Deezer Sa · EURONEXT:DEEZR

Deezer Sa — FY2024 Earnings Presentation

35 slides from Deezer Sa's earnings presentation, Mar 19, 2025

  1. Slide 1: Full-Year 2024 Results

    Full-Year 2024 Results 19 March 2025

  2. Slide 2: Disclaimer

    Disclaimer References herein to this presentation (the “Presentation”) shall mean and include this document, any oral presentation accompanying this document provided by Deezer SA (the “Company”), any question and answer session following that oral presentation and any further information that may b

  3. Slide 3: Speakers

    Speakers Alexis Carl Lanternier de Place CEO CFO 3

  4. Slide 4: Strong FY24 results, achieving positive FCF for the first time

    Strong FY24 results, achieving positive FCF for the first time and confirming positive adj. EBITDA in 2025 Double-digit revenue growth +12% growth reaching €542m, exceeding +10% growth target Adj. Gross Profit increase to €134m (24.7% margin, up 1.9pts) Strong profitability improvement FY24 Adj. EBI

  5. Slide 5: Strong operational expansion since listing, leading to profitability

    Strong operational expansion since listing, leading to profitability In €m FY21A FY22A FY23A FY24A 10.6% CAGR 542 485 Key levers: Revenue 451 (% CAGR) 400 ● Subscriber growth in France and Partnerships ● Price increase 16.9% 14.3% ● Margin expansion Adj. Gross profit 9.2% 92 after marketing 2.7% 69

  6. Slide 6: 2024 Business Highlights

    2024 Business Highlights

  7. Slide 7: Strengthening fans’ engagement through product innovation

    Strengthening fans’ engagement through product innovation Exclusive experiences in & Positive traction from brand Product enhancement outside the app enhancing repositioning driving user engagement differentiation +27% Purple club +7pts in engagement vs LY Exclusive fan-artist experiences with 300k

  8. Slide 8: Driving a sustainable music ecosystem for artists

    Driving a sustainable music ecosystem for artists Artist Centric Payment System AI detection Expanded ACPS to ~85% of Deezer’s recording Cutting-edge technology identifying ~10k royalty pool AI-generated tracks daily (10% of delivery) First update to publishing rights remuneration model Excluding 10

  9. Slide 9: New and extended partnerships across key markets

    New and extended partnerships across key markets Strengthened long term partnerships New partners across different verticals Renewed several major legacy partnerships, Signed new partnerships across different confirming ability to foster long term verticals, highlighting value added potential relati

  10. Slide 10: 2024 Financial Results

    2024 Financial Results

  11. Slide 11: Subscribers impacted by conversion mechanism of MeLi promo cohorts

    Subscribers impacted by conversion mechanism of MeLi promo cohorts. Direct ARPU up +5.1% YoY Total subscribers In m Var.2 % Continued growth of the Direct subscriber base in France 10.5 (+4.3%) offset by : 10.0 9.7 (3.1)% ● Decline in direct subscribers 4.8 in the Rest of the World 4.8 4.4 (7.1)% (-

  12. Slide 12: Annual double-digit revenue growth, above guidance

    Annual double-digit revenue growth, above guidance Total Revenue by segment Total Revenue by geography In €m In €m +11.8% +11.8% 542 542 485 29 485 18 +62.9% 168 229 136 +24.0% 197 +16.5% Other RoW Partnerships France Direct 331 +4.0% 344 +8.6% 313 288 2023 2024 2023 2024 ● Direct: Subscriber growth

  13. Slide 13: Improvement in adjusted gross profit and margin across all segments

    Improvement in adjusted gross profit and margin across all segments Adj. Gross profit In €m +1.9pt % of rev. 134 24.7% Adjusted gross profit increase 8 driven by: +21.2% 22.7% 110 ● Revenue growth 2 36 21.5% ● Impact of price increases +28.7% 20.8% 28 on our margins Other Partnerships ● Strict contr

  14. Slide 14: Strict control of our fixed costs despite continued investment in our brand

    Strict control of our fixed costs despite continued investment in our brand Marketing and trials Staff and G&A €m €m +2.4% % of rev. % of rev. 20.2% 98 96 17.7% 8.5% 41 42 7.8% 8 3.4% 5.6% 11 RoW France 34 10.9% 10.5% 30 2023 2024 2023 2024 Continued investment in Brand and Customer Acquisition in S

  15. Slide 15: Significant improvement in Adj. EBITDA

    Significant improvement in Adj. EBITDA driven by higher level of activity and strict cost control In €m Adjusted Gross Profit +€23m Adj. EBITDA 2023 Revenue GM % Marketing & Trials Staff & G&A Adj. EBITDA 2024 2 (4) (1) 8 15 15 (29) 15

  16. Slide 16: Robust cash position of €62m at end-December

    Robust cash position of €62m at end-December In €m (2) (4) (7) 24 64 (8) 62 (4) +€7m Free Cash Flow Lease & Financial Cash Dec-23 Adj. EBITDA Change in WC Capex 1-offs1 Financing Cash Dec-24 Interests Net cash amounted to €47m as of 31-Dec-24, compared to €43m as of 31-Dec-23 Note: 1. One-off cash i

  17. Slide 17: Outlook

    Outlook

  18. Slide 18: Confirmation of financial targets for FY25

    Confirmation of financial targets for FY25 Revenue flat to Positive Free Cash slightly Positive Flow1 for second declining year adjusted EBITDA year in a row over year Following a year of significant growth, FY25 will be a year of consolidation to prepare a roadmap of profitable growth for the years

  19. Slide 19: Industry is shifting to Streaming 2.0

    Industry is shifting to Streaming 2.0, creating opportunities for music platforms Music streaming market size1 2016A 2024E 2030E $8bn ~$40bn $60bn+ Streaming 1.0 Streaming 2.0 World's entire Playlists and Personalization & Community and Product music library algorithm-driven customization artist-fan

  20. Slide 20: Gen-Z is fueling streaming 2.0

    Gen-Z is fueling streaming 2.0 Music is their primary Seeking personalization Shaping the market passion and connections ~40% of music streaming ~70% consider music their #1 +75% want enhanced subscribers are under 341 passion2 personalization in their streaming experience3 They allocate ~30% of the

  21. Slide 21: Superfans offer a largely untapped opportunity

    Superfans offer a largely untapped opportunity Streaming has equalized fan ~$3.5bn2 incremental fandom spending on recorded music1 market value by 2030 ~3x 2014 2022 One-size-fits-all model leaves significant untapped revenue ~$6bn3 Avg. user Superfan Superfans crave deeper artist connection & ways

  22. Slide 22: Deezer will leverage its strengths to capitalize from shifting market dynamics

    Deezer will leverage its strengths to capitalize from shifting market dynamics Global DSP Champion new Ability to innovate recognized for high industry concepts quickly quality product and Partnership DNA, Objective: meet the aspirations of the new generation of music lovers by providing a more soci

  23. Slide 23: Creating new ways to experience music and deliver value

    Creating new ways to experience music and deliver value for the entire ecosystem Clear execution roadmap for 2025 Expand Build Explore Fans Core B2C markets Personalization, Direct artist-fan algorithm control, and connections social experiences Artists Existing Partnerships White label business mod

  24. Slide 24: Thank you

    Thank you

  25. Slide 25: Q & A

    Q & A

  26. Slide 26: Appendix

    Appendix

  27. Slide 27: Direct: Subscriber growth in France and ARPU increase

    Direct: Subscriber growth in France and ARPU increase Direct subscribers Direct ARPU In m In € +5.1% +0.6% 5.6 5.5 5.3 5.3 5.3 4.9 2023 2023 LFL1 1 2024 2023 2023 LFL1 2024 ● Continued expansion of the Group’s subscriber base in France LFL ● Price increase drove ARPU growth of +5.1% LFL to reach €5.

  28. Slide 28: Partnerships: Deceleration in subscribers with no impact on ARPU

    Partnerships: Deceleration in subscribers with no impact on ARPU Partnerships subscribers Partnerships ARPU In m In € (7.1)% +1.5% 4.8 4.8 4.4 2.9 2.9 2.8 2023 2023 LFL1 1 2024 2023 2023 LFL1 2024 ● (0.3)m partnerships subscribers (-7.1% YoY), reflecting the conversions of ● ARPU increase of +1.5% m

  29. Slide 29: Key financial indicators

    Key financial indicators Change at In € million 2024 2023 Change YoY constant FX Total revenue 541.7 484.7 +11.8% +12.7% By segment Direct 344.4 331.1 +4.0% +4.3% Partnerships 168.3 135.7 +24.0% +26.6% Other 29.0 17.8 +62.9% +63.2% By geography France 312.8 288.1 +8.6% +8.6% Rest of World 228.9 196.

  30. Slide 30: Reconciliation of non-IFRS financial indicators and FCF

    Reconciliation of non-IFRS financial indicators and FCF In € million 2024 2023 Gross profit 123.6 91.4 License agreements non-recurring expenses 10.1 18.8 Adjusted gross profit 133.7 110.3 In € million 2024 2023 Operating loss (27.5) (64.4) Gross profit adjustments 10.1 18.8 Depreciation and amortiz

  31. Slide 31: Consolidated statement of income

    Consolidated statement of income Twelve months ended 31 December (in thousands of euros) 2024 2023 Revenue 541,715 484,656 Cost of revenue (418,146) (393,223) Gross Profit 123,569 91,433 Product and development (30,548) (34,771) Sales and marketing (61,272) (61,727) General and administrative (59,22

  32. Slide 32: Consolidated statement of financial position (1/2)

    Consolidated statement of financial position (1/2) (in thousands of euros) 31 December 2024 31 December 2023 Assets Goodwill 7,487 7,487 Intangible assets 444 260 Property and equipment 3,947 4,915 Right-of-use assets 15,039 16,736 Non-current financial assets 5,473 5,337 Other non-current assets 66

  33. Slide 33: Consolidated statement of financial position (2/2)

    Consolidated statement of financial position (2/2) (in thousands of euros) 31 December 2024 31 December 2023 Equity and liabilities Share capital 1,236 1,216 Share premium 483,955 483,970 Treasury shares (354) (363) Accumulated deficit (700,410) (654,079) Net loss (25,889) (57,666) Equity attributab

  34. Slide 34: Consolidated statement of cash flows (1/2)

    Consolidated statement of cash flows (1/2) Twelve months ended 31 December (in thousands of euros) 2024 2023 Operating activities Net loss (26,030) (59,586) Adjustments for: - Depreciation and amortization (excluding those related to current 7,429 16,319 assets) - Provisions 2,440 (1,014) - Share-ba

  35. Slide 35: Consolidated statement of cash flows (2/2)

    Consolidated statement of cash flows (2/2) Twelve months ended 31 December (in thousands of euros) 2024 2023 Financing activities Increase in share capital and share premium (net of costs) 4 - Repayments on short-term debt (7,086) (5,164) Repurchases of ordinary shares 10 (44) Proceeds from issuance

Deezer — FY2024 Earnings Presentation on 6ix