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[billionarebob] 06/6/2022 17:03

112 million, 400 clients, recurring revenue 170k per website, doesn't include new contracts?

[billionarebob] 06/6/2022 17:01

And I remind everyone in terms of guidance for 2022 of 108 to 112 million, that's predicated on launching 400 and taking a number of client solutions to 400 from the 109 that we have got at the moment.
Which is 85% of those contracts that are already contracted with us. It assumes a recurring revenue per website of £170,000 pounds and a recurring revenue mix of 60% so it doesn't include any of the new business that we currently can win, have won, and expect to win later in the year.
We are super confident on the numbers for 2022 and very proud of the growth that we've delivered in the success of working with our clients in 2021.

[billionarebob] 06/6/2022 17:00

You mean the softBank that gave them 1 billion ROFL best bit of business MM ever did it paid for the fulfillment centre and puts ingenuity way ahead of the curve.

Why do you think WPP want to copy it?

[one_frankel] 06/6/2022 16:57

Customer confidentiality, hmmm!...I'm not asking for the names of their clients Bob, I want to know whether those individual projects are actually lucrative to THG or are they draining money to entice those customers but how else would an investor assume the intrinsic value of Ingenuity without such information, take the rather useless Mouldings thoughts as my ultimate decision-making!

...You know as well as I do, something stinks here which is why even SoftBank continue to seriously contemplate any decisions they make!

[billionarebob] 06/6/2022 16:57

I haven't walshy but I think there may be a way to watch online. I live in Warrington so Manchester airport is not too far from me, parking is a bit of a pain and very expensive but I can get their in 30 mins :)

Frankel I haven't posted this for a while but it is a good read, from Jan webcast.
Gives some good figures that I have not mentioned today. Market values Ingenuity at a big fat zero which is absolutely crazy

THG Ingenutiy extract from Jan 2022 webcast:
-----
The Position then with Ingenuity Commerce the annual growth rate was 135% we delivered over 15 million revenue in the quarter which was over 30% higher than our previous record quarter.
In terms of the key stats that we would pull out, we increase the number of live websites to 187, which is a 100 up in the year.
The recurring revenue per website increased to £240,000 pounds, the recurring revenue mix was at 72%, now our new revenue run rate has increased to 61 million.
Now those stats reflect how successful J&V growth was with our clients in the quarter.
In addition, although we don't mention anything specifically ourselves, you may have picked out the Matalan press release. Where will be working with them on their digital revolution?
I would put a substantial amount of work into winning substantial clients like that, although none of the revenue on that account will be recognised in this year. That will start to kick in quarter one, along with other substantial wins that we have got.
And I remind everyone in terms of guidance for 2022 of 108 to 112 million, that's predicated on launching 400 and taking a number of client solutions to 400 from the 109 that we have got at the moment.
Which is 85% of those contracts that are already contracted with us. It assumes a recurring revenue per website of £170,000 pounds and a recurring revenue mix of 60% so it doesn't include any of the new business that we currently can win, have won, and expect to win later in the year.
We are super confident on the numbers for 2022 and very proud of the growth that we've delivered in the success of working with our clients in 2021.
-----
They are smashing it!!! and this part of the business, Ingenuity, is currently priced at ZERO!!

This is the best bit:
'It doesn't include any of the new business that we currently can win, have won, and expect to win later in the year'

[walshr123] 06/6/2022 16:51

Yes Bob, will be interesting.
Has anyone requested to join the AGM online and heard anything back?

[billionarebob] 06/6/2022 16:50

You know the individual projects are protected by customer confidentiality this was mentioned in the webcast. But you know this already :)

Just incase you missed my Ingenuity copy paste from before I will post it again for you one more time :)

Ingenuity sustainability :)

The past 12 months have been significant for THG Ingenuity Commerce with revenue growth of over 135% year-on-year and a 2-year growth rate of over 500%. Around 100 new solutions have been launched on the platform across a broad range of sectors and many geographies, including the U.S., Germany, China and Australia. Commerce revenues are highly recurring due to the nature of the long-term contracts with clients, benefiting from access to the technology platform, world-class fulfillment and brand-building expertise.

Nonrecurring revenues represent one-off costs for clients such as the site build fees or strategic consultancy. However, these costs recur every time a new client onboards, so reoccurring in nature for THG.

In the near term, we expect recurring revenues to account for 60% of total commerce revenues as nonrecurring revenue remains elevated due to the growth in new clients and pace of new site launches.

During the fourth quarter, we observed an elevated level of recurring revenue due to the high GMV volumes processed around the peak trading period. Ingenuity is completely unique in that the same technology and operations that drive the growth of our Ingenuity partners also powers the growth and success of our own brands. As a result, any developments enhancements we make to our technology, our operations, digital or data solutions automatically benefits our clients, too.

One of the key reasons clients choose Ingenuity is that we make the complex simple. We work with a growing high-quality portfolio of brands who value a partner with deep expertise in scaling international brands. At the heart of Ingenuity is our global infrastructure network, comprising product development and manufacturing facilities, warehousing and fulfillment sites, data centers and content creation studios. Through these facilities, we’re able to service customers across the world with a constant focus on optimizing efficiencies to get products to consumers quickly and profitably.

As consumers more frequently choose to shop online, e-commerce brands must ensure their warehouse capacity and capabilities can match such demand growth. Not only are higher volumes of orders needing to be processed, but expectations for timely deliveries are also raised, with over half of global buyers today stating that delivery times influence purchase decisions. We are now well progressed through our global rollout program, which will see GMV capacity extended significantly. This future-proofs growth for our own brands and Ingenuity clients whilst ensuring the demands of the peak trading periods can be met comfortably.

As part of the expansion, we have extended our major European hub in Poland, in addition to the opening of a brand-new site in Melbourne, which has reduced delivery time to 3 days from 10 based on shipping goods from the U.K. Our next major automation project will be in our New Jersey warehouse, which will further enhance our customer proposition in addition to benefiting our overall network by reducing cost per unit. Our knowledge and experience in executing large-scale projects helps us scale capacity at pace while significantly delivering sales growth with minimal impact.

In September, we dispatched our first order from our ICON U.K. automated warehouse, combining our proprietary warehouse management software Voyager with auto store technology. The site launch and inventory building was achieved through transferring over 12 million units between our existing U.K. distribution center, in the space of just 5 weeks, a highly ambitious project to complete in time for peak trading. The entire solution and build and commission project was completed in just 5 months from initial access to the building to first order dispatch.

This automated storage and retrieval system has the capability to process 500,000 units a day, simplifying and automating elements of traditional manual processes such as selection, delivery, picking and packing. In addition, through the combination with Voyager and demand planning tools, our operational data scientists have delivered substantial ongoing optimization of the technologies, resulting in meaningful ongoing cost reductions.

As you can see, the grid of 69 ports, 256 robots and 300,000 tows stack 16 high on top of each other. The robots are continuously assigned tasks and will always get the closest task at hand with the shortest route in order to save time and energy. The system is also highly reliable and has led to meaningful reductions in peak costs per unit. The facility now not only serves Lookfantastic, but also a number of Ingenuity clients. And most recently, we consolidated our London Cult Beauty warehouse in just a matter of weeks.

In response to growing demand, we are increasingly identifying opportunities to commercialize Ingenuityâ€482;s fulfillment services to new and existing commerce clients and as a stand-alone solution as consumers and brands are increasingly faced with rising shipping and fulfillment costs and shortages of capacity. Necessity has driven our innovation. Solutions developed internally that are now available to clients include Voyager. That’s our proprietary SaaS solution that can integrate to third-party warehouses. One particular use case is a major beverage brand owner who has expanded the capability of its B2B warehouse to now fully service its direct-to-consumer requirements.

This solution can scale with any client as it does within THG, operating a range of facilities from 50,000 through to 850,000 square foot fully automated sites.

Ingenuity fulfillment services operates as a standard 3PL fulfillment solution, but one which accesses our global infrastructure and career network, taking advantage of investments in automation. THG Delivered is our cross-border fully managed delivery service. Upstream, this includes our headless checkout detect. That’s our award-winning proprietary fraud screening tool. And this has access downstream to our fulfillment network and our courier library, including label print, branded delivery communications and fully managed customer service follow-up.

Having established and scaled THG’s own brands, such as Lookfantastic and Myprotein, as well as Ingenuity clients, the group has seen firsthand the warehousing challenges growing brands face today. This experience has enabled THG Ingenuity to create automated warehouse solutions to enhance time and cost efficiencies in e-commerce order fulfillment. Ingenuity recently announced a partnership with leaders in warehouse robotics technology, AutoStore. The solution combines our warehouse management system, Voyager, with AutoStoreâ€482;s ASRS warehouse grid and robotics order fulfillment technology, bringing together first, that being our fulfillment inventory retrieval system technology, as a solution for e-commerce retailers and global brands.

Warehouse automation is moving at pace. But typically, solutions are capital-intensive, comprising a complex collection of partners consequently slow to execute with high failure rate leaving the brand owner or retailer a solution that they are able to optimize with no ownership from the provider. THG Ingenuity can also work alongside retailers and brands to identify a suitable solution, but more importantly, take ownership from the design through to build, commissioning and subsequent optimization of the solution. We are well positioned to further build our technology and operating ecosystem, supported by our digital brand services.

2022 priorities include expanding partnerships through international growth, fulfillment and manufacturing. Our end-to-end capability brings us closer to our customers and ensure the models capture a greater share of the customerâ€T82;s digital spend than any other e-commerce platform.

[one_frankel] 06/6/2022 16:45

So how profitable are those individual projects of Ingenuity worth to THG Bob which would be incredibly helpful to myself in assuming a value in Ingenuity in a roundabout way?...A copy and paste will suffice if as you state you've already answered them previously.

[1apache] 06/6/2022 16:45

I’m sure that it is not necessary, but - out of deference to Toansy - can I ask all Members of this forum ignore Frankles posts from now on?

[billionarebob] 06/6/2022 16:44

On a separate note I am looking forward to the AGM on Friday and an update on what diversions are getting split, when and for how much :)

[one_frankel] 06/6/2022 16:40

Great Apache1!...Finally we have a consensus!

[one_frankel] 06/6/2022 16:36

Yet again, we continue to avoid the all important questions!

[billionarebob] 06/6/2022 16:35

Yep that's mr agitated definitely a few personalities coming through :)

[one_frankel] 06/6/2022 16:33

Bob, stop with the rubbish as I'm not part of any boiler room and answer the bloody concerns if you can because I certainly can't with THG...And if you invest in anything, you should clearly know how the business operates otherwise its all rather futile, wouldn't you agree or are you still learning the ropes!

[billionarebob] 06/6/2022 16:29

One_Frankel how many are there of you running that account? Definately different personalities coming through.

How do you know which companies to target?

[one_frankel] 06/6/2022 16:29

1Apache, I'll say this one final time, I'm not interested in your blatant nonsense so lessen the noise hey!

[one_frankel] 06/6/2022 16:27

By the way Toansy, look into that aged-old philosophy called Eugenics which is highly promoted by your saviour Gates but lets hope its not your kind that will ultimately be saying au revoir to the world in due course with your unfortunate genetics as there will only be so much food to go around future!

[one_frankel] 06/6/2022 16:18

What was the message in relation to that Toansy or do you now have to contend with some short-term memory loss!

[one_frankel] 06/6/2022 16:16

'Toansy the Tosspot' is just a little putty cat albeit with all his online bravado!