Slide 1: H1 FY23 Results
16 February 2023 H1 FY23 Results Chairman, Dale Smorgon Chief Financial Officer, Simon Yeandle President, North America, Jennifer Warawa
Slide 2: H1 FY23 Highlights
H1 FY23 Highlights US Financing (US$M) US Pay Now (US$M) Growth across all key metrics; run-rate cash profitability +23% +30% expected by the end of FY23 10.1 548 8.2 Revenue up 47% to A$6.9m 423 US Pay Now transaction volumes up 30% Strong recovery in lending in Australia H1 FY22 H1 FY23 H1 FY22 H1
Slide 3: H1 FY23 Highlights - Financials
H1 FY23 Highlights - Financials Revenue growth of 47% driven by strong growth across all key Revenue A$M EBITDA A$M metrics for Pay Now and Financing 6.9 Substantial reductions to operating costs, down 23% to 6.2 A$8.1 million (H1 FY22: $10.5 million) 4.7 (3.7) EBITDA improved by 49% ($3.5 million),
Slide 4: Liquidity and path to profitability
Liquidity and path to profitability Growing revenue and reduced cost base from December to June Proven TTV year-on-year growth Group TTV seasonality Recurring seasonality: Q4 is traditionally the highest volume quarter Reduced cost base now stable and predictable Proven revenue yield improve
Slide 5: H1 FY23 Operational update
H1 FY23 Operational update
Slide 6: United States
United States Fast-growing volumes within a low credit risk business model Pay Now Total Transaction Volumes (TTV) grew 30% and US Financing TTV grew 23%, driven by continued growth in new firms and their clients using QuickFee’s products + Active Customers in the US grew 16% to 134000; strongest
Slide 7: Australia
Australia QuickFee well established as a market leader Lending in the Australian market continues to show growing levels of demand, up 19% in H1 FY23 to A$20.6 million (H1 FY22: $17.3 million) QuickFee has the highest Active Customer numbers since pre-COVID, and economic conditions are driving i
Slide 8: Accelerating growth in the US market
Accelerating growth in the US market
Slide 9: Jennifer Warawa, President, North America
Jennifer Warara President, North America Bio Highlights Over 20 years’ experience in the accounting profession with half of that time running her own firm in Canada and the other half in a variety of executive leadership roles at Sage Group PLC (LON: SGE) Most recently Chief Commercial Officer a
Slide 10: Accelerating growth in the US market
Accelerating growth in the US market People US Pay Now 'Last 12 Months' rolling TTV (US$M) 1086 1022 961 873 806 722 668 Core focus 574 489 391 Opportunity Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 www.quickfee.com 10
Slide 11: US Professional services – strategic plans
US Professional services – strategic plans 1. Drive organic Drive organic growth through: growth + Sales and new customer acquisition: best practice processes to ensure revenue opportunities are optimised + Customer success: exceptional onboarding and ensuring organic growth through cross-sell and
Slide 12: US Professional services – strategic plans
US Professional services – strategic plans 2. Build & execute Build and execute strategic partnerships to enable exponential strategic growth partnerships + Embedded technology partners: becoming the preferred payment method + Strategic partners: expanding reach in chosen verticals + Industry part
Slide 13: US Professional services – strategic plans
US Professional services – strategic plans 3. Narrow and Accelerate cost-effective product development with a narrow focus accelerated product + Connecting with CCH ProSystem fx Practice Management unlocks 65% of development the US accounting market to QuickFee’s suite of payment solutions + Devel
Slide 14: H1 FY23 Financials
H1 FY23 Financials
Slide 15: Group Profit and Loss
Group Profit and Loss Growing revenue & reducing operating A#039;M H1 FY23 H1 FY22 $+/- %+/- costs Interest revenue 3.3 2.4 +0.9 +38% Total revenue up 47% to A$6.9 million; reflecting increased TTV and increased Interest expense (1.1) (0.3) -0.8 -267% revenue yields across all products in both Austra
Slide 16: Cash Flow and Liquidity
Cash Flow and Liquidity QuickFee has $10 million in funds available; H1 H1 A#039;M FY23 FY22 $+/- %+/- $2.4 million in cash and can draw a further $7.6 million Net cash outflow from operating activities (4.9) (5.8) +0.9 +16% Net cash outflow from loan book / merchant funding (4.6) (4.6) - - QuickFee’
Slide 17: Group Balance Sheet
Group Balance Sheet 31 Dec 30 June Well-funded balance sheet A#039;M 2022 2022 $+/- %+/- Cash and cash equivalents 2.4 8.2 -5.8 -71% Loan book growth of 10% to A$36.2 million from June 2022, reflecting the Loan receivables (current) 35.4 32.7 +2.7 +8% increase in Financing TTV throughout the period,
Slide 18: Outlook
Outlook
Slide 19: Strategic priorities and outlook
Strategic priorities and outlook Continuing tailwinds driving growth in both US Pay Now and Financing + Prevailing economic conditions increasing demand for lending + Primary focus is sales and marketing into the professional services market + New leadership has identified many new opportunities wit
Slide 20: Questions
Questions
Slide 21: Appendix
Appendix
Slide 22: Historical metrics – US
Historical metrics – US FY20 FY21 FY22 FY23 Total Transaction Volumes (TTV) Q1 Q2 H1 Q3 Q4 H2 FY20 Q1 Q2 H1 Q3 Q4 H2 FY21 Q1 Q2 H1 Q3 Q4 H2 FY22 Q1 Q2 H1 Professional Services US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M Pay
Slide 23: Historical metrics – AU
Historical metrics – AU FY20 FY21 FY22 FY23 Total Transaction Volumes (TTV) Q1 Q2 H1 Q3 Q4 H2 FY20 Q1 Q2 H1 Q3 Q4 H2 FY21 Q1 Q2 H1 Q3 Q4 H2 FY22 Q1 Q2 H1 Professional Services A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M Pay Now EFT 3.1 3.4 6.5 2.8
Slide 24: US product profitability
US product profitability ACH Card Financing BNPL Total US$000s except volume H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 Volume US$ M 452 342 96 81 10.1 8.2 1.2 1.1 559.3 432.3 Financing revenue (interest) - - - - 715 477 90 51 805 528 Payments and other revenue 1
Slide 25: AU product profitability
AU product profitability EFT & card Financing BNPL Total A$000s except volume H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 Volume A$ M 29 26 20.6 17.3 0.8 0.4 50.4 43.7 Financing revenue (interest) - - 2,089 1,663 29 15 2,118 1,678 Payments and other revenue 353 310 239 179 5 5 59
Slide 26: Glossary
Glossary ACH Automated Clearing House A type of electronic bank-to-bank payment in the US, equivalent to EFT in Australia Active customer Any customer who has transacted with QuickFee in the relevant period Active merchant Any merchant that has had a transaction with QuickFee in the relevant period
Slide 27: Disclaimer
Disclaimer The material contained in this document has been prepared readers are cautioned not to place undue reliance on these by QuickFee Limited ACN 624 448 693 (‘company’) and forward-looking statements. No representation is made as contains general information about the company’s to the accurac
Slide 28: Contact Details
Contact Details: • Simon Yeandle, CFO p: +61 2 8090 7700 e: simon.yeandle@quickfee.com • Eric Kuret, Investor Relations p: +61 3 9591 8904 e: eric.kuret@automicgroup.com.au www.quickfee.com 28