BBTVF - Earnings call transcript Q1 2022

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Operator

Good morning, ladies and gentlemen. Thank you for attending today's BBTV Holdings to Host First Quarter 2022 Conference Call. My name is Tia, and I will be your moderator for today's call [Operator Instructions]. I will now pass the conference over to your host, Nancy Glaister, General Counsel and Legal Officer with BBTV Holdings.

You may proceed.

Nancy Glaister

first conference fiscal BBTV's to quarter call. XXXX Welcome for Nancy Glaister, Counsel General I'm BBTV.

of we of conference information the beliefs the this During course goals expectations, call, These statements forward-looking and within company's current laws. future and statements may the securities meaning events. applicable about are regarding make forward-looking provide

future other or meant about goals only are of statements are are to statements or discussed taken future and performance. information inherently are goals not oriented uncertain. future results Forward-looking the Any guarantees be as financial financial or and

accurate, These All of cause no to are assumptions as our of necessarily as issued to MD&A a our differ as on law. information form sedar.com. include well release risks required and as factors based statements. filed our annual those the results forward-looking number actual yesterday, press our by assumptions, contained latest are obligation not on the our forward-looking from may risks a could update statements undertake number in be these materially of in that statements, that and to except and uncertainties well contained subject in forward-looking as risk We

commentary non-GAAP more which MD&A will our XX, ratios, in and assumptions, these press release today include with Canadian as and our filed XXXX adjusted measures. measures are sedar.com. and You risks our AIF and read issued can Also, well about as March financial yesterdy, uncertainties in financial dated regulators securities

information be and Web between on which Reconciliations available our as a company, found on in company to release not our a earnings and should for presented our as and in are accordance IFRS. financial and be on supplement the the are ratios useful in sedar.com. Although these MD&A, press these prepared evaluating the non-GAAP believes measures site financial and two substitute with considered could

also such which on our Shahrzad Chief be Officer, Lastly, also call non-GAAP certain we RPMs. our release BBTV's can over metrics, to and I these metrics, the measures, are further the earnings MD&A. description press turn as of and report found Rafati. Views also now A Executive in

Shahrzad Rafati

to our SEDAR. analysts call. of posted and quarter Hi We financial MD&A everyone, and our first press some statements information financial earlier to and welcome released XXXX BBTV's

to competency, creators unique has As comprehensive on we're innovative generated, a more them From XXX company our we which succeed them which mission the Visa their views of on a content everyone media making reminder money greater and end by individual QX allowing to solutions end monetization video today, content platform, help their a content. by global creation. is powered core to call in BBTV globally while and creators million to provides focus helps billion viewership BBTV viewers make monthly with more XXX companies, than to more increasing creators money.

Over the press for we quarter couple our updates Plus released strengths past the of month, a of highlighting Solutions. the

quarter, nearly revenues record into XXXX. Our X% continued total has Solutions revenues drove XX% of doubling led in Solutions QX QX from in Plus contribution investment this which XXXX, a XX% the for increase segment promising a to year-over-year to in Plus

which record total a of gross higher annual represent profits growth a rates revenue to further Plus focus perspective, on XX% annual last unanimous XX% in margin to is of now of advertising apps, direct XX% XX% gross short volatility growth year-over-year This our QX, we in lot growth exceeding to Importantly, us revenue investing across growth Plus Solutions, each QX. Plus an with segment for guided content Solutions and further to continue respectively has us makes of mobile expect the from gaming revenue important up given is From confidence XX% doubling performance nearly our business. to across views. This the to term contribution Solutions decision Plus the this in drive sensitive XX% profit XX%. result to our of year. board management, the our We previously on exceed growth made less Solutions basis, a

unit and in for has maintained illustrating strength the the historical performance, a Several this rate management brands clients company It's quarter content partnerships. solutions recurring continued beyond content NBA, management content and For NBA strong XXXX, the as with for management highly stream, Jackass BBTV content app. recognized BBTV expanded key mobile Sony with in clients, Slingshot the deepened in that formed Global, within also existing new some world. for Paramount network company's integrated media XX% of highlight and BBTV collaboration the Games, Pictures, portfolio business content success basketball culture to opens partnerships, the management, CMF standing wider to of retention long Paramount Riot of on relationships such leading including of management division Not of has more reliable Human and the its line recently clients expanded Playmakers gaming and BBTV's of the its Fox, only recent up Univision, TEGNA. launch most important the have a with revenue their is

market Jackass which higher February, than a the on launch well monetization streaming. broader direct and previous relationships beverage, any along finance, expanding we with relationships including records fronts our more positioning mobile In lifetime a increased Regarding into quarter year-over-year media continued new Human us for for the we in XXX% by entertainment, number than In existing size media enhancing partnership sales. of set first game. XXXX. app focused further division order launched our advertising segments, gaming first is value in momentum QX, in XX% for has ready-to-drink the major with Slingshot, auto, and Average Paramount, health, growth were of company, and

very pleased our off. mentioned, that are last we has of our focus paid gaming on we call, efforts apps. overall our monetization have As in earnings And been mobile our increasing

our major a have WebX media partnerships be In a spend. XX able As which QX existing of combined gaming highlight in QX, both rating for apps of now coming encouraged months. we'll are moving published XX fronts and of including BBTV opportunities to about of X most continued mobile with we've response receiving of a we out the an with downloads excited companies, key progress and and number growth the to on X.X the more by marketing strategy, which creators end the customers, negligible with average of million of total And forward. are been we

announced months. our earnings QX partnership, of in out in the the in were call. On excited made and prior development the our to with number which in solutions just We front, to fiscal the we technology progress collaboration strong WebX solutions ConsenSys, coming we roll of a

activated In are seen declined our proof needs this. in are to in QX and For to views content a main to we example, factors comparison solutions with of marketplace XXXX, HX XXXX it of working further creators. two the enhance concept by we meet XXXX. the to There QX our X% declines with consistent

The most in less first lockdowns viewership end world, was resulted digital the of the of COVID on which video. of many forms related in parts

QX viewership compare XXXX the views years. line lockdowns, related the past we with was from change if sequential Further, views is in in sequential rates COVID change the amplified. seen the in seasonal growth to the QX XXXX, in During

the XXXX. trends As comparable, viewership that we're we entering of period consumption more in still believe normalized remain the seasonal

focus creators. was content of main growing shorts, Micro crators We're The the views Instagram that these as YouTube second content team currently to in monetized. are monetizable stages like TikTok content demand factor is Reels. acquisition signing there is for for content onboard and not micro early our

this represent should annual monetized content, based upon XX similar We million of be format the revenue our viewership. for its in several expect could activation will to quarters from micro now be RPMs on current it content short form our and

quarters. excluding by The While QX YouTube to by the incremental Solutions $X.XX from viewership, sensitive margin and increased us mentioned RPMs as will in enabled Shorts, our as were Plus monetization meantime, down has streams. I higher fluctuations we in on viewership decline $X.XX QX revenue 'XX focus Shorts In emphasis RPM YouTube counteract the XX%. once coming of generating RPMs earlier, on made the less to X% in XXXX,

QX, the inherent In of was clearly amongst We the value reflected Our on XX%. be retention believe churn exceptional in platform. creators is at service low rate continues our to views our our BBTV performance. retention

behalf stream, from we're including pleased growth in content with Solutions, reoccurring towards to which to We more comparison audiences have creators. Again, on partners, predictable highly garner the the of viewership been content a response and solutions in Overall, as companies. content a our normalizes quality lot effectiveness our in Fortune XXX our the continue we're to enterprise in Plus due interest management, the post COVID. is particular revenue industry our is and to able retain that monetizing this of convinced of market

We outlook as please our advertising excited into I to the And well that, in then developments away. the Ben, highlight sales, strategic Groot gaming hand over about performance as Ben after for to going move our are review call WebX. to equally the CFO, financial our and I'm take details. direct apps, mobile business. will our it

Ben Groot

Shahrzad you, and morning, Thank good everyone.

adjusted the amortization, everyone share the filings non-recurring QX recorded revenue for IPO that gross our be amortization as as of on fourth noted a the and entity includes remind commentary price PPA is BroadbandTV of quarter results XXXX. XXXX. $X.X main amortization without or Accordingly, assets It recorded the amount like presented gross purchase as performance, in transaction margin. provide review that and our begin allocation non-cash. the cost metrics will as to associated our well operating PPA, we I BBTV the Before in the with when cost I'd was of of gross million Holdings in of PPA is the per the the this company's of BBTV Amortization and the profit the part acquired should statutory as for our Corp margin revenue of of of in QX

which year against viewership positive direction, our to margin is of results, which and improvements perform for a was another lower it retention Plus the COVID last past the reflecting overall further a well, over related strong we in Total to in viewership quarter Now to the benefit quarter for same are our for for include with revenue high the comparing continues the million, continues our shift QX. gross consumption extremely the year, investments rate QX $XX.X of revenue as our Solutions, lockdowns. higher X% period turning during highlights an quarter than mix our first as exceptionally XX%

Additionally, we previous yet continue which been quarters, not the growth we've talked to has see the content, monetized. and micro as recent consumption of impact about of in

from revenue quarter first our quarter. is QX, usual, strong is down seasonally which As our

the in were year. second half XXX is from the of by down views consumption billion we of with X% QX which consistent total saw last views of Our patterns XXXX,

As the were same entering represented YouTube Shorts figures. the viewership, about in years, of by comparing earlier seasonal RPM line quarter, If with monetized, our YouTube viewership are believe roughly we the trends the not to XX% XXXX. is RPMs our depresses year-over-year QX in being viewership artificially in down quarter past the first to in period would X% XX% by RPMs views quarter. presently we viewership, in have YouTube the QX. Shorts more QX normalized Shorts in of are which consumption Since the it in to grown due as exclude impact compared a year we of

significant the on such, format quarters to content, of it represent short If future a based and We for coming form us the as annual to be expect upon are will monetized be opportunity. growth we revenue micro current in could the for content today. activation million $XX similar our RPMs viewership consider it this

Solutions that solutions to $XX impact having both profit, Plus year is The revenue monetization continue million, trend also strong strong in of with Plus to which gross our as Plus million. growth could pleased YouTube up The Solutions XX% base and of led XX% annual Solutions saw to in content total as XX% which result basis, the of in now XX% Plus growth XX% We was previous growth. new Shorts RPMs an the views Solution with our our XX% continued our our expecting exceed and direct in to revenue down apps were double are our guidance and performance quarter. almost earlier a very and now is from activated. But growth was reflected XX% in to scale, $XX.X expect management, with combined sales continues revenue our which this growth lower upwards of rate on and of annual we We to is RPMs revenue, our mobile are records. strong by gaming represents

and revenue Solutions total a expect sensitive unlock continue investments, our We up, volatility ramp to see margin lumpiness we there share us our our our the becoming allowing benefits and less Plus to grow of While faster from Solutions than Plus to BBTV remain to as focused creators. existing to on of gross further rate at will the some its profit views. are we and term short value higher continue we be

and to declined in revenue last have resulted ongoing loss million than for to higher of quarter same we and up efficiencies first highlighting revenue share $X.X year-over-year X.X% profit to gross amortization, Solutions, a compensation. was our base mix third-party accelerate The Solutions. content only quarter coupled year QX. fees, scale. was Plus revenue gross lower higher $X.X less margin improved due which adjusted the first excluding Plus noncash the EBITDA expenses BBTV of from was the the $XX.X our margin would of based for Operating investments in million adjusted our and $X.X QX to Solutions. X% as content million with ramp PPA the year. X.X gap our operational due Our gross creator or X.X%. last for XX.X% higher expenses the despite is platform in representing last for a by declined Plus Operating OpEx million adjusted OpEx monetization of continued EBITDA Due share, higher the investments This comparable of period solutions year-over-year to quarter otherwise year margin million were micro

a In quarter balance now I with million in debt $XX.X ended terms maturity the back will balance of sheet, we Shahrzad. with XXXX. our it turn and $XX.X cash the long-term in million was to

Shahrzad Rafati

margins. working to our of we're would you, Thank on that revenues the some to and I scale itemize activities our Ben. like increase

continuing comes to and on in are increasing. the management, opportunities continued concentrate of addition new to Solutions When existing our to most will companies work clients our initial we're tailoring builds to We we where to some expand and margins activities Shopify. it clients, continue consumer management market and higher will on which media global solutions. Plus creator are of significantly with expansion have brands, content the This services focus upon address like our content for done

we migration direct as advertising as and dollars sales we're digital are the from focused ad to it forward on to what such doing, TV Looking relates of linear, audiences.

present exclusive and demographic our the of reach young objective to traditional to Our is our TV package buyers premium offering. content

size signing orders. on order with further increase deals focused of we're strategic Secondly, agencies to volume increase the and

us and our ability first our to access has further that that With is to consumers, looking of rights into the pipeline. campaigns It is the datasets. party advertising to advertising. and to and advertising first cookies driver are sets BBTV highly developed party build utility half targeted exclusively of XXXX, data advertisers for first insights key direct apart. contextual directly particularly effective a This content engage declining the has contextual and with unique in the

spending media multicultural of companies reach diverse audiences more with generations. all brands are to Finally,

company offering value to to positioned to Given for XXXX, the in see increased increasing user lifetime When QX users the mobile the is benefit [strips]. In it BBTV's this from board. the apps, very continue audience, average value we significantly. we this across our of comes gaming well progress

acquisition for advantage are return leverage organic Jackass positive our have ad and test Slingshot user While also unique currently competitive we for spend. we begun to achieving already we user on a acquisition, Human

With expertise empower opportunity with economy number and on our partnerships progress to WebX’s building growth both higher for As uniquely now including a strategy, key we're a to and our I creator we're lifetime we fronts are of and of media exploring customers. continuing the result, is scale creators this are companies BBTV and games value. focused as on which existing major of WebX forward. mentioned with most moving positioned earlier,

solutions audiences, lack empower to to conceptualization the be will we tools the WebX. our deeper on With the strengthen deepen results packaging we've we and fronts will our performance any This and design Plus further transactions to other to M&A, creators marketing to the into high our to very strengths that From creators engaged conclude. promotion attract for expertise to scale existing expand Solutions. content relationship a we across like touch creator and revenue our the base who to to price presence current channels their and in respect with right will to we remain which with We providing would comprehensive content future management do Plus other our solutions levels. creators and team and And creators, and to I IP relationships funnel base share knowledge or high continue solutions, ensure will will what similar end viewership economy. and WebX to apply quickly approach the streams powerful for is for end I The business expertise, and with are done BBTVs associated several them. our accretive drive be Solutions. on creative best before to quality also that solutions and

add have operates continuously streams The past point scale We margin to invest opportunity spent and minimal and to the the XX shareholders revenue now optimizing and efficiency business in higher that new value where costs. this the us for and affords it with services automating creators that years alike.

of million over XXX and content the viewers repositories largest world. data and the We one of unique have in

the that sector including time essential want are putting in investments to scaling that recognize compared I our and we're to our to efforts. this are solutions Solutions, efforts Although base WebX, mature minimal Plus into

them in very by strong about that I to We to us that creators we the and make model have conclude we exciting sticky. valuable solutions really business saying the things and a base is near occurring want talk have will future. in

and Our are business and scalable extensible. model technology highly

So flow. delivers to at we cash to we're and proven streams model have add continue that new business expense, able revenue minimal meaningful our

balance operating transition based and If establish content BBTV cash on to are viewed on on regarding the would to creators our many our we you of the the of in. have thing forefront now I almost think $XX for, according is of times available time two about are of our nearly the This investing an million Disney. We the libraries cash for creator sheet is sheet. announcements, and exciting one flow excited of that WebX less have about that leave BBTV. with is the us And to We're most to we Right world, cash. already looking one the balance stock, which we at comScore our have of our trading in than Xx future. recent stock

I strong. believe that a for capital for it business open Our questions. value allocating our that now our in up is maximizes and We the company And can shareholders. way we're

Operator

Absolutely.

session Q&A the begin [Operator now Instructions]. will We

of The first from is with question Adhir the Capital. line Eight Kadve

Adhir Kadve

the give a direct that XX%. sales quarter, that guys mentioned you you making by of you sense grow us Can you're wanted team? last there headcount your I investments to know in

are give you a that of hiring sense So us in maybe where cycle?

Shahrzad Rafati

we've We the that's expanding specifically And obviously central Coast the the from key we including US, have team, is don't Coast. direct share across expanded but a to obviously, seen And the segments, focus know, regions all in And East advertising. you significant Plus we our actually, team. and as to success Solutions. great our West breakdown growth had have across

in course, seeing of Solutions. and track we're we're rates Plus of our sales, So more and across growth at all XX% on were XX% than this certainly

Adhir Kadve

some to kind one us maybe you you strength creation, of maybe give newer But on the additional guys touched be of us to on one areas and sense pipeline Can this. you And that color for on then of color the some content outsized a just that more give little maybe the on you of can that seems more saw, can new bit on the solution? onboard clients clients, you that?

Shahrzad Rafati

we and really Univision regions. partnerships announced, -- like also had we not but a different quarter, signed as deals renewed we only strong had we've Fox, in We key

content into that operating expansion signing region, we're example, well Games was our Riot as creators regions across specifically as the new APAC all in. For up

in As countries. operate you know, we different XX

We also have expanded solutions. our

or our that on the Plus partnerships. specifically in us to case. to company Shopify on this any further side like content for confidence management has example, expand offering the solutions other with example, For XXX side, We the given solutions, and brands brands with media we're tested that more

clients also and are existing solutions. We at existing clients new growing looking across

that, NBA Paramount I how mobile think variety the a Playmakers of NBA same we launch is did apps a that of grew with the of is example thing in different the of -- We terms solutions. a across with partnership with Paramount. great

seeing that we're regions we're operating So this in. the all across

Operator

additional no are it time. for will at the questions pass There this further I management to Instructions] [Operator team back any remarks.

Shahrzad Rafati

give a just it more it we additional Maybe definitely any have if great. is and we questions, couple seconds This close. can not, for

Operator

conference today's concludes you. call. That Thank

may You line. now disconnect your

BBTV (BBTV) 17 May 222022 Q1 Earnings call transcript