Essensys Plc · LSE:ESYS
Essensys — FY2020 Earnings Presentation
27 slides from Essensys's earnings presentation, 2020
Slide 1: Annual Results Presentation
Financial Year 2020 Annual Results Presentation MARK FURNESS Chief Executive Officer & Founder ALAN PEPPER Chief Financial Officer & Chief Operating Officer we power ambition
Slide 2: Our Business
Our Business essensys is the leading global Our software helps solve the complex provider of mission-critical operational and experiential challenges faced SaaS platforms & on-demand by multi-site flexible workspace providers. cloud services to the flexible workspace segment of the commercial real e
Slide 3: Highlights FY20
Highlights FY20 A resilient year Momentum rebuilding +9% 86% Revenue Recurring +19% 19% Recurring EBITDA* Revenue Margin Strong resilient US growth Go-to-market performance engine investment Successful £7m Market opportunity product launches fund raise accelerating *adjusted for share based payment
Slide 4: Operational Highlights
Operational Highlights GROW EXPAND LAND US sales headcount increased 75% Continued expansion of top tier customers Continued new customer acquisition Geographic expansion Succesful new Momentum building product launches in strategic, high-value accounts Real-estate industry reach R&D investment ramp
Slide 5: Covid-19 Impact and Response
Covid-19 100 90 80 REALTIME OCCUPANCY IMPACT 70 60 Occupancy % Short term customer support 50 40 Delayed site activations – limited 30 cancellations 20 Extended sales cycles 10 0 Reduced marketplace utilisation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Week UK
Slide 6: Financial Review
Financial Review
Slide 7: Financial Highlights FY20
Financial Highlights FY20 £4.2m 86% 100% 64% 69% EBITDA* Recurring Net Gross ARR <-> +7% Retention Margin Gross Margin -14% +3% -1% £19.7m ARR Run Rate 164 14 713 124 4 Customers Countries Sites Personnel Offices +14% 104 FTE Worldwide 20 Offshore £22.5m £20.5m Revenue Revenue Split ARR Gross Margin
Slide 8: Our Products
Our Products 92% 8% Revenue 87 419 Revenue 114 435 +13% +17% -3% -14% Customers Sites Customers Sites 7% 36% 100% 67% Revenue Revenue 101% 89% Net -1% growth growth Net +4% Retention ARR Retention ARR Gross Margin Gross Margin 8
Slide 9: Income Statement
Income Statement F Y/E July (£’000) 2019 2020 Audited Audited Revenue Total revenue +9% Connect recurring 14,916 17,470 Recurring revenue +19% Connect non-recurring 4,290 3,082 US recurring +45% Operate 1,427 1,947 Total revenue 20,633 22,499 of which: UK 12,853 12,193 US 7,780 10,306 (7,986) (8,117
Slide 10: Cashflow Statement
Cashflow Statement F Y/E July 2019 2020 (£’000) Audited Audited Working capital neutral EBITDA 4,212 4,215 year on year Changes in Working Capital (2,186) 197 CJRS/PPP grants in income - (386) Cash from Operations 2,206 4,026 Tax & forex adjs (93) 45 £2.3m investment in Net cash flow from operating
Slide 11: Balance Sheet
Balance Sheet F Y/E July 31 July 2019 31 July 2020 (£’000) Audited* Audited Fixed assets: Goodwill 1,263 1,263 Intangible assets 2,469 3,750 Right of use asset 3,119 2,055 Tangible fixed assets 1,376 1,695 8,227 8,763 Current assets: Inventory 292 323 Trade & other receivables 5,727 5,186 Cash and c
Slide 12: Key Performance Indicators
Key Performance Indicators Customer concentration (%) 37 Top 3 12 Top 5 Sites 13 Top 10 191 260 358 419 466 38 Rest 5.6 1 Cross-sell LTV CAC Sites Customers 146 37 294 273 77 50 CONNECT OPERATE BOTH 2017 2018 2019 2020 Total 12 contracted
Slide 13: Market Development
Market Development
Slide 14: Commercial Real Estate 2020
Commercial Real Estate 2020 WORKSPACE LIQUIDITY TRADITIONAL TURNKEY SHORT TERM COWORKING WORKSPACE ON WORK FROM SPACE WORKSPACE WORKSPACE MEMBERSHIPS DEMAND HOME Long term space with Move in ready flexible Dedicated team Ad hoc, individual Individual desks or Workforce working limited flexibility sp
Slide 15: High Value Strategic Accounts
High Value Strategic Accounts Significant long-term expansion opportunity REPRESENTING ASSET OPERATORS OVER 10 BILLION manages property on behalf of asset owner SQUARE FEET OF COMMERCIAL REAL ESTATE GLOBALLY ASSET OWNER OPERATORS owns & manages property full control FLEX SPACE OPERATORS operates fle
Slide 16: Product Leadership
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Slide 17: Software & Technology Enabled Property
Software & Technology Enabled Property 30% of all office space will be consumed Flexible office software & technology flexibly by 2030 solution for landlords & property managers Address growing occupier demand for flexibility Software for seamless & comprehensive STEP bridges the gap between space-a
Slide 18: essensys Smart Access
essensys Smart Access PRODUCT FOCUS No solutions were available on the market that offered real-time access control, flexibility & security required for our industry. 3 months to develop prototype. 9 months from idea to first customer deployment. Allows members to interact with physical space in a c
Slide 19: Flex Services Platform
Flex Services Platform Increased customer value & revenue opportunity Launching in 2021 Occupier Space Building Experience Operations & Infrastructure IT &Technology Lead & license Cloud management Infrastructure Tenant App Recurring billing & Reporting & Marketplace cash collection User analytics
Slide 20: Strategy Execution
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Slide 21: North America
North America Major Market Opportunity Increased go-to- market investment North America CEO recruitment Sales capacity increased 84% YoY Customer expansion into Central & South America +45% Recurring Revenue Total US office Early new product success STEP & Smart Access Growth YOY market is over 11 b
Slide 22: UK & Europe
UK & Europe MOMENTUM BUILDING UK resilient Accelerating European during Covid-19 expansion Existing business & European Sales growing pipeline Director appointed “A new kind of building owner is emerging, willing to offer occupiers flexibility, identity & security” European operating Building pan-Eu
Slide 23: APAC
APAC Regional expansion currently customer led Regional CEO & go-to-market capability planned for H2 FY21 Product development to support full market entry KEY REGIONAL MARKETS Active pipeline for HK, Australia Australia & NZ Hong Kong First customers Singapore expected H1 FY21 Malaysia 23
Slide 24: Outlook
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Slide 25: Summary
Summary Strong & Accelerating Strategic Equipped for Continued resilient structural accounts long-term US progress performance drivers opportunity success 25
Slide 26: Thank You
Thank You Nominated advisor & broker: N+1 Singer +44 (0)20 7496 3000 Financial Public Relations: FTI Consulting +44 (0)20 3727 1000 essensys.tech we power ambition
Slide 27: Important Notice
Important Notice This presentation (this “Presentation”), which has been prepared by, and is the sole responsibility of, essensys plc (the “Company”), has been prepared solely in connection with the Company’s preliminary financial results for the 12 month period ended 31 July 2020. This Presentation