Hipages Group Holdings Ltd. · ASX:HPG
Hipages — ASX Small and Mid-Cap Conference 2021
21 slides from Hipages's conference presentation, Mar 16, 2021
Slide 1: hipages Group ASX Small and Mid-Cap Conference
For personal use only hipages Group ASX Small and Mid-Cap Conference 17 March 2021
Slide 2: Australia's largest online tradie platform and SaaS provider
For personal use only Australia’s largest online tradie platform and SaaS provider connecting tradies with residential and commercial consumers to simplify property improvement.1 ASX Small & Mid-Cap Conference | March 2021 1. Software-as-a- Service (SaaS) 2
Slide 3: Australia's largest online tradie platform
Australia’s largest online tradie platform For personal use only Large andgrowing 3.3m unique addressable GMV 1 ~$1.9bn users have market posted jobs Flywheel effect of Subscription-only Strong brand double-sided product with 94% awareness of 56% marketplace recurring revenue 1. Gross Merchandise Va
Slide 4: From online directory to subscription model
From online directory to subscription model For personal use only 2021 Dec 2016 Evolving to SaaS 2014 Strategic model. Introduce partnership Feb 2020 Winning the on- 2011 2019 monthly with real Acquired Field demand tradie Pivot business Partnership subscription estate group Service Software economy
Slide 5: Delivering sustainable profit growth
Delivering sustainable profit growth1 For personal use only $53.9m • Revenue growth and cost $46.9m efficiencies drive positive $42.3m operating leverage as hipages becomes profitable and margins $26.9m expand • H1 FY21 revenue tracking $9.9m ahead of FY21 Prospectus $6.1m $6.9m forecast; total reve
Slide 6: Significant runway for growth
Significant runway for growth For personal use only Australian Home Improvement Spend Tradie Businesses in Australia Total GMV1 $83bn2 257k3 Tradies $1.9bn Total Addressable Market 34k Total Addressable Market hipages GMV estimated at 2% of TAM Trade businesses on hipages platform estimated at 13% o
Slide 7: Ongoing transformation in unit economics
Ongoing transformation in unit economics For personal use only WHAT WE HAVE DONE OUTCOMES • Enhance subscription offering as transition • Subscription-only product drives higher to subscription-only model ARPU and greater share of wallet1 • Transformation change project: right sized • Reinvest cost
Slide 8: Subscription-only model drives ARPU growth of 31%
Subscription-only model drives ARPU growth of 31% For personal use only Pre November 2019 Post November 2019 • 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 9: Business model transformation driving revenue growth
Business model transformation driving revenue growth Operating revenue up 19% as drive growth in higher value subscription tradies For personal use only Total Operating Revenue1 Total Tradies2 $52.5m $2.0m H1 FY21 subscription tradies +12% on pcp 19% 41.7k 37.9k 36.1k $26.2m 34.4k $22.0m $0.9m $50.5
Slide 10: Building brand awareness, less reliance on paid channels
Building brand awareness, less reliance on paid channels For personal use only • Jobs from unpaid channels up 33% on pcp • Brand awareness increased to 56% from 27% in July 2018 • Platinum sponsor of The Block • Sponsorship of Better Homes & Gardens starting in March 2021 • In Jan 2021, launched bra
Slide 11: Building consumer trust and brand awareness
Building consumer trust and brand awareness 14% increase in job volumes with strong growth in jobs from repeat consumers1 and unpaid channels For personal use only 64% of jobs from repeat consumers 79% of jobs from unpaid channels 773.6k 773.6k 677.8k 677.8k 21% 580.4k 580.4k 33% 64% 57% 35% 57% 79%
Slide 12: H1 FY21 delivers improvement in all key metrics
H1 FY21 delivers improvement in all key metrics REVENUE PROFITABILITY KEY DRIVERS For personal use only MRR1 $4.6m Gross 87% Total Tradie $1,483 Up 31% Margin3 ARPU H1 FY20: 77% Up 31% Recurring $25.3m $6.9m EBITDA4 H1 FY20: Subscription 28.8k revenue2 Up 26% ($0.1m) tradies Up 12% EBITDA to OCF Con
Slide 13: Strong growth in Monthly Recurring Revenue
Strong growth in Monthly Recurring Revenue1 Acceleration in MRR as more tradies subscribe and ascend to higher price points For personal use only 31% $5.0m • MRR 1 of $4.6m @ December 2020, up 31% vs pcp underpins strong recurring revenue $4.6m growth • Driven by growth in subscription tradies, jobs
Slide 14: Long-term focus on expanding the ecosystem
Long-term focus on expanding the For personal use only ecosystem ● Value-addservices ○ Fintech ○ Insurance services ○ Procurement & Delivery ● Provide end-to-end solution ○ Field Service Software (SAAS) ● Channelexpansion ○ End-To-Endexperience ○ Insurance claims (repairs) ● Enhanced subscription ○
Slide 15: Multiple opportunities for growth
Multiple opportunities for growth For personal use only Core tradie platform Evolution to SaaS model • Drive yield and tradie growth as continue • Field service software provides tradies with transition to subscription model workflow management capability • Target medium to large trade businesses •
Slide 16: FY21 Outlook
FY21 Outlook For personal use only Strong start to H2 with January revenue up 18% on pcp, ahead of expectations with no adverse impact from COVID-19 Expect H2 FY21 revenue growth to be similar to H1 FY21 on pcp In H2, reinvest cost savings in brand marketing, tradie acquisition, technology and produ
Slide 17: Q&A
For personal use only Q&A ASX Small & Mid-Cap Conference | March 2021 17
Slide 18: Appendix
For personal use only Appendix ASX Small & Mid-Cap Conference | March 2021 18
Slide 19: H1 FY21 Result Summary
H1 FY21 Result Summary Strong performance across all key metrics For personal use only PRO FORMA FINANCIAL AND OPERATING METRICS H1 FY21 H1 FY20 Var (%) FY21f Var (%)4 • 31% growth in MRR @ Dec 2020 driving recurring Financial Summary revenue growth of 26% Total revenue ($m)1 26.9 22.8 18% 53.9 15%
Slide 20: Profit Reconciliation
Profit Reconciliation For personal use only $’000s Reported EBITDA (from continuing operations) 1,407 • Pro forma EBITDA of $6.9m after: Transaction costs related to IPO 4,780 Non-recurring remuneration 565 • Removal of IPO transaction costs in relation to the secondary raise ($4.8m) Net loss on con
Slide 21: Disclaimer
Disclaimer For personal use only IMPORTANT NOTICE 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.
hipages Group Holdings — ASX Small and Mid-Cap Conference 2021 on 6ix