Slide 1: Specialists in Data Platforms – Preliminary results
Specialists in Data Platforms Preliminary results For the 12 months ended 31 March 2021
Slide 2: Disclaimer
Disclaimer 2 This presentation and associated materials have been prepared by and are the sole responsibility of the group. The directors of the group have taken all reasonable care to ensure that the facts stated herein are true to the best of their knowledge, information and belief. This document
Slide 3: About D4t4 Solutions
About D4t4 Solutions 3 BLISH TA ED ES 1985 World class, patented, real-time, enterprise Customer Data Platform, Global Fraud Data Platform and Customer sales and delivery in 27 countries Data Management software Listed on the Recurring revenue 2020/21 London Stock 47% of sales (2020: 45%) Exchange C
Slide 4: D4t4 Solutions is a specialist in Data Platforms
D4t4 Solutions is a specialist in Data Platforms 4 that large enterprises need to complete digital transformation Web Mobile ATM Card Reader Internet of Things DATA PLATFORMS Internal data External data CUSTOMER DATA PLATFORM FRAUD DATA PLATFORM CUSTOMER DATA MANAGEMENT Data Science & Marketing & Fr
Slide 5: Delivery on strategic objectives
Delivery on strategic objectives 5 £ Increased revenues from Transitioning to Annual Celebrus family of products Recurring Revenue model £ International expansion Invested in the next generation of Celebrus products © D4t4 Solutions plc © D4t4 Solutions plc
Slide 6: Operational highlights
Operational highlights 6 • New customer contracts from UK, Europe, Middle East, North America and Pacific Rim, in financial services, health, telecommunications and consumer organisations • Extended existing client relationships with increased capacity, geographic extensions, additional digital coll
Slide 7: Financial highlights
Financial highlights 7 • Revenues up 4.6% to £22.8m (2020: £21.8m) – reflects the move to term / recurring revenue from perpetual licences and resumes top line growth • Annual recurring revenue (ARR) up 11% to £10.6m (2020: £9.55m) • Recurring revenue, as percentage of total revenue, increased to 47
Slide 8: Financial Information
8 Financial Information © D4t4 Solutions plc
Slide 9: Financial headlines - Income
Financial headlines - Income 9 Revenue ARR Gross profit margin Adjusted Profit before Tax £22.8m £10.6m 62.4% £4.5m +4.6% +11.0% 2021 22.8 2021 10.6 2021 62.4 2021 4.5 2020 21.8 2020 9.55 2020 60.8 2020 5.1 2019 25.3 2019 7.57 2019 56.6 2019 6 Revenue from sales made to all Annual recurring revenue
Slide 10: ARR at year-end
ARR at year-end 10 Delivery services Circa £1.05m growth £0.7m driven by 11% increase 2021 in support and annual 2020 term licence sales Products 2019 Support & maintenance rather than perpetual. Own IP £3.0m Support & maintenance 2018 This is a key KPI for the £6.9m Group and will include 2017 2000
Slide 11: Income statement
Income statement 11 2021 2020 • Sales up 4.6% and 8.6% on a constant currency basis £'M £'M Products - Own IP 9.0 7.7 • Margin continues to improve due to product mix Products 3rd party 4.4 4.4 Delivery services 2.9 3.6 • Own IP & Support/Services 81% of sales this year Support & maintenance 6.5 6.1
Slide 12: Analysis of administration expenses variance year on year
Analysis of administration expenses variance year on year 12 Admininstration Costs FY21 12,000 193 11,244 362 11,000 746 10,000 200 200 1,200 9,000 8,343 8,000 7,000 6,000 5,000 4,000 FY20 Additional staff, Directors Share based FX losses FX losses - Other costs FY21 salaries & FDP payment comparati
Slide 13: Financial headlines
Financial headlines 13 Revenue (Constant Currency Adjusted diluted EPS Net cash from operations Total assets Basis) 8.3% 9.5p 37.5% 7.7% 2021 23.6m 2021 9.5p 2021 3.3m 2021 41.9m 2020 21.8m 2020 11.1p 2020 2.4m 2020 38.9m Currency revenue from sales made to all As the Group transitions to recurring
Slide 14: Financial position
Financial position 14 • Strong Financial Position 2021 2020 Financial Position £'M £'M • £0.2m of development costs capitalised, similar to last Non-current assets 13.7 14.0 year Receivables 13.8 10.8 Inventory 0.1 1.3 • £10.1m Trade receivables due to high level of invoicing Cash 14.2 12.8 in Q4 an
Slide 15: Cashflow
Cashflow 15 • Net Cash +£1.4m to £14.2m 2021 2020 Cash Flow £'M £'M • Tax refund following overpayments, R&D and Patent Opening Cash 12.8 11.0 Box claims Operating Cash before WC 4.0 5.6 • Financing costs reflect net purchases of own shares £0.4m WC movements (0.8) (2.5) compared to net receipt of £
Slide 16: Financial summary
Financial summary 16 • Fundamentals of the business remain strong • Innovation remains core as shown by the launch of version 9.2,9.3 of Celebrus and after year end 9.4. In addition, new FDP product in June 21 • Additional opex due to additional staff, salary increases to ensure retention and FDP ex
Slide 17: Our business
17 Our business © D4t4 Solutions plc
Slide 18: Product family
18 CUSTOMER DATA PLATFORM FRAUD DATA PLATFORM CUSTOMER DATA MANAGEMENT Connect instantly with Catch the fraudster before Turn your raw data into customers, as if you’re the fraud actionable insights selling face-to-face Product family includes • Real time data collection • Real time fraud detection
Slide 19: Strategic direction
Strategic direction 19 • Transition revenues to a recurring revenue model by 2023-24 • Expand sales reach by increasing global enterprise partnerships • Continued investment for growth • Increase direct sales capability for CDP, CDM and FDP • Extend data capture product family capabilities to includ
Slide 20: CDP and FDP market growth opportunity
CDP and FDP market growth opportunity 20 • Large and growing market of fraud protection software, estimated to be worth currently $18+ billion per annum • Financial services is currently still the largest single market for CDP software • Fraud detection market set to grow at 12.8% per annum through
Slide 21: New product - FDP
New product - FDP 21 • FDP is expected to drive modest initial recurring revenues in the first year of launch (FY22) • As well as the initial £1.5m investment in FDP (the vast majority of which has been expensed in prior years) the launch will incur additional expenditure in the current financial ye
Slide 22: The data challenge
22 The data challenge © D4t4 Solutions plc
Slide 23: New Product - FDP / Data Difficulties Spell Trouble For Firms
New Product - FDP 23 Data Difficulties Spell 82% • FDP is expected to drive modest initial recurring revenues in the first year of launch (FY22)BUT Trouble For Firms of respondents say • As well as the initial £1.5m investment in FDP (the vasttheir expensed in prior years) the launch will incur sign
Slide 24: Firms Struggle With Data At Nearly Every Stage
The data challenge 24 Firms Struggle With Data At Nearly Every Stage “How challenging are the following tasks for your organisation?” Very challenging Challenging Gathering real-time data to deliver insights about customer behavior 30% 40% Providing analysts access to real-time customer behavior dat
Slide 25: The challenge ahead
Identity in the industry 25 The challenge ahead The ability to manage identity and build complete, consumer profiles in a compliant manner is a challenge for 3rd party solutions Apple Intelligent Tracking Prevention (ITP), browser limitations, and ongoing legislation renders 3rd party solutions inca
Slide 26: Compliance
Compliance 26 Privacy regulations PIPEDA GDPR HIPPA Chinese Cybersecurity Law CalOPPA Indian Information Technology State Acts 2000 and 2011 level APP LGPD PoPI New Zealand Privacy Act 1993 Privacy continues to evolve each day, and while consumers demand a personalised experience, they also expect t
Slide 27: Creating moments / Engagement breadth
Activation 27 Creating moments Moments Moments-based marketing is a consumer • Individual expectation of brands when those • Real-time • Predictive consumers opt in to sharing their information. Engagement breadth Context • Microtargeting These moments must be individual, • Triggered real-time, and
Slide 28: Behavioural biometrics and PII are critical to fraud detection
Behavioural biometrics and PII 28 are critical to unlocking fraud detection and preventions Once a Fraud Threat is developed, losses are realised quickly Fraud Management Platforms in the market today lack the density of data in real-time to catch the fraudster before the fraud. This is the core opp
Slide 29: Identity graph
Identity graph 29 Many IDs, many sessions – available in milliseconds and 100% compliant Celebrus Identity Graph Celebrus Identifiers System ID Web Mobile Loyalty 1 Email … cookie cookie ID Session 1 Session 2 Session 3 Session 4 Signals, Journey, Signals, Journey, Signals, Journey, Signals, Journey
Slide 30: Compliance: 1st party data control
Compliance 30 1st Party data control Apps Web Internet of Things 3rd Party Subset of data Solutions External 3rd party Internal 1st party Full data model Data Warehouse (Single Source of Truth) Subset of data Other 1st Party Systems Celebrus Data Model Identity Graph & Profiles © D4t4 Solutions plc
Slide 31: Celebrus FDP Capture & Biometrics
Celebrus FDP Capture & Biometrics 31 Catch the fraudster before the fraud TYPING PATTERNS SHORTCUTS PASTING LEFT/RIGHT HANDED DATA GESTURES TOUCH PRESSURE BEHAVIOURAL BEHAVIOURAL MEMORY / RESPONSE TIME BIOMETRICS ANALYTICS RECALL FINGER Compare user Compare user NAVIGATION SIZE ORIENTATION TYPING in
Slide 32: Outlook
Outlook 32 • Our strategic focus continues to pay off with good growth in the business and significant progress in the transition to ARR • We continue to lead our technology segment, through innovation and customer and partner led development • We are expanding geographically and are working to deve