Welcome to the presentation of Meltwater's Q2 Report. Today, CEO, John Box and CFO, Marty Hernandez will do the presentation. The presentation will take around 20 minutes. Afterwards, they will answer your questions. If you want to ask a question, let us know via the meeting chat. You can do this anytime during the presentation or the Q&A session. John, now I hand over to you. Yeah, thanks very much, Gerhard, and hello, everyone. Thank you for joining today. My name is John Box, CEO for Meltwater. I will start this Q2 earnings call with some reminders on the company itself, our history, the market, products, and technology. We will start to dig in to progress so far in the first half of 2021 with a particular focus on the second quarter. Our CFO, Martin Hernandez, will take a closer look at the P&L and cash flow. As most people are probably aware now, this will actually be Marty's last time presenting with us on our earnings call as he transitions out of day-to-day operations with Meltwater. I wanted to take this opportunity to thank Marty for all of his hard work over the last six years. We are, of course, delighted to welcome new CFO, Elena Shishkina, to the company in October, but Marty will most certainly be missed. Once again, thanks for all of your support and everything you've done during your time here, Marty. A few key highlights to kick things off. Revenue in Q2, $98 million, which was a 11% increase year-over-year, driven by improved organic growth and some contribution from M&A. Our two main focus areas, premium and social clients, have continued to progress well. Some numbers were shared in our trading update in July, and we'll provide more insight around those today. Three acquisitions were closed in the first half of the year. Retention rates have continued to improve. Some data was shared around that in the report that was published earlier on today. Progress continues on the up-listing process to the main list of Oslo Børs, which should be completed in the fourth quarter of this year. Today, Meltwater is the global leader in media intelligence, helping our customers find and analyze online data. The company was founded in Oslo, Norway in 2001, is today headquartered out of San Francisco, but we have a truly global footprint. We have approximately 27,000 customers. They are in 134 different countries throughout the world. Over 2,000 employees, an ARR of $414 million at the end of the second quarter. The vast majority of our contracts and revenue is subscription-based or recurring revenue. In terms of the investment highlights, today, as said, we are the global leader in our space with an integrated SaaS platform, cutting across both news and social media. The total addressable market is very large. It's something we estimate to be more than $40 billion. Meltwater has a very strong track record when it comes to M&A, and we will highlight one of those success stories later on in this presentation. A key asset of Meltwater is our global reach and sales organization, providing a very strong distribution channel for acquired products and companies. Lastly, we have long-term targets of 20% organic growth and 20% EBITDA margins. As said before, we work with approximately 27,000 clients today. It really spans across all verticals and industries, and today, we are proud to be working with the main players in most industries, including the 10 largest pharmaceutical companies in the world, as just one example. This slide, it really illustrates two key points. Firstly, if a company or organization, really in any industry, needs to find and analyze online information, they can be a customer of Meltwater. Secondly, this slide highlights a lot of opportunity for us as a business. The reason for that is typically when we are signing up these customers, it is in one country or for perhaps one department. They're not necessarily global accounts today. That is something that we aim to capitalize on moving forward, turning these customers from local to global accounts, and we'll talk through some examples of that later in the presentation. Meltwater, differentiates in our space by having a truly and fully integrated platform for multiple use cases spanning across public relations, communications, as well as marketing. One of the main ways that we help our customers and have done for the last 20 years is really with brand management. If we think about an example here such as Coca-Cola, if we're working with, let's say, the VP of marketing at Coca-Cola today, we'd predominantly be helping them to track and analyze their brand online, look at things such as share of voice, their reputation, as well as sentiment, and help them with that across traditional news as well as social media. The second key use case, which is closely tied to brand management, is really competitive intelligence. Not only do Coca-Cola want to know what is said about them, how is their brand developing, but for additional context, to compare themselves with key competitors such as Pepsi. What is it that they do differently? How do their various Coca-Cola brands benchmark against competing products in various categories across the world? We can also help them get the message out there using things such as social media management to publish messages across various social networks and connect with customers and consumers. Lastly, another key use case is really risk and crisis management. Helping customers stay on top of potential issues which are impacting either their business or their industry. The most recent acquisitions that Meltwater has completed, it really opens up multiple new use cases, such as consumer insight and influencer marketing, and we'll come back to those two specifically later on in this presentation. It's really the fact that we can offer all of these use cases in one platform across news and social content, which is a big part of the reason as to why we win in our space today, and it's something that is unique to the Meltwater offering, the breadth of use cases that we can serve up to those customers that we work with. Our competitors in the space, they tend to be regional players and perhaps only provide one or two of these functions or use cases, and that gives Meltwater a really key competitive advantage in the market. Quite often, when we are winning contracts, particularly the more global accounts, we're actually replacing multiple vendors as part of the process across many different geographies and leveraging the strengths of the integrated offering that we have, as well as our global footprint. Our technology platform, it continues to support the company as we grow in scale, helping our customers to mine those insights from an increasing amount of data. Today, we collect over 800 million documents on a daily basis. We leverage the investments that we've made into artificial intelligence as well as data science to perform tasks such as applying sentiment, entity recognition, and content categorization across all of those documents in real time. This creates insights for our customers in the form of real-time analytics in the dashboards inside of our platform. To give you an idea of the scale involved here, we run in excess of 20 trillion searches every single day for our customers. We're excited about the acquisitions that we've made so far this year. Each acquisition offers new functionality to our customers. With all acquisitions that we make, we will look to move their products across to our platform. There, we can leverage those investments that we've made in the technology and into AI. It will also allow us over time to extract cost synergies and create a better customer experience as all the products will be available in that one integrated platform. Each acquisition also serves to open up new market opportunity for Meltwater and supports the focus that we have on both social revenue as well as premium customers. We have already seen technical integration from these acquired companies into Meltwater in the 1st half of this year, and we'll look at some examples of that shortly. On the commercial side, we've actually been able to secure contracts with L'Oréal Japan, Colgate-Palmolive, and Ralph Lauren, thanks to the acquisition of Linkfluence that was completed in the second quarter. Acquiring companies and porting their products across to the Meltwater platform is something that we have done successfully in the past. Some viewers today may have heard about an acquisition for a company called Sysomos that we acquired back in April 2018, where we essentially undertook this exact process. When we acquired Sysomos, they had products for both social listening as well as social media management, and they have been fully integrated into the Meltwater platform. That process was completed June of 2020, so about a year ago now. There was around $27 million in ARR on the products when the company was acquired. After those products were fully integrated, provided to our sales organization, and offered to our customer base as new modules, we've seen very strong interest in the uptake of those modules, and today, they make up $ 71 million of our social ARR, and the growth rate of them is in excess of 80%. As you can see, a lot of this growth has actually happened after the products were fully integrated. We strongly believe there is a lot more upside potential within our current customer base, both in the short and the long term for these products, as well as those products from the newly acquired companies. This forms a key part of our growth strategy, which is really outlined on this slide here. There are four key drivers of growth. They are largely organic, but there's also one taking into account the opportunity presented by the M&A that we have done in the past and continue to do today. A key point wrapped around all of this is the existing contracts we have in place with those 27,000 customers throughout the world, and the opportunity that that presents for top line growth. Now, premium customers are a focus for us. They have the best net retention rates and strongest economic return with very good LTV to CAC ratios of approximately 6X, and we aim to generate more premium revenue in three different ways. Firstly, it's our go-to-market strategy. We're very focused from a sales and marketing perspective, and clearly target accounts that can be $25,000 or more in ARR, and that's where premium starts for Meltwater. The second key way is looking to convert non-premium to premium clients. Lastly, increasing the ACV and share of wallet with current premium customers. A key driver for that is really social. A traditional entry point with our customers has been news and PR, so we are upselling customers with social products and use cases, which in turn is creating more premium revenue. Another avenue that we have here are the new use cases provided by the acquired companies. Adjacent use cases such as influencer marketing, as one example, are increasingly demanded by our current customer base. Lastly, comes back to something that we looked at on the customer slide earlier on. Many of our agreements today are local, and we can convert these into global accounts, leveraging, once again, the global footprint of our sales organization, as well as the global product capabilities that we have. Marty, I'll hand over to you to do a couple of slides now. Thanks, John. We had another strong quarter, finishing with $ 98 million in revenue, up 11% year-over-year. We successfully closed three acquisitions in the quarter. Excluding the acquisitions, revenue grew 7%, up from 3% one year ago, driven by our successful focus on premium clients and the social business. Adjusted EBITDA for the quarter was $4.8 million or 5% of revenue. This reflects our planned investment in both sales and marketing, and R&D, as we invest to take advantage of market opportunities to drive growth. As a reminder, adjusted EBITDA excludes both charitable contributions related to MEST and one-time expenses. One-time expenses in the quarter were related to the acquisitions. Next slide, John. Thank you. We exited June 2021 with $57.7 million in cash on the balance sheet. Q2 2021 cash flow from operations was a use of $2.4 million versus a source of $10.2 million in the same period one year ago. This was primarily related to the reversal of COVID-related cash preservation initiatives such as country-specific deferral programs, as well as working with our vendors on deferral programs in 2020. Cash flow in Q2 was also impacted by our investment in sales and marketing and R&D, as well as a negative FX impact in the quarter of almost $4 million. Net cash declined in the quarter by $29.5 million, primarily related to the three acquisitions, offset by a drawdown of $25 million from our credit revolver, which compares to $175 million in debt outstanding one year ago. There remains $125 million available on the revolver to support our growth strategies going forward. At this point, I'll hand it back to John. Yeah. Thank you very much, Marty. We've seen really strong progress in the first six months of 2021. 457 new premium accounts with an average ARR of $57,000. Now, of these, 59 of those accounts are paying in excess of $100,000 a year for the service, and the average spend of that cohort is $207,000 per year. Now, this, combined with the improved retention rates that we've seen across all customers, has improved average ARR per client by 15% so far this year. And a real testament to the success of both the strategies that we have for growth as well as the strength of the product offering, are marquee global brands such as Warner Music and Ralph Lauren entering into six-figure agreements with Meltwater for multiple years. Let's take a quick look at the development of the premium segment and also some examples of premium customers and how we actually work with them today. Premium customers now represents $193 million of Meltwater's total ARR. This has grown 30%, including M&A, in the first half of the year and now represents 47% of our total ARR. The ambition is for this to become 70% in the coming years. The growth is partly fueled by improving retention rates in the segment, and these were shared for the last 6 quarters in our H1 Q2 report earlier today. In the second quarter, it was 104% over the trailing 12 months. This represents a 6% improvement compared to the same time period the year before. The largest contracts in the segment, $ 100K and above, they're also positively contributing to the growth of the premium segment. An ARR from 100K plus accounts is up 32% for this year so far. Some examples here of customers in the premium segment. We'll start with Expedia. Expedia, actually signed up in 2020, but have recently expanded their agreement in the second quarter of this year, and the ARR of the account has increased by $ 50,000. We help Expedia today with key message tracking across eight major markets, supporting their brand management efforts, as well as helping them to benchmark with competitors across those different markets. The expansion of that account added the functionality to help Expedia connect content and analytics from Meltwater into Tableau, and there are further opportunities to grow this account by expanding into more markets globally, as well as supporting them with new use cases such as influencer marketing, leveraging the Klear acquisition. Pexip, is a company I'm sure that many people in the Nordics are familiar with. They're naturally in a very competitive space today, so competitive intelligence is a key use case we help them with, helping to understand consumer sentiment around the various available tools in the market. In the future, there are opportunities to better support Pexip with their global expansion and also aid them from a sales intelligence standpoint as they pursue opportunities in select verticals and industries. Another key focus area for the company is the revenue coming from social products. This now accounts for $153 million of our ARR and has grown 50%, including acquisitions, or 30% organically in the first half of this year. The revenue from social products now represents 37% of our total ARR. As you would have seen in the report earlier today, social is included in the vast majority of premium subscriptions that we have, and it's a key driver behind some of the net retention improvements that we've seen as we upsell these social products to our current customers. In the first quarter of this year, we saw our ARR growth begin to accelerate, and this trend has certainly continued into the second quarter with 8% organic ARR growth and 14% total, including the acquisitions. The success of our focus on premium and social is really helping to fuel the improved growth numbers that we see alongside our increased investment into sales and marketing, where we see improved productivity from sales reps as we continue to move up market and focus on larger paying customers. From a product perspective, across the first six months of 2021, there have been over 400 product releases and updates to benefit our customers, and we focus on a few highlights here from the second quarter. We added two new languages in Q1, and a further eight were added in the second quarter. They included Malay, Hebrew, and Vietnamese as some examples. These languages provide support to customers from an NLP and sentiment standpoint and help to create improved insight for our customers, not just locally, but it also benefits the global accounts that we work with today. In the past, we've spoken about our focus on really integrating the Meltwater products and data with a customer's existing tech stack. Historically, we've seen this leads to increased usage of our data and ultimately stronger retention rates across our customers. These efforts were supported by multiple integrations released in the second quarter, including Slack and Microsoft Teams, where customers can receive real-time alerts around breaking news or key influencers that mention their brand. The Teams integration, is actually the first of its kind in our industry, so that's something we're very proud to bring to market. Improved integration to data visualization tools were also released, aiding customers like Expedia with their connection into Tableau. Lastly, we increased our support for paid analytics, so customers can now benchmark their paid efforts on social media alongside earned and owned to provide that single-lens view of all social activities. As mentioned before, whenever we acquire companies, as we saw in the Sysomos example, integrating their offering to Meltwater is paramount. In Q2, we've already seen technical integration success as we were able to integrate new social data types from Linkfluence into the Meltwater platform and enhance the offering from some social networks that were previously covered. Some of these will be available free of charge to all Meltwater social customers just to improve their experience. Others will be available as a premium add-on and continue to support the growth of our social revenue. We also leveraged single sign-on to create a seamless customer experience for those customers that are looking to move between the Meltwater platform and those of acquired companies. In the short term, this will create a smoother customer experience for those customers that leverage multiple products from Meltwater before they are fully integrated. As was previously communicated, Meltwater will host a capital markets day for the investment community on the 4th of November. This will be a fully virtual event, which is still necessary during the pandemic and helps facilitate more of a global audience. During this session, we will showcase our products and technology, take a look at both current trading as well as future plans, and hear from some of our premium customers, also offer the chance for people to better understand the company with a closer look at our culture and our people. Lastly, we'll finish that day with an executive Q&A, thus providing the opportunity for people to meet our new CFO as well as our chief strategy officer who is coming in mid-October. Lastly before Q&A here, the top-line guidance we are providing today has been updated to $ 395 million-$ 400 million for 2021. As discussed at the end of the first quarter, we will continue to invest primarily into sales and marketing and R&D to facilitate the growth plans that we have and also to achieve our longer-term targets of 20% top-line growth and 20% EBITDA margins. There are ongoing discussions from an M&A perspective. We continue to see activity in our space and opportunities for us to acquire companies that offer new functionality to our clients and build upon the integrated platform. The last point I would reiterate here, going back to the first slide, is our intention to move to the main list of Oslo Børs in the fourth quarter upon the successful completion of our accounting conversion from US GAAP to IFRS. With that, I'd once again thank everyone for their attendance today, and now happy to open up for questions to both Marty and myself. Thank you, John. This Q&A round will last circa 20 minutes, if you want to ask a question, please let us know in the chat field. We will unmute you so you can ask your question. Let's start with a question from Kristian Spetalen at Arctic. Have you unmuted, Kristian? Now I'm unmuted, I think. Can you hear me? Can you hear me, again? Well, we have Kristian. He has the username KRSP. We can hear you. You can hear me? Yes. Okay. I have two questions. First one is your full year 2021 revenue guidance, which implies $206 million for the second half of the year, or approximately $ 190 million adjusted for the acquisitions. This only gives me a 3% organic growth rate for the second half. Could you please elaborate on this? Number two, G&A expenses increased quite a lot in the quarter. Is this related to the acquired companies, and how should we think about this cost item going forward? Thank you. Sure. Hi, Kristian, it's Marty. I'll take them in order. For the 2021 revenue guidance, I think you're probably providing too much to the acquisitions and not enough to the organic business because the growth rate's going to be a bit higher than that, although we're not guiding individually between organic and acquisitions. Hopefully that gives you some directional guidance on those. On the G&A expenses, quarter-over-quarter, about 25% of the increase was actually related to the acquisitions. The balance was actually planned and is related to investments in both infrastructure and people to support growth, as well as Meltwater as a public company. I would guess that the quarterly run rate will remain similar to Q2. You might see a little bit of an uptick because we didn't have the acquisitions for the full quarter, but it'll be similar. Does that answer your question, Kristian? Yes. Thank you. That's helpful. Great. The next one out will be Øystein from ABG Sundal Collier. Øystein, are you ready? Yeah. Hi, everyone. We can jump to the last question. You previously said that H2 profitability will be somewhat lower due to higher investments. I was wondering if you could give some color on to what degree the profitability will be affected. For instance, are we talking low single-digit margins or mid-single-digit margins, or if you could shed some light on that. Thanks. John, do you want me to take the margin question, and then you can talk about the plans? Yeah, go ahead. Okay. Obviously we're not guiding on Q3 or Q4, right? We're not guiding on adjusted EBITDA, I think where you're looking is probably appropriate. Again, given the impact of both the acquisitions, but also the investment, right? We've invested heavily kind of across the board, as we said we would. Primarily in sales and marketing, as you can see, but also to an extent in R&D and G&A, as I just talked about. John, maybe you can layer in some qualitative comments on that. Yeah, in terms of the investments from a sales and marketing perspective, we have, of course, increased headcount into sales. That's something that has been very much planned and communicated previously. Now, a lot of these people have been placed into sales roles that target the premium customers, such as enterprise sales, as an example. I think that's why we continue to see good progress in that area, and very much expect that to continue. I think it was evidenced by the July and the August premium customer updates that were already shared, that those investments are paying off, as they were the best two months that we've had so far this year when it comes to progress in premium customers, and that's something we expect to see continue. If that helps to answer the question, Øystein. Yeah. That's good. Thanks. That brings me on to the next question. To what degree have your sellers started to learn your newly acquired products, for instance, Linkfluence? Can this give some boost to Q4 growth, or is it too early to see growth already from Linkfluence, or? Well, I mentioned a few of the companies that we've had success with already as part of the Linkfluence acquisition in particular. Customers like L'Oréal, Colgate-Palmolive, and Ralph Lauren. I think it speaks exactly to what we're looking for, premium customers with global potential that are focused on both social as well as consumer insight. All of those customers that we've acquired will be using the Linkfluence platform. Predominantly that has been something that's been provided to those enterprise salespeople and account executives at the company because the price point for that particular product is more premium. It's about $60,000 average contract value. If we continue to see that success at the back end of this year, then yes, we would expect it to positively contribute in Q4. Thanks. Thank you. That's all from me. Let's continue. Let's try two questions each since we have limited time. Next one will be Eirik from Carnegie. Are you ready, Eirik? Yes. Thank you, Geir. Eirik from Carnegie here. Since it's only two questions and some have been asked already, I'll stick with two. Just firstly, what gives you the confidence to slightly alter the guidance for the main listing timeline? It's been back and forth multiple times through the year. Has anything changed as of late that gives you the confidence to change the wording there a bit? Also I was wondering on the net retention rate, thanks for disclosing the last couple of quarters there on the premium segment. Could you be able to share the net retention rate for the group as a whole, or at least the year-over-year development? Thanks. Marty, do you want to take the uplisting piece and then I'll answer on retention rates? Sure. I think the uplisting piece we feel more confident about because we're so far down the process, right? The listing prospectus has been filed with the AFM in the Netherlands, which we've disclosed. We're moving along the timeline. We do believe that we should be able to complete the process in Q4. That's why, Eirik, as you know, we've been working on this for a while, right? We can see the light at the end of the tunnel. Yeah, that's great. Thanks. Thanks, Marty. Eirik, if that answers that question, I'll move on to the retention rates. Today we shared the, as said, the trending data for trailing 12-month premium customer net retention. You can see from that it has been improving steadily over the course of the last six quarters. Now bear in mind, of course, that's trailing 12 months, so if it's improving every quarter, what we're seeing is stronger retention rates all of the time, particularly in the 2nd quarter of this year. Although we have not shared the specific numbers around net retention in general, so for all customers that we have, I would say from a directional standpoint, that they are also improving, both on the gross as well as the net side, and that's helping to lift the average ARR per customer and also helping with the ARR growth that we experienced today. We are seeing positive development there, although the specifics haven't been shared. Okay. Thanks, John. Thanks, Marty. Let's move on. The next one is from [Seim Hanrahan] from Stellwagen Millennium. Are you unmuted and ready to ask your question? Can you hear me? Yes. Great. Maybe just talk through the sales and marketing ramp and R&D ramp for the rest of the year. Was this step up the biggest step up? I heard the margin comment earlier, but maybe talk through that, and then maybe any kind of early thinking on investment levels in 2022. Are you pulling forward a lot of investment here, or do you feel like you have more to go next year? The second question, which should be really quick, is, are there any deferred revenue write-downs associated with the acquisitions? Because the conversion from ARR to revenue looks a little light, but I'm curious on that. Thanks. Yeah, I'll take the first question around the investment and then hand over to Marty for the second piece. In terms of those investments into both sales and marketing as well as R&D, they've obviously been planned and previously communicated, particularly on the earnings call at the end of the first quarter. I would say that a lot of the hiring that we've needed to do in 2021 has been done. As said, those people have been placed into the roles where they are more productive. That's really a trend that we would expect to see continue, not just in the back half of this year, but also for years moving forward. As we continue to focus the sales and marketing efforts at the premium customers and those that have a larger contract value, the sales organization will become more productive and more efficient. A lot of the headcount growth we needed has been done already so far this year, and as said, that group should be more productive moving forward. R&D is something we will continue to invest in, and I would expect to see that investment continue into next year. The reason for that is to make sure that we have the necessary bandwidth inside of R&D to not only innovate on the various products that we offer, but also to ensure that we're integrating the solutions coming from the acquired companies. Because continuing to provide that one integrated platform is really our philosophy from an acquisition standpoint. We saw the success of that in the Sysomos example, and that does require investment in the near term to complete. The upside will come from top line growth by selling those newer solutions to our existing customer base in particular. Hopefully that answers that part of the question. Marty, I'll hand over to you for the ARR revenue piece. You don't want to take on the US GAAP accounting part, John? Maybe next time when you're no longer on the call, Marty. I'll leave it to you one last time. Okay. Thank you. If I heard the question correctly, I believe the answer to your question is tied to US GAAP. Under US GAAP for acquisitions, and there is deferred revenue that came with the acquisitions, you do purchase accounting. As part of that purchase accounting, you discount the deferred revenue that you get, thus lowering the amount of revenue that you recognize post-acquisition. I couldn't quite hear the whole question. I think that was the answer. Did I answer the right question? Yeah. Just what's the size of the delta from that purchase account? If there was purchase accounting write-downs, what was the impact to reported revenue? I don't think we've disclosed that, but typically the discount to the deferred revenue is somewhere between 25% and 50%, depending on how the purchase accounting comes out, and we leverage third-party unbiased firms for that. That's all they do. The impact would've been in the seven-figure range for the combined acquisitions in Q2. We took that into account. I have one last one. In the purchase and as we've been giving guidance. Got it. Appreciate it. I just have one last one, guys. Thanks for the time, but I want to follow up on the organic revenue side of the business and the kind of guidance for the second half. It seems like you have traction with the premium segment, you've got positive NRR. Are you still seeing a lot of burn off of the self-serve customers that's dragging on this revenue reporting and revenue growth getting towards 20%? How should we think about organic core growth? What's going to drive it back towards that 20% you're targeting? Thanks. John, you want to take? Yeah. Sorry, it cut out a little bit there, but I think I caught most of the question. We are continuing to see progress with even the self-serve customers, and those retention rates are improving as well, and have done steadily throughout the course of this year. Although we can't, of course, comment too much on the third quarter, those trends have continued into July, August, and September. In terms of the improved organic growth that we expect to see, it's really from continued success in the premium segment, and a lot of that comes from upselling those social modules into the current client base. I think the Sysomos example, it really highlights the opportunity that we have to continue to do that across all customers, both premium as well as the non-premium customers today. Bear in mind that today only 15% customer penetration with those social offerings that we've brought on board from the Sysomos acquisition. If you look at the remaining 85% of the customers, now, a lot of them are using competing tools today, and we still strongly believe that it's a very compelling narrative for customers to use one platform, not multiple. As we continue to go to those current customers with those social offerings, it will in turn create more premium revenue, which is again, where we focus a lot of our go-to-market efforts, and that will drive improved organic growth. Thanks for your time. We have no more questions. Thank you for listening, and thank you for your questions. Goodbye and take care.