Slide 1: FY2022 Annual Results
To protect & support every child’s digital journey ASX: FZO FY2022 ANNUAL RESULTS 1
Slide 2: To protect and support every child's digital journey
To protect and support every child’s digital journey. Our mission is to protect and better children’s lives. To empower communities through holistic online safety tools & advice. To support educators so that children can thrive. To be a global influencer in online safety. We seek for our staff their
Slide 3: About Us: We are the leaders in online safety & wellbeing
ABOUT US Peter Pawlowitsch Matthew Stepka Dr Jane Watts Chairman Non Executive Director Non Executive Director We are the leaders in online safety & wellbeing Georg Ell Non Executive Director Matthew Stepka Non Executive Director Dr Jane Watts Non Executive Director Eduardo Cruz Gavin Logan Ross You
Slide 4: We are the only truly global provider in online safety
✓ 13M students Leeds ✓ 24K schools Charlotte ✓ 38% of UK schools San Diego Barcelona Orlando ✓ 16% of US districts ✓ 340K parents We are the only truly global ✓ 10 telco partners provider in online safety ✓ AU$80 million ARR * Sydney Perth Melbourne Auckland * As at August 2022 4
Slide 5: Our unique focus is to protect & support every child's digital journey
SCHOOL Duty of Care Our unique focus is to protect & support PARENTAL CLASSROOM Controls Outcomes every child’s digital journey STUDENT Wellbeing 5
Slide 6: Our commercialisation journey
Break-even Achieve operating cash flow break-even .. Scale Scale customer base until Product fit WE ARE HERE SaaS leverage kicks in Establish market leading platform and proposition and winning products. ✓ ✓ Our commercialisation journey
Slide 7: Children are being harmed at alarming rates
Mental Health Gaming Teen suicide rates 4 million kids Have doubled in Australia & tripled In Australia & USA display clinically in the US in the past decade. disordered gaming problems. Pornography Sexual abuse 11 years old 1/3 sexual abuse Children are being is the average age of exposure to porno
Slide 8: Wellbeing, regulation & integration is the focus of an evolving market
Wellbeing, regulation & integration is the focus of an evolving market Radicalisation & mental health is driving unprecedented ✓ growth in Safeguarding Recent M&A includes Smoothwall, Qustodio, Rhithm, ✓ ContentKeeper, Impero, CPOMs CIPA, KCSIE, NAG and data privacy regulations ✓ expanding. Competit
Slide 9: Funding sources are exploding
Funding sources are Wellbeing funding framework: exploding Established funding Prevention regimes eg e-rate There is unprecedented funding flooding into the space of student wellbeing. Our customers are trying to address wellbeing at scale with efficient tools and solutions. Early Detection & Interven
Slide 10: FY2022 Achievements
FY2022 Achievements 10
Slide 11: In FY 2022 we achieved scale
School Clients Thousands FY2022 ACHIEVEMENTS in FY 2022 we ACHIEVED SCALE In FY 2022 we: Annual Recurring Revenue ✓ Grew the # of schools serviced by 316% (6K to AUD Millions 24K) ✓ Grew the # students services by 300% (3M to 12M) ✓ Grew our K-12 ARR by 330% ($14M to $61M) ✓ Organically grew our ARR
Slide 12: In FY 2022 we achieved leverage
Average Revenue per Student AUD (GAAP) FY2022 ACHIEVEMENTS in FY 2022 we ACHIEVED LEVERAGE In FY 2022 we: Gross Margin % ✓ Grew average revenue / student by 14% After IT, Hardware & Selling Costs ✓ Grew gross margin to 82% (from 61%) 12
Slide 13: In FY 2022 we transformed from a gross to a net new business
FY2022 ACHIEVEMENTS in FY 2022 we TRANSFORMED from a gross to a net new business In FY 2022 we achieved Net Revenue Retention % GROUP massive growth in Net Revenue Retention growing from Qtr 1: 87% to Qtr 4: 132%. 13
Slide 14: FY2022 Financials
FY2022 Financials 14
Slide 15: Summary Profit & Loss
Summary Profit & Loss Key observations ● Includes 10.5 months of Smoothwall trading ● Average of 68% service margin is now above >80% ● Average revenue per student increasing with product expansion, cross & upsells ● Substantial ($6.6 million) of non-recurring cash expenses incurred due to corporate
Slide 16: Summary Balance Sheet
Summary Balance Sheet Key observations ● Cash balance includes the capital raised to acquire Qustodio ● Intangible assets relate to goodwill, software and customer relationship assets acquired with Smoothwall and Cipafilter ● The deferred tax liability balance is a result of the amortisation intangib
Slide 17: Summary Cash Flow
Summary Cash Flow Key observations ● Receipts from customers up 297%. Strong conversion of ARR to revenue to cash, demonstrating the growth in the business. ● Payments to suppliers and employees one off costs such as legal fees on an arbitration dispute that was found in the companies favour ($1.9m)