Articore Group Limited · ASX:ATG
Articore — FY2021 Earnings Presentation
38 slides from Articore's earnings presentation, Aug 19, 2021
Slide 1: Investor Presentation FY2021 Results Update
Investor Presentation FY2021 Results Update 19 August 2021 Redbubble Group (ASX RBL; ADR RDBBY owns and operates the leading global online marketplaces, Redbubble.com and TeePublic.com, bringing more creativity into the world. *The financial results have been audited and are on a delivered basis
Slide 2: Record FY2021 Results
Record FY2021 Results Gross Transaction Value Marketplace Revenue $701m $553m Spring Desert Night, Tropical Rising Pink and Green Plant Designed and sold by ↑ 48% floating ↑ 58% floating ↑ 60% cc1 ↑ 71% cc1 B U moderntropical T Artist Revenue Gross Profit $104m $223m ↑ 58% floating ↑ 66% floating ↑
Slide 3: Medium term aspiration
Apple Affirmation Tiger Sky Designed and sold by Obinsun by LauraGraves 1. Medium term aspiration Image] 3 3
Slide 4: Our Mission sits at the centre of what we do
Our Mission sits at the centre of what we do Creating the Worth theGalaxies Climb world’s largest Designed Designedsold and and by cabinsupplyco sold by Elentori marketplace for independent artists 4
Slide 5: Medium term aspiration to drive top-line growth and artist impact
Over the medium term, our aspiration is to drive top-line growth enabling a step change in scale and artist impact Driving top line growth Scaling the network improves Delivering value to artists through customer acquisition the customer experience and inspires them to create and loyalty reinforces
Slide 6: Achieving this will create a step change in the scale of the business
Achieving this will create a step change in the scale of the business Medium Term Aspiration $1.25b $1.5b+ in Marketplace Revenue in Gross Transaction Value $250m in Artist Revenue We believe this is achievable through organic investment and growth We will look for M&A opportunities that will help t
Slide 7: RB Group positioned to win in a ~US$300b+ addressable market
RB Group is uniquely positioned to be a significant winner in a ~US$300b+ addressable market eCommerce spend in addressable product categories1 RB Group is supported by favourable US$b macro trends 9%pa ＞ Structural shifts to eCommerce expected to endure Within our core ＞ Increasing consumer demand
Slide 8: Our confidence is built on a strong track record of topline growth
Designed and sold by Sophie Corrigan Our confidence is built on a strong track record of topline growth Marketplace Revenue 2030% A$m, FY17 CY24 CAGR 41% CAGR Source: RB internal data. 8
Slide 9: Investment against strategic themes phased over the next 3-5 years
Investment against strategic themes will be phased over the next 35 years CY24 CY2224 Amplified growth, CY21 Earned growth in core leveraging scale to drive Foundations laid markets through disciplined margin uplift for next phase of growth investment Group-level artist recruitment and account ma
Slide 10: FY21 operational highlights
2. FY21 operational Image] highlights Hummingbirds and Bees Designed and sold 10 by Cecilia Mok
Slide 11: Four strategic themes to lay foundations for next phase of growth
Current focus is on four strategic themes to lay foundations for next phase of growth Artist Acquisition and engagement of artists to support growth and improvement 1 activation and of the library of unique content engagement User acquisition Ongoing optimisation of user acquisition and transaction
Slide 12: Record $104m earned by artists across RB Group marketplaces in FY21
1 Artist activation and engagement Connected Creative Designed and sold by Micklyn Record $104m earned by artists across RB Group marketplaces in FY21 Selling artists (‘000, FY17 FY21 49% CAGR $104m Earned by artists in FY21 54% from FY20 (up 58% YoY Source: RB internal data. 12
Slide 13: Deepened investment in engaging the Artist Community
1 Artist activation and engagement RB Group deepened investment in engaging the Artist Community, seeing both new and old cohorts flourish Marketplace Revenue by artist cohort1 A$m, FY17 FY21 Onboarding cohort New artists added to marketplace growth in FY21, while earlier artist FY21 cohorts als
Slide 14: Acquisition accelerated in FY21 delivering 9.5 million unique customers
2 User acquisition and transaction optimisation Acquisition accelerated in FY21 delivering 9.5 million unique customers Unique customers (m, FY17 FY21 Customer acquisition highlights: 35% CAGR ● Organic channels showed continued strength, in line with overall customer growth ● Google Ads a stron
Slide 15: Over half of sales are from mobile, with apps growing rapidly
2 User acquisition and transaction optimisation Over half of sales are from mobile, with apps growing rapidly Marketplace Revenue from Mobile, A$m, FY17 FY21 55% Total Marketplace Revenue from mobile platforms in FY21 TeePublic mobile web Redbubble 14% Apps Redbubble Redbubble only Marketplace m
Slide 16: Investment and experimentation across the funnel
2 User acquisition and transaction optimisation Investment and experimentation across the funnel providing insights into future opportunities Transaction funnel Experiments and releases in FY21 Example Results Expanding reach into social New audience of Users channels, and improving audience 3.5m re
Slide 17: Repeat purchases made up 42% of MPR
3 Customer understanding, loyalty and brand building Repeat purchases made up 42% of MPR, with steady repeat purchase despite growth in customer base in FY21 Marketplace Revenue by purchase type A$m, FY17 FY21 Repeat purchases Cohort of new customers 67% from FY20 acquired in 1H21 was 62% larg
Slide 18: Foundational investment into a Customer Data Platform
3 Customer understanding, loyalty and brand building Foundational investment was made into a Customer Data Platform Customer Data Platform (CDP Redbubble and Teepublic both investment will enable: investing to structure first party 1. Improved audience data to ensure marketing understanding and tar
Slide 19: Brand positioning is resonating with media and target audiences
3 Customer understanding, loyalty and brand building Brand positioning is resonating with media and target audiences Both marketplaces are conducting experiments with Redbubble continues to drive strong PR branded commercials for target audiences engagement 31% increase in click through rate for 33
Slide 20: Localised 3P fulfilment network proved resilient and scalable
4 Product Range and 3rd Party fulfilment network The localised 3P fulfilment network proved resilient and scalable through the rapid growth of FY21 Prior year investments into the network enabled the Market RB Group fulfiller locations (#, as at 30 June 2021 business to respond to COVID in an agile
Slide 21: Physical product range changes delivered acquisition and conversion gains
4 Product Range and 3rd Party fulfilment network Physical product range changes delivered acquisition and conversion gains, along with quality uplift to drive repeat Designed and sold by LittleClyde Launch and refresh Align existing styles Deliver consistently great products to access more with our
Slide 22: First POD marketplace to launch caps at scale
4 Product Range and 3rd Party fulfilment network First POD marketplace to launch caps at scale Designed and sold by Andy Westface and Chestify 22
Slide 23: FY21 financial performance
Cut me someDogtor slacks Designed and sold by Obinsun 3. FY21 financial performance 23
Slide 24: Record FY2021 Results
Record FY2021 Results Gross Transaction Value Marketplace Revenue $701m $553m Spring Desert Night, Tropical Rising Pink and Green Plant Designed and sold by ↑ 48% floating ↑ 58% floating ↑ 60% cc1 ↑ 71% cc1 B U moderntropical T Artist Revenue Gross Profit $104m $223m ↑ 58% floating ↑ 66% floating ↑
Slide 25: Strong growth continuing to underpin key P&L lines
Strong growth continuing to underpin key P&L lines Marketplace Revenue GP GPAPA A$m, FY17 FY21 A$m, FY17 FY21 A$m, FY17 FY21 45% 41% 41% CAGR CAGR RB Group is built on a strong CAGR track record of growth ● Topline grew at CAGR of 41% since FY17 ● GP and GPAPA growth showing scalable
Slide 26: Truly global with opportunities to expand across all geographies
Truly global with opportunities to expand across all geographies % Total FY2021 Gross Transaction Value by Region Region business YoY A$m, FY17 FY21 ROW 1% 34% AU/NZ 6% 56% UK 11% 59% EU 15% 54% North America 67% 44% Source: RB internal data. 26
Slide 27: Growth across all product categories is driving diversification
Growth across all product categories is driving further diversification % Total FY2021 Gross Transaction Value by Product Category Category business YoY A$m, FY17 FY21 Artwork 11% 60% Homewares 11% 68% Stationery and 12% 11% Stickers Other Apparel 14% 46% Accessories 18% 119% T-shirts 34% 34% S
Slide 28: FY21 benefited by masks sales, particularly in 1H
FY21 benefited by masks sales, particularly in 1H Marketplace Revenue A$m, FY19 FY21 FY21 underlying Marketplace Revenue growth still strong at 47% ex. masks1 FY21 Marketplace Revenue substantially affected by seasonality with 64% of MPR in 1H vs 36% in 2H Source: RB internal data. 1. Based on M
Slide 29: Strong balance sheet provides flexibility to accelerate growth
Strong balance sheet provides flexibility to accelerate growth Closing cash balance $99m cash at bank with nil debt A$m, FY17 FY21 provides ample flexibility to: ● Accelerate mid-term growth through investments across four key strategic themes Cash Balance ● Fund M&A opportunities ● Consider opt
Slide 30: Near term outlook
Hey Jupiter Designed and sold by leafandpetal 4. Near term outlook Image] 30 30
Slide 31: Outlook
Outlook Marketplace Revenue A$m, FY19 FY22 In the near term, Redbubble will cycle strong prior period comparatives, particularly as mask sales contributed $57 million to FY21 Marketplace Revenue, resulting in FY21 underlying Marketplace Revenue of $497 million Slightly Redbubble expects FY22 Mar
Slide 32: Building margin and bottom line improvement as the business scales
Building margin and bottom line improvement as the business scales CY20 CY24 Implications Artist Revenue 98.6 $250m+ Step change in value for Artists Marketplace Revenue 521.7 $1.25b+ Grow MPR at CAGR of 2030% Grow the product portfolio while GP % of MPR 40.7% 4042% maintaining similar margin s
Slide 33: Q&A
Cat in planter Designed and sold by michelledraws Q&A
Slide 34: Appendix
Crystal Bohemian Honeycomb Cubes Designed and sold by Micklyn Appendix Island Lighthouse Designed and sold by Lisafrancesjudd
Slide 35: 4Q & FY21 Income Statement Summary - RB Group
4Q & FY21 Income Statement Summary - RB Group YOY 2-year CAGR YOY 4Q FY P&L A$M 4Q FY21 v 4Q FY20 4Q FY19 4Q FY21 YTD FY21 v YTD FY20 FY20 FY21 Growth Growth FY20 FY21 Growth Total Revenue 123.0 115.8 6% 27% 416.3 657.3 58% 1 Less: Artist Revenue 19.9 18.7 6% 28% 66.0 104.0 58%
Slide 36: Favourable working capital cycle, take-rate of ~$30.8 per $100 GTV
RB Group has a favourable working capital cycle, with high take-rate of ~$30.8 for $100 of GTV Inflows $100 $97.5 $30.8 GTV Received RB Group take-rate 0 13 days 2 weeks 4 weeks 3 months Outflows $2.5 $14.5 $43.9 $8.3 Payment Artist Fulfillers Tax platform Source: RB internal data. Analysis base
Slide 37: Glossary
Glossary ● Gross Transaction Value (GTV Gross Transaction Value less Taxes and Artist Revenue is equal to Marketplace Revenue. ● Marketplace Revenue: Total Revenue less Artist Revenue (i.e. margin) ● Constant currency: reflects the underlying growth before translation to Australian dollars for rep
Slide 38: About Redbubble Group
About Redbubble Group Founded in 2006, the Redbubble Group incorporates Redbubble Limited and its subsidiaries, including TP Apparel LLC TeePublic). The Redbubble Group owns and operates the leading global online marketplaces hosted at Redbubble.com and TeePublic.com, powered by over one million in