Slide 1: Mission Control
Final results Mission presentation Control “Hightogether Working growth, huge potential, to achieve expanding market” business goals
Slide 2: Contents
Contents FY 2012 Overview Highlights dotMailer dotSurvey dotAgency Investment Summary Strategy Final results Mission presentation Control “Hightogether Working growth, huge potential, to achieve expanding market” business goals 2
Slide 3: Overview
Overview £12m £2.5m £9.5m Final results Mission presentation Control “Hightogether Working growth, huge potential, to achieve expanding market” business goals 3
Slide 4: Company Summary
Company Summary • Established 1999 • Top UK ESP - Over 5,000 Clients • 171 staff • Sales & Marketing – 57 • Development – 30 • SEO/Agency – 43 • Client Services – 23 • Admin/Finance/Directors – 18 • Number of new clients: 1,433 in FY11 & 1,813 in FY12 • Market Cap c.£35m • Offices in Croydon, London
Slide 5: Significant Shareholders
Significant Shareholders % • Ian Taylor 19.57 • Simon Bird 16.65 • Peter Simmonds 7.25 • New Edge Group SA 11.00 • BlackRock Inc. 10.93 • Legal & General Group PLC 6.96 • BlackRock Smaller Co. Trust PLC 3.7 Final results Mission presentation Control “Hightogether Working growth, huge potential, to a
Slide 6: Operational Highlights
Operational Highlights • Continued investment in upgrading IT infrastructure and further significant product development • dotMailer continues to be a significant source of revenue growth in the year with 1,684 new clients being added and increased “corporate” client wins • dotSurvey the new online
Slide 7: Financial Highlights – FY12
Financial Highlights – FY12 • Strong Recurring Revenues – 73% of total 34% • Cash Generative Increase in Turnover • £4m Cash in Bank 25%* Increase in • No Debt PBT • IFRS3 impact £3.5m EBITDA * Before exceptional items Final results Mission presentation Control “Hightogether Working growth, huge pot
Slide 8: Consolidated Income Statement
Consolidated Income Statement Final results Mission presentation Control “Hightogether Working growth, huge potential, to achieve expanding market” business goals 8
Slide 9: 5 Year Trends
5 Year Trends 2008 2009 2010 2011 2012 Revenue £2.1m £4.8m £6.0m £9m £12m EBITDA £0.7m £1.1m £1.5m £2.6m £3.4m 583% 520% Revenue EBITDA Growth Growth Final results Mission presentation Control “Hightogether Working growth, huge potential, to achieve expanding market” business goals 9
Slide 10: Successful Re-Classification
Successful Re-Classification • Announced 25 September • Reclassified as ‘Software and Computer Services; sub sector Internet’ (formerly in Media) • Reclassification reflects changes to business strategy - SaaS revenue via dotMailer now 66% of total revenue • FTSE All Share P/E ratings for the Softwa
Slide 11: Attractive Gross Margins
Attractive Gross Margins dotMailer dotSearch • Fixed cost infrastructure • Highly efficient process • Incremental costs very low • Monthly recurring revenue • Step costs at key volumes • Low cost offshore operations • Sales & marketing covered by licence fees • Gross margin >50% • Gross margin on mo
Slide 12: dotMailer suite
dotMailer suite Final results Mission presentation Control “Hightogether Working growth, huge potential, to achieve business andexpanding goals market” personal goals 12
Slide 13: Mission Control
Final results Mission presentation Control “Hightogether Working growth, huge potential, to achieve expanding market” business goals 13
Slide 14: dotMailer Platform Evolution
dotMailer Platform Evolution Final results Mission presentation Control “Hightogether Working growth, huge potential, to achieve expanding market” business goals 14
Slide 15: Competitive Positioning
Competitive Positioning A consolidating sector with active M&A ….. Final results Mission presentation Control “Hightogether Working growth, huge potential, to achieve expanding market” business goals 15
Slide 16: Organic Growth Strategy
Organic Growth Strategy Segmented approach around three key strands: • Low touch, credit card, self service SaaS products dotMailer “express”, dotsurvey, dotCommerce • Direct & Corporate Sales self service SaaS products Mid – large enterprises (UK centric but US & Australian Office opening Q3 2012)
Slide 17: Direct Sales to Corporate Clients
Direct Sales to Corporate Clients • Focus on Sales & marketing activity around high potential verticals Account management to developing existing client relationships • Corporate clients Client growth potential Often start spending at £1k pm • DHL our largest global corporate client - growth in reve
Slide 18: Some Clients
Some Clients Final results Mission presentation Control “Hightogether Working growth, huge potential, to achieve expanding market” business goals 18
Slide 19: Low Dependence on Largest Clients
Low Dependence on Largest Clients • 5 Largest Clients approx 5% of total revenue • Top 20 clients less than 15% of total revenue • Client base spread across many sectors • Circa. 50% of dotMailer customers on direct debit with 14 day payment terms Final results Mission presentation Control “Hightoge
Slide 20: dotMailer monthly volumes are growing rapidly
dotMailer monthly volumes are growing rapidly Final results Mission presentation Control “Hightogether Working growth, huge potential, to achieve expanding market” business goals 20
Slide 21: dotSurvey
dotSurvey Final results Mission presentation Control “Hightogether Working growth, huge potential, to achieve business andexpanding goals market” personal goals 21
Slide 22: 2500 users, 500 paying clients; market growth seen by SurveyMonkey
• 2500 users… 500 paying clients • Size of the market and growth seen by SurveyMonkey • $28m, $69m, $174m, $301m from 2008-2011 Final results Mission presentation Control “Hightogether Working growth, huge potential, to achieve expanding market” business goals 22
Slide 23: dotAgency
dotAgency Final results Mission presentation Control “Hightogether Working growth, huge potential, to achieve business andexpanding goals market” personal goals 23
Slide 24: dotAgency digital solutions and search marketing
dotAgency provide digital solutions and search marketing services to large corporations and brands. dotAgency take a strategic approach to UX, web development and digital marketing to achieve our clients’ commercial objectives. dotAgency are Magento silver-certified partners who have proven creative
Slide 25: Growth
Growth Final results Mission presentation Control “Hightogether Working growth, huge potential, to achieve business andexpanding goals market” personal goals 25
Slide 26: Core Growth Focus 2012/2013
Core Growth Focus 2012/2013 • Further enhancements to dotMailer platform • Marketing Automation • Connectivity to CRM and other business platforms • International development • Expansion of corporate sales • Expand our global footprint • VP Sales US starts Monday 15th October • Increase the proporti
Slide 27: Contractual Recurring Revenues
Contractual Recurring Revenues • Based on investor feedback • Goal is to increase the contracted element of recurring revenue • Steps taken • Review of pricing and discounts for 12 to 48 month agreements • Incentives for existing clients to convert to longer term contracts • Complete overhaul of sal
Slide 28: Summary
Summary Final results Mission presentation Control “Hightogether Working growth, huge potential, to achieve business andexpanding goals market” personal goals 28
Slide 29: Summary of Current Position
Summary of Current Position • High growth profitable business in high growth market sectors - cash generative • Significant opportunities for organic growth • Opportunities for international expansion into US • Opportunities for acquisitions & joint ventures • Young, energetic team with passion for