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2019 Half Year Results
Daniel Rabie (CEO) And Paul Haworth (CFO)
2019 Half Year Results Daniel Rabie (CEO) And Paul Haworth (CFO) 3 - - PowerPoint PPT Presentation
2019 Half Year Results 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 revenues growing to
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Daniel Rabie (CEO) And Paul Haworth (CFO)
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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CFO From 2017
OUR MISSION:
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DONE
GetBusy
Active users 29% revenue growth
SmartVault
through operational leverage with path to profjtability and positioning for monetisation
Virtual Cabinet
65% profit growth
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Healthy, resilient end markets Growing user base MARKET: PRODUCT: Strong regulatory growth drivers Higher recurring revenue per user Low churn rates
DONE
Next generation B2B communication and productivity sofuware. Global potential. Substantially broader addressable market.
GetBusy
In Beta
Cloud Document Management and Cloud Portal for small and medium businesses. Largest vertical SME accounting and bookkeeping fjrms. US origins. Now expanding overseas.
20,166+ Paying Users
SmartVault
Desktop Document Management and Cloud Portal for medium and large enterprises. Largest vertical large and medium sized accounting fjrms. UK and ANZ focus with nascent US expansion.
Virtual Cabinet
45,423+ Paying Users
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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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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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California Consumer Privacy Act Digital Transformation Initiatives GDPR (General Data Protection Regulation) Worldwide Privacy And Security Laws
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SmartVault
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
USA UK ANZ
25 Staff 72 Staff 15 Staff
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(1.4)
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Global ECM Market SME & Self Employed Markets
(Enterprise Content Management) (Small and Medium Sized Enterprises)
Billion USD (2016)
Only showing markets with current operations. The ECM market is expected to grow at 16.4% CAGR, reaching $66 billion by 2022 (researchandmarkets.com)
NZ AUS UK USA 0.5 million 3 million 5 million 65 million
Security, Mobile, Big Data and other strong industry trends are positive for GetBusy
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Accounting & Bookkeeping
1.7m People
UK, USA, Australia, New Zealand
200,000 Firms £350m Annual Market
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62% Accounting & Bookkeeping 62% Accounting & Bookkeeping 19% Financial Services 4% Financial Services 6% Insurance 3% Manufacturing 3% Healthcare 9% Other 27% Other 1% Insolvency 1% Education 1% Legal 1% Legal 1% Manufacturing
Virtual Cabinet SmartVault
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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
62% of our paying users are in accountancy.
Kreston Reeves Lovewell Blake RDP Newmans Haines Watts Moore Thompson Grunberg & Co Begbies Traynor Critchleys Menzies Moore Stephens EQ Accountants Shipleys Buzzacott Duncan & Toplis Martin & Company Bishop Fleming Brebners BSG Valentine Crowe Clark Whitehill SJD Accountancy Macias Gini & O’Connell Beever and Struthers Milsted Langdon TaxAssist Accountants Carter Backer Winter Larking Gowen And Many More...
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Some of the most trusted professional firms in the market use us, including 27% of the UK’s top 100 accountancy practices.
Started: 2013 Started: 2012 Started: 2012 Started: 2014 Started: 2008 Started: 2013 Started: 2018 Started: 2015 Started: 2014 Started: 2012 Started: 2013 Started: 2018 Started: 2011 Started: 2010 Started: 2016 Started: 2013 Started: 2012 Started: 2016 Started: 2012 Started: 2013 Started: 2016 Started: 2014 Started: 2011 Started: 2015 Started: 2011 Started: 2011
DONE
GetBusy
Position for monetisation 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
De-risked growth based on existing customers, products and capabilities.
Develop additional feature sets Create structured pricing plans Grow active customer base Prove a scalable customer acquisition model Scale US Vertical market expansion Establish channels in UK and ANZ Drive ARPU improvements Vertical market expansion Cautious US expansion Upsell to existing customer base Ongoing cost control
Upsell Opportunities New Customer Acquisition
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New Markets Operational Leverage
New ACV: in USA is 35% higher than H1 2018. Total users: are 10.1% higher than June 2018. New ARPU: is 45% higher than for the entire base so new users are more valuable to us. Net MRR Churn: in Q1 is 0.2% compared to 0.2% Q1 2018. LTV:CAC: over H1 has been 4:1, despite additional investment in the team that is yet to fully bear fruit. LTV:CAC: for US businesses exceeded 8:1 in H1. New Channel: being established in the UK.
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DONE
What Is GetBusy?
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GetBusy is where communication meets task management. Grow your business by organising, delegating and actioning
Free Pricing Plans • Cancel Any Time
Start Now - Free Forever
My Workday
New York Project Assigned Annual Conference Suggest Done Future Leaders Meet Delegated Team Stand-up Scheduled Hire New HR Head Reminder
DONE DONE DONE
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Target Audience: Busy Teams Elevator Pitch: Stay On Task And Accomplish More Problems Solved:
Positioning Statement:
For busy people who want to stay on task and accomplish more. GetBusy is where communication meets task management. Grow your business and break the status quo created by inefgective tools like email, realising a future where distraction and noise are replaced with clarity and focus.
D
One Size Fits None
Newcomers Are Successful By Carving Out Niches Within This Email Ecosystem
$35 Billion Market Business Cloud Email 20% CAGR
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PROJECT MANAGEMENT INTERNAL CHAT TASKS EMAIL EFFICIENCY DOCUMENTS
Total Revenue Annualised MRR At End Of Period Total Recurring Revenue
£’m £’m %
H1 17 H1 18 H1 19
3.7 6.3
H1 16 H1 16 H2 16 H2 16 H1 17 H1 17 H2 17 H2 17 H1 18 H1 18 H2 18 H2 18 H1 19 H1 19
4.1 7.1 4.5 7.8 4.8 8.8 5.2 9.4 5.7 10.3 6.2 11.4
Recurring Revenue
£’m
H1 16 H2 16 H1 17 H2 17 H1 18 H2 18 H1 19
3.1 3.4 3.8 4.2 4.5 5.0 5.4
83% 87% 88%
Adjusted Loss Before Tax
£’m
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H1 19 H2 18 H1 18 H2 17 H1 17 H2 16 H1 16 (0.95) (0.78) (0.40) (0.81) (0.50) (0.30) (0.30)
DONE
Group ARPU Up 12% To £174
2011 2012 2013 2014 2015 2016 2017 2018 H1 19 SmartVault acquired
15k 25k 30k 35k 40k 45k 50k 55k 20k
paying users as at June 2019
60k 65k
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DONE
Financial Highlights Operational Highlights
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Drive sustained growth in profit and cash generation
Recurring revenue up 16% to £3.4m Two major new customer wins:
Total revenue up 15% to £4.1m 65% increase in adjusted profit to £1.5m Launch of VC Go mobility suite Operating margin improvement from 26% to 37% Significant process automation (Salesforce, NetSuite, Zendesk)
DONE
GBP £’m GBP £’m GBP £’m
30 Jun 2018 31 Dec 2018 30 Jun 2019
Annualised MRR
£6.2m £6.6m £7.2m
Recurring as % of total
83% 83% 84%
Paid-for user count
40,355 42,425 45,423
ARPU
£148 £156 £158
Net MRR Churn
0.0% 0.3% 0.2%
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DONE
Financial Highlights Operational Highlights
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Drive sustained growth in high quality recurring subscription revenues
Recurring revenue up 27% to £1.9m (22% at constant currency) Successful migration of product to AWS:
season Total revenue up 29% to £2.0m 81% gross margin (H1 2018: 89%) due to AWS migration Adjusted loss £(0.4)m (H1 2018: £(0.2)m) due to customer acquisition investments Clear path to medium-term profitability US business demonstrating significant scaling potential UK team now fully established and poised to scale
DONE
GBP £’m GBP £’m GBP £’m
30 Jun 2018 31 Dec 2018 30 Jun 2019
Annualised MRR
£3.2m £3.7m £4.2m
Recurring as % of total
97% 97% 96%
Customer count
4,768 5,069 5,332
Paid-for user count
18,311 19,118 20,166
ARPU
£182 £193 £209
Net MRR Churn
0.2% 0.5% 0.2%
LTV : CAC
5:1 6:1 4:1
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DONE
Highlights
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Cautious investment in development and product-market fit
Total spend of £0.6m (H1 2018: £0.5m)
infrastructure Continued investment in customer acquisition, feature enhancement and
DONE
GBP £’m GBP £’m
H1 19
H1 18
Adjusted loss before tax (0.3) (0.5) Trade Working Capital (0.1) (0.1) Deferred Revenue
Operating Cashfmow (0.4) (0.3) Capex (0.1) (0.1) Net Cashfmow (0.5) (0.4)
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Operating cashflow broadly follows Adjusted loss / profit
£1.9m cash at 30 June
DONE
Strong recurring revenue base 88%
Document management business 18%
Low churn <0.5% per month Resilient, unconcentrated customer base Upsell opportunities increasing ARPU Significant cash generation potential Document management business 19% revenue growth
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£11.4m annualised MRR as at June 2019
Product functionality improvements Operational infrastructure build-out Position for monetisation
GetBusy
Capitalise on favourable customer acquisition metrics Additional investment in sales, marketing and development capability ARPU improvement
SmartVault
Further growth in recurring subscription revenue Disciplined investment
Virtual Cabinet
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DONE
Majority of share register by number is ANZ retail investors. 7.7% of company owned by 3,300 individuals with fewer than 5,000 shares – average holding market value of £300. Costs of trading disproportionate to holding values. Board is considering a share consolidation and subdivision during H2.
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Presentation.
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Website: GetBusy.com Email: Investors@GetBusy.com