Getty Images Holdings, Inc. · NYSE:GETY
Getty Images — SPAC Merger (December 2021)
52 slides from Getty Images's SPAC merger presentation, Dec 28, 2021
Slide 1: Investor Presentation December 2021
Investor Presentation DECEMBER 2021
Slide 2: Disclaimer
2 2 This confidential investor presentation (this “Presentation”) is for informational purposes only to assist interested parties in making their own evaluation with respect to an investment in connection with the proposed business combination (the “Business C ombination”) between CC Neuberger Princ
Slide 3: Financial Information and Use of Projections
3 3 Financial Information The historical financial information regarding Getty Images, Inc. contained in this Presentation has been taken from or prepa red based on historical financial statements of Getty Images, Inc.. These historical financial statements provided have only been r eviewed under pr
Slide 4: Today's Participants
4 CC Neuberger Principal Holdings II Getty Images Craig Peters CEO Founder & CEO Chinh Chu EVP, Corporate Development 17 years of investment and private equity experience, including co - founding The WindAcre Partnership Douglas Newton Director Charles Kantor Jennifer Leyden SVP, Investor Relations
Slide 5: Strong Competitive Differentiation
5 Strong Competitive Differentiation Blue - chip company with scarcity value Highest quality, exclusive content library , including partnerships with leading media, entertainment and sports properties to serve diverse enterprise, SMB, and prosumer customer base Marketplace with strong network effect
Slide 6: Value creation levers
6 6 6 Video Upsell Opportunity Attractive Subscription Business Model Corporate Customer Opportunity Partnerships, M&A and NFTs AI / ML & Data Analytics Superior Marketing ROI 1 4 6 2 3 5 x Accelerate recurring growth momentum x Further penetrate and expand enterprise subscriptions and unlock signif
Slide 7: Transaction Overview: Sources and Uses, Pro Forma Valuation and Ownership
7 ($ in millions) Transaction Sources Amount CCNB2 Cash in Trust 2 $828 CCNB2 FPA 200 PIPE Investors 225 Balance Sheet Cash 199 Total Sources $1,452 Transaction Uses Amount Existing Debt Paydown $651 KED Preferred Paydown 6 589 Cash to Balance Sheet 100 Transaction Expenses 3 112 Total Uses $1,452 (
Slide 8: Business Overview
1 Business Overview 8 1
Slide 9: Our Mission and Culture and Values
9 Our Mission: Move the world with images Our Culture and Values: We are trustworthy, transparent, and honest We always raise the bar We collectively bring solutions We care, are kind, courteous, and respectful We reject biased behavior and discrimination We are inclusive of different voices, perspe
Slide 10: Scalable Global Platform
10 10 CONTENT CONSUMERS 2 00+ Countries & Territories 2.3bn+ Searches / Year ~45% FY’21E Subscription Revenue 420k+ New Customers / Year 1 CONTENT CREATORS 250+ Content Partners 450k+ Contributors 79k+ Exclusive Contributors 100+ Staff Photographers and Videographers 10 Scalable Global Platform Best
Slide 11: Management Team
11 Craig Peters Chief Executive Officer Andy Saunders SVP, Creative Content Ken Mainardis SVP, Global Head of Content 30 Years with Getty Images 17 Years with Getty Images Lizanne Vaughan Chief People Officer 15 Years with Getty Images Founded Unsplash in 2017 with Broad Experience in Media and Entr
Slide 12: Leading Content Creator and Marketplace
12 Note: Note: Searches, Visitors, Assets, Contributors, and Staff data for Getty Inc. are annualized as of Q3’21, excluding Unsplash . 1 Pro forma for Unsplash acquisition, which closed April 1, 2021. 2 Based on 1H’21 revenue. 3 Exclusive Content Revenue as of LTM Q2’21 4 Please see appendix for a
Slide 13: Company Highlights
1 Company Highlights 13 2
Slide 14: Company Highlights
14 14 Company Highlights Vast Demand for Visual Content with Significant Whitespace 1 2 Compelling Value Proposition to Clients 3 Premium Content Offering Across Creative and Editorial 4 Growing Customer Subscription Focus 5 Reinvigorated Go - To - Market Strategy Bolstered by Improved Marketing Dep
Slide 15: Overview of Market Opportunity
15 1 Overview of Market Opportunity 15 1 Third Party Consultant Study, October 2021. 2020 TAM figure includes North America, EMEA and ROW. 2 InsightSlice , November 2020. 3 Statista Digital Advertising Spending in the U.S. 2019 - 2024, as of May 21, 2021. 4 PubMatic 2020 Global Digital Ad Trends (20
Slide 16: Compelling Value Proposition to Clients
16 Compelling Value Proposition to Clients Corporations Media Agencies ~51% 1 ~29% 1 ~20% 1 Advertising & social media Sales materials & product presentation Company website & content Internal communications Movies, television, and online videos Photo galleries & sets Articles & books Learning & oth
Slide 17: Comprehensive Product Offering Across the Value Spectrum
17 Comprehensive Product Offering Across the Value Spectrum ▪ Premium creative and editorial content, including video, offered mainly to Enterprises ▪ Preeminent Editorial offering with 50+ premium content partners 1 , a comprehensive archive, and a dedicated team of 300+ 2 ▪ Premium Access plans of
Slide 18: Exclusive and Differentiated Content
18 3 Exclusive and Differentiated Content Well - Positioned Across All Segments Note: All data based on FY 2020, unless otherwise noted . Revenue split p ercentages do not add up to 100% due to rounding and Other Revenue, which accounts for ~2% of total revenue excluding discontinued products, and w
Slide 19: Growing Customer Subscription Focus
19 Annual Subscription Revenue 1 1 Represents annual subscription product revenue as a percentage of total revenue (excluding discontinued products). 2 Based on annual subscriber retention for LTM Q3’21. Note retention is calculated based on LTM vs NTM booked revenue. For example, LTM Q3’21 retentio
Slide 20: Efficient New Customer Acquisition Powering High-ROI Growth
20 Efficient New Customer Acquisition Powering High - ROI Growth Significant acceleration in acquisition engine efficiency New customers per million dollars of digital marketing spend New customer revenue for every dollar of digital marketing spend 1 Customer acquisition cost (CAC) 2 ~$160 FY2019 ~6
Slide 21: Value Creation Opportunity
3 Value Creation Opportunity 21
Slide 22: Capturing Growth in the Corporate Segment
22 Capturing Growth in the Corporate Segment Note: ARPU defined as Average Revenue per Customer. 1 Top 3000 global corporations based on media spend from M ediaRadar (April 2021) and internal 2020 Getty Images global spend by OID. Drive corporate penetration and higher ARPU Leverage growing insourci
Slide 23: Increased Video Demand and Cross Promotion
23 Increased Video Demand and Cross Promotion on Website Experiences Expanded Sales Emphasis Across Production Segment 23 x Image Partners x Owned Editorial x User Generated Content Continued Investment In... + 25% YTD Q3’21 YoY Growth Music integrated into subscriptions providing additional value a
Slide 24: Video Penetration Leading to Positive Customer Outcomes
24 1 Calculated based on total revenue from new customers that utilize video divided by total revenue in a given year. 2 Represents the % implied growth between total LTM and NTM spend for yearly first purchase video cohorts. iStock Video Editor and Premium Plus Video subscription introduced in 2021
Slide 25: Marketing Spend Upside
25 ~ 6% ~ 12% 1 2 Marketing Spend as % of Total Revenue 1 Source: Company filings and company information. 1 Based on 2020 financials. 2 Illustrative revenue opportunity based on unit economics of 1H’21 CAC of ~$105 and $685 average revenue per customer in year 3, based on cohorts for FY 2015 – FY 2
Slide 26: Vast Opportunity to Increase Penetration Across High Growth Markets
26 Vast Opportunity to Increase Penetration Across High Growth Markets Strong brand reputation, existing content and technology capabilities and marketing focus underpin future growth potential in Rest of World markets North America : 54% $437mm Europe : 32% $256mm Rest of World : 12% Indirect : 3%
Slide 27: Unsplash M&A Case Study
27 Unsplash is an established platform with scaled global traffic and API platform integrations Long - tail consumers SMBs Enterprise Extensive content catalogue targeting the long tail consumer Monetize traffic through advertising Expedite monetization through affiliate integration with iStock and
Slide 28: Significant Opportunities for Partnerships and Acquisitions
28 Significant Opportunities for Partnerships and Acquisitions Getty Images is Technology and Data - Driven Proprietary data driving search capabilities Scaled content sources Rich metadata, AI and computer vision capabilities Leverage Sponsor’s experience in data, analytics and insights Partnership
Slide 29: Financial Overview
29 Financial Overview 4 29
Slide 30: Financial Highlights
30 30 Financial Highlights Highly Durable, Recurring Subscription Base with Strong Retention Rates 1 2 3 4 Sustainable Long - Term Financial Algorithm and Ability to Further De - lever Strong Margins and FCF Conversion Favorable Operating Metrics as Compared to Key Industry Peers and Competitors 5 R
Slide 31: Summary Financial Overview
31 459 503 516 532 599 276 296 294 266 296 14 16 13 13 15 $955 $749 $815 $823 $810 $910 $980 FY17A FY18A FY19A FY20A FY21E FY22E Creative Editorial Other 1% (1%) 12% % Growth: Revenue 6% Note: All figures exclude discontinued products . Please see appendix for a reconciliation of non - GAAP measures
Slide 32: Adj. EBITDA and Free Cash Flow
32 $256 $110 $162 $197 $224 $240 $264 FY17A FY18A FY19A FY20A FY21E FY22E Note: Please see appendix for a reconciliation of non - GAAP measures. 1 Adj. EBITDA is defined as public company adjusted for non - recurring and discontinued items. Adj. EBITDA margin based on revenue excluding discontinued
Slide 33: Reported Growth is Accelerating
33 0.5% 7.4% 4.3% 3.8% 3.2% 4.8% 14.4% CAGR 2017 - 2019 YTD Q3'19 vs. YTD Q3'21 Impact of Excluding COVID Affected Products Impact of Excluding Discontinued Products Reported Growth is Accelerating Creative has accelerated from 6% to 15% growth, driven by simplicity of RF Stills and growth in Video
Slide 34: Differentiated on Business and Performance
34 Differentiated on Business and Performance Source: Company Management, Public filings. Note: Data as of Q3 YTD, unless otherwise noted. 1 Getty Images’ growth is adjusted for discontinued product impacts and the acquisition of Unsplash ; Getty Images’ reported revenue growth was 14.2%; Shuttersto
Slide 35: Getty Images Excels Across Key Performance Indicators
35 656 688 672 715 766 FY17A FY18A FY19A FY20A LTM Q3'21A Total Purchasing Customers 1 Total Active Annual Subscribers 2 LTM Annual Subscriber Revenue Retention Rate 3 30 45 53 59 70 FY17A FY18A FY19A FY20A LTM Q3'21A 98.7% 101.3% 97.5% 87.9% 102.3% FY17A FY18A FY19A FY20A LTM Q3'21A 1 Based on book
Slide 36: Key Performance Indicators (Cont'd)
36 1 Attachment is calculated as % of downloaders who downloaded video from all offerings (inclusive of subscription and non - subscrip tion products). Getty Images Excels Across Key Performance Indicators (Cont’d) 322 362 400 426 450 FY17A FY18A FY19A FY20A LTM Q3'21A Image Collection Video Collect
Slide 37: Predictable and Adaptable Financial Model
37 ~45% 1 of subscription revenue with a global customer success sales team dedicated to maintaining and upselling renewals Getty Images has a Predictable and Adaptable Financial Model Consistently strong revenue retention rates across both subscription and non - subscription products Accelerating n
Slide 38: Long-Term Financial Algorithm
38 Getty Images has a Long - Term Financial Algorithm to Drive Value Long - Term Organic Growth Model Revenue Growth Adj. EBITDA Growth Adj. EBITDA Margin Capex as a % of Revenue 5% - 7%+ 8% - 11% Mid 30%’s 5.5% - 6% Adj. Gross Profit Margin Low 70%’s Additional Potential Upside from Acquisitions an
Slide 39: Priorities for Cash Flow and Leverage
39 ~ 3.2x ~2.5x – 3.0x Pro Forma Target Target Net Debt / Adj. EBITDA 4 Investment in Marketing to Drive Growth Investment in Data Capabilities and Technology to Drive Product Innovation Opportunistically Evaluate M&A Balance Capital Structure and Shareholder Return Priorities for Cash Flow Spend 1
Slide 40: Valuation Overview
4 Valuation Overview 40 40 5
Slide 41: Comparable Universe Framework
41 Getty Images is positioned at the intersection of the creative and information economies Getty Images Comparable Universe Framework Getty Images is positioned at the intersection of the creative and information economies Editorial (~33% 1 ) Comparability Valuation (2022E) EV/Revenue: 4.9x EV/Adj.
Slide 42: Appendix
6 Appendix 42 42
Slide 43: Q3 at a Glance
43 Source: Company filings. Revenue figures exclude discontinued products. Adj. EBITDA is a non - GAAP financial measure and is defined as public company adjusted for non - recurring and discontinued items. Adj. EBITDA margin based on revenue excluding discontinued products. Please see appendix for
Slide 44: Strong Growth in Creative & Editorial
44 Source: Company filings. Note. All figures are adjusted and exclude discontinued products. Video revenue embedded under both Creative and Editorial. Excludes Other revenue ($4.2mm). $126 $136 $147 Q3 '19 Q3 '20 Q3 '21 $73 $68 $83 Q3 '19 Q3 '20 Q3 '21 Strong Growth in Creative & Editorial 7.6% 8.3
Slide 45: Revenue Growth vs Shutterstock
45 Shutterstock Note: Normalized YoY Growth: Getty Images' growth is adjusted for COVID and discontinued product impacts; Acquisitions include PicMonkey and Turbosquid for Shutterstock and Unsplash for Getty Images. Shutterstock reported the combined impact in their Q3’21 10Q. Figures may not add up
Slide 46: Illustrative Benchmarking Analysis
46 Illustrative Benchmarking Analysis Source: Company filings and FactSet as of 12/8/2021. Note: Growth rates over 100% are not considered meaningful . Getty Images FY 2022E Revenue and Adj. EBITDA based on midpoint of guidance. FY 2022E Adj. EBITDA includes ~$9mm of public company costs (BOD, D&O,
Slide 47: Illustrative Benchmarking Analysis (Cont'd)
47 Illustrative Benchmarking Analysis (Cont’d) 5.0x 4.9x 12.8x 3.7x 14.5x 8.2x 17.0x 3.9x 5.8x 5.6x 5.0x 4.2x 3.1x 15.2x 19.8x 44.7x 15.6x NM NM 34.4x 19.4x 64.0x 38.9x 22.2x 20.3x 19.4x ($ in billions) Enterprise Value Source: Company filings and FactSet as of 12/8/2021 . Note: Multiples over 70.0x
Slide 48: GAAP vs. Non-GAAP Reconciliation
48 GAAP vs. Non - GAAP Reconciliation Historical Projections Fiscal Year, Fiscal Year, ($ in millions) 2017A 2018A 2019A 2020A 2021E 2022E Revenue, Reported $838 $868 $846 $814 $910 $955-$980 (-) Discontinued Products 1 (89) (53) (24) (3) (0) - Revenue (Excl. Discontinued Products) $749 $815 $823 $8
Slide 49: Quarterly GAAP vs. Non-GAAP Reconciliation
49 ($ in mm) Q3 2019 Q3 2020 Q3 2021 Revenue, Reported $209 $207 $235 (-) Discontinued Products 1 (7) (1) (0) Revenue (Excl. Discontinued Products) $203 $206 $235 Gross Profit, Reported $148 $151 $172 (-) Discontinued Products 1 (4) (1) 0 Gross Profit (Excl. Discontinued Products) $144 $150 $172 % R
Slide 50: Environmental, Social and Governance Considerations
50 • Produce and provide authentic visuals that represent diversity of thought, background and perspective • Preserve and promote historic content of under - represented communities, such as through the HBCU preservation project • Investments to combat algorithmic bias • Carbon efficient customer so
Slide 51: Risk Factors
51 51 The risks presented below are certain of the general risks related to the business, industry and ownership structure of Griff ey Global Holdings, Inc. and its subsidiaries (collectively, the “Company”) and are not exhaustive. The list below is qualified in its entirety by disclosures contained
Slide 52: Risk Factors (Cont'd)
52 52 Risk Factors (Cont’d) Risks Relating to Legal and Regulatory Matters • An increase in government regulation of the industries and markets in which we operate, including with respect to the interne t a nd e - commerce, could have a negative impact on our business. • Our operations may expose us