ASX HOTinvestors.hotcopper.com.au
ANNUAL GENERAL MEETINGHotCopper Holdings Limited
October 6 2017
BUSINESS OVERVIEW
ASX HOT
290,000members
700,000monthly users
170,000email recipients
45,000,000monthly pageviews
11.5minutes/session
A U S T R A L I A ’ S # 1 S T O C K M A R K E T D I S C U S S I O N F O R U M
HotCopper provides a forum for a community of investors engaged with
real-time listed company content, data, and discussion.
The site has operated since 2004 and has grown organically to
become Australia’s largest ASX discussion forum.
E M A I L D I R EC TM A R K E T I N G ( E D M )
Advertising to the HotCopper email database for public
companies and commercial advertisers
D I S P L AYA DV E RT I S I N G
Banner & native advertising displayed on
the HotCopper website
E S TA B L I S H E D R E V E N U E S T R E A M S
CORPORATE SPOTLIGHTLaunched in late-2016, Corporate Spotlight addresses a market of 2,200 ASX-listed companies.
The product is offered on an
annual subscription basis at
$1,000 (ex) per month.
Targets investors the most
engaged investors for each
stock.
Clients receive a dedicated space
above discussion on their stock
for sponsored content, including:
• Company highlights
• Executive videos
• News and announcements
The Spotlight is the first thing
investors see when seeking out
information and discussion on a
stock and can be regularly updated.
CORPORATE SPOTLIGHT PERFORMANCE
As of Q1 FY18, HotCopper has received contracts for over $300,000 in
subscription revenue for 30+ listed clients.
S U B S C R I P T I O N R E V E N U E
The Company recently expanded its sales team to increase its reach to ASX
listed companies.
S T R E N G T H E N E D S A L E S T E A M
Has proven to be an effective tool for companies looking to get exposure
for executive interviews.
V I D E O I N T E R V I E W S
The same video placed on Corporate Spotlight had 448% more views than when just
promoted by the company’s investor relations team.
C A S E S T U D Y 1
Another company received 392% more views for their video on Corporate Spotlight than
when placed on their company website.
C A S E S T U D Y 2
LAUNCH OF iPHONE APPE N H A N C I N G U S E R E X P E R I E N C E
Launched in mid-2017, HotCopper app provides investors with an enhanced
user experience when accessing HotCopper on iPhone.
• Driven by user demand – more than half of the site’s traffic is mobile
• Free to download, users must either login or become a member to access content
• 12-month commercial sponsorship agreement with global trading platform, IG
• Android app in development
8 5 9 0 D O W N L O A D S
1 0 : 2 3 S E S S I O N T I M E
4 R E L E A S E S T O D AT E
Up 16% on mobile responsive site.
Growing steadily, with larger marketing campaign to commence in Q2.
Continuous improvements are being madeto the app to enhance usability.
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EXPANDING THE TEAM
A P P O I N T M E N T O F C E O – B E N N E W P O R T
Expanded sales team, with two new sales staff with significant industry
experience to drive Corporate Spotlight revenue.
S T R E N G T H E N E D S A L E S T E A M
Plans to expand sales efforts in Australia’s Eastern States.
E X PA N D I N G R E A C H
Expanding development team, including additional staff to develop the iPhone and Android apps. Over 70% of HotCopper staff have information technology qualifications.
S T R E N G T H E N E D D E V E L O P M E N T T E A M
Programmatic/header bidding implementation, resulting in increased CPM (cost per thousand impressions) and accordingly, increased revenue.
P R O G R A M M AT I C / H E A D E R B I D D I N G
STRENGTHENING EXISTINGREVENUE STREAMS
Opening up new sponsorship opportunities (e.g. sponsorship of the new email alerts system; co-registration for relevant advertisers).
N E W P R O D U C T L I N E S
Targeting increased revenue per client by offering more bundled packages to generate increased awareness and results.
I N C R E A S E D A R P U
Increasing engagement with industry partners to grow awareness of the company’s product lines.
E N G A G E M E N TE N G A G E M E N T
FINANCIAL PERFORMANCE
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
FY13 FY14 FY15 FY16* FY17*
MIL
LIO
NS
Profit After Tax
Profit Before Tax
Sales Revenue
*Adjusted for one-off items incurred by the company as part of the ASX-listing process, including non-cash options expense (2017: $436k, 2016: $Nil) and group reorganisation costs (2017: $216k, 2016 $379k)
$3.69 million revenue for FY17, up from forecast of $2.69 million
R E V E N U E U P 3 9 % F R O M F O R E C A S T
$2.59 million cash at bank as of June 30, 2017
W E L L - F U N D E D
Shares on Issue 106,985,001
Unlisted Options ex at 25c * 6,500,000
Indicative Market Capitalisation $17,650,000
CORPORATE SNAPSHOT
*Issued to consultants, directors and employees subject to the satisfaction of various performance milestones.
ChairmanA L E C P I S M I R I S
Non-Executive DirectorC O L I N C H E N U
Non-Executive DirectorG A V I N A R G Y L E
Chief Executive OfficerB E N N E W P O R T
B O A R D A N D M A N A G E M E N T
Currently undertaking On-Market Share buy back of up to 10% of the Company’s issued capital. As of 6 October, the company had bought back 3.02 million shares for consideration of $649,118.
C A P I TA L S T R U C T U R EAs at 6 Oct 2017
David Brian Argyle 34.45%
ICM Limited and associated (incl. Somers Ltd) 11.42%
SG Hiscock & Company Ltd 6.72%
Khaki Investments Pty Ltd 5.42%
Rebecca Caroline Argyle 4.71%
Directors 4.07%
S H A R E H O L D E R S
ASX:HOT
Growth anticipated in the number of videos across the Corporate Spotlight product as well as more broadly.
We will also look to increase the number of video ads, which generate CPMs up to 20x more than traditional banner advertising.
A D D I T I O N A L C O N T E N T, I N C L U D I N G V I D E O
MARKET OUTLOOK
Expanding the reach of the HotCopper site to gain a larger proportion of Australia’s 3.6 million direct investors.
I N C R E A S E D M A R K E T I N G A C T I V I T I E S
Grow adoption of HotCopper’s existing advertising products, including Corporate Spotlight, as well as adapting the site to enhance user experience and generate revenue through enhanced ad placements.
G R O W E X I S T I N G R E V E N U E S T R E A M S
THANK YOU.