Slide 1: XPON Technologies Group FY22 results presentation
For personal use only XPON Technologies Group Limited FY22 results presentation 23 August 2022
Slide 2: Disclaimer
Disclaimer This Presentation and has been prepared by XPON Technologies Group Limited ACN Certain statements in this Presentation, particularly those regarding possible or assumed For personal use only 635 810 258 (XPON or the Company). Shares in the Company are listed on ASX (ASX future performance
Slide 3: Agenda
Agenda For personal use only ■ Company overview ■ Key financial highlights ■ Key operating highlights ■ FY22 financial results ■ Strategy and outlook ■ Appendices © 2022 XPON Technologies Group Limited POWERED EXPONENTIALLY | 3
Slide 4: Company overview: XPON is a Cloud and MarTech company
Company overview: XPON is a Cloud and MarTech company For personal use only XPON (ASX:XPN) is a founder-led Marketing Technology and Cloud Business providing mission-critical services and software solutions to businesses in Australia, New Zealand, the United Kingdom and Europe. We help businesses ma
Slide 5: Macro business drivers
Macro business drivers For personal use only Convergence of trends position XPON 3rd party cookies for growth, including: ■ the increased data privacy and security regulation by governments; Data ■ the continued degradation of third-party advertising cookies; security XR ■ the increased demand for p
Slide 6: Scalable complementary offerings
Scalable complementary offerings For personal use only XPON Technologies Initially lands a customer by deploying and optimising marketing technologies (MarTech) and advertising technologies (AdTech); leveraging Big Data Analytics (BDA) to improve marketing effectiveness; developing consumer-facing a
Slide 7: Industry value chain
Industry value chain For personal use only XPON serves as a catalyst to break down data silos, so the organisation benefits from a secure, holistic view of their consumer. Teams responsible Marketing Operations IT © 2022 XPON Technologies Group Limited | 7
Slide 8: Formula for sustainable growth
Formula for sustainable growth x For personal use only powered by strong unit economics Once-in-a-generation + = opportunity (LAND) operating leverage → Using our platforms, targeting cash flow technology, and people break-even for full (EXPAND) year FY24 © 2022 XPON Technologies Group Limited | 8
Slide 9: Key financial highlights
For personal use only Key financial highlights Strong performance continues across all key metrics
Slide 10: FY22: Key annual metrics
FY22: Key annual metrics For personal use only Strong growth in FY22 vs. FY21 $ 78% 1 $ % $ 169% 16.4m 13.3m 8.6m 145 ANNUALISED RECURRING REVENUE (ARR) REVENUE GROSS PROFIT 6ppt 2 % $ % 64.6 GROSS PROFIT MARGIN 8.2m CASH 93 RECURRING REVENUE Note: 1,This operating metric has not been subject to rev
Slide 11: Strong revenue growth and expanding margins
Strong revenue growth and expanding margins1 Revenue CAGR2 of 42%, gross profit CAGR of 65% For personal use only ■ Revenue growth - benefiting from successful land and expand strategy ■ Gross profit - benefiting from higher margin product mix ■ Gross profit margin - tracking towards targeted range
Slide 12: Driving revenue predictability and margin
Driving revenue predictability and margin For personal use only Revenue by type, Revenue by region 38% (↑5%*) 62% (↓5%*) 7% (↓2%*) Recurring vs. non-recurring revenue 93% (↑2%*) Note: *ppts changed compared to FY21 © 2022 XPON Technologies Group Limited POWERED EXPONENTIALLY | 12
Slide 13: ARR growth
ARR growth1,2 Strong continued momentum with 78% growth YoY. For personal use only $1.9m Q4 FY22 $1.4m Q3 FY22 $2.1m Q2 FY22 $1.8m Q1 FY22 $16.4m ARR June 2022 $9.2m ARR June 2021 Note: 1. Refer to glossary for definitions 78% growth YoY 2.This operating metric has not been subject to review by audi
Slide 14: Unit economics
Unit economics1,2,3 For personal use only XPON continues to exhibit compelling unit economics underpinned by the successful ʻland and expand’ strategy % $ $ 99.5 667k 43k $ AVERAGE MONTHLY CUSTOMER RETENTION RATE LIFETIME VALUE PER CUSTOMER CUSTOMER ACQUISITION COST (CAC) 136m % 160 16x 8 mth TOTAL
Slide 15: Key operating highlights
For personal use only Key operating highlights Progressing on our strategy
Slide 16: Successful 'land and expand' strategy
Successful ʻland and expand’ strategy 32 landed 34 expanded For personal use only 1 Strong track record of expanding landed Including: corporate & enterprise customers. How XPON typically lands How XPON typically expands ■ Marketing & CX maturity assessment, audit and ■ Consolidation of marketing an
Slide 17: Operating highlights
Operating highlights For personal use only ≥80% Net Promoter Score ■ Successful ASX listing ■ Maintained NPS ≥ 80% ■ Further expanded sales and ■ Completed integration of ■ Achieved 160% revenue retention marketing capacity, including Internetrix acquisition with by successfully expanding key exec a
Slide 18: Expanding the Wondaris ecosystem
Expanding the WondarisⓇ ecosystem For personal use only ■ Wondaris® selected as an ARN ■ The Wondaris® platform achieves ■ Wondaris® integrates with Fivetran, Innovation Awards finalist, which ISO27001:2013 certification for enabling more than 180 additional recognises Australian technology informat
Slide 19: Case Study: University of Sunshine Coast (UniSC)
Case Study: University of Sunshine Coast (UniSC) For personal use only Unable to provide an on-campus recruitment experience during the COVID-19 pandemic, UniSC needed an immersive, highly-personalised way to share its campuses with prospective students. In its first year, UniSC’s Virtual Open Day r
Slide 20: Case Study: Amnesty International - Digital Decoders
Case Study: Amnesty International - Digital Decoders Documenting the For personal use only situation in the Ukraine Amnesty International’s Digital Decoders provides tools to help its global network of volunteers research and document human rights violations Volunteers in the Ukraine used Holoscribe
Slide 21: Growing team footprint
Growing team footprint XPON expanded sales and For personal use only delivery capacity, increasing total London headcount to 1351 Team breakdown Hanoi 1 Brisbane Sydney Note: Wollongong Team breakdown as at 30 June 2022. 1. Includes 15 on-demand remote contractors New Zealand © 2022 XPON Technologie
Slide 22: A strong culture to support the team
A strong culture to support the team Share a sense of ownership, “ For personal use only feel supported XPON is a people-first 7.2% 0.8% organisation where each individual feels heard and respected,” - Sumen, Data & Analytics Lead 92% Certified as a Great Place to Work in AU, UK, and Vietnam “ Trust
Slide 23: FY22 financial results
For personal use only FY22 financial results Continued performance and growth targeting cash flow break-even in full year FY24
Slide 24: Profit & Loss summary
Profit & Loss summary For personal use only FY22 FY21 For the year ended 30 June #039;000 #039;000 FY22 v FY21 ■ Revenue up 145% YoY driven by an increase in organic growth and full year contribution from Revenue 13,310 5,439 145% Internetrix acquisition. Cost of sales (4,717) (2,240) 111% ■ Gross profit
Slide 25: Cashflow movements
Cashflow movements For personal use only ■ Operating receipts - $12.3m representing a cash conversion rate of 92% to reported revenue of $13.3m ■ $12.5m raised from successful IPO ■ Operating Payments of $16.4m as the Group continues with investment in sales and marketing, product development and de
Slide 26: Balance sheet
Balance sheet FY22 FY21 Cash and cash equivalents balance of $8.2m For personal use only For the year ended 30 June $’000 $’000 FY22 v FY21 ■ representing and increased of $6.5m (up 378%) TOTAL ASSETS including net proceeds from IPO. Cash and cash equivalents 8,237 1,722 378% Trade and other receiva
Slide 27: Strategy and outlook
For personal use only Strategy and outlook Continued focus on delivering sustainable growth
Slide 28: Growth pillars
Growth pillars For personal use only Strengthen Expand value Expand sales & Expand channel Extend Wondaris existing solutions, creation, product marketing relationships platform may include adoption from capacity ecosystem strategic existing acquisitions customers © 2022 XPON Technologies Group Limi
Slide 29: Strategic priorities and focus
Strategic priorities and focus For personal use only ■ Maintaining organic growth momentum while ■ Continued focus on developing sales and targeting cashflow break-even for full year marketing capability to accelerate the XPON FY24. pipeline and land new customers. ■ Ongoing product development agai
Slide 30: Appendices
For personal use only Appendices
Slide 31: Appendix 1: Leadership Team
Appendix 1: Leadership Team For personal use only Phillip Aris, Experienced Chair and public company CEO/MD, Jennifer Killian, Marketing executive and experienced board advisor Non Executive specialising in professional services and emerging Group CMO with more than 20 years’ experience with B2B Saa
Slide 32: Appendix 2: Glossary
Appendix 2: Glossary For personal use only Annualised Recurring Revenue (ARR): represents monthly contracted recurring revenue Customer Acquisition Costs (CAC): calculated by total customer acquisition costs multiplied by 12. An annualised measure of the revenue that XPON expects to earn from its sp
Slide 33: Contact
For personal use only Contact For investors: investors@xpon.ai For media: marketing@xpon.ai