Essensys Plc · LSE:ESYS
Essensys — FY2019 Earnings Presentation
26 slides from Essensys's earnings presentation, 2019
Slide 1: Annual results presentation financial year 2019
annual results presentation financial year 2019 Mark Furness Chief Executive Officer & Founder Alan Pepper Chief Financial Officer The Argyll Club - Park House
Slide 2: Our vision and what we do
our vision what we do to power the worlds largest community of tech driven Our technology replaces manual processes, flexible workspaces operational friction and legacy supply chains with software and process automation. increase reduce efficiency time to value occupier operational experience overhe
Slide 3: Highlights FY19
highlights Revenue Recurring fy 19 +26% +26% EBITDA* EBITDA* margin Excellent progress across business strong maiden set of results +31% 20% Strong performance Key contract Post IPO strategy across all KPIs wins execution Product Geographic Positive market leadership expansion backdrop Landmark - Po
Slide 4: Operational highlights
operational highlights expanded extended enhanced Opportunity in North America essensysCloud reach Future unified platform Sales team Geographic New US Connect in Offshore Accelerated increase coverage data centre mainland Europe dev centre scale up development 4
Slide 5: Market backdrop
market backdrop Industrious - Scottsdale 5
Slide 6: Flexible workspace industry
flexible workspace industry ‘The demand for flexibility is the single biggest threat, and opportunity, to owners of office space' Source: Knight Frank Flex office penetration forecast 25% Penetration (Low Landlords and Forecast) 22.2% commercial real Penetration (Historical) 20% Penetration (High Fo
Slide 7: North America: established growth engine
north america established growth engine Long runway Penetration increasing Still less Structural and generational than 1% 700m 60m square feet square feet Growing rapidly, today in a decade2 adoption accelerating 2020 2030 2040 Canada Toronto 3rd biggest CRE market in North America after New York an
Slide 8: Europe: EMEA and UK +50% of global market
europe EMEA and UK +50% of global market +3,500 Flexible workspace locations excl. WeWork and IWG plc 50 cities UK Europe Brexit uncertainty Mainland Europe strong markets Operator opportunities if property market softens First Connect site now live in Frankfurt essensysCloud London world’s most cov
Slide 9: Asia Pacific
asia pacific 2021 Good progress in Australia with APAC forecast to become world’s 21 Operate locations this year largest flexible workspace market Largest APAC markets Number of centres 2019 Hong Kong 322 Development of full Tokyo 244 market entry strategy Sydney 244 Meticulous Leverage Melbourne 24
Slide 10: Opportunity in a downturn
opportunity in a downturn Quality of operator crucial Disciplined, scale operators with strong balance sheets benefit Improved stock availability Partnership models accelerate We enable delivery of flex model Landmark - Portman Street 10
Slide 11: Defensive characteristics of our business
defensive characteristics of our business Quality of customer base long term established operators with scale Geographic diversity balanced market exposure Structural drivers underpin growth long-term and here to stay Landlord and CRE brands increasing proportion of new customers Scale back investme
Slide 12: Financial review
financial review 12
Slide 13: Financial highlights
financial highlights fy 2019 £20.6m £17.3m Revenue ARR Run Rate £4.2m 79% 114% 61% 70% EBITDA* Recurring Net retention Gross margin ARR Gross margin 26% 27% 31% +3% +1% +2% £19.2m £1.4m 24% 47% Revenue 62% split 38% 167 18 752 144 4 ARR Gross Margin Customers Countries Sites Personnel Offices worldw
Slide 14: Our products
our products 93% 24% 7% 47% Revenue Revenue growth Revenue Revenue growth 77 358 4 68% 118 508 18 86% 24% 38% +2 +1% 1% 4% +5 +3% Customers Sites Countries ARR gross Customers Sites Countries ARR gross margin margin 14
Slide 15: Income statement
income statement Y/E July (£'000) 2018 Audited* 2019 Audited* Revenue Connect recurring 11,911 14,916 Connect non-recurring 3,556 4,290 Operate 977 1,427 Total revenue 16,444 20,633 of which: UK 11,926 12,853 US 4,518 7,780 Cost of sales (6,414) (7,986) Gross profit 10,030 12,647 Gross margin % 61%
Slide 16: Cashflow statement
cashflow statement Y/E July (£'000) 2018 Audited* 2019 Audited* EBITDA 3,222 4,212 Changes in Working Capital (624) (2,186) Cash from Operations 2,598 2,026 Tax & forex (112) (93) Net cash flow from operating activities 2,486 1,933 Investing & financing: Payment of intangible asset development costs
Slide 17: Balance sheet
balance sheet Y/E July (£'000) 2018 Audited* 2019 Audited* Fixed assets: Goodwill 1,263 1,263 Intangible assets 2,411 2,469 Right of use asset 3,751 3,119 Tangible fixed assets 943 1,376 8,368 8,227 Current assets: Trade and other receivables 6,775 6,019 Cash and cash equivalents 882 2,688 7,657 8,7
Slide 18: Key performance indicators
key performance indicators LTV: CAC Customer 39 41 concentration (%) 5.9 : 1 Top 3 Top 5 + Top 10 Rest 9 11 30 117 Net retention Cross-sell 89 116% 100% Customers Sites 392 243 Both 48 422 sites 358 260 191 123 148 2015 2016 2017 2018 2019 2020 contracted The Argyll Club - Nova South 18
Slide 19: Post IPO strategy execution
post ipo strategy execution Germany Canada West Coast office Sales team Increase of Connect fully operational expansion addressable market Strengthen leadership team Time zone cover Already contributing James Shannon Chief Product Officer essensysCloud expansion 2019 Meyer Prinsloo Chief Marketing O
Slide 20: Growth drivers
growth drivers Best ever Connect sites added Strong growth Connect sites added New market year for new for existing entrants customer wins 10 customers 10 07 24 06 06 The Flexible Most flexible Most permanent Workspace Solutions Continuum Coworking Meeting/ Incubator/ Serviced Enterprise Turnkey Sho
Slide 21: Product leadership
product leadership Mobile Localisation essensysCloud Customisable Performance Marketplace unified platform Lower cost Complex Business Model Access AV Print 21
Slide 22: Outlook
outlook 22
Slide 23: Strong foundations
strong foundations Existing customer growth and future plans efficient growth excellent visibility Post year end wins Highly effective Fully developed Net sales & marketing pipeline retention industry US growing Well equipped for future growth opportunities focussed UK customers M&A and new markets
Slide 24: Summary
summary 01 02 03 04 05 Established High quality Efficient Early stages of Deeply market leader customer base profitable adoption embedded growth position Oxford Innovation - Future Space Bristol 24
Slide 25: Thank you
thank you Nominated advisor Financial Public & broker: Relations: N+1 Singer FTI Consulting +44 (0)20 7496 3000 +44 (0)20 3727 1000 essensys.tech The Argyll Club - Park House 25
Slide 26: Disclaimer
disclaimer The material in this presentation has been prepared by essensys plc 11780413 (essensys) and is general background information about essensys’ activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information