Vercom Sa · GPW:VRC

Vercom Sa — Q1 2025 Earnings Presentation

38 slides from Vercom Sa's earnings presentation, May 20, 2025

  1. Slide 1: Q1 2025 Investor presentation

    | Q1 2025 Investor presentation 20 May 2025 : Scale beyond

  2. Slide 2: Disclaimer

    : Disclaimer By reviewing this material, you agree to the following limitations: The information provided was prepared by VERCOM S.A. (the "Company”) for informational purposes only and for the purposes of this presentation (the "Presentation"). This Presentation does not constitute or form part of

  3. Slide 3: Profitable growth fully in line with the 2025 guidance

    : Profitable growth fully in line with the 2025 guidance

  4. Slide 4: Q1 2025 financial results

    : Q1 2025 financial results Gross profit Organic growth y/y PLN 59m +16% Adj. EBITDA PLN 29m +23% Net income PLN 23m +38% : Scale beyond 44

  5. Slide 5: 15% YoY customer base growth

    : 15% YoY customer base growth Total number of customers +15% 98 000 85 100 Q1 2024 Q1 2025 : Scale beyond 55

  6. Slide 6: Consistently increasing dividend payouts

    : Consistently increasing dividend payouts Dividend payouts (PLNm) +10 PLNm +10 PLNm 45 35 25 2022 2023 2024 6

  7. Slide 7: Share buy-back up to PLN 30m

    : Share buy-back up to PLN 30m Shares buy-back up to 150 PLN / share Share buy-back 30 PLNm Up to: 150 PLN / share 7

  8. Slide 8: We are a fast-growing SaaS company

    : We are a fast-growing SaaS company

  9. Slide 9: Dynamic growth driven by organic expansion and value-accretive acquisitions

    : Dynamic growth driven by organic expansion and value-accretive acquisitions Revenue (PLNm) x40 2022: Global scale-up 496 2021: Debut on the WSE 337 2020: CPaaS leader in the CEE 260 179 117 59 78 20 34 12 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 9

  10. Slide 10: Vercom customer engagement flywheel

    : Vercom customer engagement flywheel Design & templates W CUSTOM Segmentation TRACT NE ERS Save time using our content AT creation tools and templates Boost customer engagement and loyalty by focusing on the right people Smart analytics Turn insights into actions with A/B testing advanced analytica

  11. Slide 11: Facilitating everyday communication between businesses and their customers

    : Facilitating Our solutionseveryday are an communication inherent part ofbetween everydaybusinesses life and their customers 1111

  12. Slide 12: 20 years of experience rewarded with trust of landmark partners

    : 20 years of experience rewarded with trust of landmark partners 98,000+ Clients 12

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

    : Selling services to customers in 180 markets globally Team Top markets Other markets locations 13

  14. Slide 14: Strong focus on scalability to further grow international presence

    : Strong focus on scalability to further grow international presence +1m : SME Long-term target: Paying customers Targeting broader spectrum of customers : ENTERPRISE Globalization of the customer base : CEE : GLOBAL 14

  15. Slide 15: Increasing development capex on services with high growth potential

    : Increasing development capex on services with high growth potential

  16. Slide 16: Unified customer journey across all communication channels

    : We are providing unified customer journey across all communication channels Connect with customers Drive engagement Build your relationship Improve upselling Leverage your customer base Drive engagement via Stay in touch to nurture the Boost upselling by providing to connect with your clients adva

  17. Slide 17: Numerous RCS opportunities go far beyond SMS capabilities

    : Numerous RCS opportunities for our clients go far beyond SMS capabilities Video/Graphics Map reference Rich Card Carousel Google Wallet 17

  18. Slide 18: We intend to increase R&D capex for RCS

    : We intend to increase R&D capex for RCS R&D investment (PLNm) Planned increase in R&D associated with RCS in MessageFlow Increased investment into AI features in MailerLite +0.5m +0.8m 3,0 2,5 1,7 Q1 2024 Q1 2025 Q2 2025E 18

  19. Slide 19: Expanding our partnership network to tap new demand pockets

    : Expanding our partnership network to tap new demand pockets

  20. Slide 20: Strategic partnership with Azure Marketplace

    : Strategic partnership with Azure Marketplace Note A strategic partnership agreement with Microsoft was signed in Q1 2025 – MessageFlow is now available on Azure Marketplace By joining Azure Marketplace, MessageFlow is now visible to global customer base of Microsoft Azure and can benefit from dedi

  21. Slide 21: MailerLite is now available on Google Cloud

    : MailerLite is now available on Google Cloud Note A partnership agreement with Google Cloud was signed at the beginning of Q2 2025 MailerLite will gain visibility among the global user base of Google Cloud services and may become a significant source of additional leads Google Cloud customers can n

  22. Slide 22: Cross-selling opportunities with Shoper

    : Cross-selling opportunities with Shoper 20,000+ E-commerce clients who can benefit from communication solutions from Vercom MailerLite & MessageFlow to become recommended 1 providers of email and SMS for the Shoper clients Development team is already working on a dedicated 2 integration that will

  23. Slide 23: Healthy growth structure driven by customer adds and cross-selling

    : Healthy growth structure driven by customer adds and cross-selling

  24. Slide 24: Strong gross profit growth reflects the growing scale of operations

    : Strong gross profit growth reflects the growing scale of operations Gross profit (PLNm) +55% CAGR Q1 2021 – Q1 2025 59 51 40 16 10 Q1 2021 Q1 2022 Q1 2023 Q1 2024 Q1 2025 24

  25. Slide 25: Gross profit growth driven by customer adds and cross-selling of services

    : Gross profit growth driven by customer adds and cross-selling of services Gross profit (PLNm) +16% 60 +118% +12.900 +4.5 p.p. 55 +118% +12,900 50 45 59 40 51 35 30 Q1 2024 New clients NER* Margin change Q1 2025 * NER (Net Expansion Rate) – change in revenue from CPaaS customers generating revenue

  26. Slide 26: Modest SG&A growth amounting to <10% YoY

    : Modest SG&A growth amounting to <10% YoY General and administrative expenses (PLNm) Note Stable level of G&A costs amounting to c. PLN 18m supported by streamlining of corporate structure and cost synergies 19,6 19,1 18,9 18,6 17,9 between Freshmail and MailerLite Effective cost management support

  27. Slide 27: Dynamic EBITDA growth in line with target growth trajectory

    : Dynamic EBITDA growth in line with target growth trajectory Adjusted EBITDA (PLNm) Note Q1 2025 EBITDA in line with target +39% CAGR Q1 2021 – Q1 2025 growth trajectory for 2025 Organic growth rate amounting to 23% YoY, driven by customer adds, increase of sales to existing clients and significant

  28. Slide 28: Strong cash generation capacity proven by increasing free cash flow

    : Strong cash generation capacity proven by increasing free cash flow

  29. Slide 29: High conversion rate of EBITDA into operating cash flow

    : High conversion rate of EBITDA into operating cash flow Adjusted EBITDA and net cashflow from operating activities (PLNm) Adjusted EBITDA Net cashflow from operating activities 116 104 91 91 64 61 38 28 28 30 Q1 2021 LTM Q1 2022 LTM Q1 2023 LTM Q1 2024 LTM Q1 2025 LTM 29

  30. Slide 30: Strong cash generation capacity underpinned by c. 18% FCF margin

    : Strong cash generation capacity underpinned by c. 18% FCF margin LTM EBITDA to LTM FCF bridge (PLNm) -15 6 -14 -5 76% EBITDA to FCF 116 conversion rate 88 18% 3) FCF margin 2) 1) 1) Adj EBITDA LTM Tax Capex Leasing NWC change FCF LTM 30

  31. Slide 31: Net income growth supported by decreasing leverage and interest rates

    : Net income growth supported by decreasing leverage and interest rates

  32. Slide 32: Strong net income growth driven by operating leverage and lower financing costs

    : Strong net income growth driven by operating leverage and lower financing costs Net profit (PLNm) Note Robust net profit growth +40% CAGR Q1 2021 – Q1 2025 of 38% Q1 2025 vs. Q1 2024 Net profit margin amounts to c. 21% in Q1 2025 Net income supported by: ▪ Operating leverage supported by stable le

  33. Slide 33: We have achieved net cash position

    : We have achieved net cash position Net cash (PLNm) Note M&A: Dividend: Dividend: PLN 260m PLN 25m PLN 35m Positive net cash position amounting to PLN 22m 22 11 Negative net debt / LTM EBITDA (-0.2x), down from 3.0x following the acquisition of MailerLite in Q2 2022 -31 -41 Stronger cash position m

  34. Slide 34: We aim to maintain ambitious 20%+ growth dynamics in 2025-2028

    : We aim to maintain ambitious of 20%+ growth dynamics in 2025-2028

  35. Slide 35: Organic EBITDA targets in the proposed new ESOP for 2025-2028

    : Organic EBITDA targets in the proposed new ESOP for 2025-2028 EBITDA targets in the 2021-2024 ESOP EBITDA targets proposed for the new 2025-2028 ESOP Organic EBITDA (2021-2024 ESOP) 230 Total EBITDA delivered 195 Organic EBITDA (2025-2028 ESOP) 165 135 110 85 75 60 55 45 37 37 2021 2022 2023 2024

  36. Slide 36: We are aiming to achieve PLN 300m+ total EBITDA by 2028

    : We are aiming to achieve PLN 300m+ total EBITDA by 2028 230+ 70+ 300+ PLNm PLNm PLNm Organic EBITDA M&A EBITDA Total EBITDA 36

  37. Slide 37: Key takeaways from Q1 2025 results

    : Key takeaways from Q1 2025 results Fully organic growth of EBITDA amounting to 23% YoY, in line with target growth trajectory for 2025, combined with dynamic net income growth amounting to 38% YoY Healthy growth structure driven by customer adds (+12,900 clients, c. 15% YoY) and cross-selling of s

  38. Slide 38: Thank you for your attention

    : Thank you for your attention

Vercom — Q1 2025 Earnings Presentation on 6ix