Tiny Ltd. Class A · TSX:TINY
Tiny Ltd. Class A — Investor Presentation (February 2024)
34 slides from Tiny Ltd. Class A's investor presentation, February 2024
Slide 1: Tiny Shareholder Presentation
Tiny Shareholder Presentation A High Level Overview of Our Business February 2024
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation is being given by Tiny Ltd. (the “Company”) for information purposes only. Reliance on this presentation for 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. Th
Slide 3: A Leading Technology Holding Company
Founded: 2016 (1) (2) Pro-Forma TTM Revenue: Tiny Fund I AUM: $200.0M $202.0M (1) (1) (3) Pro-Forma TTM Adj. EBITDA: ARR: $28.9M $39.0M A Leading Technology Holding Company (1) Recurring Revenue, and Adjusted EBITDA, are non-IFRS financial measures. See Appendix “A” for disclosures pertaining to the
Slide 4: Agenda
Agenda 1. Tiny Founding Story 2. Tiny Business Overview 3. Core Platform Highlights 4. Capital Allocation Strategy 5. Leadership 6. Our Advantage and Opportunities 7. Appendix
Slide 5: Tiny Founding Story
Tiny Founding Story
Slide 6: Founding MetaLab and Starting Tiny
Founding MetaLab and Starting Tiny • Andrew founded MetaLab, a mobile app design and development agency 2006 • Highly profitable from day one with many Fortune 100 clients • Never raised any capital, bootstrapped with $0 in external funding • Chris joined as CFO in 2009. Began incubating startup bus
Slide 7: Our Approach: The buyer sellers dream of
Our Approach Fast: 30-day diligence process Flexible: Simple structure with full or partial cash outs The buyer sellers dream of Culture: Kept as found Holding Period: Long-term Industry: Typically internet-based businesses
Slide 8: Why People Sell to Tiny
Why People Sell to Tiny We took our hard-earned lessons from building businesses and difficult experiences with private equity to create the buyer we wished existed Private Equity Full or partial cash out Full or partial cash out 3–6 month process Deal size ranging from $1M-$300M Earnouts or excessi
Slide 9: We like to buy businesses that have:
We like to buy businesses that have: High margins A unique advantage A simple business model Healthy profits A high-quality team Successful operations A positive and ethical approach
Slide 10: Tiny Business Overview
Tiny Business Overview
Slide 11: Tiny - Financial Summary - Annual
Tiny - Financial Summary - Annual $202.1M $200.0M Revenue (1) Adjusted EBITDA $149.4M $105.2M $49.7M $46.3M $40.4M $28.9M (1) (1) (1) (1) Pro-Forma FY2020 Pro-Forma FY2021 Pro-Forma FY2022 Pro-Forma TTM (1) Adjusted EBITDA is a non-IFRS financial measure. See Appendix “A” for disclosures pertaining
Slide 12: Tiny Key Business Units
Tiny Key Business Units Our businesses fall into four core buckets: Digital Services Marketplace Software + Themes Tiny Fund I Builder of digital products, Social network and SaaS Software Investment Fund like websites and apps subsidiary marketplaces and themes
Slide 13: Our Platforms - Financial Summary
Our Platforms - Financial Summary Pro-Forma Consolidated Pro-Forma Revenue by Segment % Contribution (2) (3) (2) (3) (2) (3) 2022 TTM 2023 2022 TTM 2023 2022 TTM 2023 Revenue $202.1M $200.0M Digital Services $81.0 $77.0 40% 39% (1) Recurring Revenue % 20% 20% Software Platform $48.5 $50.3 24% 25% (1
Slide 14: Capital Structure
Capital Structure Common Shares 179,262,949 RSUs, DSUs, PSUs 851,480 (1) Exercisable Options 39,618 (1) Remaining Outstanding Options 23,776 Fully Diluted Shares Outstanding 180,177,823 Officers and Directors ownership* ~80% Cash Position $22,643,639 Net Debt $108,996,149 * Beneficial ownership of c
Slide 15: Core Platform Highlights
Core Platform Highlights
Slide 16: Beam
Beam Market Position With a nearly 20 year track record, Beam creates cutting-edge digital products for global brands, including websites and apps. Past Clients Pradeep Nalluri leads the Beam platform, continuing to build on Beam's leading market position. Pradeep has executed a similar Leadership s
Slide 17: Creative Platform
Creative Platform • Dribbble is the largest independent social network for graphic and web designers. With 13 million members, it is one of the top 3,000 sites on the internet and the best place for designers to showcase their portfolio, build an audience, and to find contract and full-time work. Ov
Slide 18: WeCommerce Results
Description A group of software and custom digital theme businesses that support merchants, primarily in the Shopify ecosystem. SaaS Software Shopify Themes Recurring revenue software businesses Digital themes businesses that sell that help merchants sell more templates to Shopify merchants Jordan T
Slide 19: Tiny Fund I
Tiny Fund I GP Tiny Ltd. AUM US$150M Term 10 year • 0% Management fee and 30% Carry Fees and Carry • Tiny Ltd. holds 50% of the GP of Tiny Fund I Extension One 1-year extension
Slide 20: Incentive Alignment Across Beam
Incentive Alignment Across Beam Head Office 1. Platform leaders are compensated based on their underlying business performance 2. Performance is measured based on Return on Invested Capital 3. Bonus proceeds to leaders are used to purchase Tiny stock
Slide 21: Capital Allocation Strategy
Capital Allocation Strategy
Slide 22: Tiny's Hierarchy of Capital Allocation
Tiny's Hierarchy of Capital Allocation Balanced capital allocation to support growth and returns Free Cash Flow Deployment Priorities 1. Organic Growth Investment 2. Acquisitions 3. Stock Repurchases 4. Dividends
Slide 23: Tiny's Investment Approach
Tiny's Investment Approach Dream Businesses Distressed / Turnaround Mismanaged Gems Compounding with a moat Turnarounds 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 exceptional business wit
Slide 24: Tiny's Investment Approach | Case Studies
Tiny's Investment Approach | Case Studies Dream Businesses Distressed / Turnaround Mismanaged Gems Compounding with a moat Turnarounds Operational Excellence • Acquired Dribbble in 2017 • Acquired Abstract in 2021 • Acquired Stamped in 2021 • Hired best-in-class executive team • Distressed carve out
Slide 25: Leadership
Leadership
Slide 26: 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 27: Leadership Team
Leadership Team David Charron | Chief Financial Officer David brings over three decades of financial experience and acumen. David has extensive experience as a CFO of TSX-listed technology companies, including TeraGo Inc., and Redknee Solutions (now known as Optiva Inc.), where he oversaw significan
Slide 28: Our Advantage and Opportunities
Our Advantage and Opportunities
Slide 29: Tiny's Advantage - A Case Study
Tiny's Advantage - A Case Study A social networking platform for film enthusiasts to track movies watched, create favorites lists, make recommendations, and write reviews. The business grew quietly over the years since it was founded in 2011. Highly engaged user base, with Letterboxd outranking IMDb
Slide 30: Areas of Growth and Key Priorities
Areas of Growth and Key Priorities 1. Organic Growth • Team, product, and marketing investments made in the last few years to drive organic growth in all operating groups 2. Acquisition Opportunities • Several distressed and gem business opportunities for continued acquired growth at attractive rate
Slide 31: Appendix
Appendix
Slide 32: Appendix "A" - Non-IFRS Measures
Appendix "A" NON-IFRS MEASURES Investors are cautioned that the non-IFRS measures used below should not replace net income or loss (as determined in accordance with IFRS) as an indicator of the Company’s performance. These are supplemental measures management uses in managing the business and making
Slide 33: Appendix "A" Continued - TTM Figures
Appendix "A" Continued - TTM Figures (1) (1) (1) Pro Forma TTM figures are the sum of Tiny Ltd. 2023-YTD (which excludes WeCommerce from January 1 - April 16, 2023) + WeCommerce Holdings Ltd. 2023-Q1 + Tiny Capital Ltd. 2022-Q4 + WeCommerce Holdings Ltd. 2022-Q4.
Slide 34: Appendix "A" Continued - Annual Figures
Appendix "A" Continued - Annual Figures