2019 Annual Results Investor Presentation Daniel Rabie (CEO) And - - PowerPoint PPT Presentation

2019 annual results investor presentation
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2019 Annual Results Investor Presentation Daniel Rabie (CEO) And - - PowerPoint PPT Presentation

2019 Annual Results Investor Presentation Daniel Rabie (CEO) And Paul Haworth (CFO) 3 Daniel Rabie Paul Haworth CEO From 2017 CFO From 2017 2015 to 2017: COO of Reckon (ASX:RKN) with 7 years in senior corporate and operational fjnance


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2019 Annual Results Investor Presentation

Daniel Rabie (CEO) And Paul Haworth (CFO)

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Daniel Rabie

CEO From 2017

2015 to 2017: COO of Reckon (ASX:RKN) with revenues growing 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. 12 years experience in the sofuware industry. Proud father of 2. 7 years in senior corporate and operational fjnance roles with UK listed groups. Previously EMEA Finance Director for Dialight plc. Founded Dialight’s light-as-a-service business. 9 years with Deloitte advising a range of public and private clients in the technology and sofuware sector. Proud father of 2.

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Paul Haworth

CFO From 2017

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To make people productive and happy

OUR MISSION

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Total Revenue Annualised MRR At End Of Period Recurring Revenue Adjusted Loss Total Recurring Revenue Fully Expensed Development Spend

£’m £’m £’m £’m % £’m

Results Summary

FY16 FY16 FY17 FY17 FY18 FY18 FY19 FY19

6.5 (1.7) (1.2) (0.8) (0.6) 8.0 9.5

FY16 FY17 FY18 FY19

7.8 9.3 10.9 12.7 11.4

83% 86% 87% 90%

4 FY16 FY17 FY18 FY19

7.1 8.8 10.3 12.3

FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19

2.8 2.6 2.4 2.5

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Our products

Document Management

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DONE

Productivity

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SLIDE 6

GBP £’m GBP £’m GBP £’m GBP £’m GBP £’m GBP £’m

SmartVault Virtual Cabinet GetBusy Total Document Management Total Corporate + Shared

Recurring revenue

4.2 +25% 7.2 +16% 11.4 +19%

  • Total revenue

4.3 +25% 8.3 +11% 12.7 +15%

  • Adjusted profjt / (loss)

(1.0) -36% 3.4 +42% 2.4 +45% (1.4) -41% (1.6) -7% (0.6) +29%

Summary by business

£12.3m 65,850 £1.7m

Annualised monthly recurring revenue

+19% +7.0%

Paying users Net cash

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Document Management

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The Problems We Solve

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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Our document management products

On-premise document management with cloud portal and mobility. UK and ANZ focus with nascent US expansion. Largest vertical: large and medium sized accounting fjrms. Driven by enterprise, outbound sales model. £7.5m of annualised recurring revenue. 14% ARR growth in 2019.

Virtual Cabinet

45,251+ paying subscribers

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Cloud SAAS document management and portal. US origins. Now expanding in UK. Largest vertical: SME accounting and bookkeeping fjrms. Driven by transactional, inbound sales model. £4.8m of annualised recurring revenue. 31% ARR growth in 2019.

SmartVault

20,599+ paying subscribers

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Powerful Growth Drivers

Consumer expectation of digitised services Digital transformation and productivity initiatives GDPR (General Data Protection Regulation) Worldwide Privacy And Security Laws

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Our Customers: breakdown by industry

56% Accounting & Bookkeeping 62% Accounting & Bookkeeping 17% Financial Services 3% Financial Services 6% Insurance 3% Manufacturing 3% Healthcare 17% Other 28% Other 1% Insolvency 1% Education 1% Legal 1% Legal 1% Manufacturing

Virtual Cabinet SmartVault

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Our Markets - Typical Niche

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*Management estimates

Accounting & Bookkeeping

1.7m People

UK, USA, Australia, New Zealand

200,000 Firms £350m Estimated Annual Market*

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Resilient end-markets and low customer concentration

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Accountancy User Segment

Robust, consistently growing sector. Resilient to macro-economic factors. Capitalise on political, economic and fiscal change.

Remaining Businesses 77% Largest 20 Customers: 8% 21st to 40th: 5% 41st to 60th: 4% 61st to 80th: 3% 81st - 100th: 3%

Very Low Customer Concentration

c60% of our paying users are in accountancy.

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SmartVault

Our Competitors

Virtual Cabinet

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Within our specific niches

iManage Iris

Practice Management Competitors: Pureplay Competitors:

Docusoft OneView Thomson Reuters Invu CCH Axcess

Pureplay Competitors:

Citrix ShareFile MyDocSafe eFileCabinet Doc.It CCH Axcess

Practice Management Competitors:

Thomson Reuters

DONE

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Deep integrations with a range of products

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Sustained growth in high quality recurring subscription revenue

SmartVault Virtual Cabinet

Sustained growth in profit and cash generation

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Deliver long term, sustainable growth Open greater addressable markets

Our Strategy

De-risked growth based on existing customers, products and capabilities.

Scale US Vertical market expansion Capitalise on new UK channels Drive ARPU improvements Vertical market expansion Cautious US expansion Upsell to existing customer base Ongoing cost control

DONE

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Productivity

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Our New Product: GetBusy

Productivity app for teams. Organises tasks and communication into intuitive threads. Helps teams become more

  • rganised and accountable.

Simple, elegant design that is efgortless for the user:

  • Easy delegation
  • Auto-prompting
  • Pause and resume tasks
  • Bulk contact import
  • Smart tagging and intuitive
  • rganisation

What it does:

Catch-up 3 Assigned to me Organize 10

Assigned to me

In progress

New York project Phone new client Hire HR manager Book weekly meeting Kickoff workshop Results presentation Discuss proposal

Emma Ryan

CONNECTIONS

ADD

2 3 1 Mark Scott Katie Rush

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GetBusy: The Opportunity

No other established application in this space. Horizontal product: broadens our addressable market. Initial marketing leads and sales suggest strong demand for a product solving these problems.

My tasks

New In progress In progress

Nick → You

Launch website

Katie → You

Send info pack

You → Mark

Hire intern

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GetBusy: Where we are now

App now available on multiple platforms. Growing base of retained users and paying users. Inside sales and customer success team in place Q1 2020. In talks with various potential channel partners. Clear targets in 2020 for customer acquisition.

Catch-up 3 Assigned to me Organize 10

Assigned to me

In progress

New York project Phone new client Hire HR manager Book weekly meeting Kickoff workshop Results presentation Discuss proposal Research data tool

Emma Ryan

CONNECTIONS

ADD

2 3 1 Mark Scott Katie Rush 8 Oliver Green

Launch new website Send info pack Hire intern Send contact Facebook advert Shop for milk

You Extra information Attachments Emma Participants: Sarah is assigned to do this

What does Emma need to do?

Create

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Results & Metrics

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Where are we now

Total revenue £12.7m (+15%) Group recurring £11.4m (+19%) Group adjusted loss £(0.6)m (+29%) Net cash £1.7m (-30%) Paying users 65,850 (+7%) Group ARPU £186 (+12%)

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SmartVault

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GBP £’m GBP £’m

2019

2018

Recurring revenue 4.2 3.2 +25% Revenue 0.1 0.1 Total revenue 4.3 3.3 +25% COGS (0.8) (0.4) Gross profjt 3.5 2.9 +21% SG&A (3.6) (2.6) Development costs (0.9) (1.0) Adjusted profjt / (loss) (1.0) (0.7) (36)%

Focus on growth in recurring subscription revenue

Revenue growth from combination of new users and improved monetisation

  • f base.

Channel established in UK with TaxCalc partnership. Gross margin reduction due to migration to AWS. Signifjcant investment in current and future growth, including building UK team and expanding US. Major product investment to be made in 2020.

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2019 2018 2017

Paying users

20,599 19,118 17,925 +7.7% in 2019

ARPU £

232 194 169 +22% in 2019 following price plan rationalisation

Annualised MRR £’m

4.8 3.7 3.0 +31% in 2019 at constant currency

Net MRR Churn

0.0% 0.5% 0.7%

LTV:CAC

4:1 6:1 3:1

SmartVault Key Metrics

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Virtual Cabinet

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GBP £’m GBP £’m

2019

2018

Recurring revenue 7.2 6.2 +16% Revenue 1.1 1.3 Total revenue 8.3 7.5 +11% COGS (0.2) (0.2) Gross profjt 8.1 7.3 +11% SG&A costs (4.0) (4.5) Development costs (0.8) (0.4) Adjusted profjt / (loss) 3.4 2.4 +42%

Focus on growth in profit and cash generation

Recurring revenue growth from user growth and ARPU. Non-recurring revenue decline due to shifu in model to pure subscription. SG&A savings from lower commissions,

  • perational headcount and reduction in
  • perational footprint in Australia.

Development back to normal runrates following switch of resource to SmartVault in 2018.

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2019 2018 2017

Paying users

45,251 42,425 39,518 +6.7% in 2019

ARPU £

165 156 143 +6.7% in 2019

Annualised MRR £’m

7.5 6.6 5.7 +14% in 2019 at constant currency

Net MRR Churn

0.1% 0.3% 0.7%

Virtual Cabinet Key Metrics

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GetBusy

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GBP £’m GBP £’m

2019

2018

Recurring revenue

  • Revenue
  • Total revenue
  • COGS
  • Gross profjt
  • SG&A costs

(0.5) (0.1) Development costs (0.9) (0.9) Adjusted profjt / (loss) (1.4) (1.0) (42)%

First signifjcant operational spend in 2019. Includes marketing and building

  • perational infrastructure.

D

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2019

GBP £’m

2018

GBP £’m

Adjusted loss before tax (0.6) (0.8) Trade Working Capital 0.2 0.3 Deferred Revenue (0.4) 0.4 Operating Cashfmow (0.8) (0.1) Capex (0.1) (0.1) Operating Cashfmow (0.9) (0.2)

Net Cashflow

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Operating cashflow broadly follows Adjusted profit / loss Capex will be more significant in 2020 with two office fit-outs Potentially material R&D tax cash reclaims pending

£1.7m cash at 31 December

D

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Outlook

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2020 Priorities

Focus on sustained high growth in recurring revenue. Make signifjcant product investments to support future growth. Scale core US business. Consolidate and scale UK.

SmartVault

Further improvement in operating margin from cost control and

  • perating leverage.

Modest recurring revenue growth.

Virtual Cabinet

Establish inside sales and customer success teams. Establish channels. Sustained marketing spend.

GetBusy

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Important Notice

The information contained in these slides and this presentation is being supplied to you by GetBusy Plc (“GetBusy” or the “Company”) solely for your information and may not be reproduced or redistributed in whole or in part to any other person. This document has not been approved by a person authorised under the Financial Services and Markets Act 2000 (as amended) (“FSMA”) for the purposes of section 21 FSMA and therefore these slides and this presentation are being delivered and made only to a limited number of persons and companies who are persons who have professional experience in matters relating to investments and who fall within the category of person set out in Article 19 of the FSMA (Financial Promotion) Order 2005 (the “Order”) or are high net worth persons within the meaning set out in Article 49 of the Order or are otherwise permitted to receive it. By accepting the slides and attending this presentation and not immediately returning the slides, the recipient represents and warrants that they are a person who falls within the above description

  • f persons entitled to receive the slides and attend the presentation. Any person falling
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presentation must return it immediately. These slides and this presentation do not constitute, or form part of, a prospectus relating to the Company nor do they constitute or contain any invitation or ofger to any person to underwrite, subscribe for, otherwise acquire, or dispose of any shares in the Company or advise persons to do so in any jurisdiction, nor shall they, or any part of them, form the basis of or be relied on in any connection with any contract or commitment whatsoever. Recipients of these slides and/or persons attending this presentation who are considering a purchase of ordinary shares in the Company are reminded that any such purchase must be made solely on the basis of the information that the Company has offjcially released into the public domain. Whilst all reasonable care has been taken to ensure that the facts stated in these slides and this presentation are accurate and the forecasts, opinions and expectations contained in these slides and this presentation are fair and reasonable, the information contained in this document has not been independently verifjed and accordingly no representation or warranty, express or implied, is made as to the accuracy, fairness or completeness of the information or opinions contained in these slides

  • r this presentation and no reliance should be placed on the accuracy, fairness or

completeness of the information contained in these slides and this presentation. Some of the statements are the opinions of the directors of the Company. No person is under any obligation to update or keep current any of the information contained in these slides or the presentation. None of the Company, its shareholders or any of their respective advisers, parents or subsidiaries nor any of their respective directors,

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These slides and this presentation do not constitute a recommendation regarding the shares of the Company nor should the slides or the presentation be considered as the giving of investment advice by the Company or any of its shareholders, directors,

  • ffjcers, agents, employees or advisers. Recipients of these slides and this presentation

should conduct their own investigation, evaluation and analysis of the business, data and property described therein. If you are in any doubt about the information

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Important Notice

contained in these slides or this presentation, you should contact a person authorised by the Financial Services Authority who specialises in advising on securities of the kind described in these slides and presentation. Past performance information given in these Presentation Materials is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. These Presentation Materials contain forward-looking statements, including in relation to the Company, the Group, Admission, and the Group’s proposed strategy, plans and

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Website: GetBusy.com Email: Investors@GetBusy.com