Slide 1: FY24 Investor Presentation
ASX:RDY For personal use only FY24 INVESTOR PRESENTATION 27 August 2024 Marc Washbourne – Co-Founder & CEO Nimesh Shah – Chief Financial Officer
Slide 2: ReadyTech is a vertical SaaS growth company
ReadyTech is a vertical SaaS For personal use only growth company Next generation, mission-critical software Education & Workforce Government & crafted to closely meet Work Pathways Solutions Justice customer needs across human-led sectors FY24 Results 2
Slide 3: Robust revenue growth and solid cash margins
ReadyTech continues to deliver a combination of robust revenue growth and solid cash margins SaaS subscription revenue Total revenue Underlying EBITDA* Underlying Cash EBITDA** $95.4m $113.8m $38.8m $20.2m For personal use only Increase of 13.1% Increase of 10.2% Increase of 11.5% Increase of 20.2%
Slide 4: Enterprise strategy delivering with new contract wins
Major contract wins in FY24 include: Enterprise strategy delivering with new contract wins Upgrade • 22 enterprise contracts of $12.5 For personal use only million combined deal value^ • Enterprise pipeline of new Pilot customers at $31.8 million • Average revenue per new customer in FY24 was $119.1
Slide 5: Enterprise strategy delivering strong and sustainable subscription revenue growth
100.0 90.0 Enterprise 80.0 strategy 70.0 For personal use only delivering strong 60.0 and sustainable $m 50.0 95.4 84.3 subscription 40.0 65.6 revenue growth 30.0 43.3 20.0 10.0 0.0 FY21 FY22 FY23 FY24 Subscription Revenue FY24 Results 5
Slide 6: FY24 financial performance
For personal use only FY24 financial performance FY24 Results
Slide 7: SaaS subscription revenue growth and scale benefits deliver improved margins
Highlights SaaS subscription revenue growth and scale benefits deliver Recurring revenue model and operational leverage drive improved profitability: Underlying EBITDA* of $38.8m, up 11.5% vs PCP improved margins Underlying EBITDA margin within guidance at 34.1% (33.7% in FY23) Cash EBITDA** margin
Slide 8: Strong cash flow and balance sheet support growth initiatives
Strong cash flow and balance sheet support growth initiatives Highlights NET DEBT AS AT 30 JUNE 2024 $29.9m of available funds enables ReadyTech to pursue growth initiatives: $ MILLIONS 30 JUN 24 30 JUN 23 For personal use only $21.9m in cash and equivalents Bank debt 50.0 47.0 $8m headroom in the $
Slide 9: Higher value customer wins and upsell deliver growth in revenue
Higher value customer wins and Highlights upsell deliver growth in revenue Total revenue growth of 10.2% driven by new customer wins and strong net EDUCATION & WORKFORCE GOVERNMENT & revenue retention across segments. TOTAL WORK PATHWAYS SOLUTIONS JUSTICE REVENUE Continued revenue growth across segm
Slide 10: Growth strategy and strategic pillars
Growth For personal use only strategy and strategic pillars FY24 Results
Slide 11: Executing a coherent and disciplined growth strategy across 4 pillars
Acquire enterprise Power of the install customers base as a growth lever ReadyTech is Across all segments, the journey to Capture value and grow NRR across the executing a enterprise is opening large new tech ecosystem of 4,000+ customers For personal use only markets and major contracts. including
Slide 12: Targeting large, high value enterprise customers across all segments
Acquire high value contracts with sizeable tech budgets, starting with break-through customers in key sectors Targeting large, high value Large addressable market and continuing enterprise medium term movement to cloud creates For personal use only huge disruption opportunity customers across all se
Slide 13: Better placed than ever to capitalise on TAFE opportunity
ReadyTech is better placed than ever before to capitalise on TAFE opportunity Market leading TAFE platform For personal use only ReadyTech was the 2024 headline sponsor of the pre-eminent TAFE Conference (hosted by TAFE Directors) Growing conviction in Proven product and Major metro TAFEs have Scala
Slide 14: Higher education opens a large serviceable market ready for change
In addition to TAFE, ReadyTech's breakthrough university win and expansion of higher ed customers and capability opens a large serviceable market ready for change Macro tailwinds “With ReadyTech, we Market size ~$240m* found a partner who is as For personal use only • Legacy technology platforms req
Slide 15: Well positioned for cloud enterprise opportunity in Local Government
Well positioned to execute on "Australian councils that have a defined SaaS migration strategy almost tripled in a major cloud enterprise opportunity year to 37%, up from 13% …" in Local Government 2022 Local Government Digital Transformation Index For personal use only Attractive Strong product Tra
Slide 16: Momentum in enterprise contract wins driving increased deal value
Momentum in enterprise contract wins in the last 2 years driving increased Upgrade (TAFE) deal value For personal use only Ready Skills $140,000 $120,000 Upgrade (TAFE) $100,000 $80,000 $60,000 $40,000 $20,000 $0 FY21 FY22 FY23 FY24 Average revenue per new contract FY24 Results 16
Slide 17: Open ecosystem a major point of competitive difference
ReadyTech’s open ecosystem is a major point of competitive difference versus platform monoliths 3rd Parties ReadyTech Why open and connected? Horizontal systems Customer choice, best-of-breed and For personal use only flexibility Big tech targeting our markets for finance and CRM Many customers are
Slide 18: Power of the install base as a growth lever
Power of the install base Uphold long-term customer Compelling Drive ecosystem value via upsell & as a growth transition to cloud retention cross-sell For personal use only lever Maintain high gross Key driver of NRR to Ecosystem supports our revenue retention (GRR) 106%+ is remaining module and 3rd
Slide 19: Early wins with AI, positioned for strategic benefit
Early wins with AI, now positioned for strategic benefit in the medium to long term ReadyTech's dedicated AI Team is leveraging a shared AI capability to unlock AI-enabled workflows and co-pilots for our customers across every product We have a clear competitive For personal use only and natural Acc
Slide 20: Driving operating leverage through AI
ReadyTech's AI support agent is revolutionising our customer Customer support by efficiently handling help desk queries with a LLM Driving support trained on previous tickets: operating • • Improved response times for superior customer experience. Enhanced support efficiency freeing up our human sup
Slide 21: Enterprise strategy to drive future growth in revenue and margins
Enterprise strategy to drive future growth in revenue and improved margins FY25 outlook • Revenue growth accelerating to low-to-mid double digits. For personal use only • EBITDA margin to be in the range of 34%-35%, excluding the impact of LTIP. • Cash EBITDA* margin to increase by 100bps in FY25. M
Slide 22: Key takeaways
Continued enterprise Higher Education Open and connected Key traction market unlocked strategy Differentiated by open and take-outs In FY24, 22 enterprise contract First university-wide win and connected ecosystem offering wins across all segments acquisition of capability opens customer choice, inn
Slide 23: Disclaimer
Disclaimer This presentation has been prepared by ReadyTech Holdings Limited for professional investors. The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The informa
Slide 24: For more information
For more information: Heidi Lord Automic Group t. +61 404 216 403 e. heidi.lord@automicgroup.com.au About ReadyTech For personal use only ReadyTech is a leading provider of mission-critical SaaS for the education, employment services, workforce management, government and justice sectors. Bringing to