Zalaris Asa · OSL:ZAL
Zalaris Asa — Q3 2024 Earnings Presentation
24 slides from Zalaris Asa's earnings presentation, Oct 24, 2024
Slide 1: Presentation of financial results Q3 2024
24 October 2024 Presentation PeopleHub BY ZALARIS of financial Your one-stop results HR platform Q3 2024
Slide 2: Disclaimer
Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. This presentation doe
Slide 3: Agenda
Agenda Today’s presenters • Highlights • Financial review • Outlook • Q&A • Appendix: Company in brief Hans-Petter Mellerud Gunnar Manum CEO and Founder CFO Page 3
Slide 4: Highlights
Highlights Simplify work life. Achieve more.
Slide 5: All time high revenue and adj. EBIT in Q3 2024
All time high revenue and adj. EBIT in Q3 2024 Strong growth: Revenue increased 22.1% YoY to NOK 340 million with Net Revenue Retention in Managed Services of 108% High EBIT: adj. EBIT of NOK 37.0 million (10.9%), up from NOK 23.7 (8.5%) last year Strong sales pipeline in both Managed Services and P
Slide 6: Q3 sales securing growth and continued low churn
Q3 sales securing growth and continued low churn Expanded and renewed services with existing customers in Managed Services Started implementation project for two large German Managed Services customers Significant pipeline of Multi-Country PeopleHub new name and upsell opportunities Securing large l
Slide 7: Managed Services grew 27% YoY to NOK 254 million and 75% of total revenue
Managed Services grew 27% YoY to NOK 254 million and 75% of total revenue. Revenue NOK 253.7m (+26.9%) Revenue in Managed Services grew by +27% 26.9% YoY (+23.3% growth YoY when adj. for 253.7 currency effects) 246.6 242.3 232.7 228.9 108% Net Revenue Retention YoY in constant currency as existing c
Slide 8: Professional Services revenue was 2% lower YoY mainly due to less consulting projects in UK
Professional Services revenue was 2% lower YoY mainly due to less consulting projects in UK Revenue NOK 71.6m (-1.8%) Revenue in Professional Services was 1.8% lower -1.8% YoY (-6.1 when adjusted for currency effects). 76.8 Revenue reduction is mainly due to the partial 75.3 completion of a large co
Slide 9: Financial Review
Financial Review Simplify work life. Achieve more.
Slide 10: Revenue increased by 18% for the quarter YoY in constant currency
Revenue increased by 18% for the quarter YoY in constant currency Revenue NOK 339.7m (+22.1%) 22% 18% 339.7 329.0 Revenue growth (as reported) for the quarter YoY: +22.1% 278.2 Revenue growth +18.3% YoY in constant currency* MS +26.9% to NOK 254m • Net retention of 108% PS -1.8% to NOK 72m Net new S
Slide 11: Strong revenue visibility through 2024/25 - new BPO customers to go live
Strong revenue visibility through 2024/25 - new BPO customers to go live should result in >13% revenue increase compared to revenue LTM Revenue development based on signed MS contracts (NOKm) 335 Total annual revenue expected to increase by ~NOK 173m 122 (+13%) vs. LTM Q3’24, based on already signed
Slide 12: All time high adj. EBIT for the quarter
All time high adj. EBIT for the quarter Adj. EBIT* (NOKm) and margin (%) Adj. EBIT NOK 37.0 (NOK 23.7m) +56% 10.9% 10.9% 10.7% Adj. EBIT margin 10.9% (+2.4pp) 8.5% 8.8% EBIT and margin improvements from increased revenue (lower unit cost) and operational 37.0 improvements in NE and Germany (e.g. lar
Slide 13: Condensed Profit and Loss
Condensed Profit and Loss 2024 2023 2024 2023 2023 * (NOK 1 000) Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec Revenue 339 682 278 157 981 406 820 761 1 133 971 License costs 27 113 24 644 79 363 76 733 103 231 % of revenue 8,0 % 8,9 % 8,1 % 9,3 % 9,1 % Personnel expenses 165 156 139 862 500 233 436 195 5
Slide 14: Operating cash flow increased by NOK 33m YoY to NOK 48m
Operating cash flow increased by NOK 33m YoY to NOK 48m Development in cash balance (NOKm) -10.2 Cash flow from operating activities -2.6 -9.0 of NOK 48.4m vs. NOK 15.3m last 63.1 -9.8 8.7 -9.4 year -11.7 180.1 -2.2 163.2 Cash balance at 30 September NOK 180.1m (+NOK 16.9m from Q2) Net interest-bear
Slide 15: Outlook
Outlook Simplify work life. Achieve more.
Slide 16: Zalaris target NOK 1.5bn in 2026 revenues with 12-15% adj. EBIT
Zalaris target NOK 1.5bn in 2026 revenues with 12-15% adj. EBIT through operational excellence and scale Development in revenue Key growth and margin initiatives NOKm 1,500 1 Drive revenue growth through continued new 1,131 customers and upsell of existing customers (1,163)2 targeting run rate of NO
Slide 17: #teamZalaris is UNSTOPPABLE: another all-time high revenue quarter
#teamZalaris is UNSTOPPABLE: another all-time high revenue quarter delivered and significant uptick in EBIT as improvements in Germany start materialize • Solid Q3 with growth of 22% to annualized revenue of almost NOK 1.4 billion with 10,9% EBIT • Growth to continue as annual revenue expected to in
Slide 18: Q&A
Q&A Simplify work life. Achieve more.
Slide 19: Appendix: Company in brief
Appendix: Company in brief Simplify work life. Achieve more.
Slide 20: Payroll & HR solutions that enable digital organizations
Payroll & HR solutions that enable digital organizations Zalaris is a leading European provider of global payroll and human capital management solutions delivered through software as a service, 1,500,000 ~1,100 340,000+ outsourcing, or consulting delivery models Employees served monthly Zalaris empl
Slide 21: Zalaris' Product offering covering the full employee life cycle
Zalaris’ Product offering covering the full employee life cycle HR system Benefits Country specific Employee self Organizational Employee Co2 Document management locations services structures footprint archive Payroll Cloud Global Payroll Payroll payroll payroll hr-automation HR-transformation Workf
Slide 22: Services delivered by two integrated business units
Services delivered by two integrated business units with most revenues being recurring of nature Managed services (MS) Professional services (PS) Zalaris’ cloud solution and comprehensive payroll and HR outsourcing services Consulting services including delivery of traditional consulting projects as
Slide 23: Diversified and large customer base comprising blue-chips across multiple industries
Diversified and large customer base comprising blue-chips across multiple industries Managed Services Professional Services >1,000 employees >2 countries Software agnostic >1,000 employees Private and public sector SAP integration BERLIN Bank, Insurance & Financial services Health & Life Science Inf
Slide 24: Thank you!
We simplify HR and payroll administration, and empower you with useful information so that you can invest more in people. Thank you! Zalaris ASA | +47 4000 3300 | www.zalaris.com Simplify work life. Achieve more.