8common Ltd · ASX:8CO
8common — Investor Presentation (September 2018)
18 slides from 8common's investor presentation, Sep 7, 2018
Slide 1: 8common
8common (ASX:8CO) 8common 8common Limited (ASX:8CO)
Slide 2: Disclaimer
This presentation has been produced by 8common Limited and may contain forward looking statements that are based on Management’s current expectations, beliefs and assumptions and are subject to a number of risks and uncertainties. Forward looking statements contained in this presentation are not gua
Slide 3: We help clients manage transactions via our platforms
Approval Card Procurement Cash Taxi Cash we help clients Expenses Payments Payments Fleet Car Allowance Petrol Advance manage transactions… Expense Corporate Card PayHERO Management Travel Application & Payment Maintenance Gateway via our platforms… to reconcile with financial erp 3 8common 8common
Slide 4: Some of our clients…
▪ Department of the Premier & ▪ Office of the Director of Public Cabinet Prosecution ▪ Department of Education ▪ Office of the Environment & Heritage ▪ Department of Justice ▪ Rural Fire Service ▪ Department of Finance, Services ▪ Police Force Leadership in and Innovation ▪ Roads and Maritime Servic
Slide 5: 8common
• 2 complementary B2B software businesses: 1. Expense8: leading cloud-based platform for employee expense management 2. PayHERO: payment gateway providing merchant account services • Strong and growing footprint of government and large corporate clients • $2.6m revenue in FY2018 (unaudited), transit
Slide 6: Corporate Information
Capital Structure Shareholdings Share price (31-Aug-18) A$0.04 Directors 30.6% Shares on issue 136,130,136 Top 20 69.8% Corporate Listed Options at $0.035 47,882,263 Information Diluted Market Capitalisation A$9.2m Cash (30-June-18) A$0.5m Shares in Cloudaron Bhd A$3.1m Bloomberg (CLOUD:MK) Enterpri
Slide 7: Expense8, clear path to 100-200% uplift
FY2018 (unaudited) $1.6m revenue from 120,000 users in SaaS revenue. Upselling 120,000 users across all platforms at ARPU of $38 could deliver $4.5m, a 2.8x increase in revenue. Expense8, Expense8 Platforms clear path to @ 100-200% uplift Expense Credit Card Corporate 100% Wallet in Existing Managem
Slide 8: Transitioning from moderate to high growth
Transitioning from moderate to high growth ▪ $2.6m Expense8 Revenue in FY18 (unaudited). ▪ 29% YoY Growth in Expense8 Revenue from FY17 to FY18. ▪ Multiple substantial new clients onboarded in FY18, including the Federal Department of the Senate, NSW Department of the Premier and Cabinet and The NSW
Slide 9: Cash receipts +31% QvQ
Cash receipts +31% QvQ 9 8common 8common Limited (ASX:8CO)
Slide 10: Revenue growth driven by our SaaS
Revenue growth driven by our SaaS +56% YoY segment 10 8common 8common Limited (ASX:8CO)
Slide 11: Revenue growth driven by our SaaS
1,634,980 SaaS 1,106,539 376,471 Annual Licenses Revenue 429,786 +56% YoY Revenue as a growth driven Implementation 179,153 result by our SaaS 333,252 Higher Usage/ ARPU segment Change Management 304,473 Increased User Adoption on 146,883 our Platforms 141,061 Others 92,303 11 FY18 FY17 8common 8com
Slide 12: Travel Module revenue to fuel further growth
Travel Module revenue to fuel further growth Federal Treasury and Dept of Prime Minister & Cabinet were early adopters 1st NSW Gov agency went live in September 2018 12 8common 8common Limited (ASX:8CO)
Slide 13: Acquisition of PayHERO delivers blue-sky opportunity
Acquisition of PayHERO delivers blue-sky opportunity to deliver an Integrated Card, Expense and Payment Platforms • Identity • Allowances, reimbursement • Transaction Approval and • P-Cards (e.g. Credit, Fuel): Access – Physical • Application Repository – Virtual VAULT Wallet Card Application & Corp
Slide 14: PayHERO Payments Opportunity $80b
PayHERO Payments Opportunity 30-100bps • Processing Federal, NSW and Northern Territory Government procurement payments is a $80b total addressable market based on the FY2017 reported $80b annual procurement spend. • Industry GDV to revenue average of between 30-100bps. • Annual Transaction Revenue
Slide 15: Comparable ASX Companies
Comparable Company Ticker Revenue TTM Market Cap (A$m) EV/EBITDA Price/Sales (TTM) ASX Companies NOV 3.4 33 -6.1x 9.82 (16-7-18) EML 63.4 368.8 49.5x 5.78 8common 8CO 3.8 6.8 7.2x 1.79 15 8common 8common Limited (ASX:8CO)
Slide 16: Precedent Competitor Transactions
Revenue at Time of Reported Acquisition Revenue Company Acquisition Amount multiple Precedent (Estimated A$m) (Reported A$m) Competitor 700 8,300 11.9x Transactions 32 262 8.2x 7 100 14.8x 20 93 4.7x 16 8common 8common Limited (ASX:8CO)
Slide 17: Recent Acquisitions by ASX-listed Companies
Recent Company Date Industry Vertical Acquisition Price Acquisition EBITDA Acquisitions by Multiple ASX-listed Store Financial 2014 Gift Card Processor $24.9m 9.3x EML Payments Services PRESEND Prepaid Card Prepaid February 2018 $11.1m 21x Provider Solutions Expense PerfectCard July 2018 Management
Slide 18: 8common
Nic Lim Executive Chairman 8common Limited e: nic@8common.com 8common 8common Limited (ASX:8CO)