CXENSE ASA ANNOUNCES SECOND QUARTER AND FIRST HALF RESULTS

Report this content

OSLO, NORWAY – AUGUST 24, 2017 - CXENSE ASA TODAY REPORTED FINANCIAL RESULTS FOR THE SECOND QUARTER AND FIRST HALF ENDING 30 JUNE 2017.

Highlights:

* Core SaaS business continues to grow, DMP & Personalization up 28% y/y in Q2 2017

* Group revenue of USD 5.7 million, down 10% y/y due to churn from non-core business

* EBITDA loss widened to USD 4.6 million from USD 2.9 million in Q1 2017 on growth investments and one-off charges

* New board and management has decided to sharpen focus on DMP with Intelligent Personalization to accelerate growth

* Divesting non-core business

* Rightsizing organization and reducing cost base to shorten time to break even

Considering to strengthen balance sheet to finance DMP & Personalization growth strategy:

* In order to finance the operations to break even, Cxense considers to raise new equity in a private placement of new shares with target gross proceeds of NOK 40 million (corresponding to approximately USD 5 million)

* Cxense has secured a NOK 40 million guarantee commitment at a price of NOK 40.00 per share from certain existing shareholders for such private placement

* The private placement is considered to be executed soon, with a guaranteed price of NOK 40.00 per share, but where the final price will be set through a bookbuilding process.

* There is currently 7,958,012 shares outstanding.

CEO comment:

“We help companies to successfully use their data in real-time to increase revenue and this is reflected in continued growth for our core DMP and personalization offering. Still, as a group we have lagged our revenue targets in 2017 due to high churn on non-core solutions and lower-than-expected sales from the new North America sales team. In order to drive growth for our core offering, the new board and management have decided to sharpen focus on our core offering and organization, while divesting non-core operations. This will provide us with a clearer market positioning and increase the growth potential for our core business. It will also shorten our time to break-even and lower capital demand. I believe Cxense’s core business has exciting times ahead.”

said Ståle Bjørnstad, Cxense CEO.

Material: The Q2 2017 report and presentation are attached to this notice and can also be found under the following link: https://www.cxense.com/investors/financial-reports

Webcast: Cxense ASA will present its Q2 2017 results at 08:30 am CET. The presentation will take place at the Felix Conference Center, Bryggetorget 3, Oslo, Norway. A live webcast will be available at: http://webtv.hegnar.no/presentation.php?webcastId=58636023

About Cxense:

Cxense helps hundreds of leading publishers and marketers across the globe transform their raw data into their most valuable resource. Cxense's leading Data Management Platform (DMP) with Intelligent Personalization, give companies unprecedented insight about their individual customers, and enables them to action this insight real-time in all marketing and sales channels. Benefits include increased digital revenue and user loyalty. Cxense works with brands such as Aeon, Wall Street Journal, Grupo Clarin, NBC Universal, Aller and many more. Cxense is headquartered in Norway with offices worldwide and the company is listed on the Oslo Stock Exchange with the ticker 'CXENSE.' For more information: www.cxense.com

Investor Relations Contact:

Jørgen Loeng, Chief Financial Officer

Email: ir@cxense.com

Mobile: +47 906 60 062