Slide 1: QuickFee FY24 Results Presentation
QUICKFEE FY24 RESULTS PRESENTATION 27 August 2024 President, North America, Jennifer Warawa Chief Financial Officer, Simon Yeandle
Slide 2: QuickFee helps professional services firms accelerate and automate accounts receivable
QuickFee helps professional services firms accelerate and automate accounts receivable and grow their business. www.quickfee.com 27 August 2024 1
Slide 3: FY24 highlights: Executing on the strategy for transformational growth in the US
FY24 highlights: Executing on the strategy for transformational growth in the US + REVENUE UP 37% ON PCP + IMPROVED PROFITABILITY + RECORD TRANSACTION + EBTDA POSITIVE in Q4 FY24 VOLUMES IN FY24 A$20.3M A$(3.2)M US$ 1.4BN US PAY NOW UP 17% A$14.8M A$(6.5M) GROUP LENDING A$ 100M UP 22% FY23 FY24 FY23
Slide 4: Strong revenue growth and improved profitability
Strong revenue growth and improved profitability FY24 Key Highlights + Group revenue up 37% on pcp to A$20.3m driven by: Financial Performance + Increased Total Transaction Volumes (TTV) and continued A$’M FY24 FY23 %+/- margin expansion AU Finance (Pay Over Time) revenue 7.9 5.2 +52% + AU revenue u
Slide 5: Ongoing improvement in underlying profitability
Ongoing improvement in underlying profitability + EBTDA improved significantly in H2 FY24 to -$0.5m, continuing the trajectory of improved profitability + Operating expenses of $7.4m in H2 FY24, down A$1 million (12%) on H1 FY24, primarily due to a decrease in general and administrative and product
Slide 6: The US Business
THE US BUSINESS
Slide 7: US market dynamics
US market dynamics Accounting Profession Small and Medium Businesses (SMBs) Process automation interest on the Economic uncertainty creating rise for front/back office financial concerns Mergers and acquisitions creating more Tighter lending restrictions by focus on A/R health banks Profitability fo
Slide 8: QuickFee at a glance
QuickFee at a glance WE HELP FIRMS OUR SOLUTIONS OUR COMPETITIVE TRUSTED FOR PAYMENTS AND FINANCING DIFFERENTIATORS SOLUTIONS SINCE 2009: Reduce A/R Pay Now | ACH/EFT + Card A/R typically runs high for Secure digital payments + Designed specifically firms, and we can help turn platform for accountin
Slide 9: Proof points from our customers
Proof points from our customers Reduce accounts receivable Grow their business “Our accounts receivable collections are a “QuickFee allows us to receive the full influx of ton better now… we went from having capital on the transaction upfront while even good clients pay 25, 30, or 35 days offering o
Slide 10: United States: Building on the foundations for transformational growth
UNITED STATES: BUILDING ON THE FOUNDATIONS FOR TRANSFORMATIONAL GROWTH
Slide 11: Unlocking transformational growth in the US
Unlocking transformational growth in the US Drive Cost Effective Growth QuickFee Finance Through Automation Revenue yields on the Finance Leverage automation across all product are approximately 25x functional areas to ensure we are those of Pay Now. driving growth in the most efficient, cost-effect
Slide 12: Executing on the strategy in FY24
Executing on the strategy in FY24 Signed 103 new customers in the US and increased the average firm size of new customers Improved and optimised the sales and success teams New strategic partnerships with Allinial Global, IRIS Software Group and Knuula Built platform for sustainable integrations Gro
Slide 13: QuickFee Connect: integrations with an 'automate everything' mindset
QuickFee Connect: integrations with an ‘automate everything’ mindset Building our platform to enable easier, more scalable integrations with new strategic partners + QuickFee Connect offers a scalable A/R Current Integrations solution that is designed specifically for account firms starting at $1m i
Slide 14: Positive momentum in operational metrics
Positive momentum in operational metrics NEW FIRM SIGNUPS US$M AVERAGE ANNUAL Commercial strategies implemented are taking REVENUE PER NEW FIRM effect and showing early signs of success SIGNUP US$M + Focus on larger firms / higher adoption of -14% +83% QuickFee's solutions + Launch of new commission
Slide 15: Profitable segment operations in the US
Profitable segment operations in the US US Financial Performance + Strong revenue growth, up 29%: 54% growth in Finance revenue to A$’M FY24 FY23 %+/- A$4.0 million and 22% growth in Pay Now revenue to A$7.2 million Pay Over Time (Finance) revenue 4.0 2.6 +54% + Gross profit up 21%: Margin % impacte
Slide 16: Increasing transaction volumes across all products
Increasing transaction volumes across all products US FINANCE 'LAST 12 MONTHS ROLLING’ US PAY NOW 'LAST 12 MONTHS' ROLLING TTV (US$M) 1,365 TTV (US$M) 26.2 26.7 1,286 24.4 1,242 1,164 1,190 22.0 20.9 1,130 18.7 19.3 1,086 17.8 1,022 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1FY23
Slide 17: Australia: A return to strong lending activity
AUSTRALIA: A RETURN TO STRONG LENDING ACTIVITY
Slide 18: Profitable segment operations in AU
Profitable segment operations in AU AU Financial Performance + Strong revenue growth: AU revenue up 49% to $9.1 million, driven by A$’M FY24 FY23 %+/- a 52% increase in Finance revenue to $7.9 million Pay Over Time (Finance) revenue 7.9 5.2 +52% + EBITDA growth: The AU business transitioned to susta
Slide 19: Strong performance in FY24
Strong performance in FY24 + AU Finance TTV up 20% on pcp to A$ 55.5 million AU FINANCE 'LAST 12 MONTHS' ROLLING TTV (A$M) 53.4 55.5 (FY23: A$ 46.4 million) 51.2 46.4 48.5 + AU Finance revenue up 51% on pcp to A$ 7.9 million 44.5 39.1 41.5 (FY23: A$ 5.2 million) + Very strong Q4 with record month in
Slide 20: FY24 Financial Highlights
FY24 FINANCIAL HIGHLIGHTS
Slide 21: Group profit and loss
Group profit and loss + Strong revenue growth: Total revenue up 37% to A$20.3 million, primarily A$’M FY24 FY23 $+/- %+/- due to strong growth in the higher margin Finance products in AU and US Interest revenue** 11.2 7.3 +3.9 +53% + Partially offset by higher interest expense: Gross profit up 34% t
Slide 22: Stable cost base
Stable cost base + Operating expenses reduced in FY24 by A$0.2 million (1%) on H2 OPERATING EXPENSES BY HALF-YEAR (A$M) FY23, from A$16.0 million to A$15.8 million, primarily due to a decrease in general and administrative expenses + Operating expenses of A$7.4m in H2 FY24, down A$1 million (12%) on
Slide 23: Group balance sheet
Group balance sheet 30 June 30 June A$’M 2024 2023 $+/- %+/- + Cash improvement: Cash increase due to: Cash and cash equivalents 13.5 3.4 10.1 +297% + Equity raise A$3.8million (net of costs) + ACH ‘cash in transit’ held increase of A$6.6 million Loan receivables (current) 54.0 42.2 11.8 +28% Trade
Slide 24: Group cash flow
Group cash flow Reconciliation from loss for the period to operating cash flow A$’M FY24 FY23 $+/- %+/- A$’M FY24 FY23 $+/- %+/- Net cash outflow from operating activities (4.0) (6.9) +2.9 +42% Loss for the period (4.7) (8.1) +3.4 +42% Net cash outflow from loan book / firm funding (5.0) (9.3) +4.3
Slide 25: Funding update
Funding update Credit facilities Loan book & Liquidity 30 June 30 June Northleaf credit facility A$’M 2024 2023 $+/- + US$40 million (A$58.5 million) facility Loan book 55.2 43.2 +12.0 + Currently drawn to US$9 million + A$30.5 million (A$44.1 million in total) Available cash and cash equivalents 6.
Slide 26: FY25 Outlook
FY25 OUTLOOK
Slide 27: FY25 Outlook
FY25 Outlook Focus on reaching sustained profitability • Focus on fastest path to profit: QuickFee Finance and QuickFee Connect • Continue to manage cost base carefully • Continued investment in breadth of Connect integrations to capture revenue opportunity • Expected FY25 EBTDA in the range of A$1.
Slide 28: Why QuickFee, why now
Why QuickFee, why now Top tier management team in $84B in Serviceable Addressable Winning, differentiated value proposition: place with owner mentality Accountant Market in the US Alone Finance, Connect, Pricing Proven track record of delivering Ability to substantially increase revenue Growing cust
Slide 29: Questions
QUESTIONS
Slide 30: Contact details
CONTACT DETAILS Simon Yeandle, CFO p: +61 2 8090 7700 e: simon.yeandle@quickfee.com Katie Mackenzie, Investor Relations p: +61 455 502 197 e: kmackenzie@belleviewir.com.au
Slide 31: Disclaimer
Disclaimer The material contained in this document has been prepared by QuickFee does not undertake any obligation to publicly release the QuickFee Limited ACN 624 448 693 (‘company’) and contains result of any revisions to these forward-looking statements to general information about the company’s
Slide 32: Appendix
APPENDIX
Slide 33: Detailed profit and loss
Detailed profit and loss Detailed profit and loss AU US A#039;M FY24 FY23 $+/- %+/- A#039;M FY24 FY23 $+/- %+/- Interest revenue** 7.5 4.8 +2.7 +56% Interest revenue** 3.8 2.6 +1.2 +46% Revenue from contracts with customers 1.6 1.3 +0.3 +23% Revenue from contracts with customers 7.4 6.1 +1.3 +21% Gross re
Slide 34: Finance (Pay Over Time)
Finance (Pay Over Time) AU FINANCE TT A M AU FINANCE RE ENUE AU FINANCE RE ENUE IEL A M Key differentiator in payments market 1 + Finance revenue up 53% to A$11.9m 11 + Finance revenue accounts for 59% of total group IEL 1 2 revenue (FY23: 53%) TT 11 2 F 2 + Revenue yields on the Finance product are
Slide 35: Historical metrics - US
Historical metrics - US FY22 FY23 FY24 Total Transaction Volumes (TTV) Q1 Q2 H1 Q3 Q4 H2 FY22 Q1 Q2 H1 Q3 Q4 H2 FY23 Q1 Q2 H1 Q3 Q4 H2 FY24 Professional Services US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M Pay Now ACH 145.6 196.7 342.3 175
Slide 36: US product profitability
US product profitability ACH Card Financing BNPL Total US$000s except volume FY24 FY23 FY24 FY23 FY24 20.9 FY24 FY23 FY24 FY23 Volume US$ M 1,128 953 237 211 26.7 20.9 - 1.2 1,391.7 1,186.1 Financing revenue (interest) - - - - 2,475 1,636 - 91 2,475 1,727 Payments and other revenue 4,182 3,599 520 3
Slide 37: Historical metrics - AU
Historical metrics - AU FY22 FY23 FY24 Total Transaction Volumes (TTV) Q1 Q2 H1 Q3 Q4 H2 FY22 Q1 Q2 H1 Q3 Q4 H2 FY23 Q1 Q2 H1 Q3 Q4 H2 FY24 Professional Services A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M Pay Now EFT 4.4 4.2 8.6 3.7 4.8 8.5 17.1 4 5 9 4 5 9 1
Slide 38: AU product profitability
AU product profitability EFT & card Financing BNPL Total A$000s except volume FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 Volume A$ M 76 62 55.5 46.4 3.4 1.7 134.9 110.1 Financing revenue (interest) - - 7,178 4,699 287 67 7,465 4,766 Payments and other revenue 864 764 717 61 1,642 527 12 1,303 Total rev
Slide 39: Glossary
Glossary ACH Automated Clearing House A type of electronic bank-to-bank payment in the US, equivalent to EFT in Australia Active customer Any customer who has transacted with QuickFee in the relevant period Active firm Any firm that has had a transaction with QuickFee in the relevant period APR Annu