Vercom Sa · GPW:VRC

Vercom Sa — Q3 2022 Earnings Presentation

25 slides from Vercom Sa's earnings presentation, 2022

  1. Slide 1: Investor Presentation Q3 2022

    | Investor Presentation Q3 2022 : Scale beyond

  2. Slide 2: CPaaS Platform

    : CPaaS Platform CPaaS: cloud-based communication platforms that enable companies to build and develop lasting relationships with their audiences across multiple communication channels. With CPaaS CPaaS E-MAIL SMS CPaaS Platform Without CPaaS Client PUSH Final recipient OTT 2

  3. Slide 3: Facilitating everyday communication between businesses and their customers

    : Facilitating everyday communication between businesses and their customers 3

  4. Slide 4: A threefold increase in the scale of operations

    : A threefold increase in the scale of operations

  5. Slide 5: Financial results

    : Financial results Revenue Increase y/y PLN 76.0m +72% Gross Profit PLN 36.1m +157% EBITDA* PLN 16.4m +76% : Scale beyond *EBITDA normalized for the impact of non-recurring costs related to acquisitions and non-cash expenses 55 (ESOP)

  6. Slide 6: Customers

    : Customers Number of customers Increase y/y 62 800 +236% +236% 62 800 18 700 Q3 2021 Q3 2022 : Scale beyond 66

  7. Slide 7: Dynamic growth continued in Q3 2022

    : Dynamic growth continued in Q3 2022 Revenue (PLNm) +83% CAGR Q3 2020 – Q3 2022 76,0 44,3 22,8 Q3 2020 Q3 2021 Q3 2022 7

  8. Slide 8: Gross profit driven by new customers and margin expansion

    : Gross profit driven by new customers and margin expansion Gross profit (PLNm) +157% Margin Q3 2021 New customers NER(1) Q3 2022 expansion (1) NER (Net Expansion Rate) – change in revenue from customers generating revenue in the current and the comparative period. Applies to revenue from the CPaaS

  9. Slide 9: Global presence is a key driving force behind acceleration of the growth dynamics

    GRAFIKA TBU : Global presence is a key driving force behind acceleration of the growth dynamics

  10. Slide 10: International presence of MailerLite helps to achieve 40%+ growth dynamics

    : International presence of MailerLite helps to achieve 40%+ growth dynamics MailerLite revenue * (PLNm) MailerLite EBITDA +44% CAGR Q3 2020 – Q3 2022 PLN 5.3m EBITDA 3Q 2022 25% 21,2 EBITDA margin Q3 2022 15,1 10,2 Q3 2020 Q3 2021 Q3 2022 * Historical revenues converted at an exchange rate of EURPL

  11. Slide 11: Starting to extract synergies from the acquisition

    Nowy slajd zgodnie : Starting to extract synergies from the acquistion z rozmową na telco Two-way exchange of technology and know- how • Pilot access to selected Vercom services (sms/push channel) for MailerLite customers • Preparing to offer MailerLite's advanced email marketing solutions to Vercom

  12. Slide 12: Increasing diversification underpinned by c. 50% share of the international sales

    : Increasing diversification underpinned by c. 50% share of the international sales

  13. Slide 13: Selling services to customers in 180 markets globally

    : Selling services to customers in 180 markets globally +300 employees in 30 locations, incl. San Francisco, New York and Dublin Team Top markets Other markets locations 13

  14. Slide 14: 3x increase in the international sales

    : 3x increase in the international sales International sales (PLNm) 3x 47% Share of foreign sales in Group revenues 36,2 12,6 Q3 2021 Q3 2022 14

  15. Slide 15: Strong presence in the most attractive markets

    : Strong presence in the most attractive markets Structure of the international sales, leading markets Note Europe >85% of the international sales to North and South America and Europe Strong presence in the highly 58% attractive markets, including the United States The US is the largest export mark

  16. Slide 16: Strong focus on increasing international presence while targeting broader spectrum of customers

    : Strong focus on increasing international presence while targeting broader spectrum of customers ▪ Recurring revenue (subscription model) ▪ Global scale-up enabled by SME self-service sales model Addressing broader spectrum of customers ▪ Growing with the clients (pay-as-you-grow model) ▪ Stable cu

  17. Slide 17: Strong profitability and record-high cash flow

    : Strong profitability and record-high cash flow

  18. Slide 18: Room for further cost optimization

    : Room for further cost optimization General and administrative expenses (PLNm) Note Increase of SG&A costs associated mostly with the impact of new acquisitions Remaining SG&As remain flat vs. previous quarter (i.e. Q2 2022) Other Starting in Q3 2022, customer Sales and marketing expenses (PLNm) se

  19. Slide 19: Significant increase of adjusted EBITDA

    : Significant increase of adjusted EBITDA EBITDA (PLNm) Note +66% CAGR Q3 2020 - Q3 2022 Dynamic growth of adjusted EBITDA continued in Q3 2022 1) EBITDA margin remains high at 21%+ Proven ability to generate significant amount of free cash 2) flow despite dynamic growth 16,4 1) 9,3 6,0 Q3 2020 Q3 2

  20. Slide 20: Strong growth in FX-adjusted net profit

    : Strong growth in FX-adjusted net profit Adjusted net profit (PLNm) Note Adjusted net profit growth of 33% yoy +32% CAGR Q3 2020 - Q3 2022 Adjustments to net profit include non-cash expenses (mainly FX losses) and non-recurring items Adjustments in Q3 2022 include: ▪ Foreign exchange losses (PLN 4.

  21. Slide 21: Strong cash generation capacity

    : Strong cash generation capacity EBITDA to free cashflow bridge (PLNm) 92% EBITDA to FCF conversion 3) 2) 1) 1) 21

  22. Slide 22: Strong cash flow and safe debt level

    : Strong cash flow and safe debt level FCF (PLNm) Debt service (PLNm) Note High level of free cash flow (PLN 15.1m) significantly exceeding the current level of debt service costs +PLN 11.7m (PLN 2.2m) Safe level of net debt to annualized EBITDA (2.1x) PLN 42m of cash at the end of Q3 2022 15,1 Comp

  23. Slide 23: Long-term growth potential in the coming years

    : Long-term growth potential in the coming years

  24. Slide 24: Significant potential to maintain EBITDA growth trajectory in the coming years

    : Significant potential to maintain EBITDA growth trajectory in the coming years 120 EBITDA (PLNm) 100 +55% EBITDA growth drivers +30% CPaaS market growth CAGR in 2021-2025 80 x14 Increase of TAM 60 +PLN 25m ### 40 MailerLite and Oxylion EBITDA run rate 20 37 26 19 10 0 2018 2019 2020 2021 2024 targ

  25. Slide 25: Thank you for your attention

    : Thank you for your attention

Vercom — Q3 2022 Earnings Presentation on 6ix