Broadpeak publishes its first-half 2022 revenue

Broadpeak publishes its first-half 2022 revenue July 29, 2022

Business grows 39% to over 16m

100% organic performance fully consistent with Group Guidance

Confirmation of all financial targets for 2022 and beyond

Cesson-S vign (France), 27 July 2022 BROADPEAK (ISIN: FR001400AJZ7 - Ticker: ALBPK), a leading provider of video streaming software solutions, is publishing its revenue for first-half 2022.

Commenting, Jacques Le Mancq, CEO of Broadpeak, said: For this first earnings report since the IPO on June 13, Broadpeak has posted a strong performance. In a structurally buoyant environment for video streaming, we maintained our powerful growth momentum in the first six months of the year, with revenue up 39%. The period was marked by significant progress on the execution of our strategy. In addition to the first successful steps on Euronext Growth, which enabled us to raise 20m, in the last few months we have extended our international footprint, accelerated our commercial development and strengthened our technological lead. We approach the second half of the year with great confidence and are confirming all of our financial targets, notably an increase of around 25% in revenue this year.

Broadpeak reported revenue of 16.05m in first-half 2022, up 39%. The performance over the period reflects the traditional seasonality of the Group's sales, which are always stronger in the second half of the year as customers, and telecom operators in particular, allocate their purchasing budgets at the end of their financial year. In 2021, Broadpeak generated more than 60% of its revenue in the second half of the year.

The strong growth in activity in the first six months of the year is all the more remarkable given that it was fully achieved through organic growth. Broadpeak reported a positive currency effect of 0.86 million (at the average rate recorded on 2021 first-half sales), stemming from the appreciation of the US dollar against the euro. At constant exchange rates, revenue was up 32% in the first six months.

Growth in all regions, led by the Americas

Broadpeak strengthened its positions in all its geographical regions in first-half 2022. Nearly 90% of total revenue was generated outside France, reflecting the Group's international reach in more than 50 countries.

The Americas region (American continent) posted the strongest growth, at 49%, making it Broadpeak's largest market, accounting for 48% of total H1 revenue.

In EMEA (Europe, Middle East & Africa), revenue growth remained substantial ( 33%) on extremely strong business activity in most countries.

The company reported growth of 24% in APAC (Asia Pacific) against demanding comparatives after a particularly dynamic H1 2021.

Solid momentum combining new business and growth in the existing customer base

In sales terms, Broadpeak increased revenue with existing customers and also broadened its portfolio, having added nine new customers since the beginning of the year.

The sales gains in the first half of the year testify to the growing success of Broadpeak's multicast ABR offering (under the nanoCDN brand). This technology, which makes it possible to better absorb peak internet traffic in the event of high user numbers, has been selected by the TIM operator in Italy for live sports events, and by the Bhimavaran Community Network (BCN) platform in India for live videos.

The Group has also signed new contracts with Magenta Telekom in Austria (Cloud PVR solution) and Tata Play in India, while Broadstar in the US has become a new customer of the PeakVu.TV platform.

Broadpeak also boosted its presence at major international meetings in the sector in the first half of the year, bolstered by the post-COVID resumption of in-person events. Broadpeak took part in nearly 20 events over the period--, including the Mobile World Congress in Barcelona, the NAB Show in Las Vegas and CABSAT in Dubai.

The company took advantage of these shows to initiate discussions with new prospects (operators, OTT platforms, new media) that will fuel order intakes in the coming months.

Further progress on innovation

Regarding technology, the first half of the year was marked by the successful launch of broadpeak.io, a software as a service (SaaS) cloud platform. Launched on January 18, the new service featuring turnkey applications has made a highly promising start with the signature of the first customers. The success of the new platform, combined with the increase in the existing customer base, is boosting recurring revenues (maintenance and SaaS revenues) as a share of Broadpeak's total revenue.

The strong value proposition backed by the SaaS platform won two awards from industry professionals at the NAB Show in Las Vegas.

Broadpeak is also pursuing its commitment to reducing the carbon footprint of the digital industry. On June 14, the Group presented at the UK Parliament the initiative it helped launch nine months earlier, Greening of Streaming, an organisation that promotes practices to limit the environmental impact of streaming.

Financial targets confirmed for 2022 and beyond

Given its excellent half-year performance, Broadpeak is fully confident that it will meet the targets announced at the time of its IPO.

Full-year revenue is still expected to exceed 41 million, for growth of around 25%. In terms of profitability, Broadpeak expects to maintain a positive EBITDA, incorporating the investments necessary to step up market share acquisition.

In the longer term, the company is maintaining the roadmap unveiled at the time of the IPO, with a revenue target of 100m for 2026, of which 40% recurring revenue (maintenance & SaaS revenue), and an EBITDA margin of 20% (vs. 9% in 2021).

Upcoming events:

H1 2022 results: October 18, 2022, after market close

Q3 2022 revenues: November 15, 2022, after market close

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