Welcome!

News Feed Item

YuMe Reports First Quarter 2014 Financial Results

YuMe, Inc. (NYSE: YUME), a leading provider of digital video brand advertising solutions, today announced its financial results for the first quarter ended March 31, 2014. Financial highlights include:

  • Revenue of $37.3 million, an increase of 40% from the first quarter of 2013 (Q1 2013);
  • Gross margin of 45.9%, compared to 45.3% in Q1 2013;
  • Adjusted EBITDA1 loss of $2.7 million, compared to a loss of $1.6 million in Q1 2013;
  • Net loss of $5.1 million, or $0.16 per diluted share, compared to $3.3 million, or $0.69 per diluted share, in Q1 2013;
  • $58.7 million in cash, cash equivalents and marketable securities as of March 31, 2014.

“With strong financial performance and the launch of our Video Reach programmatic offering, YuMe’s first quarter was a great start to 2014,” said Jayant Kadambi, Chief Executive Officer of YuMe. “We continue to invest in data sciences and our unique cross-screen capabilities to deliver on the promise of digital video for our TV brand advertisers, and we remain confident in our ability to execute on our 2014 financial objectives.”

Customer highlights for the first quarter of 2014 include:

  • 351 advertising customers, an increase of 37% from 256 in Q1 2013;
  • Average revenue per advertising customer of $104,000, an increase of 3% from $101,000 in Q1 2013.

Customer highlights for the twelve month period ended March 31, 2014, include:

  • 634 advertising customers, an increase of 27% from 500 for the twelve month period ended March 31, 2013;
  • Average revenue per advertising customer of $234,000, a decrease of 4% from $243,000 for the twelve month period ended March 31, 2013.

Business Outlook:

Today, the Company is providing the following estimates for its key financial measures for the second quarter and full year 2014:

      Q2 2014     FY 2014
Revenue

$40 - $42 million

$190 - $200 million

Adjusted EBITDA

$(4.0) - $(2.0) million

$2.0 - $8.0 million
 

CFO Transition:

YuMe also announced today that Timothy Laehy will step down from his role as chief financial officer, effective May 23. Mr. Laehy has served as YuMe’s CFO for over three years, during which time he built a strong finance organization and helped lead the Company through its IPO.

Mr. Laehy will be succeeded on an interim basis by Tony Carvalho, currently YuMe’s Vice President of Finance. Mr. Carvalho joined YuMe in March 2013 and has held finance leadership positions at a number of technology companies, including Chief Financial Officer at Xoom Corporation, Vice President of Finance/Corporate Controller at PayPal, and Vice President of Finance at ServiceSource. Mr. Carvalho is a certified public accountant and holds a Bachelor’s degree from the University of Mumbai.

“Tim was instrumental in preparing YuMe to become a publicly-traded company, and I appreciate his efforts over the last three years,” said Mr. Kadambi, Chief Executive Officer of YuMe. “Tim put together an experienced finance team to support YuMe’s future growth, and we wish him continued success. I am confident that Tony will succeed in leading the finance team during the CFO search process.”

“After building YuMe’s finance team and leading the Company through its IPO process, the time is right for me to return to my passion and pursue an early-stage growth company opportunity,” Mr. Laehy said. “YuMe has a strong finance team, and I am confident they will continue to perform at a high level to support YuMe’s growth opportunities going forward.”

Conference Call and Webcast Information:

Senior management will host a conference call at 4:30 p.m. ET today to discuss the Company’s results. Investors may access the live call by dialing (877) 941-1427 or (480) 629-9664. A replay will be available through Tuesday, May 20 at (800) 406-7325 or (303) 590-3030. (Conference ID: 4680477). A live and archived Webcast of the call will be available at http://investors.yume.com.

About YuMe

YuMe, Inc. is a leading provider of digital video brand advertising solutions. Its proprietary data-science driven technologies and large audience footprint drive inventory monetization and enable advertisers to reach targeted, brand receptive audiences across a wide range of Internet-connected devices. Designed to serve the specific needs of brand advertising, YuMe’s technology platform simplifies the complexities associated with delivering effective digital video advertising campaigns in today’s highly-fragmented market. YuMe is headquartered in Redwood City, CA with European headquarters in London and eleven additional offices worldwide. For more information, visit YuMe.com/pr, follow @YuMeVideo and like YuMe on Facebook. Current YuMe logos can be found at www.yume.com/news/logos.

YuMe is a trademark of YuMe, Inc. All other brands, products or service names are or may be trademarks or service marks of their respective owners.

Forward-Looking Statements

This press release contains forward-looking statements, including those in management quotations and under the caption “Business Outlook”. In some cases, you can identify forward-looking statements by the words “may,” “will,” “expect,” “intend,” “plan,” “objective,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue” and “ongoing,” or the negative of these terms, or other comparable terminology intended to identify statements about the future. All statements other than statements of historical fact are statements that could be forward-looking statements, including, but not limited to, statements about our growth strategy; our operating results, including revenue, gross margin, net loss and adjusted EBITDA; market trends; and quotations from management. These forward-looking statements are subject to risks and uncertainties, assumptions and other factors that could cause actual results and the timing of events to differ materially from future results that are expressed or implied in our forward-looking statements. Factors that could cause or contribute to such differences include our history of net losses and limited operating history, which make it difficult to evaluate our prospects, our fluctuating quarterly results of operations, and our dependence on a limited number of customers in a highly competitive industry. These and other risk factors are discussed under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013 that has been filed with the U.S. Securities and Exchange Commission (the “SEC”), and in our future filings and reports with the SEC, including our Quarterly Report on Form 10-Q for the three months ended March 31, 2014. The forward-looking statements in this press release are based on information available to YuMe as of the date hereof, and YuMe assumes no obligation to update any forward-looking statements.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), we report adjusted EBITDA, which is a non-GAAP financial measure. We calculate adjusted EBITDA as net income, excluding income taxes, interest, depreciation and amortization, and stock-based compensation. We believe that adjusted EBITDA provides useful information to investors in understanding our operating results in the same manner as management and the board of directors. This non-GAAP information is not necessarily comparable to non-GAAP information presented by other companies. Non-GAAP financial information should not be viewed as a substitute for, or superior to, financial information prepared in accordance with GAAP. Users of this non-GAAP financial information should consider the types of events and transactions for which adjustments have been made.

We have included adjusted EBITDA in this release because it is a key measure we use to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, we believe that adjusted EBITDA can provide a useful measure for period-to-period comparisons of our operating results because it excludes some expenses that may mask underlying trends.

In the table following the financial statements attached to this press release, the non-GAAP financial measures used in this press release are reconciled to the most directly comparable GAAP financial measures. With respect to adjusted EBITDA expectations provided under “Business Outlook” above, quantitative reconciliation to the most directly comparable GAAP financial measure is not feasible, because unpredictable fluctuations in our stock price makes it difficult to estimate accurately future stock-based compensation expenses that are excluded from these non-GAAP financial measures. We expect the variability of the above charges may have a significant and unpredictable impact on our future GAAP financial results.

______________

1 Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income, adjusted to exclude income taxes, interest, depreciation and amortization, and stock-based compensation. We believe that adjusted EBITDA provides useful information to investors in understanding and evaluating our operating results in the same manner as management and the board of directors. This non-GAAP information is not necessarily comparable to non-GAAP information of other companies. Non-GAAP information should not be viewed as a substitute for, or superior to, net income prepared in accordance with GAAP as a measure of our profitability or liquidity. Users of this financial information should consider the types of events and transactions for which adjustments have been made.

 

YuMe, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 
March 31, 2014   December 31, 2013
Assets (Unaudited) (1)
Current assets:
Cash and cash equivalents $ 29,092 $ 42,626
Marketable securities 21,006 7,295
Accounts receivable, net 59,932 65,493
Prepaid expenses and other current assets   2,981   2,572
Total current assets 113,011 117,986
 
Marketable securities – long-term 8,631 14,186
Property, equipment and software, net 6,488 6,610
Goodwill 3,902 3,902
Intangible assets, net 1,852 2,049
Restricted cash 292 292
Deposits and other assets   342   362
Total assets $ 134,518 $ 145,387
 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $ 5,895 $ 7,722
Accrued digital media property owner costs 12,901 17,359
Accrued liabilities 10,653 12,734
Deferred revenue, current 234 314
Capital leases, current   208   359
Total current liabilities 29,891 38,488
 
Capital leases, non-current 8 22
Other long-term liabilities 125 139
Deferred tax liability   704   773
Total liabilities 30,728 39,422
 
Stockholders’ equity:
Common stock 32 32
Additional paid-in-capital 130,583 127,690
Accumulated deficit (26,746 ) (21,677 )
Accumulated other comprehensive loss   (79 )   (80 )
Total stockholders’ equity   103,790   105,965
Total liabilities and stockholders’ equity $ 134,518 $ 145,387
 

(1) The condensed consolidated balance sheet as of December 31, 2013 was derived from audited financial statements.

 

YuMe, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 
Three Months Ended

March 31,

 

2014   2013
 
 
Revenue $ 37,292 $ 26,612
Cost of revenue(1)   20,184   14,553
Gross profit 17,108 12,059
 
Operating expenses:
Sales and marketing(1) 15,466 10,217
Research and development(1) 936 1,000
General and administrative(1)   5,622   3,938
Total operating expenses 22,024 15,155
 
Loss from operations (4,916 ) (3,096 )
Interest and other expense:
Interest expense, net (3 ) (19 )
Other expense, net   (18 )   (192 )
Total interest and other expense   (21 )   (211 )
 
Loss before income taxes (4,937 ) (3,307 )
Income tax expense   (132 )   (31 )
 
Net loss $ (5,069 ) $ (3,338 )
 
Net loss per share:
Basic $ (0.16 ) $ (0.69 )
Diluted $ (0.16 ) $ (0.69 )
Weighted-average shares used to compute net loss per share:
Basic   32,115   4,828
Diluted   32,115   4,828
 

(1) Stock-based compensation included above:

 
Three Months Ended March 31,
2014 2013
Cost of revenue $ 63 $ 30
Sales and marketing 563 341
Research and development 48 70
General and administrative   487   204
Total employee stock-based compensation $ 1,161 $ 645
 

YuMe, Inc.

RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION

(In thousands)

(Unaudited)

 
Three Months Ended

March 31,

 
  2014     2013  
Net loss $ (5,069 ) $ (3,338 )
Adjustments:
Interest expense 3 19
Income tax expense 132 31
Depreciation and amortization expense 1,099 1,026
Stock-based compensation expense   1,161   645  
Total Adjustments   2,395   1,721  
Adjusted EBITDA $ (2,674 ) $ (1,617 )

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., will focus on real world deployments of DDoS mitigation strategies in every layer of the network. He will give an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He will also outline what we have found in our experience managing and running thousands of Linux and Unix managed service platforms and what specifically c...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, will discuss how a cloud designed for production operations not only helps accelerate developer...
Peak 10, Inc., has announced the implementation of IT service management, a business process alignment initiative based on the widely adopted Information Technology Infrastructure Library (ITIL) framework. The implementation of IT service management enhances Peak 10’s current service-minded approach to IT delivery by propelling the company to deliver higher levels of personalized and prompt service. The majority of Peak 10’s operations employees have been trained and certified in the ITIL frame...
A critical component of any IoT project is the back-end systems that capture data from remote IoT devices and structure it in a way to answer useful questions. Traditional data warehouse and analytical systems are mature technologies that can be used to handle large data sets, but they are not well suited to many IoT-scale products and the need for real-time insights. At Fuze, we have developed a backend platform as part of our mobility-oriented cloud service that uses Big Data-based approache...
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...
As the rapid adoption of containers continues, companies are finding that they lack the operational tools to understand the behavior of applications deployed in these containers, and how to identify issues in their application infrastructure. For example, how are multiple containers within an application impacting each other’s performance? If an application’s service is degraded, which container is to blame? In the case of an application outage, what was the root cause of the outage?
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...