Slide 1: QuickFee FY23 Results Presentation
QUICKFEE FY23 RESULTS PRESENTATION 24 August 2023 President, North America, Jennifer Warawa Chief Financial Officer, Simon Yeandle
Slide 2: FY23 Results Overview
FY23 Results Overview Record FY23 results across all key metrics; past investments have improved Total Transaction Volumes (TTV) and revenue yield Group revenue up 37% to $14.8 million driven by: + Australia Finance TTV growth of 22% to $46.4 million, revenue yield of 11.3% (up 130bps) + US Finance
Slide 3: FY23: Foundation in place for scalable growth
FY23: Foundation in place for scalable growth Investment in proprietary technology + Creation of centralised platform and transition of clients to QuickFee owned and managed software + Significant increase in security, integration potential and long-term scalability of platform + Now reaping the ben
Slide 4: FY23 Highlights - Financials
FY23 Highlights - Financials Record results across all key metrics Financial Performance A$’M FY23 FY22 %+/- + Revenue up 37% to $14.8 million Finance (Pay Over Time) revenue*** 7.8 5.3 +47% Pay Now revenue 7.0 5.5 +27% + Gross profit up 24% to $9.4 million Total revenue 14.8 10.8 +37% + Adjusted EB
Slide 5: QuickFee Pay Over Time (Finance)
QuickFee Pay Over Time (Finance) Revenue growth driven by both volume & yield AU Finance TTV AU Finance revenue AU Finance revenue yield + In both markets, 50% of the revenue growth has 0.8 come from TTV growth and 50% from yield 0.8 improvements Yield 46.4 38.1 11.3% TTV 10.0% + Yield improvements
Slide 6: QuickFee Pay Now (ACH/EFT + Card)
QuickFee Pay Now (ACH/EFT + Card) Transaction volume growth in US and AU US Pay Now 'Last 12 Months' rolling TTV (US$M) AU Pay Now 'Last 12 Months' rolling TTV (A$M) 1,130 1,164 62.0 1,086 58.0 1,022 55.0 55.0 961 51.0 52.0 873 46.0 46.0 46.0 46.0 48.0 806 44.0 668 722 574 489 391 Q1FY21 Q2FY21 Q3FY
Slide 7: What We Do
WHAT WE DO
Slide 8: What we do
What we do Since 2009, QuickFee has offered business-to-business (B2B) payments and financing for professional service firms, helping them get paid faster. Entered market in 2009 Entered market in 2016 PAY NOW PAY OVER TIME QuickFee’s fully integrated online payment platform and lending solution ena
Slide 9: QuickFee payment portal
QuickFee payment portal www.quickfee.com 24 August, 2023 8
Slide 10: QuickFee payment portal
QuickFee payment portal US user experience: An easy-to-use online payment portal, accessible to clients 24/7 www.quickfee.com 24 August, 2023 9
Slide 11: Where We Play: Our Target Customers
Where We Play: Our Target Customers Focus segment: + Professional services with a business-to-business (B2B) focused customer base Primary verticals: + Accounting and Legal, or solution providers to accounting or legal (for example: accounting software or CPA State Society) Secondary verticals: + Ar
Slide 12: Our Competitive Advantage
Our Competitive Advantage QuickFee Others No credit checks for firm clients Credit card surcharges paid by firm clients Offers pay over time financing option at no cost to the firm Integration with major Practice Management solutions Support with accounts receivable beyond technology www.quickfee.co
Slide 13: Well positioned for growth in the US market
WELL POSITIONED FOR GROWTH IN THE US MARKET
Slide 14: US Profit and Loss
US Profit and Loss US Financial Performance US business approaching profitability A$’M FY23 FY22 %+/- + Strong revenue growth: Revenue increased by 36%, driven by 24% Pay Over Time (Finance) revenue 2.6 1.6 +63% growth in US lending to US$20.9 million at an 8.8% average revenue Pay Now (ACH/EFT + Ca
Slide 15: Strategic Opportunities in US Accounting
Strategic Opportunities in US Accounting The total US accounting market revenue is ~US$118B. QuickFee estimates US$38B is our core target market relevant to our US$27.9B current product suite.1 QuickFee’s Target Customers US$10.1B US$1.1B QuickFee’s US$10.1B Existing QuickFee Customers Revenue Quick
Slide 16: Opportunity: E-invoicing Adoption
Opportunity: E-invoicing Adoption % ACCOUNTING FIRMS1 0-10% QuickFee Connect 29% of US accounting firms capitalises on the shift to e-invoicing 10-25% 16% 55% are sending less than 50% of their invoices % ELECTRONIC INVOICES and online payments. 25-50% 10% electronically 9% 50-75% 13% 5% 75-90% 13%
Slide 17: US Practice Management integrations
US Practice Management integrations QuickFee integrations broaden our merchant relationships, create greater lifetime value, and expand our current 12% penetration level Current Integrations Planned Integrations www.quickfee.com 24 August, 2023 16
Slide 18: US near-term strategic priorities
US near-term strategic priorities 1. Drive organic growth through sales, marketing and new customer acquisition + Scalable territory-based sales teams and commission plans targeting 80% adoption of Finance for new firms + Engage with 10,000+ firms across 11+ events in the accounting profession, targ
Slide 19: Australia: A Return to Strong Lending Activity
AUSTRALIA: A RETURN TO STRONG LENDING ACTIVITY
Slide 20: Australia – Long Established and Sustainable
Australia – Long Established and Sustainable QuickFee well established as a market leader, operating beside two main competitors, FeeSynergy and SmartAR QuickFee has approximately 40% of the AU market for fee funding AU is profitable and economic conditions are driving increasing demand Revenue and
Slide 21: AU Profit and Loss
AU Profit and Loss Growing demand for fee funding solutions as AU Financial Performance economy contracts A$’M FY23 FY22 %+/- Pay Over Time (Finance) revenue 5.2 3.8 +37% + Strong revenue growth: Revenue up 36% to $6.1 million, driven by a Pay Now (Payments) revenue 0.9 0.7 +29% 37% increase in Fina
Slide 22: FY23 Financial Highlights
FY23 FINANCIAL HIGHLIGHTS
Slide 23: Group profit and loss
Group profit and loss + Strong revenue growth: Total revenue up 37% to A$14.8 million with A#039;M FY23 FY22 $+/- %+/- approximately a 50/50 split between Interest revenue and revenue from Interest revenue** 7.3 5.1 +2.2 +43% contracts with customers. Revenue from contracts with customers 7.5 5.7 +1.8
Slide 24: Group balance sheet
Group balance sheet 30 June 30 June A#039;M 2023 2022 $+/- %+/- Cash and cash equivalents 3.4 8.2 -4.8 -59% + Strong loan book growth: AU up 34% to A$31 million and US up Loan receivables (current) 42.2 32.7 +9.5 +29% 21% to US$8.1 million, reflecting focus on higher margin Finance Trade and other curr
Slide 25: Liquidity and borrowing capacity
Liquidity and borrowing capacity + Northleaf debt facility is 54% drawn down: In FY22, 30 June 30 June QuickFee partnered with Northleaf Capital Partners, a global A#039;M 2023 2022 $+/- private markets investment firm, for a new US$70 million- 3.4 8.2 -4.8 Cash and cash equivalents equivalent multi-cu
Slide 26: Group cash flow
Group cash flow Reconciliation from loss for the period to operating cash flow A$’M FY23 FY22 $+/- %+/- A$’M FY23 FY22 $+/- %+/- Net cash out flow from operating activities (6.9) (9.9) +3.0 +30% Loss for the period (8.1) (13.5) +5.4 +40% Net cash out flow from loan book / merchant Non-cash expenses
Slide 27: Strategy and Outlook
STRATEGY AND OUTLOOK
Slide 28: FY24 Strategic priorities
FY24 Strategic priorities Focus on reaching profitability + Continue to manage cash burn / cost base + Focus on fastest path to profit: Financing and Connect products + Accelerate disciplined and cost-effective product development with a narrow focus Leverage our most valuable assets – our firms + N
Slide 29: Outlook
Outlook At an inflection point and well positioned for growth Growth in both the US and Australia expected to continue, buoyed by economic tailwinds Strong finish to FY23 and a stable team with the right people in the right seats provides confidence in ability to execute on growth strategy Focus on
Slide 30: Questions
QUESTIONS
Slide 31: Contact Details
CONTACT DETAILS Simon Yeandle, CFO p: +61 2 8090 7700 e: simon.yeandle@quickfee.com Katie Mackenzie, Investor Relations p: +61 455 502 197 e: kmackenzie@belleviewir.com.au
Slide 32: Disclaimer
Disclaimer The material contained in this document has been prepared by QuickFee does not undertake any obligation to publicly release the QuickFee Limited ACN 624 448 693 (‘company’) and contains result of any revisions to these forward-looking statements to general information about the company’s
Slide 33: Appendix
APPENDIX
Slide 34: US profit and loss (detail)
US profit and loss (detail) US business approaching profitability A#039;M FY23 FY22 $+/- %+/- Interest revenue 2.6 1.7 +0.9 +53% + Total revenue (interest revenue + revenue from contracts) up Revenue from contracts with customers 6.1 4.7 +1.4 +30% 36% to A$8.7 million; driven by growth in all products
Slide 35: AU profit and loss (detail)
AU profit and loss (detail) Lending recovery complete and buoyed by A#039;M FY23 FY22 $+/- %+/- economic tailwinds Interest revenue 4.8 3.5 +1.3 +37% Revenue from contracts with customers 1.3 1.0 +0.3 +30% + Total revenue (interest revenue + revenue from contracts) up 36% to A$6.1 million; driven by th
Slide 36: Historical metrics - US
Historical metrics - US FY20 FY21 FY22 FY23 Total Transaction Volumes (TTV) H1 H2 FY20 Q1 Q2 H1 Q3 Q4 H2 FY21 Q1 Q2 H1 Q3 Q4 H2 FY22 Q1 Q2 H1 Q3 Q4 H2 FY23 Professional Services US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M Pa
Slide 37: US product profitability
US product profitability ACH Card Financing BNPL Total US$000s except volume FY23 FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 FY22 Volume US$ M 953 778 211 183 20.9 16.8 1.2 3.5 1,186.1 981.3 Financing revenue (interest) - - 91 1,222 - - 1,636 1,060 162 1,727 Payments and other revenue 3,599 380 64 3,42
Slide 38: Historical metrics - AU
Historical metrics - AU FY20 FY21 FY22 FY23 Total Transaction Volumes (TTV) H1 H2 FY20 Q1 Q2 H1 Q3 Q4 H2 FY21 Q1 Q2 H1 Q3 Q4 H2 FY22 Q1 Q2 H1 Q3 Q4 H2 FY23 Professional Services A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M Pay Now EFT 6.5 6.8 13.3 3
Slide 39: AU product profitability
AU product profitability EFT & card Financing BNPL Total A$000s except volume FY23 FY22 FY23 FY22 FY23 FY22 FY23 FY22 Volume A$ M 62 52 46.4 38.1 1.7 0.9 110.1 91.0 Financing revenue (interest) - - 67 37 3,452 4,699 3,415 4,766 Payments and other revenue 764 622 12 10 1,017 527 385 1,303 Total reven
Slide 40: Glossary
Glossary ACH Automated Clearing House A type of electronic bank-to-bank payment in the US, equivalent to EFT in Australia Active customer Any customer who has transacted with QuickFee in the relevant period Active firm Any firm that has had a transaction with QuickFee in the relevant period APR Annu