Hsenid Business Solutions Plc · CSELK:HBS.N0000

Hsenid Business Solutions — Q4 FY2025 Earnings Presentation

21 slides from Hsenid Business Solutions's earnings presentation, June 2025

  1. Slide 1: Quarterly Investor Forum 4Q FY2025

    Quarterly Investor Forum 4Q FY2025

  2. 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, enhanceme

  3. Slide 3: hSenidBiz | PeoplesHR at a Glance

    hSenidBiz | PeoplesHR at a Glance $10 Bn+ TAM 1700+ Customers 1 Mn+ Global Users Market Opportunity APAC and MEA Operating across 40+ countries and Churn maintained at a healthy 20+ industries rate of 5% $4.1 Mn Exit ARR $4.6 Mn CARR 33% ARR Growth Exit Annualized Recurring Revenue Contracted ARR (C

  4. Slide 4: PeoplesHR is poised to be the Most Preferred HR Tech Solution in Emerging Markets

    PeoplesHR is poised to be the Most Preferred HR Tech Solution in Emerging Markets ► Hire-to-retire HR Tech Platform which thrives in digitalizing complex business processes in Human Resource Management ► Robust CoreHR, Time & Attendance and Payroll Engine with strong focus on statutory compliance an

  5. Slide 5: Quarter at a Glance

    Quarter at a Glance Core Exit ARR (Q1 FY24 to Q4 FY25) USD Mn ► Revenue of LKR 500 Mn 4.2 4.0 4.1 ♦ YoY Growth of 15% in LKR terms; 22% in USD cc 3.8 3.7 3.5 ♦ Revenue momentum was driven by steady Cloud revenue growth and Q4 improved new deals 3.4 3.1 3.0 performance 3.0 2.7 2.6 ► Total Exit ARR cl

  6. Slide 6: Key Business Updates

    Key Business Updates Product Development & Engineering ♦ Initiation of AI transformation project to introduce AI orchestration layer to PeoplesHR ♦ Critical updates and improvements to user experience ♦ Completion of the mobile app framework upgrade ♦ Release of high priority Payroll statutory featu

  7. Slide 7: Key Business Updates

    Key Business Updates Sales Update ♦ Inbound and outbound sales motions yielded positive results reflecting momentum from prior quarters’ efforts ♦ Q3 Pipeline directly contributed to a majority of non-Sri Lanka new deal acquisitions in the quarter ♦ Sustained demand generation with a stable pipeline

  8. Slide 8: New Deal Bookings

    New Deal Bookings New Deal Bookings USD Mn ► USD 820,737 new deal closures in Q4 3.5 ♦ ~3x of deal closure value in 3Q FY25 3.0 ♦ Exceeded the sum of cloud deal closures recorded during first 3 quarters of the year 2.5 1.1 2.0 ► On-prem to Cloud migrations in Sri Lanka contributed to the boost in ne

  9. Slide 9: Summarized Income Statements

    Summarized Income Statements In LKR millions FY23 FY24 FY25 4Q FY24 3Q FY25 4Q FY25 Revenue 1,464 1,645 1,818 433 431 500 Gross profit 644 665 825 181 201 242 Gross profit margin 44% 40% 45% 42% 47% 48% Normalized EBITDA 138 (148) (120) (33) (35) 33 Normalized EBITDA margin 9% -9% -7% -8% -8% 7% FX

  10. Slide 10: Revenue Drill Down

    Revenue Drill Down 3Yr CAGR YoY growth All in LKR millions FY23 FY24 FY25 4Q FY24 3Q FY25 4Q FY25 (in LKR / USDcc) (in LKR / USD cc) PHR Cloud 678 893 1,075 250 258 306 Subscription Revenue (Recurring) 502 670 887 189 214 233 +43% / +30% +22% / +32% Professional Services 176 222 187 58 44 74 PHR On-

  11. Slide 11: Core Recurring Revenue

    Core Recurring Revenue Annual Core Recurring Core Recurring Revenue Composition Revenue Composition LKR Mn 1400 37% 32% 43% 45% 40% 3yr CAGR +36% 52% 1200 1000 800 63% 68% 57% 55% 60% 600 1,145 +24% YoY (+35% in USD cc) 48% 910 400 708 200 241 295 302 FY23 FY24 FY25 4Q 3Q 4Q FY24 FY25 FY25 0 FY23 FY

  12. Slide 12: Revenue Composition

    Revenue Composition ► PHR Cloud remained the leading revenue contributor, with ► Boost in new sales in the region led to increased steady growth over time revenue contribution from Sri Lanka Product Breakdown Geographical Breakdown 5% 3% 5% 9% 4% 6% 14% 6% 6% 5% 14% 15% 5% 11% 17% 17% 18% 19% 5% 10%

  13. Slide 13: Business Segments: PHR Cloud and On-Premise

    Business Segments PHR Cloud and On-Premise PHR Cloud Revenue PHR On-Premise Revenue LKR Mn LKR Mn 3yr CAGR +42% 450 3yr CAGR -4% 1,200 900 300 600 -22% YoY (-18% in USD cc) +22% YoY (+31% in USD cc) 150 300 - 0 FY23 FY24 FY25 Q4 Q3 Q4 FY23 FY24 FY25 Q4 Q3 Q4 FY24 FY25 FY25 FY24 FY25 FY25 ► PHR Cloud

  14. Slide 14: Business Segments: PHR Tracking Solutions and Outsourcing

    Business Segments PHR Tracking Solutions and Outsourcing PHR Tracking Solutions Revenue PHR Outsourcing Revenue LKR Mn LKR Mn 200 3yr CAGR +22% 125 3yr CAGR +29% 160 100 120 75 +25% YoY (+28% in USD cc) 80 50 +28% YoY (+33% in USD cc) 40 25 0 0 FY23 FY24 FY24 Q4 Q3 Q4 FY23 FY24 FY25 Q4 Q3 Q4 FY24 FY

  15. Slide 15: Cost of Sales Drill Down

    Cost of Sales Drill Down YoY All in LKR millions FY23 FY24 FY25 3Yr CAGR 4Q FY24 3Q FY25 4Q FY25 growth On-site and third-party implementation costs† 94 150 109 +23% 30 23 35 +17% Infrastructure costs†† 170 162 164 +46% 43 40 46 +7% Cost of devices sold 64 49 69 +9% 16 15 23 +43% Mobile solutions re

  16. Slide 16: Analysis of Normalized EBITDA Margin

    Analysis of Normalized EBITDA Margin Expenses as a % of Revenue Normalized EBITDA Margin† 9% 7% 21% 22% 25% 24% 12% 18% 29% 29% 24% 28% 30% 26% 55% 59% 54% 56% 53% 49% -7% -8% -8% -9% FY23 FY24 FY25 4Q 3Q 4Q FY23 FY24 FY25 4Q 3Q 4Q FY24 FY25 FY25 FY24 FY25 FY25 COGS†† Admin Expenses††† S&M Expenses†

  17. Slide 17: Cash Position and IPO Fund Utilization

    Cash Position and IPO Fund Utilization Cash Position IPO Fund Utilization LKR Mn LKR Mn 1600 700 42 1400 600 1200 500 1000 400 800 350 650 300 600 200 400 100 202 140 200 0 Market Development Product Development Total 0 Initiatives Initiatives FY23† FY24† FY25† 4Q FY25† Cash Position IPO Proceeds In

  18. Slide 18: Free Cash Flow Generation

    Free Cash Flow Generation 200 20% 100 10% 0 0% -100 -10% -200 -20% -300 -30% -400 -40% -500 -50% FY23 FY24 FY25 4Q FY24 3Q FY25 4Q FY25 Operating Cash Flow Capex & Lease Payments Free Cash Flow to the Firm FCFF Margin† ► Free Cash Flow to the Firm turned positive indicating improved cash efficiency

  19. Slide 19: Peer SaaS company benchmarking

    Peer SaaS company benchmarking (For the last reported quarter) Private SaaS Public SaaS ARR Growth 36% 27% 15% GTM Efficiency Ratio 139% 180% 160% NRR (Net Revenue Retention) 101% 101% 107% Revenue Churn Rate 5% 12% 5% Notes : PeoplesHR : ARR Growth is reported for Year-over-Year | GTM Efficiency is

  20. Slide 20: Revenue Multiple

    Upside Potential based on Rule of 40 metric 12.00 Monday 10.00 Atlassian Klaviyo 8.00 Revenue Multiple †† Paylocity Median Workday 6.00 Dayforce Box 4.00 SEMrush 2.00 hSenidBiz - 0% 10% 20% 30% 40% 50% 60% Rule of 40 † † Rule of 40 = NTM Revenue YoY Growth % + NTM FCF Margin % † † Revenue Multiple =

  21. Slide 21: Investor Forum

    Investor Forum Join us for the Investor Forum Q&A Session 12th of June 2025 3.00 pm IST for Q4 FY2025 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 questio

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