Newegg Commerce, Inc. · NASDAQ:NEGG
Newegg Commerce — Investor Presentation (January 2023)
22 slides from Newegg Commerce's investor presentation, January 2023
Slide 1: Investor Relations Presentation January 2023
Newegg Investor Relations Presentation January 2023 Confidential 1
Slide 2: Disclaimer
Disclaimer This presentation of Newegg Commerce, Inc. (the “Company,” “Newegg,” “we,” “us,” or “our”) includes "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These statements relate to future ev
Slide 3: Newegg Investor Relations Overview
Newegg Investor Relations Overview 1 Who we are 2 Our strategy and operations 3 Our financial profile 3
Slide 4: Our Vision: Provide Leading E-Commerce Platform Dedicated to Technology
Our Vision: Provide Leading E-Commerce Platform Dedicated to Technology NEWEGG: WHERE TECH EXPERTS GO TO BUY TECHNOLOGY TECH We popularized the PC-building We are the largest e-commerce movement and developed a cult company primarily focused on following among PC and DIY direct sales and marketplace
Slide 5: Newegg is a Trusted Retailer in a Large, Growing Technology Market
Newegg is a Trusted Retailer in a Large, Growing Technology Market North America Market Size Technology Products Sold Online ($BN) Newegg’s Market Leading NPS Score NPS Score 36 35 Newegg 79% 26 ebay 77% 21 Amazon 75% 19 446 19 410 Costco 67% 15 335 281 Best Buy 61% 237 8 187 206 Walmart 56% 95 0% 2
Slide 6: Business Overview At a Glance
Business Overview At a Glance Business Direct Online Marketplace Model and Platform Sales Networking Product Systems & Electronics for Gaming and Smart Software Categories Components Automotive Home Business Properties
Slide 7: Newegg's Reputation & Scale
Newegg’s Reputation & Scale ❖ #1 Global top electronics ❖ Named an MCM Top 3PL ❖ Newsweek's America's Best ACCOLADES online marketplace provider for 2022 Online Shops 2023 (Consumer according to Web Retailer Electronics) FINANCIAL $3.0 Billion $2.4 Billion $442 $52.4 Million 2021 GMV 2021 Net Sales
Slide 8: Investment Thesis
Investment Thesis TECHNOLOGY CATEGORY LEADER LARGE MARKET WITH GROWTH DRIVERS 1 ▪ Leading e-commerce player with global footprint 2 ▪ Global tech e-commerce market with a 15% CAGR ▪ Platform of direct and marketplace e-commerce ▪ Market driven by innovation, remote work and ▪ Partner services to aid
Slide 9: Newegg Investor Relations Overview
Newegg Investor Relations Overview 1 Who we are 2 Our operation and strategy 3 Our financial profile 9
Slide 10: Operational Evolution
Operational Evolution 2001–2011 2012–2018 2019–2020 2021–BEYOND BEGAN SELLING POPULARIZED THE INITIATED LOOK AHEAD FOR NEXT- PC COMPONENTS PC-BUILDING MOVEMENT TRANSFORMATION LEVEL TRANSFORMATION • Founded Newegg • Launched Shipped by • Created One Unified • Expand Newegg Partner Service program • L
Slide 11: Newegg Connects Electronics Vendors Directly to Consumers
Newegg Connects Electronics Vendors Directly to Consumers ▪ Robust network of platforms and services with a reach into 20+ countries, for NEWEGG’S IT & DISTRIBUTION PARTNERS two decades ▪ In May 2020, launched a direct-to-consumer (D2C) initiative to help vendor partners maximize their reach on the
Slide 12: Newegg Provides a Host of Service Solutions For Marketplace Sellers
Newegg Provides a Host of Service Solutions For Marketplace Sellers ▪ Marketing Service MARKETPLACE BRAND SELLERS − Promoted Listing ✓ Increases seller product/brand exposure for targeted users on Newegg and external sites − Self-service Email service ✓ Provides a self-service tool to enable sellers
Slide 13: Newegg Ecosystem to Serve Tech Vendors, Sellers & Consumers
Newegg Ecosystem to Serve Tech Vendors, Sellers & Consumers GLOBAL LOGISTICS SERVICE CONSUMER E-COMMERCE PLATFORM LOCAL LOGISTICS SERVICE Support Global Sellers/Vendors with door-to- Purpose-built to serve tech enthusiasts Support Global Sellers/Vendors with door Shipping to North America as well as
Slide 14: Scaled Logistics Infrastructure To Support Continued Growth
Scaled Logistics Infrastructure To Support Continued Growth GEOGRAPHIC PRESENCE FULL-SERVICE FULFILLMENT AND OTHER KEY SOLUTIONS: ▪ Fulfillment Solutions: Offers proprietary warehouse management software for a cohesive United States Canada customer experience across the entire fulfillment network of
Slide 15: Newegg Media Service Builds Brands
Newegg Media Service Builds Brands Shoppable Product unboxings Reality competition livestreams shows Vendors and Sellers Use Newegg Media to Produce Engaging Content that Tech Enthusiasts Love • Video content educates, entertains, and engages a Technical deep Product Instructional videos younger aud
Slide 16: Growth Drivers With Respective Initiatives
Growth Drivers With Respective Initiatives 2. ENHANCE LOGISTICS 1. EXPAND MARKETPLACE INFRASTRUCTURE Catalog diversification 3PL services Scale-up seller base Cross border service solutions Cross border logistics Logistics network 3. GROW MEDIA SERVICES Platform 4. GROW FINISHED COMPUTER PORTFOLIO P
Slide 17: Newegg Investor Relations Overview
Newegg Investor Relations Overview 1 Who we are 2 Our strategy and operations 3 Our financial profile 17
Slide 18: 2018 – 2021 Financial Highlights
2018 – 2021 Financial Highlights INCREASING NET SALES KEY HIGHLIGHTS ($ in millions) $2,376.2 $2,022.4 $2,114.9 10% GMV Growth $1,533.9 32% in Repeat Purchases 2018 2019 2020 2021 CONTINUED NET INCOME GROWTH ($ in millions) Continued Gross Margin Expansion $36.3 $30.4 ($17.0) ($33.6) Net Income Posi
Slide 19: 2020 – 2022 YTD Q3 Financial Overview: Profit and Loss Statement
2020 – 2022 YTD Q3 Financial Overview: Profit and Loss Statement Nine Months Ended September 30 (In Million) 2022 (unaudited) 2021 (unaudited) 2020 (unaudited) 2022 YTD Q3 GMV $1,575.1 $2,193.7 $1,803.7 • Oversupply of IT components flooded the market GMV • Overall, PCs and PC components market was
Slide 20: Appendix
Appendix 1 GMV reconciliation 2 EBITDA reconciliation 20
Slide 21: GMV Reconciliation
GMV Reconciliation The following table reflects the reconciliation of net sales to GMV for each of the periods indicated For the Nine Months Ended September 30, (In Million) 2022 (unaudited) 2021 (unaudited) 2020* (unaudited) Net Sales $1,239.7 $1,747.8 $1,416.7 Adjustments: GMV - Marketplace 409.4
Slide 22: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation The following table reflects the reconciliation of net income (loss) to Adjusted EBITDA for each of the periods indicated For the Nine Months Ended September 30, (In Million) 2022 (unaudited) 2021 (unaudited) 2020 (unaudited) Net Income (Loss) ($27.4) $30.0 $24.5 Adjus
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