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Scout24 AG

Investor Presentation Nov 3, 2022

385_ip_2022-11-03_a8105c63-760a-426a-8006-d3b2a14bd2c6.pdf

Investor Presentation

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Q3 / 9M 2022 Results

1

Tobias Hartmann (CEO) Dirk Schmelzer (CFO)

Analyst call, 3 November 2022 | © Scout24 Investor Relations

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 Q3 2022 figures contained in this document were neither audited in accordance with §317 HGB nor reviewed by an auditor.

Scout24 is well positioned

to navigate changing market conditions

  • One of our strongest quarters ever with 18% revenue and 17% ooEBITDA growth respectively
  • Real estate market transitioning to a 'new normal'
  • Scout24's value adding product suite supports agents and customers in the new market environment
  • Less than 3% of revenues derived from transactions
  • Narrowing FY2022 guidance towards upper end of range
  • Increased operating leverage expected in 2023 and beyond

Q3 2022 was one of our strongest quarters on record with 18% revenue growth

Strong growth in Memberships and Subscriptions offsetting slower growth in Seller Leads and Mortgage

5 Q3 2022 Results | November 2022

We are well positioned to drive sustained growth in a changed market environment

Macro context Shift from Sellers to Buyers market Advertising businesses under pressure Decline in new mortgage volumes Scout24 resilience Agents need marketing power and audience reach more than ever Growing agent base by 3.3% in Q3, crossing 21,000 Less than ~1.5% of S24 total revenues 9M 2022 Mortgage business revenue growth in Q3 of 5.6% We are very selectively building mortgage advisory capabilities for the long-term

Scout24 'transactional' revenues < 3% of 9M 2022

1) Professional and Private revenues 2) IV24 and BaufiTeam revenues

Strong Q3 growth in all three segments

Professional segment performance is driven by solid growth in subscriptions

(€m) Q3
2022
Q3
2021
+/-
Professional Segment Revenue 74.5 66.0 +13.0%
of which Subscriptions 66.3 59.2 +12.0%
thereof Membership 56.6 50.9 +11.1%
thereof Seller Leads 9.7 8.2 +17.5%
Customers
(period
#
average)
21
234
,
20
556
,
+3
3%
Resulting
ARPU
(in
€)
1
040
,
959 +8
4%
of which PPA 4.2 3.0 +42.2%
of which Other (Mortgage) 4.0 3.8 +5.6%
ooEBITDA Professional Segment 44.8 41.9 +6.9%
ooEBITDA
Margin
60.2% 63.6% -3.4pp

Growth driven by

a combination of customer growth, rate card and product upgrades

Solid seller leads growth

in a challenging market environment

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) Q3
2022
Q3
2021
+/-
Private Segment Revenue 31.6 23.5 +34.2%
of which Subscriptions 15.4 9.8 +58.2%
Customers
(period
#
average)
315
734
,
220
678
,
+43
1%
Resulting
(in
€)
ARPU
16
3
14
7
+10
5%
of which PPA 11.6 8.6 +35.8%
of which Other (Schufa, RRI) 4.5 5.2 -13.1%
ooEBITDA
Private Segment
16.2 10.0 +61.8%
ooEBITDA
Margin
51.3% 42.6% +8.8pp

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

Subscriptions revenue fuelled by new pricing schemes

Standalone Schufa

decreases by shifting to TenantPlus

Q3 revenue and ordinary operating EBITDA growing strongly on the same pace

(€m) Q3
2022
Q3
2021
+/- 9M
2022
9M
2021
+/-
Revenues 114.7 97.5 +17.7% 332.3 287.2 +15.7%
Own work capitalised 7.3 7.2 +1.0% 21.8 19.5 +11.5%
Personnel
costs
-25.1 -21.7 +15.9% -70.7 -63.0 +12.2%
Marketing costs -12.3 -10.0 +23.4% -38.7 -27.8 +39.4%
IT costs -5.3 -4.6 +13.8% -15.9 -12.7 +25.2%
Selling costs -7.7 -7.0 +10.1% -20.8 -18.3 +13.6%
Other operating costs -7.7 -7.0 +10.4% -23.3 -20.2 +15.5%
Total operating effects 58.1 50.2 +15.7% 169.5 142.0 +19.3%
ooEBITDA 63.9 54.5 +17.3% 184.6 164.7 +12.1%
margin
ooEBITDA
7%
55
9%
55
-0
2pp
6%
55
4%
57
-1
8pp

• Lower capitalisation rate of 6.3% vs. 6.6% in Q2

  • Slower increase of marketing costs due to the changes in the market environment
  • IT costs higher due to Vermietet.de integration and increased AWS costs
  • Selling costs growing moderate due to increased Plus-subscriptions

Revenue and ooEBITDA growth rates have converged to a similar level

Closing the gap in ooEBITDA margin comparing 2022 with 2021

Closing in on generating operating leverage on the back of strength of core business and coming out of investment period

Strong EPS growth

(€m) Q3
2022
Q3
2021
+/- 9M
2022
9M
2021
+/-
Ordinary operating EBITDA 63.9 54.5 +17.3% 184.6 164.7 +12.1%
Non-operating effects -10.2 -2.4 +326.9% -17.8 -11.3 +57.1
Reported EBITDA 53.8 52.1 +3.2% 166.8 153.4 +8.8%
D&A -8.3 -14.9 -44.1% -31.1 -42.7 -27.2%
EBIT 45.4 37.2 +22.2% 135.7 110.6 +22.7%
Financial result 0.3 -1.9 +116.5% -20.5 -7.5 -171.6%
Earnings before Tax 45.7 35.3 +29.4% 115.2 103.1 +11.7%
Taxes on Income -13.0 -11.3 +14.8% -35.6 -32.6 +9.2%
Net income 32.7 24.0 +36.6% 79.6 70.5 +13.0%
Basic
EPS
in
0
42
0
29
7%
+47
1
01
0
79
+28
4%
Adjusted
EPS
in
0
51
0
39
+31
5%
1
40
1
10
+27
9%
Weighted
shares
#
av
2
77
83
5
5%
-7
78
9
89
7
-12
0%
  • Non-operating effects increased significantly due to higher sharebased compensation
  • Financial result in Q3 is not impacted by managed liquidity anymore due to the termination in Q2
  • Highly accretive EPS profile catalysed by share buybacks

We distributed ~67% of the proceeds from the AutoScout24 sale to our shareholders via share buybacks

Since April 2020, Scout24 returned ~67% of the net proceeds from the AS24 sale to shareholders via share buybacks

• Capital reductions of in

Narrowing FY 2022 guidance towards the upper end of the range

Q&A

Next event: Preliminary FY 2022 results 28 February 2023 at 3pm CET

Filip Lindvall – Director Group Strategy & Investor Relations

[email protected]

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