Eagle Eye Solutions Group Plc · LSE:EYE
Eagle Eye Solutions — Investor Day (February 2024)
70 slides from Eagle Eye Solutions's investor day presentation, Feb 22, 2024
Slide 1: Capital Markets Day
Capital Markets Day 22nd February 2024
Slide 2: Welcome and Agenda
Welcome and Agenda 1. Introduction 2. Our ambition & where we are today 3. Addressing the opportunity 4. Financial framework Anne de Kerckhove 5. Wrap-up and Q&A Chair 2 Capital Markets Day l Eagle Eye
Slide 3: Meet the team
Meet the team Anne de Kerckhove Tim Mason Lucy Sharman-Munday Steve Rothwell Chair CEO CFO CTO and Founder Al Henderson Claire Essex-Crosby Cédric Chéreau Zyed Jamoussi Sarah Jarvis Chief Sales Officer Chief People Managing Director Managing Director Communications Officer and Co-Founder of and Co-F
Slide 4: Our ambitions and where we are today
Our ambitions and where we are today We are the Tim Mason, CEO personalisation people
Slide 5: Our SaaS business: at a glance
Our SaaS business: at a glance Running loyalty schemes and personalised promotion programmes for: Tried, tested and proven We have a global presence, with offices and customers around the world The best-in-class real-time loyalty and promotions platform for enterprise businesses 750m+ personalised o
Slide 6: The Golden Rule: Treat people the way they want to be treated
The Golden Rule: Treat people the way they want to be treated That is the very heart of personalisation. Every product we offer enables organisations to follow the golden rule, helping them to earn the loyalty of their customers through the power of personalisation, whilst we worry about the technol
Slide 7: The Golden Rule in action
The Golden Rule in action Our Employees Our Customers End Consumers Our Shareholders We are a great place We win with our We are powering We are an AIM to work customers personalisation markets winner eNPS +65 Customer retention 750m+ personalised Rule of 40+ rate of 99%+ offers issued every week 7
Slide 8: On our way to becoming a £100m revenue and 25% EBITDA margin business
On our way to becoming a £100m revenue and 25% EBITDA margin business
Slide 9: Our strategic framework will enable us to achieve our ambitions
Our strategic framework will enable us to achieve our ambitions Our next milestone is £100m revenue and 25% EBITDA margin Innovation at We have a We are our heart proven Opportunities The market is expanding ensures our customer to grow 1 coming 2 products 3 strategy: Win, 4 our 5 faster with toward
Slide 10: The market is coming towards us
The market is coming towards us Sarah Jarvis, Communications & Propositions Director 1 1 Market 2 Innovation 3 Win, Transact, Deepen 4 International Growth 5 Mergers & Acquisitions
Slide 11: Loyalty market overview
Loyalty market overview It’s big It’s global $10.2bn Projected to reach $22.8bn by 2028* It’s growing It’s sector-agnostic Global Loyalty Management Market Share by Sector 2022 17.5% Banking Financial Services and Insurance IT & Telecommunications Transportation Manufacturing Retail Hospitality Proj
Slide 12: Loyalty is growing in importance across sectors and geographies
Loyalty is growing in importance across sectors and geographies Grocery Food & Beverage Fashion & Department Stores “There’s a mega trend going on globally right now and it’s primarily enabled through apps and capabilities like Eagle Eye…it’s a space that I think will continue to evolve and we need
Slide 13: Key drivers of change: Market, Consumer, Retailer, Technology
Market “Loyalty is a Consumer lifeline during Cost of living crisis the inflation Evolved behaviours and expectations crisis” Mary Pilecki, Principal Analyst at Forrester Key Drivers of Change Retailer Technology • Increased Advances in cloud-native competition technologies, composable • Rising infl
Slide 14: The personalisation perfect storm
The personalisation perfect storm Mass Same experience for everybody Segmented Experiences assigned to customer groups 1:1 Personalisation Bespoke experiences generated specifically for individuals Customer Data Generated by loyalty/customer engagement schemes Omnichannel Connectivity A real-time co
Slide 15: A growing opportunity for Eagle Eye
Market Consumer Loyalty and personalisation are intrinsically interlinked. We enable businesses to follow the Golden Rule, We are recognised by analysts and retailers as a best-in- executing omnichannel personalisation at class solution for the full complement of customer unrivalled scale engagement
Slide 16: Redirecting 25% of mass promotion spending to personalised offers
This is just the beginning Redirecting 25% of mass promotion spending to Redirecting personalized offers25% of mass promotion spending to personalised offers would increase return would increase return on on investment (ROI) (ROI) by 200% investment by 200%
Slide 17: AI is here. AI needs data. You need loyalty to get data.
AI is here. AI needs data. You need loyalty to get data. You need connections to execute on data. Eagle Eye powers loyalty, creates connections & executes data.
Slide 18: AI needs AIR.
AI needs AIR.
Slide 19: Our product strategy: Innovation at our core
Our product strategy: Innovation at our core Steve Rothwell, Founder & CIO 2 1 Market 2 Innovation 3 Win, Transact, Deepen 4 International Growth 5 Mergers & Acquisitions
Slide 20: The three core components required to deliver omnichannel personalisation
The three core components required to deliver omnichannel personalisation Customer experience layer The home of a business’s strategy, brand values and customer promise Real-Time APIs Transaction layer The engine room of your customer engagement programme – connecting the two other layers Real-Time
Slide 21: AIR: Acquire. Interact. Retain.
AIR Acquire. Interact. Retain. Breathe life into your customer relationships
Slide 22: AIR platform capabilities
We continually build new capabilities, releasing new features every 2 weeks In-Store Marketing Ads/ Rewards eCommerce POS Comms Social Partners Real-Time APIs Core CLOUD NATIVE capabilities Customer Loyalty Loyalty Promotion Wallet Ledger Earn / Burn Master API-FIRST COMPOSABLE Promotion Supplier Em
Slide 23: AIR use cases
This enables us to deliver a huge range of compelling use cases to our customers In-Store Marketing Ads/ Rewards eCommerce POS Comms Social Partners Real-Time APIs Example use Points-based Cashback Gamified Coalition Subscription CLOUD NATIVE cases loyalty loyalty promotions programmes schemes API-F
Slide 24: Proven at scale
Proven at scale The world’s most scalable loyalty & personalisation platform 2.5bn+ 750m+ 200m+ coupons / offers personalised customers under issued monthly offers per week management 10k+ 90k+ 50m+ API transactions stores connected, baskets analysed per second globally per week 169m+ 150ms 30+ POS
Slide 25: We innovate alongside some of the world's largest retailers
We innovate alongside some of the world’s largest retailers Delivering new use cases and growing customer transactions through the platform from 39m in 2014 to over 3bn in 2023 2014 2017 2018 2019 2020 2021 2022 2023 Gift Cards & Staff Omnichannel Hyper- Supplier Real-Time Coalition Tiered Personali
Slide 26: Our competitive strengths
Our competitive strengths The value we bring is clear Time to market Innovation Unrivalled speed and scale Cost management We deliver huge flexibility We are a strategic partner We are built for retail Tried, tested and proven 26 Capital Markets Day l Eagle Eye
Slide 27: Seeing the vision become reality: Powered by Eagle Eye AIR
Seeing the vision become reality Powered by Eagle Eye AIR
Slide 28: Our customer strategy: Win, Transact, Deepen
Our customer strategy: Win, Transact, Deepen Al Henderson, CSO 3 1 Market 2 Innovation 3 Win, Transact, Deepen 4 International Growth 5 Mergers & Acquisitions
Slide 29: Our customer strategy
Our customer strategy £1 revenue in year one is worth £3 by year three WIN TRANSACT DEEPEN ICP Enterprise Retail Omnichannel High Frequency Large Customer Base 29 Capital Markets Day l Eagle Eye
Slide 30: Strategy in action: Asda
Strategy in action Win Transact Deepen • Signed Asda as a customer in 2015 • 2016 – 2021: ~20m redemptions per • Full loyalty launch 2022 year • “…improve fraud prevention and • +400m redemptions in 2023 operational efficiency, as well as enabling the real-time issuance and • Delivering new & innova
Slide 31: Strategy in action: Pret
Strategy in action Win Transact Deepen • Launched the UK’s first quick service • Launched Pret’s first ever loyalty • 441% transaction volume growth from restaurant subscription programme in offering, Pret Perks in the UK in 2021 FY21 to FY23 2020 • Rolled out the coffee subscription in • Pret Gold
Slide 32: Strategy in action: PizzaExpress
Strategy in action Win Transact Deepen • Started working with Pizza Express in • Extended the digital marketing • Deployed our Real-Time Loyalty 2010, providing the capability for toolkit by providing eGifting and product to power the PizzaExpress Tesco Clubcard vouchers to be promotional capabiliti
Slide 33: International Growth
International Growth Al Henderson, CSO 4 1 Market 2 Innovation 3 Win, Transact, Deepen 4 International Growth 5 Mergers & Acquisitions
Slide 34: Expanding our global footprint
UK & Ireland Expanding our global footprint Investing as we win UK and Europe +7% revenue growth Europe 21 Sales & Marketing FTEs 5 new customers in the last 12 months North America FY22 - FY23 +129% revenue growth North America 9 Sales & Marketing FTEs 2 new customers in the last 12 months APAC APA
Slide 35: Small steps in the markets we operate in will take us to £100m and beyond
Small steps in the markets we operate in will take us to £100m and beyond Remaining focused on our growing pipeline France: Established market for Challenges AIR provides upsell opportunity DACH: Exploring opportunities in North America: the region Largest loyalty & promotions market globally We hav
Slide 36: Powered by Purple People
Powered by Purple People Claire Essex-Crosby, CPO
Slide 37: We are a great place to work
Growing the team We are a great place to work Benefits THE PURPLE PLAYBOOK VALUES JOINERS PACK CELEBRATING 4.7 GLASSDOOR GENEROUS FAMILY FRIENDLY FLEXIBLE WORKING ANNUAL LEAVE POLICIES PAY AND ASSESSMENT PROBATION BONUS 48 New MHFA MHFA MHFA Starters in 2023 MENTAL HEALTH & RETIREMENT CYCLE TO WORK
Slide 38: What got us here: Our cultural foundations
What got us here Our cultural foundations Values Communication Development Measurement Life Skills eNPS Values-Based Hiring Weekly, Quarterly and Annually all hands Gallup Strengths Exec Meet & Greet Gardeners Club Values Champions Purple Leaders Purple Pathways
Slide 39: We measure our progress through eNPS
We measure our progress through eNPS Tracked quarterly How likely is it that you would recommend Eagle Eye as a place to work? 65 How likely is it that you would recommend Eagle Eye’s products and services? Score Benchmark 68 (range -100 to +100) +30 Good +50 Excellent +80 Best-in-class
Slide 40: Why does it matter? Qualitative and quantitative measures
Why does it matter? Qualitative and quantitative measures Annual Average Productivity Recruitment Fees Customer Attrition Tenure Year 1 & Hiring Resource Retention 7% actual vs. 14% +15% vs. benchmark 50% more effective +£1m saving +99% benchmark Increased employee engagement, satisfaction & retenti
Slide 41: Where we are heading
Where we are heading Our ambition is to be The Best Company to Work For What? Purple Playbook Being Seen, Heard & Employee Recognition Recognised How? Values-Based Training Invert the Pyramid Purple Star Our Values Excellence Integrity Innovation Teamwork Passion Kindness 41 Capital Markets Day l Ea
Slide 42: The best company to work for is the best company to work with
The best company to work for is the best company to work with
Slide 43: M&A
M&A Lucy Sharman-Munday, CFO Cédric Chéreau, Co-Founder & Managing Director of Untie Nots Zyed Jamoussi, Co-Founder & Managing Director of Untie Nots 5 1 Market 2 Innovation 3 Win, Transact, Deepen 4 International Growth 5 Mergers & Acquisitions
Slide 44: Why we chose Eagle Eye
Why we chose Eagle Eye Key factors Strong Cultural Maximise Our Opportunity to Alignment Growth Potential Evolve Our Product 44 Commercial in Confidence | Eagle Eye
Slide 45: Better together
Better together One team 45 Capital Markets Day | Eagle Eye
Slide 46: Growing together
Growing together What took us 5 years in France will take less than 18 months in the UK Continued Strong Becoming a Recognized Entering New Year on Year Growth and Proven Solution Markets 46 Capital Markets Day | Eagle Eye
Slide 47: Our business now has 5x the growth potential
Our business now has 5x the growth potential 47 Capital Markets Day | Eagle Eye
Slide 48: Innovating together
Innovating together Developing our existing product set and building new solutions Continuing to evolve Challenges Newly packaged and compelling retail Launching EagleAI media proposition for the US market 48 Capital Markets Day | Eagle Eye
Slide 49: Capital Markets Day l Eagle Eye
49 Capital Markets Day l Eagle Eye
Slide 50: Introducing EagleAI
Introducing The next generation of data science for retail marketing. 50 Capital Markets Day l Eagle Eye
Slide 51: EagleAI is uniquely positioned
EagleAI is uniquely positioned, setting a new global standard for delivering 1:1 omnichannel personalisation Powerful, Retail- On-The-Fly Offer Real-Time Minded Data Generation Omnichannel Science Execution 51 Capital Markets Day l Eagle Eye
Slide 52: EagleAI powers two core solutions
EagleAI powers two core solutions Personalised Challenges Personalised Promotions ✓ AI-defined, personalised spend-stretch challenges ✓ AI-based promotion generation, optimized to ✓ Incremental by design – 7:1 your objectives & budget ROI ✓ Huge range of offer types ✓ End-to-end packaged use program
Slide 53: Personalised Promotions solution launched January 2024
Launched in January 2024, our Personalised Promotions solution is already delivering tangible commercial value First Customers Signed New Addressable Market In France and North America Data analytics market is currently worth $38bn and is projected to grow to $393bn by 2032 Strong, Growing Pipeline
Slide 54: Customer testimonial on the personalisation platform
“ The personalisation platform is remarkable in its ability to match the right offers to the right customer, tailoring thresholds and rewards to each individual. It works seamlessly at scale and across all channels, allowing us to engage our customers how and where they want. It's an easy-to-use too
Slide 55: Capital Markets Day l Eagle Eye
55 Capital Markets Day l Eagle Eye
Slide 56: Finance overview
Finance overview Lucy Sharman-Munday, CFO
Slide 57: Track record of year-on-year growth
Track record of year-on-year growth: Revenue, recurring revenue and EBITDA margins 21% 30% 5 YR 5 YR revenue recurring CAGR CAGR 50 25% 40 50% 45 44% 42% 45% 21% 20% 35 40 18% 20% 40% 30 35 16% 35% 30 15% 25 30% £(m) £(m) 24% 25 20 25% 20 10% 20% 15 15 13% 13% 15% 10 10 4% 5% 10% 5 5 5% 0 0% 0 0% FY
Slide 58: Our next milestone is £100m revenue and 25% EBITDA margin
Our next milestone is to be £100m revenue and 25% EBITDA margin 140 120 M&A can make us go faster 100 Innovation: EagleAI Revenue £(m) 80 60 Our Organic Story 40 Win, Transact, Deepen 20 0 Time
Slide 59: Our organic revenue story
Our organic revenue story 5 year 21% CAGR 1. High growth 3. Low levels of churn subscription model 0.2% of value customer churn 2. £1 win drives £3 of transact and deepen 4. Opportunity to deepen existing base 5X 4X Services 1 2 3 >4 3X NRR % of top 20 +120% 30% 45% 20% 5% 2X customers 1X 1 2 3 4 5
Slide 60: Long term customer relationships and ARR growth
Long term customer relationships and ARR growth Top 10 customers contract length +60% ARR of top 10 customers in 2 years 45% 30 40% 25 35% % contract value 30% 20 ARR £(m) 25% 15 20% 15% 10 10% 5 5% 0% - 1 to 3 3 to 5 5 to 10 Over 10 FY21 FY23
Slide 61: Our £1 to >£3 model maintains our organic growth story
Focus of win Our £1 - >£3 model maintains our organic growth story Investment in sales Broader Partners to make us & marketing international reach grow faster +61% A growing pipeline UK – 37% An effective way to across all key North America – 49% grow our pipeline markets APAC – 10% EMEA – 3% 61 Cap
Slide 62: We invest c.15% revenue back into our product each year
We invest c.15% revenue back into our product each year Innovation drives transaction growth and opens up new addressable markets 1 Omnichannel 2 Real-Time 3 Gifting & Top- 4 EagleAI Promotions Engine Loyalty Up 62 Capital Markets Day l Eagle Eye
Slide 63: Our Purple Print: M&A approach
M&A can expand our transactional capability or product offering, led by our ideal customer profile Targeting our ideal customer profile Our Purple Print Proven track record We can Platform / product enhancement We’re more confident Talented team & cultural alignment Cross sell / upsell capability A
Slide 64: Operational leverage
NOW GOAL £ £ Better Revenue Direct costs 1.00 (0.50) 1.00 (0.45) Operational leverage Simpler Direct margin 0.50 0.55 Direct margin % 50 55 Sales and Marketing Cheaper Product (0.45) (0.45) M&A Capitalised costs 0.15 0.15 EBITDA 0.20 0.25 EBITDA % 20% 25% Rule of 40 Generating increasing and signifi
Slide 65: Delivering results in line with expectations
Delivering results in line with expectations Achieving Rule of 40 H1 FY 2024 Growth Y/Y Group Revenue £24.1m +20% Recurring Revenue (subscription fees and transactions) 78% - Adjusted EBITDA** £5.9m +25% Adjusted EBITDA margin 24.3% +0.8ppts Closing net cash*** position £7.8m +36% *Period End Annual
Slide 66: Proven, strong organic story
Proven, strong organic story Focused on maintaining the rule of 40+ M&A as a lever for acceleration
Slide 67: Our opportunity is vast
Our opportunity is vast We have the people, offering, customers and strategy to deliver £100m revenue & 25% EBITDA
Slide 68: Q&A
Q8&A
Slide 69: Our team
Our team Anne de Kerckhove Tim Mason Lucy Sharman-Munday Steve Rothwell Chair CEO CFO CTO and Founder Al Henderson Claire Essex-Crosby Cédric Chéreau Zyed Jamoussi Sarah Jarvis Chief Sales Officer Chief People Managing Director Managing Director Communications Officer and Co-Founder of and Co-Founde
Slide 70: eagleeye.com
eagleeye.com @weareeagleeye
Eagle Eye Solutions Group — Investor Day (February 2024) on 6ix