MediaMind Technologies Inc. (Nasdaq:MDMD), the leading independent
global provider of integrated digital advertising solutions, today
announced its financial results for the fourth quarter and year
ended December 31, 2010.
Summary Results
- Revenues of $25.9 million for the fourth quarter of 2010, up
15% from Q4 2009; Revenues of $80.8 million in 2010, up 24% from
2009.
- Q4 2010 non-GAAP net income of $6.4 million, or diluted EPS of
$0.30; Q4 2010 GAAP net income of $5.5 million, or diluted EPS of
$0.26.
- Q4 2010 adjusted EBITDA of $9.1 million and full year adjusted
EBITDA of $19.9 million.
- Positive operating cash flow of $4.9 million for Q4 2010 and
$11.8 million for full year 2010.
- Significant market momentum reflected in increased customer
base, volume growth and solid performance across all regions
- Successful introduction of MediaMind v2.0 product suite with
strong market acceptance
Fourth Quarter and Full Year 2010
For the 2010 fourth quarter, revenues increased 15% to $25.9
million compared to $22.4 million in the prior-year period. Full
year revenues were $80.8 million, an increase of 24% compared to
revenues of $65.1 million for 2009. Year-over-year revenue growth
for both periods was attributable to the addition of new
advertising customers and higher volumes of ad impressions driven
by increased momentum in our key markets and strong demand from our
large advertising partners. Gross profit margin was 95% for the
2010 fourth quarter compared to 96% in the prior-year period.
Net income attributable to Common stockholders for the 2010
fourth quarter was $5.5 million, or diluted earnings per share of
$0.26, compared to $5.5 million, or diluted earnings per share of
$0.39, in the fourth quarter of 2009. Net income attributable to
Common stockholders for the full year was $8.7 million, or diluted
earnings per share of $0.54, compared to $8.2 million, or diluted
earnings per share of $0.68, in 2009.
Net income for the 2010 fourth quarter on a non-GAAP basis was
$6.4 million, or non-GAAP diluted earnings per share of $0.30,
compared to $6.3 million, or non-GAAP diluted earnings per share of
$0.40, in the fourth quarter of 2009. Net income for the 2010 full
year on a non-GAAP basis was $12.4 million, or non-GAAP diluted
earnings per share of $0.68, compared to $10.9 million, or non-GAAP
diluted earnings per share of $0.76, in 2009.
Adjusted EBITDA for the 2010 fourth quarter was $9.1 million
versus $8.1 million in the prior-year period. Adjusted EBITDA for
the full year of 2010 was $19.9 million versus $16.7 for 2009. See
the reconciliation between GAAP and non-GAAP financial measures
provided in the financial data below.
Cash flow provided by operating activities was $4.9 million in
the fourth quarter of 2010 and $11.8 million for the full year.
Management Comments and Outlook for 2011
"We exhibited strong momentum in the seasonally important fourth
quarter with solid gains in revenues and profitability," commented
Gal Trifon, President and CEO of MediaMind. "During the fourth
quarter, we continued to increase our customer base and grow across
all regions. We also rolled out MediaMind v2.0, our latest platform
iteration, focusing on new data driven products which allow our
customers to reach their audience, optimize their messaging and
make more informed, cost effective decisions on their media buys.
These data-driven offerings complement our existing products and
position us for meaningful growth in this emerging category in
2011."
Mr. Trifon continued, "In the coming quarters, we look forward
to building on our efforts to grow MediaMind v2.0 and related
data-driven offerings, increase our base of large advertisers, and
expand our global operations while more efficiently meeting the
demands of our growing advertiser base. As part of this expansion,
we are strengthening our customer-facing service organization and
we recently established a new technical support center in the
Philippines."
For the first quarter of 2011, which is the company's seasonally
slowest period, MediaMind expects to generate revenues in the range
of $18.1 to $19.1 million. Net income is expected to be in the
range of $150,000, or diluted earnings per share of $0.01, to
$750,000, or diluted earnings per share of $0.04. Non-GAAP net
income is expected to be in the range of $1.0 million, or non-GAAP
diluted earnings per share of $0.04, to $1.6 million, or non-GAAP
diluted earnings per share of $0.07. Adjusted EBITDA for the
2011 first quarter is expected to be in the range of $2.0 million
to $2.6 million.
"With positive market trends and a strong foundation in place,
we expect healthy revenue gains for the full year 2011," concluded
Mr. Trifon. "We are excited to move forward with our outlined
initiatives, and we expect only minimal impact from these
investments to adjusted EBITDA margins for full year 2011 when
compared to 2010 levels. As an industry leader, now is the
opportune time to invest in the growth and efficiency of our
business and position MediaMind for sustainable success. At the
same time, we are focused on driving long-term margin performance
as we work towards achieving profitability consistent with our
target operating model."
Conference Call
The Company will host a conference call today at 4:30 p.m. ET to
discuss 2010 fourth quarter and full year results as well as its
2011 first quarter outlook. To access the call, please dial
877-269-7756 (U.S.) or 201-689-7817 (international) approximately
10 minutes prior to the start of the call. The teleconference will
also be available via live webcast on the investor relations
portion of MediaMind's website, at http://ir.mediamind.com. If
you are unable to listen to the live teleconference, a replay will
be available through February 10, 2011, and can be accessed by
dialing 877-660-6853 (U.S.) or 201-612-7415 (international).
Callers will be prompted for replay account number 379# followed by
conference ID number 365391#. An archived version of the webcast
will also be available under the investor relations section of
MediaMind's website at http://ir.mediamind.com.
About MediaMind
MediaMind is a leading global provider of digital advertising
campaign management solutions to advertising agencies and
advertisers. MediaMind provides media and creative agencies,
advertisers and publishers with an integrated platform to manage
campaigns across digital media channels and a variety of formats,
including rich media, in-stream video, display and search.
Headquartered in New York, MediaMind delivered during 2010
campaigns for approximately 9,000 brand advertisers, servicing
approximately 3,800 media agencies and creative agencies across
approximately 8,200 global web publishers in 64 countries
throughout North America, South America, Europe, Asia Pacific,
Africa and the Middle East. For more information on MediaMind,
visithttp://www.MediaMind.com
Use of Non-GAAP Financial Measures
We believe that non−GAAP financial measures can provide useful
information to both management and investors by excluding certain
non−cash expenses that are not indicative of our core operating
results. These measures should only be viewed in conjunction with
corresponding GAAP measures.
MediaMind's non−GAAP financial measures exclude the effect of
stock−based compensation and the tax benefit resulting from it. The
reconciliation between GAAP and non−GAAP financial measures is
provided in the financial data below.
Forward-Looking Statements
This press release contains statements that constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements other than
statements of historical facts are forward-looking statements.
These statements include descriptions regarding the intent, belief
or current expectations of the Company or its officers with respect
to the future consolidated results of operations and financial
condition of the Company, the continued global growth of digital
advertising, and the Company's ability to continue to gain market
share and capitalize on the anticipated global growth of digital
advertising. Such forward-looking statements are not guarantees of
future performance and involve known and unknown risks,
uncertainties, and other factors that may cause actual results,
performance or achievements to be materially different from those
expressed or implied in the forward-looking statements as a result
of various factors and assumptions, including factors discussed
under the heading "Risk Factors" in our final prospectus related to
our initial public offering filed on August 12, 2010 and additional
reports we file with the Securities and Exchange Commission.
MEDIAMIND TECHNOLOGIES
INC. |
UNAUDITED GAAP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
(in thousands except share and
per share data) |
|
|
|
|
|
|
|
|
Three months
ended |
Year
ended |
|
|
December
31, |
December
31, |
|
|
2009 |
2010 |
2009 |
2010 |
|
|
|
|
|
|
Revenues |
|
$22,432 |
$25,900 |
$65,075 |
$80,846 |
Cost of revenues |
|
838 |
1,347 |
3,306 |
4,289 |
|
|
|
|
|
|
Gross profit |
|
21,594 |
24,553 |
61,769 |
76,557 |
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
Research and development |
|
1,760 |
2,277 |
6,844 |
9,148 |
Selling and marketing |
|
11,333 |
13,049 |
36,530 |
45,932 |
General and administrative |
|
1,614 |
2,044 |
6,201 |
8,259 |
|
|
|
|
|
|
Total operating expenses |
|
14,707 |
17,370 |
49,575 |
63,339 |
|
|
|
|
|
|
Operating income: |
|
6,887 |
7,183 |
12,194 |
13,218 |
Financial income, net |
|
166 |
283 |
80 |
577 |
|
|
|
|
|
|
Income before income taxes |
|
7,053 |
7,466 |
12,274 |
13,795 |
Income taxes |
|
1,075 |
1,937 |
2,446 |
3,843 |
|
|
|
|
|
|
Net income |
|
5,978 |
5,529 |
9,828 |
9,952 |
|
|
|
|
|
|
Accretion of Preferred stock dividend
preference |
|
(491) |
-- |
(1,617) |
(1,292) |
|
|
|
|
|
|
Net income attributable to Common
stockholders |
|
$5,487 |
$5,529 |
$8,211 |
$8,660 |
|
|
|
|
|
|
Net earnings per share: |
|
|
|
|
|
Basic |
|
$0.65 |
$0.30 |
$0.98 |
$0.70 |
Diluted |
|
$0.39 |
$0.26 |
$0.68 |
$0.54 |
|
|
|
|
|
|
Weighted average number of shares of Common
stock used in computing earnings per share (in thousands): |
|
|
|
|
|
Basic |
|
8,404 |
18,520 |
8,397 |
12,394 |
Diluted |
|
15,512 |
21,440 |
14,352 |
18,273 |
MEDIAMIND TECHNOLOGIES
INC. |
UNAUDITED GAAP
CONDENSED CONSOLIDATED BALANCE SHEETS |
(in thousands) |
|
|
|
|
|
|
December
31, |
|
|
2009 |
2010 |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
Cash and cash equivalents |
|
$15,363 |
$21,484 |
Short-term deposit |
|
18,357 |
75,873 |
Restricted cash |
|
769 |
1,180 |
Trade receivables |
|
22,104 |
25,604 |
Other accounts receivable and prepaid
expenses |
|
1,972 |
2,926 |
|
|
|
|
Total current assets |
|
58,565 |
127,067 |
|
|
|
|
LONG-TERM ASSETS: |
|
|
|
Marketable securities |
|
2,077 |
2,043 |
Deferred taxes, net |
|
1,289 |
2,146 |
Severance pay fund |
|
1,517 |
2,267 |
Other long-term assets |
|
1,015 |
1,092 |
|
|
|
|
Total long-term assets |
|
5,898 |
7,548 |
|
|
|
|
PROPERTY AND EQUIPMENT, NET |
|
2,427 |
5,014 |
|
|
|
|
Total assets |
|
$66,890 |
$139,629 |
MEDIAMIND TECHNOLOGIES
INC. |
UNAUDITED GAAP
CONDENSED CONSOLIDATED BALANCE SHEETS |
(in thousands) |
|
|
|
|
|
|
December
31, |
|
|
2009 |
2010 |
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
Trade payables |
|
$1,001 |
$756 |
Employees and payroll accruals |
|
4,686 |
3,996 |
Other accounts payable |
|
4,053 |
5,094 |
|
|
|
|
Total current liabilities |
|
9,740 |
9,846 |
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
Accrued severance pay and other employee
accruals |
|
2,335 |
3,413 |
|
|
|
|
Total long-term liabilities |
|
2,335 |
3,413 |
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY: |
|
|
|
Stock capital: |
|
|
|
Common stock of $ 0.001
par value -- |
|
|
|
Common stock |
|
12 |
22 |
Series A-1 Convertible
Preferred stock |
|
2 |
-- |
Additional paid-in capital |
|
48,450 |
109,927 |
Treasury stock at cost |
|
(23,213) |
(23,213) |
Accumulated other comprehensive
loss |
|
(558) |
(440) |
Retained earnings |
|
30,122 |
40,074 |
|
|
|
|
Total stockholders' equity |
|
54,815 |
126,370 |
|
|
|
|
Total liabilities and stockholders'
equity |
|
$66,890 |
$139,629 |
MEDIAMIND TECHNOLOGIES
INC. |
UNAUDITED GAAP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW |
(in thousands) |
|
|
|
|
|
|
|
|
Three months
ended |
Year
ended |
|
|
December
31, |
December
31, |
|
|
2009 |
2010 |
2009 |
2010 |
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$5,978 |
$5,529 |
$9,828 |
$9,952 |
Adjustments to reconcile net income to net
cash provided by operating activities: |
|
|
|
|
|
Depreciation |
|
315 |
889 |
1,211 |
2,239 |
Compensation related to options granted
to employees |
|
936 |
1,009 |
3,292 |
4,489 |
Increase in trade receivables |
|
(7,390) |
(4,407) |
(5,853) |
(3,574) |
Decrease (increase) in other accounts
receivable, prepaid expenses and other |
|
385 |
925 |
(217) |
(776) |
Decrease (increase) in deferred
taxes |
|
(25) |
317 |
(226) |
(814) |
Decrease (increase) in other long-term
assets |
|
(46) |
(25) |
13 |
(66) |
Decrease in trade accounts
payable |
|
(34) |
(589) |
(79) |
(295) |
Increase (decrease) in employee and
payroll accruals |
|
974 |
(107) |
1,327 |
(678) |
Increase in other payables |
|
639 |
1,515 |
1,419 |
1,171 |
Increase (decrease) in accrued severance
pay and other employee accruals, net |
|
83 |
3 |
(261) |
335 |
Increase in accrued interest |
|
(111) |
(165) |
(111) |
(109) |
Gain on disposal of property and
equipment |
|
(21) |
-- |
(32) |
(50) |
|
|
|
|
|
|
Net cash provided by operating
activities |
|
1,683 |
4,894 |
10,311 |
11,824 |
MEDIAMIND TECHNOLOGIES
INC. |
UNAUDITED GAAP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW |
(in thousands) |
|
|
|
|
|
|
|
|
Three months
ended |
Year
ended |
|
|
December
31, |
December
31, |
|
|
2009 |
2010 |
2009 |
2010 |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
Investments in marketable securities |
|
-- |
-- |
(2,124) |
-- |
Proceeds from redemption of marketable
securities |
|
48 |
-- |
591 |
-- |
Investments in short-term deposits |
|
(600) |
(33,115) |
(18,250) |
(79,453) |
Proceeds from maturity of short-term
deposits |
|
-- |
3,000 |
-- |
22,050 |
Restricted cash |
|
-- |
-- |
(765) |
(2,080) |
Proceeds from release of restricted
cash |
|
-- |
-- |
-- |
1,664 |
Purchase of property and equipment |
|
(321) |
(1,156) |
(1,251) |
(4,347) |
Proceeds from sale of property and
equipment |
|
79 |
-- |
166 |
11 |
|
|
|
|
|
|
Net cash provided by investing
activities |
|
(794) |
(31,271) |
(21,633) |
(62,155) |
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
Acquisition of treasury stock |
|
-- |
-- |
-- |
(533) |
Proceeds from initial public offering, net of
costs |
|
-- |
(440) |
-- |
55,962 |
Proceeds from exercise of stock options and
warrants |
|
29 |
83 |
45 |
1,034 |
|
|
|
|
|
|
Net cash provided by (used in) financing
activities |
|
29 |
(357) |
45 |
56,463 |
|
|
|
|
|
|
Increase (decrease) in cash and cash
equivalents |
|
918 |
(26,734) |
(11,277) |
6,132 |
Effects of exchange rate changes on cash and
cash equivalents |
|
40 |
(13) |
480 |
(11) |
Cash and cash equivalents at the beginning of
the year |
|
14,405 |
48,231 |
26,160 |
15,363 |
|
|
|
|
|
|
Cash and cash equivalents at the end of the
year |
|
$15,363 |
$21,484 |
$15,363 |
$21,484 |
NON-GAAP NET
INCOME AND NON-GAAP EARNINGS PER SHARE (Note 1) |
(in thousands, except per share
data) |
|
|
Three months
ended |
Year
ended |
Three months
ended |
|
|
December
31 |
December
31 |
March
31 |
|
|
2009 |
2010 |
2009 |
2010 |
2011 |
2011 |
|
|
|
|
|
|
Min |
Max |
Net income attributable to Common
stockholders |
|
$5,487 |
$5,529 |
$8,211 |
$8,660 |
$150 |
$750 |
Stock Based Compensation |
|
936 |
1,009 |
3,292 |
4,489 |
1,050 |
1,050 |
Tax benefit resulting from Stock Based
Compensation |
|
(171) |
(113) |
(587) |
(721) |
(200) |
(200) |
Non−GAAP net income |
|
$6,252 |
$6,425 |
$10,916 |
$12,428 |
$1,000 |
$1,600 |
Shares used in computing non−GAAP basic
earnings per share |
|
8,404 |
18,520 |
8,397 |
12,394 |
19,000 |
18,500 |
Shares used in computing non−GAAP diluted
earnings per share |
|
15,512 |
21,440 |
14,352 |
18,273 |
22,400 |
21,400 |
Non−GAAP basic earnings per share |
|
$0.74 |
$0.35 |
$1.30 |
$1.00 |
$0.05 |
$0.09 |
Non−GAAP diluted earnings per share |
|
$0.40 |
$0.30 |
$0.76 |
$0.68 |
$0.04 |
$0.07 |
|
|
|
|
|
|
|
|
Note 1 - To supplement our
unaudited condensed consolidated financial statements presented on
a basis consistent with GAAP, we disclose non−GAAP net income and
non−GAAP earnings per share. These supplemental measures exclude
stock−based compensation net of resulting taxes. These non−GAAP
measures are not in accordance with and do not serve as an
alternative for GAAP. |
|
|
|
|
|
|
|
|
We believe that these non−GAAP
measures have limitations in that they do not reflect all of the
amounts associated with our GAAP results of operations. These
non−GAAP measures should only be viewed in conjunction with
corresponding GAAP measures. We compensate for the limitations of
non−GAAP financial measures by relying upon GAAP results to gain a
complete picture of our performance. |
|
|
|
|
|
|
|
|
We believe that non−GAAP
financial measures can provide useful information to both
management and investors by excluding certain non−cash expenses
that are not indicative of our core operating results. Among other
uses, our management uses non−GAAP measures to compare our
performance relative to forecasts and to benchmark our performance
externally against competitors. |
ADJUSTED EBITDA
(Note 2) |
(in thousands) |
|
|
Three months
ended |
Year
ended |
Three months
ended |
|
|
December
31 |
December
31 |
March
31 |
|
|
2009 |
2010 |
2009 |
2010 |
2011 |
2011 |
|
|
|
|
|
|
Min |
Max |
Net income attributable to Common
stockholders |
|
$5,487 |
$5,529 |
$8,211 |
$8,660 |
$150 |
$750 |
Accretion of Preferred of stock dividend
preference |
|
491 |
-- |
1,617 |
1,292 |
-- |
-- |
Net income |
|
5,978 |
5,529 |
9,828 |
9,952 |
150 |
750 |
Financial income, net |
|
(166) |
(283) |
(80) |
(577) |
(150) |
(270) |
Income taxes |
|
1,075 |
1,937 |
2,446 |
3,843 |
70 |
320 |
Depreciation |
|
315 |
889 |
1,211 |
2,239 |
880 |
750 |
|
|
936 |
1,009 |
3,292 |
4,489 |
1,050 |
1,050 |
Stock Based Compensation |
Adjusted EBITDA |
|
$8,138 |
$9,081 |
$16,697 |
$19,946 |
$2,000 |
$2,600 |
|
|
|
|
|
|
|
|
Note 2 - Adjusted EBITDA is a
metric used by management to measure operating performance. EBITDA
represents net income before financial income, net, income tax
expense and depreciation. We do not have any amortization expense.
Adjusted EBITDA represents EBITDA excluding non-cash stock-based
compensation expense. We present Adjusted EBITDA as a supplemental
performance measure because we believe it facilitates operating
performance comparisons from period to period and company to
company by backing out potential differences caused by variations
in capital structures (affecting financial income, net), tax
positions (such as the impact on periods or companies of changes in
effective tax rates), the age and book depreciation of fixed assets
(affecting relative depreciation expense), and the impact of
non-cash stock-based compensation expense. Because Adjusted EBITDA
facilitates internal comparisons of operating performance on a more
consistent basis, we also use Adjusted EBITDA in measuring our
performance relative to that of our competitors. Adjusted EBITDA is
not a measurement of our financial performance under GAAP and
should not be considered as an alternative to net income, operating
income or any other performance measures derived in accordance with
GAAP or as an alternative to cash flow from operating activities as
a measure of our profitability or liquidity. We understand that
although Adjusted EBITDA is frequently used by securities analysts,
lenders and others in their evaluation of companies, Adjusted
EBITDA has limitations as an analytical tool, and you should not
consider it in isolation, or as a substitute for analysis of our
results as reported under GAAP. Some of these limitations
are: |
* Adjusted EBITDA does not
reflect our cash expenditures or future requirements for capital
expenditures or contractual commitments; |
* Adjusted EBITDA does not
reflect changes in, or cash requirements for, our working capital
needs; |
* Although depreciation is a
non-cash charge, the assets being depreciated will often have to be
replaced in the future, and Adjusted EBITDA does not reflect any
cash requirements for such replacements; and |
* Other companies in our industry
may calculate Adjusted EBITDA differently than we do, limiting its
usefulness as a comparative measure. |
CONTACT: Investor Contacts:
Jonathan Schaffer
The Blueshirt Group
T: 212.551.1453
ir@mediamind.com
Media Contact:
Alex Wellins
The Blueshirt Group
T: 415.217.5861
ir@mediamind.com
Mediamind Technologies Inc. (MM) (NASDAQ:MDMD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Mediamind Technologies Inc. (MM) (NASDAQ:MDMD)
Historical Stock Chart
From Jul 2023 to Jul 2024