Ai-media Technologies Limited · ASX:AIM
Ai-media Technologies — H1 FY24 Earnings Presentation
29 slides from Ai-media Technologies's earnings presentation, Feb 26, 2024
Slide 1: H1 FY24 Results
H1 FY24 Results 26 February 2024 AI-Media Technologies Limited (ASX: AIM)
Slide 2: CEO and CFO message
“ AI-Media’s successful deployment of the best AI technologies, seamlessly integrated into customer workflows, is the essence of our vertically integrated ecosystem. H1 FY24 has seen further acceleration by Tony Abrahams Co-founder, CEO & Shareholder (~15%) customers on the transition to AI-powered
Slide 3: AI-Media at a glance
AI-Media at a glance AI-Media is the leading captioning, transcription and translation provider globally, with over 9 million minutes a month1 captured on its iCap network Best-in-class technology, providing the only end-to-end live captioning solution in market, from encrypting source data to encod
Slide 4: H1 FY24 highlights
H1 FY24 highlights Total revenue1 Tech revenue2 LEXI revenue Operating cash flow 10% 38% 54% $3.1m $32.7m $15.6m $5.1m $3.7m (H1FY23: $29.7m) (H1FY23: $11.3m) (H1FY23: $3.3m) (H1FY23: $0.6m) Total gross margin Tech gross profit EBITDA Cash balance3 3% 63% of total $1.9m $11.7m 63% $12.9m 39% $5.3m (
Slide 5: AI-Media update
Al-Media update ~*~ Al MEDIA
Slide 6: AI-Media's unique ecosystem
AI-Media's unique ecosystem Industry leading live captioning platform, providing customers with the only fully integrated solution 1 2 3 4 Video Input Encrypted Encoding Real-time Captioning Captioned Video Output Encoders and iCap network used by both customers and competitors Live or recorded Clou
Slide 7: AI solutions embedded into customer workflows
AI solutions embedded into customer workflows World leading captioning network, infrastructure and solutions ü Offered as cloud software or ü Scalable encrypted cloud-based ü Proprietary speech recognition hardware network with hourly charging solution implemented ü Pairs captions to video sources ü
Slide 8: Blue chip customers and new wins
Blue chip customers and new wins Trusted by global leaders in broadcasting, government and other sectors Select global customers $5.1 million (H1FY23:$3.3m) in LEXI sales, including from:
Slide 9: Sustained growth across iCap and LEXI
Sustained growth across iCap and LEXI Increasing iCap usage provides future conversion opportunity to higher margin LEXI solutions iCap network usage (millions of minutes) LEXI usage (millions of minutes) +19% 56.2 47.2 +46% 41.1 22.9 15.6 7.6 H1FY22 H1FY23 H1FY24 H1FY22 H1FY23 H1FY24 Note: Based on
Slide 10: Rapid increases in AI captioning - LEXI better than humans
Rapid increases in AI captioning - LEXI better than humans Massive improvements in AI has for the first time in H1 FY24 delivered better quality through AI than with humans, 3 seconds faster – and it continues to improve further! Bad quality Good quality LEXI 3.0 Human LEXI 3.0 (6 Months Ago) Captio
Slide 11: H1 FY24 operational updates
H1 FY24 operational updates AIM's growth strategy comprised of four quadrants which will deliver a sustainable and scalable business model Grow LEXI Grow iCap Network Globally • H1 FY24 LEXI usage up 46% on the pcp • H1 FY24 iCap usage up 19% on the pcp • LEXI Revenue up 54% on the pcp • All iCap tr
Slide 12: Further LEXI product development to grow tech revenue
Further LEXI product development to grow tech revenue Enhancement of AI language solutions accelerate cross-sell and up-sell opportunities Commercialisation benefits Larger addressable market Diversified and enhanced product offering expanding the customer base and creating new opportunities for gro
Slide 13: 2024 product roadmap goals
2024 product roadmap goals Strengthening and extending our defensive moat by incorporating the latest advancements in AI and other emerging technologies into a growing toolkit of LEXI solutions with ever wider industry and territory applications Encoding enhancements iCap enhancements LEXI Toolkit e
Slide 14: H1FY24 financials
HIFY24 financials AI MEDIA)
Slide 15: Summary H1FY24 financials
Summary H1FY24 financials Strong results driven by 38% tech revenue growth at margins >80% A$m H1FY24 H1FY23 Variance Growth % Services revenue 17.1 18.4 (1.3) (7%) 38% Tech revenue growth , underpinned by scaling of LEXI Tech revenue 15.6 11.3 4.3 38% solutions. Total revenue 32.7 29.7 3.0 10% Serv
Slide 16: Gross profit composition and margin growth
Gross profit composition and margin growth H1FY24 gross profit margin of 63% - increasing from 60% on the pcp Revenue ($m) Gross Profit ($m) and GP margin (%) Tech Tech GPM increase Services Services reflects scalability of technology 32.0 32.7 60% 63% 29.7 60% 20.5 17.7 19.2 11.3 12.7 15.6 9.6 10.6
Slide 17: Cash flows bridge ($m)
Cash flows bridge ($m) Operating CF=$3.7m 17.0 2.4 0.2 11.7 1.9 (0.8) (0.7) (0.2) (8.1) Cash Blnc. Payments EBITDA Decrease in Increase in Other Other FX Cash Blnc. 1 30-Jun-23 rel. to acq. Trade Rec. Inventory WC mov. non-oper. 31-Dec-23 CF items2 (1) $8.1m final earn-out payment for EEG and ACS ac
Slide 18: Strategy & outlook
Strategy & - outlook “a e ° a Oo @ \ “ |, es ° a : i r a Al MEDIA >>
Slide 19: FY24 growth priorities & outlook
FY24 growth priorities & outlook Grow LEXI Grow iCap Network Globally • Complete transition of Services customers to LEXI • Targeting new territories • Win new customers in established broadcast markets • Expansion into new industries • Introduce LEXI to enterprise customers in new • Improving scala
Slide 20: New product releases extends competitive advantage
New product releases extends competitive advantage Encoding Technology, iCap & LEXI Toolkit present clear differentiation that uniquely positions AIM as the only vertically integrated player in market – creating a compelling long-term value proposition Core business in captioning Media & broadcast C
Slide 21: Q&A
Q&A 21
Slide 22: Additional information
Additional information AI MEDIA)
Slide 23: Profit & loss statement
31-Dec-23 31-Dec-22 Var ($m) ($m) ($m) Revenue 32.7 29.7 3.0 Cost of sales (12.2) (12.0) (0.2) Gross Profit 20.5 17.7 2.8 Other income - 0.5 (0.5) Operating expenses (18.6) (16.8) (1.8) Profit & loss EBITDA 1.9 1.4 0.5 statement Depreciation and amortisation (2.2) (2.4) 0.2 For the half year ended E
Slide 24: Balance sheet
31-Dec-23 30-Jun-23 Var ($m) ($m) ($m) Cash and cash equivalent 11.7 17.0 (5.3) Trade receivables 8.1 10.5 (2.4) Other current assets 3.9 3.4 0.5 Total current assets 23.7 31.0 (7.2) Property, plant and equipment 4.7 4.5 0.2 Intangibles 56.0 59.3 (3.3) Other non-current assets 5.8 6.0 (0.2) Total no
Slide 25: Cash flows
31-Dec-23 31-Dec-22 Var ($m) ($m) ($m) Receipts from customers (incl. of GST) 38.5 33.9 4.7 Payments to suppliers and employees (incl. (34.5) (32.7) (1.8) of GST) Interest received 0.1 0.0 0.1 Interest and other finance costs paid (0.3) (0.2) (0.1) Income taxes paid (0.2) (0.4) 0.2 Net cash from ope
Slide 26: Management
Management Strong and qualified management team to drive product development and commercialisation strategy TONY ABRAHAMS DONNA REID JAMES WARD BILL MCLAUGHLIN JOHN BIRD Co-Founder and CEO Chief Operating Officer Chief Sales Officer Chief Product Officer Chief Financial Officer • Tony co-founded AI-
Slide 27: Board
Board Highly skilled and experienced senior leadership team with decades of experience DEANNE WEIR TONY ABRAHAMS ALISON LOAT JOHN MARTIN CHERYL HAYMAN Non-Executive Chair Co-Founder and CEO Non-Executive Director Non-Executive Director Non-Executive Director • Deanne has served as • Tony co-founded
Slide 28: Disclaimer
Disclaimer This presentation (Presentation) contains summary information about AI-Media Technologies actual results, performance and achievements to differ materially from statements in this Limited and its subsidiaries (the Company or AI-Media) based on information as at 26 February Presentation. F
Slide 29: Further Information: AI-Media Technologies
Further Information: AI-Media Technologies Lisa Jones Company Secretary investorrelations@AI-Media.tv NWR Communications Melanie Singh Investor Relations melanie@nwrcommunications.com.au 29
AI-Media Technologies — H1 FY24 Earnings Presentation on 6ix