Slide 1: Gamma Full Year 2024 Results
Gamma Full Year 2024 Results 25 March 2025 Andrew Belshaw, CEO Bill Castell, CFO #GoodTogether
Slide 2: Agenda
FY 2024 Business Update 01. Andrew Belshaw FY 2024 Results 02. FY 2024 Financial Highlights Bill Castell Update on Market Trends and Business Units Agenda 03. Andrew Belshaw Business Outlook 04. Andrew Belshaw Q&A 05. Andrew Belshaw and Bill Castell 2
Slide 3: Full Year 2024 Business Update
Full Year 2024 Business Update Andrew Belshaw, CEO
Slide 4: What does Gamma do?
What does Gamma do? Cloud-Based Communications Solutions Voice Enablement Connectivity 4 4
Slide 5: Full Year 2024 Financial Overview
Full Year 2024 Financial Overview Gamma Group Business Enterprise Europe £579.4m £368.9m £126.5m £84.0m +11% growth +11% growth +15% growth +6% growth Gamma Group revenue 64% of Group revenue 22% of Group revenue 14% of Group revenue o Gross profit and Adjusted EBITDA growth in all business units, d
Slide 6: Full Year 2024 Business Update
Full Year 2024 Business Update Service Provider business doing well o Service Provider contributes 21% of Gamma Business revenue o Gamma supports 60% of the Gartner Magic Quadrant for UCaaS, CPaaS and CCaaS o Coolwave extends Gamma services to around 20 countries o The same capability enables us to
Slide 7: Full Year 2024 Financial Highlights
Full Year 2024 Financial Highlights Bill Castell, CFO
Slide 8: 2024 Financial Highlights
2024 Financial Highlights Revenue Adjusted EBITDA Adjusted EPS (FD) Up Up Up 11% 10% 13% to £579.4m to £125.5m to 85.1p Adjusted cash generated by Cash Balance Dividend operations £153.7m £120.4m Up 96% As of 31 Dec 14% Adjusted cash conversion (net cash of £153.7m) to 19.5p 8
Slide 9: Consistent high growth performance over 10 years
Consistent high growth performance over 10 years 85.1 Adjusted EBITDA 125.5 Adjusted EPS (FD) 18% CAGR 19% CAGR 23.1 15.0 2014 2016 2018 2020 2022 2024 2014 2016 2018 2020 2022 2024 After 10 years on AIM, Gamma intends to move to the Main Market, with admission expected on 2 May 2025. 9
Slide 10: Income Statement
Year ended Income Statement £m Revenue 31 Dec 2022 484.6 31 Dec 2023 31 Dec 521.7 2024 579.4 Growth Organic 24 vs 23 Growth 11% 5%* Cost of sales (236.9) (254.5) (279.1) • Recurring revenue grew to £516.6m, 89% of total Gross profit 247.7 267.2 300.3 12% 6%* revenue (2023: 89%) Gross profit margin 5
Slide 11: Gamma Business
Gamma Business YoY growth: +7% +11% Organic growth: +7% +5% 368.9 • Delivered 11% growth in revenue, assisted Revenue (£m) by our recent M&A 332.2 – The acquisitions of Pragma (EnableX) and Coolwave, 309.4 have contributed £19.1m of revenue and £7.9m of gross profit in the period FY 2022 FY 2023 FY
Slide 12: Gamma Enterprise
Gamma Enterprise YoY growth: +8% +15% Organic growth: +3% +6% 126.5 • Delivered 15% revenue growth, driven by Revenue (£m) 102.0 110.1 key contract performance and M&A – Satisnet, acquired in August 2023, and BrightCloud, a Cisco CX provider acquired in July 2024, contributed £9.7m revenue and £4.4m
Slide 13: Europe
Europe YoY growth: +8% +6% Organic growth*: +6% -1% 79.4 84.0 73.2 • Revenue growth of 6% driven by the Revenue (£m) Placetel acquisition in September 2024 – Placetel contributed £7.4m of revenue and £6.0m gross profit in Germany in 2024 • Organic revenue decline of 1% driven by FY 2022 FY 2023 FY 2
Slide 14: Investments
Investments Development costs Capital expenditure • An overall £0.5m increase in development spend • Capital spend decreased by £3.8m to £19.2m • The decision in 2023 to stop ongoing development • If the 2023 capitalisation rate of 45% had been of some of our own collaboration software has maintaine
Slide 15: Continued active cost management in 2024
Continued active cost management in 2024 +6% +14% Organic • Organic growth in adjusted operating costs of 6% 14.1 174.8 • A large driver of this was the lower capitalisation rate and increased deal costs • Underlying growth of ~3% 8.6 161.5 (0.8) 152.9 Organic yoy growth drivers £m Lower capitalisat
Slide 16: Balance Sheet
Balance Sheet as at 31st Dec (£m) 2022 2023 2024 Balance Sheet Non-current assets (incl. PPE) Receivables and inventories 185.7 126.5 214.3 124.0 246.9 127.4 Cash 94.6 136.5 153.7 • Strong cash reserves of £153.7m as at 31st Dec Current assets 221.1 260.5 281.1 2024 (pre-STARFACE transaction) Total
Slide 17: Cashflow
Cash Flow Statement (£m) 2022 2023 2024 Growth Cashflow Adjusted EBITDA 105.1 114.3 125.5 10% • Adjusted cash conversion of 96% Adjusted cash generated by operations* 99.1 123.7 120.4 (3%) Adjusted cash conversion* 94% 108% 96% • Taxes paid increase due to growth in statutory PBT Cash impact of exce
Slide 18: Modelling consideration
Modelling consideration • We expect strong Group growth in FY25 following the recent German acquisitions, supported by satisfactory Group organic growth • We are encouraged by our performance in Germany and are making progress with the integration of the recent acquisitions of Placetel and STARFACE
Slide 19: Update on Market Trends and Business Units
Update on Market Trends and Business Units Andrew Belshaw, CEO
Slide 20: Gamma's Unique Position
Gamma’s Unique Position Carrier Capability Key for voice enablement Local Global tech giants distribution and large partners reach Quality of service Portal Evolution 20
Slide 21: Gamma's Growth Drivers
Gamma’s Growth Drivers Customers are requiring more complex communications solutions which we are able to address due to our broad suite of solutions. New portal will make it easier for Gamma to add new solutions and easier for channel partners to consume them for end users. German cloud market is s
Slide 22: Gamma Business
Gamma Business
Slide 23: What is Gamma Service Provider?
What is Gamma Service Provider? “We provide numbering, Voice & SMS termination for large (global) service providers who do not have their own network” 0800… Service Provider 01252… Gamma Austria Belgium Denmark Germany Sweden 07889… Ireland Netherlands New Zealand South Africa Australia Italy Spain
Slide 24: Gamma Enterprise
Gamma Enterprise
Slide 25: Gamma Enterprise – Trusted Partner to our Customers
Gamma Enterprise – Trusted Partner to our Customers 25
Slide 26: Gamma Europe
Gamma Europe
Slide 27: FY 2024 Proforma Gamma Germany
FY 2024 Proforma Gamma Germany Revenue Adjusted EBITDA Employees Cloud PBX seats c€125m c€24m c450 Over 500k c17% of Group Revenue c15% of Group Adj. EBITDA At end of 2024 At end of 2024 Hardware PBX seats Estos Collaboration seats IoT Users (Epsilon) Over 380k Over 200k Over 44k Office locations (S
Slide 28: The German Cloud PBX market is underpenetrated and growing
The German Cloud PBX market is underpenetrated and growing* 10.4m 5.3m Q4 2024 Q2 2025 Q4 2025 Q2 2026 Q4 2026 Q2 2027 Q4 2027 Q2 2028 Q4 2028 Users * Q2 2024 cloud communications forecast by Cavell 28
Slide 29: German UCaaS solution set
German UCaaS solution set Analysis of other Providers Enterprise Legacy Solutions SME Micro Companies Microsoft Teams Hardware offering 29
Slide 30: Our portfolio in Germany at start of 2024
Our portfolio in Germany at start of 2024 Cloud-Based Communications Solutions Voice Enablement Connectivity 30 30
Slide 31: We have added Cisco and MS Teams through organic investment
We have added Cisco and MS Teams through organic investment Cloud-Based Communications Solutions Voice Enablement Connectivity 31 31
Slide 32: We have added Placetel and Starface by Acquisition
We have added Placetel and Starface by Acquisition Cloud-Based Communications Solutions Voice Enablement Connectivity 32 32
Slide 33: Business Outlook
Business Outlook Andrew Belshaw, CEO
Slide 34: Business Outlook
Business Outlook Within Gamma Business, our Service Provider Fundamentals of business are strong business is growing, with potential for even (1) High Recurring Revenue; (2) Strong Margins; higher growth. We are extending geographic (3) High Cash Conversion; and (4) What we sell range and capability
Slide 35: Q&A
Q&A Andrew Belshaw, CEO Bill Castell, CFO
Slide 36: Thank you.
Thank you. #GoodTogether
Slide 37: Voice Enablement – Performance
Voice Enablement – Performance (Growth vs Dec 2023) SIP Trunks Enabling SIP Trunks Enabling MS Teams Enablement Traditional Hardware PBX non-Gamma Cloud PBX Down Up Up UK 9% 21% 9% to 932k SIP Trunks to 481k SIP Trunks to 467k users SIP Trunks Enabling SIP Trunks Enabling MS Teams Enablement Traditi
Slide 38: Cloud Communications – Performance
Cloud Communications – Performance (Growth vs Dec 23) Cloud PBX seats CCaaS seats Up Up UK 9% 50% to 1,040k cloud seats to 45k CCaaS seats Cloud PBX seats CCaaS seats Europe Up Up 170% 25% to 434k cloud seats to 5k CCaaS seats 38