Firstwave Cloud Technology Ltd. · ASX:FCT
Firstwave Cloud Technology — Q1 FY24 Earnings Presentation
19 slides from Firstwave Cloud Technology's earnings presentation, Oct 26, 2023
Slide 1: Q1 FY24 Shareholder Update
Q1 FY24 Shareholder Update 26 October 2023
Slide 2: Today’s Presenters
Today’s Presenters J O HN GRANT DANNY MAHER IAIN B A R T R A M Chair Managing Director C O O, C F O and and CEO C o m p a ny Secretary 2
Slide 3: Agenda
Agenda 1. Introduction - Chair 2. Q1 Highlights - CEO 3. Q1 Financial Performance - CFO 4. Business Update - CEO 5. Q&A 3
Slide 4: Q1 Highlights
Q1 Highlights Danny Maher – Managing Director and CEO 4
Slide 5: Q1 Highlights
Q1 Highlights Strategic pivot in investments to maximise and accelerate opportunities • Strong sales pipeline for NMIS in US and LATAM where greatest value for FCT lies. • Organisational restructuring of executive, product development and marketing which will lower ongoing costs by $1.5m annually. •
Slide 6: Q1 Financial Performance
Q1 Financial Performance Iain Bartram – CFO 6
Slide 7: Q1 Financial Performance – Revenue and Gross Profit
Q1 Financial Performance – Revenue and Gross Profit △% (A$m) Q4 FY23 Q1 FY24 Q1/Q4 ARR 9.33 10.00 7.2% Revenue 3.10 2.85 -8.1% Gross Profit (pro forma1) 2.45 2.20 -10.0% Gross Profit Margin 79.0% 77.4% -1.6ppts 1 The cost of goods sold used to arrive at Gross Profit is the actual operating cost in t
Slide 8: Q1 Financial Performance – Cash
Q1 Financial Performance – Cash Q1 has seasonally high cash usage (which is normal and internally budgeted). The next two quarters expected to be cashflow breakeven. • Q1 closing cash position $2.95m (Q4: $5.61m): • $2.65m cash used in Q1 • $0.97m payments relating to annual licences • $0.15m in cat
Slide 9: Business Update
Business Update Danny Maher – Managing Director and CEO 9
Slide 10: Company Direction
Company Direction Company’s activities focused where greatest opportunities exist • Service Providers are our main clients (~75% of GP). • Direct to market offerings are important (~25% of GP). • Geographical growth focus is on USA, LATAM and Australia. • We will engage on inbound opportunities from
Slide 11: Saisei Acquisition
Saisei Acquisition Enhances NMIS functionality and growth opportunities • Adds approximately $1 million in annual revenue. • Delivers over 50 new clients – mostly North American telecommunications organisations. • All scrip transaction increased the company’s cash reserves by approximately $200,000.
Slide 12: Strategic Objectives
Strategic Objectives Sales-led culture Grow faster Be capital efficient 12
Slide 13: Sales-led Culture
Sales-led Culture Strategic and organisational restructure focused on converting sales pipeline to revenue • Chief Revenue Officer (CRO) Dino Davanzo extends responsibility to include marketing and product strategy globally. • Product Manager Guy Brunsdon joins reporting to CRO. • Saisei CTO John Ha
Slide 14: Grow faster
Grow faster Continuing to invest in sales and marketing • ARR growth the major focus (growth within Q1 was 7.2%). • Saisei’s General Manager Jerome Fink joins under FirstWave’s CRO to spearhead the growth of Saisei’s technology and cross-selling of NMIS. • Strong presence as platinum Sponsor of the
Slide 15: Be Capital Efficient
Be Capital Efficient Capital investments targeted for strategic leverage • $1.5M annualised savings in personnel restructure. • Total OPEX now (FirstWave + Opmantek + Saisei) is lower than FirstWave’s “standalone”. • Consolidation of CyberCision platforms continues to reduce operational support cost
Slide 16: In Closing
In Closing Cash flow breakeven continues to be the primary focus • The pipeline remains strong. • Sales results are key to achieving cash flow breakeven. A picture tells a thousand words … 16
Slide 17: What we mean by transformation
What we mean by transformation 16 14 12.41 12.49 11.77 12 9.35 10 8.25 7.97 $m 8 8.37 6 4.62 4 2 0 FY20 FY21 FY22 FY23 Cash Usage ($m) Revenue ($m) Cash usage has been derived from combining operating cashflows and payments for intangibles (ie. capitalised development costs) 17 and excluding transac
Slide 18: FirstWave
FirstWave 18
Slide 19: Thank you
Thank you
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