investor overview - march 2014

Investor Overview

March 2014

The Science Behind Influence

FORWARD-LOOKING STATEMENTS

This presentation contains forward-looking statements. All statements other than statements of historical fact contained in this

presentation are forward-looking statements. These statements are only current predictions and are subject to known and unknown

risks, uncertainties, assumptions, and other factors that may cause our results or our industry’s actual results, levels of activity,

performance or achievements to be materially different from those anticipated by the forward-looking statements. These forward-

looking statements are subject to a number of risks, including those described under the heading “Risk Factors” in our periodic

reports filed with the U.S. Securities and Exchange Commission, including our Form 10-Q for the quarter ended September 30, 2013,

and in our future filings and reports with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2013. .

Moreover, new risks emerge periodically. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our

business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those

contained in any forward-looking statements we may make. Actual results could differ materially and adversely from those

anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of

future events. Except as required by law, we are under no duty to update or revise any of the forward-looking statements, whether

as a results of new information, future events or otherwise, after the date of this presentation.

In addition to the U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP financial

measures are in addition to, and not a substitute for or superior to measures of financial performance prepared in accordance with

U.S. GAAP. See Appendix for reconciliation between each non-GAAP measure and the most comparable GAAP measure.

This presentation contains statistical data that we obtained from industry publications and reports generated by third parties.

Although we believe that the publications and reports are reliable, we have not independently verified this statistical data.

©2014 YuMe. All rights reserved. 1

Overview



Yesterday



Today

One Screen at Primetime Multi-Screen Video All the Time


And it’s Happened Before –

Newspaper Web Yellow Pages &

Local Advertising Search


Media Strategy

Digital

Video Television

Reach & Frequency Data & Analytics

+


BRAND ADVERTISERS REVENUE

242

288

450

580

2010 2011 2012 2013

33% CAGR 42% CAGR

$51.9

$68.6

$116.7

$151.1

2010 2011 2012 2013

42% CAGR

$ IN MILLIONS

1 Global Online Video Advertising Platforms Market, Frost & Sullivan, 2013.

Massive brand advertising market disruption

Proprietary data sciences platform

Platform drives outstanding brand results

High growth with significant operating leverage


2012 2016

$15.1

VIDEO ADVERTISING

2

$ IN BILLIONS

$5.3


1 Magna Global, estimated 2012 global TV & digital ad spend, June 2013

2 Global Online Video Advertising Platforms Market, Frost & Sullivan, 2013.

TV

$193B1

$100B1

DIGITAL


3 Total by 2015, Strategy Analytics 2012

4 Shipped in 2015, IDC 2013

1 MagnaGlobal, 2012

2 Includes Internet & mobile devices

5 Total by 2015, DisplaySearch, 2011

0%

10%

20%

30%

40%

50%

60%

70%

80%

1995 2003 2012

Share of Time Spent1

TV DIGITAL

Smartphones3

2 Billion

Tablets Shipped4

332 Million

Connected TVs5

500 Million

Content

TV 1-5 Cable 5-500 Internet >10,000

Technology Data


Screen

Devices

per person

2000 2012


Data

Which screen should I target?

On which placements should my

ads run?

How do I find people

receptive to my message?

BRAND CHALLENGES


DELIVER EMBED

LEARN Placement

LEARN Audience

SOLUTION


1,500 Properties

200 Billion Data Points

PLACEMENT

SURVEY

Web

Connected TV

Tablet

Smartphone

Software


Real-Time Inventory Grading

257 Million Global Unique Viewers

1

PLACEMENT

DATA

f (x, y, z)

PQI Algorithm

BEST

BETTER

GOOD

1 May 2013


Brand

Segments

Machine Learning

Algorithm

Data Sciences


PQI Inventory

Brand Segments

AUDIENCE AMPLIFIER

More Efficient

Brand Spend

Reach

Spend

Television

18 ©2014 YuMe. All rights reserved.


16% TV Budget Shift to YuMe

Reaching Adults 35-54

Reach and Frequency Results 15.9 Million

YuMe

42.7 Million TV

Exclusive Online Reach 6M

Total Reach +14%

Cross Platform Reach +23%

Average Frequency +18%


1 Data from Nielsen Online Brand Effect (formerly Vizu Ad Catalyst)

Brand Awareness1

Overall CPG Brand Lift1

Purchase Intent1

71.2% 72.5% 7x

Norm

CONSUMER GOODS AUTOMOTIVE FINANCIAL ENTERTAINMENT TELECOM &

ELECTRONICS

Expand share of wallet

Expand global footprint

Pursue strategic acquisitions

Grow customer base



Tim Laehy CFO

Scot McLernon

Sales

Bryan Everett

Business Development

Ed Haslam

Marketing

Michael Hudes

Emerging Markets Paul Porrini

General Counsel

Ayyappan Sankaran CTO and Co-Founder

Jayant Kadambi CEO and Co-Founder

Frank Barbieri

Corporate Development

Financial Overview



Proven Business Model Demonstrated growth and profitability

Blending technology and media

Operational Leverage Utilizing inventory quality scoring (PQI)

Technology, data & scale provide enhanced results

R&D Advantage Strong & efficient R&D operations

India-based technology development center

Strong Growth More advertisers spending more over time

42% revenue CAGR (2010-13)

Large Attractive Market Dramatic shift in TV viewing patterns

Capturing the shift of ad dollars from TV to digital video


$11.5 $13.6

$15.0

$28.4

$20.1

$25.2 $26.0

$45.5

$26.6

$34.3 $36.2

$54.0

Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13

$51.9

$68.6

$116.7

$151.1

2010 2011 2012 2013

ANNUAL REVENUE $ IN MILLIONS

QUARTERLY REVENUE $ IN MILLIONS


TOTAL ADVERTISERS REVENUE FROM

TOP 20 ADVERTISERS $ IN MILLIONS

242

288

449

580

2010 2011 2012 2013

$26.9

$37.2

$58.6 $61.9

2010 2011 2012 2013

REVENUE PER ADVERTISER $ IN 000s

$213

$237

$257 $255

2010 2011 2012 2013


ANNUAL GROSS PROFIT $ IN MILLIONS

GROSS MARGIN

QUARTERLY GROSS MARGIN

3.1% (10.8%) 10.1%

ANNUAL ADJUSTED EBITDA1 $ IN MILLIONS

Proved

Model

Investment PQI

Rollout

1 See Appendix for a reconciliation of adjusted EBITA to net income (loss)

37.6% 46.0% 46.9%

$25.8

$53.8

$70.9

2011 2012 2013

ADJUSTED EBITDA MARGIN

-10.8% 10.1% 5.9%

($7.4)

$11.8

$9.0

2011 2012 2013

34.3%

40.2%

42.8%

45.8%

44.6%

48.4%

45.3% 45.6%

47.5% 48.1%

Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13

PQI Rollout


1 GAAP-based, except adjusted EBITDA

2 Target model assumes stock-based compensation and depreciation and amortization expense of 5%-6% of revenue

Target Model 2

46%-48%

17%-18%

9%-10%

5%-6%

18%-22%

% of Revenue 1

FY 2011 FY 2012 FY 2013

Gross Profit 38% 46% 47%

Sales & Marketing 34% 27% 31%

General & Administration 15% 11% 12%

Research & Development 4% 2% 3%

Adjusted EBITDA 2

(11%) 10% 6%

In Conclusion


APPENDIX


(in thousands) 2010 2011 2012 2013

Net income (loss) $ (366) $ (11,089)

$ 6,266

$ 321

Plus Adjustments:

Interest expense $ 54

$ 164

$ 117

$ 47

Income tax expense $ 111

$ (62)

$ 612

$ 670

Depreciation &

amortization expense

$ 926

$ 2,097

$ 2,783

$ 4,103

Stock based comp

expense

$ 860

$ 1,468

$ 2,042

$ 3,834

Total Adjustments $ 1,951

$ 3,667

$ 5,554

$ 8,654

Adjusted EBITDA $ 1,585 $ (7,422) $ 11,820 $ 8,975


investor overview - march 2014

Investor Relations

statements of historical

nongaap measure

gaap financials

statistical data

comparable gaap measure

industrys actual results

new risks

results of new information