Total Revenue grew by 40% during the
quarter and quarterly gross profits were a record $11.3 million
VANCOUVER, BC, March 4, 2021 /PRNewswire/ - BBTV Holdings Inc.
(TSX: BBTV) (OTCQX: BBTVF) ("BBTV" or the "Company"), a media tech
company that uses technology enabled solutions to help content
creators and influencers become more successful, today announced
record financial results for Q4 and Full Year 2020 ended on
December 31, 2020. The Management
Discussion and Analysis, along with full financial statements are
posted and available on SEDAR at www.sedar.com. All dollar amounts
are expressed in Canadian currency and are prepared in accordance
with International Financial Reporting Standards (IFRS).
"I am very pleased with our performance this quarter," said
Shahrzad Rafati, Chairperson and CEO
of BBTV. "Following the initial industry-wide slowdown caused by
the pandemic, BBTV's growth trajectories accelerated well through
the year. It is a testament to the strength of our platform to
monetize content for influencers, and the dedication and skills of
our team to deliver 40% revenue growth this quarter. We exceeded
our expectations on all of our core KPIs this quarter including
growth in revenue, views, and revenue per thousand views. We
are especially bullish on the next few quarters as we continue to
see strong momentum in the growth of our higher margin Plus
solutions which positions us well to accelerate revenue growth and
enhance margins in the coming quarters".
Q4 2020 Financial Highlights
- Total revenue generated in Q4, 2020 was $150.8 million, a 40% increase over $107.8 million reported in Q4, 2019.
- Total BBTV Share of revenue in Q4, 2020 was $12.0 million, or 8% of total revenue.
- Cost of revenue, excluding content creator and third-party
platform fees, in Q4, 2020 was $0.7
million, comparable to the previous quarter.
- Adjusted Gross Margin, which is Gross Profit divided by BBTV
Share, was 94% in Q4, 2020.
- Gross Profit reported in Q4, 2020 was $11.3 million, a 12% increase in comparison to
$10.1 million reported for the same
quarter last year.
- Gross Margin was 7.5% in Q4, 2020 in comparison to 9.3% in Q4,
2019 as a result of penetration pricing strategy to gain market
share.
- Net income for the quarter was $1.2
million compared to a loss of $1.2
million in Q4, 2019.
- Earnings per share was $0.06 for
Q4, 2020 (based on pro forma 20.5 million shares outstanding)
compared to a loss of $.09 per share
for Q4 2019 (based on 13.1 million shares outstanding).
- Adjusted EBITDA, which is a non-IFRS measure, was $1.0 million for Q4, 2020 compared to
$0.7 million reported for Q4,
2019.
Q4 2020 Operational Highlights
In Q4 2020, the number of views on BBTV's content was 114.2
billion, a 16% increase compared to 98.7 billion reported in Q4,
2019.
Revenue per Thousand Views (RPM) increased in Q4 2020 by 21% to
$1.25 compared to $1.03 in Q4, 2019.
In Q4 2020, BBTV announced the signing of new international
gaming partners L'étoile Noire, Acenix, Games EduUu, Mustafa GAME
OVER, and VinhMC, who collectively achieved 217 million monthly
YouTube views and boasted over 23 million YouTube subscribers. This
was in addition to new signings with: Nick
Pro, penguinz0, Jack Denmo and Francesca Farago, adding 267.8M monthly views and 12.5M subscribers organically.
BBTV also renewed and expanded content partnerships with key
existing partners including Kwebbelkop, IAmSanna and CJ SO COOL,
who collectively generate 187.6M
monthly views.
Additionally, the company announced that it extended its Content
Management solutions to the Encore+ YouTube channel, presented by
the Canada Media Fund (CMF), and it renewed its agreement with the
NBA (National Basketball Association) for which BBTV manages all
fan uploaded NBA content on YouTube across the globe excluding
China.
Subsequent to quarter end, BBTV announced a strategic
partnership with both Instagram and Tik
Tok to monetize influencers across these platforms.
Fiscal Year 2020 Summary Financial Highlights.
- For fiscal year 2020, revenue was $459.0
million, a 23.3% increase from $372.4
million reported for fiscal year 2019.
- Total BBTV share of revenue in fiscal 2020 was $38.9 million, or 8% of total revenue.
- Cost of revenue, excluding content creator and third-party
platform fees, in fiscal year 2020 was $2.8
million, which was comparable to the previous year.
- Adjusted Gross Margin, which is Adjusted Gross Profit divided
by BBTV Share, was 93% in fiscal year 2020.
- Total gross profit for fiscal year 2020 was $36.1 million comparable to $36.3 million reported for fiscal year 2019.
- Gross Margin was 7.9% in FY 2020 in comparison to 9.8% in FY,
2019 as a result of penetration pricing strategy to gain market
share.
- Net loss for fiscal year 2020 was $10.3
million compared to a loss of $8.2
million in fiscal year 2019.
- Loss per share was $0.50 (based
on pro forma 20.5 million shares outstanding) for fiscal year 2020
compared to a loss per share of $0.62
(based on 13.1 million shares outstanding) for fiscal year
2019.
- Adjusted EBITDA loss, which is a non-IFRS measure, was
$2.6 million for fiscal 2020 compared
to income of $1.0 million for fiscal
2019. The decline in EBITDA in fiscal 2020 compared to fiscal 2019
is related primarily to increased strategic investments in sales
and marketing.
- Days Sales Outstanding (DSO) for the year was 37 days.
- As at December 31, 2020 the
company had $16.0 million of cash and
short-term investments.
"Despite the market disruption caused by COVID-19 pandemic
earlier in the year, we were able to expand views on our platform
and improve RPM," Added Ms. Rafati. "To capture more market share
in the wake of the pandemic, we reduced our revenue share to gain
more influencers and significantly more views on the BBTV platform.
As a result, we are well positioned to maximize monetization on the
platform and to expand our revenue streams going forward. To
maximize our opportunity, we are actively investing in sales and
marketing capabilities across our higher margin solutions."
We are providing a summary of the results of operations of BBTV
Corp, the main operating entity of BBTV Holdings. BBTV
Holdings, the public company, was initially a shell entity
which acquired BBTV Corp. on October 28,
2020, and its financial results therefore only include two
months of Q4 2020 operating activity. BBTV Holdings does not
currently generate revenue, and other than the transaction-related
costs, operating expenses were $1.2
million and non-operating expenses were $1.8 million for the year.
Certain pro-forma consolidated unaudited financial statements,
which combine BBTV Corp. and BBTV Holdings, and the unaudited BBTV
Corp. financials may be found in the MD&A. The BBTV Holdings
audited consolidated statutory financial statements are filed
separately. Future earnings releases will combine BBTV Holdings and
BBTV Corp. into one reporting entity in accordance with regulatory
requirements.
BBTV Corp. Fourth Quarter and Full Fiscal Year 2020
Financial Summary
|
Three Months
Ended
December
31,
|
Years ended
December 31,
|
2020
$
|
2019
$
|
2020
$
|
2019
$
|
|
|
|
|
|
Revenue
|
$150,822
|
$107,828
|
$459,004
|
$372,389
|
|
|
|
|
|
Cost of
revenue
|
|
|
|
|
Content creator and
other fees
|
($139,177)
|
($97,529)
|
($421,691)
|
($335,145)
|
Amortization
|
($298)
|
($224)
|
($1,191)
|
($903)
|
|
($139,475)
|
($97,753)
|
($422,882)
|
($336,048)
|
|
|
|
|
|
Gross
profit
|
$11,347
|
$10,075
|
$36,122
|
$36,341
|
|
|
|
|
|
Expenses
|
|
|
|
|
Sales and
marketing
|
$6,888
|
$4,666
|
$24,196
|
$18,059
|
General and
administration
|
$2,820
|
$3,764
|
$11,554
|
$13,606
|
Research and
development
|
$1,074
|
$1,314
|
$4,757
|
$5,184
|
Share-based
compensation
|
($325)
|
$29
|
($89)
|
$129
|
Amortization and
depreciation
|
$619
|
$633
|
$2,690
|
$2,653
|
|
$11,076
|
$10,406
|
$43,108
|
$39,631
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$271
|
($331)
|
($6,986)
|
($3,290)
|
|
|
|
|
|
Foreign exchange gain
(loss)
|
$1,543
|
$556
|
$386
|
$756
|
Interest
expense
|
($959)
|
($922)
|
($3,885)
|
($3,580)
|
Other income
(expense)
|
$534
|
$67
|
$245
|
$315
|
Transaction-related
costs
|
-
|
($114)
|
($68)
|
($352)
|
|
$1,118
|
($413)
|
($3,322)
|
($2,861)
|
|
|
|
|
|
Income (loss)
before income taxes
|
$1,389
|
($744)
|
($10,308)
|
($6,151)
|
|
|
|
|
|
Recovery
(provision) for income taxes
|
($157)
|
($479)
|
($2)
|
($2,007)
|
|
|
|
|
|
Income
(loss)
|
$1,232
|
($1,223)
|
($10,310)
|
($8,158)
|
|
|
|
|
|
Non-IFRS Measures
The Company presents the following non-IFRS measures in the
MD&A, reconciliations of which to their nearest IFRS measures
are provided, below:
Adjusted EBITDA and Adjusted EBITDA Margin
|
Three Months Ended
December 31,
|
Years ended
December 31,
|
|
2020
|
2019
|
2020
|
2019
|
Net
loss
|
($6,371)
|
($196)
|
($7,359)
|
($247)
|
Pro-Forma Provisional
Adjustment(1)
|
$1,856
|
($6,277)
|
($24,683)
|
($28,369)
|
Pro-Forma net
loss
|
($4,515)
|
($6,473)
|
($32,042)
|
($28,616)
|
BBTV Corp.
Adjustment(2)
|
$5,747
|
$5,250
|
$21,732
|
$20,458
|
BBTV Corp. net
income (loss)
|
$1,232
|
($1,223)
|
($10,310)
|
($8,158)
|
Amortization and
depreciation(3)
|
$917
|
$857
|
$3,881
|
$3,556
|
Share-based
compensation
|
($325)
|
$29
|
($89)
|
$129
|
Unrealized and
realized foreign exchange
|
($1,543)
|
($556)
|
($386)
|
($756)
|
Interest
expense
|
$959
|
$922
|
$3,885
|
$3,580
|
Other expense
(income)
|
($534)
|
($67)
|
($245)
|
($315)
|
Receivable factoring
banking fees
|
$135
|
$179
|
$551
|
$646
|
Transaction-related
costs
|
$-
|
$114
|
$68
|
$352
|
Provision for income
taxes
|
$157
|
$479
|
$2
|
$2,007
|
BBTV Corp. Adjusted
EBITDA
|
$998
|
$734
|
($2,643)
|
$1,041
|
Total BBTV Corp.
revenues
|
$150,822
|
$107,828
|
$459,004
|
$372,389
|
BBTV Corp. Adjusted
EBITDA Margin
|
0.7%
|
0.7%
|
(0.6%)
|
0.3%
|
(1)
|
Pro-Forma Provisional
Adjustment to include BBTV Corp. consolidated results as if the
Business Combination Transaction had occurred on January 1,
2019.
|
(2)
|
BBTV Corp. Adjustment
to exclude BBTV Holdings standalone legal entity's financial
results as well as provisional amortization associated with
intangible assets acquired as part of the Business Combination
Transaction.
|
(3)
|
Includes depreciation
and amortization reported in cost of revenue and operating expenses
for all periods.
|
Adjusted EBITDA is defined as net earnings or loss, as
applicable, before finance expenses, income tax expense (recovery),
amortization and depreciation, share-based compensation, unrealized
and realized gains or losses due to foreign exchange,
transaction-related costs, and certain other items as set out in
the reconciliation table. Adjusted EBITDA Margin is defined as
Adjusted EBITDA divided by revenue.
BBTV Share and Adjusted Gross Margin
|
Three Months Ended
December 31,
|
Years ended
December 31,
|
|
2020
|
2019
|
2020
|
2019
|
BBTV Corp.
revenue
|
$150,822
|
$107,828
|
$459,004
|
$372,389
|
Less: content creator
and third-party platform fees
|
($138,788)
|
($97,044)
|
($420,086)
|
($333,462)
|
BBTV Corp.
Share
|
$12,034
|
$10,784
|
$38,918
|
$38,927
|
|
|
|
|
|
BBTV Corp. Adjusted
Gross Profit
|
$11,347
|
$10,075
|
$36,122
|
$36,341
|
|
|
|
|
|
BBTV Corp. Adjusted
Gross Margin
|
94.3%
|
93.4%
|
92.8%
|
93.4%
|
BBTV Share is defined as revenue less influencer and third-party
platform fees while Adjusted Gross Margin is defined as Adjusted
Gross Profit divided by BBTV Share. Adjusted Gross Profit is
defined as gross profit plus amortization associated with
intangible assets acquired as part of the Business Combination
Transaction, which for the period reported for BBTV Corp. was $nil.
The amortization associated with intangible assets acquired as part
of the Business Combination Transaction is recorded in BBTV
Holdings.
The Company uses Adjusted EBITDA, Adjusted EBITDA Margin, BBTV
Share, Adjusted Gross Profit, and Adjusted Gross Margin to provide
readers with a supplemental measure of our operating performance
and thus highlight trends in our core business that may not
otherwise be apparent when relying solely on IFRS financial
measures. The Company believes that securities analysts, investors
and other interested parties frequently use non-IFRS measures in
the evaluation of performance. Management also believes BBTV Share,
Adjusted Gross Margin and Adjusted EBITDA are useful performance
measures as they provide information regarding the Company's
ongoing core operating activities, trends in underlying
performance, the preparation of annual operating budgets and is
used by management to assist in operating decisions and resource
allocations.
About BBTV
BBTV is a media and technology company headquartered in
Vancouver, Canada. The company's
mission is to democratize content by leveraging its proprietary
technologies to drive viewership and monetization for content
creators of all sizes. From individual influencers to global media
companies, BBTV monetizes the content of influencers through
end-to-end monetization solutions. BBTV's platform is powered by
its innovative technology, enabling influencers to focus on their
core competency – content creation. BBTV has the second most unique
monthly viewers among digital platforms with more than 600 million
globally, who consumed more than 50 billion minutes of video
content, the most among media companies*. www.bbtv.com
*Calculations and classifications made by BBTV based on
August 2020 data from Comscore's
reports from its top 12 countries. Each report is titled, "Comscore
Video Metrix Media Trend – Multi-Platform – Top 100 Video
Properties Report."
Forward Looking Statements
This press release contains "forward–looking information" and
"forward-looking statements" within the meaning of applicable
securities laws (collectively, "forward-looking information") which
reflects the Company's current expectations regarding future
events, including that the Company is especially bullish on the
next few quarters as the Company continues to see strong momentum
in the growth of its higher margin Plus solutions which position
the Company well to accelerate revenue growth and enhance margins
in the coming quarters; the Company is well positioned to maximize
monetization on the BBTV platform and to expand its revenue streams
going forward; and that the Company's mission to democratize
content by leveraging its proprietary technologies to drive
viewership and monetization for content creators of all sizes.
Forward-looking information is necessarily based on a number of
estimates and assumptions that we considered appropriate and
reasonable as of the date such information is given, including but
not limited to our assumption regarding continued changes and
trends in our industry or the global economy, that our growth
trends will continue in future, and the performance of our services
and technology. Forward-looking information is subject to known and
unknown risks, uncertainties, and other factors, many of which are
beyond the Company's control, that may cause actual results,
performance or achievements to be materially different from those
expressed or implied by such forward-looking information, including
but not limited to the risk that our assumptions on which our
forward-looking information is based may not be accurate, the
effect of competition, that historical or previous results are not
necessarily indicative of future results, as well as the factors
discussed under "Risk Factors" in the final prospectus of the
Company dated October 22, 2020 filed
on sedar at www.sedar.com and in our other filings with the
Canadian securities regulatory authorities at www.sedar.com.
The Company does not undertake any obligation to update such
forward–looking information, whether as a result of new
information, future events or otherwise, except as expressly
required by applicable law.
Conference Call Details
March 4th, 2:15pm Pacific
Time/5:15pm Eastern
Time
Participant Information
Participant
Toll Free Dial-In Number: (844) 418-0102
Participant International Dial-In Number: (236) 714-3015
Conference ID: 7445485
Please connect at least 15 minutes prior to the conference
call.
To coincide with the call, an Investor Highlights presentation
will available at:
https://investors.bbtv.com/events-and-presentations/default.aspx
Links to SEDAR filings, conference call recordings and press
releases are available on the investor website at:
https://investors.bbtv.com/
Telephonic Replay:
Encore Dial In #:(800) 585-8367 or
(416) 621-4642
Conference ID: 7445485
March 4, 2021 19:30 ET - March 11,
2021 23:59 ET
Contacts:
Media Relations
Dan
Gamble,
Head of PR & Corporate Communications,
778-873-0422
dgamble@bbtv.com
Investor Relations
ir@bbtv.com
Ron Shuttleworth
Partner
Oak Hill Financial Inc
(647)–500–7371
rshuttleworth@oakhillfinancial.ca
BBTV-F
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SOURCE BBTV Holdings Inc.