Yougov Plc · LSE:YOU
Yougov — H1 FY2020 Earnings Presentation
30 slides from Yougov's earnings presentation, Apr 22, 2020
Slide 1: Half Year Results to 31 January 2020
Half Year Results to 31 January 2020 Strong growth in line with the second five-year plan
Slide 2: Summary
Summary
Slide 3: Summary of Results for the HY to 31 January 2020
Summary of Results for the HY to 31 January 2020 • Revenue growth of 16% (HY 2019: 18%), with underlying business1 growth of 15% • Adjusted operating profit2 up by 35% to £11.4m (HY 2019: £8.4m), with underlying business1 growth of 34% • Adjusted profit before tax3 up by 27% to £12.1m (HY 2019: £9.5
Slide 4: Current Trading and COVID-19 Impact
Current Trading and COVID-19 Impact • Current trading in line with the Board’s expectations for the full-year to 31 July 2020 • No material impact to date from the COVID-19 pandemic • Entire global workforce working from home; established culture of remote and flexible working means our clients cont
Slide 5: Financial Update
Financial Update
Slide 6: Financial Highlights
Financial Highlights 6 months to 6 months to 31 Jan 2020 31 Jan 2019 % Change £m £m Revenue 76.9 66.5 16% • Group Revenue increased by 16% to £76.9m (15% Adjusted Operating Profit 11.4 8.4 35% underlying business growth) • Gross Profit Margin up 2 p.p. to 84% Adjusted Profit before Tax 12.1 9.5 27%
Slide 7: Balance Sheet
Balance 31 Jan 2020 31 Jan 2019 £m £m Sheet Assets Goodwill 63.6 62.5 Other intangible assets 19.0 16.5 Other non-current assets 22.0 25.6 Total 104.6 104.6 Current Assets • Receivable days down to 34 Trade and other receivables 34.3 35.0 days from 48 days Cash 27.2 25.0 • Creditor days decrease to
Slide 8: Cash Flow
Cash 6 months to 6 months to Flow 31 Jan 2020 £m 31 Jan 2019 £m Cash flows from operating activities Statutory operating profit 9.5 8.4 Non cash movements 9.0 6.6 • Cash flow generated from operations of £17.3m: 93% of Net working capital movement (1.2) (4.8) adjusted EBITDA Cash generated from oper
Slide 9: Performance by Product and Service: Revenue
Performance by Product and Service: Revenue 6 months to 6 months to Underlying business1 Change 31 Jan 2020 31 Jan 2019 revenue change % £m £m % Data Products 25.1 19.4 29% 27% Data Services 18.3 17.8 3% 7% Total Data Products & Services 43.4 37.2 17% 17% Custom Research 33.9 30.4 12% 11% Intra-grou
Slide 10: Performance of Product and Service: Adjusted Operating Profit
Performance of Product and Service: Adjusted Operating Profit1 Operating Margin 6 months to 6 months to Change % 31 Jan 2020 31 Jan 2019 % Six months to Six months to £m £m 31 January 2020 31 January 2019 Data Products 8.5 5.9 43% 34% 31% Data Services 2.8 3.3 (16%) 15% 19% Total Data Products & Ser
Slide 11: Performance by Geography: Revenue
Performance by Geography: Revenue 6 months to 31 January 2020 6 months to Underlying Revenue 6 months to 31 January 2019 Change business1 31 January 2020 £m % revenue change UK Americas £m (restated) % Mainland Europe Middle East Asia Pacific UK 23.6 19.8 19% 19% USA 32.1 27.2 18% 17% 7% 7% 30% Main
Slide 12: Performance by Geography: Adjusted Operating Profit
Performance by Geography: Adjusted Operating Profit1 6 months to 6 months to Operating Margin 6 months to 31 January 2020 31 Jan 2019 Operating % Adjusted Operating Profit1 31 Jan 2020 Operating Profit Operating UK Americas Profit Growth Profit £ % 2020 2019 Mainland Europe Middle East £ (restated)
Slide 13: Product & Operational Update
Product & Operational Update
Slide 14: YouGov Plan & Track revenue
Growth in YouGov BrandIndex and YouGov Profiles are sold under Half Year Full Year period: the combined YouGov Plan & Track proposition 21% 45 40 38.9 • Our flagship brand intelligence service 35 • Covers 42 markets worldwide 30 30.2 Revenue £m • US remains largest market 25 20 23.4 22.3 15 18.4 • O
Slide 15: Data Services revenue
Growth in Our Data Services division incorporates our fast- Half Year Full Year period: turnaround services, including our market leading 4% 40.0 YouGov Omnibus 35.0 37.2 30.0 • Our fast-turnaround service 29.0 25.0 Revenue £m • Attracting more multi-national clients, leading to more 23.3 multi-coun
Slide 16: Custom Research operating profit margin
Margin Growth in • Quantitative and qualitative research directed by our Half Year Full Year period: sector specialists 7% 30% • Scope, scale and complexity of projects varies: • One-off studies 25% Operating Profit Margin % • Tracking studies for individual clients 24% • Syndicated studies sold to
Slide 17: Investment in product development and technology
Investment in product development and technology • We are investing in our websites, apps and dashboards to make it easier for our clients and the public to interact with our data • We continue to invest in developing our proprietary technology, including our analytics software Crunch • A first vers
Slide 18: Investment in panel
Investment in panel • We continue to invest in our proprietary online panel to increase our global research capabilities • We have grown our existing panels in Australia, India, Italy, Mexico, Poland, Spain and Taiwan • We now have 9.6 million registered panellists worldwide • Next, we are building
Slide 19: Investment in global infrastructure
Investment in global infrastructure Global Infrastructure • Cultivating a global presence without need for employees in every country • Enhancing our scalability by investing in Centres for Excellence (CenX) • Over the last five years, the CenX model has reduced our spend on data operations overhead
Slide 20: Focus on global accounts
Focus on global accounts • New global key account management programme kicked-off Phase 1: 25x • Cultivating our most significant 25 x existing client accounts for cross-selling and multi-national up-selling opportunities clients • Initial focus on multi-nationals based targeted in the USA
Slide 21: Strategy Update
Strategy Update
Slide 22: Strategic growth plan: best panel - best data - best tools
Strategic growth plan • YouGov is becoming the world’s leading provider of marketing and opinion data • We are creating a universal platform for the ethical and safe sharing of opinion and personal data • This ambition is supported by three strategic pillars (Data Integration, Public Data, Ethical A
Slide 23: Vision
Vision Vast, Syndicated Data continuous, single-source Research Services data collection All brought together on a universal platform MRP Crunch Direct Data Public Ethical Customisation Integration Data Activation The success of this vision is underpinned by our three strategic pillars Targeting & A
Slide 24: Data Integration
Data Integration Fully integrating custom research and client service Data Integration with our data products and tools Integration means both: 1. Connecting the uses of our data – creating new value from existing data 2. Customisation for clients – opening up new revenue streams Case Study: Multi-C
Slide 25: Public Data
Public Data Expanding YouGov Public Data as a public service, Public Data for brand reputation, panel engagement and showcasing our data • Part of YouGov’s mission is to make the data we collect from the public valuable to the public • We provide far more data for public value than any other researc
Slide 26: Ethical Activation and YouGov Direct
Ethical Activation Enabling activation on our platform Ethical Activation and YouGov Direct • Citizens’ control of their data has become a major issue • With YouGov Direct, members are able specify the terms under which each individual piece of data they provide can be used to generate value for the
Slide 27: Long-term growth targets
Long-term growth targets Three long-term targets define our growth plan for 2019-23: 1 2 3 Double Double Achieve an Adjusted1 Group Revenue Group Adjusted1 Operating Earnings Per Share Profit Margin compound annual growth rate in excess of 30% 1 Defined as earnings per share before the post-tax impa
Slide 28: Outlook
Outlook
Slide 29: Outlook
Outlook • Next five-year plan underway and progressing to plan in this 20th Anniversary year • Trading during H2 started positively - including a notable client win with a multi-year, multi-country tracking study for one of Germany’s largest financial services companies • Pipeline of sales opportuni
Slide 30: Thank you
Thank you YouGov