Slide 1: First phase of Spacetalk turnaround delivers record positive cash flow growth
For personal use only First phase of Spacetalk turnaround delivers record positive cash flow growth 2Q FY2023 Update January 2023
Slide 2: Important notice
Important notice For personal use only This presentation has been prepared by Spacetalk Ltd. (“Spacetalk,” or “Company,” or “SPA”). Information contained in this presentation: • is intended to be general background information only, and is not intended that it be relied upon as advice to investors o
Slide 3: First phase of Spacetalk turnaround completed
• $3.3m improvement in 2Q FY2023 cash flow over Q1 First phase of (excludes proceeds of rights issue) • First time positive quarterly cashflow since 3Q FY2021 Spacetalk For personal use only with a $0.4m increase excluding proceeds of rights issue • Exit of lower profitable product lines (budget wat
Slide 4: 2Q2023 Financial Highlights
2Q2023 Financial Highlights For personal use only Q2 Cash Flow Cash in bank ARR +$0.4m $4.2m ($3.1 excluding cap raise) $7.4m excludes proceeds of capital raise +$3.3m +55% vs 1Q +43% wearables pcp +15% ex cap raise vs 1Q +10% Schools pcp 1Q2023: $-2.9m 1Q2023: $2.7m 2Q2022: $5.71m Unaudited results
Slide 5: Cash flow by quarter
Cash flow For personal use only Cash flow by quarter Cash in AUD flow by millions Quarter Represents net cash movement in quarter excluding any financing such as capital raise or borrowings
Slide 6: 2Q2023 Financial Highlights: ARR and Group Revenue
2Q2023 Financial Highlights For personal use only ARR by Quarter Group Revenue (Wearables & Schools) $6.9m -17% pcp +8% pcp $8.95m If budget watch was ranged 2Q2022: $8.3m Unaudited results
Slide 7: Financial Update
Financial For personal use only Update • Cash flow positive quarter during a quarter which is traditionally a weaker cash flow quarter (as December sell-in orders are paid in Q3) • Exited out of unprofitable budget watch (Kids RRP $179) and focused on Premium watch (Adventure RRP $349) • The budget
Slide 8: Monthly user growth for Jumpy
For personal use only • Strong growth Monthly user growth for Jumpy • Generates negative working capital • Increases average revenue per user (ARPU) • Opportunity to upsell to existing customers
Slide 9: Non-Renounceable Rights Issue
For personal use only Non- Renounceable Rights Issue $1.38m raised before costs with $0.23m subject to EGM approval (directors’ take up of short fall) We will be reviewing our capital requirements and whether to keep it open for the full period
Slide 10: Cost optimisation update
Cost optimisation update For personal use only Initial cost Identified further Setting up reduction target cost reduction platform for of $2m run rate resulting an overall profitable growth exceed savings run rate of $4m pa
Slide 11: Focus for Q3
For personal use only CEO appointment 01 Profitable growth 02 Continued strong cost management culture 03 Focus on positive Focus for Q3 cash flow 04 Strong opportunities in Europe and North America 05
Slide 12: Turnaround Summary
Turnaround Summary For personal use only Cash Flow Budget watch ARR Increase Positive re-entry in Q4 Strong Cost Renegotiated CEO opportunities in Optimisation covenants, reduced Appointment North America interest rate, extended and Europe term of debt
Slide 13: About Spacetalk
This announcement has been authorized by the Spacetalk Board. For personal use only Spacetalk Ltd. (ASX:SPA) is a global technology provider of secure communication solutions for families to stay connected and protected. Spacetalk’s range of all-in-one smartphone GPS watches for children (Spacetalk
Slide 14: spacetalkwatch.com
For personal use only spacetalkwatch.com