• Q3 2024 REVENUES UP +10%
• US/CANADA REGION UP +18% IN Q3
• ACTIVITY DECLINE NOW LIMITED TO -9% OVER NINE MONTHS
• MONTHLY RECURRING REVENUE UP 18% YEAR-ON-YEAR

Q2 figures are unaudited

9 months figures are unaudited

Alternative performance indicator, not subject to ATEME's statutory auditors' review

Paris, October 17, 2024 - Ateme (ISIN : FR0011992700) generated revenues of €22.4 million in the Third Quarter of 2024, up 10% year-on-year (same like-for-like). At the end of the first nine months of 2024, consolidated revenues stood at €63.2 million, with a decline now limited to -9% (-8% like-or-like) vs. -17% at the end of H1. This reflects a strong base effect in the First Quarter 2023 when revenues rose 34% on a like-for-like basis (a drop of -35% in Q1 2024).

• EMEA revenues were up 25% (+26% like-for-like) over the first nine months to €27.8 million. This region accounted for 36% of Ateme's total revenues as of September 2024, making it the company's largest market;
• The US/Canada region returned to growth in Q3, with quarterly revenue of €6.1 million, an increase of +18% (+21% like-for-like). Over nine months, revenues stood at €16.0 million, down -48% (-47% like-for-like), versus -61% in H1. This evolution is primarily due to a strong base effect from Q1 2023 and the wave of consolidation in the North American video content industry, which has slowed investment decisions. Ateme anticipates the commercial recovery that began in Q3 to continue in this region;
• Asia Pacific revenues continued robust growth, with an increase of +25% (+27% like-for-like) over nine months to €12.6 million, continuing the dynamic trend from H1;
• Revenues in the Latin America region reached €6.8 million by the end of September 2024, up +3% over nine months (same like-for-like).

Monthly Recurring Revenues (MRR[3]) were up by €205 K in the Third Quarter 2024 at €2.8 million, accelerating over the past quarter thanks to the signing of three multi-year contracts (3 to 5 years) in EMEA and APAC regions.

Year-on-year, MRR was up by €427 K, or +18%, and at the beginning of October represented Annual Recurring Revenue (ARR) of €33.7 million.

Outlook & Financial objectives

With growth of +10% in Q3 2024 and a strong pipeline for Q4, Ateme confirms that revenues for the Second Half are expected to exceed significantly the First Half, following the established seasonal pattern.

Meanwhile, operating expenses (opex) will continue to decrease in the Second Half, driven by organizational streamlining and product offerings optimization. Ateme expects to end the year with lower opex and headcount compared to 2023.

Benoît Fouchard's Return to the Executive Committee

Since early October 2024, Benoît Fouchard has been appointed Chief Operating Officer (COO) within Ateme's Executive Committee. In line with good corporate governance practices, the Board of Directors accepted Benoît Fouchard's resignation from his position as an Independent Board Member, effective October 16, 2024. The company would like to acknowledge Benoît's commitment since 2001 within the company, and later within the Board of Directors, where he has made a significant contribution to the company's growth and strategy.

Michel Artières, Chairman and CEO of Ateme, comments: "Following the Second Quarter, Ateme continued to make up for its revenue shortfall during the past quarter, particularly in the U.S./Canada region, which returned to growth in the Third Quarter (+18%), benefiting from a much more favorable comparison base in the Second Half. Moreover, starting in 2024, we will benefit from ambitious actions to streamline our organization and product lines. This will enable us to aim for performances comparable to 2023 over the entire 2024 fiscal year, despite a more challenging macroeconomic environment than expectedAteme is continuing its strategy of building Monthly Recurring Revenue, which has increased by more than €400 K over the past year. This represents an additional embedded revenue of €5 million for 2025 and the years to come.”

Upcoming event:

January 30^th, 2025: FY 2024 Revenues
(after the close of Euronext Paris markets)

[1] At constant exchange rate and perimeter

[2] Alternative performance indicator, not subject to ATEME's statutory auditors' review: Monthly Recurring Revenue is defined as the sum of (1) the monthly revenue from support contracts in hand, and (2) the monthly revenue from multi-year licensing contracts in hand (capex), and (3) the monthly revenue from license lease contracts (OPEX).

[3] Alternative performance indicator, not subject to ATEME's statutory auditors' review: Monthly Recurring Revenue is defined as the sum of (1) the monthly revenue from support contracts in hand, and (2) the monthly revenue from multi-year licensing contracts in hand (capex), and (3) the monthly revenue from license lease contracts (OPEX).

About Ateme

Ateme is a global leader of video compression and delivery solutions helping Tier-1 Content Providers, Service Providers and Streaming Platforms to boost their viewership and subscription engagement.

Leveraging a unique R&D task force in the video industry, Ateme's solutions power green sustainable TV services, improve end-users' quality of experience, optimize the total cost of ownership of TV/VOD services and generate new revenue streams based on personalization and ad insertion. Beyond the technology agility, Ateme's value proposition is to partner with his customers by offering a great flexibility in the engagement and business models matching their financial priorities. A consequence is a rapid shift to Recurring Revenues, boosting the company resilience and creating long term value for the shareholders.

Founded in 1991, Ateme has 580 employees spread over its headquarters in France and 20 offices around the world including the USA, Brazil, Argentina, UK, Spain, Germany, the UAE, Singapore, China, Korea, and Australia.

Ateme has been listed on the Paris Euronext market since 2014 and in November 2020 it made the acquisition of Anevia, a provider of OTT and IPTV software solutions. In 2023, Ateme served close to 1,000 customers worldwide with revenues of €100 million, of which more than 90% outside its home market.

Find out more: www.ateme.com.

Name: ATEME - ISIN Code: FR0011992700 - Ticker: ATEME - Compartment: C

DISCLAIMER

This press release does not constitute or form part of and should not be construed as any offer for sale of or solicitation of any offer to buy any securities of Ateme, nor should it, or any part of it, form the basis of or be relied on in connection with any contract or commitment whatsoever concerning Ateme's assets, activities or shares.

All statements other than historical facts included in this presentation, including without limitations, those regarding Atemes' position, business strategy, plans and objectives are forward-looking statements.

The forward-looking statements included herein are for illustrative purposes only and are based on management's current views and assumptions. Such forward-looking statements involve known and unknown risks. For illustrative purposes only, such risks include but are not limited to impact of external events on customers and suppliers; the effects of competing technologies competition generally in main markets; profitability of the expansion strategy; litigation; ability to establish and maintain strategic relationships in major businesses; and the effect of future acquisitions and investments.

Ateme expressly disclaims any obligation or undertaking to update or revise any projections, forecasts or estimates contained in this presentation to reflect any change in events, conditions, assumptions or circumstances on which any such statements are based, unless so required by applicable law. These materials are supplied to you solely for your information and may not be copied or distributed to any other person (whether in or outside your organization) or published, in whole or in part, for any purpose.