Q2 2014 record revenue as growth tops
23%
- Revenue for the three months ended June
30, 2014 grew 23.2% year-over-year to a record $43.7 million
- Revenue for the six months ended June
30, 2014 grew 30.4% year-over-year to $78.6 million
- Net loss of ($5.4) million; Non-GAAP
Adjusted EBITDA of ($2.3) million
- Net loss per share of ($0.11); Non-GAAP
Adjusted EBITDA per share of ($0.05)
Tremor Video, Inc. (NYSE:TRMR), an advertising technology
company elevating brand performance across all screens for the
world’s leading brands and publishers, today announced financial
results for the second quarter 2014.
“Our second quarter results included record revenues as we
continued to grow our business while increasing our investment in
technology,” said Bill Day, President and CEO of Tremor Video. “Our
all screen product is gaining traction rapidly, with the number of
advertisers using the product increasing steadily since its
introduction at the beginning of the quarter. We’re looking to
continue this momentum as we launch our SSP and move closer to our
complete programmatic solution for brand advertisers and premium
publishers.”
Q2 & YTD 2014 Financial Summary
Revenue: For the three months ended June 30, 2014,
revenue was a record $43.7 million compared to $35.5 million for
the three months ended June 30, 2013, representing a 23.2% increase
over the same period one year ago.
For the six months ended June 30, 2014, revenue was $78.6
million compared to $60.2 million for the six months ended June 30,
2013, representing a 30.4% increase over the same period one year
ago.
Gross Margin: For the three months ended June 30, 2014,
gross margin was 33.9% compared to 46.5% for the same period one
year ago.
For the six months ended June 30, 2014, gross margin was 34.0%
compared to 45.5% for the same period one year ago.
Net Loss: For the three months ended June 30, 2014, net
loss was ($5.4) million compared to a net loss of ($0.3) million
for the same period one year ago.
For the six months ended June 30, 2014, net loss was ($12.6)
million compared to a net loss of ($5.4) million for the same
period one year ago.
Adjusted EBITDA: For the three months ended June 30,
2014, Adjusted EBITDA, a non-GAAP financial measure, was ($2.3)
million compared to Adjusted EBITDA of $2.0 million for the same
period one year ago.
For the six months ended June 30, 2014, Adjusted EBITDA, a
non-GAAP financial measure, was ($6.9) million compared to Adjusted
EBITDA of ($0.8) million for the same period one year ago.
EPS: For the three months ended June 30, 2014, basic and
diluted net loss per share was ($0.11). Non-GAAP basic and diluted
Adjusted EBITDA per share was ($0.05). Basic and diluted net loss
per share and Non-GAAP basic and diluted Adjusted EBITDA per share
are based on 50.4 million weighted average shares of common stock
for the three months ended June 30, 2014.
For the six months ended June 30, 2014, basic and diluted net
loss per share was ($0.25). Non-GAAP basic and diluted Adjusted
EBITDA per share was ($0.14). Basic and diluted net loss per share
and Non-GAAP basic and diluted Adjusted EBITDA per share are based
on 50.4 million weighted average shares of common stock for the six
months ended June 30, 2014.
A description of the non-GAAP calculations and reconciliation to
comparable GAAP measures is provided in the accompanying tables
entitled “Reconciliation of Non-GAAP Financial Information” and
“Reconciliation of Non-GAAP Financial Information-Per Share.”
Business & Financial Highlights
As a percentage of total revenue, revenue attributable to
performance-based pricing for the three months ended June 30, 2014
was 27% compared to 34% for the same period one year ago and for
the six months ended June 30, 2014 was 25% compared to 35% for the
same period one year ago.
As a percentage of total revenue, revenue attributable to our
all-screen product for the three months ended June 30, 2014 was
21%. Our all-screen product, which we introduced during the second
quarter, optimizes delivery of video ad campaigns across screens,
eliminating the need for advertisers to allocate campaign budgets
to a specific device.
Guidance
Based on information available as of August 6, 2014, the Company
expects the following:
Q3 2014: Third quarter revenue is expected to be in the
range of $39 million to $41 million and Adjusted EBITDA is expected
to be in the range of ($4.0) million to ($3.0) million.
Full Year 2014: Full year 2014 revenue is expected to be
in the range of $158 million to $163 million and Adjusted EBITDA is
expected to be in the range of ($11.0) million to ($8.0)
million.
Q2 2014 Financial Results Conference Call: Tremor Video
will host a conference call today at 4:30 p.m. ET to discuss its
second quarter financial results with the investment community. A
live webcast of the event will be available on the Tremor Video
Investor Relations website at http://investor.tremorvideo.com. A
live domestic dial-in is available at (877)407-9039 or
internationally at (201)689-8470. Until August 20, 2014, a domestic
replay will be available at (877)870-5176 or internationally at
(858)384-5517, using passcode 13586367, and via webcast on the
Tremor Video Investor Relations website.
About Tremor Video
Tremor Video (NYSE: TRMR) is transforming the video
advertising experience across all screens for the world’s
leading brands. Our proprietary
technology, VideoHub®, offers advertisers and publishers
a complete programmatic solution to reach and engage consumers
while providing new insights into what drives the success of brand
advertising performance across multiple devices. Tremor Video is
based in New York with offices throughout the US and across the
globe. For more information,
visit tremorvideo.com and find Tremor Video
on Twitter, Facebook and LinkedIn.
"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, but not
limited to, statements related to Tremor Video’s future financial
results or growth potential, including third quarter 2014 and 2014
full year financial guidance, and statements with respect to future
revenue mix or the development or adoption of the company’s
solutions. 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
limited operating history and the 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 advertisers and
increase spend from existing advertisers; the company’s ability to
attract advertising spend from TV media buyers; adoption of
brand-centric metrics, advanced ad formats and performance-based
pricing models by advertisers; the company’s ability to effectively
deliver video ad campaigns with demo guarantees; a delay in, or
failure of advertisers or publishers to adopt, the company’s
programmatic solutions; adoption of the company’s all-screen buying
solution by advertisers; the company’s ability to acquire an
adequate supply of premium video advertising inventory from
publishers on terms that are favorable to it; 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 and use
data to deliver video ads; the effect of 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 Tremor Video’s filings with
the Securities and Exchange Commission, including its Annual Report
on Form 10-K for the year ended December 31, 2013 filed with the
U.S. Securities and Exchange Commission on March 28, 2014, its
Quarterly Report on Form 10-Q for the three months ended March 31,
2014 filed with the U.S. Securities and Exchange Commission on May
15, 2014, and future filings and reports by the company, including
its Quarterly Report on Form 10-Q for the quarter ended June 30,
2014.
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, Tremor Video disclaims any obligation to update
these forward-looking statements to reflect future events or
circumstances.
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”), Tremor Video reports Adjusted
EBITDA and basic and diluted Adjusted EBITDA per share which are
non-GAAP financial measures. We define Adjusted EBITDA as net loss
plus (minus): interest expense, net and other expense (income),
income tax expense, depreciation and amortization expense, non-cash
stock-based compensation expense, non-cash stock-based long-term
incentive compensation, and litigation costs associated with
pending class action securities litigation. We define Adjusted
EBITDA per share as Adjusted EBITDA divided by weighted average
common shares outstanding. We use these non-GAAP financial measures
for financial and operational decision making and as a means to
evaluate period-to-period comparisons. We believe that these
measures provide useful information about our operating results,
enhance the overall understanding of our past financial performance
and future prospects, and allow for greater transparency with
respect to key metrics 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. The non-GAAP financial measures
included in this press release have been reconciled to the nearest
GAAP measure in the table following the financial statements
attached to this press release. 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
charges excluded from these non-GAAP measures, 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 the above charges to have a significant, and
potentially unpredictable, impact on our future GAAP financial
results.
Tremor Video, Inc.
Consolidated Balance Sheets
(in thousands)
June 30, December 31,
2014 2013 (unaudited) Assets
Current assets:
Cash and cash equivalents $ 83,767 $ 92,691 Accounts receivable,
net 49,070 41,458 Prepaid expenses and other current assets
1,778 1,912 Total current assets
134,615 136,061 Long-term assets:
Restricted cash
600
600 Property and equipment, net 4,349 3,388 Intangible assets, net
17,969 20,387 Goodwill 29,719 29,719 Deferred tax assets 189 189
Other assets 252 216 Total long-term
assets 53,078 54,499 Total assets $
187,693 $ 190,560
Liabilities and
stockholders’ equity Current liabilities: Accounts payable and
accrued expenses $ 39,246 $ 32,312 Deferred rent and security
deposits payable, short-term 10 14 Deferred revenue 379 271
Deferred tax liabilities, short-term 189 189
Total current liabilities 39,824 32,786 Deferred rent,
long-term 745 742 Total liabilities
40,569 33,528 Stockholders’ equity:
Common stock 5 5 Additional paid-in capital 270,455 267,767
Accumulated other comprehensive income 200 195 Accumulated deficit
(123,536 ) (110,935 ) Total stockholders’ equity
147,124 157,032 Total liabilities and
stockholders’ equity $ 187,693 $ 190,560
Tremor Video, Inc.
Consolidated Statements of
Operations
(in thousands, except share and per
share data)
Three Months Ended Six
Months Ended June 30, June 30, 2014
2013 2014 2013 (unaudited) Revenue $
43,701 $ 35,465 $ 78,570 $ 60,230 Cost of revenue 28,893
18,971 51,836 32,812
Gross profit 14,808 16,494
26,734 27,418 Operating
expenses: Technology and development(1) 3,982 2,818 8,313 5,515
Sales and marketing(1) 10,906 9,943 20,357 18,786 General and
administrative(1) 3,600 2,468 7,313 5,388 Depreciation and
amortization 1,643 1,493 3,229
2,995 Total operating expenses 20,131
16,722 39,212 32,684
Loss from operations (5,323 ) (228 )
(12,478 ) (5,266 ) Interest and other
(expense) income, net: Interest expense, net -- (57 ) -- (113 )
Other (expense) income, net (28 ) 165
(23 ) 170 Total interest and other (expense) income,
net (28 ) 108 (23 ) 57
Loss before income taxes (5,351 ) (120 ) (12,501 ) (5,209 )
Income tax expense 21 153 100
223 Net loss
$
(5,372 )
$
(273 )
$
(12,601 )
$
(5,432 )
Net loss per share: Basic and diluted $
(0.11 ) $ (0.04 ) $ (0.25 ) $ (0.70 )
Weighted-average number of shares of
common stock outstanding:
Basic and diluted 50,403,168 7,760,494
50,350,749 7,744,943
(1) Stock-based compensation expense
included above:
Three Months Ended Six Months Ended June 30,
June 30, 2014 2013 2014 2013
(unaudited) Technology and development $ 220 $ 134 $ 414 $
249 Sales and marketing 362 287 721 566 General and administrative
557 341 971 686
Total stock-based compensation expense $ 1,139 $ 762
$ 2,106 $ 1,501
Tremor Video, Inc.
Reconciliation of Non-GAAP Financial
Information
(in thousands)
Three Months Ended Six
Months Ended June 30, June 30, 2014
2013 2014 2013 (unaudited) Net loss $
(5,372 ) $ (273 ) $ (12,601 ) $ (5,432 ) Adjustments: Depreciation
and amortization expense 1,643 1,493 3,229 2,995 Stock-based
compensation expense 1,139 762 2,106 1,501 Stock-based long-term
incentive compensation 154 -- 114 -- Interest and other expense
(income), net 28 (108 ) 23 (57 ) Income tax expense 21 153 100 223
Litigation costs 78 -- 147
-- Total net adjustments 3,063
2,300 5,719 4,662
Adjusted EBITDA $ (2,309 ) $ 2,027 $ (6,882 ) $ (770 )
Tremor Video, Inc.
Reconciliation of Non-GAAP Financial
Information-Per Share
Three Months Ended Six Months Ended June
30, June 30, 2014 2013 2014
2013 (unaudited) Net loss $ (0.11 ) $ (0.04 ) $ (0.25
) $ (0.70 ) Adjustments: Depreciation and amortization expense 0.03
0.19 0.06 0.39 Stock-based compensation expense 0.02 0.10 0.04 0.19
Stock-based long-term incentive compensation 0.01 -- -- -- Interest
and other expense (income), net -- (0.01 ) -- (0.01 ) Income tax
expense -- 0.02 -- 0.03 Litigation costs -- --
0.01 -- Total net adjustments
0.06 0.30 0.11
0.60 Adjusted EBITDA per share - basic $ (0.05 ) $ 0.26
$ (0.14 ) $ (0.10 )
Weighted-average number of shares of
common stock outstanding:
Basic 50,403,168 7,760,494
50,350,749 7,744,943 Adjusted EBITDA
per share – diluted $ (0.05 ) $ 0.05 $ (0.14 ) $ (0.10 )
Weighted-average number of shares of
common stock outstanding:
Diluted 50,403,168 44,598,832
50,350,749 7,744,943
Tremor Video, Inc.
Consolidated Statements of Cash
Flows
(in thousands)
Six Months Ended June 30, 2014
2013 (unaudited) Cash flows from
operating activities: Net loss $ (12,601 ) $ (5,432 )
Adjustments required to reconcile net loss
to net cash (used in) provided by operating activities:
Depreciation of property and equipment 811 557 Amortization of
intangible assets 2,418 2,438 Bad debt (recovery) expense (5 ) 30
Mark-to-market income -- (177 ) Contingent stock grant to third
party vendor 24 -- Stock-based compensation expense 2,106 1,501
Stock-based long-term incentive compensation 114 -- Net changes in
operating assets and liabilities: Increase in accounts receivable
(7,572 ) (3,232 )
Decrease (increase) in prepaid expenses
and other long-term assets
98 (1,402 ) Increase in accounts payable and accrued expenses 6,741
6,029
(Decrease) increase in deferred rent and
security deposits payable
(1 ) 80 Increase (decrease) in deferred revenue 108
(21 ) Net cash (used in) provided by operating activities
(7,759 ) 371 Cash flows from investing
activities: Purchase of property and equipment (1,772 ) (1,404 )
Changes in restricted cash -- 621 Net
cash used in investing activities (1,772 ) (783 )
Cash flows from financing activities: Proceeds from the
exercise of stock options 582 173 Net
cash provided by financing activities 582 173
Net decrease in cash and cash equivalents (8,949 )
(239 ) Effect of exchange rate changes in cash and cash
equivalents 25 (150 ) Cash and cash equivalents at beginning
of period 92,691 32,533 Cash and cash
equivalents at end of period $ 83,767 $ 32,144
Supplemental disclosure of cash flow activities: Cash paid
for income taxes $ -- $ 224 Cash paid for interest
expense $ -- $ 113
Tremor Video, Inc.Investor Relations:Andrew PosenSenior Director
Investor Relations212-792-2315IR@TremorVideo.comorPublic
Relations:Tremor Video Corporate CommunicationsBilly Kenny,
646-421-6217BKenny@TremorVideo.com
Tremor Video, Inc. (NYSE:TRMR)
Historical Stock Chart
From May 2024 to Jun 2024
Tremor Video, Inc. (NYSE:TRMR)
Historical Stock Chart
From Jun 2023 to Jun 2024