43 xing noah sf 2012
DESCRIPTION
Presentation given at NOAH Conference San Francisco on June 26 2012 www.noah-conference.comTRANSCRIPT
XING – #1
Professional Social
Network In German
Speaking Europe
NOAH ’12, San Francisco
Dr. Stefan Gross-Selbeck
Why people use XING "A more successful & rewarding working-life for every professional"
Efficient tools for corporates
3
Digital identity management
1
2
Core networking functions
2
e-Recruiting Advertising
Events
#1 Business network in D-A-CH
3
… in members
with >5.5m+ members in D-A-CH
… in growth
>233k net new members in Q1 2012
… in activity
with more than 4/5 of all segment page
views
… social media recruiting platform
for online job ad postings
… strong local ties
>250 local Ambassadors, >140k offline
events p.a.
Our business model
4
Core networking functions
Free of charge
Total:12.1m (D-A-CH: 5.5m)
e-Recruiting
Job ads (fixed & click price)
€395 - €595+ p.m. or €0.79 p.c.
Recruiter membership:
€39.95 - €59.95 p.m.
Events
Commission to XING: 5.9% of
ticket price & €0.99 per ticket
sold
Advertising
eCPM model
Company Profiles
Standard @ €24.90 p.m.
Plus @ €129 p.m.
"Freemium" model
Premium
membership:
3m @ €7.95 p.m.*
12m @ €6.95 p.m.*
Total of 793k payers
(D-A-CH: 765k)
14% payer ratio
EV
EN
TS
AD
VE
RT
ISIN
G
E-R
EC
RU
ITIN
G
PAID
MEMBERSHIPS
PREMIUM & SPECIAL
MEMBERSHIPS
BASIC MEMBERSHIP
VERTICALS
. . .
* Pricing for all new paying members since April 2011 (Discount of 20% for first term, auto-renewal with new pricing)
Sales membership:
3m @ €49.95 p.m.
12m @ €29.95 p.m.
Q1’12: €17.7m revenues, €4.8m EBITDA, 27% margin
5
Accelerated investment mode since Q3 2011
Q1'12 Q4'11 Q1'12
vs. Q4'11
Q1'11 Q1'12
vs. Q1'11
Abs. Abs. Abs.
Total revenue1 17.7 17.6 +1% 15.7 13%
Costs (12.9) (12.0) (7%) (10.0) (29%)
EBITDA 4.8 5.6 (14%) 5.6 (15%)
Margin2 27% 32% (5%pt) 36% (9%pt)
Depreciation (1.8) (2.6)3 31% (1.5) (24%)
Financial result 0.1 0.2 (29%) 0.0 272%
Taxes (1.1) (1.4)3 (18%) (1.5) 25%
Net result 2.0 1.83 12% 2.7 (27%)
(1) Including other operating income
(2) Of revenue
(3) Adjustment for one time write-down of market entries for Spain & Turkey (€14.4m) & taxes adjusted by €0.3m accordingly
‘Verticals’ drive overall growth
6
New job applicant features Strong yoy growth in job ads sold via sales overcompensates decline in click price ads given ongoing chance in product mix Corporate Recruiter Account (CRA) to be launched in summer 2012
Display ads: Good performance in soft market environment
Company profiles: Strong yoy growth in Q1
New revenue model "AdCreator" to be launched in Q2 2012
e-Recruiting
Advertising
Events
2.7 3.5
1.1
1.2 0.5
1.0
Q1'2011 Q1'2012
27% 32%
"Verticals": Continued strong growth
• Revenues from "verticals" in €m & in % of
total revenues
€4.3m
€5.7m
€14.3m ticket sales in Q1 2012
Ramping up sales team
Testing new product to promote
events on XING
+34%
+101%
+28%
+15%
YoY growth
3.287
7.000
March 2011 March 2012
Grow and activate: Long runway for
growth
7
UK NL USA
>16%
>11%
>17%
~5%
Significant growth potential in D-A-CH
Addressable market D-A-CH: 19m people3
Social networks are main
beneficiary of mobile
revolution2
Penetration gap promises upside
Business networking penetration in
selected countries1
Growth opportunity from mobile "revolution"
XING mobile visits in m
>20% of
total traffic
1 Source: XING analysis & LinkedIn demographics as of January 2012 2 Source: Comscore MobilLens, 3month avg. ending Dec-2010 vs. Dec 2009 3 Source: United Nations World Population Prospects 2006, United Nations Economic Commission for Europe – Statistical
Division, European Commission Long-Term Labor Force Projections 2005, OECD's Committee Information Service,
CEDEFOP Future Skill Needs in Europe Forecast 2008, Sal. Oppenheim estimates
>100%
Overall strategy in 2012 remains
unchanged
8
Exploit large remaining market
potential in D-A-CH region
Monetize through combination of
paid memberships & verticals
Upcoming launches:
Corporate recruiter account (CRA)
& social advertising products
Further invest in product
development and marketing
Significant growth potential ahead in core markets (D-A-CH)
to become a €100m+ company in a few years
EV
EN
TS
AD
VE
RT
ISIN
G
E-R
EC
RU
ITIN
G
PAID
MEMBERSHIPS
PREMIUM &
SPECIAL
MEMBERSHIPS
BASIC MEMBERSHIP
VERTICALS
Convert
Grow &
Activate
Develop
& Build
. . .
1
2
3
Thank you
for your kind
attention!
The professional network
www.xing.com
Unique Industry Know-How Core Investment Banking Competence
Unmatched Network and Relationships Full Commitment - We Are Entrepreneurs!
100% focused on Internet companies, covering over 25 sub-verticals in this highly complex industry - 15+ years active coverage of leading European
Internet companies and investors Deep understanding of industry dynamics and
thinking of industry leaders Ability to add value beyond banking advice
- Facilitates overall process and minimizes management distraction
The NOAH team has 25+ years of media investment banking experience - Routine execution of M&A and financing
transactions with sizes of several billion euros The team has been working together closely for 7
years (including 6 years at Lehman Brothers) 8 successfully completed NOAH Advisors
transactions underline successful transfer of competencies to the Internet sector
NOAH Advisors is globally very well connected and has direct access to virtually all key players in the industry - Knowledge of and strong relationships with
potential buyers’ key decision makers - Coverage of over 500 companies and 4,000
individuals - Proactively finds and unlocks attractive
investment opportunities for leading investors (e.g. Bigpoint)
Annual NOAH Conference
The NOAH team are entrepreneurs and focused on growing the business and establishing a reputation for excellence
Full commitment to deliver top quality results in short time frames
Highly success-based compensation structures align interests of clients and NOAH Advisors, and demonstrate conviction to deliver top results
NOAH Advisors - Europe’s Leading Internet Corporate Finance Boutique
Marco Rodzynek
Managing Director and Founder
Yoram Wijngaarde
Director
Jan Brandes
Director
Contact Details [email protected] UK Mobile: +44 77 85 330 330 Swiss Mobile: + 41 79958 1512
Contact Details [email protected] UK Mobile: +44 79 17 084 784
Contact Details [email protected] German Mobile: +49 174 2010 984
The NOAH Advisors Core Team
Selected Completed NOAH Transactions
July 2011
April 2011 April 2011
December 2009 April 2009
Advisor to EnGrande
Sale of a majority stake in
to
have acquired a majority stake in
for $350m from
Exclusive Advisor to Summit Partners and TA Associates
Advisor to Yatego
Sale of a majority stake in
to
Advisor to Softonic
Partial sale of
to
Valuing Softonic at €175m
Advisor to Fotolia
$80m partial sale of
to
May 2012
150 million growth equity investment from
for a 50% stake alongside Fotolia’s Founders and
Additional $150 million senior debt financing Total $300 million investment
Financial Advisor to Fotolia and its Shareholders
November 2011
Sale of a majority stake in
to Quants Financial Services AG
Exclusive Financial Advisor to grupfoni and its Shareholders
April 2012
Sale of a 100%-stake in
to
Financial Advisor to Toprural and its Shareholders
The conference will again take place at Old Billingsgate in London Registration will open in early 2012 For updates, please check: www.noah-conference.com
Introduction to the NOAH Conference Overview of the NOAH Conference 2011
NOAH ‘12 on 6-7 November – Save the Date
The NOAH Conference is an annual Internet event taking place once a year in London, focused on top management from Internet start-ups to global media companies as well as senior investment professionals
NOAH’s goal is to create a marketplace for the European Internet eco-system to discuss key trends, generate business and facilitate investment transactions
Over the past 3 years numerous high-profile speakers presented at NOAH, including over 100 CEOs
The NOAH Conference was founded in 2009 by Marco Rodzynek and is organised by the NOAH Advisors team with sponsorship from some of the world’s leading financial investors
NOAH ‘11 took place on 9-10 November 2011 at Old Billingsgate in London
Fantastic line-up of 90 speakers from 20 countries in keynotes, presentations and panels over 2 full days
1,150 attendees from 35 countries – 57% from Internet companies, 26% from investors, 15% from corporates (media companies, advisors, PR and recruiting) and 2% press representatives from leading on- and offline publications
NOAH party with additional guests from London and a great live band on the evening of the first day
Extremely positive feedback from numerous attendees, on twitter and in the press
Event Sponsors
Conference Program
Selected Conference Impressions
Summary Overview
Strategic Sponsors