Hipages Group Holdings Ltd. · ASX:HPG
Hipages — Goldman Sachs 12th Annual Emerging Leaders Conference 2021
28 slides from Hipages's conference presentation, Apr 28, 2021
Slide 1: hipages Group – Goldman Sachs Emerging Leaders Conference
hipages Group Goldman Sachs 12th Annual Emerging Leaders Conference 28 April 2021
Slide 2: Australia's largest online tradie marketplace and SaaS provider
Australia’s largest online tradie marketplace and SaaS provider connecting tradies with residential and commercial consumers to simplify property improvement.1 Goldman Sachs Conference | April 2021 1. Software-as-a- Service (SaaS) 2
Slide 3: Large and growing addressable market
Large and growing addressable market Australian Home Improvement Spend Tradie Businesses in Australia Total GMV1 $83bn2 257k3 Tradies $1.9bn Total Addressable Market 34k Total Addressable Market hipages GMV estimated at 2% of TAM Trade businesses on hipages platform estimated at 13% of TAM 1. Estima
Slide 4: Macro trends driving tradie advertising
Macro trends driving tradie advertising1 Growth in tradie Growth in Highest ROI from lead ad spend online spend sourcing • $976m spent by tradies on • 60% of tradie ad budget • 12% of tradie ad spend on advertising spent online lead sourcing • 8.8% pa projected growth • 11.2% pa projected • $13.80 t
Slide 5: Australia's largest online tradie platform
Australia’s largest online tradie platform Subscription-only 94% recurring Strong brand product revenue1 awareness of 56% Flywheel effect of 3.3m unique Over 34k trade users have double-sided businesses posted jobs marketplace 1. 94% recurring revenue forecast for FY21. Q3 FY21 recurring revenue est
Slide 6: Consumer experience – Selecting a tradie
Consumer experience – Selecting a tradie Connected with View profile and Communicate Select the best up to 3 tradies recommendations directly with tradie tradie for the job TIMELY RESPONSE I received immediate responses from 3 painters who all attended to the quotation process in a timely and profes
Slide 7: Tradie Experience – Message centre & payments
Tradie Experience – Message centre & payments Streamlined Message Payment Request for communication centre functionality feedback with customer Hipages is a great service. Would highly recommend. Has helped me enormously grow my business. THANK YOU hipages team. Hipages has provided me with over $15
Slide 8: Proprietary algorithm matches consumers & tradies
Proprietary algorithm matches consumers & tradies Distance to Recent tradie Customer Tradie the job activity tier tenure Optimised to provide up to 3 contacts in the first invitationbatch Goldman Sachs Conference | April 2021 8
Slide 9: Ongoing transformation in unit economics
Ongoing transformation in unit economics WHAT WE HAVE DONE OUTCOMES • Subscription drives higher ARPU1 • Enhance subscription offering • Reinvest savings in brand, tech and tradie • Transformation change project acquisition accelerating growth • Investment in technology to drive scale • Evolution to
Slide 10: Subscription-only model drives ARPU growth
Subscription-only model drives ARPU growth Pre November 2019 Post November 2019 • Transactional product – small annual listing fee and • Moved to a subscription-only product offering for new tradies tradie would pay each time they claimed a job lead • New version of subscription package with new, im
Slide 11: Q3 FY21 delivers another strong performance
Q3 FY21 delivers another strong performance1 REVENUE CASHFLOW KEY DRIVERS MRR2 $4.9m Total Tradie $1,606 Up 30% ARPU Up 29% Closing $32.7m cash4 Recurring $13.5m No debt Subscription 29.8k revenue3 Up 23% tradies Up 10% Cash receipts $15.2m Total $14.3m Up 14% Job 0.4m revenue3 volumes Up 17% Up 18%
Slide 12: Upgrade to FY21 Prospectus Forecasts
Upgrade to FY21 Prospectus Forecasts Revised Prospectus Revised Prospectus Pro Forma FY21F FY21F FY21F FY21F Var (%) FY20 Var (%) Var (%) Total Revenue ($m) 55.7 53.9 3% 46.9 19% 15% Recurring Revenue ($m) 52.6 50.5 4% 42.2 25% 20% Recurring revenue % total 94.4% 93.6% 1pts 90% 4pts 4pts EBITDA befo
Slide 13: Delivering sustainable profit growth
Delivering sustainable profit growth1 $53.9m $55.7m $46.9m $42.3m $26.9m $9.9m $11.5m $6.1m $6.9m -$3.1m FY19 FY20 H1FY21 FY21F Revised FY21 Prospectus Forecasts Revenue EBITDA 1. Pro Forma Historical Total Revenue and EBITDA – FY19 and FY20. H1 FY21 Statutory Total Revenue is the same as Pro Forma
Slide 14: Strong growth in Monthly Recurring Revenue
Strong growth in Monthly Recurring Revenue1 Acceleration in MRR as more tradies subscribe and ascend to higher price points 30% $5.3m • MRR 1 of $4.9m @ March 2021, up 30% vs $5.0m pcp underpins strong recurring revenue $4.9m growth • Driven by growth in subscription tradies, jobs and APRU $3.8m • F
Slide 15: Subscription tradie base continues to expand
Subscription tradie base continues to expand Improvement in subscription product offering drives tradie engagement at higher price points 10% • Total subscription tradies of 29.8K in Q3 31k FY21 up 10% on pcp 30k 29.8k • Upgrade to FY21 Prospectus forecast for Subscription Tradies @ June 2021 27.0k
Slide 16: Subscription model drives growth in Total Tradie ARPU
Subscription model drives growth in Total Tradie ARPU1 Unlocking value as tradies opt for higher tier packages 29% • Total Tradie ARPU 1 of $1,606 in Q3 FY21 up $1,606 29% on pcp $1,525 • Driven by $1,449 o Move to subscription only product o New and improve features o New subscribers joining at hig
Slide 17: Building brand awareness, less reliance on paid channels
Building brand awareness, less reliance on paid channels • Jobs from unpaid channels up 35% in Q3 FY21 on pcp • Brand awareness increased to 56% from 27% in July 2018 • Platinum sponsor of The Block • Sponsorship of Better Homes & Gardens starting in March 2021 • In Jan 2021, launched brand campaign
Slide 18: Building consumer trust and brand awareness
Building consumer trust and brand awareness 17% increase in job volumes in Q3 FY21 with strong growth in jobs from repeat consumers1 and unpaid channels 64% of jobs from repeat consumers 75% of jobs from unpaid channels 404.5k 404.5k 347.2k 347.2k 25% 291.5k 291.5k 35% 64% 59% 35% 58% 75% 65% 65% 42
Slide 19: Customer retention improves as target higher value tradies
Customer retention improves as target higher value tradies Total monthly counter churn will continue to improve as:- • H1 FY21 churn as % of revenue was 23% • H1 FY21 counter churn of 3.5% was lower than FY21 • Target higher value customers - better retention, ROI and LTV Prospectus Forecast of 3.8%
Slide 20: Introducing Tradiecore
Introducing Tradiecore Got some quotes Manage quotes from every Travel buffer automatically approved? source not just hipages added to the job Goldman Sachs Conference | April 2021 20
Slide 21: Delivering a field service software solution
Delivering a field service software solution Send a quick message Quote to invoice. Make world class See what’s up you’re on your way Easy Pezy customer service with ROI Goldman Sachs Conference | April 2021 21
Slide 22: Long-term focus on expanding the ecosystem
Long-term focus on expanding the ecosystem ● Value-addservices ○ Fintech ○ Insurance services ○ Procurement & Delivery ● Provide end-to-end solution ○ Field Service Software (SAAS) ● Channelexpansion ○ End-To-Endexperience ○ Insurance claims (repairs) ● Enhanced subscription ○ Property, commercial &
Slide 23: From subscription model
From subscription model Goldman Sachs Conference | April 2021 23
Slide 24: to Software-as-a-Service (SaaS) provider
to Software-as-a-Service (SaaS) provider Goldman Sachs Conference | April 2021 24
Slide 25: to winning the on-demand tradie economy
to winning the on-demand tradie economy Goldman Sachs Conference | April 2021 25
Slide 26: FY21 Outlook
FY21 Outlook On track to achieve Revised FY21 forecast with strong start to Q4 Continue evolution to SaaS model with delivery of Field Service software solutions Reinvest cost savings in brand marketing, tradie acquisition, technology and product development to accelerate growth beyond FY21 Continue
Slide 27: Q&A
Q&A Goldman Sachs Conference | April 2021 27
Slide 28: Disclaimer
Disclaimer IMPORTANT NOTICE The material in this presentation has been prepared by hipages Group Holdings Limited (ASX: HPG) ABN67 644 430 839(“hipages” or the Company") and is general background information about hipages’ activities current as at the date of this presentation. The information is gi
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