Slide 1: Results Presentation FY19
For personal use only RESULTS PRESENTATION FY19 ASX: RDY Marc Washbourne – CEO Nimesh Shah - CFO
Slide 2: Agenda
For personal use only AGENDA Key Financial and Operational Highlights 3 Growth and Product Strategy 7 Group Financial Results 14 Outlook 21 Appendix 22
Slide 3: Key Financial and Operational Highlights
Key Financial and Operational Highlights For personal use only PRO-FORMA PRO-FORMA PRO-FORMA FY 19 REVENUE EBITDA NPATA Exceeded prospectus $33.0 m $12.8 m $5.7 m forecast VS Prospectus forecast: +1% VS Prospectus forecast: +1.5% VS Prospectus forecast: +9.7% YOY%: 13.5% YOY%: 20.8% YOY%: 33.6% OPER
Slide 4: Key Achievements in FY19
ACHIEVEMENTS For personal use only KEY ACHIEVEMENTS IN FY19 CLIENT GROWTH CUSTOMER INVESTMENT PARTNER GROWTH IN ARPC SUCCESS IN R&D NETWORK • Record new business • Continued growth (12% •M aintained strong net client • Over $10m R&D spend for • Increased footprint of volumes with over 400 growth YOY
Slide 5: FY19 Result Exceeds Prospectus Forecasts
FY19 Result Exceeds Prospectus Forecasts For personal use only FY19 RESULTS FY19 PRO-FORMA FY19 PRO-FORMA PROSPECTUS FY18 PRO-FORMA FY19 vs FY18 $ MILLION ACTUAL PROSPECTUS VARIANCE % ACTUAL VARIANCE % Revenue 33.0 32.6 1.0% 29.0 13.5% Subscription and 29.7 29.2 1.5% 25.6 15.8% licence revenue Imple
Slide 6: Financial Snapshot
Financial Snapshot For personal use only CONTINUED GROWTH FY19 SCALABLE PLATFORM FY19 IN SUBSCRIPTION & LICENCE REVENUE 90% SUPPORTS STRONG EBITDA MARGIN 39% Pro Forma Revenue ($m) Pro forma EBITDA ($m) and EBITDA margin (%) $14m 40% $37m 39% 90% $3.3m 90% 90% 37% $12m 88% 35% 35% $32m 88% 88% $3.3m
Slide 7: Growth & Product Strategy
For personal use only GROWTH & PRODUCT STRATEGY ASX: RDY
Slide 8: ReadyTech – What We Do
ReadyTech – What We Do ReadyTech builds mission-critical SaaS and technology for managing people in complex regulatory environments and delivers additional customer value through a range of offerings. For personal use only Education & Employment Managing the Student and Employee Lifecycle Education
Slide 9: Student Management Systems (Education)
Student Management Systems (Education) For personal use only ReadyTech provides mission-critical student management systems (SMS) which are at the core of modern tertiary education institutions and then seeks to drive key performance outcomes such as improved student experience and graduation rates.
Slide 10: Market Opportunity – Tertiary Education
Market Opportunity – Tertiary Education For personal use only ReadyTech provides a range of market-leading technology solutions across the tertiary education sector including mission-critical Student Management Systems (SMS). Enterprise SaaS Universities Skills Assessment TAFE Student Management Sys
Slide 11: Payroll and HR Administration
Payroll and HR Administration For personal use only ReadyTech is at the core of the employment software ecosystem offering mission-critical Payroll and HR Admin solutions. THE MODERN EMPLOYER Mission-critical HR functions such as HR RECRUITMENT EMPLOYEE ONBOARDING INDUCTIONS & CREDENTIALS admin and
Slide 12: Market Opportunity – Employment
Market Opportunity – Employment For personal use only ReadyTech provides Payroll & HR administration technology and managed services across the employment market and increasingly targets higher value customers. SOFTWARE MANAGED SERVICE SIZE OF BUSINESS REVENUE DISTRIBUTION 5-19 employees 10% 20-199
Slide 13: Growth Initiatives
Growth Initiatives For personal use only ReadyTech enjoys a range of opportunities to maintain strong rates of growth into the future. Technology Talent Existing Customers New Customers M&A/Partnerships Continued investment in Grow APRC with Licence growth, Invest in new talent Win new and higher M&
Slide 14: Group Financial Results
For personal use only GROUP FINANCIAL RESULTS ASX: RDY
Slide 15: Strong Revenue and Earnings Growth
Strong Revenue and Earnings Growth For personal use only PRO FORMA $ MILLIONS Highlights % change vs FY19 FY18 % Change YOY Prospectus Subscription and licence revenue 29.7 25.6 15.8% 1.5% Revenue grew by 13.5% driven by new client wins and increased sales to existing clients Implementation, trainin
Slide 16: Strong Operating Leverage
Strong Operating Leverage For personal use only Total Operating Expenses (A$m) Capitalised Development Expenses (A$m) 74% 13% 12% 65% 63% 61% 11% 10% 20.1 18.4 17.7 17.5 2.5 2.9 2.8 3.3 3.4 3.4 2.5 3.1 3.2 2.2 2.4 2.2 12.4 11.9 13.5 15.2 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 General and administra
Slide 17: Segment Results - Education
Segment Results - Education For personal use only $M EDUCATION YoY $ YoY % FY19 FY18 vs Prospectus % Growth Growth Education Revenue 20.0 17.8 2.1 12% 0% Education EBITDA 8.1 7.1 1.1 15% 2% EBITDA Margin % 41% 40% 3% 1% Highlights Strong client growth with the average value of client wins Benefit of
Slide 18: Segment Results - Employment
Segment Results - Employment For personal use only $M EMPLOYMENT YoY $ YoY % FY19 FY18 vs Prospectus % Growth Growth Employment Revenue 13.0 11.3 1.7 15% 3% Employment EBITDA 6.2 5.1 1.2 23% 0% EBITDA Margin % 48% 45% 7% -1% Highlights Increase in existing client spend driven by employee growth and
Slide 19: Strong Cash Flow Conversion Maintained
Strong Cash Flow Conversion Maintained For personal use only Highlights $ MILLIONS PRO FORMA FINANCIALS Changes in net working capital Negative working capital due to customers billed upfront FY19 FY18 FY17 FY18 working capital impacted by significant amount of Q1 EBITDA 12.8 10.6 9.6 FY18 billings
Slide 20: Group Financial Highlights – Capital Structure
Group Financial Highlights – Capital Structure For personal use only Highlights PRO FORMA NET DEBT AS AT FY19 $ Millions Facility Committed Pro Forma New debt facility in place post listing > Total facility size $27.5M – Fully drawn at IPO Facility A 21.5 21.5 Facility A -$21.5M and 3 year amortisin
Slide 21: Outlook
Outlook For personal use only OUTLOOK ASX: RDY ReadyTech maintains the prospectus forecast for CY19 Pro-forma Revenue: $35.1M – 14% yoy growth compared to CY18 Pro-forma EBITDA : $14.6M - 28% yoy growth compared to CY18 Business performing to forecast in the first 8 weeks of FY20 New business pipeli
Slide 22: Appendix
For personal use only APPENDIX
Slide 23: Statutory to Pro-Forma Results Reconciliation
STATUTORY TO PRO-FORMA RESULTS RECONCILIATION For personal use only $ MILLIONS $ MILLIONS FY19 FY18 FY19 FY18 Statutory revenue 32.7 25.6 Statutory NPAT (1.5) (2.3) Employgroup and HR3 - 2.9 Employgroup and HR3 - 1.1 My Profiling (3 months) 0.3 0.8 My Profiling (3 months) and Earnout trueup (0.1) 0.
Slide 24: Board of Directors
Board of Directors Director Experience Marc Washbourne • See management slide Tony Faure • Currently the Chairman of ASX-listed oOh!media, data intelligence platform PredictHQ and start-up accelerator Polleniz Board of Directors ReadyTech’s Board of Directors bring together deep industry, technologi
Slide 25: Management Team
Management Team For personal use only Senior management Marc Washbourne Nimesh Shah CEO CFO • Marc Washbourne was one of the founders of the JobReady • Nimesh has been the CFO of ReadyTech since August 2017 business and was appointed CEO in 2006 • Nimesh has over 20 years’ experience as an executive
Slide 26: Glossary
GLOSSARY For personal use only A2E Assess2Educate, a ReadyTech product ACV Annual contract value ARPC Average revenue per customer CAC Customer acquisition cost CAGR Compounded annual growth rate CLTV Customer lifetime value CY Refers to the calendar year ending 31 December DHS Department of Human S