blinkx PLC Announces Results for the Year Ended 31 March 2009
CAMBRIDGE, England and SAN FRANCISCO, May 19 --
- blinkx Reports Record Results for the Year, Revenue Increases 113% Year
on Year*
- blinkx's Interim Period Conference Call Will be Webcast Live at
http://www.blinkx.com on 19 May 2009, at 9:30 a.m. BST/4:30 a.m. EDT/1:30
a.m. PDT.
blinkx PLC (BLNX.L), the world's largest video search engine,
today reported financial results for the year ended 31 March 2009.
Financial Highlights
Period from 23
April
(incorporation)
to 31
Year to 31
March 2009 March 2008
(unaudited) (unaudited)
$'000 $'000
Revenues 13,933 6,545
Gross profit 9,831 4,903
Loss from operations (10,457) (18,296)
Loss for the year (8,871) (16,063)
Loss per share (cents) cents cents
Basic (3.19) (6.30)
Cash used by operating activities (9,180) (12,788)
Cash balance as at 31 March 21,366 39,436
Highlights:
- Revenue more than doubled from FY2008* to almost $14m
- Second half revenue grew 108% year on year
- Top and bottom line performance ahead of analyst consensus
- Gross profits up over 100% to $9.8m from FY2008*
- DSO improved to 83 days from 95 days FY2008
- Unique visitors up to 88 million from 56 million in March
2008, and page views up to 835 million from 584 million in March 2008
(source: comScore)
- Daily Video Search run rate of over 8,400,000 per day in
March 2009
- Content hours increased 35% year on year, from 26 million
hours to 35 million hours
- 175 new content partners added in the year, bringing total
to over 530 media organizations, including Fox, CBS and Time Inc.
- Partnership with Miniweb brings blinkx directly onto TVs
- Addition of top-tier syndication partners, including ITN,
MSN UK and Rambler
- New versions released of three strategic technology
offerings:
- blinkx Remote
- blinkx Beat
- blinkx BBTV (Broadband Television)
- blinkx maintained strong, consistent average effective CPM
in FY09, running campaigns for leading brands, including Shell,
Guinness and Honda
- Ranked in top 20 video sites by Comscore Video Metrix and
Nielsen
* FY08 contains 49 weeks of trading
Commenting on the preliminary results Suranga Chandratillake, founder and
CEO of blinkx, said: "We are pleased to report a very strong performance this
year, with revenue increasing by 113%, year on year, despite the difficult
macro-economic environment. While general industry CPMs (Cost Per Mille) have
suffered in the worsening economy, blinkx's CPM rates have continued to
retain their high value through the year because our unique targeting
technology enables our customers to derive guaranteed and controllable Return
On Investment (ROI) from their advertising spend. While the current macro
market conditions mean we are maintaining a suitably cautious and
conservative stance, the success of our targeted advertising products in 2009
makes us confident of continued strong growth into 2010.
In the last 12 months, we have continued to make significant achievements
on the technology and business development fronts - introducing three new
products, and signing partnerships with leaders in the technology and
entertainment industries, including Fox, CBS and Microsoft. Enhancements to
our site have been extremely well-received by audiences, resulting in an
increase in traffic of almost 53% between March 2008 and March 2009, and
attracting top-tier brand advertisers, such as Honda, Guinness and Shell."
Mr. Chandratillake continued: "We see 2009 as a year of tremendous
potential: the continued success of the ROI-driving Cost Per Action (CPA)
model of advertising, coupled with the increasing number of top tier media
companies and broadcasters who are distributing their content on the
Internet, have come at a time when demand for rich media online is at an all
time high, and our viewership is growing faster than ever before. Moreover,
packaged goods manufacturers, pharmaceutical companies and telecommunications
firms, three of the largest historical spenders on traditional media, are
moving their advertising budgets online at a record pace, according to recent
studies by Nielsen (The Global Online Media Landscape, April 2009).
Mr. Chandratillake concluded: "These factors, combined with the increased
availability of high quality online video, have laid the foundation for us to
solidify our position as the premier destination for online TV and video. We
will continue our strong investment in both our brand and technology to
capitalize on this 'once-in-a- generation' opportunity."
Financial Highlights
For the financial year ended 31 March 2009 (FY2009), revenues totaled
$13.9 million increasing 113% over the $6.5 million in revenues reported for
the period from 23 April (incorporation) through 31 March 2008 (FY2008) which
contained 49 weeks of trading. Gross profit for FY2009 was $9.8 million
representing a gross margin of 71%. Gross profit for FY2008 was $4.9 million,
representing a gross margin of 75%. Net loss for the FY2009 was $8.9 million.
Net loss for FY2008 was $16.1 million. Loss per share for FY2009 was 3.19
cents and for FY2008 was 6.30 cents. blinkx's cash balance at 31 March 2009
was $21.4 million. (FY2008: $39.4 million)
Customer and Business Developments
Continued strong demand for blinkx's unique, patented search technology
has advanced blinkx's position as the gold standard in video search this
period. High-profile new syndication customers included Microsoft (MSN UK)
and Markit, a financial information services company, whose clients include
some of the world's leading financial institutions.
In addition to maintaining its video search stronghold on computers,
blinkx made the leap from PC to TV this period, signing an agreement with
Interactive Service Provider, Miniweb, to power search, recommendations and
ad targeting on Miniweb's pioneering interactive TV platform. Recent research
from In-Stat analysts forecasts that, in five years, there will be 24 million
U.S. broadband households viewing Web-to-TV content ("Web-To-TV Video Changes
Everything", April 2009). This fusion of broadcast and broadband TV will give
audiences access to an incredibly rich and diverse universe of media, and as
the leader in video search, blinkx is ideally suited to help viewers navigate
this universe. Miniweb, the recipient of Best Interactive Service/Application
award at IPTV World 2009, selected blinkx for its unrivalled functionality,
which will allow audiences to search and discover content seamlessly from
both broadcast television and internet video, including relevant portions of
blinkx's index of video content, through suitable Miniweb-enabled devices.
In the past six months, blinkx has expanded its roster of premier media
partners to over 530, including the addition of programming from industry
leaders such as Fox, CBS and Time Inc. blinkx's index of fully searchable
online video has now surpassed 35 million hours, increasing 35% in the last
12 months, from 26 million hours.
blinkx AdHoc, the first contextual advertising platform for online TV,
has experienced significant growth since its launch in June 2007, powering
advertising campaigns for top consumer brands, including Guinness and Sony,
as well as Verizon, in an example of the telecommunications industry's
shifting focus to online advertising strategies. In addition, blinkx unveiled
a new video advertising unit - the Unroll - an entirely unique and immersive
branding experience that engages users with a brand continuously throughout a
video. The unit has been successfully deployed by MediaCom for its client,
Shell Oil, among others.
Product and Technology Developments
During FY2009 blinkx continued to lead the industry with unique and
disruptive product launches, introducing three new offerings based on its
patented technology. Highlights included the release of blinkx Beat, blinkx
Remote in August 2008, and blinkx Broadband Television (BBTV) in April 2008.
blinkx Beat is a downloadable application that delivers an endless
channel of the most engaging, handpicked, bite-sized videos from around the
Web, which has enjoyed tremendous success among blinkx users. blinkx Beat now
garners over 2 million video views per day, a figure that has doubled each
week since January 2009.
blinkx Remote is an advanced tool for finding full-length TV episodes on
the Web. As the volume of long-form television content available on the
Internet has exploded, consumers have benefited tremendously from increased
access to and availability of their favorite TV shows, but the proliferation
and fragmentation of this content across multiple sites present a navigation
challenge. blinkx Remote aggregates information and access to full-length
television programs on the Internet, offering audiences a single gateway for
finding TV shows by channel, season, episode, title or genre. blinkx Remote
has enjoyed tremendous success among users, with audience numbers growing an
average of 83% every month since launch.
blinkx BBTV is a significant advance in online television that leverages
blinkx's patented speech and visual recognition technology to simultaneously
deliver a high-quality television experience over the Internet, and link it
to the universe of information on the Web, adding dimension and context to
the viewer's experience.
Company Developments
During the period blinkx experienced dramatic expansion in its user base
to 88 million unique visitors in March 2009 from 56 million unique visitors
in March 2008 (source: comScore), and was recognized by third-party research
and reporting firms as one of the fastest growing websites on the Internet.
According to Compete.com, blinkx is the fastest growing video site among the
top 20 video competitors in the U.S.
http://www.blinkx.com is consistently ranked in the top 20 video sites by
both Comscore Video Metrix and Nielsen.
About blinkx PLC
blinkx (London AIM: BLNX) is the world's most comprehensive video search
engine. Today, blinkx has indexed more than 35 million hours of audio, video,
viral and TV content, and made it fully searchable and available on demand.
blinkx's founders set out to solve a significant challenge - as TV and
user-generated content on the Web explode, keyword-based search technologies
only scratch the surface. blinkx's patented search technologies listen to -
and even see - the Web, helping users enjoy a breadth and accuracy of search
results not available elsewhere. In addition, blinkx powers the video search
for many of the world's most frequented sites. blinkx is based in San
Francisco and London. More information is available at http://www.blinkx.com
BLINKX PLC
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Results for the year to 31 March 2009
(in thousands, except per share amounts)
Period from 23
Year ended April 2007
31 March (incorporation)
2009 to 31March 2008
(unaudited) (unaudited)
$'000 $'000
Revenue: continuing operations 13,933 6,545
Cost of revenue (4,102) (1,642)
Gross profit 9,831 4,903
Operating expenses
Research and development 4,526 3,171
Sales and marketing 13,952 7,273
Administrative expenses 1,810 1,300
Demerger / IPO costs - 11,455
Loss from operations (10,457) (18,296)
Investment revenues 1,127 1,983
Loss before taxation (9,330) (16,313)
Tax 459 250
Loss for the year attributable to
equity holders of the parent (8,871) (16,063)
Loss per share (cents) cents cents
Basic and diluted (3.19) (6.30)
BLINKX PLC
CONSOLIDATED BALANCE SHEET (UNAUDITED)
As at 31 March 2009
(in thousands)
As at 31 As at 31
March 2009 March 2008
(unaudited) (unaudited)
$'000 $'000
ASSETS
Non-current assets
Intangibles assets 1,862 5
Property, plant and equipment 486 447
Other receivables 426 -
2,774 452
Current assets
Trade receivables 3,181 1,816
Other receivables 1,827 1,585
Cash and cash equivalents 21,366 39,436
26,374 42,837
Total assets 29,148 43,289
LIABILITIES
Current liabilities
Trade and other payables (4,520) (2,022)
(4,520) (2,022)
Non current liabilities
Other payables (426) -
Total Liabilities (4,946) (2,022)
Net assets 24,202 41,267
Shareholders' equity
Share capital 5,487 5,483
Share premium account 49,126 49,126
Stock compensation reserve 7,863 6,429
Currency translation reserve (9,116) 516
Merger reserve (4,323) (4,323)
Retained earnings (24,835) (15,964)
Total equity 24,202 41,267
BLINKX PLC
CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)
Results for year to 31 March 2009
(in thousands)
Period from 23
April 2007
12 months (incorporation)
ended 31 to 31 March
March 2009 2008
(unaudited) (unaudited)
$'000 $'000
CASH FLOWS FROM OPERATING ACTIVITIES
Loss from operations (10,457) (18,296)
Adjustments for:
Depreciation and amortisation 308 263
Share based payments 1,434 6,501
Foreign exchange gains (313) (123)
Operating cash flows before movements in working
capital (9,028) (11,655)
Changes in operating assets and liabilities:
Increase in trade and other receivables (3,333) (3,155)
Increase in trade and other payables 2,924 2,022
Net cash used by operations (9,437) (12,788)
Income taxes received 257 -
Net cash used by operating activities (9,180) (12,788)
CASH FLOWS FROM INVESTMENT ACTIVITIES
Interest received 1,127 1,983
Purchase of property, plant and equipment (702) (715)
Net cash generated by investment activities 425 1,268
CASHFLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of shares 4 50,384
Net cash generated by financing activities 4 50,384
Net (decrease) / increase in cash
and cash equivalents (8,751) 38,864
Beginning cash and cash equivalents 39,436 -
Effect of foreign exchange on cash
and cash equivalents (9,319) 572
Ending cash and cash equivalents 21,366 39,436
BLINKX PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
For the year ended 31 March 2009
(in thousands)
Ordinary Redeemable Share Stock
share share premium compensation
capital capital account reserve Sub-total
$'000 $'000 $'000 $'000 $'000
Balance as at
23 April 2007
(incorporation) - - - - -
Issue of shares 5,483 100 49,126 - 54,709
Capital contribution - - - - -
Shares redeemed - (100) - - (100)
Period losses - - - - -
Exchange differences
on translation - - - - -
Share based payments - - - 6,429 6,429
Balance as at
1 April 2008 5,483 - 49,126 6,429 61,038
Issue of shares 4 - - - 4
Current year losses - - - - -
Exchange differences
on translation - - - - -
Share based payments - - - 1,434 1,434
Balance as at
31 March 2009 5,487 - 49,126 7,863 62,476
Currency
Sub-total translation Merger Retained
forwarded reserve reserve earnings Total
$'000 $'000 $'000 $'000 $'000
Balance as at
23 April 2007
(incorporation) - - - - -
Issue of shares 54,709 - (4,323) - 50,386
Capital contribution - - - 99 99
Shares redeemed (100) - - - (100)
Period losses - - - (16,063) (16,063)
Exchange differences
on translation - 516 - - 516
Share based payments 6,429 - - - 6,429
Balance as at
1 April 2008 61,038 516 (4,323) (15,964) 41,267
Issue of shares 4 - - - 4
Current year losses - - - (8,871) (8,871)
Exchange differences
on translation - (9,632) - - (9,632)
Share based payments 1,434 - - - 1,434
Balance as at
31 March 2009 62,476 (9,116) (4,323) (24,835) 24,202
BLINKX PLC
NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
1. Basis of preparation
The financial information set out in the announcement does not constitute
the Company's statutory accounts for the year ended 31 March 2009, within the
meaning of Section 240 of the Companies Act 1985. The audit of the statutory
accounts for the year ended 31 March 2009 is not yet complete. These accounts
will be finalized on the basis of the financial information presented by the
directors in this preliminary announcement and will be delivered to the
Registrar of Companies following the Company's annual general meeting.
Statutory financial statements for the period ended 31 March 2008 are
available on the Group's website http://www.blinkx.com and have been filed
with the Registrar of Companies. The Group's auditors issued a report on
those financial statements that was unqualified and did not contain a
statement under section 237(2) or section 237(3) of the Companies Act 1985.
The Group has considerable financial resources and the directors believe
that the Group is well placed to manage its business risks successfully
despite the current uncertain economic outlook.
After making enquiries, the directors have a reasonable expectation that
the Company and the Group have adequate resources to continue in operational
existence for the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing the annual report and accounts.
2. Share-based payments
Included within operating expenses are the following amounts in respect
of share based payments:
Period from 23
12 months April 2007
ended 31 (incorporation)
March 2009 to 31March 2008
(unaudited) (unaudited)
$'000 $'000
Sales and marketing 564 2,488
Research and development 768 3,567
Administrative expenses 102 593
1,434 6,648
3. Taxation
A tax credit of $459,000 (period from 23 April 2007 to 31 March 2008:
$250,000) is reflected in the income statement in relation to research and
development tax credits.
4. Loss per share
The loss per ordinary share and diluted loss per share are equal because
share options are only included in the calculation of diluted earnings per
share if their issue would decrease the net earnings per share or increase
the net loss per share. The calculation is based on information in the table
shown below.
Period from 23
12 months April 2007
ended 31 (incorporation)
March 2009 to 31March 2008
(unaudited) (unaudited)
$'000 $'000
Earnings
Loss (used in calculation of
basic and diluted loss per share) (8,871) (16,063)
Number of shares
Weighted average number of shares
for the purpose of basic and
diluted earnings per share 278,075,720 254,952,682
5. Share capital
The issuance of shares in the year relates to the exercise of
employee share options.
For further information please contact:
Financial Media Contacts:
Edward Bridges/Charles Palmer/ Haya Chelhot,
Financial Dynamics,
Tel: (UK) +44(0)20-7831-3113;
Analyst and Investor Contact,
Jonathan Spira, CFO,
blinkx PLC,
Tel: (US) +1-415-615-1513.
