Sage Group Plc · LSE:SGE
Sage — Investor Presentation (March 2022)
52 slides from Sage's investor presentation, Mar 23, 2022
Slide 1: Sage Intacct and the Digital Network
Sage Intacct and the Digital Network Webinar for Investors and Analysts 23 March 2022
Slide 2: Important notice
Important notice The following presentation is being made only to, and is only directed at, persons to whom such activities; the competitive environment; our ability to adapt to technological change; business presentation may lawfully be communicated (“relevant persons”). Any person who is not a rel
Slide 3: Steve Hare, Chief Executive Officer
Steve Hare Chief Executive Officer Introduction Digital Network Sage Intacct Q&A Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 © 2022 The Sage Group plc, or its licensors. All rights reserved. 3
Slide 4: Meet the team
Meet the team Aaron Harris Dan Miller Walid Abu-Hadba Chief Technology Officer EVP Sage Intacct Chief Product Officer As Sage’s Global CTO, Aaron is Dan leads the Sage Intacct business Walid is responsible for leading Sage’s responsible for Sage’s technology and is a proven leader in the cloud globa
Slide 5: Strategic framework for growth
Strategic framework for growth Purpose To knock down barriers so everyone can thrive Ambition To be the trusted network for small and mid-sized businesses Strategic Priorities Scale Expand Medium Build the Small Scale the Network Learn and Disrupt Sage Intacct Beyond Financials Business Engine Stake
Slide 6: Our ambition: to be the trusted network for SMBs
Our ambition: to be the trusted network for SMBs Sage’s Digital Network Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 © 2022 The Sage Group plc, or its licensors. All rights reserved. 6
Slide 7: Five strategic priorities driving growth
Five strategic priorities driving growth #1. Scale Sage Intacct Accelerate the expansion of Sage Intacct in existing and new markets #2. Expand medium beyond financials Broaden the value proposition for mid-sized businesses #3. Build the small business engine Create a scalable digital ‘engine’ to ac
Slide 8: Growing Sage Business Cloud
Growing Sage Business Cloud Sage Business Cloud penetration since FY18 71% Sage Business Cloud unlocks the 67% power of the Digital Network 60% 50% • Growing Sage Business Cloud by: 31% ̶ Attracting new customers to Sage Business Cloud 19% 23% ̶ Migrating existing customers 12% 13% 15% and products
Slide 9: Aaron Harris, Chief Technology Officer
Aaron Harris Chief Technology Officer Introduction Digital Network Sage Intacct Q&A Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 © 2022 The Sage Group plc, or its licensors. All rights reserved. 9
Slide 10: Today's mega trends are a catalyst for growth
Today’s mega trends are a catalyst for growth Digital transformation is accelerating Automation is elevating human work Businesses must be environmentally and socially responsible Technology must be trusted Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 © 2022 The Sage
Slide 11: Digital transformation definition (IDC quote)
“Digital transformation is the approach by which companies drive changes in their business models and ecosystems by leveraging digital competencies.” —IDC Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 11 3/23/2022 © 2022 The Sage Group plc, or its licensors. All rights
Slide 12: Digital networks are the breakthrough architecture
Digital networks are the breakthrough architecture SaaS Multi-Tenancy Digital Network Enables SaaS economics Identities and relationships mapped to the real world digitise the connections between people, technology, and data Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 202
Slide 13: Core components of the Digital Network
Core components of the Digital Network Globally shared directory The shared ledger, enabling of digital identities and data to flow over the relationships network with complete end-to-end trust Services Artificial intelligence that digitise and Machine Learning, workflows across applied to the data
Slide 14: Scale matters
Scale matters Our strategic flywheel The data opportunity for Sage Data flowing through the Digital Network will unlock new opportunities to help our customers thrive, creating a powerful platform for innovation. Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 © 2022 The
Slide 15: Sage has unique access to valuable data
Sage has unique access to valuable data >10bn >20m 10m invoices sent and employees Sage ID logins per received annually by worldwide paid by month Sage customers1 Sage Payroll Broad market presence across North America, Western Europe, Africa and APAC 1. Estimated figure Sage Group plc – Sage Intacc
Slide 16: Sage Intacct customer activity
Sage Intacct customer activity >65m >36m >25bn Customer Vendor relationships Transactions relationships >7m >$85bn ~50% Payments monthly Payments monthly YoY data growth Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 © 2022 The Sage Group plc, or its licensors. All righ
Slide 17: The Digital Network is here today
The Digital Network is here today Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 © 2022 The Sage Group plc, or its licensors. All rights reserved. 17
Slide 18: Meeting customer needs through digital services
Meeting customer needs through digital services Payments Payments Banking Acceptance Compliance Out Automates the bank reconciliation Enables customers to receive Allows customers to make Enables customers to address process for our customers by payments easily, including by supplier and salary paym
Slide 19: New services driven by Artificial Intelligence
New services driven by Artificial Intelligence Accounts Outlier Document Absenteeism Payable (AP) Detection Data Extract Forecasting automation Streamlines AP workflows from Flags transactions that deviate Digitises and analyses business Predicts absenteeism rates and document ingestion to payment,
Slide 20: Leveraging data to power third-party services
Leveraging data to power third-party services Knocking down barriers for consumers to access better financial products and services Consumer consented, payroll data access via Sage’s Digital Network • Launched in November 2021 by Experian in partnership with Sage, Work Report™ is the first digital v
Slide 21: Digital Network – Key takeaways
Digital Network – Key takeaways Digital Transformation is accelerating with digital networks as a breakthrough architecture Sage’s scale provides unique access to valuable data Sage’s Digital Network is here and is meeting customer needs through digital services and AI/ML Sage Group plc – Sage Intac
Slide 22: Dan Miller, EVP Sage Intacct
Dan Miller EVP Sage Intacct Introduction Digital Network Sage Intacct Q&A Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 © 2022 The Sage Group plc, or its licensors. All rights reserved. 22
Slide 23: From start-up to market leader
From start-up to market leader 1999 2017 2018 2019 2020 2021 2022 Intacct Intacct Reached Sage Intacct Sage Intacct Reached Sage Intacct founded as acquired by $100M in launched in launched in $200m in Manufacturing one of the first Sage ARR UK and Canada & ARR launched in accounting Australia S Afr
Slide 24: Consistent strong growth in the US
Consistent strong growth in the US Sage Intacct ARR – US (£m) 212 Investment driving acceleration • £212m ARR as at Q1 22 103 • Doubled in the last three years • Resilient during Covid Q1 Q1 Q1 Q1 19 20 21 22 Figures are on an organic basis Sage Group plc – Sage Intacct webinar for Investors and Ana
Slide 25: Gaining traction internationally
Gaining traction internationally Sage Intacct ARR – ex-US (£m) 10 Launched in 5 countries (ex-US)1 • £10m ARR outside the US as at Q1 22 • ~300% growth (year-on-year) • Plans for further expansion Q1 Q1 Q1 Q1 19 20 21 22 1. UK, Canada, S Africa, Australia and France Figures are on an organic basis S
Slide 26: Award-winning solution
Award-winning solution Industry Analysts AICPA Recognised by Gartner: • For 5 years in a row…Sage Intacct receives the highest score in Core AICPA’s preferred provider of Financials for the Lower Midsize Enterprises Use Case1 accounting applications • Visionary in cloud financial management2 Custome
Slide 27: Leading financial management software
Leading financial management software SAGE INTACCT MARKETPLACE Accounting Planning SOLUTIONS 200+ partners Retail ecommerce CRM Manufacturing operations Document management Inventory Commission & incentive Grant tracking compensation Revenue recognition Leasing Subscription billing Tax management Pr
Slide 28: Successful go-to-market approach
Successful go-to-market approach Investing in sales channels to accelerate growth Core target market Strong direct sales team SMBs up to 1,000 Investing in depth and employees capability of talent Vertical approach drives Industry-leading VAR Record number of marketing efficiency programme Sage Inta
Slide 29: Targeting verticals and micro-verticals
Targeting verticals and micro-verticals Service-centric industries Product-centric industries SaaS & Nonprofits Professional Healthcare Financial Hospitality Construction Retail Manufacturing Distribution Software Services Services & Real Estate $ • Security • Human services • HR – Staffing • Multi-
Slide 30: Sage Intacct strategy for growth
Sage Intacct strategy for growth Extend vertical Expand beyond Scale Drive earlier reach financials internationally adoption Innovation powered by the Digital Network Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 © 2022 The Sage Group plc, or its licensors. All rights
Slide 31: Extend vertical reach
Extend vertical reach Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 © 2022 The Sage Group plc, or its licensors. All rights reserved. 31
Slide 32: Developing new verticals
Developing new verticals For discussion today SaaS & Nonprofits Professional Healthcare Financial Hospitality Construction Retail Manufacturing Distribution Software Services Services & Real Estate $ • Security • Human services • HR – Staffing • Multi-location • Single Family • Quick Service • Resid
Slide 33: Sage Intacct Construction
Sage Intacct Construction • Leverages Sage’s 40+ years of construction experience • Ranked #1 for construction finance management software1 • Cloud solution for 15k Sage customers on existing Sage CRE products • Significant opportunity for new customers and migration to higher value solutions Future
Slide 34: Sage Intacct – Brightpearl
Sage Intacct – Brightpearl • Highly configurable SaaS-based retail operating system and easy-to-adopt inventory planning • Differentiated native integrations with storefronts • Enables real-time business insights and helps customers automate workflows to save time and money • Acquired in January 202
Slide 35: Sage Intacct Manufacturing
Sage Intacct Manufacturing • Intelligent SaaS-based production and operations management solution • Best practices designed into the workflow to streamline onboarding • Opens access to the discrete manufacturing industries • Leverages Sage X3 deep domain expertise • Launched in France in March 2022
Slide 36: Expand beyond financials
Expand beyond financials Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 © 2022 The Sage Group plc, or its licensors. All rights reserved. 36
Slide 37: Broadening the value proposition
Broadening the value proposition For discussion today Planning Accounts Receivable & Analytics (AR) Automation Best-in-class financials \ platform Accounts Payable HR & Payroll (AP) Automation Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 © 2022 The Sage Group plc, or
Slide 38: Sage Intacct Planning
Sage Intacct Planning • Intuitive planning solution that makes “ budgeting and planning easy and impactful • Up and running in a matter of hours from business actuals “Collaboration has increased exponentially… The • Saves customers’ time and generates better finance team is no longer just number-cr
Slide 39: Analytics – Interactive Visual Explorer (IVE) demo
Analytics – Interactive Visual Explorer (IVE) demo Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 © 2022 The Sage Group plc, or its licensors. All rights reserved. 39
Slide 40: Scale internationally
Scale internationally Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 © 2022 The Sage Group plc, or its licensors. All rights reserved. 40
Slide 41: Progress to date
Progress to date Expanding the Sage Intacct family of products into new geographies Sage Intacct Manufacturing Sage Intacct Planning • Launched in France in March 2022 • Launched in US 2019 • Market testing in UK later this year Sage Intacct • Launched standalone in US 2022 • Market launch in UK and
Slide 42: Growing international capabilities
Growing international capabilities Enabling multi-national customers Meeting local requirements • Tier & partial ownership • Multi-language • Global bank transactions and • Multi-tax pre-built setup / compliance payments gateway • e-invoicing / smart transactions Go-to-market playbook • Focus on mar
Slide 43: Drive earlier adoption
Drive earlier adoption Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 © 2022 The Sage Group plc, or its licensors. All rights reserved. 43
Slide 44: Sage Intacct Editions
Sage Intacct Editions Accelerate customer acquisition with tailored offerings that are faster to implement What are Sage Intacct Editions? • Tailored packages with simpler pricing targeting specific • Streamlines customer journey industries and company sizes ̶ Removes upfront implementation costs •
Slide 45: Innovation powered by the Digital Network
Innovation powered by the Digital Network Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 © 2022 The Sage Group plc, or its licensors. All rights reserved. 45
Slide 46: AP automation and payments
AP automation and payments Saving customers time and money through automation and eliminating inefficiencies 80% reduction in Cost to manually process a single invoice is estimated to be $15 vs. $3 with automation processing cost 1% estimated cash saving An estimated 4% of vendor payments are duplic
Slide 47: AP automation demo
AP automation demo Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 © 2022 The Sage Group plc, or its licensors. All rights reserved. 47
Slide 48: Outlier detection for GL
Outlier detection for GL The first real-time AI-driven outlier detection tool for a general ledger Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 © 2022 The Sage Group plc, or its licensors. All rights reserved. 49
Slide 49: Outlier detection for GL
Outlier detection for GL Delivering significant benefits to customers “ “Sage Intacct really listens to their customers. Outlier detection is hands down my favourite thing that Sage Intacct has done so far. It allowed us to catch an overstatement of revenue of about $350k before it was in the books.
Slide 50: Sage Intacct takeaways
Sage Intacct takeaways Award-winning solution with consistently strong US growth and gaining international traction Clear strategy for further growth Innovative new product capabilities powered by the Sage Digital Network Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 ©
Slide 51: Q&A
Q&A Introduction Digital Network Sage Intacct Q&A Sage Group plc – Sage Intacct webinar for Investors and Analysts, March 2022 © 2022 The Sage Group plc, or its licensors. All rights reserved. 52
Slide 52: About Sage
About Sage Sage exists to knock down barriers so everyone can thrive, starting with the millions of Small and Mid-Sized Businesses served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow. By digitising business processes and relati