Slide 1: Straker Translations FY23 Full Year Presentation
Straker Translations FY23 Full Year Presentation
Slide 2: Market Opportunity Alignment
Market Opportunity Alignment • A top 100 player As an AI language tech pioneer • unique technology and global Straker is very well positioned to be a services reach leading player as AI continues to • Ability to deliver an AI enhanced disrupt the language industry human-in-the-loop platform at scale
Slide 3: FY2023 Highlights
FY2023 Highlights $1m $1.4m 57% Free cash ow in Adjusted EBITDA up Record gross margins H2 FY2023 from $0.2m in 2022 increase of 270 basis $12.5m $2.5m $59.4m Strong cash balance, Revenue up 6% on Reduced H2 Opex added $1.7m of cash FY2022 despite 2nd by $2.5m compared in Q4 half macro-economic to H
Slide 4: Efficiency Improvements
Efficiency Improvements Opex FY23 $10m • Efficiency programs running from Q2 $7.5m • Consolidation of functions through technology $5m • Consolidation benefits as acquisitions are integrated $2.5m $0m Q1 Q2 Q3 Q4 4
Slide 5: Industry Consolidation Underway
Industry Consolidation Underway Top 100 V Rest of Industry 100% 15% 14% 15% 15% 20% 88% 85% 86% 85% 85% 80% 75% 63% 50% 2018 2019 2020 2021 2022 Rest Top100 *Nimdzi Industry Reports 2017-2022 5
Slide 6: How generative AI Is changing the language industry
How generative AI Is changing the language industry Forecast Impact of Generative AI on the industry 2022 2023 Impact ~2,000 billion words/day ~3,000 billion words/day Long term 1 Raw Machine Translation 2% market 2.9% market distruption 2bn words/day 10bn words/day 2 Enhanced Machine Translation Ou
Slide 7: AI Market Opportunity
AI Market Opportuntiy Some predictions are that 90% of online content will It is estimated be produced using only 10% of generative AI by online content is One of our core jobs 2025 translated is to validate the things that Generative AI has potentially machines can’t, 2 3 increased our market using
Slide 8: Organic channels for growth now open
Organic channels for growth now open It has traditionally been That meant we pursued With customers now actively Embedding deeply into difficult to get an acquisition strategy looking for AI driven vertical channels customers to switch to to acquire customers solutions we believe a cost Push into ma
Slide 9: LanguageCloud enterprise grade solution
LanguageCloud enterprise grade solution Easy Secure Powerful - Automation into systems - Closed loop AI enhanced - Scalable - Easy sign up systems - Full power for AI - Workplace apps, no need for - Overarching security layer enhanced human in the another portal - Secure human-in-the-loop loop quali
Slide 10: Proven solution with unique position in key market category as market consolidates
Proven solution with unique position in key market category as market consolidates Market leaders in the Language Cloud category Technology + LSP + AI TMS enhanced + Strategic Revenue vendor + Security + Enterprise customers are looking for: Global Service - a strategic, technology based supplier La
Slide 11: Demo
straker > Demo
Slide 12: Income Statement
Income Statement • 6.3% increase in revenue • 10% growth out of APAC, 19% in EMEA, helped by IDEST acquisition, 6% decline in NAM. • 15% increase in subscription revenue, 5% in language services • Costs (OPEX + COS) growth of 4%, trailed revenue growth of 6% • Signi cant reduction in OPEX in Q4. $5m
Slide 13: Balance Sheet
Balance Sheet • Trade Receivables down 20% re ecting strong cash receipts, but also decline in revenue in H2 due to challenging economic conditions • Working capital decreases 2% to $11.5m • Net Assets decreases 8% to $38.1m, of which 6% is due to increase in contract liabilities • Strong cash balan
Slide 14: Cashflow
Cashflow • Receipts from customers were up 23% to $62.0m re ecting revenue growth and improved collectionsWorking capital decreases 2% to $11.5m • Operating cash in ow of $1.4m vs $2.4m out ow last year • Free cash out ow of $0.9m, but signi cant change in H2 with positive $1.0m in ow • $1.7m paid t
Slide 15: Growth and Profitability Strategy
Growth and Profitability Strategy Maximising the Existing Business Growth Initiatives Focus on Price Alternative Vertical AI validation Slack apps Ef ciency increases models (paas) markets opportunities Winning more Increasing Switch to Teams Corporate Intelligence customer margins LanguageCloud app
Slide 16: Key Takeaways
Key Takeaways Introduction Focus on AI Stable, free- of PaaS base enhanced cash generating in Q1 R&D company Signi cantly Organic over improved Revenue acquisitive operating Growth growth ef ciency Cash generating, stable revenue and investing in new and significant opportunities around generative A
Slide 17: Outlook
Outlook We expect modest revenue growth and to be both cash ow and EBITDA positive for the scal year 2024. 17 fi fl
Slide 18: Q&A
straker > Q&A
Slide 19: Appendix
straker > Appendix
Slide 20: Income Statement
Income Statement • 6.3% increase in revenue • 10% growth out of APAC, 19% in EMEA, helped by IDEST acquisition, 6% decline in NAM. • 15% increase in subscription revenue, 5% in language services • Costs (OPEX + COS) growth of 4%, trailed revenue growth of 6% • Signi cant reduction in OPEX in Q4. $5m
Slide 21: Balance Sheet
Balance Sheet • Trade Receivables down 20% re ecting strong cash receipts, but also decline in revenue in H2 due to challenging economic conditions • Working capital decreases 2% to $11.5m • Net Assets decreases 8% to $38.1m, of which 6% is due to increase in contract liabilities • Strong cash balan
Slide 22: Cashflow
Cashflow • Receipts from customers were up 23% to $62.0m re ecting revenue growth and improved collectionsWorking capital decreases 2% to $11.5m • Operating cash in ow of $1.4m vs $2.4m out ow last year • Free cash out ow of $0.9m, but signi cant change in H2 with positive $1.0m in ow • $1.7m paid t
Slide 23: Disclosure Statement
DISCLOSURE STATEMENT This presentation is given on behalf of Straker Translations Limited ASX:STG (Company number NZ: 1008867 / AU: ARBN 628 707 399) All information in this presentation is current at 31 March 2023, Information in this presentation: unless otherwise stated. • Is for general informat