Tiny Ltd. Class A · TSX:TINY
Tiny Ltd. Class A — Investor Presentation (October 2024)
25 slides from Tiny Ltd. Class A's investor presentation, Oct 17, 2024
Slide 1: Tiny Investor Presentation October 17, 2024
Tiny Investor Presentation October 17, 2024
Slide 2: Legal disclaimer
Legal disclaimer This presentation is being given by Tiny Ltd. (the “Company”) for information purposes only. Reliance on this presentation for the purpose of engaging in any investment activity may expose a person to significant risk of losing all of the money, property or other assets invested. No
Slide 3: Leadership
01 Leadership
Slide 4: Tiny Co-Founders & Leadership
Tiny Co-Founders & Leadership Andrew Wilkinson Chris Sparling Jordan Taub Mike McKenna CO-FOUNDER & CHAIR CO-FOUNDER & VICE CHAIR OF CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER OF THE BOARD OF DIRECTORS THE BOARD OF DIRECTORS Appointed CEO of Tiny in June Joined Tiny in July 2024; Public face of
Slide 5: Tiny Business Overview
02 Tiny Business Overview
Slide 6: Tiny Key Business Units
TINY KEY BUSINESS UNITS Software & Apps - Creative Platform - Digital Services - Tiny Fund I WeCommerce Dribbble & Creative Market Beam Recurring revenue software Leading social network and A group of leading design Investment fund and digital theme businesses marketplace for designers (UX, UI), eng
Slide 7: Software & Apps: WeCommerce
Software & Apps: WeCommerce A group of businesses that support merchants, primarily in the Shopify ecosystem through two main streams - SaaS Software Overview and digital theme design templates. The platform earns revenue from SaaS subscriptions (recurring) and digital theme sales. WeCommerce plans
Slide 8: Creative Platform: Dribbble & Creative Market
Creative Platform: Dribbble & Creative Market Dribbble is the largest independent social network for graphic and web designers. With 13 million members, it is one of the top 3,000 sites on the internet and the best place for designers to showcase their portfolio, build an audience, and to find contr
Slide 9: Digital Services: Beam
Digital Services: Beam With a nearly 20 year track record, Beam's agencies create cutting-edge digital products and experiences for global brands, including websites and applications. Overview Revenue from billing on digital design contracts. These are typically structured as hourly engagements, ret
Slide 10: Tiny Fund I
Tiny Fund I INITIAL FUND ACQUISITION GENERAL PARTNER ACQUISITION DATE OWNERSHIP COST Tiny Ltd. Tiny Ltd. holds 20.24% LP interest August 2021 93.8% US$64.7M September 2023 60.0% US$36M CAPITAL RAISED March 2022 85.0% US$14.8M US$148M January 2024 100% US$9.4M TERM June 2021 58.0% US$5.5M 10 year, wi
Slide 11: Our platforms: Financial Summary
Our platforms Financial Summary PRO-FORMA REVENUE BY SEGMENT PRO-FORMA CONSOLIDATED 2 3 4 3 4 TIME PERIOD 2022 2023 Q2'24 TTM TIME PERIOD 2023 Q2'24 TTM Software & Apps — $48.5M $50.2M $53.0M Revenue 1 $199.1M $201.6M WeCommerce Recurring Revenue % 19% 19% Creative Platform - EBITDA $46.9M $15.3M Dr
Slide 12: Revenue by segment
Digital Services Revenue by segment Software & Apps Creative Platform Pro Forma* Other 5% 4% 3% 3% 2% 3% 3% 6% 30% 27% 31% 27% 33% 32% 37% 34% 25% 26% 28% 26% 22% 27% 26% 27% 41% 41% 44% 41% 43% 34% 38% 33% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 * Pro Forma revenue inclusive
Slide 13: Overview of Financial Results
Overview of Financial Results PRO-FORMA REVENUE PRO-FORMA ADJUSTED EBITDA & ADJUSTED (in $CM) EBITDA MARGIN (in $CM) $201.6M $199.1M 16% 16% $31.4M $31.8M 19% 17% 14% 14% 14% 13% $49.9M $47.5M $50.5M $51.2M $48.9M $51.0M $9.5M $8.6M $6.8M $6.9M $6.8M $6.5M Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 2023 TT
Slide 14: Overview of Debt
OVERVIEW OF DEBT REVOLVING REVOLVING NET DEBT: TERM LOAN BORROWING BORROWER FACILITY - FACILITY - ADJUSTED BALANCE CURRENCY 2 1 UTILIZED AVAILABLE EBITDA Corporate N/A $0 $25.0M N/A CAD Digital Services $68.4M N/A N/A 3.96x USD Creative Platform $0 $0 $35.9M N/A USD Software + Apps $40.7M $12.0M $15
Slide 15: Q2 Highlights
Q2 Highlights Total revenue for Q2 2024 of $51.0 million, an increase of $2.1 million from Q1 2024 Completed equity raise Acquired 100% of MediaNet Debt repayment of $16.0 of $20.6 million with Solutions, an education million in the quarter; net debt Hosking Partners LLP software business of $98.7 m
Slide 16: Capital Allocation Strategy
03 Capital Allocation Strategy
Slide 17: Tiny's Investment Approach
Tiny's Investment Approach Dream Businesses Unique Opportunities Mismanaged Gems COMPOUNDING WITH A MOAT TURNAROUNDS OPERATIONAL EXCELLENCE Every once in a while, we are Simple businesses with weak / at-risk We often acquire companies which lucky enough to buy a truly models that we can buy at a pri
Slide 18: Tiny's Advantage - A Case Study
Tiny's The investment thesis was built on three key pillars: Advantage - 1 Implementing best practices around piracy / license enforcement: Leveraging best practices from our A Case Study portfolio companies (Archetype, Pixel Union) Price optimization / feature enhancement consistent with premier th
Slide 19: Tiny's Advantage - A Case Study
Tiny's Revisiting the Thesis: 1 Year Later Advantage - Revenue has increased by 32% within the first 12 months post-acquisition, driven by implementation A Case Study of best practices / execution of investment thesis. EBITDA margins remained steady, reflecting the business' continued operational ef
Slide 20: Strategic Priorities
04 Strategic Priorities
Slide 21: Strategic Priorities
Strategic Priorities Making sure that Tiny continues to be a great home for wonderful businesses Increasing cash flow through Growth through acquisitions Managing and Well-designed incentive a combination of: with a focus on: reducing debt levels plans aligned to organic • Disciplined investment in
Slide 22: Focus on Debt Repayment
Focus on Debt Repayment NET DEBT TO ADJUSTED EBITDA RATIO JUNE 30, 2024 DECEMBER 31, 2023 $22.4M $26.9M 3.8x Debt Outstanding $121.1M $131.2M 3.5x 3.1x Net Debt $98.7M $104.3M Q4 2023 Q1 2024 Q2 2024 Total debt outstanding on June 30, During the quarter, the Company reduced 2024 was $121.1 million c
Slide 23: Appendix
05 Appendix
Slide 24: Appendix 'A' Non-IFRS Measures
Appendix 'A' NON-IFRS MEASURES Investors are cautioned that the non-IFRS measures used below should not replace net income or loss (as determined in accordance with IFRS) as an indicator of the Company’s performance. These are supplemental measures management uses in managing the business and making
Slide 25: Appendix 'A' Continued Pro Forma Annual Figures
Appendix 'A' Continued Pro Forma Annual Figures 2023-2022 WECOMMERCE PRO FORMA WECOMMERCE PRO FORMA TINY LTD. TINY CAPITAL LTD. HOLDINGS LTD. TINY + WECOMMERCE HOLDINGS LTD. TINY + WECOMMERCE YEAR ENDED DEC 31 3 MONTHS ENDED MAR 31 YEAR ENDED DEC 31 YEAR ENDED DEC 31 YEAR ENDED DEC 31 YEAR ENDED DEC