Welcome to Appear's first quarterly presentation. My name is Thomas Bostrøm Jørgensen, I'm the CEO at Appear, and I'll be taking you through the presentation we prepared as part of our our Q3 report.

Now, the agenda for today: we're going to go through some of the quarterly and year-to-date highlights, going to repeat a bit about the Appear growth story, and then go into into depth on some of the Q3 numbers. I'll invite our CFO, Per Øyvind Stene, to go through financials, and then be very happy to answer some of the Q&A questions at the end of the session.

Let's just dive in. For Q3, Q3 has really been a good quarter for us.

We've seen strong momentum across all the regions we operate, that's the Americas, it's EMEA, and APAC. Growth is is really driven by business from Tier 1 sports broadcasters, content owners, and and sort of the ecosystem around live sports.

We've also seen a lot of larger sort of long-term support agreements and and, further adoption of what's become the gold standard in in the acquisition market, the X Platform. We've spent considerable time in the business preparing for launch of several of our new products and solutions that we're very excited about.

Of course, we successfully listed Appear at the Oslo Stock Exchange on the 6th of November, which was a huge accomplishment for for the entire business. Financially, we delivered 183 million in revenue, which is a 30% increase year-on-year, and an EBITDAC at 32.6.

Now, EBITDAC is basically EBITDA less capitalized development expenses, for those who wonder. Our gross margin came in at the same as last year, 73.8%, and we had a really strong cash flow in in Q3, 110.9 million, which really comes down to collecting cash from from really large sales in Q2.

Now, further on, if we go kind of to the we put on the year-to-date glasses and look at at the year as a whole, we've we've really continued to see very strong business coming from the Americas. Again, the the the sports acquisition market, the live sports, Tier 1.

We've also had a a really strong momentum with the ecosystem around soccer, football, in the EMEA markets, and we have established ourselves with a local center of excellence in APAC, and and starting to see much better traction in that market as well. Our our revenue comes from both from new customers and existing Tier 1 customers.

Most of, the revenue growth that we're seeing is coming from this X Platform, as I said, the gold standard in the in the sports or in the live production acquisition market. As I said before, we we've spent considerable time this year developing and preparing for launch of of new products and solutions to expand our our product offering going into next year.

In terms of financials, we ended the first three quarters with revenues of 616 million, which is an increase of 36.1% year-on-year. I'm happy to say that our revenues already surpassed the full year of 2024.

That that's a great achievement. Our EBITDAC came in at 122.4, which equals 19.9% margin, and that's including IPO cost, and ex IPO cost the EBITDAC margin would come in at 21%.

Our gross margin, again, stays where we want it to be, and and stays on par with last year, 72.1%, and free cash flow ended at 79.3%, which is up 20.7% year-on-year, and really sort of reflects a a a solid cash conversion rate. All right.

Now, before we move on and and talk a bit more deeply about our results, I wanted to repeat some of the sort of key aspects of Appear's growth story, particularly for those of you that are are new to the company. Appear is a leader in the live production technology market, and and we really define this market as all technologies, hardware, software, services that are involved in getting all the audio and video feeds live from a live event at a stadium, all the way to the customer's device, TV, tablet.

That entire sort of technology ecosystem deployed to make that happen is is Appear's market. Now, the company is 21 years old, right?

We were founded in 2004, and all the founders came out of out of Tandberg Television, one of the real pioneers in in the broadcast industry. As such, the company really has a lot of, let's say, Tandberg heritage and legacy still within our our our company and our walls.

We're 215 employees at the at the end of the first three quarters. We delivered 796 million revenue the last 12 months leading up to the third quarter, and we delivered 16.8% EBITDAC margin in the same period.

Now, our footprints, how are we set up, globally? We're a Norwegian company.

It's a Norwegian mothership. We're based in Oslo, just a stone's throw away from the old Tandberg Television offices.

We have around 160 employees. Most of our engineers are are are based in in Oslo.

Then we have wholly-owned subsidiaries for sales and marketing: one significant out of Southampton to cover the the UK and Ireland markets. We have another wholly-owned subsidiary in the US based in LA to cover the North American market.

Then we just got established in Singapore to cover the APAC region. Then we have also a subsidiary in Stockholm that is housing our our our Swedish development team that we're looking to expand going forward.

Now, if we look at the market that we operate in, as I as I defined earlier, the live production technology market, it is a big market. It's a market worth around 5.5 billion US dollars.

We divide the market into three segments. The first one is acquisition.

Acquisition is really technology deployed at the stadium to to capture, process, and transport audio and video from the stadium to wherever that content is being produced. That's really the next phase of the value chain.

It's content production, or we call it processing. That's the phase where the finished goods are made.

That's where we mix audio, video, graphics, and and really create the content and the product that that we all consume. Then the final the final stage and the final segment here is consumption, and that's really delivering the finished goods to the viewers, either via via linear, good old satellite, terrestrial, cable TV, or via OTT.

Now, if you see if you look at the growth rates in acquisition and processing, those are markets that are growing between 4% and 5%. Consumption is a market in decline, but Appear going forward is is focusing, strongly on the acquisition and and processing part of the markets.

In terms of customers, who do we address, who are the buyers here? We'd like to categorize them in in these four categories.

The first is content owners and rights holders. As I'll get to, this is an industry that is driven largely by by premium live sports, rights.

It's the money coming from those rights that really drive this industry. Then of course you have production companies, they're involved in in typically in the entire value chain.

You have sports broadcasters that that usually buy rights portfolios and packages that they produce and turn into products that they sell to their customers. Then you have connectivity providers that are involved in in carrying live content with as low latency and as high quality as possible between the stadium and the production facility, and then between the production facility and and where content is consumed.

Now, as I said and looking at the drivers, in this market, in the in the sort of global live production market, as I said on the previous slide, the the a lot of the, let's say, the value that is that is created in this industry comes from sports rights. You've probably, if, if if you follow the industry, you'll have seen several notable announcements in the market: Paramount, for example, buying the rights for for Champions League in the UK, and and Major League Baseball now inviting Netflix in as as a as a rights holder in in Major League Baseball.

The value of rights are increasing, particularly for Tier 1 rights. For those who buy rights and live of monetizing rights, they have to increase production value to to be able to monetize the rights they bought, and to to capture viewers, around the world.

Higher production value is really, translated into more cameras, more slow-mo, more replay, more graphics. It's more technology, which is great for Appear's business.

That's really where we excel. Then after typically putting down a lot of capex and investment into production value when you renew rights or you buy rights, the the ecosystem is really intent on then delivering the content operationally efficient.

This is also an area where Appear really adds a lot of value, both in enabling remote production or centralized production, which is a big is a is a it's a big way of of delivering operational efficiency, and also in the transformation from sort of bespoke, traditional video infrastructure to IP and IT-based solutions, which are more readily available and and much less costly. I think those are some of the big trends that are forming our industry.

In terms of Appear's, history, as I said, we're a 21-year-old company, and we've gone through a couple of big pivots in order to to end up, delivering 34%, 35% annual growth, as we've done in the last five years. The first big pivot Appear went through was moving from the consumption market into the acquisition market in in in the sort of period between 2017 and 2018, really enabling us to tap into that premium live sports market.

Then in '21 and '22, Appear went through a a significant commercial pivot, where we moved our market focus from EMEA into the UK and US, where most of these large, premium sports broadcasters, production companies, and rights holders are, located. Then we moved into direct sales, we set up our own direct sales organization, and that really transformed the commercial outcome of Appear.

All right, from that, we're going to go into Q3 in a bit more depth. We're going to start looking at, a very strong and consistent growth trend on on revenue.

We've had 35% CAGR from from Q4 2021 to the third quarter this year, which is which is, really significant growth and and obviously outgrowing the market significantly. You'll see that we've also grown, 30% from Q3 '24 to Q3 '25.

We've had, yeah, we've had quarter-on-quarter growth consecutively for the for the last 10 quarters. Again, the main driver for, this revenue growth is the X Platform, targeting Tier 1 sports organizations, broadcasters, in the in the largest market in the world, in in the Americas, but also in, more and more in the UK, and and and in EMEA, as we'll get to.

If you look at the the revenue by product type for this quarter, you'll see that we have a a higher share of support revenue compared to software and hardware, and that's really helping our our, lifting our our gross margin. If you look at the regions, Americas had 2% growth in Q3, compared to last year, but but still represents 50% of our our revenue year-to-date.

I also want to say that Americas secured a a significant amount of long-term service contracts in Q3, which will be recognized over, a much longer contract period going forward. Then for the EMEA market, we've had, great success in the EMEA market.

Some of you might have seen the announcements we made with LaLiga, for for European, as a representative of our business in in European soccer. EMEA continues to deliver, strong growth in Q3, even at the back of a, a very strong quarter in in Q2.

Now, in terms of, margins, we continue to deliver, strong growth and solid margins in Q3. If you have a look at the green line here, which is gross margin, we ended the quarter at 73.8%, which which is really great.

Again, it really points to the the the the mix of of hardware, software, and and services. We had, again, 183 million revenue and a 33 million EBITDAC, which leaves us a a 17.8% EBITDAC margin.

We are investing, in in growth. We we're on a a a significant and and let's say long-term growth trajectory, we are investing, in a controlled way in, in in teams, in facilities, in infrastructure.

We're also building a very sort of scalable, efficient, and resilient organization going forward. As we ramp up our revenues, we're also ramping up our investments to keep that growth going.

That's very, very important for us, and you'll see that from us, in the in the long term going forward. All right.

With that, we're going to hear from our our customers before I hand it over to Per Eivin on financials.

The demand for video content is growing significantly, and this is a massive global market with so much potential for a premium player like Appear. Broadcasters and media companies alike used to turn up to events with lorry loads of media processing equipment.

That adds risk, adds expense, and takes us away from meeting our sustainability targets. Appear brings something that is missing in the marketplace for me: a box that can be small, that can have proper power management, can supply everything that I need in a small footprint.

We found that we have massive saving in power consumption, and Appear TV solution can easily do its job for more than 10 years, and that's what I call sustainability. Working with partners like Appear, it's a no-brainer for us so that we can deliver the best quality product.

We couldn't be happier.

Hello, I'm Per Øyvind Stene, the CFO, and I will take you through the financials. As Thomas has mentioned, the revenues for the quarter was 183 million, 30% up from last year.

Due to these beneficial product mix effects compensating for tariffs, the gross margin ended up at 73.8%, at par with last year, with gross earnings at 135 million. Going to the more comparable figures, the EBITDAC, as we have started capitalizing development expenses in '25, we capitalized 17 million in the quarter, we didn't capitalize anything last year.

The EBITDAC margin for Q3 was 17.8% with a resulting EBITDAC of 33 million, compared to EBITDAC of also 33 million and 23.2% in last year. The last year's numbers were high due to periodization effects on the salaries and lower other operating costs, but still EBITDAC at 17.8% was a good quarter for us.

The operating profits was 45 million versus 29 million last year. Due to adverse currency effects, net financial expenses in the quarter was 3 million versus a net finance income of 3 million last year.

Profit before tax at 42 million. We've had some IPO-related expenses that we cannot have tax deductions on, the effective tax rate for the quarter was 31% versus 22% last year, with a profit for the period at 29 million versus 25 last year.

Going to the nine-month period from January to September 2025, our revenues, as Thomas mentioned, 616 million, up 36% for last year. We have stable gross margin, set 72.1%, at par with last year, with resulting gross earnings at 445 million.

Then again with the comparables on the EBITDAC, after having capitalized 47 million of development expenses for the year-to-date, we have EBITDAC at 122 million with a year-to-date margin of 19.9% versus 17.7% last year. Also for the full year, we've been hit by adverse currency effects, the net financial expenses for the year-to-date period is 9 million versus a net financial income of 7 million last year.

Profit before tax 149, and then the effective tax rate 24% versus 23 last year, resulting in a profit for the period at 114 million. Looking at the cash, as Thomas alluded to, we had very good cash flow in the period, where the main contributor was reduction in trade receivables.

Going out of Q2, we had a high trade receivables that we have collected, we have had a decrease in our working capital of 92 million. Then we have, of course, the positive contribution from the EBITDAC.

We have investments in 17.5 million in capitalized development expenses, 3.5 million in PP&E, totally resulting in a positive net cash flow of 110 million for the quarter, which means that we are going out of the quarter with cash and cash equivalents of 159 million. In addition to the cash and cash equivalents, we consider money market funds that we can liquidize within a few days as part of our available liquidity, and going out of the quarter, Q3, we had 160 million in money market funds in addition to the cash and cash equivalents of 159 million, totaling 318 million of available liquidity.

With that, I will leave it to Thomas to conclude the presentation.

Thank you, Per Eivin. In terms of our financial targets, for 2025 we are guiding at or around 800 million in revenue.

In the medium to long term, we're guiding a revenue growth at between 25% and 30% per annum, our recurring revenue share at 15% to 25%, our gross margin at around 70%, and our EBITDAC margin at or around 17%, well, in the interval of 17% to 20%. With that, we are going to go to Q&A.

Thank you very much, Thomas. Lots of questions coming in from the webcast and still possible to post more in the clicking on the button in the player.

First question: how is it possible to have both the streamer, for example, Netflix and Apple, and also the sports organization, the rights holder, for example, NHL or NFL, as customers? Are they both using your products, and how is that working?

That's a really good question. The big dynamic in the industry is that the streamers are actually buying content rights.

I mentioned MLB earlier, Netflix has just bought a good chunk of Major League Baseball's content rights. As such, the streamers are getting into the business of producing and delivering premium live sports.

That's really kind of that's taking them from their existing business, which is video on demand, to now buying rights, producing, and delivering live. As such, they are now competing head-to-head with the likes of ESPN.

In the example of Major League Baseball, ESPN was the original rights holder, now they kind of pulled back, they've taken a smaller part of the Major League Baseball right package, and Netflix has taken a bigger, and then NBC is also taking a part of that package. Their entry into premium live sports production is really a big driver for investments in the market.

Thank you, Thomas. There's a couple of question from different participants on Net Insight having talked about negative growth year-to-date, citing tough macro.

Is this something that you notice as well, or are you now gaining market share from them and potentially others?

Our business is driven by premium live sports rights, and so a lot of the triggers for investments into Appear is driven by rights being renewed, rights changing hands, value rights going up, and then big sports events. For us, this is a very dynamic market where there's a lot of very active players, and as I said, for example, streamers coming in and taking a big piece of these large rights packages.

For us, this is a very dynamic market with a lot of activity, and it's a big reason why we're growing at a substantially higher rate than the average market.

Very good. A few questions from different participants also on Q4, your implied growth in Q4, given your 800 million target for the year.

Can you elaborate a little bit on how to think about the dynamics for Q4 with regards to revenue growth?

We're not guiding on quarters or Q4. I would say, on average, Q4 will be closer to what Q3 looks like.

Traditionally, when Appear operated in the consumption market, our revenue was usually fairly back-ended, Q4 heavy. With the transformation of the business and the pivot into the acquisition market, and much more into the live production market, we actually see that at least the last two years, the second quarter is the biggest quarter.

We believe that's really driven by the seasonality of the start of these major sport leagues that typically start up in the fall and make sort of investments in Q2 to improve their production value and make improvements in operational efficiency. Those are the trends we're seeing in the market.

Yeah. A quick follow-up on that with regards to regions.

Do you have any additional flavor to give on the activity and momentum in the regions in Q4 or potentially next year?

I would say Americas is our big growth engine. That's where we've had very substantial growth over the last four years.

We believe that is going to continue going forward. However, we've also taken the EMEA market now through this transition from indirect to direct sales, we do believe that we will have significant growth in the EMEA market as well.

I would say in terms of percentage growth, having just established our regional center of excellence and our direct sales presence in the APAC market, percentage-wise we believe that APAC market is going to be our biggest growth driver. Overall, we have a very positive outlook.

Thank you. Can you comment as to whether the Winter Olympics '26 has been an important driver for growth during Q3, given the strong performance in EMEA?

I would say the biggest impact from the Olympics came in Q2 because most of the investments were made into infrastructure supporting live production for the Olympics, yeah, were made in Q2. Most of those solutions are actually already sort of installed, configured, and are being deployed, and ready for live production more or less as we speak.

Q3 is too late for the Olympics.

Can you give an update on the VX rollout?

Yes. The VX platform is our software-based platform for the processing market.

We are getting into the market now with pilot customers, and the exact timing of when we start invoicing customers for this is slightly dependent on kind of the traction with pilot customers. The platform has actually been used in kind of live scenarios already, we're very encouraged about that, and the pilots that we're now getting started with.

Good. There's one a little bit technical question here that you might be able to answer.

How does the X Platform work? Is every camera and mic linked to a single X hardware, or does the cameras and microphone need one unit per camera or microphone?

No. I think overall the Appear X Platform is a highly modular and scalable solution to process audio and video.

In just a 2RU frame, it's like a 2-rack unit frame, about this high and wide, the Appear X Platform can process up to 96 Full HD cameras, it delivers better sort of spatial density, and also power efficiency than any other platform in the market. We can process a very, very large amount of audio and video streams at the stadium in parallel in a very condensed footprint, and with, of course, low latency, low power consumption, and the best possible quality.

Perfect. One more question on Q4: how do you think about EBITDAC margins, with bonuses, etc., typically impact margins in the Q4, assuming revenue at par with Q3?

Any comments around that?

What we can say in general is that we are accruing for bonuses throughout the year according to how we are doing towards targets, we have done accruals up until now, and we will do accruals accordingly to the development in the fourth quarter.

Right. A couple of questions on the market as such.

There's been some media coverage on potential consolidation among your customers, for example, Comcast, Netflix, Paramount, Warner Bros. Obviously you can't comment on these specific events, but can you share some thoughts on how broadcaster consolidation can impact your business?

I can only talk from experience. We have, I would say, most of the large broadcasters, content owners, and production companies as customers today.

Our experience, as they consolidate or spin out parts of the business, that really drives new investments in solutions and infrastructure, because whatever was spun out or kind of merged typically has to again invest in increasing the quality of their product, which is production value, which is basically technology that we excel at, or have to invest in initiatives that drives operational efficiency for the spun-out company or the joined-up business. For us, it's a business driver.

One question on the soccer world championships coming up next year. When will we see revenues from that?

We see revenues from that in I would say Q3 and Q4 this year. We're seeing significant take-up of business from the World Cup.

All right. We have one more question from the viewers, still possible if you are quick to post some more.

What should we expect from M&A going forward, and how much growth are you targeting from M&A?

What we've said is that we will do add-on acquisitions, particularly into the VX domain and the production processing market at some point going forward. We haven't specified exactly when.

We just came out of listing, and we will take our time to make sure that we acquire the right add-ons as we move down the line.

Perfect. There are no further questions from the webcast, I'm handing it back.

All right. I think that concludes the Q3 presentation.

Thank you for watching, and see you all again in a quarter. Thank you.