Tremor International .(US:TRMR)2023-03-07 11:45Financial Performance - Tremor International reported record Q4 2022 Contribution ex-TAC of $103.0 million, a 16% increase from $88.6 million in Q4 2021, and a total of $309.7 million for the year, up 3% from $302.0 million in 2021[3]. - Adjusted EBITDA for Q4 2022 was $36.9 million, down 32% from $54.0 million in Q4 2021, with a full year Adjusted EBITDA of $144.9 million, a 10% decrease from $161.2 million in 2021[3]. - Net income for Q4 2022 was $5,061 thousand, representing a 79% decline from $24,400 thousand in Q4 2021, and for the full year 2022, net income decreased by 69% to $22,737 thousand[24]. - Non-IFRS diluted earnings per share (EPS) for Q4 2022 was $0.15, down 44% from $0.27 in Q4 2021, and for the full year 2022, it decreased by 28% to $0.60[24]. - Total revenues for 2022 were $335,250 thousand, a decrease of 1.9% compared to $341,945 thousand in 2021[29]. - Operating profit for 2022 was $44,752 thousand, down 40.0% from $74,462 thousand in 2021[29]. - Profit for the year was $22,737 thousand in 2022, a decrease of 69.0% compared to $73,223 thousand in 2021[29]. - Basic earnings per share for 2022 were $0.15, down from $0.51 in 2021[29]. Revenue Streams - CTV spend reached a record $99.6 million in Q4 2022, reflecting a 59% increase from $62.5 million in Q4 2021, and total CTV spend for the year was $283.6 million, a 41% increase from $201.0 million in 2021[3]. - Contribution ex-TAC for Tremor International increased by 16% year-over-year to $103,002 thousand for Q4 2022, and by 3% to $309,726 thousand for the full year 2022[24]. - Revenues for Q4 2022 increased by 5% to $107,697 thousand, while full year revenues decreased by 2% to $335,250 thousand[24]. Strategic Initiatives - The company expects to generate meaningful revenue benefits from its investment in VIDAA starting in late 2023, following a strategic partnership with Hisense and Google for ad monetization on the FIFA+ CTV app[4]. - Tremor plans to implement a substantial share repurchase while evaluating strategic opportunities for acquisitions and investments in technology[22]. - The acquisition of Amobee is expected to provide significant synergies and enhance Tremor's ability to cross-sell products to a larger customer base[22]. - The integration of Amobee is expected to be largely completed by the end of H1 2023, with anticipated annualized operating cost synergies of approximately $65 million[7]. - Tremor's investment in VIDAA is anticipated to strengthen its strategic relationship with Hisense, contributing to future growth[22]. Market Position and Growth - The company added 42 new advertiser customers in Q4 2022 and 233 for the full year, indicating growth across various verticals[7]. - Unruly CTRL, Tremor's self-service platform, saw PMP spend increase by 160% in Q4 2022 compared to Q4 2021, demonstrating strong adoption and growth in the self-service segment[7]. - The company anticipates continued growth in both US and international markets in 2023, despite potential challenges from inflation and geopolitical uncertainties[22]. Financial Health - Tremor International achieved a net cash position of $115.5 million as of December 31, 2022, with an additional $80 million undrawn on its revolving credit facility, ensuring strong liquidity for future investments[3]. - Total assets as of December 31, 2022, were $956,161 thousand, an increase of 19.1% from $802,739 thousand in 2021[26]. - Cash and cash equivalents decreased to $217,500 thousand in 2022, down 41.0% from $367,717 thousand in 2021[26]. - Total liabilities rose to $404,546 thousand in 2022, a significant increase from $230,364 thousand in 2021[26]. - Net cash provided by operating activities was $83,008 thousand in 2022, a decrease of 51.2% from $170,088 thousand in 2021[35]. Research and Development - Research and development expenses increased to $33,659 thousand in 2022, up 82.5% from $18,422 thousand in 2021[29].