Vk International Public Js Com · RUS:VKCO
Vk International Public Js Com — Mail.ru Group — Q1 2021 Earnings Presentation
50 slides from Vk International Public Js Com's earnings presentation
Slide 1: Quarterly presentation Q1 2021
Quarterly presentation Q1 2021
Slide 2: Table of contents
Table of contents Overview……………………………………………………………………………………….............................. 3 Advertising…………………………………………………………………………............................................ 4 VK…………………………………………………………………………………………………….......................... 5 OK…………………………………………………………………………………………………….............
Slide 3: Q1 2021 Overview
Q1 2021 Overview Trends across revenue streams Revenue EBITDA RUB bn EBITDA Margin, % • Advertising revenues: +22.0% YoY, VK RUB bn remains the growth engine (with its 21.2% total +27.4% 25.3 % 21.5 % revenue growth). Trends were solid across +8.1% performance formats (+41% YoY) and in- 28.3 stream
Slide 4: Advertising: focus on performance, video, SMB
Advertising: focus on performance, video, SMB • We are well positioned to help SMBs transition to online by • We expect Performance formats and video ads – our key focus ensuring continuous access to superior reach through easy products – to continue to gain share within digital ad budgets to manage
Slide 5: VK: solid leadership in audience reach
VK: solid leadership in audience reach Some Q1 2021 highlights • VK maintains its leadership among domestic social networks, with Russian MAU of 73mn and DAU of 48mn (+5.9% YoY) in March 47 +36% • VK reaches 47% of Russian internet users every day, Major updates in Q1 VK Mini Apps MAU, YoY with mont
Slide 6: VK Mini Apps: platform's expansion continues
VK Mini Apps: platform’s expansion continues • MAU: +36% YoY to 37mn in March, which means Active Mini Apps – Number of apps, thousands 51% penetration into VK’s Russia MAU 29.4 25.9 22.1 • DAU: +80% YoY 19.7 13.3 15 • The number of active services on the VK Mini Apps platform rose by 90% YoY in to
Slide 7: VK Connect: active roll out continues
VK Connect: active roll out continues • VK Connect, the single sign-on platform for all Mail.ru Group products formed on the basis of VK • Since its launch in June 2020 >29.2mn people used VK Connect for authentication (excluding authentication on vk.com), with their number growing by 69% QoQ • 16 G
Slide 8: Cumulative number of people using VK Connect for authentication
Cumulative number of people using VK Connect for authentication, excluding authentication on vk.com, mn 29.2 We see steady growth in the number of VK Connect users MoM 24.5 21.6 17.2 12.8 9.9 7.0 5.3 3.3 2.0 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 8 Source: Internal dat
Slide 9: E-commerce: Multimarket launch in Q1
E-commerce: Multimarket launch in Q1 • We continue to develop the VK ecosystem by providing businesses and customers with helpful tools and features, all in one place • As part of related initiatives, Multimarket, a single B2B platform for managing stores on VK, OK, AliExpress and Youla was launched
Slide 10: VK: further enhancements in video offering
VK: further enhancements in video offering • VK remains highly focused on enhancing its video offering, including through development of different types of video content, such as exclusive broadcasts of events • In Q1, users uploaded +7% more videos YoY to VK (excl. short videos from Clips), with th
Slide 11: OK: social and entertainment platform
OK: social and entertainment platform • Russia average MAU in Q1 stood at 40mn, supported by the Number of stickers sent ongoing engagement growth +15% • IVAS, including games, remain the main driver, with OK users having sent a record of 12.5mn stickers and 1.4bn gifts over the March holidays. In t
Slide 12: OK: Moments is seeing strong initial traction
OK: Moments is seeing strong initial traction Recently launched service Moments with disappearing photo and video continued to see strong traction: • MAU in Q1 exceeded 20mn, up by 49% • Links for official profiles and versus December, with 83% and 84% new feedback motivators in respective increases
Slide 13: OK: product updates continue
OK: product updates continue Product updates continued in Q1: • OK updated the logo, its desktop version and presented a new design of its mobile application • Noise cancelling feature to improve calls over the platforms OK, VK and the email service Mail.ru was launched Plans for Q2: • Ability to cr
Slide 14: OK: SMB among the key ad revenue drivers
OK: SMB among the key ad revenue drivers • The number of SMB advertisers in the OK The number of SMB Ads Manager (internal ad creation tool for SMB revenue advertisers using internal ad SMB) grew by 36.9% YoY in Q1, with SMB creation tool for SMB revenue up by 42% YoY +42% • OK continues to invest i
Slide 15: MY.GAMES: international revenue driver for the Group
MY.GAMES: international revenue driver for the Group • MY.GAMES revenue rose by 42% YoY in Q1 (to RUB 11bn) and accounted for 39% of Group’s revenues • International (ex Russia + CIS) gaming revenue share in Q1 2021 stood at 79% (vs 69% in Q1 2020) • Majority of MY.GAMES revenues (78%) come from mob
Slide 16: MY.GAMES: solid post-lockdown user trends
MY.GAMES: solid post-lockdown user trends • Average MAU stood at 22.7mn in Q11 TOP 10 revenue generating products in Q1 2021 Lifetime installs • Franchise titles (War Robots, Warface, Hustle Castle) remain Title (as of the end of Q1 installs (mn) the top-3 revenue generators, with the newly launched
Slide 17: MY.GAMES: main mobile titles
MY.GAMES: main mobile titles • At 78% of revenues in Q1, mobile remains the top business driver for MY.GAMES • Grand Hotel Mania reached 10m downloads since its release in July 2020, while Hustle Castle reached 70m downloads within 3 years post its release • Rush Royal had a strong start, with 5mn+
Slide 18: MY.GAMES: successful launch of Rush Royale
MY.GAMES: successful launch of Rush Royale • Rush Royale mobile game was developed by a small team within the internal IT Territory studio in a fully remote-work regime, with upfront development cost limited to ~$300k • Game features elements of tower defense and card collecting games • Worldwide la
Slide 19: EdTech: ~3x YoY growth in Q1
EdTech: ~3x YoY growth in Q1 • Skillbox and GeekBrains are the leading • Service is provided on own platforms (LMS), • Platforms offer an opportunity to expand services on the growing market of online which allows to track different metrics and a matrix of products based on education in the segment
Slide 20: EdTech: rapid expansion of product matrix and customer base
EdTech: rapid expansion of product matrix and customer base Cumulative number of registered Growing number of courses and professions and paid students, thousands* Skillbox products 2018-2020 CAGR Q1 2021 vs. Q1 2021 +144% +118% GeekBrains products 562 2018-2020 CAGR Q1 2021 vs. Q1 2021 Incremental
Slide 21: Youla: steady growth in revenue and traffic
Youla: steady growth in revenue and traffic Revenues: • Revenue was up 15% YoY to RUB 0.8bn in Q1. Revenue Youla revenue and traffic growth target for 2021 remains RUB 3.6-3.9bn • Drivers: Strong pipeline of Group’s ecosystem integrations 2017- 2021E (particularly, further integration with VK Classi
Slide 22: Youla: VK Classifieds and VK Rabota progress
Youla: VK Classifieds and VK Rabota progress VK Classifieds product launches: VK Rabota product launches: • VK Classifieds development: desktop version • Demo access to CV data base: 30% of new recruiters for listings launched in March (following the in Q1 came from the launched demo-access launch o
Slide 23: Joint Ventures O2O & AliExpress Russia
Joint Ventures O2O & AliExpress Russia
Slide 24: GMV of O2O JV doubled in Q1
GMV of O2O JV doubled in Q1 • O2O JV perimeter includes Delivery Club, r_keeper (former Foodplex), Citymobil, O2O GMV 1, RUB bn Citydrive (former Youdrive), Local Kitchen and Samokat (the latter two businesses +2.0x were consolidated in 2020) • O2O GMV doubled YoY to RUB 40.7bn in 40.5 40.7 Q1 2021,
Slide 25: Delivery Club: market leader in terms of users
Delivery Club: ready-to-eat (RTE) food delivery market leader in terms of users… Platform is seeing stable growth trend in MAU since September 2020, despite the ongoing “post-COVID” normalization, which suggests increased confidence and solid retention of Russian users in relation to RTE and e-groce
Slide 26: …and downloads
…and downloads Downloads, iOS and Android combined, thousands 1141 Delivery Club Yandex.Eda 754 717 670 631 602 559 527 506 487 446 444 366 351 355 375 335 316 286 309 274 250 363 197 318 149 45 16 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Sour
Slide 27: Delivery Club: ~1.8x YoY revenue growth in Q1
Delivery Club: ~1.8x YoY revenue growth in Q1 Revenue 3, RUB bn Geographic reach YoY Cities of presence, 1P 1 Overall geographic coverage 1, 3P+1P +1.8x Q1 120 159 2020 3.2 3.1 Q1 185 316 2.6 2021 2.5 1.8 Vendors on the platform 1.5 1.2 Number of vendors 2, thousands 0.9 0.9 Q1 2020 16.3 YoY +2.7x Q
Slide 28: Delivery Club: 1.6x YoY growth in orders with a balanced 1P share
Delivery Club: 1.6x YoY growth in orders with a balanced 1P share Total orders, mn 1P/3P orders split, % + 1.6x 3P 1P 44 41 41 41 49 47 47 57 66 80 79 77 82 82 82 96 92 18.0 17.6 16.1 15.3 10.8 9.2 7.6 5.4 5.4 4.1 2.8 3.0 3.0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 2018 2018 2019 2019 2020 2
Slide 29: Delivery Club: Growing active users and frequency
Delivery Club: Growing active users and frequency The number of active users increased by 46% YoY in Q1 (to 4.7mn), with frequency up by 18% YoY in Q1, approaching 4 orders per active user per quarter Active customers 1, mn Frequency2, # of orders 3.9 3.7 3.8 3.8 3.3 3.3 3.4 3.1 3.2 4.6 4.7 4.3 4.0
Slide 30: Samokat: 10x YoY revenue growth in Q1
Samokat: 10x YoY revenue growth in Q1 • Samokat express e-grocery platform approached 11mn orders in Q1 (+7.8x YoY) with up to 160,000 in daily orders at peak in March • Revenue grew 10x YoY in Q1 to RUB 6bn, with the number of dark stores reaching 490 in March (+3.6x YoY) • In Q1 Samokat launched o
Slide 31: Local Kitchen: doubling YoY in Q1
Local Kitchen: doubling YoY in Q1 • In Q1 Local Kitchen dark kitchen operator had an Orders (thousands) and dark kitchens average of 45 kitchens across Moscow vs. 29 in Q1 2020 45 42 • Revenue increased 2.2x YoY in Q1, with 2x growth in orders to 1.7mn in Q1 2021. Daily orders of the top-performing
Slide 32: Local Kitchen: rising retention across cohorts
Local Kitchen: rising retention across cohorts • Active1 customer base reached ~130,000 Active users, thousands unique monthly users in March 2021 (~2.1x YoY growth), with rising New Customers retention across cohorts on the back of the high service quality Existing Customers 68 97 • Share of existi
Slide 33: Citymobil: ~30% YoY growth in rides in Q1
Citymobil: ~30% YoY growth in rides in Q1 Growth in rides continues, despite no new Growth is supported by rapid expansion into regional launches B2B and Premium segments Citymobil rides by months Citymobil B2B & Higher Classes rides 2020 2021 Q1 2020 Q1 2021 +1.3x +2.9x +1.4x +1.2x +3.4x January Fe
Slide 34: Citymobil: continued platform development
Сitymobil: continued platform development Delivery business expansion continues To support the growth of the entire platform Citymobil signed a strategic partnership with Gett... Citymobil delivery rides Collaboration allows Citymobil drivers in all regions of +1.4x presence to receive orders from t
Slide 35: AliExpress Russia: wide assortment and major audience
AliExpress Russia: wide assortment and major audience > 140mn 225k cross-border sellers SPUs 45k local sellers 229.3bn RUB GMV in FY2021 (ended in March 2021, excluding services) > 130mn >26mn Registered accounts People made purchases in FY2021 35 Source: Internal data as of March 2021
Slide 36: AliExpress Russia: local business generated almost 25% of GMV
AliExpress Russia: local business generated almost 25% of GMV in FY2021 (ended in March 2021) +350% +151% Number of Local GMV in local sellers, FY2021 thousands (ended in 45 March 2021), 55 RUB bn 22 10 March 2020 March 2021 March 2020 March 2021 +368% Number of Number of Electronics 1.7 +124% SPUs
Slide 37: AliExpress Russia: ongoing transformation
AliExpress Russia: ongoing transformation Recent improvements and new launches: • Group purchase option on the basis of VK mini apps • Payments for goods in installments for purchases completed within the AER mini app in VK and using VK Pay • Single B2B platform for sellers to manage online stores,
Slide 38: AliExpress Russia: ongoing transformation (cont)
AliExpress Russia: ongoing transformation (cont) Recent improvements and new launches: • Subsidies for discounts for local sellers with a plan to invest ~RUB 1.5bn into such subsidies during the calendar 1H 2021 • Free of charge delivery for the first 100 orders to any Russia’s region for sellers wh
Slide 39: Financial & segmental highlights
Financial & segmental highlights 39
Slide 40: Revenue and EBITDA dynamics, RUB bn
Revenue and EBITDA dynamics, RUB bn 40 Source: Internal data
Slide 41: Communications and Social segment performance review
Communications and Social segment performance review Communications and Social Revenue, RUB bn Revenue growth drivers in Q1 2021: +8.2% • Recovery of the ad market, with online advertising accounting for ~60% of segment’s revenues 12.4 13.4 • The growth of the segment revenue was muted by temporary
Slide 42: Games segment performance review
Games segment performance review Revenue growth drivers in Q1 2021: Games Revenue, RUB bn • Grand Hotel Mania (from Deus Craft studio acquired in +42.2% October 2020) and Rush Royale (from IT Territory, released 11.0 in December 2020) were the main revenue drivers in Q1 7.7 2021. Zero City, War Robo
Slide 43: EdTech segment performance review
EdTech segment performance review EdTech Revenue, RUB bn Revenue growth drivers in Q1 2021: +191.6% • Launch of new products. Our consolidated assets launched 2.2 >140 new courses and programs (professions and faculties) during Q1, including in cybersports, design, B2B, music and 0.7 many others, wi
Slide 44: New Initiatives segment performance review
New Initiatives segment performance review New Initiatives Revenue, RUB bn Revenue growth drivers in Q1 2021: +32.0% • B2B projects were the main contributors to the growth of New Initiatives in Q1 1.9 1.4 • Youla (delivered 15% YoY revenue growth) and is the largest component of the New Initiatives
Slide 45: Leverage
Leverage 0.0x 0.0x 1.0x 2.4x 2.4x Gross Debt, RUB bn 63.9 64.2 15.2 16.5 Gross Debt incl. lease 28.3 liabilities / 4.8 48.7 47.7 LTM EBITDA 0.0 0.0 23.5 2017 2018 2019 2020 Q1 2021 Loans and Convertible Bonds Lease Liabilities Net (Cash) Debt (0.7)x (0.4)x 0.6x 0.9x 1.1x including lease liabilities,
Slide 46: Headcount
Headcount In Q1 2021 MRG headcount expanded by ~6% QoQ (to 9,408 people), with Online Education accounting for >80% of net hires, given the segment’s ~3x YoY growth Total headcount, eop 9,408 8,842 6,277 5,667 4,419 1 2 3 Dec-2017 Dec-2018 Dec-2019 Dec-2020 Mar-2021 Source: Internal data; 1 Acquisit
Slide 47: Consolidated Group guidance for 2021
Consolidated Group guidance for 2021 Group revenue ~RUB127-130bn Group EBITDA Improvement in margin YoY Community IVAS Mid-single digit growth in revenue Double-digit organic revenue growth, Games with YoY improvement in profitability ~RUB 3.6-3.9bn in revenues with a progress towards Youla break-ev
Slide 48: For further information please contact
For further information please contact: E-mail: ir@corp.mail.ru 48
Slide 49: Disclaimer
This presеntation has been prepared by Mail.ru Group Limited (the “Company”) and comprises the written materials for a presentation to syndicat e research analysts or certain institutional investors. Matters discussed in this presentation may constitute forward -looking statements. Forward-looking s
Slide 50: mail.ru group
@ mail.ru group