Slide 1: FY2021 Annual Financial Results
Integrated Research Limited (IRI) For personal use only FY2021 Annual Financial Results 19 August 2021 John Ruthven, CEO Peter Adams, CFO
Slide 2: Agenda
For personal use only Agenda 3 Section 1 – Results Analysis 14 Section 2 – Transition and Growth Strategy 25 Appendix IR’s transition to a SaaS model is underway, with higher quality subscription revenues and greater leverage to long term growth trends
Slide 3: Section 1 – Results Analysis
Section 1 – Results Analysis For personal use only
Slide 4: CEO key messages
CEO key messages Executing transition strategy to a SaaS subscription model, improved 2H performance For personal use only 1. Transitioning to higher quality, growing SaaS subscription-based revenues 2. FY21 results impacted by deal deferrals and cautious buyer behaviour in 1H – Revenue down 29%, NP
Slide 5: Full-year performance review (A$M)
Full-year performance review (A$M) New product launches and sales execution drive 2H recovery following weak 1H For personal use only 110.9 96.4 78.5 CASH RECEIPTS 78.8 29% FROM 18% REVENUE CUSTOMERS Jun-20 Jun-21 Jun-20 Jun-21 24.1 24.2 21.1 7.9 67% OPERATING 13% NPAT CASH FLOW Jun-20 Jun-21 Jun-20
Slide 6: 2H FY21 Results (A$M)
2H FY21 Results (A$M) Improved 2H performance - revenue and profit recovery For personal use only 13.2 57.7 53.2 11.0 11.3 44.4 9.8 34.1 30% OPERATING 14% REVENUE CASH FLOW 1H FY20 2H FY20 1H FY21 2H FY21 1H FY20 2H FY20 1H FY21 2H FY21 11.8 12.3 38.9% 38.5% 39.4% NPAT IN 9.0 210% 26.4 PT CONSTANT C
Slide 7: Transition underway
Transition underway Executing clear plan to transition to higher quality growing SaaS based subscription revenues For personal use only Product Expand New SaaS Extend & and new products Enhance Platform segments Growing Upfront share High level Revenue revenue subscription of ARR recognition revenue
Slide 8: FY21 progress report
FY21 progress report Delivering product and platform to support SaaS growth For personal use only Customer growth & SaaS customer Product innovation Transition to retention acquisition subscription Coverage of the 3 On-board strategic Reliable and >100 renewal & largest cloud capacity deals in H2 fo
Slide 9: Revenue
Revenue Proforma subscription revenue and cash receipts steady in US dollars For personal use only Annual results (statutory) Jun 2021 Jun 2020 % change A$M A$M Revenue from licence fees 47.4 72.1 (34%) Revenue from maintenance fees 18.1 23.9 (24%) Revenue from subscription fees 0.3 0.7 (55%) Revenu
Slide 10: Geographic and Product revenue analysis
Geographic and Product revenue analysis Subscription revenue; stable performance in US dollars For personal use only Geographic Americas - US$M Asia Pacific - A$M Europe - £M 60 20 10 18 50 16 8 40 14 12 6 30 10 8 4 20 6 10 4 2 2 0 0 0 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020
Slide 11: Operating expenses
Operating expenses Investment in product development to expand addressable market and leverage to growth trends For personal use only Annual results Jun 2021 Jun 2020 % change Development Costs A$M A$M • Innovation Gross research and development spend 21.3 22.5 (6%) agenda maintained Capitalisation
Slide 12: Net cash flow analysis
Net cash flow analysis Positive operating cash flow funds growth investments For personal use only Strong balance Strongsheet – net cash flow 30 cash $4.7M from operations 21.1 12.0 20 6.5 No debtor A$M factoring 10 1.9 4.7 5.5 Development 0 spend includes Opening net cash Cash from operations Devel
Slide 13: Balance sheet
Balance sheet Increased net cash For personal use only Jun 21 Jun 20 A$M A$M Strong balance sheet – Cash and cash equivalents 12.1 9.7 net cash Strong balance Trade and other receivables 79.5 87.3 sheet – net $5.5M Intangible Assets 30.0 29.1 cash $4.7M Right-of-use Assets 6.0 6.4 All Other Assets 7
Slide 14: Section - Transition and Growth Strategy
Section 2 - Transition and Growth Strategy For personal use only
Slide 15: Platform approach to product innovation
Platform approach to product innovation Drives Access to Larger Market Opportunity For personal use only Total Addressable Market Platform innovation Transition to SaaS enables higher enables growth in new customers value solutions Add SaaS support and faster time to and leverage Hybrid market diffe
Slide 16: Product strategy
Product strategy New product launches expand addressable market and leverage to long term growth trends For personal use only predictive analytics smart intelligence marketplace A$1.2B TAM wide open API’s new vendors cloud edge deep legacy 16
Slide 17: Accelerated move to cashless payments
Accelerated move to cashless payments IR is well placed to benefit from cards growth and new real-time payments For personal use only – Traditional payment market disrupted by emerging payment methods and Fintechs – Cashless payments rising on the back of pandemic related dynamics – New standards dr
Slide 18: Continued growth in high value conferencing segment
Continued growth in high value conferencing segment IR well placed to leverage trend to ’Hybrid Work’ For personal use only – ’Hybrid Working’ increases UC system complexity and further exposes UC challenges – Industry specific video applications (e.g. Healthcare) are increasing the mission critical
Slide 19: Quality customer base
Quality customer base Long-term, high value relationships based on mission critical solutions For personal use only Customer Tenure Contract Length New Logos Maintenance Retention Rate 100% FY20 97% FY20 FY21 90% FY21 89% 80% 87% 60% 60% 40% 50% 40 15 Years+ 35 40% 38 30 30% 11-15 Years 25 27 20% 20
Slide 20: FY22 Action Plan
FY22 Action Plan Clear execution priorities to accelerate transition benefits For personal use only Sales Product & Business Support Development Implement go-to-market changes to Deliver new products & enhancements Manage the Transform IR, a increase new business sales with a Focus to extend our cus
Slide 21: FY22 Key Performance Indicators
FY22 Key Performance Indicators New customers and product launches support transition to SaaS growth For personal use only Customer growth New customer Product Business Model & retention acquisition innovation Transition TCV from new Percent of TCV from Growth in cloud products & capacity 20% New cu
Slide 22: Conclusions
Conclusions For personal use only 1. Transition is underway – executing plan to grow higher quality, SaaS based subscription revenues 2. Recovery in 2H results, with revenue and profit growth 3. New product launches expand addressable market opportunities 4. Increasing leverage to long term growth t
Slide 23: Disclaimer
For personal use only Disclaimer
Slide 24: Disclaimer
Disclaimer FORWARD LOOKING STATEMENTS NOT AN OFFER For personal use only SUMMARY INFORMATION This document and the associated transcript (together “the presentation”) has The presentation contains certain "forward-looking statements”. The words The presentation is for information purposes only and i
Slide 25: Appendix
For personal use only Appendix
Slide 26: Who we are / What we do
For personal use only Who we are What we do IR Capabilities IR is the leading global provider of performance IR provides best in class performance management and analytics for enterprise management across collaboration and communications, collaboration, and payment payments transactions ecosystems,
Slide 27: Go-to-market model
Go-to-market model Customer “high touch” model For personal use only Sales Network Direct: Global coverage with Fortune 500 Distribution: Direct Sales Indirect Sales Service Provider Sales Alliance Partners Distribution Resellers Service Providers Customers 27
Slide 28: Platform approach to product innovation
Platform approach to product innovation For personal use only Collaborate Transact Infrastructure Solutions End user experience monitoring Card Transactions Hardware UC application monitoring Payments Application Health Operating System Network Troubleshooting Virtualization Capability Platform Capa
Slide 29: Proforma subscription revenue
Proforma subscription revenue For personal use only Purpose: To provide an alternate view of underlying performance by restating term licence and maintenance revenues on a recurring subscription basis How: • All licence sales from FY2012 to FY2021 were analysed for each region in their natural curre
Slide 30: Proforma subscription revenue
Proforma subscription revenue For personal use only Annual revenue FY19 FY20 FY21 FY19 FY20 FY21 A$M A$M A$M Infrastructure 20.3 21.5 18.3 3% 6% -15% Transact 8.4 10.5 10.0 28% 25% -5% Collaborate 45.2 49.3 41.4 20% 9% -16% Proforma subscription revenue 73.8 81.3 69.6 16% 10% -14% Perpetual sales 2.
Slide 31: Cash flow
Cash flow FY21 FY20 Change For personal use only A$M A$M Cash flows from operating activities Cash receipts from customers ex debtor factoring 78.8 88.8 (11%) Cash receipts from debtor factoring - 7.6 (100%) Cash receipts from customers 78.8 96.4 (18%) Proceeds from government grants 0.6 - Cash paid
Slide 32: Financial track record
Financial track record For personal use only Year ending (A$M): Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Licence fees 28.9 26.6 28.0 41.0 45.7 53.4 52.6 62.8 72.1 47.4 Revenue 48.6 48.9 53.2 70.3 84.5 91.2 91.2 100.8 110.9 78.5 EBIT 11.1 11.1 10.3 19.0 21.4 25.7 25.8 28.
Slide 33: For personal use only
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