Auction Technology Group (684) Earnings Call Presentation

Acquisition Highlights - Chairish, a leading online marketplace for vintage furniture, décor, and art, generated $51 million in revenue in 2024 and has 1.3 million active listed items[5] - The acquisition is expected to generate approximately $8 million in accelerated operational synergies[5] - The purchase price is $85 million, funded from existing cash and RCF, with adjusted EBITDA expected to be positive in FY26 and accretive to adjusted EPS in FY27[5] Chairish Key Metrics - Chairish has 4.1 million total accounts[8] - The total inventory listing value is $2.6 billion with 1.3 million active items[10] - Chairish has 4.5 million monthly sessions[12] Synergies and Growth - The acquisition immediately adds $2.6 billion in inventory and approximately 1.3 million items to the network[20] - Approximately $8 million in annualized synergies are expected to be executed by FY27[27] - $2-3 million from marketing efficiency[27] - $3-4 million from headcount optimization[28] - $2 million from increased take rate[29] - The list price market is 3x the Total Addressable Market (TAM) of the US Arts & Antiques (A&A) auction market[23] Financial Impact - Adjusted EBITDA is expected to be positive in FY26[36] - The acquisition is expected to be accretive to adjusted EPS in FY27[36] - In the medium term, Chairish is expected to achieve double-digit revenue growth and adjusted EBITDA margins of around 30%[36]