Artificial Intelligence
Taboola Beats Q2 Guidance, Raises Expectations for Rest Of The Year and 2022
NEW YORK, Aug. 10, 2021 (GLOBE NEWSWIRE) — Taboola (Nasdaq: TBLA), a global leader in powering recommendations for the open web, helping people discover things they may like, today announced its results for the quarter ended June 30, 2021.
“We went public over one month ago, and we recently announced that we are acquiring Connexity for $800M to bring e-Commerce to the open web in a big way, and we had strong momentum in Q2,” said Adam Singolda, Founder & CEO, Taboola. “I’m pleased to share that our Q2 results included growth and profits above our expectations as we continue to grow our publisher partners, with new partnerships with publications such as BBC, Hearst, SheMedia and others. We’re also seeing growth of premium demand coming from agencies and brands such as video and native branding on premium supply, including placements like middle of article, homepages and section fronts. We are focused on executing on our plans and delivering on our commitments, and these results give us confidence to increase our 2021 guidance across all measures, including growing ex-TAC Gross Profit 22 to 23% for the year. With Connexity, we are positioning ourselves for an even stronger future by expanding our addressable market, scaling our offering to align with the direction of the open web, and hiring incredible talent. Amazon has millions of merchants, but merchants mainly have Amazon. That changes now.”
For more commentary on the quarter, please refer to Taboola’s Q2 2021 Shareholder Letter, which was furnished to the SEC and also posted on Taboola’s website today at https://investors.taboola.com.
Second Quarter 2021 Results Summary (unaudited)
| Three Months Ended | |||||||
| June 30, | |||||||
| (dollars in thousands) | 2021 | | 2020 | ||||
| Revenues | $ | 329,072 | | $ | 267,668 | ||
| Gross Profit | $ | 100,245 | | $ | 84,104 | ||
| Net Income (loss)1 | $ | (61,416 | ) | | $ | 12,905 | |
| Ratio of Net income (loss) to Gross profit | (61.3) | % | 15.30 | % | |||
| Cash Flow from Operations | $ | 23,083 | $ | 36,834 | |||
| Cash, cash equivalents and short-term deposits | $ | 585,243 | $ | 152,740 | |||
| Non-GAAP Financial Data* | |||||||
| ex-TAC Gross Profit | $ | 116,870 | | $ | 98,885 | ||
| Adjusted EBITDA | $ | 40,802 | | $ | 34,865 | ||
| Ratio of Adjusted EBITDA to ex-TAC Gross Profit | 34.9 | % | 35.3 | % | |||
| Free Cash Flow | $ | 6,945 | | $ | 33,177 | ||
1For the 2021 periods, a substantial majority is Share-based compensation expenses related to going public.
Second Quarter Financial Highlights
- Q2 results exceeded guidance across all measures
- Revenues of $329 million versus guidance of $315 to $320 million.
- Gross Profit of $100 million versus guidance of $88 to $95 million.
- ex-TAC Gross Profit of $117 million versus guidance of $108 to $113 million.
- Adjusted EBITDA of $41 million versus guidance of $34 to $36 million.
- Revenue grew $61 million or 22.9% year-over-year.
- New digital property partners1 drove $23 million of growth
- Existing digital property partners2 grew $38 million which translates to net dollar retention3 (NDR) of 114% and reflects strong improvement in yield as well as lower demand in the prior year due to COVID.
- Gross Profit grew $16.1 million or 19.2% year-over-year and ex-TAC Gross Profit grew $18 million or 18.2% year-over-year.
- In each case, the increase in gross profit was driven primarily by growth from new digital property partners,1 and growth from existing digital property partners that was driven by strong improvements in yield. These gains year over year were partially offset by the withholding in the prior year of $10 million in guarantee TAC payments to publishers that we subsequently volunteered to pay in the fourth quarter of 2020.
- Operating expenses grew $87.8 million or 133.2% year-over-year. Excluding higher share based compensation of $76.0 million year over year, mostly triggered from going public, operating expenses grew $11.8 million or 18.5% year-over-year. This increase was driven by:
- An $0.2M increase in research and development as increases in headcount were partially offset by lower depreciation related to timing of new server investments. We continue to invest in our proprietary, deep learning data engine as well as new products and tools to support our publishers and advertisers.
- An $3.6M increase in sales and marketing expenses to support our business growth.
- An $8.0M increase in general and administrative expenses related to public company investments and a partial return to more normal operations following the COVID pandemic.
- Net loss of $61.4 million was $74.3 million lower year over year primarily driven by the higher share based compensation. Adjusted EBITDA of $40.8 million increased by $5.9 million year over year driven by the higher revenue.
- Net income (loss) to Gross profit Margin was (61.3)% and the Ratio of Adjusted EBITDA to ex-TAC Gross Profit was 34.9%.
- GAAP EPS was $(1.39) in Q2. The EPS was based on GAAP shares outstanding of 48.5 million.
- Our fully diluted shares outstanding to start Q3 2021 is estimated to be approximately 256 million.
- Cash Flow from Operations of $23.1 million and Free Cash Flow of $6.9 million declined year over year driven by higher purchases of property and equipment and changes in working capital.
1New digital property partners within the first 12 months that were live on our network
2Net growth of existing digital property partners, including the growth of new digital property partners (beyond the revenue contribution determined based on the run-rate revenue generated by them when they are first on-boarded)
3Net Dollar Retention is the net growth of existing digital property partners for the given period divided by the revenues from the same period in the prior-year.
Third Quarter 2021 and Full Year 2021 Guidance
The Company’s strong Second Quarter results provide us confidence to raise our Third Quarter and Full Year 2021 guidance above our previous projections and guidance. Our guidance does not incorporate our pending acquisition of Connexity which is expected to close in the third quarter. Including Connexity, we expect in 2022 to grow ex-TAC Gross Profit over 30% on a reported, non-pro forma basis and 17%+ on a pro forma basis, above our previous standalone expectation to grow ex-TAC Gross Profit 16% in 2022. For Taboola as a standalone company, we expect the following.
For the Third Quarter 2021, the Company currently expects:
- Revenues of $325 to $328 million
- Gross Profit of $95 to $98 million
- ex-TAC Gross Profit of $115 to $117 million
- Adjusted EBITDA of $33 to $34 million
For the Full Year 2021, the Company currently expects:
|
(dollars in millions) |
Increased Guidance |
Year over Year |
Previous Guidance |
|
Revenues |
$1,316 to $1,323 |
~11% |
$1,298 to $1,308 |
|
Gross Profit |
$390 to $396 |
22% to 24% |
$374 to $386 |
|
ex-TAC Gross Profit |
$468 to $472 |
22% to 23% |
$456 to $466 |
|
Adjusted EBITDA |
$150 to $153 |
41% to 44% |
$140 to $150 |
Although we provide guidance for Adjusted EBITDA, we are not able to provide guidance for projected Net income (loss), the most directly comparable GAAP measures. Certain elements of Net income (loss), including share-based compensation expenses, are not predictable due to the high variability and difficulty of making accurate forecasts. As a result, it is impractical for us to provide guidance on Net Income (loss) or to reconcile our Adjusted EBITDA guidance without unreasonable efforts. Consequently, no disclosure of projected Net income (loss) is included. For the same reasons, we are unable to address the probable significance of the unavailable information.
Our guidance assumes that the global economy continues to recover, with no major COVID-19 related setbacks that may cause economic conditions to deteriorate or significantly reduce advertiser demand.
Webcast Details
Taboola’s senior management team will discuss the Company’s earnings on a call that will take place tomorrow, August 11, 2021, at 8:30 AM ET. The call can be accessed via webcast at https://investors.taboola.com, or by conference call by dialing (877) 312-1874, or (470) 495-9527 for international callers, and entering the conference ID 7791954. The webcast will be available for replay for one year, through the close of business on August 11, 2022.
*About Non-GAAP Financial Information
This press release includes ex-TAC Gross Profit, Adjusted EBITDA, Ratio of Adjusted EBITDA to ex-TAC Gross Profit and Free Cash Flow, which are non-GAAP financial measures. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company’s financial results. Therefore, these measures should not be considered in isolation or as an alternative to revenues, gross profit, net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that the Company’s presentation of these measures may not be comparable to similarly-titled measures used by other companies.
The Company believes non-GAAP financial measures provide useful information to management and investors regarding future financial and business trends relating to the Company. The Company believes that the use of these measures provides an additional tool for investors to use in evaluating operating results and trends and in comparing the Company’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Non-GAAP financial measures are subject to inherent limitations because they reflect the exercise of judgments by management about which items are excluded or included in calculating them. Please refer to the appendix at the end of this press release for reconciliations to the most directly comparable measures in accordance with GAAP.
Note Regarding Forward-Looking Statements
Certain statements in this press release are forward-looking statements. Forward-looking statements generally relate to future events including future financial or operating performance of Taboola.com Ltd. (the “Company”). For example, the expected timing and completion of the pending acquisition of Connexity and guidance for the third quarter of and Full Year 2021, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential” or “continue”, or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements.
These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain. Uncertainties and risk factors that could affect the Company’s future performance and cause results to differ from the forward-looking statements in this presentation include, but are not limited to: the ability to recognize the anticipated benefits of the recent transaction between the Company and ION Acquisitions Corp. 1 Ltd. (the “Business Combination”), which may be affected by, among other things, competition, the ability of the combined company to grow and manage growth profitably, maintain relationships with customers and retain its management and key employees; costs related to the Business Combination; changes in applicable laws or regulations; the Company’s estimates of expenses and profitability and underlying assumptions with respect to shareholder redemptions and purchase price and other adjustments; ability to attract new digital properties and advertisers; ability to meet minimum guarantee requirements in contracts with digital properties; intense competition in the digital advertising space, including with competitors who have significantly more resources; ability to grow and scale the Company’s ad and content platform through new relationships with advertisers and digital properties; ability to secure high quality content from digital properties; ability to maintain relationships with current advertiser and digital property partners; ability to make continued investments in the Company’s AI-powered technology platform; the need to attract, train and retain highly-skilled technical workforce; changes in the regulation of, or market practice with respect to, “third party cookies” and its impact on digital advertising; continued engagement by users who interact with the Company’s platform on various digital properties; the impact of the ongoing COVID-19 pandemic; reliance on a limited number of partners for a significant portion of the Company’s revenue; changes in laws and regulations related to privacy, data protection, advertising regulation, competition and other areas related to digital advertising; ability to enforce, protect and maintain intellectual property rights; and risks related to the fact that we are incorporated in Israel and governed by Israeli law; and other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s registration statement on Form F-4 relating to the Business Combination filed on April 30, 2021, and in subsequent filings with the Securities and Exchange Commission (“SEC”), including the final prospectus/proxy statement relating to the Business Combination.
Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on these forward-looking statements, which speak only as of the date they were made. The Company undertakes no duty to update these forward-looking statements except as may be required by law.
About Taboola
Taboola powers recommendations for the open web, helping people discover things they may like. The company’s platform, powered by artificial intelligence, is used by digital properties, including websites, devices and mobile apps, to drive monetization and user engagement. Taboola has long-term partnerships with some of the top digital properties in the world, including CNBC, NBC News, Business Insider, The Independent and El Mundo. More than 13,000 advertisers use Taboola to reach over 500 million daily active users in a brand-safe environment. The company has offices in 15 cities worldwide, including New York and Tel Aviv.
Learn more at www.taboola.com and follow @taboola on Twitter.
|
Investor Contact: |
Press Contact: |
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Jennifer Horsley |
Ran Gishri |
|
CONSOLIDATED BALANCE SHEETS |
||||||||
| U.S. dollars in thousands, except share and per share data | ||||||||
|
June 30, |
December 31, |
|||||||
|
|
|
2021 |
|
2020 |
||||
|
|
|
Unaudited |
|
Audited |
||||
|
|
|
|
|
|
||||
|
ASSETS |
|
|
|
|
||||
|
CURRENT ASSETS |
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
585,243 |
|
$ |
242,811 |
||
|
Restricted deposits |
|
1,061 |
|
3,664 |
||||
|
Trade receivables |
|
139,019 |
|
158,050 |
||||
|
Prepaid expenses and other current assets |
|
37,636 |
|
21,609 |
||||
|
Total current assets |
|
762,959 |
|
426,134 |
||||
|
NON-CURRENT ASSETS |
|
|
|
|
||||
|
Long-term prepaid expenses |
|
20,923 |
|
5,289 |
||||
|
Restricted deposits |
|
3,367 |
|
3,300 |
||||
|
Deferred tax assets |
|
2,281 |
|
1,382 |
||||
|
Right of use assets |
|
58,385 |
|
68,058 |
||||
|
Property and equipment, net |
|
58,310 |
|
52,894 |
||||
|
Intangible assets, net |
|
2,627 |
|
3,905 |
||||
|
Goodwill |
|
19,206 |
|
19,206 |
||||
|
|
|
165,099 |
|
154,034 |
||||
|
Total assets |
|
928,058 |
|
580,168 |
||||
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
CONSOLIDATED BALANCE SHEETS (continued) |
||||||||
| U.S. dollars in thousands, except share and per share data | ||||||||
|
|
|
June 30, |
|
December 31, |
||||
|
|
|
2021 |
|
2020 |
||||
|
|
|
Unaudited |
|
Audited |
||||
|
|
|
|
|
|
||||
|
LIABILITIES, CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
||||
|
CURRENT LIABILITIES |
|
|
|
|
||||
|
Trade payable |
|
$ |
157,658 |
|
$ |
189,352 |
||
|
Lease liability |
|
15,287 |
|
15,746 |
||||
|
Accrued expenses and other current liabilities |
|
101,029 |
|
95,135 |
||||
|
Total current liabilities |
|
273,974 |
|
300,233 |
||||
|
|
|
|
|
|
||||
|
LONG TERM LIABILITIES |
|
|
|
|
||||
|
Deferred tax liabilities |
|
27 |
|
45 |
||||
|
Warrant liability |
|
54,155 |
|
– |
||||
|
Lease liability |
|
52,564 |
|
63,044 |
||||
|
Total long-term liabilities |
|
106,746 |
|
63,089 |
||||
|
|
|
|
|
|
||||
|
CONVERTIBLE PREFERRED SHARES |
|
|
|
|
||||
|
Preferred A, B, B-1, B-2, C, D and E shares with no par value – Authorized: 123,389,750 shares at December 31, 2020; Issued and outstanding: 121,472,152 shares at December 31, 2020: Aggregate liquidation preference of 308,765 as of December 31, 2020. |
|
– |
|
170,206 |
||||
|
|
|
|
|
|
||||
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
||||
|
Ordinary shares with no par value- Authorized: 700,000,000 and 176,535,661 shares as of June 30 , 2021 and December 31, 2020 respectively; 211,198,259 and 41,357,049 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively. |
|
– |
|
– |
||||
|
Additional paid-in capital |
|
621,664 |
|
78,137 |
||||
|
Accumulated deficit |
|
(74,326 |
) |
|
(31,497 |
) |
||
|
Total shareholders’ equity |
|
547,338 |
|
46,640 |
||||
|
Total liabilities, convertible preferred shares, and shareholders’ equity |
|
$ |
928,058 |
|
$ |
580,168 |
||
| CONSOLIDATED STATEMENTS OF INCOME (LOSS) | ||||||||||||||||
| U.S. dollars in thousands, except share and per share data | ||||||||||||||||
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
|
Unaudited |
|
Unaudited |
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Revenues |
|
$ |
329,072 |
|
$ |
267,668 |
|
$ |
632,022 |
|
$ |
547,014 |
||||
|
Cost of revenues: |
|
|
|
|
|
|
|
|
||||||||
|
Traffic acquisition cost |
|
212,202 |
|
168,783 |
|
409,238 |
|
379,161 |
||||||||
|
Other cost of revenues |
|
16,625 |
|
14,781 |
|
33,040 |
|
30,973 |
||||||||
|
Total cost of revenues |
|
228,827 |
|
183,564 |
|
442,278 |
|
410,134 |
||||||||
|
Gross profit |
|
100,245 |
|
84,104 |
|
189,744 |
|
136,880 |
||||||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
|
Research and development expenses |
|
30,050 |
|
21,908 |
|
53,943 |
|
43,907 |
||||||||
|
Sales and marketing expenses |
|
69,136 |
|
31,396 |
|
103,444 |
|
66,832 |
||||||||
|
General and administrative expenses |
|
54,468 |
|
12,576 |
|
64,144 |
|
27,755 |
||||||||
|
Total operating expenses |
|
153,654 |
|
65,880 |
|
221,531 |
|
138,494 |
||||||||
|
Operating income (loss) before finance expenses |
|
(53,409 |
) |
18,224 |
|
(31,787 |
) |
(1,614 |
) |
|||||||
|
Finance expenses, net |
|
(85 |
) |
|
(654 |
) |
|
(883 |
) |
|
(206 |
) |
||||
|
Income (loss) before income taxes |
|
(53,494 |
) |
|
17,570 |
|
(32,670 |
) |
|
(1,820 |
) |
|||||
|
Provision for income taxes |
|
(7,922 |
) |
|
(4,665 |
) |
|
(10,159 |
) |
|
(9,128 |
) |
||||
|
Net income (loss) |
|
$ |
(61,416 |
) |
|
$ |
12,905 |
|
$ |
(42,829 |
) |
|
$ |
(10,948 |
) |
|
|
Less: Undistributed earnings allocated to participating securities |
|
(6,029 |
) |
|
(5,646 |
) |
|
(11,944 |
) |
|
(11,228 |
) |
||||
|
Net Income (loss) attributable to ordinary shares – basic and diluted |
|
(67,445 |
) |
|
7,259 |
|
(54,773 |
) |
|
(22,176 |
) |
|||||
|
Net income (loss) per share attributable to ordinary shareholders, basic |
|
$ |
(1.39 |
) |
|
$ |
0.19 |
|
$ |
(1.18 |
) |
|
$ |
(0.54 |
) |
|
|
Weighted-average shares used in computing net income (loss) per share attributable to ordinary shareholders, basic |
|
48,518,124 |
|
37,895,239 |
|
46,351,830 |
|
41,217,908 |
||||||||
|
Net income (loss) per share attributable to ordinary shareholders, diluted |
|
$ |
(1.39 |
) |
|
$ |
0.12 |
|
$ |
(1.18 |
) |
|
$ |
(0.54 |
) |
|
|
Weighted-average shares used in computing net income (loss) per share attributable to ordinary shareholders, diluted |
|
48,518,124 |
|
60,096,610 |
|
46,351,830 |
|
41,217,908 |
||||||||
|
SHARE BASED COMPENSATION BREAK-DOWN BY EXPENSE LINE |
|||||||
| U.S. dollars in thousands | |||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
(unaudited) |
|
(unaudited) |
||||
|
Cost of revenues |
455 |
|
111 |
|
580 |
|
252 |
|
Research and development |
8,947 |
|
1,037 |
|
12,385 |
|
2,051 |
|
Sales and marketing |
35,040 |
|
919 |
|
36,171 |
|
1,897 |
|
General and administrative |
34,081 |
|
156 |
|
34,518 |
|
293 |
|
Total share-based compensation expense |
78,523 |
|
2,223 |
|
83,654 |
|
4,493 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||||
| U.S. dollars in thousands, except share and per share data | ||||||||||||||||
|
|
|
Three months ended |
|
Six months ended |
||||||||||||
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
|
Unaudited |
|
Unaudited |
||||||||||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) |
|
$ |
(61,416 |
) |
|
$ |
12,905 |
|
$ |
(42,829 |
) |
|
$ |
(10,948 |
) |
|
|
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: |
|
|
|
|
|
|
|
|
||||||||
|
Depreciation and amortization |
|
8,646 |
|
9,076 |
|
16,890 |
|
18,827 |
||||||||
|
Share based compensation expenses |
|
78,523 |
|
2,223 |
|
83,654 |
|
4,493 |
||||||||
|
Net loss (gain) from financing expenses |
|
(2,970 |
) |
|
(517 |
) |
|
(1,357 |
) |
|
824 |
|||||
|
Increase in deferred taxes, net |
|
(1,693 |
) |
|
(890 |
) |
|
(917 |
) |
|
(1,456 |
) |
||||
|
Revaluation of the warrant liability |
|
272 |
|
|
|
272 |
|
|
||||||||
|
Accrued interest, net |
|
– |
|
155 |
|
– |
|
332 |
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in operating assets and liabilities: |
|
|
|
|
|
|
|
|
||||||||
|
Decrease (increase) in trade receivables |
|
(13,410 |
) |
|
18,248 |
|
19,031 |
|
43,296 |
|||||||
|
Decrease (increase) in prepaid expenses and other current assets and long-term prepaid expenses |
|
(16,998 |
) |
|
9,069 |
|
(33,757 |
) |
|
14,985 |
||||||
|
Increase (decrease) in trade payable |
|
16,497 |
|
(30,722 |
) |
|
(31,025 |
) |
|
(35,535 |
) |
|||||
|
Increase in accrued expenses and other current liabilities |
|
15,671 |
16,578 |
|
5,284 |
14,333 |
||||||||||
|
Change in operating lease Right of use assets |
|
3,659 |
|
3,343 |
|
7,291 |
|
6,639 |
||||||||
|
Change in operating Lease liabilities |
|
(3,698 |
) |
|
(2,634 |
) |
|
(8,557 |
) |
|
(7,948 |
) |
||||
|
Net cash provided by operating activities |
|
23,083 |
|
36,834 |
|
13,980 |
|
47,842 |
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
||||||||
|
Purchase of property and equipment, including capitalized platform costs |
|
(16,138 |
) |
|
(3,657 |
) |
|
(21,675 |
) |
|
(10,634 |
) |
||||
|
Cash paid in connection with acquisitions |
|
– |
|
– |
|
– |
|
(202 |
) |
|||||||
|
Decrease (increase) in restricted deposits |
|
(118 |
) |
|
(12,965 |
) |
|
2,536 |
|
(2 |
) |
|||||
|
Decrease in short-term deposits |
|
– |
|
24,968 |
|
– |
|
24,964 |
||||||||
|
Net cash provided by (used in) investing activities |
|
(16,256 |
) |
|
8,346 |
|
(19,139 |
) |
|
14,126 |
||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
||||||||
|
Exercise of options |
|
1,368 |
|
400 |
|
4,919 |
|
677 |
||||||||
|
Issuance of share, net of offering costs |
|
290,908 |
|
– |
|
287,432 |
|
– |
||||||||
|
Issuance of warrant |
|
53,883 |
|
|
|
53,883 |
|
|
||||||||
|
Net cash provided by financing activities |
|
346,159 |
|
400 |
|
346,234 |
|
677 |
||||||||
|
Exchange differences on balances of cash, cash equivalents |
|
2,970 |
|
517 |
|
1,357 |
|
(824 |
) |
|||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Increase in cash, cash equivalents |
|
355,956 |
|
46,097 |
|
342,432 |
|
61,821 |
||||||||
|
Cash, cash equivalents – at the beginning of the period |
|
229,287 |
|
102,644 |
|
242,811 |
|
86,920 |
||||||||
|
Cash, cash equivalents – at end of the period |
|
$ |
585,243 |
|
$ |
148,741 |
|
$ |
585,243 |
|
$ |
148,741 |
||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) |
|||||||||||||
|
U.S. dollars in thousands, except share and per share data |
|
||||||||||||
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
||||||||
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
||||
|
|
|
(unaudited) |
|
(unaudited) |
|
||||||||
|
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cash paid for income taxes |
|
$ |
4,502 |
|
$ |
431 |
|
$ |
5,831 |
|
$ |
963 |
|
|
Supplemental disclosures of noncash investing and financing activities: |
|
|
|
|
|
|
|
|
|
||||
|
Deferred offering costs incurred during the period included in the Long-term prepaid expenses |
|
$ |
2,950 |
|
$ |
– |
|
$ |
2,950 |
|
$ |
– |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Purchase of property, plant and equipment |
|
$ |
966 |
|
$ |
3,030 |
|
$ |
966 |
|
$ |
3,030 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
APPENDIX: Non-GAAP Reconciliation
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR Q2 2021
(Unaudited)
The following table provides a reconciliation of Revenues to ex-TAC Gross Profit.
| Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||
| 2021 | | 2020 | 2021 | | 2020 | ||||||||||
| (unaudited) | (unaudited) | ||||||||||||||
| (dollars in thousands) | (dollars in thousands) | ||||||||||||||
| Revenues | $ | 329,072 | | $ | 267,668 | $ | 632,022 | | $ | 547,014 | |||||
| Traffic acquisition cost | 212,202 | 168,783 | 409,238 | 379,161 | |||||||||||
| Other cost of revenues | 16,625 | 14,781 | 33,040 | 30,973 | |||||||||||
| Gross Profit | $ | 100,245 | $ | 84,104 | $ | 189,744 | $ | 136,880 | |||||||
| Add back: Other cost of revenues | 16,625 | | 14,781 | 33,040 | 30,973 | ||||||||||
| ex-TAC Gross Profit | $ | 116,870 | | $ | 98,885 | $ | 222,784 | $ | 167,853 | ||||||
The following table provides a reconciliation of Net income (loss) to Adjusted EBITDA.
| Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||
| 2021 | | 2020 | 2021 | | 2020 | ||||||||||
| (unaudited) | (unaudited) | ||||||||||||||
| (dollars in thousands) | (dollars in thousands) | ||||||||||||||
| Net income (loss) | $ | (61,416 | ) | | $ | 12,905 | $ | (42,829 | ) | $ | (10,948 | ) | |||
| Adjusted to exclude the following: | | ||||||||||||||
| Financial expenses, net | 85 | | 654 | 883 | 206 | ||||||||||
| Tax expenses | 7,922 | | 4,665 | 10,159 | 9,128 | ||||||||||
| Depreciation and amortization | 8,646 | | 9,076 | 16,890 | 18,827 | ||||||||||
| Share-based compensation expenses(1) | 78,523 | | 2,223 | 83,654 | 4,493 | ||||||||||
| M&A costs(2) | 7,042 | | 5,342 | 5,588 | 11,439 | ||||||||||
| Adjusted EBITDA | $ | 40,802 | | $ | 34,865 | $ | 74,345 | $ | 33,145 | ||||||
1For the 2021 periods, a substantial majority is Share-based compensation expenses related to going public.
2 For 2020 periods, represents costs associated with the proposed strategic transaction with Outbrain Inc.which we elected not to consummate, and for 2021 periods, relates to the acquisition of ION Acquisition Corp. 1 Ltd. and going public.
We calculate Ratio of Net income (loss) to Gross profit as Net income (loss) divided by Gross profit. We calculate Ratio of Adjusted EBITDA to ex-TAC Gross Profit, a non-GAAP measure, as Adjusted EBITDA divided by ex-TAC Gross Profit. We believe that the Ratio of Adjusted EBITDA to ex-TAC Gross Profit is useful because TAC is what we must pay digital properties to obtain the right to place advertising on their websites, and we believe focusing on ex-TAC Gross Profit better reflects the profitability of our business. The following table reconciles Ratio of Net income (loss) to Gross Profit and Ratio of Adjusted EBITDA to ex-TAC Gross Profit for the period shown.
| Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||
| 2021 | | 2020 | 2021 | | 2020 | ||||||||||
| (unaudited) | (unaudited) | ||||||||||||||
| (dollars in thousands) | (dollars in thousands) | ||||||||||||||
| Gross profit | $ | 100,245 | | $ | 84,104 | $ | 189,744 | $ | 136,880 | ||||||
| Net income (loss) | $ | (61,416 | ) | | $ | 12,905 | $ | (42,829 | ) | $ | (10,948 | ) | |||
| Ratio of Net income (loss) to Gross profit | (61.3 | )% | | 15.3 | % | (22.6 | )% | (8.0 | )% | ||||||
| ex-TAC Gross Profit | $ | 116,870 | | $ | 98,885 | $ | 222,784 | $ | 167,853 | ||||||
| Adjusted EBITDA | $ | 40,802 | | $ | 34,865 | $ | 74,345 | $ | 33,145 | ||||||
| Ratio of Adjusted EBITDA Margin to ex-TAC Gross Profit | 34.9 | % | | 35.3 | % | 33.4 | % | 19.7 | % | ||||||
The following table provides a reconciliation of Net cash provided by operating activities to Free Cash Flow.
| Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||
| 2021 | | 2020 | 2021 | | 2020 | ||||||||||
| (unaudited) | (unaudited) | ||||||||||||||
| (dollars in thousands) | (dollars in thousands) | ||||||||||||||
| Net cash provided by operating activities | $ | 23,083 | | $ | 36,834 | $ | 13,980 | $ | 47,842 | ||||||
| Purchases of property and equipment, including capitalized platform costs | (16,138 | ) | | (3,657 | ) | (21,675 | ) | (10,634 | ) | ||||||
| Free Cash Flow | $ | 6,945 | | $ | 33,177 | $ | (7,695 | ) | $ | 37,208 | |||||
APPENDIX: Non-GAAP Reconciliation
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR Q3 2021 and FULL YEAR 2021 GUIDANCE
(Unaudited)
The following table provides a reconciliation of Gross Profit to ex-TAC Gross Profit.
| Q3 2021 | | FY 2021 | |
| (unaudited) | |||
| (dollars in millions) | |||
| Revenues | $325 – $328 | | $1,316 – $1,323 |
| Traffic acquisition cost | ($210 – $211) | ($848 – $851) | |
| Other cost of revenues | ($19 – $20) | ($75 – $77) | |
| Gross Profit | $95 – $98 | $390 – $396 | |
| Add back: Other cost of revenues | $19 – $20 | | $75 – $77 |
| ex-TAC Gross Profit | $115 – $117 | | $468 – $472 |
Artificial Intelligence
Cayman Enterprise City Publishes Socio-Economic Impact Assessment by Economist and Leading Advisor on the Caribbean, Marla Dukharan
The Impact of Cayman Enterprise City’s Socio-Economic Development Project Nears USD $1 Billion
GRAND CAYMAN, Cayman Islands, May 16, 2024 /PRNewswire/ — Cayman Enterprise City (CEC) has released a Socio-Economic Impact Assessment by Marla Dukharan. The report illustrates that CEC is increasing its impact by supporting higher earnings for Caymanians and is driving a shift towards a knowledge-based economy by focusing on high productivity sectors. The release by Dukharan reads, “Caymanian resourcefulness and private sector-led innovation have been the driving force behind the islands’ outstanding socio-economic success. Cayman Enterprise City underpins the next generation of Cayman innovation and dynamism.”
With an economic impact of USD $130 million in 2023, contributing just under USD $1 billion to the local economic activity in 12 years since inception, “CEC is helping the nation to diversify economically, in terms of sectors and jobs, ensuring locals have economic and employment opportunities that match the nation’s progress,” the report reads.
The CEC socio-economic development project is now home to 352 Special Economic Zones Companies (SEZCos), many of which are globally recognised institutions led by top executives and industry experts. “CEC member companies are providing high-value employment with salaries exceeding those typically found outside of the special economic zone,” said Charlie Kirkconnell, Chief Executive Officer at CEC. “The CEC community is fully invested in Cayman and the report illustrates that the CEC socio-economic development project is making a very significant impact on Cayman’s economy and community.”
“As CEC continues to grow, it continues to create significant employment and entrepreneurial opportunities for Caymanians and we encourage anyone that might be interested in finding out how they might get involved, whether as a member of the community and/or as a volunteer in our Enterprise Cayman non-profit organisation (NPO).”
77% of Caymanian-held jobs at CEC member companies, are in sectors with high social returns and increasing global demand. “By putting skills first and prioritizing learning, CEC is enabling new industries to take root,” the release by Dukharan reads.
CEC, through its Enterprise Cayman NPO, is a first-mover in private sector-facilitated education and training in the Caribbean, making it a leading force to boost youth participation in the economy. By offering training in specialised skills, Enterprise Cayman is helping to close the gap in higher education and earnings for Caymanians. “Through Enterprise Cayman we’ve set out to strategically support meaningful employment and entrepreneurial opportunities for Caymanians, by providing internship and mentorship opportunities, by hosting skill-building and career focused training, and by providing invaluable networking and community engagement opportunities,” said Kirkconnell.
In 2023 individuals took advantage of 4,226 opportunities to participate in education, training, and career development events and, since launching entrepreneurial programming in 2021, Enterprise Cayman has worked with 41 new Cayman-born business ventures. “We’re helping to develop a local talent pool that meets the demand of Cayman’s growing digital innovation and technology sectors while, in parallel, offering exciting opportunities for individuals to launch new business ventures within an innovative business environment,” said Kirkconnell.
With CEC’s new campus and state-of-the-art facilities, Signal House, the project “holds the promise of deep, continued economic impact,” the report concludes.
To access CEC’s economic impact assessments and Enterprise Cayman’s annual reports please visit https://www.enterprisecayman.ky/reports. For more information on how to get involved and for upcoming programmes and events visit www.enterprisecayman.ky.
Website: www.caymanenterprisecity.com LinkedIn: @CaymanEnterpriseCityTwitter: @CEC_CaymanInstagram: @CaymanEnterpriseCityFacebook: @CaymanEnterpriseCityYouTube: @ceccayman
About Cayman Enterprise City
Cayman Enterprise City (CEC) is an award-winning development project which consists of three special economic zones (SEZs) focused on attracting knowledge-based and specialised-services businesses to set up a genuine physical presence in the Cayman Islands. The zones included within CEC are Cayman Tech City, Cayman Commodities & Derivatives Centre, and Cayman Maritime & Aviation City. With a dedicated Government Authority, licensing fee concessions and guaranteed fast-track processes, CEC enables international companies to quickly and efficiently establish a Cayman Islands office, which in turn enables them to generate active business income within a tax neutral environment.
About Enterprise Cayman
Enterprise Cayman is a non-profit organisation (NPO) powered by Cayman Enterprise City in partnership with Cayman Islands’ special economic zone companies (SEZCos). The organisation, which applies the Theory of Change (TOC) methodology, provides Caymanians and residents with access to high-quality learning experiences and opportunities to develop and launch new business ventures, to pursue careers within the technology and innovation sectors, and to join a dynamic network of industry professionals. Let’s grow the next generation of Caymanian innovators and entrepreneurs with Enterprise Cayman!
Logo: https://mma.prnewswire.com/media/1317764/2860789/Cayman_Enterprise_City_Logo.jpg
FOR MORE INFORMATION:Contact: Kaitlyn Elphinstone Email: [email protected]
View original content:https://www.prnewswire.co.uk/news-releases/cayman-enterprise-city-publishes-socio-economic-impact-assessment-by-economist-and-leading-advisor-on-the-caribbean-marla-dukharan-302148206.html
Artificial Intelligence
Strava Unveils New Chapter of Accelerated Product Development at Brand’s Flagship Event
The Company introduces increased product velocity, leveraging advancements in Artificial Intelligence, in service of its vision of a world connected through movement
LOS ANGELES, May 16, 2024 /PRNewswire/ — Strava, the leading digital community for active people with more than 125 million athletes, today showcased its latest initiatives and product developments at its annual event, Camp Strava. With the theme of Progress, Together company leaders announced how the platform will empower its global community to make progress in the way they explore, move, and connect on Strava.
“Strava is gaining momentum to realize our vision of a world connected through movement,” said Michael Martin, chief executive officer of Strava. “We are focused on two fundamental shifts to accelerate how we deliver value to 125 million people globally– building for women and leveraging Artificial Intelligence – which will unlock new community-and-partner-powered experiences across the platform.”
A New Era of Product VelocityStrava, with new leaders at the helm, is ushering in its next era of product velocity. The company listened closely to feedback from its global community and announced three of the most requested features coming to the platform by the end of the year.
The first of these updates, AI-enabled Leaderboard Integrity, will harness machine learning to automatically flag irregular, improbable, or impossible activities recorded to the platform. Trained by millions of activities, this feature allows all users on Strava to play fair and have more fun.
Additionally, the company announced a new Family Plan Subscription, the sister of the company’s Student Plan. With Family Plan, it’s easier to make a fitness commitment with your community by sharing an annual subscription with up to three other people – friends, family, or fitness family. Launching in select countries this summer, with plans to roll out globally by the end of the year, Strava’s newest annual subscription option offers the best value for groups (up to four), with a discount off the regular subscription price for each member.
Strava also implemented an updated design system, an initiative that is integral in driving a heightened pace of product innovation at the company. Through this work, Strava announced the launch of one of the company’s most requested features, Dark mode. Dark mode will improve the in-app experience for all users, reducing eye strain and improving accessibility while they record activity or scroll through the feed. Athletes can expect a rollout later this summer with options to keep their mobile settings always dark, always light, or match their device settings.
Company leaders highlighted several other features and updates to current products like Flyover, with its next iteration offering an overlay with activity stats and off-platform sharing capabilities. The overlay is available today for Strava subscribers and an off-platform sharing option will be released later this year.
Build for Her, Build for ManyStudies show that women of all ages participate in sports at a far lower rate than men, and overall, despite wanting to be active, find less time to dedicate to an active lifestyle. As the company continues on its mission to motivate people to live their best active lives, building for women on the platform will ultimately serve everyone in the Strava community. Several new features and initiatives were announced as a part of this strategic focus, which includes:
Night Heatmaps: Night Heatmaps show only activities between sundown and sunrise – so athletes can get an idea of which roads, trails, and paths are well-trafficked after hours. Since Night Heatmaps filter for after-hours routes, it can be a helpful tool for female athletes training before sunrise and after sunset.Quick Edit: For active women, having control over what is shared with the Strava community that cheers them on – like what time a run is logged – is important. Quick Edit makes it easier to make the most common edits – like activity name, and privacy settings so you can hide your start time, your map, or other workout stats.Strive for More®: The company announced a new phase of its Strive for More® initiative, created in 2022 to promote and support women in movement and sport. Today, Strava unveiled an official partnership with media company TOGETHXR to encourage more women to watch – and play – women’s sports. As part of the partnership, Strava will also donate $100,000 to the Alex Morgan Foundation, started by co-founder of TOGETHXR, Alex Morgan, to support their mission to help girls and women find confident paths forward in sports and life.Athlete IntelligenceToday, Strava announced the start of an accelerated product roadmap, outlining how Strava will implement the latest technological enhancements in AI and machine learning, to transform the athlete experience.
One key advancement to the platform includes the company’s latest development, Athlete Intelligence. Strava is introducing its beta AI-powered feature which turns each subscriber’s training data into an easily digestible summary that contextualizes their accomplishments and fitness goals. Unlike other AI-powered training services, Strava connects with thousands of devices, wearables, and fitness apps, so an athlete’s insights can consider their entire fitness story across multiple sports and modalities.
The features shared at Camp Strava will be released on a rolling basis through the end of the year. To view the full list of product releases and further details, visit www.press.strava.com.
For more information on Strava, to create a free account, or to start a free subscription trial visit www.strava.com.
About Strava Strava is the leading digital community for active people with more than 125 million athletes, in more than 190 countries. The platform offers a holistic view of your active lifestyle, no matter where you live, which sport you love and/or what device you use. Everyone belongs on Strava when they are pursuing an active life. Join the community, find motivation and discover new experiences with a Strava subscription.
Visit www.strava.com for more information and connect with Strava on Instagram, Twitter, Facebook, YouTube and LinkedIn.
Media Contact: [email protected]
Photo – https://mma.prnewswire.com/media/2413914/Darkmode_STRAVA.jpgPhoto – https://mma.prnewswire.com/media/2413915/Flyover_STRAVA.jpg Photo – https://mma.prnewswire.com/media/2413913/Athlete_Intelligence_STRAVA__INC.jpg
View original content:https://www.prnewswire.co.uk/news-releases/strava-unveils-new-chapter-of-accelerated-product-development-at-brands-flagship-event-302147068.html
Artificial Intelligence
Japan Data Center Market Investment to Reach $14.48 Billion by 2028 – Watch Out Exclusive Insight on Japan & Hong Kong Data Center Market – Arizton
CHICAGO, May 16, 2024 /PRNewswire/ — Arizton publishes the latest research report on the Japan data center market and Hong Kong data center market.
The Japan Data Center Market to Witness Investments of $14.48 Billion by 2029.
Get Insights on 107 Existing Data Centers and 41 Upcoming Facilities across Japan.
The data center market in Japan is experiencing the emergence of self-built hyperscale data center facilities by major operators such as Google, Microsoft, and Amazon Web Services (AWS). This development is expected to impact the colocation market in Japan. Since these hyperscale operators store workloads in their own data center facilities, it may reduce the source of revenue generation for colocation operators.
Japan is a well-established data center market in the APAC region. The country supports investments with its macroeconomic policies and other incentives for investors. The market is witnessing several investments from local and global data center operators, further expanding its presence. Tokyo and Osaka are Japan’s major destinations for data center development, accounting for over 90% of the existing data center facilities. The government announced the offer of subsidies in Hokkaido and Kyushu for data center development and decentralize data centers from Tokyo and Osaka.
Investment Opportunities
In October 2023, SoftBank and its subsidiary, IDC Frontier, announced the plan to develop a new data center facility in Tomakomai City, Hokkaido. The company invested around $420 million toward the project, for which it received subsidies worth $190 million from the Ministry of Economy, Trade, and Industry. In July 2023, Internet Initiative Japan (IIJ) launched its second data center building at the Shiroi data center campus in Chiba Prefecture, Greater Tokyo. Once fully built, the campus will house four data center buildings. Furthermore, the company is involved in a third expansion initiative in its Matsue City campus (which will likely go live in 2025).In June 2023, Digital Edge, in partnership with Hulic, a real estate developer, announced the start of the construction of a new data center facility, TY07, in Tokyo. The facility is expected to go online by 2025.In April 2024, GDS Services partnered with Gaw Capital to develop a new data center campus in Fuchu City, Tokyo. Both companies will jointly invest toward developing a new data center facility, with the first phase slated to go online by 2026.To Buy this Research Now, Click: https://www.arizton.com/market-reports/japan-data-center-market-investment-analysis
Existing Vs. Upcoming Data Centers
Existing Facilities in the Region (Area and Power Capacity)TokyoOsakaOther CitiesList of Upcoming Facilities in the Region (Area and Power Capacity)TokyoOsakaOther CitiesVendor Analysis
IT Infrastructure Providers: Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise (HPE), Hitachi Vantara, Huawei Technologies, IBM, Inspur, Lenovo, NEC, NetApp, and Oracle.
Data Center Construction Contractors & Sub-Contractors: Arup, AECOM, Daiwa House Industry, Fuji Furukawa Engineering & Construction, Hibiya Engineering, ISG, Kajima Corporation, Keihanshin Building, Linesight, MARCAI DESIGN, Meiho Facility Works, Nikken Sekkei, NTT FACILITIES, Obayashi Corporation, SHINRYO Corporation, TAISEI Corporation.
Support Infrastructure Providers: 3M, ABB, Alfa Laval, Caterpillar, Cummins, Delta Electronics, Eaton, Fuji Electric, HITEC Power Protection, Johnson Controls, Kawasaki Heavy Industries, KOHLSER-SDMO, Legrand, Mitsubishi Electric, Rittal, Rolls-Royce, Schneider Electric, STULZ, Siemens, Vertiv.
Data Center Investors: AirTrunk, Alibaba Cloud, Amazon Web Services, AT TOKYO, Colt Data Centre Services, Digital Edge, Equinix, Fujitsu, Goodman, Google, IDC Frontier, Internet Initiative Japan (IIJ), MC Digital Realty, Microsoft, NTT Communications, SCSK Corporation (NETXDC), Telehouse, Tencent Cloud, TIS INTEC Group.
New Entrants: Ada Infrastructure, Edge Centres, CyrusOne, ESR, GDS Services, Keppel Data Centres, NEXTDC, Princeton Digital Group (PDG), SC Zeus Data Center, STACK Infrastructure, ST Telemedia Global Data Centres, Vantage Data Centers, Yondr.
The Hong Kong Data Center Market will Witness Investments of $4.80 Billion by 2029.
Get Insights on 54 Existing Data Centers and 12 Upcoming Facilities across Hong Kong.
The Hong Kong data center market is booming, driven by the increasing demand for digital services. The data center investments in Hong Kong over the next two to three years are expected to remain high due to the surge in demand and the significant boost due to the advancements in AI technologies. Investors are actively investing in this market.
Hong Kong is a mature and thriving market for data center development in the APAC region. Investors find it an attractive market owing to the high internet and social media usage levels, a robust business ecosystem, and excellent connectivity through both inland and submarine cables. Additionally, the deployment of 5G technology further enhances its appeal.
Hong Kong stands out globally for the incredibly high rates of cell phone and home broadband service usage. With around 300 licensed internet service providers, there is robust competition, providing data center operators with a wide range of choices.
Hong Kong is considered an attractive destination for businesses due to various reasons. Its proximity to mainland China and its import-export relations with major markets, such as China and the US, make it easier for businesses to operate. Additionally, the market has experienced significant growth in Foreign Direct Investment (FDI), ranking after countries like the UK, the US, and China.
Investment Opportunities
In December 2023, the company completed the core and shell construction of phase-1 of the MEGA IDC data center campus. The facility has already signed lease agreements with cloud service providers and international banks for its available space. The company plans to expand the campus through phase-2 during the forecast period.In March 2023, the company launched its seventh data center facility, MEGA Gateway, in Tsuen Wan. The facility is part of its connected MEGA campus.Goodman is among the major investors in the Hong Kong market, and it is continuously expanding its data center presence. In March 2024, the company announced the construction of the new Texaco data center facility in Tsuen Wan. The facility is a brownfield construction that involved the conversion of an industrial building into a data center facility. The facility is likely to go online by 2026.Over 60% Of Future Demand to Come from Cloud Service Providers
The Hong Kong data center market has the presence of on-premises data centers operated by educational institutions, the government, and financial services such as HSBC Bank. A significant decline in on-premises data centers will occur in the next three to five years owing to the increase in digitalizing initiatives across sectors and the strong growth in demand for colocation and cloud services. In addition, most existing service providers offer managed solutions to enterprise customers, which will likely grow in the market from 2024-2029.
The market has the presence of all global cloud operators, such as Amazon Web Services (AWS), Google, Microsoft, Alibaba Cloud, Huawei Cloud, and Tencent Cloud. This will propel the demand for wholesale colocation services through these service providers’ continuous expansion initiatives. The cloud segments will likely dominate capacity take-up over the next five years. In addition, the market will witness the entry of multiple global organizations to service customers through a local presence.
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Existing VS. Upcoming Data Centers
Existing Facilities in the Region (Area and Power Capacity)Tseung Kwan OKwai ChungTsuen WanFanlingFo TanChai WanTai PoOther LocationList of Upcoming Facilities in the Region (Area and Power Capacity)Tseung Kwan OKwai ChungTsuen WanFanlingFo TanChai WanTai PoOther LocationVendor Analysis
IT Infrastructure Providers: Arista Network, Atos, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise (HPE), Huawei Technologies, IBM, Inspur, Lenovo, NetApp.
Data Center Construction Contractors & Sub-Contractors: Arup, AtkinsRéalis, Aurecon, BYME Engineering, Chung Hing Engineers Group, Cundall, DSCO Group, Gammon Construction, ISG, Studio One Design.
Support Infrastructure Providers: ABB, Airedale, Caterpillar, Cummins, Delta Electronics, Eaton, Fuji Electric, KOHLER, Legrand, Mitsubishi Electric, Piller Power Systems, Rittal, Schneider Electric, Siemens, STULZ, Sumber, Vertiv.
Data Center Investors: AirTrunk, BDx, CITIC Telcom International, China Mobile International (CMI), China Unicom, Digital Realty, Equinix, ESR, GDS Services, Global Switch, Goodman, iTech Towers Data Centre Services, NTT DATA, SUNeVision Holdings (iAdvantage), Telehouse, Towngas Telecom (TGT), Vantage Data Centers.
New Entrants: Angelo Gordon and Mapletree Investments
Japan & Hong Kong Data Center Market Segmentation
IT Infrastructure
Servers
Storage Systems
Network Infrastructure
Electrical Infrastructure
UPS Systems
Generators
Transfer Switches & Switchgears
PDUs
Other Electrical Infrastructure
Mechanical Infrastructure
Cooling Systems
Rack Cabinets
Other Mechanical Infrastructure
Cooling Systems
CRAC & CRAH Units
Chiller Units
Cooling Towers, Condensers & Dry Coolers
Economizers & Evaporative Coolers
Other Cooling Units
General Construction
Core & Shell Development
Installation & Commissioning Services
Engineering & Building Design
Fire Detection & Suppression Systems
Physical Security
DCIM
Tier Standard
Tier I & Tier II
Tier III
Tier IV
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