Quarterly revenue grows to a record $46.1
million
- Revenue grew 5.4% year-over-year to a
record $46.1 million
- Gross profit grew 21.6% year-over-year
to a record $18.0 million
- Net loss of ($5.2) million and Non-GAAP
Adjusted EBITDA of ($1.3) million
- Net loss per share of ($0.10) and
Non-GAAP Adjusted EBITDA per share of ($0.03)
- Company announces new Chief Financial
Officer, John Rego
Tremor Video, Inc. (NYSE:TRMR), the premium video marketplace
elevating brand advertising effectiveness across all screens, today
announced financial results for the second quarter ended June 30,
2015.
“The value of our premium video marketplace is evident in our
results that we reported today,” said Bill Day, CEO of Tremor
Video. “The accelerated growth of our programmatic business and
increasing contribution from sales of our proprietary buying and
all-screen products demonstrate the strength of our strategy.”
Q2 & YTD 2015 Financial Summary
Revenue: For the three months ended June 30, 2015,
revenue was $46.1 million compared to $43.7 million for the same
period one year ago, representing a 5.4% increase.
For the six months ended June 30, 2015, revenue was $86.7
million compared to $78.6 million for the same period one year ago,
representing a 10.3% increase.
Gross Profit: For the three months ended June 30, 2015,
gross profit was $18.0 million compared to $14.8 million for the
same period one year ago, representing a 21.6% increase.
For the six months ended June 30, 2015, gross profit was $34.2
million compared to $26.7 million for the same period one year ago,
representing a 27.9% increase.
Gross Margin: For the three months ended June 30, 2015,
gross margin was 39.1% compared to 33.9% for the same period one
year ago.
For the six months ended June 30, 2015, gross margin was 39.5%
compared to 34.0% for the same period one year ago.
Net Loss: For the three months ended June 30, 2015, net
loss was ($5.2) million compared to a net loss of ($5.4) million
for the same period one year ago.
For the six months ended June 30, 2015, net loss was ($12.2)
million compared to a net loss of ($12.6) million for the same
period one year ago.
Adjusted EBITDA: For the three months ended June 30,
2015, Adjusted EBITDA, a non-GAAP financial measure, was ($1.3)
million compared to Adjusted EBITDA of ($2.3) million for the same
period one year ago.
For the six months ended June 30, 2015, Adjusted EBITDA, a
non-GAAP financial measure, was ($5.3) million compared to Adjusted
EBITDA of ($6.9) million for the same period one year ago.
EPS: For the three months ended June 30, 2015, basic and
diluted net loss per share was ($0.10). Non-GAAP basic and diluted
Adjusted EBITDA per share was ($0.03). Basic and diluted net loss
per share and Non-GAAP basic and diluted Adjusted EBITDA per share
are based on 51.4 million weighted average shares of common stock
for the three months ended June 30, 2015.
For the six months ended June 30, 2015, basic and diluted net
loss per share was ($0.24). Non-GAAP basic and diluted Adjusted
EBITDA per share was ($0.10). Basic and diluted net loss per share
and Non-GAAP basic and diluted Adjusted EBITDA per share are based
on 51.3 million weighted average shares of common stock for the six
months ended June 30, 2015.
Business & Financial Highlights
As a percentage of total revenue, revenue attributable to
performance-based pricing for the three months ended June 30, 2015
was 33.0% compared to 26.9% for the same period one year ago and
for the six months ended June 30, 2015 was 31.1% compared to 25.0%
for the same period one year ago.
As a percentage of total revenue, revenue attributable to our
All-Screen product for the three and six months ended June 30, 2015
was 46.7% and 45.8%, respectively. Our All-Screen product, which we
introduced during the second quarter of 2014, optimizes delivery of
video ad campaigns across screens, eliminating the need for
advertisers to allocate campaign budgets to a specific device.
Company Hires New Chief Financial Officer
The Company announced today that it has hired John Rego as its
Chief Financial Officer. Mr. Rego will be joining the company on
September 8, 2015. Mr. Rego is a seasoned finance executive with
more than 30 years experience and is currently the Chief Financial
Officer of Virgin Galactic. Earlier in his career, he served as the
Chief Financial Officer of Vonage Holdings Corp., AppSense and
Petra Solar.
Guidance
Based on information available as of August 6, 2015, the Company
expects the following:
Q3 2015: Third quarter revenue is expected to be in the
range of $49.0 million to $52.0 million and Adjusted EBITDA is
expected to be in the range of ($3.0) million to ($1.0)
million.
Full Year 2015: The Company reiterates its guidance for
full year 2015 as follows:
Full year 2015 revenue is expected to be in the range of $195.0
million to $200.0 million and Adjusted EBITDA is expected to be in
the range of ($7.0) million to ($3.0) million.
Q2 2015 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, 2015, a domestic
replay will be available at (877)870-5176 or internationally at
(858)384-5517, using passcode 13613793, and via webcast on the
Tremor Video Investor Relations website.
About Tremor Video
Tremor Video (NYSE:TRMR) helps make every advertising moment
more relevant for consumers. The company’s heritage as custodians
of the most recognized advertiser and publisher brands is
built on leadership in all-screen analytics and a long-standing
commitment to transparency. Our premium video marketplace offers
the full spectrum of video ad products and services, including
premium programmatic buying and selling and analytics that connect
the two.
"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 2015 and 2015
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; risks of entering
new markets in which we have limited or no experience and
difficulty adapting our solutions for new markets; 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; adoption of the
company’s programmatic solutions by advertisers and publishers;
adoption of the company’s All-Screen product 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 U.S. Securities and Exchange Commission, including
its Annual Report on Form 10-K for the year ended December 31, 2014
filed with the U.S. Securities and Exchange Commission on March 16,
2015, and future filings and reports by the company, including its
Quarterly Report on Form 10-Q for the quarter ended June 30,
2015.
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 and other income (expense), net,
income tax expense, depreciation and amortization expense, non-cash
stock-based compensation expense, non-cash stock-based long-term
incentive compensation, litigation costs associated with class
action securities litigation, executive severance costs, and
acquisition related costs. 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, 2015 2014 (unaudited)
Assets Current assets: Cash and cash equivalents $
68,613 $ 77,787 Accounts receivable, net 51,272 46,765 Prepaid
expenses and other current assets 2,231 1,571 Deferred tax assets
194 194 Total current assets
122,310 126,317 Long-term assets: Restricted
cash 600 600 Property and equipment, net 11,033 5,574 Intangible
assets, net 13,134 15,552 Goodwill 29,719 29,719 Other assets
243 243 Total long-term assets
54,729 51,688 Total assets $ 177,039 $
178,005
Liabilities and stockholders' equity
Current liabilities: Accounts payable and accrued expenses $ 42,842
$ 37,258 Deferred rent and security deposits payable, short-term
296 20 Deferred revenue 45 15 Total
current liabilities 43,183 37,293 Deferred rent, long-term 3,602
745 Deferred tax liabilities 194 194
Total liabilities 46,979 38,232
Stockholders' equity: Common stock 5 5 Additional paid-in capital
276,622 274,094 Accumulated other comprehensive income 47 98
Accumulated deficit (146,614 ) (134,424 ) Total
stockholders' equity 130,060 139,773
Total liabilities and stockholders' equity $ 177,039 $
178,005
Tremor Video, Inc.
Consolidated Statements of Operations (in thousands,
except share and per share data) (unaudited)
Three Months Ended Six Months
Ended June 30, June 30, 2015
2014 2015 2014 Revenue $
46,072 $ 43,701 $ 86,675 $ 78,570 Cost of revenue 28,062
28,893 52,472 51,836
Gross profit 18,010 14,808
34,203 26,734 Operating
expenses: Technology and development(1) 4,761 3,982 9,722 8,313
Sales and marketing(1) 11,717 10,906 23,668 20,357 General and
administrative(1) 4,705 3,600 9,049 7,313 Depreciation and
amortization 1,956 1,643 3,733
3,229 Total operating expenses 23,139
20,131 46,172 39,212
Loss from operations (5,129 ) (5,323 )
(11,969 ) (12,478 ) Interest and other income
(expense), net: Interest expense (3 ) - (5 ) - Other income
(expense), net 9 (28 ) 23
(23 ) Total interest and other income (expense), net 6
(28 ) 18 (23 ) Loss
before provision for income taxes (5,123 ) (5,351 ) (11,951 )
(12,501 ) Provision for income taxes 117 21 239 100
Net loss $ (5,240 ) $ (5,372 ) $ (12,190 ) $
(12,601 )
Net loss per share: Basic and diluted $
(0.10 ) $ (0.11 ) $ (0.24 ) $ (0.25 )
Weighted-average number of shares of
common stockoutstanding:
Basic and diluted 51,445,613 50,403,168
51,332,047 50,350,749 (1)
Stock-based compensation expense included above:
Three
Months Ended Six Months Ended June 30, June
30, 2015 2014 2015 2014
Technology and development $ 218 $ 220 $ 432 $ 414 Sales and
marketing 394 362 803 721 General and administrative 535
557 1,020 971
Total stock-based compensation expense $ 1,147 $ 1,139
$ 2,255 $ 2,106
Tremor Video,
Inc. Reconciliation of Non-GAAP Financial Information
(in thousands) (unaudited)
Three Months Ended Six Months Ended
June 30, June 30, 2015
2014 2015 2014 Net loss $
(5,240 ) $ (5,372 ) $ (12,190 ) $ (12,601 ) Adjustments:
Depreciation and amortization expense 1,956 1,643 3,733 3,229
Stock-based compensation expense 1,147 1,139 2,255 2,106
Stock-based long-term incentive
compensationexpense
58 154 77 114 Interest and other (income) expense, net (6 ) 28 (18
) 23 Provision for income taxes 117 21 239 100 Litigation expenses
64 78 68 147 Executive severance 362 - 362 - Acquisition-related
costs 222 - 222 -
Total net adjustments 3,920 3,063
6,938 5,719 Adjusted EBITDA $
(1,320 ) $ (2,309 ) $ (5,252 ) $ (6,882 )
Tremor Video,
Inc. Reconciliation of Non-GAAP Financial Information - Per
Share (unaudited) Three Months Ended
Six Months Ended June 30, June 30, 2015
2014 2015 2014 Net loss $ (0.10 ) $
(0.11 ) $ (0.24 ) $ (0.25 ) Adjustments: Depreciation and
amortization expense 0.04 0.03 0.07 0.06 Stock-based compensation
expense 0.02 0.02 0.04 0.04
Stock-based long-term incentive
compensationexpense
- 0.01 - - Interest and other (income) expense, net - - - -
Provision for income taxes - - 0.01 - Litigation expenses - - -
0.01 Executive severance 0.01 - 0.01 - Acquisition-related costs
- - 0.01 -
Total net adjustments 0.07 0.06
0.14 0.11 Adjusted EBITDA per share - basic
and diluted $ (0.03 ) $ (0.05 ) $ (0.10 ) $ (0.14 )
Weighted-average number of shares of
common stockoutstanding:
Basic and diluted 51,445,613 50,403,168
51,332,047 50,350,749
Tremor Video, Inc. Consolidated Statements of Cash
Flows (in thousands) (unaudited)
Six Months Ended June 30, 2015
2014 Cash flows from operating activities: Net loss $
(12,190 ) $ (12,601 ) Adjustments required to reconcile net loss to
net cash used in operating activities: Depreciation and
amortization expense 3,733 3,229 Bad debt expense (recovery) 14 (5
) Stock-based compensation expense 2,255 2,106 Stock-based
long-term incentive compensation expense 77 114 Contingent stock
grant to third party vendor - 24 Net changes in operating assets
and liabilities: Increase in accounts receivable (4,549 ) (7,572 )
(Increase) decrease in prepaid expenses, other current assets and
other long-term assets (783 ) 98 Increase in accounts payable and
accrued expenses 5,304 6,741 Increase (decrease) in deferred rent
and security deposits payable 3,248 (1 ) Increase in deferred
revenue 30 108 Net cash used in
operating activities (2,861 ) (7,759 ) Cash
flows from investing activities: Purchase of property and equipment
(6,180 ) (1,772 ) Net cash used in investing
activities (6,180 ) (1,772 ) Cash flows from
financing activities: Proceeds from the exercise of stock options
awards 39 582 Tax withholdings related to net share settlements of
restricted stock unit awards (RSUs) (153 ) -
Net cash (used in) provided by financing activities (114 )
582 Net decrease in cash and cash equivalents
(9,155 ) (8,949 ) Effect of exchange rate changes in cash
and cash equivalents (19 ) 25 Cash and cash equivalents at
beginning of period 77,787 92,691 Cash
and cash equivalents at end of period $ 68,613 $ 83,767
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150806006409/en/
Tremor Video, Inc.Investor Relations:Andrew PosenSenior Director
Investor Relations212-792-2315IR@TremorVideo.comorPublic
Relations:Billy KennyTremor Video Corporate
Communications646-421-6217BKenny@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