Slide 1: FY24 Investor Presentation
FY24 Investor Presentation 28 August 2024 Mach7 Technologies | ASX: M7T
Slide 2: Mach7 develops image management and viewing solutions
Mach7 Technologies develops innovative image management and viewing solutions that form the core of an integrated enterprise imaging ecosystem.
Slide 3: Agenda
Agenda 1 Business Overview Mike Lampron | CEO 2 FY24 Results 3 Strategy & Outlook Dyan O’Herne | CFO 4 Appendix Unless otherwise stated, all dollar values are in Australian dollars (AUD) 3
Slide 4: Business Overview
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Slide 5: Our Business
Our Business Our Purpose Our Offering To enable exceptional Innovative data patient care by storage, management empowering and image viewing healthcare providers solutions for the to make more healthcare enterprise. informed decisions. 5
Slide 6: Our Value Proposition
Our Value Proposition Global Company with a Personal Touch Lasting Technology Built for the Entire Enterprise A future-proof solution built on a modern A software-only solution designed for the whole technology stack that allows customers to grow, healthcare organisation. adapt and innovate. Persona
Slide 7: Our Solution: Enterprise Imaging Platform
Our Solution: Enterprise Imaging Platform Enterprise Enterprise Workflow Data Management Diagnostic Viewing Orchestration Vendor Neutral Archive eUnity Enterprise Diagnostic Viewer Communication Workflow Engine ✓ Consolidate ALL images across the enterprise ✓ Zero footprint HTML-5 viewer; 100% fidel
Slide 8: FY24 Results
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Slide 9: FY24 in Review
FY24 in Review Positioning Mach7 for long-term growth 1 Successfully navigated subscription transition with strong growth in high quality recurring revenue while delivering positive operating cashflow 2 Record sales orders of A$61.3M and successful completion of large renewal program creating founda
Slide 10: A Transformational Year
A Transformational Year Building a foundational book of business 80 19 Number of Number of contract wins renewals 32 A$50.9M Number of Forward revenue implementations FY24 secured book of business completed over 5 years 10
Slide 11: FY24 Financial Highlights
FY24 Financial Highlights A$29.1M A$21.1M A$27.9M A$22.0M Revenue Recurring Revenue3 CARR4 ARR5 Run Rate -A$0.9M or -3% on PCP1 +A$4.7M or +29% on PCP +A$7.3M or 35% on PCP +A$5.0M or 29% on PCP In line with revised 72% of total revenue FY24 Guidance2 (FY23: 54%) 72% of opex (FY23: 63%) A$61.3M -A$2
Slide 12: Recurring revenue as % total revenue
Marginal revenue decline due to subscription transition Recurring revenue up 29% on pcp Recurring revenue now 72% of total revenue 30 80% • Revenue of A$29.1M, down 3% on pcp (FY23: Recurring revenue as % total revenue 72% A$30.0M) due to short-term impact from 70% 25 subscription transition 60% Tot
Slide 13: Strong growth in recurring revenue in FY24
Strong growth in recurring revenue in FY24 Key drivers of revenue growth reflect subscription transition • Marginal decline in FY24 revenue (-A$0.9M) with growth in Recurring Revenue and Professional Services Revenue almost offsetting the decline in Capital Software Licence revenue (-A$7.1M) • Recur
Slide 14: CARR leading indicator of future recurring revenue
CARR leading indicator of future recurring revenue ARR recognition begins when FPU achieved, usually 12-18 months after contract signing 30 28 • Contracted Annual Recurring Revenue (CARR) of A$27.9M, A$5.9M up 35% on 30 June 2023 (A$20.6M) yet to 25 reach FPU 22 • Annual Recurring Revenue (ARR) Run
Slide 15: Record sales orders
Record sales orders Subscription sales dominate reflecting changing customer preference Sales Order Composition (TCV)1 • Record sales orders of A$61.3M (TCV), up 52% on FY23 and 60 in line with revised FY24 Guidance2 • Annual Recurring Revenue (ARR)-type Sales of 50 49% 58% A$50.9M (83% of sales ord
Slide 16: Large renewal program completed
Large renewal program completed Builds foundational book of business for the medium term Sales Order by Type (TCV)1 • New customer sales orders of A$13.2M (22% of sales orders) 60 includes Veterans Health Administration National Teleradiology Program (Phase I) which expands Mach7’s footprint into th
Slide 17: Strong recurring revenue growth and cost discipline drive positive operating cash flow
Strong recurring revenue growth and cost discipline drive positive operating cash flow Achieved guidance for sales orders, revenue, opex growth and positive cash flow • Revenue decline of 3% due to short-term impact from delay in revenue recognition associated with increase in Subscription Earnings
Slide 18: Strong financial position with no debt
Strong financial position with no debt Cash balance at highest level in 4 years despite subscription transition • Cash on hand of A$26.2M at 30 June 2024 and no Closing Cash Balance debt, up 12% on 30 June 2023 (A$23.4M) 25 • Total receipts from customers of A$34.9M, up 42% in FY24 (FY23: A$24.6M) •
Slide 19: Strategy & Outlook
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Slide 20: Our Business Objectives
Our Business Objectives Invest in our Provide Grow recurring people, solutions that Leverage our revenue and Drive financial processes and compete at the capability to expand into new KPIs with products to enterprise level innovate and revenue streams an eye on further in selected create new for pro
Slide 21: Changing medical imaging landscape plays to our strengths
Changing medical imaging landscape plays to our strengths Decisions increasingly Fragmented imaging Continuing shift Consolidation of driven by C-suite market with legacy towards ambulatory healthcare providers focused on enterprise modality vendors from acute care and demand for efficiency and cost
Slide 22: Leverage strategic pillars to drive next phase of growth
Leverage strategic pillars to drive next phase of growth Product innovation Customer Intimacy Cloud Customer-centric enablement focus Service and Amazing customer Supportability support system Add value by Integration and addressing Interoperability growing use cases 22
Slide 23: Outlook
Outlook • Focus in FY25 will be on net new logos and conversion of a large and diverse pipeline of opportunities • Invest in product innovation to reflect a customer-centric mindset and increase the scalability of the business • Investment in people, process and tools in FY25 is expected to be in th
Slide 24: Appendix
Appendix
Slide 25: Shift to Subscription Model Accelerates
Shift to Subscription Model Accelerates Licence revenue recognition for Subscription is initially lower than Capital but delivers greater total value and revenue predictability Equivalent Contracts: Capital Licence Subscription Licence Revenue Contribution Contribution Activity/ Timing Fee Type Reve
Slide 26: Contact Us
Contact Us Investor Relations, Mach7 Françoise Dixon +61 (0) 412 292 977 ir@mach7t.com Registered Office: Level 4 | 100 Albert Road, South Melbourne, VIC This document was authorised for release to the ASX by Mike Lampron, Managing Director and Chief Executive Officer Mach7 Technologies
Slide 27: Disclaimer
Disclaimer “Forward looking” statements Summary of information: This presentation contains general and background information about Mach7 Risks: An investment in M7T securities is subject to investment and other known and unknown risks, Technologies Limited (“M7T”) activities current as at the date