Vk International Public Js Com · RUS:VKCO
Vk International Public Js Com — VK — Q4 2021 Earnings Presentation
45 slides from Vk International Public Js Com's earnings presentation, 2022
Slide 1: Quarterly presentation Q4 2021
Quarterly presentation Q4 2021
Slide 2: Contents
Financial & segmental highlights…………………………………………….. 3 Advertising…………………………………………………………………………….. 12 VKontakte………………………………………………………………………………. 15 Odnoklassniki…………………………………………………………………………. 21 MY.GAMES…………………………………………………………………………….. 24 EdTech……………………………………………………………………….………….. 32 Youla………………………………….…………
Slide 3: Financial & segmental highlights
Financial & segmental highlights
Slide 4: Group revenue and EBITDA
Revenue, RUB bn • Group delivered 12% YoY revenue growth in Q4 +12% • Online advertising revenue growth expectedly slowed down but remained solid 37.1 33.0 (+15% YoY to RUB 14.7bn), with VKontakte being the largest component. Advertising trends were the strongest across performance and video formats
Slide 5: Group revenue dynamics
Group revenue dynamics, 330 tn Q4 2020 Online advertising 9.6 1064 2020 Online advertising Source: Internal data 0.3 MMO games MMO games 01 1.0 Community Education IVAS Technology O13 Community Education IVAS Technology OL Other revenue 3.3 Other revenue Q4 2021 125.8 2021 33.0 Q4 2020 106.4 2020 C&
Slide 6: Group EBITDA dynamics
Group EBITDA dynamics, RUB bn 41 7.3 Q4 2020 Revenue 26.9 2020 Revenue Source: Internal data 2.0 = mm "2 -1.7 Personnel expenses Personnel expenses Agent/partner fees -47 Agent/partner fees Marketing expenses -0.7 Marketing expenses Other OPEX Other OPEX Q4 2021 2021 73 Q4 2020 26.9 2020 C&S C&S Gam
Slide 7: Communications and Social revenue and EBITDA
Communications and Social Revenue, RUB bn Revenue growth drivers in Q4 2021: +15% • ~97% of Community IVAS and ~80% of Online advertising 60.4 revenues are booked within the C&S segment 52.7 +10% • The segment’s revenue was up 10% YoY in Q4 2021 16.2 17.9 driven by advertising revenue growth • VKont
Slide 8: Games revenue and EBITDA
Games Revenue, RUB bn Revenue grew by 5% in Q4 2021: +10% • Strong performance of Rush Royale was the main revenue 39.7 43.8 driver +5% • MY.GAMES saw no major game launches and completed no significant acquisitions in 2021 11.1 11.6 • MY.GAMES supported its existing portfolio with active 2020 2021
Slide 9: EdTech revenue and EBITDA
EdTech Revenue, RUB bn Revenue growth drivers in Q4 2021: +71% • 115 new courses and programs were launched 10.4 • The average check increased by 17% YoY to RUB 6.1 +38% 63,000 2.6 3.6 • Nearly 48,000 new paying learners were added (excluding the effect of adding the cumulative paid 2020 2021 Q4 202
Slide 10: New initiatives revenue and EBITDA
New initiatives Revenue, RUB bn Revenue growth drivers in Q4 2021: +41% • Recommendation platforms (Pulse and Relap) saw 11.6 combined revenue of ~RUB 473mn in Q4 (+115% YoY) 8.2 +26% • B2B projects saw strong growth 3.3 4.2 • Sales of the smart speakers provided a further boost • Youla continued to
Slide 11: Consolidated business highlights
Consolidated Socinese highligae : : ‘ : \
Slide 12: Performance, video and SMB ad revenue
Performance ad revenue Video ad revenue * SMB ad revenue +39% +31% +27% 2019 2020 2021 2019 2020 2021 2019 2020 2021 Strategy focus: gradual shift towards automation Strategy focus: wide range of ad formats of our Strategy focus: full-suite of simple business tools of ad campaign management to drive
Slide 13: App install and dynamic product ads
Ongoing improvements in algorithms which predict Dynamic ads automatically created from product feeds installs continue to drive the growth of mobile app ads (used in E-commerce) got new features for both user retargeting and user acquisition App installs Revenue from app install ads * Revenue from
Slide 14: Ad impressions needed per click
Average number of ad impressions per 1 user needed to get an ad click * 1.5x less ad impressions per 1 ad click which means ads became more relevant for users Improvement of predictive models 14 Source: Internal data. * Ads posted via MyTarget ad platform
Slide 15: VKontakte audience and revenue growth
VKontakte maintains its leadership among domestic VKontakte Russia DAU, mn social networks, with average Russian MAU of 72.5mn and DAU of 47mn in Q4 2021 • 64.8% of VKontakte users are accessing the 46.6 47.3 47.9 47.0 47.0 44.9 46.1 46.2 social network every day • VK reaches 45% of Russian internet
Slide 16: VK Mini Apps
Active Mini Apps – Number of apps, thousands • The number of VK Mini Apps rose by 53% YoY in December to >39,700, with MAU +53% of 46.3mn (+18% YoY) 36.8 39.7 34.0 29.4 • Monetization of the platform (mini apps 25.9 19.7 22.1 and games based on VK Mini Apps 15.5 12.2 platform) is progressing. The ma
Slide 17: VK Music launch
• VK Music was launched in Q4 2021, uniting all of VK’s music products, including the VKontakte Music section • Single content library and separate mobile app were created on the basis of the BOOM app • The updated brand style and logo, redesign, and new navigation were completed in the VKontakte Mu
Slide 18: VK Clips
• VK Clips video inventory exceeds 11.3mn clips from 2.4mn unique authors • New record of 437mn in daily video views has been set • Time spent per user grew by 103% YoY in December, with the number of users spending 10+ minutes per day on Clips rising by 135% during the same period 18 Source: Intern
Slide 19: VK Video updates
• The video catalog became available to unregistered users, which led to a 35% increase in anonymous views on desktop • The search engine now uses the newest machine learning technologies • A block with personalized video recommendations was added to the news feed. The video recommendations model wa
Slide 20: VK Calls
• Our service has become the first in the world to remove restrictions on the number of call participants • New Calls section, where users can create calls via link, view their call history, and call people from their phone contacts, was launched • The process of sending push notifications about inc
Slide 21: Odnoklassniki Q4 2021 highlights
Q4 2021 highlights OK continues to develop its own gaming platform 38mn 731mn RUB 3.2bn Average MAU in Postcards sent Russia Total payments to game developers in 2021 573mn 7.3bn Stickers sent Virtual gifts sent out of which Number of stickers sent RUB 1.2bn Payments to mobile game +9% developers in
Slide 22: Moments traction
Moments, service with disappearing photo and Views video, continued to see strong traction: • Moments MAU reached 26.9mn in December (up 2.2x YoY) and 28mn in early Q1 2022 • During Q4 the number of views and reactions grew to 434mn (4x YoY) and 46mn (4.8x YoY) respectively Nov Jan Mar May Jul Sep N
Slide 23: OK monetization tools
OK continues add new monetization tools Cross-integrations in Q4 • OK presented a social e-commerce +38% YoY service for the sale of goods through Revenue from the video broadcasts internal ads manager • VK Mini Apps apps appeared in the OK (tool for SMB) within desktop version: developers on the VK
Slide 24: Games segment revenue and EBITDA
Games segment revenue and EBITDA MY.GAMES revenue growth in 2021 vs. dynamics, RUB bn market growth (in USD) 43.8 8.6% 24.8 1.4%1 x2 10.4 5.0 2018 2021 MY.GAMES Global Game Industry Revenue EBITDA 24 Source: Internal data Source: Internal data, 1 - Newzoo estimate
Slide 25: MY.GAMES revenue by region and platform
• MY.GAMES revenue rose by 5.1% YoY in Q4 2021 (to RUB 11.6bn), accounting for 32% of Group’s revenues • International (ex Russia + CIS) gaming revenue share stood at 73% in Q4 2021 (vs 77% in Q4 2020) • 67% of revenues came from mobile in Q4 2021 (vs 76% in Q4 2020) International revenue exposure,
Slide 26: Top revenue generating products
TOP 10 revenue generating products in Q4 2021 War Robots, Warface francise, Rush Royale were the top-3 Lifetime installs 2 Q4 installs revenue generators in Q4 2021. Rush Royale was the largest Title (as of the end of (mn) revenue growth contributor December, mn) War Robots 206 6 Warface franchise 3
Slide 27: Paying users, ARPU and MAU
• Average MAU stood at 22.1mn in Q4 with QoQ growth driven by Average number of paying users, mn 1 hypercasual titles. A share of paying users was stable QoQ at 4.3% • Monthly ARPU stood at RUB 175 (-8% YoY, +10% QoQ) partially -9% 1.2 reflecting a slight shift in portfolio towards casual and hyperc
Slide 28: Revenue by game genre
100% 2% 90% 7% • Shooters account for around a half of MY.GAMES 16% portfolio (in terms of revenue) 80% • Strategy games, MMORPGs, RPGs are also a 70% 12% significant part of the portfolio, accounting for 12- 60% 16% of revenue each in Q4 2021 14% 50% • Strategy games’ share increased significantly
Slide 29: MY.GAMES mobile portfolio
• Major part of MY.GAMES revenue (67% in Q4) is generated from mobile titles • Rush Royale (IT Territory studio, launched in December 2020) was the largest revenue growth contributor in Q4 • Left to Survive game won in the Best Action Game category at the Best of Galaxy Store Awards 2021 War Robots
Slide 30: Rush Royale, Tacticool, Left to Survive
Rush Royale Tacticool Left to Survive • Celebrated its 1st anniversary • Achieved USD 50mn milestone • Achieved annual revenue by new monthly revenue record in cumulative revenues and record (RUB 2.2bn) in 2021 of RUB 600mn in January 2022 continued >30% YoY growth • EBITDA increased by 144% YoY and
Slide 31: Lost Ark and Warface
LOST ARK Warface • Demonstrated all-time record for both • Launched new season “Snowstorm” with Revenue & EBITDA in Q4 2021 a new battle pass, Storm weapons and • Launched “SORCERESS” major update equipment followed by “Winter introducing new class, skins and quests marathon” Christmas event • Launc
Slide 32: New registered and paid students
Number of new registered and paid students, • >9.9mn of combined cumulative registered learners as of the end of December (x1.5 YoY) thousands* • 1.1mn new registrations in Q4 (excluding the Registered effect of adding learners of Mentorama and Paid 1 112 SkillFactory) • The cumulative number of pay
Slide 33: Growing number of courses and professions
Growing number of courses and professions • Skillbox Holding Limited units launched 115 new 1 577 Skillbox Holding Limited units products courses and programs (professions and Incremental increase faculties) during Q4 1 337 1 224 • The average check stood at RUB 63,000 in Q4 (+17% YoY) 1 078 933 744
Slide 34: Youla revenues and EBITDA
Youla revenues, RUB mn Youla revenues and traffic growth 2017- 2021 +11% MAU, mn Revenue, RUB bn 1 131 39 1 015 33 Q4 2020 Q4 2021 27 • Drivers: rising share of B2B sales 24 Youla EBITDA, RUB mn 19 3.8 -59% -20% 3.0 EBITDA Margin, % 2.1 -227 1.1 -600 0.1 Q4 2020 Q4 2021 • Drivers: cost discipline an
Slide 35: VKontakte groups integrated with VK Classifieds
In Q4 2021 we improved the model which identifies post as an ad and increased the number of identified posts 1.5x QoQ VKontakte groups integrated with VK Classifieds, thousands 195 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2020 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 35
Slide 36: Joint Ventures: O2O & AliExpress Russia
Joint Ventures \ \ O20 & AliExpress Russia. Ww
Slide 37: O2O GMV
O2O GMV 1, RUB bn • O2O JV perimeter includes Delivery Club, r_keeper (former Foodplex), GMV Citymobil, Citydrive (former Youdrive), EBITDA (as % to GMV) Local Kitchen and Samokat (the latter -12% -16% -16% two businesses were consolidated in -20% -21% -20% 2020) -26% -25% 2 53.4 48.1 • O2O GMV incr
Slide 38: AliExpress GMV structure
AliExpress GMV structure 1, RUB bn Local Cross-border +46% YoY growth • 309mn orders in 2021 306 • 28.7mn active buyers in 2021 +124% • 35mn MAU, 12.5 mn DAU 110 210 • 13mn unique visitors in social 49 segment • >6% share of social segment in +22% total GMV 196 160 2020 2021 Source: Internal data; 3
Slide 39: AliExpress assortment structure
AliExpress assortment structure, mn SPUs 1 Local Cross-border YoY growth • >400 thousand total sellers +52% • >100 thousand local sellers 211 17 +184% • >3,2 bn SKU2 total assortment 195 139 +46% 6 133 2020 2021 Source: Internal data; 1 SPU – standardized product unit, not taking into account shapes
Slide 40: Additional information
Additional information Leverage. Headcount. _‘
Slide 41: Gross debt and net debt
Gross Debt, RUB bn 0.0x 0.0x 1.0x 2.4x 2.3x Gross Debt 74.2 63.9 incl. lease 15.4 liabilities / 15.2 LTM EBITDA 28.3 4.8 48.7 58.8 0.0 0.0 23.5 2017 2018 2019 2020 2021 Loans and Convertible Bonds Lease Liabilities Net (Cash) Debt including lease (0.7)x (0.4)x 0.6x 0.9x 1.6x liabilities, 50.5 RUB bn
Slide 42: Total headcount
• Headcount expanded by almost ~18% in 2021 (to 10,392 people), with Online Education being the main contributor in net hires, given the segment’s intensive growth and international expansion Total headcount, eop 10,392 8,842 6,277 5,667 4,419 1 2 3 Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Sourc
Slide 43: For further information please contact
For further information please contact: E-mail: ir@vk.company 43
Slide 44: Disclaimer
This presеntation has been prepared by VK Company Limited (the “Company”) and comprises the written materials for a presentation to syndicate research analysts or certain institutional investors. Matters discussed in this presentation may constitute forward-looking statements. Forward-looking statem
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