H1 2020 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 A$97.8m in 2016, leading roles with UK listed groups. Previously EMEA Finance Development, Marketing and HR. Director for Dialight plc. 2010 - 2015: Strategic Director at Reckon, guiding Founded Dialight’s light-as-a-service business. company direction across multiple geographies 9 years with Deloitte advising a range of public and and product categories. private clients in the technology and sofuware sector. 12 years experience in the sofuware industry. Proud father of 2. Proud father of 2. 2
OUR MISSION To make people productive and happy 3
Subscription software business Favourable macro trends 91% 18% in remote work, recurring revenue H1 recurring revenue growth digitisation and security 65,000+ Generally resilient Low paying users and end-markets customer concentration growing ARPU 4
Results summary H1 20 Total Recurring Revenue Total Revenue Recurring Revenue % £’m £’m 91% 88% 7.0 6.4 6.0 6.5 6.2 5.4 5.7 5.0 5.2 4.5 4.8 4.2 4.5 3.8 87% 4.1 3.7 3.4 3.1 83% H1 17 H1 18 H1 19 H1 20 H1 16 H2 16 H1 17 H2 17 H1 18 H2 18 H1 19 H2 19 H1 20 H1 16 H2 16 H1 17 H2 17 H1 18 H2 18 H1 19 H2 19 H1 20 Annualised MRR At End Of Period Adjusted Loss Before Tax £’m £’m 13.1 H1 16 H2 16 H1 17 H2 17 H1 18 H2 18 H1 19 H2 19 H1 20 12.3 11.4 10.3 9.4 8.8 (0.30) (0.30) (0.30) (0.30) 7.8 (0.40) 7.1 6.3 (0.50) (0.78) (0.81) H1 16 H2 16 H1 17 H2 17 H1 18 H2 18 H1 19 H2 19 H1 20 DONE (0.95) 5
Our 3 core products Document Management Task Management DONE 6
Strategic financial objectives SmartVault Virtual Cabinet GetBusy Sustained growth in profit Sustained growth in Iteration of product and high quality recurring and cash generation positioning to establish subscription revenues product market fit 7
Summary by business Document Corporate Management Total + Shared SmartVault Virtual Cabinet Total GetBusy GBP £’m GBP £’m GBP £’m GBP £’m GBP £’m GBP £’m 2.6 +34% 3.8 +9% 6.4 +18% - - - Recurring revenue 2.7 +35% 4.2 +3% 7.0 +13% - - - Total revenue (0.3) +26% 2.0 +29% 1.7 +11% (1.1) -84% (0.8) -4% (0.3) +11% Adjusted profjt / (loss) Annualised monthly recurring revenue Paying users Net cash £13.1m 65,133 £2.1m +5% in H1 -1.0% 8
Document Management 9
The problems we solve Wasted time dealing with information issues can lead to a loss in an organisation’s total productivity.* 21.3% Information chaos Email complexity Misfiling & search Stop duplicate files, content Control security risks, track files, receive Prevent significant search time per disorganisation, and data overload. alerts, automatically file attachments. worker per day looking for lost files. Poor security Compliance costs Legal approvals Meet regulatory, audit and litigation Digital signatures and smart workflows View audit trails, reduce risk of requirements to prevent fines and damages. significantly reduce contract turnaround time. confidential leaks and hacks. Version control Document access Information silos One version of the document seen by Log into your document system Integrates with your existing software and everyone, no duplicates and confusion. from outside the office. systems so all your files live in one place. 10 *ICD 2012
Our document management products SmartVault Virtual Cabinet 21,700+ paying subscribers 43,433+ paying subscribers Cloud SAAS document management and portal. On-premise document management with cloud portal and mobility. US origins. Now expanding in UK. UK and ANZ focus with nascent US expansion. Largest vertical: SME accounting and bookkeeping fjrms. Largest vertical: large and medium sized accounting fjrms. Driven by transactional, inbound sales model. Driven by enterprise, outbound sales model. £5.6m of annualised recurring revenue. £7.5m of annualised recurring revenue. 34% recurring revenue growth in H1. 9% recurring revenue growth in H1. 11
Subscription pricing SmartVault Virtual Cabinet Typically $30-$50 per user per month. Pure subscription model started in 2018. Typically £35 per user per month. Dependent on plan and payment frequency. Occasional paid onboarding / Wide range (£15 - £80). migration service. Occasional upfront consulting for Add-ons (e-signature and installation, confjguration and training. seasonal licenses). 12
Competitive landscapes SmartVault Virtual Cabinet Pureplay Competitors: Pureplay Competitors: Citrix ShareFile iManage Docusoft OneView eFileCabinet Doc.It Invu MyDocSafe Practice Management Competitors: Iris DONE Practice Management Competitors: Thomson Reuters CCH Axcess CCH Axcess Thomson Reuters 13
Deep integration with a range of products 14
Our customers Our Strategy Some of the most trusted professional firms in the market use us, including 27% of the UK’s top 100 accountancy practices. Kreston Reeves Lovewell Blake RDP Newmans Started: 2013 Started: 2012 Started: 2012 Buzzacott Duncan & Toplis Martin & Company Started: 2014 Started: 2008 Started: 2013 Begbies Traynor Critchleys Menzies Started: 2018 Started: 2015 Started: 2014 Crowe Clark Whitehill SJD Accountancy Macias Gini & O’Connell Started: 2012 Started: 2013 Started: 2018 Haines Watts Moore Thompson Grunberg & Co Started: 2011 Started: 2010 Started: 2016 Bishop Fleming Brebners BSG Valentine Started: 2013 Started: 2012 Started: 2016 Moore Stephens EQ Accountants Shipleys Started: 2012 Started: 2013 Started: 2016 DONE Beever and Struthers Milsted Langdon TaxAssist Accountants Started: 2014 Started: 2011 Started: 2015 Carter Backer Winter Larking Gowen And many more... Started: 2011 Started: 2011 15
Our Customers: breakdown by industry 3% Financial Services 3% Manufacturing 3% Healthcare 17% Financial Services 1% Legal 6% Insurance 1% Insolvency 28% Other Virtual Cabinet SmartVault 1% Education 1% Legal 1% Manufacturing 17% Other 56% Accounting & Bookkeeping 62% Accounting & Bookkeeping 16
Our core market UK, USA, Australia, New Zealand Accounting & Bookkeeping 1.7m People 200,000 Firms £350m Estimated Annual Market* *Management estimates 17
Our core market: accounting and bookkeeping Largest 20 Customers: 8% 21st to 40th: 5% c60% of our paying users are 41st to 60th: 4% in accountancy. 61st to 80th: 3% Robust, consistently 81st - 100th: 3% Very low customer growing sector. concentration Generally resilient to macro-economic factors. Often capitalises on political, Remaining Businesses 77% economic and fiscal change. 18
Document management strategy Deliver long term, Open greater sustainable growth addressable markets SmartVault Virtual Cabinet Continue to scale US Vertical market expansion Vertical market expansion Cautious US growth Capitalise on new UK channels Upsell to existing customer base Drive ARPU improvement Ongoing cost control DONE Monetise portal user base 19
Task Management 20
Assigned to me 3 Catch-up Participants: In progress Assigned to me 10 New York project Organize You The GetBusy App Emma Phone new client Sarah is assigned to do this Launch new website CONNECTIONS ADD 100 paying users at 30 June and growing. Hire HR manager Send info pack What does Emma need to do? Book weekly meeting Emma Ryan 2 Hire intern Extra information Kickoff workshop Send contact Mark Scott 3 Attachments Results presentation Facebook advert 1 Katie Rush Discuss proposal Create Shop for milk 8 Oliver Green Research data tool 21
Product Journey Product / Experimenting Optimising For Predicting Driving Stage: Market Fit For Growth Growth Growth Growth Focus: • Customer research • Value prop. known • Shift funds to highest • Begin predicting • Head of marketing can converting channels revenue based on drive business with • Competitive analysis • Basic A/B testing known conversions increased investment • More granular A/B testing • Focus on churn reduction Exit Criteria: Product indispensable 2 - 3 working Marketing channels 2 - 3 quarters of accurate Sustained growth marketing channels are ROI positive revenue prediction 22
Concurrent channel approach Digital inbound Pay-per-click, paid social, organic, Masterclasses Associations & education CPD, educational bodies overseeing professions Partners Reselling GetBusy to an installed base Our own channels Upselling existing Document Management customers 23
Illustrative Market Administrators Task and people-focused profession Ability to stay organised is key Privacy and security is a must Beachhead role into wider organisation No dominant incumbent player 2.5m Administrators / £200m annual market for United Kingdom and USA territories 24
COVID-19 Impact 25
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