Fyber N.V.: Successful execution of integration strategy, improved EBITDA profit in 2017 and positive outlook for 2018
Fyber N.V. (The "Company")Successful execution of integration strategy, improved EBITDA profit in 2017and positive outlook for 2018
- Gross revenue of EUR230 million with 12% growth in net revenue
- Improved profitability with adj. EBITDA close to break-even at EUR-1.2 million
- Strong fourth quarter with a 33.6% net revenue margin and adj. EBITDA reaching EUR2 million
- Launched proprietary in-app header bidding technology, 'Fyber FairBid'
- Rebranded to 'The New Fyber'
- Positive outlook, expecting full-year positive EBITDA in 2018
- Mid-term goal of at least EUR40 million EBITDA for 2021 with gross revenue ranging between EUR400 and EUR450 million
Berlin, 16 April 2018 - Fyber (FSE: FBEN), a leading advertising technology company, continued to successfully implement its growth strategy during the financial year 2017. Gross revenue expanded by 5.4% to EUR229.8 million (2016: EUR218.1 million), despite the strategic decision to forego short-term revenue growth as part of Fyber's 'Keeping it Clean' initiative. Net revenue increased by 12% to EUR69.9 million (2016: EUR62.4 million), which contributed to an increase in adjusted EBITDA of 73%.
The Company reduced the dependency on aggregated supply and focused primarily on direct publisher integrations - in line with recent industry trends calling for more transparency and quality of the ecosystem. While temporarily impacting the income expansion, the 'Keeping it Clean' initiative sets the foundation for future growth and Fyber being one of the few selected top-tier suppliers, ensuring the marketplace adheres to the highest standard of quality. In relation to this initiative the Company recognized a full write-off of goodwill for affected business units, namely EUR80 million at Fyber RTB, whose main business was largely based on aggregators on the publisher side.
Improved profitability Following its strategy, Fyber's overall focus in 2017 was on efficiency, integration of subsidiaries and operational excellence. In particular, the integration efforts and the initial realization of synergies, the 'Keeping it Clean' initiative as well as Fyber's organic growth contributed to improved margins. The net revenue margin grew to 30.4% (2016: 28.6%) and the adjusted EBITDA was positive for the last three quarters of 2017, bringing the full-year adjusted EBITDA close to break-even at EUR-1.2 million (2016: EUR-4.3 million).Achievement of important milestones in innovation and integration During 2017, Fyber implemented a unified global corporate structure and management team, which better represent the joined vision and business goals and achieved important milestones in the merging of its product offerings and the advancement of its technology. The company has launched its proprietary header bidding solution 'Fyber FairBid' - the world's first and only technology to create a true state of header bidding for the mobile app environment. Fyber reaches more than 1.2 billion unique monthly users globally, has a strong focus on video ads, and provides in-depth data and audiences segmentation capabilities as well as holistic monetization management tools to all different publisher groups.
Fyber's fully integrated technology platform will be available to all customers after completion of the integration from the end of 2018, giving them central access to the advanced technologies of the Fyber Group.Fyber CEO Ziv Elul, commented: "During 2017 we set important groundwork to conclude our acquisition-driven growth strategy. Fyber is growing from a group of four highly complementary companies to one strong tier-1 provider for the programmatic trading of ads. We are excited to launch our unified platform later in the year, which advances all the factors of our success. By combining access to vast audiences, data analytics capabilities and robust, innovative products that serve all verticals, we create what we believe will be a strong asset to our existing partners and a valuable proposition to future partners."Positive outlook for 2018 - strong growth in the mid-term 2018 will be an important year of execution for Fyber. Even if the income of the Company will still be impacted by the 'Keeping it Clean' initiative in 2018, management is confident that the focus on integration, profitability and providing a strong, transparent marketplace will ensure Fyber's continuous strong competitive position. The unified product will further strengthen the Company as a technology leader in the digital advertising space. The speed and ease of market adoption among existing clients and the expansion of Fyber's network based on the new product's features will be important factors of future growth. Given that the unified platform will not yet have significant revenue contribution in 2018, Fyber expects gross revenue in the range of EUR220 to EUR240 million and an EBITDA between EUR5 and EUR8 million - the first full-year EBITDA profit in the history of the Company. Based on substantial economies of scale through further integration of the group companies and the launch and scaling of the integrated technology platform, Fyber has set a mid-term goal of at least EUR40 million EBITDA for 2021 with gross revenue ranging between EUR400 and EUR450 million. The complete annual report is available on the Fyber website at: https://investors.fyber.com/reports-presentations
Full year Q4 In EUR million 2017 2016 Change 2017 YoY 2017 2016 Gross revenue 229.8 218.1 5% 52.6 71.0 Net revenue 69.9 62.4 12% 17.7 18.6 Net revenue margin 30.4% 28.6% 1.8pp 33.6% 26.2% EBITDA* -1.2 -4.3 73% 2.0 -0.9
*Note: Adjusted to eliminate one-off impacts such as acquisition-related costs and option plans
###About Fyber Fyber is a leading advertising technology company, developing a next generation platform for the programmatic trading of ads, in a data-driven environment. Our mission is to fuel the creation of quality content by empowering digital publishers and app developers to unlock the true value of their advertising properties through advanced technologies, innovative ad formats and data-driven decision-making. Fyber's technology platform provides an open-access platform for both digital advertisers and publishers, enabling cross-device advertising with a global reach of more than 1.2 billion unique monthly users. Fyber has offices in Berlin, Tel Aviv, New York, San Francisco, London and Beijing. The Company employs more than 300 people globally and is listed on the Prime Standard of Frankfurt Stock Exchange under the symbol 'FBEN' and the ISIN NL0012377394.
Investor Contact Sabrina Kassmannhuber firstname.lastname@example.org +49 30 609 855 555 Media Contact Anja Ben Lekhal email@example.com +49 40 609 186 55
16.04.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: Fyber N.V. Johannisstr. 20 10117 Berlin
Germany Phone: +49 30 609 855 528 E-mail: firstname.lastname@example.org Internet: https://investors.fyber.com/ ISIN: NL0012377394 WKN: A2DUJD Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Tradegate Exchange End of News DGAP News Service