Connecting Alaska
GCI Liberty Investor Day Presentation
ALASKA: Not Just Any State
• 665,000 sq. miles
• 1/5 of total U.S. area
- 740,000 residents
- 1/5 of 1 percent of total U.S. population
OUR NETWORK
GCI owns and operates the most advanced network in Alaska.
Our network is secure, resilient, and vast.
We push the limits of what is possible.
COMPANY HIGHLIGHTS
- Largest communication company in Alaska
- Essential service provider
- State of the art technology:
- Alaska's first 5G wireless in Anchorage
- One Gig data available to 75% of Alaska households
- Single integrated IP network
- Bundled products
OUR TOOLKIT
FIBER OPTIC | MICROWAVE | SATELLITE | MOBILE | HYBRID | |
CABLE | WIRELESS | FIBER/COAX | |||
ALASKA'S FIRST 5G
AU-ALEUTIANS FIBER
- GCI awarded $25 million grant
- $58 million total project cost
- 800 miles of submarine fiber
- Serving five isolated communities and the nation's largest fishing port
- In service in 2022
COVID-19 RESPONSE
- Distributed workforce model
- Network remains resilient despite a 25% increase in traffic and 11,000 new HSD subscribers
- More than 4,000 low-income households receiving connectivity through GCI school partnerships
VIDEO PLACEHOLDER
Liberty Investor Day
Doug Lebda, Chairman & CEO
Forward Looking Statements
Forward Looking Statements
Certain statements herein are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as
amended. Statements contained herein that are not clearly historical in nature are forward-looking. In many cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or the negative of these terms or other comparable
terminology. These forward-looking statements speak only as of the date hereof and are based on the Company's current plans and expectations and are subject to a number of known and unknown uncertainties and risks, many of which are beyond the Company's control. As a consequence, current plans, anticipated actions and future financial position and results of operations may differ significantly from those expressed in any forward-looking statements in the presentation. You should consider the risks in the Company's periodic reports filed with the U.S. Securities and Exchange Commission (the "SEC"), including those described under the headings "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements". You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented herein and we do not intend to update any of these forward-looking statements except as may be required by applicable law.
Non-GAAP Financial Measures
This presentation includes unaudited non-GAAP financial measures, including Adjusted EBITDA, Variable Marketing Margin, and the ratios based on these financial measures. We present non-GAAP measures herein because our management believes that such information provides useful information about our operating performance.
Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. The presentation of non-GAAP financial measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in
accordance with GAAP. See the Appendix for a reconciliation of non-GAAP financial measures to the comparable GAAP measures.
Industry Data
This presentation also contains industry data, forecasts and other information that we obtained from industry publications and surveys, public filings and internal company sources. Statements as to our ranking, market position and market estimates are based on independent industry publications, government publications, third-party forecasts and management's estimates and assumptions about our markets and our internal research. While we are not aware of any misstatements regarding our market, industry or similar data presented herein, such data involve risks and uncertainties and are subject to change based on various factors.
2 | 2 |
Leading Platform and Brand Built Over 20+ Years
1996 | 2000 | 2003 | 2008 | 2012 | 2013-2018 | Today | Tomorrow | |||||||
Founded | IPO |
Sale | Spun |
out | |
to | |
from | |
IAC | |
IAC | |
Strengthening | ||||||||||||
Leading | ||||||||||||
Expanded | the Consumer | |||||||||||
Exited | ||||||||||||
Online | ||||||||||||
Mortgage | Non- | Relationship | ||||||||||
Marketplace | ||||||||||||
Origination | Mortgage | § More Options | ||||||||||
for financial | ||||||||||||
Business | Offerings | § Personalization | ||||||||||
services | ||||||||||||
§ Deeper Engagement | ||||||||||||
3 | 3 |
Industry's Most Comprehensive Offering
Digital Marketplace Enabling Consumers and Providers to Shop for Each Other
Free Credit Scores
Tools & Resources
Ratings & Reviews
P2P
Small
Business
Lenders
Consumers
Access to MultipleOffers
Efficient
Customer
Acquisition
at Scale
Highly Targeted,
Predictable Volume
Clicks, Calls and
Data Referrals
Real-Time
Reporting & Analytics
Mortgage Lenders
Lenders
Insurance Auto
Carriers Lenders
Retail
Banks
Credit Card Student
Issuers Loan
Lenders
Providers
4
Massive Market Opportunity
~2%
Est. share of defined TAM
~4%
Est. share of Served Market
Topline grew at 42% CAGR
from FY'16-FY'19
Adjacent
Opportunities
Defined
Addressable
Market
Served
Market
Core
Market
~$44.1B(1)
U.S. Financial Services and Insurance
Ad Spend
~22.9B(2)
U.S. Financial Services and Insurance
Digital Ad Spend
~$6B(3)
Direct Competitor Referral Revenue
across Core Products
$0.9B(4)
TREE Revenue
- $28.0bn U.S. financial services ad spend estimated based on eMarketer, digital ad spend / traditional ad spend ratio of 1.4:1 and $16.4bn financial services digital ad spend in 2020. $16.1bn insurance ad spend estimated based on EverQuote report "The Insurance Industry Secular Shift Towards Online Shopping 2019".
- $16.4bn U.S. financial services digital ad spend estimated based on eMarketer, "U.S. Total Media Ad Spending", "U.S. Digital Ad Spending Update Q2 2020", "U.S. Financial Services Digital Ad Spending 2019" and an assumption that 12.2% of
total ad spend in the financial services sector based on historical data. $6.5bn Insurance digital ad spend estimated based on EverQuote report "The Insurance Industry Secular Shift Towards Online Shopping 2019".
Company filings and internal estimates.5 LTM as of Q3 2020.
Capitalizing Through Category Expansion
Revenue
($ in millions)
$350
$325
$300
$275
$250
$225 $200
$175
$150 $125 $100 $75 $50 $25
$0
FY '15
30%
70%
Home Consumer
Acquired
Acquired
Acquired
FY'19
2%
25% | Home | ||
26% | Consumer | ||
Insurance | |||
47% | Other | ||
Acquired
Acquired
Acquired Acquired
Minority
AcquiredAcquired Investment
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18
Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20
Home | Consumer | Insurance | Other | 6 | |||
6
Evolving the Platform through My LendingTree
From the Old Transaction Model… | …To the New Relationship Model |
Episodic transactional interaction | Personalized recommendations across products |
BuildingStrong,RecurringUserEngagement
7
Driving Engagement by Promoting Financial Wellness
my | ||||
Product Breadth & Smart Alerts | ||||
Driving Customer Retention | ||||
Delivering Engaging Consumer Experiences | ||||
Proactive Savings Recommendations Through | ||||
Dashboard | Financial | Rich Data & Analytics | ||
Future | Providing Leverage to Paid Marketing | |||
Credit Score | ||||
Cash Flow | ||||
Details | ||||
Relationship-based Model Gaining Momentum | Creating Significant Value for Users | |||
+15.7M | +500K | +$80M | Credit Lift | Credit Score | Highly Engaged |
Total | New | FY 19 Revenue | >50% | >50 pts | >70 pts |
Users(1) | Users(1) | Contribution | Customers | Average Improvement | Average Improvement |
Improve Score in the First 6 Months | Achieved in those with Lift | Achieved by High Engagers(2) |
1) | As of Q3 2020. | 8 |
2) | Engaged with MyLendingTree more than 20 times in their lifetime. |
Robust Growth & Attractive Financial Profile
($ in millions) | Revenue | $1,107 | ($ in millions) | Variable Marketing Margin | ||||||
$1,200 | $460 | |||||||||
(1) | ||||||||||
80% | ||||||||||
$1,000 | 42% | $400 | $396 | 70% | ||||||
CAGR: | 41% | |||||||||
$800 | 3Y | $765 | $340 | 3YCAGR: | 60% | |||||
$618 | $280 | $286 | 50% | |||||||
$600 | $384 | $220 | 37% | $207 | 40% | |||||
$400 | 37% | 36% | 30% | |||||||
34% | ||||||||||
$160 | $141 | |||||||||
20% | ||||||||||
$200 | $100 | 10% | ||||||||
$- | $40 | 0% | ||||||||
2016 | 2017 | 2018 | 2019 | 2016 | 2017 | 2018 | 2019 |
Growth Rate (%) | 51% | 61% | 24% |
Adjusted EBITDA | ||
($ in millions) | (2) | |
$250 | ||
45%
Growth Rate (%) | 49% | 47% | 38% | 38% |
Highlights
$200
$150 18%
$100
$70
42% 3YCAGR:
19% $153
$115 | 20% |
$198
18%
25%
23%
21%
19%
17%
15%
ü Highly diversified revenue streams |
ü Flexible model enables long-term orientation while |
delivering near-term profitability |
ü My LendingTree & cross-platform synergies drive |
$50
$-
2016 2017 2018
Growth Rate (%) | 71% | 66% | 33% |
2019
29%
13%
11%
9%
structural margin improvement over time |
1) | Variable Marketing Margin is a non-GAAP metric. See appendix for reconciliation. | 9 |
2) | Adjusted EBITDA is a non-GAAP metric. See appendix for reconciliation. |
Weathering the Pandemic
- Flexible model & diversification enable sustained cash generation
- Solid balance sheet and liquidity profile remain unencumbered
- Strong competitive position creates opportunity for market share gains
Segment | COVID-19 Impact | YTD Growth in | Outlook | ||||||||
Segment Profit(1) | |||||||||||
+32% | • Reduced interest rates, surging refi activity | ||||||||||
Home | and home demand drive market strength | ||||||||||
• Expect to further strengthen leading | |||||||||||
competitive position | |||||||||||
(50%) | • Consumer lending remains constrained | ||||||||||
Consumer | • Will return with improving employment and | ||||||||||
consumer spending | |||||||||||
• Strengthening partnerships amidst downturn | |||||||||||
+14% | • Brief slowdown in consumer shopping | ||||||||||
Insurance | activity is behind us | ||||||||||
• Digital evolution in the category is nascent | |||||||||||
but accelerating | |||||||||||
1) Year-over-year VMM growth for the nine months ended 9/30/20. | 10 |
Key Investment Highlights
Market-leading Personal Finance Platform
Massive Market Shifting to Digital
Comprehensive Offering & Dominant Brand Create Sustainable Moat
Diversified Revenue and Flexible Model Provide Durability
Strong Track Record of Strategic Growth and Prudent Capital Allocation
11
Attachments
- Original document
- Permalink
Disclaimer
GCI Liberty Inc. published this content on 25 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 November 2020 14:32:06 UTC