Today's News

Vancouver, BC, March 31, 2022--(T-Net)--Media tech company BBTV Holdings Inc. (TSX: BBTV, OTCQX: BBTVF), today announced financial results for Q4 2021 and full-year audited financial results for the period ended on December 31, 2021.

The company reported growing revenues, but has also reported a $32.8 million net loss for fiscal year 2021, and a net loss of $9 million for its latest quarter reported (Q4 2021).

Shahrzad Rafati, Chair and CEO, BBTV

"Q4 2021 results continued the trend set in previous quarters whereby our focus on higher margin Plus Solutions continued to drive overall margin improvement and cash flow generation. Our cash flow performance was among the highest in our company's history - this in the face of some softness in the broader market as people generally watched less content as COVID restrictions eased around the world," said Shahrzad Rafati, Chairperson and CEO of BBTV.

"Q4 2021 cash flow from operations was up over 41% year-over-year adding over $7 million to our balance sheet. The cash balance now stands at approximately $31 million. As we drive towards becoming a dominant Web3 platform, and we begin monetizing short-form video, we are confident we can not only drive profitability but also provide industry-leading solutions for creators making us the number one choice for top performing creators in the marketplace."

Subsequent to Quarter End

January's Plus Solutions revenue growth rate exceeded 60%, as a result of which the company believes that Q1 2022 is looking like a strong quarter for Plus Solutions.

Earlier this month the company announced key hires with the onboarding of Erich Lochner as SVP, Creator Partnerships to help further expand to platforms such as Instagram, TikTok and Facebook. Content Management is an important product in Plus Solutions, and appointed former Lionsgate executive Thomas Hughes to provide leadership to accelerate growth of this line of business.

In addition, they recently announced a partnership with ConsenSys, a leading Ethereum software company, to support BBTV's development of Web3 NFT solutions for content creators.

Q4 2021 Financial Highlights:

(1) These figures are derived from the Company's Annual Financial Statements and the financial statements filed for the periods ending in year 2021, which are presented in accordance with IFRS.

(2) The comparative prior period figures are first presented in accordance with IFRS and are subsequently adjusted to present on Pro-Forma Basis to include BBTV Corp. consolidated results as if the Business Combination Transaction had occurred on January 1, 2019. The comparative prior period figures with Pro-Forma Adjustments are non-GAAP financial measures. Further details on these measures are included in the "Key Metrics" section of this press release.

(1) These figures are derived from the Company's financial statements filed for the periods ending in year 2021, which are presented in accordance with IFRS.

Q4 2021 Operating KPIs:

(1) The figures for the quarterly periods ended in year 2021 are based on the Company's operational and financial results while the figures for the quarterly periods ended in year 2020 are presented on Pro-Forma Basis to include BBTV Corp. consolidated results as if the Business Combination Transaction had occurred on January 1, 2019.

Views are non-financial performance measures while RPMs are supplementary financial measures. Further details on these measures are included in the "Key Metrics" section of this press release.

• Adjusted Gross Profit, which is a non-GAAP financial measure and defined as Gross Profit excluding amortization associated with the purchase price allocation ("PPA") related to the initial public offering, for Q4 2021 was $10.4 million, a 9% decrease in comparison to $11.4 million reported for the same quarter last year. This was due to the decrease in revenue across Base Solutions.
  
  
• BBTV Share of revenue, which is a non-GAAP financial measure and defined as revenue less content creator and third-party platform fees, for Q4 2021 was $10.8 million, a 11% decrease compared to $12.1 million reported for Q4 2020.
  
  
• Adjusted Gross Margin, which is a non-GAAP ratio and defined as Adjusted Gross Profit divided by BBTV Share, was 95.9% for Q4 2021, compared to 94.4% reported for Q4 2020. Adjusted Gross Margin should remain stable and above 90% for the foreseeable future.
  
  
• Gross Margin excluding PPA amortization, which is a non-GAAP ratio and defined as Adjusted Gross Profit divided by revenue, was 7.5% in Q4 2021 in comparison to 7.6% in Q4 2020. Plus Solutions should help contribute to margin expansion further in future quarters.

In Q4 2021, about 20% of the company's views came from YouTube Shorts, which presents a significant upside for when that format becomes monetized, and they believe that this will begin soon. RPMs for monetizable content grew by 17% compared to Q4 last year.

The continued growth of the company's Base Solutions business alongside the changing consumption landscape presents opportunities for RPM growth as monetization continues to mature across all key platforms, according to the company.

While micro content like YouTube Shorts isn't monetized today, once it becomes monetized across the company's entire library, it could represent incremental revenue of over $90 million annually across their Base Solutions at current market rates, according to the company. 

Outlook:

Overall for the quarter, the company says it believes that it achieved solid Revenue and Adjusted EBITDA performance, both of which were within the range of analyst consensus, and their ending cash balance significantly beat consensus.

About BBTV

BBTV is a global media and technology company headquartered in Vancouver, Canada. The Company's mission is to help content creators become more successful. With creators ranging from individuals to global media brands, BBTV provides comprehensive, end-to-end Solutions to increase viewership and drive revenue powered by its innovative technology, while allowing creators to focus on their core competency - content creation.

In December 2021, BBTV had the fourth most unique monthly viewers among digital platforms with more than 600 million globally, who consumed more than 35 billion minutes of video content [1]. (www.bbtv.com )

[1] Calculations and classifications made by BBTV based on data from Comscore's "Top 12 Countries = December 2021 comScore Video Metrix Media Trend - Multi-Platform - Top 100 Video Properties Report"; Top 12 countries represent ~50% of world's digital population.

The Management Discussion and Analysis ("MD&A"), along with full financial statements are posted and available on SEDAR at www.sedar.com. All dollar amounts are expressed in Canadian currency and are in thousands of Canadian dollars except where otherwise indicated.

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Pro Forma Basis

The pro forma information and adjustments ("Pro-Forma Adjustment") contained herein combine the Company's financial results for the periods with results from BroadbandTV Corp. which was acquired by the Company on October 28, 2020 (the "Business Combination Transaction") as if the Business Combination Transaction had occurred on January 1, 2019 as well as adjustments for the effects of acquisition accounting, but does not include adjustments for costs related to integration activities, cost savings or synergies that might be achieved by the combined businesses.

Management believes that reviewing the Company's operating results by combining actual BBTV Holdings and pro-forma business combination results is useful for comparative purposes as well as in reaching conclusions regarding the overall operating performance of the Company, as the Business Combination Transaction contributed less than three months of results to the results of operations for the prior year ended December 31, 2020.

The sources of these pro-forma results are the Q4 2021 Financial Statements combined with the internal, unaudited financial information of the acquired business for the same periods. These pro-forma results are not specified, defined or determined under IFRS accounting rules. Pro-forma results presented are not necessarily indicative of what the Company's results would have been had BBTV Holdings completed the Business Combination Transaction on January 1, 2019, nor will the historical pro-forma results necessarily be indicative of future results. All pro-forma information or financial results with Pro-Forma Adjustment are non-GAAP financial measures. See also "Key Metrics" below for further information regarding the Company's non-GAAP and other financial measures.

Pro Forma Income Statement

(1) These figures are presented in accordance with IFRS and are based on the Company's Annual Financial Statements and the financial statements filed for the periods ending in year 2021.
(2) These figures are presented on Pro-Forma Basis to include BBTV Corp. consolidated results as if the Business Combination Transaction had occurred on January 1, 2019. The comparative prior period figures with Pro-Forma Adjustments are non-GAAP financial measures. Further details on these measures are included in the "Key Metrics" section of this press release
(3) The % changes are calculated based on the current period amounts minus the comparative Pro-Forma prior period amounts and then divided by the comparative Pro-Forma prior period amounts.

Adjusted EBITDA and Adjusted EBITDA Margin

(1) These figures are derived from the Company's Annual Financial Statements and the financial statements filed for the periods ending in year 2021, which are presented in accordance with IFRS.
(2) These figures are derived from the Company's Pro-Forma financial statements, which include BBTV Corp. consolidated results as if the Business Combination Transaction had occurred on January 1, 2019.
(3) Includes depreciation and amortization reported in cost of revenue and operating expenses for all periods.
(4) Adjusted EBITDA is a non-GAAP financial measure while Adjusted EBITDA Margin is a non-GAAP ratio. Further details on these measures are included in the "Key Metrics" section of this press release.

BBTV Share, Adjusted Gross Profit, and Adjusted Gross Margin

(1) These figures are derived from the Company's Annual Financial Statements and the financial statements filed for the periods ending in year 2021, which are presented in accordance with IFRS.
(2) These figures are derived from the Company's Pro-Forma financial statements, which include BBTV Corp. consolidated results as if the Business Combination Transaction had occurred on January 1, 2019.
(3) BBTV Share and Adjusted Gross Profit are non-GAAP financial measures while Adjusted Gross Margin is a non-GAAP ratio. Further details on these measures are included in the "Key Metrics" section of this press release.

Free Cash Flow

(1) These figures are derived from the Company's Annual Financial Statements and the financial statements filed for the periods ending in year 2021, which are presented in accordance with IFRS.
(2) These figures are derived from the Company's Pro-Forma financial statements, which include BBTV Corp. consolidated results as if the Business Combination Transaction had occurred on January 1, 2019.
(3)Free Cash Flow is a non-GAAP financial measure. Further details on this measure is included in the "Key Metrics" section of this press release.