Slide 1: Results Presentation 1H FY21
RESULTS PRESENTATION 1H FY21 17 FEBRUARY 2021 MARC WASHBOURNE, CHIEF EXECUTIVE OFFICER NIMESH SHAH, CHIEF FINANCIAL OFFICER ReadyTech 1H FY21 Results – Page 1
Slide 2: Next Generation SaaS
NEXT GENERATION SAAS PEOPLE-CENTRIC SOFTWARE I’m a ReadyTecher ReadyTech 1H FY21 Results – Page 2
Slide 3: 1H FY21 Key Financial and Operational Highlights
1H FY21 KEY FINANCIAL AND OPERATIONAL HIGHLIGHTS Results on track to achieve FY21 market guidance of mid-teens revenue growth and EBITDA margin in the range of 37% to 39% REVENUE RECURRING EBITDA* UNDERLYING REVENUE NPATA* 13.4% 89% $8.3m $4.7m YoY Growth vs HY20: 88% Margin of 37.9% to $21.8m CLTV
Slide 4: New Business Driving Top Line Growth
NEW BUSINESS DRIVING TOP LINE GROWTH ReadyTech continues to expand its customer base with blue-chip customers Example of new customer wins Annualised revenue per new customers has grown +49% to $42.5k, with many customers above $100k p.a. This is in line with strategy to target high value customers,
Slide 5: Strategic Priorities – The ReadyTech Flywheel
STRATEGIC PRIORITIES – THE READYTECH FLYWHEEL TEGIC ACQUISITION STRA S ND FU INVEST IN PRODUCT AND R&D NEW PRODUCT RETAIN CUSTOMERS 1 • New modules planned and deepen investment in enterprise market product • Expand investment in data analytics and AI IMPROVEMENTS & MODULES INCREASE “STICKINESS”, SH
Slide 6: Open Office
OPEN OFFICE STRATEGIC ENTRY INTO THIRD VERTICAL OF GOVERNMENT AND JUSTICE CASE MANAGEMENT I’m a ReadyTecher ReadyTech 1H FY21 Results – Page 6
Slide 7: Open Office Investment Highlights
OPEN OFFICE INVESTMENT HIGHLIGHTS • Open Office is a citizen-centric integrated software business that services the government and justice verticals. • Comprehensive range of advanced software provides customers with an end-to-end offering. INDUSTRY LEADING PLATFORM • Founded c.20 years ago with a p
Slide 8: Open Office Overview and Market Opportunity
OPEN OFFICE OVERVIEW AND MARKET OPPORTUNITY Open Office is an integrated business that services the government and justice software verticals. The group consists of Open Office, which provides software solutions for a variety of local and state governments, and McGirr Technologies (McGirr), a market
Slide 9: Open Office Product Offering
OPEN OFFICE PRODUCT OFFERING SAAS SOLUTIONS OFFERED Asset & PROPERTY Licensing, Compliance Finance, HR Customer Community Courts and Justice Management & ENVIRONMENT & payroll Service Management 24/7 Case Management DISTINCTIVE VALUE PROPOSITION THAT DIFFERENTIATES FROM COMPETITORS User Advanced Cus
Slide 10: ReadyTech's Playbook Delivers High Value to Segments and Verticals
READYTECH’S PLAYBOOK DELIVERS HIGH VALUE ReadyTech Business Strategy TO SEGMENTS AND VERTICALS Next Generation SaaS – Mission-Critical & Highly Trusted NEW Education Workforce Solutions Government Local/State Government Student Management & Work Pathways Payroll, HR & Workforce Management & Justice
Slide 11: Strong Growth Across Key Financial Metrics
STRONG GROWTH ACROSS KEY FINANCIAL METRICS I’m a ReadyTecher ReadyTech 1H FY21 Results – Page 10
Slide 12: Financial Results on Track to Meet FY21 Guidance
FINANCIAL RESULTS ON TRACK TO MEET FY21 GUIDANCE $ MILLION 1H FY21 1H FY20 %YoY Highlights Subscription and licence revenue 19.4 16.8 15.6% Implementation, training and other revenue 2.4 2.5 (4.0%) • Total revenue of $21.8m represented 13.4% YoY growth. Subscription 21.8 19.2 13.4% and licence reven
Slide 13: Increased Operating Cashflow, Debt Headroom and Comfortable Balance Sheet
INCREASED OPERATING CASHFLOW, DEBT HEADROOM AND COMFORTABLE BALANCE SHEET SUPPORT INVESTMENT $ MILLIONS 31-Dec-20 30-Jun-20 22.5 25.0 1H FY21 1H FY20 34.2 10.2 EBITDA 8.3 8.3 (24.3) - 9.9 10.2 Changes in working capital (1.1) (1.2) 0.9x 1.0x Cash flow from operating activities 7.2 7.1 $ MILLIONS 31-
Slide 14: Education: Student Management Systems & Work Pathways
EDUCATION: STUDENT MANAGEMENT SYSTEMS & WORK PATHWAYS CONTINUED REVENUE GROWTH WITH STRONG PIPELINE OF ENTERPRISE OPPORTUNITIES I’m a ReadyTecher ReadyTech 1H FY21 Results – Page 14
Slide 15: ReadyTech Education Market Opportunity
READYTECH EDUCATION MARKET OPPORTUNITY STRONG PROGRESS MADE PENETRATING THE LARGE ADDRESSABLE MARKET OF TERTIARY EDUCATION, TRAINING AND BACK-TO-WORK Australian tertiary ENTERPRISE Private PRIVATE BACk-TO- State Gov education and training (TAFE/UNIVERSITY) Colleges HIGHER ED WORK industry ICT expend
Slide 16: Driving Growth in Customer Base
DRIVING GROWTH IN CUSTOMER BASE Back-to-work Private College ENTERPRISE Type of customer: Type of customer: Type of customer: Australia’s largest Employment Services provider. Highly diversified VET community college. Enterprise Workforce Development. Drivers of new/change of system: Drivers of new/
Slide 17: Student Management System Strengthening Product Set and Industry Reputation
STUDENT MANAGEMENT SYSTEM STRENGTHENING PRODUCT SET AND INDUSTRY REPUTATION Launch of Learning Management System (LMS) New Upsell Opportunity ENTERPRISE PROGRESS • ReadyTech launched integrated LMS in 1H FY21 as strong upsell opportunity to deliver new revenue stream. • Growing reputation as a viabl
Slide 18: Growth in Education Revenue and EBITDA
GROWTH IN EDUCATION REVENUE AND EBITDA Highlights • Revenue growth of 9.5% driven by strong new business and significant $ MILLIONS upgrades from existing customers. 1H FY21 1H FY20 Growth • Strengthening recurring revenue base through increased customer engagement, with retention revenue at 95%. Mi
Slide 19: Workforce Solutions
WORKFORCE SOLUTIONS STRONG GROWTH DRIVEN BY NEW CUSTOMERS AND EXPANSION OF CURRENT CUSTOMER SPEND I’m a ReadyTecher ReadyTech 1H FY21 Results – Page 19
Slide 20: Benefits of All-in-One Platform
WORKFORCE SOLUTIONS CLOUD OFFERING BENEFITS OF ALL-IN-ONE PLATFORM ONE VENDOR UNIFIED EFFICIENT HIGH VALUE EXPANDED Traditionally in Single view of Real-time Average revenue Ability to support mid-market, employee and management of per customer is Australia and NZ separate systems – unified employee
Slide 21: New Customer Growth Achieved with Compelling Offering
NEW CUSTOMER GROWTH ACHIEVED WITH COMPELLING OFFERING Type/size of customer: Type/size of customer: Type/size of customer: Building retail. 1,100 employees. Wellness. 375+ employees. Group of childcare centres/early learning. Approx 400 employees across 12 ABNs. Drivers of new/change of system: Driv
Slide 22: Growth in Workforce Revenue and EBITDA
GROWTH IN WORKFORCE REVENUE AND EBITDA Highlights $ MILLIONS • Revenue of $10.1m, growth of 19.4% driven by new customer wins with Zambion all-in-one platform, as 1H FY21 1H FY20 Growth well as managed services. Retention revenue is 96%. Revenue 10.1 8.5 19.4% • Growth in average revenue per new cus
Slide 23: Outlook
OUTLOOK RDY expects FY21 revenue growth rate in the mid teens, with EBITDA margin in the range of 37%-39%, excluding the Open Office transaction. ReadyTech 1H FY21 Results – Page 23
Slide 24: Key Takeaways
KEY TAKEAWAYS Navigating through COVID-19 with software supporting Growth in average revenue of new customers in 1H companies to remotely manage people (jobs) and students FY21 of 49%, backed by a strong revenue pipeline of (skills). Minimal impact with less than 3% of international $13m and a win r
Slide 25: Appendix
APPENDIX ReadyTech 1H FY21 Results – Page 26
Slide 26: Education: Opportunity and Why We Win
EDUCATION STRONG OPPORTUNITY FOR GROWTH AND COMPELLING DIFFERENTIATORS OPPORTUNITY WHY WE WIN LEGACY Pure cloud provides agile Sunset current legacy systems with development and regular releases via digital transformation projects. subscription. Customer-centric cloud solutions, providing an entire
Slide 27: Workforce Solutions: Opportunity and Why We Win
WORKFORCE SOLUTIONS LARGE ADDRESSABLE MARKET OPPORTUNITY WITH TRUSTED AND ADVANCED PRODUCT OPPORTUNITY WHY WE WIN REGULATORY CHANGES Compliance is ReadyTech’s key strength. Continuous regulatory and legislative Flexible cloud-based system with regular changes, affecting awards, annualised salaries r
Slide 28: 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 29: For more information: About ReadyTech
For more information: Ronn Bechler Market Eye Pty Ltd P: +61 400 009 774 E: ronn.bechler@marketeye.com.au About ReadyTech ReadyTech (ASX:RDY) is a leading Australian provider of next generation SaaS technology for educators and employers managing the complex human journey through study, work and car