Team Internet Group Plc · LSE:TIG
Team Internet — Q1 2024 Earnings Presentation
27 slides from Team Internet's earnings presentation, May 13, 2024
Slide 1: Investor Presentation May 2024
Investor Presentation May 2024
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Team Internet Group plc (“the Company”) in connection with its Q1 2024 results (the “Investor Update”). The information set out in this presentation is not intended to form the basis of any contract. By attending (whether in person, by telephone or w
Slide 3: Business profile, Financial highlights, Strategy and outlook
01 Business profile 02 Financial highlights 03 Strategy and outlook 3
Slide 4: What we do
What we do A leading global internet solutions company, operating in two highly attractive markets: digital advertising (Online Marketing segment) and domain name management solutions (Online Presence segment) Recurring Online Presence Recurring revenue model revenue model Rolling open- A critical c
Slide 5: OM2: Omni-media, Omni-monetisation vision
OM2, Omni-media, Omni-monetisation vision: replicating the Online Presence success story in a vastly larger vertical Social Media Search Engines OM2: Omni-Media, Omni-Monetisation Content Discovery Networks E-Commerce Marketers Search Engines Affiliate Marketers Domain Names Demand Side Platforms Ap
Slide 6: TIG's OM segment operates three Digital Traffic Transformation processes
Today, TIG’s OM segment operates three Digital Traffic Transformation processes and will expand these over time Traffic Acquisition TIG acquires traffic by placing ads on social media, search engines, advertising networks and content websites PPC PAY PER CLICK Traffic Monetisation Models 1 2 3 PPC P
Slide 7: Online Marketing segment is carried by irreversible mega trends
Our Online Marketing segment is being carried by irreversible mega trends Ascendance of social media Advent of data privacy Risk transformation • Social media platforms (Facebook, Instagram, • Consumer data protection regulations drive • Successful conversion management can lead to TikTok) transform
Slide 8: Online Presence segment aims to optimise the domain name industry
Online Presence segment aims to optimise the domain name industry for greater efficiency Optimising for efficiency Move towards “exotic” Committed to excellence domain names • The Online Presence segment aims to • Limited availability and rising prices of .com • Team Internet prioritises customer se
Slide 9: Business profile, Financial highlights, Strategy and outlook
01 Business profile 02 Financial highlights 03 Strategy and outlook 9
Slide 10: Laser focus on bottom line profitability leads to increase in operating profit and EPS
Laser focus on bottom line profitability leads to significant increase in operating profit and EPS Gross Revenue Net Revenue Adjusted EBITDA1 Operating Profit $195.9m +1% $47.6m +4% $22.2m +4% $11.1m +44% Q1 2023: $194.9m Q1 2023: $45.8m Q1 2023: $21.3m Q1 2023: $7.7m Adjusted EPS Net Debt Dividend
Slide 11: Income Statement
Income Statement ($, m) Q1 2024 Q1 2023 % Change Revenue 195.9 194.9 1% Cost of Sales (148.3) (149.1) • Improved gross margin and Adj. Net Revenue (Gross Profit) 47.6 45.8 4% EBITDA margin provide the basis of Gross Margin % 24% 23% continued growth in bottom line Operating Expenses (35.8) (37.2) (4
Slide 12: Balance Sheet
Balance Sheet Q1 Q1 ($, m) 2024 2023 % Change Non-Current Assets 335.1 360.5 (7%) Current Assets 173.3 200.9 (14%) • Net debt increased by USD 6.5m Total Assets 508.4 561.4 (9%) since FY 2023 following the return of a further USD 11.5m cash to Non-Current Liabilities 188.9 197.8 (4%) shareholders vi
Slide 13: Robust cash conversion
Cash generation from operations Robust cash conversion = 80% of Adjusted EBITDA Impacted by cash receipts from a significant business partner being collected in April instead of March due to Easter holiday We expect this to continue to normalise nearer Cash conversion to 100% 80% 94% Q1 Q1 (%) Adjus
Slide 14: Business profile, Financial highlights, Strategy and outlook
01 Business profile 02 Financial highlights 03 Strategy and outlook 14
Slide 15: Strategic priority: creating a virtuous circle
Strategic priority: creating a virtuous circle Organic growth Operating leverage • New customer wins • Achieve cost savings in future periods by • Growing existing customers, and cross- continuing our integrations selling our services • We expect operational gearing to continue • Launching new produ
Slide 16: What does the future journey for Team Internet look like?
What does the future journey for Team Internet look like? More diversified revenue streams and supply sources 01 More vertically integrated 02 Living up to global leadership ambitions 03 Remaining firmly rooted in our core values and beliefs 04 16
Slide 17: AI is woven into the fabric of our daily operations
At Team Internet, AI is seamlessly woven into the fabric of our daily operations Raising Raising Raising the Floor the Ceiling Awareness • Democratise AI knowledge within the organisation • Advanced training for engineers and data • AI Academy to nurture critical and creative scientists thinking in
Slide 18: Team Internet Outlook
Team Internet Outlook ○ The Directors are pleased to confirm that the Group continues to be confident in its ability to meet market expectations1 ○ With high cash reserves, strong operating cash generation, and committed credit facilities, the Company is fully funded to execute its strategy to simul
Slide 19: Thank you
Thank you tj team internet.
Slide 20: Glossary of Terms
Glossary of Terms Adtech Domain Years An umbrella term for advertising technology Number of domain years sold (number of domains x number of years). Used instead of number of domains as occasionally customers register or renew domain names Artificial Intelligence or ‘AI’ for multiple years The theor
Slide 21: Appendix
Thank you Appendix 21
Slide 22: In Online Marketing, Team Internet helps online consumers make informed choices
In Online Marketing, Team Internet helps online consumers make informed choices – an evergreen purpose Team Internet does so by creating consumer journeys that convert general interest media users into high 01 conviction online consumers. Team Internet engages by offering contact points on social me
Slide 23: Consumers on social media are run through brief consumer guides
Consumers on social media are run through brief consumer guides before being referred to a recommended merchant Social media user experience: Team Internet places ads An online consumer is The online consumer is The online consumer is The online consumer for broad categories on then forwarded an the
Slide 24: Search engine users are directed to review websites before buying
Search engine users are directed to review websites before buying the product of their choice at an ecommerce partner Search engine user experience: Team Internet places ads for product The online consumer is then presented The online consumer then clicks out to categories on search engines. Due to
Slide 25: Online consumers value noise reduction and privacy
Online consumers value the noise reduction and privacy – value is captured through commercial alliances Team Internet and its partners place a broad array of contact points Value Creation in the form of ads Value Capture Merchant pays Consumer engages Online consumers: Team Internet, with a Team Mer
Slide 26: In Online Presence, Team Internet is a leading distribution channel for domains
In Online Presence, Team Internet is a leading distribution channel for domains and one-stop shop for their users Reseller Retail Enterprise Access 2.5M SMBs 250k in c.200 countries Market features via 20k channel partners • Subscription revenues • Huge customer stickiness - only 3% of CUSTOMERS cus
Slide 27: Cashflow waterfall model aligns strategic priorities
Cashflow waterfall model aligns Team Internet’s strategic priorities Waterfall model The Directors are confident in the Group's strategic investments in innovation, integration, ○ To ensure compatibility among Team Internet’s strategic priorities, the Board intends to allocate the Group’s free cash