Aptitude Software Group Plc · LSE:APTD
Aptitude Software — FY2023 Earnings Presentation
28 slides from Aptitude Software's earnings presentation, Mar 21, 2024
Slide 1: Final Results for the year ended 31 December 2023
21 March 2024 Final Results for the year ended 31 December 2023 1
Slide 2: Agenda
Agenda 01 Executive Summary Alex Curran | CEO 02 Financial Highlights Mike Johns | CEO Alex Curran 03 Key Themes & Shift CEO Alex Curran | CEO 04 Realignment of the Organisation Alex Curran | CEO 05 The Opportunity Alex Curran | CEO Mike Johns 06 Partners CFO Alex Curran | CEO 07 Summary Alex Curran
Slide 3: Executive summary
Executive summary High growth New business Outcomes of Experience opportunity strategy approach • Future growth is underpinned by • Our experience in the CFO office • Shifting to partner led platform • Expansion of go-to-market Fynapse & key partners provides a strong foundation organisation with op
Slide 4: Financials
Financials 4
Slide 5: Financial Highlights
Financial Highlights £51.1m (2022: £50.2m)2 1 Total ARR Execution against the Fynapse opportunity from a robust platform Strong revenue visibility 3 Heritage ARR provides credibility in the office of the CFO and conversion opportunity with Fynapse £9.7m Adjusted (2022: £7.5m) Operating Profit Delive
Slide 6: Financial Highlights
Financial Highlights 71% (2022: 68%) Proportion of Recurring Revenue Targeted profitable growth through revenue expansion and carefully managed cost base Improving revenue quality 24% Proportion of Revenue (2022: 23%) invested in R&D Increasingly recurring revenue provides stronger margins, expected
Slide 7: Short term outlook
Short term outlook Short term revenue reduction as business refocuses around Fynapse opportunity Revenue reduction expected in 2024 driven by: • Macroeconomic conditions resulting in continuing churn, principally in Subscription, Billing and Revenue Management • Investment decisions lengthening sale
Slide 8: Key Themes
Key Themes 8
Slide 9: Focus to support the opportunity
Focus to support the opportunity With focus Aptitude is uniquely positioned to dominate the AI autonomous finance market A shift from regulatory and compliance to a platform organisation Organisational realignment to support the opportunity Uniquely positioned to take advantage of AI for finance Dri
Slide 10: The shift from regulatory compliance to platform
The shift from regulatory compliance to platform 1 10
Slide 11: The shift and focus
The shift and focus Changing landscape of the CFO supports shift £3BN TAM Regulatory Platform AI Autonomous finance opportunity compliance organisation Microsoft, HSO, KPMG and focus partners GTM Direct Partner Led Compliance Focus Data & AI Focus Large one-off deals Client, knowledge, expertise Lan
Slide 12: Realignment and focus of the organisation
Realignment and focus of the organisation 12
Slide 13: Realignment to support focus and shift to platform
Realignment to support focus and shift to platform H2 2023 to Q1 2024 Senior Leadership Team Client Experience Global GTM Product OKR: Driving Fynapse opportunity OKR: Reducing churn OKR: Driving ARR through partners What is still to do in 2024 GTM regulatory & compliance Momentum across focused Pro
Slide 14: Organisational focus & product portfolio
Organisational focus & product portfolio Organisation set up to support products and opportunities Innovate & grow Fynapse Target & protect eSuite Maintain & respond Revenue growth IFRS17/AICE IFRS17/AICE, AAH, AREV AAH, AREV Retain & support ARRE Platform ACALC ALAE Investment 14 14
Slide 15: The opportunity: Fynapse underpins and unique position
The opportunity Fynapse underpins and unique position 15
Slide 16: The AI Autonomous Finance Opportunity
The AI Autonomous Finance Opportunity What is Autonomous Finance? A self-learning, and self-improving, finance function, where tasks are optimized and intelligent, systems are efficient and interoperable, and an enterprise-wide data platform supports real-time insights, enabling finance to be a stra
Slide 17: Aptitude Fynapse
Aptitude Fynapse Market leading support of AI Powering AI Autonomous Finance Fynapse – Aptitude’s Finance Data Platform Data Visualisation & Business Configuration UI Operations UI Marketplace Intelligence Configurable Fynapse Engines AI Optimized Integration Finance AI Real Time Forecasting Account
Slide 18: Fynapse as a Disruptor
Fynapse as a Disruptor Fynapse delivers Autonomous Finance: By automating manual processes and the application of accounting rules, delivering a single view of finance and business data coupled with advanced AI capabilities to drive insights and support decision making. Fynapse releases finance team
Slide 19: Compelling client outcomes
Compelling client outcomes Fynapse delivering immediate benefits to clients on their journey to Autonomous T-Mobile (live) Global Entertainment Firm (in project) Lower Total Cost of Ownership Automates finance architecture • $3m saved across hardware and software • Streamlines contract to financials
Slide 20: Strategic partners support Strategy
Strategic partners support Strategy 20
Slide 21: Aptitude strategic partnerships driving growth
Aptitude strategic partnerships driving growth Simpler market entry & faster time to value powering partnerships January ’23 July ‘23 September ‘23 February ‘24 - Contract signed - No1 pipeline contributor - Pipeline activity starts - Pipeline activity starts April ’23 September ‘23 January ‘24 Marc
Slide 22: Summary
Summary 22
Slide 23: Summary
Summary AI Autonomous Building on CFO Profitable & cash Finance opportunity office foundation generative Expanded Partner Platform go-to-market momentum organisation 23 23
Slide 24: Appendix
24 itude~ Apt Appendix
Slide 25: Income statement
Income statement Improving revenue mix driving higher margins FY 2023 FY 2022 (£’000) (£’000) Recurring Revenue 53,370 50,534 Implementation Revenue 21,315 23,860 Total Revenue 74,685 74,394 Operating Costs (64,959) (66,887) Adjusted Operating Profit 9,726 7,507 Non-Underlying Items (4,441) (3,822)
Slide 26: Cash flow
Cash flow Return to strong cash generation FY 2023 FY 2022 (£’000) (£’000) Cash generated from operations 11,945 5,272 Interest and tax (paid)/received (951) (2,095) Cash flows generated from operating activities 10,994 3,177 Purchase of property, plant and equipment (601) (831) Interest received 28
Slide 27: Balance sheet
Balance sheet Increasingly robust balance sheet, with £34.1m cash and £22.7m net cash 31 Dec 2023 (£’000) 31 Dec 2022 (£’000) Goodwill and intangible assets 63,745 67,126 Property, plant and equipment including right-of-use assets 4,484 5,103 Trade and other assets 17,099 16,718 Cash and cash equiva
Slide 28: Board
Board Management team aligning the business to support significant opportunity Alex Curran, Chief Executive Officer Alex Curran was appointed to the Aptitude Software Board as Acting CEO on 12 July 2023 and subsequently appointed as CEO on 30 November 2023. Alex joined Aptitude Software in 2008 and
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