Stingray Group, Inc. · TSX:RAY
Stingray — Q4 FY2024 Earnings Presentation
23 slides from Stingray's earnings presentation, June 2024
Slide 1: Investor Presentation – Fourth Quarter 2024 Results
Investor Presentation Fourth Quarter 2024 Results June 2024
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER This presentation has been prepared by Stingray Group Inc. (“Stingray” or the “Corporation”) solely for information purposes. Recipients of this presentation may not reproduce or otherwise redistribute, in whole or in part, this presentation to any other person. Unless indicated oth
Slide 3: Music Everywhere, All Day, Every Day
WHO WE ARE Music Everywhere, All Day, Every Day AM PM At home Morning commute At work Evening commute Commercial Entertainment • Television • Mobile app • Mobile app • Mobile app • Mobile app • Television • Mobile app • Apple CarPlay • Web player • Apple CarPlay • Television • Mobile app • Smart spe
Slide 4: Integrated Business Ecosystem Powered by Music
WHO WE ARE Integrated Business Ecosystem Powered by Music Our vision is to deliver the best curated audio and video experiences for consumers and businesses globally 1,000 employees globally ONE integrated tech infrastructure Over 500 licensing relationships that power our 3 core divisions and diver
Slide 5: Orchestrating Customer Engagement Through High Value B2B Partnerships
WHO WE ARE Orchestrating Customer Engagement Through High Value B2B Partnerships FAST Retail Media (Retailers) Retail Media (Advertisers) In car SVOD / CPS Commercial / Business 5
Slide 6: Investment Highlights
WHO ARE WE Investment Highlights 1 Fast-growing business segments fueling organic growth Retail media (Stingray Advertising), streaming services and connected cars 2 Expert in global music distribution & rights management More than 400 million subscribers through multiple platforms, 100 radio licens
Slide 7: Market and Divisional Updates
Market and Divisional Updates 7
Slide 8: Stingray Business – Building Solid Momentum for Growth
BUSINESS – CONSUMERS – RADIO Stingray Business – Building Solid Momentum for Growth • Stingray Business powers commercial experiences for over 140K locations worldwide • In Q3, we secured Stingray Business’ largest-ever agreement (5 years) with Bank of Montreal (1,900 locations across North America)
Slide 9: Stingray Advertising – A Solution for the Retail Media Fast-Growing Category
BUSINESS – CONSUMERS – RADIO Stingray Advertising – A solution for the Retail Media Fast-Growing Category • Retail media is marketing to consumers at or near their point of purchase, online or in-store • Retail media is one of the fastest growing advertising trends. US retail media ad spend is expec
Slide 10: Stingray Advertising – North America's Largest Audio Advertising Network
BUSINESS – CONSUMERS – RADIO Stingray Advertising – North America’s Largest Audio Advertising Network • Continued expansion of the network within the total addressable market of 300,000 locations in Canada and the US • Collaboration with Mood Media: both our teams are diligently working in unison, s
Slide 11: Consumers - Digital Fueling Organic Growth
BUSINESS – CONSUMERS – RADIO Consumers - Digital Fueling Organic Growth • Pivoted product offerings to become the leading music distributor in audio and video channels through : • FAST channels • Connected cars • SVODs & Apps and more • The transformation and expansion of Stingray’s Broadcast and St
Slide 12: FAST & AVOD – New Global Partnerships to Accelerate Growth
BUSINESS – CONSUMERS – RADIO FAST & AVOD – New Global Partnerships to Accelerate Growth • Advertising revenue from Connected TV in the United States is projected to surpass 40 billion U.S. dollars by the year 2027(1) • Penetrated the connected TV market by distributing channels over Free, Ad-Support
Slide 13: FAST & AVOD – New Global Partnerships to Accelerate Growth
BUSINESS – CONSUMERS – RADIO FAST & AVOD – New Global Partnerships to Accelerate Growth Up 217.1% vs Q4F23 • FAST business has experienced an exceptional surge in 44,612 growth, demonstrating significant and sustainable potential with a 217.1% YoY growth in streaming hours • Continued aggressive dis
Slide 14: Connected Cars - The Next Frontier for Streaming Services
BUSINESS – CONSUMERS – RADIO Connected Cars - The Next Frontier for Streaming Services Stingray Karaoke, with its massive 100,000 songs catalog, is becoming an increasingly popular default value-added service in cars globally, a sector experiencing tremendous growth: • Stingray signed a global deal
Slide 15: SVOD & Apps - Expanding Audience in Streaming with Strategic Partnerships
BUSINESS – CONSUMERS – RADIO SVOD & Apps - Expanding Audience in Streaming with Strategic Partnerships • Tapping into a market that is expected to grow 65% to 1.5B subscriptions by 2026 • Focused attention on profitable SVOD products and B2B2C distribution (in lieu of Apps, B2C) • Favor partnership
Slide 16: SVOD & Apps - Expanding Audience in Streaming with Strategic Partnerships
BUSINESS – CONSUMERS – RADIO SVOD & Apps - Expanding Audience in Streaming with Strategic Partnerships Down 3.9% vs Q4F23 • Leveraging global relationships with Amazon, Singing Machine and CLIQDigital through new markets and 816 810 new product launches 805 795 796 784 • Continue to grow in the SVOD
Slide 17: Stingray Radio – A Leading Radio Operator in Canada
BUSINESS – CONSUMERS – RADIO Stingray Radio – A Leading Radio Operator in Canada • Performing better than its Canadian peers, capturing share in local markets through our direct sales force. Large clients (National) continue to wait on the sidelines amid recessionary fears • National airtime is up 6
Slide 18: Financial results
Financial results 18
Slide 19: 4th Quarter 2024 Business and Subsequent Highlights
FINANCIAL RESULTS 4th Quarter 2024 Business and Subsequent Highlights MAY Stingray Partners with Virgin Media O2 to Bring ZenLIFE and Qello Concerts to UK Audiences Stingray Launches Qello Concerts, ZenLIFE and Stingray Classica on Samsung TV Plus in Mexico and Brazil APRIL ZenLIFE Launches on Prime
Slide 20: Financial Results
FINANCIAL RESULTS Financial Results FOURTH QUARTER - 2024 YEAR TO DATE FY24 FY23 VAR FY24 FY23 VAR Revenues $83.7 M $78.9 M ▲ 6.0% $345.4 M $323.9 M ▲ 6.6% Adjusted EBITDA(1) $29.4 M $26.6 M ▲ 10.7% $125.9 M $114.1 M ▲ 10.3% ($46.3) M $4.4 M ($13.7) M $30.1 M Net income (Loss) ($0.67) per share $0.0
Slide 21: Strategic Revenues Leading to Continued Growth Perspective
FINANCIAL RESULTS Strategic Revenues Leading to Continued Growth Perspective Strategic vs Cash Flow Revenues Revenues per Division $345.4 $323.9 $306.7 49% 45% $282.6 61% 58% $247.9 $129.4 69% $128.7 $152.3 $123.5 $97.8 51% 55% $216.1 $195.2 39% 42% $154.5 $150.0 $159.1 31% FY20 FY21 FY22 FY23 FY24
Slide 22: Business Model Leading to High Margins & High Cash Generation
FINANCIAL RESULTS Business Model Leading to High Margins & High Cash Generation Adjusted EBITDA(1) and Net Income Cash Flow $125.9 $118.1 $114.3 $114.1 $118.5 $99.3 $104.2 $88.1 $86.9 $83.7 $82.0 $78.4 $74.4 $45.1 $63.7 $33.3 $30.1 $56.9 $14.0 $34.8 $38.1 -$13.7 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY
Slide 23: Unleashing the power of music
Unleashing the power of music