Straker Ltd · ASX:STG
Straker — Investor Presentation (April 2023)
17 slides from Straker's investor presentation, Apr 27, 2023
Slide 1: Straker Translations 4C Q4-FY23
TIMELINE Straker Translations 4C Q4-FY23 1
Slide 2: 4C Highlights
4C Highlights As a AI language tech pioneer Straker is very well positioned to be a leading player as AI continues to disrupt the language industry As a top 100 player, with unique technology and global services reach, we are able to deliver an AI enhanced human-in-the-loop platform at scale to meet
Slide 3: 4C Highlights
4C Highlights $1.7M $1m >60% Positive Free Cash Flow Adj EBITDA Record High Gross Margins $2.6m $62m $12.5m Reduced Quarterly Opex v Year to date receipts from Cash at bank (up $1.7m) Q1 customers Cash generating, stable revenue and investing in new and significant opportunities 3
Slide 4: Opex Reductions
Opex Reductions Opex FY23 $260,000 $10m $195,000 $7.5m $130,000 $5m $65,000 $2.5m $0 Revenue per employee $0m Q1 Q2 Q3 Q4 FY22 FY23 4
Slide 5: Industry Consolidation Underway
Industry Consolidation Underway Top 100 V Rest of Industry 100% 15% 14% 15% 15% 20% 88% 85% 86% 85% 85% 80% 75% 63% 50% 2018 2019 2020 2021 2022 Rest Top100 *Nimdzi Industry Reports 2017-2022 5
Slide 6: How generative AI Is changing the language industry
How generative AI Is changing the language industry Forecast Impact of Generative AI on the industry 2022 2023 Impact ~2,000 billion words/day ~3,000 billion words/day Long term 1 Raw Machine Translation 2% market 2.9% market distruption 2bn words/day 10bn words/day 2 Enhanced Machine Translation Ou
Slide 7: Organic channels for growth now open
Organic channels for growth now open It has traditionally been That meant we pursued With customers now actively Embedding deeply into difficult to get an acquisition strategy looking for AI driven vertical channels customers to switch to to acquire customers solutions we believe a cost Push into ma
Slide 8: Easy, powerful and secure - LanguageCloud
Easy, powerful and secure - LanguageCloud enterprise grade solution Easy Secure Powerful - Automation into systems - Closed loop AI enhanced - Scalable - Easy sign up systems - Full power for AI - Workplace apps, no need for - Overarching security layer enhanced human in the another portal - Secure
Slide 9: Proven solution with unique position in key market category
Proven solution with unique position in key market category as market consolidates market leaders in the Language Cloud category Technology + LSP + AI Revenue enhanced + Strategic vendor + Security + Enterprise customers are looking for Global Service - a strategic, technology based supplier Languag
Slide 10: Workplace apps
straker > Workplace apps
Slide 11: AI Enhanced Tools
straker > Al Enhanced Tools HVACandRefri rvidor (GRS) RAY Al Suggestion #1 5urce Management (SRM) Format Server Resource Management (SRM) RAY Al Suggestion #2 Format an SVC, stand-alone, or SYSMDUMP dump with the VERBEXIT SRMDATA subcon fe produce diagnostic reports about SRM. Administracién de Recu
Slide 12: New Business Wins In Q4
New Business Wins In Q4 Estimated Annual Estimated Full Annual Region Client Revenue Potential EMEA Babcock $100k $1m EMEA Jacobs Foundation $500k $500k ASIA Waven-Alpha Inc TBA TBA North America Agropor $500k $1m Medical Council of North America $350k $350k Canada All revenue estimates are indicati
Slide 13: 4th Quarter Commentary
4th Quarter Commentary Revenue up 6% to $59.4m Gross Margins hit record Adjusted EBITDA Cash Flow • We had a very strong 1st quarter, the • Gross Margin for FY23 increased • We have managed to tightly • Met goal of being Free Cash 4th quarter is traditionally quieter, and from 54% to 57%. control co
Slide 14: Growth and Profitability Strategy
Growth and Profitability Strategy Maximising the Existing Business Growth Initiatives Focus on Price Alternative Vertical AI validation Slack apps Opex increases models (paas) markets opportunities Winning more Increasing Switch to Teams Corporate Intelligence customer margins LanguageCloud apps med
Slide 15: Key Takeaways
Key Takeaways Introduction of PaaS base in Stable, free-cash generating Focus on AI enhanced R&D Q1 company $62m Organic over acquisitive Signi cantly reduced opex Year to date receipts from growth run-rate customers 15 fi
Slide 16: Q&A
straker > Q&A
Slide 17: Disclosure Statement
DISCLOSURE STATEMENT This presentation is given on behalf of Straker Translations Limited ASX:STG (Company number NZ: 1008867 / AU: ARBN 628 707 399) Information in this presentation: All information in this presentation is current at 31 March 2023, unless otherwise stated. • Is for general informat