Revenue increases 42% year-over-year to
$13.6 million driven by robust CTV growth of 169%
Telaria, Inc. (NYSE:TLRA), the complete software platform for
publishers to manage and monetize premium video advertising, today
announced financial results for the quarter ended March 31,
2019.
“The momentum that we saw last quarter continued into Q1, driven
by our focus on expanding our CTV platform,” said Mark Zagorski,
Telaria CEO. “Our results were strong and demonstrate the success
we’ve had tapping into increased advertiser demand for CTV while
expanding the supply of premium CTV inventory that is available
programmatically via the Telaria platform. We continue to execute
our strategy to build market-leading, proprietary CTV advertising
technology and create brand safe, transparent, programmatic OTT
advertising opportunities across all screens. And, as more
consumers cut the cord and publishers embrace programmatic
technology at an increasing pace, we continue to believe that
ad-supported OTT has significant long-term growth potential.”
First Quarter 2019 Highlights:
- Revenue of $13.6 million, up 42%
year-over-year
- Gross profit of $11.2 million, up 30%
year-over-year
- Loss from continuing operations of
$(4.3) million, compared to $(6.1) million in prior year
- Adjusted EBITDA(1) of $(2.4) million,
compared to $(3.3) million in the prior year
(1) Adjusted EBITDA is a non-GAAP financial measure. Please see
the discussion in the section called “Non-GAAP Financial Measures”
and the reconciliation included at the end of this press
release.
First Quarter 2019 Business Highlights:
- CTV revenue increased to $5.2 million,
up 169% year-over-year, and represented 38% of quarterly revenue,
up from 33% of quarterly revenue in Q4 2018
- Five of the top seven virtual MVPDs now
use Telaria's platform
- Launched market-leading transparency
technology
- Expanded leadership team by hiring
Paige Bilins as Chief Product Officer
First Quarter Results Summary
(in millions, except per share amounts), (unaudited)
Three Months Ended March 31, 2019
2018
% Change
Revenue $ 13.6 $ 9.6 42 % Gross profit $ 11.2 $ 8.6 30 %
Loss from continuing operations, net
ofincome taxes
$ (4.3 ) $ (6.1 ) 30 % Adjusted EBITDA $ (2.4 ) $ (3.3 ) 28 %
Loss from continuing operations, net
ofincome taxes per share
$ (0.10 ) $ (0.12 ) 17 %
Guidance
Based on information available as of May 9, 2019, the Company
has increased its full year 2019 outlook and now expects the
following:
Second Quarter and Full Year 2019 Outlook
Q2 2019 Full Year 2019 Revenue
$15.5 - $16.5 million $66.0 - $70.0 million Adjusted EBITDA (1)
$(1.0) - $0.0 million $2.0 - $5.0 million
(1) Adjusted EBITDA is a non-GAAP financial measure. Please see
the discussion in the section called “Non-GAAP Financial
Measures”
Q1 2019 Financial Results Webcast: The Company will host
a conference call at 8:00 AM ET today to discuss its results. The
conference call can be accessed toll-free at (877) 407-9039 or
(201) 689-8470 (Toll/International). The call will also be
broadcast simultaneously at https://telaria.com. Following completion of the
call, a recorded replay of the webcast will be available on
Telaria’s website. To listen to the telephone replay, call
toll-free (844) 512-2921 or (412) 317-6671 (Toll/International),
replay Pin #: 13689776. The telephone replay will be available from
11:00 AM ET May 9, 2019 through 11:59 PM ET May 16, 2019.
Additional investor information can be accessed at https://investor.telaria.com.
About Telaria
Telaria, Inc. (NYSE: TLRA), is a complete software platform to
manage premium video advertising. We engineer the most robust suite
of analytics, automated decisioning, and integrated programmatic
and direct monetization tools in the industry. Global publishers
require total command of their business; Telaria's independent
solution empowers unbiased decisions for the best revenue outcomes.
Telaria operates worldwide across North America, EMEA, LATAM and
APAC.
“Safe Harbor" Statement: This press release contains
forward-looking statements that involve risks, uncertainties,
assumptions and other factors that could cause actual results and
the timing of certain events to differ materially from those set
forth in or implied by such forward-looking statements. All
statements other than statements of historical fact are
forward-looking statements, including statements related to 2019
second quarter and full year financial guidance and statements
concerning the Company’s growth or any markets in which it
operates, including CTV and OTT. Important factors that could cause
actual results or the timing of events to differ materially from
those set forth in or implied by any forward-looking statements
include, without limitation, risks and uncertainties associated
with: the company’s continuing development of its business model;
unfavorable conditions in the global economy or reductions in
digital advertising spend; the company’s ability to effectively
innovate and adapt to rapidly changing technology and client needs;
increased competition as well as innovations by new and existing
competitors; expansion of the online video advertising market; the
company’s ability to attract new demand partners and maintain
relationships with current demand partners; the company’s ability
to increase or maintain spend from existing demand partners; the
impact of the disposition of the company’s buyer platform on the
company’s operations and financial results; growth of OTT and
connected TV markets; risks of entering new markets in which we
have limited or no experience and difficulty adapting our solutions
for new markets; the company’s ability to attract sellers of
premium video advertising inventory to its platform and secure
inventory on terms that are favorable to it; the impact of
increased transparency in programmatic transactions executed
through our platform; the company’s ability to detect fraudulent or
malicious activity and ensure a high level of brand safety for its
clients; identifying, attracting and retaining qualified personnel;
defects, errors or interruptions in the company’s solutions; the
company’s ability to collect,use and process data to deliver its
solutions; the impact of tools that block the display of video ads;
the effect of legal, regulatory developments and industry standards
regarding internet privacy and other matters; maintaining,
protecting and enhancing the company’s intellectual property; costs
associated with defending intellectual property infringement,
securities litigation and other claims; future opportunities and
plans, including the uncertainty of expected future financial
performance and results; as well as other risks and uncertainties
detailed from time-to-time under the caption “Risk Factors” and
elsewhere in the company’s filings with the U.S. Securities and
Exchange Commission, including its Annual Report on Form 10-K for
the year ended December 31, 2018, filed with the U.S. Securities
and Exchange Commission on March 19, 2019.
Forward-looking statements are based on current expectations and
beliefs and are not guarantees of future performance or events.
Investors are cautioned not to place undue reliance on any
forward-looking statements. Furthermore, forward-looking statements
speak only as of the date on which they are made, and, except as
required by law, the Company disclaims any obligation to update
these forward-looking statements to reflect future events or
circumstances.
(1) Non-GAAP Financial Measures: To supplement its
consolidated financial statements, which are prepared and presented
in accordance with U.S. generally accepted accounting principles
(“GAAP”), the Company reports Adjusted EBITDA, which is a non-GAAP
financial measure. The Company defines Adjusted EBITDA as our loss
from continuing operations, net of income taxes, before
depreciation and amortization expense, total interest and other
income (expense), net and provision for income taxes, and as
adjusted to eliminate the impact of non-cash stock-based
compensation expense, expenses for prior corporate facilities
required to be recorded as operating expenses as a result of the
adoption of certain accounting standards, acquisition related
costs, executive severance, retention and recruiting costs,
expenses for transitional services and other adjustments. We use
Adjusted EBITDA for financial and operational decision-making and
as a means to evaluate period-to-period comparisons. We believe
that the use of Adjusted EBITDA provides useful information about
our operating results, enhances the overall understanding of our
past financial performance and future prospects, and allows for
greater transparency with respect to a key metric that is used by
management in its financial and operational decision making.
Non-GAAP financial measures should be considered in addition to
results and guidance prepared in accordance with GAAP, but should
not be considered a substitute for, or superior to, GAAP results.
With respect to our expectations under “Guidance” above,
reconciliation of Adjusted EBITDA guidance to the closest
corresponding GAAP measure is not available without unreasonable
efforts on a forward-looking basis due to the high variability,
complexity and low visibility with respect to the costs and charges
excluded from this non-GAAP measure, in particular, the measures
and effects of stock-based compensation expense specific to equity
compensation awards that are directly impacted by unpredictable
fluctuations in our stock price. We expect the variability of these
costs and charges to have a significant, and potentially
unpredictable, impact on our future GAAP financial results.
Exhibit A Telaria, Inc. Condensed
Consolidated Balance Sheets (in thousands)
March 31, December 31, 2019
2018 (unaudited) Assets Current assets: Cash
and cash equivalents $ 34,963 $ 47,659
Accounts receivable net of allowance for
doubtful accounts of $1,205 and $982 as ofMarch 31, 2019 and
December 31, 2018 respectively.
88,861 104,387 Prepaid expenses and other current assets 3,384
3,381 Total current assets 127,208 155,427
Long-term assets:
Operating lease right-of-use asset, net of
amortization
25,464 —
Property and equipment net of accumulated
depreciation of $2,939 and $2,698 as ofMarch 31, 2019 and December
31, 2018, respectively
2,528 2,789 Intangible assets, net 4,115 4,379 Goodwill 9,419 9,478
Deferred tax assets 108 193 Other assets 2,299 2,440
Total long-term assets 43,933 19,279 Total assets $
171,141 $ 174,706
Liabilities and
stockholders’ equity Current liabilities: Accounts payable and
accrued expenses $ 84,093 $ 109,991 Operating lease liability 4,653
— Deferred rent — 797 Contingent consideration on acquisition —
1,500 Deferred income — 69 Other current liabilities 76 817
Total current liabilities 88,822 113,174 Long-term
liabilities: Operating lease liability, net of current portion
27,119 — Deferred rent, net of current portion — 5,759 Deferred tax
liabilities 1,134 1,153 Other non-current liabilities 238
225 Total liabilities 117,313 120,311
Commitments and contingencies Stockholders’ equity: Common stock 4
4 Treasury stock (31,980 ) (31,980 ) Additional paid-in capital
297,152 293,154 Accumulated other comprehensive loss (1,181 ) (949
) Accumulated deficit (210,167 ) (205,834 ) Total stockholders’
equity 53,828 54,395 Total liabilities and
stockholders’ equity $ 171,141 $ 174,706
Telaria, Inc.
Condensed Consolidated Statements of
Operations
(in thousands, except share and per
share data)
(unaudited)
Three Months Ended March
31,
2019 2018 Revenue $ 13,622 $ 9,601 Cost of
revenue 2,451 1,028 Gross profit 11,171 8,573
Operating expenses: Technology and development(1)
2,855 2,308 Sales and marketing(1) 6,347 6,293 General and
administrative(1) 6,836 4,998 Depreciation and amortization 439
1,801 Total operating expenses 16,477 15,400
Loss from continuing operations (5,306 ) (6,827 ) Interest
and other income (expense), net: Interest expense (3 ) (3 ) Other
income, net 983 717 Total interest expense and other
income, net 980 714 Loss from continuing
operations before income taxes (4,326 ) (6,113 ) Provision
for income taxes 7 14 Loss from continuing
operations, net of income taxes (4,333 ) (6,127 ) Gain on
sale of discontinued operations, net of income taxes — 26
Net loss $ (4,333 ) $ (6,101 )
Net
loss per share — basic and diluted: Loss from continuing
operations, net of income taxes $ (0.10 ) $ (0.12 ) Net loss $
(0.10 ) $ (0.12 )
Weighted-average number of shares of
common stock outstanding: Basic and diluted 44,831,453
51,827,685
(1) Stock-based compensation expenses included above:
Three Months Ended March
31,
2019 2018 Stock-based compensation expense:
Technology and development $ 143 $ 129 Sales and marketing
380 309 General and administrative 560 418
Total stock-based compensation expense in
continuingoperations
$ 1,083 $ 856
Telaria, Inc.
Condensed Consolidated Statements of Cash Flows (in
thousands) (unaudited)
Three Months EndedMarch
31,
2019 2018 Cash flows from operating
activities: Net loss from continuing operations $ (4,333 ) $ (6,127
) Total income from discontinued operations — 26 Depreciation and
amortization expense 487 1,801 Bad debt expense 41 — Deferred tax
benefit 85 — Loss on disposal of property and equipment 100 22
Amortization of operating lease right-of-use asset 985 —
Stock-based compensation expense 1,083 856 Net changes in operating
assets and liabilities: Decrease in accounts receivable 15,302
12,355 Increase in prepaid expenses, other current assets (144 )
(1,020 ) Decrease in other assets 147 — Decrease in accounts
payable and accrued expenses (25,648 ) (11,590 ) Decrease in other
current liabilities (750 ) (4 ) Decrease in operating lease
liability (1,170 ) — Increase in deferred rent and security
deposits payable 7 658 Decrease in deferred income (69 ) (90 )
Increase (decrease) in other liabilities 13 (685 ) Net cash
used in operating activities (13,864 ) (3,798 ) Cash flows
from investing activities: Purchase of property and equipment (123
) (256 ) Net cash used in investing activities (123 ) (256 )
Cash flows from financing activities: Contingent consideration on
acquisition (1,500 ) — Proceeds from the exercise of stock options
awards 3,181 1,018 Proceeds from issuance of common stock under
employee stock purchase plan 270 240 Tax withholdings related to
net share settlements of restricted stock unit awards (RSUs) (536 )
(912 ) Net cash provided by financing activities 1,415 346
Net decrease in cash, cash equivalents (12,572 )
(3,708 ) Effect of exchange rate changes in cash, cash
equivalents (124 ) (27 ) Cash, cash equivalents at
beginning of period 47,659 76,320 Cash, cash
equivalents at end of period $ 34,963 $ 72,585
Exhibit B Telaria, Inc.
Reconciliation of Net Loss from
Continuing Operations, Net of Income Taxes to Adjusted
EBITDA
(in thousands)
(unaudited)
Three Months Ended March
31,
2019 2018 Loss from continuing
operations, net of income taxes $ (4,333 ) $ (6,127 ) Adjustments:
Depreciation and amortization expense 487 1,801 Total interest and
other income (expenses), net(1) (980 ) (714 ) Provision for income
taxes 7 14 Stock-based compensation expense 1,083 856 Expenses for
prior corporate facilities (2) 1,031 — Acquisition-related costs 40
— Executive severance, retention and recruiting costs 285 143
Expenses for transitional services(3) — 389 Other adjustments(4) —
313 Total net adjustments 1,953 2,802
Adjusted EBITDA $ (2,380 ) $ (3,325 )
(1) Reflects sublease income for our former office facilities.
In addition, for the three months ended March 31, 2018, includes
income received from the transfer of rights in the name "Tremor
Video".
(2) For the three months ended March 31, 2019, reflects lease
costs for prior corporate facilities, previously recorded in
interest and other income (expenses), which are now required to be
recorded in operating expenses as a result of the adoption of ASC
842 (Leases).
(3) For the three months ended March 31, 2018, reflects costs
incurred providing transitional services following the sale of the
divested buyer platform.
(4) For the three months ended March 31, 2018, reflects rent
expense for our current corporate headquarters, which was then
unoccupied.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190509005217/en/
Investor Relations:Andrew PosenVice President, Head of
Investor Relations212-792-2315IR@telaria.com
Media:Lekha RaoVice President, Media Relations &
Corporate Communications646-226-0254lrao@telaria.com
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