EVS Q1 2022 Business Update – Continued Strong Momentum
EVS Q1 2022 BUSINESS UPDATE – CONTINUED STRONG
MOMENTUM
Liège, Belgium, May 20, 2022
EVS, global leader in live video technology for
broadcast and new media productions, today announces its business
update for the first quarter ending 31 March 2022.
HIGHLIGHTS
- The secured revenue* at end of
March 2022 is at EUR 91,0 million
- Secured revenue excluding Big Event
Rental is at EUR 81.8 million versus EUR 54.1 million at the same
date last year, a growth of +51,2%
- Secured revenue for Big Event
Rental is set at EUR 9.2 million
- Order intake for 2022 demonstrating
important wins across the world
- MediaInfra performance underlining
success of past acquisition (Axon)
- Gross margin evolves according to
expectations and operational expenses remain in line with the full
year guidance set forward
*secured revenue, formally reported as booked
revenue, includes the already recognized revenue as well as open
orders on hand that will be recognized as revenue in 2022
COMMENTS
Serge Van Herck, CEO comments the business
development: “2021 was a record year for EVS and based on our
strong Q1 order intake results, we are cautiously optimistic for
2022 as well. We are still facing important challenges in our
electronic component supply chain but up to now we have been able
to handle this extra challenge. This provides us sufficient
confidence today to confirm our earlier revenue guidance for 2022
of EUR 125 million to EUR 140 million.
Our 2 main Market Pillars (Live Service
Providers and Live Audience Business) are further showing revenue
growth compared to Q1 2021. Our third Market Pillar (Big Event
Rental) will also generate the expected ‘big event year’ results in
2022.
Our Live Service Providers (LSP) customers are
continuing their LiveCeption (our live production replay and
highlights solution) upgrade programs, leveraging our new LSM-VIA
replay controller designed for IP-based remote production as it has
been proven once again during the Superbowl and many other major
winter sporting events.
Next to this, we continue enjoying strong
commercial traction with our Live Audience Business (LAB) customers
for their broadcast center modernization projects. Our EVS
MediaCeption solution (content management for live productions)
currently in operation by several customers is a proof point for
the market that EVS is a trusted partner for these challenging
transformation journeys.
For our Big Event Rental, EVS has supported the
live production of a major winter sport event early this year and
is planning to support other major sport events organized in the
Middle East later this year.
Since our largest acquisition ever of Axon in
May 2020, it is good to see that next to the successful operational
integration, we also enjoy a strong commercial traction that
supports our Order Intake growth. The recently announced MediaInfra
Strada routing system project for Fox Sports USA, represents our
largest-ever Media Infrastructure deal. The integration of
MediaInfra Solutions with other EVS products and solutions families
offers EVS a much broader footprint and new capabilities to address
its customers’ needs while offering new revenue stream
perspectives. Thanks to the involvement of many stakeholders, EVS
is now proposing a disruptive, future safe and TCO (Total Cost of
Ownership) optimized approach for our customers engaging in the
modernization of their media infrastructure.
To overcome potential shortages of electronic
components due to the current market conditions, we have extended
our standard delivery times and we continue to proactively secure
our inventory.
The high and global inflation has an important
impact on our remuneration costs. It is our intent to compensate
the impact of those increased costs by applying specific price
increases.
Overall, we feel that our customers increasingly
appreciate the reliability and performance of our solutions and
services.”
Commenting on the results and the outlook,
Veerle De Wit, CFO, said: “Our 2022 secured revenue as of March
31st amounts to EUR 91.0 million (+35,2% compared to last year).
Next to a strong secured revenue, our order intake is also
continuing the momentum of 2021, with a growth in confirmed orders
of +29,0% in the first 3 months of the year. Both trends
considerably subscribe our intentions to grow our revenue in 2022.
Our revenue guidance remains unchanged in the range of EUR 125 -
140 million, still reflecting potential delivery issues we may face
following the shortage on the electronic components market. Our
operating expenditure evolves in line with our expectations, though
inflation may influence our models towards the high-end of the
range provided.”
EVS MARKET DYNAMICS & CUSTOMER WINS
During the first quarter, EVS delivered
successfully major winter events, serving the host broadcaster, as
well as multiple right holders, including NBC. As every year, EVS
also supported its customers (facility companies and broadcasters)
delivering the NFL Superbowl: one of the most watched events on
earth.
For Live Service Providers, 2020 is an old
souvenir. These players continue to upgrade their portfolio of
replay services to leverage the advantages of the combination of
XT-VIA and LSM-VIA. Channel partners continue to be successful
selling the LiveCeption Pure solution for smaller OB Vans and
venues. The new MediaInfra Strada evolutive routing solution also
made its entry within IP OB Vans in North America.
Our LAB customers continue to upgrade their
facilities both with IP Media Infrastructure and with modernized
workflows based on EVS VIA platform. EVS continues the deployment
of the projects sold during previous quarters.
The major multi-million deal announced during
NAB about Fox Sports US selecting Media Infrastructure Strada
flexible routing solution is an additional proof point of the
traction for the new EVS solutions and the success of the Axon
integration within EVS.
New versions of solutions have been announced
during Q1 2022:
- Neuron supports a new application,
called Neuron Protect, which fulfills the increasing demand for
more secured solutions: higher level of redundancy on top of IP
networks. It proves that EVS considers security as a top priority
and provides new solution components to face the challenges faced
by the industry. The new “Compress” version of Neuron offers new
low-bitrate codec, JPEG-XS compression required for video transport
in remote operations.
- With the addition of the new
version of IP Core to Cerebrum, additional routing capabilities are
offered making use of SDN to ensure fully secured orchestration of
any IP-based video signals.
- The new version of “MediaCeption
signature” offers a comprehensive set of content management
applications combining advanced software and Web-based modules for
an even richer workflows from ingest to playout.
With the RTBF deal announced in February 2022,
EVS co-develops a future Flexible Control Room solution build on
Cerebrum: the solution - embracing production automation - will
support the broadcasters in their transformation to produce more
efficiently with dynamic scaling during a production, while
proposing an open solution optimized in terms of user experience
for operators of all generations.
The tensions around availability of electronic
components are going on and are even increasing based on the new
geopolitical situation. EVS has announced a typical delay of 20
weeks between the order and the delivery to cope with the delays.
Until now, all orders have been shipped on time thanks to the huge
efforts and the magic talents of several teams, adapting to the
different combinations of components while refusing to compromise
on quality.
Despite the war for talent, EVS is also
successfully hiring to strengthen the team and support expected
growth, mainly in R&D and Customer Services teams to further
develop the solutions and in the US to better support key customers
and channel partners in the region.
The teams were also very happy to be back at the
NAB tradeshow to meet customers face to face, engage into fruitful
conversations, and demonstrate for the first time in live situation
for some customers the numerous new solutions and features proposed
by EVS. The return to NAB was also special since celebrated through
the NAB 2022 Best Of Show award for Neuron Protect which is the
first NAB award for a Media Infrastructure product inside EVS.
At the beginning of this year, EVS also enhanced
and extended the leadership team with two new members, Alex Redfern
as CTO and Xavier Orri as EVP Operations & Projects, to sustain
the growth path engaged by the company. Two US colleagues - James
Stellpflug as SVP Customer Success NALA and David Pinkel as SVP
Sales North America - have also been promoted to further strengthen
and drive the EVS teams in the Americas.
OUTLOOK
The 2022 secured revenue on March 31st amounts
to EUR 81.8 million compared to EUR 54.1 million last year (YOY
+51,2%, excluding Big Event Rental). An additional EUR 9.2 million
orders already received for Big Event Rental will be delivered and
recognized later in 2022, ensuring an overall secured revenue for
2022 at end of March of EUR 91.0 million.
In addition to those 2022 secured revenue
numbers, EVS has EUR 15.5 million of orders to be invoiced in 2023
and beyond (excl. Big Event Rental), a growth of 5,4%.
The revenue guidance of EUR 125 – 140 million is
maintained, with securec revenue and order intake sustaining growth
in 2022.
Operational expenses continue in line with the
guidance provided (growth between 5-10%) with inflation pushing the
growth towards the higher end of the range.
CORPORATE CALENDAR
August 25th, 2022 : 1H22 resultsNovember 17th,
2022 : 3Q22 trading update
For more information, please contact:Veerle De
Wit*, CFOEVS Broadcast Equipment S.A., Liege Science Park, 13 rue
du Bois Saint-Jean, B-4102 Seraing, Belgium Tel: +32 4 361 70 00.
E-mail:corpcom@evs.com; www.evs.com*representing
an srl |
Forward Looking
StatementsThis press release contains forward-looking
statements with respect to the business, financial condition, and
results of operations of EVS and its affiliates. These statements
are based on the current expectations or beliefs of EVS's
management and are subject to a number of risks and uncertainties
that could cause actual results or performance of the Company to
differ materially from those contemplated in such forward-looking
statements. These risks and uncertainties relate to changes in
technology and market requirements, the company’s concentration on
one industry, decline in demand for the company’s products and
those of its affiliates, inability to timely develop and introduce
new technologies, products and applications, and loss of market
share and pressure on pricing resulting from competition which
could cause the actual results or performance of the company to
differ materially from those contemplated in such forward-looking
statements. EVS undertakes no obligation to publicly release any
revisions to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. |
About EVSWe create return on emotion.EVS is
globally recognized as a leader in live video technology for
broadcast and new media productions. Our passion and purpose are to
help our clients craft immersive stories that trigger the best
return on emotion. Through a wide range of products and solutions,
we deliver the most gripping live sports images, buzzing
entertainment shows and breaking news content to billions of
viewers every day – and in real-time.The company is headquartered
in Belgium with offices in Europe, the Middle East, Asia and North
America, and provides sales and technical support to more than 100
countries.EVS is a public company traded on Euronext Brussels: EVS,
ISIN: BE0003820371.For more information, please visit
www.evs.com. |
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