TIDMCROS
RNS Number : 9185S
Crossrider plc
30 September 2014
Crossrider plc
("Crossrider" or the "Group")
First day of dealings on AIM following GBP45.9 million
placing
Crossrider, a next generation digital advertising group
specialising in monetising web and mobile media through the use of
big data, is pleased to announce that admission and trading of its
Ordinary Shares commences today on AIM.
The placing, which was oversubscribed, successfully raised
GBP45.9 million (US$75 million) before expenses, comprised the
issue of 44,563,107 new Ordinary Shares at the Placing Price of 103
pence per share. The total number of Ordinary Shares in issue at
Admission will be 148,463,039, giving Crossrider a market
capitalisation of approximately GBP152.9 million (US$250 million)
at the Placing Price.
The net proceeds of the Placing will be used by Crossrider to
increase traffic to its platforms, diversify the business's
regional, client and ad network footprint and to continue to expand
its data aggregation and analysis capabilities, both organically
and via acquisitions. In addition, Crossrider plans to grow its
research and development spending and increase staff resources to
support further international expansion.
Shore Capital is acting as nominated adviser and broker to
Crossrider and acted as sole bookrunner to the Placing.
Crossrider's TIDM Code is "CROS" and its ISIN number is
IM00BQ8NYV14.
Highlights
-- Crossrider's web and mobile platforms power ad networks,
agencies and direct publishers and enable the
delivery of relevant digital advertising through the analysis of
big data; making online marketing significantly
more efficient and cost effective
-- Rapidly growing reach:
o Delivered relevant adverts to 90 million users in January
2014, growing to 150 million users in August 2014
o Delivers more than 1.6 billion adverts to its audience per day
and has 25,000 live campaigns running at any given time
o Proprietary web apps platform used by 30,000 developers,
generating 1.8 million average daily installations with 930 million
installations to date
o Mobile platform empowers 100-plus mobile advertising networks,
serving over 800 publishers and 2,400 advertisers
o App distribution platform delivering apps to over 30,000 paid
subscribers per month with over 20 million installations to
date
-- Vision is to become the de facto standard platform for
delivering relevant web and mobile adverts to billions of people,
powering the next generation of digital advertising
-- Significant and growing exposure to rapidly growing market;
worth US$120 billion in 2013 and expected to grow to US$204 billion
by 2018, driven by growth in mobile advertising
-- Diversified business model spanning the digital advertising
ecosystem, with a varied range of clients and revenue base, both
geographically and by economic sector
-- All data collected is non personal identifiable
information
-- Strong management team led by CEO and co-founder Koby
Menachemi. Chairman is Don Elgie, founder and former Group CEO of
Main Market listed Creston plc (LSE:CRE)
-- Profitable and fast growing: on a pro forma basis in 2012
generated revenues of US$6.4 million, growing to US$21.6 million in
2013 and to US$29.3 million for the first half of 2014, generating
adjusted EBITDA of US$7.7 million in that period
Koby Menachemi, Chief Executive Officer of Crossrider, said:
"We are delighted to have successfully completed our AIM
admission. The interest in our business from high quality
institutions and their subsequent demand for our shares is a strong
endorsement of our strategy and service offering.
"Crossrider is at the cutting edge of a revolution in online
advertising. Our aim is for Crossrider's platform to become the de
facto standard to enable advertisers and publishers to accurately
match products and services with the most relevant consumer. We are
in a rapidly growing marketplace, driven by growth in mobile, of
which we aim to be at the forefront."
Enquiries
Crossrider plc
Koby Menachemi, Chief Executive
Officer
Mark Carlisle, Chief Financial Officer
c/o Bell Pottinger +44 (0) 20 3772 2500
Shore Capital
Bidhi Bhoma
Toby Gibbs
Jamie Cameron +44 (0) 20 7408 4090
Bell Pottinger
David Rydell
Olly Scott
James Newman +44 (0) 20 3772 2500
Unless the context otherwise requires, defined terms shall have
the meaning ascribed to them in the Admission Document available on
the Group's website.
Notes to Editors
Introduction and Business Overview
Crossrider operates in the rapidly growing digital advertising
market, specialising in improving return on investment for
advertisers and increased monetisation for publishers through the
analysis of big data. Crossrider has both web and mobile platforms
which generate its own big data and has developed a proprietary ad
serving algorithm and engine that can extract value from this data
to deliver relevant advertising to targeted users. During January
2014, the Group delivered ads to 90 million users; by August 2014
this monthly audience had grown to over 150 million, with 1.6
billion ads delivered per day by the Group.
Web Apps platform
Crossrider provides a platform which allows developers to build
browser web apps (also commonly referred to as extensions or
add-ons) which function on each of the four main web browsers
(Microsoft's Internet Explorer, Google's Chrome, Mozilla's Firefox
and Apple's Safari). There are over 30,000 developers using
Crossrider's platform who have built over 60,000 web apps. Web apps
built on Crossrider's platform are downloaded on average over 1.8
million times a day and there have been over 930 million downloads
to date.
Crossrider enables developers to monetise their web apps through
the provision of intelligent advertising. Advertising revenue is
shared between the developer and Crossrider with the developer
typically receiving the majority of the net revenues generated from
their apps.
Crossrider aggregates web apps created by developers together
with its own proprietary web apps and has, as a result, generated a
significant online inventory with over 50 billion monthly web page
views of online content and over 40 billion monthly requests to
display advertisements.
Mobile ad server
Crossrider's Ajillion business is a white label mobile ad
server, ad exchange and demand side platform, used by mobile ad
networks, agencies and monetisation platforms. The platform
currently empowers over 100 ad networks, including some of the
industry's largest players such as YBrant, Matomy, Darriens,
Inneractive, Marimedia, McCann Erickson, SayMedia, SupersonicAds,
WEBmedia and IronSource. The platform's main services include:
-- White label mobile ad server: offering 'cutting edge' ad
server technology which enables the targeted delivery of ad
impressions and provides networks with the ability to manage and
monetise publishers' inventory, and manage advertisers'
campaigns;
-- Ad exchange: allows ad networks to buy and sell media from
each other seamlessly;
-- Demand side platform: allows advertisers, agencies and
advertising networks to buy advertising impressions across multiple
ad exchange platforms via a single interface; and
-- Business Intelligence: provides monitoring and unified
reporting on ad networks' key performance indicators, including
clicks and conversion rates.
AjillionMax's revenue model is based on usage fees charged as a
revenue share.
Ad Network
Ad networks act as "brokers", aggregating the supply of ad space
from publishers and matching it with demand from advertisers. The
Group, through its own mobile ad network, DefinitiMedia, delivers
solutions for performance based advertisers (seeking to increase
ROI) and publishers (seeking to maximise fill rate and value per
impression) in the mobile field. DefinitiMedia benefits from both
its ability to offer targeted advertising using the Crossrider
Engine and from the capabilities of AjillionMAX, which includes
precision tracking, scale and global distribution. It operates a
variable and fixed price model, based on CPA, and also a revenue
sharing model.
Software Distribution
The Group has its own proprietary software tool, which offers
users a repair service for PCs and mobile devices via the internet.
This tool, known as Reimage, has repaired over 1.5 million PCs and
mobile phones. Over 30,000 subscriptions to Reimage were sold in
August 2014.
Business Strategy
Crossrider's vision is to become the de facto standard platform
for delivering relevant web and mobile ads, thereby powering the
next generation of digital advertising.
The Group intends to increase traffic to its platforms, improve
the quality of its data insights and expand into new geographic
regions through:
-- the acquisition of new data sources and technology through
value accretive acquisitions which consolidate the Group's
footprint within the digital media ecosystem;
-- investment into the organic development of the Group's
existing platform and business;
-- greater marketing of the Group's service capability to
clients;
-- increases in the Group's R&D budget to:
o keep the Group's mobile platform at the forefront of mobile ad
serving technology;
o maintain the market leadership of its web app development
platform; and
o improve the Crossrider Engine by enabling better
user-profiling, retargeting and segmentation of users in context
with the ad space (both text and video);
-- investment in the Group's own ad network operations by
acquiring additional ad networks and also media buying
operations;
-- expansion into territories including China, India and Latin
America, with a strategy already in place; and
-- increases in staff resource in order to meet organic
objectives, in both technical, development, marketing and business
relationship roles.
Key Strengths
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