Team Internet Group Plc · LSE:TIG
Team Internet — H1 2024 Earnings Presentation
29 slides from Team Internet's earnings presentation, Aug 12, 2024
Slide 1: Investor Presentation August 2024
Investor Presentation August 2024
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Team Internet Group plc (“the Company”) in connection with its H1 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 Audience Matching (Online Marketing segment) and Digital Identity Solutions (Online Presence segment) Online Marketing Recurring Online Presence Recurring revenue model revenue model Matches a
Slide 5: TIG operates Digital Audience Matching platforms in the leading monetisation categories
TIG operates Digital Audience Matching platforms in the leading monetisation categories Traffic Acquisition TIG acquires traffic by placing ads on social media, search engines, advertising networks and content websites PPC PAY PER CLICK + Intent Traffic Monetisation Models Intent - 1 2 3 PPA PPC PPM
Slide 6: 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 A
Slide 7: Online Marketing segment is capitalising on irreversible mega trends
Online Marketing segment is capitalising on irreversible mega trends Ascendance of social media Advent of data privacy Audience Matching • Social media platforms (Facebook, Instagram, • Consumer data protection regulations drive • Successful conversion management can lead to TikTok) transformed cont
Slide 8: Online Presence segment aims to optimise the domain name industry for greater efficiency
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: Team Internet creates a vibrant, symbiotic ecosystem
Team Internet creates a vibrant, symbiotic ecosystem, connecting a vast supply with substantial demand H1’24 PF1 value flows, Sankey presentation Social Media: 52% Search: 57% (Tonic., ParkingCrew) Cost of Sale OM: $621m Revenue OM: $768m Native: 18% Total Revenue: $954m Search Ads: 6% Affiliate Adv
Slide 10: Financial highlights
01 Business profile 02 Financial highlights 03 Strategy and outlook 10
Slide 11: Persistent focus on bottom line profitability leads to increase in EBITDA and EPS
Persistent focus on bottom line profitability leads to increase in EBITDA and EPS Gross Revenue Net Revenue Adjusted EBITDA1 Operating Profit2 $409.7m +3% $97.7m +7% $46.6m +4% $22.9m +13% H1 2023: $396.4m H1 2023: $91.2m H1 2023: $44.6m H1 2023: $20.2m Adjusted EPS2 Net Debt Profit After Tax2 P/E3
Slide 12: 9% Group organic revenue growth for LTM H1 2024
9% Group organic revenue growth for LTM H1 2024 Strong value propositions make for strong growth Online Marketing Online Presence Operational KPIs 9% Online Marketing KPIs 2 organic growth LTM H1’24 LTM H1’23 Δ $768m $705m Visitor Sessions (bn): 6.1 5.3 16% 103.6 84.0 RPM ($): 88 100 -12% 8% organic
Slide 13: Income Statement
Income Statement H1 H1 % ($, m) 2024 2023 Change Revenue 409.7 396.4 3% Cost of Sales (312.0) (305.2) • Improved gross margin provide the Net Revenue (Gross Profit) 97.7 91.2 7% basis of continued growth in Gross Margin % 24% 23% bottom line profitability Operating Expenses (73.5) (68.7) 7% • Financ
Slide 14: Balance Sheet
Balance Sheet H1 H13 ($, m) 2024 2023 % Change Non-Current Assets 360.3 350.3 3% Current Assets 203.6 178.0 14% • Net debt increased by USD 35.8m Total Assets 563.9 528.3 7% since FY 2023 following: Non-Current Liabilities 232.4 188.2 23% ▪ Acquisition of Shinez Current Liabilities 189.6 178.7 6% To
Slide 15: Robust cash conversion
Robust cash Cash generation from operations = 87% of Adjusted EBITDA conversion We expect this to continue to normalise nearer to 100% H1 H1 Cash conversion Adjusted Cashflow Bridge: 2024 2023 87% 94% (%) Cashflow from operations 36.5 35.3 Exceptional costs 2.2 3.2 46.6 40.6 44.6 41.9 Settlement of
Slide 16: Strategy and outlook
01 Business profile 02 Financial highlights 03 Strategy and outlook 16
Slide 17: 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 18: 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 18
Slide 19: AI is seamlessly 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 20: 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 21: Thank you
Thank you tj team internet.
Slide 22: 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 23: Appendix
Thank you Appendix 23
Slide 24: 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 25: 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 26: 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 27: Online consumers value the 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 28: 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 29: Cashflow waterfall model aligns Team Internet's 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