FINEOS Corporation Holdings Plc · ASX:FCL
FINEOS — H1 2022 Earnings Presentation
19 slides from FINEOS's earnings presentation, Feb 24, 2022
Slide 1: 1H22 Results Investor Presentation
For personal use only Financial year ending 31 Dec 2021 (1H22) Results Investor Presentation Michael Kelly CEO & Tom Wall CFO 24th February 2022 © FINEOS Corporation Ltd 1
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by FINEOS Corporation Holdings PLC (Company or FINEOS). By accessing or attending this presentation, you acknowledge that you have read and understood the following statements. NO OFFER OF SECURITIES Nothing in this presentation sh
Slide 3: 1H22 Financial Highlights
1H22 Financial Highlights For personal use only Total Subscription1 Services Revenue of Revenue Revenue €65.4m €25.2m €39.5m 24.4% growth 41.0% growth 18.3% growth on 1H21 on 1H21 on 1H21 Gross Profit EBITDA ARR €42.5m €6.5m €51.8m GP Margin 65.0% EBITDA Margin 9.9% at 31 December ’21 25.6% growth o
Slide 4: 1H22 Operating Highlights
1H22 Operating Highlights For personal use only North America revenue €46.0 million raised Enhanced increases to 80.0% of FINEOS Insight total revenue up from via Institutional launched 70.7% in 1H21 placement and SPP New client win during 1H22 North America focused Supports FINEOS’s growth growth s
Slide 5: 1H22 Financial Performance
1H22 Financial Performance For personal use only % All figures €m 1H22 1H21 Variance Revenue 65.4 52.5 24.4% Software1 : Subscription revenue 25.2 17.9 41.0% Initial License Fees 0.7 1.2 (47.3%) Services 39.5 33.4 18.3% Cost of sales (22.9) (18.7) 22.5% Gross profit 42.5 33.8 25.6% Gross profit marg
Slide 6: 1H22 Revenue Highlights
1H22 Revenue Highlights For personal use only Total revenue of €65.4m, an increase of 24.4% on 1H21 ARR1: €51.8 million Total Revenue €m 70 €65.4 • Total revenue growth driven by cross- €55.8 60 €52.5 selling and up-selling to existing client base, and a new client win. 50 €47.4 Excluding contributi
Slide 7: 1H22 revenue by region
1H22 revenue by region Geographic mix of revenue For personal use only 3.7% 16.3% EMEA Revenue growth in the North American region driven by: APAC - Incremental subscription increases in large clients as North America milestones reached 80.0% - Up-sell of FINEOS licensed products for new lines of bu
Slide 8: R&D Investment
R&D Investment For personal use only FINEOS continues to dedicate significant resources and financial Continued investment in R&D to investment to develop its software through research and development capitalise on the market opportunity €30.0 R&D investment €m ▪ 31.7% of revenue invested in R&D in
Slide 9: Our Clients
Our Clients For personal use only Client revenue concentration decreasing over time as client base of leading insurance carriers expands Length of % of 1H21 % of 1H22 2% 2% Client No. of years relationship revenue revenue 2% 3% Client 1 3 years 13% 24% Client 2 11 years 13% 13% 5% 24% Client 3 3 yea
Slide 10: Our People
Our People For personal use only Employees by function 3% 5% Product Consulting • Average utilisation for the period was 90%, up on prior corresponding period 90% 40% Cloud Ops average of 86% Utilisation1 R&D 44% • Retention rate remains high at over 90% Sales & Marketing 8% General & Admin • FINEOS
Slide 11: Financial Performance
For personal use only Financial Performance © FINEOS Corporation Ltd 11
Slide 12: Statutory Income Statement
Statutory Income Statement For personal use only €m 1H22 1H21 % Change 25.9 19.1 35.6% • 1H22 overall revenue growth of €12.9m on 1H21 Software Services 39.5 33.4 18.3% • Software revenue (including ILF) grew 35.6% on 1H21; within that, total Total revenue 65.4 52.5 24.4% subscription revenue grew b
Slide 13: Operating Expenses
Operating Expenses For personal use only €m 1H22 1H21 % Change Research & development (9.5) (8.4) 13.1% • R&D operating costs are up €1.1m on 1H21 linked mainly to average headcount increasing by 3.7% in 1H22. Sales & marketing (3.1) (2.7) 14.8% • Sales & marketing costs increased €0.4m on 1H21 whic
Slide 14: Financial Position
Financial Position €m 31 December 21 30 June 21 % Change For personal use only Cash at bank 48.6 14.0 247.1% • Cash at bank movement reflects capital raise during 1H22 (€46.0m), Trade receivables 12.8 22.3 (42.6%) ongoing investment in R&D to support implementations and ongoing Unbilled receivables
Slide 15: Statement of Cash Flows
Statement of Cash Flows For personal use only €m 1H22 1H21 % Change Net cash flows from operating activities 1.0 3.3 (69.7%) • Lower net cash inflow from operating activities primarily due to the timing of and increase in contractor payments. Net cash used in investing activities (12.2) (68.3) (82.1
Slide 16: Outlook
For personal use only Outlook © FINEOS Corporation Ltd 16
Slide 17: FINEOS Outlook
FINEOS Outlook1 For personal use only • Total FY22 revenue is expected to be at the lower end of the guidance range previously provided; €125-130m. Importantly, Subscription revenue guidance is reaffirmed with continued growth in the second half expected to deliver an annualised growth rate of appro
Slide 18: The FINEOS Platform
The FINEOS Platform For personal use only FINEOS AdminSuite FINEOS Engage FINEOS Insight PLATFORM CAPABILITIES • Consumer/employer core admin • End-to-end integrated components • Configurable SaaS platform • Digital friendly process model • Comprehensive API support • Secure, stable and scalable • C
Slide 19: For personal use only
For personal use only © FINEOS Corporation Ltd 19
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