Half year results 2019 19 June 2019
Agenda Introduction & highlights Alastair Bathgate Financials Ijoma Maluza Strategic update & conclusions Alastair Bathgate Questions & Answers 2 Half year results June 2019
Introduction & highlights 3 Half year results June 2019
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 4 Half year results June 2019
Sales highlights Key metrics Customer momentum Deal count Renewals continues at pace 911 99.5 % 1H19 911 1H19 99.5% 2H18 800 2H18 97.3% 1H18 559 1H18 100% Delivers pipeline to upsell, with proven New customers track record New logos 349 1H19 349 2H18 305 1,337 customers 1H18 223 covering 27% of Forbes Global Upsells 2000 496 1H19 496 2H18 425 1H18 298 5 Half year results June 2019
Strategic & operational highlights Investing Building the Blue Decipher – cognitive Expanding technology in R&D Prism Labs team in the platform partnerships Digital Exchange e-commerce introduced Used by 512 Private assets to help maturing –download Blue Prism customers share and scale Sales & Launched Headcount Blue Prism World Marketing connected - RPA increased by 174% - c.4,500 attendees Customer Success 21 Customer Launched success Deepening partner & Partnerships Success heads accelerator relationships – e.g. EY Reinforcing Enhancing the Strong cultural 703 employees the organisation Executive team framework 6 Half year results June 2019
Thoughtonomy 7 Half year results June 2019
Financials 8 Half year results June 2019
Financial highlights Key financials (IAS 18 basis) Strong performance Revenue Recurring licence revenue continues – 82% growth £41.6 m 97 % in revenues 1H19 £41.6m 1H19 97% 1H18 £22.9m 1H18 93% High quality, licence based revenues Cash Exit monthly recurring revenue* £7.6 m £129 m 1H19 £7.6m 1H19 £129m FY18 £6.2m 1H18 £55m MRR increased by £1.4m to £7.6m Adjusted EBITDA £(34.0) m £(34.0)m 1H19 £(4.2)m 1H18 • Exit MRR uses the average FX rate which at the end 9 Half year results June 2019 of April 2019/beginning of May 2019 was £1:$1.29
Revenue by geography • Americas grown by 99% £19.5 m • EMEA remains strong £16.7 m • APAC presents a significant opportunity £11.9 m £8.4 m £6.9 m £5.4 m £2.7 m £2.6 m 1H 17 1H 19 1H 18 EMEA Americas APAC Presented on IAS 18 basis 10 Half year results June 2019
Market activity and deal sizes 20 1,000 • Deal count has grown 18 900 significantly 16 800 • Flexible contract terms 14 700 have increased proportion 12 600 of 1-year deals 10 500 • Removed perceived 8 400 barriers to customers 6 300 4 200 2 100 0 0 1H 17 2H 17 1H 18 2H 18 1H 19 Average deal size Deals secured Note: Average deal size based on incremental recognised revenue divided by number of deals 11 Half year results June 2019
New customers provide a base to grow Customer cohort analysis by monthly revenues • Upsell opportunity is across cohorts • Focused on continuing this upsell momentum 1H 17 2H 17 1H 18 2H 18 1H 19 2017 H1 2017 H2 2018 H1 2018 H2 12 Half year results June 2019
MRR progression 8 • Continued strong growth 7 in exit MRR 6 • Rate of growth reflects 5 the changed commercial model 4 3 2 1 0 1H 16 2H 16 1H 17 2H 17 1H 18 2H 18 1H 19 Prior periods MRR New MRR Prior periods (prior to 1H 2018) have not been adjusted to the revised MRR definition 13 Half year results June 2019
Income statement For the sixth months ended 30 April 1H19 1H19 1H18 (IAS 18)% 2019 (£m) IAS 18 IFRS 15 IAS 18 change Licence revenue 40.5 39.3 21.5 88% • Licence revenue growth Other revenues 1.1 1.1 1.4 (21)% ahead of total revenue Total revenue 41.6 40.4 22.9 82% growth Staff costs (57.8) (53.6) (22.9) (152)% Other expenses (21.4) (21.4) (5.5) (289)% • EBITDA loss driven by: Adjusted loss from operations (37.6) (34.6) (5.5) (584)% – Investment in growth Depreciation and amortisation 0.3 0.3 0.1 200% – £4.2m sales EBITDA (37.3) (34.3) (5.4) (591)% commissions Share based payments 3.3 3.3 1.2 175% EBITDA post adjustments (34.0) (31.0) (4.2) (710)% 14 Half year results June 2019
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) 1H 19 Increase in deferred revenue 11.8 8.5 Net cash flows from operating activities (18.6) (0.5) FY18 Income taxes paid (0.3) - 1H18 Purchase of intangible fixed assets (0.2) - Purchase of property, plant & equipment (0.5) (0.2) -40 -30 -20 -10 0 Interest received 0.2 - Issue of ordinary shares (net of issue costs) 98.5 39.0 Adjusted EBITDA Operating cash flow Net increase in cash and cash equivalents 79.1 38.3 Cash and cash equivalents at the beginning 50.5 16.3 of the year Effect of foreign exchange on cash and (0.2) - cash equivalents Cash and cash equivalents at the end of the year 129.4 54.6 15 Half year results June 2019
Balance sheet For the half year ended 30 April 2019 (£m) 1H19 1H18 Non-current assets 13.3 0.5 • Continue to manage Trade and other receivables 35.5 19.1 balance sheet Cash and cash equivalents 129.4 54.6 conservatively Current assets 164.9 73.7 Total assets 178.2 74.2 • £100m placing in January Deferred revenue 59.7 35.8 • Growth in the business Trade and other payables 24.7 7.5 impacts receivables and Total liabilities 84.4 43.3 payables 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 16 Half year results June 2019
Thoughtonomy financial details • Expected to complete by Thoughtonomy Blue Prism end of July 2019 12 months to Apr-19 Potential Impact £m (Unaudited) (4-months to FY19) • £80m Enterprise Value Adj. Revenue 7.4 2.0 – 3.0 • Stepped payment process – Completion - £12.5m Adj. EBITDA (3.6) (1.0 – 2.0) cash; £23m equity – First anniversary - 77 54 £0.6m £20m equity – 18-month anniversary - Customers Employees MRR £4.5m cash – Two-year anniversary - £20m equity 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 17 Half year results June 2019
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 18 Half year results June 2019
Strategic update & conclusions 19 Half year results June 2019
Marketplace Continually rated as a market leader Cloud will increasingly be the deployment method of choice Enterprise market Mid-market Software-as a Service “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” HfS, November 2018 ‘The future of Business Operations is here’ 30 November 2018 20 Half year results June 2019
Telefonica connected-RPA in action Significant deal secured in the half 500+ Digital Worker commitment • 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 opportunity across the customer base 21 Half year results June 2019
We have focused the product on enterprise connected-RPA Market penetration in regulated Connected-RPA is enabled by providing a industries, where these capabilities will platform which is: be assessed as essential • Business led • Controlled and governable Major banks Insurance Pharma • Intelligent To achieve these the platform must also be secure and scalable These are crucial to the success and safety of any large RPA deployment Share of industry participants in Forbes Global 2000 22 Half year results June 2019
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