Slide 1: Integrated Research Limited (IRI) FY2019 Financial Results
For personal use only Integrated Research Limited (IRI) FY2019 Financial Results August 2019 John Ruthven, CEO Peter Adams, CFO 6 of the 9 of the Top 125+ of the Top 10 10 US Banks Fortune 500 Automotive Companies 6 of the 7 of the 10 Top 10 biggest Fin Services Telcos Companies Globally Creating cl
Slide 2: Key Financial Metrics
Key Financial Metrics Strong results with investments in place to drive sustainable long term performance For personal use only Annual NPAT Performance $M 25 11% First time over $100M Revenue CAGR First time over $20M NPAT 20 Licence fees up 19% to 15 $62.8M 10 Revenue up 11% to 5 $100.8 million 0 E
Slide 3: New CEO Observations
New CEO Observations Strong market position with a compelling value proposition and the opportunity to grow leveraging core competencies For personal use only Global footprint with an enviable customer base Mission critical solutions with deep domain expertise Positive market momentum in major segme
Slide 4: Blue Chip Customer Base
Blue Chip Customer Base Quality customer base is a testament to the superiority of IR’s solutions For personal use only Telecom/IT Financial Other Healthcare Non-Profit 4
Slide 5: The Opportunity
The Opportunity Solid growth in existing markets leveraging core competencies and significant growth potential in new markets with the launch of the next generation platform For personal use only Model Execution - Prognosis innovation - Next-Gen Platform • Maintain the base; - Merchant Portal [exten
Slide 6: Operational Summary
Operational Summary Delivering on strategies to build capability, product development and expand global customer base For personal use only Payments Growth up 92% Strong licence growth: new customers, renewal and capacity expansion Unified Communications (“UC”) down 7% Inconsistent FY19 execution; p
Slide 7: Results Summary
Results Summary Consistent margins and steady cashflow For personal use only YEAR ENDING JUNE 2019 A$000 JUNE 2018 A$000 % change Total revenue 100,820 91,175 11% EBITDA 40,235 36,430 10% EBITDA margin 40% 40% EBIT 28,900 25,848 12% EBIT margin 29% 28% Profit after tax 21,851 19,180 14% Profit after
Slide 8: Key Performance Metrics
Key Performance Metrics For personal use only Term recurring revenue 89% of revenue is recurring New customers 26 new customers added over the year Pipeline Renewals UC Renewal pipeline is higher than prior year Retention rate Annual maintenance retention rate is 95% 8
Slide 9: High Quality Revenues
High Quality Revenues Diversified contribution and risk spread For personal use only Licence fees by contract length 50% 45% 40% 35% • Contracts with 30% multiyear duration 25% • Top 10 customers 20% account for less than 15% one-third of total 10% revenue 5% 0% FY2017 FY2018 FY2019 one and two year
Slide 10: Revenue Analysis - Geographic
Revenue Analysis - Geographic The return of Europe For personal use only Americas Revenue (US#039;000) Europe Revenue (£'000) Asia Pacific Revenue (A#039;000) 60,000 10,000 16,000 50,000 14,000 8,000 12,000 40,000 6,000 10,000 30,000 8,000 4,000 6,000 20,000 4,000 10,000 2,000 2,000 0 0 0 2013 2014 2015 2
Slide 11: Revenue Analysis - Product
Revenue Analysis - Product Payments boost revenues For personal use only Payments #039;000 Unified Communications #039;000 Infrastructure #039;000 20,000 30,000 60,000 25,000 15,000 50,000 20,000 40,000 10,000 15,000 30,000 10,000 20,000 5,000 10,000 5,000 0 0 0 2013 2014 2015 2016 2017 2018 2019 2013 2014 2
Slide 12: Balance Sheet
Balance Sheet Well positioned to fund growth For personal use only Abbreviated A$000 June-19 Jun-18 Cash and cash equivalents 9,316 11,238 Trade and other receivables 72,767 71,078 Intangible Assets 23,101 21,938 Strong balance sheet – no debt All Other Assets 8,337 6,318 Total Assets 113,521 110,57
Slide 13: Cashflow
Cashflow Improved cash receipts from customers For personal use only June 19 June 18 Change Cash flows from operating activities A$’000 A$’000 Cash receipts from customers ex debtor factoring 84,443 69,072 22% Cash receipts from debtor factoring 5,029 13,662 (63%) Cash receipts from customers 89,472
Slide 14: 2020 Key Drivers
2020 Key Drivers Well placed to deliver sustainable growth with execution focus For personal use only Drivers - Prognosis innovation - Next-Gen Platform - Merchant Portal [extended capability] • Renewals base; New products - Dynamic - Subscription revenue – capacity Thresholds – new modules - Hybrid
Slide 15: Appendix
For personal use only Appendix 15
Slide 16: Company Summary
Company Summary For personal use only Business Highlights Key Differentiators Founded: 1988 1. #1 Vendor in User Experience & Performance 1 Management for UC, Payments & Infrastructure Headquarters: Sydney Employees: ~270 2. Provide real-time clarity & insight into critical 2019 Revenue: $100.8M (95
Slide 17: IR Capabilities: Who We Are, What We Do
WHO WHAT WE ARE WE DO IR Capabilities For personal use only IR is the leading global provider of user Prognosis provides best in class experience and performance performance management across management solutions for Unified Unified Communications, Contact Communications, Payments and IT Centres and
Slide 18: Revenue Model by Segment
Revenue Model by Segment For personal use only UC & CC Payments Infrastructure Term Recurring License Fees Term Recurring Term Recurring Perpetual Maintenance Fees Recurring Recurring Recurring SaaS Fees Recurring N/A N/A Testing Solutions Part Recurring N/A N/A Consulting Non-Recurring Term rec
Slide 19: Proforma Subscription Revenue
Proforma Subscription Revenue For personal use only Purpose: To provide an alternate view of underlying performance by restating term licence and maintenance revenues on a recurring subscription basis How: • All licence sales from FY2012 to FY2019 were analysed for each region in their natural curre
Slide 20: Proforma Subscription Revenue A$000
Proforma Subscription Revenue A$000 For personal use only FY17 FY18 FY19 FY17 FY18 FY19 Infrastructure 20,995 19,763 20,050 2% -6% 1% Payments 5,209 6,482 8,235 12% 24% 27% Unified Communications 36,924 40,972 47,851 1% 11% 17% Subscription revenues 63,128 67,216 76,136 2% 6% 13% Perpetual sales 6,4
Slide 21: Proforma Subscription Revenue
Proforma Subscription Revenue For personal use only Key Messages: • Both Payments and Unified Communications business are growing on a subscription revenue equivalent basis • Infrastructure revenue provides a baseline of revenue with minimal growth (as expected) • Above charts exclude all non recurr
Slide 22: Multiple Channels to Market
Multiple Channels to Market Customer “High Touch” Model For personal use only Sales Network Direct: Global coverage with Fortune 500 Distribution: Direct Sales Indirect Sales Service Provider Sales Alliance Partners Distribution Resellers Service Providers Customers 22
Slide 23: Key Technology Partners
Key Technology Partners IR is the only certified vendor to provide proprietary software on all 3 major UC Platforms: Cisco, Skype for Business and Avaya For personal use only Used in Managed Partner Relationship Certification Cloud Service Initiatives • Microsoft certified solution in the Skype for
Slide 24: Prognosis Solution Components
Prognosis Solution Components Insightful & Effective Value & Speed Flexible & Secure For personal use only Proactive end-to-end insights Fast time to value with a Cloud enabled with secure across multi-vendor ecosystems small footprint and rapid access for visibility anytime that drives effective co
Slide 25: Cisco HCS-G (FedRAMP) Questions and Answers
Cisco HCS-G (FedRAMP) Questions and Answers For personal use only Question Answer References: What is FedRAMP? The Federal Risk and Authorization Management Program (FedRAMP) is a government-wide program that provides a standardized approach to security assessment, authorization, and continuous moni
Slide 26: Financial Track Record
Financial Track Record For personal use only Year ending (A$M) Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 10 year CAGR Licence fees 18.4 25.0 28.9 26.6 28.0 41.0 45.7 53.4 52.6 62.8 12% Revenue 38.2 44.6 48.6 48.9 53.2 70.3 84.5 91.2 91.2 100.8 9% EBIT 5.7 9.3 11.1 11.1 10
Slide 27: Investment Summary
Investment Summary Driving sustainable long term performance For personal use only Deep customer and Clear growth strategies Market leading Partnerships with all technology expertise - capability, product proprietary software - three major UC and execution development and Prognosis platforms capabil