Press release

Fyber N.V. Published Results for Q1 2019

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Key Facts

  • Stable gross revenue of €27.5 million, net revenue of €9.9 million
  • Strong improvement of adjusted EBITDA by 68% to €-1.3 million
  • Conversion of €74.2 million convertible bonds into new equity in May
    2019
  • Strengthening of Fyber’s publisher tool offering by strategic
    partnership with Game of Whales
  • Expansion of global partner network on publisher and advertiser side

Fyber N.V. (“Fyber” or the “Company”, FSE:FBEN), a leading
advertising technology company, today published its financial results
for the first quarter of 2019. While the first three months
traditionally contribute the smallest share to the annual gross revenue
in line with the wider market dynamics, the Company continued its
promising growth in its core business.

The final results of the first quarter 2019 confirmed the preliminary
figures published in April and show a continuation of organic growth in
the programmatic core business: The adjusted EBITDA achieved a strong
year-over-year growth of 68% to €-1.3 million (Q1 2018: €-4.0 million) –
underlining the focus on technological innovation and a clear commitment
to profitability and efficiency. Furthermore, Fyber generated nearly
stable gross revenue of €27.5 million (Q1 2018: €29.3 million) and net
revenue of €9.9 million (Q1 2018: €10.2 million). The slight decline in
total gross revenue, based on that fact that the topline was still
positively influenced by one-off effects in the first quarter of 2018,
is offset by a 17% growth in the programmatic core business outside of
the one-off effects, which have been concluded during 2018.

Launch of new integrated product suite

At the end of the first quarter Fyber launched the new branding and
presentation of its unified product suite of three powerful mobile
monetization products that can help app businesses grow revenue: Fyber
FairBid (combining Fyber’s in-app header bidding solution, publisher
dashboard and reporting tool set), the ad exchange Fyber Marketplace and
the leading rewarded product Offer Wall Edge. The Company continued its
product investment, led by the launch of the latest and improved version
of Fyber FairBid.

Further strategic partnerships and expansion of client network

Fyber entered into a strategic partnership with the mobile tools
developer Game of Whales, who created a fully automated artificial
intelligence system focused on in-app purchases that helps mobile game
developers to increase their users’ lifetime value. Combined with
Fyber’s in-app advertising expertise and real-time user-level data, this
partnership offers a unique solution to publishers. The integration
allows them to automatically calculate both in-app purchase and ad
revenue value, optimizing user experience and user acquisition budgets
by predicting which users will be profitable that can then be targeted
in campaigns. This collaboration is a next step in the evolution of
smart content monetization, putting the publisher’s needs and the user
experience first. The new strategic partnership extends the value
proposition to Fyber’s partners and adds to attractiveness for potential
new publishers.

Successful bond restructuring & new financing

An important milestone in Q1 2019 was the bond restructuring: The
voluntary debt-to-equity exchange of €74 million convertible bonds into
247 million new shares was completed in May, effectively halving the
Company’s debt burden from convertible bonds. Thus, Fyber is able to
return to a positive equity position for the full year 2019.

Furthermore, the Company entered into a €5 million loan agreement,
including a possible expansion of additional €10 million subject to
business needs, with Tennor Holding B.V. (formerly Sapinda Holding B.V.)
maturing in June 2022, to support its operating needs and accelerate its
growth.

Fyber CEO Ziv Elul, commented: “With regard to the conclusion of
our cost saving initiatives, the resulting improvement in adjusted
EBITDA, and the partial bond restructuring we trust to have set the
Company up for a successful start into the year. We are proud of the
joined team effort, that enabled us to present our unified product suite
to the market, bringing real technological edge and product uniqueness
to our partners.”

The complete interim statement is available on the Fyber website under: https://investors.fyber.com/reports-presentations

Key Figures

  Q1       Full year
In € millions   2019   2018   Change YoY 2018
Gross revenue   27.5   29.3   -6% 128.5
Net revenue   9.9   10.2   -3% 46.1
Net revenue margin   35.8%   34.8%   +1pp 35.9%
EBITDA*   -1.3   -4.0   +68%   -7.2

*Note: Unaudited, adjusted EBITDA excluding one-off impacts, not a
measure calculated in accordance with IFRS.

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About Fyber

Fyber is a leading advertising technology company, developing a next
generation platform for the programmatic trading of ads, in a
data-driven environment. Our mission is to fuel the creation of quality
content by empowering digital publishers and app developers to unlock
the true value of their advertising properties through advanced
technologies, innovative ad formats and data-driven decision-making.
Fyber’s technology platform provides an open-access platform for both
digital advertisers and publishers with a global reach of more than 1.2
billion monthly unique users. Fyber has offices in Berlin, Tel Aviv, New
York, San Francisco, London, Beijing and Seoul. The Company employs more
than 270 people globally and is listed on the Prime Standard of the
Frankfurt Stock Exchange under the symbol ‘FBEN’ and the ISIN
NL0012377394.