Team Internet Group Plc · LSE:TIG
Team Internet — Q3 2024 Earnings Presentation
29 slides from Team Internet's earnings presentation, Nov 7, 2024
Slide 1: Investor Presentation November 2024
Investor Presentation November 2024
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Team Internet Group plc (“the Company”) in connection with its Q3 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: Search: Transforming a no/low content search customer acquisition business
OM Search: Transforming a no/low content search customer acquisition business into a content and video publishing powerhouse THE PROBLEM WE SOLVE THE OPPORTUNITY THE CHALLENGES OUR LICENSE TO WIN BRIDGING WEB 1.0 ENHANCING BRAND AND USER USER ENGAGEMENT UNMATCHED SCALE AND WEB 2.0 EXPERIENCE Consume
Slide 6: Comparison: Transforming a national champion into global consumer guide authority
OM Comparison: Transforming a national champion into global consumer guide authority THE PROBLEM WE SOLVE THE OPPORTUNITY THE CHALLENGES OUR LICENSE TO WIN REMOVE NOISE AND BIAS EXPLOIT OVERCOME GROWTH BARRIERS SEA-FIRST MODEL ENABLES GOING ON INTERNET GENERATIVE AI FULL AI Online consumers are expo
Slide 7: Online: Transforming domain name business into digital identity business
OP Online: Transforming domain name business into digital identity business THE PROBLEM WE SOLVE THE OPPORTUNITY THE CHALLENGES OUR LICENSE TO WIN MAKING ALL DOMAINS ACCESSIBLE BUILDING ON THE IDENTITY FRAGMENTED INTEGRATING TO EVERYONE CHARACTER OF DOMAIN NAMES ECOSYSTEMS THROUGH SCALE Domain names
Slide 8: Team Internet creates a vibrant, symbiotic ecosystem
OM OP 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% Affilia
Slide 9: Business profile, Financial highlights, Strategy and outlook
01 Business profile 02 Financial highlights 03 Strategy and outlook 9
Slide 10: Persistent focus on delivery of double-digit million bottom line profitability
Persistent focus on delivery of double-digit million bottom line profitability leads to an increased EPS Gross Revenue Net Revenue Adjusted EBITDA1 Operating Profit2 $615.1m +1% $143.6m +4% $70.1m +2% $31.2m -1% YTD Sep 2023: $611.7m YTD Sep 2023: $138.5m YTD Sep 2023: $68.8m YTD Sep 2023: $31.4m Ad
Slide 11: Income Statement
Income Statement Sep Sep % ($, m) 2024 2023 Change Revenue 615.1 611.7 1% Cost of Sales (471.5) (473.2) • Increasing gross margin provides Net Revenue (Gross Profit) 143.6 138.5 4% the basis for sustaining bottom-line Gross Margin % 23% 23% profitability Operating Expenses (111.6) (103.6) 8% • Net F
Slide 12: Balance Sheet
Balance Sheet Sep Sep3 ($, m) 2024 2023 % Change Non-Current Assets 357.9 342.1 5% Current Assets 193.2 184.0 5% • Net debt increased by USD 25.6m Total Assets 551.1 526.1 5% since FY 2023 (but decreased by USD 10.2m since H1 2024) Non-Current Liabilities 228.2 201.9 13% following: Current Liabiliti
Slide 13: Robust cash conversion = 91% of Adjusted EBITDA
Robust cash conversion Cash generation from operations = 91% of Adjusted EBITDA We expect this to continue to normalise nearer to 100% Sep Sep2 Cash conversion Adjusted Cashflow Bridge: 2024 2023 91% 95% (%) Cashflow from operations 56.5 54.5 Exceptional costs 5.4 5.1 70.1 64.1 68.8 65.6 Settlement
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 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 18: Team Internet Outlook
Team Internet Outlook ○ The Directors are pleased to report that Team Internet Group’s core businesses remain strong and resilient. While our recent acquisition of Shinez has yet to contribute to EBITDA, we are actively adjusting its operating model and cost base to improve performance. The Group’s
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: Thank you / Appendix
Thank you Appendix 21
Slide 22: TIG operates Digital Audience Matching platforms in the leading monetisation categories
OM 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
Slide 23: 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 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