Full year results 2019 23 January 2020 Agenda Introduction & - - PowerPoint PPT Presentation

Full year results 2019

23 January 2020

Full year results January 2020 2

Introduction & highlights Financials & customer deep dive Strategic review & outlook Questions & Answers Jason Kingdon Ijoma Maluza Jason Kingdon

Agenda

3 Full year results January 2020

Introduction & highlights

Full year results January 2020 4

Financial highlights

• Exit MRR uses the average FX rate which at the end
• f October 2019 was £1:$1.25

£101.0m

Revenue FY19 FY18 £101.0m £55.2m

96%

Recurring licence revenue FY19 FY18 96% 94%

£10.6m

Exit monthly recurring revenue* FY19 FY18 £10.6m £6.2m

£(71.9)m

Adjusted EBITDA FY19 FY18 £(71.9)m £(21.6)m

£74.1m

Cash FY19 FY18 £74.1m £50.5m

83%

increase in revenues

96%

licence based, recurring revenues

71%

growth in MRR

5 Full year results January 2020

Financials & customer deep-dive

Full year results January 2020 6

Revenue breakdown

By type

Licence and Support Professional services Sponsorship & other

£13.7m £9.0m £26.8m £21.3m £7.1m £47.5m £40.9m £12.6m

EMEA Americas APAC

2019 2018 2017 £1.8m

96% 1% 3% By geography

Full year results January 2020 7

Operating cost base

• Investments designed to

drive future growth

• Considerable flexibility in

Group cost base

• 64% (£108.1m) of total cost

base relates to payroll cost

£m FY2019 FY2018 Sales and Marketing 105.3 37.7 Professional Services 20.3 7.5 Research & Development (R&D)* 12.5 4.3 General & admin 32.8 12.5 Costs 170.9 62.0 Commissions & other adj. 2.6 19.1 Operating expenses 173.5 81.1

Notes: *£4.6m of R&D costs have been capitalised in FY2019 (FY2018: £0.3m). Also includes expenses relating to our TAP, which are classified as sales & marketing expenses in some other reconciliations ** Commissions & adj. reconcile Costs to Operating expenses in the Consolidated statement of profit or loss and other comprehensive income for the year ended 31 October 2019 as follows: 1. FY2019: Net impact of Share Based Payments of £7.2m and Capitalised R&D of £(4.6)m 2. FY2018: Net impact of Share Based Payments of £4.0m, Capitalised R&D of £(0.3)m and Commissions of £15.4m

Full year results January 2020 8 (80.0) (70.0) (60.0) (50.0) (40.0) (30.0) (20.0) (10.0)

• Operating cash flow
• Operating cash outflow

reflects peak of investment programmes

• Investments will drive cash

generation in 2020

Cash EBITDA Decrease Increase Total Working Capital Operating Cashflow Capitalised Spend Adjusted Operating Cashflow H1 2019 H2 2019 Full Year 2019 (£71.9m) £13.8m (£57.9m) (£5.9m)

Notes:

• 1. Cash EBITDA is loss after tax adjusted for amortisation, depreciation, loss on property, plant and

equipment, Finance income, Share-based payment expense, Income tax expense

• 2. Capitalised Spend includes Payment of software development costs and Purchases of property, plant

and equipment

• 3. Adjusted Operating Cashflow is Operating Cashflow less Capitalised Spend

(£63.8m) (£19.6m) (£44.2m)

Full year results January 2020 9

New customer additions

• 1,677 enterprise customers
• Large upsell opportunity

Share of industry participants in Forbes Global 2000

Building a sizeable enterprise customer base

2018 2017 2016

Customers

153 477 971 1,677

High quality customer base

2019

478

25 46 67 70

Sectors covered

2019

Note: The Forbes Global 2000 is generally updated annually in the second quarter of the calendar year, and we adjust current and prior period G2K customer counts following the release of the latest Global 2000 list. We also adjust the G2K count for acquisitions, spin-offs and other market activity. Our G2K customer count does not include large private companies, government agencies and educational

• rganisations, which represent a growing portion of our customer base. As a result, we expect our G2K customer

count metric to become less relevant to our business over time.

Full year results January 2020 10

Growth in upselling continues to unlock value

• Land-and-expand model
• Consistent year-on-year

growth in Upsells

• Upsells accounted for 72%
• f 2019 MRR additions
• Upsell deal sizes consistent

across 2018 & 2019

Number of upsell deals

1,139 723 264 81

Number of customers upsold

544 310 131 47

2019 2018 2017 2016 2019 2018 2017 2016

Full year results January 2020 11

Retention remains very strong

£3.2m £6k £20k £6.2m £40k

• 99.3% gross retention rate
• 143% net retention rate

£9.9m

2019 2018 2017

MRR breakdown

Closing MRR MRR acquired via Thoughtonomy

£10.6m £0.7m

MRR lost during the year

Full year results January 2020 12

The Group cohort shows significant growth across periods

Cohort Growth H2 2019 n/a H1 2019 1x H2 2018 2x H1 2018 2x H2 2017 3x H1 2017 4x H2 2016 6x H1 2016 5x H2 2015 6x H1 2015 3x

H1 2015 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2016 H2 2015

Full year results January 2020 13

Summary

• Delivered excellent revenue growth across all three main regions
• Continued to strengthen existing customer relationships as

demonstrated by high net retention rate of over 143%

• Investments made during 2019 will drive growth and cash

generation in 2020 and beyond

14 Full year results January 2020

Strategic review & outlook

Full year results January 2020 15

Our Vision:

• 1. We build Digital Workers aka “Software Robots”

– Software as close to, or to exceed, a human worker

• 2. Blue Prism :

– Enterprise grade – Blue Prism robot is full stack software – Enterprise collaboration – Swarm to tasks “self-organizing” – Solves tasks

• 3. Features

– Democratise technology – Consumes AI and is the on-ramps for deep AI consumption in the enterprise – Changes technology landscape through inter-operation

Highest ROI studied by LSE Every organisation needs a digital workforce:

People Systems Digital Workers

1/3rd 1/3rd 1/3rd

A Digital Workforce in every enterprise

The 21st Century Organisation

Blue Prism revenue is license rental – “robot wages”

Full year results January 2020 16

A Digital Workforce in every enterprise

20%+

• f Forbes Global 2000 (G2K)

96%

Retention rate

58%

Increase in upsells

Full year results January 2020 17

New product

Smarter, faster, more intelligent robots…

• Blue Prism Cloud

– Hub – Interact – IADA

• Digital Exchange

– 100s of assets (robot assisted) – Enterprise grade – Self Serve – NLP, ML, OCR, Image, Sentiment, Search, Optimisation… – SAP, Salesforce

Knowledge & Insight

Robot skills – business operating system

Visual Perception Learning Planning & Sequencing Problem Solving Collaboration BLUE PRISM DIGITAL WORKFORCE

DECIPHER DIGITAL EXCHANGE

3 1 3

The Digital Workforce forms a platform to drive automation Decipher, which will be available in 2020, builds vision and machine learning skills into the Digital Workforce The Digital Exchange provides easy access to our technology ecosystem of vendors like AWS and Google, bringing improved skills to the Digital Workforce

2 1

DIGITAL EXCHANGE

Full year results January 2020 18

Automation as a skills exchange Digital asset Solutions

Who: Blue Prism ecosystem members who have solutions

• Independent Software Vendors (ISVs)
• System Integrators (SIs)
• End Users

Why: to distribute the Assets they have developed to Buyers for a fee or for free Who: Blue Prism ecosystem members who have business problems to solve

• End Users
• System Integrators (SIs)
• Resellers

Why: to quickly solve their business problems and thus increase the value of their Blue Prism licenses through use of the DX

The DX helps Blue Prism customers solve their business problems using Assets that Sellers have posted on the DX, thus accelerating adoption and use of the Blue Prism platform

DX

“There is an Asset for that!”

Full year results January 2020 19

Digital singularity…

TAP Affiliate Partners

Visual Problem Solving Planning + Sequencing Learning Knowledge + Insight Collaboration

TAP Premium Partners

Full year results January 2020 20

Conclusions and outlook

• Strong 2019 performance

– Underpins confidence in our enterprise focus and the applicable market

• Supporting our customers in building the 21st

Century enterprise

• Investments in 2018 & 2019 have reinforced the

business model

• 2020 another step forward in exciting market

Full year results January 2020 21

Disclaimer

This document comprises the slides for a presentation concerning Blue Prism Group Plc (the “Company”) and its 2019 full year results (the “Presentation”). No reliance may be placed for any purposes whatsoever on the information in this Presentation or on its completeness. The Presentation is intended to provide a general overview of the Company’s business and does not purport to deal with all aspects and details regarding the Company. Accordingly, neither the Company nor any of its directors, officers, employees or advisers nor any other person makes any representation or warranty, express or implied, as to, and accordingly no reliance may be placed on, the fairness, accuracy or completeness of the information contained in the Presentation or the views given or implied. Neither the Company nor any of its directors, officers, employees or advisers nor any other person shall have any liability whatsoever for any errors or omissions or any loss howsoever arising, directly or indirectly, from any use of this information or its contents or otherwise arising in connection therewith. This Presentation does not and is not intended to constitute, and should not be construed as, an offer, inducement, invitation or commitment to purchase, subscribe to, provide or sell any securities, services or products of the Company in any jurisdiction, or any part of any solicitation of any such offer, inducement, invitation or commitment, or to provide any recommendations for financial, securities, investment or other advice or to take any decision. You are encouraged to seek individual advice from your personal, financial, legal, tax and

• ther advisers before making any investment or financial decisions subscribing for or purchasing any securities.

Certain statements in this Presentation regarding the Company are, or may be deemed to be, forward-looking statements (including such words as “believe”, “expect”, “estimate”, “intend”, “anticipate” and words of similar meaning). These forward-looking statements are neither historical facts nor guarantees of future performance. Such statements are based on current expectations and belief and, by their nature, are subject to a number of known and unknown risks, uncertainties and assumptions which may cause the actual results, events, prospects and developments of the Company and its subsidiaries to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements contained in this Presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Except as required by applicable law or regulation, the Company (nor its members, directors, officers, employees, agents or representatives) undertakes any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The information contained in this Presentation is for background purposes only. The subject matter of the Presentation may be subject to change and the Company does not take any responsibility for updating or amending the contents to reflect such changes. The material contained in this Presentation reflects current legislation and the business and financial affairs

• f the Company, which are subject to change without notice.

This Presentation summarises information contained in the 2019 full year results. No statement in this Presentation is intended to be a profit forecast and no statement in this Presentation should be interpreted to mean that earnings per Company share for current or future financial years would necessarily match or exceed the historical published earnings per Company share. The information contained in this Presentation has been obtained from Company sources and from sources which the Company believes to be reliable but it has not independently verified such information and does not guarantee that it is accurate or complete.