Integrated Research Limited · ASX:IRI
Integrated Research — Investor Presentation (February 2025)
28 slides from Integrated Research's investor presentation, Feb 20, 2025
Slide 1: Market Announcement: Investor Presentation
Integrated Research Ltd > ABN 76 003 588 449 Suite 9.03, Level 9, 420 George Street, Sydney NSW 2000 Australia t: +61 (2) 9966 1066 e: InfoAP@ir.com Market Announcement Investor Presentation Sydney, 20 February 2025 – Further to Integrated Research Limited’s (Company, IR) (ASX:IRI) announcement to t
Slide 2: FY2025 Half-Year Financial Results
Integrated Research Limited (ASX:IRI) FY2025 Half-Year Financial Results 20 February 2025 Ian Lowe, CEO Christian Shaw, CFO 1
Slide 3: IR provides Observability: Deeper insight. Better experiences.
IR provides Observability... Deeper insight. Better experiences. Discover better. Powered by Prognosis Optimise Reduce business-critical technology downtime and outages Our technology harvests and analyses real time Monitor Turn big data into data to help large performance in real time intelligent i
Slide 4: Trusted by the world's leading organisations
Trusted by the world's leading organisations 3
Slide 5: Strategy Reset
Strategy Reset IR has come from... • Revenue performance reliant on contract renewals, which are lumpy • Revenue contribution from new business has been inconsistent and insufficient to offset reliance on renewals • Limited investment in building new products that will support growth in new business
Slide 6: Summary of 1H FY25 Results
Summary of 1H FY25 Results • Growth in new business revenue – $7.6m up by 76% versus PCP (prior corresponding period) - points to progress against strategic objective to accelerate new business growth • Softer 1H TCV/statutory revenue - reflects softer 1H renewal book. TCV $26.5m - down 36% versus P
Slide 7: New Product Release: High Value Payments - major US bank signed
New Product Release: High Value Payments - major US bank signed Client: US Bank • IR's High Value 5-year term/new client Payments product 10.4 million transactions per month reduces compliance, liquidity and Solution: High Value Payments (Transact) commercial risk for What are high value payments? A
Slide 8: Financials
Financials
Slide 9: Total Contract Value (TCV)
TOTAL CONTRACT VALUE (TCV) Softer renewals book in 1H25; solid new business growth 1H25 TCV $26.5m (-36%) ▪ TCV is the total value of client contracts secured in any given period ▪ 1H25 TCV softer driven by FY25 renewals book ▪ New business (new clients and upsell to existing clients) at $7.6m up 76
Slide 10: Statutory Revenue
STATUTORY REVENUE Statutory revenue aligned to TCV 1H25 Statutory Revenue $28.8m (-29%) ▪ Under Statutory Revenue, the licence component of a contract is recognised up- front, rather than over the life of the contract ▪ Statutory Revenue tracks Total Contract Value, and can be lumpy ▪ Softer 1H Stat
Slide 11: Pro Forma Revenue
PRO FORMA REVENUE A$M 1H25 Pro forma Revenue 37.3 36.6 $36.6m (-2%) 4.4 4.2 ▪ Pro forma Revenue apportions upfront licence fee revenue evenly over the life of the contract. ▪ Pro forma Revenue remains steady at $36.6m or 2% lower versus PCP 32.9 32.4 ▪ 89% is secured via term based contracts ▪ No ma
Slide 12: Pro Forma Revenue by territory
PRO FORMA REVENUE by territory New business growth in Americas and APAC Americas stable APAC up 1% Europe down 16% 3.7m 25.0m 7.9m Americas APAC Europe ▪ Americas stable against PCP ▪ APAC up 1% up on PCP ▪ Europe down 16% on PCP ▪ Strong new business sales including ▪ Strong new business sales incl
Slide 13: Pro Forma Revenue by product (excl services)
PRO FORMA REVENUE by product (excl services) Collaborate down 10% Transact up 10% Infrastructure up 6% 9.9m 15.7m 6.8m Collaborate Transact Infrastructure ▪ Collaborate down 10% vs PCP ▪ Transact growth vs PCP driven by ▪ Infrastructure growth vs PCP new business (new clients and largely driven by u
Slide 14: EBITDA
EBITDA Operating profit, aided by strong cost management and other gains 1H25 EBITDA $4.6m (-58%) ▪ EBITDA performance reflective of softer 1H revenue ▪ Largely fixed cost base sees the business well In thousands of AUD 1H25 1H24 Change % positioned to benefit from operating leverage over the medium
Slide 15: Pro Forma EBITDA
PRO FORMA EBITDA Growth reflects uplift from other gains 1H25 Pro forma EBITDA A$M $11.8m (+53%) ▪ Pro forma EBITDA takes pro forma revenue and deducts expenses after adjusting commission costs 1.2 0.2 (0.8) for timing differences, to ensure revenues and 11.8 3.5 expenses are matched to the correct
Slide 16: Net Cash
NET CASH Benefit of exchange rate movements and gain on asset sale A$M 1H25 Net Cash $31.1m (-3%) 28.3 (25.7) ▪ Cash flow from operations of $0.5m o Customer receipts lower due to soft renewals book and timing o Supplier and employee 31.9 1.6 1.7 31.1 payments includes $1.3m of (1.3) (0.8) (1.1) non
Slide 17: Balance Sheet
BALANCE SHEET Strong capital management discipline maintained Period Ended (as at) Dec 24 Jun 24 YoY A$M A$M Cash and cash equivalents 31.1 31.9 (3%) Trade and other receivables 77.4 73.5 5% ▪ Strong balance sheet with cash of Right-of-use assets 1.9 2.5 (26%) $31.1m and no debt All other assets 7.8
Slide 18: Priorities
Priorities
Slide 19: Strategy Reset
Strategy Reset IR has come from... • Revenue performance reliant on contract renewals, which are lumpy • Revenue contribution from new business has been inconsistent and insufficient to offset reliance on renewals • Limited investment in building new products that will support growth in new business
Slide 20: Disclaimer
Disclaimer SUMMARY INFORMATION FORWARD LOOKING STATEMENTS NOT AN OFFER This document and the associated transcript (together “the presentation”) has The presentation contains certain "forward-looking statements”. The words The presentation is for information purposes only and is not a prospectus, be
Slide 21: Appendix
Appendix
Slide 22: EBITDA Cash Flow Bridge
EBITDA CASH FLOW BRIDGE Timing differences increased receivables and reduced operating cash flow ▪ 1H25 Pro forma EBITDA exceeded EBITDA by $7.1m, reflecting Pro forma revenue differential, with A$M minor cost adjustments ▪ Cash flow from Operations reduced by an increase in net working capital 7.1
Slide 23: Operating Costs
Operating Costs – A$M Disciplined cost management continues - total costs down 3% Total expenditure Product and Technology 30 25 • Product and Technology reflects a 25 28.5 27.6 20 balanced and disciplined 20 approach to innovation 15 15 investments aligned to value 10 drivers, including ‘IR Labs’ 1
Slide 24: Pro forma Summary Breakdown
Pro forma Summary Breakdown By Product By Geography • Pro forma revenue steady 11% 11% • Transact and 12% 10% Infrastructure product 25% 27% 21% 22% lines are growing mainly from upselling to existing 17% 19% clients and new business 67% 68% in Transact 47% 43% • Collaborate continues to decline ove
Slide 25: 1H25 pro forma recurring revenue
1H25 pro forma recurring revenue Reconciliation of statutory to pro forma revenue Interim revenue 1H22 1H23 1H24 1H25 1H22 1H23 1H24 1H25 A$M A$M A$M A$M Infrastructure 9.1 9.4 9.3 9.9 (7%) 4% 0% 6% Transact 5.3 5.5 6.2 6.8 7% 3% 12% 10% Collaborate 20.1 19.2 17.3 15.7 (9%) (4%) (10%) (10%) Pro form
Slide 26: Annual Recurring Revenue - Analysis
Annual Recurring Revenue - Analysis APAC Americas Europe Consolidated All Products AUD USD GBP AUD Growth • Collaborate showed Opening ARR 14.3 29.5 4.1 66.6 improvement in new logos, FX gain/(loss) 1.1 1.6% however headwinds persisted New logos 0.7 0.3 0.0 1.2 1.7% with losses exceeding wins Upsell
Slide 27: Reconciliation of Revenue and Pro forma Revenue, NPAT to EBITDA
Reconciliation of Revenue and Pro forma Revenue, and Net Profit After Tax (NPAT) to EBITDA and Pro forma EBITDA In thousands of AUD 1H25 1H24 Revenue 28,839 40,844 Term l i cens e fees recogni s ed upfront -17,239 -28,246 Amortis ed l i cens e fees 24,960 24,716 (1) Pro forma Revenue 36,560 37,314 N
Slide 28: Glossary
Glossary Annual Recurring Revenue (ARR) equals to the monthly recurring revenue at the end of the period multiplied by 12 Cash conversion rate equals cash receipts divided by pro forma revenue EBITDA EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) is a non-IFRS measure used t
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