Embed Size (px)
Citation preview
QUARTERLY REPORT
Q2 2014 UNAUDITED
2
Contents
Selected highlights _______________________________________________________________________________________ 4
Q2 2014 in Brief __________________________________________________________________________________________ 5
Financial development summary _______________________________________________________________________ 8
About Cxense ___________________________________________________________________________________________ 10
Outlook __________________________________________________________________________________________________ 14
Condensed Financial Report ___________________________________________________________________________ 15
Consolidated Income Statement (unaudited) ________________________________________________________ 17
Consolidated Statement of Financial Position ________________________________________________________ 18
Consolidated Statements of Changes in Equity ______________________________________________________ 19
Consolidated Statement of Cash Flow ________________________________________________________________ 20
Notes to the Consolidated Financial Statements _____________________________________________________ 21
“Cxense (pronounced see-sense) helps businesses succeed in a digital world. Using audience data and
advanced real-time analytics, Cxense creates hyper-relevant content recommendations; targeted
advertising and predictive search that help customers increase digital revenue, and provide their
users with a better experience. Cxense is headquartered in Oslo, Norway, with offices around the
globe.”
3
OFFICE LOCATIONS
North America Latin America Japan Europe Asia Pacific
New York City, NY
Cxense, Inc. 1180 Avenue of the Americas Rockefeller Center NY 10036 USA
Buenos Aires, Argentina
Cxense Argentina Victoria Ocampo 360 Puerto Madero Ciudad de Buenos Aires Argentina
Tokyo, Japan
Cxense Co., Ltd. SU Building 204 3-1 Uguisudani-cho, Shibuya-ku Tokyo, 150-0032, Japan
Oslo, Norway (Corporate HQ)
Cxense AS Sommerogaten 17 P.O. Box 2920 Solli NO-0230 Oslo, Norway
Melbourne, Australia
Cxense Australia Pty Ltd 84 William Street Melbourne, 3000 Australia
San Francisco, CA
Cxense, Inc. 20 N. San Mateo Drive San Mateo, CA 94001 USA
Miami, FL
Cxense Latin America Suite 232, 4801 South University Drive Davie, FL 33328 USA
Rio de Janeiro, Brazil
Cxense Brazil Praia Botafogo, 300 - Botafogo
22250-040 Brazil
London, UK
Cxense UK 5 Regent St. Charles House, 5th Floor United Kingdom
Copenhagen, Denmark
Cxense Denmark Emediate ApS Emdrupvej 28B 2100 Copenhagen Denmark Stockholm, Sweden
Cxense Sweden Emseas Teknik AB Drottninggatan 67 111 36 Stockholm Sweden
Singapore
Cxense Asia 12 Marina Boulevard #17-01, Marina Bay Financial Center Tower 3 018982 Singapore
4
Selected highlights
Cxense listed on the Oslo Stock Exchange (OSE: CXENSE) with first trading day on July 1, 2014
Q2 2014 SaaS revenues reached USD 3.44 million, up 246% from Q2 2013 (USD 0.993 million)
Q2 2014 EBITDA for the SaaS segment was USD -2.95 million1, as compared to Q2 2013 EBITDA of -
1.84 million
Gross margin grew to 81.2% in Q2 2014, up from 79.6% in Q2 2013
21 new SaaS recurring revenue customer contracts signed in Q2 2014 (a 50% growth in new contracts from Q2 2013), including Citygate (newspaper media agency, Sweden), DISCO (leading job classifieds company; Japan), Eniro (leading yellow pages; Denmark), Rappler (social news network; Philippines), Telesur (pan-Latin American television network); TV2 (leading broadcaster; Denmark), Winnipeg Free Pree (premium publisher; Canada). Furthermore, the initial upsells to the Emediate customer base took place in Q2 2014.
Launch of the Cxense DMP, a real-time Data Management Platform that offers publishers improved aggregation, segmentation and use of customer data to better engage and monetize visitors across all digital channels, including mobile phones and tablets. Furthermore, the Cxense SaaS product suite added unified mobile and tablet in-app capabilities.
1 Adjusted for Q2 2014 stock exchange listing costs of USD 1.61 million and a one-off receivable loss provision of USD 0. 2 million.
5
Q2 2014 in Brief
In Q2 2014 Cxense experienced strong new sales, in particular in Europe and Japan. Q2 2014 revenues for
the SaaS segment was USD 3.44 million, a 246% year-on-year growth as compared to Q2 2013 revenues of
USD 0.993 million.
In Q2 2014 Cxense signed 21 new recurring revenue contracts for its Software-as-a-Service (SaaS) business,
a 50% growth in the number of new contracts as compared to Q2 2013. The full quarterly effect of the 21
recurring revenue contracts was USD 0.216 million, while the Q2 2014 booked revenue was USD 0.118
million2. This also included the first upsells to the Emediate customer base. The Company experienced
customer churn at a similar level as in previous quarters3, while Q2 2014 consulting services revenue
increased with more than 200% from Q2 2013, at approximately 6% of the total SaaS revenue.
New sales were strong in Europe and
Japan, comprising 71% of the new
recurring revenues, while Americas and
Asia comprised 29% of the new
recurring revenues. The majority of the
new customer contracts were signed
with online media companies and
publishers, and complemented with e-
commerce companies. Out of the 21 new
contracts, 16 came from new customers,
while 5 were upsell on existing
customers.
Q2 2014 gross margin for the SaaS
business was up to 81.2%, as compared
to Q2 2013 gross margin of 79.6%.
During the first quarter, Cxense
continued to build the organization for
future growth and the Cxense SaaS
segment organization grew from 106 employees at the beginning of the quarter to 110 at the end of Q2
2014, a growth of four employees. Of the 110 employees, there are 43 employees within the R&D
organization. Furthermore, 29 works within Sales & Marketing, whereof 21 within front-end sales. 29 works
within the Operations (Onboarding, support, and retention) organization, and 9 within Finance & Admin.
2 Not all new contracts have a full quarterly effect in the quarter they are signed. 3 Approximately 1.5% of the monthly recurring revenues However, a select set of services Emediate customers that do not fit with the Cxense market focus, were discontinued. Resulting in a monthly revenue offset of approximately USD 0.08 million
6
The Q2 2014 OPEX for the SaaS segment was USD 5.74 million, net of a USD 1.6 million transaction costs
related to the listing of Cxense on the Oslo Stock Exchange4, as well as a one-off USD 0.200 million provision
for losses on a customer account that came with the Emediate acquisition. The Q2 2014 net OPEX of USD
5.74 million compares to USD 2.63 million in Q2 2013. Q2 2014 adjusted EBITDA for the SaaS segment was
USD -2.95 million, as compared to USD -1.84 million in Q2 2013.
During 1H 2014, the Cxense Leadership team and Board of Directors prepared the company for a listing on
the Oslo Stock Exchange. In June 2014, Cxense raised USD 7.6 million in new equity and the company was
listed on the Oslo Stock Exchange with first trading day on July 1, 2014. The new equity was raised through
two share issues with a total of 359 317 new shares, each at price of NOK 130. For each share issued Cxense
also issued two warrants, warrant A and B. Warrant A with a term of one year and a strike price of NOK 140.
Warrant B with a term of 2 years and a strike of NOK 1505. After the share issue there were 3 681 717
shares and 718 634 warrants outstanding. If exercised in full, the issued warrants would bring additional
growth capital of USD 17.2 million to the company. In Q2 2014, ahead of the stock exchange listing, Cxense
granted 78 700 subscription rights to management and key employees. 3 200 has been withdrawn due to
employment terminations. After the Q2 grant there were 216 300 subscription rights and share options
outstanding with a weighted average strike price of NOK 1166.
The stock exchange listing of Cxense is an important step towards realizing the Cxense growth strategy of
pursuing new market verticals and value accretive acquisitions. In addition, the listing offers important
investment liquidity to our investors.
During Q2 2014, our R&D teams made good progress with developing new features for all the Cxense SaaS
applications: Cxense Analytics, Cxense Advertising, Cxense Content, and Cxense Search, as well as the new
Cxense DMP product.
Among several new features the Cxense Advertising development team launched so-called “shared
products”. The shared products feature allow publishers to share advertising space between campaigns sold
by own sales force, strategic partners and third party networks and exchanges. This allows for increasing
inventory utilization, also between advertisers and publishers in different countries, without compromising
with regards to data leakage and loss of control. The new feature is an important step towards a fully
automated programmatic buying-selling advertising application that safeguard all publisher interests.
In Q2 2014 the Cxense Analytics development team further developed the flexibility of the Analytics user
interface (UI) by adding several new customizable workspaces. With the added flexibility it is now possible
(with user configuration only) to set up editorial and analytics dashboards that mirrors several competing
4 A certain part of the listing cost is still unsettled. See note 14 for details. 5 The exercise right of warrant A and B is linked: Warrant B can only be exercised by an investor if Warrant A has been exercised within its term. 6 Cxense has 140 800 share options outstanding under the September 2012 share option program and 75 500 subscription rights outstanding under the current subscription rights program.
7
analytics solutions and in addition add new functionality. This reduces switching costs for potential
customers with existing analytics solutions and enhances our sales pitch in several situations.
The development of mobile capabilities to support our customers online traffic migration from web to
mobile is a key priority for Cxense. In Q2 2014 the development teams launched several new mobile
software development kits (SDKs), and we now provide a complete range of mobile SDKs for all the Cxense
applications. The Mobile SDKs allow easy integration between the Cxense software and customer mobile
apps (both native apps and HTML5 apps).
In Q2 2014, Cxense also launched the Cxense DMP (Data Management Platform), which offers publishers
improved aggregation, segmentation and use of customer data to better engage and monetize visitors across
all digital channels, including mobile phones and tablets. Cxense DMP is an extended version of our previous
Big Data Solution with new customer data integration opportunities and extended features. Three of the 21
new contracts were signed on the Cxense DMP platform that was launched in April 2014.
Q2 2014 PCAN business segment revenues amounted to USD 750 thousand compared to USD 547 thousand
in Q2 2013 (37% YoY growth). The PCAN Q2 2014 gross margin was 25% compared to 11% in Q2 2013. The
PCAN revenue and gross margin growth came from increasing number of advertisers and advertising
products, advertising performance and publisher advertising space. The PCAN Q2 2014 EBITDA was USD -
45 thousand, as compared to USD -137 thousand in Q2 2013. The PCAN business had 10 employees at the
end of Q2 2014.
The Q2 2014 consolidated revenues for both business segments amounted to USD 4.11 million (net of inter-
segment eliminations of USD 78 thousand), compared to USD 1.54 million in Q2 2013. Group EBITDA for Q2
2014 amounted to USD -4.79 million. Adjusted for listing costs of USD 1.61 million and the one-off provision
for loss on receivables the EBITDA for Q2 2014 was USD -2.99 million, compared to a Q2 2013 EBITDA of -
1.98 million. The Cxense group had 120 employees at the end of Q2 2014, with 10 working for the PCAN
segment and 110 for the SaaS segment.
8
Financial development summary
1) Q2 2013 cont’d and quarters thereafter exclude the discontinued operations of PPN AG (See note 4 for details).
All other quarters are presented including PPN AG. Segment notes in the financial reports published after the
PPN divestment are re-stated with figures for continuing operations.
2) Cost of sales net of elimination differences.
3) Emediate is included within operations in Q4 2013 with the months of November and December, i.e. not a full
quarter, as the effective date for the acquisition was November 1. For Q1 2014 and onwards Emediate is
consolidated with normal full quarterly effect.
USD 1,000 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013
Q2 2013
cont'd.
Qtr 3
2013
Qtr 4
2013 excl.
Emediate
Qtr 4
2013 incl.
Emediate
Nov &
Dec 13 Q1 2014 Q2 2014
IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS
SaaS segment
Revenues total 389 503 674 736 840 993 993 1 090 1 314 2 650 3 568 3 442
Cost of sales 10 134 58 117 146 203 203 179 244 501 644 646
Gross profit 379 369 616 619 694 790 790 911 1 070 2 149 2 924 2 796
Gross magin % 97 % 73 % 91 % 84 % 83 % 80 % 80 % 84 % 81 % 81 % 82 % 81 %
Personnel 1 206 1 443 1 312 1 579 1 790 1 832 1 832 1 833 2 383 2 935 3 055 3 861
Other OPEX 218 348 489 221 676 802 802 643 1 580 1 849 1 662 3 685 Whereof direct transaction costs 436 436 1 601
Whereof one-off receivable provision 200
OPEX 1 423 1 791 1 801 1 800 2 466 2 633 2 633 2 476 3 963 4 784 4 717 7 546
EBITDA -1 044 -1 422 -1 185 -1 181 -1 772 -1 844 -1 844 -1 565 -2 893 -2 635 -1 793 -4 750 EBITDA adjusted -2 457 -2 199 -2 949
PCAN segment
Revenues total 809 976 1 437 1 375 1 534 547 685 634 634 672 750
Cost of Goods Sold 765 965 1 443 1 390 1 263 487 523 450 450 502 560
Gross profit 43 11 -5 -15 272 60 162 184 184 170 189
Gross magin % 5 % 1 % 0 % -1 % 18 % 11 % 24 % 29 % 29 % 25 % 25 %
Personnel 180 202 226 238 291 124 109 107 107 145 157
Other OPEX 119 66 107 97 129 73 35 78 78 84 77
OPEX 299 268 332 335 419 196 144 185 185 229 234
EBITDA -256 -257 -338 -350 -148 -137 18 -1 -1 -59 -45
GROUP
Revenues all segments 389 1 312 1 650 2 173 2 215 2 527 1 540 1 775 1 948 3 284 4 240 4 192
Intra-segment eliminations - -61 -84 -112 -110 -126 -40 -67 -72 -72 -66 -78
Revenues consolidated 389 1 251 1 566 2 061 2 105 2 401 1 500 1 708 1 876 3 212 4 173 4 114
EBITDA -1 044 -1 678 -1 442 -1 519 -2 122 -1 991 -1 980 -1 547 -2 894 -2 636 -1 852 -4 794
EBITDA adjusted -2 993 -2 200 -2 993
9
4) Direct transaction costs in Q4 2013 include cost to lawyers and financial advisors that performed due-
diligence and general advisory services in connection with the acquisition of Emediate (Transactions costs
related to the share issue financing the acquisition are booked against other paid in capital and therefore
visible in the consolidated statement of changes in equity, i.e. not in the profit and loss statement).
5) Direct transaction costs in Q2 2014 include costs to advisors that assisted Cxense with the stock exchange
listing process that are booked as costs according to IFRS.
6) The adjusted EBITDA is EBITDA adjusted for the direct transaction costs and the one-off receivable provision
10
About Cxense
Cxense (pronounced "see-sense”) helps businesses succeed in a digital world. Using audience data and
advanced real-time analytics, Cxense creates hyper-relevant content recommendations, targeted advertising
and predictive search that help increase digital revenue for media and e-commerce companies, while
providing users with a better experience. By capitalizing on Big Data to match user preferences and create
unprecedented personalization online, businesses gain more engaged and loyal users, higher advertising
revenue and increased digital subscribership.
Cxense is a global company headquartered in Oslo, Norway, with offices in Buenos Aires, Copenhagen,
London, Madrid, Melbourne, Miami, New York, Rio de Janeiro, San Francisco, Singapore, Stockholm, and
Tokyo.
Customers include AEON Group, Aller Media, Alma Media, Amedia, Archant, A. H. Belo Corporation, Bonnier,
El Comercio, The Economist, Egmont, Eniro, Globo, Local World, Morris Communications, MTG, Naspers,
Nippon Television, Polaris Media, Rakuten, Grupo RBS, Ringier, Schibsted, Summit Media, Tamedia, VOYAGE
GROUP and Yomiuri. Cxense is listed on the Oslo Stock Exchange (OSE: CXENSE).
11
Cxense built the Extraordinary Insight EngineTM (EIE) for real-time analysis of content, user context, and
user data, including 1st and 3rd party data. The EIE is fully integrated with a range of applications (Cxense
Advertising, Analytics, Big Data/DMP, Content, and Search), which are used by Cxense customers to increase
advertising revenue, user engagement, conversions to digital subscriptions and product sales.
The applications based on the EIE are provided as SaaS (Software-as-a-Service) services with monthly
recurring subscription license fees, as well as additional royalty payments dependent on advertising volume
and transaction levels. In addition, we charge implementation fees and consultancy services amounting to 5-
10% of revenues in each quarter. The sale of our SaaS applications is reported in the Cxense SaaS business
area and represents the Company’s core business.
The EIE™ (Extraordinary Insight Engine™)
The EIE analyzes the behavior of more than 500 million Internet users and detect their location and device
and deduces their interest, intent, among others. The EIE gives our customers a 360 degree view of their
online users, including also customer 1st party data, as well as 3rd party data.
The EIE technology has several unique aspects. It is end-to-end real time: From data capture, through data
processing, to actionable data output. It is also mobile optimized through its scalable, low bandwidth user
profiling methodologies, which do not rely on 3rd party cookies. With highly flexible APIs, the EIE can power
any application and make it context aware.
It employs a unique behavioural, contextual, collaborative and semantic processing; making user and
content insight actionable in real time.
Cxense Advertising
Cxense Advertising provides businesses with the most targeted advertising solution on the market. Media
companies choose Cxense Advertising so they can deliver the most relevant advertising and promotions to
their users. This improves the user experience on their sites, boosts the effectiveness of the ads they serve
and increases the price at which they can sell their inventory. The Advertising solution offers multiple cost
models (cost-per-click, cost-per-impression and cost-per-action basis), works cross device (computer, tablet
and mobile) and with every advertising format (text, image and video/rich media, mobile). Cxense
Advertising can be combined with other Cxense solutions for advanced promotion of digital subscriptions
and for mixing targeted advertising with relevant content (native advertising).
12
Cxense Analytics
Cxense Analytics provides businesses with powerful insight into their online audience. Through a real time
vizualization of how an audience interacts with a website, Cxense customers can make decisions on which
content to promote, which audience to target, how to grow their userbase and how to monetize their assets.
The easy-to-use interface fronts the sophisticated data collection and analysis from the Cxense
Extraordinary Insight Engine - our Big Data engine. Cxense customers monitor and customize dashboards to
suit their needs for traffic patterns, audience interests, demographics, content popularity and first party
data across a single site or a network of sites.
Cxense Content
Cxense Content is used for content optimization and personalization on selected sections of a site or on the
complete site. By providing a personalized and more relevant experience to each user, the publishers
achieve increasing site traffic, readership and dwell time.
Cxense Data Management Platform (DMP)
The Cxense DMP solution offers extended APIs for integration with first and third party applications with
the Extraordinary Insight Engine (EIE). The Cxense DMP captures structured and unstructured data in real
time across mobile, tablet and desktop devices and combines this with 1st and 3rd party data, such as age,
gender, subscriber information, etc. It analyses the combined data, develop individual user profiles and
useful audience segments, and put the data to work across our customer sites and multi-channel marketing
plans.
Cxense DMP can be set up to integrate with our customers CRM systems and enable highly
effective targeted marketing campaigns, understanding of digital subscription conversion
patterns as well as deep understanding of your individual customer needs7.
Cxense Search
Cxense Search is a cloud-based and easy to implement enterprise search application. It represents a very
affordable, top quality, low maintenance, enterprise search solution for online companies. It is easy to
integrate with other Cxense applications, and it offers unique personalization and advertising monetization
opportunities for the search results pages.
7 Scan the QR code with your QR app on the phone to see the Cxense DMP video or use this link: http://youtu.be/x0xO_d-T284
13
Privacy and Transparency
Cxense is fully aware that the type of technology and services the Company provides has the potential to
conflict with the interests of end users, if used inappropriately. Therefore, Cxense is committed to
safeguarding its services and only providing them in a way that improves the end-user experience, and takes
the end user’s privacy fully into account. This is conducted in collaboration with Cxense customers, the data
owners.
Cxense has a clearly stated Privacy Policy and is required to conform to the European Union’s Data
Protection Directive (Directive 95/46/EC, which is also embodied in the US Safe Harbour Privacy Principles
of Notice, Choice, Onward Transfer, Security, Data Integrity, Access and Enforcement, and Safe Harbour
Policies).
Cxense regularly reviews its operations in order to be in compliance in view of this Directive.
Hosting and SaaS operations
Cxense delivers its software-as-a-service from scalable outsourced data centers in both USA and Europe.
The Cxense software solutions are based on distributed software architecture making them data center
agnostic – thus hosting capacity can be purchased choosing between several reputable providers at a
market price. With the Emediate acquisition, Cxense also got additional data centers hosting most of the
Emediate advertising business.
The PCAN business segment
Cxense has also helped establish several Publisher-Controlled Advertising Networks (PCANs). The PCANs
act as publisher-controlled broker between the advertisers and the publishers, distributing and sharing the
advertising revenues generated in the network with the publishers. Cxense is an advertising technology
provider to the PCANs and charges a fee based on the PCAN revenues, thus aligning the interest of Cxense
and our customers. In Spain, the Company has retained a 56% ownership interest, and because of its
majority ownership, this PCAN is consolidated into the Group accounts, and it is reported in the Cxense
PCAN business area.
14
Outlook
Online publishers and media companies continue to be the main customers targeted in the near term.
Publishers, our primarily target group, are showing increased interest in our value propositions and are
becoming aware of the consequences of data leakage. A survey conducted showed that as much as 78% of
the publishers had no idea about which and how many third-parties are accessing their data. Moving
forward, this represents a great opportunity for the company.
We see good results in EMEA, Japan and APAC, while new sales in Americas are unsatisfactory. We are
gaining strong momentum and feedback from the Asian market, we see more publishers in the region
recognizing our brand. To date, we have a strong pipeline in this region. We are in the midst of scaling our
business through partners and direct hires in the coming months, also stepping up on more marketing
activities with our existing customers as ambassadors to gain more outreach in this region. If successful, we
should expect revenue growth from now on in this region. Our OPEX is ramping up due to investments
made in R&D and Sales in Americas, but we expect these to pay off in the coming periods.
We are confident that our ‹‹land´n´expand›› strategy in Sales, combined with our data centric product suite,
are crucial for our success going forward. Approx. 30% of new sales were landed on prior Emediate
customer base. Thus acquisition of customer bases remains a growth opportunity for us.
During this quarter we did also launch our data management platform – Cxense DMP. This product is built
on our extensive knowledge from the Big Data field. Our unique real-time analytics capabilities, such as
semantic, collaborative and content analysis enable us to understand users’ interest and intent – far more
powerful indicators than just demographics. This product has received good reception in the market and is
expected to be a significant revenue contributor in the periods to come.
In the longer term, we also see opportunities in other business verticals for Cxense DMP, as companies seek
to improve customer understanding, analytics and communication. Most online companies are experiencing
significant growth on new devices and formats, mainly tablets and mobile smart phones. This requires
adaptation of their content and monetization methods. The Cxense solutions have cross-device support
(laptop, mobile tablet) and mobile growth represents a significant market opportunity for Cxense.
Our product suite addresses large and fast-growing markets. The global online advertising market is
estimated to be more than USD 100 billion in 2013, and is expected by leading industry groups to grow to
more than USD 200 billion by 20208. The global e-commerce market passed the USD 1,000 billion mark in
2013, and is growing about 20% per year. Industry analyst group, Gartner expects that Big Data will drive
USD 230 billion in IT spending through 20169. We see significant growth opportunities within these
markets for our EIE suite.
8 PwC and IAB. 9 http://techcrunch.com/2012/10/17/big-data-to-drive-232-billion-in-it-spending-through-2016/
15
Condensed Financial Report
Q2 2014 Group revenue for continued operations amounted to USD 4.1 million, an increase of USD 2.6
million over the same period last year (USD 1.5 million). The Cxense Group has two business segments:
Cxense Software-as-a-Service (SaaS) and Cxense Publisher Controlled Advertising Networks (PCAN). The
increase in group revenue is due to the steady growth in the number of external customers in the SaaS
Segment, the acquisition of Emediate in November 2014 and steady growth within the PCAN business
segment. The Q2 2014 revenue from the SaaS Segment was USD 3.4 million for external customers and
inter-segment revenue was USD 0.08 million. The SaaS segment revenues relates predominantly to sales of
recurring software licenses and some implementation services. Revenue from the PCAN segment was USD
0.8 million which comes from sale of online advertising
The Q2 2014 group cost of sales amounted to USD 1.1 million, compared to USD 0.65 in Q2 2013. The SaaS
Segment cost of sales for Q2 2014 was USD 0.65 million, while the PCAN segment cost of sales was USD 0.56
million. Cost of sales within the SaaS segment predominantly relates to the hosting of the software
applications used by our customers. Cost of sales within the PCAN segment relates to revenue share paid to
publishers providing their advertising space, as well as agency commission paid to advertising agencies. The
Q2 2014 gross profit for the SaaS segment amounted to USD 2,8 million and USD 0.19 million for the PCAN
segment. The Q2 2014 PCAN Segment gross margin for continuing operations was 25% compared to 11% in
Q2 2013. The increase is due to the gradual expiration of a publisher revenue share guarantee clause that
originates from the start-up of the continuing PCAN operations, as well as new higher margin products and
new participating publishers with lower revenue share.
The Q2 2014 employee benefit expenses were USD 4.0 million, compared to USD 2,0 million in Q2 2013. The
increase is attributable to the number of employees in the group rising to 120 full-time employees (FTE)
from 62 FTE at Q2 2013, and an increase in shared based payments from USD 49 thousand in Q2 2013 to
USD 214 thousand in Q2 2014.
The depreciation and amortization in Q2 2014 was USD 321 thousand, and at the same period last year was
USD 6 thousand. This increase in depreciation and amortization compared to Q2 2013 is attributable to the
acquisition of Emediate Group where the excess value was booked to the balance sheet and depreciated over
a five year period. Beyond the excess value and goodwill from the Emediate acquisition the group has
limited intangible assets. The large distributed cloud-based systems operated by Cxense are hosted on
platforms leased by large reputable hosting suppliers and thus do not lead to investments in fixed assets.
Cxense has decided to replace some of the leased hosting solutions with own installations in Q3 2014. The
group R&D costs are expensed.
Other operating expenses amounted to USD 3.8 million in Q2 2014 and USD 0.88 million Q2 2013. The
majority of the expenses related to marketing and external consulting (audit, legal and other).
16
In Q2 2014 USD 1.6 million out of the USD 3.8 million related to stock exchange listing costs. The listing
costs have been expensed including Value Added Tax of USD 212 thousand accrued, which may be reversed
on final approval from the tax authorities.
The Q2 2014 OPEX also includes a USD 200 thousand one-off related to a loss provision on one customer
account acquired with the Emediate transaction. See note 6 for details.
The Finance income in Q2 2014 was USD 0.05 million largely relating to interest earned on bank deposits
arising from the share issue proceeds raised in June. Finance income in Q2 2013 was USD 0.105. Finance
expenses, mostly relating to currency expenses, amounted to USD 0.071 million in 2014 and USD 0.012 in
Q2 2013.
Income tax expense for Q2 2014 was USD 0.03 million compared to USD (0.003) positive in 2013. The
income tax expense arises in the Cxense SaaS subsidiaries in USA, Japan and Australia that perform Sales &
Marketing and Research & Development activities for the parent company based on inter-company
agreements (with arm’s length pricing principles). The amortization of excess values from the Emediate
acquisition also had a Q2 2014 tax effect of USD 140 thousand. In both quarters, the tax expenses are
estimates only, with full reviews only performed at year-end.
The group net loss from continuing operations amounted to USD 5.1 million in Q2 2014, compared to USD
1.9 million in Q2 2013. This represents a Q2 2014 loss of USD 1.5 per share, compared to a loss of USD 15
per share in Q2 2013. There was conducted a 1/200 share split in Q2 2014. See note 7 for details.
The net loss attributable to discontinued operations for Q2 2014 amounted to USD 0 million, compared to
USD 0.11 million for Q2 2013. Full details of the sale of the PCAN subsidiary are outlined in Note 4 to the
accounts.
Total assets at the end of Q2 2014 amounted to USD 24.8 million compared to USD 8.8 million at Q2 2013.
The increase is predominantly due to the increase in goodwill, intangible assets as a result of the Emediate
acquisition and an increase in cash and cash equivalents relating to the June 2014 share issues. The Q2 2014
cash position amounted to USD 11.2 million compared to USD 5.8 million at the end of Q2 2013. Trade
receivables stood at USD 2.2 million (48 days of inventory10) at the end of Q2 2014, compared to USD 1.7
million (61 days) at the end of Q2 2013. The increase in Q2 2014 receivables is due to the growth in external
customers billings in the SaaS Cxense and the PCAN segment.
Total current liabilities at the end of Q2 2014 were USD 6.6 million compared to USD 3.8 million at Q2 2013.
The increase is largely due to increased trade payables, accrued expenses related to the listing process,
prepayments from customers and employee-related payables.
Net cash flow used in operating activities was USD 2.2 million in Q2 2014, compared to USD 2.3 million in
Q2 2013.
10 Days = Receivables / Quarterly revenues * 90 days
17
Consolidated Income Statement (unaudited)
USD 1,000 Note
Q2 ended
30 June 2014
Q2 ended
30 June 2013 YTD 2014 YTD 2013 2013
Continuing operations:
Revenue 3, 4 4 114 1 500 8 287 2 689 7 612
Operating expense
Cost of goods sold 3,4 1 128 650 2 208 1 211 2 728
Employee benefit expense 5 4 018 1 955 7 219 3 832 8 814
Depreciation & Amortisation expense 321 6 634 9 227
Other operating expense 6 3 762 875 5 507 1 604 4 209
Total operating expense 9 229 3 486 15 567 6 656 15 978
Net operating income/(loss) (5 115) (1 986) (7 280) (3 966) (8 366)
Financial income and expense
Finance income 50 105 76 182 367
Finance expense (71) (12) (80) (28) (179)
Net financial income/(expense) (21) 93 (4) 155 188
Net income/(loss) before taxes (5 135) (1 893) (7 284) (3 812) (8 178)
Income tax expense (29) 3 (93) 18 3
Net income/(loss) for the period from continuing
operations (5 106) (1 897) (7 191) (3 829) (8 163)
Discontinued operations
Net income/(loss) for the period from discontinuing
operations 4 0 (11) 0 (167) (24)
Total net income/(loss) for the period (5 106) (1 907) (7 191) (3 996) (8 187)
Net income/(loss) attributable to:
Owners of the Company (5 084) (1 846) (7 140) (3 844) (8 041)
Non-controlling interests (23) (61) (51) (152) (147)
Earnings per share:
Basic and diluted 7 0,0015 (0,15) 0,0021 (0,30) (0,60)
Statement of comprehensive income
Net income/(loss) for the period (5 106) (1 907) (7 191) (3 996) (8 187)
Other comprehensive income:
- Currency translation differences 502 23 159 97 562
Total comprehensive income/(loss) (4 605) (1 884) (7 032) (3 899) (7 625)
Total comprehensive income/(loss) attributable to:
Owners of the Company (4 582) (1 823) (6 981) (3 747) (7 478)
Non-controlling interests (23) (61) (51) (152) (147)
18
Consolidated Statement of Financial Position
USD 1,000 Note
As at 30 June
2014
As at 30 June
2013
As at 31 Dec
2013
Assets
Non-current assets
Goodwill 3 807 - 3 807
Deferred tax asset 11 18 36
Intangible assets 5 060 4 5 429
Office machinery, equipment,etc. 284 72 295
Other financial assets 65 13 20
Total non-current assets 9 228 107 9 586
Current assets
Trade receivables 8 2 216 1 685 3 000
Other short-term assets 9 2 123 449 1 870
Cash and cash equivalents 11 245 5 754 8 843
Total current assets 15 584 7 888 13 714
Assets classified as " held for sale" 787
Total assets 24 812 8 781 23 300
Equity and liabilities
Equity
Share capital 10 2 991 2 083 2 713
Own shares - (56)
Other paid in capital 22 075 7 891 22 914
Currency translation differences 923 298 764
Retained earnings (8 051) (4 987) (9 179)
Equity attributable to the holders of the Company 17 939 5 286 17 155
Non-controlling interest (323) (277) (272)
Total equity 17 616 5 008 16 883
Liabilities
Non-current liabilities
Deferred tax liabilities 581 - 654
Total non-current liabilities 581 - 654
Current liabilities
Trade payables 1 841 713 1 933
Current taxes 102 72 35
Other short-term liabilities 11 4 673 2 206 3 794
Total current liabilities 6 615 2 992 5 763
Liabilities related to assets "held for sale" 781
Total liabilities 7 196 3 773 6 417
Total equity and liabilities 24 812 8 781 23 300
19
Consolidated Statements of Changes in Equity
USD 1,000
Nominal
share
capital
Own
shares
Other paid
in capital
Currency
translation
diff
Retained
earnings
Attributable
to owners of
parent
company
Non
Controlling
interest
Total
equity
Total equity as at 1 January 2013 2 269 13 803 201 (6 453) 9 820 (125) 9 695
0 0
Profit for the period (3 844) (3 844) (152) (3 996)
Other comprehensive income 97 97 97
Total comprehensive income/(loss) for
the half year to 30 June 2013 0 0 0 97 (3 844) (3 747) (152) (3 899)
Reduction of paid in-capital (4 823) 4 823 0 0
Transaction costs 0 0
Share- based payments 41 41 41
Increase in share capital 0 0
Purhcase own shares 0
Currency effects from translation of equity (186) (1 129) 488 (828) 0 (829)
Total equity as at 30 June 2013 2 083 0 7 892 298 (4 987) 5 286 (277) (5 008)
USD 1,000
Nominal
share
capital
Own
shares
Other paid
in capital
Currency
translation
differences
Retained
earnings
Attributable to
owners of
parent
company
Non
Controlling
interest
Total
equity
Total equity as at 1 January 2014 2 713 (56) 22 913 764 (9 179) 17 154 (272) 16 882
Profit for the period (7 140) (7 140) (51) (7 191)
Other comprehensive income 159 159 159
Total comprehensive income/(loss) for 1H 2014 0 0 0 159 (7 140) (6 981) (51) (7 032)
Reduction of paid in-capital 0 0 0 0 0 0 0 0
Transaction costs 0 0 0 0 0 0 0 0
Share- based payments 0 0 210 0 0 210 0 210
Increase in share capital 292 0 7 299 0 0 7 591 0 7 591
Purhcase own shares 0 56 0 0 0 56 0 56
Reclassification of equity 0 0 (8 238) 0 8 238 0 0 0
Currency effects from translation of equity (14) 0 (109) 0 30 (91) 0 (91)
Total equity as at 30 June 2014 2 991 (0) 22 075 923 (8 051) 17 939 (323) 17 616
20
Consolidated Statement of Cash Flow
USD 1,000 Note
Q2 ended
30 June
2014
Q2 ended
30 June
2013 YTD 2014 YTD 2013
Year Ended
31 Dec 2013
Cash flow from operating activities
Profit / (loss) before income tax (including disposal group) (5 115) (1 904) (7 262) (3 979) 8 202
Adjustments:
Income tax payable
Share- based payments 6 140 4 214 49 199
Result from investment in associates 12
Depreciation and amortization 11 321 6 634 9 227
Impairment
Net interest expense
Currency translation effects (27) (353) 90 (741) (364)
Change in trade receivables 715 (453) 784 (477) 465
Change in trade payables 729 (256) (92) (265) (544)
Change in other accrual and non-current items 1 076 694 611 1 003 409
Net cash flow from / (used in) operating activities (2 162) (2 261) (5 022) (4 401) (7 810)
Cash flow from investing activities
Investment in furniture, fixtures and office machines 11 (46) (3) (62) (3) (62)
Investment in intangible assets 11 (4) (4)
Investment in associated companies 12 (73) (105)
Investment in subsidiary (1) 3 (9 809)
Sale of subsidiary (1) 4 (7) (7) 55
Net cash flow from / (used in) investing activities (120) (168) (9 817)
Cash flow from financing activities
Net proceeds from share issues 7 591 7 591 16 260
Proceeds from minority interest
Net cash flow from / (used in) financing activities 7 591 7 591 16 260
Net increase/ (decrease) in cash and cash equivalents 5 309 (2 268) 2 401 (4 408) (1 367)
Cash and cash equivalents at the beginning of the period 5 936 8 070 8 843 10 210 10 210
Cash and cash equivalents at the end of the period 11 245 5 802 11 245 5 802 8 843
(1) Cash effects are presented net of cash held by subsidiaries acquired, and cash held by subsidiary sold. Gross amounts are disclosed in note 4
(Discontinued Operations).
21
Notes to the Consolidated Financial Statements
Note 1 General information
Cxense ASA, which is the parent company of the Cxense group (the Group), is a Public limited liability
company incorporated and domiciled in Norway, with its corporate headquarters in Oslo. The Group is a
global technology company delivering innovative and intuitive products that help companies build unique
online experiences. Cxense ASA is listed at Oslo Stock Exchange (Axess list), and is traded under the ticker
“Cxense”.
The company’s Board of Directors approved the financial statements on August 25, 2014.
These financial statements have been subject to review by independent Cxense auditor, BDO AS.
Note 2 Basis of preparation and accounting policies
The principal accounting policies applied in the preparation of these consolidated financial statements are
set out below.
The quarterly report is prepared in accordance with IAS 34 Interim Financial Reporting and International
Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB)
and all interpretations from the Financial Reporting Interpretations Committee (IFRIC), which has been
endorsed by the EU commission for adoption within the EU. The quarterly report is prepared using the same
principles as those used for the 2013 annual report.
The quarterly report is unaudited.
The going concern assumption has been applied when preparing this interim financial report
The preparation of the consolidated interim financial statements in accordance with IFRS and applying the chosen accounting policies requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on a continuous basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. When preparing these consolidated interim financial statements, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty, were the same as those that applied to the consolidated financial statements as of the period ended 31 December 2013.
There has not been any changes or transactions with any related parties that significantly impact on the
Group’s financial position or result for the period.
22
Note 3 Segment information
Q2 ended 30 June 2014
USD 1,000 Cxense SaaS PCAN Eliminations Consolidated
Revenue
External customers 3 364 750 0 4 114
Inter-segment 78 0 (78) 0
Revenues total 3 442 750 (78) 4 114
Cost of goods sold 645 560 (78) 1 128
Gross profit 2 797 189 0 2 986
Employee benefit expense 3 861 157 0 4 018
Depreciation & Amortization expenses 321 2 0 321
Other operating expense 3 686 77 0 3 762
EBIT (5 070) (46) 0 (5 114)
Net finance income/(expense) (21) 0 0 (21)
Income tax income/(expense) 29 0 0 29
Net income/(loss) before continuing operation (5 062) (46) 0 (5 106)
Net income/(loss) for the period from discontinuing operations 0 0 0 0
Total net income/(loss) for the period (5 062) (46) 0 (5 106)
For management purpose the Group is organized into business units based on its product and services and has two reportable
segments:
- Cxense Saas, which sells software-as-a-service applications based on the Extraordinary Insight Engine™ (EIE™) for real-time
analysis of content, user context, and behaviour. The EIE is fully integrated by a range of applications (web analytics,
recommendations, search and targeted advertising), which are used by Cxense customers to improve their online businesses by
increasing advertising revenue, page views, readership and conversion. The business generated by Emediate is included in the Cxense
Saas segment below. Information regarding revenue and Net income/(loss) generated by Emediate after the acquisition is disclosed
in note 3.
- Publisher-Controlled Advertising Networks (PCANs) which sell online advertising on the sites of various publishers, and distribute
and share the advertising revenues generated in the network with publishers.
Segment performance is evaluated by the management based on operating profit or loss and is measured consistently with operating
profit in the financial statements. Transfer prices between operating segments are on an arm's length basis in a manner similar to
transactions with third parties.
Discontinued operations:
To be consistent with the presentation in the income statement and statement of financial position, the PCAN segment presented
below is exclusive to the discontinued operations. Furthermore, Cxense SaaS sale to the discontinued operation is presented as a
sale to external customers.
23
Revenue
External customers 6 866 1 422 0 8 287
Inter-segment 144 0 (144) 0
Revenues total 7 010 1 422 (144) 8 287
Cost of goods sold 1 290 1 062 (144) 2 208
Gross profit 5 720 359 0 6 080
Employee benefit expense 6 916 302 0 7 219
Depreciation & Amortization expenses 630 4 0 634
Other operating expense 5 347 160 0 5 507
EBIT (7 173) (107) 0 (7 280)
Net finance income/(expense) (4) 0 0 (4)
Income tax income/(expense) 93 0 0 93
Net income/(loss) before continuing operation (7 084) (107) 0 (7 191)
Net income/(loss) for the period from discontinuing operations 0 0 0 0
Total net income/(loss) for the period (7 084) (107) 0 (7 191)
Balance sheet information 30 June 2014
USD 1,000 Cxense SaaS PCAN
Eliminations
and unallocated Consolidated
Segment assets:
Non-current assets 9 135 31 65 9 228
Current assets
- Trade receivables 1 828 388 2 216
- Other short term assets 2 068 55 0 2 123
- Cash and cash equivalents 11 007 239 11 245
Total segment assets 24 038 712 65 24 812
Segment liabilities:
Non-current liabilities 581 0 0 581
Current liabilities 5 645 1 004 (34) 6 615
Total segment liabilities 6 226 1 004 (34) 7 196
24
Q2 ended 30 June 2013
USD 1,000 Cxense SaaS PCAN Eliminations Consolidated
Revenue
External customers 953 547 0 1 500
Inter-segment 40 0 (40) 0
Revenues total 993 547 (40) 1 500
Cost of goods sold 203 487 (40) 650
Gross profit 790 60 (0) 849
Employee benefit expense 1 832 124 0 1 955
Depreciation expenses 5 0 0 6
Other operating expense 802 73 0 875
EBIT (1 849) (137) (0) (1 986)
Net finance income/(expense) 95 (2) 0 93
Income tax income/(expense) (3) 0 0 (3)
Net income/(loss) before continuing operation (1 758) (139) (0) (1 897)
Net income/(loss) for the period from discontinuing operations 0 (11) (11)
Total net income/(loss) for the period (1 758) (149) (0) (1 907)
YTD 2013
USD 1,000 Cxense SaaS PCAN Eliminations Consolidated
Revenue
External customers 1 763 927 2 689
Inter-segment 70 (70) 0
Revenues total 1 833 927 (70) 2 689
Cost of sales 349 931 (70) 1 211
Gross profit 1 484 (5) (0) 1 479
Employee benefit expense 3 621 210 0 3 832
Depreciation expenses 8 1 0 9
Other operating expense 1 478 126 0 1 604
EBIT (3 624) (342) (0) (3 966)
Net finance income/(expense) 158 (3) 0 155
Income tax income/(expense) (18) 0 0 (18)
Net income/(loss) from continuing operation (3 484) (345) (0) (3 829)
Net income/(loss) for the period from discontinuing operations 0 (167) (167)
Total net income/(loss) for the period (3 484) (512) (0) (3 996)
25
Balance sheet information 30 June 2013
USD 1,000 Cxense SaaS PCAN
Eliminations and
unallocated Consolidated
Segment assets:
Non-current assets - - 107 107
Current assets
- Trade receivables 1 202 482 1 685
- Other short term assets 575 17 -143 449
- Cash and cash equivalents 5 586 167 5 754
- Assets classified as "held for sale" - 787 787
Total segment assets 7 364 1 454 -36 8 781
Segment liabilities:
Non-current liabilities - - - -
Current liabilities 2 063 962 -34 2 992
Liabilities related to assets "held for sale" - 781 - 781
Total segment liabilities 2 063 962 -34 3 773
Geographic information
Revenues from external customers: Q2 2014 Q2 2013 2 013
EMEA 3 356 3 696 7 568
Americas 435 387 984
Pacific 323 430 882
Total revenue from external customers 4 114 4 513 9 435
Information about major customers
The Company does not have single customers that generate 10% or more of the entity's total revenue.
The revenue information above is based on the location of the entity generating the revenue and includes sales generated by
discontinued operations. Revenues from discontinued operations is included and has solely been booked to the EMEA segment in
the table above. The acqusition of Emediate Group is included in the 2014 figures and end of year 2013 numbers.
26
Note 4 Discontinuing operations
Profit from the discontinued operations
USD 1,000 YTD 2013
Year Ended
December 2013
Revenue 1 982 1 982
Operating expenses 2 139 2 139
Net operating income/(loss) (156) (156)
Net finance (11) (11)
Income tax expense 0 0
Gain from sale of discontinued operation 0 143
Net income/(loss) for the period from discontinuing operations (167) (24)
(1) All of operating income in 2013 comes from the six months ending 30 June, since the subsidiary was sold
effective from 1 July 2013.
At the end of Q2 2013 Cxense negotiated an agreement to sell the PCAN subsidiary PPN AG to
Tamedia AG, the Swiss based media group. The transaction is effective as of July 1, 2013. PPN
AG is presented as discontinuing operations through out this report.
Tamedia AG has been the most significant publisher in the Publisher Controlled Advertising
Network alongside a number of other publishers in the Swiss market. Tamedia states that the
rationale for the transaction is to improve the control of PPN and to use PPN as part of their
strategy to develop an exclusive networked advertising offering for their online publications.
Tamedias intention is to continue to cooperate with the other existing publishers in PPN around
click-based performance advertising.
One hundred percent of the shares in PPN AG were sold for USD 103 thousand. Net assets from
PPN AG included in the consolidated accounts as of June 30, 2013 and presented as "held for sale" is USD 5 thousand. The final transaction values have subject to a separate audit of the PPN
AG accounts and now fully finalised. The sale resulted in a gain of USD 143 thousand.
27
Earnings per share:
Basic and diluted (0,013) (0,001)
Cash flow from discontinuing operations
USD 1,000 YTD 2013
Net cash flow from operating activities (88)
Net cash flow from investing activities 0
Net cash flow from financing activities 0
Net cash inflow/(outflow) (88)
USD 1,000 As at 30 June 2013
Assets
Intangible assets 2
Office machinery, equipment etc. 5
Trade receivables 666
Other short term assets 66
Cash and cash equivalents 49
Total assets 787
Liabilities
Trade payables 673
Other short term liabilities 108
Total liabilities 781
Net assets included from discontinued operations 5
(1) All of operating income in 2013 comes from the six months ending 30 June, since the subsidiary was sold
effective from 1 July 2013. Cash effects acquisition in 2012 and disposal are not included cash flow summary
above.
28
Q2 2014 Other operating expenses of USD 600 thousand includes a USD 200 thousand one-off receivable
loss provision related to an account that came with the Emediate acqusition.
Note 5 Employee benefit expense
Specification of employee expense
USD 1,000 Q2 2014 Q2 2013 YTD 2014 YTD 2013 2013
Payroll expense 3 082 1 768 5 757 3 477 7 502
Share-based payments 140 4 214 49 228
Social security tax 408 188 750 359 860
Pensions 127 47 231 105 273
Other personnel expense 262 115 267 159 270
Presented as part of discontinued operations 0 (167) 0 (318) (318)
Total employee benefit expense 4 018 1 955 7 219 3 832 8 814
Note 6 Other operating expense
Specification of other operating expense
USD 1,000 Q2 2014 Q2 2013 YTD 2014 YTD 2013 2 013
Audit, legal and other consulting fees 2 055 306 2 887 522 1 876
Office rental and related expenses 216 120 428 234 532
Marketing and representation 300 148 539 381 729
Travel expenses 590 243 867 390 906
Other operating expense 600 114 787 177 251
Presented as part of discontinued operations 0 (56) 0 (100) (100)
Total other operating expense 3 762 875 5 507 1 604 4 195
29
Note 7 Earnings per share
USD 1,000 Q2 2014 Q2 2013 YTD 2014 YTD 2013 2 013
Net income/(loss) for the year attributable to the parent
company (5 084) (1 846) (7 140) (3 844) (8 045)
Weighted average number of shares outstanding for
basic earnings per share (1) 3 334 377 12 630 3 328 389 12 630 13 305
Earnings per share
- Basic (0,0015) (0,15) (0,0021) (0,30) (0,60)
- Diluted (2) (0,0015) (0,15) (0,0021) (0,30) (0,60)
(1) A 1/200 share split was conducted
on the annual general meeting Aptil 2, 2014, in connection with the stock exchangelisting process. The split has only effect for
Q2 isolated and YTD 2014
(2) The Company has 216 300 potential dilutive shares from share options and subscription rights outstanding
Since the Group has a loss for the year, and since the potential
shares do not have a dilutive effect, they are not included in the calculation
30
YTD 2014 Impairment losses recognized on receivables includes a USD 200 thousand receivable loss
provision related to an account that came with the Emediate acqusition.
Note 8 Trade receivables
USD 1,000 YTD 2014 YTD 2013 2013
Trade receivables 2 825 2 371 3 300
Allowance for doubtful debts (609) (21) (300)
Presented as assets "held for sale" 0 (666) 0
Total trade receivables 2 216 1 685 3 000
Trade receivables are non-interest bearing and are generally on 30-day terms.
As at 30 June, the ageing analysis of trade receivables is as follows:
USD 1,000
Total
Neither past
due nor
impaired
<30
days
31-90
days >90 days
YTD 2014 2 825 1 807 191 575 298
31 Dec 2013 3 300 1 981 931 246 143
YTD 2013 2 371 1 438 657 225 51
Movements in allowance for doubtful debt:
USD 1,000 YTD 2014 YTD 2013 2013
Balance at the beginning of the year 300 30 30
Impairment losses recognized on receivables 414 32 300
Amounts written off during the year as uncollectible -112 (41) (30)
Amounts recovered during the year 0 0 0
Impairment losses reversed 7 0 0
Balance at the end of the year 609 21 300
Past due but not impaired
31
Note 9 Other short-term assets
USD 1,000 YTD 2014 YTD 2013 2013
Accrued income 435 15 6
Prepayments 149 50 141
Receivable on authorities and government grants 254 349 293
Other short-term receivables (1) 1 284 34 1 447
Other short term assets 2 123 449 1 887
(1) Included Escrow account related to acqusition of Emediate Group
32
Note 10 Share capital and shareholder information
Number of
shares
Share capital
NOK Share capital USD
Balance at June 30 2013 2 526 000 12 630 000 2 083
Issued during the year 796 400 3 982 000 444
Balance at December 31 2013 3 322 400 16 612 000 2 713
Issued during the year 359 317 1 796 585 278
Balance as at June 30 2014 3 681 717 18 408 585 2 991
Allocation of subsriptions rights:
20 largest shareholders registered in VPS as of June 30 2014:
Shareholder Number of shares % Share
cX Vest Ltd 536 502 14,57
Polaris Media ASA 476 462 12,94
ASAH AS 394 092 10,70
Simpsons Financial Ltd 163 800 4,45
Storebrand 129 902 3,53
MP Pensjon PK 120 000 3,26
Portia AS 104 000 2,82
Home Capital AS 103 076 2,80
Follo Eiendom AS 99 770 2,71
Viola AS 83 138 2,26
GBBT AS 81 800 2,22
Hiroshi Mikitani 80 000 2,17
North Murray AS 80 000 2,17
Stein H. Danielsen 75 400 2,05
Aleksander Øhrn 73 000 1,98
Cressida AS 70 076 1,90
M&L Pritchard Holdin 65 400 1,78
Rams AS 40 000 1,09
Storebrand Norge JP Morgan Europe LTD, 39 400 1,07
Pensjonsordningen for Apotekvirksomhet 38 461 1,04
Total top 20 shareholders 2 854 279 77,51
Others 827 438 22,49
Total 3 681 717 100,00
An updated list of the 20 largest shareholders can be found under the
Investor Relations section on the Cxense website (www.cxense.com)
On June 10 2014, the Board pursuant to an authorization from the Annual General Meeting dated April 2 2014, resolved a private placement of a
total of 326,923 new shares, at a subscription price of NOK 130 per share. On the same date, the Board resolved to accomplish a share issue
towards the employees and Board of the Company at the same terms and conditions as the Private Placement resolved by the Board on June 10
2014. A total of 359, 217 new shares was issued in the private placement and the share issue towards the employees, each having a par value of
NOK 5, for a subscription price per share of NOK 130.
Warrants:
In connection with the Private Placement in the Company the Board on June 10 2014 decided to issue two warrants for every one share subscribed
for and allocated in the Private Placement. The first warrant ("Warrant A") would have a term expiring on July 4 2015 and an exercise price per
share of NOK 140. The second warrant ("Warrant B") would have a term expiring on July 4 2016 and an exercise price per share of NOK 150. As of
June 30 2014, there is 718,434 outstading warrants to shareholders in Cxense ASA
Issues of shares:
As of June 30 2014, there is a 216,300 outstanding share option to employees, directors and board members of Cxense ASA.
33
Note 11 Other short-term liabilities
USD 1,000 YTD 2014 YTD 2013 2013
Public duties payables 350 308 331
Prepayments from customers 162 660 170
Accrued expenses (1) 2 062 354 1 056
Salary-related provisions 586 496 805
Other current liabilities 1 512 388 1 432
Total other short-term liabilities 4 673 2 206 3 794
(1) IPO related expenses of MUSD 1,61 included in accrued expenses
Note 12 Related Party Disclosures
USD 1,000
Purchase of services from Description of servicesYTD
2014
YTD
2013 2 013
Advokatfirma Ræder (1) Legal services 600 0 299
Theoline AS (2) Consulting services 31 31 45
(1) The Chairman of the Board in Cxense ASA is a partner in Advokatfirma Ræder.
(2) Stig Eide Sivertsen, Board member, is the owner of Theoline AS
USD 1,000
Balances with related parties Balance typeYTD
2014
YTD
2013 2 013
Advokatfirma Ræder Other Short Term Liabilties 600 94 239
Theoline AS Trade payables 0 0 0
all figures incl. VAT
Balances and transactions between the Company and its subsidiaries, which are related parties
to the Company, have been eliminated on consolidation and are not disclosed in this note. The
group does not have other transactions with related parties, except for remuneration to
management as disclosed below:
34
Note 13 Subsidiaries
Name of subsidiary
Place of
incorporation
Portion of
ownership and
voting power
Cxense Ltd. Cxense SaaS Australia 100 %
Cxense Co., Ltd. Cxense SaaS Japan 100 %
Cxense, Inc. Cxense SaaS USA 100 %
Cxense Inc. NV Holdings Cxense SaaS USA 100 %
Emediate Aps Cxense SaaS Copenhagen 100 %
Emseas Teknik AB (Emediate Sweden) Cxense SaaS Sweden 100 %
Emediate Norway NUF Cxense SaaS Norway 100 %
Premium Audience Network, s.l.u. PCAN Spain 56 %
Principal activity
according to segment
On 1st November 2013 100% of shares in Emediate Aps and its subsidiaries were purchased.
Note 14 Contingent liabilities
Cxense Group has an ongoing financial dispute with advisors with
regards to a certain part of the fee related to the stock exchange listing of Cxense
The dispute is not deemed as material for the Group.
Note 15 Events after the reporting period
- Cxense ASA listed on Oslo Axess on July 1, 2014
- For further stock exchange notices please see www.cxense.com
The Group has not been involved in any legal or financial disputes in Q2 2014 or Q2 2013, where an
adverse outcome is considered more likely than remote, except for the following case:
Since June 30, 2014 and until the date of these financial statements, the Board of directors is not aware
of any matter or circumstance not otherwise dealt with in this report, that has significantly or may
significantly affect the operations of the Consolidated Entity with the exception of the following:
35
Responsibility Statement
We confirm to the best of our knowledge that the condensed set of financial statements
for the period January 1 to June 30, 2014 has been prepared in accordance with IAS 34 -
Interim Financial Reporting, and gives a true and fair view of the Cxense Group's assets,
liabilities, financial position and result for the period. We also confirm to the best of our
knowledge that the financial review includes a fair review of important events that have
occurred during the first six months of the financial year and their impact on the financial
statements, any major related parties transactions, and a description of the principal risks
and uncertainties for the remaining six months of the financial year
The Board of Directors of Cxense ASA, Oslo, Monday 25 August 2014
Morten Opstad
Chairman
Stig Eide Sivertsen
Board Member
Grete Sønsteby
Board Member
Kjersti Wiklund
Board Member
Per Olav Monseth
Board Member
Raman Bhatnagar
CEO
