Slide 1: QuickFee
QuickFee 28 March 2023 Pay In Full Non-executive Chairman, Dale Smorgon Chief Financial Officer, Simon Yeandle Pay Over Time President – North America, Jennifer Warawa
Slide 2: Agenda
Agenda Who we are and what we do + History, products and markets US in focus + The size of the opportunity and how we grasp it Australia in focus + A mature growing profitable business Outlook and priorities + A known path to profitability
Slide 3: Jennifer Warawa
Jennifer Warawa President, North America Bio Highlights Over 20 years’ experience in the accounting profession with half of that time running her own firm in Canada and the other half in a variety of executive leadership roles at Sage Group PLC (LON: SGE) Most recently Chief Commercial Officer a
Slide 4: Simon Yeandle
Simon Yeandle Chief Financial Officer Bio Highlights Chartered Accountant with 30+ years’ experience in finance, fintech and media industries through Australia, Europe and US Was CFO of leading Australian out-of-home media company oOh!media (ASX: OML) in Sydney for 10 years Most recently CFO a
Slide 5: Who we are, What we do
Who we are What we do
Slide 6: B2B payments and financing for professional services
B2B payments and financing for professional services QuickFee has been helping professional service firms get paid faster in Australia since 2009 and in the US since 2016. QuickFee’s fully integrated online Pay Later Pay Now payment platform and lending solution enables clients of professional servi
Slide 7: QuickFee payment portal
QuickFee payment portal www.quickfee.com 7
Slide 8: QuickFee payment portal
QuickFee payment portal US user experience: easy-to-use online payment portal 24/7 www.quickfee.com 8
Slide 9: Key benefits to professional service firms
Key benefits to professional service firms Get paid faster It shouldn’t take months to get paid for your work. Sax LLP Cut down on collections with payment plans. “Our clients have options and the access to pay through portal Improve cash flow 24/7. I have noticed that because Get paid up front ever
Slide 10: QuickFee – how we make money
QuickFee – how we make money Revenue source QuickFee US QuickFee Australia Pay Now (ACH/EFT) Firm Up to 0.5% of volume No charge Pay now Client 3%-3.5% surcharge 1.5% surcharge (Credit card) Financing Client Up to 11.95% flat fee Up to 11.95% flat fee Q Pay Plan Franchisee n/a 6.75% - 8.75% flat fee
Slide 11: Recent results
Recent results
Slide 12: H1 FY23 highlights
H1 FY23 highlights US Financing (US$M) US Pay Now (US$M) Growth across all key metrics; run-rate cash profitability +23% +30% expected by the end of FY23 10.1 548 8.2 Revenue up 47% to A$6.9m 423 US Pay Now transaction volumes up 30% Strong recovery in lending in Australia H1 FY22 H1 FY23 H1 FY22 H1
Slide 13: H1 FY23 highlights - financials
H1 FY23 highlights - financials Substantial reductions to operating costs, down 23% to Revenue A$M EBITDA A$M A$8.1 million (H1 FY22: $10.5 million) 6.9 6.2 EBITDA improved by 49% ($3.5 million), positioning QuickFee for profitability in FY24 4.7 (3.7) Loan book growth of 29% from December 2021 to (
Slide 14: Liquidity and path to profitability
Liquidity and path to profitability Growing revenue and reduced cost base from December to June Proven TTV year-on-year growth Group TTV seasonality Recurring seasonality: Q4 is traditionally the highest volume quarter Reduced cost base now stable and predictable Proven revenue yield improve
Slide 15: Accelerating growth in the US market
Accelerating growth in the US market
Slide 16: Accelerating growth in the US market
Accelerating growth in the US market People US Pay Now 'Last 12 Months' rolling TTV (US$M) 1086 1022 961 873 806 722 668 Core focus 489 574 391 Opportunity Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 www.quickfee.com 16
Slide 17: US tailwinds to drive long term growth
US tailwinds to drive long term growth QuickFee Connect capitalises on shift to e-invoicing and online payments The top accounting firms in the US are focusing on digital % electronic % accounting firms1 transformation with a big push on moving away from paper- invoices based processes including i
Slide 18: Industry insight
Industry insight “We have to get better at automating the whole environment of billing and that side of it. Things have gotten so easy in people’s personal lives, and the accounting world has been a little stale as it relates to automation.“ Richard McClure, Senior Manager of Operations, Wipfli LLC
Slide 19: Strategic opportunity in US accounting market
Strategic opportunity in US accounting market The total US SAM accounting market US$29.2B revenue is ~US$118B. US$7.7B QuickFee estimates QuickFee US$38B is our core SOM portfolio US$1.1B target market US$8.8B targeting relevant to our opportunity current product TAM suite.1 US$80.0B QuickFee’s curr
Slide 20: US Practice Management integrations
US Practice Management integrations QuickFee integrations broaden our merchant relationships, create greater lifetime value, and expand our current 12% penetration level Current Integrations Planned Integrations 2023 www.quickfee.com 20
Slide 21: US near-term strategic priorities
US near-term strategic priorities 1. Drive organic Drive organic growth through: growth + Sales and new customer acquisition: best practice processes to ensure revenue opportunities are optimised + Customer success: exceptional onboarding and accelerated ‘time to value’ while ensuring organic grow
Slide 22: Sales and customer success growth pillars
Sales and customer success growth pillars Good customer base penetration of our solutions: • 92% have ACH • 92% have card • 73% have QuickFee Finance Increase firm usage of QuickFee Financing. As of December 2022, 13% (US$7.4M) of Increase utilisation of available limits within internal risk paramet
Slide 23: US payments organic growth by tenure
US payments organic growth by tenure Firm adoption grows YOY due to repeat client usage and increased adoption On average, a firm joining QuickFee in… FY18 processed ~ 3.8x more in FY22…four years later FY20 processed ~4.9x more in FY22…two years later FY19 processed ~ 6.2x more in FY22…three
Slide 24: US near term strategic priorities
US near term strategic priorities 2. Build & execute Build and execute strategic partnerships to enable exponential strategic growth partnerships + Embedded technology partners: becoming the preferred payment method + Strategic partners: expanding reach with joint go-to-market activities + Industr
Slide 25: US near term strategic priorities
US near term strategic priorities 3. Narrow and Accelerate cost-effective product development with a narrow focus accelerated product + Connecting with CCH ProSystem fx Practice Management unlocks 65% of development the US accounting market to QuickFee’s suite of payment solutions + Develop Connec
Slide 26: Lending and payments for professional services
Lending and payments for professional services The clients have really appreciated having the [financing] option because it’s allowed them to avoid using the bank to finance. Shawn Fowler | CFO at Frazier & Deeter www.quickfee.com 26
Slide 27: Australia in focus
Australia Pay In Full in focus Pay Over Time
Slide 28: Australia – H1 FY23 performance
Australia – H1 FY23 performance QuickFee well established as a market leader Lending in the Australian market continues to show growing levels of demand, up 19% in H1 FY23 to A$20.6 million (H1 FY22: $17.3 million) QuickFee has the highest Active Customer numbers since pre-COVID, and economic co
Slide 29: Strategy and outlook
Strategy and outlook
Slide 30: Strategic priorities
Strategic priorities Focus on reaching profitability + Manage cash burn / cost base + Driving rationalisation of non-essential costs + Accelerate disciplined and cost-effective product development with a narrow focus Leverage our most valuable assets – our firms + As economic tailwinds create additi
Slide 31: Outlook - strong momentum continuing in CY23
Outlook - strong momentum continuing in CY23 Q3 FY23 to-date (1 January 2023 to 28 February 2023) + US Pay Now TTV up 25% vs. 1 January 2022 to 28 February 2022 * + US Financing TTV up 36% vs. 1 January 2022 to 28 February 2022 * + AU Financing TTV up 69% vs. 1 January 2022 to 28 February 2022 * Gro
Slide 32: Questions
Questions
Slide 33: Contact Details
Contact Details: • Simon Yeandle, CFO p: +61 2 8090 7700 e: simon.yeandle@quickfee.com • Eric Kuret, Investor Relations p: +61 3 9591 8904 e: eric.kuret@automicgroup.com.au www.quickfee.com 33
Slide 34: Disclaimer
Disclaimer The material contained in this document has been prepared readers are cautioned not to place undue reliance on these by QuickFee Limited ACN 624 448 693 (‘company’) and forward-looking statements. No representation is made as contains general information about the company’s to the accurac
Slide 35: Glossary
Glossary ACH Automated Clearing House A type of electronic bank-to-bank payment in the US, equivalent to EFT in Australia Active customer Any customer who has transacted with QuickFee in the relevant period Active merchant Any merchant that has had a transaction with QuickFee in the relevant period