Readytech Holdings Ltd. · ASX:RDY
Readytech — H1 FY2020 Earnings Presentation
27 slides from Readytech's earnings presentation, Feb 20, 2020
Slide 1: 2020 Half Year Results Presentation
For personal use only ReadyTech Holdings Limited ABN 25 632 137 216 20 February 2020 2020 Half Year Results Presentation ReadyTech Holdings Limited (ASX: RDY) (ReadyTech) attaches a copy of the 2020 Half Year Results Presentation to be made at ReadyTech’s investor briefings today. This announcement
Slide 2: Results Presentation 1H FY20
For personal use only RESULTS PRESENTATION 1H FY20 Marc Washbourne – CEO I Nimesh Shah - CFO ASX: RDY 20th Feb 2020 www.readytech.com.au www.readytech.com.au
Slide 3: Key Operational and Financial Metrics
Key Operational and Financial Metrics For personal use only PRO-FORMA *UNDERLYING *UNDERLYING 1H REVENUE EBITDA NPATA FY20 $19.2 m $8.3 m $4.3 m VS 1H FY19: +19.9% VS 1H FY19: +35.9% VS 1H FY19: +73.8% FY19 Organic: +13.2% FY19 Organic: +28.9% OPERATING AVERAGE CASH FLOW CLIENT CLTV* REVENUE PER REV
Slide 4: Operational Highlights
Operational Highlights Delivering results across all ReadyTech strategic priorities For personal use only Strategic priorities for ReadyTech 1 2 3 4 5 6 Continued R&D Execute on Attract new and Grow ARPC via Drive upsell and investment in product new offerings and cross-sell across strategic and Ret
Slide 5: 1H FY20 - Continued Strong Revenue and Earnings Growth
1H FY20 - Continued Strong Revenue and Earnings Growth (including acquisitions) For personal use only Highlights $ MILLIONS 1H FY20 1H FY19^ % Change HoH Continued strong revenue growth across both Education and EDUCATION REVENUE 10.7 9.7 11.0% Employment segments. EMPLOYMENT REVENUE 8.5 6.3 33.5% O
Slide 6: Growth & Product Strategy
For personal use only GROWTH & PRODUCT STRATEGY ASX: RDY
Slide 7: ReadyTech – What We Do
ReadyTech – What We Do For personal use only Mission-critical SaaS for Managing People Managing the Student and Employee Lifecycle Increase Subscription / Licence Revenue Compliance / Regulation Regulatory Reporting, Statutory Obligations Productivity & Automation Value Added Services Business Intel
Slide 8: Student Management Systems (Education)
Student Management Systems (Education) For personal use only ReadyTech provides mission-critical student management systems (SMS) which are at the core of modern tertiary education institutions and then seeks to drive key performance outcomes such as improved student experience and graduation rates.
Slide 9: The Next Generation Student Management System
The Next Generation Student Management System Major opportunity to win larger, complex education institutions For personal use only Smarts ENTERPRISE HIGHER ED MARKET • APIs CONCEPTS • Automation & Workflows TAFE, UNIVERSITY AND PRIVATE PROVIDERS • End to End = 'Acquisition to Alumni' • Behavioural
Slide 10: ReadyTech Offerings across the Tertiary Education Sector
ReadyTech Offerings across the Tertiary Education Sector For personal use only ReadyTech provides a range of market-leading technology solutions across the tertiary education sector including mission-critical Student Management Systems (SMS). Customers Include: Enterprise SaaS Universities Skills As
Slide 11: ReadyTech Education Market Opportunity
ReadyTech Education Market Opportunity Australian tertiary education and For personal use only ReadyTech has made strong progress penetrating into new segments including higher training industry ICT expenditure education, TAFE, government and international education including CRICOS and ELICOS. $1.8
Slide 12: Payroll and HR Administration to Payroll & Workforce Management
Payroll and HR Administration to Payroll & Workforce Management For personal use only ReadyTech is at the core of the employment software ecosystem offering mission-critical Payroll and Workforce Management solutions THE MODERN EMPLOYER RECRUITMENT INDUCTIONS & CREDENTIALS EMPLOYEE ONBOARDING WORKFL
Slide 13: ReadyTech Offerings cover the Employment Sector
ReadyTech Offerings cover the Employment Sector For personal use only ReadyTech provides Payroll & HR administration technology and managed services across the employment market and increasingly targets higher value customers. Customers Include: SOFTWARE Enterprise 2,500+ PAYROLL / WORKFORCE MANAGEM
Slide 14: Employment - Product capability of Workforce Management
Employment - Product capability of Workforce Management For personal use only Strategic Rationale State of the art, advanced cloud and Zambion complementary capability acquisition app based Workforce (Oct 2019) to enhance ReadyTech’s employment product offering. Management including: Strong New Zeal
Slide 15: Growth Initiatives
Growth Initiatives ReadyTech enjoys a range of opportunities to maintain strong rates of growth into the future. For personal use only Technology Talent Existing Customers New Customers M&A/Partnerships Continued investment in Grow APRC with subscription SaaS products – R&D spend Invest in new talen
Slide 16: Group Financial Results
For personal use only GROUP FINANCIAL RESULTS ASX: RDY
Slide 17: Strong Revenue and Earnings Growth
Strong Revenue and Earnings Growth For personal use only $ MILLIONS Highlights % Change HOH 1H FY20 1H FY19^ Strong organic revenue growth from new client wins and Subscription and licence revenue 16.8 14.4 16.5% cross-selling to existing clients. Implementation, training and other revenue 2.5 1.7 5
Slide 18: Education – Continued Top Line Growth
Education – Continued Top Line Growth For personal use only $ MILLIONS 1H FY20 1H FY19 HoH$ Growth HoH % Growth Education Revenue 10.7 9.7 1.1 11.0.% Education EBITDA 4.8 3.7 1.1 30.0% EBITDA Margin % 45% 38% N/A 18.0% Highlights Strong client growth with the average spend of education Benefit of re
Slide 19: Employment – Revenue and Earnings Uplift
Employment – Revenue and Earnings Uplift For personal use only $ MILLIONS 1H FY20 1H FY19 HoH $ Growth HoH % Growth Employment Revenue 8.5 6.3 2.1 35.0% Employment EBITDA 4.1 3.2 0.9 29.0% EBITDA Margin % 49% 50% N/A -1.0% *Impact of Acquisitions - Organic Revenue HoH Growth 17% & EBITDA HoH Growth
Slide 20: Strong Cash Flow Conversion Maintained
Strong Cash Flow Conversion Maintained For personal use only Highlights $ MILLIONS PRO FORMA FINANCIALS Changes in net working capital between 1H FY20 & 1H FY19 Negative working capital impacted by shift in annual 1H FY20 1H FY19 1H FY18 subscription payments of some key JobReady clients from Q2 FY2
Slide 21: Group Financial Highlights – Capital Structure
Group Financial Highlights – Capital Structure For personal use only Highlights PRO FORMA NET DEBT AS AT 31 DECEMBER 2019 $ Millions Facility Committed New debt facility in place post listing > Total facility size $27.5M – Fully drawn at IPO Facility A 21.5 Facility A -$21.5M and 3 year amortising n
Slide 22: Outlook
Outlook For personal use only ASX: RDY OUTLOOK RDY expects a FY20 total revenue growth rate of approximately 20% with an organic revenue growth rate in the early double digits. The Company expects the underlying FY20 EBITDA margin to be approximately 40%. ReadyTech FY19 results - P XX
Slide 23: Appendix
For personal use only APPENDIX
Slide 24: Board of Directors
Board of Directors Director Experience Marc Washbourne • See management slide Tony Faure • Currently the Chairman of ASX-listed oOh!media, data intelligence platform PredictHQ and start-up accelerator Polleniz Board of Directors ReadyTech’s Board of Directors bring together deep industry, technologi
Slide 25: Management Team
Management Team For personal use only Senior management Marc Washbourne Nimesh Shah CEO CFO • Marc Washbourne was one of the founders of the JobReady • Nimesh has been the CFO of ReadyTech since August 2017 business and was appointed CEO in 2006 • Nimesh has over 20 years’ experience as an executive
Slide 26: Glossary
GLOSSARY For personal use only A2E Assess2Educate, a ReadyTech product ACV Annual contract value ARPC Average revenue per customer CAC Customer acquisition cost CAGR Compounded annual growth rate CLTV Customer lifetime value CRICOS Commonwealth Register of Institutions and Courses for Overseas Stude
Slide 27: For personal use only
For personal use only ASX: RDY