Half year results 2019 19 June 2019 Agenda Introduction & - - PowerPoint PPT Presentation

Half year results 2019

19 June 2019

Half year results June 2019 2

Introduction & highlights Financials Strategic update & conclusions Questions & Answers Alastair Bathgate Ijoma Maluza Alastair Bathgate

Agenda

3 Half year results June 2019

Introduction & highlights

Half year results June 2019 4

Introduction

• Great progress in a high growth, but

competitive market

• Investing in product, go to market and the team
• Acquisition of Thoughtonomy

– Mid-tier cloud based product offering – Identify cloud opportunities in the core enterprise market

Half year results June 2019 5

Sales highlights

Customer momentum continues at pace Delivers pipeline to upsell, with proven track record 1,337 customers covering 27% of Forbes Global 2000

Key metrics

911

Deal count 1H19 2H18 1H18 911 800 559

349

New customers 1H19 2H18 1H18 349 305 223

496

Upsells 1H19 2H18 1H18 496 425 298

99.5%

Renewals 1H19 2H18 1H18 99.5% 97.3% 100%

New logos

Half year results June 2019 6

Strategic & operational highlights

Launched connected - RPA Blue Prism World

• c.4,500 attendees

Headcount increased by 174% 21 Customer Success heads Launched success accelerator Deepening partner relationships – e.g. EY Building the Blue Prism Labs team Decipher – cognitive in the platform Used by 512 customers Private assets to help share and scale e-commerce introduced –download Blue Prism Expanding technology partnerships 703 employees Enhancing the Executive team Strong cultural framework

Sales & Marketing Customer Success & Partnerships Digital Exchange maturing Investing in R&D Reinforcing the organisation

Half year results June 2019 7

Thoughtonomy

8 Half year results June 2019

Financials

Half year results June 2019 9

Financial highlights

• Exit MRR uses the average FX rate which at the end
• f April 2019/beginning of May 2019 was £1:$1.29

£41.6m

Revenue 1H19 1H18 £41.6m £22.9m

97%

Recurring licence revenue 1H19 1H18 97% 93%

Key financials (IAS 18 basis)

£7.6m

Exit monthly recurring revenue* 1H19 FY18 £7.6m £6.2m

£(34.0)m

Adjusted EBITDA 1H19 1H18 £(34.0)m £(4.2)m

£129m

Cash 1H19 1H18 £129m £55m

Strong performance continues – 82% growth in revenues High quality, licence based revenues MRR increased by £1.4m to £7.6m

Half year results June 2019 10

Revenue by geography

• Americas grown by 99%
• EMEA remains strong
• APAC presents a significant
• pportunity

£6.9m £2.7m £11.9m £8.4m £2.6m £19.5m £16.7m £5.4m

EMEA Americas APAC

1H 19 1H 18 1H 17

Presented on IAS 18 basis

Half year results June 2019 11

Market activity and deal sizes

• Deal count has grown

significantly

• Flexible contract terms

have increased proportion

• f 1-year deals
• Removed perceived

barriers to customers

100 200 300 400 500 600 700 800 900 1,000 2 4 6 8 10 12 14 16 18 20

1H 19 1H 18

Deals secured

2H 18 1H 17 2H 17

Average deal size

Note: Average deal size based on incremental recognised revenue divided by number of deals

Half year results June 2019 12

New customers provide a base to grow

• Upsell opportunity is

across cohorts

• Focused on continuing

this upsell momentum

Customer cohort analysis by monthly revenues

1H 19 1H 18 1H 17 2H 17 2H 18

2017 H1 2017 H2 2018 H1 2018 H2

Half year results June 2019 13

MRR progression

• Continued strong growth

in exit MRR

• Rate of growth reflects

the changed commercial model

1 2 3 4 5 6 7 8

Prior periods MRR New MRR

1H 19 1H 18 1H 16 2H 16 2H 18 1H 17 2H 17

Prior periods (prior to 1H 2018) have not been adjusted to the revised MRR definition

Half year results June 2019 14

For the sixth months ended 30 April 2019 (£m) 1H19 IAS 18 1H19 IFRS 15 1H18 IAS 18 (IAS 18)% change Licence revenue 40.5 39.3 21.5 88% Other revenues 1.1 1.1 1.4 (21)% Total revenue 41.6 40.4 22.9 82% Staff costs (57.8) (53.6) (22.9) (152)% Other expenses (21.4) (21.4) (5.5) (289)% Adjusted loss from operations (37.6) (34.6) (5.5) (584)% Depreciation and amortisation 0.3 0.3 0.1 200% EBITDA (37.3) (34.3) (5.4) (591)% Share based payments 3.3 3.3 1.2 175% EBITDA post adjustments (34.0) (31.0) (4.2) (710)%

Income statement

• Licence revenue growth

ahead of total revenue growth

• EBITDA loss driven by:

– Investment in growth – £4.2m sales commissions

Half year results June 2019 15

Cash flow

For the sixth months ended 30 April 2019 (£m) 1H19 1H18 Adjusted EBITDA (31.0) (4.2) Increase in trade and other receivables (4.1) (4.2) Increase in trade and other payables 5.0 (0.6) Increase in deferred revenue 11.8 8.5 Net cash flows from operating activities (18.6) (0.5) Income taxes paid (0.3)

• Purchase of intangible fixed assets

(0.2)

• Purchase of property, plant & equipment

(0.5) (0.2) Interest received 0.2

• Issue of ordinary shares (net of issue costs)

98.5 39.0 Net increase in cash and cash equivalents 79.1 38.3 Cash and cash equivalents at the beginning

• f the year

50.5 16.3 Effect of foreign exchange on cash and cash equivalents (0.2)

• Cash and cash equivalents at the end of the year

129.4 54.6

Adjusted EBITDA Operating cash flow

1H 19 FY18 1H18

• 40
• 30
• 20
• 10

Half year results June 2019 16

Balance sheet

• Continue to manage

balance sheet conservatively

• £100m placing in January
• Growth in the business

impacts receivables and payables

For the half year ended 30 April 2019 (£m) 1H19 1H18 Non-current assets 13.3 0.5 Trade and other receivables 35.5 19.1 Cash and cash equivalents 129.4 54.6 Current assets 164.9 73.7 Total assets 178.2 74.2 Deferred revenue 59.7 35.8 Trade and other payables 24.7 7.5 Total liabilities 84.4 43.3 Net assets 93.8 30.9 Share capital & premium 150.5 50.5 Share based payment reserve 7.2 2.4 Other reserves 0.4 0.8 Retained losses (64.3) (22.8) Equity attributable to shareholders 93.8 30.9

Half year results June 2019 17

Thoughtonomy financial details

• Expected to complete by

end of July 2019

• £80m Enterprise Value
• Stepped payment process

– Completion - £12.5m cash; £23m equity – First anniversary - £20m equity – 18-month anniversary - £4.5m cash – Two-year anniversary - £20m equity

77

Customers

54

Employees

£m Thoughtonomy 12 months to Apr-19 (Unaudited) Blue Prism Potential Impact (4-months to FY19)

• Adj. Revenue

7.4 2.0 – 3.0

• Adj. EBITDA

(3.6) (1.0 – 2.0)

Note 1. Thoughtonomy financials are unaudited and preliminary based on standalone financials. The actual impact will depend on Blue Prism’s accounting policies 2. Customer and Employee numbers as at end of May 2019

£0.6m

MRR

Half year results June 2019 18

Summary

• Commercial changes have driven an increase in

deals and new customer wins

• Deal sizes have rebased in the short-term,

reflecting these changes

• The resulting customer base provides a

significant opportunity for upsell

• Our track record for retaining and upselling

customers is very strong

19 Half year results June 2019

Strategic update & conclusions

Half year results June 2019 20

Marketplace

Software-as a Service HfS, November 2018

‘The future of Business Operations is here’ 30 November 2018

Continually rated as a market leader

Enterprise market Mid-market

Cloud

will increasingly be the deployment method of choice “The initial adoption of "attended RPA” ……will eventually drive more "unattended RPA" where the increased value will be created and genuine alignment between RPA models proving to be a gateway to broader AI engagements”

Half year results June 2019 21

Telefonica connected-RPA in action

• Telefónica’s ambition is to maintain and enhance their position as

global leader by embracing intelligent process automation as a key pillar in its digital transformation strategy

• After discussing with Blue Prism realised that they needed an

enterprise grade solution aligned with security, governance, scalability and central control

• Projects are already being deployed across Telefonica’s most

important operators, including Spain and Brazil

• Demonstrates both the strength of Blue Prism and the potential
• pportunity across the customer base

Significant deal secured in the half 500+ Digital Worker commitment

Half year results June 2019 22

We have focused the product

• n enterprise connected-RPA

Connected-RPA is enabled by providing a platform which is:

• Business led
• Controlled and governable
• Intelligent

To achieve these the platform must also be secure and scalable These are crucial to the success and safety

• f any large RPA deployment

Market penetration in regulated industries, where these capabilities will be assessed as essential

Major banks Insurance Pharma

Share of industry participants in Forbes Global 2000

Half year results June 2019 23

Product development supports connected-RPA

Digital exchange

Embracing the cloud Ease of adoption Embed AI

Further enterprise

• pportunities

Blue Prism Labs Decipher announced – human in the loop Direct purchase Trial versions in Azure & on prem Thoughtonomy provides mid-tier proposition Enterprise deployments in the cloud

Six Intelligent Automation Skills to deliver true

• perational agility

Knowledge & Insight Visual Perception Learning Planning & Sequencing Problem Solving Collaboration

Community / learning edition

Half year results June 2019 24

The Digital Exchange is increasingly central

Half year results June 2019 25

Managing our sales investments

Managing growth in the sales team

• Training ‘Spacecamp’ programme for new starters
• Reorganising against market priorities
• High-touch customer engagement

Customer Success minimises attrition & maximises upsells

• Increasing post sales contact
• CCO from one of our largest customers

Connected-RPA drives our marketing strategy

• New CMO from Silicon Valley

5 core geographies

DACH United States Japan China UK

Half year results June 2019 26

Conclusions & outlook

Connected-RPA uniquely addresses our market

• We are building a large customer base and have a proven

track record of upselling

• Connected-RPA vision starting to deliver significant deals
• We continue to invest in the future opportunity, including
• ur strategic investment in Thoughtonomy
• Exit MRR and our sales pipeline provide our confidence

in our full year 2019 performance

27 Half year results June 2019

Appendices

Half year results June 2019 28

Operating expense breakdown

1H18 FY18 1H19 General & Administrative 4.0 10.4 10.9 Sales & Marketing 21.6 62.8 61.5 Research & Development 1.6 4.0 3.5 Total Operating Expenses 27.2 77.2 75.9

• Excludes share based

payments

Half year results June 2019 29

Restated MRR

• MRR has been restated to

reflect the full impact of deals won during the last month of the reporting period

Old definition New definition FY17 2.8m 3.2m 1H18 4.4m 4.7m FY18 5.6m 6.2m 1H19 n/a 7.6m

Half year results June 2019 30

Sales structure

• Quota carrying: Sales

employees working directly with customers and partners

• Solution engineers/pre

sales: technical

• resource. No quota
• Other: Includes

management, sales

• perations and sales

enablement

Quota-carrying Other Solutions engineers

Half year results June 2019 31

IFRS 15

1H19 under IAS 18 Impact of IFRS 15 1H19 under 1FRS 15 (as reported) Revenue 41.6 (1.2) 40.4 EBITDA (34.0) 4.2 (29.8)