FEBRUARY 20, 2017 EDGEWARE YEAR END REPORT 2016
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
FEBRUARY 20, 2017
EDGEWARE
YEAR END REPORT 2016
2 © EDGEWARE 2015 / CONFIDENTIAL
AGENDA
1. Q4 in short 2. About Edgeware and our market 3. Results 4. Outlook
3 © EDGEWARE 2015 / CONFIDENTIAL
TODAY’S PRESENTERS
JOACHIM ROOS, CEO
STEEVE FÜHR CFO & HR
4 © EDGEWARE 2015 / CONFIDENTIAL
AGENDA
1. Q4 in short 2. About Edgeware and our market 3. Results 4. Outlook
5 © EDGEWARE 2015 / CONFIDENTIAL
2016 IN SHORT
SEK 85 M 30,6% SEK
18 M
SEK 252 M 23,9% SEK
34 M FULL YEAR 2016
NET SALES
INCREASE NET SALES
ADJUSTED OPERATING PROFIT
KEY FIGURES Q4
NET MARGIN
21,1%
13,6%
MANY CUSTOMERS CONTRIBUTED
ENTERING AUSTRALIA SALES HIRES ACCELERATED
Q4 IN SHORT IMPORTANT EVENTS
IPO 9 DECEMBER
7 © EDGEWARE 2015 / CONFIDENTIAL
AGENDA
1. Q4 in short 2. About Edgeware and our market 3. Results 4. Outlook
• Founded in 2004 • Enabling distribution of video content over
networks
• Scalable, high performance and cost-efficient solution
• Global presence with HQ in Stockholm • Blue-chip customer base of mobile and cable
operators, broadcasters as well as OTT providers
• More than 150 customers in 60 countries • Before the IPO fully owned by Amadeus
Capital Partners, Creandum, Micron Technology, founders, management and employees
• Listed on Nasdaq Stockholm December, 9 2016 (29 SEK)
ABOUT EDGEWARE
8
Hong Kong
Stockholm
TRENDS IN TV AND VIDEO DISTRIBUTION
0
40 000
80 000
120 000
2015 2016E 2017E 2018E 2019E 2020E
Petabytes2
) per m
onth
Internet TV and video Other
VIDEO STREAMING IS EXPLODING
10
EXISTING STREAMING INFRASTRUCTURE IS INSUFFICIENT
Internet not built to support expected demand
Under-invested infrastructure resulting in
poor quality of service
2014-2019E CAGR
31%
12%
3)
PREDICTED TO BE MORE THAN 80% OF INTERNET TRAFFIC BY 2020
THE EDGEWARE JOURNEY
11
NET SALES ADJ EBIT
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
CAGR ‘07-’16
39% SHIFTING TO DIRECT
ENGAGEMENT
BREAKTHROUGH ORDER
DEVELOPMENT OF VALUE PROPOSITION
NEW DIRECT SALES STRATEGY IMPLEMENTED
SCALING WITH PARTNERS AND EXPANDING PRODUCT OFFERING
12 © EDGEWARE 2015 / CONFIDENTIAL
AGENDA
1. Q4 in short 2. About Edgeware and our market 3. Results 4. Outlook
NET SALES (MSEK) ADJUSTED OPERATING INCOME (MSEK)
Q4 NET SALES AND ADJUSTED OPERATING INCOME
13
• Net Sales increased 31% YoY • Net Sales increase in local currency 26% YoY • Stable gross margin 71% (70%)
1 4 0 9 10
3 -5 5
12
-1 5
18
2% 10%
1% 16% 19%
7%
-13%
7% 19%
-1%
9% 21%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2014 2015 2016
Adj Operating Income Adj Operating margin %
30 35 31 52 53 51
36
65 64 51 53
85
69% 74% 73% 72% 72% 66% 68% 70% 73%
66% 68% 71%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2014 2015 2016 Net Sales Gross Margin %
• Adj Operating Income 21% (7%), (excl IPO costs) • Sales and Admin costs in line with previous year • Increased cost for R&D related to consultants
2016 NET SALES AND ADJUSTED OPERATING INCOME
14
FULL YEAR 2016
• Net Sales increased 24% (23% in local currency)
• Operating expenses for Sales and Admin (excluding IPO costs) in line with 2015
• R&D expenses increased compared to 2015, mainly related to higher consultancy costs
• Strong development in EMEA and APAC • AMERICAS YoY growth impacted by large installation
in Mexico during Q4 2015 • Service sales growing in line with product sales
148
204 252
13 13 34
72% 69% 70%
9% 7% 14%
2014 2015 2016
Net Sales Adj Operating Income
Gross Margin Adj Operating Margin
2014 2015 2016 16 vs 15 % EMEA 128 136 189 39%AMERICAS 13 55 41 -25%APAC 6 12 22 83%Total Sales 148 204 252 24% Products 119 168 208 24%Services 29 36 44 24%Total Sales 148 204 252 24%
BALANCE SHEET AND CASH FLOW
15
• Strong balance sheet with equity ratio of 76% (50) • Continued conservative approach to capitalized development costs 14% (19) of gross R&D • Strong cash position 195 MSEK (21) and no loans or interest bearing debt • Cash flow from operation 45 MSEK (15)
Dec 2014 Dec 2015 Dec 2016 Total Assets 106 136 310 Intangible Assets 7 13 15 Cash and cash equivalents 17 21 195 Total Equity 60 68 234 Cash flow from Operation 10 15 45
16 © EDGEWARE 2015 / CONFIDENTIAL
AGENDA
1. Q4 in short 2. About Edgeware and our market 3. Results 4. Outlook
OTTs CHALLENGE ESTABLISHED PAY-TV VALUE CHAIN
17
OTTs / Broadcasters
Telecom operators Cable operators CDN as a service providers
Viewers
EDGEWARE’S SOLUTION TARGETS ALL
• ”TVB surrenders license as it quits Hong Kong pay-TV market” (Rapid TV News)
• ”Several factors are driving the value proposition for private CDNs” (Frost & Sullivan)
• ”Top Vendors Increasing Their Lead” (IPTV Market Leader Report) http://marketintelligence.spglobal.com/blog/iptv-market-leader-report-top-vendors-increasing-their-lead
NEWS AND REPORTS IN OUR MARKET
18
—
FINANCIAL TARGETS
19
TARGET 2016 ACTUAL
Sales growth
Margin
Dividend policy
organic annual net sales growth exceeding 20%
long-term exceeding 15%
No dividend will be paid in the coming years. Edgeware’s cash flow will be used to finance
continued development
23.9 %
13.6 %
LARGEST SHAREHOLDERS LIST OF SHAREHOLDERS NUMBER OF SHARES NUMBER OF SHARES AND VOTES 1. AMADEUS 6,937,205 23.1% 2. CREANDUM 5,635,975 18.8%
3. SWEDBANK ROBUR FUNDS 2,598,720 8.6%
4. GRENSPECIALISTEN 1,724,138 5.7% 5. CATELLA FUNDS 1,431,491 4.8% 6. LMK FORWARD AND FOUNDATION 1,431,491 4.8%
7. OST/VÄST 1,021,462 3.4% 8. AMF SMALL CAP FUND 1,000,000 3.3% 9. CLIENS 560,000 1.9% 10. LUKAS HOLM 518,249 1.7% 11. JOACHIM ROOS 518,226 1.7% 12. KALLE HENRIKSSON 518,226 1.7%
TOTAL 12 LARGEST SHAREHOLDERS 23,895,183 79.5% OTHERS 6,147,825 20.5% TOTAL 30,043,008 100%
20
Related Documents
