Download - XING AG Q3/2013 conference call presentation
XING – #1 Professional Social Network In German Speaking Europe Q3 results
November 6, 2013
Executive Summary
2
Continuing accelerating of top-line growth
2 major product launches
New XING Talentmanager (XTM 2.0)
The New Premium
Strongest member growth
in the last 18 months
Well on track to meet full year objectives
196 184 205 211 214
June '12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Sep '13
3
Strongest member growth during last 18 months Lot of scope still available for further growth in D-A-CH
Mobile traffic growing nicely. 38% of total traffic is mobile already.
Member base [millions] & net adds [thousands]
5.28
6.72
Addressable market
in D-A-CH
~20m
Rounding differences are possible
4
Paying subscriber base growing
413
315
4
June '12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Sep '13 Worldwide
Paying member base & net adds in D-A-CH
[thousands]
767
829
New pricing effective since June 2013
3-month membership: €9.95 p.m. (+€2)
12-month membership: €7.95 p.m. (+€1)
805
Rounding differences are possible
5
Top-line growth acceleration continues in Q3/13
18.3
21.6
Q3/12 Q3/13
Revenues in €m
EBITDA
in €m
Operating cash flow
in €m
5.5 6.2
Q3/12 Q3/13
4.7 4.4
Q3/12 Q3/13
12% (7%) 18% (Q2:15%)
(Q1:11%)
6
Introduction of XTM 2.0
New frontend & new features - launched Sep 2013
7
Introduction of XTM 2.0 Showcase with Deutsche Telekom AG
„We can no longer imagine working without the XTM. I would‘t want to stop using it.
And in particularly in the German speaking countries you just can‘t ignore XING.“
Marc Stefan Brodbeck Vice President Recruiting & Talent Acquisition Deutsche Telekom AG
DTAG is using XTM since launch in September 2012
XTM creates value
Time to hire down by >70%
Cost per hire down by >80%
8
Launch of “Das Neue Premium” Strong communication of online benefits
Premium HUB Profile Visitors (Statistics) Offline Benefits
9
Launch of “Das Neue Premium” First new Offline-benefits have been rolled out in Q4
Content/News
Mobility
THE NEW
PREMIUM
Support Services
Sports Conven-ience/
Enjoyment
Education
Partner Offers
Free Office Space at „Design
Office“ locations
Free access too all books on
Blinkist (12 months)
More to come during Q4/13 & Q1/14
Launch of “Das Neue Premium” >80% positive customer feedback
6%
5%
12%
33%
44%
5 = don't like it at all
4
3
2
1 = like it very much
>80% positive
survey feedback
based on 1,000 responses
How do you like the New Premium?
Q3/2013 figures
The professional network www.xing.com
12
Executive summary – Financials
Fully on track to meet full year objectives
and long-term plan
Accelerating member growth w/
214k net adds
Operating Cash-Flow amounts to € 4.4m
EBITDA increasing to €6.2m
Accelerating revenue growth w/ 18% yoy
Q3/13: €21.6m revenues, €6.2m EBITDA
13
(1) Including other operating income
Q2/13 Q2/13 Q3/13
vs. Q2/13
Q3/12 Q3/13
vs. Q3/12
Abs. Abs. % Abs. %
Total revenue1 21.6 20.9 3% 18.3 18%
Costs (15.4) (15.0) (2%) (12.8) (20%)
EBITDA 6.2 5.9 6% 5.5 12%
Margin 29% 28% 1%pt 30% (1%pt)
Depreciation (incl. PPA) (2.1) (1.9) (7%) (2.1) 3%
Financial result 0.0 0.0 38% 0.1 (44%)
Taxes (1.5) (1.3) (16%) (1.3) (16%)
Net result 2.7 2.7 1% 2.2 23%
Member growth accelerating against seasonality
E-Recruiting and Events with continuing strong growth
14
e-Recruiting in €m
Events in €m
7%
Premium Club in €m
Q3/12 Q3/13 Q3/12 Q3/13Q3/12 Q3/13
43% 32%
12.7 13.7
4.3
6.2
0.9 1.3
Overall revenue growth accelerating to 18% in Q3/13 (15% in Q2 & 11% in Q1)
Personnel main investment area to further drive company growth
15
Personnel in €m
in % of total revenue
Marketing in €m
in % of total revenue
Other expenses in €m
in % of total revenue
Investment in product/technology
organization & sales/marketing
10 new FTEs in Q3/13
41 new FTEs since Sep ’12,
thereof 27 from kununu
Online display & social media adv.
Search engine marketing (SEM)
Offline marketing expenditure
(conferences & events,
print, sponsoring)
Affiliate marketing
External services, legal, audit &
consulting
Payment processing, server
hosting
Rent & other costs
7.78.6 8.3
Q3/12 Q2/13 Q3/13
42% 41%
1.2 1.4 1.8
Q3/12 Q2/13 Q3/13
6% 7%
4.0
5.0 5.2
Q3/12 Q2/13 Q3/13
22% 24%
39%
24%
8%
55% 32% 9%
YoY cost development reflects first-time consolidation of kununu
Q3/2013: Operating cash flow: €4.4m
16
Q3/13 Q2/13 Q3/13
vs. Q2/13
Q3/12 Q3/13
vs. Q2/12
Abs. Abs. Abs. Abs. Abs.
EBITDA 6.2 5.9 0.3 5.5 0.7
Interest/tax/ESOP (0.9) (1.2) 0.3 (0.9) (0.1)
Net working capital (0.9) 2.3 (3.2) 0.1 (1.0)
Operating cash flow excl.
organizer cash 4.4 6.9 (2.5) 4.7 (0.3)
Investment – operating (2.9) (2.7) (0.1) (1.6) (1.3)
Investment – acquisitions 0 (0.1) 0.1 0.0 0
Financing incl.
transaction of own shares 0.4 1.7 (1.3) 0.1 0.2
Free cash flow excl. organizer cash
& dividends 1.9 5.9 (4.0) 3.3 (1.4)
Regular dividends 0.0 (3.1) 3.1 0.0 0
Free cash flow excl.
event organizer cash & incl. dividends 1.9 2.8 (0.9) 3.3 (1.4)
Effects organizer cash 1.6 0.0 1.6 1.8 (0.2)
Free cash flow incl.
organizer cash & dividends 3.5 2.8 0.7 5.2 (1.6)
Cash-Flow from net working capital negative due to xo fluctuations in Q3
Thank you for your kind attention!
The professional network www.xing.com
Negative invested capital from shareholders’ perspective
18
in €m [Excl. event organizer cash and NWC]
As of Sep
2013
Abs.
Assets 107.1
Operating assets 26.9
Acquisitions / international 16.3
TAX A/R 1.3
Cash 62.6
Equity/Liabilities 107.1
Equity 58.3
Deferred income 30.2
Liabilities 15.1
Tax liabilities 3.5
Other 0.0
Operating assets €26.9m
Deferred income (€30.2m)
Liabilities (€15.1m)
Invested capital
w/o cash (€18.4m)
Investor information & contact
The professional network www.xing.com
XING AG IR stats Market cap: ~€440m / >€60m cash / no debt
20
Average trading volume per day (XETRA) Consensus from
9 brokers 2013e 2014e 2015e
Total revenues 82.7 93.2 102.1
EBITDA 23.9 29.9 35.5
Margin 29% 32% 35%
Depreciation -8.4 -8.6 -8.5
EBIT 15.5 21.3 27.0
Margin 19% 23% 26%
Net income 10.9 15.0 19.3
EPS in € 1.98 2.72 3.48
DPS in € 0.70 0.87 1.33
Analyst coverage
Berenberg Bank, Commerzbank, Close Brothers, Deutsche Bank,
Hauck & Aufhäuser, JP Morgan Cazenove,
MM Warburg, Montega
Shares 5,592,137
Consensus
(Analy
st estim
ate
s a
s o
f N
ovem
ber,
2013)
TecDax ranking end of Oct 2013
Market Cap. 27
Turnover 30 Numbers based on last filing – actual shareholdings can differ
Burda Digital GmbH 2,922,244 52.26%
Deutsche Asset &
Wealth Management
358,800 6.42%
Ennismore 277,848 4.97%
Schroders 282,421 5.05%
Treasury Shares 37,832 0.68%
Sonstige 1,712,992 30.63%
[in thousand] 21
10
6
4
7 7 7
12
15
3
20
9
12
Oct-12 Dec - 12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13
XING share price development since IPO in Dec 06 as of November 5, 2013
21
+40% +27% +61% +162%
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XING AG TecDAX SDAX DAX
Investor Relations Contact details & social media channels
22
Patrick Moeller
Director Investor Relations
XING AG
Dammtorstraße 29-32
20354 Hamburg
Germany
Tel.: +49 (0)40 419 131-793
Fax.: +49 (0)40 419 131-44 (Please use this number to submit “WpHG notifications”)
Email.: [email protected]
IR website: http://corporate.xing.com/english/investor-relations/
http://twitter.com/xing_ir
http://www.slideshare.net/patmoeller
http://www.youtube.com/XINGcom
http://blog.xing.com
skype:patrickmoeller?add