Tiny Ltd. Class A · TSX:TINY
Tiny Ltd. Class A — Investor Presentation (May 2023)
30 slides from Tiny Ltd. Class A's investor presentation, May 2023
Slide 1: Tiny Shareholder Presentation
Tiny Shareholder Presentation A High-Level Overview of Our Business May 2023
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation is being given by Tiny Ltd. (the “Company”) for information purposes only. Reliance on this presentation fo r the purpose of engaging in any investment activity may expose a person to significant risk of losing all of the money, property or other assets invested. T
Slide 3: Agenda
Agenda 1.Tiny Founding Story 2.Tiny Overview 3.WeCommerce Overview 4. The Merger 5. Q&A Page 3
Slide 4: Tiny Founding Story
Tiny Founding Story
Slide 5: Founding MetaLab
Founding MetaLab • In 2006, Andrew Wilkinson founded MetaLab, a mobile app design and development agency. Highly profitable from day one with many Fortune 100 clients. • Never raised any capital, bootstrapped with $0. • Chris Sparling joined as CFO in 2009. Began incubating startup businesses using
Slide 6: Founding Tiny
Founding Tiny • In 2016, Andrew and Chris started Tiny in the model of Berkshire Hathaway. • Using Mr. Buffett’s approach, Tiny has a small head office with two key functions: capital allocation and management selection / incentivization. We do not synergize costs or opportunities across our portfol
Slide 7: Tiny Business Overview
Tiny Business Overview
Slide 8: Tiny
Founded: 2016 FY21 Revenue: FY21 Adj. EBITDA: $110.8M $38.1M FY22 Revenue: FY22 Adj. EBITDA: $153.7M $36.8M Tiny 30+ Investments A Leading Technology Holding Company 2 Notes: Figures based on available audited consolidated financial statements and Management’s Discussion & Analysis for the Page 8 2
Slide 9: Tiny Key Business Units Overview
Tiny Key Business Units Overview Our businesses fall into four core buckets: Beam Dribbble Standalone Tiny Fund I Social network and Technology services Other software and Investment Fund subsidiary marketplaces platform services Page 9
Slide 10: Case Study
Case Study Beam is the platform for digital services businesses. MetaLab is the original agency that Andrew Description Wilkinson founded in 2006 and the largest company within Beam. With an almost 20 year operating history and clients like Google, Uber, Trip Advisor and many others, Brand Moat Beam
Slide 11: Case Study
Case Study Dribbble is a leading social network for graphic designers. With 2.5 million members, it is one of the Description largest 3,000 sites on the internet and the best place for designers to showcase their portfolio and to find contract and full-time work. Dribbble has an incredible moat: a n
Slide 12: Tiny Fund - General Partner
Tiny Fund - General Partner • In 2020, Tiny raised a $150M US fund to opportunistically buy businesses • The fund has a 0% management fee and 30% carry over an 8% hurdle. • There is ~US$53M remaining to be deployed in the fund. • Tiny is 20% of the LP, and has invested ~US$20M to date. • Tiny owns 5
Slide 13: Tiny Financial Summary
Tiny Financial Summary $153.7M Revenue Adjusted EBITDA $110.8M $83.9M $38.1M $36.8M $34.1M FY2020 FY2021 FY2022 Notes: Figures based on available audited combined consolidated financial statements and Management’s Discussion and Analysis for 2021/2020 and audited consolidated financial Page 13 state
Slide 14: Capital Allocation Overview
Capital Allocation Overview Balanced Capital Allocation to Support Growth and Returns Free Cash Flow Deployment Priorities 1. Organic Growth Investment 2. Acquisitions 3. Stock Repurchases 4. Dividends Page 14
Slide 15: We like to buy businesses that have:
We like to buy businesses that have: High margins Unique advantage Simple and sustainable Healthy profit business model High-quality team Successful Positive and ethical approach operations Page 15
Slide 16: Tiny's Investment Approach
Tiny's Investment Approach Dream Businesses Distressed / Special Situations Mismanaged Gems Compounding with a moat Turnarounds or Cigar Butts Operational Excellence Every once in a while, we are lucky enough Simple businesses with weak / at-risk We often acquire companies which are to buy a truly e
Slide 17: Tiny's Investment Approach | Case Studies
Tiny's Investment Approach | Case Studies Dream Businesses Distressed / Special Situations Mismanaged Gems Compounding with a moat Turnarounds or Cigar Butts Operational Excellence • Acquired Dribbble in 2017 • Acquired Abstract in 2021 • Acquired Stamped in 2021 • Hired best in class executive team
Slide 18: Why People Sell to Tiny?
Why People Sell to Tiny? Venture Capital Private Equity Tiny Huge valuation Full or partial cash out Full or partial cash out 3–6 month process 3–6 month process Deal size ranging from $1M- Founders committed to 5+ years Founders locked in with earnout $300M Terms could make your equity structure 30
Slide 19: WeCommerce Overview
WeCommerce Overview
Slide 20: The WeCommerce Story
The WeCommerce Story • In 2009, Andrew and Chris started a company called Pixel Union which became one of Shopify’s top software and theme ecosystem businesses. • Sold 80% to a family office in 2014. • In 2019, seeing the long-term growth opportunity of the Shopify platform, Tiny reacquired the busi
Slide 21: WeCommerce Key Business Units Overview
WeCommerce Key Business Units Overview SaaS Software Shopify Themes Agency Services Recurring revenue software Digital themes businesses that sell Services agency providing Shopify businesses that help merchants sell templates to Shopify merchants design and development services more Page 21
Slide 22: WeCommerce Financial Summary
WeCommerce Financial Summary Revenue $48.5M Adjusted EBITDA $38.6M $21.3M $15.2M $12.5M $11.6 $9.5 $6.3 $3.7 $3.5 FY2018 FY2019 FY2020 FY2021 FY2022 Notes: All figures based on public filings. Page 22
Slide 23: The Merger
The Merger
Slide 24: Why did Tiny Merge with WeCommerce?
Why did Tiny Merge with WeCommerce? • Tiny had been exploring going public via a variety of paths including a standalone IPO and mergering with other public businesses. Being public is optimal for capital allocation: ability to issue equity, better access to debt/bonds, and the ability to repurchase
Slide 25: Merger Transaction Summary
Merger Transaction Summary • Tiny merged at $691M equity value and WeCommerce at $5.12 / share, which equates to $220M fully diluted equity value. • $5.12 / share consideration to WeCommerce which represented a 161% premium to the last close price prior to announcement and 158% premium to the 30-day
Slide 26: Pro Forma Financial Profile
Pro Forma Financial Profile Merger Creates a Leading Technology Holding Company FY2021 Pro Forma Revenue $38.6M $110.8M $149.4M Adj. EBITDA $11.6M $38.1M $49.7M Adj. EBITDA % 30% 34% 33% Notes: Figures based on available audited combined consolidated financial statements and Management’s Discussion
Slide 27: Pro Forma Financial Profile
Pro Forma Financial Profile Merger Creates a Leading Technology Holding Company FY2022 Pro Forma Revenue $48.5M $153.7M $202.2M Adj. EBITDA $9.5M $36.8M $46.3M Adj. EBITDA % 20% 24% 23% Notes: Figures based on available audited consolidated financial statements and Management’s Discussion & Analysis
Slide 28: Tiny Co-Founders
Tiny Co-Founders Andrew Wilkinson | Co-Founder & Co-CEO Andrew is the public face of Tiny, driving the majority of our deal flow via his writing, podcast, and social media presence. He is focused on identifying future areas of growth and opportunity, both within the existing portfolio and future acq
Slide 29: Leadership Team
Leadership Team Ampere Chan | President Ampere was formerly the CFO of Tiny, and was involved in overseeing Tiny’s portfolio company operations, mergers and acquisitions, and capital allocation. Post merger, he has moved into a President role, overseeing day-to-day operations. Ampere is a CPA, CA an
Slide 30: Q&A
Q&A