Slide 1: FY21 Results Presentation
24 August 2021 FY21 RESULTS PRESENTATION ASX:RDY Presenters Marc Washbourne – CEO & Co-Founder Nimesh Shah – Chief Financial Officer
Slide 2: Next generation, people-centric software
NEXT GENERATION, PEOPLE-CENTRIC SOFTWARE 2
Slide 3: Growth across all key metrics
Growth across all key metrics Revenue Underlying EBITDA* Underlying NPATA* Open Office contribution to FY21 revenue 27.4% $18.9m $10.6m $4.8m YoY Growth to $50.0m Margin of 37.8% FY20: $8.3m Achieved 1st earn-out (excl. Open Office 15.1%) Gross opportunity Operation cash flow Customer revenue Recurr
Slide 4: Outstanding growth in recurring SaaS revenue and EBITDA
Outstanding growth in recurring SaaS revenue and EBITDA 4
Slide 5: High value new business wins underpin continued growth
High value new business wins underpin continued growth Key Education & Work Pathways customer wins Substantial FY21 new business performance with 21 high value customers, each generating over $100k in annualised subscription and implementation value, with an aggregate annual value of $5m. High convi
Slide 6: Laser focus on strategic execution
Laser focus on Laser focus on strategic execution strategic execution 67
Slide 7: ReadyTech is building a vertical SaaS playbook
ReadyTech is building a vertical SaaS playbook Delivering high value to segments and verticals Innovation & Market Fit 7
Slide 8: Increased growth achieved through ongoing investment
Increased growth achieved through ongoing investment Product-market fit Go-to-market Scaling Focused product alignment for superior Grow sales and marketing spend and Efficient and streamlined operations retention and customer acquisition. target higher value customers. to support accelerated growth
Slide 9: Laser focus on FY21 financial performance
Laser focus on FY21 financial strategic execution performance 97
Slide 10: Solid revenue growth of 27.4%
Solid revenue growth of 27.4% $ MILLIONS • Total revenue of $50.0m representing 27.4% YoY growth and 15.1% YoY growth excluding Open Office. Subscription and YoY % license revenue was $43.3m representing 87% total revenue FY21 FY20 change and a 23.4% YoY growth. Subscription and licence revenue 43.3
Slide 11: Cash conversion and debt headroom
INCREASED OPERATING CASHFLOW, DEBT HEADROOM AND COMFORTABLE BALANCE SHEET SUPT INVESTMENT Strong cashflow and balance sheet support further growth 25.0 120% NET DEBT AS AT 30 JUNE $ Millions Cash flow from operating activities Cash conversion (as % of EBITDA) 110% $ MILLIONS 30 Jun 21 30 Jun 20 20.0
Slide 12: Laser focus on Education & Work Pathways
Laser focus on Education & strategic execution Work Pathways 12 7
Slide 13: Education market remains significant opportunity
GROWTH IN EDUCATION REVENUE AND EBITDA Education market remains significant opportunity Great progress made penetrating the large addressable market of tertiary education, training and back-to-work ENTERPRISE PRIVATE PRIVATE BACK- STATE (TAFE/UNIVERSITY) COLLEGES (VET) HIGHER ED TO-WORK GOVT MARKET
Slide 14: The next generation student management system
The next generation student management system Our product differentiators and why we are winning customers in a sector ready for change STUDENT WHY WE ARE WINNING CUSTOMERS ACQUISITION, ADMISSIONS & ENROLMENT OPEN ECOSYSTEM Interoperability with best in class GRADUATION, COURSE PLACEMENT & MANAGEMEN
Slide 15: Driving growth in customer base
Driving growth in customer base Enterprise Private Training Provider Employment Services Student Management System Learning Management System UK – Behavioural Science Type of customer Type of customer Type of customer Enterprise training organisation. Private training organisation offering nationall
Slide 16: Revenue and earnings both growing strongly
GROWTH IN EDUCATION REVENUE AND EBITDA Revenue and earnings both growing strongly Highlights • Revenue growth of 16.9% to $24.9m, driven by substantial new business, cross-sell and significant upgrades from existing $ MILLIONS customers. FY21 FY20 YoY % growth • Average revenue per new customer of $
Slide 17: Laser focus on Workforce Solutions
Laser focus on Workforce strategic execution Solutions 17 7
Slide 18: Workforce Solutions focused on addressable market of $2.4bn
Workforce Solutions focused on addressable market of $2.4bn Mid-to-enterprise market focused SaaS solving complex payroll and workforce management in stand-up economy Addressable market in ANZ represents 7 million employees and Targeting initial industry verticals with all-in-one offering $2.4 billi
Slide 19: All-in-one workforce management system
All-in-one workforce management system Our all-in-one cloud offering is differentiated, meeting customer needs and driving growth WHY WE ARE WINNING CUSTOMERS RECRUITMENT & ONBOARDING TRUST Highly trusted brand for mission-critical payroll function INTEGRATED ROSTERING REPORTING ONE VENDOR RELATIONS
Slide 20: Strong pipeline conversion to secure new customers
Strong pipeline conversion to secure new customers De Bortoli Tasco Petroleum Bostock Type of customer Type of customer Type of customer Beverage manufacturer with 380 employees. Logistics business with 240 employees. Agriculture (growers) with 370 employees. Driver of new/change of system Driver of
Slide 21: Sustainable revenue and EBITDA growth
GROWTH IN EDUCATION REVENUE AND EBITDA Sustainable revenue and EBITDA growth Highlights $ MILLIONS • Revenue growth of 13.3% to $20.3m, driven by new customer FY21 FY20 YoY % growth wins from all-in-one platform, and significant upgrades from existing customers. Revenue 20.3 17.9 13.3% • Average rev
Slide 22: Laser focus on Government & Justice
Laser focus on Government strategic execution & Justice 22 7
Slide 23: Digital transformation creating addressable market
Digital transformation creating addressable market Market tailwinds across Government & Justice driving growth Global digitisation of government Estimate that over 75% of the 530+ Next generation public sector Digitisation accelerated by COVID- services and migration to cloud councils have purchased
Slide 24: Ready to digitize Government & Justice
Ready to digitize Government & Justice Digital transformation for improved customer service and growing community expectations WHY WE ARE WINNING CUSTOMERS ASSET & PROPERTY MANAGEMENT CITIZEN-CENTRIC 360-view of customer and connected self-service COURTS & LICENSING & JUSTICE CASE MANAGEMENT COMPLIA
Slide 25: Recent customer wins
Recent customer wins Goondiwindi Regional Glen Innes Severn Legal Services Council Council* Commission SA* Type of customer Type of customer Type of customer Local government (council) Local government (council) Justice case management Driver of new/change of system Driver of new/change of system Dr
Slide 26: Strong Government & Justice contribution
GROWTH IN EDUCATION REVENUE AND EBITDA Strong Government & Justice contribution Highlights $ MILLIONS • P&L contribution reflects the short period of ownership post ReadyTech ownership acquisition. Revenue 4.8 • On a 12-month proforma basis, Open Office generated FY21 revenue of $18.3m, driven by ne
Slide 27: Strategy and outlook
Strategy and outlook Well positioned to grow ReadyTech targets organic revenue of over $125m by FY26. 27
Slide 28: FY22 outlook
FY22 outlook RDY expects FY22 organic revenue growth in the mid-teens, with full twelve months FY21 Open Office revenue being $18.3m. EBITDA margin is expected to be in the range of 36% to 38%. 28
Slide 29: Strategic approach underpins long term growth
Strategic approach underpins long term growth The ReadyTech flywheel 29
Slide 30: Key take-outs
Key take-outs $ Millions 1H FY21 1H FY20 REVENUE DRIVEN PRODUCT VALIDATION ROBUST & GROWING CONTINUED SUCCESSFUL BY CONTINUOUS INTO INTERNATIONAL 5-YEAR OUTLOOK BUSINESS PIPELINE M&A RE-INVESTMENT MARKETS Sizeable new business Open Office acquisition Ongoing investment in Expansion into Well positio
Slide 31: Disclaimer
Disclaimer This presentation has been prepared by ReadyTech Holdings Limited for professional investors. The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The informa
Slide 32: For more information
For more information: Ronn Bechler Market Eye Pty Ltd t. +61 400 009 774 e. ronn.bechler@marketeye.com.au About ReadyTech ReadyTech is a leading provider of mission-critical SaaS for the education, workforce management, government and justice sectors. Bringing together the best in people management