Slide 1: QuickFee H1 FY24 Results Presentation
QUICKFEE H1 FY24 RESULTS PRESENTATION 22 February 2024 President, North America, Jennifer Warawa Chief Financial Officer, Simon Yeandle
Slide 2: Positive momentum across all key metrics
Positive momentum across all key metrics H1 FY24 Key Highlights • Group revenue up 35% on pcp to A$9.3m driven by: Financial Performance AU Finance (Pay Over Time) revenue up 57% on pcp A$’M H1 FY24 H1 FY23 %+/- US Finance (Pay Over Time) revenue up 58% on pcp AU Finance (Pay Over Time) revenue
Slide 3: Steady growth in Finance (Pay Over Time) product
Steady growth in Finance (Pay Over Time) product US Finance 'Last 12 Months' rolling TTV (US$M) Key differentiator in competitive payments 24.4 market 22.0 20.9 19.3 + Revenue yields on the Finance product are 18.7 16.5 16.8 17.8 approximately 25x those of Pay Now 15.4 14.7 + Finance revenue now at
Slide 4: QuickFee Finance – two levers for growth
QuickFee Finance – two levers for growth AU Finance TTV AU Finance AU Finance revenue A$M revenue yield A$M Revenue growth driven by both volume & yield 0.8 + In both markets, revenue growth has come 0.5 from both TTV growth and yield Yield 14.2% improvements 25.4 TTV 20.6 11.3% H1 FY23 2.3 + Yield
Slide 5: Strong revenue growth expected to continue
Strong revenue growth expected to continue Group Revenue by Half Year (A$M) 9.3 Group Revenue by Quarter (A$M) 5.1 7.9 4.3 4.2 6.9 3.5 3.7 3.6 6.1 3.2 2.5 2.6 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 H2 FY22 H1 FY23 H2 FY23 H1 FY24 Seasonality + Revenue stronger in Q2
Slide 6: Improving underlying profitability
Improving underlying profitability EBTDA (‘Adjusted EBITDA’) Steady underlying cost base by Half Year (A$M) Operating expenses by Half Year (A$M) + Underlying operating expenses reduced in H1 FY24 vs H1 FY23, as the adjusted EBITDA -2.7 -2.7 0.5 loss of $2.7 million includes $0.5m of non- -3.8 recur
Slide 7: What We Do
WHAT WE DO
Slide 8: The QuickFee Platform
The QuickFee Platform QuickFee offers multiple easy ways for clients to pay the firm. The firm is paid upfront within three business days – boosting cash flow and reducing ageing A/R. PAY NOW PAY OVER TIME CONNECT (US only) EFT/ACH + CARD FINANCE INTEGRATION + AUTOMATION Traditional method of paymen
Slide 9: Where We Play: Our Target Customers
Where We Play: Our Target Customers Focus segment: + Professional services with a business-to-business (B2B) focused customer base Primary verticals: + Accounting and Legal, or solution providers to accounting or legal (for example: accounting software or CPA State Society) Secondary verticals: + Re
Slide 10: Well Positioned for Growth in the US Market
WELL POSITIONED FOR GROWTH IN THE US MARKET
Slide 11: Refined growth strategy delivering early results
Refined growth strategy delivering early results New Firm Signups Average Annual Revenue per New Firm Signup US$M Commercial strategies implemented are taking effect and showing early signs of success +12% +67% + Launch of new commission plans that incentivise finance volume 68 76 6 10 + Implementat
Slide 12: Tracking towards profitability in the US
Tracking towards profitability in the US US Financial Performance + Strong revenue growth: US Revenue up 24%, driven by 58% growth in A$’M H1 FY24 H1 FY23 %+/- US Finance (Pay Over Time) revenue to A$1.9 million and 18% growth in Pay Over Time (Finance) revenue 1.9 1.2 +58% Pay Now revenue to A$3.3
Slide 13: FY24 US strategic priorities
FY24 US strategic priorities 1. Deliver a scalable commercial foundation that strengthens pipeline, increases win rate, accelerates time to value, and increases revenue per customer + Maximise customer value through a unifying consultative selling and onboarding process that accelerates digital paym
Slide 14: Australia: A Return to Strong Lending Activity
AUSTRALIA: A RETURN TO STRONG LENDING ACTIVITY
Slide 15: Australia – Long Established and Sustainable
Australia – Long Established and Sustainable QuickFee well established as a market leader, operating beside two main competitors, FeeSynergy and SmartAR QuickFee has approximately 40% of the AU market for fee funding AU is profitable and economic conditions are driving increasing demand Revenue and
Slide 16: AU Profit and Loss
AU Profit and Loss Strong revenue growth and profitable AU Financial Performance operations in a mature market A$’M H1 FY24 H1 FY23 %+/- Pay Over Time (Finance) revenue 3.6 2.3 +57% + Strong revenue growth: AU revenue up 52% to $4.1 million, driven by Pay Now (EFT + Card) revenue 0.5 0.4 +25% a 57%
Slide 17: H1 FY24 Financial Highlights
H1 FY24 FINANCIAL HIGHLIGHTS
Slide 18: Group profit and loss
Group profit and loss + Strong revenue growth: Total revenue up 35% to A$9.3 million, primarily due A#039;M H1 FY24 H1 FY23 $+/- %+/- to strong growth in the higher margin Finance products in AU and US Interest revenue** 5.1 3.3 +1.8 +55% Revenue from contracts with customers 4.2 3.6 +0.6 +17% + Partia
Slide 19: Group balance sheet
Group balance sheet 31 December 30 June A#039;M 2023 2023 $+/- %+/- Cash and cash equivalents 3.9 3.4 0.5 +15% + Strong loan book growth: AU loan book up 6% to A$33 million Loan receivables (current) 46.5 42.2 4.3 +10% and US loan book up 26% to US$10.2 million Trade and other current assets 1.0 1.2 (0
Slide 20: Group cash flow
Group cash flow Reconciliation from loss for the period to operating cash flow H1 H1 H1 H1 A$’M $+/- %+/- A$’M $+/- %+/- FY24 FY23 FY24 FY23 Net cash outflow from operating activities (2.9) (4.8) 1.9 40% Loss for the period (3.4) (4.4) 1.0 23% Net cash outflow from loan book / firm funding (6.3) (4.
Slide 21: Liquidity
Liquidity Credit facilities Loan book & Liquidity 31 December 30 June Northleaf credit facility A$’M 2023 2023 $+/- + US$40 million (A$58.5 million) facility + Currently drawn to US$8 million + A$28 million (A$39.7 Loan book 47.8 43.2 +4.6 million in total) Cash and cash equivalents 3.9 3.4 +0.5 + I
Slide 22: H2 Outlook
H2 OUTLOOK
Slide 23: H2 FY24 Outlook | Well positioned for growth
H2 FY24 Outlook | Well positioned for growth Growth in both the US and Australia expected to continue Experienced management team to execute on US growth strategy We expect H2 FY24 to exceed H1 FY24 revenue and EBITDA, as we track towards operating profitability within existing cash and borrowing fa
Slide 24: You're invited
You’re invited Investor day webinar 9am AEDT, 21 March 2024 What you can expect to learn… + QuickFee’s three-year growth ambition + Presentations by the US management team: + Jennifer Warawa, President QuickFee North America + Chris Smith, Vice President /Growth and Customer Success + Dave Moore, Ch
Slide 25: Questions
QUESTIONS
Slide 26: 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 27: 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 28: Appendix
APPENDIX
Slide 29: US profit and loss (detail)
US profit and loss (detail) US business tracking towards profitability A#039;M H1 FY24 H1 FY23 $+/- %+/- Interest revenue** 1.8 1.2 0.6 +50% + Total revenue (interest revenue + revenue from contracts) up Revenue from contracts with customers 3.4 3.0 0.4 +13% 24% to A$5.1 million Gross revenue 5.2 4.2 0
Slide 30: AU profit and loss (detail)
AU profit and loss (detail) Strong growth and profitable operations in A#039;M H1 FY24 H1 FY23 $+/- %+/- a mature market Interest revenue** 3.3 2.1 1.2 +57% Revenue from contracts with customers 0.8 0.6 0.2 +33% + Total revenue (interest revenue + revenue from contracts) up Gross revenue 4.1 2.7 1.4 +5
Slide 31: Historical metrics - US
Historical metrics - US FY21 FY22 FY23 FY24 Total Transaction Volumes (TTV) Q1 Q2 H1 Q3 Q4 H2 FY21 Q1 Q2 H1 Q3 Q4 H2 FY22 Q1 Q2 H1 Q3 Q4 H2 FY23 Q1 Q2 H1 Professional Services US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M Pay
Slide 32: US product profitability
US product profitability ACH Card Financing BNPL Total US$000s except volume H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 Volume US$ M 517 452 109 96 13.6 10.1 1.2 1.2 639.6 559.3 Financing revenue (interest) - - - - 1,131 715 - 90 1,131 805 Payments and other reve
Slide 33: Historical metrics - AU
Historical metrics - AU FY21 FY22 FY23 FY24 Total Transaction Volumes (TTV) Q1 Q2 H1 Q3 Q4 H2 FY21 Q1 Q2 H1 Q3 Q4 H2 FY22 Q1 Q2 H1 Q3 Q4 H2 FY23 Q1 Q2 H1 Professional Services A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M Pay Now EFT 3.5 3.5 7.0 2.8
Slide 34: AU product profitability
AU product profitability EFT & card Financing BNPL Total A$000s except volume H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 Volume A$ M 37 29 25.4 20.6 1.4 0.8 638 50.4 Financing revenue (interest) - - 3,262 2,089 67 29 3,329 2,118 Payments and other revenue 409 353 345 239 5 780 5
Slide 35: 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