For personal use only

Transcription

1 ASX Announcement ASX code: SP1 October 17, 2016 Presentation for investor conferences The Board of Search Party Group Ltd (ASX:SP1) (Search Party or the Company) is pleased to provide to the market the investor presentation which MD Ben Hutt will present at investor conferences in Australia this week. Schedule 1. TechKnow Conference o Tuesday 18 th October 12.25pm Grand Hyatt Melbourne o Thursday 20 th October 2.45pm Radisson Blu Sydney o Friday 21 st October 9.20am Hilton Brisbane 2. Australian Microcap Conference o Wednesday 19 th October Sofitel Melbourne Investors are welcome to attend and should contact the conference organisers to register. About Search Party Search Party Group Ltd (ASX:SP1) is a recruitment services marketplace that connects employers and recruiters to make hiring faster, easier and more effective. Search Party has offices in Sydney, London and Toronto. It also owns employer branding site, JobAdvisor. For more information, visit searchparty.com and jobadvisor.org. SEARCH PARTY GROUP LTD LEVEL 5, 79 COMMONWEALTH ST. SURRY HILLS NSW 2010 SEARCHPARTY.COM ACN

2 Investor Overview October 2016 Search Party Group Ltd (ACN: )

3 Disclaimer This presentation contains forward-looking statements. These can be identified by words such as may, should, anticipate, believe, intend, estimate, and expect. Statements which are not based on historic or current facts may be forward-looking statements. Forward looking statements are based on: a) Assumptions regarding the Company s financial position, business strategies, plans and objectives of management for future operations and development and the environment in which the Company will operate; and b) Current view, expectations and beliefs as at the date they are expressed and which are subject to various risks and uncertainties. Actual results, performance or achievements of the Company could be materially different from those expressed in, or implied by, these forward-looking statements. The forward-looking statements contained within the presentation are not guarantees or assurances of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, which may cause the actual results, performance or achievements of the Company to differ materially from those expressed or implied by forward-looking statements. For example, the factors that are likely to affect the results of the Company include general economic conditions in Australia and globally; competition in the markets in which the Company does and will operate; weather and climate conditions; and the inherent regulatory risks in the businesses of the Company. The forward-looking statements contained in this presentation should not be taken as implying that the assumptions on which the projections have been prepared are correct or exhaustive. The Company disclaims any responsibility for the accuracy or completeness of any forward-looking statement. The Company disclaims any responsibility to update or revise any forward-looking statements to reflect any change in the Company s financial condition, status or affairs or any change in the events, conditions or circumstances on which a statement is based, except as required by law. The projections or forecasts included in this presentation have not been audited, examined or otherwise reviewed by the independent auditors of the Company. You must not place undue reliance on these forward-looking statements. All market share information in this presentation is based on management estimated based on internally available information unless otherwise indicated. This presentation is not intended to (nor does it) constitute financial advice or an offer, invitation or recommendation by or on behalf of the Company, its subsidiaries, or any other person to subscribe for, purchase or otherwise deal in any securities in the Company, nor is it intended to be used for the purpose of or in connection with financial advice, offers, invitations or recommendations to subscribe for, purchase or otherwise deal in any securities. This presentation has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information in this presentation and the Company s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange having regard to their own objectives, financial situation and needs and seek such legal, financial and/or taxation advice as they deem necessary or appropriate to their jurisdiction.

4 Now for something completely different

5 Businesses like us 2

6 In any vertical many compete, one dominates Online retail Holiday rentals 3

7 Marketplaces: slow to start, get big fast 4

8 Valuation multiples driven by stage of life Founded Age Annual Revenue (2015) Market Cap Multiple yrs $107Bn $359Bn 3.4X yrs $8.6Bn $35Bn 4.1X yrs $900M $24Bn 27X yrs $1.5Bn $68Bn 45X 5

9 Marketplaces help grow industries Online retail Holiday rentals $5bn Est $300bn 2016 Global Industry Revenue $66bn Est $170bn 2019 Global Industry Revenue 6

10 What you re going to see over the next five years will be more billion - dollar marketplaces built than over the past 20 years combined. Simon Rothman (Greylock Partners), 2014.

11 Why a marketplace in recruitment? Potential $1 trillion Making it real: SMEs are the bulk of the opportunity # SMEs # People % Workforce # Jobs p.a. Recruitment Industry $456bn NOW AU UK CA 2.1M 5.4M 1.1M 6M 15M 5M 50% 60% 70% 1.2M 3M 1M Online $9bn (3%) SOON US 5.7M 130M 50% Total 14M 156M 60% 26M 31M 8

12 Some alternative models Job Boards Social Recruitment New Breed Agency Referral Platforms 9

13 Search Party: Fast, affordable hiring for all businesses, everywhere

14 How it works Employers Recruiters Candidates Search Party Post a job, set a fee and shortlist recruiter represented candidates. Screen for skills and culture match and suggest candidates. Review culture, sit interviews and get hired. Manages all payments and earns 20% of the recruitment fee. 11

15 All three stakeholders win Job Seekers Job Seeker Learn about companies they want to work for Employer Showcase their culture to attract the right people Employers Employer Fill roles fast We earn 20% of the recruitment fee Recruiters Recruiter Place candidates in roles Job Seeker Get recruiter representation & find a new job Recruiter Source candidates for clients 12

16 Broad range of roles in focus Unskilled labour Skilled/white collar White collar management Executive (head hunting) FOCUS In Scope $ $$$ Search Party Focus Industries include: IT & media, sales & marketing, accountancy & finance, and healthcare. 13

17 Broad range of fees being paid Placement Fees Earned Q (AUD) 70 Total UK Australia Canada Other 60 Number of Placements $ Gross Placement Fee 14

18 9 million+ professional candidates globally. More than 30 countries with 10,000+ Canada Candidates Recruiters Employers 250, UK Candidates Employers Recruiters Candidates Recruiters Employers 7,000, ,756 US & Other Candidates Recruiters Employers 250, Australia Candidates Recruiters Employers 1,000, ,236 15

19 Our Competitive Advantage Deep experience & wisdom Marketplace First-mover & unique model Ben Hutt CEO Magda Walczak CCO Data Science & Tech Jason Shepherd CFO Stuart Gatenby CTO Branding & Reviews 16

20 Major Shareholders (wisdom) Josh Rogers Consultant Marketplace specialist Founding investor Freelancer.com Ben Hutt CEO & Managing Director Execution focused entrepreneur Macquarie, PwC, others Trevor Loewensohn Chairman Managing Director Alceon Previously UBS, JP Morgan 17

21 Business Performance

22 Hiring demand growing # of Vacancies For personal use only New Vacancies UK Australia Canada Other Cumulative Recruitment Funnel New Jobs Fee Agreed Interviews Placements 0 Q Q Q Q Q Q Q Q Jobs growing in core locations and in other countries 19

23 Value on platform growing significantly Unique Fees Accepted (AUD $) UK Fees Accepted (AUD) Australian Fees Accepted (AUD) Canadian Fees Accepted (AUD) Other Fees Accepted (AUD) Cumulative Recruitment Funnel $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 New Jobs Fee Agreed Interviews Placements $0 Q Q Q Q Q Q Q Q $- More than $4m in fees agreed in Q3 20

24 Interviews building well Quarterly Interviews Confirmed 900 UK Australia Canada Other Cumulative 3500 Recruitment Funnel # of Interviews New Jobs Fee Agreed Interviews Placements 0 Q Q Q Q Q Q Q Q Conversion from interview to placement 1 in 4 (and improving) 21

25 Placements up 34% on Q2 Quarterly Placements 160 UK Australia Canada Other Cumulative 500 Recruitment Funnel # of Placements New Jobs Fee Agreed Interviews Placements 0 Q Q Q Q Q Q Q Q Placements occurring outside our core markets, ready to grow 22

26 Revenue building fast Quarterly Gross Revenue $500,000 $450,000 United Kingdom Australia Canada Cumulative $900,000 $800,000 Recruitment Funnel $400,000 $700,000 New Jobs $350,000 $300,000 $250,000 $200,000 $150,000 $600,000 $500,000 $400,000 $300,000 Fee Agreed Interviews $100,000 $50,000 $200,000 $100,000 Placements $- Q Q Q Q Q Q Q Q $- 53% compound quarterly growth in revenue 23

27 Overview against market KPIs Users signed up Total 30 June 16 Total 31 Sept 16 Quarterly Growth % New Employer Users % New Recruiter Companies % Metric Q2 CY 16 Q3 CY 16 Quarter on Quarter Growth % Jobs Posted % Value of Fees Posted / Offered $3.52M $5.91M 68% Number of Jobs with a Fee Agreed % Value of Jobs with a Fee Agreed $2.53M $3.95M +56.4% Average Fee Agreed ($) $3 026 $ % Interviews Confirmed % Placements Confirmed % Gross Revenue (Recruitment Fees Billed) $ $ % Net Revenue* $ $ % * Search Party earns ~ 20% of this gross revenue transaction few net revenue 24

28 Share price and recent capital 25

29 Recent share price 26

30 Milestones looking forward When Mar 17 Jun 17 Dec /20 Placements per month ,000 Run-rate Annualised Net Revenue $1.35m $2.25m $4.50m $45m Online $9bn (3%) 2020/21 10,000 $90m 27

31 Onwards