www.stepstone.com
Ralf Baumann CEO StepStone 9th December 2015
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Market Update
Company Update
Performance & Growth Details
McKinsey investigated the future of online talent platforms
Matching individuals with traditional jobs Matching individuals
with traditional jobs
Post full-time or part-time jobs
Create online resumes of individuals
Search for talent or work
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McKinsey investigated the future of online talent platforms
Matching individuals with traditional jobs Matching individuals
with traditional jobs Online marketplaces Online marketplaces for contingent workfor contingent work Talent managementTalent management
Post full-time or part-time jobs
Create online resumes of individuals
Search for talent or work
Connect individuals and freelance work Facilitate transactions via transparent reputation Assess candidates and fit Personalize talent management Optimize team formation and matching
McKinsey investigated the future of online talent platforms – and divided the market into three segments
StepStone market position
-10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% R ev enue Growth 2014/2015 H1
Revenue Index (average revenue 2014 in € = 100)
eSourcing Companies: Revenue Growth ‘14-H1/’15-H1 (in local/reported currency)
Continued growth above market peers
Note: Xing and LinkedIn include recruitment solutions only (i.e. excl. subscriptions and general advertising), Seek (AU) includes “Seek Domestic” revenues (i.e. eSourcing in Australia) // Source: Company reports
US+Americas APAC Int’l Europe Jobindex Monster Worldwide LinkedIn Seek StepStone Indeed DICE Zhaopin Online
JobsDB Brasil Online OCC Xing Naukri 51Job ’07-’13 ’13-’14 500 200 100 50 0 150 250
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How aggregators work…!
Revenue Sources Revenue Sources
Google AdSense
• Host of pay-per-click ads on Indeed’s websites. Ads usually appear next to job search results
Google AdSense
• Host of pay-per-click ads on Indeed’s websites. Ads usually appear next to job search results
Direct Sales
• Direct approach of recruiters / employers to sell spon-sored links / form
partnerships
Job board traffic expenses
• Job boards acquire traffic from Indeed via sponsored jobs on a pay-per-click basis
Job board traffic expenses
• Job boards acquire traffic from Indeed via sponsored jobs on a pay-per-click basis
1 2 3
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LinkedIn highlights the renaissance of job boards
Global quality of hires Global quantity of hires
Question: Think about your key quality hires in the past 12 months. Which were the most important sources?
Question: How significant were each of the following as a source of white collar professional for your
organisation in the last 12 months?
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StepStone customer with hiring focus in IT and engineering proves strong StepStone performance
350 30 40 300 225 0 375 450 0 825 0 340 150 0 450 1,700 3,700 2,700 Social Network 1
StepStone Job Board 2 Job Board 3
+118% Social Network 2 Job Board 1 9M 2013 9M 2015 9M 2014 % 2015 75% 12% 0% 4% 9% 0% Job Listings
Applications per Job Ad in Germany
StepStone by far with highest resonance and quality of applicants
15.6 3.3 5.1 6.0 2.2 x 2.6 x 3.1 x 4.7 x 7.1 2013 Competitor Competitor Competitor Competitor 2015 17.4 3.5 4.6 3.3 x 2.7 x 3.8 x 5.0 x 5.3 6.5 Source: TNS Infratest 2014 19.0 5.3 5.4 3.7 x 3.2 x 3.5 x 3.6 x 5.1 5.6
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A portfolio of leading brands
StepStone countries & brands
Germany UK Belgium Ireland South Africa Austria France Northern Ireland Luxembourg Central America Caribbean Mauritius
20
countries1,500
employees95%+
of revenue from #1 positions
60,000
customers500,000
Listings p.m.44,000,000
Visits p.m.A portfolio of leading brands
65,000
customers
60,000
Total size of our UK & GER markets:
>600,000
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A portfolio of leading brands
StepStone countries & brands
Germany UK Belgium Ireland South Africa Austria France Northern Ireland Luxembourg Central America Caribbean Mauritius
20
countries1,500
employees95%+
of revenue from #1 positions
60,000
customers500,000
Listings p.m.44,000,000
Visits p.m.Source: Internal measurement
1,800
employees65,000
customers550,000
Listings p.m.49,000,000
Visits p.m. 1,500 60,000 500,000 44,000,000Solid revenue growth since 2004 with average growth of 30% p.a. and only one year (2009) with declining revenue
Note: consolidated revenue StepStone Group (schematic)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
262.2 256.4
198.9
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StepStone group revenue 9M 2015
StepStone revenue doubled since 2012 due to balanced organic and inorganic growth strategy
Continued investment in UK
candidate delivery (website conversion and online traffic)
Continuous product update in all markets
Leveraging UK jobboard
cooperation through multi-brand strategy in UK markets
Ongoing optimisation of sales
structure and organisation
Overall EBITDA-margin of
44.9% including acquisitions
with lower margins
2015 – Growth Highlights
Revenue
9M 2015 Organicgrowth Inorganicgrowth FX-effects
262.2
9M 2014:
StepStone M&A activities are unraveled into three components
Job Boards “more of the same”
Objective Profit enhancement through leveraging operational excellence Approach #1 or #2+ with potential Leverage know-how and
capabilities
Approach
Know-how acquisition Speed up time to market Accelerate own growth
Objective
Enhancing our existing product portfolio
Approach
Business diversification Speed up time to market Accelerate own growth
Objective
Leveraging disruptive potential
Capability investments
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40
companies visited Deep understanding of current R&D in Start-ups400
companies researched Holistic overview of trends and upcoming HR related innovationsScreening of US market did not show any surprising developments
0
Highly disruptive threats foundIdeas for technological advancement and product
FC 2015 2014 2013 4,7% 6,4% 8,0%
StepStone sets up for future growth – Transformation into a high-tech organisation with focus on Product and IT development
67 122 10 136 FC eoy 2015 1.804 IT development Other eoy 2014 1.469 Product development Sales and Customer Service Revenue Capex Development Headcount Development Revenue and Capex
779 82 241 377 +15% +12% +51% +18%
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Widening of our E-Sourcing activities increases coverage of hiring process and adds value to all stakeholders
Start job search Job matching Browse jobs Research employer Research salary Interview Apply Hire Personal development / Career Advice Product Portfolio Today
Widening of our E-Sourcing activities increases coverage of hiring process and adds value to all stakeholders
Start job search Job matching Browse jobs Research employer Research salary Interview Apply Hire Personal development / Career Advice Project Skylight
Salary information and
comparison
Useful insights for job
seekers into corporate culture and working atmosphere
Reviews are open for
comments and help
employers to build a more truthful picture B2B Pilot in Ireland ongoing Product Portfolio Today
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Widening of our E-Sourcing activities increases coverage of hiring process and adds value to all stakeholders
Start job search Job matching Browse jobs Research employer Research salary Interview Apply Hire Personal development / Career Advice
Staying true to our
candidate centric approach to enhance user experience and customer satisfaction
Developing new products
and services to satisfy market demands
Working towards the main
goal: match the right candidates with the right jobs
Future Product Portfolio
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Defining the future scope of talent platforms McKinsey states:
In 2025, online talent platforms can increase global GDP by 2%
$ 2,700,000,000,000
…and get our fair share!
Growth will come from:
Penetration of existing
markets (‘long tail’) Enlargement of product portfolio along
our core business
Higher demand within firms to get
support in finding the right talent Further development of market position Relevant acquisitions 4 2 3 1 5
