D2l, Inc. · TSX:DTOL
D2l — Q3 2024 Earnings Presentation
20 slides from D2l's earnings presentation, December 2023
Slide 1: Transform the way the world learns
Transform the way the world learns JOHN BAKER, FOUNDER & CEO JOSH HUFF, CFO December 2023 D2L has a fiscal year ended January 31 All figures are U.S. dollar denominated, unless otherwise noted
Slide 2: Disclaimer
Disclaimer Unless otherwise stated or the context otherwise indicates, all references to “D2L”, the “Company”, “we”, “us” or “our” refer to D2L Inc., together with our subsidiaries, on a consolidated basis. Forward-Looking Information This presentation and the accompanying oral statements, including
Slide 3: Our vision is a better world where learning can be accessible, engaging, and inspiring
Our vision is a better world where learning can be accessible, engaging, and inspiring. Our mission is to help transform the way the world learns. 3
Slide 4: A global learning technology leader
A global learning technology leader 24 1,240+ 40+ 18M+ years customers countries users transforming learning 1) Figures are as of January 31, 2023, except Users which is as of December 2023. 4
Slide 5: Growth, scale, stability and strong fundamentals
Growth, scale, stability and strong fundamentals Growth Scale 13% Subscription & Support Revenue growth to $41.5 million Q3-24 Subscription & Support Revenue Growth1 $180M+ ANNUAL RECURRING REVENUE2 Advantage of scale supports our market position across Higher Ed, K-12 and Corporate Stability & Visi
Slide 6: EdTech: large market with accelerating growth
EdTech: large market with accelerating growth Key Catalysts GLOBAL EDTECH SPEND1 (US$ billions) $404 Learning Digitization of learning Environments1 +37% $268 $295 $43B in 2025 $227 Upskilling the workforce $183 Global Education & Adult Training1 Addressing learning loss and $7.3T in 2025 inequity e
Slide 7: D2L Brightspace
D2L Brightspace EASE-OF-USE ARTIFICIAL PURE CLOUD ACCESSIBLE MOBILE RELIABLE INTELLIGENCE 7
Slide 8: Our products and services
Our products and services Create Teach Measure Grow Provide easy-to-use authoring tools for Provide access to high quality Empower and enable learners & Enable lifelong learning and corporate efficient and effective learning education through technology educators through data and insights workforce
Slide 9: A modern learning platform uniquely serving multiple markets
A modern learning platform uniquely serving multiple markets Education Corporate K-12 Higher Education Corporations Associations & Government ~20% ARR1 ~60% ARR1 ~20% ARR1 Ministry of Ontario Gwinnett County Public Schools Minnesota State University Canadian Marketing Association NYC Department of E
Slide 10: Strong and growing presence in education
Strong and growing presence in education Key Catalysts Scalable cloud platform with mobile-first experience ~40% NA Higher Ed institutions on Increasing Higher Ed activity legacy platforms1 levels post-pandemic Ease of use, intuitive design and advanced personalization 44% D2L win rate for new imple
Slide 11: Robust international opportunity
Robust international opportunity 5 of the top 10 5 of the universities2 75% - NETHERLANDS ~80% top 10 of public higher universities2 education of Higher Ed institutions - COLOMBIA institutions2 on legacy systems1 - SINGAPORE MARKET SHARE BY LMS PLATFORM1 Moodle Blackboard Canvas Brightspace Europe 7
Slide 12: Expanding corporate customer base
Expanding corporate customer base Scalable cloud platform with mobile-first experience Ease of use, intuitive design and 17.6% Growth in upskilling spend Key Catalysts advanced personalization (2019-2025)1 Growing need for upskilling & reskilling Flexibility of multiple use cases on single platform
Slide 13: New Integrated Solution for Organization-Wide Learning
New Integrated Solution for Organization-Wide Learning FOR BUSINESS Skill Mapping Curated Customized Learning and Pathways Learning Learning Analytics The top threat to growth of a business is the inability to find 70% of businesses are having a hard time hiring and retain talent. people with the ri
Slide 14: Track record of growth
Track record of growth TOTAL REVENUE ANNUAL RECURRING REVENUE1 ADJUSTED GROSS PROFIT2 (US$ millions) (US$ millions) (US$ millions) 11% 9% 12% $168 $168 $108 $152 $155 $96 $126 $130 $77 $109 $112 $103 $103 $69 $66 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 12 months en
Slide 15: Balancing growth with profitability
Balancing growth with profitability ADJUSTED EBITDA1 FREE CASH FLOW1,2 (US$ millions) (US$ millions) $15.1 $6.0 Accelerating path to profitability $3.8 Delivering margin expansion and Free Cash Flow growth in FY24 $7.1 $0.1 $4.1 $(0.6) $0.1 $(2.9) $(0.7) 2019 2020 2021 2022 2023 2019 2020 2021 2022
Slide 16: Q3 2024 Highlights
Q3 2024 Highlights1 TOTAL REVENUE ADJUSTED GROSS ADJUSTED EBITDA2 CASH FLOW FROM (US$ millions) PROFIT/MARGIN2 (US$ millions) OPERATIONS (US$ millions) (US$ millions) Solid quarter and YTD results 12% 232% 134% 7% 12% growth in Annual Recurring $91 $21 Revenue for Q3-24 $135 $4 $126 $81 13% increase
Slide 17: Q3 2024 Financial Results
Q3 2024 Financial Results Three months ended October 31, Nine months ended October 31, 2023 2022 Change 2023 2022 Change $ $ % $ $ % Subscription & Support Revenue 41,450 36,565 13.4% 120,045 108,149 11.0% Professional Services & Other Revenue 4,663 6,103 (23.6%) 14,766 17,563 (15.9%) Total Revenue
Slide 18: D2L's Outlook for FY24 & FY25
D2L’s Outlook for FY24 & FY25(3) Medium FY23 FY24 Term4 Actual Guidance (FY25) 11% 7-8% (Total) Revenue Growth (14% on a constant 12-15% currency basis) 10-11% (Subscription) Adjusted Gross Profit Margin1,2 64.2% -- 65-70% Adjusted EBITDA2,5 ($2.9M) $6-8M -- (Top half of range) Adjusted EBITDA Margi
Slide 19: Key growth pillars
Key growth pillars M&A Opportunistic acquisitions that reinforce mission • Drive growth within base with increased upsell International • Expand target markets with additional expansion functionality, resources and reach ~17% of revenues in FY23 • Enable new market entry • Regional presence in • Pro
Slide 20: The learning platform for the future of work and learning
The learning platform for the future of work and learning Singular cloud platform Large addressable Success at scale with serving all education market driven by 1,240+ customers in and corporate markets long-term growth more than 40 countries1 and where they trends, including intersect corporate ups