Trade Window Holdings Ltd. · NZX:TWL
Trade Window — FY2024 Earnings Presentation
28 slides from Trade Window's earnings presentation, May 30, 2024
Slide 1: FY 2024 Financial Results Investor Presentation
FY 2024 Financial Results Investor Presentation 30 May 2024
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Trade Window Holdings Limited (TradeWindow). All information is current at the date of this presentation, unless stated otherwise. All currency amounts are in NZ dollars unless stated otherwise. Information in this presentation: • is for general info
Slide 3: Agenda
Agenda Financial results overview 4 The opportunity and our advantage 6 Our growth strategy 8 Pathway to profitability 12 Financial overview 15 Outlook and summary 22 AJ Smith Deidre Campbell CEO & Director Chief Financial Officer Investor Presentation 3
Slide 4: FY 24: Growth and resilience
FY 24: Growth and resilience Revenue • A strong growth in revenue and prudent management of capital against a $8,000 $6,753 $6,179 backdrop of challenging economic and capital market conditions. $6,000 $4,920 $5,736 NZ$(000) $4,000 • Trading revenue: $6.2 million, a 26% increase on the $4.9 million
Slide 5: Key performance indicators – FY24
Key performance indicators – FY24 $6.2m $6.3m $1,707 $638 Trading revenue Annual ARPC (Shippers) ARPC (Freight Recurring Forwarders) Revenue Up 26% (Total Revenue Up 21% on FY23 Up 32% on FY23 Up 17% on FY23 $6.8m, up 18%) 54% 513 93% 47% % of expenses Customer R&D and Gross Margin Customers retenti
Slide 6: The trade problem
The trade problem Global trade is constrained by siloed systems which rely on manual paper-based processes to orchestrate the exchange of data A single transaction often • Cost – human intervention at each stage of the supply chain adds cost requires the interaction of more • Risk – high volumes of
Slide 7: A significant global opportunity
A significant global opportunity Movement of goods and financial flows requires the timely movement of accurate information across the supply chain $32B 1 Global supply chain management IT market Market estimated to grow at a CAGR of 14.3% to reach $56B by 2026 1. USD Source: Gartner, Software Marke
Slide 8: Multiple growth levers
Multiple growth levers Capital efficient growth focused on acquiring market positions that can help sustain building a competitive advantage in innovation INNOVATION GREATER USAGE NEW CUSTOMERS ACQUISITION of the Global Trade Platform by existing customers on the platform to accelerate and de-risk g
Slide 9: 513 organisations use our technology
513 organisations use our technology Some of the Australasia’s most prolific shippers and freight forwarders rely on our solutions to run business critical operations Dairy Meat Seafood Horticulture Logistics & other Note, logos don’t necessarily correspond to top customers. Investor Presentation 9
Slide 10: Greater usage
Greater usage Cube provides customers with easy access to a growing list of functionality on-demand Cube’s global trade platform capabilities currently include: • Ocean carrier bookings Key benefits of an on-demand revenue model • Customs clearance • E-commerce Enables customers to expand usage on
Slide 11: Revenue composition
Revenue composition Installation revenue Trading revenues highly predictable with 94% recurring Transactional revenue 4% 11% 2% Service • TradeWindow generates transactional revenue each time a revenue customer either creates or shares a set of trade documents 6% Subscription revenue • Customers pay
Slide 12: Pathway to profitability
Pathway to profitability • Forecast growth supports monthly EBITDA break-even in March 20251 • Predictable recurring revenues from over 5132 customers including some of the world’s most prolific agriculture exporters and freight forwarders • Strong market position with more than 50% of New Zealand’s
Slide 13: Growing from solid foundations
Growing from solid foundations Revenue2 • Delivered a CAGR of 104%1 since the start of 9.0 commercialisation in January 2020 8.0 • Forecasting continued revenue growth in the range 7.0 of 20% to 34% year-on-year for FY25 (1 April 2024 to 31 March 2025) 6.0 5.0 • Trading revenue guidance of $7.3m to
Slide 14: TradeWindow 2.0
TradeWindow 2.0 Pathway to profitability and continued revenue growth Average half year cash burn1 • Monthly EBITDA breakeven expected 0.0 March 2025 -0.1 • Positive monthly cash flow expected -0.2 approximately six months later -0.3 -0.4 • Rationalised cost base includes NZ$M -0.5 reduced headcount
Slide 15: Financial Overview
Financial Overview &B Tradewindow
Slide 16: Financial performance
Financial performance Trading revenue up 26% driven by organic growth Income Statement $000 FY24 FY23 Change $ Change % • Trading revenue up 26% to $6.2m, with sales Trading revenue 6,179 4,920 1,259 26% across all core products Other income 574 816 (242) -30% • Employee costs down 28%, reflecting c
Slide 17: Revenue by type and country
Revenue by type and country Organic growth underpinning revenue increase Revenue by type $000 FY24 FY23 Change % • Organic trading revenue growth of 26%. driven Transactional 2,971 2,332 27% by combination of existing customers taking up complementary solutions, attracting larger Subscription 2,815
Slide 18: Average revenue per customer (per month)
Average revenue per customer (per month) ARPC up for both customer segments Freight FY24 FY23 Change % • Increased monthly Average Revenue Per Customer (ARPC) for Freight – up Subscriber1 customer nos. period end 273 266 3% 17% continue to reflect higher value of Ave Subscriber customer nos. 268 266
Slide 19: Operating expenses / staff numbers
Operating expenses / staff numbers Reflects reorganisation undertaken during the period Personnel & employee expense $000 FY24 FY23 Change $ Change % • Employee costs down 28% reflect cost Cost of goods sold 2,089 1,991 98 5% reductions: Research & Development 3,743 5,590 (1,847) -33% • 58% reductio
Slide 20: Balance sheet
Balance sheet $000s FY24 FY23 Change $ Change % Movements Current Assets 1,192 8,022 (6,830) -85% Reduction in cash reserves and receivables Non-Current Assets 11,583 14,059 (2,926) -20% Intangibles asset amortization and exit of leased asset Total Assets 12,774 22,531 (9,757) -43% Current Liabiliti
Slide 21: Cashflow
Cashflow Successful share issue concluded in April - $2.2million2 $000s FY24 FY23 Change $ Change % • Balance date cash and cash equivalents of Operating Activities $0.2m Cash Received from Customers 6,273 4,857 1,416 29% • Successful capital raise concluded in Apr24 of Cash Paid to Suppliers and Em
Slide 22: FY24 outlook: focused on financial sustainability
FY24 outlook: focused on financial sustainability • TradeWindow is seeing a stabilisation in shipping costs and an easing in inflationary pressures. The productivity benefits offered by TradeWindow solutions continue to resonate with customers. • We are well positioned to benefit from these trends s
Slide 23: Appendix
Appendix &B Tradewindow
Slide 24: Our board of directors
Our board of directors Alasdair MacLeod Phil Norman AJ Smith Kerry Friend Independent Chair Independent Director Executive Director Executive Director and Chief Executive Alasdair joined the board in October Phil joined the board in October 2021 and was appointed Chair at 2021. Officer that time. Fo
Slide 25: Our senior leadership team
Our senior leadership team Highly experienced team with the domain expertise needed to scale globally AJ Smith Kerry Friend Deidre Campbell Founder & CEO Executive Director Chief Financial Officer Entrepreneur with track record for creating Chartered Accountant with three decades Chartered Accountan
Slide 26: Projected financials – key assumptions
Projected financials – key assumptions Forward-looking financial information is inherently subject to uncertainty and judgement. Key assumptions which may have a material risk to our projections include: SPECIFIC GENERAL • The rate and timing of new customer traction • No material change in the curr
Slide 27: Glossary
Glossary Annualised Recurring Revenue (ARR) Customs Broker Shipper The recurring revenue for a specified month annualised. A Customs Broker is a licenced individual who acts as A Shipper is an exporter or importer who requires an intermediary for Shippers and Freight Forwarders in carriers to transp
Slide 28: Thank you
Thank you Investor Contact Andrew Balgarnie Chief Strategy Officer TradeWindow +64 275 594 133 andrew@tradewindow.io