.
Strategic Alternatives
Update
YuMe continues to work with Deutsche Bank as its
financial advisor to assist in evaluating the Company’s
value-enhancing initiatives. The Company will provide an update to
this process when it determines that further disclosures are
appropriate.
1 Programmatic revenue relates to programmatic buying through
the automated purchase of digital advertising inventory through a
combination of machine-based transactions, data and algorithms.
2 Adjusted EBITDA is a non-GAAP financial measure that we
calculate as net income (loss), adjusted to exclude income taxes,
interest expense, depreciation and amortization, stock-based
compensation and certain non-recurring expenses when they occur
including proxy contest, asset impairment and restructuring costs.
We believe that adjusted EBITDA provides useful information to
investors in understanding and evaluating our operating results in
the same manner as management and the board of directors. This
non-GAAP information is not necessarily comparable to non-GAAP
information of other companies. Non-GAAP information should not be
viewed as a substitute for, or superior to, net income prepared in
accordance with GAAP as a measure of our profitability or
liquidity. Users of this financial information should consider the
types of events and transactions for which adjustments have been
made.
Business Outlook
For the third quarter of 2017, the Company expects adjusted
EBITDA in the range of $3.5 million to $5.0 million.
Conference Call and Webcast
Information
Senior management will host a conference call at 5:00 p.m. ET
today to discuss the Company’s results. Investors may access the
live call by dialing (866) 393-4306 or (734) 385-2616. A replay
will be available through Tuesday, August 15 at (855) 859-2056 or
(404) 537-3406. (Conference ID: 47801413). A live and archived
Webcast of the call will be available at http://investors.yume.com.
About YuMe
YuMe, Inc. (NYSE: YUME) is a leading provider of global
audience technologies, curating relationships between brand
advertisers and consumers of premium video content across a growing
range of connected devices. Combining data-driven technologies with
deep insight into audience behavior, YuMe offers brand advertisers
end-to-end marketing software that establishes greater brand
resonance with engaged consumers. It is the evolution of brand
advertising for an ever-expanding video ecosystem. YuMe is
headquartered in Redwood City, California, with worldwide
offices. For more information, visit YuMe.com/pr,
follow @YuMeVideo and
like YuMe on Facebook.
YuMe is a trademark of YuMe, Inc. All other brands, products or
service names are or may be trademarks or service marks of their
respective owners.
Forward-Looking
Statements
This press release, conference call and webcast of the same date
contain forward-looking statements regarding future events and our
future financial performance. All statements other than statements
of historical fact are statements that could be forward-looking
statements, including, but not limited to our Business Outlook,
statements about our growth strategy, the impact of restructuring
and cost saving initiatives, potential merger and acquisition
activity, the impact of management changes, our operating results,
financial goals for 2017, market trends, and quotations from
management. These forward-looking statements are subject to risks
and uncertainties, assumptions and other factors that could cause
actual results and the timing of events to differ materially from
future results that are expressed or implied in our forward-looking
statements. Factors that could cause or contribute to such
differences include adaptation to new, changing and competitive
technologies and trends in a dynamic market, changes to our
management, competitive trends in a dynamic market, our history of
net losses and limited operating history, which make it difficult
to evaluate our prospects, our fluctuating quarterly results of
operations, risks associated with margin shifts in the industry and
our dependence on a limited number of customers in a highly
competitive industry. These and other risk factors are discussed
under “Risk Factors” in YuMe’s Annual Report on Form 10-K for the
year ended December 31, 2016 and our Quarterly Report on Form 10-Q
for the quarter ended March 31, 2017 that have been filed with the
U.S. Securities and Exchange Commission (the “SEC”), and in our
future filings and reports with the SEC. The forward-looking
statements in this press release are based on information available
to YuMe as of the date hereof, and YuMe assumes no obligation to
update any forward-looking statements.
Non-GAAP Financial
Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with U.S. generally accepted
accounting principles (“GAAP”), we report in this press release and
on our webcast adjusted EBITDA, which is a non-GAAP financial
measure. We calculate adjusted EBITDA as net income (loss),
excluding income taxes, interest expense, depreciation and
amortization, stock-based compensation and certain non-recurring
expenses when they occur including proxy contest, asset impairment
and restructuring costs. We believe that adjusted EBITDA provides
useful information to investors in understanding our operating
results in the same manner as management and the board of
directors. This non-GAAP information is not necessarily comparable
to non-GAAP information presented by other companies. Non-GAAP
financial information should not be viewed as a substitute for, or
superior to, financial information prepared in accordance with
GAAP. Users of this non-GAAP financial information should consider
the types of events and transactions for which adjustments have
been made.
We have included adjusted EBITDA in this release and on our
webcast because it is a key measure we use to understand and
evaluate our core operating performance and trends, to prepare and
approve our annual budget and to develop short- and long-term
operational plans. In particular, we believe that adjusted EBITDA
can provide a useful measure for period-to-period comparisons of
our operating results because it excludes some expenses that may
mask underlying trends.
In the tables following the financial statements attached to
this press release, the non-GAAP financial measures used in this
press release are reconciled to the most directly comparable GAAP
financial measures.
YuMe, Inc.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
(Unaudited)
As of
June 30,
2017
As of
December 31,
2016
Assets (1) Current assets: Cash and cash equivalents $
58,185 $ 34,700 Marketable securities 15,720 25,751 Accounts
receivable, net 46,438 51,171 Prepaid expenses and other current
assets 3,599 3,591 Total current assets 123,942
115,213 Marketable securities, long-term — 5,241 Property,
equipment and software, net 13,436 11,726 Goodwill 3,902 3,902
Restricted cash, non-current 725 710 Deposits and other assets
606 587 Total assets $ 142,611 $ 137,379
Liabilities and stockholders’ equity Current liabilities:
Accounts payable $ 4,458 $ 10,775 Dividends payable 35,562 —
Accrued digital media property owner costs 17,807 16,385 Accrued
liabilities 12,828 12,192 Deferred revenue 234 132 Capital leases,
current 1,384 8 Total current liabilities 72,273
39,492 Capital leases, non-current 10 13 Other long-term
liabilities 690 631 Total liabilities 72,973
40,136 Stockholders’ equity: Common stock 37 36
Treasury stock (8,247 ) (7,105 ) Additional paid-in-capital 127,458
159,550 Accumulated deficit (49,316 ) (54,888 ) Accumulated other
comprehensive loss (294 ) (350 ) Total stockholders’
equity 69,638 97,243 Total liabilities and
stockholders’ equity $ 142,611 $ 137,379
(1) The condensed consolidated balance sheet as of December 31,
2016 was derived from audited financial statements.
YuMe, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except per share
data)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2017 2016 2017 2016
Revenue $ 42,818 $ 40,675 $ 79,272 $ 79,908 Cost of revenue(1)
21,045 20,111 38,446 40,592 Gross
profit 21,773 20,564 40,826 39,316
Operating expenses: Sales and marketing(1) 11,155 13,639 21,745
27,414 Research and development(1) 2,214 2,947 4,306 5,612 General
and administrative(1) 4,167 6,216 9,499
12,077 Total operating expenses 17,536 22,802
35,550 45,103 Income (loss) from operations 4,237
(2,238 ) 5,276 (5,787 ) Interest and other
income (expense), net Interest expense (2 ) (2 ) (4 ) (5 ) Other
income (expense), net 375 (181 ) 677
(172 ) Total interest and other income (expense), net 373
(183 ) 673 (177 ) Income (loss) before income
taxes 4,610 (2,421 ) 5,949 (5,964 ) Income tax expense 243
65 377 120 Net income (loss) $ 4,367 $ (2,486
) $ 5,572 $ (6,084 ) Net income (loss) per share: Basic $
0.13 $ (0.07 ) $ 0.16 $ (0.18 ) Diluted $ 0.12 $ (0.07 ) $ 0.16 $
(0.18 )
Weighted-average shares used to compute
net income (loss) per share:
Basic 34,281 34,648 33,983 34,585
Diluted 35,009 34,648 34,775 34,585
Cash dividends declared per share $ 1.03 $ — $ 1.03 $ —
(1) Stock-based compensation included
above (in thousands, unaudited):
Three Months Ended June 30,
Six Months Ended June 30,
2017
2016
2017
2016
Cost of revenue
$
32
$
50
$
69
$
95
Sales and marketing
388
728
891
1,447
Research and development(1)
179
319
393
620
General and administrative
613
1,232
1,400
2,339
Total employee stock-based
compensation
$
1,212
$
2,329
$
2,753
$
4,501
YuMe, Inc.
RECONCILIATION OF NON-GAAP FINANCIAL
INFORMATION
(In thousands)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2017 2016 2017 2016 Net
income (loss) $ 4,367 $ (2,486 ) $ 5,572 $ (6,084 ) Adjustments:
Interest expense 2 2 4 5 Income tax expense 243 65 377 120
Depreciation and amortization expense 1,794 1,708 3,190 3,408
Stock-based compensation expense 1,212 2,329 2,753 4,501 Proxy
contest expenses — 658 — 815 Total
Adjustments 3,251 4,762 6,324 8,849
Adjusted EBITDA $ 7,618 $ 2,276 $ 11,896 $ 2,765
YuMe, Inc.
GAAP TO NON-GAAP RECONCILIATION OF
THIRD QUARTER FISCAL 2017 BUSINESS OUTLOOK
(In thousands)
(Unaudited)
Range for Three Months
EndingSeptember 30, 2017
Low High Business outlook: GAAP net
income $ 225 $ 1,625 Estimated adjustments: Interest expense 2 2
Income tax expense 200 250 Depreciation and amortization expense
1,886 1,911 Stock-based compensation expense 1,187 1,212 Total
estimated adjustments 3,275 3,375 Business outlook:
Non-GAAP adjusted EBITDA $ 3,500 $ 5,000
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170808006339/en/
Investor RelationsYuMe, Inc.Frank Barbieri,
650-503-7912ir@yume.com
YUME INC (NYSE:YUME)
Historical Stock Chart
From Mar 2024 to Apr 2024
YUME INC (NYSE:YUME)
Historical Stock Chart
From Apr 2023 to Apr 2024