Vercom Sa · GPW:VRC
Vercom Sa — Q2 2022 Earnings Presentation
25 slides from Vercom Sa's earnings presentation, 2022
Slide 1: Investor Presentation Q2 2022
| Investor Presentation Q2 2022 : Scale beyond
Slide 2: Message from Łukasz Szałaśnik, CFO
I am excited about the opportunity to actively participate in the future growth of Vercom and to assist the manangement board in their pursuit of building one of the leading global CPaaS players. I will do my best to leverage my professional experience to contribute to further dynamic development of
Slide 3: 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 3
Slide 4: Facilitating everyday communication between businesses and their customers
: Facilitating everyday communication between businesses and their customers 4
Slide 5: Financial results
: Financial results Revenue Increase y/y PLN 54m +35% Gross Profit PLN 20m +68% EBITDA* PLN 11m +24% : Scale beyond *EBITDA normalized for the impact of non-recurring costs related to acquisitions and non-cash expenses (ESOP) 5
Slide 6: Customers
: Customers Number of customers Increase y/y 60 700 +42 300 +230% 60,700 18,400 Q2 2021 Q2 2022 : Scale beyond 6
Slide 7: Dynamic growth of business scale
: Dynamic growth of business scale
Slide 8: Dynamic growth continued in Q2 2022
: Dynamic growth continued in Q2 2022 Revenue (PLNm) +37% CAGR Q2 2018 - Q2 2022 53.4 39.6 27.4 14.9 19.2 Q2 2018 Q2 2019 Q2 2020 Q2 2021 Q2 2022 8
Slide 9: Gross profit driven by new customers and margin expansion
: Gross profit driven by new customers and margin expansion Gross profit (PLNm) +68% +7 p.p 110% +42 300 19.7 17.1 14.4 11.7 11.7 Q2 2021 Nowi New klienci customers NER (1) Wzrost Marginrentowności expansion Q2 2022 (1) NER (Net Expansion Rate) – change in revenue from customers generating revenue i
Slide 10: Selected KPIs
: Selected KPIs Number of customers (‘000) NER(1) (%) Gross profit margin (%) +230% -4 p.p. +7 p.p. MailerLite 41.5 37% 30% 18.4 19.2 114% 110% Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 10
Slide 11: Global multi-level diversification
: Global multi-level diversification
Slide 12: Significant long-term growth potential
: Significant long-term growth potential 60.700+ customers in 180 markets >90% of revenue from the US & EU +300 employees in 30 locations, incl. San Francisco, New York and Dublin Team locations Top markets Other markets 12
Slide 13: Significant long-term growth potential
: Significant long-term growth potential : Bringing together best talents from all over the world to untap creativity and innovation 13
Slide 14: Growing diversification of the customer portfolio
: Growing diversification of the customer portfolio Increased geographic diversification of the customer portfolio Growing share of new segments: Publishing, FMCG and Utilities Wide spectrum of customers ranging from 60,700 enterprise clients and SMEs to private individuals clients Increasing custom
Slide 15: High business profitability
: High business profitability
Slide 16: SG&A costs driven by new acquisitions and non-recurring items
: SG&A costs driven by new acquisitions and non-recurring items General and administrative expenses (PLNm) Note Non-recurring items Non-cash expenses Increase of G&A costs associated mostly 0.2 1.3 with the impact of new acquisitions 1.0 Expansion of the cost base driven by 3.2 doubling the number o
Slide 17: Steadily growing EBITDA
: Steadily growing EBITDA Adjusted EBITDA (PLNm) Note +35% CAGR Q2 2020- Q2 2022 Dynamic growth of adjusted EBITDA continued in Q2 2022 1) EBITDA margin remains high at 20%+ Ability to generate significant cash flow despite the group's dynamic growth strategy 2) 10.8 8.7 1) 5.9 Q2 2020 Q2 2021 Q2 20
Slide 18: Net income impacted by foreign exchange losses and non-recurring items
: Net income impacted by foreign exchange losses and non-recurring items Adjusted net income (PLNm) Note +23% 23% growth of adjusted net profit increase resulting from operating growth Adjusted net profit margin at c. 14% Reported net profit impacted by foreign exchange losses resulting mostly from
Slide 19: Strong cash generation capacity
: Strong cash generation capacity EBITDA to free cashflow bridge (PLNm) - - 12.0 - 4) 1) 3) 10.0 1) -1.3 -0.2 1) - -1.4 8.0 -1.9 1.9 6.0 - -0.5 10.8 9.5 9.3 - 4.0 8.0 - 7.4 6.1 5.6- 5.5 - 3) 2.0 1) 2) 1) 0.0 EBITDA Transaction Koszty costs transakcyjne ESOP Tax Podatek R&D Leasing NWC change Zmiana
Slide 20: Development strategy
: Development strategy
Slide 21: From the CEE leader to the global player
: From the CEE leader to the global player Communications channels 3 6 x2 Team 100 300 x3 Customers 11 400 60 700 x5 Addressable market CEE Global x14 Before IPO After M&A 21
Slide 22: Development strategy
: Development strategy Customer Development Cross-selling services Increase in the scale of operations ✓ Expansion of cooperation from a single service ✓ Implementing an omnichannel strategy ✓ Increase business reach through acquisitions and to new business areas ✓ Increase in sales of high-margin s
Slide 23: Exponential growth of target addressable market
: Exponential growth of target addressable market Target addressable market (TAM) Global CPaaS market value (USDb) 14x wzrost TAM +34% CAGR 2021 - 2025 Global market 26 8 200 000 000 USD 18 13 European market 10 1 173 000 000 USD 8 2021 2022 2023 2024 2025 CEE market 577 000 000 USD Market growth dr
Slide 24: Significant potential to maintain EBITDA growth trajectory in the coming years
: Significant potential to maintain EBITDA growth trajectory in the coming years EBITDA (PLNm) 120 100 +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
Slide 25: Thank you for your attention
: Thank you for your attention