Vercom Sa · GPW:VRC
Vercom Sa — Q1 2022 Earnings Presentation
28 slides from Vercom Sa's earnings presentation, 2022
Slide 1: Investor Presentation Q1 2022
| Investor Presentation Q1 2022 : Scale beyond
Slide 2: CPaaS Platform
: CPaaS Platform CPaaS: cloud-based communication platforms that enable companies to build and develop lasting relationships with their audiences across multiple communication channels. With CPaaS CPaaS E-MAIL SMS CPaaS Platform Without CPaaS Client PUSH Final recipient OTT 2
Slide 3: Financial Results
: Financial Results Revenue Dynamics y/y PLN 50 m +29% Gross Profit PLN 15 m +48% EBITDA* PLN 9 m +16% *EBITDA normalized for the impact of non-recurring costs related to acquisitions, the organization of a : Scale beyond public offering to sell shares and the valuation of the ESOP
Slide 4: Number of customers
: Number of customers Number of Customers Increase y/y 19 027 +7 577 +66% 19 027 11 450 Q1 2021 Q1 2022 : Scale beyond
Slide 5: Dynamic growth of business scale
: Dynamic growth of business scale
Slide 6: Continuation of dynamic growth of business scale – revenues
: Continuation of dynamic growth of business scale – revenues Revenue (PLN million) +38% CAGR 2018- Q1 2022 49,5 38,5 23,0 13,6 15,7 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 6
Slide 7: Increase in gross margin due to growing sales to existing and new customers
: Increase in gross margin due to growing sales to existing and new customers Gross Profit (PLN million) +48% +0,5 p.p 110% +7 577 13,7 15,3 10,3 10,3 12,0 Q1 2021 New customers NER Profitability increase* Q1 2022 * According to proforma data 7
Slide 8: Multi-level diversification
: Multi-level diversification
Slide 9: Increase in the number of customers
: Increase in the number of customers Number of customers (thousands) Concentration of revenue among top10 clients -34% +37% CAGR Q1 2019-Q1 2022 32% 21% 19,0 Q1 2021 Q1 2022 11,5 Concentration of gross profit among top10 clients 8,9 7,4 -67% Q1 2019 Q1 2020 Q1 2021 Q1 2022 Selected new customers: 1
Slide 10: Growing use of Vercom services in more sectors
: Growing use of Vercom services in more sectors Increased diversification of the customer portfolio structure A wide range of customers for all types of B2C activities Growing share of new segments: 19.000 Publishing, FMCG and Utilities clients Working with a wide range of customers increases stabi
Slide 11: High business profitability
: High business profitability
Slide 12: Room for further cost optimization
: Room for further cost optimization General administrative expenses (million PLN) Comment One-off costs Significant share of non-recurring 1,1 costs, including PLN 0.4 million of non- cash expenses (ESOP and amortization 1,9 of intangible assets in M&A) 0,2 0,7 6,7 5,6 1) 3,0 3,7 2,9 2,9 The increa
Slide 13: Steadily growing EBITDA
: Steadily growing EBITDA EBITDA* (PLN million) Comment +41% CAGR Q1 2018- Q1 2022 Dynamically growing EBITDA 1) Achievement of ESOP targets for 1) EBITDA value Ability to generate significant cash flow despite the group's dynamic 9,0 growth strategy 7,7 5,6 3,4 2,3 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q
Slide 14: High cash generation capacity
: High cash generation capacity Conversion of EBITDA to cash flow (PLN million) - - 1,2 - 4) 1) 3) 1) - 1,6 1) - 0,4 - 0,9 1) 9,0 7,8 - 6,2 5,8 4,9 4,9 3) EBITDA Tax R&D Leasing NWC change FCF 2) 1) 1) 1) EBITDA adjusted in plus for valuation of the incentive program in the amount of PLN 1.8 million
Slide 15: Development strategy
: Development strategy
Slide 16: Development strategy
: Development strategy Customer Development Cross-selling services Increase in the scale of operations ✓ Expansion of cooperation from a single service ✓ Implementing an omnichannel strategy ✓ Increase business reach through to new business areas ✓ Increase in sales of high-margin services acquisiti
Slide 17: Exponential growth of target addressable market
: Exponential growth of target addressable market Target addressable market (TAM) Global CPaaS market value (USDb) 14x increase TAM +34% CAGR 2021 - 2025 Global market 26 8 200 000 000 USD 18 13 European market 10 8 1 173 000 000 USD 2021 2022 2023 2024 2025 CEE market 577 000 000 USD Dynamic 30%+ m
Slide 18: On track to become global CPaaS player
: On track to become global CPaaS player Global CPaaS player Finalizing acquisition plan to accelerate SCALE the implementation of strategic goals Expansion of a talent base to create an TALENT BASE adequate platform for future growth Optimization of products and services SCALABILITY for self-
Slide 19: Scale2Global
VERCOM _ : Scale2Global mailer ite) + \VERCOM
Slide 20: MailerLite – significant global presence
: – significant global presence Global reach Customers worldwide +38 000 Attractive markets US and Western Europe >70% International team Employees in 30 locations +100 Source: MailerLite 20
Slide 21: Opportunity to accelerate implementation of strategic goals
: Opportunity to accelerate implementation of strategic goals Global CPaaS player Technology Scalability Global presence Brand recognition ✔ A one-stop shop solution ✔ 200+ direct and 3000+ ✔ Strong international ✔ Strong brand recognition providing access to the Zapier integrations presence underpi
Slide 22: International expansion - Vercom before the acquisition
: International expansion - Vercom before the acquisition Vercom TOP markets 22
Slide 23: International expansion - Vercom after acquisition
: International expansion - Vercom after acquisition 57,000+ customers in 180 markets >90% of revenue from the US & EU +300 employees in 30 locations, incl. San Francisco, New York and Dublin Team Vercom Vercom locations TOP markets other markets 23
Slide 24: Doubling the scale of operations
: Doubling the scale of operations Gross profit (PLNm) The acquisition will instantly double the gross profit while offering significant cross-sell synergies 120 x2 100 80 60 107 40 54 20 36 25 16 0 2018 2019 2020 2021 2021 PF Source: MailerLite management accounts 24
Slide 25: Significant potential to extract synergies
: Significant potential to extract synergies Customer Development Cross-selling services ✓ 100% of MailerLite revenue derived ✓ 100% of MailerLite revenue derived from marketing services from e-mail channel PUSH Sales % gross margin per service E-MAIL % of customer traffic Support @ OTT(1) Updates V
Slide 26: One year after IPO
VERCOM : One year after IPO
Slide 27: From the CEE leader to the global player
: From the CEE leader to the global player Communications channels 3 6 x2 Team 100 300 x3 Customers 11 400 56 800 x5 Addressable market CEE Global x14 Before IPO After M&A 27
Slide 28: Thank you for your attention
: Thank you for your attention