Sinch Ab · OMXSTO:SINCH
Sinch Ab — Q1 2022 Earnings Presentation
18 slides from Sinch Ab's earnings presentation, Apr 28, 2022
Slide 1: Q1 2022 Investor Presentation
Q1 2022 Investor Presentation 28 April 2022 Oscar Werner, CEO Roshan Saldanha, CFO Thomas Heath, Chief Strategy Officer & Head of Investor Relations
Slide 2: A global leader in cloud communications and mobile customer engagement
SEK 19.4bn SEK 38bn SEK 1.8bn 4,294 64 countries with net sales in the Market Cap Adj. EBITDA in the people local presence past 12 months past 12 months a global leader in cloud communications Over 150,000 Listed on NASDAQ in Stockholm, Sweden and mobile customer engagement customers Scalable cloud
Slide 3: Adjusted EBITDA per share
Adjusted EBITDA per share Adjusted EBITDA per share, rolling 12 months • Financial target to grow Adjusted EBITDA per share > 20% per year, 2.50 measured on R12M basis 2.00 • Strategy to combine organic and acquired growth 1.50 • Metric is affected by timing of share issues and consolidation of acqu
Slide 4: First quarter highlights
First quarter highlights 01 02 03 Significantly increased Higher margins following Focus areas for 2022 scope and scale acquisitions • Net sales growing 96%, Gross • Gross margin at 32% in Q1 22 vs • Increased organic gross profit profit 156% and Adj EBITDA 183% 26% in Q4 21 growth • Diversified ear
Slide 5: Gross profit evolution
Gross profit evolution Gross profit, SEKm • Minimum commitment to a multinational global mobile operator Organic Acquisitions FX signed mid-2021 causing a 2% 2% +145% +9% 2,500 negative impact on GP in Q1 2022 SEKm 29 71 2,096 • Unable to immediately pass on full 245 2,000 carrier price increases in
Slide 6: Opex development
Opex development Adjusted Opex, SEKm 1,600 • Slower opex growth in 2020 due to 1,400 1,336 Covid-19 outbreak 1,200 • Increased opex base during 2021 1,000 584 877 – Sales & product initiatives 800 176 586 597 – Preparations for upcoming, 600 551 564 large acquisitions 400 752 551 564 586 597 701 – B
Slide 7: Messaging
Messaging • 25% transaction growth, Net sales and profit development (SEKm) 23% organic net sales growth, -1% organic gross profit growth 5,000 4,436 4,566 • COGS increases, price adjustments towards large 4,000 3,568 customers and volume 3,380 3,083 commitments affect gross margin 3,000 • MessageMe
Slide 8: Voice & Video
Voice & Video • Inteliquent contributes most of the Net sales and profit development (SEKm) business in Voice & Video 5,000 1,600 4,566 • 1% revenue growth in local 4,436 1,432 currencies and -1% GP growth in 1,400 4,000 Inteliquent compared to Q1 21 1,200 3,568 3,380 3,083 • 9% impact on gross prof
Slide 9: Email
Email • Email segment created upon closing of Pathwire acquisition Net sales and profit development (SEKm) • 27% revenue growth in local currencies and 18% GP growth in 350 330 Pathwire compared to Q1 21 300 245 • Gross margin affected by 250 (74%) investment in scalability (hiring & cloud hosting v
Slide 10: Operators
Operators Net sales and profit development (SEKm) • 17% organic revenue growth in local currencies and 12% organic 400 GP growth compared to Q1 21 356 350 333 • Strong performance in Messaging Interconnect services to mobile 300 276 269 operators 250 224 • Adjusted EBITDA margin stable at 200 9% (8%
Slide 11: New operating model
New operating model Enterprise & Developer & Business Unit Voice Applications SMB Messaging Email President President President President President Anders Olin Ed O’Hara Will Conway Eduardo Henrique Paul Perrett • 46% of proforma GP* • 32% of proforma GP • 11% of proforma GP • 11% of proforma GP Fin
Slide 12: Financials
Financials CAD sinch
Slide 13: Income statement
Income statement Q1 Q1 SEKm 2022 2021 2021 R12M Net sales 6,550 3,350 16,177 19,377 • Adjusted EBITDA is different from Cost of goods sold and services -4,454 -2,530 -12,244 -14,168 EBITDA primarily due to acquisition Gross profit 2,096 820 3,933 5,209 costs, integration costs, and share- Other oper
Slide 14: Reconciling Cash flow with Adjusted EBITDA
Reconciling Cash flow with Adjusted EBITDA Q1 Q1 SEK million 2022 2021 2021 R12M Adjusted EBITDA 760 269 1,322 1,814 • High conversion of Adjusted Paid interest -49 -11 -34 -63 EBITDA to cash flow before Paid taxes -99 -57 -253 -295 changes in working capital Other items -46 25 153 73 Cash flow befo
Slide 15: Cash flow
Cash flow Q1 Q1 SEKm 2022 2021 2021 R12M • Change in working capital affected Cash flow before changes in working capital 566 226 1,188 1,528 Change in working capital -426 361 -859 -1,646 by late payments from a few major Cash flow from operating activities 140 587 329 -118 customers and return to
Slide 16: Days outstanding
Days outstanding Days Sales Outstanding Days Payable Outstanding 83 77 76 69 70 68 31 Dec 2020 31 Dec 2021 31 March 2022 31 Dec 2020 31 Dec 2021 31 March 2022 • Must relate balance sheet items to proforma L12M • Limited change to DSO in last year and quarter revenues to correctly calculate DSO and D
Slide 17: Financial targets
Financial targets Adjusted EBITDA per share, rolling 12 months Targets: 2.50 • Adjusted EBITDA per share to grow 20% per year 2.00 • Net debt < 3.5x adjusted EBITDA over time 1.50 Performance: 1.00 • Adjusted EBITDA per share grew 36% in Q1 22, measured on a 0.50 rolling 12 month basis • Proforma Ne
Slide 18: Thank you!
Thank you! To get in touch, contact: Ola Elmeland, Investor Relations Director investors@sinch.com