Student coverage Q&A part 1 (in English since we have also non-Finnish speaking participants)
We’ve kicked off student coverage team selection process and I’m happy to say we have many great teams participating! I’m very much looking forward to having a student coverage on Inderes’ stock for our shareholders starting from February.
I have promised to answer potential questions the analyst teams might have. I will answer them on this forum so the information will be equally available for all teams (and investors).
Q: What is the price range for AGM product for hybrid and remote meetings, and what is included in the price? (Mikä on AGM-tuotteiden hinnoittelun hintaluokka hybridi- ja etäkokouksille, ja mitä kaikkea hintaan sisältyy?)
A: We have disclosed that AGMs accounted for over 10 % of our last year’s revenue and that we delivered >100 AGMs. This will give you a ballpark on average pricing, but the price range is wide since with the largest companies these are fairly complex and big projects. The revenue is a mix of license and services, all booked to project revenues in our reporting.
The concept is based on one-stop-shop so we take care of all elements related to organizing an AGM. Most of the AGMs we organize today are classic (with live streaming included), some early adapters are going hybrid and remote is becoming popular at least with EGMs. Remote has lower price vs classic or hybrid, but higher margin due to less outsourced services.
Q: Pricing of the commissioned research product? How does old vs new contract pricing differ? What is included in the price? (Millainen on tilausanalyysien hinnoittelun rakenne? Tietojemme mukaan sopimukset ovat toistaiseksi voimassa, mutta miten hinta määräytyy uusille verrattuna vanhoihin asiakkaisiin? Mitä kaikkea hintaan sisältyy (esim. videot)?)
A: Contracts are annual and renew automatically and pricing is standard. Should there be very old contracts with historical pricing, these would be re-negotiated to reflect current value of the product. We bundle everything into standard package with one price (inclusive videos and all content production related to doing the research), basically the only add-on we sell is research done in multiple languages.
Q: Has the commissioned research pricing or pricing policy been changed after expansion to Sweden? Does old Finnish customer produce same revenue as equivalent customer in Sweden? (Onko tilausanalyysien hinnoittelua tai hinnoittelupolitiikkaa muutettu, kun toimintaa laajennettiin Ruotsiin? Tuottaako vanha asiakas Suomessa saman liikevaihdon kuin vastaava asiakas Ruotsissa?)
Average prices are higher in Finland where we are in mature stage and have a very strong value proposition for local companies. Expansion in Nordics has also improved the product value for our Finnish clients due to stronger distribution network. In new markets like Sweden we look for various go-to-market tactics, with different pricing or discount models in the toolbox as well.
Q: How much of the virtual events business is based on recurring and how much project revenue? What are the price levels? (Virtuaalitapahtumien hinnoittelusta ja sopimusrakenteesta: Kuinka suuren osan kanssa asiakkaista on jatkuva sopimus ja kuinka paljon on projektiluontoista tekemistä? Missä hintaluokassa liikutaan virtuaalitapahtumien osalta?)
The recurring part of our Events business comes from quarterly earnings events and the other part is project revenue (AGMs, CMDs and other events). We’ve disclosed that we have >300 customers in this product area in total, but not detailed revenue mix. The recurring business (q-events) is high volume (and thus lower price vs complex tailored projects) business where efficiency, technology and delivery capability during peak seasons is crucial. Project prices can go from a couple of thousand euros to above 100 thousand euros in most complex projects.
Q: IR Software, what are the price levels of the product area? (IR-softan osalta vastaavasti, missä hintaluokassa liikutaan?)
A: For IR software, ballpark for market prices of the must-have products go from 5k€/y to beyond 20k€/y depending on which components (IR web tools, press release system, full IR website solution) the client takes (in Inderes case exclusive of advisory services and Videosync sales).
Bonus answer:
We’ve said in our strategy that our addressable market in Nordics is 120 MEUR and that there are roughly 1200 listed companies listed in our target market definition. Thus, the estimated average revenue per listed company goes to the ballpark of 100k€/year assuming the client takes all products.
Tämä on kyllä mielessä. Samoin se, että monet vakiintuneet käytännöt on verrattain toimivia, moneen kertaan monesta kulmasta fiksusti mietittyjä, ja eri tavalla ei tehdä vain erilaillatekemisen ilosta.