Exhibit
No. |
Description
|
|
TREMOR INTERNATIONAL LTD.
|
|||
Date: August 19, 2021
|
By:
|
/s/ Sagi Niri
|
|
Name:
|
Sagi Niri
|
||
Title:
|
Chief Financial Officer
|
Three months ended June 30
|
Six Months ended June 30
|
|||||||||||||||||||||||
|
2021
|
2020
|
%
|
2021
|
2020
|
%
|
||||||||||||||||||
IFRS highlights
|
||||||||||||||||||||||||
Revenues
|
81.4
|
35.7
|
128
|
%
|
152.4
|
74.3
|
105
|
%
|
||||||||||||||||
Programmatic Revenues
|
67.5
|
22.8
|
196
|
%
|
123.2
|
50.0
|
146
|
%
|
||||||||||||||||
Operating Profit/(Loss)
|
21.2
|
(13.8
|
)
|
254
|
%
|
36.4
|
(31.5
|
)
|
216
|
%
|
||||||||||||||
Total Comprehensive Income/(Loss)
|
24.4
|
(12.7
|
)
|
293
|
%
|
36.4
|
(29.6
|
)
|
223
|
%
|
||||||||||||||
Diluted EPS
|
0.17
|
(0.09
|
)
|
292
|
%
|
0.26
|
(0.19
|
)
|
234
|
%
|
||||||||||||||
Non-IFRS highlights
|
||||||||||||||||||||||||
Contribution ex-TAC
|
73.7
|
28.5
|
159
|
%
|
136.7
|
60.6
|
126
|
%
|
||||||||||||||||
Adjusted EBITDA
|
37.3
|
1.2
|
2,930
|
%
|
64.8
|
1.8
|
3,545
|
%
|
||||||||||||||||
Adjusted EBITDA Margin
|
51
|
%
|
4
|
%
|
1,070
|
%
|
47
|
%
|
3
|
%
|
1,516
|
%
|
||||||||||||
Non-IFRS net Income (Loss)
|
32.8
|
(3.2
|
)
|
1,111
|
%
|
50.2
|
(5.7
|
)
|
983
|
%
|
||||||||||||||
Non-IFRS Diluted EPS
|
0.23
|
(0.02
|
)
|
1,054
|
%
|
0.35
|
(0.04
|
)
|
935
|
%
|
o |
Record Financial Performance Underpinned by Significant Programmatic Activity
|
o |
Q2 Contribution ex-TAC increased 159% to $73.7 million, compared to Q2 2020
|
o |
H1 Contribution ex-TAC increased by 126% to $136.7 million year-over-year
|
o |
Q2 Programmatic Revenue increased 196% to $67.5 million, compared to Q2 2020, driven by continued strong performance in CTV
|
o |
H1 Programmatic Revenue increased 146% to $123.2 million year-over-year
|
o |
Q2 Adjusted EBITDA increased 2,930% to $37.3 million year-over-year, compared to Q2 2020
|
o |
H1 Adjusted EBITDA increased 3,545% to $64.8 million year-over-year
|
o |
Continued Growth in CTV and Video Spending
|
o |
CTV Revenue grew by 280% to $20.9 million in Q2 2021, compared to the same period in 2020
|
o |
CTV accounted for 28% of total Contribution ex-TAC in Q2 2021 compared to 19% in the same period in 2020
|
o |
Video represented 81% of total Contribution ex-TAC in H1 2021, up from 69% in H1 2020
|
o |
Strengthened Balance Sheet and Exposure to U.S. Capital Markets
|
o |
On June 22, 2021, Tremor successfully raised $128.6 million (plus an additional $19.3 million in gross proceeds through underwriters’ exercising of its over-allotment option), before deducting underwriting discounts and commissions when
its American Depositary Shares (ADSs) began trading on the NASDAQ Global Market under the ticker symbol “TRMR.”
|
o |
NASDAQ listing expected to provide the Company with greater visibility in the marketplace and to better position it to raise additional capital in the future.
|
o |
The Company intends to use the net proceeds from this offering for working capital, general corporate purposes and to fund incremental growth, including possible acquisitions in the future
|
o |
Cash and cash equivalents of $275.5 million and zero debt as of June 30, 2021
|
o |
Expanding Omnichannel Solution
|
o |
Ability to run standard or tag-based audio campaigns with our supply partners such as AdsWizz, Pandora and Spotify
|
o |
Ability to target smart speakers like Amazon Echo and Google Home through connected device targeting
|
o |
Expanded Partnership Roster and Achieved Important Business Wins
|
o |
New partnerships with Tegna, Rakuten Viki and A&E
|
o |
Completed support for LiveRamp's IdentityLink solution and Unified ID 2.0 in the Exchange to facilitate industry initiatives to support a cookie-less world
|
o |
Launched in-house TV retargeting and measurement solution that provides brand advertisers the ability to reach and engage TV viewing audiences at scale with Data-Driven Video Creative (DDC)
|
o |
Tr.ly Creative has provided support this year to leading brands that include: Amazon, The Home Depot, Walgreens, NewsUK (including the Sun and Times Radio), Lego, Disney, McDonalds and Norton
|
o |
Contribution ex-TAC of at least $75 million
|
o |
Adjusted EBITDA of approximately $37 million
|
o |
Contribution ex-TAC- Contribution ex-TAC is defined as our 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 of Tremor 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.
|
o |
Adjusted EBITDA- We define 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
|
o |
Adjusted EBITDA margin - we define as Adjusted EBITDA as a percentage of Contribution ex-TAC
|
o |
Non-IFRS Income (Loss) and Non-IFRS Earnings (Loss) per Share - We define non-IFRS earnings (loss) per share 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 potential shares issued under the Employee Stock Purchase Plan, 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)
|
• |
Tremor International Q2 2021 and H1 2021 Earnings Webcast
|
• |
Thursday, August 19, 2021 at 6:00 AM (PT) / 9:00 AM (ET) and 2:00 PM (BST)
|
• |
A live and archived webcast will be made available via Tremor’s Investor Relations website at
|
• |
A full transcript of the webcast will also be made available on the Company’s website today ahead of the webcast commencing
|
• |
US/CANADA Participant Toll-Free Dial-In Number: (844) 692-7011
|
• |
INTERNATIONAL Participant Dial-In Number: (929) 517-0922
|
• |
Conference ID: 3026147
|
Tremor International Ltd
Ofer Druker, Chief Executive Officer
Sagi Niri, Chief Financial Officer
|
via Vigo Consulting
|
finnCap Ltd
Jonny Franklin-Adams / James Thompson (Corporate Finance)
Tim Redfern / Dicky Chambers (ECM)
|
Tel: +44 20 7220 0500
|
Stifel Nicolaus Europe Limited
Fred Walsh / Alain Dobkin / Nick Adams / Richard Short
|
Tel: +44 20 7710 7600
|
Vigo Consulting
Jeremy Garcia / Antonia Pollock
U.S Investor Relations
Todd Fromer
KCSA Strategic Communications
tfromer@kcsa.com
|
Tel: +44 20 7390 0230
|
|
Three months ended June 30
|
Six Months ended June 30
|
||||||||||||||||||||||
|
2021
|
2020
|
%
|
2021
|
2020
|
%
|
||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
Net Income (Loss)
|
24,069
|
(11,782
|
)
|
304
|
%
|
36,943
|
(26,041
|
)
|
242
|
%
|
||||||||||||||
Taxes on income
|
(3,427
|
)
|
(1,888
|
)
|
(1,838
|
)
|
(4,471
|
)
|
||||||||||||||||
Financial expense (income), net
|
599
|
(114
|
)
|
1,311
|
(1,002
|
)
|
||||||||||||||||||
Depreciation and amortization
|
10,029
|
10,563
|
19,912
|
22,023
|
||||||||||||||||||||
Stock-based compensation
|
2,610
|
3,333
|
4,951
|
8,561
|
||||||||||||||||||||
Restructuring & Acquisition costs
|
314
|
1,120
|
434
|
2,709
|
||||||||||||||||||||
IPO related one-time costs
|
3,133
|
--
|
3,133
|
--
|
||||||||||||||||||||
Adjusted EBITDA
|
37,327
|
1,232
|
2,930
|
%
|
64,846
|
1,779
|
3,545
|
%
|
|
Three months ended June 30
|
Six Months ended June 30
|
||||||||||||||||||||||
|
2021
|
2020
|
%
|
2021
|
2020
|
%
|
||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
Revenues
|
81,379
|
35,685
|
128
|
%
|
152,388
|
74,296
|
105
|
%
|
||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization)
|
(17,238
|
)
|
(15,227
|
)
|
(34,930
|
)
|
(28,485
|
)
|
||||||||||||||||
Depreciation and amortization attributable to Cost of Revenues
|
(4,012
|
)
|
(4,729
|
)
|
(8,199
|
)
|
(9,736
|
)
|
||||||||||||||||
Gross profit (IFRS)
|
60,129
|
15,729
|
282
|
%
|
109,259
|
36,075
|
203
|
%
|
||||||||||||||||
Depreciation and amortization attributable to Cost of Revenues
|
4,012
|
4,729
|
8,199
|
9,736
|
||||||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization)
|
17,238
|
15,227
|
34,930
|
28,485
|
||||||||||||||||||||
Performance media cost
|
(7,632
|
)
|
(7,178
|
)
|
6
|
%
|
(15,653
|
)
|
(13,677
|
)
|
14
|
%
|
||||||||||||
Contribution ex-TAC (Non-IFRS)
|
73,747
|
28,507
|
159
|
%
|
136,735
|
60,619
|
126
|
%
|
|
Three months ended June 30
|
Six Months ended June 30
|
||||||||||||||||||||||
|
2021
|
2020
|
%
|
2021
|
2020
|
%
|
||||||||||||||||||
($ in thousands)
|
||||||||||||||||||||||||
Net Income (Loss)
|
24,069
|
(11,782
|
)
|
304
|
%
|
36,943
|
(26,041
|
)
|
242
|
%
|
||||||||||||||
Acquisition and related items, including amortization of acquired intangibles and restructuring
|
7,065
|
7,531
|
13,653
|
15,561
|
||||||||||||||||||||
Stock-based compensation expense
|
2,610
|
3,333
|
4,951
|
8,561
|
||||||||||||||||||||
IPO related one-time costs
|
3,133
|
--
|
3,133
|
--
|
||||||||||||||||||||
Tax effect of Non-GAAP adjustments (1)
|
(4,117
|
)
|
(2,323
|
)
|
(8,442
|
)
|
(3,771
|
)
|
||||||||||||||||
Non-IFRS Income (Loss)
|
32,760
|
(3,241
|
)
|
1,111
|
%
|
50,238
|
(5,690
|
)
|
983
|
%
|
||||||||||||||
Weighted average shares outstanding—diluted (in millions) (2)
|
143.8
|
135.6
|
142.1
|
134.4
|
||||||||||||||||||||
Non-IFRS diluted EPS (in USD)
|
0.23
|
(0.02
|
)
|
1,054
|
%
|
0.35
|
(0.04
|
)
|
935
|
%
|
(1) |
Non-IFRS income (loss) includes the estimated tax impact from the expense items reconciling between net loss and non-IFRS income (loss)
|
(2) |
Non-IFRS earnings (loss) per share is computed using the same weighted-average number of shares that are used to compute GAAP earnings (loss) per share in periods where there is both a non-GAAP loss and a GAAP net loss
|
June 30
|
December 31
|
|||||||
2021
|
2020
|
|||||||
USD thousands
|
||||||||
Assets
|
||||||||
ASSETS:
|
||||||||
Cash and cash equivalents
|
275,544
|
97,463
|
||||||
Trade receivables, net
|
139,676
|
153,544
|
||||||
Other receivables
|
17,138
|
17,615
|
||||||
Current tax assets
|
1,507
|
2,029
|
||||||
TOTAL CURRENT ASSETS
|
433,865
|
270,651
|
||||||
Fixed assets, net
|
3,003
|
3,292
|
||||||
Right-of-use assets
|
16,330
|
18,657
|
||||||
Intangible assets, net
|
210,854
|
224,500
|
||||||
Deferred tax assets
|
35,408
|
31,717
|
||||||
Other long term assets
|
1,630
|
1,834
|
||||||
TOTAL NON-CURRENT ASSETS
|
267,225
|
280,000
|
||||||
TOTAL ASSETS
|
701,090
|
550,651
|
||||||
Liabilities and shareholders’ equity
|
||||||||
LIABILITIES:
|
||||||||
Current maturities of lease liabilities
|
7,230
|
9,047
|
||||||
Trade payables
|
133,045
|
125,863
|
||||||
Other payables
|
43,909
|
47,122
|
||||||
Current tax liabilities
|
4,379
|
3,162
|
||||||
TOTAL CURRENT LIABILITIES
|
188,563
|
185,194
|
||||||
Employee benefits
|
501
|
495
|
||||||
Long-term lease liabilities
|
10,461
|
12,162
|
||||||
Deferred tax liabilities
|
12,821
|
15,963
|
||||||
Other long term liabilities
|
4,542
|
7,824
|
||||||
TOTAL NON-CURRENT LIABILITIES
|
28,325
|
36,444
|
||||||
TOTAL LIABILITIES
|
216,888
|
221,638
|
||||||
SHAREHOLDERS’ EQUITY:
|
||||||||
Share capital
|
429
|
380
|
||||||
Share premium
|
383,457
|
264,831
|
||||||
Other comprehensive income
|
2,837
|
3,330
|
||||||
Retained earnings
|
97,479
|
60,472
|
||||||
TOTAL SHAREHOLDERS’ EQUITY
|
484,202
|
329,013
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
701,090
|
550,651
|
Chairman of the Board of Directors
|
Chief Executive Officer
|
Chief Finance Officer
|
Six months ended
June 30
|
Three months ended
June 30
|
|||||||||||||||
2021
|
*2020
|
2021
|
2020
|
|||||||||||||
USD thousands
|
USD thousands
|
|||||||||||||||
Revenues
|
152,388
|
74,296
|
81,379
|
35,685
|
||||||||||||
Expenses:
|
||||||||||||||||
Cost of Revenues (Exclusive of depreciation and amortization shown separately below)
|
34,930
|
28,485
|
17,238
|
15,227
|
||||||||||||
Research and development expenses
|
6,808
|
6,484
|
3,405
|
2,963
|
||||||||||||
Selling and marketing expenses
|
36,519
|
33,010
|
18,469
|
14,841
|
||||||||||||
General and administrative expenses
|
18,003
|
15,808
|
11,197
|
5,875
|
||||||||||||
Depreciation and amortization**
|
19,912
|
22,023
|
10,029
|
10,563
|
||||||||||||
Other Income
|
(200
|
)
|
-
|
(200
|
)
|
-
|
||||||||||
Total Expenses
|
115,972
|
105,810
|
60,138
|
49,469
|
||||||||||||
Operating Profit (Loss)
|
36,416
|
(31,514
|
)
|
21 ,241
|
(13,784
|
)
|
||||||||||
Financing income
|
(173
|
)
|
(1,362
|
)
|
(87
|
)
|
(258
|
)
|
||||||||
Financing expenses
|
1,484
|
360
|
686
|
144
|
||||||||||||
Financing expenses (income), net
|
1,311
|
(1,002
|
)
|
599
|
(114
|
)
|
||||||||||
Profit (Loss) before taxes on income
|
35,105
|
(30,512
|
)
|
20,642
|
(13,670
|
)
|
||||||||||
Tax benefit
|
1,838
|
4,471
|
3,427
|
1,888
|
||||||||||||
Profit (loss) for the period
|
36,943
|
(26,041
|
)
|
24,069
|
(11,782
|
)
|
||||||||||
Other comprehensive income items:
|
||||||||||||||||
Foreign currency translation differences for foreign operation
|
(493
|
)
|
(3,511
|
)
|
343
|
(878
|
)
|
|||||||||
Total other comprehensive income (loss)
|
(493
|
)
|
(3,511
|
)
|
343
|
(878
|
)
|
|||||||||
Total comprehensive income (loss)
|
36,450
|
(29,552
|
)
|
24,412
|
(12,660
|
)
|
||||||||||
Earnings (loss) per share
|
||||||||||||||||
Basic earnings (loss) per share (in USD)
|
0.272
|
(0.194
|
)
|
0.175
|
(0.087
|
)
|
||||||||||
Diluted earnings (loss) per share (in USD)
|
0.260
|
(0.194
|
)
|
0.167
|
(0.087
|
)
|
Share capital
|
Share premium
|
Other comprehensive income
|
Retained Earnings
|
Total
|
||||||||||||||||
USD thousands
|
||||||||||||||||||||
Balance as of January 1, 2021
|
380
|
264,831
|
3,330
|
60,472
|
329,013
|
|||||||||||||||
Total Comprehensive income (loss) for the period
|
||||||||||||||||||||
Profit for the period
|
-
|
-
|
-
|
36,943
|
36,943
|
|||||||||||||||
Other comprehensive Income:
|
||||||||||||||||||||
Foreign Currency Translation
|
-
|
-
|
(493
|
)
|
-
|
(493
|
)
|
|||||||||||||
Total comprehensive Income (loss) for the period
|
-
|
-
|
(493
|
)
|
36,943
|
36,450
|
||||||||||||||
Transactions with owners, recognized directly in equity
|
||||||||||||||||||||
Revaluation of liability for put option on non- controlling interests
|
-
|
-
|
-
|
64
|
64
|
|||||||||||||||
Issuance of shares net of issuance costs of $11.9million
|
41
|
118,054
|
118,095
|
|||||||||||||||||
Own shares acquired
|
(3
|
)
|
(6,640
|
)
|
-
|
-
|
(6,643
|
)
|
||||||||||||
Share based payments
|
-
|
6,912
|
-
|
-
|
6,912
|
|||||||||||||||
Exercise of share options
|
11
|
300
|
-
|
-
|
311
|
|||||||||||||||
Balance as of June 30, 2021
|
429
|
383,457
|
2,837
|
97,479
|
484,202
|
|||||||||||||||
Balance as of January 1, 2020
|
351
|
240,989
|
494
|
58,778
|
300,612
|
|||||||||||||||
Total Comprehensive loss for the period
|
||||||||||||||||||||
Loss for the period
|
-
|
-
|
-
|
(26,041
|
)
|
(26,041
|
)
|
|||||||||||||
Other comprehensive Income:
|
||||||||||||||||||||
Foreign currency translation
|
-
|
-
|
(3,511
|
)
|
-
|
(3,511
|
)
|
|||||||||||||
Total comprehensive loss for the period
|
-
|
-
|
(3,511
|
)
|
(26,041
|
)
|
(29,552
|
)
|
||||||||||||
Transactions with owners, recognized directly in equity
|
||||||||||||||||||||
Own shares acquired
|
(8
|
)
|
(5,172
|
)
|
-
|
-
|
(5,180
|
)
|
||||||||||||
Issuance of shares in Business Combination
|
25
|
14,092
|
-
|
-
|
14,117
|
|||||||||||||||
Share based payments
|
-
|
8,346
|
-
|
-
|
8,346
|
|||||||||||||||
Revaluation of liability for put option on non-controlling interests
|
(110
|
)
|
(110
|
)
|
||||||||||||||||
Exercise of share options
|
12
|
548
|
-
|
-
|
560
|
|||||||||||||||
Balance as of June 30, 2020
|
380
|
258,803
|
(3,017
|
)
|
32,627
|
288,793
|
Six months ended
June 30
|
||||||||
2021
|
2020
|
|||||||
USD thousands
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Profit (loss) for the period
|
36,943
|
(26,041
|
)
|
|||||
Adjustments for:
|
||||||||
Depreciation and amortization
|
19,912
|
22,023
|
||||||
Net financing expense (income)
|
1,235
|
(1,131
|
)
|
|||||
Loss on sale of fixed assets
|
6
|
-
|
||||||
Gain on leases change contracts
|
(307
|
)
|
(2,843
|
)
|
||||
Share-based payment
|
4,951
|
8,561
|
||||||
Gain on sale of business unit
|
(200
|
)
|
-
|
|||||
Tax benefit
|
(1,838
|
)
|
(4,471
|
)
|
||||
Change in trade and other receivables
|
15,677
|
43,244
|
||||||
Change in trade and other payables
|
259
|
(31,849
|
)
|
|||||
Change in employee benefits
|
4
|
(40
|
)
|
|||||
Income taxes received
|
1,940
|
903
|
||||||
Income taxes paid
|
(1,680
|
)
|
(1,047
|
)
|
||||
Interest received
|
170
|
290
|
||||||
Interest paid
|
(311
|
)
|
(404
|
)
|
||||
Net cash provided by operating activities
|
76,761
|
7,195
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Change in pledged deposits
|
(205
|
)
|
185
|
|||||
Leases Receipt
|
1,625
|
1,279
|
||||||
Repayment of long-term loans
|
-
|
817
|
||||||
Acquisition of fixed assets
|
(1,770
|
)
|
(393
|
)
|
||||
Acquisition and capitalization of intangible assets
|
(2,484
|
)
|
(2,438
|
)
|
||||
Acquisition of subsidiaries, net of cash acquired
|
-
|
6,227
|
||||||
Proceeds from sale of business unit
|
152
|
-
|
||||||
Net cash provided by (used in) investing activities
|
(2,682
|
)
|
5,677
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Acquisition of own shares
|
(6,643
|
)
|
(5,180
|
)
|
||||
Issuance of shares, net of issuance costs
|
118,446
|
-
|
||||||
Payment of call/put option
|
(2,414
|
)
|
-
|
|||||
Proceeds from exercise of share options
|
311
|
560
|
||||||
Leases repayment
|
(5,537
|
)
|
(8,058
|
)
|
||||
Net cash provided by (used in) financing activities
|
104,163
|
(12,678
|
)
|
|||||
Net increase in cash and cash equivalents
|
178,242
|
194
|
||||||
CASH AND CASH EQUIVALENTS AS OF THE BEGINNING OF PERIOD
|
97,463
|
79,047
|
||||||
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS
|
(161
|
)
|
(98
|
)
|
||||
CASH AND CASH EQUIVALENTS
|
275,544
|
79,143
|
NOTE 1: |
GENERAL
|
a. |
Reporting entity:
|
b. |
On April 1, 2019, the Company completed an acquisition transaction with RhythmOne and on January 4, 2020, the Company completed an acquisition transaction with Unruly. Following the acquisition of RhythmOne and Unruly, the Company invested
and developed capabilities both in the DSP and SSP solutions which launched in 2020 to offer an end-to-end platform that provides customers access to an advertising marketplace in an efficient and scalable manner utilizing machine learning,
artificial intelligence and advanced algorithms As a result of those acquisitions and their influence on the Company’s operation and other changes in the industry practice, the Company has changed revenue presentation as of 2020 to a net
basis with respect to its programmatic activity (see Note 3K in annual financial statements). Consequently, comparative information has been restated to correct the error as follows:
|
Six months ended
|
||||||||||||
June 30 2020(unaudited)
|
||||||||||||
As presented
|
||||||||||||
in the past
|
Effect of
|
As presented in
|
||||||||||
financial
|
retrospective
|
these financial
|
||||||||||
statements
|
adjustment
|
statements
|
||||||||||
USD thousand
|
||||||||||||
Revenues
|
136,500
|
62,204
|
74,296
|
|||||||||
Cost of revenues
|
90,689
|
62,204
|
28,485
|
c. |
The COVID-19 pandemic continues to create business and economic uncertainty and volatility and is expected to continue to impact the global economy, disrupted global supply chains and work force participation and created volatility and
disruption of financial markets impacted mainly the Company's operation during the first half of fiscal year 2020. The extent of the impact of COVID-19 pandemic on the Company's operational and financial performance is monitoring by the
Company and will depend on future developments, which are highly uncertain and cannot be predicted, including but not limited to, the duration and spread of the pandemic.
|
d. |
Material events in the reporting period:
|
e. |
Definitions:
|
The Company
|
-
|
Tremor International Ltd and its subsidiaries
|
Subsidiaries
|
-
|
Companies, the financial statements of which are fully consolidated, directly or indirectly, with the financial statements of the Company such as Unruly Group, LLC, Unruly Holding Ltd, Tremor
Video Inc.
|
Related party
|
-
|
As defined by IAS 24, “Related Party Disclosures”.
|
a. |
Statement of compliance:
|
b. |
Use of estimates and judgments:
|
c. |
Classification of expenses:
|
Issued and paid-in share capital:
|
Ordinary Shares
|
||||||||
2021
|
2020
|
|||||||
Number of shares
|
||||||||
Balance as of January 1
|
133,916,229
|
124,223,182
|
||||||
Own shares held by the Group
|
(917,998
|
)
|
(2,833,395
|
)
|
||||
Share based compensation
|
3,741,234
|
4,170,129
|
||||||
Issuance of shares in IPO *
|
13,537,906
|
-
|
||||||
Shares issued in business combination **
|
-
|
8,525,323
|
||||||
Issued and paid-in share capital as of June 30
|
150,277,371
|
134,085,239
|
||||||
Authorized share capital
|
500,000,000
|
300,000,000
|
NOTE 5: |
EARNINGS (LOSS) PER SHARE
|
Six months ended
June 30 (unaudited)
|
||||||||
2021
|
2020
|
|||||||
USD thousands
|
||||||||
Profit (loss) for the period
|
36,943
|
(26,041
|
)
|
Three months ended
June 30 (unaudited)
|
||||||||
2021
|
2020
|
|||||||
USD thousands
|
||||||||
Profit (loss) for the period
|
24,069
|
(11,782
|
)
|
Six months ended
June 30 (unaudited)
|
||||||||
2021
|
2020
|
|||||||
Shares of NIS
|
||||||||
0.01 par value
|
||||||||
Weighted average number of ordinary shares used to calculate basic earnings per share as of June 30
|
136,033,008
|
134,369,723
|
||||||
Basic earnings (loss) per share (in USD)
|
0.272
|
(0.194
|
)
|
Three months ended
June 30 (unaudited)
|
||||||||
2021
|
2020
|
|||||||
Shares of NIS
|
||||||||
0.01 par value
|
||||||||
Weighted average number of ordinary shares used to calculate basic earnings per share as of June 30
|
137,645,630
|
135,620,865
|
||||||
Basic earnings (loss) per share (in USD)
|
0.175
|
(0.087
|
)
|
Six months ended
June 30 (unaudited)
|
||||||||
2021
|
2020
|
|||||||
Shares of NIS
|
||||||||
0.01 par value
|
||||||||
Weighted average number of ordinary shares used to calculate basic earnings per share
|
136,033,008
|
134,369,723
|
||||||
Effect of share options issued
|
6,084,840
|
-
|
||||||
Weighted average number of ordinary shares used to calculate diluted earnings per share
|
142,117,848
|
134,369,723
|
||||||
Diluted earnings (loss) per share (in USD)
|
0.260
|
(0.194
|
)
|
Three months ended
June 30 (unaudited)
|
||||||||
2021
|
2020
|
|||||||
Shares of NIS
|
||||||||
0.01 par value
|
||||||||
Weighted average number of ordinary shares used to calculate basic earnings per share
|
137,645,630
|
135,620,865
|
||||||
Effect of share options issued
|
6,112,829
|
|||||||
Weighted average number of ordinary shares used to calculate diluted earnings per share
|
143,758,459
|
135,620,865
|
||||||
Diluted earnings (loss) per share (in USD)
|
0.167
|
(0.087
|
)
|
NOTE 6: |
SHARE-BASED PAYMENT ARRANGEMENTS
|
a. |
Share-based compensation plan:
|
• |
All the share options that were granted are non-marketable.
|
• |
All options are to be settled by physical delivery of ordinary shares or ADSs.
|
• |
Vesting conditions are based on a service period of between 0.5-4 years.
|
b. |
Stock Options:
|
Number of options
|
Weighted average
exercise price
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(Thousands)
|
(GBP)
|
|||||||||||||||
Outstanding of 1 January
|
3,781
|
4,828
|
||||||||||||||
Forfeited
|
(102
|
)
|
(1,473
|
)
|
1.6
|
2.76
|
||||||||||
Exercised
|
(167
|
)
|
(729
|
)
|
1.35
|
0.47
|
||||||||||
Granted
|
-
|
1,551
|
-
|
1.58
|
||||||||||||
Outstanding of June 30
|
3,512
|
4,177
|
||||||||||||||
Exercisable of June 30
|
214
|
535
|
||||||||||||||
Originally granted
|
Amended Granted
|
|||||||||||||
Grated
date
|
Number of options
|
Exercise price
(GBP)
|
Exercisable date from
|
Exercise price
(GBP)
|
Exercisable date from
|
|||||||||
March 20, 2017
|
217,000
|
2.44
|
March 20, 2019
|
1.60
|
July 28, 2021
|
|||||||||
June 18, 2017
|
116,000
|
2.99
|
June 18, 2019
|
1.60
|
July 28, 2021
|
|||||||||
November 5, 2017
|
391,000
|
4.31
|
November 5, 2019
|
1.60
|
July 28, 2021
|
|||||||||
January 23, 2018
|
1,163,000
|
4.37
|
January 23, 2020
|
1.60
|
July 31, 2021
|
|||||||||
June 20, 2018
|
52,000
|
4.37
|
June 20, 2020
|
1.60
|
July 31, 2021
|
|||||||||
April 2, 2019
|
265,174
|
2.06-18.27
|
April 2, 2019
|
1.60
|
July 28, 2021
|
c. |
Information on measurement of fair value of share-based payment plans:
|
d. |
Restricted Share Units (RSU):
|
Number of RSU’s
|
Weighted-Average Grant Date
Fair Value
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(Thousands)
|
||||||||||||||||
Outstanding at 1 January
|
3,777
|
3,969
|
2.364
|
2.372
|
||||||||||||
Forfeited
|
(12
|
)
|
(45
|
)
|
6.071
|
3.922
|
||||||||||
Exercised
|
(1,656
|
)
|
(1,822
|
)
|
2.145
|
2.216
|
||||||||||
Granted
|
4,765
|
1,909
|
10.017
|
2.413
|
||||||||||||
Restricted stock units assumed in acquisition during the period
|
-
|
415
|
-
|
2.592
|
||||||||||||
Outstanding at June 30
|
6,874
|
4,426
|
2.752
|
2.418
|
e. |
Performance Stock Units (PSU):
|
Number of PSU’s
|
Weighted-Average Grant Date
Fair Value
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(Thousands)
|
||||||||||||||||
Outstanding of January 1
|
3,852
|
5,071
|
2.155
|
2.105
|
||||||||||||
Forfeited
|
(90
|
)
|
(181
|
)
|
2.429
|
2.389
|
||||||||||
Exercised
|
(1,918
|
)
|
(1,738
|
)
|
2.408
|
2.402
|
||||||||||
Granted
|
2,065
|
725
|
10.010
|
2.590
|
||||||||||||
Outstanding of June 30
|
3,909
|
3,877
|
8.652
|
2.265
|
f. |
Share based expense recognized in the statements of operation and other comprehensive income is as follows:
|
Six months ended
June 30 (unaudited)
|
||||||||
2021
|
2020
|
|||||||
USD thousands
|
||||||||
Selling and marketing
|
1,112
|
2,975
|
||||||
Research and development
|
263
|
182
|
||||||
General and administrative
|
3,576
|
5,404
|
||||||
4,951
|
8,561
|
Three months ended
June 30 (unaudited)
|
||||||||
2021
|
2020
|
|||||||
USD thousands
|
||||||||
Selling and marketing
|
425
|
1,052
|
||||||
Research and development
|
120
|
160
|
||||||
General and administrative
|
2,065
|
2,121
|
||||||
2,610
|
3,333
|
NOTE 7: |
Subsidiaries
|
NOTE 8: |
OPERATING SEGMENTS
|
Six months ended
June 30 (unaudited)
|
||||||||
2021
|
2020
|
|||||||
USD thousands
|
||||||||
America
|
135,663
|
63,696
|
||||||
APAC
|
9,470
|
8,538
|
||||||
EMEA
|
7,255
|
2,062
|
||||||
Total
|
152,388
|
74,296
|
Three months ended
June 30 (unaudited)
|
||||||||
2021
|
2020
|
|||||||
USD thousands
|
||||||||
America
|
72,403
|
30,077
|
||||||
APAC
|
4,920
|
4,454
|
||||||
EMEA
|
4,056
|
1,154
|
||||||
Total
|
81,379
|
35,685
|
NOTE 9: |
SUBSEQUENT EVENTS
|