Xpon Technologies Group Ltd. · ASX:XPN
Xpon Technologies — Q4 FY23 Earnings Presentation
28 slides from Xpon Technologies's earnings presentation, Jul 27, 2023
Slide 1: Q4 FY23 Results Presentation (ASX Announcement)
ASX Announcement 27 July 2023 Q4 FY23 RESULTS PRESENTATION BRISBANE, Australia - XPON Technologies Group Limited (ASX:XPN), (“XPON” or “the Company”) provides its Q4 FY23 Results Presentation for release to the market. This announcement was authorised for release by the Board of Directors of XPON Te
Slide 2: Q4 FY23 results presentation
XPON Technologies Group Limited Q4 FY23 results presentation 27 July 2023
Slide 3: Disclaimer
Disclaimer This Presentation and has been prepared by XPON Technologies Group Limited ACN Certain statements in this Presentation, particularly those regarding possible or assumed 635 810 258 (XPON or the Company). Shares in the Company are listed on ASX (ASX future performance, potential business g
Slide 4: Agenda
Agenda ■ Company overview ■ FY23 & Q4 FY23 financial highlights ■ Q4 FY23: business highlights ■ Outlook and priorities ■ Appendices © 2023 XPON Technologies Group Limited POWERED EXPONENTIALLY | 3
Slide 5: XPON is a marketing technology company
XPON is a marketing technology company. Our mission is to modernise marketing and customer experience. © 2023 XPON Technologies Group Limited POWERED EXPONENTIALLY | 4
Slide 6: XPON's products and services create a better ROI for businesses
Improving targeting and XPON’s products measurement to increase and services create marketing effectiveness a better ROI for businesses by: Using data and technology to deliver more personalised and profitable customer experiences(CX) © 2023 XPON Technologies Group Limited POWERED EXPONENTIALLY | 5
Slide 7: Businesses face increasing complexity in achieving marketing ROI
Businesses face increasing complexity in achieving marketing ROI due to: Privacy Technology Regulations Disruption Increased government Need to accelerate regulations, third-party adoption of new cookies phasing out and technologies including first-party data rising in cloud, AI and machine prominen
Slide 8: How we help customers improve their marketing ROI
How we help customers improve their marketing ROI 1 2 Understand and simplify Leverage and centralise the technology mix first-party data Secure / private 3 Use enriched data to 4 power, measure and Enrich data to make it more optimise marketing and valuable with Machine customer experience (CX) Lea
Slide 9: Our products are supported by services
Our products Products Services are supported XPON’s cloud-based platform that Project services Consulting to help centralises customer data, enriches it with by services to Machine Learning (ML) and AI, and allows rapid and simple activation of more businesses use our technology products, including
Slide 10: Client snapshot
Client snapshot Businesses like these partner with us to achieve better marketing and customer experience ROI. Currently 53 recurring and 38 non recurring customers*. Financial Media & Retail & travel Non-profit Education Other services entertainment *Excludes 112 phased out small business customers
Slide 11: Example Marketing client
Example Marketing client Products: Licence / usage fees (recurring revenue) Marketing Technology creates AI and Machine Learning Expand Expand Expand Expand Marketing and Customer Marketing Measurement Single customer view more personalised digital enrich the data for better Experience audit / Impro
Slide 12: Example Customer Experience client
Example Customer Experience client The client, a global business of trusted brands in specialist markets across more than 30 countries, engaged XPON to plan, design, and develop a centralised video content application to acquire customers and grow revenue from content subscriptions. Solution compone
Slide 13: FY23 & Q4 FY23 financial highlights
FY23 & Q4 FY23 financial highlights
Slide 14: Key financial metrics
Key financial metrics 1,4 % 22% $ $ 4ppt 15.1m 13 % FY23 REVENUE 10.4m GROSS PROFIT 69 GROSS PROFIT MARGIN % 36% 35 $ 0ppt Q4 FY23 $ 2.4m REVENUE 1.6m GROSS PROFIT 66 % GROSS PROFIT MARGIN $ $ (0.8)m 6 qtrs 2 3 3 4.4m CASH NORMALISED NET OPERATING NORMALISED QUARTERS OF Note: CASH FLOW FUNDING AVAIL
Slide 15: Q4 FY23: Business highlights
Q4 FY23: Business highlights ■ Implemented more streamlined organisational structure to drive towards profitability and realign the cost base to market conditions ● estimated annualised cost savings of at least $3m ● $0.7m¹ in one-off restructuring costs ■ Landed 5 new customers and expanded 7 exist
Slide 16: App modernisation revenue
App modernisation revenue App modernisation projects help our customers migrate from legacy applications onto cloud-based, scalable platforms which allow them to leverage AI and Machine Learning (ML) capabilities of today’s App modernisation will continue to be a driver of our Customer marketing tec
Slide 17: Revenue mix update
Revenue mix update1,2 Proforma impact of reclassification of non-recurring app modernisation revenue for FY23: Revenue by type Recurring vs. non-recurring revenue FY23 Reported FY23 Proforma 1% Recurring Non-recurring Recurring Non-recurring Note: 1. Adjusted revenue classification methodology to co
Slide 18: Q4 FY23 Business metrics
Q4 FY23 Business metrics 1,2 Average monthly Annualised recurring Customer acquisition revenue per customer revenue (ARR) (CAC) 9% 41% $14.8k 109% $9.4m $95k Lifetime Value per Average monthly CAC payback customer 100% 8 months 3% customer retention rate 99.4% 0% $1.7m Revenue per FTE³ 62% $179k Not
Slide 19: Growth pillars
Growth pillars Strengthen Expand value Leverage sales & Expand channel Extend Wondaris existing solutions, creation, product marketing relationships platform may include adoption from capacity ecosystem strategic existing acquisitions customers © 2023 XPON Technologies Group Limited POWERED EXPONENT
Slide 20: Outlook and priorities FY24
Outlook and priorities FY24 XPON priorities for ■ On target to achieve cash flow break-even in FY24 sustainable growth in ● recurring revenue and non-recurring project services revenue to FY24: drive outcome ■ Focussed cost management to maintain alignment with market conditions and drive towards pr
Slide 21: Appendices
Appendices POWERED EXPONENTIALLY
Slide 22: Appendix 1: Leadership Team
Appendix 1: Leadership Team Phillip Aris, Tim Ebbeck, Jodie Leonard, Matt Forman, Non Executive Non Executive Non Executive Founder, Managing Chairman Director Director Director & Group CEO BOARD BOARD BOARD BOARD + EXEC Lisa Young, Jennifer Killian, Chris Rozic, Ben Fogarty, Matt Daniels, Group CFO
Slide 23: Team footprint
Team footprint XPON’s restructured business, following operational review United Kingdom Team breakdown 1 Vietnam Australia New Zealand Note: As at 30 June 2023, excludes on-demand contractors. © 2023 XPON Technologies Group Limited POWERED EXPONENTIALLY | 22
Slide 24: Wondaris
Wondaris Centralised data from any of the Enriched with ML and AI, data insights High-value audiences are activated easily public cloud vendors, including GCP, managed with ISO-certified standards to through automated workflows, to deliver AWS, Azure and Snowflake, either via deliver a privacy-safe,
Slide 25: Holoscribe
Holoscribe ■ Content creators and collaborators rapidly and easily publish rich extended reality (XR) and 360 experiences to any channel via web interface ■ Polls, quizzes and engagement tools offer consumers personalised experiences and create actionable insights on segmentation ■ Native integratio
Slide 26: Revenue segmentation
Revenue segmentation1,2 FY21 FY22 FY23 Revenue (Full Year) (Full Year) +/- (Full Year) H1 FY22 +/- H2 FY22 +/- H1 FY23 +/- H2 FY23 +/- Licences $2,114 $3,765 78% $5,556 48% $1,776 N/A $1,989 12% $2,776 40% $2,780 0% App Mod revenue Managed Services $2,533 $7,183 184% $7,903 10% $3,086 N/A $4,097 33%
Slide 27: Appendix 2: Glossary
Appendix 2: Glossary Annualised Recurring Revenue (ARR): represents monthly contracted recurring revenue Customer Acquisition Costs (CAC): calculated by total customer acquisition costs multiplied by 12. An annualised measure of the revenue that XPON expects to earn from its spent on acquiring custo
Slide 28: Contact
Contact For investors: investors@xpon.ai For media: marketing@xpon.ai
Xpon Technologies Group — Q4 FY23 Earnings Presentation on 6ix