Investors Presentation mdf.to - September 2020 - Mediagrif
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Investors Presentation
mdf.to
September 2020
Forward-looking Statement
This document contains certain forward-looking statements with respect to the Company. These forward-looking statements, by their nature,
necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-
looking statements. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the
reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect since
they are subject to risks and uncertainties that affect us.
We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by applicable securities legislation.
All amounts are in Canadian dollar
These assumptions include, without limitations:
• No significant change in the current value of CAD$ vs. US$
• No significant increase or decrease in revenues and operating expenses
• Stable market conditions
September 2020 | TSX: MDF 2
A 20 Year Transformation
From a digital media 16+ successful Business now focused on
company to a SaaS digital acquisitions over the high-growth Strategic Sourcing
commerce company past 2 decades and Unified Commerce
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Marketplace Development M&A Diversification B2C Incursion Digital Commerce
The Broker Forum, PowerSource Supply Chain, Strategic Sourcing LesPAC, Réseau Contact, Growth and Market Share
Online, Carrus, Global Wine & Spirits, Jobboom
Polygon
September 2020 | TSX: MDF 3
New identity
Why we are changing our name
unify simplify amplify
September 2020 | TSX: MDF 4
Brand transformation
September 2020 | TSX: MDF 5
Employee video
September 2020 | TSX: MDF 6
Management team
Luc Filiatreault
President and Chief Executive Officer
Shared Services
Julie Bélanger Paul Bourque Hélène Hallak André Leblanc Camil Rousseau Catherine Roy
Vice President, Chief Financial Vice President, Corporate Vice President, Chief Technology Vice President,
Human Resources Officer Development and Chief Marketing and Public Officer Transformation
Legal Officer Affairs
Platforms
Mark Eigenbauer Louis Mousseau Andreanne Simon Jean-Michel Stam
President, Strategic Sourcing President, e-Commerce President, Supply Chain President, e-Marketplaces
September 2020 | TSX: MDF 7
Q1
Q1Highlights
2021 Metrics dd text
$20.5M +48% +17%
77% Total Revenue Growth Unified Growth US
MRR Q1 Commerce Strategic
+8.4% Sequentially
Sourcing
11%
Total MRR Growth $1.8M +26%
Over previous Q1 EBITDA YOY Deferred
reporting period (8.8%) Revenue
September 2020 | TSX: MDF 8
Twelve-month review
September 2019 February 2020 June 2020
⚫ Luc joins with the mandate of bringing ⚫ Presentation of 5-year Strategic Plan in Global ⚫ Launch of IR Strategy
mdf back to growth mode Townhall to all mdf employees ⚫ Launch of strategic planning execution review
⚫ Second Investor roadshow ⚫ Launch of Future Office Work Group
October 2019 ⚫ Hiring of VP Product Strategy for Strategic
Sourcing
⚫ Restructuring of Management team July 2020
March 2020
⚫ Launch of M&A roadmap exercise
November 2019 ⚫ Launch of new MRR credit facility project
⚫ Hiring of Supply Chain VP Sales ⚫ COVID-19 start – Work from home
⚫ Logic is now a new ecommerce partner
⚫ First investor roadshow in 5+ years (Montreal,
Toronto, Calgary, Vancouver) ⚫ Hiring of Orckestra VP Sales
⚫ First earnings call in a very long time
April 2020
⚫ COVID-19 contingency planning
August 2020
December 2019 ⚫ Surge in grocery ecommerce
⚫ Reporting of first SAAS KPI quarter
⚫ Third investor virtual roadshow
⚫ Acquisition of new ecommerce Company ⚫ Signing of first Strategic Sourcing customer in
⚫ Launch of rebranding project (Renegade) Europe – NHS
May 2020
⚫ Hiring of K-eCommerce VP Sales September 2020
⚫ Raised $16M bought deal
⚫ AGM
⚫ Hiring of VP of HR
⚫ Rebranding of Company
⚫ Launch new Merx.com platform
⚫ New board member from California
⚫ mdf presents at TSX Technology Investor Day
September 2020 | TSX: MDF 9
5 Year Transformation Trajectory
$250M
Revenue 20-25%
$80M
Ebitda Margin 40+
8%-12%
Rule Of 40 $1B
13
Market Cap
$100M September 2020 | TSX: MDF 10Selling Success Year One
New clients
Strategic Sourcing
• + 244 Buying Organizations
• + 18K Suppliers
Unified Commerce
• + 2 Enterprise Clients
• + 113 SMB Clients
• + 479 Supply Chain Clients
emarketplaces
• + 1,155 Clients
• + 80K Members
September 2020 | TSX: MDF 11Monthly Recurring Revenue Trajectory
mdf commerce MRR Growth
Total revenue $ % of recurring over total revenue
17 CAD 100%
Millions
MRR Q1 YoY: +11%
MRR / sequential: +3% 90%
16 CAD
80%
15 CAD 70%
Deferred Revenue
60%
14 CAD
50% +26%
13 CAD
40%
12 CAD 30%
20%
11 CAD
10%
10 CAD 0%
Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21
September 2020 | TSX: MDF 12Platforms
Substitute - Mediagrif
Platform % Rev Focus Offer Market ARR Competitors
Disrupt Advantage
Periscope
Breadth of
eProcurement software Bonfire
Strategic Public Entities and offering and
42 Growth and eTendering with $29M eSolutions Fragmented
Sourcing Large Enterprise Scope of
200k participants Negometrix
Network
Mercell
Enterprise and
Adobe
End to End eCommerce mid-sized retail – Price, Speed,
Unified Commerce Tools Oracle
38 Growth for mid-market to Growing $23M Flexibility, richer
Commerce Elastic Path Salesforce
Enterprise specialization feature set
SAP
in groceries
Marketplaces for
End-User, some
Diamonds, electronic Fragmented Fragmented Established
eMarketplaces 20 Earnings marketplaces local, N/A
parts, automotive, jobs, by vertical by vertical brands
other int’l
dating
September 2020 | TSX: MDF 13Strategic Sourcing
Strategic Sourcing – Platform Footprint
September 2020 | TSX: MDF 15Strategic Sourcing
Platform
SaaS eProcurement platform One of the largest supplier
connecting 3,000+ buyers to networks in North America
200,000 suppliers
Market – US$10B market by 2023 with +10%CAGR (1), massive market
opportunity
Organic Growth Plan
• Adding more US sales capabilities and cross-sell/up-sell resources
for current base
• Investing in new AI features to extend product for cross-selling & increase
contract stickiness
M&A Growth Plan – Fragmented market ready for consolidation –
Many accretive US acquisitions
Q1 F21 KPIs : 94% MRR – +5% YOY Revenue Growth - +4% Sequential
September 2020 | TSX: MDF 16
(1) Source: MarketWatch – Procurement Software Market Valuation - October 15, 2018Strategic Sourcing Platform
Current Customers Recent Notable Wins
3,000 buyers and 200,000 supplier network The Canning Group (17 new agencies in
New Jersey) total of 77 new active buyers
National Health Services - UK
September 2020 | TSX: MDF 17Strategic Sourcing MRR Growth
Strategic Sourcing MRR
7 400 000 CAD
7 200 000 CAD
7 000 000 CAD
6 800 000 CAD
6 600 000 CAD
6 400 000 CAD
6 200 000 CAD
6 000 000 CAD
T4 AF18 T1 AF19 T2 AF19 T3 AF19 T4 AF19 T1 AF20 T2 AF20 T3 AF20 T4 AF20 T1 AF21
September 2020 | TSX: MDF 18Unified Commerce
The Surge
How fast is the world moving around
us? Consider how quickly ecommerce
has replaced physical channels in
three months.
September 2020 | TSX: MDF 20Unified Commerce
Platform
End-to-end seamless Extends from enterprise
omnichannel ecommerce platform to SMB
Proven agility for rapidly 52% surge with COVID-19
evolving eCommerce landscape Pandemic
Market – US$ 10.4B US eCommerce market by 2025 (1) with 12-15% CAGR,
B2B Valued at US$ 12.2T globally (2)
Organic Growth Plan
• Expanding sales capabilities with a focus on US markets & cross-selling
• Product Development: Improved deployment speed, agility, scalability & feature set
• Adding AI recommendation features, and more advanced BI.
M&A growth plan – Acquiring to further disrupt legacy players like Oracle, SAP, Adobe
& consolidate competitors e.g. k-eCommerce
Q1 F21 KPIs: 60% MRR - +48% YOY Revenue Growth - +22% Sequentialà
September 2020 | TSX: MDF 21
(1) Source: Research & Markets, Digital Commerce Software Market – Growth, Trends, and Forecast (2020-2025), Jan 2020
(2) Source: Research & Markets, Global E-commerce Software Market Size…and Forecasts, 2018 To 2026, Sept 2018;Unified Commerce Platform
Current Customers Recent Wins
650+ clients including SQDC, Sobey’s, IGA, 40 additional SMBs added to client list - 21 from 1 partner
Black&Decker, Subway, BRP, Groupon, Sports Experts. 1 Enterprise client including a significant grocery retailer
September 2020 | TSX: MDF 22Unified Commerce MRR Growth
Unified Commerce MRR
6 000 000 CAD
5 000 000 CAD
4 000 000 CAD
3 000 000 CAD
2 000 000 CAD
1 000 000 CAD
0 CAD
T4 AF18 T1 AF19 T2 AF19 T3 AF19 T4 AF19 T1 AF20 T2 AF20 T3 AF20 T4 AF20 T1 AF21
September 2020 | TSX: MDF 23Capital Markets
Capital Markets
Ownership Summary
6%
Market Cap (in MM) $148.5
Institutions
Shares Outstanding 17,960,870 15%
Enterprise Value (in MM) $158.4
Individuals/Insiders
13%
Current Share Price (9/25/20) $8.44
52 Week High/Low $8.73 / $2.22 VC/PE Firms (>5% stake)
Consensus Target $9.00
Public and Other
66%
Stock Chart Research Contributor Analyst
9,00
,80mm
8,00
Nick Corcoran
,70mm
7,00 ,60mm
Maher Yaghi
6,00
Share Price
,50mm
Volume
5,00 ,40mm Amr Ezzat
4,00 ,30mm
3,00 ,20mm Nick Agostino
2,00 ,10mm
1,00 0
Richard Tse
Deepak Kaushal
September 30, 2020 25Comparable Valuations
Median EV/Sales 13.2x; MDF 1.87x
NTM EV/Revenue
50,00x
45,00x
40,00x
35,00x
30,00x
25,00x
20,00x
15,00x Median = 13.2x
10,00x 1,87x
5,00x
0,00x
Atlassian Corporation…
Paylocity Holding…
ZoomInfo…
Coupa Software…
Zoom Video…
Ping Identity Holding…
PagerDuty
Zscaler
Autodesk
Medallia
Zendesk
Yext
nCino
8x8
Okta
MongoDB
Alteryx
Q2 Holdings
Zuora
Sprout Social
2U
Cloudflare
DocuSign
Paycom Software
Dynatrace
Anaplan
Workday
salesforce.com
Dropbox
Avalara
Cornerstone OnDemand
BlackLine
Pluralsight
New Relic
BigCommerce Holdings
Five9
ServiceNow
Slack Technologies
Fastly
RingCentral
AppFolio
RealPage
Benefitfocus
mdf commerce
Datadog
Agora
Domo
Box
HubSpot
Bill.com Holdings
Guidewire Software
CrowdStrike Holdings
Veeva Systems Inc.
Jamf Holding Corp.
Shopify Inc.
Adobe Inc.
Talend S.A.
Appian Corporation
Twilio Inc.
Smartsheet Inc.
Wix.com Ltd.
SVMK Inc.
Elastic N.V.
Splunk Inc.
Workiva Inc.
(2020) Mkt Cap – CA$ Enterprise Value – CA$
Company Revenue –CA$ (M) EBITDA – CA$ (M) EV/Sales EV/EBITDA
(M) (M)
Shopify Inc. 148,506.0 143,345.9 3,905.27 416.4 36.71x NM
BigCommerce Holdings, 7,030.8 7,420.4 204.26 ( 46.99) 36.33x NM
Inc.
Kinaxis Inc. 4,899.9 4,565.4 312.46 64.73 14.61x 70.53x
Lightspeed POS Inc. 4,151.1 3,937.7 244.96 ( 32.34) 16.07x NM
SPS Commerce, Inc. 3,497.8 3,224.9 425.58 117.76 7.58x 27.39x
Tecsys Inc. 400.8 385.2 121.26 13.48 3.18x 28.58x
Median 4,525.5 4,251.6 278.71 39.11 15.34x 28.58x
mdf commerce 148.5 158.4 83.25 7.98 1.87x 19.85x
September 30, 2020 26
Data sources: S&P Capital IQ Mergermarket; CRM - Customer Relationship Management; SEC – Security; PYMT - Payment/Financials ; ISS - Industry Specific Software;
HCM - Human Capital Management; ERP - Enterprise Resource Planning; SCM - Supply Chain Management; IS - Internet Software.Reasons to Invest
mdf commerce is already
a major Digital Commerce
platform, managing 77% recurring
$Billions annually for gov't, revenue with high
enterprise, and SMBs margins, low
churn and free
cashflow
COVID-19 has
accelerated a global
shift to Digital
Positioned to Disrupting the
Transforming into a SaaS Commerce
dominate US$10B Unified Commerce
Strategic Sourcing growth company like space with an
market Shopify and integrated path from
BigCommerce, but with back-office to front-
free cash flow and office
significantly lower
valuation
September 2020 | TSX: MDF 27Questions?
Toll Free 877 677-9088 Phone 450 449-0102 1111 St-Charles Street West, East Tower, Suite 255 Longueuil, Québec Canada J4K 5G4 mdfcommerce.com
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