Team Internet Group Plc · LSE:TIG
Team Internet — Q3 2023 Earnings Presentation
34 slides from Team Internet's earnings presentation, Nov 13, 2023
Slide 1: Investor Presentation
Investor Presentation 13th November 2023
Slide 2: Disclaimer
DISCLAIMER NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, JAPAN, OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO. The information contained in this confidential document
Slide 3: Highlights
01 Highlights 02 Financial results 03 Business profile 04 Strategy and Outlook 3
Slide 4: YTD September 2023 Financial Highlights
YTD September 2023 Financial Highlights Record Nine Month Results Gross Revenue Net Revenue Adjusted EBITDA1 P/E3 $611.7m +16% $138.5m +8% $68.8m +11% 7.2x YTD September 2022: $526.7m YTD September 2022: $128.3m YTD September 2022: $62.0m Adjusted EPS Net Debt Adjusted Cashflow2 FCF Yield4 ¢17.56 +2
Slide 5: 19% Group organic revenue growth for LTM Q3 2023
19% Group organic revenue growth for LTM Q3 2023 Strong value propositions make for strong growth Online Marketing Online Presence Operational KPIs Online Marketing KPIs 2 20% $640m Q3’22 LTM Q3’23 LTM Δ organic growth Visitor Sessions (bn): 4.1 5.6 36% $535m 3.0 RPM ($): 104 97 -7% 28.3 17% organic
Slide 6: Closing in on global market leadership in each of our segments
Closing in on global market leadership in each of our segments Online Marketing 97% Team Internet OM as % of 42% 46% 71% 827 System1 Inc 1 688 588 476 314 304 315 198 2020 2021 2022 H1 2023 2 Revenue in ($,m) TIGCNIC OM OM Revenue Revenue SYS1 Inc Revenue Online Presence Team Internet OP as % of 55%
Slide 7: Latest Achievements
Latest Achievements Ongoing focus on projects supporting organic growth Launch of Adsolutely Integrating ad feeds into digital space AI Powered Domain Search through advanced keyword pairing. All Testing complete and soft launched within contextual placements are non-disruptive IBS with positive imp
Slide 8: Share Buyback Programme
Share Buyback Programme Capital allocation policy geared towards greater shareholder returns Funds committed Share buyback limit Buyback period A total of 28,866,000 Aggregate consideration reaches the £34.0m shares buyback limit Funds utilised to date1 Funds available1 Shares in treasury1 £20.7m £1
Slide 9: Financial results
01 Highlights 02 Financial results 03 Business profile 04 Strategy and Outlook 9
Slide 10: Income Statement
Income Statement Sep Sep % ($, m) 2023 2022 Change Revenue 611.7 526.7 16% • Gross margins remaining stable in Cost of Sales (473.2) (398.4) each business - product mix shifting Net Revenue (Gross Profit) 138.5 128.3 8% with massive growth of Media Gross Margin % 23% 24% Buying Operating Expenses (1
Slide 11: Balance sheet
Balance sheet Sep Sep ($, m) 2023 2022 % Change Non-Current Assets 345.7 329.8 5% Current Assets 184.0 178.0 3% Net debt increased by USD 23.3m since Total Assets 529.7 507.8 4% September 30th due to: Non-Current Liabilities 183.0 40.7 350% Current Liabilities 199.0 309.6 -36% • The Company returnin
Slide 12: Robust cash conversion
Cash generation from operations Robust cash conversion = 95% of Adjusted EBITDA We expect this to continue to normalise nearer to 100% over the remainder of the year Cash Conversion 110% 95% Sep Sep (%) Adjusted Cashflow Bridge: 2023 2022 Cashflow from operations 54.4 58.4 Exceptional costs 5.1 5.4
Slide 13: Business profile
01 Highlights 02 Financial results 03 Business profile 04 Strategy and Outlook 13
Slide 14: Team Internet holds leading positions in select niche markets
Team Internet holds leading positions in select niche markets, driving great results Leading Google AFD based media buying platform Globally leading domain parking platform #1 product review portal in German-speaking Europe #2 global domain name distribution network Leading Cloud based analytics Saa
Slide 15: Team Internet creates a vibrant, symbiotic ecosystem
Team Internet creates a vibrant, symbiotic ecosystem, connecting a vast supply with substantial demand PF LTM H1 ‘23 value flows, Sankey presentation Social Media: 35% Native: 25% Search: 67% Cost of Sale OM: $489m Revenue OM: $623m (Tonic, ParkingCrew) Search Ads: 7% Total Revenue: $794m Domains: 7
Slide 16: Tonic: qualifies and monetises referral traffic globally
Qualifies and monetises referral traffic globally 315+ million 258,000 Serving ads in unique visitors a campaigns 160+ countries Launched in 2016, TONIC. considers itself as one of the month leading monetisation platforms for a wide range of traffic Story supply partners around the globe Supply Dema
Slide 17: Example implementations
• Example implementations Native Flow Search Flow TikTok Flow 17
Slide 18: ParkingCrew: turning your domains into profit
Turning your domains into profit 354 million 32+ million active 305 million visitors domain domains on monthly registrations ParkingCrew Launched in 2011 in Munich, ParkingCrew monetises type-in across all TLDs traffic for thousands of domain investors globally Story Supply Demand Empower domain inv
Slide 19: Example implementations
Example implementations Mobile Flow Desktop Flow 19
Slide 20: Key Features
Adsolutely Related Search on Product Differences and Traffic Flow Content (pagehub) AI based keyword selection optimized for highest value Google selects and displays search terms related to content Key Features Redirected to related terms and ad page Search ads are displayed on the page itself 3-Cl
Slide 21: Strategy and Outlook
01 Highlights 02 Financial results 03 Business profile 04 Strategy and Outlook 21
Slide 22: 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 23: How will Team Internet look in the next 10 years?
How will Team Internet look in the next 10 years? More diversified 01 More global 02 More vertically integrated 03 Firmly rooted in the values we defined 04 23
Slide 24: Social Commerce Vision: $80bn TAM according to McKinsey
Social Commerce Vision: $80bn TAM according to McKinsey1 1 Current discrete business models: 2 Incumbents’ vertical integration efforts: Marketplaces, Shop Inspire, Spark [Stream, 1A Future aspirations: Collections, Interesting Finds] 24 Note: (1) “Social commerce: The future of how consumers intera
Slide 25: Acquisition financials and rationale
Drive high intent customers Drive high intent customers to leading online and household to leading online and household brands and local merchants. brands and local merchants. Comes with: • 10+ years of online advertising Financials: experience • Type-in traffic monetisation expertise Consideration:
Slide 26: Team Internet recap
Team Internet recap Helping online consumers make informed choices • A leading global internet solutions company, operating in two highly attractive markets: high-growth digital advertising (Online Marketing online consumer segment) and domain name management solutions (Online Presence segment) 5.6
Slide 27: Thank you
Thank you tj team internet.
Slide 28: 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 29: Appendix
Thank you Appendix 29
Slide 30: 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 31: 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 32: 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 33: 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 34: 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 CUSTOMER cust