Beforepay Group Limited · ASX:B4P
Beforepay — H1 FY23 Earnings Presentation
32 slides from Beforepay's earnings presentation, Feb 27, 2023
Slide 1: ASX Announcement: H1 FY23 Financial Results Investor Presentation
Beforepay Group Limited ASX ANNOUNCEMENT (ASX: B4P) 27 February 2023 H1 FY23 Financial Results Investor Presentation Beforepay Group Limited (Beforepay or the Company) (ASX: B4P) advises the following H1 FY23 Financial Results Presentation will be used in the Company's H1 FY23 Results Webinar which
Slide 2: H1 FY23 Half Year Results Presentation
Beforepay Group Limited ASX:B4P H1 FY23 Half Year Results Presentation 27 February 2023
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Beforepay Group Limited (‘Beforepay’ or the ‘Company’). This presentation may contain forward - looking statements, guidance, forecasts, estimates, prospects, projections or statements in relation to future matters (‘Forward Statements’). Forward Sta
Slide 4: What we do
What we do. A leading provider of Pay on Demand We consider ourselves to be services in Australia (not a Buy - Money provided directly To the customer—does not need to be spent at specific merchants A Fixed Fee of 5% on the amount advanced, with no Beforepay provides users with a Now-Pay-Later provi
Slide 5: Our Strategy
Our Strategy
Slide 6: Pay on Demand — a better way
Pay on Demand —a better way We believe that nobody wants to be in debt. We believe that most people, when money is tight, only want to borrow a small amount of money for a short period of time, to tide them over until they get paid. Beforepay is committed to providing a safe, affordable alternative
Slide 7: What makes us different
What makes us different Simple, flat, and transparent fee. We charge 5% on the amount advanced, with nothing more to pay. No late fees, no rapid-payment fees, no subscriptions, no tips, no interest incurred. Funds available instantly. The money is in your bank account in less than one minute. Best-i
Slide 8: Our Mission
Our Mission To support working Australians Help Customers Grow Quickly Create Value ➔ Advance money to our customers ➔ Maintain or decrease dollar- ➔ Accelerate customer acquisition in an ethical and responsible way weighted defaults and increase throughput to manage temporary cash flow challenges ➔
Slide 9: Business Update
Business Update
Slide 10: H1 FY23 Highlights
Pay Advances of Positive Net Transaction Strong $303.9m up 130% Margin at 1.7% Balance sheet H1 FY23 from H1 FY22, driven by new of Pay Advance fee income in with $18.7m cash position and $28.5m customer acquisition and continued H1 FY23 vs 0.3% in H1 FY22. equity as at 31 December 2022. usage by ex
Slide 11: H1 FY23 Highlights: Key Metrics
H1 FY23 HIGHLIGHTS Key Metrics H1 FY23 H1 FY22 % Change H2 FY22 % Change Platform Metrics Pay advances ($m) 303.9 132.0 130% 195.3 56% Average pay advance ($) 391 241 62% 291 34% Active users (no. of users) 203,937 139,071 47% 173,398 18% Financial Metrics Beforepay income ($m) 14.6 6.0 145% 9.3 56%
Slide 12: Total and Average Pay Advances
Total and Average Pay Advances - Incremental Growth in Pay Advances Total Pay Advances Average Pay Advance by by Half Year +130% Half Year +62% $304M $391 $291 $195M $241 $132M $179 $124 $73M $20M H1-FY21 H2-FY21 H1-FY22 H2-FY22 H1-FY23 H1-FY21 H2-FY21 H1-FY22 H2-FY22 H1-FY23 Note: Certain financial
Slide 13: Rapid Growth in Active Users
Rapid Growth in Active Users Active Users by Half Year - 203,937 Active Users or 47% in FY23 +47% 203,937 96% of customers who have successfully repaid their first Pay Advance have taken 173,398 out a second Pay Advance. 139,071 102,671 46,486 Jun-22 Dec-22 Dec-20 Jun-21 Dec-21 Note: Certain financi
Slide 14: Net Transaction Margin (NTM) – Continuing to Grow Strongly
Net Transaction Margin (NTM) – Continuing to Grow Strongly Net Transaction Margin by Half Year $5.1m $3.2m $0.4m H1-FY21 H2-FY21 H1-FY22 H2-FY22 H1-FY23 -$1.0m -$1.1m Note: Certain financial metrics and information included throughout this presentation are not recognised under the Australian Account
Slide 15: Declining Trend in Loan Defaults
Declining Trend in Loan Defaults - Demonstrating Consistent Improvement in Credit Quality H1 FY22 H1 FY23 3.3% gross 2.9% net 3.2% gross 2.3% net Gross and Net Transaction Loss % by Half Year 7.4% 7.4% 4.6% 4.6% 3.3% 3.2% 2.9% 2.9% 2.3% 2.0% Gross transaction loss % (of Pay advances inclusive of fee
Slide 16: Funding Costs – Low Sensitivity to Rising Interest Rates
Funding Costs - Low Sensitivity to Rising Interest Rates - Credit Loan Facility On current funding arrangements, our funding costs 25 days 11.77% 80% are less than 10% ofBeforepayincome for the (0.07 years) Cost of external Loan-to-value ratio of average pay advance. Average duration debt facility e
Slide 17: Direct Service Costs – Continue to be Tightly Managed
Direct Service Costs - Continue to be Tightly Managed H1 FY22 H2 FY22 H1 FY23 0.7% of Pay advances 0.4% of Pay advances 0.3% of Pay advances Direct Costs per Pay Advance by Half Year Direct service costs include the cost of services $2.68 involved in facilitating pay advances to customers: data coll
Slide 18: Balance Sheet – Strong Cash and Equity Position
Balance Sheet - Strong Cash and Equity Position $m Dec 2022 Jun 2022 $ Change % Change Commentary Cash position 18.7 28.4 (9.7) (34%) Reflects loan utilised and collection of loan receivable balances Receivables 41.9 27.3 14.6 53% Reflects growth in loan book and level of pay advances Primarily due
Slide 19: Cashflow Statement
Cashflow Statement Operating, Investing and Financing Activities (H1 FY23, H2 FY22 and H1 FY22) $m H1 FY23 H2 FY22 H1 FY22 Receipts from repayment of customers advances 276.5 179.7 121.0 Receipts of Beforepay income 21.3 9.6 5.7 Payments to suppliers and employees (10.9) (11.3) (12.7) Advances to cu
Slide 20: Our Pathway to Profitability
Our Pathway to Profitability
Slide 21: Our Pathway to Profitability
Net Monthly Pay advances per month Transaction Margin % ≥ operating expenses Our Active Revenue % Monthly users overheads Pathway to Profitability/ Pay Advances Net Monthly per AU per transaction marketing Breakeven month loss expense Average Funding pay costs advance Direct costs 20
Slide 22: Net Transaction Margin and Pathway to Profitability by Quarter
Net Transaction Margin and Pathway to Profitability by Quarter H1 FY23 Q2 FY23 Q1 FY23 H2 FY22 Q4 FY22 Q3 FY22 Active users (no. of users) 203,937 203,937 185,075 173,398 173,398 158,269 Average pay advance ($) 391 394 388 291 299 282 Pay advances ($m) 303.9 164.7 139.2 195.3 107.3 87.9 Beforepay in
Slide 23: What comes next
What comes Continue growth in Work with channel Australia with existing partners to reach direct-to-consumer additional customers next acquisition model and new segments Constrain costs Continuous and drive towards improvement of risk profitability models, product, and customer experience 22
Slide 24: Q&A
Q&A
Slide 25: Thank You
Thank You
Slide 26: Appendix
Appendix
Slide 27: Management Profit & Loss – H1 FY23
Management Profit & Loss – H1 FY23 A$, unless otherwise stated H1 FY23 A$, unless otherwise stated H1 FY23 Beforepay income 14,571,863 EBITDA, excluding one-off and/or (2,734,897) Gross transaction loss (10,080,280) significant items Gross transaction loss % (% of pay advances inclusive (3.2%) of fe
Slide 28: Net Transaction Margin Reconciliation to Statutory Profit & Loss
Net Transaction Margin Reconciliation to Statutory Profit & Loss Statutory Profit and Loss Management P&L – Income to Net Transaction Margin Reference to A$ H1 FY22 Statutory Profit and Loss Revenue A$, unless otherwise stated H1 FY23 Beforepay income $14,571,863 1 Beforepay income 14,571,863 1 Befo
Slide 29: EBITDA Reconciliation to Statutory Profit & Loss
EBITDA Reconciliation to Statutory Profit & Loss Statutory Profit and Loss Management P&L – Net Transaction Margin to EBITDA Reference to Statutory Profit and Loss A$ H1 FY22 Revenue A$, unless otherwise stated H1 FY23 Beforepay income $14,571,863 Net transaction margin 5,056,804 Other income $1,371
Slide 30: Glossary
Glossary 1 of 3 Term Definition Term Definition Active users Customers of Beforepay who have taken out an advance in the Direct costs as Direct service costs in facilitating Pay advances to customers previous 12 months from the relevant date. This includes customers % (of Pay divided by who have not
Slide 31: Glossary
Glossary 2 of 3 Term Definition Term Definition G&A and other Occupancy expenses, Professional and consultancy expenses, Net transaction Beforepay income less the variable costs associated with expenses Software licenses, Technical suppliers, and Other expenses (all from margin facilitating Pay adva
Slide 32: Glossary
Glossary 3 of 3 Term Definition Term Definition Pay advance An advance made or offered by Beforepay to a user. Third party “Financing costs” related to the cash interest costs of funding Pay funding costs advances through drawing on the third-party debt facility. Pay advances The aggregate dollar va