Integrated Research Limited · ASX:IRI
Integrated Research — H1 FY2019 Earnings Presentation
22 slides from Integrated Research's earnings presentation, Feb 14, 2019
Slide 1: FY2019 Half Year Financial Results
For personal use only Integrated Research Limited (IRI) FY2019 Half Year Financial Results February 2019 Peter Adams, Interim CEO 6 of the 9 of the Top 125+ of the Top 10 10 Fortune 500 Automotive US banks Companies 6 of the 7 of the 10 Top 10 biggest Fin Services Telcos Companies Globally Creating
Slide 2: IR Capabilities
WHO WHAT WE ARE WE DO IR Capabilities For personal use only IR is the leading global provider of user Prognosis provides best in class experience and performance performance management across management solutions for Unified Unified Communications, Contact Communications, Payments and IT Centres and
Slide 3: Key Financial Metrics
Key Financial Metrics Solid results with investments in place to drive sustainable long term performance For personal use only Licence fees up 22% to 1HFY2019 Interim NPAT Performance $M 15% $31.3M CGR Revenue up 10% to $50.3 million EBITDA up 14% to $20.8 million NPAT up 26% to $11.7 million Operat
Slide 4: Operational Highlights
Operational Highlights Delivering on strategies to build capability, product development and expand global customer base For personal use only Payments Growth up 144% Strong licence growth through renewal and capacity expansion Europe Growth up 14% Re-organised; successful large deal closure Unified
Slide 5: Prognosis Solution Components
Prognosis Solution Components Insightful & Effective Value & Speed Flexible & Secure For personal use only Proactive end-to-end insights Fast time to value with a Cloud enabled with secure across multi-vendor ecosystems small footprint and rapid access for visibility anytime that drives effective co
Slide 6: Key Technology Partners
Key Technology Partners IR is the only certified vendor to provide proprietary software on all 3 major UC Platforms: Cisco, Skype for Business and Avaya For personal use only Used in Managed Relationship Partner Relationship Certification Cloud Service Initiatives Momentum • Microsoft certified solu
Slide 7: Blue Chip Customer Base
Blue Chip Customer Base Quality customer base is a testament to the superiority of IR’s solutions For personal use only ✓ 1,200+ enterprise customers globally ✓ 125+ of the Fortune 500 customers ✓ Wide range of industries, including Financial Services, Telecom, Insurance, Healthcare, Utilities, Reta
Slide 8: High Quality Revenues and Retention
High Quality Revenues and Retention Diversified contribution and risk spread For personal use only Licence fees by contract length 70% 60% 50% • Contracts with multiyear duration 40% • Retention rate: >95% 30% • Top 10 customers 20% account for one-third 10% of total revenue 0% FY17 1H FY18 1H FY19
Slide 9: Results Summary
Results Summary Improved margins and stronger cashflow For personal use only Six months ending Dec 2018 Dec 2017 % change A$000 A$000 Total revenue 50,335 45,702 10% EBITDA 20,766 18,274 14% EBITDA margin 42% 40% EBIT 15,309 12,852 19% EBIT margin 31% 28% Profit after tax 11,717 9,266 26% Profit aft
Slide 10: Key Performance Metrics
Key Performance Metrics For personal use only Term recurring revenue 87% of revenue is recurring New customers 20 new customers added over the half Pipeline growth Opening pipeline is higher than pcp Retention rate Annual maintenance retention rate is 95% 10
Slide 11: Revenue Analysis - Geographic
Revenue Analysis - Geographic The return of Europe For personal use only Americas Revenue (US$'000) Europe Revenue (£'000) Asia Pacific Revenue (A$'000) 8% 6,000 13% 8,000 30,000 CGR CGR 7% CGR 5,000 7,000 25,000 6,000 20,000 4,000 5,000 15,000 3,000 4,000 2,000 3,000 10,000 2,000 5,000 1,000 1,000
Slide 12: Revenue Analysis - Product
Revenue Analysis - Product Payments boost revenues For personal use only Unified Communications $'000 Payments $'000 Infrastructure $'000 17% CGR 26% 30,000 10,000 CGR 15,000 1% CGR 25,000 8,000 20,000 10,000 6,000 15,000 4,000 5,000 10,000 5,000 2,000 0 0 0 2013 2014 2015 2016 2017 2018 2019 2013 2
Slide 13: Balance Sheet
Balance Sheet Well positioned to fund growth Abbreviated For personal use only A$000 Dec-18 Jun-18 Dec-17 Cash and cash equivalents 9,601 11,238 9,605 Strong balance sheet – no debt Trade and other receivables 70,642 71,078 66,826 Intangible Assets 22,545 21,938 20,748 Trade receivables All Other As
Slide 14: Cashflow
Cashflow Improved cash generation from operations For personal use only Dec-18 Dec-17 Change Cash flows from operating activities Cash receipts from customers ex debtor factoring 38,835 32,208 21% Cash receipts from debtor factoring 2,781 6,846 (59%) Cash receipts from customers 41,616 39,054 7% Cas
Slide 15: 2019 Outlook
2019 Outlook Well placed to deliver sustainable growth with execution priorities For personal use only Call Recording Service Providers SolutionsPlus Assurance (“CRA”) Payments Revenue trending Good Developing Good Excellent Pipeline Good Gathering Good Good momentum Historic pipeline Good Developin
Slide 16: Appendix
For personal use only Appendix 16
Slide 17: Company Summary
Company Summary For personal use only Business Highlights Key Differentiators Founded: 1988 1. #1 Vendor in User Experience & Performance 1 Management for UC, Payments & Infrastructure Headquarters: Sydney Employees: ~260 2. Provide real-time clarity & insight into critical 2018 Revenue: $91M (95% o
Slide 18: Interim Financial Track Record
Interim Financial Track Record For personal use only Six Months ending (A$M): Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 10 period CGR 14% Licence fees 9.1 10.6 12.3 10.8 13.8 19.7 19.5 23.9 25.6 31.3 10% Revenue 18.5 20.5 22.1 21.5 26.2 33.5 39.4 43.3 45.7 50.3 17% EBIT 2
Slide 19: Revenue Model by Segment
Revenue Model by Segment For personal use only UC & CC Payments Infrastructure Term Recurring License Fees Term Recurring Term Recurring Perpetual Maintenance Fees Recurring Recurring Recurring SaaS Fees Recurring N/A N/A Testing Solutions Part Recurring N/A N/A Consulting Non-Recurring Term rec
Slide 20: Multiple Channels to Market
Multiple Channels to Market Customer “High Touch” Model For personal use only Sales Network Direct: Global coverage with Fortune 500 Distribution: Direct Sales Indirect Sales Service Provider Sales Alliance Partners Distribution Resellers Service Providers Customers 20
Slide 21: Cisco HCS-G (FedRAMP) Questions and Answers
Cisco HCS-G (FedRAMP) Questions and Answers Question Answer References: For personal use only What is FedRAMP? The Federal Risk and Authorization Management Program (FedRAMP) is a government-wide program that provides a standardized approach to security assessment, authorization, and continuous moni
Slide 22: Investment Summary
Investment Summary Driving sustainable long term performance For personal use only Deep customer and Clear growth strategies Market leading Partnerships with all technology expertise - capability, product proprietary software - three major UC and execution development and Prognosis platforms capabil
Integrated Research — H1 FY2019 Earnings Presentation on 6ix