Hubify Ltd. · ASX:HFY
Hubify — H1 FY2023 Earnings Presentation
24 slides from Hubify's earnings presentation, February 2023
Slide 1: Investor Presentation 1H FY23
INVESTOR PRESENTATION 1H FY23
Slide 2: Business Update
BUSINESS UPDATE Presented by Victor Tsaccounis CEO
Slide 3: Our Company
OUR COMPANY One hub enabled by partnerships with industry leading companies Unifying people & technology for over 20 years The hub for all your business Telco, IT & Our customers are organisations with 10 to 1,000 employees who value personalised Technology needs service, reliability and forward-thi
Slide 4: Hubify One
HUBIFY ONE Delivering a single IT services solution for SMB from end point management to strategic direction at one fixed cost From Quarterly Reporting to Mobile Device Management, Hubify One offers more than just a solution to your IT needs with Strategic Advisory and service delivered from industr
Slide 5: What Makes Us Unique?
WHAT MAKES US UNIQUE? We provide Australian businesses a one stop shop for all their Telco & IT needs Proactive & Reliability – We do Agile & fit for Responsive Customer what we say we purpose solutions Experience will do Our Values ACCOUNTABILITY THINK BIG PASSION ONE TEAM We always do what We thin
Slide 6: Business Update 1H FY23
BUSINESS UPDATE 1H FY23 1H FY23 Results 1H FY23 Business Execution Activities • Revenue from Customers up 9.8% on pcp to $11.85m • Enhanced Cyber Security offering – New products launched • MSP Division growth of 92.5% on pcp to $4.48m representing 38% • Integrating Managed Services acquisitions of
Slide 7: Financial Results
FINANCIAL RESULTS Presented by Nick Fitzgerald CFO
Slide 8: Key Financial Indicators 1H23 vs Prior Period
KEY FINANCIAL INDICATORS 1H23 vs PRIOR PERIOD (PcP) Customer Revenue Recurring Revenue Key Highlights $11.85m $9.73m $ in Millions $ in Millions • Revenue from Customers up 9.8% to $10.79m $11.85m with 92.5% increase in Managed Services to $4.48m 9.8% 24.3% • Organic growth of 20% in core $7.83m bus
Slide 9: 1H FY23 – Financial Performance
1H FY23 – Financial Performance 1H 23 1H 22 Variance Total Revenue $11.85m $11.55m 2.6% Key Highlights • Customer Revenue improvements in Revenue from Customers $11.85m $10.79m 9.8% MSP divisions drove an increase in total customer revenue of 9.8% on pcp to Recurring Revenue $9.73m $7.83m 24.3% $11.
Slide 10: Balance Sheet & Cashflow
BALANCE SHEET & CASHFLOW 1H 23 1H 22 Variance Cash & cash Equivalents 2.58 4.68 (47.1)% Key Highlights • $2.58m cash at 31 December, Debt Receipts from Customers 14.12 11.16 20.9% free together with 84.7% growth in underlying cashflow Payments to suppliers & employees (14.03) (11.79) 16.0% • Deploye
Slide 11: Recurring Revenue Gains Driven by MSP
RECURRING REVENUE GAINS DRIVEN BY MSP Actual Recurring Revenue – Half on Half Annualised Recurring Revenue* 9% 2% 14% 9% 26% 9.7 17% 17.9 8.9 17.7 24% 21% 14% 7.8 35% 16.2 6.2 13.9 $ in Millions $ in Millions 5.0 11.5 4.4 8.5 2H20 1H21 1H21 1H22 2H22 1H23 Jun 20 Dec 20 Jun 21 Dec 21 Jun 22 Dec 22 *
Slide 12: Revenue Waterfall 1H23 vs 1H22
REVENUE WATERFALL 1H23 vs 1H22 Key Highlights • Managed Services is the driver of revenue growth up 92.5% to a $4.48m total in 1H FY23 with addition of +0.42 new customers and inclusion of new acquisitions -1.17 • Smart Data up 57% to $1.17m driven by the increasing +2.27 -0.46 -0.76 client demands
Slide 13: EBITDA Waterfall 1H23 vs 1H22
EBITDA WATERFALL 1H23 vs 1H22 Key Highlights -1.09 +1.4 • Customer Revenue up 9.8% to $11.85m and associated gross margin steady at 71% and $8.43m driven by ICT performance with offsets in deterioration in Mobility performance due to Optus Cyber attack +1.07 -0.76 +0.66 Mobility margin -0.67 • Admin
Slide 14: Divisional Results
DIVISIONAL RESULTS Presented by Victor Tsaccounis CEO
Slide 15: 1H FY23 Divisional Performance
1H FY23 DIVISIONAL PERFORMANCE CUSTOMER REVENUE & MARGIN Division Segment 1H 23 1H 22 Variance 1H 23 Margin % Managed Services 4.48 2.21 102.8% 61.5% MSP 2.47 1.54 61.0% Key Highlights Hardware 0.49 0.516 (4.3%) • Managed Services revenue growth across Licensing 0.64 0.11 483.4% all value-adde
Slide 16: Managed Services
MANAGED SERVICES Organic growth of 51% in line with the company's strategy to continue building annuity revenue through value added services to clients Acquisition growth attributed to the addition of Connected Intelligence and organic growth attributed to the addition of several new Managed Service
Slide 17: Voice
VOICE 13% revenue difference driven by migration of customers to new technology delivering higher margins The focus in FY23 is to migrate customers on traditional on-prem voice products to MS 01 02 03 04 05 Teams and 3CX calling. The migration with a reduced cost to serve will extract more profit in
Slide 18: Data - Internet & Networks
DATA - Internet & Networks 4% organic growth in revenue through added services to MSP solutions Due to the low margins (particularly in NBN) the company views data as an enabler for 01 o2 03 04 Managed Services Growth and there is no specific focus on growth in this product as a stand-alone service.
Slide 19: Mobility
MOBILITY Positive outlook despite the decline in revenue of 27.5% largely due to the Optus Cyberattack of Sep 2022 with prospects deferring decisions to sign new contracts Core revenue in the Mobility Division relates 01 02 03 04 05 to the reseller partnership with Optus. Pipeline is growing post th
Slide 20: Smart Data
SMART DATA Solid growth of 56% due to increased customer demand. Demand expected to continue into FY24 The Smart Data Division comprises of the Sennah Pty Ltd acquisition completed in 01 02 03 04 June 2021 at 1 x EBITDA with expected annual revenue of $1.7m. This investment is now exceeding Data Pro
Slide 21: FY23 Strategic Plan Update
FY23 STRATEGIC PLAN UPDATE KEY FOCUS AREAS Customer Retention • Key customer relationship management delivered through improved customer experience • Customer self-service portals with added quality and further value-added features • Strategic IT advisory providing a roadmap for expanded services th
Slide 22: Performance Summary 1H FY23
PERFORMANCE SUMMARY 1H FY23 1H FY23 Results Outlook • Revenue from Customers up 9.8% on pcp to $11.85m Importantly, in summary, the Company remains confident in • MSP Division growth of 92.5% on pcp to $4.48m representing continuing its strong organic revenue growth trajectory and realising 38% of t
Slide 23: Disclaimer – Earnings Disclosure
DISCLAIMER – EARNINGS DISCLOSURE This update may contain forward-looking statements. Whilst Hubify Limited has no reason to believe that any such statements are either false, misleading, or incorrect. It cannot and does not warrant or guarantee that through either the passage of time or actions beyo
Slide 24: Contact details
Victor Tsaccounis Mark Gell Jane Morgan Chief Executive Officer Investor Relations Media Relations Hubify Limited – ASX : HFY Reputation Edge Jane Morgan Management T: +612 9003 9510 T: +61 419 440 533 T: +61 405 555 618 E: vtsaccounis@hubify.com.au E: mgell@reputationedge.com.au E: jm@janemorganman