IMImobile PLC Interim Results Overview Six Months Ended 30 September 2019 Jay Patel, Chief Executive Officer Mike Jefferies, Chief Financial Officer November 2019
A global communications software and solutions provider What we do Who we do it for Who we are 2000 Founded with mobile-first vision We provide cloud communica nicati tions s software re that enables enterprises to automate te digital customer 2014 Listed on London Stock Exchange’s AIM market interactions to improve custom tomer r experie rience nce and 1100 Global employees reduce uce costs ts. 21 Offices - London HQ, Boca Raton, Joburg, Dubai Our differentiation is that our platform & 8 Successful acquisitions since IPO applications work together and integrate with third- 1 Market leader in UK, Canada and South Africa party suppliers to provide end-to to-end automatio tion of customer journeys. 2019 Acquisition of 3C, global leader in RCS Business split Key financials Regional split Business model Approx. Sector split ▪ Organic recurring revenue growth for 17 years Management shareholding: 14% ▪ 31% 21% 21% 5-year 5-year gross 5-year adjusted revenue CAGR profit CAGR EBITDA CAGR MRR – Monthly recurring revenue; NRR – Non recurring revenue Interim Results Presentation FY20, 30 September 2019 2
H1 Group highlights – growth in all regions Financial highlights Operational highlights Revenue up 24% to £83.0m (2018: £67.2m) (18% organic) Organic growth in all regions and business units ▪ ▪ Gross profit up 21% to £35.2m (2018: £29.2m) (12% organic) Milestone acquisition of 3Cinteractive integrated, strengthening position in ▪ ▪ ▪ Adjusted EBITDA up 27% to £9.8m (2018: £7.7m) North America and establishing global RCS leadership position ▪ Adjusted profit after tax up 12% to £5.2m (2018: £4.7m) ▪ Strong period of new client wins and renewal of all major contracts in the Adjusted diluted EPS up 5% to 6.9p (2018: 6.6p) period ▪ Adjusted cash generated from operating activities of £12.5m; cash New launches using richer messaging channels – Apple Business Chat, ▪ ▪ conversion of 127% (2018: 80%) RCS & WhatsApp Business H1 Revenue (£m) H1 Gross Profit (£m) H1 EBITDA (£m) 90.0 40 12 83.0 35.2 80.0 9.8 35 10 67.2 29.2 70.0 30 7.7 24.7 60.0 53.1 8 25 20.2 50.0 5.7 5.3 20 6 16.6 36.0 40.0 4.5 27.8 15 30.0 4 10 20.0 2 5 10.0 0.0 0 0 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Interim Results Presentation FY20, 30 September 2019 3
Investment case Structural growth Track record of Own IP and Experienced Market leader opportunity growth R&D investment management "The enhanced No. 1 >85% 5% functionalities of RCS will 17 years lead to a nearly sixfold ld UK, South Africa, Canada incre rease se over r the next t five senior management team of organic recurring Top 5 years rs for messages that with over 10 years sector revenue growth businesses send to experience consumers” 1 Providers in the US (SVP level and above) 1 https://www.businessinsider.com/verizon-sprint-tmobile-att-unite-on-new-messaging-standard-2019-10?r=US&IR=T Interim Results Presentation FY20, 30 September 2019 4
Market & Products
We believe that technology has and will continue to fundamentally change how businesses engage with their customers. New communications channels and the possibilities of intelligent automation will allow businesses to improve customer experience and reduce costs. We help our clients do this.
The Communications Platform as a Service ‘ CPaaS ’ market opportunity IDC positions IMImobile as a Major jor Player er in the $10. 0.9bn 9bn by 2022 22 2019 IDC MarketScape for Worldwide Cloud Communications Platform-as-a-Service The CPaaS market is forecast to grow from $2bn in 2017 to $10.9bn in 2022. Developer focus 49.6% 6% CAGR GR Enterprise focus cus Spending on CPaaS will grow at CAGR of 49.6% to reach $4.63bn by 2021 Interim Results Presentation FY20, 30 September 2019 7
The ‘Future of Messaging’ market opportunity 1 of 3 te tech chnolog logy y pro rovide viders s appr proved ed by App pple le, Fac acebo book ok and d Googl oogle Additional differentiators ▪ 10+ chan annels els including: email, SMS, voice, push, MMS etc. ▪ Dir irect ct rela lation tionships ps with mobile operators. ▪ Multiple new channel deployme yments. ts. Disclaimer: diagram based on publicly available information at the time of announcement Interim Results Presentation FY20, 30 September 2019 8
Recent deployments show momentum for new communications channels WhatsApp for Apple Business RCS for RCS for EE npower Chat for Vauxhall Vodafone Interim Results Presentation FY20, 30 September 2019 9
Our CX automation product suite Possible application alternatives/integrations CORE BUSINESS SYSTEMS Applications Layer TRANSACTION PROCESSING FRAUD MANAGEMENT CRM PLATFORM Platform Layer CASE MANAGEMENT COMMERCE PLATFORM Intelligent enterprise control BILLING PLATFORM 2 APPOINTMENT MANAGEMENT Integration set- Business logic NLP & AI Communication APP up & flow powered channel & management orchestration conversational management rd PARTY SERVICES automation 3 rd DELIVERY / FULFILMENT NAME / ADDRESS VERIFICATION Service assurance & infrastructure CREDIT CHECK management PAYMENTS Interim Results Presentation FY20, 30 September 2019 10
Our products work across three core business areas Cust stom omer er Servi vice ce & Achieving an overall Su Suppor port My boiler has stopped CSAT score of over er 90% I have a suspect working – I need an transaction on my credit engineer after deployment for card British Gas. Saving £2 milli lion on for the Cust stom omer er Operation tions s Reminder that your NHS in postal costs by Your parcel will be appointment with Dr. delivered between taking a digital-first Smith is at 2pm today 11:00-13:00 today approach to patient letters. Generating £250 250 milli lion Marketin ting g Autom tomation tion Would you like to revenue for O2 per year The iPhone 11 is out upgrade your data now – click here to through marketing plan? reserve… comms. Interim Results Presentation FY20, 30 September 2019 11
How our products work together provides competitive differentiation Customer receives message through IMIca campa mpaign – this could be over any channel Customer clicks link and UI switches to Apple Business Chat using IMIcon Iconne nect ct Bill shock prevention using Apple Business Chat Customer is transferred to IMIcha chat for agent support – this could be a third party contact centre system Interim Results Presentation FY20, 30 September 2019 12
Financial Highlights Interim Results Presentation FY20, 30 September 2019
Strong growth in all financial metrics Sep-19 19 Sep-18 18 Growth th Year ended ed 5-year £m £m £m £m % +31% Revenue +24% Revenue 83.0 67.2 CAGR +21% Gross profit 35.2 29.2 Administrative expenses +18% (25.4) (21.5) (excluding D&A) 5-year +21% +27% Adjusted EBITDA 9.8 7.7 Gross Profit CAGR EBITDA margin* 28.0% 26.4% +12% Adjusted profit after tax 5.2 4.7 +5% Adjusted diluted EPS 6.9p 6.6p 5-year +21% EBITDA 24% Cash & cash equivalents 16.4 13.2 CAGR *EBITDA margin = EBITDA/Gross Profit Interim Results Presentation FY20, 30 September 2019 14
Quality of earnings Well diversified Longstanding customer relationships Gross profit split Average customer tenure Percentage of gross profit (by region) Top 10 33% 9.8 years customers FY20 FY19 48% 8.0 years Top 20 customers Approximate gross profit split Impact of capitalisation and amortisation 6.5 6.1 5.9 5.6 25% 50% 15% 10% 5.1 Fixed fees Usage based Transactional Non recurring 4.3 4.1 4.1 4.0 4.0 Fees based Licences Contracted Volume of e-mail, SMS, MMS, on & one-off 3.3 revenues push notification, sessions etc. revenue prof. 2.7 transactions services 90% Monthly Recurring Revenue PBT as reported 7 yr amortisation PBT assuming 5 yr amortisation EBITDA less capex (MRR) H1 17 H1 18 H1 19 H1 20 H1 20 excludes the impact of IFRS16 Interim Results Presentation FY20, 30 September 2019 15
Strong balance sheet Sep-19 Mar-19 Sep-19 Mar-19 Assets Liabilities £m £m £m £m Cash 16.4 13.2 Trade payables and accruals 40.3 34.1 4.7 Trade receivables 39.1 41.2 Pass through revenues 5.1 24.1 Pass through revenues 2.9 3.3 Other current liabilities 18.6 Other current assets 8.0 6.2 Curre rent nt liabi bilitie ties 69.1 57.8 Curre rent nt ass ssets ts 66.4 63.9 Non-curre current nt liabi bilitie ties 51.2 24.1 Goodwill 69.6 43.6 Tota tal liabi bilitie ties 120.3 0.3 81.9 16.8 Acquired intangibles 39.3 12.8 Other intangible assets 14.4 4.3 PPE 7.6 0.6 Goodwill and acquired intangible growth from Other non-current assets 1.9 3C acquisition Non-curre current nt ass ssets ts 132. 2.8 78.1 Trade payables and accruals increase also Tota tal ass ssets ts 199. 9.2 142.0 2.0 attributable to 3C Net asse sets ts 78.9 60.1 Interim Results Presentation FY20, 30 September 2019 16
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