Ai-media Technologies Limited · ASX:AIM
Ai-media Technologies — H1 FY23 Earnings Presentation
27 slides from Ai-media Technologies's earnings presentation, Feb 27, 2023
Slide 1: Ai-Media Technologies Limited
27 February 2023 Ai-Media Technologies Limited (ASX: AIM) 1
Slide 2: Ai-Media is well positioned to benefit from AI
Ai-Media is well positioned to benefit from the fast-emerging improvements in AI Ai-Media is deploying the latest AI to make quality automatic live captioning and translation a reality with its global scalable Tony Abrahams John Bird and secure iCap cloud platform Chief Executive Officer Chief Finan
Slide 3: Turnkey solutions powered by AI-driven encoders and the iCap cloud platform
TURNKEY SOLUTIONS POWERED BY AI-DRIVEN ENCODERS AND THE iCAP CLOUD PLATFORM • Captions are delivered to any screen, on any platform, in any language Click to edit Master title style DELIVERY Ai Premium Smart Lexi Lexi • Human • Hybrid • Automated AI-POWERED CAPTIONING Click to edit Master subtitle s
Slide 4: Monetising infrastructure and solutions
MONETISING INFRASTRUCTURE AND SOLUTIONS iCap Cloud Platform 99.9 uptime, Encrypted ENCODING AI-POWERED TECHNOLOGY CAPTIONING My kids watch everything with captions Physical, virtual, and Human, hybrid, and cloud-based solutions automated solutions Captions delivered Live video to any screen, on any
Slide 5: H1 FY23 Highlights
‘a i media i FY23 IHLIGHTS
Slide 6: H1 FY23 Highlights
H1 FY23 HIGHLIGHTS $29.7M +105% 38% $14.6M Total Revenue LEXI1 Minutes Technology Sales2 Portion Cash Balance of Total Revenue +$0.1m on 15.9m minutes, up from Up from 28% $0.6m operating $29.6m in H1 FY22 7.7m minutes in H1 FY22 in H1 FY22 cashflow +13% +120% 60% +$1.4M Gross Profit LEXI Revenue Gr
Slide 7: Key global sales wins
KEY GLOBAL SALES WINS Well positioned as the leading captioning, transcription & translation solutions provider with a sticky and growing customer base, solving a broad spectrum of customer needs * * * Existing iCap Customers New Premium Services New iCap Customers New Partnerships transitioned to L
Slide 8: iCap growth = LEXI growth
iCAP GROWTH = LEXI GROWTH The global growth in iCap cloud LEXI minutes as % of iCap cloud platform platform minutes drives even faster LEXI reaches 35% May 2021 growth in LEXI minutes 40% Ai-Media total iCap usage 35% • LEXI now used on >35% of total iCap cloud platform acquires 30% EEG 25% minutes
Slide 9: SaaS growth continues
SAAS GROWTH CONTINUES H1 FY23 Revenue Mix Higher margin technology Technology sales = 38% of total sales products continue to grow Services Devices SaaS & Support Devices 100% 72% 62% 62% 24% 14% 62% 14% 14% 24% H1 FY23 Gross margins: 14% • Services >40% • Technology sales (Devices and SaaS & Suppor
Slide 10: Ai-Media wins Creative Tech category at InnovationAus Awards
AI-MEDIA WINS ‘CREATIVE TECH’ CATEGORY AT THE NOVEMBER 2022 INNOVATIONAUS AWARDS 10
Slide 11: Ai-Media wins APAC Insider award
AI-MEDIA WINS APAC INSIDER AWARD AI-MEDIA WINS 2023 ‘APAC INSIDER’ AWARD FOR BEST CAPTIONING & TRANSLATION PROVIDER Cash outflows from investment activities included final payment for acquisition of ACS 4 11
Slide 12: H1 FY23 Financial Performance
‘a i media hl FY23° NANCIAL FORMANCE
Slide 13: Macroeconomic conditions favour a value-driven approach
MACROECONOMIC CONDITIONS FAVOUR A VALUE-DRIVEN APPROACH As macro conditions put pressure on customer budgets, Ai-Media’s leading AI technology products offer customers solutions that satisfy regulatory and commercial needs at a better price point and scale than legacy human captioning solutions Usin
Slide 14: Gross margin and EBITDA soar as part of strategic transformation
GROSS MARGIN AND EBITDA SOAR AS PART OF STRATEGIC TRANSFORMATION 70% Comments Revenue ($m) EBITDA ($m) Gross Margin (%) • H1 FY23 revenue flat on the pcp 60% 60% • Flat revenue is a mix of growth in technology 53% 50% sales and a decline in services revenue • Strong EBITDA of $1.4 million in H1 FY23
Slide 15: H1 FY23 Profit & Loss
H1 FY23 PROFIT & LOSS REVENUE H1 FY23 H1 FY22 Var Var • Revenue growth is driven by technology sales while $m $m $m % services revenue continued to decline Total Revenue 29.7 29.6 0.1 0% • Quality of revenue is improving with product mix Cost of sales (12.0) (13.9) 1.9 (14%) moving from premium serv
Slide 16: FY23 Balance Sheet
FY23 BALANCE SHEET 31-Dec-22 30-Jun-22 Var Comments $'m $'m $m • $14.6 million in cash Cash and cash equivalent 14.6 15.2 (0.6) Trade receivables 9.6 11.2 (1.7) o Strong capacity to fund future growth Other current assets 3.1 3.5 (0.5) opportunities Total current assets 27.2 30.0 (2.8) Property, pla
Slide 17: H1 FY23 Cash Flow
H1 FY23 CASH FLOW H1 FY23 Cash Flow ($m) 18.0 16.0 15.2 0.6 0.1 14.6 14.0 (1.0) (0.3) 12.0 10.0 8.0 6.0 4.0 2.0 - Cash Cash flow from Cash flow Cash flow FX effect Cash 30 June 2022 operating activities from investment from financing 31 Dec 2022 activity activity *Net cash from operating activities
Slide 18: Strategic Outlook
‘a i media hl FY23° RATEGIC JTLOOK
Slide 19: The age of AI is upon us
The age of AI is upon us. We are witnessing nonlinear improvements in the capabilities of the foundation models which we are making available as platforms. - Satya Nadella; Microsoft CEO January 2023 19
Slide 20: AI advances continue to improve Lexi and iCap value
AI ADVANCES CONTINUE TO IMPROVE LEXI AND ICAP VALUE ‘Chat GPT’ • GPT = Generative Pre-trained Transformative GPT • BERT = Bidirectional Encoder Representation from Transformers NLP BERT • NLP = Natural Language Processing • APM = Acoustic and Pronunciation Modelling APM iCap Cloud Platform 99.9 upti
Slide 21: Ai-Media's competitive moat is strengthened by advances in AI
AI-MEDIA’S COMPETITIVE MOAT IS STRENGTHENED BY ADVANCES IN AI Future-proofed • Ai-Media’s competitive moat begins with iCap connected audio and caption encoders Encoders which enable the captioning turnkey (iCAP ENCODERS) solution • Devices connected to iCap cloud platform for security, reliability
Slide 22: Nonlinear improvements in AI will power future growth
NONLINEAR IMPROVEMENTS IN AI WILL POWER FUTURE GROWTH AI-MEDIA IS WELL POSITIONED TO BENEFIT AI INFLECTION ENABLES AI-MEDIA TO IDENTIFY FROM THE FAST-EMERGING IMPROVEMENTS IN AI NEW INDEX CUSTOMERS AND DIVERSIFY BASE • Ai-Media’s product suite benefits directly • Able to diversify index customers ba
Slide 23: Key takeaways
KEY TAKEAWAYS Continue building momentum SaaS transformation continuing Multi-year growth strategy in live sports • Flat revenue growth continued in H1 • AI’s moment has pierced the public • Recent customer wins such as MLB, as legacy customers consciousness and is opening minds of MLS, NCAA, CBS Sp
Slide 24: Disclaimer
DISCLAIMER This presentation (Presentation) contains summary information about Ai-Media Technologies Limited and Ai-Media’s business and operations in the future. The Company does not give any assurance that the its subsidiaries (the Company or Ai-Media) based on information as at 27 February 2023.
Slide 25: Further Information
Further Information Ai-Media Technologies (ASX:AIM) NWR Communications Lisa Jones Maude Lacasse Company Secretary Investor Relations investorrelations@ai-media.tv maude@nwrcommunications.com.au 4
Slide 26: Appendix
APPENDIX 26
Slide 27: AI improvements across GPT, BERT, NLP & APM
AI IMPROVEMENTS ACROSS GPT, BERT, NLP & APM POWERING IMPROVED LEXI ACCURACY Four key AI-based techniques have seen transformational improvements in recent years that have massively improved the performance of ASR (out-of-the box) solutions + LEXI improves further on the accuracy of ASR with Ai-Media
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