Eckoh — H1 2022 Earnings Presentation
22 slides from Eckoh's earnings presentation, November 2021
Slide 1: Engage. Secure. Protect.
00 Engage. Secure. Protect. Eckoh results for the half year ended September 30th 2021
Slide 2: Agenda
Interim results – period ending 30.09.21 00 2 Agenda. 1 Results overview 2 Financial highlights Operations review US operation 3 UK operation Strategic Goals 4 Product and patent update 5 Summary
Slide 3: Highlights
Interim results – period ending 30.09.21 Results Overview 00 3 Highlights. q Robust performance, in line with Board expectations q Continued growth in US Secure Payments and strengthening recurring revenue q UK activity levels recovering and growth returning q Transition to Cloud delivery continues,
Slide 4: Financial Highlights
Interim results – period ending 30.09.21 Financial Highlights 4 00 Financial Highlights Revenue Recurring revenue Operating profit 2 Total Business 3 Excluding £14.4m £10.5m £2.5m £11.2m exited third party Support activity 1 FY22 H1 and 3% 1% 1 7% 73% 18% 12% FY21 H1 (H1 21: £13.9m) (H1 21: £9.8m 71
Slide 5: Summary Financials
Interim results – period ending 30.09.21 Financial Highlights 00 5 Summary Financials Excluding exited third-party support £M FY22 H1 FY21 H1 Variance FY22 H12 FY21 H11 Variance Revenue 14.7 15.7 (6%) 14.4 13.9 +3% Gross profit 11.9 12.8 (7%) 11.6 11.2 +3% Gross profit margin (%) 81% 81% - 80% 81% -
Slide 6: Adjusted Operating Profit and Revenue Bridge
Interim results – period ending 30.09.21 Financial Highlights 00 6 Adjusted Operating Profit and Revenue Bridge q Total revenue & adjusted operating profit Revenue (£m) Revenue 16.0 declined year on year as a result of the 0.5 1.0 planned exit from third-party support, a 0.6 0.8 process that is now
Slide 7: Divisional Trading Analysis
Interim results – period ending 30.09.21 Financial Highlights 00 7 Divisional Trading Analysis q US accounts for 38% of Group FY22 H1 (Revenue £m) FY21 H1 revenue, impacted by the planned exit from third-party support & FX. Strategic goal US 5.6 UK 9.2 US 6.3 UK 9.4 remains US growth 38% 62% 40% 60%
Slide 8: US Trading Analysis
Interim results – period ending 30.09.21 Financial Highlights 00 8 US Trading Analysis Revenue by Activity Y-o-Y ($m) q Revenue of $7.4m an increase of 7.8% (FY21 H1 $6.9m) 1 6.8 6.5 q Gross profit increased 7.9% to $5.5m (FY21 H1: $5.1m) 1 7 6 q Gross margin 74% (FY21 H1: 75%) 5 4 q Secure Payments
Slide 9: UK Trading Analysis
Interim results – period ending 30.09.21 Financial Highlights 00 9 UK Trading Analysis q Revenue was £9.0m (FY21 H1: £8.5m) an increase of Revenue Split by Product 6%, with similar growth expected in H21 FY21 H1 q Impact from pandemic on client activity continued in Q1, but transactional volumes imp
Slide 10: Cost Control, Contracted Business & Guidance
Interim results – period ending 30.09.21 Financial Highlights 00 10 Cost Control, Contracted Business & Guidance q Significant cost savings achieved (in excess of £1m Total contracted business (£m) pa) from move to global NOC, exit from Support Support, 1.3 and natural attrition, that will underpin
Slide 11: US Secure Payments – Recurring revenue momentum
Interim results – period ending 30.09.21 Operations Overview 00 11 US Secure Payments – Recurring revenue momentum q Annualised recurring revenue1 (ARR) $8.9m, increased year on US - Secure Payments year by $2.0m or 29% ARR ($m) 10 8.9 q Continued strong performance with two renewals (including 8 6.
Slide 12: UK Overview – Activity returns to pre-pandemic levels
Interim results – period ending 30.09.21 Operations Overview 00 12 UK Overview – Activity returns to pre-pandemic levels q Revenue increased by 6%1. This was driven by new business going live and improved volumes for our existing clients over the half as the UK came out of the pandemic q Existing cl
Slide 13: Strategic Goals
Interim results – period ending 30.09.21 Strategic Goals 00 13 Strategic Goals q Being the market leader for Customer Engagement data and payment security q Capitalise on the fast-growing global market for technology solutions that help protect customer data q Maximise client value and retention thr
Slide 14: Product and Patent Update
Interim results – period ending 30.09.21 Product Update 00 14 Product and Patent Update q CallGuard Update – A new version of CallGuard, branded CallGuard Express, launched in October § Targeting predominantly channel sales and smaller clients who do not require a tailored solution § The product wil
Slide 15: Summary and Outlook
Interim results – period ending 30.09.21 Summary and Outlook 00 15 Summary and Outlook q Robust performance, in line with expectations q Continued progress and growth in US Secure Payments, delivering on our stated strategy q UK volumes recovering and growth returning q Improved recurring revenue an
Slide 16: Investment Case
Interim results – period ending 30.09.21 Investment Case 00 16 Investment Case. q Long term growth drivers § Significant market opportunity - largely untapped market § Patented IP and limited competitive threat – as far as we aware no homegrown US competitor § Macro factors - ongoing data breaches,
Slide 17: Thank you.
Interim results – period ending 30.09.21 00 17 Thank you. Nik Philpot CEO DD: +44 1442 458358 nik.philpot@eckoh.com Chrissie Herbert CFO DD: +44 1442 458329 chrissie.herbert@eckoh.com
Slide 18: Appendix – History
Interim results – period ending 30.09.21 Appendix 00 18 Appendix 1 – History § Dec 1999 Float on FTSE as 365 Corporation § Jan 2002 Sale of internet business § May 2002 Change of name to Eckoh, new customer engagement strategy § Jun 2003 Eckoh moves to AIM § Jul 2006 Symphony share sold to Redstone
Slide 19: Appendix – Market Opportunity
Interim results – period ending 30.09.21 Appendix 00 19 Appendix 2 – Market Opportunity Product Set Product Set Secure Payments, All Products Support and Coral Product Delivery Product Delivery Primarily hosted Primarily on site managed service (80%+) (90%+) Partner channels Partner channels Intrado
Slide 20: Appendix – Financial Information.
Interim results – period ending 30.09.21 Financial Information 00 20 Appendix – Financial Information.
Slide 21: Appendix – Balance Sheet 30 September 2021
Interim results – period ending 30.09.21 Financial Highlights 00 21 Appendix – Balance Sheet 30 September 2021 30 Sept 30 Sept 31 Mar £’000 2021 2020 2021 Intangible Fixed Assets 6,508 6,709 6,527 Amortisation of intangibles Mainly comprised of HQ building and hosted Tangible Fixed Assets 4,074 3,77
Slide 22: Appendix – Cashflow Statement
Interim results – period ending 30.09.21 Financial Highlights 00 22 Appendix – Cashflow Statement 30 Sept 30 Sept 31 March £’000 2021 2020 2021 Profit after tax 1,922 2,044 2,794 Depreciation / Amortisation 816 1,266 2,270 Share based payments 197 176 303 Taxation 461 484 717 Other 28 63 561 Operati