BLINKX PLC TRADING UPDATE
London, England and San Francisco, CA. — 8 April 2015 — blinkx plc (“blinkx” or “the Company”) today provides a trading update for the financial year ended 31 March 2015 (“FY2015” or “the Period”). Preliminary results, based on unaudited, pre-close figures that may be subject to change, are anticipated to be in line with market expectations:
• FY 2015 revenues of at least $210M
• FY 2015 adjusted* EBITDA of at least $3M
• Cash and cash equivalents above $90M
The Company plans to release the results for Financial Year 2015 on 18 May 2015.
Consistent with the Company’s remarks at the time of its half-year results, FY2015 was a transformational year for both the online advertising sector and blinkx. Revenue growth continued to transition toward Mobile and Video, specifically through automated or “Programmatic” trading channels. Over the past year, the Company made significant progress to stabilize its desktop business, and continued to invest in mobile and programmatic capabilities — the key industry growth areas. During the Period, blinkx also launched a major initiative to consolidate its product, sales and marketing strategy to better align with evolving Advertiser requirements.
The acquisitions of Lyfe Mobile and AdKarma, which accounted for the majority of cash usage during this financial year, were instrumental in attracting Programmatic demand across both video and mobile formats. These acquisitions continue to be integrated into the blinkx platform, with the eventual goal of completing a unified Programmatic stack that is able to deliver on the promise of brand safe, cross-screen advertising at scale.
“During FY2015, blinkx continued to execute against its strategy to pursue Mobile, Video and Programmatic advertising, the fastest growing segments of the industry,” said S. Brian Mukherjee, CEO of blinkx. “In a sector characterized by rapid change, we made transformational moves to stabilize and strengthen our core revenue streams while positioning the Company in the emerging high-growth areas of the industry. Our vision remains to bring premium digital content to consumers and thereby aggregate quality audiences across devices at scale for advertisers. We believe that we have made significant progress toward this goal during the year.”
• This press release contains references to adjusted* EBITDA. This financial measure is not a measure that has any standardized meaning prescribed by IFRS and is therefore referred to as a non-GAAP measure. The non-GAAP measures used by blinkx may not be comparable to similar measures used by other companies.
• Adjusted* EBITDA is defined as profit for the year attributable to equity holders of the parent before interest, taxes, depreciation and amortization, stock based compensation expense, and acquisition and exceptional costs. Management believes that this measure is a useful supplemental metric as it provides an indication of the results generated by the Company’s principal business activities prior to consideration of how the results are impacted by one time exceptional charges, how the results are taxed in various jurisdictions, or how the results are affected by the accounting standards associated with the Group’s stock based compensation plan.
For further information please contact:
Analyst and Investor Contact
Dan Slivjanovski/Tony Gonzalez
(US) 415 655 1450
Financial Media Contacts
Edward Bridges/Charles Palmer
(UK) 020 3727 1000
NOMAD and Joint Broker for blinkx plc
Charles Lytle/Christopher Wren
Citigroup Global Markets Limited
(UK) 020 7986 9756
Joint Broker for blinkx plc
Lorna Tilbian/Mark Lander/Nick Westlake
Numis Securities Limited
(UK) 020 7260 1000
blinkx (LSE AIM: BLNX) is an Internet media company that connects consumers and brands through premium content online. Founded in the UK in 2004, blinkx pioneered Internet Video Search using its patented COncept Recognition Engine (CORE). This technology leverages speech recognition, text and image analysis to deeply understand the meaning and context of video content to generate improved search relevancy for consumers and a brand safe environment for advertisers. Today, blinkx is a broad digital media technology, distribution and monetization platform that connects consumers, advertisers and content across four screens. Through its partnerships with hundreds of media companies, including ABC, NBC, Conde Nast, Reuters and Bloomberg, blinkx has indexed and search enabled millions of hours of video content. blinkx powers video search, discovery or monetization on thousands of online properties including Lycos, ABC, CBS and Fox Sports. blinkx is headquartered in San Francisco, California with offices worldwide. For more information please visit www.blinkx.com.