Urbanise.com Ltd. · ASX:UBN
Urbanise.com — H1 2024 Earnings Presentation
26 slides from Urbanise.com's earnings presentation, Feb 21, 2024
Slide 1: H1 FY2024 Results
H1 FY2024 Results 21 February 2024 Urbanise.com Limited ABN 70 095 768 086
Slide 2: About Urbanise
About Urbanise Urbanise is a leading provider of industry-specific cloud-based SaaS platforms to strata and facilities managers $12.8m 92.0% 99.0% Contracted ARR Recurring revenue Customer retention* 17 ~688k ~2.90k Countries Strata lots billed FM users billed * Customer retention rate for H1 FY2024
Slide 3: Progress on key priorities
Progress on key priorities Sales strategies deliver $0.8m in Continued focus on strong pipeline with additional license revenue through improvement in sales conversions in H1 growing portfolio of reference customers FY2024. Ongoing work on initiatives to and improving product. reduce conversion lead
Slide 4: H1 FY2024 Key Metrics vs pcp
H1 FY2024 Key Metrics vs pcp1 Revenue ARR2 CARR Net cash Customer $6.27m $11.99m $12.8m position retention rate3 $3.76m 99.0% 0.9% 6.3% 4.0% No material debt • License fees up • New customer and • Contracted ARR • Underlying average • Customer retention $0.2m or 3.7% organic growth across increased
Slide 5: Agenda
Agenda 1 Introduction 2 Product and Market Overview 3 H1 FY2024 Financial Result 4 Outlook Simon Lee, CEO and Michelle Garlick, Interim CFO |5|
Slide 6: Products and Market Overview
Products and Market Overview |6|
Slide 7: Urbanise Strata
Urbanise Strata Urbanise Strata is used by strata managers to administer strata schemes (Australia / NZ) and jointly owned properties (UAE). The need for strata software Urbanise differentiators Solutions for a complex sector: Cloud-based platform: • Day to day operational software to • Continuous u
Slide 8: Urbanise FM
Urbanise FM Urbanise FM is used by facilities managers to manage the maintenance of property assets and supervision of contractors The need for FM software Urbanise differentiators Specialised sector functionality: Cloud-based platform: • Manage performance of multiple • Continuous updates to bring
Slide 9: Our Key Markets
Our Key Markets Mission Critical Platform Markets Sector Software • Strata managers Compliance driven APAC updates Strata MENA • Strata managers • Property developers Scalable & integration ready • Aged Care / retirement villages • Commercial Property APAC • FM Outsourcers FM MENA • FM Outsourcers E
Slide 10: H1 FY2024 Results
i) = =) “) o Oo wT N ~) N > Le bw -
Slide 11: H1 FY2024 Financial Summary
H1 FY2024 Financial Summary $’000s H1 FY2024 H1 FY2023 Var Var % • Total H1 FY2024 revenue of $6,269k with growth from new, License fees 5,767 5,563 204 3.7% backlog and existing customers offset by reduced licenses, Professional fees 502 761 (259) (34.0%) loss of customers and a temporary reduction
Slide 12: ARR growth driven by go-live on key projects
ARR growth driven by go-live on key projects CARR ($m) Last 12 months License Revenue & ARR ($m) 14.0 12.8 12.3 12.1 12.3 12.4 11.5 12.0 11.4 11.3 11.6 12.0 11.2 11.4 10.5 10.4 11.0 10.9 11.1 10.0 10.2 9.5 10.0 9.1 9.1 7.9 8.2 8.4 7.8 8.0 7.1 6.0 4.0 2.0 0.0 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22
Slide 13: H1 FY2024 Key Metrics
H1 FY2024 Key Metrics • December 2023 ARR increased by $0.7m or 6.3% largely from implementation of backlog and contracts won and implemented in H1 FY2024. • Offset by direct customer churn and license fee reductions. Total Contracted Revenue of ~$12.8m Backlog as at Dec 19 Jun 20 Dec 20 Jun 21 Dec
Slide 14: ARR mix by customer and product
ARR mix by customer and product ARR by Product ARR by Region 1.1% 26.8% • Composition of ARR in December 2023 shows Urbanise's strategic focus on its key markets of APAC and the Middle 72.1% East. • Within Strata, Urbanise's platform is Strata FM APAC E/ME Africa used by a broad range of strata mana
Slide 15: H1 FY2024 Facilities Management Summary
H1 FY2024 Facilities Management Summary License fee growth driven by new wins and backlog conversion $’000s H1 FY2024 H1 FY2023 Var Var % • License fees of $2,118k, were up $221k or 11.6% mainly due to new and License fees 2,118 1,897 221 11.6% backlog customer growth ($353k) and organic growth from
Slide 16: H1 FY2024 Strata Summary
H1 FY2024 Strata Summary License fee growth offset by temporary license fee reduction from APAC Strata customer $’000s H1 FY2024 H1 FY2023 Var Var % • License revenue of $3,649k flat on pcp driven by; o implementation of new and backlog customers ($268k) License fees 3,649 3,657 (8) (0.2%) o organic
Slide 17: Ongoing focus on cash management
Ongoing focus on cash management Net cash used* reduced from $1,168k in H1 FY2023 to $439k in H1 FY2024. Receipts & Payments ($’000)* Debtors and Deferred Revenue ($’000)s 3,000 2,972 8,000 2,000 2,586 2,097 1,824 1,884 1,858 5,000 1,000 1,614 1,566 1,546 0 2,000 (438) (46) (1,000) (1,023) (972) (95
Slide 18: License revenue growth of $0.8m offset by reduction in license and professional fees
H1 FY2024 License revenue growth of $0.8m offset by reduction in license fees ($0.6m) and professional fees ($0.3m) • H1 FY2024 total revenue down by 0.9% vs pcp. Strata License flat ($8k) or - FM License Growth of $221k or • Strata license revenue down 0.2% vs 0.2% 11.6% pcp due to: o New wins and
Slide 19: Operating expenses
Operating expenses Urbanise focuses on cashflow break-even by FY2025. Operating expenses decreased by $675k, representing an 8.0% decline, attributed to Urbanise's cost optimization strategy in pursuit of achieving cash flow break-even by FY2025. This reduction encompasses the following: • Employee
Slide 20: H1 FY2024 Cash Flow
H1 FY2024 Cash Flow $’000s H1 FY2024 H1 FY2023 • Receipts of $8,343k up by $1,208k (16.9%) driven by Opening Cash Balance 4,248 3,970 improved billing and related cash collection in the first half. Receipts from customers 8,343 7,135 R&D tax rebate & government incentive 461 - • Payments to supplier
Slide 21: Cash Used/Generated
Cash Used/Generated Average Monthly Cash Used / (Generated) $’000s* 82 100 43 • The average monthly cash 0 generated for Q2 FY2024 was $82k: (100) (49) Underlying Q2 ($18k) o The underlying average cash (91) used per month in Q2 (200) FY2024 was $18k after adjusting for R&D rebate and (300) (265) (2
Slide 22: H1 FY2024 Balance Sheet
H1 FY2024 Balance Sheet $’000s 31-Dec-23 30-Jun-23 Cash and cash equivalents 3,763 4,248 Trade receivables 1,898 2,644 • Trade receivables decreased by $746k compared to 30 June Contract assets 199 328 2023 primarily due to: Other assets 111 171 Prepayment 484 317 o An improved rate of cash collecti
Slide 23: Outlook
Outlook | 23 |
Slide 24: Outlook
Outlook Sales growth and operating leverage to drive cashflow sustainability Maximise market share in ANZ and UAE and extend footprint in Asia, Middle East. Focus on strong pipeline and initiatives to reduce conversion lead time. Deliver at least $2.4m in cashflow improvements by Sep 2024. Expect to
Slide 25: Q&A
Q&A | 25 |
Slide 26: Important Notice
Important Notice This presentation is given on behalf of Urbanise.com Limited. Information in this presentation is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securities in Urbanise.com Limited. The information should be r