Xbp Global Holdings, Inc. · NASDAQ:XBP
Xbp Global — XBP Europe Holdings — Q1 2024 Earnings Presentation
15 slides from Xbp Global's earnings presentation, May 13, 2024
Slide 1: First Quarter 2024 Results
First Quarter 2024 Results May 13, 2024 ©XBP EUROPE 2024
Slide 2: Safe Harbor Statements
Safe Harbor Statements Forward-Looking Statements: Certain statements included in this presentation are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward- looking statements generally
Slide 3: About XBP Europe: Who, Where, Why & What
About XBP Europe Who, Where, Why & What Who Where XBP Europe Holdings, Inc. (Nasdaq: XBP, XBPEW), is a pan-European Secure hybrid cloud infrastructure enables XBP Europe to integrator of bills, payments, and related solutions and services seeking deploy its solutions to clients across the European m
Slide 4: XBP Europe product suites - Summary
XBP Europe product suites - Summary Banking & Finance Enterprise Information Finance & Accounting Cloud & AI powered Cyber One of largest non-bank processors Management Enhanced invoicing, Security of payments in Europe Scan, process, digitize payments, reporting, analysis documents and get usable d
Slide 5: We serve a diversified base of public and private sector customers
We serve a diversified base of public and private sector customers Industry Specific and Industry Agnostic Enterprise Software and Services Large Enterprises and Small Financial Institutions, Banks & Insurance Governments & Public Sector Businesses Finance Departments Companies Organizations [F&A, E
Slide 6: 1Q 2024 Financial Summary and Highlights
1Q 2024 Financial Summary and Highlights ©XBP EUROPE 2024 6
Slide 7: 1Q 2024 at a Glance
1Q 2024 at a Glance Revenue Gross Margin SG&A Operating Profit Adj EBITDA1 $40.4M 24.6% $7.9M $0.1 M $1.8M YoY -5.7% YoY +2.5% YoY -5.6% YoY +$1.1M YoY -23.4% Sequentially -2.0% Sequentially +2.7% Sequential -23.2% Sequentially +$3.3M Sequentially -56.9% Employees Technology segment Investments in S
Slide 8: 1Q 2024 Financial Highlights
1Q 2024 Financial Highlights 1Q 2024 1Q 2023 YoY • Revenue decline primarily due to large one-time license sale in 1Q 2023 Revenue, net $ 40,350 $ 42,801 -5.7% Operating Profit 71 (1,029) NM • Gross Margin improved YoY driven by Net Loss Before Tax (1,748) (2,414) -27.6% improved product mix shift t
Slide 9: Driving Higher Gross Margin Through Operating Leverage and Mix Shift
Driving Higher Gross Margin Through Operating Leverage and Mix Shift 1Q 2024 1Q 2023 YoY • Technology increased to 28.4% of total revenues, up Revenue $ 28,874 $ 33,568 -14.0% 690 bps YoY, contributing significantly to overall Bills & Cost of Revenue 25,317 28,725 -11.9% improvement in gross margin
Slide 10: Appendix
Appendix ©XBP EUROPE 2024 10
Slide 11: Our presence in EMEA
Our presence in EMEA XBP Europe Solutions reach majority of populations in key markets. The Company processed several hundred million payment transactions in 2023. Pan-European Presence 15 Countries1 Norway (population 5 million) process 100% of bank giro 32 Locations Sweden (population 10 million)
Slide 12: $167M FY2023 Revenue: Client and industry diversification
Client and industry diversification $167M FY2023 Revenue 3% - Top client 11% 22% Northern Top 2 -10 Europe Technology 27% 18% 13% UK & Top 11 - 20 Ireland 22% Top 21 - 50 31% Central Europe Bills and Payments 73% 40% 40% All Other Western Europe Diversified client Geography Services & 12 base Produc
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 FY 2022 FY 2023 Net Loss ($2,506) ($557) ($2,887) ($5,097) ($2,208) ($7,929) ($11,047) Income tax expense 92 385 1,046 (917) 460 2,562 606 Interest expense including related party interest expense, net 1,298 1,13
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of Non-GAAP Financial Measures to GAAP Measures Non-GAAP constant currency revenue reconciliation (1) Constant currency excludes the impact of foreign currency fluctuations and is computed by applying the average exchange rates for the quarter ended March Quart
Slide 15: Defined Terms in Presentation and Notes
Defined Terms in Presentation and Notes • ACV: Annual contract value in dollars • Gross Margin: Total revenue less cost of revenue as a percentage of total revenue • Capital Expenditures: Funds used to buy, maintain, or improve physical or fixed assets used in the Company’s operations • New Business