Readytech Holdings Ltd. · ASX:RDY
Readytech — H1 FY2025 Earnings Presentation
27 slides from Readytech's earnings presentation, Feb 26, 2025
Slide 1: 1H FY25 Investor Presentation
ASX:RDY 1H FY25 INVESTOR PRESENTATION 26 February 2025 Marc Washbourne – Co-Founder & CEO Nimesh Shah – Chief Financial Officer
Slide 2: Next generation, mission-critical software crafted to closely meet customer needs
Next generation, mission- critical software crafted to Supporting communities at scale closely meet customer needs across human led sectors 2+ $28+ Students, apprentices and job Payroll processed annually through our million billion seekers through our software software for 1+ million employees 5,00
Slide 3: Financial & operational highlights
Financial & operational highlights Total revenue Underlying EBITDA* Underlying cash EBITDA** $58.3m $18.2m $8.6m Increase of 6.6% Increase of 4.6% Increase of 10.2% Excluding Government sector: 9% EBITDA margin* of 31.2% Cash EBITDA** margin of 14.7% (1HFY24: 14.3%) Enterprise gross pipeline^ Shortl
Slide 4: Key highlights
Key highlights • Workforce Solutions enterprise strategy delivered its largest contract win to date of more than $1 million. Momentum with • In Education, first university win with Avondale University opens large new market. contract wins • Major new tribunal contract win underpins momentum in Justi
Slide 5: ReadyTech well positioned for inflection point
Confidence in unprecedented Education Enterprise pipeline of & Work Pathways and $37.5m including $13.5m ReadyTech well Justice pipelines deal value of conviction underpinned by level of opportunities at procurement activity to positioned for shortlisted/preferred stage with close date in 2H FY25. r
Slide 6: 1H FY25 financial performance
1H FY25 financial performance 1H FY25 Results
Slide 7: 1H financial overview
Highlights 1H financial overview Revenue growth up 6.6% on PCP: Subscription revenue up 5.7% to $49.9m; recurring revenue 85.6% of total revenue (FY24: 83.8%). $ MILLIONS Net revenue retention (NRR) of 102% reflects progress across all segments YoY % 1HFY25 1HFY24 change offset by 1H delays in upgra
Slide 8: Strong cash flow and balance sheet support growth initiatives
Strong cash flow and balance sheet support growth initiatives Highlights NET DEBT AS AT 31 DEC 2024 Gearing remains within the Company’s target range with net leverage ratio of $ MILLIONS 31 DEC 24 30 JUN 24 0.86x as at 31 Dec 2024. $10.1m paid for acquisitions and earn-outs upon achievement of mile
Slide 9: Higher value customer wins and upsell deliver growth in revenue
Higher value customer wins and Segment highlights upsell deliver growth in revenue Total revenue growth excluding Government 9%; underpinned by enterprise wins and EDUCATION & Net Revenue Retention (NRR) of 102%. Total revenue growth of 6.6% impacted by WORKFORCE WORK GOVERNMENT JUSTICE GROUP Govern
Slide 10: Revenue ($m)
65.0 Annualised 60.0 59.1 58.3 revenue growth 55.0 55.4 54.7 has trend of higher 50.0 47.9 weighting in 2H 45.0 42.6 Revenue ($m) 40.0 Historically 2H performance 35.7 35.0 underpinned by EOFY Workforce Solutions revenue, Q4 subscription 30.0 ‘true-ups’, seasonality of customer spend and Disability
Slide 11: How we win in enterprise
How we win in enterprise 1H FY25 Results
Slide 12: Targeting large, high value enterprise customers across all segments
Acquire high value contracts with sizeable tech budgets, starting with break-through Targeting large, customers in key sectors high value enterprise Large addressable market and continuing medium term movement to cloud and digital customers across transformation creates huge disruption all segments
Slide 13: ReadyTech has purposefully built enterprise capability and is ready to scale
ReadyTech has purposefully built 5 enterprise capability and TARGET MARKET LEADERSHIPAND is ready to scale SCALING OUT 5 OPERATING LEVERAGE THROUGH SCALE Return on investment realised with large ACV subscriptions and margin expansion. 4 INFLECTION 1 4 POINT THE STEPS TO INVESTMENT PHASE FOR EXPAND S
Slide 14: Momentum in enterprise contract wins in the last 2 years
Momentum in enterprise contract wins in Upgrade (TAFE) the last 2 years driving Ready Skills increased deal value Upgrade (TAFE) Upgrade 1H FY25 Results 14
Slide 15: ReadyTech's open ecosystem is a major point of competitive difference
ReadyTech’s open ecosystem is a major point of competitive difference versus platform monoliths 3rd Parties ReadyTech Why open and connected? Horizontal systems Customer choice, best-of-breed and flexibility Big tech targeting our markets for finance and CRM Many customers are Microsoft Core of Easi
Slide 16: Education
Education ReadyTech is well placed to accelerate multiple enterprise growth engines across the tertiary education universe 20+ TAFEs 44 Universities & 8 Large scale State “With ReadyTech, ReadyTech market position 120 Private Higher Ed Government solidifying – better placed we found a ReadyTech's br
Slide 17: Workforce Solutions
Workforce Solutions Vertical strategy is gaining traction ReadyTech is winning in the mid-to-enterprise stand-up economy by solving complex payroll and workforce Key market drivers of the stand-up economy management and achieving high customer intimacy End-to-end cloud, single vendor relationship re
Slide 18: Workforce Solutions
Why we won: Workforce Solutions 1 Comprehensive solution Integrated payroll, HRIS, and workforce management We chose ReadyTech because their integrated Enterprise vertical platform, meeting diverse operational needs across solutions align with our strategy in action with multiple sectors. operationa
Slide 19: Local Government
Local Government Strong addressable market position with service digitisation agenda and cloud transition to drive growth Scale – ReadyTech benefits from position as a leading provider at scale with relationships with 280 Local Government customers, well distributed across Australia, using one, mult
Slide 20: Local Government
Local Government Complete ERP readiness fast-tracked to meet needs with referenceability across Australia to unlock cloud transition opportunities Customer Requests Property & Rates Completed 1H Meeting customer cloud Licensing and Compliance Customer & Community Planning & Development transition de
Slide 21: Local Government
Daniel Wyner Executive Leader Responsibility Strategic leadership for sustainable Augmented with Local Government and long-term growth. CouncilWise management Refreshed and team high-quality Michelle Cross Local Government and management Enterprise Delivery Responsibility Property & Rating Highly sc
Slide 22: Justice
Justice Experiencing growth and expansion of conviction pipeline as sector digital transformation accelerates WHY WE ARE WINNING CUSTOMERS Growth drivers for Justice sector Product-market fit Deep domain expertise Citizen-centric justice case management solutions Massive legacy technology with servi
Slide 23: Focus on innovation to support future growth
Focus on innovation to support future growth ReadyTech continues to invest in R&D to drive growth and NRR with focus on new module releases and accelerating high value AI-releases via our dedicated Emerging Technology Team Next-level HR & LMS AI-infused product innovation modules ReadyTech ReadyTech
Slide 24: Scaling smarter: AI-driven support
Customer ReadyTech's AI support agents further embedded into Scaling support customer service, drafting high quality responses to queries with a LLM trained on previous tickets: 70% smarter: • • Improved response times for superior customer experience. Enhanced support efficiency freeing up our huma
Slide 25: Enterprise strategy ready to drive future growth in revenue and margin expansion
Enterprise strategy ready to drive future growth in revenue and margin expansion FY25 outlook • Revenue growth for all segments in FY25 excl. Local Government expected to be low double digits, underpinned by pipeline of $37.5m including shortlisted/preferred stage opportunities of $13.5m. • Group re
Slide 26: Disclaimer
Disclaimer This presentation has been prepared by ReadyTech Holdings Limited for professional investors. The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The informa
Slide 27: For more information
For more information: Heidi Lord Automic Group t. +61 404 216 403 e. heidi.lord@automicgroup.com.au About ReadyTech ReadyTech is a leading provider of mission-critical SaaS for the education, employment services, workforce management, government and justice sectors. Bringing together the best in peo