Hipages Group Holdings Ltd. · ASX:HPG
Hipages — H1 FY25 Earnings Presentation
32 slides from Hipages's earnings presentation, Feb 20, 2025
Slide 1: H1 FY25 Financial Results
(ASX:HPG) H1 FY25 Financial Results 20 February 2025 ROBY SHARON-ZIPSER I CEO & Co-Founder JACO JONKER I CFOO
Slide 2: Agenda
Agenda 1. H1 FY25 results overview 2. Financial & operational update 3. Strategic evolution & FY25 targets
Slide 3: H1 FY25 results overview
H1 FY25 results overview R O B Y S H A R O N - Z I P S ER CEO & Co-Founder hi pages Gr oup | 3
Slide 4: hipages Group at a glance
hipages Group at a glance (ASX: HPG) ANZ’s #1 platform to connect Strategic evolution from homeowners and tradies marketplace to SaaS platform Purpose: Tradie Job Future Transform the tradie industry, Building better lives for everyone Marketplace + Management + Services FY25 key strategic milestone
Slide 5: Continued momentum in H1
Continued momentum in H1 • Strategic evolution from marketplace to platform • Completed migration of all tradies to STP1 progressing to plan: • Ongoing migration to new price plans2 • Enhanced platform value underpinning future growth: +11% +9% Recurring Revenue ARPU • Positive free cash flow: FCF:
Slide 6: All Australian customers successfully migrated to single tradie platform
All Australian customers successfully migrated to single tradie platform STP roadmap H1 H2 FY24 FY26 FY25 FY25 2 apps Single Tradie Platform app (hipages tradiecore) Launched Beta Desktop Desktop GTM for all tradies Team management single tradie platform user enablement to complement the app capabil
Slide 7: H1 FY25 financial & operational update
H1 FY25 financial & operational update J AC O J ONKE R CFOO hi pages Gr oup | 7
Slide 8: H1 FY25 Group financial highlights
H1 FY25 Group financial highlights Revenue $6.8m $39.2m $40.6m MRR excl. GST Recurring revenue Total revenue Up 14% Up 11% Up 9% Operating revenue +10% Profitability $8.7m $0.1m $1.2m EBITDA1 NPAT1 Free cash flow EBITDA Margin 21% ( 1 ppt) H1 FY24: $0.3m H1 FY24: ($0.1m) Key drivers 34.9k $2,267 1.
Slide 9: Delivering sustainable growth
Delivering sustainable growth MRR excl. GST $m Total Revenue $m EBITDA $m Operating Cash Flow $m 9.4 40.6 8.7 9.0 6.8 37.4 8.4 6.0 32.6 6.9 30.1 6.7 5.1 4.9 26.9 5.8 6.0 4.2 4.2 4.2 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 FY21 FY2
Slide 10: Strong marketplace activity driving double-digit MRR growth
Strong marketplace activity driving double-digit MRR growth hipages Group MRR (excl. GST) 8,00,000 50.0% • Record new business yields driven by NSW COVID Post-COVID roll-out of higher value STP proposition 7,00,000 lockdowns home improvement 6.8 45.0% boom 6.4 • Further opportunity ahead, with 58% o
Slide 11: Operating leverage offsets increased H1 marketing investment
Operating leverage offsets increased H1 marketing investment Group operating expenses 1 as % of total revenue Marketing Short-term cost cutting 101% amid COVID pandemic • Planned additional in marketing spend in H1 driven by: 12% 86% • Development of new creative assets to support 4% 82% 78% 79% bra
Slide 12: Disciplined investment in platform continues
Disciplined investment in platform continues Group spend in Technology development1 (in $m) Technology spend continues to reduce as % of 27% revenue 25% Total Tech Technology development spend 24% 24% as a % of Revenue • Continued development of tradie platform 18.8 alongside marketplace optimisatio
Slide 13: Australian Operations
Australian Operations
Slide 14: Strong marketplace dynamics driving exceptional experience
Strong marketplace dynamics driving exceptional experience Connection1 volume growth reflects Exceptional homeowner experience continues strong supply and demand with near-record % of jobs connected with tradies hipages Australia hipages Australia 1,4050, 00 +4% 1 86% 1 84% 84% 84% 1,40,000 1,350,00
Slide 15: ARPU growth reflecting enhanced value proposition
ARPU growth reflecting enhanced value proposition hipages Australia ARPU ($) Key drivers of ARPU growth: +11% +8% • New customers joining STP at higher price points 2,50 • Existing customers on legacy plans 2,00 migrating to higher plans when contracts renew (to complete by October 2025) • Continued
Slide 16: Continued subscription tradie growth
Continued subscription tradie growth hipages Australia subscription tradies (‘000) +1% • Continued growth in subscription tradies vs 33,500 50% 33.1 33,00 pcp while increasing subscription prices and migrating to STP 40% 32,500 32.3 32.3 • Typical H1/H2 seasonality reflects 30% 32 , 00 31.8 cancella
Slide 17: Retention rate stable over time
Retention rate stable over time, with early positive signs from STP users hipages Australia MRR retention rate1 and ARPU hipages Australia • MRR retention is stable while delivering continued $2,374 ARPU ARPU growth after: $2,199 $1,985 • Tradiecore app migration (over 32,000 tradies) • Subscription
Slide 18: Record awareness from multi-channel brand investment
Record awareness from multi-channel ‘always-on’ brand investment • New brand platform ‘Start with hipages’ developed for both tradie and homeowner audiences Total Awareness • Investment in new creative 1 assets in H1, and brand +16% +12% marketing investment across both sides of the YoY YoY marketpl
Slide 19: New Zealand Operations
New Zealand Operations
Slide 20: Transition to full subscription model driving ARPU growth
Transition to full subscription model driving ARPU growth hipages NZ (Builderscrack) tradie count by product, and ARPU1 • Migration of all customers to full subscription model in H1 at higher price points, with longer $1,149 ARPU average contract length $971 • Prior subscription product was hybrid (
Slide 21: Full subscription model provides a strong platform
Full subscription model provides a strong platform to deliver enhanced value for tradies and consumers hipages NZ (Builderscrack) # Connections per tradie hipages New Zealand 24 • Subscription tradies are more active, 23 contributing to greater value exchange and 22 ARPU growth • Higher engagement r
Slide 22: Strategic evolution & FY25 targets
Strategic evolution & FY25 targets R O B Y S H A R O N - Z I P S ER CEO & Co-Founder hi pages Gr oup | 22
Slide 23: Ongoing migration enabling further ARPU and retention growth
Ongoing migration enabling further ARPU and retention growth Further ARPU growth to come, supported by the Growing retention opportunity as the number of continued price migration of all tradie accounts MAUs1 increases over time % of hipages AUS total tradie base (at Dec’24) Number of Monthly Active
Slide 24: FY25 targets
FY25 targets1 • Operating revenue $83m - $84m • EBITDA margin2 23% - 24% • Free cash flow $5m - $6m 1 Assuming no material deterioration in macroeconomic conditions impacting the Group's key markets under the existing strategy hi pages Gr oup | 24 2 EBITDA before significant items
Slide 25: Questions & Answers
Questions & Answers hi pages Gr oup | 25
Slide 26: Appendices Financial Summary
Appendices Financial Summary
Slide 27: H1 FY25 Financial Summary
H1 FY25 Financial Summary $’000 H1 FY25 H1 FY24 $ Var % Var Recurring 39,182 35,162 4,020 11% ● Recurring revenue 97% of total revenue Transactional 1,414 1,754 (340) (19%) ● Planned additional H1 marketing costs: Operating revenue 1 40,596 36,916 3,680 10% Other 3 494 (491) (99%) • Investment in ne
Slide 28: FY25 Statutory Balance Sheet
FY25 Statutory Balance Sheet $’000s 31-Dec-24 30-Jun-24 $ Var Cash 21,202 20,116 1,086 Trade and other receivables 1,438 1,480 (42) Other assets 1,768 1,248 520 Current tax asset 19 - 19 Total current assets 24,427 22,844 1,583 Other assets 20 - 20 Funds on deposit 1,270 1,150 120 Other investments
Slide 29: H1 FY25 Cash Flow
H1 FY25 Cash Flow H1 FY25 H1 FY24 Statutory $ Var $’000s Statutory ● Positive operating cash flow of $9.4m driving Receipts from customers (inclusive of GST) 43,413 39,965 3,448 Payments to suppliers and employees (inclusive of GST) (34,458) (31,168) (3,290) strong positive free cash flow of $1.2m I
Slide 30: Profit reconciliation
Profit reconciliation H1 FY25 H1 FY24 $'000 $'000 Reported EBITDA 8,683 8,720 Write back of deferred consideration related to acquisition of New Zealand subsidiary (Builderscrack) - (369) EBITDA before significant items 8,683 8,351 H1 FY25 H1 FY24 $'000 $'000 Reported profit after tax 73 3,705 Non-r
Slide 31: Glossary and definitions
Glossary and definitions Annual Revenue Per User (ARPU) The annual operating revenue divided by the average of the opening and closing number of total hipages Australia and hipages NZ (Builderscrack) tradies for the period. For H1 FY25, hipages Group ARPU of $2,267 is the blended result of hipages'
Slide 32: Disclaimer
Disclaimer Important notice The material in this presentation has been prepared by hipages Group Holdings Limited (ASX: HPG) ABN 67 644 430 839 (“hipages” or the Company") and is general background information about hipages’ activities current as at the date of this presentation. The information is
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