Cluey Ltd · ASX:CLU
Cluey — H1 FY2023 Earnings Presentation
22 slides from Cluey's earnings presentation, Feb 28, 2023
Slide 1: H1 FY23 Results
H1 FY23 RESULTS | 28 February 2023
Slide 2: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS CONTINUED REVENUE GROWTH IMPROVING UNIT ECONOMICS PRODUCT & TECHNOLOGY Delivered revenue of $20.8m in H1 Strong unit economics and operating Product & technology driving service FY23 vs $15.8m in H1 FY22 leverage with continued gains to be enhancement and cost reduction. re
Slide 3: H1 FY23 Results
1 H1 FY23 RESULTS
Slide 4: H1 FY23 Cluey Snapshot (Consolidated)
H 1 F Y 2 3 C L U E Y S N A P S H OT ( C O N S O L I D AT E D ) Cluey 1 continues to benefit from the accelerated take-up of online tutoring and outside of school learning support 316,000 +47% Student sessions in H1FY23, Increase in new students up 33% from 237,000 in PCP in H1FY23 (vs. PCP) 3,607 +
Slide 5: Continuing Growth in Key Group Metrics
CONTINUING GROWTH IN KEY GROUP METRICS H1 FY23 student sessions in line with management expectations reflecting Continued emphasis on growing student base and sessions seasonality at the end of the academic year and deliberate reduction in marketing spend Active Students (000’s) 1 Student Sessions (
Slide 6: Strong Growth in Group Financial Performance
STRONG GROWTH IN GROUP FINANCIAL PERFORMANCE Focus on achieving profitability ahead of growth Revenue ($’millions) Gross Profit ($’millions) and Gross Margin (%) 57% 20.8 55% 53% 54% 11.8 52% 18.5 51% 9.6 15.8 40% 8.5 37% FY19 – FY23 CAGR: 226% FY19 – FY23 9.4 CAGR: 366% 5.2 6.4 3.4 14% 3.5 1.8 1.3
Slide 7: Group Variable Customer Acquisition Cost
G R O U P VA R I A B L E C U S T O M E R A C Q U I S I T I O N C O S T ( ‘ C A C ’ ) 1 Variable CAC per new student & payback period (months) CAC # Months Payback $1,600 70 $1,400 $1,371 60 60 $1,200 50 $1,000 45 H1FY23 variable CAC per new $787 40 student improved by 19% on FY22 $800 $600 $563 30 2
Slide 8: Pathway to Profitability, Sessions – Balancing Growth & Unit Economics
PAT H WAY T O P R O F I TA B I L I T Y 6 5 , 0 0 0 S E S S I O N S – B A L A N C I N G T H E KEY PRIORITIES OF GROWTH & IMPROVING UNIT ECONOMICS Cluey Learning sessions required to break -even now reduced to 65,000 as a result of annualised cost savings and contribution from Code Camp. Cluey Learnin
Slide 9: $8.1 Million Cost Savings Identified
$ 8 . 1 M I L L I O N C O S T S AV I N G S I D E N T I F I E D $8.1 million annual cost savings identified. $3.3 million implemented in H1 FY23 and $4.8 million to be implemented in H2 FY23 Summary of FY24 cost savings identified Commentary • A range of initiatives are being implemented to achieve p
Slide 10: Cluey Learning & Code Camp Divisions Are Profitable
C L U E Y L E A R N I N G ( ‘ C L’ ) & C O D E C A M P ( ‘ C C ’ ) D I V I S I O N S A R E P R O F I TA B L E Investment in technology & product driving enhanced service and cost savings Summary consolidated financial results – H1 FY23 Commentary • Each business unit is now profitable at the divisio
Slide 11: Code Camp Demonstrating Strong Growth in FY23
C O D E C A M P D E M O N S T R AT I N G S T R O N G G R O W T H I N F Y 2 3 Integration and synergies with Cluey now delivering strong YoY growth & record performance Code Camp historical profit & loss statement H1 FY23 (Half $ millions FY19 FY20 FY21 FY221 year) Total Revenue 6.6 5.0 4.5 4.4 3.6 C
Slide 12: Code Camp UK Ready for Scale-Up
CODE CAMP UK READY FOR SCALE -UP Successful pilot in the UK shows strong product -market fit and significant growth opportunities UK market • ~17,000 primary schools Pilot - KPI Q3 FY22 Q3 FY232 Growth % • 9.7m students in target age range; £12.5bn spent by parents in the “kids activity” market1 Ven
Slide 13: H2 FY23 Trading Update & Outlook
H 2 F Y 2 3 T R A D I N G U P D AT E & O U T L O O K Focus on reducing costs, improving operating efficiency and service delivery Cluey Learning • A range of operational improvements have been implemented to increase gross profit margin, reduce CAC and operating expenses, and improve service deliver
Slide 14: Catalysts for Growth FY & Beyond
C ATA LY S T S F O R G R O W T H F Y 2 3 & B E Y O N D Balancing the key priorities of growth, improving unit economics and profitability key to driving towards cash break-even Short-term priorities (<12 months) Foundations laid for strong organic growth Scaling the • Continue to efficiently scale t
Slide 15: Appendix
Appendix Business Overview
Slide 16: Overview of Cluey
OVERVIEW OF CLUEY Cluey is on the path to becoming the dominant provider of outside -of-school learning services Core academic support: • Live online 1-to-1 and small group tutoring, mapped to local curriculum • Primarily B2C with some B2B as a government approved provider • Proprietary adaptive lea
Slide 17: Cluey Is a Dominant Player in the Large Learning Services Market
C L U E Y I S A D O M I N A N T P L AY E R I N T H E L A R G E L E A R N I N G S E R V I C E S MARKET Est. Australian & NZ tutoring market opportunity ~4.8 million students ~4 million1 school students in Australia Estimated addressable market2 8% 300k students2 not likely to consider any educational
Slide 18: The Cluey Learning Model
THE CLUEY LEARNING MODEL Cluey ’s integrated tutoring model supports the learning of school students in Years 2 – 12 across Mathematics, English, Chemistry, Physics and Biology. Delivered 1:1 and in small groups Comprehensive learning plan focused Live 1-to-1 or small group learning sessions with on
Slide 19: What Code Camp Does
W H AT C O D E C A M P D O E S Code Camp is a leading provider of holiday and after -school coding and digital skills programs for school children in Australia and the UK. Delivered in -person and online. Teach kids to code Drag and drop ‘block coding’ JavaScript HTML, CSS and jQuery Game design, di
Slide 20: The Cluey Team
THE CLUEY TEAM TREVOR MCDOUGALL MATTEO TRINCA DR SELINA SAMUELS GREG FORDRED Joint CEO Joint CEO Chief Learning Officer Chief Financial Officer Trevor has over 19 years’ experience in senior Matteo has 17 years’ experience in customer Selina has over 27 years’ experience in the Greg is a co-founding
Slide 21: Disclaimer
DISCLAIMER This presentation Non-IFRS financial information • is not an offer, invitation, inducement or recommendation to purchase or subscribe • The Cluey Ltd Group results are prepared under Australian Accounting Standards, and for any securities in Cluey Ltd ("Cluey") or to retain any securities
Slide 22: Contact Us
CLUEY LTD (CLU) CONTACT US Mark Rohald Greg Fordred Deputy Executive Chairman CFO & Company Secretary investor.relations@clueylearning.com investor.relations@clueylearning.com