Expert.ai S.p.a. · MIL:EXAI
Expert.ai — TP ICAP Midcap Conference 2021
20 slides from Expert.ai's conference presentation, May 11, 2021
Slide 1: 2020 Results: Setting the stage for accelerated growth
2020 RESULTS Setting the stage for accelerated growth… TP ICAP Midcap Conference May 11-12, 2021
Slide 2: 2020: big changes, strategic execution
2020: big changes, strategic execution STRATEGIC PLAN the reference platform for AI language understanding SaaS US Scale First €100MM in Primary growth driver Through “sales+growth” SaaS-based revenue and ~60% of revenue model and partners in 2024 in 2024 (channel & technology)
Slide 3: Highlights: transformation and growth in all strategic focus areas
Highlights: transformation and growth in all strategic focus areas Strengthened business from US corp. revenue C-level through +39% YoY frontline SaaS revenue Partner revenue +8% YoY +32% YoY Lowlights – overall revenue -8% (€2.7MM) driven by perpetual license decline
Slide 4: Y/Y and Path To Lead Compares
Y/Y and Path To Lead Compares COMMENTARY Year ended 31 Dec 2019 €/m 2020 €/m Δ Total revenues 33.7 30.6 -9% • Revenues decrease in perpetual Total costs (28.2) (32.5) 15% driven mainly by Covid impact in COGS (11.0) (11.8) 8% government Defense & Intelligence S&M (8.6) (11.7) 36% sector G&A (8.6) (8
Slide 5: Strong shift to recurring revenue
Strong shift to recurring revenue COMMENTARY • Subscription plus maintenance Revenue stream FY 2019 % FY 2020 % Var Var % more than half of total revenue Recurring revenues 15.4 46% 15.5 51% 0.1 1% • Subscription revenue Subscription 10.5 31% 11.3 37% 0.8 8% • 89% of total license revenue vs. 76% in
Slide 6: North America growth accelerates...
North America growth accelerates... Revenue NA comprises New customers Subscription comprise +39% YoY 20% 60% 52% and on track Of global revenue to PTL vs. 13% in 2019 of total revenue Of total revenue Major new 22% customer wins 58% Of maintenance Headcount revenue converted growth to subscription
Slide 7: Scale partner growth
Scale partner growth 2020 Highlights Training & Certification • Partner revenue + 32% YoY • YoY results: and 14% of total revenue vs. • Rookies > 2x 9.5% in 2019 • PRO partners > 4x • ~ 80 total deals • Rookie to PRO conversion rate 2x increase • Strong partnerships with key • 85 PRO Certified – abl
Slide 8: From EBITDA to Net Results
From EBITDA to Net Results: COMMENTARY 2020 vs. 2019 Year ended 31 December 2019 €/m 2020 €/m ∆ • Amortization mainly R&D costs (€5.1M EBITDA 5.5 (1.9) (7.4) in 2019 and €5.8M in 2020); net Amortization of Intangible Assets (8.1) (7.3) 0.8 decrease with end of amortization of consolidation differenc
Slide 9: Overall cash position increased €32M over the year
COMMENTARY Cash In Cash Out €60.0 8.7 54.0 -0.6 • Overall cash position €50.0 5.4 0.4 increased €32M over the 28.2 €40 .0 course of the year, driven by growth capital raise and €30.0 loans 21.6 €20.0 • 2020 operating cash burn at -€9.8M €10.0 -9.8 • 2020 end cash position of €54.0M • On track to exp
Slide 10: Building momentum throughout 2020
Building momentum throughout 2020 05-Oct: expert.ai brand change 30-July: €25MM in 17-Nov: Launch of strategic growth Studio & Edge API capital 30 Dec: US wins – 05-Aug: CMO Patra, Aegis, the AP, others 05-Aug: CRO 09-June: Path 2020 Ending H/C: to Lead announced 04-Sept: CPO R&D double, 24-Feb: CEO
Slide 11: Path to Lead
Path to Lead 2020 2021 2022 2023 2024 Setting the Stage Ramping Growth Rule of 40 & Platform Leadership Total revenues 30.6 34 48 68 100 YoY Growth 12.9% 38.4% 43.6% 45.8% EBITDA (5) (0.4) 9 22 Accelerating Platform Release, “Rule of 40” US Focus, Bottoms free cash flow investment up Development gen
Slide 12: 2021 focus
2021 focus Scale First Product Agile Team of Value direct core verticals Leadership Execution Teams Channel/Technology NL API Fast, focused, bold Team above self Sales + Growth model Platform
Slide 13: Sales + growth
Sales + growth COMMENTARY Platform design, build • Sales – top-down vertical focus 200K+ • Growth bottoms up • Expanding to developers seeking deep language understanding capability 70-130K • 600+ NL API registrations • 197 unique users • 1,004 participants in Hackathon 20-40K • 1st paid NLAPI user
Slide 14: State of AI
State of AI Gartner Gary Marcus Simple & Efficient NLP 2021 Strategic Roadmap for The Next Decade in AI Sponsored by GOOG Enterprise AI: Natural Language …knowledge-driven, …recent research efforts Architecture reasoning-based have…failed to identify sources Enterprises must shift from approach…prov
Slide 15: State of AI
State of AI Neurips 2020 Judea Pearl Yeijin Choi Sponsored by AMZN Turan Award winner University of Washington ML comes with several AI systems based only on …we cannot just get there drawbacks, such as the need amassing and blindly by making the tallest for large amounts of processing large volumes
Slide 16: Accuracy on the task / Document fidelity
Each time, a different combination of these factors is key for a project success. Latency when Accuracy on used in production the task Robustness to Explainability / noisy data Interpretability This is often the main KPI considered by data-scientists. Document fidelity Deployability Use case applica
Slide 17: Defining a category
Defining a category… COMMENTARY data unstructured • New category: full platform for NLU • Focus on unstructured language data • End to end platform to power language structured understanding in any application or process across any domain scope data only platform/ workflow
Slide 18: expert.ai platform
expert.ai platform Product Leadership: Vision and 2021
Slide 19: New market messaging
New market messaging expert.ai for the expert enterprise
Slide 20: The Time is Now
The Time is Now Market Unique competitive moment advantage Huge Team opportunity to win 20