2018 Annual Results Investor Presentation
Daniel Rabie (CEO) And Paul Haworth (CFO)
2018 Annual Results Investor Presentation Daniel Rabie (CEO) And - - PowerPoint PPT Presentation
2018 Annual Results Investor Presentation Daniel Rabie (CEO) And Paul Haworth (CFO) Daniel Rabie Paul Haworth CEO From 2017 CFO From 2017 2015 to 2017: COO of Reckon (ASX:RKN) 7 years in senior corporate and operational fjnance with revenues
Daniel Rabie (CEO) And Paul Haworth (CFO)
CEO From 2017 CFO From 2017
2015 to 2017: COO of Reckon (ASX:RKN) with revenues to A$97.8m in 2016, leading Development, Marketing and HR. 2010 - 2015: Strategic Director at Reckon. Guiding company direction across multiple geographies and product categories. 10 years experience in the sofuware industry. Founder of numerous startup businesses. Proud father of 2. 7 years in senior corporate and operational fjnance roles with UK listed groups. Previously EMEA Finance Director for Dialight plc. 9 years with Deloitte advising a range of public and private technology and sofuware clients. Proud father of 2.
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OUR MISSION:
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Wasted time dealing with information issues can lead to a loss in an organisation’s total productivity.*
Email complexity Compliance costs Document access Information chaos Poor security Version control Misfiling & search Legal approvals Information silos
Control security risks, track files, receive alerts, automatically file attachments. Meet regulatory, audit and litigation requirements to prevent fines and damages. Log into your document system from outside the office. Stop duplicate files, content disorganisation, and data overload. View audit trails, reduce risk of confidential leaks and hacks. One version of the document seen by everyone, no duplicates and confusion.
*ICD 2012
Prevent significant search time per worker per day looking for lost files. Digital signatures and smart workflows significantly reduce contract turnaround time. Integrates with your existing software and systems so all your files live in one place.
21.3%
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Next generation B2B communication and productivity sofuware. Finding product market fjt. Ongoing development. Global potential.
GetBusy
In Beta
Cloud Document Management and Cloud Portal for small and medium businesses. Established 10 years. Largest vertical SME accounting and bookkeeping fjrms. US origins. Now expanding overseas.
19,000+ Paying Users
SmartVault
Desktop Document Management and Cloud Portal for medium and enterprise businesses. Established 20 years. Largest vertical large and medium sized accounting fjrms. UK and ANZ focus.
Virtual Cabinet
42,000+ Paying Users
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Used by 27 of the Top 100 Accountancy Firms in the United Kingdom Used by 22 of the Top 100 Accountancy Firms in Australia and New Zealand
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California Consumer Privacy Act Digital Transformation Initiatives GDPR (General Data Protection Regulation) Worldwide Privacy And Security Laws
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Accounting & Bookkeeping
1.7m People
UK, USA, Australia, New Zealand
200,000 Firms £350m Annual Market
Grow our quality recurring subscription revenue base Deliver long term, sustainable growth
Improve monetisation of existing customer and user base Focus on high quality subscription revenue (UK model switch) New product development Expansion into new verticals Geographical expansion Carefully selected acquisitions
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USA UK ANZ
28 Staff 64 Staff 17 Staff
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Sales Marketing Support
Outbound sales team Narrow prospect set Long sales cycles Technical consultants High end marketing Brand awareness Education & trust building Direct sales support High touch support On-site issue resolution Tailored tools & training Highly customised
Enterprise
Virtual Cabinet
Inbound sales team Content, automation, tools, training, incentives to enable high efficiency. Qualifies leads Feeds sales pipeline Automation & content to simplify purchase. Remote customisation Customer self-service Educational content
Transactional
SmartVault
Little sales support Low CAC Digital marketing Viral potential Freemium model Easy onboarding Tech-touch Customers resolve their own issues.
Self Service
GetBusy (In Development)
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Continued recurring revenue growth of 22% (87% of total) 31% improvement in Adjusted EBITDA to £(0.8)m Strong LTV:CAC ratio of 6:1 GetBusy public beta launch Strong closing cash position of £2.5m
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Pure subscription models allow significantly higher lifetime value. Lower upfront cash.
Time
Subscription Model Upfront model
Cumulative Cash Collected
Significantly Higher LTV
More than offset by higher recurring cashflows in later years.
Total Revenue Annualised MRR At End Of Period Recurring Revenue Adjusted EBITDA Total Recurring Revenue Adjusted EBITDA Before Corporate Costs
£’m £’m £’m £’m % £’m
FY16 FY16 FY16 FY16 FY16 FY16 FY17 FY17 FY17 FY17 FY17 FY17 FY18 FY18 FY18 FY18 FY18 FY18
7.8 7.1 6.5 (1.7) (1.4) (0.3) +0.3 9.3 8.8 8.0 (1.2) 10.9 10.3 9.5
83% 86% 87%
(0.8)
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Group ARPU Up 11% To £168
2011 2012 2013 2014 2015 2016 2017 2018 SmartVault acquired
15k 25k 30k 35k 40k 45k 50k 55k 20k
customers as at Dec 2018
60k
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AU / NZ UK USA
17% recurring revenue growth (2017: 5%) 23% recurring revenue growth (2017: 32%) 35% recurring revenue growth (2017: 102%) £5.8m total revenue £3.3m total revenue £1.8m total revenue 80% revenue recurring (2017: 78%) 97% revenue recurring (2017: 95%) 91% revenue recurring (2017: 94%)
Sustained recurring revenue growth across all regions.
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Huh? Who Is Doing What?
Vs
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New GetBusy website launched. GetBusy public beta available. Finding product-market fit. Ongoing development.
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GBP £’m GBP £’m
FY18
FY17
Revenue 10.9 9.3 +17%% Operational EBITDA United Kingdom 2.5 2.3 United States 0.3 0.0 Australia & New Zealand 0.1 0.0 2.9 2.3 +24% Development Established Products (1.6) (1.6) GetBusy (0.9) (1.0) (2.5) (2.6) Corporate Costs (1.2) (0.9) Adjusted EBITDA (0.8) (1.2)
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Each territory’s trading operations are profitable before development and corporate cost. Development spend stable. Higher corporate costs reflect first full year of being public. Operating cost increases focused on customer acquisition and technology to enable scalability. 35% Operational Leverage With Reinvestment For Growth
GBP £’m GBP £’m
FY18
FY17
Adjusted EBITDA
(0.8) (1.2) Trade Working Capital 0.3 0.3 Deferred Revenue 0.4 0.3 Operating Cashfmow (0.1) (0.6)
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Favourable working capital has helped to preserve cash balance.
£2.5m year end cash
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Paying Users Cloud Portal Users Digital Signatures
Virtual Cabinet Virtual Cabinet SmartVault SmartVault
2018 2017
Paying Users
42,425 19,118 39,518 17,925
Customers
2,139 5,069 1,726 4,616
Net MRR Churn
0.3% 0.5% 0.7% 0.7%
ARPU
£156 £193 £143 £169
LTV:CAC
N/A 6:1 N/A 3:1 Revenue growth driven by combination
(ARPU). Low net MRR churn reflects customer churn, offset by larger volume from existing user base. Growing cloud portal and digital signature reach.
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Focus on growing Virtual Cabinet and SmartVault subscription revenues. Sustain customer acquisition investment for SmartVault in the UK and US. Continue transition of UK revenue model to pure subscription. Increase Beta users for GetBusy to search for product-market-fit. Iteration of GetBusy product and marketing strategy on the back of learnings.
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Website: GetBusy.com Email: Investors@GetBusy.com
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