Tremor International Reports Results for the Third Quarter and Nine-Month Period Ended September 30, 2022
Generated record Q3 CTV spend which grew 45% year-over-year, and Company believes it is well-positioned for success during the 2022 FIFA World Cup through global ad monetization exclusivity on the FIFA+ app across Hisense connected TVs powered by VIDAA and its global partner ecosystem
Completed acquisition of
Generated positive Adjusted EBITDA from
Financial Summary
- Generated Q3 Contribution ex-TAC of
$64.9 million compared to$76.7 million in Q3 2021, and Contribution ex-TAC of$206.7 million for the nine months endedSeptember 30, 2022 , compared to$213.4 million for the nine months endedSeptember 30, 2021 . All results for the three and nine months endedSeptember 30, 2022 include contributions fromAmobee for the period from when the acquisition ofAmobee closed onSeptember 12, 2022 throughSeptember 30, 2022 . Advertising demand during Q3 2022 remained impacted by challenging macroeconomic conditions, particularly as several direct-to-consumer brand customers experienced significant pressure on advertising budgets due to rising inflation.
- Achieved Q3 Adjusted EBITDA of
$30.1 million compared to$42.3 million in Q3 2021 and Adjusted EBITDA of$102.9 million for the nine months endedSeptember 30, 2022 , compared to$107.2 million for the nine months endedSeptember 30, 2021 .
- Maintained strong margins including a 43% Adjusted EBITDA margin in Q3 2022 on a reported revenue basis, and 46% on a Contribution ex-TAC basis, and a 45% Adjusted EBITDA margin on a reported revenue basis, and 50% on a Contribution ex-TAC basis for the nine months ended
September 30, 2022 .
- Continued to expand CTV market share with record Q3 CTV spend of
$73.0 million , reflecting an increase of 45% compared to$50.4 million in Q3 2021, and record CTV spend of$183.9 million for the nine months endedSeptember 30, 2022 , representing an increase of 33% compared to$138.4 million in the nine months endedSeptember 30, 2021 .
- CTV spend during the nine months ended
September 30, 2022 , reflected 39% of total spend and 44% of programmatic spend.
- Video revenue, including CTV, continued to represent the overwhelming majority of Tremor’s Contribution ex-TAC at approximately 87% for Q3 2022 and 81% for the nine months ended
September 30, 2022 .
- Strong
$109.1 million net cash position as of September 30, 2022, following the completed acquisition ofAmobee , investment in VIDAA, and completion of$75 million share repurchase program, provides ample liquidity for current business needs as well as future potential investments and initiatives. As ofSeptember 30, 2022 , the Company has utilized$100 million from its secured$180 million credit facility relating to its acquisition ofAmobee , including$90 million from a secured Term Loan A and$10 million from a Revolving Credit Facility. The Company had$80 million remaining on its revolving credit facility as ofSeptember 30, 2022 .
“During the third quarter we executed on long-term strategic initiatives that we believe will support our future growth by completing our acquisition of
Operational Highlights and Recent Business Wins
- Completed acquisition of
Amobee for$239 million , significantly expanding Tremor’s customer base, technology capabilities, and total addressable market, and unlocked stronger-than-expected cost synergies:- Tremor has already realized the entire initially anticipated
$50 million in annualized operating cost synergies on a combined pro forma basis and successfully generated positive Adjusted EBITDA fromAmobee within the first three weeks of closing the acquisition. - Management now expects to achieve total operating cost synergies of approximately
$65 million on a combined pro forma basis following the completion of the integration. - The Company now expects to fully complete the technology integration by the end of 2023 with the majority of the integration expected to be fulfilled by the end of H1 2023.
- Amobee’s DSP significantly boosts the Company’s enterprise self-service footprint and omnichannel capabilities and is complementary to Tremor Video’s DSP capabilities, enabling cross-selling opportunities to capture more overall budget from advertising customers.
- Amobee’s Advanced TV (“ATV”) planning technology adds a new capability for Tremor to sell linear planning products to TV broadcasters, unlocking additional revenue opportunities within a significantly expanded total addressable market.
- The combination of Amobee’s ATV technology, Tremor’s in-house SSP, and the Company’s pre-existing strength within CTV, positions the Company well for the future as many media partners have both linear and CTV footprints, leading advertisers to plan campaigns, deploy budget, and seek to understand reach, across both formats simultaneously.
- Tremor has already realized the entire initially anticipated
- Completed
$25 million investment in VIDAA and enhanced strategic relationship with Hisense, VIDAA’s parent Company:- Tremor’s equity stake in VIDAA extends the Company’s exclusive agreement to share VIDAA’s automatic content recognition (“ACR”) data for global targeting and measurement across Tremor’s end-to-end platform.
- VIDAA also granted ad monetization exclusivity in the US,
UK ,Canada , andAustralia to the Unruly SSP and Spearad ad server. - VIDAA is expected to utilize the investment to support its plan to increase its distribution across additional OEMs in several key markets, which is anticipated to further increase the benefits of Tremor’s investment.
- FIFA World Cup, investment in VIDAA, and Hisense relationship, positions Tremor to capitalize on current and future CTV revenue opportunities associated with Hisense’s sports marketing strategy:
- Tremor’s investment in VIDAA enables exclusive ad monetization worldwide on the FIFA+ app across an anticipated reach of over 100 million Hisense smart TVs powered by VIDAA and its global partner ecosystem.
FIFA also granted Tremor the exclusive global right to monetize ads on its website and mobile inventory during the tournament.- Tremor expects additional potential future sports-related exclusive content opportunities.
- Generated continued momentum with customers and partners across Tremor Video and Unruly:
- Unruly added 82 new supply partners, including 33 in the US, during Q3 2022, and 232 new supply partners, including 104 in the US, during the nine months ended
September 30, 2022 . Supply partners were added across critical growth verticals such as sports, news, and entertainment, and several formats including online video, mobile, CTV, and OTT (“over-the-top”) apps from leading broadcast and Virtual Multichannel Video Programming Distributor (“vMVPD”) businesses. - Unruly
CTRL , Tremor’s self-service platform for publishers, saw PMP spend increase by 268% during Q3 2022, compared to Q3 2021, and saw PMP spend increase by 414% during the nine months endedSeptember 30, 2022 , compared to the same prior year period. - Tremor Video added 56 new advertiser customers during Q3 2022, and 191 for the nine months ended
September 30, 2022 , across retail, political, and automotive verticals, as well as others. - Tr. ly’s customer utilization remained heavily associated with its most premium creative products both in the US and internationally. Tr. ly generated 27% more creative requests from advertisers in Q3 2022 than in Q3 2021 and 17% more creative requests over the nine months ended
September 30, 2022 , than the same prior year period. Tr. ly’s premium creative testing and insights product, EQ Max, saw 45% more bookings in Q3 2022 than in Q3 2021 and 22% more bookings for the nine months endedSeptember 30, 2022 , than the same prior year period.
- Unruly added 82 new supply partners, including 33 in the US, during Q3 2022, and 232 new supply partners, including 104 in the US, during the nine months ended
Share Repurchase Program Updates
Tremor International completed its$75 million share repurchase program during Q3 2022, repurchasing 6,391,015 Ordinary shares at an average price of388.39 pence during the quarter, which reflected a total investment of approximately £24.9 million, or$29.7 million .- For the entire program, the Company repurchased 13,792,485 Ordinary shares, representing approximately 9% of shares outstanding, at an average price of
437.54 pence , for a total investment of approximately £60.5 million, or$75.0 million , including fees. - In
September 2022 , the Company’s Board of Directors approved a new share repurchase program, authorizing the purchase of up to$20 million of its Ordinary shares on the AIM Market. The additional repurchase program is being financed through existing cash resources. - The additional
$20 million share repurchase program began onOctober 1, 2022 , and will continue until eitherApril 1, 2023 , or until it has been completed. The share repurchase program does not obligate Tremor to repurchase any particular amount of Ordinary Shares and the program may be suspended, modified, or discontinued at any time at the Company’s discretion, subject to applicable law.
Financial Guidance
- Management believes Tremor remains well-positioned to benefit from anticipated industry secular growth trends and Company-specific catalysts including the FIFA World Cup, the completed acquisition of
Amobee , and its investment in VIDAA, and that the efficiency of its end-to-end technology platform and operating model, diverse customer base, and broad range of revenue verticals should help mitigate potential negative effects of expected market headwinds and accordingly, Tremor estimates:
- Q4 2022 Contribution ex-TAC of approximately
$103 million - Q4 2022 Adjusted EBITDA of approximately
$37 million - Full year 2022 Contribution ex-TAC of approximately $310 million
- Full year 2022 Adjusted EBITDA of approximately
$140 million - Full year 2023 Contribution ex-TAC of approximately $460 million
- Full year 2023 Adjusted EBITDA of approximately
$180 million
- Q4 2022 Contribution ex-TAC of approximately
- Tremor’s Q4 2022, full year 2022, and full year 2023 guidance include contributions from its acquisition of
Amobee following the closing date of that acquisition and is based on the expectation there will be no major Covid-19- or other pandemic-related setbacks or significant escalation of war or other hostilities that may cause economic conditions to further deteriorate or otherwise significantly reduce advertiser demand. - The Company’s guidance has also taken into consideration challenging market conditions that limited advertiser activity in Q3 2022, including rising inflation, rising interest rates, geopolitical and macroeconomic uncertainty, recession concerns, and widespread global supply chain issues in certain verticals such as automotive. The Company expects that these challenges could continue to have an impact on the advertising demand environment for the remainder of 2022 and beyond.
Third Quarter 2022 Financial Highlights ($ in millions, except per share amounts)
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||||||||||
| 2022 | 2021 | % | 2022 | 2021 | % | ||||||
| IFRS highlights | |||||||||||
| Non-IFRS Highlights | |||||||||||
| Revenues | 70.9 | 87.0 | (19%) | 227.6 | 239.4 | (5%) | |||||
| Programmatic Revenues | 60.1 | 68.9 | (13%) | 179.9 | 192.1 | (6%) | |||||
| Operating Profit | 4.1 | 13.7 | (70%) | 33.9 | 50.1 | (32%) | |||||
| Total Comprehensive Income/(Loss) | (5.2) | 10.2 | (151%) | 6.4 | 46.7 | (86%) | |||||
| Diluted EPS | (0.01) | 0.07 | (109%) | 0.11 | 0.33 | (66%) | |||||
| Contribution ex-TAC | 64.9 | 76.7 | (15%) | 206.7 | 213.4 | (3%) | |||||
| Adjusted EBITDA | 30.1 | 42.3 | (29%) | 102.9 | 107.2 | (4%) | |||||
| Adjusted EBITDA Margin | 46% | 55% | (16%) | 50% | 50% | 0% | |||||
| Non-IFRS net Income | 16.9 | 33.3 | (49%) | 65.9 | 83.5 | (21%) | |||||
| Non-IFRS Diluted EPS | 0.11 | 0.21 | (47%) | 0.42 | 0.56 | (26%) | |||||
Third Quarter and Nine Month 2022 Financial Results Webcast and Conference Call Details
- Tremor International Third Quarter and Nine Months Ended September 30, 2022 Earnings Webcast and Conference Call
November 14, 2022 , at 6:00 AM PT, 9:00 AM ET and 2:00 PM GMT- Webcast Link: https://edge.media-server.com/mmc/p/oz2rb9di
- Participant Dial-In Number:
- US/
CANADA Participant Toll-Free Dial-In Number: (800) 715-9871 UK Participant Toll-Free Dial-In Number: +44 800 260 6466- INTERNATIONAL Participant Dial-In Number: (646) 307-1963
- Conference ID: 7216349
- US/
Use of Non-IFRS Financial Information
In addition to our IFRS results, we review certain non-IFRS financial measures to help us evaluate our business, measure our performance, identify trends affecting our business, establish budgets, measure the effectiveness of investments in our technology and development and sales and marketing, and assess our operational efficiencies. These non-IFRS measures include Contribution ex-TAC, Adjusted EBITDA, Non-IFRS Net Income (Loss) and Non-IFRS Earnings (Loss) per share, each of which is discussed below.
These non-IFRS financial measures are not intended to be considered in isolation from, as substitutes for, or as superior to, the corresponding financial measures prepared in accordance with IFRS. You are encouraged to evaluate these adjustments and review the reconciliation of these non-IFRS financial measures to their most comparable IFRS measures, and the reasons we consider them appropriate. It is important to note that the particular items we exclude from, or include in, our non-IFRS financial measures may differ from the items excluded from, or included in, similar non-IFRS financial measures used by other companies. See "Reconciliation of Revenue to Contribution ex-TAC," "Reconciliation of Net Income (Loss) to Adjusted EBITDA," and "Reconciliation of Net Income (Loss) to Non-IFRS Net income," included as part of this press release.
- Contribution ex-TAC: Contribution ex-TAC for both
Tremor International andAmobee is defined as gross profit plus depreciation and amortization attributable to cost of revenues and cost of revenues (exclusive of depreciation and amortization) minus the Performance media cost (“traffic acquisition costs” or “TAC”). Contribution ex-TAC is a supplemental measure of our financial performance that is not required by, or presented in accordance with, IFRS. Contribution ex-TAC should not be considered as an alternative to gross profit as a measure of financial performance. Contribution ex-TAC is a non-IFRS financial measure and should not be viewed in isolation. We believe Contribution ex-TAC is a useful measure in assessing the performance ofTremor International , because it facilitates a consistent comparison against our core business without considering the impact of traffic acquisition costs related to revenue reported on a gross basis.
- Adjusted EBITDA: We define, for both
Tremor International andAmobee , as total comprehensive income for the period adjusted for foreign currency translation differences for foreign operations, financing expenses, net, tax benefit, depreciation and amortization, stock-based compensation, restructuring, acquisition and IPO-related costs and other expenses (income), net. Adjusted EBITDA is included in the press release because it is a key metric used by management and our board of directors to assess our financial performance. Adjusted EBITDA is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Management believes that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate directly to the performance of the underlying business.
- Adjusted EBITDA margin: We define as Adjusted EBITDA as a percentage of Contribution ex-TAC for both
Tremor International andAmobee .
- Non-IFRS Income (Loss) and Non-IFRS Earnings (Loss) per Share: We define non-IFRS earnings (loss) per share, for both
Tremor International andAmobee , as non-IFRS income (loss) divided by non-IFRS weighted-average shares outstanding. Non-IFRS income (loss) is equal to net income (loss) excluding stock-based compensation, cash and non-cash based acquisition and related expenses, including amortization of acquired intangible assets, merger related severance costs, transaction expenses. In periods in which we have non-IFRS income, non-IFRS weighted-average shares outstanding used to calculate non-IFRS earnings per share includes the impact of potentially dilutive shares. Potentially dilutive shares consist of stock options, restricted stock awards, restricted stock units and performance stock units, each computed using the treasury stock method. We believe non-IFRS earnings (loss) per share is useful to investors in evaluating our ongoing operational performance and our trends on a per share basis, and also facilitates comparison of our financial results on a per share basis with other companies, many of which present a similar non-IFRS measure. However, a potential limitation of our use of non-IFRS earnings (loss) per share is that other companies may define non-IFRS earnings (loss) per share differently, which may make comparison difficult. This measure may also exclude expenses that may have a material impact on our reported financial results. Non-IFRS earnings (loss) per share is a performance measure and should not be used as a measure of liquidity. Because of these limitations, we also consider the comparable IFRS measure of net income (loss).
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (as implemented into English law) ("MAR"). With the publication of this announcement via a
About Tremor International
Tremor is a global company offering an end-to-end technology advertising platform, operating across three core capabilities - Video, Data and CTV. Tremor's unique approach is centered on offering a full stack of end-to-end solutions which provides it with a major competitive advantage within the video advertising ecosystem.
Tremor Video helps advertisers deliver impactful brand stories across all screens through the power of innovative video technology combined with advanced audience data and captivating creative content. Tremor Video's innovative video advertising technology has offerings in CTV, in-stream, out-stream and in-app. To learn more, visit www.tremorvideo.com
Unruly, the media side of Tremor, drives real business outcomes in multiscreen advertising. Its programmatic platform efficiently and effectively delivers performance, quality, and actionable data to demand and supply-focused clients and partners. Tremor has a meaningful number of direct integrations with premium publishers, unique demand relationships with a variety of advertisers and privileged access to News Corp inventory. Unruly connects to the world's largest DSPs and is compatible with most Ad Age top 100 brands. To learn more, visit www.unruly.co
Tremor is headquartered in
For more information, visit: https://www.tremorinternational.com/
For further information please contact:
ir@tremorinternational.com
KCSA (U.S. Investor Relations)
tremorir@kcsa.com
Vigo Consulting (U.K. Financial PR & Investor Relations)
Tel: +44 20 7390 0230 or tremor@vigoconsulting.com
finnCap Ltd.
Tim Redfern / Harriet Ward (ECM)
Tel: +44 20 7220 0500
Tel: +44 20 7710 7600
PR Contact
VP, Communications,
csmith@tremorinternational.com
Forward Looking Statements
This press release contains forward-looking statements, including forward-looking statements within the meaning of Section 27A of the United Stated Securities Act of 1933, as amended, and Section 21E of the United States Securities and Exchange Act of 1934, as amended. Forward-looking statements are identified by words such as “anticipates,” “believes,” “expects,” “intends,” “may,” “can,” “will,” “estimates,” and other similar expressions. However, these words are not the only way Tremor identifies forward-looking statements. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the anticipated financial results for Q4 2022, full year 2022, and full year 2023; anticipated benefits of Tremor’s strategic transactions and commercial partnerships; anticipated features and benefits of Tremor’s products and service offerings; Tremor’s positioning for continued future growth in both the US and international markets in the fourth quarter of 2022 and beyond; Tremor’s implementation of a substantial share repurchase while also continuing to evaluate strategic opportunities to acquire companies and invest in technology, products, sales and marketing to further expand its platform; Tremor’s medium- to long-term prospects; management’s belief that Tremor is well-positioned to benefit from anticipated future industry growth trends and Company-specific catalysts; the potential negative impact of inflationary pressures, rising interest rates, geopolitical and macroeconomic uncertainty, recession concerns, and the widespread global supply chain issues that have limited advertising activity and the anticipation that these challenges could continue to have an impact for the remainder of 2022 and beyond; the anticipated impact of the FIFA World Cup on Tremor’s anticipated performance; the anticipated benefits from the Company’s investment in VIDAA and its enhanced strategic relationship with Hisense; the anticipated benefits and synergies from the
Tremor, and the Tremor logo are trademarks of Tremor International Ltd. in the United States and other countries. All other trademarks are the property of their respective owners. The use of the word “partner” or “partnership” in this press release does not mean a legal partner or legal partnership.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
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| 2022 | 2021 | % | 2022 | 2021 | % | ||||||
| ($ in thousands) | |||||||||||
| Net Income (Loss) | (959) | 11,880 | (108%) | 17,676 | 48,823 | (64%) | |||||
| Taxes on income | 4,458 | 1,491 | 14,648 | (347) | |||||||
| Financial expense , net | 617 | 312 | 1,610 | 1,623 | |||||||
| Depreciation and amortization | 10,159 | 10,033 | 25,516 | 29,945 | |||||||
| Stock-based compensation | 11,166 | 18,745 | 42,519 | 23,696 | |||||||
| Restructuring & Acquisition costs | 4,685 | 74 | 5,992 | 508 | |||||||
| Other income | - | - | (5,103) | - | |||||||
| IPO related one-time costs | - | (195) | - | 2,938 | |||||||
| Adjusted EBITDA | 30,126 | 42,340 | (29%) | 102,858 | 107,186 | (4%) | |||||
Reconciliation of Revenue to Contribution ex-TAC
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| 2022 | 2021 | % | 2022 | 2021 | % | ||||||
| ($ in thousands) | |||||||||||
| Revenues | 70,851 | 87,023 | (19%) | 227,553 | 239,411 | (5%) | |||||
| Cost of revenues (exclusive of depreciation and amortization) | (14,064) | (16,373) | (43,480) | (51,303) | |||||||
| Depreciation and amortization attributable to Cost of Revenues | (5,925) | (4,010) | (13,557) | (12,209) | |||||||
| Gross profit (IFRS) | 50,862 | 66,640 | (24%) | 170,516 | 175,899 | (3%) | |||||
| Depreciation and amortization attributable to Cost of Revenues | 5,925 | 4,010 | 13,557 | 12,209 | |||||||
| Cost of revenues (exclusive of depreciation and amortization) | 14,064 | 16,373 | 43,480 | 51,303 | |||||||
| Performance media cost | (5,976) | (10,359) | (20,829) | (26,012) | |||||||
| Contribution ex-TAC (Non-IFRS) | 64,875 | 76,664 | (15%) | 206,724 | 213,399 | (3%) | |||||
Reconciliation of Net Income (Loss) to Non-IFRS Net Income
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| 2022 | 2021 | % | 2022 | 2021 | % | ||||||
| ($ in thousands) | |||||||||||
| Net Income (Loss) | (959) | 11,880 | (108%) | 17,676 | 48,823 | (64%) | |||||
| Acquisition and related items, including amortization of acquired intangibles and restructuring | 9,072 | 6,641 | 18,264 | 20,294 | |||||||
| Stock-based compensation expense | 11,166 | 18,745 | 42,519 | 23,696 | |||||||
| IPO related one-time costs | - | (195) | - | 2,938 | |||||||
| Other Income | - | - | (5,103) | - | |||||||
| Tax effect of Non-GAAP adjustments (1) | (2,390) | (3,793) | (7,488) | (12,235) | |||||||
| Non-IFRS Income | 16,889 | 33,278 | (49%) | 65,868 | 83,516 | (21%) | |||||
| Weighted average shares outstanding—diluted (in millions) (2) | 153.3 | 159.7 | 156.5 | 147.8 | |||||||
| Non-IFRS diluted EPS (in USD) | 0.11 | 0.21 | (47%) | 0.42 | 0.56 | (26%) | |||||
| (1) | Non-IFRS income includes the estimated tax impact from the expense items reconciling between net income (loss) and non-IFRS income |
| (2) | Non-IFRS earnings per share is computed using the same weighted-average number of shares that are used to compute IFRS earnings per share |
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(Unaudited)
| 2022 | 2021 | |||
| USD thousands | ||||
| Assets | ||||
| ASSETS: | ||||
| Cash and cash equivalents | 211,571 | 367,717 | ||
| Trade receivables, net | 227,406 | 165,063 | ||
| Other receivables | 25,527 | 18,236 | ||
| Current tax assets | 931 | 981 | ||
| TOTAL CURRENT ASSETS | 465,435 | 551,997 | ||
| Fixed assets, net | 28,707 | 3,464 | ||
| Right-of-use assets | 31,130 | 13,955 | ||
| Intangible assets, net | 398,719 | 208,220 | ||
| Deferred tax assets | 20,083 | 24,431 | ||
| Investment in shares | 25,000 | - | ||
| Other long-term assets | 472 | 672 | ||
| TOTAL NON-CURRENT ASSETS | 504,111 | 250,742 | ||
| TOTAL ASSETS | 969,546 | 802,739 | ||
| Liabilities and shareholders’ equity | ||||
| LIABILITIES: | ||||
| Current maturities of lease liabilities | 15,621 | 7,119 | ||
| Trade payables | 223,621 | 161,812 | ||
| Other payables | 57,424 | 42,900 | ||
| Current tax liabilities | 4,979 | 8,836 | ||
| TOTAL CURRENT LIABILITIES | 301,645 | 220,667 | ||
| Employee benefits | 240 | 426 | ||
| Long term debt | 98,385 | - | ||
| Other long-term liabilities | 4,456 | - | ||
| Long-term lease liabilities | 18,441 | 7,876 | ||
| Deferred tax liabilities | 1,377 | 1,395 | ||
| TOTAL NON-CURRENT LIABILITIES | 122,899 | 9,697 | ||
| TOTAL LIABILITIES | 424,544 | 230,364 | ||
| SHAREHOLDERS’ EQUITY: | ||||
| Share capital | 418 | 442 | ||
| Share premium | 403,685 | 437,476 | ||
| Other comprehensive income (loss) | (10,536 | ) | 698 | |
| Retained earnings | 151,435 | 133,759 | ||
| TOTAL SHAREHOLDERS’ EQUITY | 545,002 | 572,375 | ||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 969,546 | 802,739 | ||
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATION AND OTHER COMPREHENSIVE INCOME
(Unaudited)
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||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||
| USD thousands | USD thousands | ||||||||||
| Revenues | 227,553 | 239,411 | 70,851 | 87,023 | |||||||
| Expenses: | |||||||||||
| Cost of Revenues (Exclusive of depreciation and amortization shown separately below) |
43,480 | 51,303 | 14,064 | 16,373 | |||||||
| Research and development expenses | 21,818 | 10,916 | 8,237 | 4,108 | |||||||
| Selling and marketing expenses | 59,447 | 55,453 | 18,739 | 18,934 | |||||||
| General and administrative expenses | 48,461 | 41,895 | 15,536 | 23,892 | |||||||
| Depreciation and amortization | 25,516 | 29,945 | 10,159 | 10,033 | |||||||
| Other income, net | (5,103 | ) | (200 | ) | - | - | |||||
| Total Expenses | 193,619 | 189,312 | 66,735 | 73,340 | |||||||
| Operating Profit | 33,934 | 50,099 | 4,116 | 13,683 | |||||||
| Financing income | (1,870 | ) | (394 | ) | (843 | ) | (221 | ) | |||
| Financing expenses | 3,480 | 2,017 | 1,460 | 533 | |||||||
| Financing expenses, net | 1,610 | 1,623 | 617 | 312 | |||||||
| Profit before taxes on income | 32,324 | 48,476 | 3,499 | 13,371 | |||||||
| Tax benefit (expenses) | (14,648 | ) | 347 | (4,458 | ) | (1,491 | ) | ||||
| Profit (Loss) for the period | 17,676 | 48,823 | (959 | ) | 11,880 | ||||||
| Other comprehensive income (loss) items: | |||||||||||
| Foreign currency translation differences for foreign operation | (11,234 | ) | (2,127 | ) | (4,246 | ) | (1,634 | ) | |||
| Total other comprehensive income (loss) | (11,234 | ) | (2,127 | ) | (4,246 | ) | (1,634 | ) | |||
| Total comprehensive income (loss) | 6,442 | 46,696 | (5,205 | ) | 10,246 | ||||||
| Earnings per share | |||||||||||
| Basic earnings (loss) per share (in USD) | 0.12 | 0.35 | (0.01 | ) | 0.08 | ||||||
| Diluted earnings (loss) per share (in USD) | 0.11 | 0.33 | (0.01 | ) | 0.07 | ||||||
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY
(Unaudited)
| Share capital |
Share premium |
Other comprehensive income |
Retained Earnings |
Total | |||||||||
| USD thousands | |||||||||||||
| Balance as of |
442 | 437,476 | 698 | 133,759 | 572,375 | ||||||||
| Total Comprehensive income (loss) for the period | |||||||||||||
| Profit for the period | - | - | - | 17,676 | 17,676 | ||||||||
| Other comprehensive Income: | |||||||||||||
| Foreign Currency Translation | - | - | (11,234 | ) | - | (11,234 | ) | ||||||
| Total comprehensive Income (loss) for the period | 442 | 437,476 | (10,536 | ) | 151,435 | 578,817 | |||||||
| Transactions with owners, recognized directly in equity | |||||||||||||
| Own shares acquired | (41 | ) | (74,959 | ) | - | - | (75,000 | ) | |||||
| Share based payments | - | 39,109 | - | - | 39,109 | ||||||||
| Exercise of share options | 17 | 2,059 | - | - | 2,076 | ||||||||
| Balance as of |
418 | 403,685 | )10,536( | 151,435 | 545,002 | ||||||||
| Balance as of |
|||||||||||||
| Total Comprehensive income (loss) for the period | 380 | 264,831 | 3,330 | 60,472 | 329,013 | ||||||||
| Profit for the period | - | - | - | 48,823 | 48,823 | ||||||||
| Other comprehensive Income: | |||||||||||||
| Foreign Currency Translation | - | - | (2,127 | ) | - | (2,127 | ) | ||||||
| Total comprehensive Income (loss) for the period | 380 | 264,831 | 1,203 | 109,295 | 375,709 | ||||||||
| Transactions with owners, recognized directly in equity | |||||||||||||
| Revaluation of liability for put option on non- controlling interests | - | - | - | 64 | 64 | ||||||||
| Issuance of shares | 47 | 136,111 | - | - | 136,158 | ||||||||
| Own shares acquired | (3 | ) | (6,640 | ) | - | - | (6,643 | ) | |||||
| Share based payments | - | 25,150 | - | - | 25,150 | ||||||||
| Exercise of share options | 14 | 1,045 | - | - | 1,059 | ||||||||
| Balance as of |
438 | 420,497 | 1,203 | 109,359 | 531,497 | ||||||||
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(Unaudited)
| Nine months ended |
|||||
| 2022 | 2021 | ||||
| USD thousands | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
| Profit for the period | 17,676 | 48,823 | |||
| Adjustments for: | |||||
| Depreciation and amortization | 25,516 | 29,945 | |||
| Net financing expense | 1,537 | 1,505 | |||
| Loss (gain) on leases change contracts | 56 | (373 | ) | ||
| Share-based payment | 42,519 | 23,696 | |||
| Gain on sale of business unit | - | (200 | ) | ||
| Tax expenses (benefit) | 14,648 | (347 | ) | ||
| Change in trade and other receivables | 41,282 | 17,912 | |||
| Change in trade and other payables | (73,315 | ) | 1,436 | ||
| Change in employee benefits | (176 | ) | (194 | ) | |
| Income taxes received | 948 | 2,231 | |||
| Income taxes paid | (13,017 | ) | (2,858 | ) | |
| Interest received | 1,685 | 238 | |||
| Interest paid | (298 | ) | (447 | ) | |
| Net cash provided by operating activities | 59,061 | 121,367 | |||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||
| Change in pledged deposits | 1,455 | (102 | ) | ||
| Leases Receipt | 833 | 2,200 | |||
| Acquisition of fixed assets | (1,011 | ) | (2,193 | ) | |
| Acquisition and capitalization of intangible assets | (4,869 | ) | (3,691 | ) | |
| Acquisition of subsidiaries, net of cash acquired | (199,928 | ) | - | ||
| Investment in shares | (25,000 | ) | - | ||
| Proceeds from sale of business unit | 857 | 275 | |||
| Net cash used in investing activities | (227,663 | ) | (3,511 | ) | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||
| Acquisition of own shares | (75,000 | ) | (6,643 | ) | |
| Issuance of shares, net of issuance costs | - | 134,557 | |||
| Payment of call option liability | - | (2,414 | ) | ||
| Proceeds from exercise of share options | 2,076 | 1,059 | |||
| Receipt of long-term debt, net of debt cost | 98,977 | - | |||
| Leases repayment | (7,082 | ) | (8,106 | ) | |
| Net cash provided by financing activities | 18,971 | 118,453 | |||
| Net increase (decrease) in cash and cash equivalents | (149,631 | ) | 236,309 | ||
| CASH AND CASH EQUIVALENTS AS OF THE BEGINNING OF PERIOD | 367,717 | 97,463 | |||
| EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS | (6,515 | ) | (490 | ) | |
| CASH AND CASH EQUIVALENTS AS OF THE END OF PERIOD | 211,571 | 333,282 | |||
Source: Tremor International Ltd.