X2m Connect Limited · ASX:X2M
X2m Connect — Q1 2024 Earnings Presentation
24 slides from X2m Connect's earnings presentation, Nov 22, 2023
Slide 1: X2M digitising utilities in APAC – FY24 Q1 Trading update
For personal use only X2M digitising utilities in APAC FY24 – Q1 Trading update
Slide 2: Disclaimer
Disclaimer This Presentation (“Presentation”) has been prepared by X2M Connect Limited (Company). You must read and accept the conditions in this notice before considering the information set out in or referred to in this Presentation. If you do not agree, accept or understand the terms on which thi
Slide 3: Presentation Agenda
For personal use only PRESENTATION AGENDA WHAT WE DO PERFORMANCE 1Q24 THE MARKET OPPORTUNITY
Slide 4: What We Do
For personal use only WHAT WE DO
Slide 5: The X2M – a data gatherer and controller of devices
The X2M – a data gatherer and controller of devices “One platform, any device, multiple applications” For personal use only Machine Health Checks Billing AI & Big data Learning CRM Engines & Social Platforms Analytics & Asset Applications Management X2M Management Platform - “Vision” Data from Water
Slide 6: X2M's Patents >50 granted across countries
X2M’s Patents >50 granted across 14 countries For personal use only One Platform Networks Control Dumb & Smart Flexibility Any device on Communication Two-way Ability to retro fit Cloud and edge- one platform over many communications legacy devices – based capability – means more networks- 3G to and
Slide 7: Delivering proven use cases
Delivering proven use cases Next wave of productivity improvement for enterprises and government For personal use only Water Bottled gas Smart Water quality Energy & Water digitisation & logistics communities in management in management in automation in management in Australia China Taiwan South Kor
Slide 8: X2M's Business Operations
X2M’s Business Operations For personal use only Australia Beijing Japan South Korea Taiwan Smart Water Quality Gas Bottle Water meter Gas Monitoring Communities Sensors Monitoring monitoring and Remote gas An integrated end to Hardware sensor sales Gas meter monitoring control monitoring for end ene
Slide 9: X2M's Revenue Model
X2M’s Revenue Model One off Charges Initial platform installation charge plus platform customization fees For personal use only Per new device connection fee or Per new device fee for X2M hardware Recurring charges Monthly SaaS fee for data delivered Monthly maintenance fee for support 1Q23 RESULTS
Slide 10: X2M 1Q24 Performance
For personal use only X2M 1Q24 PERFORMANCE
Slide 11: 1Q24 Trading update – Key financial metrics on target
1Q24 Trading update – Key financial metrics on target Solid revenue growth, improved margins, reduced costs and declining cash burn are highlights of the 1Q results For personal use only Operating Gross Opex Adjusted Revenues cash margin $2.2m EBITDA loss $4m up burn$1.1m $1.3m up down 8% $0.6m down
Slide 12: 1Q24 Trading update – Business KPI's
1Q24 Trading update – Business KPI’s Drivers of future value For personal use only SaaS and Enterprise and maintenance government revenues customers $0.4m up 60% 70 up 35% Annualised Connected devices recurring revenues 472,882 up 62% $1.5m up 67% 1. All FY24 financial results in this presentation a
Slide 13: 1Q24 P&L at a glance – revenues & margins up, costs down
1Q24 P&L at a glance2 – revenues & margins up, costs down ($’m) 1Q24 1Q23 Change For personal use only Revenue 4.0 3.8 7% Cost of Sales (2.7) (2.9) -6% “ Gross Profit 1.3 0.9 47% The company Other income 0.1 0.4 -70% strategy is to secure Overheads1 (2.2) (2.3) -3% enterprise customers and extend in
Slide 14: Year on Year Financial trends
Year on Year Financial trends Revenue ($M) Gross profit ($M) 1Q24 revenue of $4.0m, 1Q24 gross profit of $1.3m, For personal use only up 7% on the pcp up 47% on the pcp 4.0 3.8 +7% 1.3 0.9 +47% 1.6 0.3 1Q22 1Q23 1Q24 1Q22 1Q23 1Q24 Net cash burn from operating activities Adjusted EBITDA 1Q24 net cas
Slide 15: Year on Year Business Metric trends
Year on Year Business Metric trends Enterprise and government customers SaaS and maintenance revenues 1Q24 Enterprise and government customers 1Q24 SaaS and maintenance revenues For personal use only of 70, up 35% on pcp of $0.4m, up 60% on pcp 70 0.4 52 +35% +60% 37 0.2 0.1 1Q22 1Q23 1Q24 1Q22 1Q23
Slide 16: Operating cash burn a key financial metric
Operating cash burn a key financial metric 1Q24 delivered cash burn from operating activities of $1.1 million compared with $1.3 million in 1Q23. The improved performance was driven by a better gross margin and well For personal use only controlled operating expenses. Chart below shows the improveme
Slide 17: Historical momentum is good
Historical momentum is good Repeat orders from customers and pipeline conversion drive future SaaS revenues 6 months to connect next ~100k For personal use only devices “ 472,882 6 months Annualised Recurring to connect 428,801 next ~100k Revenue increased devices 390,626 from $0.9m in September “ 3
Slide 18: The Market Opportunity
For personal use only THE MARKET OPPORTUNITY
Slide 19: X2M's addressable market is large
X2M’s addressable market is large Australia Addressable market in current For personal use only 26m people geographies: 250 million people. 104m 9m households households Beijing, China 22m people Addressable market across existing 9m households customers: >10m households1 . Revenue potential >$500m
Slide 20: X2M is diligently penetrating its customer base – South Korea example
X2M is diligently penetrating its customer base – South Korea example Total addressable market and share of TAM increasing as X2M gets embedded into customer eco systems generating follow-on orders SOUTH KOREA MARKET – SEP 2021 SOUTH KOREA MARKET – JUN 2023 For personal use only TAM of all Cumulativ
Slide 21: FY24 targets
FY24 targets > 20% Revenue growth For personal use only > 60% growth in annualised recurring revenues > 50% growth in gross profit Operating costs flat and cash burn halved >50% growth in connected devices 1Q23 RESULTS I X2M CONNECT 21
Slide 22: New markets being progressed/considered
New markets being progressed/considered For personal use only Australia - Smart communities and smart agriculture Middle East - Gas distribution and management India – gas and energy management 1Q23 RESULTS I X2M CONNECT 22
Slide 23: Summary - X2M a compelling investment proposition
Summary - X2M a compelling investment proposition Significant and growing addressable market For personal use only Existing customer base provides an immediate addressable market to harvest within utility digitisation and energy management in APAC. Attractive business model Comprising upfront fees a
Slide 24: Thank you
For personal use only Thank you