Arandu Investimentos S.a · BMFBOVESPA:ARND3
Arandu Investimentos — GetNinjas — Q3 2022 Earnings Presentation
23 slides from Arandu Investimentos's earnings presentation, November 2022
Slide 1: Results | 3Q2022
RESULTS | 3Q2022 November, 2022
Slide 2: Executive summary
Executive summary: • Focus on adjusting the balance of platform, considering the impact of economic context and reduction of Marketing investment • Client requests was the metric most impacted by the factors above • On the other hand, we had an increase on request monetization • We continue to impro
Slide 3: GetNinjas
GetNinjas Biggest service Marketplace on Brazil Available on more than 4 thousand cities More than 4.5 million Professionals More than 5 million Requests per year 3
Slide 4: GetNinjas
GetNinjas 03 Professionals pay to give a quote 02 This request is 04 broadcasted to our professionals Client chooses the professional We are the 01 The client connection between who needs and requests a service who knows how to do it 4
Slide 5: Platform needs the balance of PROs and CLIs
Platform needs the balance of PROs and CLIs PLATFORM BALANCE ECONOMIC CONTEXT CLIENTS Reduction on online search for service • Online search for services in Brazil had an overall reduction Reduction on number of requests of 20%1 in comparison to 2021 • Additional reduction of 1% in August and 4,4% i
Slide 6: 3Q22 Highlights
3Q22 Highlights 1,0 MM 4,5 MM 175k Client Requests PROs Active PROs [+0,2MM vs 2Q22] [-7% vs 2Q22] [-7% vs 2Q22] [+0,9MM vs 3Q21] [-15% vs 3Q21] [-23% vs 3Q21] R$ 14,3 MM R$ 12,9 MM -R$ 2,7 MM -R$ 5,8 MM Net Revenues Gross Profit Net Loss Cash Burn [+7% vs 2Q22] [+9% vs 2Q22] [vs –R$8,8 MM no 2Q22]
Slide 7: Clients Requests
Clients Requests [# million] • On 3Q22 we had 1,0 million Clients -23% requests, a reduction of 7% compared to 1,4 2Q22 (and a 23% reduction compared to -7% 3Q21) 1,1 1,0 1,0 • Despite the reduction on volume, we have increased requests monetization and revenue generated by each request, resulting i
Slide 8: Client recurrence
Client recurrence [% total Clients] 56% • 55% of Clients were recurring in 2Q22, 54% 55% that is, they had previously made 53% 51% 48% 48% another service request on the platform • It is important to highlight the continuous evolution in Client recurrence, as a result of several initiatives to impro
Slide 9: Request by Category
Request by Category [3Q22 - % total requests] Design & Tech Cars Beauty & Fashion 4% 2% • The categories that concentrated the Classes 4% largest volume of requests continue to be: 5% • Home Renovation Consulting 5% Home • Technical Assistance Renovation 38% • Home Services Health 7% • These same ca
Slide 10: PROs base
PROs base [# million] • Higher Marketing investments in 2021, doubled our Professional 4,3 4,5 base 4,2 3,9 3,7 • Active PROs also doubled in 2021, 3,2 driven by Marketing investments 2,6 • Focused on conversion and 2,1 1,9 retention of those Professionals 1,7 1,6 on 2022 • Reduction on Professional
Slide 11: PROs Conversion rate
PROs Conversion rate [28-day conversion, base 100] • Important to highlight the continuous improvement on the efficiency of attracting 229 PROs 180 183 180 188 • We have refined the focus of 172 165 166 Marketing investments for PROs, 133 132 136 targeting profiles more aligned 115 to the objectives
Slide 12: Gross Revenue Composition
Gross Revenue Composition Gross Revenue [R$ million] -14% 18,9 +7% 0,1 1,8 16,3 16,3 0,1 Partnerships 15,3 0,1 Partnerships 1,1 0,1 1,1 Expiration 1,4 Expiration 16,9 15,1 Leads 13,8 15,1 Leads 3Q21 3Q22 2Q22 3Q22 12
Slide 13: Requests monetization
Requests monetization Revenue divided by number of Requests [R$ / request] • Increase in monetization of requests 13,65 • It can happen by increasing the 11,99 price of leads and by increasing leads per request 9,76 • On average, lead prices on 3Q22 are equal or lower than they were by the end of 20
Slide 14: Net Revenue and Gross Profit
Net Revenue and Gross Profit Net Revenue [R$ million] Gross Profit1 [R$ million; % Net Revenue] -13% 16,3 +7% -12% 14,6 +9% 14,3 14,3 13,4 12,9 12,9 11,8 89,3% 90,2% 88,1% 90,2% 3Q21 3Q22 2Q22 3Q22 3Q21 3Q22 2Q22 3Q22 1 – Payment costs (credit card charges and “boleto”) accounted on costs, all perio
Slide 15: Commercial and Marketing Expenses
Commercial and Marketing Expenses Commercial and Marketing Expenses [R$ million] 21,3 17,6 12,2 -7% -46% 11,1 10,1 9,4 9,2 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 15
Slide 16: Marketing efficiency
Marketing efficiency • High Marketing investments in 2021 Gross Profit minus Marketing Expenses [R$ million] accelerated the revenue growth of that year, but also implied in a negative contribution (considering 5,4 Gross Profit minus Marketing 3,5 Expenses) 3,0 1,9 1,7 • Since the end of 2021 we hav
Slide 17: General and Administrative Expenses
General and Administrative Expenses G&A Expenses1 [R$ million] -20% 18,7 +23% 2,9 14,9 14,9 12,1 15,8 3Q21 3Q22 3Q21 3Q22 Nonrecurring expenses G&A 1 – Nonrecurring expenses that impacted 1Q and 2Q 2022 (Strategic Consulting) has been concluded 17
Slide 18: People
People Employees (Total) [# employees] 238 255 240 • Compared to 2Q22, we had a 217 222 228 169 reduction of 12 employees (3 of which on Tech and Product) • Tech and Products represents 40% of total employees, a higher 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 percentage than in the past Tech and Product E
Slide 19: Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA 3T22 [R$ million] Reconciliation 1,9 -9,1 -11,0 EBITDA Stock Option Plan* Adjusted EBITDA 3T22 3T22 *Provision for Stock Options Plan, there was no exercise until this moment 19
Slide 20: Adjusted EBITDA Evolution
Adjusted EBITDA Evolution Adjusted EBITDA Evolution [R$ million] 1,5 0,4 0,6 -2,6 -5,4 -6,3 -9,1 -10,4 +2,8 -12,0 +4,7 -13,9 -19,1 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 20
Slide 21: Net Profit (Loss)
Net Profit (Loss) Net Profit (Loss) [R$ million] • 3Q22 Net Profit (Loss) represent a 69% improvement vs. 2Q22 and 1,4 0,2 0,4 a 75% improvement vs. 3Q21 -2,8 -3,7 -2,7 • Financial Results on 3Q22 +6,1 was R$ 8,6 million, in line -5,5 -6,9 +8,0 with the result of previous -8,8 quarter of R$ 8,2 mill
Slide 22: Cash Burn
Cash Burn Cash and Equivalents [R$ million] • Cash burn had a reduction Phase 1 – Structuring the company after Phase 2 – Higher efficiency, of 62% (from R$32 million on IPO, building the CLI and PRO basis financial control and profitability the last 9 months of 2021 to R$12 million on the first 9 3
Slide 23: Results | 3Q2022
RESULTS | 3Q2022 November, 2022