Eagle Eye Solutions Group Plc · LSE:EYE
Eagle Eye Solutions — FY2023 Earnings Presentation
33 slides from Eagle Eye Solutions's earnings presentation, Sep 19, 2023
Slide 1: Final results for year ended 30 June 2023
Final results for year ended 30 June 2023 An exceptional year of growth, delivering revenue and profits ahead of expectations Eagle Eye Solutions Group plc Tim Mason, CEO and Lucy Sharman-Munday, CFO
Slide 2: Agenda
Agenda SJ add image 1. Eagle Eye’s vision 2. FY23 highlights 3. Market opportunity 4. Financial review 5. Strategic update 6. Summary and outlook 7. Q&A 2 Eagle Eye | Final results for year ended 30 June 2023
Slide 3: Our vision: To power the personalised marketing revolution globally
Our vision: To power the personalised marketing revolution globally 3 Eagle Eye | Final results for year ended 30 June 2023
Slide 4: The Golden Rule: Treat people the way they want to be treated
The Golden Rule: Treat people the way they want to be treated That is the very heart of personalisation. Every product we offer enables organisations to follow the golden rule, helping them to earn the loyalty of We are the their customers through the power of personalisation personalisation, whilst
Slide 5: The Golden Rule in practice
The Golden Rule in practice 5 Eagle Eye | Final results for year ended 30 June 2023
Slide 6: An exceptional year: Delivering on our opportunity
An exceptional year: Delivering on our opportunity Revenue and profit ahead of Board’s initial expectations Strong financial Significant international Successful Continued investment Positive outlook for performance revenue expansion acquisition in innovation FY24 and beyond Revenue and adj. EBITDA
Slide 7: Powering leading loyalty and customer engagement propositions globally
Powering leading loyalty and customer engagement propositions globally Use Cases Personalised Personalised Supplier- Personalised Cashback Loyalty Subscription Tiered Charitable Loyalty Funded Loyalty at Loyalty Coalition Service Programme Donations Challenges Loyalty Scale New use cases live in FY2
Slide 8: Expanding market opportunity
Expanding market opportunity Driven by growth in demand for loyalty and personalisation solutions “Loyalty is a Eagle Eye Global Loyalty Survey lifeline during the inflation • 84% of consumers felt more personalised offers would crisis” enable them to access additional value to help them save at the
Slide 9: Extending our services
Extending our services AI-powered Challenges contributed c.5% of our revenue in FY23 Integrating new capabilities through our acquisition of Untie Nots Customer Experience Layer • Through our acquisition of Untie Nots, we have extended The home of your strategy, your out of the Transaction Layer, an
Slide 10: Strategic focus
Strategic focus 1. To win new customers, transact through our platform, deepen with additional products from our portfolio 2. To develop new products to provide further upsell opportunities across our customer base and strengthen our competitive positioning 3. To enter new geographies 4. To run the
Slide 11: Financial Review
Financial Review
Slide 12: Strong growth across the board
Strong growth across the board Revenue, profitability & cash flow FY 2023 Growth Y/Y Group Revenue £43.1m +36% Revenue - organic £40.9m +29% Recurring Revenue (subscription fees and transactions) 80% +4ppts Annual Recurring Revenue* (ARR) £33.3m +40% Adjusted EBITDA** £8.8m +36% Adjusted EBITDA marg
Slide 13: Fast growing subscription model
137% Fast growing subscription model FY23 Net revenue 50.0 50% retention rate* 44% 45.0 42% 45% 27% 40.0 40% £34.5m 35.0 35% 30.0 30% £24.0m 25.0 25% 20.0 £16.9m 20% 3 year Recurring 13% revenue CAGR 15.0 15% 10.0 10% 0.2% 5.0 5% 0.0 0% FY21 FY22 FY23 Recurring revenue Y/Y Growth Churn** *Net revenu
Slide 14: Delivering on our customer strategy
Delivering on our customer strategy Win, Transact and Deepen Win • Notable wins in UK, Canada, % FY 23 FY 22 Australia, Singapore Change • Initiatives to continue to grow One off win rate implementation £8.5m £7.6m +12% fees Transact Recurring • Volumes +98% 3.3bn (FY22: 1.7bn) revenue: • Woolworths
Slide 15: Strong international year-on-year revenue growth
Strong international year-on-year revenue growth From a broader global footprint North America +129% APAC +56% EMEA +7% 15 Eagle Eye | Final results for year ended 30 June 2023
Slide 16: FY23 Income Statement
FY23 Income Statement £’000 FY 23 FY 22 VAR % Delivering profitable growth Revenue 43,074 31,667 36% Cost of Sales (2,091) (2,037) (3)% Revenue growth of 36% year-on-year Gross profit 40,983 29,630 38% 95% Gross margin, +1ppt, reflecting impact of growth in higher Gross margin % 95% 94% margin AIR b
Slide 17: Net cash bridge
Net cash bridge Increasing cash generation Net cash grown from £3.6m to £9.3m cash inflow of £5.7m 14 If costs of the Untie Nots acquisition are excluded underlying 12 £9.3m cash inflow was £7.0m (FY 22 £2.8m inflow). 10 Operating cash inflow of £12.2m; 139% cash conversion ratio: adjusted EBITDA £8
Slide 18: Innovation sits at our heart
Innovation sits at our heart Differentiating us and providing added value to our customers On average per month we process… Extending the digital marketing toolkit 2.5 bn offers • Applied hundreds of new rules and permutations to our cloud-based adjudication engine 185 bn loyalty points • Enabling r
Slide 19: We have a high standard of ESG focused on materiality
We have a high standard of ESG focused on materiality and making a difference Everything we do is underpinned by our belief in following The Golden Rule Environmental Virtual first E • • Travel carbon offset • Digitising paper Social • ERGs: Purple Women, Purple Pride S • Purple managers training, P
Slide 20: Strategic Update
Strategic Update
Slide 21: Achieving our ambitions
Achieving our ambitions What will move the dial? Driving our win Successful M&A Launching our new 1 rate 2 blueprint 3 offering, EagleAI 21 Eagle Eye | Final results for year ended 30 June 2023
Slide 22: Driving our Win rate
Driving our Win rate 1 Process, pipeline and partnerships +61% One Sales and Strategic partnership A growing pipeline Marketing organisation with Google across all key markets 22 Eagle Eye | Final results for year ended 30 June 2023
Slide 23: Our approach to M&A and Untie Nots
Our approach to M&A and Untie Nots 2 A blueprint for further acquisitions Industry track record Our assessment so far Platform / product / solution enhancement • No complexity introduced – oversight from and reporting to Tim & Lucy • Sales and marketing bearing fruit – strong and growing pipeline fr
Slide 24: Better, Simpler, Cheaper
The advancement of AI 3 An enormous opportunity for the future scaling of Eagle Eye Better, Simpler, Cheaper Continue to be the Using AI to enhance Launching our own AI- leading enabler of our tech stack and powered offering for advanced analytics development retailers globally – and AI capabilities
Slide 25: Next generation data science for promotions
Next generation data science for promotions 3 The right balance of algorithms to drive business results The People The Motivator The Chef The Coach "Reward” Algorithm Pleaser "Mix” Algorithm "Stretch” Algorithm "Thank” Algorithm The Influencer The Diviner The Moderator "Activate” Algorithm "Predict”
Slide 26: Summary and Outlook
Summary and Outlook 26 Eagle Eye | Final results for year ended 30 June 2023
Slide 27: Positive outlook
Positive outlook Expanding market Entered FY24 in a Acquisition of Untie Trading in the opportunity strong position Nots provides current year to date additional channel is in line with Board for growth expectations 27 “ The quality of our team, offering and business model, alongside an expanding ma
Slide 28: Q&A
Q8&A
Slide 29: eagleeye.com @weareeagleeye
eagleeye.com @weareeagleeye Eagle Eye | Final results for year ended 30 June 2023 29
Slide 30: Our Board and Leadership Team
* PLC ^ Exec Our Board and Leadership Team Malcolm Wall * Sir Terry Leahy * Charlotte Stranner * Robert Senior * Anne de Kerckhove* Chairman Non-Exec Director Non-Exec Director Non-Exec Director Non-Exec Director (joining Oct 2023) Chair from close of AGM (Nov 2023) Tim Mason *^ Steve Rothwell *^ Lu
Slide 31: Eagle Eye Group Plc General Information
Eagle Eye Group Plc General Information • Share Price 545p (at 31 August 23) Number Market AIM Key Shareholders % • of shares • Ticker EYE.L Canaccord 5,197,556 17.78 • Market cap £159.45m Sir Terry Leahy* 2,457,006 8.41 • Ordinary shares in issue 29.3m William Currie* 2,334,560 7.99 • Options outst
Slide 32: Delivering a new, innovative loyalty proposition with Asda
Delivering a new, innovative loyalty proposition with Asda 5m Results £100m 37% 32 Eagle Eye | Final results for year ended 30 June 2023
Slide 33: Balance sheet
Balance sheet £’000 FY 23 FY 22 Non-current assets 25,090 8,911 Trade and other receivables 11,847 10,571 Cash and cash equivalents 10,615 3,632 47,552 23,114 Current liabilities (exc IFRS 15) (13,672) (11,260) Financial liabilities (exc IFRS 15) (1,299) - Non-current liabilities (exc IFRS 15) (805)
Eagle Eye Solutions Group — FY2023 Earnings Presentation on 6ix