Thinkific Labs, Inc. · TSX:THNC
Thinkific Labs — Investor Presentation (August 2024)
34 slides from Thinkific Labs's investor presentation, August 2024
Slide 1: Monetizing your Knowledge, Expertise, and Passion
Monetizing your Knowledge, Expertise, and Passion Corporate Presentation Thinkific 2024
Slide 2: Greg Smith, CEO and Corinne Hua, CFO
Greg Smith Corinne Hua CEO CFO Thinkific 2024 2
Slide 3: Disclaimer
Disclaimer This presentation of Thinkific Labs Inc. (“the “Companyˮ, “Thinkificˮ, “usˮ or “weˮ) is August 8, 2024. In this presentation, all references to “$ˮ, “US$ˮ, “dollarsˮ and “U.S. dollarsˮ are to United States dollars and all references to “C$ˮ are to Canadian dollars. NONIFRS MEASURES The i
Slide 4: Disclaimer: Forward-Looking Statements
Disclaimer FORWARDLOOKING STATEMENTS This presentation includes forward-looking statements and forward–looking information within the meaning of Canadian securities laws. Often, but not always, forward–looking information can be identified by the use of words such as "plans", "is expected", "expect
Slide 5: THNC (TSX) Profitable Growth
THNC (TSX) For the last twelve months ending June 30, 2024 Profitable Growth LTM Revenue $63M (+13% YoY) $57M $163M $459M $49M Annual Recurring Revenue LTM Gross Payments Volume LTM Gross Merchandise Value1 Cash on the balance sheet 7% YoY 61% YoY 8% YoY (no debt) 1 Gross Merchandise Val
Slide 6: Monetize your Knowledge, Expertise, and Passion
Monetize your Knowledge, Expertise, and Passion Create, market, and sell digital learning products, build vibrant communities, and monetize memberships and courses — all under your brand and site. Thinkific 2024
Slide 7: Our Market
Our Market Entrepreneurs and SMBs Any entrepreneur or established business Enterprise can use education as a tool for growth Rise of the entrepreneur and creator economy Mass adoption for lifetime, online learning The future of work Note: Customer segment illustrations are not proportionate to the u
Slide 8: More than courses
Now More than courses We’ve expanded into digital learning products Courses Multimedia Lessons Then Communities Self-Paced & Scheduled Classes & Memberships Courses Live Lessons & Coaching Downloads & Guides App Store Products AI Generated Products Thinkific 2024 8
Slide 9: A world where everyone is empowered to share their knowledge and passion
A world where everyone is empowered to share their knowledge and passion Thinkific 2024 99
Slide 10: Meeting our customer needs to help them succeed
Meeting our customer needs to help them succeed Three major opportunities for growth Plus Self Service Commerce Thinkific 2024 10
Slide 11: Thinkific Self Serve for Creator Educators
Thinkific Self Serve for Creator Educators Established Businesses Our largest revenue segment aimed at creator educators: coaches, authors, experts, social creators - looking to monetize their knowledge, passion and expertise. Full time Entrepreneurs Freelancers Accessible for anyone Thinkific 2024
Slide 12: Thinkific Platform: Turning knowledge into vibrant digital products to sell
Thinkific Platform: Turning knowledge into vibrant digital products to sell Create Market & Sell Engage Courses Payments Membership sites Funnels AI Communities Commerce Tools Website Builder Live lessons & coaching Email & Marketing Digital Products Analytics Tax Mobile Apps Gifting Student Support
Slide 13: Rightlane: Thinkific Plus Customer Success Story
Thinkific Plus Customer Success Story Rightlane Rightlane wanted to transform their Defensive Driving Academy business by taking their in-person defensive driving courses online to expand their reach. By leveraging Thinkific Plus and Thinkific Commerce, they were able to open up multiple sites in a
Slide 14: MITTMASTER: Thinkific Commerce Customer Success Story
Thinkific Commerce Customer Success Story MITTMASTER Matthew Chapman turned to Thinkific Commerce after struggling to scale his online course business. “After setting up TCommerce, I went into my dashboard and set up my first Order Bump that same day. Within a couple of hours, I got my first Order B
Slide 15: The Social-First Creator
The Social-First Creator Entrepreneurs who start with an online presence, and then build a business to serve that community The LEAP was created to with these people in-mind enabling Creators to get started within minutes or hours rather than days or months…. Thinkific 2024 15
Slide 16: Build on Thinkific, Sell on Spotify!
Build on Thinkific, Sell on Spotify! “We're thrilled to partner with Spotify and give Thinkific customers unique access to this exciting test program to help our customers share their Unique Genius™, ... providing an outstanding new distribution channel to reach engaged audiences and build their onl
Slide 17: Thinkific Plus - Extending Learning to your Customers and Partners
Thinkific Plus - Drive Positive Outcomes for Businesses by Extending Learning to your Customers and Partners Quick Return on Investment through Fast time to value and high-touch support Leverage Education to Maximize adoption and engagement Drive new revenue streams with Thinkific Commerce. Thinkifi
Slide 18: Our customers are diversified across topics and verticals
Health & Fitness Our customers are Business & Marketing diversified across Personal Development Arts & Entertainment topics and verticals Career Development Fashion & Beauty Software & Technology Transportation Education Finance Sales Project Management Corporate Training Real Estate Thinkific 2024
Slide 19: Go To Market Motions
Go To Market Motions Hybrid Product- and Marketing-Led Approach Paid Thinkific Self Serve Freemium Organic Inbound/Outbound Sales Referral & Partners Thinkific Plus Thinkific 2024 19
Slide 20: Market & Competitive Landscape
Market & Competitive Landscape e-Commerce Site Builders Your Site. LMS Your Brand. Your Content. Your Students. Your Business. All on Thinkific. Marketplaces Social Media Thinkific 2024 20
Slide 21: 2024 Priorities
2024 Priorities We have clear strategic priorities to help Customers succeed and drive top line growth Easy Easy Excited Grow to start to sell to stay Upmarket Thinkific 2024 21
Slide 22: Mission Driven
Mission Driven We believe in the incredible power of education and have seen first hand that when you unite business and education, you create an unstoppable force for positive change Strong Culture ● Succeed Together ● Be Helpful ● Learn and Grow ● Give a Shit ● Fanatical about ● Choose Ethics Cust
Slide 23: Financial Overview
Financial Overview Thinkific 2024 23
Slide 24: Steady Execution & Building on Momentum
Key Metrics Steady Execution & Building on Momentum $57M $163M Annual Recurring Revenue LTM Gross Payments Volume 7% YoY 61% YoY $459M LTM Gross Merchandise Value 1 $155 ARPU $62.7M 8% YoY 10% YoY LTM Revenue (+13% YoY) $51M 4.3% LTM Operating Expenses LTM Take Rate 18% Y/Y For the
Slide 25: Growth, Profits, & Strong Balance Sheet
Key Metrics Growth, Profits, & Strong Balance Sheet For the last 12 months ending June 30, 2024 unless otherwise noted 13% $2.4M 75% LTM Revenue Adjusted LTM Growth EBITDA1 Gross Margin $7.8M $48.6M Cash Flow Cash on from Operations Balance Sheet 1 “Adjusted EBITDAˮ is a Non-IFRS measure defined
Slide 26: Financial History and Outlook: Continued Profitable Growth
Financial History and Outlook: Continued Profitable Growth Healthy, Capital Efficient Growth Spend Team & Realignment Revenue Brand Pandemic Expansion Super Growth Healthy, Capital Efficient Growth EBITDA Thinkific 2024 All metrics in $USD 26
Slide 27: Increasing Transparency with Revenue & Margin breakdowns
Financial Performance Increasing Transparency with Revenue & Margin breakdowns Subscription Self Service “Product-Centric” Revenue Customers Financial Statement view, driven by “type of revenueˮ and disclosed in MD&A. Commerce Plus Customers “Customer-Centric” Revenue Combines associated Commerce Re
Slide 28: One Business, Many Levers for Growth
Financial Performance One Business, Many Levers for Growth $55.1M $48.9M Subscription Revenue Self Service Customer Revenue 7% YoY 9% YoY $7.6M $13.8M Commerce Revenue 81% YoY Plus Customer Revenue 31% YoY $62.7M Total Revenue Self Service & Plus revenue breakdowns are a non-IFRS grouping of all sou
Slide 29: Thinkific Commerce: Helping more customers earn more
Last Twelve Months Snapshot Thinkific Commerce Revenue $7.6M (+81% YoY); 4.3% take rate Thinkific Commerce Helping more customers earn more GPV Customer Sales on Thinkific Commerce $163M (35% of GMV) +61% YoY Total Customer Sales GMV Customer Sales Processed on & off-platform processed on-platform ~
Slide 30: Growth Drivers
Growth Drivers Near-Term Mid-Term Commerce Thinkific Plus Self Serve Increase GPV with Thinkific Commerce Improve activation and ease of New features to differentiate use Adoption Increase take rate to 5% in the mid-term with value Invest in go-to-market capabilities Leverage Partnerships to expand
Slide 31: Thank you!
Thank you! Contact Media: Josh Stanbury IR Joo-Hun Kim press@thinkific.com IR@thinkific.com Thinkific 2024 31
Slide 32: Appendix
Appendix TS Thinkific 2024 32
Slide 33: Definitions
Appendix Definitions “Annual Recurring Revenueˮ or “ARRˮ is twelve times the monthly value of all current Paying Customer subscriptions at the end of the period, with the number of Paying Customers multiplied by the average monthly subscription plan fee in effect on the last day of that period. “Ave
Slide 34: Appendix (cont'd): Adjusted EBITDA reconciliation
Appendix (cont’d) “Adjusted EBITDAˮ is a Non-GAAP measure defined as net income (loss) excluding taxes, interest, depreciation and amortization (or EBITDA, as adjusted for stock-based compensation, foreign exchange gain (loss), net finance (income) expense, and restructuring costs. The following ta