Hipages Group Holdings Ltd. · ASX:HPG
Hipages — Goldman Sachs Emerging Leaders Conference 2021
21 slides from Hipages's conference presentation, Oct 28, 2021
Slide 1: hipages Group – Goldman Sachs Emerging Leaders Conference
For personal use only hipages Group (ASX:HPG) Goldman Sachs Emerging Leaders Conference 28 October 2021
Slide 2: Australia's largest online tradie marketplace and SaaS provider
For personal use only Australia’s largest online tradie marketplace and SaaS1 provider, creating effortless solutions that help tradies streamline and grow their business and delight their customers. 1. Software-as-a-Service (SaaS)
Slide 3: Consumer experience – selecting a tradie
Consumer experience – selecting a tradie Connected with up View profile and Communicate directly Select the best tradie For personal use only to 3 tradies recommendations with tradie for the job TIMELY RESPONSE GREAT SERVICE FROM EXPERIENCED TRADIES I received immediate responses from 3 painters who
Slide 4: Proprietary algorithm matches consumers & tradies
Proprietary algorithm matches consumers & tradies For personal use only Distance to Recent Customer TradIe the job tradie tier tenure activity Optimised to provide up to 3 contacts in the first invitation batch 4
Slide 5: Large addressable market with small market share
Large addressable market with small market share For personal use only Total Addressable Market Tradie advertising spend # Trade Businesses hipages GMV1 $2.6bn, $110bn2 hipages share $1bn2 hipages tradies 34.5k 257k3 2.1% take rate 5% ~2.4% of TAM ~13% of TAM Lead sourcing highest ROI 2 Large opport
Slide 6: Overall strategic opportunity
Overall strategic opportunity For personal use only 6
Slide 7: Value of the total addressable market
Value of the total addressable market For personal use only GS EMERGING LEADERS | 28 OCTOBER 2021 7
Slide 8: Trade business spend
Trade business spend For personal use only GS EMERGING LEADERS | 28 OCTOBER 2021 8
Slide 9: FY21 Financial Results video
https://www.youtube.com/watch?v=j06K-p1TPGE For personal use only FY21 FINANCIAL RESULTS | AUGUST 2021 9
Slide 10: Strategy Execution
Strategy Execution FY20-21 FY22-23 FY24+ For personal use only Marketing effectiveness Subscription product Operational excellence Grow core Tradiecore will optimise experience for tradies and consumers category Enhance product features Medium to large Tradies On-demand booking and fixed-price servi
Slide 11: Delivering sustainable growth
Delivering sustainable growth For personal use only MRR Total Revenue EBITDA Operating cash flow $12.7m $9.2m ($3.1m) FY19 FY20 FY21 ($0.5m) GS EMERGING LEADERS | 28 OCTOBER 2021 1. Pro Forma Revenue, EBITDA and Operating Cash Flow. Pro Forma EBITDA is before significant items. 11
Slide 12: FY21 overview
FY21 overview For personal use only Revenue Profitability Key drivers $5.2m 85% 31.2k MRR1 Up 27% Gross margin3 Subscription tradies Up 12% (FY20: 79%) $52.7m $1,536 Recurring revenue2 Up 25% $11.7m Total Tradie ARPU6 Up 29% EBITDA4 Up 91% EBITDA margin 21% $55.8m 1.53m Total revenue Up 19% $1.2m Jo
Slide 13: Subscription-only model drives ARPU growth of 29%
Subscription-only model drives ARPU growth of 29% Pre November 2019 Post November 2019 For personal use only • 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 subs
Slide 14: Flywheel effect driven by growth on both sides of marketplace
Flywheel effect driven by growth on both sides of marketplace For personal use only Subscription tradies Users Subscription tradies increased from 77% to 90% 3.5m unique users posted a job to hipages platform to end FY21 of customer base 15% 12% 3.5m 3.1m 2.6m FY19 FY20 FY21 6–12-month contracts, au
Slide 15: Lifetime Transaction Value / Customer Acquisition Costs
Lifetime Transaction Value / Customer Acquisition Costs1 Significant improvement in unit economics For personal use only Annualised LTV/CAC ● LTV vs CAC ratio increasing as a result of improved unit economics ● ~60% increase in ARPU and ~40% reduction in CAC from FY19-FY21 ● FY21 outperformed Prospe
Slide 16: Effective investment driving increased brand awareness
Effective investment driving increased brand awareness For personal use only • Consumer brand awareness remains strong at 55% • Market leader for top-of-mind awareness at 20% vs. nearest competitor at 12% • Successful brand campaign across radio and digital increased tradie customer brand awareness
Slide 17: Building consumer trust and brand awareness
Building consumer trust and brand awareness 14% increase in job volume, strong growth in jobs from repeat consumers and unpaid channels1 For personal use only 64% of jobs from repeat consumers 77% of jobs from unpaid channels 3.5m unique users posted a job to hipages platform as at FY21 22% increase
Slide 18: Q1 FY22 trading update
Q1 FY22 trading update1 Resilient performance as hipages supports tradies through COVID-19 lockdowns For personal use only Strong rebound in NSW marketplace activity in Q1 • Supporting our tradie customers: 350 90000 Roadmap out of • Industry-first COVID-19 safe badge for fully vaccinated tradies 30
Slide 19: FY22 outlook
FY22 outlook For personal use only Continue to successfully navigate the impacts of COVID-19 and support our tradie customers Migrate remainder of transactional tradies onto subscription product by end FY22 Evolution to SaaS model continues, with Tradiecore to offer expanded functionality Expand int
Slide 20: Q&A
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Slide 21: Disclaimer
Disclaimer Important notice For personal use only 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.
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