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Scout24 AG

Investor Presentation Feb 28, 2023

385_ip_2023-02-28_bf7111c9-33ed-40ac-96d0-1198ec1b3cd4.pdf

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Making a

difference

Analyst Call – Preliminary Results for Q4 & Full Year 2022 28 February 2023

Disclaimer

This document has been issued by Scout24 SE (the "Company" and, together with its direct and indirect subsidiaries, the "Group") and does not constitute or form part of and should not be construed as any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision, nor does it constitute a recommendation regarding the securities of the Company or any present or future member of the Group.

All information contained herein has been carefully prepared. However, no reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company or any of its directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability whatsoever is accepted by the Company or any of its directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith.

The information contained in this presentation is subject to amendment, revision and updating. Certain statements, beliefs and opinions in this document are forward-looking, which reflect the Company's or, as appropriate, senior management's current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any information contained in this presentation (including forward-looking statements), whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this document.

This document is not an offer of securities for sale in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Neither this document nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions or distributed, directly or indirectly, in the United States of America, its territories or possessions or to any US person.

By attending, reviewing or consulting the presentation to which this document relates or by accepting this document you will be taken to have represented, warranted and undertaken that you have read and agree to comply with the contents of this notice.

Nothing in this document constitutes tax advice. Persons should seek tax advice from their own consultants or advisors when making investment decisions.

The Q4 2022 figures contained in this document were neither audited in accordance with §317 HGB nor reviewed by an auditor.

2022 in a nutshell: During times of uncertainty and changed real estate market we have proven the resilience of our business model and outperformed initial expectations

Beginning of 2022 …

Significant tightening of macro conditions and geopolitical uncertainty

Real estate market started transition to buyer market, change accelerating throughout the year

Significant shift of interest from buy to rent

Execution of CMD Strategy

… and how we ended the year

Delivered results at the high-end of upgraded guidance

IS24 platform more relevant than ever Agent growth accelerated during 2022

Record number of Plus subscribers

Upgraded guidance despite 2022 labeled as year of investment Q4 2022 operating leverage Currently outperforming CMD guidance

Going forward

Resilience of Scout24 business model proven

Execution of CMD strategy well underway

Entering 2023 with increased relevance for IS24; core product suite in high demand

Accelerating innovation to deepen our competitive moat

Focus on costs and driving efficiencies in operations

Closed out FY2022 at upper end of guidance

FY2022 revenue growth of 15% and ooEBITDA of 13% highlights resilience of Scout24 business model in changing markets

Continued strong demand for IS24 core product suite (memberships, PPA, consumer subscriptions)

Improved operating leverage in Q4 2022, consistent with previous communication; expecting further improvement in FY2023

Cyclical softness in OTP & Mortgage leads H2 2022, but limited impact on group numbers (< 13% of FY 2022 revenues)

Adjusted EPS growing 26% to €1.91

Robust start into FY2023 and on our path to deliver on guidance of 12% revenue and 13% ooEBITDA growth

We closed out FY2022 at the top-end of our upgraded guidance

Q4 2022: continued customer growth and strong demand for IS24 core product suite

Our strategy and three-sided marketplace enables us to grow in all market conditions

7 Preliminary Q4 / FY 2022 Results | 02/2023

Remainder of revenues generated in: Professional: PPA Private: PPA + Other

German real estate market fundamentals remain robust

  • High agent commission
  • Structural undersupply of new homes
  • Price levels remain high by historic levels
  • Diversified split between sale and rent

Agent health remains robust

  • Commission pool still high
  • Flexible cost base
  • Reducing spend on ancillary costs (incl. leads)

Scout24 has a much bigger role to play in the new environment

Our 3-sided marketplace is increasingly relevant as trusted platform to enable stakeholders to transact

  • Marketing power & visibility to find buyers able to transact
  • More transactions
  • (Temporarily) fewer leads

Bringing all parties together to transact in a trusted, transparent and digital first environment

Needs:

  • Efficient (digital) process - Find the right tenant

Consumers

Needs:

  • Price transparency - Support initiation of negotiations - Get mortgage ready

Positive impact on demand of our core products

Strong FY growth in all three segments

Professional segment performance is driven by accelerating growth in subscriptions

(€m) Q4
2022
Q4
2021
+/- FY
2022
FY
2021
+/-
Professional segment revenue 73.8 67.7 +9.0% 291.2 262.7 +10.8%
of which subscriptions 66.4 60.8 +9.2% 260.1 235.8 +10.3%
thereof membership 58.1 51.8 +12.1% 221.6 202.9 +9.2%
thereof seller leads 8.3 9.0 -7.8% 38.6 32.9 +17.3%
(period
#
Customers
average)
21
593
,
20
707
,
+4
3%
21
157
,
20
489
,
+3
3%
Resulting
ARPU
(in
€)
1
025
,
979 +4
7%
1
025
,
959 +6
8%
of which PPA 4.1 3.0 +35.6% 14.9 12.0 +24.5%
of which Other (Mortgage) 3.3 3.9 -14.2% 16.1 14.9 +7.9%
ooEBITDA
Professional segment
45.0 43.0 +4.6% 176.2 168.8 +4.4%
ooEBITDA
margin
60.9% 63.6% -2.6pp 60.5% 64.3% -3.7pp

Growth driven by a combination of customer growth, rate card and product upgrades

Seller leads & Mortgage impacted by current market environment in H2 2022

Strong PPA spurred by ongoing need for greater marketing power

Private segment growth is fuelled by strong subscription business and ongoing strong growth in PPA

(€m) Q4
2022
Q4
2021
+/- FY
2022
FY
2021
+/-
Private segment revenue 32.2 25.8 +24.7% 121.5 94.6 +28.5%
of which subscriptions 16.1 12.6 +28.1% 60.1 39.4 +52.4%
Customers
(period
#
average)
319
747
,
251
955
,
+26
9%
304
019
,
203
961
,
+49
1%
Resulting
(in
ARPU
€)
16
8
16
6
+0
9%
16
5
16
1
+2
2%
of which PPA 12.0 8.7 +37.9% 42.7 34.5 +23.6%
of which Other (Schufa, RRI) 4.1 4.6 -9.7% 18.8 20.6 -8.9%
ooEBITDA
Private segment
17.7 12.4 +42.9% 62.7 43.1 +45.4%
ooEBITDA
margin
55.0% 48.0% +7.0pp 51.6% 45.6% +6.0pp

Further strong customer wins due to great demand in the rent market

Subscriptions growth continues to be driven by new customers with slightly increasing ARPU

Strong PPA reflecting longer standing times and need for marketing power

Standalone Schufa

Continues to decrease by consumer product shift to TenantPlus

FY2022 results at the top end of upgraded guidance and in Q4 we started to increase profitability y-o-y

(€m) Q4
2022
Q4
2021
+/- FY
2022
FY
2021
+/-
Revenues 115.2 101.8 +13.1% 447.5 389.0 +15.0%
Own work capitalised 6.9 7.0 -1.6% 28.7 26.6 +8.0%
Personnel
costs
-21.5 -19.5 +9.9% -92.2 -82.6 +11.7%
Marketing costs -12.0 -8.6 +39.6% -50.7 -36.3 +39.4%
IT costs -5.4 -5.4 +2.3% -21.4 -18.1 +18.4%
Selling costs -7.8 -8.2 -5.6% -28.6 -26.6 +7.7%
Other operating costs -9.0 -9.1 -1.1% -32.2 -29.3 +10.4%
Total operating effects -55.7 -50.8 +9.6% -225.1 -192.8 +16.8%
ooEBITDA 66.5 58.1 +14.4% 251.1 222.8 +12.7%
margin
ooEBITDA
7%
57
1%
57
+0
6pp
56
1%
57
3%
-1
2pp

ooEBITDA outgrew revenues in Q4 2022 and we generated ooEBITDA margin expansion

Focus on costs – except marketing costs, all cost lines grew much slower than revenues in Q4 2022

Full year IT costs negatively impacted by US Dollar exchange rate

We generated operating leverage in Q4 2022 –

on the back of strength in the core business and completing investment period

ooEBITDA growth outpaced revenue growth in Q4 2022…

Strong EPS growth

(€m) Q4
2022
Q4
2021
+/- FY
2022
FY
2021
+/-
Ordinary operating EBITDA 66.5 58.1 +14.4% 251.1 222.8 +12.7%
Non-operating effects -2.7 -10.7 -74.5% -20.5 -22.0 -6.7%
Reported EBITDA 63.8 47.5 +34.4% 230.6 200.8 +14.8%
D&A -11.2 -20.4 -45.0% -42.3 -63.1 -33.0%
EBIT 52.6 27.1 +94.0% 188.3 137.7 +36.7%
Financial result 6.5 2.5 +157.6% -14.0 -5.0 -178.7%
Earnings before tax 59.1 29.6 +99.5% 174.3 132.7 +31.3%
Taxes on income -15.2 -9.5 -59.6% -50.8 -42.1 -20.6%
Net income 43.9 20.1 +118.4% 123.5 90.6 +36.4%
Basic
in
EPS
0
59
0
24
+143
7%
1
59
1
03
3%
+54
Adjusted
EPS
in
0
51
0
42
+20
4%
1
91
1
52
+25
7%
Weighted
shares
#
av
74
5
83
1
-10
4%
8
77
88
1
-11
6%

Highly accretive EPS profile (adjusted and reported) catalysed by share buybacks

Confirming previous guidance for FY2023 despite macro uncertainties

Scout24 Group 2023E

12% 13%

Revenue growth Ordinary operating EBITDA growth

15 Preliminary Q4 / FY 2022 Results | 02/2023

Q&A

Next event: Publication Annual Report 23 March 2023

Filip Lindvall – Director Group Strategy & Investor Relations [email protected]

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