Nexxen International (NEXN) Q4 2015 earnings summary

Executive summary

• 2015 revenue rose 20% to $75.8m as strategic focus shifted from legacy display advertising to mobile; record mobile run-rate revenue was achieved in Q4.

• AreaOne acquisition and mobile technology investment expanded social advertising capabilities, while adjusted EBITDA and net profit declined YoY.

Financial highlights

• Revenue was $75.829m vs. $63.121m in 2014; gross profit was $21.113m vs. $19.034m.

• Operating profit was $2.923m vs. $8.565m; net profit was $2.149m vs. $6.099m.

• Adjusted EBITDA was $7.4m vs. $10.5m, including $0.4m acquisition-related costs in 2015; operating cash flow was $6.2m vs. $8.6m.

• Cash and bank deposits totaled $18.7m at year-end, after the $9.3m initial AreaOne cash payment and $1.5m 2014 dividend payment.

Outlook and guidance

• Entered 2016 expecting continued revenue growth, with mobile demand gaining traction among household-name brands and significant growth expected from AreaOne.

• Planned to build on geographic diversification and sustained growth in the proprietary user database; no numerical 2016 guidance was stated.