Vercom Sa · GPW:VRC
Vercom Sa — FY2024 Earnings Presentation
51 slides from Vercom Sa's earnings presentation, Mar 18, 2025
Slide 1: Annual results 2024 Investor presentation
| Annual results 2024 Investor presentation 18 March 2025 : Scale beyond
Slide 2: Disclaimer
: Disclaimer By reviewing this material, you agree to the following limitations: The information provided was prepared by VERCOM S.A. (the "Company”) for informational purposes only and for the purposes of this presentation (the "Presentation"). This Presentation does not constitute or form part of
Slide 3: One of the most successful IPO stories on the WSE in recent years
: One of the most successful IPO stories on the WSE in recent years
Slide 4: Highly successful years on WSE
: Highly successful 4 years on WSE LTM EBITDA 28 110 x4 Customers 11,400 94,700 x8 Addressable market CEE Global x14 IPO Today 4
Slide 5: We are consistently exceeding financial targets
: We are consistently exceeding financial targets Initial IPO ESOP financial target – adjusted EBITDA (PLNm) IPO ESOP target EBITDA (organic + M&A*) 110 85 75 60 55 45 37 37 2021 2022 2023 2024 * Annualized EBITDA of MailerLite acquired in June 2022 amounts to c. PLN 20m 5
Slide 6: 3x market cap growth since IPO
: 3x market cap growth since IPO Market capitalization (PLNm) 3,500 3,000 3x 7 mar 25* Increase since IPO 2,500 ESOP target 2024 (PLN 90 p.s.) 2,000 1,500 7 Mar 22 1,000 500 Dec 21 Apr 22 Aug 22 Dec 22 Apr 23 Aug 23 Dec 23 Apr 24 Aug 24 Dec 24 * Announcement of mWIG40 annual update 6
Slide 7: Another record year underpinned by +30% organic growth
: Another record year underpinned by +30% organic growth
Slide 8: 2024 was another record year
: 2024 was another record year Gross profit Growth y/y PLN 221m +22% Adj. EBITDA PLN 110m +30% Net income* PLN 77m +34% : Scale beyond * Net income in 2023 adjusted for PLN 13m profit on sale of shares in User.com 88
Slide 9: Attractive perspective of growing dividends
: Attractive perspective of growing dividends Net profit, dividend payout (PLNm) Minimum dividend payout resulting from Vercom dividend policy (+50% of consolidated net profit) Dividend Net Income 77 58 35 39 31 25 2022 2023* 2024 * Net income in 2023 adjusted for PLN 13m profit on sale of shares in
Slide 10: Adding 1,300 customers per month
: Adding 1,300 customers per month Number of customers +15,300 94,700 79,400 2023 2024 : Scale beyond 10 10
Slide 11: Strategic partnership with Azure Marketplace!
: Strategic partnership with Azure Marketplace! +350,000 clients globally : Scale beyond 1111
Slide 12: Growth in the Enterprise segment driven by new demand pockets and cross-sell opportunities
: Growth in the Enterprise segment driven by new demand pockets and cross-sell opportunities
Slide 13: Tomasz Pakulski, COO Vercom (Enterprise), CEO MessageFlow
Tomasz Pakulski COO Vercom (Enterprise) CEO MessageFlow : Scale beyond
Slide 14: MessageFlow is driving customer acquisition and cross-selling
: MessageFlow is driving customer acquisition and cross-selling Major consumer brands landed throughout 2024, incl.: Increasing effectiveness of cross-selling +25% YoY increase of gross margin from email +40% YoY increase of gross margin from sms +50% YoY increase of gross margin from push 14
Slide 15: Vercom leads the implementation of RCS and OTT among Enterprise customers
: Vercom leads the implementation of RCS and OTT among Enterprise customers Q3 2024 Q1 2025 Q2 2024 Q4 2024 15
Slide 16: 8x increase of the RCS / OTT volume just in Q4
: 8x increase of the RCS / OTT volume just in Q4 RCS & OTT messaging volume (mln) 8x 7.6 1.0 Q3 2024 Q4 2024 16
Slide 17: RCS is set to change the A2P messaging landscape
: RCS is set to change the A2P messaging landscape RCS market value (USDb) Key highlights Total market value expected to reach USD 3bn by 2028, a 9-fold growth vs. USD 300m currently 9x RCS growth Telecoms are expediting implementation of RCS, with significant coverage across Asia, North America and
Slide 18: OTT and RCS will enable the growth of conversational communication
: OTT and RCS will enable the growth of conversational communication ? Conversational communication RCS Viber Messenger WhatsApp We are here Market size Transactional communication Email SMS Push Marketing communication Email SMS Push 2005 Today Timeline Source: Vercom 18
Slide 19: Strategic partnership with Microsoft to grow international presence
: Strategic partnership with Microsoft to grow international presence
Slide 20: Strong focus on increasing international presence via MessageFlow and MailerLite
: Strong focus on increasing international presence via MessageFlow and MailerLite Growth strategy for MessageFlow and MailerLite Target addressable market (TAM) 14x TAM growth : SME Global 8,200m USD Targeting broader spectrum of customers Europe 1,200m USD : ENTERPRISE CEE Globalization of the 600
Slide 21: The launch of MessageFlow paved the way to international Enterprise clients
: The launch of MessageFlow paved the way to international Enterprise clients MessageFlow – brand aimed at international Enterprise clients PLN 10m invested into MessageFlow platform launched in Q4 2023 Setting up data centre in Berlin with direct link to cloud services providers, fully compliant wi
Slide 22: We are extending our support to existing Enterprise customers across Europe
: We are extending our support to existing Enterprise customers across Europe Selected clients Number of markets MessageFlow – current European coverage #21 European countries where Vercom provides services to Enterprise clients #20 #6 Other: <15 22
Slide 23: 3x increase of global traffic since MF launch
: 3x increase of global traffic since MF launch Messages sent by Enterprise clients in Europe (excl. Poland) x3 63 20 2023 2024 23
Slide 24: MessageFlow joins Azure Marketplace!
: MessageFlow joins Azure Marketplace! Partnership highlights Partnership agreement with Microsoft signed in Q1 2025 – MessageFlow will become available on Azure Marketplace MessageFlow will get immediate visibility to potential international customers using Microsoft Azure infrastructure and will b
Slide 25: Streamlining SME customer experience to drive customer acquisition and ARPU
: Streamlining SME customer experience to drive customer acquisition and ARPU
Slide 26: Indrė Sizovaitė, COO Vercom (SME), CEO MailerLite
Indrė Sizovaitė COO Vercom (SME) CEO MailerLite : Scale beyond
Slide 27: Generate high-converting pages in seconds with AI
: Generate high-converting pages in seconds with AI, customized to your goals 27
Slide 28: AI-Powered email content creation
: AI-Powered email content creation - saving time and optimizing every step Generative AI tools are integrated into all aspects of email content creation Highlights Successful rollout of new AI features that allow to automate most manual inputs allowing clients to save time and resources Current fea
Slide 29: AI-driven efficiency and customer experience
: AI-driven efficiency and customer experience 6x Page publishing and newsletter creation is six times faster 2x Landing page publishing doubled after the rollout of the new AI builder 29
Slide 30: One-to-one transactional messaging solution is gaining momentum among SMEs
: The one-to-one transactional messaging solution is gaining momentum among SMEs Transactional messaging platform Highlights Combines marketing and transactional messaging for a seamless and complete customer journey Easy to start, automate, and scale with highly personalized one-to-one transactiona
Slide 31: 5x revenue growth in transactional messaging
: 5x revenue growth in transactional messaging Revenue from transactional messaging at MailerLite (USDm) x5 Serving over 16,000 monthly active users across free and paid plans 1.1 0.6 0.2 2022 2023 2024 31
Slide 32: Localization accelerates customer acquisition and loyalty
: Localization accelerates customer acquisition and loyalty MailerLite localized for the Polish market Highlights MailerLite was localized for the Polish and Spanish market in Q3 2023 The localization proved highly successful in: ▪ Increasing brand visibility and customer acquisition in local market
Slide 33: MRR growth confirms localization was desired
: MRR growth confirms localization was desired MRR of localized versions of MailerLite (USDk) 5x 203 155 103 70 38 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 33
Slide 34: Highest NPS among competitors
: Building strong customer relationships with the highest NPS among competitors Net Promoter Score (NPS)* High NPS results in stronger retention, higher lifetime value, and increased referrals - all of which fuel sustainable, long-term growth 65 49 47 44 35 MailerLite MailChimp Klaviyo SendGrid HubS
Slide 35: Healthy growth structure driven by customer adds and cross-selling
: Healthy growth structure driven by customer adds and cross-selling
Slide 36: Gross profit margin reflects dynamically growing scale of the business
: Gross profit margin reflects dynamically growing scale of the business Gross profit (PLNm) +57% CAGR 2020 – 2024 221 181 116 57 36 2020 2021 2022 2023 2024 36
Slide 37: Gross profit growth driven by customer adds and cross-selling
: Gross profit growth driven by customer adds and cross-selling of services Gross profit (PLNm) +22% +162% -9 p.p. +15,300 Significant increase in sales to Enterprise clients in 2024 drove NER up while diluting the gross margin (121% NER ex. top client) 221 181 2023 New clients NER* Margin change 20
Slide 38: Stable SG&A cost base allows to benefit from operating leverage
: Stable SG&A cost base allows to benefit from operating leverage General and administrative expenses (PLNm) Note Stable G&A costs throughout 2024 19.6 19.1 18.9 18.6 17.2 The increase of G&A YoY costs is mostly associated with the growing scale of the business (PLN 1.4m) Q4 2023 Q1 2024 Q2 2024 Q3
Slide 39: Dynamic EBITDA growth in line with target growth trajectory
: Dynamic EBITDA growth in line with target growth trajectory Adjusted EBITDA (PLNm) Note 2024 EBITDA PLN 15m above the +43% M&A-adjusted ESOP target and PLN 35m above the initial IPO guidance Strong organic growth rate in 2024 amounting to c. 30% YoY supported by operating leverage 110 Decrease in
Slide 40: Strong cash generation capacity proven by increasing free cash flow
: Strong cash generation capacity proven by increasing free cash flow
Slide 41: Growing conversion rate of EBITDA into operating cash flow
: Growing conversion rate of EBITDA into operating cash flow Adjusted EBITDA and net cashflow from operating activities (PLNm) Growing contribution of SaaS services with annual prepaid plans has positive Adjusted EBITDA Net cashflow from operating activities impact on NWC supporting EBITDA to OCF co
Slide 42: Strong cash generation with c. 87% EBITDA to FCF conversion
: Strong cash generation capacity with c. 87% EBITDA to FCF conversion EBITDA to FCF bridge (PLNm) 13 -12 87% -11 -5 EBITDA to FCF conversion rate 110 96 19% FCF margin 3) 2) 1) 1) 2024 Adj EBITDA Capex Tax Leasing NWC change 2024 FCF 42
Slide 43: Rule of 40 - outstanding performance vis-à-vis global SaaS peers
: Rule of 40 - outstanding performance vis-à-vis global SaaS peers Rule of 40 for selected SaaS peers One of the highest Rule of 40 (FCF margin + growth rate) among top global competitors 56% 51% 49% 42% 42% FCF margin 19% 23% EBITDA growth 30% 8% Source: finbox.com, accessed on 13/03/2025 43
Slide 44: Net income growth and decreasing leverage provide more space for dividends and growth
: Net income growth and decreasing leverage provide more space for dividends and growth initiatives
Slide 45: Robust net income growth
: Robust net income growth Net profit (PLNm) Note +41% CAGR 2020 – 2024 Robust EPS CAGR in 2020-2024 amounting to c. 26% despite share issue to finance acquisition of MailerLite Strong net profit growth in 2024 of 34% yoy to PLN 77m despite c. PLN 6m of positive FX impact on 2023 net profit 77 Stron
Slide 46: We have achieved net cash position
: We have achieved net cash position Net cash (PLNm) Note M&A: Dividend: Dividend: PLN 260m PLN 25m PLN 35m Positive net cash position amounting to PLN 11m 11 Negative net debt / EBITDA (-0.1x), down from 3.0x following the acquisition of MailerLite in Q2 2022 -31 -41 Stronger cash position means -5
Slide 47: We aim to maintain ambitious growth dynamics
: We aim to maintain ambitious growth dynamics
Slide 48: Organic EBITDA targets in the proposed new ESOP for 2025-2028
: Organic EBITDA targets in the proposed new ESOP for 2025-2028 EBITDA targets in the 2021-2024 ESOP EBITDA targets proposed for the new 2025-2028 ESOP Organic EBITDA (2021-2024 ESOP) 230 Total EBITDA delivered 195 Organic EBITDA (2025-2028 ESOP) 165 135 110 85 75 60 55 45 37 37 2021 2022 2023 2024
Slide 49: We are aiming to achieve PLN 300m+ total EBITDA by 2028
: We are aiming to achieve PLN 300m+ total EBITDA by 2028 230+ 70+ 300+ PLNm PLNm PLNm Organic EBITDA M&A EBITDA Total EBITDA 49
Slide 50: Key takeaways from 2024 results
: Key takeaways from 2024 results We celebrate another record year underpinned by 30% EBITDA growth to PLN 110m, 47% above the initial IPO ESOP target Healthy growth structure driven by customer adds (+15,300 clients, c. 20% YoY) and increasing sales to existing clients (NER +162%) Massive growth of
Slide 51: Thank you for your attention
: Thank you for your attention