Financial Press Releases

Paris, January 29, 2021 – 17.45 CET
 

• FULL YEAR REVENUES UP 7%; STABLE Like-FOR LIKe
• IMPROVEMENT EXPECTED IN FULL YEAR GrOSS MARGIN
• ANEVIA INTEGRATION WELL ON TRACK
• ATEME MAKES VIDEO COMPRESSION HISTORY WITH THREE EMMY® AWARDS
   

(1) Including Anevia as of November 1^st, 2020

The statements are currently being audited.

Paris, January 29, 2021 - ATEME (ISIN: FR0011992700), the emerging leader in video delivery infrastructure, posted revenues of €27.6 million for the Fourth Quarter of 2020, up 32%, and by 11% like-for-like.

Total revenues for the year to December 31, 2020 stood at €70.7 million, up 7% versus 2019 and stable on a like-for-like basis. Anevia revenues contributed €5.3 million following its consolidation from November 2020.

Revenue breakdown by region

(1) Including Anevia as of November 1^st, 2020

The statements are currently being audited.

• Revenues in the EMEA region stood at €24.9 million, up 2%, and by -7% like-for-like.
• The USA/Canada delivered further healthy growth of 8% with revenues of €26.5 million. Like-for-like, revenues were up 7%.
• Latin America declined 16% to €7.5 million. Like-for-like, revenues were down -41%.
• Asia-Pacific overtook Latin America to become the group's third region thanks to a 43% increase in revenues to €11.8 million. Like-for-like, revenues were up 45%.

Significant increase in recurring revenue streams

Monthly recurring revenues (MRR)[1] sharply rose from €880,000 in January 2020 to €1,500,000 in January 2021 including the contribution of Anevia. Going forward, our strategy will be to extend MRR-generating business models to the Anevia product lines and increase the weight of MRR in our revenues every year.

ATEME makes video compression history with three Emmy® Awards

The National Academy of Television Arts & Sciences (NATAS) awarded ATEME three Emmys® for its outstanding achievements enhancing media delivery, distribution and quality of experience. NATAS recognized ATEME in three categories:

• Development of perceptual metrics for video encoding optimization: how ATEME can mimic the human eye;
• Artificial Intelligence optimization for video compression: how ATEME can reduce total cost of ownership without compromising on quality;
• Development of massive processing optimized compression technologies: How ATEME can help SVOD providers produce more and better content in the cloud.

These awards reflect ATEME's front-running investments around Artificial Intelligence and Analytics. They reinforce ATEME's position as a future-proof partner of leading content and service providers, helping them transition to the new ways of delivering TV, media and video.

Looking ahead

As expected, the Second Half of the year saw a more favorable product mix than the First with a rebound in ATEME's TITAN and Anevia's NEA software sales, underpinning a recovery in the gross margin, which is expected to have grown by a few points for Full Year 2020.

The integration of Anevia is progressing in line with our expectations, exceeding them in some cases, and we are confident that it will create significant value in the future. 

Several key appointments have been made, drawing on the talent pool of both companies: Damien Lucas, Anevia's co-founder and CTO, is appointed group Chief Product Officer and will lead the product roadmap, across ATEME and Anevia product lines. Rémi Beaudouin, ATEME's Chief Strategy Officer, will oversee the positioning of the combined group's value proposition. Stéphanie Pignal, Anevia's VP HR, is appointed group VP HR, while Mickael Raulet, who has headed the innovation team at ATEME for six years where he has been instrumental in the technology expertise and image, is promoted to the role of group CTO.

Looking ahead, there remains a level of unpredictability in 2021, with the pandemic situation not expected to improve before the second half. The potential for boosting sales of Anevia's flagship product NEA thanks to ATEME's global sales organization and installed base is in no doubt, although the validation and sales cycles may continue to be slowed by the impact of the COVID-19 crisis in 2021. Nevertheless, we hope to achieve our ambition of doubling Anevia's NEA sales in the next couple of years.

Michel Artières, Chairman and CEO of ATEME, commented: “ATEME continued delivering market-beating topline performance in 2020, and invested significantly in R&D while preserving profitability. We are honored our experts are recognized with a hat trick at the Emmy Awards. The integration process with Anevia is progressing smoothly and rapidly and we are more confident than ever that the operation will deliver significant value for the combined group. Damien Lucas is a fantastic addition to our leadership team and I wish him, as well as all the other new appointees, much success in their roles. ATEME and Anevia are stronger together and the teams are excited about the new story to be written.”

Next publication:

March 25^th, 2021: Full Year 2020 Results

About ATEME: ATEME is the emerging leader of video delivery technologies, servicing the world's largest content and service providers. ATEME helps video & TV content and service providers captivate their audiences with a superior quality of experience so they can boost viewership engagement, acquire new customers, and unleash new monetization potential. ATEME's multi-codec encoding, any-format origin/packaging, scalable cloud DVR, audience-aware CDN and revenue-generating dynamic ad insertion solutions enable hundreds of the world's leading studios, content owners, broadcasters, and terrestrial, cable, satellite, IPTV and OTT streaming service providers to deliver high-quality content to billions of viewers on any screen.

ATEME has brought about numerous innovations in fields ranging from visual quality to smart caching and analytics. Its multiple-award-winning R&D teams ensure that ATEME remains a future-proof partner through active participation in forums and associations including DVB, SMPTE, ATSC, AOM, MPEG Streaming Video Alliance, CMAF-IF and 3GPP.

Founded in 1991, ATEME has 450 employees spread over its headquarters in France and 20 offices around the world including USA, Brazil, Argentina, UK, Spain, Germany, Russia, the UAE, Singapore, China, Korea and Australia. Since 2014, ATEME is listed on the Paris Euronext market 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

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] Monthly Recurring Revenue is defined as the sum of (1) the monthly revenue from support contracts in hand, and (2) the monthly revenue from multi-year licensing contracts in hand (capex), and (3) the monthly revenue from license lease contracts (OPEX).