+ All Categories
Home > Documents > Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and...

Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and...

Date post: 16-Sep-2020
Category:
Upload: others
View: 1 times
Download: 0 times
Share this document with a friend
20
-1- Creating a Global Champion J.P. Morgan European Tech Stars 2020 Conference September 2020
Transcript
Page 1: Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and meet new friends across the globe or down the block Lovoo Leading European and most

- 1 -

Creating a Global Champion

J.P. Morgan European Tech Stars 2020 Conference

September 2020

Page 2: Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and meet new friends across the globe or down the block Lovoo Leading European and most

- 2 -

Geoff CookCEO The Meet Group /

General Manager Video

Marc SchachtelChief Operative Officer

(COO)

Deep industry know-how and vast experience in direct-to-customer, media

and digital businesses

Tim SchiffersChief Executive Officer

(CEO)

Henning RönnebergChief Financial Officer

(CFO)

As Group CEO Tim Schiffers is

responsible for ParshipMeet

Group’s overall strategic direction.

He oversees the brand, media and

marketing activities to ensure

growth across the portfolio of

brands.

Tim joined Parship as CEO in 2014

after having led several strategy and

optimization projects within the

Holtzbrinck Publishing Group. Prior

positions include CEO of adviqo AG,

Managing Director of Wunderman

and several national and

international leadership roles at

Bertelsmann.

Henning Rönneberg is responsible

for the central functions of the

group. In his role as Group CFO he

oversees finance (treasury,

controlling, accounting, tax),

investor relations and business

intelligence as well as human

resources, compliance and legal

affairs.

Henning joined Parship as CFO in

2008, being Managing Director

from 2012 onwards. Prior positions

include CFO of publicly listed

Pixelpark AG, CFO of Axel Springer’s

finance and services division, CFO of

Bertelsmann’s Bol.com and Head of

Business Development at Infineon

AG.

Group COO Marc Schachtel is

responsible for the group’s

technology and platform strategy.

For the matchmaking part of the

business, he oversees the product

strategy and drives the constant

optimization of customer success

and monetization.

Marc joined Parship as Director

Engineering in 2011, being CTO

from 2012 and Managing Director

from 2014 onwards.

Prior positions include Co-Founder

and CTO of VC-backed gaming

company Goodbeans and Senior

Consultant at BCG Platinion, BCG’s

IT-consulting branch.

Geoffrey Cook is CEO of The Meet

Group, overseeing the social dating

and entertainment portfolio of the

group. In addition, he is responsible

for ParshipMeet Group’s overall

video strategy including the vPaaS

business.

Geoff co-founded The Meet Group

in 2005 and has been its CEO ever

since, which was created out of

myYearBook. Previously he has

been the co-founder and CEO of

ResumeEdge and EssayEdge.

Page 3: Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and meet new friends across the globe or down the block Lovoo Leading European and most

- 3 -

ParshipMeet Group – combining two leading complementary online dating

businesses into new global champion

Leading international

mobile-first

matchmaking brands

and platforms

EUR 222m

H1 2020 LTM Revenue

EUR 56m

H1 2020 LTM adj. EBITDA

Leading global online

dating & social

entertainment platforms

EUR 229m

H1 2020 LTM Revenue1

EUR 39m

H1 2020 LTM adj. EBITDA1

EUR 451m

H1 2020 LTM Revenue1

EUR 95m

H1 2020 LTM adj. EBITDA1

Globally leading mobile-

first, social dating and

matchmaking brands

and platforms

1) LTM revenues and adjusted EBITDA per June 30, 2020. The Meet Group’s pro-forma adjusted EBITDA included in the above deducts 80% of the expenses for stock-based compensation from

The Meet Group’s management adjusted EBITDA. USD numbers converted at 1.12 for 2019, 1.14 for H1 2019 and 1.12 for H1 2020.

Page 4: Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and meet new friends across the globe or down the block Lovoo Leading European and most

- 4 -

Large and High Growth Markets

Monetizing

Strong Structural Growth Drivers

▪ Growth in numbers of singles from

changes in lifestyle and work

choices

▪ Increasing use of online

interaction and social

entertainment

▪ Increasing penetration, trust and

acceptance of meeting and

socializing online

▪ Technology increasing the

substance and meaning of online

connections

▪ Changes in customer behaviour

being accelerated by „new

normal“

Operating in highly attractive market segments with dynamic growth

prospects

Source: ParshipMeet Group estimate based on third party consulting firm report.

~ EUR 9bnGlobal online dating market TAM

EUR 2.3bnSubsegment: US & German online

dating & matchmaking TAM

>8% Online dating market growth

for US & Germany

>11% Social entertainment market

growth

Video Platform as a

Service business

(„vPaaS“)

Page 5: Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and meet new friends across the globe or down the block Lovoo Leading European and most

- 5 -

Our BrandsSocial Dating & Entertainment Matchmaking

MeetMe

The mobile version of

the bar or

coffeehouse where

everyone belongs

Tagged

Social Networking

and dating for the

African American

community

Growlr

The gay dating app to

meet men in your

neighborhood or

across the globe

Skout

Discover and meet

new friends across

the globe or down

the block

Lovoo

Leading European

and most

downloaded German-

speaking dating app

Parship

Parship is THE love

brand for long-term and

happy relationships in

DACH and Benelux

eharmony

The US-based

pioneer in creating

highly compatible

relationships

ElitePartner

The online dating

service for demanding

singles looking for an

inspiring relationship

Addressing all needs for meeting new people – from social dating and

entertainment to matchmaking and finding a meaningful relationship

Whatever people are looking for with us – we have the right service for them.

A long-term relationship with the right partner? Fun encounters in a relaxed, but at the same time safe

atmosphere? Live video and entertainment?

Our highly diversified range of apps offers something for everyone. That’s what make us uniquely special in

the online dating market.

Page 6: Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and meet new friends across the globe or down the block Lovoo Leading European and most

- 6 -

Uniquely covering the full spectrum of the online dating market –

newly formed group is the global #2 dating player

Source: ParshipMeet Group estimate.

Zoosk

Badoo Bumble

Christian Mingle eDarling

eharmony ElitePartner

EliteSingles

GROWLr

Hinge

Lovoo

MatchMeetic

MeetMe

Pairs

Parship

PoF

SilverSingle

Skout Tagged

Tinder

USER INTENTION

MARKET SEGMENT

OKCupid

Social Dating / Entertainment Classic Dating Matchmaking

Meeting Dating Relationship

Page 7: Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and meet new friends across the globe or down the block Lovoo Leading European and most

- 7 -

Highly diversified business model and revenue streams standing out in the

market

Note: Revenue split in percent of H1 2020 pro forma revenues of ParshipMeet Group. USD numbers converted at 1.12 for H1 2020.

Subscriptions Virtual Goods Advertising B2B vPaaS

Page 8: Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and meet new friends across the globe or down the block Lovoo Leading European and most

- 8 -

Live streaming dating – the future of online dating AND reality TV has

arrived, and we are leading

Live Streaming Dating: Reality TV 2.0 Components & Success Factors

Combined in one easy to

integrate SDK that any app

or website can add …

TechnologyTens of millions of dollars per year

in software improvements and new

features

Moderation500+ human moderators combine

with sophisticated AI

Audience1.2 mm broadcasters and 8.9 mm

viewers per month*

Talent Management30-person talent team recruit and

promote emerging talents

FormatsConstantly developing new formats

to engage the audience

MonetizationGifting to streamers based on

in-app purchases of coins

Page 9: Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and meet new friends across the globe or down the block Lovoo Leading European and most

- 9 -

Offices

ParshipMeet Group – one of a few global internet champions

headquartered in Germany

Note: Geographical split based on H1 2020 pro forma revenues ParshipMeet Group. USD numbers converted at 1.12 for H1 2020.

HQ

Hamburg (Group and Parship HQ)

New Hope (Meet HQ)

Los Angeles (eharmony)

Philadelphia (Meet)

Dresden (Lovoo)

Berlin (Lovoo)

London (eharmony)

Amsterdam (Parship)

US

50%of revenues

Germany

26%of revenues

Rest of World

24%of revenues

Page 10: Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and meet new friends across the globe or down the block Lovoo Leading European and most

- 10 -

We will now turn to the realization of synergies while staying focused on

growth

Cross-selling between brands Cooperation P7S1 Entertainment Technology & platforms

Page 11: Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and meet new friends across the globe or down the block Lovoo Leading European and most

- 11 -

Formation of ParshipMeet Group has created a leading global player in

online dating – to IPO in 2022

37 4460

82

117 124143

209

246

2012 2013 2014 2015 2016 2017 2018 2019 H1 2020

pro-forma*

Revenues ParshipMeet Group [EURm] Adj. EBITDA ParshipMeet Group [EURm]

Note: All enterprise values refer to acquisitions at the time. Aggregate merger consideration for The Meet Group at USD 497m (EUR 448m) based on EUR/USD exchange rate of 1.11

1) LTM revenues and adjusted EBITDA per June 30, 2020. The Meet Group’s pro-forma adjusted EBITDA included in the above deducts 80% of the expenses for stock-based

compensation from The Meet Group’s management adjusted EBITDA. USD numbers converted at 1.12 for 2019, 1.14 for H1 2019 and 1.12 for H1 2020.

-5 -2

9

18

28

3640

44

52

2012 2013 2014 2015 2016 2017 2018 2019 H1 2020

pro-forma*

2022

First Media-for-

Revenue Deal

with P7S1

Acquisition of

Parship by Oakley

Capital

Acquisition of

ElitePartner

Acquisition of

Parship by

NuCom Group

EV of EUR 300m

Participation of

General Atlantic

in NuCom Group

Acquisition of

eharmony

EV of USD 85m

Acquisition of

The Meet Group

USD 6.30 / share

Vision to IPO

ParshipMeet

Group

2012 2015 2016 2018 2020

Page 12: Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and meet new friends across the globe or down the block Lovoo Leading European and most

- 12 -

Appendix

Page 13: Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and meet new friends across the globe or down the block Lovoo Leading European and most

- 13 -

Parship Group

Page 14: Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and meet new friends across the globe or down the block Lovoo Leading European and most

- 14 -

2012…

After consolidating the DACH market and integrating eharmony, PG #1 in

matchmaking with market leading positions in Europe and North America

Revenues Parship Group [EURm]

2020+

adj. EBITDA Parship Group [EURm]

2013 2014 2015 2016 2017

Parship Optimization and Growth

“Parship Excellence”

ElitePartner

Acquisition and Integration

Innovation and

Growth

Sale Parship to Oakley Acquisition ElitePartner Sale to P7S1

2018 2019

eharmony

Acquisition and Integration

Acquisition eharmony

H1 20202012 2013 2015 2019

209

2014 20182016 2017

37 4460

82

117 124143

117

eHarmony Parship ElitePartner

20182014 20152012 2017

44

2013 2016 2019

18

H1 2020

-5-2

9

28

3640

31

Page 15: Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and meet new friends across the globe or down the block Lovoo Leading European and most

- 15 -

Based on their top-of-class awareness and relevance our three strong

brands are leading in online matchmaking internationally

No other brand can give you

more confidence to fulfill

your relationship goals

Trusted & dedicated confidant

Confidence: highest chance of success

and most efficient way to find your

partner

Largest pool of desirable singles

seeking a real relationship

Biggest and most experienced

matchmaker for finding a serious

long-term relationship

The passionate expert

High chances and the most efficient

way to find the perfect partner for a

long-lasting, happy relationship

The largest selection thanks to the

largest database

The dating service for discerning

clients, where not everybody

makes the cut

The cultured agent

Find the perfect partner with a similar

social standing and lifestyle for a

serious relationship

Best pre-selection through

manual profile inspection

Brand promise

Brand personality

Emotional Benefit

Functional Benefit

Page 16: Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and meet new friends across the globe or down the block Lovoo Leading European and most

- 16 -

Parship “Circle of Excellence” in Online Matchmaking Key Facts

▪ In the online matchmaking business the most

important asset is having and constantly

refilling the largest database of high-quality

singles.

▪ This large database is the key driver for the

attraction and – in the case of a subscription

model – conversion of new singles.

▪ The only way to obtain and grow such a high

quality database is to build up a brand

communicating this exact proposition.

▪ This can most effectively be achieved via use of

reach media, which in turn can only be afforded

based on excellent monetization capabilities

generating strong customer lifetime values.

▪ Today, Parship Group masters this cycle and

runs it in a highly profitable way.

Parship’s “Circle of Excellence” is the proven way of running online

matchmaking successfully, also forming the blueprint for eharmony growth

High media

pressure &

efficient

marketing

Optimized

conversion of

online (brand)

traffic

Largest database

of high quality

users

Best in class user

monetization

combined with

leads toas basis for

enables

Strong Brand

Page 17: Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and meet new friends across the globe or down the block Lovoo Leading European and most

- 17 -

The Meet Group

Page 18: Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and meet new friends across the globe or down the block Lovoo Leading European and most

- 18 -

The Meet Group has combined acquisitions with a proven history of

performance through innovation to claim a market leading position

Revenues The Meet Group [USDm Reported] adj. EBITDA The Meet Group [USDm Reported]

Launch of myYearbook -one

of the first social networks for

meeting new people

Acquisition Skout

2005 …

Go-live on

iPhone and Android

2010 2012 … 2016 2018

myYearbook

rebrands to

MeetMe

Mobile surpasses

90% of revenue

Acquisition Tagged Acquisition Lovoo Acquisition Growlr

Forms The Meet Group

Introduction of video

Platform as a Service

Business (vPaaS)

2011

Acqu. by ParshipGroup

First vPaaS Client

Live-streaming

surpasses 50%

of revenue

Launch of live-

streaming video

2017 2019 2020

2018

76

H1 20202014 2015 20172016 2019

4557

124

179

212

145

5

20

2932 32

42

29

H1 202020182014 2015 2016 2017 2019

Note: adjusted EBITDA of The Meet Group can be found in the appendix of this presentation

SkoutMeetMe Tagged Lovoo vPaaS Growlr

Page 19: Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and meet new friends across the globe or down the block Lovoo Leading European and most

- 19 -

The Meet Group‘s continuous focus on three key pillars drives a sustainable

advantage in the market

Build the most

engaging dating communities

in the world

(2.1 billion monthly chats)

Invest in new products and

services like live-streaming

video and AI to entice our

community to spend more time

(1.1 billion video minutes monthly)

Partner for and acquire new

audiences, including through

platform-as-a-service products

provides the

monetization

advantage to…

provides the

distribution

advantage to…

provides the user

acquisition

advantage to…

Page 20: Creating a Global Champion · 1 day ago  · neighborhood or across the globe Skout Discover and meet new friends across the globe or down the block Lovoo Leading European and most

- 20 -

Adjusted EBITDA definition of The Meet Group

Source: The Meet Group

in USD m FY 2019

Net Income (Loss) 11.332.497

Interest expense 1.301.348

Income tax expense 4.929.440

Depreciation and amortization expense 13.131.002

Stock-based compensation expense 11.107.152

Acquisition and restructuring 414.110

Loss on disposal of assets 0

Loss on foreign currency transactions 10.172

Adjusted EBITDA 42.225.722

The Meet Group (the “Company”) uses Adjusted EBITDA as a performance measure, which is a financial measure that either excludes or includes amounts that

are nor normally included or excluded in the most directly comparable measure calculated and presented in accordance with U.S. GAAP. The company defines

Adjusted EBITDA as income or loss from operations before interest expense, benefit from the provision for income taxes, depreciation and amortization expense,

stock-based compensation expense, non-recurring acquisition, restructuring or other expenses, gain or loss on foreign currency transactions, gain or loss on sale

or disposal of assets, bad debt expense outside the normal range and goodwill and long-lived asset impairment charges. The company excludes stock-based

compensation expense because it is non-cash in nature. The company believes Adjusted EBITDA is an important measure of its operating performance because

it allows management, investors and analysts to evaluate and assess its core operating results form period to period after removing the impact of acquisition

related costs, and other items of a non-operational nature that affect comparability. The company recognizes Adjusted EBITDA has inherent limitations because

of the excluded items.

The following table sets forth a reconciliation of the Meet Group’s Adjusted EBITDA to its U.S. GAAP net income for the year 2019:


Recommended