Slide 1: 2019 Results Presentation
For personal use only 2019 RESULTS PRESENTATION
Slide 2: Disclaimer
For personal use only Disclaimer • This presentation has been prepared by Serko Limited. • All information is current at the date of this presentation, unless stated otherwise. All currency amounts are in NZ dollars unless stated otherwise. • Information in this presentation • is for general informa
Slide 3: For personal use only
For personal use only CEO Introductions Strategic Update Financial Highlights Outlook 3
Slide 4: Darrin Grafton
For personal use only Darrin Grafton 4
Slide 5: Strategic Update
For personal use only STRATEGIC UPDATE 5
Slide 6: Technology Innovation
For personal use only TECHNOLOGY INNOVATION Zeno grew from a concept to a complete product and was deployed globally across hundreds of customers • Zeno was the first online travel and expense solution globally to be certified NDC* Level 3 by IATA, with NDC solutions rolled out with ATPCO NDC Exchan
Slide 7: Growing Our Customer Base
For personal use only GROWING OUR CUSTOMER BASE We extended our market leadership in Australia & New Zealand and established reseller partnerships in North America and Europe • Australasian growth and transition to Zeno has ramped up with over 85%* reseller agreements signed • Tandem Travel (Air New
Slide 8: Building Revenue
BUILDING REVENUE For personal use only Signing Revenue Implementing 8
Slide 9: Growing ARPB
For personal use only GROWING ARPB The first resellers and customers began migrating to Zeno at a premium transaction cost and we laid the foundations for more widespread adoption • Zeno transition increases ARPB through increased transaction booking fee as well as increasing additional content upta
Slide 10: Performance Dashboard FY19 vs FY18
PERFORMANCE DASHBOARD For personal use only FY19 VS FY18 PROFIT REVENUE ACTIVITY COSTS $1.6m 28% 26% 28% 41% 17% 87% 32% NET PROFIT OPERATING RECURRING TOTAL ONLINE OPERATING PEAK ATMR3 R&D COSTS4 AFTER TAX REVENUE REVENUE2 INOME BOOKINGS EXPENSES $2.6m $23.4m $20.7m $24.6m $26m 17% $9.2m $23.3m EBI
Slide 11: ATMR Rises in Line with Strong Transaction Growth
ATMR RISES IN LINE WITH For personal use only STRONG TRANSACTION GROWTH 41% PEAK ATMR3 17% ONLINE BOOKINGS ONLINE BOOKINGS PEAK ATMR *ATMR is shown before and after the acquisition of InterplX, the results of which are included effective from January 2019. Peak ATMR is February for both 2019 and 201
Slide 12: Continued Revenue Growth
FY18 change Revenue by Type $000 $000 % Travel platform revenue 15,948 13,283 2,665 20% For personal use only Expense platform revenue 2,710 1,539 1,171 76% CONTINUED Content commissions Other revenue 1,538 467 1,288 334 250 133 19% 40% REVENUE GROWTH Recurring revenue 20,663 16,444 4,219 26% Recurr
Slide 13: EBITDAF Growth
For personal use only Net Profit Summary FY18 change EBITDAF GROWTH EBITDAF Reconciliation $000 $000 % Total income 24,576 19,273 5,303 28% Operating expenses (23,320) (17,684) (5,636) -32% Percentage of operating revenue -97% 19% Net finance income 290 414 (124) -30% EBITDAF Net profit before tax 1
Slide 14: Product R&D Investment Increases with Global Expansion
For personal use only PRODUCT R&D Costs FY18 change INVESTMENT $000 $000 % INCREASES WITH Total R&D costs (including amounts capitalised) Percentage of operating revenue 9,165 4,906 27% 4,259 87% GLOBAL Less: capitalised product development costs (6,740) (383) (6,357) 1660% EXPANSION Percentage of R
Slide 15: Finance Other Highlights
For personal use only FINANCE OTHER HIGHLIGHTS • One off ASX Foreign Exempt Listing and InterplX acquisition costs were $0.4 million • Oversubscribed capital raise of $15 million ($14.3 million net of costs) • Closing cash balances were $15.7 million • Net cash movement for the year, excluding funds
Slide 16: Outlook
For personal use only OUTLOOK • Total Operating Revenue Growth expected to be in the range of 20%-40% • Positive EBITDAF is dependant on continued capitalisation of internally developed software and achieving revenue growth at high end of guidance due to scaling of operations for signed contracts •
Slide 17: Questions
For personal use only QUESTIONS 17
Slide 18: Appendix
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Slide 19: About Serko
ABOUT SERKO For personal use only • Serko provides innovative cloud based corporate travel and expense technology solutions. • Founded in 2007 by Darrin Grafton and Robert Shaw, Serko listed on the New Zealand stock exchange in June 2014, and more recently in June 2018, has listed as a foreign exemp
Slide 20: About Serko: Zeno Travel and Zeno Expense
ABOUT SERKO For personal use only Zeno Travel Zeno Expense Zeno Travel is an Online Zeno Expense automates Booking Tool (OBT) that the process of corporate corporate travellers use to card and out-of-pocket book flights, trains, expense submission, hotels, rental cars and reconciliation and airport
Slide 21: Our Customers
OUR CUSTOMERS For personal use only The majority of Serko’s revenue comes from Travel Management Companies (TMCs) that act as reseller partners, providing our solutions to their corporate customers as part of their overall managed travel service. TMCs Example corporates 21
Slide 22: Commercial Model
COMMERCIAL MODEL For personal use only Booking and other fees $ Corporate traveller makes a booking via Serko Serko charges the TMCs a fee per booking (which varies based on volume). Online/Zeno $ Traveller submits receipts Monthly user fee Year Ended 31 March 2019 using Serko Expense/Zeno Serko Exp
Slide 23: Historic Measures
HISTORIC MEASURES For personal use only Selected Operational Metrics FY13 FY14 FY15 FY16 FY17 FY18 FY19 Total revenue growth (%) 27% 39% 55% 27% 9% 28% 28% Revenue growth – Travel Platforms (%) 41% 12% 62% 49% 8% 23% 20% Total travel booking transactions (000s) 987 1,107 1,588 2,407 2,913 3,526 4,13
Slide 24: Definitions
For personal use only DEFINITIONS • Peak ATMR (Annualised Transactional Monthly Revenue) is a non-GAAP measure. Serko uses this as a useful indicator of recurring revenues from Serko products. It is calculated by annualising the combination travel and expense platform monthly revenues for the most r
Slide 25: Thank You
For personal use only THANK YOU