Pureprofile Ltd. · ASX:PPL
Pureprofile — H1 FY2017 Earnings Presentation
34 slides from Pureprofile's earnings presentation, Feb 24, 2017
Slide 1: H1FY2017 results presentation
H1FY2017 results presentation Pureprofile Limited (ASX:PPL) Pureprofile H1FY17 Results presentation 1
Slide 2: Contents and presenting today
Contents The board Presenting Today • The opportunity • Results overview • Business Performance • Financial Update Andrew Edwards Geoff Nesbitt Paul Chan Executive Chairman CEO CFO • FY17 Outlook • Appendix Cliff Rosenberg Matt Berriman Non executive director Non executive director Pureprofile H1FY1
Slide 3: The opportunity
The opportunity Pureprofile is building products that will deliver value to hundreds of millions of people worldwide. We are creating a future where consumer profiles will become a personal asset that will empower people to make better decisions with access to information they have never had before.
Slide 4: H1FY17 results overview
H1FY17 results overview Pureprofile H1FY17 Results presentation 44
Slide 5: H1FY17 delivers strong growth with 58.3% revenue and 69.6% operating EBITDA growth
H1FY17 delivers strong growth with 58.3% revenue and 69.6% operating EBITDA growth Financial performance (statutory) Statutory revenue of $21.8m (pcp +58.3%) ● Result driven by strong organic and acquisition growth ● Australia $11.7m (pcp +74.3%) ● International $10.1m (pcp +43.4%) Operating EBITDA*
Slide 6: H1FY17 – pro forma financial performance
H1FY17 – pro forma financial performance Dec 16 Dec 15 % ● Continued revenue growth across each of Half year ended $m $m Change the three Business units Statutory revenue Data and Insights 6.4 5.4 18.5 ● Reduction in staff costs as a % of revenue Programmatic 11.5 8.4 36.9 to 31.2% (H1FY16 32.1%) Le
Slide 7: H1FY17 Segment revenue: By geography
H1FY17 Segment revenue: By geography • Positioned for growth in target geographies. • Established, scalable and cost effective UK & EU global workforce distribution. $5.5m • Senior executives relocated to London and 25% New York to accelerate development of US growing local teams. $4.6m • New expand
Slide 8: Business performance
Business performance Pureprofile H1FY17 Results presentation 88
Slide 9: Strategic execution in H1FY17 creates further scale in Australia and accelerates international growth
Strategic execution in H1FY17 creates further scale in Australia and accelerates international growth Cohort Group Acquisition • Acquisition completed 8 November 2016 • The addition of Cohort provides significant consumer acquisition and profile scale. • 58.8% pcp revenue growth in the UK accelerati
Slide 10: Pureprofile platform delivering clear competitive advantages with increasing pipeline and revenue
Pureprofile platform delivering clear competitive advantages with increasing pipeline and revenue Pureprofile Data and Insights continues strong organic growth • Continued strong organic growth with wins including CUB and AOL. • Of particular note, Pureprofile has won a major new client in Unilever
Slide 11: Outlook
Outlook Pureprofile H1FY17 Results presentation 11 11
Slide 12: Pureprofile FY17 outlook
Pureprofile FY17 outlook Pureprofile Data and Insights strong organic growth to continue • Expecting new publisher contract wins in Australia and Internationally for the industry leading Pureprofile platform. • Expansion of the News Corp alliance. Programmatic media businesses to continue internatio
Slide 13: H1FY17 financial update
H1FY17 financial update Pureprofile H1FY17 Results presentation 13 13
Slide 14: Balance sheet
Balance sheet ● Cash & cash equivalents of $5.1m at 31 As at: Dec 16 Dec 15 December 2016 $m $m Cash 5.1 1.8 ● Deferred consideration – Net working capital (2.5) (2.0) ● first $4m would be paid in PPL shares (escrowed until May 2018), Deferred consideration (8.5) (1.5) ● The balance is payable in ei
Slide 15: Cash flow
Cash flow ● Operating cash flow (excluding interest and For the half year ended: Dec 16 Dec 15 taxes) of $1.4m $m $m Operating EBITDA 3.5 2.8 ● New debt facility for working capital and Transaction & Non Operating costs (3.1) (1.1) acquisitions EBITDA 0.4 1.7 ● Tax refund due from R&D tax concession
Slide 16: New debt facility
New debt facility ● CBA facility established November 2016 $m Facility Facility Commitment Drawn ● Term: Facility A - Acquisition facility 4.0 (4.0) ○ Facility A - 3 years to 30 September 2019 Facility B - Working Capital 3.0 (1.9) ○ Facility B - 1 year to 7 November 2017 ○ Facility C - 1 year to 7
Slide 17: Appendices
Appendices Pureprofile H1FY17 Results presentation 17 17
Slide 18: Cohort acquisition
Cohort acquisition Pureprofile H1FY17 Results presentation 18 18
Slide 19: Cohort Group consideration
Cohort Group consideration Initial Payment Earn-out Tranche 1 Earn-out Tranche 2 Amount $18m $4m Up to $15m Cash or shares - Up to $10m at sellers election, any Consideration Type $15m cash/ $3m shares $4m shares amount above $10m at PPL election Timing of Payment Nov-16 Q2/FY2018 Q2/FY2018 Subject
Slide 20: Cohort Group valuation and earn out scenarios
Cohort Group valuation and earn out scenario’s $A Millions EBITDA Scenario's Initial Payment Earn-out Tranche 1 Earn-out Tranche 2 Total EBITDA(x) $3.0 $18 $0 $0 $18 6.00 $4.0 $18 $4 $0 $22 5.50 $5.0 $18 $4 $5 $27 5.40 $6.0 $18 $4 $12 $34 5.67 $6.5 $18 $4 $15 $37 5.69 $7.0 $18 $4 $15 $37 5.29 Consid
Slide 21: H1FY17 Transaction and non-recurring costs (pre-tax)
H1FY17 Transaction and non-recurring costs (pre-tax) 1HFY16 1HFY17 M&A transaction costs $0.2m $1.9m IPO transaction costs $0.2m - Non cash share based payments $0.2m $0.1m Restructuring costs $0.3m $0.9m Other $0.2m $0.2m TOTAL $1.1m $3.1m These costs are not considered as representative of the Gro
Slide 22: Market opportunity
Market opportunity Pureprofile H1FY17 Results presentation 22 22
Slide 23: Total addressable target market
Total addressable target market Pureprofile H1FY17 Results presentation 23
Slide 24: Global advertising growth by Media (2016-2017)
Global advertising growth by Media (2016-2017) Pureprofile H1FY17 Results presentation 24 18
Slide 25: Global display and video spend (US$ billions)
Global display and video spend (US$ billions) 50% Pureprofile H1FY17 Results presentation 31% 25 24% 31%
Slide 26: Group business units
Group business units Pureprofile H1FY17 Results presentation 26 26
Slide 27: Pureprofile business units
are IN EME BUS ig wt Ss OF CONNECTING EMPOWERED CONSUMERS WITH RELEVANT BRANDS
Slide 28: Pureprofile business units
Pureprofile business units $ $ $ Data & Insights Programmatic Media Performance Quantitative SaaS Platform Sparc Media Media Trading Adsparc Lead generation Data Research (demand side) (supply side) monetisation We help marketers We supply We help We trade across We help publishers We deliver indust
Slide 29: Pureprofile creates deep profiles from highly engaged members and generates revenues from targeted research surveys
Pureprofile creates deep profiles from highly engaged members and generates revenues from targeted research surveys Pureprofile charge brands, Pureprofile members Pureprofile members earn agencies and researchers to interact via a personalized rewards for completing target highly profiled feed match
Slide 30: Pureprofile partners with large publishers with millions of regular visitors and creates deep profiles
Pureprofile partners with large publishers with millions of regular visitors and creates deep profiles that are monetised creating scalable revenue streams Our SaaS technology platform enables publishers to profile their audience and deliver more relevant content and advertising experiences Pureprof
Slide 31: AdSparc earns revenue from publishers by improving revenue (yield) via programmatic media
AdSparc earns revenue from publishers by improving revenue (yield) via programmatic media (sell side) AdSparc increases publisher yield: •Takes publisher ad inventory and manages programmatic selling via large pool of display, video and native SSPs. Programmatic media yield optimisation •20-30% reve
Slide 32: Sparcmedia earns revenue from advertisers via programmatic media trading
Sparcmedia earns revenue from advertisers via programmatic media trading (buy side) of digital display advertising on the web and mobile Deeper insights Improved and improved targeting with optimisation Pureprofile with Pureprofile Data + Insights Data + Insights Pureprofile H1FY17 Results presentat
Slide 33: Thank you
Thank you Pureprofile H1FY17 Results presentation 33 33
Slide 34: Disclaimer
Disclaimer The information contained in this Presentation or subsequently provided to the recipient whether orally or in writing by, or on behalf of Pureprofile Ltd. (Pureprofile) or any of its directors, officers, employees, agents, representatives and advisers (the Parties) is provided to the recipie