Motork Plc · EURONEXT:MTRK
Motork — H1 2022 Earnings Presentation
32 slides from Motork's earnings presentation, Jul 25, 2022
Slide 1: Half Year Results 2022
2022 HALF YEAR RESULTS July 25th 2022
Slide 2: Today's Speakers: Management team
TODAY’S SPEAKERS Management team AMIR ROSENTULER MARCO MARLIA ANDREA SERVO Executive Chairman Chief Executive Officer Chief Financial Officer 2
Slide 3: Highlights, Financials, Outlook, Q&A
01. HIGHLIGHTS 02. FINANCIALS 03. OUTLOOK 04. Q&A
Slide 4: Highlights
01. HIGHLIGHTS
Slide 5: H1 Key Highlights
Management team H1 22 KEY HIGHLIGHTS Financial Results Strategic Initiatives Outlook SaaS recurring Launch of Guidance revenues up 95% Spark platform confirmed ARR up 75% 2 milestone Robust pipeline o/w 25% organic Enterprise deals of opportunities Record 2 strategic Ramp-up of bookings months acqui
Slide 6: Dealers & OEMs Need to Adapt Fast
DEALERS & OEMS NEED TO ADAPT FAST c. 70% of users are ready to buy their next car online Distribution is not equipped with the right tools to meet the challenge yet Consumer behaviour paradigms in the automotive market are evolving rapidly Vehicle buyers demand seamless switch between physical and d
Slide 7: Consistent Growth Strategy Since IPO
CONSITENT GROWTH STRATEGY SINCE IPO Innovate Land & Expand Consolidate Extend product categories Unlock value from our base Acquire market shares Maintain healthy R&D Increase multi-product Enter new markets investments levels adoption with SparK Embrace future industry Strengthen focus Consolidate
Slide 8: Introducing the SparK Platform
INTRODUCING THE SPARK PLATFORM PROPELLING DEALERSHIPS INTO THE FUTURE SPARK COMPETITIVE ADVANTAGES Single integrated multifunctional environment Most comprehensive suite of digital solutions Continued product innovation 360° digital presence management Flexible, modular and customizable tools Intern
Slide 9: Delivering Ambitious Roadmap
DELIVERING AMBITIOUS ROADMAP MAJOR PRODUCT LAUNCHES - 2022 AI Marketing Engagement Predictive marketing instruments to create Advertising customized campaigns A unified customer service platform for for clusters of users more connected conversations Easy to use marketing Trusted partner for tool o e
Slide 10: Landing 2 Major Enterprise Deals
LANDING 2 MAJOR ENTERPRISE DEALS Jan. 2022 April 2022 GLOBAL DEALER CERTIFIED EUROPEAN AUTOMATED WEBSITE PROVIDER MARKETING AI PROVIDER INTERNATIONAL NETWORK EUROPEAN NETWORK Global Reach All European ~ 1k Dealers Dealerships 10
Slide 11: Keeping the Pace with M&A
KEEPING THE PACE WITH M&A 2021 2022 Country Spain France France Benelux Germany Country Rationale Market Share Product Market Share New Country Expansion SaaS Synergies Up & X-Sell X-Sell X-Sell Up & X-Sell Migration Revenues €3.0 M €0.8 M €1.4 M €3.0 M €2.0 M Acquired(1) ACV Upside +++++ +++ +++ ++
Slide 12: Financials
02. FINANCIALS
Slide 13: Record ARR Development
RECORD ARR DEVELOPMENT ARR(1) – ANNUAL RECURRING REVENUES (€M) 20.1 Consistently growing ARR at very strong pace +75% 16.3 5.7 15.1 Record H1 22 results underscoring 2.9 75% growth in ARR YoY 2.7 Robust 25% organic development 11.7 over the past 12 months 11.5 14.4 13.4 Ramping-up contribution 12.4
Slide 14: Strong Recurring Growth Development
STRONG RECURRING GROWTH DEVELOPMENT SAAS PLATFORM REVENUES (€M) RECURRING MIX (%) 11.4 75% growth in SaaS Platform 64% Revenues YoY 0.6 Recurring Revenues yielding a +75% +21p record 95% growth YoY Results driven by robust up and 10.8 43% cross selling coupled with growing 6.5 loyal customer base 1.
Slide 15: Overall Revenues Perspective at H1 22
OVERALL REVENUES PERSPECTIVE AT H1 22 REVENUES (€M) 16.9 Revenues of €16.9 m, up 32% YoY 1.9 12.8 Revenues growth driven by SaaS -16% 3.6 Platform up 75% Others 2.2 -10% Record level of booking levels reached in May and June 2022 Digital 4.0 Marketing 11.4 Marketing revenues continue to soften due t
Slide 16: Acceleration in Multi-Product Adoption
ACCELERATION IN MULTI-PRODUCT ADOPTION ACV(1) – ANNUAL AVERAGE CONTRACT VALUE (K€) Excluding recent acquisitions(2) 16.6 16.1 Solid ACV of €14k over 2021(1) Strong acceleration since IPO 14.5 14.5 13.9 ACV up 15% over the past 6 months Increased value proposition based on continued innovation Land a
Slide 17: Growing and Loyal Customer Base
GROWING AND LOYAL CUSTOMER BASE RETAIL CUSTOMER BASE(1) (#) ANNUALIZED ARR CHURN(2) (%) 6-MONTH NRR(3) (%) Excluding recent acquisitions(2) 7.9% 670 113% +11% +20 p 606 -5 p 93% 3.1% H1 21 H122 H1 21 H1 22 H1 21 H1 22 (1) Excluding customers from recently acquired companies (Dapda, FranceProNet, Fid
Slide 18: Investing in Team and R&D to Support Growth
INVESTING IN TEAM AND R&D TO SUPPORT GROWTH OPEX (1)(€M) 19.2 Opex increased to €19.2m over +55% 5.9 H1 22 (+55%) 12.5 Increase reflecting planned 3.4 investments in headcount and G&A 2.8 R&D to support growth Team almost doubled to 410 Marketing 3.6 with associated personnel costs rising to €12.6 m
Slide 19: Flexibility to Pursue Strategic Roadmap
FLEXIBILTY TO PURSUE STRATEGIC ROADMAP CASH BRIDGE (€M) Negative €2.7m Op. Cash Flow 43.3 following planned investments (2.7) impacting EBITDA (-€2.3m) in H1 22 (2.8) (4.9) 32.3 Maintaining healthy investments (0.6) in R&D and delivering on FY22 Roadmap c. €5m cash-out related to M&A (incl. FrancePr
Slide 20: Outlook
03. OUTLOOK
Slide 21: SparK Platform as Higher ACV Enabler
1 SPARK PLATFORM AS HIGHER ACV ENABLER SPARK PLATFORM – ILLUSTRATIVE FULL CUSTOMER DEPLOYMENT (ACV(1) vs. Roadmap) Example of a medium dealer using Website / Stock / CRM ~ €20 to 30k Engagement Advertising Automation Automation Reporting Reporting ~ €15k E-Reputation E-Reputation CRM CRM CRM Premium
Slide 22: Unlocking Value from Acquisitions
2 UNLOCKING VALUE FROM ACQUISITIONS MIGRATION PROCESS OVERVIEW – AVERAGE ACV PER CUSTOMER EVOLUTION(1) Typical Target(2) - Migration Playbooks (in €k per customer per year) €8.0k Mono-product targets with lower ACV than the Group’s average 700 clients €7.0k Lower ACV per cust. Unique opportunity to
Slide 23: Key Focus on Enterprise
3 KEY FOCUS ON ENTERPRISE LEVERAGING ENTERPRISE TRACK-RECORD(1) FOCUS AND MOMENTUM ON ENTERPRISE Enterprise pipeline ~ 50 Low € X00K ACV per deal to Low € XM Reach potential x Country Sales cycle 9-18 Months MTRK retention High (1) Illustrative – non exhaustive list 23 23
Slide 24: FY22 Guidance Confirmed
FY 22 GUIDANCE CONFIRMED REVENUES : €45-47M (+65% vs. FY21) ARR : €28-30M (+85% vs. FY21) EXCLUDING FY22 M&A c. 20% EBITDA Margin 2 to 3 ACQUISTIONS (1 completed + 1 under completion ) 24 24
Slide 25: Launched Initiatives to Materialize in H2
LAUNCHED INITIATIVES TO MATERIALIZE IN H2 ARR BRIDGE (€M) Excluding FY 22 acquisitions(1) 28 to 30 + 2.0 Robust H1 22 6M NRR already at 113% before SparK launch + 4.0 Targeting similar 6M NRR over H2 + 2.1 (4.9) on the back of SparK launch 3 18.2 + 2.3 2 Additional c. €2m ARR to derive 1 from M&A as
Slide 26: Q&A
04. Q&A
Slide 27: Appendix
APPENDIX
Slide 28: H1 2022 Profit and Loss
H1 2022 ― PROFIT AND LOSS H1 22 CONSOLIDATED PROFIT AND LOSS (Reclassified) In k€ H1 22 H1 21 Revenues 16 911 12 781 Costs for marketing and call center (3 418) (3 619) Personnel costs (12 608) (7 485) R&D capitalization 2 710 1 410 Other costs (5 902) (2 750) EBITDA Adjusted (2 307) 337 Extraordina
Slide 29: H1 2022 Revenues Breakdown
H1 2022 ― REVENUES BREAKDOWN 29
Slide 30: H1 2022 R&D Expenses
H1 2022 ― R&D EXPENSES HY 2022 R&D EXPENSES y.o.y. change In k€ H1 22 H1 21 y.o.y. change R&D expenses 4 560 3 325 37% - of which capitalised 2 710 1 410 92% - of which expensed in the income statement 1 850 1 915 -3% R&D expenses as a percentage of Revenues 27% 26% 1% 30
Slide 31: H1 2022 Cash Flow Statement
H1 2022 ― CASH FLOW STATEMENT H1 22 CASH FLOW STATEMENT (Reclassified) In k€ H1 22 H1 21 Cash - Beginning of the period 43 257 11 824 EBITDA Adjusted (2 307) 337 Decrease / (increase) in working capital 1 413 413 Decrease / (increase) in contract assets (1 799) (368) Operating free cash-flow (2 693)
Slide 32: H1 2022 Statement of Financial Position
H1 2022 ― STATEMENT OF FINANCIAL POSITION 32