Paris, 6 May 2021 - 17:45 pm
- Revenues of €15.5 million up 26% year-on-year and by 8% on a like-for-like basis
- Leveraging the combination of Ateme and Anevia technologies to address new market opportunities
- Underpinning topline acceleration in coming months
| Consolidated data (in € thousands) | Q1 2020 | Q1 2021 | Change 2021/2020 | Change [1] Like for like |
| IFRS | ||||
| EMEA | 3 884 | 6 875 | +77% | +30% |
| USA / Canada | 4 847 | 5 290 | +9% | +11% |
| Latin America | 1 255 | 1 725 | +37% | -9% |
| Asia Pacific | 2 379 | 1 631 | -31% | -31% |
| TOTAL | 12 364 | 15 520 | +26% | +8% |
Q1 figures are unaudited.
ATEME (ISIN: FR0011992700), the emerging leader in video delivery infrastructure, generated revenues of €15.5 million in the first quarter of 2021, up 26% year-on-year and 8% on a like-for-like basis.
- revenues rose 77% year-on-year to €6,875K, a strong performance due in equal part to organic growth of 30% and the addition of Anevia sales. This strong performance reflected notably a large deal with a Tier1 content provider in the UK (not fully recognized in Q1). The region also notably signed 2 multi-year contracts.
- The USA/Canada region delivered revenues of €5,290K, up 9%, and by 11% like-for-like reflecting the combination of organic growth and currency change effect.
- Latin America revenues were up 37% to €1,725K, thanks to a very significant contribution of Anevia revenues. On a like-for like basis they declined by 9%, reflecting the pandemic impact, but the region also closed 3 multi-year contracts.
- Asia Pacific revenues were down 31% to €1,631K, reflecting a negative base effect (+62% last year). The contribution of Anevia in this region is minor.
Monthly Recurring Revenue (MRR) rose from €1,500K in January 2021 to €1,560K in April 2021. Due to seasonal factors (Q1 being systematically the lowest quarter in the year) as well as Anevia's very recent adoption of MRR-generating business models, this performance should not be extrapolated over the year as a whole.
Emerging technologies and growth opportunities
Ateme continued to invest in R&D, leveraging the combination of Ateme and Anevia technologies and solutions to position the group on multiple market opportunities:
- Dynamic Ad Insertion (DAI) requires a combination of live and file encoding (TITAN) with a digital delivery solution (NEA). Ateme is now uniquely positioned to address this market segment. DAI is by nature a variable cost operation and fits therefore nicely with our strategy of transitioning to recurring revenues.
- The video industry is undergoing a transformation from engineering- to data-centric, for example measuring the return on investment of a personalized channel. Leveraging its pioneering expertise in virtualization technologies, Ateme is launching 'Pilot', a new solution to address workflow automation and analytics, confirming the company's addition of business decision tools to its value proposition. Pilot aims to control the TITAN and NEA video processing engines while collecting data to enhance the quality of experience for viewers.
- Ateme is working closely with the Streaming Video Alliance and supports the 'Open Caching' initiative. This technology facilitates inter-operability of Content Delivery Networks (CDN), enabling ISPs to monetize their CDN with Content Providers.
- With telecom operators rolling out 5G networks, Ateme is anticipating the impact on video usage by transforming its product range and contributing to the 3GPP definition of global standards for 5G streaming.
- Finally, Anevia's Flamingo product line, addressing the hospitality sector, is generating growing interest amongst some of Ateme's Tier1 video distributors in countries where the end of the Covid-19 pandemic is now anticipated.
Revenue growth set to accelerate
These initiatives and multiple other elements underpin our confidence in an acceleration of revenues growth in the coming months:
- Anevia's NEA software solution is currently being evaluated by major Ateme customers with an attendant boost in the commercial pipeline.
- The improvement in the Covid-19 situation is expected to accelerate business decisions in the US and Europe in the coming months.
Ateme Chairman and Chief Executive Officer, Michel Artières, said: "We are satisfied with this first quarter performance, and in particular the strong rebound in Europe. Our focus remains on rapidly building a strong pipeline for Anevia's NEA software solution amongst existing Ateme customers, as well as transitioning more of our customers to models generating recurring revenues. All lights are green to achieve our short- and medium-term objectives."
Financial Calendar:
16 July 2021: Second Quarter 2021 revenues
About Ateme: Ateme is a global leader of video compression and delivery solutions helping Tier-1 Content Providers, Service Providers and Streaming Platforms to boost their viewership and subscription engagement.
Leveraging a unique R&D task force in the video industry, Ateme's solutions power green sustainable TV services, improve end-users' quality of experience, optimize the total cost of ownership of TV/VOD services and generate new revenue streams based on personalization and ad insertion. Beyond the technology agility, Ateme's value proposition is to partner with his customers by offering a great flexibility in the engagement and business models matching their financial priorities. A consequence is a rapid shift to Recurring Revenues, boosting the company resilience and creating long term value for the shareholders.
Founded in 1991, Ateme has 480 employees spread over its headquarters in France and 20 offices around the world including the USA, Brazil, Argentina, UK, Spain, Germany, Russia, the UAE, Singapore, China, Korea, and Australia.
Ateme has been listed on the Paris Euronext market since 2014 and in November 2020 it made the acquisition of Anevia, a provider of OTT and IPTV software solutions. In 2020, Ateme served close to 1,000 customers worldwide with revenues of €70.7 million, of which 93% outside its home market.
Name: Ateme - ISIN Code: FR0011992700 - Ticker: Ateme - Compartment: B
| Ateme | INVESTOR RELATIONS | PRESS RELATIONS |
| Michel Artières President and CEO | Olivier Lambert Tel: +33 (0)1 53 67 36 33 Ateme@actus.fr | Anne-Catherine Bonjour Tel: +33 (0)1 53 67 36 93 acbonjour@actus.fr |
DISCLAIMER
This press release does not constitute or form part of and should not be construed as any offer for sale of or solicitation of any offer to buy any securities of Ateme, nor should it, or any part of it, form the basis of or be relied on in connection with any contract or commitment whatsoever concerning Ateme's assets, activities or shares.
All statements other than historical facts included in this presentation, including without limitations, those regarding Atemes' position, business strategy, plans and objectives are forward-looking statements.
The forward-looking statements included herein are for illustrative purposes only and are based on management's current views and assumptions. Such forward-looking statements involve known and unknown risks. For illustrative purposes only, such risks include but are not limited to impact of external events on customers and suppliers; the effects of competing technologies competition generally in main markets; profitability of the expansion strategy; litigation; ability to establish and maintain strategic relationships in major businesses; and the effect of future acquisitions and investments.
Ateme expressly disclaims any obligation or undertaking to update or revise any projections, forecasts or estimates contained in this presentation to reflect any change in events, conditions, assumptions or circumstances on which any such statements are based, unless so required by applicable law. These materials are supplied to you solely for your information and may not be copied or distributed to any other person (whether in or outside your organization) or published, in whole or in part, for any purpose.
[1]At constant exchange rate and perimeter
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