Yougov Plc · LSE:YOU
Yougov — FY2019 Earnings Presentation
44 slides from Yougov's earnings presentation, Oct 8, 2019
Slide 1: Full Year Results to 31 July 2019
Full Year Results to 31 July 2019 Strong growth in earnings, exceeding targets for five-year plan
Slide 2: FY19 Summary
FY19 Summary Revenue growth of 17% (2018: 9%) – Underlying business1 growth of 10% - well ahead of the market2 Adjusted operating profit3 up by 45% to £18.3m – 45% underlying business1 growth Adjusted earnings per share3 up by 30% to 14.9p (2018: 11.5p) Adjusted operating profit margin3 up 2
Slide 3: Strong growth over the last five years
Strong growth over the last five years £m Adjusted Operating Profit* Adjusted Operating Profit Margin* 20 13% 14% 18 11% 18.3 12% 16 14 10% 8% 12 12.6 8% 10 6% 5% 5% 6% 8 8.0 6 4% 4 5.4 3.4 3.9 2% 2 0 0% FY14 FY15 FY16 FY17 FY18 FY19 * In these Full Year results and in future, we are using a revised
Slide 4: Targets: 50/50 Split and EPS Growth
Targets: 50/50 Split and EPS Growth Early achievement of a key commercial objective Strong top-line performance In 2014 we stated that a key objective was to increase the In 2014 when we set out five-year plan targets they were proportion of revenue from Data Products & Services, considered stretchi
Slide 5: Achievement of first five-year growth plan; second plan underway
Achievement of first five-year growth plan; second plan underway FY to FY to FY to FY to FY to FY to FY to FY to FY to 31 July 31 July 31 July 31 July 31 July 31 July 31 July 31 July 31 July 2015 2016 2017 2018 2019 2020 2021 2022 2023 YouGov Direct Global presence US & APAC footprint Universal Plat
Slide 6: Financial Update
Financial Update Alex McIntosh, Chief Financial Officer
Slide 7: Financial Highlights
Financial Year to Year to % Highlights 31 July 2019 £m 31 July 2018 £m Change Group Revenue 136.5 116.6 17% Cost of Sales (24.2) (21.5) 13% • Group Revenue increased by Gross Profit 112.3 95.1 18% 17% to £136.5m (10% underlying business growth) Gross Margin % 82% 82% - • Gross Profit Margin remained
Slide 8: Balance Sheet
Year to Year to 31 July 2019 31 July 2018 Balance Non-Current Assets £m £m Sheet Goodwill Other intangible assets 65.6 16.7 52.1 13.3 Other non-current assets 15.7 12.6 Total 98.0 78.0 Current Assets Trade and other receivables 34.7 36.1 • Receivable days down to 47 Cash 37.9 30.6 days from 56 days
Slide 9: Cash Flow
Cash Year to Year to Flow 31 July 2019 £m 31 July 2018 £m Cash flows from operating activities Statutory operating profit 19.8 11.8 Non cash movements 9.5 11.2 • Cash flow generated from operations of £35.3m: 124% of Net working capital movement 6.0 0.6 adjusted EBITDA Cash generated from operations
Slide 10: Performance by Product and Service: Revenue
Performance by Product and Service: Revenue Continued growth in Data Products and Services Year to Year to Underlying business* Change 31 July 2019 31 July 2018 revenue change % £m £m % Data Products 41.5 30.4 36% 25% Data Services 37.2 29.0 28% 11% Total Data Products & Services 78.7 59.4 32% 18% C
Slide 11: Performance of Product and Service: Adjusted Operating Profit
Performance of Product and Service: Adjusted Operating Profit* Data Products driving growth Year to Year to Operating Profit Growth Operating Margin 31 July 2019 31 July 2018 % % £m £m Data Products 14.1 9.4 50% 34% Data Services 7.4 6.1 21% 20% Total Data Products & Services 21.5 15.5 39% 27% Custo
Slide 12: Performance by Geography: Revenue
Performance by Geography: Revenue Continued growth in key markets Underlying Year to 31 July 2019 Revenue Year to Year to Change business* 31 July 2019 31 July 2018 % revenue UK Americas £m £m change % Mainland Europe Middle East Asia Pacific UK 41.2 31.3 31% 18% Americas 56.4 48.2 17% 5% 7% 7% 29%
Slide 13: Performance by Geography: Adjusted Operating Profit
Performance by Geography: Adjusted Operating Profit* Mainland Europe profitability grows with management focus on region Year to 31 Year to Operating Operating Margin Year to 31 July 2019 Operating Profit July 2019 31 July 2018 Profit Operating Operating Growth UK Americas Profit Profit % 2019 2018
Slide 14: Product & Operational Update
Product & Operational Update Sundip Chahal, Chief Operating Officer
Slide 15: Data Products revenue: BrandIndex and Profiles
Growth in YouGov BrandIndex and YouGov Profiles increasingly sold 45 period: under the combined YouGov Plan & Track proposition 29% 40 38.9 35 • Our flagship brand intelligence service 30 • 30.2 Revenue £m Covers 40 markets worldwide • US remains largest market 25 23.4 20 15 • Our ground-breaking au
Slide 16: Data Services revenue
Growth in period: Our Data Services division incorporates our fast- 40 28% turnaround services, including our market leading YouGov Omnibus 35 37.2 30 29.0 25 Revenue £m • Our fast-turnaround service • Attracting more multi-national clients, leading to more 23.3 20 multi-country projects 17.9 • Mark
Slide 17: Custom Research adjusted operating profit margin
Growth in • Quantitative and qualitative research directed by our 25% period: sector specialists 10% • Scope, scale and complexity of projects varies: Adjusted Operating Profit Margin 22% 20% • One-off studies 20% • Tracking studies for individual clients 15% • Syndicated studies sold to multiple cl
Slide 18: Investments in product development and technology
Investments in product development and technology • We are investing in our websites, apps and dashboards to make it easier for our clients and the public to interact with our data • We continue to invest in developing our proprietary technology, including our analytics software Crunch • A first ver
Slide 19: Investment in panel
Investment in panel • We continue to invest in our proprietary online panel to increase our global research capabilities and maintain the high-quality of our data • We now have 8.3 million panellists worldwide, across 40 countries • During the year, we established a panel and operations in Canada UK
Slide 20: New markets and sectors, bolt-on acquisitions
New markets and sectors, bolt-on acquisitions Two new organic operations Bolt-on acquisitions Canada This year Two tech start-up acquisitions Mexico USA-based agency with technology for linking UK-based audience Five new affiliate partners survey data with digital touchpoints to provide conversation
Slide 21: Further development of global infrastructure, focus on global accounts
Further development of global infrastructure, focus on global accounts Global Infrastructure Global Accounts • Cultivating a global presence without need for employees in every • In the coming year we country will be building out our • Enhancing our scalability by investing in Centres for Excellence
Slide 22: Strategy Update
Strategy Update Stephan Shakespeare, Chief Executive Officer
Slide 23: Best panel - Best data - Best tools
Strategic growth plan • Our ambition is to create a universal platform for the ethical and safe sharing of opinion and personal data • We want YouGov to be the world’s leading provider of marketing and opinion data • This ambition is supported by three strategic pillars (see later slides) • The unde
Slide 24: All brought together on a universal platform
Vision Vast, Syndicated Data continuous, All brought together single-source Research Services on a universal data collection MRP platform Crunch The success of this vision is underpinned by our three strategic pillars Direct Customisation Targeting & Activation Data Public Ethical Integration Data A
Slide 25: Data Integration
Data Integration Fully integrating custom research and client Data Integration service with our data and tools Integration means both: 1. Connecting the uses of our data – creating new value from existing data 2. Customisation for clients – opening up new revenue streams • We are investing in our te
Slide 26: Public Data
Public Data Expanding YouGov Public Data as a public service, for brand Public Data reputation, panel engagement and showcasing our data • We provide far more data for public value than any other research company • YouGov Ratings is our new popularity and awareness metric available for free on our w
Slide 27: Ethical Activation
Ethical Activation Enabling activation on our platform Ethical Activation • ‘Activation’ is the process of using data to create targetable audiences Step 1 Step 2 Step 3 for online advertisers and delivering YouGov creates highly Our partners scale the Partner removes seed marketing to them accurate
Slide 28: Ethical Activation and YouGov Direct
Ethical Activation Enabling activation on our platform Ethical Activation and YouGov Direct • YouGov is now breaking down the barrier between research and activation • With YouGov Direct, members make their opinion and behavioural data available for in-depth, targeted research within a marketing and
Slide 29: Ethical Activation: progress so far
Ethical Activation Enabling activation on our platform Progress so far: • The first pilot of YouGov Direct in early 2019 proved highly successful • A commercial version of the app has since been developed • A commercial head of the product is now in place, based in New York • Team of nine based in t
Slide 30: Long-term growth targets
Long-term growth targets Three long-term targets define our growth plan for 2019-23: 1 2 3 Double Double Achieve an Adjusted* Group Revenue Group Adjusted* Earnings Per Share Operating Profit Margin compound annual growth rate in excess of 30% *In these Full Year results and in future, we are using
Slide 31: Group Outlook
Group Outlook Stephan Shakespeare, Chief Executive Officer
Slide 32: Group Outlook
Group Outlook • Strong pipeline of sales opportunities for our syndicated data products • Continued opportunities for growth in syndicated-aligned custom research • Continued investment in technology and geographic expansion to support scaling, in line with our strategic growth plan • Significant op
Slide 33: Thank you
Thank you YouGov
Slide 34: About YouGov
About YouGov corporate.yougov.com
Slide 35: YouGov is a global research data and analytics group
YouGov is a global research data and analytics group Our mission is to supply a continuous stream of accurate data into what the world thinks, so that organisations can better serve the communities that sustain them
Slide 36: Proprietary global panel of over 8 million people
Each day, our highly engaged proprietary global panel of over 8 million people provides us with thousands of data points on consumer opinions, attitudes and behaviour
Slide 37: Continuous data stream combined with research expertise
We combine this continuous stream of data with our Profile Target research expertise to provide insights that enable intelligent decision-making and informed Evaluate Measure conversations Track Plan
Slide 38: Track record for accuracy trusted by clients and media
YouGov has a track record for accuracy and is trusted by clients and “They produce a more “Outperformed all others. By a the media alike to tell representative, more accurate lot… clearly stood ahead of the them what the world national survey than the pack.” competition… stands out as a top thinks p
Slide 39: YouGov is one of the most quoted market research sources
research sources most quoted market YouGov is one of the - 10,000 20,000 40,000 50,000 60,000 70,000 30,000 YouGov Ipsos Survation Source: Meltwater Opinium Kantar Worldpanel IDC Comres Populus Nielsen OnePoll Gartner Forrester Panelbase Euromonitor GfK United Kingdom, 1 August 2018 to 31 July 2019
Slide 40: YouGov serves some of the world's most recognisable brands
YouGov serves some of the world’s most recognisable brands Over 4,000 clients – media agencies, media owners and brands
Slide 41: The best panel: one of the world's largest research networks
The best panel: YouGov has one of the world’s largest international research networks Partner and affiliate panels YouGov panels YouGov offices
Slide 42: The best data: collect, store and connect
COLLECT The best data: Large engaged longitudinal panels in all key global markets Single-source data means every response, collected As the pioneer of online through various channels, can be tied back to a known (and market research, willing) individual innovation is core to YouGov’s culture, and S
Slide 43: The best tools: Crunch, YouGov Direct, Collaborate
The best tools: YouGov’s products and Our data analytics and visualisation tool services are Crunch makes data processing faster, more accurate and gives users control over their data analysis. underpinned by our innovative and proprietary technology and tools Our blockchain-based platform for membe
Slide 44: YouGov: Best panel, Best data, Best tools
YouGov Best panel Best data Best tools corporate.yougov.com