Dye & Durham Ltd. · TSX:DND
Dye & Durham — Q1 FY2025 Earnings Presentation
23 slides from Dye & Durham's earnings presentation, Nov 7, 2024
Slide 1: Q1 FY2025 Results Presentation
Q1 FY2025 RESULTS PRESENTATION November 7, 2024 When being certain is everything dyedurham.com dyedurham.com
Slide 2: Disclaimer
ibdroot\projects\IBD-NY\driveins2022\902367_1\Presentations\05. Lender Presentation\DND Private LP - November 2022_v26.pptx DISCLAIMER This presentation has been prepared for informational purposes only. These materials are not, and in no circumstances are they to be construed as, a prospectus, an o
Slide 3: Disclaimer (Cont'd)
ibdroot\projects\IBD-NY\driveins2022\902367_1\Presentations\05. Lender Presentation\DND Private LP - November 2022_v26.pptx DISCLAIMER (CONT’D) Many of these risks are beyond the Company’s control. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions under
Slide 4: Your Legal Practice, Made Perfect
ibdroot\projects\IBD-NY\driveins2022\902367_1\Presentations\05. Lender Presentation\DND Private LP - November 2022_v26.pptx YOUR LEGAL PRACTICE, MADE PERFECT Our mission-critical software gets business done right, every time. We provide premier practice management solutions and vital data insights s
Slide 5: Dye & Durham Results Snapshot
ibdroot\projects\IBD-NY\driveins2022\902367_1\Presentations\05. Lender Presentation\DND Private LP - November 2022_v26.pptx DYE & DURHAM RESULTS SNAPSHOT Dye & Durham Key Operating Areas C$120 mm C$66 mm Q1 FY2025 Revenue Q1 FY2025 Adj. EBITDA1 Canada UK & I 55% C$28 mm Q1 FY2025 Q1 FY20252 Adj. EBI
Slide 6: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Dye & Durham is focused on bringing software capabilities together to provide a single point solution for customers Key Industry Drivers Dye & Durham Key Growth Drivers 1 Growing Contracted Revenue Accelerated adoption of legal technology to improve efficiencies and client
Slide 7: Dye & Durham Product Line Overview
DYE & DURHAM PRODUCT LINE OVERVIEW Legal Software Financial Technology Practice Management Data Insights & Due Diligence Lending Tech Payments Managed Banking Services End-to-end practice management software enables Our payments infrastructure technology facilitates the transfer of We connect a glob
Slide 8: Large Addressable Market Opportunity
LARGE ADDRESSABLE MARKET OPPORTUNITY Total Addressable Market Key Drivers Behind Expansion Global Legal Technology Spend (US$) 1 Rising competition in the legal solutions ~$46B industry, leading to increased focus on productivity TAM 2 Surge in new regulatory structures and legal information, which
Slide 9: Strong Growth in Contracted Revenue & ARR
STRONG GROWTH IN CONTRACTED REVENUE & ARR • ARR of $156 million on an annualized basis, up 43% compared to prior period, representing 32% of total revenue • ARR achievement is a result of strong execution and delivering on go-to-market strategy as ARR tracks towards 50% of total revenue by the end o
Slide 10: Financial Technology Business
FINANCIAL TECHNOLOGY BUSINESS When being certain is everything everything / 1010
Slide 11: Customers & Service Offerings
CUSTOMERS & SERVICE OFFERINGS Banking Technology provides a comprehensive suite of essential solutions for Canada and Australia’s financial sector across Banks, Credit Unions, Insurers, and others FINANCIAL SOLUTIONS PROVIDED LENDING MANAGED PAYMENTS TECHNOLOGY BANKING SERVICES • Global and national
Slide 12: Long-Term Contractual Revenue Model
LONG-TERM CONTRACTUAL REVENUE MODEL Unique Platform and Integrated Technology Promotes Repeat Transactions with Blue-Chip Financial Institutions REOCCURING REVENUE DRIVERS Bank centric – TRUSTED AND ESSENTIAL Drives OPERATIONAL TRANSACTIONAL BUSINESS SIGNIFICANT LONG-TERM PLATFORM-AS-A- PARTNER to t
Slide 13: Focused on Organic Growth
FOCUSED ON ORGANIC GROWTH When being certain is everything everything / 1313
Slide 14: Strong Business Performance Metrics
STRONG BUSINESS PERFORMANCE METRICS • Dye & Durham’s business fundamentals remain strong, as seen by the strong business performance KPI’s Q1 FY25 YoY Revenue Bridge (C$ mm) Strong Stable Business Performance KPI’s +5% FY2022 FY2023 FY2024 FY25 Q11 M Organic Revenue - - 2% 5%1 M M [4%] Growth17% M)
Slide 15: Poised for Accelerated Growth from a Global Real Estate Recovery
POISED FOR ACCELERATED GROWTH FROM A GLOBAL REAL ESTATE RECOVERY 1 5M 82% Mortgage Transactions Of Canadian Real Estate Processed Globally on Transactions Supported an Annual Basis by Dye & Durham FY2022 FY2023 FY2024 Global Real Estate Exposure1 68% 56% 47% Canadian Real Estate Exposure1 41% 31% 24
Slide 16: Financial Review
FINANCIAL REVIEW When being certain is everything everything / 1616
Slide 17: Consistent Business Performance
CONSISTENT BUSINESS PERFORMANCE • Revenue growth has been primarily driven by organic initiatives • Consistent Adjusted EBITDA1 margins of mid 50% (Q1 FY25: 55%) demonstrate scalability of platform Revenue (C$ mm) Adjusted EBITDA1 (C$ mm) Note: All figures in CAD unless otherwise noted. 1. Adjusted
Slide 18: Continued Strong Free Cash Flow Generation
CONTINUED STRONG FREE CASH FLOW GENERATION 1 Net Cash from Operating Activities Less Additions to Intangible Assets, Lease Obligations & Purchases of Property and Equipment (C$MM) 2,3 • Q1 FY25 was second Leveraged Free Cash Flow (C$MM) consecutive quarter of 35%+ year-over- $46 $40 year growth in c
Slide 19: Strong Track Record of Executing and Integrating Acquisitions
STRONG TRACK RECORD OF EXECUTING AND INTEGRATING ACQUISITIONS Since our IPO in July 2020, D&D has deployed a total of ~1.9 billion on acquisitions across Canada, UK, Ireland, Australia and South Africa Adjusted EBITDA Growth Since IPO1, 2 ($ mm) Post-Synergy Performance on Capital Deployed Since IPO
Slide 20: World Class Management Delivering Financial Performance
WORLD CLASS MANAGEMENT DELIVERING FINANCIAL PERFORMANCE • DND CEO since 2016, having led the successful IPO in July 2020 and the completion of 30 acquisitions to date Matthew Proud • Previously CEO of OneMove, a predecessor of DND Chief Executive Officer • Recognized as one of Canada’s Top Under Hon
Slide 21: Appendix
APPENDIX When being certain is everything everything / 2121
Slide 22: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Net Income to Adjusted EBITDA Three months ended Three months ended Twelve months ended Twelve months ended ($C 000's) September 30, 2024 September 30, 2023 June 30, 2024 June 30, 2023 Income (loss) for the period (9,314) (13,512) (174,348) (170,643) Amortization and d
Slide 23: Reconciliations
RECONCILIATIONS Organic Revenue Reconciliation Leveraged Free Cash Flow Reconciliation Three months Three months Three months Three months ended September ended September ($C millions) ended September ended September 30, 2024 30, 2023 ($C millions) 30, 2024 30, 2023 Revenue 119.9 120.1 Net Cash Prov