Thinkific Labs, Inc. · TSX:THNC
Thinkific Labs — Q4 2021 Earnings Presentation
33 slides from Thinkific Labs's earnings presentation, Feb 23, 2022
Slide 1: Q4 2021 Earnings Update
Q4 2021 Earnings Update Empowering course creators to create and sell online courses & other learning products Thinkific 2021
Slide 2: Disclaimer
Disclaimer This presentation is dated February 23, 2022, and has been prepared in connection with the earnings reporting for the period ending December 31, 2021 of Thinkific Labs Inc. (“the “Company”, “Thinkific”, “us” or “we”). In this presentation, all references to “$”, “US$”, “dollars” and “U.S. d
Slide 3: Disclaimer: Forward-Looking Statements
Disclaimer FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements and forward–looking information within the meaning of Canadian securities laws. Often, but not always, forward–looking information can be identified by the use of words such as "plans", "is expected", "expects
Slide 4: Greg Smith CEO, Corinne Hua CFO
Greg Smith Corinne Hua CEO CFO Thinkific Q4 2021 4
Slide 5: Key Metrics
Key Metrics Our formula is working and success is compounding 32.3K Total Paying Customers (+32% YoY) $43.8M $414.8M Annual Recurring Revenue $114/month Average Revenue per User (+9% YoY) FY 2021 Gross Merchandise Value(1) $38.1M 2021 Revenue (+43% YoY) (+50% YoY) (+81% YoY) As of December 31, 2021
Slide 6: About us
About us vT Thinkific 04 202
Slide 7: We are the core operating system for your knowledge business
Typeform Overview Paypal ActiveCampaign Email & Intercom Marketing Analytics Custom Domain Mailchimp We are the core Create Course operating system for Membership Sites your knowledge business Salesforce Build Website Certificates Zoom Communities Student Payments Support Shopify Assignments Google A
Slide 8: Our Market
Our Market Health & Fitness Business & Marketing As a horizontal solution, Personal Development we already serve course Arts & Entertainment creators from virtually Career Development every industry and Fashion & Beauty Software & Technology vertical Transportation Education Finance Sales Project Ma
Slide 9: Our Market: Thinkific TAM
Our Market Entrepreneurs and SMBs Any entrepreneur or Enterprise established business can use education as a tool for growth Rise of the entrepreneur and creator economy Mass adoption for online learning The future of work $27.9 - 34B Thinkific TAM (1) For businesses, we identified the propensity to d
Slide 10: Our Approach
Our Approach Premier & Plus Larger Brands $499-1,000+/mo Built for entrepreneurs, trusted by enterprise Pro + Growth $149/mo Scaling Entrepreneurs & Established Businesses Creators are able to start with Thinkific and grow their business with us to Entrepreneurs & nearly any size Pro $99/mo Establish
Slide 11: Our Business Model
Our Business Model Thinkific succeeds when Product & Platform Expansion Creators succeed Thinkific App Store & Thinkific Payments Creator Success Plan Upgrades Core Operating System Monthly Subscription Freemium ARPU increases as customers succeed Thinkific Q4 2021 11
Slide 12: Our Strategy
Our Strategy Growing our Continued innovation to customer base enhance success for our Course Creators Executing against our strategy Investing in our differentiated Expansion of Thinkific Continued expansion of market position Payments our partner ecosystem Building for the long term Thinkific Q4 202
Slide 13: Amplify 2022 Reveals Growing Interest in Knowledge Economy
Amplify 2022 Reveals Growing Interest in Knowledge Economy Gathering top minds in the knowledge economy to educate and inspire digital creators across the globe. 25K+ registrants 110 countries 2x Participants who claimed core offer compared to 2021 Thinkific Q4 Q3 2021 13
Slide 14: Creators are Finding Success
Creators are Finding Success Thinkific allows Creators to monetize their audience, and provides the operating system to build and scale their business. “Thinkific made it really easy for me to grow a 7-figure business in 12 months. And what I love most of all is the impact I’m able to have with my cont
Slide 15: Product Updates
Product Updates 2021 Thinkific Q4 2021 15
Slide 16: Thinkific Payments helping creators scale and manage their businesses
Q4 2021 Thinkific Payments helping creators scale and manage their businesses $6.4M of payments processed using Thinkific Payments in Q4 2021 representing 6% of Q4 Gross Merchandise Value Launched in November 2021 Thinkific Q4 2021 16
Slide 17: The Thinkific App Store
The Thinkific App Store is empowering Creators to connect and customize their learning products Launched in May 2021 Thinkific Q4 2021 17
Slide 18: Results
Results Q4 2021 Thinkific Q4 2021 18
Slide 19: Strong growth across metrics
Key Metrics Strong growth across metrics Paying Customers ARPU Revenue GMV(1) +73% 2019-2021 CAGR +10% 2019-2021 CAGR +97% 2019-2021 CAGR +93% 2019-2021 CAGR $38.1M $114 32.3K $105 $415M $94 24.6K $276M $21.1M 10.9K $9.8M $112M (1) GMV does Thinkific Q4not include transactions for course sales, membe
Slide 20: Paying Customers
Financial Performance Paying Customers (1) Large & growing market Innovative & attractive platform +73% 2019-2021 CAGR (1) “Paying Customers” is the count of unique Thinkific subscribers on paid plans as of period end, excluding all trial and free customers, and including both monthly and annual 20 T
Slide 21: ARPU (monthly)
Financial Performance ARPU (monthly) (1) Customer upgrades to higher paid plans New Thinkific Plus customers Launch of Thinkific Payments in November 2021 +10% 2019-2021 CAGR (1) “Average Revenue Per User” or “ARPU” is the average monthly Revenue per Paying Customer in the quarter. ARPU is calculated
Slide 22: ARR
Financial Performance ARR New Creators on platform Upgrades to higher paid plans +89% 2019-2021 CAGR (1) “Annual Recurring Revenue” or “ARR” “Annual Recurring Revenue” or “ARR” is the annual value of all current Paying Customer subscriptions at the end of the period, with the number of 22 Thinkific Q
Slide 23: GMV
Financial Performance GMV (1) Growing number of Creators Increasing customer success +93% 2019-2021 CAGR (1) “Gross Merchandise Volume” or “GMV” is the total dollar value of all transactions of course sales, membership subscriptions, or other products or services by Course Creators, 23 Thinkific Q4 2
Slide 24: Revenue
Financial Performance Revenue Low touch, scalable, product led growth +97% 2019-2021 CAGR Thinkific Q4 2021 All metrics in $USD 24
Slide 25: Gross Margin
Financial Performance Gross Margin Investing in Best-in-Class support Thinkific Q4 2021 All metrics in $USD 25
Slide 26: Operating Expenses
Financial Performance Operating Expenses Building for the future R&D and S&M focus Thinkific Q4 2021 All metrics in $USD 26
Slide 27: Adjusted EBITDA
Financial Performance Adjusted EBITDA (1) Upfront investment in growth (1) “Adjusted EBITDA” is a Non-GAAP measure defined as net income (loss) excluding taxes, interest, depreciation and amortization (or EBITDA), as adjusted for stock-based 27 Thinkific Q4 2021 compensation, foreign exchange gain (lo
Slide 28: A strong foundation to build on
A strong foundation to build on Delivered strong results in 2021… Delivered growth Continued product Scaling to support across all KPIs innovation future growth 2019-2021 CAGRs Paying Customers +73% Thinkific Payments Enhanced Executive Team ARR +89% Thinkific App Store Significant investment across AR
Slide 29: Positioned for further success
Positioned for further success Our market is large and growing, and we are positioned for long-term success Product innovation driven growth Evolving go-to-market strategy The right mindset, team, and culture Thinkific Q4 2021 29
Slide 30: Q1 Guidance Discussion
Q1 Guidance Discussion Thinkific is at the centre of the knowledge economy, and gives businesses everything they need to build, market, and sell online courses and other learning products, and to run their business seamlessly under their own brand, on their own site. In 2021, Thinkific achieved growth
Slide 31: KPI Definitions
Appendix KPI Definitions “Annual Recurring Revenue” or “ARR” is twelve times the monthly value of all current Paying Customer subscriptions at the end of the period, with the number of Paying Customers multiplied by the average monthly subscription plan fee in effect on the last day of that period. “
Slide 32: Definitions (cont'd)
Appendix Definitions (cont’d) “Adjusted EBITDA” is a Non-GAAP measure defined as net income (loss) excluding taxes, interest, depreciation and amortization (or EBITDA), as adjusted for stock-based compensation, foreign exchange gain (loss), net finance expense, and transaction-related expenses. The fol
Slide 33: Contact
Contact Media: Josh Stanbury press@thinkific.com IR: Janet Craig IR@thinkific.com Thinkific Q4 2021 33