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BLINKX PLC H1 2016 Results London, UK 17 November 2015

BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

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Page 1: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX PLC H1 2016 Results London, UK 17 November 2015

Page 2: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

FORWARD-LOOKING STATEMENTS This announcement contains (or may contain) certain forward-looking statements with respect to certain of blinkx's plans and its current goals and expectations relating to its future financial condition and performance and which involve a number of risks and uncertainties. blinkx cautions readers that no forward-looking statement is a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as 'aim', 'anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', or other words of similar meaning. Examples of forward-looking statements include, among others, statements regarding blinkx's future financial position, income growth, impairment charges, business strategy, projected levels of growth in its markets, projected costs, estimates of capital expenditure, and plans and objectives for future operations of blinkx and other statements that are not historical fact. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, including, but not limited to, UK domestic and global economic and business conditions, the effects of continued volatility in credit markets, market-related risks such as changes in interest rates and exchange rates, the policies and actions of governmental and regulatory authorities, changes in legislation, the further development of standards and interpretations under International Financial Reporting Standards ("IFRS") applicable to past, current and future periods, evolving practices with regard to the interpretation and application of standards under IFRS, the outcome of pending and future litigation, the success of future acquisitions and other strategic transactions and the impact of competition - a number of which factors are beyond blinkx's control. As a result, blinkx's actual future results may differ materially from the plans, goals, and expectations set forth in blinkx's forward-looking statements. Any forward-looking statements made herein by or on behalf of blinkx speak only as of the date they are made. Except as required by the FCA, AIM or applicable law, blinkx expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this announcement to reflect any changes in blinkx expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. Neither the content of the Company’s website (or any other website) nor the content of any website accessible from hyperlinks on the Company’s website (or any other website) is incorporated into, or forms part of, this announcement.

SAFE HARBOR STATEMENT

2

Page 3: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

AGENDA

OVERVIEW

FINANCIALS

SECTOR

CONCLUSIONS

APPENDIX

3

Page 4: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

DIGITAL AUDIENCE PLATFORM

CONTENT

BRAND

DEVICE

AUDIENCE

Engaged Digital Audiences at Scale.

4

Page 5: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

AD FORMATS

iPad orientation examples

FIND A STORE

RICH MEDIA VIDEO PREROLL VIDEO SEARCH

COMPARISON SHOPPING CONTEXTUAL

MOBILE VIDEO MOBILE BANNER MOBILE RICH MEDIA

NATIVE, SOCIAL

5

Page 6: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

H1 2016 HIGHLIGHTS

Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1.  Excludes acquisition and non-recurring expenses, purchase intangibles and share base compensation 2.  US Digital Marketing Spend, Source: eMarketer, blinkx Estimates

OUTLOOK

FINANCIALS

OPERATIONS

INITIATIVES

SECTOR •  Offline spend continues to move online with accelerating shift to Mobile, Video and Programmatic •  Emerging consumer preferences, advertiser requirements, quality and technology standards •  Dynamic competitive landscape, ongoing industry consolidation and re-calibration

•  Revenue of $91.3M, Adjusted EBITDA1, loss of ($6.8M) •  Core revenue grew 37% year-on-year to constitute 69% of total revenue •  Debt free balance sheet with $82.3M in cash and marketable securities

•  Mobile, Video and Programmatic trading expected to lead doubling of Industry to $100B2 over next 5 years •  Technology foundation positions Company to scale through both organic and acquisition growth •  Expect sector-wide consolidation across the value chain as the Industry continues to mature

6

•  Extensive realignment and restructuring of resources, to significantly reduce pro forma cost basis year-on-year •  Continued integration and consolidation of platforms to facilitate cross-product, cross-device offerings at scale •  308 staff, including Technology (85), Sales (71), Operations (58), G&A (42), Services (27), Content (13), Marketing (12)

•  Profits: Ramp Core revenues and manage Non-Core product lines to expedite a return to profitability •  Products: Complete “RhythmMax” unified audience platform for cross-screen, cross-format advertising at scale •  Promotion: Establish RhythmOne as a premium industry brand to ramp Demand and Supply relationships

Page 7: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

AGENDA

OVERVIEW

FINANCIALS

SECTOR

CONCLUSIONS

APPENDIX

7

Page 8: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

KEY FINANCIALS

Notes: Top row is H12016, bottom row H12015, except Net Cash in which top row is H116, bottom row FY15 1.  Excludes acquisitions and non-recurring expenses, share based compensation and other income.

REVENUE

$91.3M $106.0M

ADJ. EBITDA1

($6.8M) $1.0M

ADJ. LBT

($13.3M) ($5.6M)

NET CASH

$82.3M $95.7M

EMPLOYEES

308 300

CORE

69% 43%

8

Page 9: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

CORE VS. NON-CORE REVENUES

KEY DRIVERS

Mobile

Video

Programmatic

Core

Desktop

Services

Technologies

Non-Core

69% 31%

•  Ramp existing Supply and Demand Partners

•  Onboard new Supply and Demand partners

•  Programmatically enable video, native, rich media ad formats

•  Improve pricing and margin leveraging proprietary data

•  Expand geographically to access international budgets

•  Exit unprofitable products and consolidate operational footprint

9

Page 10: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

KPI

Notes: Premium: High Value Motion ads, Direct sold Exchange traded Video, rich media, text, ads Conventional: High Volume, Static Ads, Agency representation Desktop, Mobile, Banner Ads Technology & Services: Relate to managing digital assets and advertising services that support current revenue streams Opportunity: Access to interactions blinkx.com, blinkx Syndicates and Affiliates and emerging channels, e.g. mobile, ConnectedTV

PREMIUM CONVENTIONAL TECH & SERVICES OPPORTUNITY TOTAL

REVENUE ($) REVENUE (%)

$69.5M 76%

$17.1M 19%

$4.7M 5%

$91.3M 100%

PRICE ECPM ($) $7.60 $0.26

INTERACTIONS (B) VOLUME (%)

9 2.3%

65 16.6%

317 81.1%

391 100%

10

s

Page 11: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

KPI TRENDS

Note: Figures above are preliminary.

INTERACTION & MONETIZATION TRENDS (B) VOLUME TRENDS (B)

REVENUE CONTRIBUTIONS PRICING TRENDS ($/ECPM)

11

78% 76% 75% 76%

18% 21% 20% 19%

4% 3% 4% 5%

FY'13 FY'14 FY'15 H1 '16

Premium Conventional Tech & Services

$4.75

$6.70

$8.52 $7.60

$0.84 $0.76 $0.30 $0.26

FY'13 FY'14 FY'15 H1 '16

Premium Conventional

0

50

100

150

200

250

300

350

400

450

FY'13 FY'14 FY'15 H1 '16

Opportunity Premium Conventional

76 96 166

74

568 627

779

391

FY'13 FY'14 FY'15 H1 '16

Monetisation Interaction

(13%) (15%) (21%)

(19%)

Page 12: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

STATEMENTS

INCOME STATEMENT ($M)

1Excludes depreciation, amortization and share-based comp expense. BLINKX

BALANCE SHEET ($M)

12

106.0

56.7

30.6

11.6 6.1 1.0

91.3

55.3

22.3 13.8

6.7 (6.8)

H12015 H12016

Revenue Cost of Revenue Sales & Marketing1 Research and Dev1 General & Admin1 Adjusted EBITDA

95.7 87.5

43.8 37.7

19.1

49.8

82.3

37.1 29.4 34.2

18.9

43.0

Cash & Marketable Securities Goodwill Intangibles Receivables Deferred Tax Trade Payables

FY2015 H12016

Page 13: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

EBITDA AND CASH BRIDGE

CASH BRIDGE – H12016 ($M)

EBITDA BRIDGE – H12016 ($M)

FY '15 Beg. Cash & Marketable Securities

Adj. EBITDA Working Cap. Acq. & Restruct.

Cap. Expense,

PPE & Lease Obligation

Tax Payments

Foreign Exchange

H1 ’16 End. Cash &

Marketable Securities

Adj. EBITDA Profit (Loss) Before Taxes

Purch. Intangible Amortization

Amortization, Depreciation

Share Based Comp.

Acq. & Exceptional

(79.3)

5.1 4.1 2.3

61.0

(6.8)

13

95.7

82.3

95.7

(6.8) (1.1) (2.1) (3.3) (0.2)

0.1 82.3

Page 14: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

AGENDA

OVERVIEW

FINANCIALS

SECTOR

CONCLUSIONS

APPENDIX

14

Page 15: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

SECTOR TRENDS

15

Offline Spend Continues to Move Online

Accelerating Shift to Video and Mobile

Rise of Programmatic Trading

Emerging and Evolving Standards

New Consumer and Advertiser Preferences

Rapid Industry Consolidation

è

è

è

è

è

è

Page 16: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

4%

11%

37%

24% 24% 18%

11%

41%

23%

8%

Print Radio TV Internet Mobile

Time Spent Ad Spend

AD SPEND CONTINUES TO MIGRATE

Source: Media Consumption Graph: KPCB. Advertising spend based on IAB data for full year 2014. All other graphs: eMarketer comparative estimates, September 2015.

$25B Opportunity

16

MEDIA CONSUMPTION V. AD SPEND, 2015

US DIGITAL AD SPEND BY CHANNEL, 2014-2019 ($B)

US TOTAL AND DIGITAL AD SPEND, BY FORMAT, 2014-2019 ($B)

US DIGITAL AD SPEND, BY FORMAT, 2014-2019 ($B)

50 58

67

75

84 94

69 70 73 74 77 78

57 56 55 55 54 54

2014 2015 2016 2017 2018 2019

Online TV Traditional (Ex. TV)

23 27 29

32 36

41

11 12 13 15 16

18

5 8 10 11 13

15

4 5 7 9

11 12

2 2 2 2 2 2

2014 2015 2016 2017 2018 2019

Search Banners and other Video Rich media Sponsorships

31 28 25 25 27 28

19

30

42 51

58 66

2014 2015 2016 2017 2018 2019

Desktop Mobile

1% 16%

Page 17: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

MOBILE SHIFT AND VIDEO GROWTH Average Time Spent per Day with Major Media by US Adults, 2015

(hrs:mins)

Digital TV* Radio*

Print* Other*

5:38

4:15

1:27

0:21 0:24

Mobile (nonvoice) Desktop/laptop** Other connected devices

2:22

0:25

2:51 2:12 4:11

1:27

Total Digital: 5:29 TV Radio

2:54

17

AVG. MINS SPENT PER DAY WITH MEDIA BY US ADULTS, 2015 GLOBAL CONNECTED DEVICE SHIPMENT FORECAST (M)

DIGITAL VIDEO AD SPEND, 2014-2019 ($B) US MOBILE AD SPEND, 2014-2019 ($B)

314 291 291 303

1,879 1,905 1,960 2,000

266 199 208 218

2014 2015 2016 2017

Desktop/Laptop Mobile Phone Tablet

5

8

10

11 13

15

2014 2015 2016 2017 2018 2019

19

30

42

51 58

66

2014 2015 2016 2017 2018 2019

Source: Upper Left: eMarketer comparative estimates, October 2015. Upper Right: Gartner, September, 2015. Lower graphs (both): eMarketer comparative estimates, September 2015.

Page 18: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

GROWTH OF PROGRAMMATIC SPEND

18

US REAL-TIME BIDDING (RTB) DISPLAY AD SPEND ($B) US REAL-TIME BIDDING (RTB) SALES BY CHANNEL ($B)

US PROGRAMMATIC DISPLAY AD SPEND ($B) US DISPLAY AD SPEND SHARE, BY TYPE (% OF TOTAL)

$3.6

$5.4

$7.4

$10.1

$12.3

21% 26% 28%

31%

33%

2013 2014 2015 2016 2017

RTB Display Ad Spend

% of Display Ad Spend

5

10

15

22

27

2013 2014 2015 2016 2017

18% 23% 29% 32% 33%

14% 15%

17% 17% 17%

67% 62% 54% 50% 50%

2014 2015 2016 2017 2018

RTB Non-RTB Non-programmatic

3.8 4.9 6.5 7.1 7.5

0.5 1.4

2.9 4.9 6.8

0.5

1.1

2.0 3.1

3.9

2014 2015 2016 2017 2018

Desktop Display Mobile Video

Source: Upper Left: eMarketer comparative estimates, September 2015. Upper Right: BI Intelligence estimates, IDC, lower left: eMarketer comparative estimates, October 2015, lower right: BI Intelligence Estimates, Magna Global IDC, IAB

Page 19: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

AD BLOCKING, BRAND SAFETY & CONSOLIDATION

19

WORLDWIDE AD BLOCKING USAGE BY REGION, Q2 2015

H1 2015 CONSOLIDATION DEALS, BY TYPE (199 TOTAL)

30%

28%

27%

27%

27%

Europe

North America

Asia-Pacific

Latin America

Middle East & Africa

34%

17% 17%

15%

11%

6% Advertising Platforms

Mobile

Social

Marketing Automation

eCommerce

Video

TOP MEDIA QUALITY INDICATOR – US DIGITAL MEDIA BUYERS

33%

26%

21%

17%

3%

Ad fraud

Brand safety

Viewability

Transparency

Geo compliance

•  Ad blocking estimated to cost publishers nearly $22 billion during 2015.

•  There are now 198 million active adblock users around the world.

•  Ad blocking grew by 41% globally in the last 12 months.

•  US ad blocking grew by 48% to reach 45 million active users in 12 months up to June 2015.

•  UK ad blocking grew by 82% to reach 12 million active users in 12 months up to June 2015.

EFFECT OF AD BLOCKING SOFTWARE ON DIGITAL AD SPENDING TO US AD AGENCY PROFESSIONALS

61%

27%

9%

2% 2%

No effect

Slight effect

Somewhat of an effect

Big effect

Major effect

Source: Upper Left: GlobalWebIndex as cited in company blog, Sep 29, 2015. Upper Right: Strata, "1st Quarter 2015 Agency Forecast Survey," June 16, 2015, lower left: Integral Ad Science, "2014 Year-End Survey," Dec 23, 2014, lower right: AdTech and MarTech Deals H1 2015: Results International, July 2015

Page 20: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

AGENDA

OVERVIEW

FINANCIALS

SECTOR

CONCLUSIONS

APPENDIX

20

Page 21: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

SUMMARY

▸  Sector continues to evolve and is expected to double to $100B/Yr1 over next 5 years

▸  Realigned focus and resources to drive Core Mobile, Video and Programmatic growth

▸ Maintain strong operational and cost discipline with market and product shifts

▸  Significant scale, scope and reach across the digital advertising supply chain

▸  Vision: To sustainably connect audiences and brands through content across devices

VIDEO MOBILE PROGRAMMATIC

21

DATA

1Source: US Digital Advertising Spend, eMarketer, blinkx Estimates

Page 22: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

AGENDA

OVERVIEW

FINANCIALS

SECTOR

CONCLUSIONS

APPENDIX

22

Page 23: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

APPENDIX

1. CORPORATE SNAPSHOT

2. ECOSYSTEM

3. PRODUCTS

4. HISTORY

5. VISION

23

Page 24: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

CORPORATE SNAPSHOT

Business Global technology media platform to aggregate audience across devices at scale Unique strengths in mobile, video and programmatic

History Founded 2004 IPO 2007, LSE AIM: BLNX

Headquarters London, UK San Francisco, CA

Locations Key offices in Atlanta, Boston, Cambridge (UK), Chicago, Columbia, London, Los Angeles, Montreal, New York, San Francisco, Seattle, Tempe

Employees 308 staff, including Technology (85), Sales (71), Operations (58), G&A (42), Services (27), Content (13), Marketing (12)

Technology Video Search Engine, Desktop and Mobile Applications, Owned & Operated Properties, Display, Mobile, Video, Contextual Ad Networks, Cross Screen Ad Exchange, Supply and Demand Side Platform

Financials (H12016)

$91.3M – Revenue ($6.8M) – Adjusted EBITDA1 $82.3M – Net Cash and Marketable Securities

Scale 70+ Agencies 1000+ Brands 1200+ Content Partners 6000+ Publishers

1.  Adjusted for acquisitions and exceptional expenses, share based compensation and net investment revenue

300M+ Unique Users/Month 2B+ Video Impressions/Month 2B+ Mobile Impressions/Month 100B+ Desktop Impressions/Month

24

Page 25: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

VALUE FLOW VIDEO PRODUCER

WEB PUBLISHERS

$$$

$ Content

Atte

ntio

n Co

nten

t

25

CONSUMER ADVERTISER (You) (Toyota)

(Cars.com)

(caranddriver.com)

Page 26: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

FRAGMENTATION

ADVERTISERS

Website

CONSUMERS

VIDEO PRODUCERS

$$$

$ Content

Atte

ntio

n Co

nten

t

Audi

ence

26

WEB PUBLISHERS

Page 27: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

BLINKX ENGINE

WEB PUBLISHERS AGENCIES

AD

AD

AD

The blinkx Internet Engine automatically matches consumers with content and advertising on behalf of hundreds of brands millions of times a day, automatically and in real time.

CONSUMERS ADVERTISERS

CONTENT

BLINKX

27

Page 28: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

REVENUE MODEL

blinkx.com

allmusic.com sidereel.com

Agencies

CONSUMERS ADVERTISERS

SUPPLY DEMAND

Direct Sales Team

VIDEO PRODUCERS

BLINKX

28

Advertising Exchanges

Lycos Pubmatic

OpenX

Page 29: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

SCALE, SCOPE, AND REACH

Agencies

CONSUMERS ADVERTISERS

SUPPLY DEMAND

Advertising Exchanges

VIDEO PRODUCERS

BLINKX

29

Mobile Sales

Trading Platforms

Direct Sales Team

Integrated Advertising Campaigns

Kayak Boston Globe

Merriam-Webster

Connected TV

Mobile

blinkx.com allmusic.com sidereel.com

Web Publishers (3000+)

Page 30: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

BLINKX ECOSYSTEM

CONTENT

AGGREGATORS AGENCIES/PLATFORMS AUDIENCES ADVERTISERS

Search Discovery Syndication

Content Ads Audiences

Video Text Social Display Mobile

APPLICATIONS

BLINKX

30

Page 31: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

BUSINESS MODEL

AUDIENCE

ADVERTISERS

Licensed Indexed

Platform Traded

Search

blinkx

Syndicates

Display

Connected TV

Mobile

MONETIZATION

Conventional

Premium

Direct Sold

Opportunity

CONTENT

BLINKX

31

Page 32: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

2. DIGITAL ADVERTISING VALUE CHAIN

ADVERTISER (AGENCY) DEMAND

DEMAND SUPPLY

CONTENT (WEBSITE)

TEXT, VIDEO, APPS

CONSUMER (AUDIENCE)

SUPPLY

Definitions: NWK: Ad Network, SSP: Supply Side Platform, DSP: Demand Side Platform, ATD: Agency Trading Desk 32

Brands subsidize consumer access to digital content in exchange for viewing brand messages. blinkx facilitates this fair value exchange across devices through its technology platform.

SSP EXCHANGE AGENCY WEBSITE NWK SSP ATD DSP

Page 33: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

3. PRODUCTS

CONTENT (TEXT, VIDEO, APPS)

RhythmOne for Content

TECHNOLOGY (PLATFORM)

RhythmOne Platform Technology

CONSUMER (PUBLISHERS)

RhythmOne for Publishers

BRANDS (ADVERTISERS)

RhythmOne for Advertisers

SSP EXCHANGE BRAND AGENCY CONSUMER WEBSITE NWK SSP ATD DSP

Definitions: NWK: Ad Network, SSP: Supply Side Platform, DSP: Demand Side Platform, ATD: Agency Trading Desk 33

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BLINKX

3. RHYTHMONE FOR ADVERTISERS (RFA)

RhythmOne For Advertisers is our comprehensive solution for Advertisers for whom we provide high impact ad formats across devices at scale.

OWNED AND OPERATED PROPERTIES

CROSS-SCREEN CAMPAIGNS

34

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BLINKX

3. RHYTHMONE FOR PUBLISHERS (RFP)

RhythmOne For Publishers is a universal portal for Websites and App Developers to manage their monetization units across the entire RhythmOne ecosystem.

RHYTHMPRESS

DASHBOARD

JUKEBOX

REPORTING

AD GALLERY

SEARCH

35

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BLINKX

3. RHYTHMONE FOR CONTENT (RFC)

RhythmOne for Content is a unified distribution platform for Content Creators that provides insight into performance across the entire RhythmOne ecosystem.

VIDEO CATALOG API

DIRECT PLAY

PREMIUM PLAY

36

Page 37: BLINKX PLC...BLINKX H1 2016 HIGHLIGHTS Notes: As of 30 September 2015 covering the period between 1 Apr, 2015 to 30 Sep 2015 1. Excludes acquisition and non-recurring expenses, purchase

BLINKX

3. RHYTHMONE PLATFORM TECHNOLOGY (RPT)

RhythmOne Platform Technology is an end-to-end solution that provides visibility and transparency to identify and target users across devices and content.

SSP EXCHANGE CVONSUMER WEBSITE BRAND AGENCY ATD DSP NWK SSP

Definitions: NWK: Ad Network, SSP: Supply Side Platform, DSP: Demand Side Platform, ATD: Agency Trading Desk

37

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BLINKX

4. HISTORY

WHEN APR 2009 MAY 2011 NOV 2011 AUG 2013 DEC 2013 MAY 2014 DEC 2014 MAR 2015 MAR 2015

What

Consumer desktop

application distribution and monet-

ization

Display advertising network for long-tail independent

web publishers

Search and performance ad

network & digital services

agency

Premium video distribution and

syndication platform

Premium mobile video ad

network focused on

brand advertising

Mobile Demand Side Platform with real-time

bidding technology

Video-focused Supply Side

Platform with strong publisher

relationships

Portfolio of Entertain-ment

and Music focused O&O

Sites with 25m UU/Mo

Industry leading Display, Video,

Mobile and Native

Exchange

STAFF NOW

60 40

120 60

65 45

20 10

85 50

12 5

60 70

19 18

50 3

Why

Obtain and monetize

direct users and drive

traffic

Expand supply with long tail publishers

for new video audience

Massively increase traffic

scale and scope

Accelerate video

syndication relationships

and audience

Extend into mobile market

at scale with premium

relationships

Enter mobile programmatic

space with tech offering

Provide new supply sources

at scale on programmatic

platform

Direct relationship

with consumer, unique

inventory

Core of the integrated

RhythmOne Platform.

HOW ASSETS ACQUISITION ACQUISITION ASSETS ACQUISITION ACQUISITION ACQUISITION ACQUISITION LICENSE

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BLINKX

4. EVOLUTION

Definitions: NWK: Ad Network, SSP: Supply Side Platform, DSP: Demand Side Platform, ATD: Agency Trading Desk

MOBILE

VIDEO

DISPLAY

MOBILE

VIDEO

DISPLAY

CONTEXTUAL

TEXT

2004-2009

MOBILE

VIDEO

DISPLAY

CONTEXTUAL

TEXT

SSP EXCHANGE BRAND AGENCY CONSUMER WEBSITE NWK SSP ATD DSP

2009-2012

Brand

Performance

2012-2015

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BLINKX

5. ENGAGED AUDIENCES AT SCALE

Websites

MARKETPLACE

Websites

Apps

Content Rhy

thm

Gua

rd

RhythmMax

CONTROLLED O&O

OTT

Ad Units

Programmatic

DEMAND

Direct

Apps

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BLINKX Definitions: NWK: Ad Network, SSP: Supply Side Platform, DSP: Demand Side Platform, ATD: Agency Trading Desk

SSP EXCHANGE BRAND AGENCY CONSUMER WEBSITE NWK SSP ATD DSP

RhythmMax RhythmInfluencer Mobile and desktop video, rich media, display, native, social ad formats.

Audience: Agencies, Brands

Value: Premium mobile video inventory, custom creatives, unique data segments

Unified Programmatic platform, Real Time Bidding, Private Marketplaces

Core Audiences: Trading Desks, DSPs

Value: Scale, Owned & Operated and First Look Inventory, RhythmGuard.

Sponsored blogs and social amplification.

Audiences: Brands, Agencies

Value: Custom programs, powerful relationships, earned media

BRAND CONSOLIDATION

RhythmDirect

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BLINKX

5. COMPETITIVE MAP

AUDIENCES

300M+ Unique Users/Month 2B+ Video Impressions/Month 2B+ Mobile Impressions/Month 100B+ Desktop Impressions/Month BRANDS Over 1,000 top brands with campaigns across desktop and mobile video, display, social and native. CONTENT

Relationships with over 6,000 professional publishers and 1,200 content providers. DEVICES

Cross-screen advertising targetable across devices by individual or segment.

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BLINKX

5. VALUE PROPOSITION

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PURPOSE

Democratize access to premium content globally.

VISION Connect Audiences and Brands through premium Content across Devices.

GOAL Dominant platform to aggregate quality digital audiences.

VALUE Engine for efficient, brand safe advertising and content distribution at scale.

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BLINKX

VISION

Connect Audiences and Brands through Content across Devices at Scale

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BLINKX

MISSION

Support a sustainable Internet that is respectful of Consumer Choices, Impactful for Advertisers and Sustainable for Content Owners.

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