Investor Q&A

May 17, 2021

Hi. Good morning and good afternoon and good evening to all of you around the world. This is a press meeting with Bambuser. My name is Simon. I'll be off camera today to give the opportunity to our 2 great fantastic people that are on camera with me today and that is Marion Ghermani, the CEO of Bambuzer as well as Martin Gorbachek, the CRO of Bamboozer and also the founder of Relatable. And I think it's a great opportunity to actually most of you know the company Bamboozer since before, So we thought we would start off with a brief introduction to what Relatable is. Please take it off, Martin. Thank you, Simon. Good morning, good afternoon and good evening I guess somewhere around the world. My name is Martin Garbarczyk. I'm super excited to be joining here today and I'm going to give you short background of Relatable and what we've achieved shortly in the last couple of years. So switching over is that this is how our clients globally. We position ourselves. But to give you a short background was that we created Relatable 5 years ago from pure frustration that We wanted to challenge the status quo when it comes to influence marketing in a good way and just create something that is smarter, more effective to reach different KPIs that our clients saw when working with influencers. But we are today a global strategic influence marketing partner. We're proud of ourselves with our own proprietary technology that we built in house for the last 5 years. But today and what we're going to see in the next slide is that creativity and strategy is everything and that's why I think this merger or acquisition is such a fantastic match made in heaven. We can switch slide. In short, we are a company built on tech and data information. We have had an audience first approach from day 1 since we firmly believe that the world of influence marketing should be talent independent. So we didn't want to create an in house talent management system or something. What we wanted to create was let the audiences tell us who are the most influencer, influential people around the world and let's just share and connect them in an interesting in just an interesting way of on their own terms. So we have our own systems, technology and data. We proud ourselves to also that in the last 5 years we do, we've been managing over 25,000 collaborations globally in 50 plus different markets on basically all continents. We have a team of 40, 45 people that are experts in this field. And What I want to add and what's super important because this has changed the last couple of years is that the whole space have changed in creativity and strategy, concepts and formats of the most important parts today. Our clients are seeing tech as commodities today and data because you can easily get that online, creativity, strategies, everything. That's why we have had a pretty strong success in the last couple of years. And when thinking of relatable is we see that it's like influencer marketing created effectively. It's built on 3 different key pillars and this is the solutions we created for our clients during these last where it's all started off with the influencer distribution part where we have an index where we connect people with brands so they can actually amplifying get the word out to their own audiences and peers in a smart way. What we've seen as well is that traditional influencer today. We don't see that as an influencer. We call it actually creators internally because these people are fantastic content creators. They are amazing videographers. They produce storytelling and narrative in an authentic way that nobody else can actually do. So we produce a lot of content today for our clients so they can use across their own different organic channels and marketing efforts globally. And then of course, since we are partnering up with the big tech firms who are going to come in shortly is that we use all the different amplified media branded content ads formats that they're having. So we can take the content that we're producing from the creators and have a much longer longevity in the attention and actual reach and everything that's necessary to actually use the platforms correctly. So it's built on 3 key pillars and this is why we have had the success that we've had in the last couple of years. We operate as Babbooster as well from head office here in Stockholm. We have a team in London. We have a team in New York. So it's a lot of co locations. There's a lot of good synergies when it comes to that thing. We're super excited. We have had a lot of just collaborations already between the teams on each markets. Probably going to touch upon the Samsung partnership maybe down the road. But yeah, this is where we operate from. But we have done campaigns in 50 plus different markets globally. We're proud of ourselves. I sometimes actually call this the nightmare board and not the dream of Braggboard because why I called Nightmareboard and it's it is with a charm and twist to it is because These companies and these marketing teams, they know what they're doing. They don't like when people are coming into them and say like, hey, influencer marketing is the new black. The guys over at Google, the guys over at Absolute, the guys over on Klarna and all the different brands on this list, they have turned to us when they want to take things to the next level. So that's why I call it it's fantastic opportunities. But I also highly, highly valued to work with people that are challenged the status quo. So we see some fantastic also synergies around this and I think we're going to come into that how we can to amplify our business and create our SaaS models in a very different way with Samsung as a fantastic example. And we also, of course, are teaming up with the big tech platforms. It's the Instagram, it's the YouTubes, it's the Googles, it's TikToks. We've always have proud of ourselves in the last year of having that live video shopping kind of company, Bambuser, and in all our presentation that got a lot of attention from many of our clients. And then we are also very proud that 18 months ago when Conde Nast, which is one of the most exclusive publishers in the world without in a big global pitch among 20 agencies where we were one of them and We were super proud when we actually won the whole partnership and today we work as the back office for Vogue and GQ to leverage all the influence marketing efforts that Conde Nast is delivering for their clients, Samsung being one of them. Massive campaign at the moment in 13 different markets globally. So that's a short about relatable hopefully that covered and more than happy to answer any Q and As later on. Thank you. Thank you very much, Mark. And that is a great start. So for all of you who are watching and listening in, you can submit your questions. So below the screen you have the option to ask a question. You can submit with your name and your question there as well. And if you want to, you can also submit your questions anonymously by emailing IR as an investor relations, irbamboozer.com and I'll bring up your questions shortly. So we've heard a little bit from Martin now. So we go back to Mariam. So Why now? Why acquiring Relatable and why now? So it started off as a partnership Last year in August when we first met. And I think that what we why did we go into a partnership About a year ago, while we saw a demand on the market for something like relatable added to what we're offering as a software to our clients. So the biggest challenge you have when you're going to produce a live stream It's 2 things mainly. The first one is being traffic. How could I drive traffic to my live show? And the second one being who should host the live show? And I think that's if we can solve those two key points for our customers, then they're going to have a much better lifetime value When they acquire customers to Live Video Shopping and in the end of the day, we will add more business value to our customers with this acquisition. I think that is the first one. The second one is that I always say that the talent is The most important thing when you build a high scaling company like Fambuser. And I think when Me and Martin met and the teams met. We just felt that we have the same energy. We are in the same vision and mission to really transform and innovate the market. And we felt very aligned in what we're going to achieve in our different roles, but now, of course, as one team, I think. And adding 40 new ambassadors and a Chief Revenue Officer over one day, it's amazing. It makes our business scale even faster and accelerates the growth of Ambuzer even faster and even better. And I think also with extensive and background that Martin has, but also relatable working data driven, growth driven and coming from the SaaS side. I think that is going to add a lot of value to our organization when we're going to, of course, scale up things within live video shopping. So I think in the end of the day, if you summarize everything, we're adding business value and we're adding a lot of competence to bamboozer, but also to our clients that are demanding this. They are going to other agencies. They are paying too much and they're getting very not as good as KPIs as we believe they could have. Not that we could actually offer them something that we know makes sense And that can deliver on the KPIs that they have. We're adding key talent and ambassadors and going into 1 and same group, which will fuel the growth of Bambuser even much faster. And I think the last piece of it is, of course, differentiation. So when we went live with our We offer the live streaming solution. If you look at the market today, it's pretty crowded and it's going to get even more crowded in the coming years because this is going to explode in the Western world. And I think with Relatable being a bamboozer company and not fully integrated, but almost fully integrated into what we're doing, We can actually differentiate from the competition that is out there today even more than what we're doing today. Grade. Thank you very much, Mariam. Going back a little bit to Relatable. So we got a question asking about the financial development of Relatable. Any comments on that? Yes. Thank you for the question. I mean, we will I think I proud of myself that we have built the whole company with our own hands and our own brains. We are not I brought in any money or funding throughout the years. We've been profitable from day 1. We've had a pretty decent growth in the 1st couple of years. We reached over 12,000,000 in dollars in revenue. We've been having a positive EBITDA all through the 1st years. Last year, of course, it was a COVID year where we had a number of clients like Caesars Palace in Las Vegas that just shut down the whole city, which was pretty tough to conquer when it comes to these kind of things. Looking at the beginning of this year, we've had a phenomenal start of the year. We are on the highest numbers we have ever been in the quarter and the beginning of the year. So, yes, we see that we can add a lot of top line revenue, positive EBITDA revenue as well. But I think that The biggest thing looking at why I am so excited doing this is because we have a phenomenal case that we scaled from 1 small market today that one of the biggest brands in the world are global partner to Samsung and I think that adding The teams, the competence of creating this is that 1 plus 1 equals 3 I think when it comes to driving the business together. Thank you, Martin. And we have a question actually from Marion about the sort of like the biggest synergies that you see on the revenue side when looking at the 2 companies. So I think I'm going to go back My first question. So we see a big opportunity in terms of costal and upsell. I think we will still Keep the name Relatable because what Martin said, you have done a fantastic and phenomenal job the past 3 years as positioning Relatable as a global player within thing and campaigns, and I think we want to continue that. We don't want to kill that strong brand. So that's why also we're keeping Relatable And it will become relatable of a loser company. We will move over Martin because it's really important. And I think also from our end it has really been hard to find key competence who can build global sales and growth things. And we're very happy to have Martin on board of that. So I think the synergies, 1st of all, will be that adding 40 more people to 2 Vabuzum, more or less, that could sell and upsell and between the companies. I think you have amazing brands that you have worked with. We have amazing brands. And I think at the end of the day, We are doing this acquisition to fuel Babouser sauce business. And that's what That's the main focus and the main synergies. How could we build the long term revenue and how could we grow that even more faster than what we're doing already Together with Martin and his team, but also building, of course, the new team internally. Thank you. So this is a question up in the air. Will you bundle Live Video Shopping with Relatable's offering or will they still remain as 2 separate offerings? Both. They will still remain as 2 separate offerings, so you're not entitled or you don't have to buy The both companies in 1. But of course, as I said before, I mean, we are seeing our clients going to a lot of agencies, taking help from a lot of independent advisers, and we're seeing what they're paying and the results, and we believe that we could do it much, much more better. That's not the core of a loser. We cannot become that relatable. That's it's the core of relatable. And I would say we have done our homework and our research. We believe that they're the best in the world at this, and we believe the synergies there will be amazing. So yes, it's the question is both. You can both buy bamboozer and Relatable and you can both combine the companies in 1. And that's why we're keeping their Relatable brand once again to be able to run independently out of a booster. But once again, we are in a very early stage of live video shopping. It's really growing for month over month and year over year. And I think the combined expertise is what's important. So we can learn a lot from each other Instead of just taking away what you have built up within 3 years and your network and then pushing it in, bamboozer, it wouldn't feel like that would kill all the synergies. I would like to add to the things to that because I think that my experience from working with SaaS products or do it yourself platforms where you know, you let in people and hopefully it's going to be as easy as Facebook ads or Google ads and it just flies. My experience is that when you add competence of actually using platforms strongly and smartly with creative services in the world of bundles, in the world of like truly, truly use the power that the software is having. That is when you truly see the MRR numbers going up. You see ARR and you see like all of those like different numbers that we want to see from a strategic point of view, which I think is perfect match in this as well is that we can go from upsell to cross sells definitely. But I think that what we're going to see is that we're going to attract also clients with a lot of interest from different parts of use. And I think that that will be a very, very important thing like building up the global sales organization of software and our whole SaaS offering is crucial. We will get light starter, all of those things flying tremendously from a technology point of view. But I think that building on that with the creative services, I think that that's over time that is where we want to be. And we have already mapped of number of the clients that we know that are already like super encouraged to do speaking to us about this. So that's what I'm really excited about because like to really amplify the power of a super strong SaaS scalable technology and add creative know how to it. I think that's the most exciting, I think personally that what we're going to see here, I'm going to see really, really strong numbers from that. Super combo. Supercombo. Thank you very much. And just a friendly reminder to everyone listening in that you can submit your questions either down here on this page, you can click on ask a question, fill in your name and your question or you can send an email to irbamboozu.com. Going back, Martin, you mentioned in your presentation that you guys are working with TikTok, Instagram, YouTube and a lot of different creative platforms, will that then mean that you will work or when I say you, I mean relatable, will relatable work exclusively with end user customers moving forward? Regarding live platforms or Yeah. Will you sell only to Bamboozle customers or will you keep business as usual? You're working with customers outside of them, Lucy. Yeah. I think coming back to what Mariam said in the beginning, it's like how do we get the viewers that we're after, Right. How do we get the people to the live show on your own brand site, on your own environment where you control it? And I think that It's naive to think that we don't need to use the social platforms that are out there. I think it's when we saw on the successful live shopping is that, yes, we will continue pushing out messaging and everything on social media platforms. We also need to build it up into loyalty, of the member clubs into all of those like different internal like marketing organic channels that are out there. Some of our clients are already doing TV ads to drive traffic. But I think that what we're seeing and what I know from talking day to day with massive brands all around the world is that the live concepts on The big tech platforms are fantastic, but there are missing a couple of bits that I know that Bambuser is sounding in the way that they really are after. So I think that yes, we will use the power where people are to drive the right audiences and to drive the right clients to activate and to truly have a great live shopping experience for our clients. But that needs to be in an environment that we control together with the brands. So Cool. Thank you, Martin. And I'm And I can just add to that, Simon. I think once again, I think when We speak about Bamboozer. I mean, we are in collaborative with the big platforms. It's not eitheror, it's both. So it's a very organic channel where you drive traffic from social to your website, from your website to social. So it's like a very what happens When you go out on your brand website, it's just fantastic because you're actually seeing your social channels wakens up and they become live. So I think what we see is a very organic channel where you need to use your social platforms, your internal Systems where it could be newsletters, website, SMS, text, WhatsApp, and then combine that with the livestream. And that's What makes the live stream fantastic and viral because we want it to be viral. So I think it's great that we have those relationships that we have with the big platforms and for us too. So once again, the future of Live is not eitheror. You have a brand website and you have a presence on social and it's both and the power comes from winning from both sides. Thank you, Mario. We got a question about whether you can reveal the ARR for relatable. I don't think that you're at liberty doing that. But another question that we got Eric Carlson is about sort of the finances of relatable and whether you can give us an indication of sales or EBITDA for relatable in 2021. How has the 1st couple of months been for you? I am allowed Say that right. I'm pretty new today. We're on the public. Yeah. So I think that we're seeing a super strong we have a budget this year, if we can mention that. Can we mention that? Let's mention how it's been so far. Okay. So this year has started off really, really well. We've had a record February when it comes to revenue, invoice revenue. We're seeing a really, really strong month coming in, in May. That's going to be a record month. So we're for up on soon the SEK50 million booked revenue for this year, which is very strong beginning of our year because H1 normally when it comes to media investment is a bit slower than H2. But We are very confident and very happy about the starting of this year and we see some really, really great big clients spending more and more money I actually received our biggest client an email after they saw this news that they want to have a live shopping and subscription meeting. So I guess it just starts to get people into the books. So now it's that answered the questions. That answered the question. And just to give an indication, is it still are you still plus in Yes. We have a positive EBITDA. Yes. Okay. So far this year. Yeah, we are a positive net in business. Perfect. So I hope that answer satisfies Eric. Then going back a little bit to you and your new role. So you are leaving Relatable and you are joining the management team at Bambuzer as Chief Revenue Officer. What does that role mean? That I'm fully responsible for the revenue and I guess that Mary is going to ask me every morning how is it going. No, but I think that given the background of my background is that I've been working in the SaaS space for a while. I started off with SaaS back in 2008 with my news test where we scale that up from Sweden out throughout the Nordics, throughout the world. I work with social media monitoring. I've notified scaling that business up. I've been in this space for a while. So I think I'm super excited to be going back much more into it. But I'm also most important is that For me, it's so important to work with products that you truly love and you truly can stand behind and technology that I know will change results for our clients. And I think that that's the reason why, you know, when we teamed up, like I sourced the whole market before. Like it just happened to be that Bamboozer was like 1 kilometer away from our office. But That was just like a weird coincidence because I've been my first live with Bamboozer was in 2010 in a press release on my news desk, but that's another story. So I think that the revenue is for me, we are having a massive demand. I think that we need to take position. I'm super excited of taking the lead on that, working so close with the lead team of truly get our MRR flying, to get like annual contracts in the making. And just to truly also add that growth kind of thinking of what we want to need to do to build an effective sales organization. I think I've been building a couple of high performing sales organizations and I think that that's what gets me most excited about this because opportunities in creating a just do it yourself swipe it away platform. It's massive and up sells on those kind of things in the true SaaS building. I think the opportunities are massive and that's why I'm so excited about this whole partnership. And I have to jump in and I'm super excited. There's a lot of excitement there today. So I think also That's a good thing to do. Yeah. It's a but also I think going back to energies between companies and synergies and vision and mission and All of those things that are super important when you come together under the same roof. I think for me, I have really been lacking the competence that you have and what you have built in. And once again, it's really, I think, for all software companies in the world, even if you're based in Stockholm, London or San Francisco, it's really hard to find key competence to build things. And I think for me, I'm super proud to add Martin and I feel very, very confident in that relying that Our revenue and our MRR and ARR and our growth in Martin and the team's hand, you're joining an amazing team at Convozer that has already transformed it from 0 to being what it is, but taking it here and taking the next leap and building something new with a very strong CAGR and focus on growth. So very, very much looking forward to working with you on a daily basis. Great. Thank you both. And again, a friendly reminder to submit your questions down below. Just add your question if you have anything to ask Martin or Mariam. And Mariam, can you tell us can we expect something that will be visible already in Q2 when it comes to this acquisition? Is there something in the near future that we can expect? I think that was a good question, whoever who asked that question. I think we have to take it a little bit bit by bit. We're adding marketing now to the team. We are slowly moving into the same offices. You know, we don't have a package ready for bamboozers. It was a lot of fun actually. We have had meetings today back and forth with the different teams. And the sales team at the loser was like, what can we add to the presentation? What can we sell? And it was the same way as relatable. I think we have to take things in the right steps. I think, First of all, it's just joining, understanding each other's business. The transaction will actually happen 1st June. So I think in Q2, it was only going to be 1 month lapping where we actually have the transaction happen. So as I think in Q2, Please bear in mind, we're going to have 1 month together. But of course, I think in the end of the day, we're doing this acquisition to once again to fuel The MRR and the SaaS business of Van Boeser and where we're going to see much better numbers coming out of Q3, Q4 this year, I would say, rather than Q2 because once again, you need to have some kind of transition even if we know we will work very hard and very fast, But you need to have some kind of transition, which is going to be the 1st month when you join the buzzer. Great. We don't have a lot of additional questions. So any final words from you, Martin? No. But I think what I said from I think the day 1 when we met, Mary, The reason why I also reached out to you to set this partnership in the beginning, I know because I've talked client in the last 2 years. I know that this is a fantastic solution for many of the biggest brands and marketing teams out there. I know that this joint synergy in thinking with technology, with creativity and strategy is the key to win this space onwards. So I'm just super excited. I think looking forward to present the solutions already been bombarded on email today on LinkedIn. It's like, when can we chat? What's this? Who are these guys and everything. So I'm just like purely happy, super excited. And it's not only me. We had a town hall this morning with Relatable and you felt the energy like we know each other since way before and it's just an overall excitement because even the most and strategic people see that like this software in the hands with the right tactic, it's a phenomenal results driver. So overall, it's just getting started. Like first meeting is tomorrow, so it's just like get the ball rolling. Great. Thank you, Mariam. What about you, Marianne? What are you looking for? For you. So I think this is our first actually large acquisition in a while. And we have taken a quite big bet. And I think the big bet is on the people, which it always is in all companies. It doesn't matter what you're building. So for me, I'm super We're excited and beyond proud that we joined forces today. And I think once again, Fabrizio is very, very early on in our journey in the live video shopping space. And there's a lot of things that's going to happen. Things are moving quickly and we're living in a society that changes quite rapidly in terms of how we shop, how we behave, how we work with customer service and really, really looking forward to be in the frontline globally, Transforming and innovating live video shopping with the creativity and strategy that you are coming in with. So very much looking Okay. Maarten and Marianne, thank you very much for your time. Please stay put. And thank you to everyone who tuned in, everyone from investors, media analyst and bamboozer fan people who love bamboozer brand. There's plenty of them. So thank you all and we wish to see you all soon again. Thank you. Bye bye.