Hsenid Business Solutions Plc · CSELK:HBS.N0000
Hsenid Business Solutions — Q4 FY2024 Earnings Presentation
18 slides from Hsenid Business Solutions's earnings presentation, May 2024
Slide 1: Quarterly Investor Forum 4Q FY2024
Quarterly Investor Forum 4Q FY2024 Page 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may contain forward-looking statements for which there are risks, uncertainties, and assumptions. Forward-looking statements may include any statements regarding strategies or plans for future operations; any statements concerning new features, enhancemen
Slide 3: HBS at a Glance
HBS at a Glance Offering a comprehensive $10 Bn+ TAM Seamless Connection to Third-Party Systems OpenAPIs to connect to third-party ERP, Accounting and range of HRIS solutions other software solutions Market Opportunity APAC and MEA Geared to Handle Large and Complex Organisations $3.1 Mn Exit ARR* L
Slide 4: 4Q FY2024 - At a Glance
4Q FY2024 - At a Glance Core Exit ARR USD mn (Q1 FY23 to Q4 FY24) 3.3 3.12 ▪ New deal closure recorded a very strong 3.1 3.02 USD 1.6M value helped by strong demand 2.9 2.7 2.73 from MEA 2.5 2.34 2.3 ▪ Total exit ARR is now at USD 3.1M 2.1 1.91 2.02 2.09 1.84 o Growing 3% QoQ and 49% YoY 1.9 1.7 ▪ Q
Slide 5: Key Business Updates: Product Development and Talent Acquisition
Key Business Updates Product Development and Talent Acquisition ▪ Product Development Update o Continued to investments in product localization for select ASEAN markets o Release of Low Code / No Code platform for CR development o Embedding Anomaly Detection model inside payroll module o Transformat
Slide 6: Key Business Updates: Sales and Marketing
Key Business Updates Sales and Marketing ▪ Sales Updates o We continue to strengthen our sales teams in APAC and MEA markets o Upskilling and training provided to build globally competitive B2B SaaS sales team o Average Contract Value (ACV) increased by [100%] during FY2023; aim is to further grow A
Slide 7: New Deal Bookings
New Deal Bookings New Deal Bookings ▪ USD 1.6 Mn in New deal closures in Q4 USD mn o Up 212% compared to 3Q FY24 3.0 o This is a record amount of total new deals closed during a quarter in recent times ▪ ~57% of new deals were originated in the MEA 2.5 region, aided by the closure of two large on- p
Slide 8: Quest to be the Most Preferred HR Tech Player in APAC and MEA
Quest to be the Most Preferred HR Tech Player in APAC and MEA On-Prem to Cloud shift trend continues Sri Lanka continues to generate majority revenue; APAC revenues driven by the recurring revenue recognition 4% 9% 4% Other † 15% 14% 14% MEA 5% 17% 18% 11% 26% PHR Outsourcing 4% 5% 9% Tracking Solut
Slide 9: Business Segments PHR Cloud and On-Premise
Business Segments LKR mn PHR Cloud revenues PHR Cloud and On-Premise 1200 3yr CAGR +48% +36% YoY 900 (+50% in USD cc) ▪ Significant growth in PHR Cloud revenues 600 +6% QoQ due to: (+11% in USD cc) o High proportion of new deals being PHR Cloud 300 o Orderbook being converted to “live” customers 0 o
Slide 10: Business Segments PHR Outsourcing and Tracking Solutions
Business Segments PHR Outsourcing and Tracking Solutions Tracking Solutions revenues PHR Outsourcing revenues LKR mn LKR mn 180 90 3yr CAGR +27% 3yr CAGR +30% 150 75 120 60 +55% YoY (+57% in USD cc) -2% YoY (+9% in USD cc) 90 45 +21% QoQ (+22% in USD cc) -8% QoQ growth 60 30 (-3% in USD cc) 30 15 0
Slide 11: Core exit ARR at the end of FY24 at USD 3.1Mn
Core exit ARR at the end of FY24 at USD 3.1Mn Growing at 3yr CAGR of 29% Core-recurring† revenues reached 54% in 4Q FY24 Annual core recurring revenues LKR mn 1000 3yr CAGR +29% 900 42% 41% 48% 47% 800 55% 54% 700 +27% YoY 600 (+39% USD cc) 500 -6% QoQ 400 (-2% USD cc) 58% 59% 52% 53% 45% 46% 300 20
Slide 12: Revenue Drill Down
Revenue Drill Down 3Yr CAGR YoY growth All in LKR millions FY21 FY22 FY23 FY24 4Q FY23 4Q FY24 (in LKR / USD cc) (in LKR / USD cc) PHR Cloud 278 372 678 893 184 250 Recurring revenue 192 261 502 670 136 188 +48% / +20% +36% / +50% Non – Recurring revenue 86 111 176 222 47 62 PHR On-premise 374 408 3
Slide 13: Cost of Sales Drill Down
Cost of Sales Drill Down YoY All in LKR millions FY21 FY22 FY23 FY24 3Yr CAGR 4Q FY23 4Q FY24 growth On-site and third-party implementation costs† 58 59 94 150 +37% 20 30 +53% Infrastructure costs†† 34 53 170 162 +69% 42 43 +2% Cost of devices sold 28 54 64 49 +20% 19 16 -14% Mobile solutions relate
Slide 14: Analysis of Normalized EBITDA
Analysis of Normalized EBITDA Normalised COGS †† Admin expenses††† S&M expenses†††† EBITDA margin † as a % of Sales as a % of sales as a % of sales 31% 30% 22% 59% 59% 29% 29% 21% 29% 55% 56% 24% 45% 43% 13% 9% 12% 12% 12% 15% 12% -2.5% -9% -7.8% FY23 FY23 FY22 FY24 4Q FY24 FY23 FY22 FY24 4Q FY24 FY
Slide 15: Summarized Income Statements
Summarized Income Statements In LKR millions FY21 FY22 FY23 FY24 4Q FY24 Revenue 961 1,091 1,464 1,645 433 Gross profit 513 617 644 665 181 Gross profit margin 53% 57% 44% 40% 42% Normalised EBITDA 297 329 138 (148) (10) Normalised EBITDA margin 31% 30% 9% -9% -2% FX gain 27 287 71 (65) (57) Net int
Slide 16: Cash Position and IPO Fund Utilization
Cash Position and IPO Fund Utilization Cash position at ~LKR 1.1 Bn IPO fund utilization at 49% LKR mn LKR mn 700 1,600 600 1,400 342 500 1,200 1,000 400 800 300 600 200 350 350 400 100 202 140 200 0 - Market Product Potential Strategic Total FY19 FY20 FY21 FY22† FY23† FY24 Development Development A
Slide 17: Free Cash Flow Generation
Free Cash Flow Generation Annual free cash flow generation LKR mn 300 200 100 - (100) (200) (300) (400) (500) FY21 FY22 FY23 FY24 1Q FY24† 2Q FY24† 3Q FY24† 4Q FY24† Operating cash flow Capex Free cash flow to the firm † Includes higher capex on product development, and negative impact from working
Slide 18: Q&A Session
Q&A Session You can use the Q&A functionality in zoom to send in your questions; OR ALTERNATIVELY Click on the "Raise your hand" button to be given an opportunity to unmute your microphone and pose your questions. Investor Relations Contacts Nilendra Weerasinghe – Chief Financial Officer +94 11 462
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