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VIDEOBRANDADPLATFORM|May2017

F O RWA R D L O O K I N G S TAT EM E N T S

2©2017YuMeInc.AllRightsReserved.YuMelogoisaregisteredtrademarkofYuMeInc.

This presentation contains forward-looking statements. All statements other than statements of historical fact are statements that could be forward-lookingstatements, including, but not limited to our Business Outlook, statements about our growth strategy, our operating results, market trends, and quotationsfrom management. These forward-looking statements are subject to risks and uncertainties, assumptions and other factors that could cause actual resultsand the timing of events to differ materially from future results that are expressed or implied in our forward-looking statements. Factors that could cause orcontribute to such differences include competitive trends in a dynamic market, our history of net losses and limited operating history, which make it difficultto evaluate our prospects, our fluctuating quarterly results of operations, and our dependence on a limited number of customers in a highly competitiveindustry. These and other risk factors are discussed under “Risk Factors” in YuMe’s Quarterly Report on Form 10-Q for the quarter ended March 31st, 2017that has been filed with the U.S. Securities and Exchange Commission (the “SEC”), and in our future filings and reports with the SEC. The forward-lookingstatements in this presentation are based on information available to YuMe as of the date hereof, and YuMe assumes no obligation to update any forward-looking statements.

To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles(“GAAP”), we report adjusted EBITDA, which is a non-GAAP financial measure. We calculate adjusted EBITDA as net income (loss), excluding income taxes,interest, depreciation and amortization, stock-based compensation and 2016 non-recurring proxy contest expenses. We believe that adjusted EBITDAprovides useful information to investors in understanding our operating results in the same manner as management and the board of directors. We haveincluded adjusted EBITDA in this presentation because it is a key measure we use to understand and evaluate our core operating performance and trends, toprepare and approve our annual budget and to develop short- and long-term operational plans. In particular, we believe that adjusted EBITDA can provide auseful measure for period-to-period comparisons of our operating results because it excludes some expenses that may mask underlying trends. This non-GAAP information is not necessarily comparable to non-GAAP information presented by other companies. Non-GAAP financial information should not beviewed as a substitute for, or superior to, financial information prepared in accordance with GAAP. Users of this non-GAAP financial information shouldconsider the types of events and transactions for which adjustments have been made.

The non-GAAP financial measures used in this presentation are reconciled to the most directly comparable GAAP financial measures in the Appendix. Withrespect to adjusted EBITDA expectations provided in this presentation, quantitative reconciliation to the most directly comparable GAAP financial measure isnot feasible, because unpredictable fluctuations in our stock price makes it difficult to estimate accurately future stock-based compensation expenses thatare excluded from these non-GAAP financial measures. We expect that the variability of the above charges may have a significant and unpredictable impacton our future GAAP financial results.

YUMESNAPSHOTVIDEOBRANDADVERTISINGPLATFORM

©2017YuMeInc.AllRightsReserved.YuMelogoisaregisteredtrademarkofYuMeInc.

Highlights:• LeadingTV-like,videobrandadvertisingplatform• Differentiatedsolutionsforcross-screeninventory• Intelligentdata-driventechnologyplatformmoreeffectively

optimizescampaignsforbrandspecificobjectives• Robustprogrammaticrevenuegrowth• Attractivebaseofcustomeraccounts&blue-chippartners• R&Dadvantagesupportedbylowcosts&economiesofscale• Profitable

Headquarters:RedwoodCity,CaliforniaFounded:2004Employees:<500

RisingStarsAward

HighestRatedMedia

Note:Financialsshownonanon-GAAPbasis

ADJUSTEDEBITDA

%margin 7% 1% 12%

PROGRAMMATICREVENUE

$21.2

$1.0

$9.4

2016 Q1'16 Q1'17

$10.9

$0.5

$4.3

2016 Q1'16 Q1'17

Highlights FINANCIALSUMMARY($M)

AWARDWINNINGTEAM&TECHNOLOGY

YUMEMARKETPOINTOFVIEW

Brandobjectiveswilldominategoingforward.T h e v i d e o a d m a r ke t i s c h a n g i n g

1

Brandobjectivesvs.clickobjectives,privatevs.public,valuevs.reach,efficiencyvs.price,cross-screen.YuMe h a s a d i f f e r e n t i a t e d b r a n d p l a t f o rm a t t r a c t i v e t o T V b u y e r s

2

Truecross-screensoftwareatthepublisherlevel.Highlydifferentiatedfromone-sidedmarkets,e.g.Tube.YuMe h a s a l w ay s e x c e l l e d a t T V - s t y l e , b r a n d o b j e c t i v e s3

Whatyoubuyhasalwaysbeenmoreimportantthanhowyoubuy.Andnowhowyoubuydoesn’tmatter.We a r e b r i n g i n g t h a t e x p e r t i s e t o p r o g r amma t i c

4

We a r e d o i n g s o w h i l e s u b s t a n t i a l l y e x p a n d i n g p r o f i t a b i l i t y5

©2017YuMe Inc.AllRightsReserved.YuMelogoisaregisteredtrademarkofYuMeInc.

LEADINGBRANDVIDEOADPLATFORMCOMPANYDELIVERINGDIGITALAUDIENCESTHATMATTERTOBRANDS

CROSS-SCREEN,BRANDOPTIMIZEDINVENTORYFROMATTENTIVE&RECEPTIVEAUDIENCES

ADVERTISERS UNLOCKINGAUDIENCEVALUE PUBLISHERS


Platformfindsviewersthatmatchtargetaudienceinrealtime,withorwithoutcookies, &servesdesiredad

SOFTWARE&DATA

Algorithmidentifiesuniquepatterns ofeachaudience.Platform

buildssegmentsusingmatched&validated

audiencedata

DATASCIENCES BRANDAUDIENCES

YuMe’s SDKfeedsdeclaredsurvey&

technographic*data toitsadvancedlearningalgorithmtofindsimilaritiesamongsurveyrespondents

*Includesapp/URLinuse,browsertype,localtimeofday,geography,videoplayerattributes(playersize.,location,etc.)


BUILDBRANDAUDIENCESFORADVERTISERSDRIVENBYUNIQUEEND-TO-ENDSOFTWARE&DATASCIENCES

PROGRAMMATICADTECHMARKETEVOLUTION

• Display• DirectResponseBudgets• Click- andConversion-Based

• e.g.:RightMedia

1STPROGRAMMATICWAVE2007-2011

1

• Primarilyin-Bannervideo• OpenMarkets• DisplayBudgets• ReachandPriceBased• Manywastedimpressions• e.g.Brightroll,AdapTV

2NDPROGRAMMATICWAVE2011-2015

2

3RDPROGRAMMATICWAVE2016-

• In-streamimpressions• Brandingbudgets• Brandobjectives;BrandSafe.

• Privatemarkets• TVdollarsshifting• Audiencebased• e.g.:YuMe

3


OnlinePurchaseV SAwarenessandPerception1

OpenMarketsV SDirectandPrivateMarkets2

OpenSSPsV SIn-houseCuratedInventory3

BrandObjectives ClickObjectivesV S(AudienceBased,FrequencyManagement,First-

party,Safe,Viewable)

4

ReachV SValue5

SiloedV SCrossScreenIntegration6

PriceEfficiency V S7


THESHIFTTOPROGRAMMATICBRANDINGMEANS:

PROGRAMMATICVIDEOTOTALAVAILABLEMARKET

Source:eMarketer and Managementcalculations


BRANDINGOBJECTIVESQUANTIFIEDDRIVINGPROGRAMMATICGROWTH

$0

$2

$4

$6

$8

$10

$12

$14

2015 2016 2017 2018 2019

USSpend

(billions)

TAMProgrammaticDirect

TAMPrivateMarketplaces

TAMOpenAuction

Source:eMarketer and Managementestimates

2007 2011 2012 2013 2014 2015

Microsoft&YuMeWindowsMediaCenterPartnership

MagidResearchStudy2

NgageAdUnitLaunch ClicktoBrowserLaunch

VidZoneLaunch

LG/NielsenAdEffectivenessStudy

FIUPLAYAdFormatLaunch

8+ 500+ 65%

PanasonicLaunch

InteractivePre-rollLaunch

LG/NielsenAdEffectivenessStudy

ACRAudienceTargetingLaunch

2016

CreativeBestPractices

ToshibaLaunch

Ngage+AdUnitLaunch

Vestel LaunchXBOXLaunch

FirstImpressionUnitLaunchIn-AppPre-rollLaunch

MagidResearchStudy1

SamsungLaunch

CrackleLaunch

VizuResearchLaunch

LGLaunch

AppleTVlaunch

FireTVlaunch

LaunchofInteractiveSDK

YEARSOFEXPERIENCE

CAMPAIGNS POTENTIALREACH


CONNECTEDTV– THEYUMEADVANTAGETHELEADERINTHECTVSPACE

STRONGPROGRAMMATICGROWTH

SUSTAINEDGROSSMARGIN

OPERATIONALLEVERAGE

R&DADVANTAGE

PROFITABLE

OVER$21MINPROGRAMMATICREVENUEIN2016AND9XYoYGROWTHINQ12017.

ILLUSTRATESPLATFORM’SSTRENGTH&DIFFERENTIATION.

COMPANYRESTRUCTURINGINTENDEDTOREDUCEOPEXBY$14MIN2017.

STRONG&EFFICIENTR&DOPERATIONS.INDIA-BASEDTECHNOLOGYDEVELOPMENTANDADOPERATIONSCENTER.

PROFITABLEONANADJUSTED-EBITDAANDNET-INCOMEBASIS.

11©2017YuMe Inc.AllRightsReserved.YuMelogoisaregisteredtrademarkofYuMeInc.

FINANCIALHIGHLIGHTS

($1.5M)

$1.9M

$7.6M ($1.0M) $0.2M

$3.7M $10.9M

-$5M

$0M

$5M

$10M

$15M

FY15aEBITDA

Margin S&M R&D G&A D&A,SBC&Other*

FY16aEBITDA

FY15VS.FY16ADJUSTEDEBITDAWATERFALLGROSSPROFITGAINSFROMPLATFORMENHANCEMENTS

OPERATINGEXPENSEGAINSFROMINCREASEDEFFICIENCIES


$s

*OtherincludesQ4-16restructuringexpenses

$MILLIONS

13

20.125.2 26.0

45.5

26.6

34.3 36.2

54.0

37.340.4 43.0

57.1

40.1 40.4 38.9

53.8

38.2 38.6

30.1 32.227.0

1.0 2.14.8

13.39.4

(0.5) 1.6 1.6

9.1

(1.6) 0.7 1.68.3

(2.7) (0.1) (0.4)4.6

(2.5) (1.9) (2.8)

5.60.5 2.3

(0.7)

8.84.3

-$10

$0

$10

$20

$30

$40

$50

$60

$70

Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17

Non-programmaticrevenue Programmaticrevenue aEBITDA


REVENUEANDADJUSTEDEBITDA


42.8%45.8% 44.6%

48.4%45.3% 45.6% 47.5% 48.1% 45.9%

48.8% 47.3% 48.2% 47.0%42.0% 44.8% 46.4% 47.8% 50.6% 48.4%

52.7% 52.3%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17

GROSSMARGIN

GROSSMARGINTREND

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