Slide 1: Q3 FY24 Business Update
QUICKFEE Q3 FY24 BUSINESS UPDATE 24 April 2024 President, North America, Jennifer Warawa Chief Financial Officer, Simon Yeandle
Slide 2: Strong revenue growth continues, up 36% on pcp
Strong revenue growth continues, up 36% on pcp Strong revenue growth: + Driven by successful execution of core Finance product strategies + US Finance revenue up 54% on pcp: Total Transaction Volume (TTV) up 36% and revenue yield up 120 bps + Australia Finance revenue up 50% on pcp: TTV up 20% and r
Slide 3: Key metrics in Q3 FY24
Key metrics in Q3 FY24 YEAR-ON-YEAR Q3 FY24 PERFORMANCE1 Q3 FY24 Q3 FY23 MOVEMENT REVENUE US Finance (Pay Over Time) US$ 709k US$ 459k +54% US Pay Now (ACH & Card) US$ 1,051k US$ 916k +15% AU Finance (Pay Over Time) A$ 2,014k A$ 1,343k +50% GROUP REVENUE INCLUDING ANCILLARY PRODUCTS A$ 4.9M A$ 3.6M
Slide 4: QuickFee Pay Over Time (Finance)
QuickFee Pay Over Time (Finance) AU FINANCE TTV A$M AU FINANCE REVENUE AU FINANCE REVENUE YIELD % A$M Revenue growth driven by both volume and yield 0.4 + In both markets, revenue growth has come 0.3 from both TTV growth and yield improvements 13.1 YIELD 15.4% 10.9 TTV 12.3% + Yield improvements are
Slide 5: Strong revenue growth expected to continue
Strong revenue growth expected to continue GROUP REVENUE BY QUARTER (A$M) 'LAST 12 MONTHS' ROLLING 5.1 GROUP REVENUE (A$M) 4.9 18.5 17.2 15.8 4.3 4.2 14.0 14.8 13.0 11.9 3.7 3.6 3.2 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Season
Slide 6: What We Do
WHAT WE DO
Slide 7: Unique product and payments portfolio
Unique product and payments portfolio Our customers benefit from increased revenue, improved cashflow, reduction in accounts receivable, improved operational efficiency and reduced cost base. PAY NOW | ACH/EFT + PAY OVER TIME | QUICKFEE CONNECT | CARD FINANCE AUTOMATION Traditional digital payment I
Slide 8: Winning with a unique customer value proposition
Winning with a unique customer value proposition Traditional ACH and Other ‘Pay Over Other A/R card processors Time’ Finance automation Designed specifically for professional providers platforms service firms No integration with practice management Consumer focused, low Only serve top tier, very No
Slide 9: Executing on the US Growth Strategy
EXECUTING ON THE US GROWTH STRATEGY
Slide 10: Unlocking transformational growth in the US
Unlocking transformational growth in the US Drive Cost Effective Growth QuickFee Finance Through Automation Revenue yields on the Finance Leverage automation across all product are approximately 25x functional areas to ensure we are those of Pay Now. driving growth in the most efficient, cost-effect
Slide 11: US Finance revenue up 54% in Q3 FY24 on pcp
US Finance revenue up 54% in Q3 FY24 on pcp US FINANCE 'LAST 12 MONTHS ROLLING' TTV QuickFee Finance is a key differentiator in competitive payments (US$M) 26.2 market 24.4 22.0 Revenue yields on the Finance product are approximately 25x 20.9 19.3 those of Pay Now 17.8 18.7 200% increase in new US f
Slide 12: Q3 FY24 Operational metrics in the US
Q3 FY24 Operational metrics in the US + US Active Customers up 14% to 97,000 and US Active Firms up 3% to 689 on pcp + The strategic decision to focus on the core, higher-margin Finance product, in conjunction with a refreshed sales strategy with incentive alignment on commissions, has driven strong
Slide 13: Australia: Continued Strong Organic Growth
AUSTRALIA: CONTINUED STRONG ORGANIC GROWTH
Slide 14: Australia: Continued strong organic growth
Australia: Continued strong organic growth AU FINANCE 'LAST 12 MONTHS' ROLLING TTV (A$M) 53.4 QuickFee well established as a market leader, with 51.2 48.5 ~40% of the AU market for fee funding 44.5 46.4 41.5 39.1 + AU Finance revenue up 50% on pcp + Strong organic growth through existing firms + In
Slide 15: Q3 FY24 Operational metrics in Australia
Q3 FY24 Operational metrics in Australia + AU Finance TTV up 20% on pcp to $13.1 million + AU Active Customers up 25% on pcp to 15,000, AU Active Firms stable on pcp at 411 + Legal disbursement funding TTV (included within Finance TTV) continues to be a growing component of the AU business AU ACTIVE
Slide 16: Outlook
OUTLOOK
Slide 17: On the path to profitability
On the path to profitability Path to profitability 9.3 + Track record of revenue growth 7.9 6.9 6.1 5.7 4.7 4.9 4.5 4.3 4.2 4.5 + Track record of gross profit growth 3.2 3.1 3.4 + Cost base stable -2.6 -2.7 -2.7 -3.7 + Year-on-year EBTDA growth -5.2 -5.5 expected to continue for H2 FY24 -7.1 H1 FY21
Slide 18: Fixed cost leverage effect
Fixed cost leverage effect Variable costs: + Mainly comprise AU card processing and US ACH Indicative impact of fixed cost leverage on processing costs and interest. hypothetical future half-yearly year-on-year revenue growth of 30-40% + Are approximately 30% - 35% of revenue. + Are 30% - 40% of tot
Slide 19: Cash and loan book growth funding
Cash and loan book growth funding Cash and liquidity + A$3.2 million cash on hand, with borrowing capacity of a further A$23.2 million from existing facilities available to fund future loan book growth, as at 31 March 2024 + QuickFee has adequate headroom to achieve sustainable profitability within
Slide 20: Outlook
Outlook Focus on reaching profitability + Positive momentum in key metrics + Continue to manage cost base carefully + Focus on fastest path to profit: QuickFee Finance and Connect solutions + Expect stronger H2 FY24 than H1 FY24 Focus on unlocking transformational growth in the US + Experienced team
Slide 21: Questions
QUESTIONS
Slide 22: 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 23: 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 24: 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