Fyber N.V. publishes Annual Report 2018 and initial results for Q1 2019

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    38 percent growth of programmatic core business in Q4 2018
    year-over-year and 17 percent in Q1 2019 year-over-year


    • Gross revenue of €128.5 million and adjusted EBITDA of €-7.2 million
      in 2018
    • Positive adjusted EBITDA in Q4 2018
    • €74.2 million convertible bonds conversion into equity underway,
      enhancing the Company’s capital structure
    • Product and business development set stable foundation for future
      growth, but 2018 financials still burdened by one-off effects and
      strategic decisions
    • Successful product launches and important contracts concluded with
      industry leaders
    • Optimistic outlook for full year 2019 with an expected revenue growth
      above 20 percent

    Fyber N.V. (“Fyber” or the “Company”, FSE:FBEN), a leading
    advertising technology company, today published its financial results
    2018. The revenue development for the year was impacted by one-effects
    related to Fyber’s ‘Keeping it Clean’ initiative and Google’s ban of
    charging screen ads – both external factors, that affected not only
    Fyber, but the wider market. Fyber’s core business outside of these
    effects was influenced by resources spent on the integration of former
    group companies, the roll-out of new products and platform features
    including Fyber FairBid, and the technical integration of new major
    demand partners, with whom the Company successfully entered into
    important strategic partnership during the year.

    For the full year 2018, the Company generated gross revenue of €128.5
    million (2017: €229.8 million), net revenue of €46.1 million (2017:
    €69.9 million) and an adjusted EBITDA of €-7.2 million (2017: €-1.2
    million). During Q4 2018 the gross revenue amounted to €38.6 million (Q4
    2017: €52.6 million) and a positive adjusted EBITDA of €0.6 million (Q4
    2017: €2.0 million) – fully based on the core business already, as the
    one-off effects were concluded before the start of the quarter.

    Programmatic core business unaffected by one-off effects and growing

    The Company restructured its income base in an effort to maximize
    transparency and ad quality. While this incurred forgoing almost €80
    million of gross revenue in 2018 compared to the previous year, Fyber
    managed to conclude the one-off effects, build a strong product
    portfolio entirely focused on the areas of fastest market growth,
    increase the net revenue margin and achieve year-over-year growth of 38
    percent for the programmatic core business.

    The operational cost base for 2018 was reduced by 25 percent compared to
    2017, largely based on the efforts to integrate the former group
    companies and realizing related synergies. This enabled the Company to
    achieve a positive adjusted EBITDA in the last quarter of 2018 despite
    lower revenues.

    In € millions, rounded     Q4 2018   Q4 2017   Change YoY    

    FY 2018


    FY 2017

      Change YoY
    Total one-off effects 0   10   n/a 7   85   -92%
    Core business 39   43   -9% 122   145   -16%
    Thereof programmatic 22   16   38% 65   59   10%
    Thereof non-programmatic 17   27   -37% 57   86   -34%
    Reported gross revenue     39   53   -26%     129   230   -44%

    Important technology milestones reached

    One of the highlights was the successful first-to-market launch of
    Fyber’s new and innovative in-app header bidding technology Fyber
    FairBid making possible a truly parallel bidding process of all
    connected demand sources based on actual, real-time prices. The new
    bidding technology was well received in the market and some of the
    world’s leading mobile advertising networks such as Facebook Audience
    Network, AdColony and Tapjoy already partnered with Fyber and the
    initial results of increased yield for publishers are very promising.
    Another success was the redesign of Offer Wall Edge, one of Fyber’s key
    ad formats.

    Furthermore, in the course of its ‘Keeping it Clean’ initiative the
    Company decided to focus on core products, advertising quality and brand
    safety, including the proactive discontinuation of non-core parts of the
    business, namely web and aggregator-based traffic. Fyber is now focused
    on in-app ads based on direct integrations with publishers and highest
    standards of viewability, trackability and brand safety.

    €74.2 million debt-to-equity swap

    Fyber succeeded in reducing its debt burden by carrying out a partial
    debt restructuring. In December 2018, an agreement was reached with the
    holders of its €149.9 million convertible bonds to delay all coming
    interest payments to the final maturity date of the bonds in July 2020.

    Additionally, the Company initiated a voluntary debt-to-equity swap of
    bonds at a swap price of €0.30 per new share. At the end of the offer
    period, €74.2 million worth of bonds had been contributed to the swap.
    The conversion into new shares will follow in due course, generating
    247.3 million new shares and positive equity for 2019. Fyber plans to
    complete prolongation of the remaining €75.7 million bonds ahead of
    maturity or alternatively look for other financing alternatives
    including a further debt-to-equity swap.

    Preliminary results for the first quarter 2019 and outlook

    Based on the promising current business development, Fyber gives an
    optimistic outlook for the full year 2019: Having concluded the
    restructuring process, Fyber expects to monetize on its unified product
    with gross revenue between €155 and €175 million and an adjusted EBITDA
    between break-even and €5 million. This growth will be based on existing
    products, the roll-out of new products to a wider group of partners and
    the onboarding of new partners. Already in Q4 2018, more than 30 percent
    of Fyber’s gross revenue was achieved with new publishers – a strong
    indicator for future growth opportunities.

    Initial preliminary results for Q1 2019 support the stated guidance and
    show a continuation of the growth trend in Fyber’s programmatic
    business, which grew by 17 percent to €14.5 million in gross revenue,
    out of the total gross revenue of €27.5 million (Q1 2018: €29.3
    million). Further savings in the operating cost led to a 55 percent
    improvement in adjusted EBITDA to €-1.8 million.

    Fyber CEO Ziv Elul, commented: “Having completed our
    restructuring process, we are now well positioned for the coming years
    with a strong client base, a valued product portfolio and a close-knit
    team of ad tech experts. Thus, we are very confident that we will return
    to our growth path in 2019 and expect to deliver positive adjusted
    EBITDA for the full year.”

    The complete annual report 2018 is available on the Fyber website under: https://investors.fyber.com/reports-presentations

    Key Figures

        Full year         Q4    
    In € million 2018   2017   Change YoY 2018   2017   Change YoY
    Gross revenue 128.5   229.8   -44% 38.6   52.6   -27%
    Net revenue 46.1   69.9   -34% 13.5   17.7   -24%
    Net revenue margin 35.9%   30.4%   +5.5pp 35.0%   33.6%   +1.4pp
    EBITDA*     (7.2)   (1.2)   -83%     0.6   2.0   -70%

    *Note: Unaudited, adjusted EBITDA excluding one-off impacts, not a
    measure calculated in accordance with IFRS. For further details please
    refer to the Annual Report 2018.


    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 with a global reach of more than 1.2
    billion monthly unique users. Fyber has offices in Berlin, Tel Aviv, New
    York, San Francisco, London, Beijing and Seoul. The Company employs more
    than 270 people globally and is listed on the Prime Standard of the
    Frankfurt Stock Exchange under the symbol ‘FBEN’ and the ISIN


    Investor Contact
    Sabrina Kassmannhuber
    [email protected]
    30 609 855 555

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