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First quarter report 2015
First quarter report
2015
First quarter report 2015
2
Contents
Selected Highlights _________________________________________________________ 3
Q1 2015 in Brief ___________________________________________________________ 5
Financial development summary ______________________________________________ 7
Condensed Financial Report _________________________________________________ 9
Cxense – the business _____________________________________________________ 12
Interim financial statements _________________________________________________ 15
Notes to the consolidated financial statements __________________________________ 19
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Selected Highlights
Strong order intake with 31 new contracts signed in Q1 2015 with full quarterly revenue effect of USD 0.37 million, a 72% increase as compared to Q1 2014.
Record new recurring license revenue of USD 0.45 million in Q1 2015 with an annualized effect of USD 1.8 million. This represents a growth of 67% as compared to USD 0.28 million in Q4 2014. As in the previous quarter, the Cxense DMP (Data Management Platform) continues to drive new revenue growth.
The premium publishers have historically represented the main client segment. Cxense is now also expanding into additional “verticals” such as broadcast and banking and finance, in which we signed our first customer, Commercial Bank of Dubai, in Q1 2015.
Q1 2015 reported SaaS segment revenue had reached USD 3.3 million, while currency-adjusted revenue was USD 3.8 million.
Currency-adjusted revenue for the consolidated business was USD 4.4 million in Q1 2015, representing an annualized revenue run rate of USD 17.6 million.
The SaaS segment EBITDA improved 56% from USD -3.5 million in Q4 2014 to USD -1.5 million in Q1 2015. The significant EBITDA improvement primarily came as a result of the streamlining of the organization in Q4 2014.
The gross margin remains high at 84% for Q1 2015, the same level as in Q4 2014. Cxense has a goal of keeping the gross margin above the 80% level.
The churn in Q1 2015 was USD 0.42 million, which was above the average churn rate in 2014; primarily due to churn from acquired customer base. The churn is expected to decline for the coming three quarters.
Following the Q1 2015 private placement and subsequent offering, the company had a cash position of USD 8.3 million by the end of the quarter.
“Q1 2015 was another strong quarter for Cxense, with new revenue at an all-time high. The Cxense DMP (Data
Management Platform) showed strength with major wins across our sales regions, and Cxense is clearly building
a unique position as one of the few holistic players within the industry. There is a data trend in the market, and we
see increased focus and demand for our software-as-a service (SaaS) solutions from new market verticals, such
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as broadcast and the banking and finance sector. We signed a contract with the Commercial Bank of Dubai in the
quarter, giving strength to our customer portfolio in this sector. Cxense continues to be committed to serving the
premium publisher segment with our cloud-based software, and our view is that larger enterprises are becoming
digital publishers in their own right, as their need to improve communication with customers across digital devices
expands. Cxense has the software that enables these businesses to offer a better user experience across mobile,
tablet, and desktop devices resulting in higher customer engagement and conversion rates. We expect to sign
more contracts within new verticals in coming quarters.
Cxense experienced an above-average churn rate in Q1 2015. The churn for the year has been front-loaded and
is expected to normalize in Q2 2015. While the majority of the churn was from the customer portfolio acquired in
Q4 2013, it is important to note that we also continue to upsell Cxense products into this portfolio.
Cxense is experiencing strong growth for its services, and we are confident that our offering is well positioned to
meet market demands. The strong new sales in Q1 2015 are a proof of that.”
Ståle Bjørnstad, CEO Cxense ASA
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Q1 2015 in Brief
The SaaS (software-as-a-service) revenue model represents a predictable revenue stream for Cxense ASA.
Contracts are normally signed for 12 months with auto renewal, promoting long-term relationships with customers.
Cxense signed 31 new contracts in the quarter, nearly matching the Q4 2014 record of 34, and well above the
average of 25 contracts per quarter for the period year-to-September 2014. EMEA continues to be a strong
performer, with 14 new contracts in the quarter. In all our regions, there was a mix of upsell to the existing client
base and contracts with new clients. Customers like Hearst, Nikkei/BP, AEON Link in Japan; Eniro Group,
Bonnier Publications, Editorial Prensa Iberica in EMEA; MTV Viacom, TyC Sports in LatAm; and New York Media
and Mike Moran Group in North America signed contracts with Cxense in the quarter. Strong demand continues
for the Cxense DMP (Data Management Platform) solution, and close to 40% of the total new recurring revenue in
the quarter was DMP-related sales.
Cxense added USD 0.45 million of new recurring revenue in Q1 2015, a 62% growth as compared to Q4 2014.
The significant uplift in the new recurring revenue in the quarter was a combination of a strong inflow of contracts
in Q4 2014, with invoicing starting in Q1 2015, and continued strong demand for Cxense solutions in Q1 2015.
The streamlining of the organization in Q4 2014 resulted in more sales people in front of the clients, and this is
starting to pay off with increased sales momentum.
The growth is mainly driven by an
overall improvement in sales
efficiency, where sales cycles are
reduced as our brand becomes
recognized in the market, and our
sales people gain more experience.
In addition, there are positive
effects from streamlining the
Cxense organization where internal
resources are allocated quicker and
more efficiently to ongoing projects.
There also continues to be a very
good reception for the Cxense
DMP solution, both within the
media vertical and in other market
sectors.
Data is increasingly becoming a
focus in a growing number of
industries, where customers need
to improve their management and
use of vast amounts of user and
customer data. The Cxense DMP is
well positioned to capture its fair
share of this market growth.
Historically, premium publishers
and media companies have been the most important market segment for Cxense. Now the Company is
broadening its market reach into other segments such as broadcast, banking and finance, and companies within
branded goods. As a common denominator, they all need increased insight into their online customer bases, both
to provide a better customer experience and to drive targeted marketing towards these customers. Cxense is able
to significantly increase editorial and customer insight and to provide marketing and communication solutions,
enabling companies to take action towards specific customer segments. This targeted marketing happens both
through online campaigns and via email marketing.
Cxense has over the last quarters started the move into new verticals such as Bank & Finance and Consumer
Brands. The company announced a contract with the Commercial Bank of Dubai in February 2015.
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The Commercial Bank of Dubai uses Cxense technology to create a personalized customer experience, both for
anonymous users and registered users who log-in. The contract represents a solid breakthrough for Cxense’s
technology and software solutions in new markets.
The company experienced churn of USD 0.42 million in Q1 2015, which was significantly above the quarterly
average for 2014. A significant part of the Q1 2015 churn came from the portfolio acquired in November 2013. We
expect less churn from the acquired portfolio over the next quarters. The churn potential in the acquired portfolio
has now also been reduced as the acquired portfolio accounted for only 30% of SaaS segment revenues in Q1
2015 as compared to 55% in Q1 2014.
Cxense launched a cost program in November 2014 by reducing overlapping functions, and had a goal of
reducing the operating cost by more than 20%. By March 2015, more than 80% of the cost cut effect had been
realized, and Cxense is thus in line with previously announced targets. When the cost program is fully realized,
the operating cost base is expected to be USD 1.5 million per month, compared to USD 1.9 million before the
program was implemented. The streamlining of the cost structure has also led to a more-effective organization
with a greater ability to adapt to client needs.
In Q1 2015, Cxense opened its third data center (in Tokyo, Japan), providing Asian Cxense customers with low-
latency services, and customers globally with maximum redundancy and fault tolerance. Furthermore, Cxense
also modernized the Cxense Insight user interface and released Mobile SDKs (Software Development Kits) for
native apps. The SDKs speed up integration with mobile apps, which are making up an increasingly larger part of
end-user content consumption.
Cxense launched an “Out-of-the box” DMP integration with Cxense Display and added native support for 3-D ads
enabling customers to point and click to book 3-D campaigns. Furthermore, integrating the Cxense DMP with 3rd
party ad servers, such as Google DFP and OAS, is now a very easy point-and-click exercise. Cxense customers
can now use the full power of the Cxense DMP, with all advanced user segment and targeting features, while
using the 3rd
-party ad server for ad delivery.
QUARTERLY REVENUE DEVELOPMENT BREAK-DOWN
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Financial development summary
Q2 2013 cont’d and quarters thereafter exclude the discontinued operations of PPN AG. All other
quarters are presented including PPN AG. Segment notes in the financial reports published after the
PPN divestment are re-stated with figures for continuing operations.
Cost of sales is presented net of the elimination differences.
Emediate is included in Q4 2013 with the months of November and December, i.e. not a full quarter, as
the effective date for the acquisition was November 1. For Q1 2014 and onwards Emediate is
consolidated with normal full quarterly effect.
USD 1,000 Q1 2013 Q2 2013
Q2 2013
cont'd.
Qtr 3
2013
Qtr 4
2013 excl.
Emediate
Qtr 4
2013 incl.
Emediate
Nov & Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS IFRS
SaaS segment
Revenues total 840 993 993 1 090 1 314 2 650 3 568 3 442 3 530 3 591 3 301
Cost of sales 146 203 203 179 244 501 644 646 666 565 532
Gross profit 694 790 790 911 1 070 2 149 2 924 2 797 2 864 3 025 2 769
Gross magin % 83 % 80 % 80 % 84 % 81 % 81 % 82 % 81 % 81 % 84 % 84 %
Personnel 1 790 1 832 1 832 1 833 2 383 2 935 3 055 3 861 4 034 4 487 2 802
Other OPEX 676 802 802 643 1 580 1 849 1 662 3 685 1 635 2 034 1 462
OPEX 2 466 2 633 2 633 2 476 3 963 4 784 4 717 7 546 5 669 6 521 4 264
EBITDA -1 772 -1 844 -1 844 -1 565 -2 893 -2 635 -1 793 -4 750 -2 805 -3 496 -1 495
NON-IFRS adjustment of OPEX level:
Share based payment costs - - 137 136 121
Share based social costs provision - - - 76 -
Salary and social restrucutring provisions and costs - - - 345 -
Office moving costs and restructuring costs - - 57 68 -
Extraordinary/special - 40 50 496 -
One-off provision for doubtful debt - 200 -130 210 -
Transaction costs 436 436 - 1 607 -189 -419 -
R&D refund - - - -228 -
Total reported OPEX adjustment items 436 436 - 1 847 -75 684 121
Estimated full effect of cost reduction program 1 299 176
EBITDA Adjusted -1 772 -1 844 -1 844 -1 565 -2 457 -2 199 -1 793 -2 903 -2 880 -1 512 -1 199
Capitalized operating expense -450
EBITDA Adjusted with Capitalization add back -1 772 -1 844 -1 844 -1 565 -2 457 -2 199 -1 793 -2 903 -2 880 -1 512 -1 649
PCAN segment
Revenues total 1 375 1 534 547 685 634 634 672 750 672 619 619
Cost of Goods Sold 1 390 1 263 487 523 450 450 502 560 509 474 472
Gross profit -15 272 60 162 184 184 170 190 163 145 148
Gross magin % -1 % 18 % 11 % 24 % 29 % 29 % 25 % 25 % 24 % 23 % 24 %
Personnel 238 291 124 109 107 107 145 157 154 146 116
Other OPEX 97 129 73 35 78 78 84 76 88 89 86
OPEX 335 419 196 144 185 185 229 233 242 235 203
EBITDA -350 -148 -137 18 -1 -1 -59 -43 -79 -89 -55
GROUP
Revenues all segments 2 215 2 527 1 540 1 775 1 948 3 284 4 240 4 193 4 202 4 210 3 920
Intra-segment eliminations -110 -126 -40 -67 -72 -72 -66 -78 -62 -58 -39
Revenues consolidated 2 105 2 401 1 500 1 708 1 876 3 212 4 174 4 115 4 140 4 152 3 881
EBITDA -2 122 -1 991 -1 980 -1 547 -2 894 -2 636 -1 852 -4 793 -2 875 -3 585 -1 550
NON-IFRS adjustment of OPEX level:
Total reported OPEX adjustment items 436 - 1 847 -75 684 121
Estimated full effect of cost reduction program 1 299 176
EBITDA Adjusted -2 122 -1 991 -1 980 -1 547 -2 894 -2 200 -1 852 -2 946 -2 950 -1 602 -1 253
Capitalized operating expense -450
EBITDA Adjusted with Capitalization add back -2 122 -1 991 -1 980 -1 547 -2 894 -2 200 -1 852 -2 946 -2 950 -1 602 -1 703
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Share based payments costs and share based social costs provision relates to calculated cost effect of
share options and subscription rights granted by the BoD to the employees, calculated according to
IFRS 2.
Transaction costs in Q4 2013 include cost to lawyers and financial advisors that performed due-diligence
and general advisory services in connection with the acquisition of Emediate. (Transactions costs related
to the share issue financing the acquisition are booked against other paid in capital and therefore visible
in the consolidated statement of changes in equity, i.e. not in the profit and loss statement) Transaction
costs in Q2 2014 relates to the IPO of Cxense including VAT. Transaction costs in Q3 2014 (negative
costs) relates to VAT refund on IPO costs booked in Q2 2014. Transaction costs in Q4 2014 (negative
costs) relates to re-booking of some of the IPO costs against equity following the final settlement of
advisor costs and VAT calculations.
Office relocation and restructuring costs mentioned under other OPEX in Q3 2014 relates to inter-city re-
location of the offices in Copenhagen and Melbourne. The corresponding Q4 2014 costs relates to rent
provisions for 6 months of rent of the Copenhagen office following the cost reduction program.
Extraordinary / special in Q2 and Q3 2014 relates to one off advisory fees. Extraordinary and special in
Q4 2014 relates to: Write-downs related to the Emediate / Copenhagen re-structuring and office close
down, due diligence fees and cost provisions for a new invoicing tool for the Emediate portfolio following
the restructuring.
The one-off receivable loss provision booked in Q2 2014 of USD 0.20 million was reversed by USD 0.13
million in Q3 2014 due to successful debt negotiations. The one-off receivable loss provision in Q4 2014
relates to a general increase in loss provisions following a year-end assessment.
The adjusted EBITDA is EBITDA adjusted for all other OPEX listed on the “where of lines”. The EBITDA
adjusted for full effect of cost reduction program: This EBITDA level is also adjusted for costs incurred in
Q4 2014 on employees that are no longer part of the Cxense organization when the ongoing cost
program has been completed.
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Condensed Financial Report
Q1 2015 Group revenue amounted to USD 3.88 million, a change of USD -0.29 million compared to Q1 2014
revenues of USD 4.17 million. The change of USD -0.29 million can be explained by new software license
revenue of USD 1.16 million, lost software license revenue of USD -0.82 million, reduction in other revenue of
USD – 0.11 million and a negative currency effect of USD -0.52 million.
The new license revenue of USD 1.16 million represents a gross YoY increase of 28% over the Q1 2014 revenue
level of USD 4.17 million. 62% of the new license revenue relates to the last two quarters of the one-year period,
which proves and increasing sales efficiency throughout the year.
Lost license revenue contributed to a gross decrease of 20%. 40% or USD -0.33 million of the total effect from
lost license revenue of USD -0.82 million related to the loss of one single large customer in the acquired Emediate
customer portfolio. Adjusted for the loss of this single customer the effect from lost license revenue was USD -
0.49 million (12%).
The significant negative revenue currency effect of USD -0.52 million relates to the appreciation of the USD
versus other currencies. The Company reports revenues in USD, but the software license contracts are
predominantly settled in a mix of other currencies. Only about 15% of software license contracts are settled in
USD. A strong USD appreciation versus all other currencies therefore leads to revenue decrease measured in
USD.
The Cxense Group has two business segments: Cxense Software-as-a-Service (SaaS) and Cxense Publisher
Controlled Advertising Networks (PCAN). The Q1 2015 revenue from the SaaS Segment was USD 3.26 million
for external customers and inter-segment revenue from the SaaS segment was USD 39 thousand. The SaaS
segment revenues relates predominantly to sales of recurring software licenses and some implementation
services. Revenue from the PCAN segment was USD 0.62 million, which comes from sale of online advertising.
The Q1 2015 group cost of sales amounted to USD 0.97 million, compared to USD 1.08 million in Q1 2014. The
SaaS Segment cost of sales for Q1 2015 was USD 0.53 million, while the PCAN segment cost of sales was USD
0.47 million. Cost of sales within the SaaS segment predominantly relates to the hosting of the software
applications used by our customers. Cost of sales within the PCAN segment relates to revenue share paid to
publishers providing their advertising space, as well as agency commission paid to advertising agencies. The Q1
2015 gross margin for the SaaS segment 84% compared to 82% in Q1 2014. The Q1 2015 PCAN segment gross
margin was 24% compared to 25% in Q1 2014.
The Q1 2015 employee benefit expenses were USD 2.92 million, compared to USD 3.2 million in Q1 2014 and
compared to USD 4.63 million in Q4 2014. The large cost reduction from Q4 2014 to Q1 2015 relates to the
streamlining of the organization in Q4 2014 as well as the capitalization of employee benefit expenses related
software development activities of USD 0.32 million in Q1 2015.
Through the organizational streamlining in Q4 2014 the Cxense SaaS segment reduced staffing from 118 to 95
during. This staffing level was maintained during Q1 2015 and at the end of Q1 2015 there were 95 employees in
the SaaS segment. Of these, 39 work within the R&D organization, 34 work within Sales & Marketing, whereof 27
within front-end sales, 16 work within Operations, and 6 within Management, finance & admin.
Other operating expenses amounted to USD 1.55 million in Q1 2015 compared to USD 1.75 million in Q1 2014
and USD 2.12 million in Q4 2014. The majority of the expenses are related to travel, marketing and external
consulting (audit, legal and other). The significant reduction in other operating expenses relates to the
organizational streamlining done in Q4 2014 as well as the capitalization other operating expenses of USD 0.13
million in Q1 2015 related to software development activities.
Q1 2015 is the first quarters were Cxense has capitalized personnel benefit expenses and other operating
expenses related to software development activities. The Cxense 2013 and 2014 Annual Reports were presented
according to IFRS, but in these two reports costs related to Development were not capitalized based on the
rational that the Research, Development and Maintenance activities were integrated and the associated costs
thereto were not separable.
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In the period from Cxense foundation in 2010 until year-end 2014, the company R&D department has grown and
R&D has been organized into departments and areas with more separable tasks and deliverables. Thus from
2015 Cxense has decided that Development activities are separable from Research and Maintenance and that
the Development costs should be estimated separately and capitalized and not expensed as incurred like for the
years 2013 and 2014.
The following criteria are used to assess whether capitalization costs should be capitalized:
Costs related to Research shall not be capitalized
Costs related to Software Maintenance shall not be capitalized
Costs related to Development shall be capitalized when they meet the following capitalization criteria:
o Development costs are separable from Research and Maintenance costs.
o The Developed software / software feature has a future revenue or cost saving potential.
o The Company has the right to use the developed software / software feature (e.g. owns the
IPR.
The Q1 2015 EBITDA was USD -1.55 million compared to USD – 1.85 million in Q1 2014 and USD -3.59 million
in Q4 2014.
The depreciation and amortization in Q1 2015 were USD 0.36 million thousand, compared to USD 0.31 million in
Q1 2014. This increase in depreciation and amortization in Q1 2015 compared to Q1 2014 is attributable to
depreciation of hosting cost investments in second half of 2014.
The Q1 2015 goodwill that relates to the Emediate acquisition was USD 3.8 million, the same amount as at Q1
2014.
Excluding the excess value and goodwill from the Emediate-acquisition, the group has limited intangible assets.
The large distributed cloud-based systems operated by the Company are predominantly hosted on platforms
leased by large reputable hosting suppliers and thus do not lead to investments in fixed assets. However, in Q3
2014 Cxense invested USD 0.29 million in owned hosting infrastructure with an estimated monthly saving
compared to the leased solution being replaced of USD 32 thousand from Q4 2014.
The Finance income in Q1 2015 was USD 96 thousand largely relating to interest earned on bank deposits arising
from share issue proceeds. Finance income in Q1 2014 was USD 26 thousand. Finance expenses, mostly
relating to currency expenses, amounted to USD 85 thousand in Q1 2015 and USD 9 thousand in Q1 2014.
Income tax expense for Q1 2015 was USD 7 thousand compared to USD 64 thousand in Q1 2014. In general the
income tax expense arises in the Cxense SaaS subsidiaries in USA, Japan and Australia that perform Sales &
Marketing and Research & Development activities for the parent company based on inter-company agreements
(with arm’s length pricing principles).
The group net loss from continuing operations amounted to USD 1.89 million in Q1 2015, compared to USD 2.09
million in Q1 2014 and USD 4.13 million in Q4 2014. This represents a Q1 2015 loss of USD 0.005 per share,
compared to a loss of USD 0.12 per share in Q1 2014. There was conducted a 1/200 share split in Q2 2014.
Total assets at the end of Q1 2015 amounted to USD 20.9 million compared to USD 20.7 million at Q1 2014.
Trade receivables stood at USD 2.12 million equal to 49 days of inventory1) at the end of Q1 2015, compared to
USD 2.72 million (59 days) at the end of Q1 2014.
The Q1 2015 cash position amounted to USD 8.29 million compared to USD 5.94 million at the end of Q1 2014
and USD 2.83 million at the end of Q4 2014. In Q1 2015 the company conducted a private placement and a
subsequent offering of combined 700.000 new shares, each subscribed at a price of NOK 100 per share. The
1 Days = Receivables / Quarterly revenues * 90 days
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share issues gross proceeds were USD 9.18 million. Transaction costs of USD 0.55 million were booked to equity
and are presented in the consolidated statement of changes in equity.
Total current liabilities at the end of Q1 2015 were USD 4.78 million compared to USD 4.95 million at Q1 2014.
Net cash flow used in operating activities was USD 2.76 million in Q1 2015, compared to USD 2.86 million in Q1
2015 and USD 2.26 in Q4 2014. In Q1 2015 cash flow used in operating activities was significantly higher than
the Q1 2015 EBITDA. This is explained by significant accrued costs and trade payables at the end of Q4 2014
that were paid during Q1 2015. In Q4 2014 we saw the opposite effect where cash flow from operations was
significantly better than reported EBITDA. The accrued costs in Q4 2014 relate mostly to the organizational
streamlining done in Q4 2014 were provisions were made for costs with later payments following lay-offs.
Currency translation effects also affected the Q1 2015 cash flow from operations negatively. By the end of Q1
2015 the estimated monthly group cash “burn-rate” was USD -0.55 million per month.
Q1 2015 investment in intangible assets was USD 0.41 million compared to 0 in Q1 2014. This change relates to
capitalization of development expenses
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Cxense – the business
The businesses that succeed online are those that deliver the most relevant and engaging content, advertising,
and search results to their audience. These are exactly the capabilities Cxense offers its customers. Through
sophisticated, real-time data analysis and cutting-edge content delivery solutions, Cxense knows what people
want online and have the ability to deliver that content seamlessly. Websites and mobile apps using Cxense
technology appear tailor-made for every single site visitor.
On behalf of customers, Cxense holds anonymous user profiles for well over half a billion users around the world.
All of these profiles are updated in real-time. They drive the decisions on whether to show a story about conflict in
the Middle East or Justin Bieber; whether to promote a new mobile phone or mortgage rates; whether to promote
a basic digital subscription or an upsell.
Cxense customers drive more e-commerce sales, higher digital subscription rates, higher advertising response
rates, and higher consumer loyalty, because the stories, products, videos and subscriptions they promote match
the individual user's interests, and the context that person is in at that particular moment. Consumers get more
interesting sites, advertisers get higher sales, and site-owners get more traffic and revenue. Everyone is a winner.
Cxense solutions are provided as SaaS (Software-as-a-Service) services with monthly recurring subscription
license fees, as well as additional royalty payments dependent on advertising volume and transaction levels. In
addition, Cxense charges implementation fees and consultancy services amounting to 5-10% of revenues in each
quarter. The sale of SaaS applications is reported in the Cxense SaaS business area and represents the
Company’s core business.
Cxense is a global company headquartered in Oslo, Norway, with offices in Buenos Aires, London, Madrid,
Melbourne, Miami, New York, Rio de Janeiro, San Francisco, Singapore, Stockholm, Tokyo, and Zurich.
Customers include Dow Jones/Wall Street Journal, Hearst, Globo, Grupo Clarin, AEON, DMM, Rakuten,
Singapore Press Holdings, South China Morning Post, Amedia, Bonnier, Polaris Media, TV2, and many more.
For more information visit www.cxense.com or follow @Cxense on Twitter. Cxense is listed on the Oslo Stock
Exchange with the ticker CXENSE.
The EIE™ (Extraordinary Insight Engine™)
Cxense built the Extraordinary Insight EngineTM
(EIE) for real-time analysis of content, user context, and user
data, including 1st and 3
rd party data. The EIE is fully integrated with a range of applications (Cxense Advertising,
Insight, DMP, Content, and Search), which are used by Cxense customers to increase advertising revenue, user
engagement, conversions to digital subscriptions and product sales.
The EIE analyses the behaviour of more than 500 million Internet users, detects their location and devices, and
deduces their interest and intent, among others data points. The EIE gives Cxense’s customers a 360-degree
view of their online users.
The EIE technology has several unique aspects. It is end-to-end real time: From data capture, through data
processing, to actionable data output. It is also mobile optimized through its scalable, low bandwidth user profiling
methodologies, which do not rely on 3rd
party cookies. With highly flexible APIs, the EIE can power any
application and make it context aware.
It employs unique behavioural, contextual, collaborative and semantic processing - making user and content
insight actionable in real time.
Cxense Advertising
Cxense Advertising provides businesses with the most targeted advertising solution on the market. Media
companies choose Cxense Advertising so they can deliver the most relevant advertising and promotions to their
users. This improves the user experience on their sites, boosts the effectiveness of the ads they serve and
increases the price at which they can sell their inventory. The Advertising solution offers multiple cost models
(cost-per-click, cost-per-impression and cost-per-action basis), works cross device (computer, tablet and mobile)
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and with every advertising format (text, image and video/rich media, mobile). Cxense Advertising can be
combined with other Cxense solutions for advanced promotion of digital subscriptions and for mixing targeted
advertising with relevant content (native advertising).
Cxense Insight
Cxense Insight provides businesses with powerful insight into their online audience. Through a real time
visualization of how an audience interacts with websites, mobile sites and mobile apps, Cxense customers can
make decisions on which content to promote, which audience to target, how to grow their user base and how to
monetise their assets. Cxense customers monitor and customize dashboards to suit their needs for traffic
patterns, audience interests, demographics, content popularity and first party data across a single site or a
network of sites.
Cxense Content
Cxense Content is used for content optimization and personalization on selected sections of a site or on the
complete site. By providing a personalized and more relevant experience to each user, businesses achieve
increasing site traffic, readership and dwell time.
Cxense Data Management Platform (DMP)
The Cxense DMP gathers data in real time across mobile, tablet and desktop devices and combines this with 1st
and 3rd party data, such as age, gender and subscriber information. It analyses the combined data, develops
individual user profiles and creates useful audience segments, which can be used across customer sites and
multi-channel marketing plans.
The Cxense DMP can be set up to integrate with Cxense customers’ CRM systems to enable highly effective
targeted marketing campaigns, understanding of digital subscription conversion patterns as well as a deep
understanding of individual customer needs.
Out of the box integrations with Cxense solutions such as Cxense Advertising and Cxense Content, as well as
with other industry leading advertising products such as Google DFP, make the DMP extremely easy to use.
Cxense Search
Cxense Search is a cloud-based and easy to implement enterprise search application. It represents a very
affordable, top quality, low maintenance, enterprise search solution for online companies. It is easy to integrate
with other Cxense applications, and it offers unique personalization and advertising monetization opportunities for
the search results pages.
Privacy and Transparency
Cxense is fully aware that the type of technology and services the Company provides has the potential to conflict
with the interests of end users, if used inappropriately. Therefore, Cxense is committed to safeguarding its
services and only providing them in a way that improves the end-user experience, and takes the end user’s
privacy fully into account. This is conducted in collaboration with Cxense customers, the data owners.
Cxense has a clearly stated Privacy Policy and is required to conform to the European Union’s Data Protection
Directive (Directive 95/46/EC, which is also embodied in the US Safe Harbour Privacy Principles of Notice,
Choice, Onward Transfer, Security, Data Integrity, Access and Enforcement, and Safe Harbour Policies). Cxense
regularly reviews its operations in order to be in compliance in view of this Directive.
Hosting and SaaS operations
Cxense delivers its software-as-a-service from scalable outsourced data centres in both USA and Europe. The
Cxense software solutions are based on distributed software architecture making them data centre agnostic –
thus hosting capacity can be purchased choosing between several reputable providers at a market price. With the
Emediate acquisition in 2013, Cxense also got additional data centres hosting most of the Emediate advertising
business.
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The PCAN business segment
Cxense has also helped establish several Publisher-Controlled Advertising Networks (PCANs). The PCANs act
as a publisher-controlled broker between the advertisers and the publishers, distributing and sharing the
advertising revenues generated in the network with the publishers. Cxense is an advertising technology provider
to the PCANs and charges a fee based on the PCAN revenues, thus aligning the interest of Cxense and its
customers. In Spain, the Company has retained a 51% ownership interest, and because of its majority ownership,
this PCAN is consolidated into the Group accounts, and it is reported in the Cxense PCAN business area.
First quarter report 2015
15
Interim financial statements
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
USD 1,000 Note
Q1 ended 31
Mar 2015
Q1 ended 31
Mar 2014
Year Ended
31
December
2014
Continuing operations:
Revenue 3 3 881 4 173 16 580
Operating expense
Cost of goods sold 3 965 1 080 4 301
Employee benefit expense 4 2 918 3 200 16 039
Depreciation & Amortisation expense 358 313 1 333
Other operating expense 5 1 548 1 746 9 352
Total operating expense 5 789 6 338 31 026
Net operating income/(loss) (1 908) (2 165) (14 446)
Financial income and expense
Finance income 96 26 541
Finance expense (85) (9) (382)
Net financial income/(expense) 11 17 159
Net income/(loss) before taxes (1 896) (2 148) (14 287)
Income tax expense (7) (64) 110
Net income/(loss) for the period from continuing
operations (1 890) (2 085) (14 397)
Discontinued operations
Net income/(loss) for the period from discontinuing
operations 0 0 0
Total net income/(loss) for the period (1 890) (2 085) (14 397)
Net income/(loss) attributable to:
Owners of the Company (1 864) (2 056) (14 266)
Non-controlling interests (25) (28) (131)
Earnings per share:
Basic and diluted 6 (0,0005) (0,12) (0,00)
Statement of comprehensive income
Net income/(loss) for the period (1 890) (2 085) (14 397)
Other comprehensive income:
- Currency translation differences 650 (343) 3 473
Total comprehensive income/(loss) (1 239) (2 427) (10 923)
Total comprehensive income/(loss) attributable to:
Owners of the Company (1 214) (2 056) (10 793)
Non-controlling interests (25) (28) (131)
First quarter report 2015
16
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
USD 1,000 Note
As at 31 Mar
2015
As at 31 Mar
2014
As at 31 Dec
2014
Assets
Non-current assets
Goodwill 3 807 3 807 3 807
Deferred tax asset 34 49 35
Intangible assets 4 434 5 337 4 309
Office machinery, equipment,etc. 400 279 483
Other financial assets 173 48 197
Total non-current assets 8 847 9 519 8 829
Current assets
Trade receivables 7 2 120 2 931 2 150
Other short-term assets 8 1 641 2 332 1 827
Cash and cash equivalents 8 291 5 936 2 828
Total current assets 12 051 11 199 6 805
Assets classified as " held for sale" 0 0 0
Total assets 20 898 20 718 15 635
Equity and liabilities
Equity
Share capital 9 2 708 2 764 2 477
Own shares - - -
Other paid in capital 14 334 14 991 18 170
Currency translation differences 4 888 421 4 238
Retained earnings (5 887) (2 742) (15 097)
Equity attributable to the holders of the Company 16 044 15 435 9 788
Non-controlling interest (428) (300) (403)
Total equity 15 616 15 135 9 385
Liabilities
Non-current liabilities
Deferred tax liabilities 507 633 480
Total non-current liabilities 507 633 480
Current liabilities
Trade payables 1 100 1 112 1 454
Current taxes 77 58 119
Other short-term liabilities 11 3 597 3 780 4 196
Total current liabilities 4 775 4 950 5 770
Liabilities related to assets "held for sale" 0 0 0
Total liabilities 5 282 5 583 6 250
Total equity and liabilities 20 898 20 718 15 635
First quarter report 2015
17
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
USD 1,000
Nominal
share capital
Own
shares
Other paid in
capital
Currency
translation
differences
Retained
earnings
Attributable
to owners of
parent
company
Non
Controlling
interest
Total
equity
Total equity as at 1 January 2015 2 477 0 18 170 4 238 (15 097) 9 788 (403) 9 385
Profit for the period (1 864) (1 864) (25) (1 890)
Other comprehensive income 650 650 650
Total comprehensive income/(loss) for YTD 2015 0 0 0 650 (1 864) (1 214) (25) (1 239)
Reduction of paid in-capital 0 0 0 0 0 0 0 0
Transaction costs 0 0 (553) 0 0 (553) 0 (553)
Share- based payments 0 0 116 0 0 116 0 116
Increase in share capital 459 0 8 718 0 0 9 177 0 9 177
Purhcase own shares 0 0 0 0 0 0 0 0
Reclassification of equity 0 0 (10 176) 0 10 176 0 0 0
Currency effects from translation of equity (227) 0 (1 940) 0 898 (1 268) 0 (1 268)
Total equity as at 31 March 2015 2 708 0 14 334 4 888 (5 887) 16 044 (428) 15 616
USD 1,000
Nominal
share
capital
Own
shares
Other paid
in capital
Currency
translation
differences
Retained
earnings
Attributable to
owners of
parent
company
Non
Controlling
interest
Total
equity
Total equity as at 1 January 2014 2 713 (56) 22 913 764 (9 179) 17 154 (272) 16 882
Profit for the period (2 085) (2 085) (28) (2 113)
Other comprehensive income 0 0 0
Total comprehensive income/(loss) for Q1 0 0 0 0 (2 085) (2 085) (28) (2 113)
Reduction of paid in-capital 0 0 0 0 0 0 0 0
Transaction costs 0 0 0 0 0 0 0 0
Share- based payments 0 0 75 0 0 75 0 75
Increase in share capital 0 0 0 0 0 0 0 0
Purhcase own shares 0 56 (56) 0 0 0 0 0
Reclassification of equity 0 0 (8 220) (343) 8 563 0 0 0
Currency effects from translation of equity 51 0 279 0 (37) 294 0 294
Total equity as at 31 March 2014 2 764 0 14 991 421 (2 738) 15 435 (300) 15 134
First quarter report 2015
18
CONSOLIDATED STATEMENT OF CASH FLOW
USD 1,000 Note
Q1 ended
31 Mar
2015
Q1 ended
31 Mar
2014
Year Ended
31
December
2014
Cash flow from operating activities
Profit / (loss) before income tax (including disposal group) (1 890) (2 147) (14 397)
Adjustments:
Income tax payable 29 (173)
Share- based payments 4 121 74 487
Result from investment in associates
Depreciation and amortization 358 313 1 334
Impairment
Net interest expense
Currency translation effects (624) 117 (525)
Change in trade receivables 30 69 850
Change in trade payables (354) (821) (479)
Change in other accrual and non-current items (431) (465) 223
Net cash flow from / (used in) operating activities (2 761) (2 860) (12 679)
Cash flow from investing activities
Investment in furniture, fixtures and office machines 6 (16) (399)
Investment in intangible assets (406)
Investment in associated companies (31) (112)
Investment in subsidiary (1)
Net cash effects from disposal subsidiary (1)
Net cash flow from / (used in) investing activities (400) (47) (512)
Cash flow from financing activities
Net proceeds from borrowings
Net proceeds from share issues 8 624 7 176
Proceeds from minority interest
Paid dividends
Interest paid
Net cash flow from / (used in) financing activities 8 624 7 176
Net increase/ (decrease) in cash and cash equivalents 5 462 (2 907) (6 015)
Cash and cash equivalents at the beginning of the period 2 828 8 843 8 843
Cash and cash equivalents at the end of the period 8 291 5 936 2 828
First quarter report 2015
19
Notes to the consolidated financial statements
Note 1 General information
Cxense ASA, which is the parent company of the Cxense group (the Group), is a Public limited liability company
incorporated and domiciled in Norway, with its corporate headquarters in Oslo. The Group is a global technology
company delivering innovative and intuitive products that help companies build unique online experiences.
Cxense ASA is listed on the Oslo Stock Exchange, ticker symbol CXENSE.
The company’s Board of Directors approved the financial statements on May 12, 2015 after close of business on
Oslo Stock Exchange.
Note 2 Basis of preparation and accounting policies
The principal accounting policies applied in the preparation of these consolidated financial statements are set out
below.
The quarterly report is prepared in accordance with IAS 34 Interim Financial Reporting and International Financial
Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB) and all
interpretations from the Financial Reporting Interpretations Committee (IFRIC), which has been endorsed by the
EU commission for adoption within the EU. The quarterly report is prepared using the same principles as those
used for the 2014 annual report.
The quarterly report is unaudited.
The going concern assumption has been applied when preparing this interim financial report
The preparation of the consolidated interim financial statements in accordance with IFRS and applying the chosen
accounting policies requires management to make judgments, estimates and assumptions that affect the reported
amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on
historical experience and various other factors that are believed to be reasonable under the circumstances. Actual
results may differ from these estimates. The estimates and underlying assumptions are reviewed on a continuous
basis.
Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision
affects only that period or in the period of the revision and future periods if the revision affects both current and
future periods. When preparing these consolidated interim financial statements, the significant judgments made
by management in applying the Group’s accounting policies and the key sources of estimation uncertainty, were
the same as those that applied to the consolidated financial statements as of the period ended 31 December
2014.
There has not been any changes or transactions with any related parties that significantly impact on the Group’s
financial position or result for the period.
First quarter report 2015
20
Note 3 Segment information
Q1 2015
USD 1,000
Cxense
SaaS PCAN Eliminations Consolidated
Revenue
External customers 3 262 619 0 3 881
Inter-segment 39 0 (39) 0
Revenues total 3 301 619 (39) 3 881
Cost of goods sold 532 472 (39) 965
Gross profit 2 769 148 0 2 917
Employee benefit expense 2 802 116 0 2 918
Depreciation & Amortization expenses 361 (3) 0 358
Other operating expense 1 462 86 0 1 548
EBIT (1 856) (51) 0 (1 907)
Net finance income/(expense) 11 0 0 11
Income tax income/(expense) 7 0 0 7
Net income/(loss) before continuing operation (1 838) (51) 0 (1 889)
Net income/(loss) for the period from discontinuing operations 0 0 0 0
Total net income/(loss) for the period (1 838) (51) 0 (1 889)
For management purpose the Group is organized into business units based on its product and services and has two reportable
segments:
- Cxense Saas, which sells software-as-a-service applications based on the Extraordinary Insight Engine™ (EIE™) for real-
time analysis of content, user context, and behaviour. The EIE is fully integrated by a range of applications (web analytics,
recommendations, search and targeted advertising), which are used by Cxense customers to improve their online businesses
by increasing advertising revenue, page views, readership and conversion. The business generated by Emediate is included in
the Cxense Saas segment below. Information regarding revenue and Net income/(loss) generated by Emediate after the
acquisition is disclosed in note 3.
- Publisher-Controlled Advertising Networks (PCANs) which sell online advertising on the sites of various publishers, and
distribute and share the advertising revenues generated in the network with publishers.
Segment performance is evaluated by the management based on operating profit or loss and is measured consistently with
operating profit in the financial statements. Transfer prices between operating segments are on an arm's length basis in a
manner similar to transactions with third parties.
Discontinued operations:
To be consistent with the presentation in the income statement and statement of financial position, the PCAN segment
presented below is exclusive to the discontinued operations. Furthermore, Cxense SaaS sale to the discontinued operation is
presented as a sale to external customers.
First quarter report 2015
21
Balance sheet information 31 March 2015
USD 1,000 Cxense SaaS PCAN
Eliminations and
unallocated Consolidated
Segment assets:
Non-current assets 8 650 24 173 8 847
Current assets
- Trade receivables 1 602 517 2 120
- Other short term assets 1 603 38 0 1 641
- Cash and cash equivalents 8 261 30 8 291
Total segment assets 20 115 609 173 20 898
Segment liabilities:
Non-current liabilities 507 0 0 507
Current liabilities 3 975 848 (47) 4 775
Total segment liabilities 4 482 848 (47) 5 282
Q1 ended 31 March 2014
USD 1,000 Cxense SaaS PCAN Eliminations Consolidated
Revenue
External customers 3 501 672 0 4 173
Inter-segment 66 0 (66) 0
Revenues total 3 568 672 (66) 4 173
Cost of goods sold 644 502 (66) 1 080
Gross profit 2 923 170 (0) 3 093
Employee benefit expense 3 055 145 0 3 200
Depreciation & Amortization expenses 311 2 0 313
Other operating expense 1 663 84 0 1 746
EBIT (2 105) (61) (0) -2 166
Net finance income/(expense) 17 0 0 17
Income tax income/(expense) 64 0 0 64
Net income/(loss) before continuing operation (2 024) (61) (0) -2 085
Net income/(loss) for the period from discontinuing operations 0 0 0 0
Total net income/(loss) for the period (2 024) (61) (0) -2 085
Balance sheet information 31 March 2014
USD 1,000 Cxense SaaS PCAN
Eliminations and
unallocated Consolidated
Segment assets:
Non-current assets 9 443 28 51 9 519
Current assets
- Trade receivables 2 528 403 2 931
- Other short term assets 2 218 114 0 2 332
- Cash and cash equivalents 5 742 194 5 936
Total segment assets 19 931 739 51 20 718
Segment liabilities:
Non-current liabilities 633 0 0 633
Current liabilities 4 004 985 (40) 4 950
Total segment liabilities 4 637 985 (40) 5 583
Liabilities related to assets "held for sale" 0 0 0 0
Total segment liabilities 4 637 985 (40) 5 583
First quarter report 2015
22
Geographic information
Revenues from external customers: Q1 2015 Q1 2014 2 014
EMEA 2 880 3 485 13 423
Americas 663 373 1 774
Pacific 339 314 1 383
Total revenue from external customers 3 881 4 173 16 580
Information about major customers
The Company does not have single customers that generate 10% or more of the entity's total revenue.
The revenue information above is based on the location of the entity generating the revenue and includes sales generated by
discontinued operations. Revenues from discontinued operations is included and has solely been booked to the EMEA
segment in the table above. The acqusition of Emediate Group is included in the 2014 figures and end of year 2013 numbers.
Note 4 Employee benefit expense
Specification of employee expense
USD 1,000 Q1 2015 Q1 2014 2014
Payroll expense 2 592 2 674 12 277
Share-based payments 121 74 487
Social security tax 372 342 1 622
Pensions 98 104 452
Other personnel expense 60 6 1 203
Capitalized personnel expense (324) 0 0
Presented as part of discontinued operations 0 0 0
Total employee benefit expense 2 918 3 200 16 039
Note 5 Other operating expense
Specification of other operating expense
USD 1,000 Q1 2015 Q1 2014 2014
Audit, legal and other consulting fees 766 832 4 169
Office rental and related expenses 203 212 1 121
Marketing and representation 218 238 967
Travel expenses 297 277 1 755
Other operating expense 190 187 1 340
Capitalized other operating expense (126) 0 0
Presented as part of discontinued operations 0 0 0
Total other operating expense 1 548 1 745 9 352
First quarter report 2015
23
Note 6 Earnings per share
USD 1,000 Q1 2015 Q1 2014 2014
Net income/(loss) for the year attributable to the parent company (1 864) (2 056) (14 266)
Weighted average number of shares outstanding for basic earnings
per share (1) 4 026 161 16 612 3 505 053
Earnings per share
- Basic (0.0005) (0.12) (0.0041)
- Diluted (2) (0.0005) (0.12) (0.0041)
(1) A 1/200 share split was conducted
on the annual general meeting April 2 2014, in connection with the listing to the Oslo stock exchange.
(2) The Company has 173 380 potential dilutive shares from share options and subscription rights outstanding
Since the Group has a loss for the year, and since the potential
shares do not have a dilutive effect, they are not included in the calculation
On Februray 11 2015 Cxense ASA completed the private placement of 550,000 shares at NOK 100 per share. On
March 3 2015 the Company completed a subsequent offering of 150,000 shares, each at a price of NOK 100.
Cxense ASA raised NOK 70 million in new capital through the two share issues.
First quarter report 2015
24
Note 7 Trade receivables
USD 1,000 YTD 2015 YTD 2014 2014
Trade receivables 2 520 3 237 2 660
Allowance for doubtful debts (400) (306) (450)
Presented as assets "held for sale" 0
Total trade receivables 2 120 2 931 2 210
Trade receivables are non-interest bearing and are generally on 30-day terms.
As at 31st March 2015, the ageing analysis of trade receivables is as follows:
USD 1,000
Total
Neither past
due nor
impaired
<30
days 31-90 days >90 days
YTD 2015 2 520 1 295 475 359 391
YTD 2014 3 237 1 989 559 428 261
31 Dec 2014 2 600 1 470 432 372 326
Movements in allowance for doubtful debt:
USD 1,000 YTD 2015 YTD 2014 2014
Balance at the beginning of the year 450 300 300
Impairment losses recognized on receivables 30 6 224
Amounts written off during the year as uncollectible (30) 0 (64)
Amounts recovered during the year (41) 0 (7)
Impairment losses reversed (9) 0 (3)
Balance at the end of the period 400 306 450
Past due but not impaired
Note 8 Other short-term assets
USD 1,000 YTD 2015 YTD 2014 2 014
Accrued income 145 4 150
Prepayments 174 147 164
Receivable on authorities and government grants 7 223 197
Other short-term receivables (1) 1 315 1 580 1 316
Other short term assets 1 641 2 332 1 827
First quarter report 2015
25
Note 9 Share capital and shareholder information
Number of shares
Share
capital NOK
Share capital
USD thousand
Balance at 1 January 2014 3 322 400 16 612 000 2 713
Issued during the year 359 317 1 796 585 292
Currency effects from translation of equity -528
Balance at 1 January 2015 3 681 717 18 408 585 2 477
Issued during the first quarter 700 000 3 500 000 459
Currency effects from translation of equity -227
Balance as at 31 March 2015 4 381 717 21 908 585 2 708
20 largest shareholders registered in VPS as of 31 March 2015:
Shareholder Number of shares % Share
CXVEST LIMITED 536 502 12.2 %
ASAH AS 482 492 11.0 %
POLARIS MEDIA ASA 476 462 10.9 %
STOREBRAND VEKST 197 910 4.5 %
SIMPSON FINANCIAL 196 548 4.5 %
HOME CAPITAL AS 133 076 3.0 %
MP PENSJON PK 118 895 2.7 %
PORTIA AS 104 000 2.4 %
FOLLO EIENDOM AS 99 770 2.3 %
PENSJONSORDNINGEN 88 461 2.0 %
VIOLA AS 83 138 1.9 %
GBBT AS 81 800 1.9 %
MIKITANI 80 000 1.8 %
NORTH MURRAY AS 80 000 1.8 %
DANIELSEN 75 400 1.7 %
ARCTIC SECURITIES AS 75 000 1.7 %
DNB NOR MARKETS, 73 100 1.7 %
ØHRN 73 000 1.7 %
CRESSIDA AS 70 076 1.6 %
ELTEK HOLDING AS 70 000 1.6 %
Total top 20 shareholders 3 195 630 73 %
Others 1 186 087 27 %
Total 4 381 717 100 %
An updated list of the 20 largest shareholders can be found under the
Investor Relations section on the Cxense website (www.cxense.com)
Share options and subscription rights:
As of March 31 2015, there were 173,380 outstanding share options and subscription rights outstanding to Cxense
employees.
Warrants:
In connection with the Private Placement in the Company the Board on June 10 2014 decided to issue two warrants for
every one share subscribed for and allocated in the Private Placement. The first warrant ("Warrant A") would have a term
expiring on July 4 2015 and an exercise price per share of NOK 140. The second warrant ("Warrant B") would have a term
expiring on July 4 2016 and an exercise price per share of NOK 150. As of December 31 2014, there are 718,434
outstading warrants to shareholders in Cxense ASA.
First quarter report 2015
26
Note 10 Other short-term liabilities
USD 1,000 YTD 2015 YTD 2014 2 014
Public duties payables 443 729 551
Prepayments from customers 470 0 87
Accrued expenses 646 1 157 1 196
Salary-related provisions 854 0 999
Other current liabilities (1) 1 185 1 894 1 363
Total other short-term liabilities 3 597 3 780 4 196
Note 11 Related Party Disclosures
USD 1,000
Purchase of services from Description of servicesYTD
2015
YTD
2014 2 014
Advokatfirma Ræder (1) Legal services - 226 672
Theoline AS (2) Consulting services - 8 64
(1) The Chairman of the Board in Cxense ASA is a partner in Advokatfirma Ræder.
(2) Stig Eide Sivertsen, Board member, is the owner of Theoline AS
USD 1,000
Balances with related parties Balance typeYTD
2015
YTD
2014 2 014
Advokatfirma Ræder Other Short Term Liabilties 124 275 125
Theoline AS Trade payables 0 10 0
all figures incl. VAT
Balances and transactions between the Company and its subsidiaries, which are related
parties to the Company, have been eliminated on consolidation and are not disclosed in this
note. The group does not have other transactions with related parties, except for remuneration
to management as disclosed below:
First quarter report 2015
27
Note 12 Subsidiaries
Place of
incorporation
Portion of
ownership
and voting
power
Cxense Ltd. Cxense SaaS Australia 100 %
Cxense Co., Ltd. Cxense SaaS Japan 100 %
Cxense, Inc. Cxense SaaS USA 100 %
Cxense Inc. NV Holdings Cxense SaaS USA 100 %
Emediate Aps Cxense SaaS Copenhagen 100 %
Emseas Teknik AB (Emediate Sweden) Cxense SaaS Sweden 100 %
Premium Audience Network, s.l.u. PCAN Spain 51 %
Name of subsidiary
Principal activity
according to segment
Note 13 Contingent liabilities
Note 14 Events after the reporting period
The Group has not been involved in any legal or financial disputes in Q1 2015 or Q1 2014, where an
adverse outcome is considered more likely than remote, except for the following case see note 15
Since March 31, 2015 and until the date of these financial statements, the Board of directors is not
aware of any matter or circumstance not otherwise dealt with in this report, that has significantly or may
significantly affect the operations of the Consolidated Entity with the exception of the following:
For stock exchange notices please see www.cxense.com
None
First quarter report 2015
28
OFFICE LOCATIONS
North America Latin America Japan Europe Asia Pacific
New York City, NY Buenos Aires,
Argentina
Tokyo, Japan Oslo, Norway
(Corporate HQ)
Melbourne, Australia
Cxense, Inc.
1180 Avenue of the
Americas
Rockefeller Center
NY 10036
USA
Cxense Argentina
Victoria Ocampo 360
Puerto Madero
Ciudad de Buenos Aires
Argentina
Cxense Co., Ltd.
Cerulean Tower 15F
26-1, Sakuragaoka-cho,
Shibuya-ku
Tokyo, 150-8512
Japan
Cxense ASA
Sommerrogaten 17
P.O. Box 2920 Solli
NO-0230 Oslo,
Norway
Cxense Australia Pty Ltd
Suite 20/717 Bourke
Street
Docklands 3008
Melbourne Victoria
Australia
Miami, FL Rio de Janeiro, Brazil Stockholm, Sweden Singapore
Cxense Latin America
Suite 232, 4801 South
University Drive Davie,
FL 33328
USA
Cxense Brazil
Praia Botafogo, 300 -
Botafogo
22250-040 Brazil
Cxense Sweden
Emseas Teknik AB
Drottninggatan 67
111 36 Stockholm
Sweden
Cxense Asia
218 Orchard Road
Level 6
Orchard Gateway @
Emerald
238851 Singapore
Madrid, Spain
Cxense Spain
PAN Spain
C/ Arlabán 7, 8 planta
28014 Madrid
Spain
