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ATEME — Earnings Release 2024
Jan 30, 2025
1124_iss_2025-01-30_f87ff225-f4c1-4135-8df8-9cf129be70d4.pdf
Earnings Release
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ATEME
Paris, January 30, 2025 - 6:45 PM CET
PRESS RELEASE
FOURTH QUARTER AND FULL YEAR 2024 REVENUES
- STABLE 4TH QUARTER REVENUES
- FULL YEAR REVENUES OF €93.5 MILLION, DOWN -7% AND -6% LIKE-FOR-LIKE
- MONTHLY RECURRING REVENUES UP +20% YEAR-ON-YEAR
- 2024 EBITDA NOW EXPECTED AROUND BREAKEVEN
| Revenue (IFRS) in € thousands | 2023 | 2024 | Change | Like-for-like^{1} |
|---|---|---|---|---|
| First 9 months | 69,560 | 63,171 | -9% | -8% |
| Fourth Quarter | 30,471 | 30,327 | 0% | -1% |
| TOTAL | 100,031 | 93,498 | -7% | -6% |
Figures under audit review
| Revenue (IFRS) in € thousands | 2023 (12 months) | 2024 (12 months) | Change | Like-for-like^{1} |
|---|---|---|---|---|
| EMEA | 35,275 | 40,995 | +16% | +16% |
| USA / Canada | 40,067 | 23,978 | -40% | -40% |
| Asia Pacific | 12,894 | 17,584 | +36% | +41% |
| Latin America | 11,797 | 10,941 | -7% | -8% |
| TOTAL | 100,031 | 93,498 | -7% | -6% |
Figures under audit review
| MRR in € thousands | Jan. 2024 | Jan. 2025 | Change |
|---|---|---|---|
| Monthly Recurring Revenue^{2} | 2,470 | 2,954 | +20% |
Alternative performance indicator, not subject to statutory auditors' review
Paris, January 30, 2025 - Ateme (ISIN: FR0011992700) posted revenues of €30.3 million for the 4th Quarter of 2024, stable versus Q4 2023 and -1% like-for-like.
Total revenues for the year to December 31, 2024, stood at €93.5 million, down -7% versus 2023 and by -6% on a like-for-like basis.
- The EMEA (Europe, Middle East & Africa) region was the main contributor representing 44% of the group total, ending 2024 with €41 million in revenues, up +16% year-on-year (same growth
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PRESS RELEASE
rate on a like-for-like basis);
> Despite signs of recovery in the 2nd Half, revenues in the USA / Canada region decreased by -40% year-on-year (same decline on a like-for-like basis) to €24 million. This was due to a tough comparison base (+19% growth in 2023), a challenging macroeconomic environment which saw investments delayed amid industry consolidation, and commercial counter performance. To address this situation, Ateme has implemented a deep reorganization of its commercial model, aimed at getting the region back on track for 2025;
> The Asia Pacific region delivered the strongest growth, with €17.6 million in revenues, up by +36% and +41% like-for-like;
> The Latin America region weakened slightly in Q4, ending with a -7% year-on-year decline (-8% like-for-like) with €10.9 million in revenues.
Monthly recurring revenues (MRR³) rose from €2.470 million in January 2024 to €2.954 million in January 2025, reflecting the strong pace of MRR creation throughout 2024, notably with six new Enterprise Licenses in Q4.
As a result, Ateme begins 2025 with €35.4 million in Annual Recurring Revenue (ARR), representing 38% of the 2024 revenues, up from €29.6 million a year ago, representing 30% of the 2023 revenues.
FY 2024 EBITDA expected around breakeven
In the 4th Quarter, revenue acceleration fell short of initial expectations.
As a result, EBITDA⁴ for FY 2024 is now expected around breakeven.
Year-end available cash was close to €10 million, thanks to a profitable H2 and improved receivables management.
Looking ahead
At the beginning of 2021, Ateme announced a three-year investment plan to launch new solutions on the market, including the next generation of cloud DVR, NEA Genesis, and the NEA Composer solution for ad insertion and FAST channels (Free Ad-supported Streaming Television). The plan also aimed to bring MRR to €3 million by 2024. However, the expected impact on profitability improvement in 2024, with an initial EBITDA target of €10 million, was compromised by challenges in the North American market.
However, everything has now been put in place, with reorganization and cost rationalization efforts undertaken since Summer 2024, to ensure this impact materializes in 2025. Improving profitability remains the top priority for this year.
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PRESS RELEASE
Looking further ahead, Ateme reaffirms its medium-term objectives for 2027:
- Consistent revenue growth to reach €130 million;
- Direct cost margin of €99 million;
- EBITDA of €22 million;
- Monthly recurring revenue (MRR) of €4 million.
These objectives align with Ateme's 10-year growth trajectory and the cost-reduction measures implemented since 2024.
Commercial reorganization in USA / Canada in 2025
As mentioned above Ateme has undertaken a thorough reorganization of its USA / Canada sales organization.
As of January 2025, Gustavo Marra has been appointed SVP USA / Canada. After holding various management roles in operations and business development at Ateme North America from 2011 to 2018, he rejoined the company last September to support business development efforts. His leadership, technological expertise, and the wealth of experience he gained after his first tenure at Ateme make him a valuable asset in driving our North American business back to growth.
In addition, the USA / Canada sales organization has been reorganized by verticals, a Customer Success Managers team has been created to facilitate deal closure, and the involvement of the Global operations team has increased.
Michel Artières, Chairman and CEO of Ateme, commented: "Ateme spent the year catching up on the delays accumulated in the 1st Quarter. In a highly challenging market environment, we ultimately managed to limit losses and emerged significantly stronger, with a controlled cost base, a major reorganization to get the USA / Canada region back on track, and a sharp increase in ARR. These are all assets that position us well to deliver much better results in 2025."
Upcoming event:
March 19th, 2025: Full Year 2024 Results (audited)
(after Euronext Paris market closing)
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About Ateme
Ateme is a global leader of video compression and delivery solutions helping Tier-1 Content Providers, Service Providers and Streaming Platforms to boost their viewership and subscription engagement.
Leveraging a unique R&D task force in the video industry, Ateme's solutions power green sustainable TV services, improve end-users' quality of experience, optimize the total cost of ownership of TV/VOD services and generate new revenue streams based on personalization and ad insertion. Beyond the technology agility, Ateme's value proposition is to partner with his customers by offering a great flexibility in the engagement and business models matching their financial priorities. A consequence is a rapid shift to Recurring Revenues, boosting the company resilience and creating long term value for the shareholders.
Founded in 1991, Ateme has 550 employees spread over its headquarters in France and 20 offices around the world including the USA, Brazil, Argentina, UK, Spain, Germany, the UAE, Singapore, China, Korea, Canada and Australia.
Ateme has been listed on the Paris Euronext market since 2014 and in November 2020 it made the acquisition of Anevia, a provider of OTT and IPTV software solutions. In 2024, Ateme served close to 1,000 customers worldwide with revenues of €93 million, of which more than 90% outside its home market.
Find out more: www.ateme.com.
Name: ATEME - ISIN Code: FR0011992700 - Ticker: ATEME - Compartment: C
| Ateme | INVESTOR RELATIONS | PRESS RELATIONS |
|---|---|---|
| Michel Artières | ||
| Chairman and CEO | Mathieu Omnes | |
| Tel: +33 (0)1 53 67 36 92 | ||
| [email protected] | Amaury Dugast | |
| Tel: +33 (0)1 53 67 36 74 | ||
| [email protected] |
DISCLAIMER
This press release does not constitute or form part of and should not be construed as any offer for sale of or solicitation of any offer to buy any securities of Ateme, nor should it, or any part of it, form the basis of or be relied on in connection with any contract or commitment whatsoever concerning Ateme's assets, activities or shares.
All statements other than historical facts included in this presentation, including without limitations, those regarding Atemes' position, business strategy, plans and objectives are forward-looking statements.
The forward-looking statements included herein are for illustrative purposes only and are based on management's current views and assumptions. Such forward-looking statements involve known and unknown risks. For illustrative purposes only, such risks include but are not limited to impact of external events on customers and suppliers; the effects of competing technologies competition generally in main markets; profitability of the expansion strategy; litigation; ability to establish and maintain strategic relationships in major businesses; and the effect of future acquisitions and investments.
Ateme expressly disclaims any obligation or undertaking to update or revise any projections, forecasts or estimates contained in this presentation to reflect any change in events, conditions, assumptions or circumstances on which any such statements are based, unless so required by applicable law. These materials are supplied to you solely for your information and may not be copied or distributed to any other person (whether in or outside your organization) or published, in whole or in part, for any purpose.
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