Slide 1: FY21 Interim Results Presentation
FY21 INTERIM RESULTS PRESENTATION 18 NOVEMBER 2020
Slide 2: Disclaimer
DISCLAIMER • This presentation has been prepared by Serko Limited. All information is current at the date of this presentation, unless stated otherwise. All currency amounts are in NZ dollars unless stated otherwise. • Information in this presentation • is for general information purposes only, and
Slide 3: CEO Welcome
CEO Welcome be serko
Slide 4: Agenda
AGENDA Financial Strategic Outlook CEO Welcome Highlights Updates Statement 4 |
Slide 5: FY21 H1 Financial Highlights
FY21 H1 Financial Highlights The FY21 Half Year Results to 30 September 2020 are unaudited. The half year results have been prepared in accordance with New Zealand equivalents to International Financial Reporting Standards. All other accounting policies have been applied on a consistent basis with t
Slide 6: Performance Dashboard – Half Year FY21
PERFORMANCE DASHBOARD – Half Year FY21 FY21 (H1) VS FY20 (H1) - Unaudited PROFIT (LOSS) REVENUE ACTIVITY COSTS ($10.1m) -66% -65% -44% -60% -77% -34% 14% NET LOSS AFTER OPERATING RECURRING TOTAL PEAK ATMR3 TRAVEL R&D COSTS4 OPERATING TAX REVENUE REVENUE2 INCOME BOOKINGS EXPENSES $(6.7)m $5.1m $4.6m
Slide 7: Net Profit Summary / EBITDAF Reconciliation
NET PROFIT SUMMARY/ EBITDAF RECONCILATION Net Profit Summary H1 FY21 H1 FY20 FY20 6 months 6 months change change 12 months EBITDAF Reconciliation $000 $000 $000 % $000 Operating Revenue 5,061 14,671 (9,610) -66% 25,869 Other income (including Grants) 3,472 541 2,931 542% 922 • Operating Revenue of
Slide 8: Revenue Analysis
Revenue and Other Income H1 FY21 H1 FY20 FY20 REVENUE ANALYSIS by Type 6 months $000 6 months $000 change $000 change % 12 months $000 Travel platform revenue 2,159 9,243 (7,084) -77% 16,307 Expense platform revenue 2,013 2,991 (978) -33% 5,831 • Recurring product revenue down 65%. Content commissio
Slide 9: Transaction Analysis - Australasia
TRANSACTION ANALYSIS - AUSTRALASIA • Travel bookings as % of prior year were 33% for the month of September (23% for the six month period). For October this further improved to 35%. • New Zealand bookings for September was 68% and 76% for October. • Australian bookings for September was 25% and 26%
Slide 10: Operating Expenses
OPERATING EXPENSES • Operating costs as a comparison to the first half of last year increased primarily H1 FY21 H1 FY20 FY20 Operating Expenses as a result of increased remuneration 6 months 6 months change change 12 months and benefits (R&B) up 46%, mainly due $000 $000 $000 % $000 to increased hea
Slide 11: Research & Development
RESEARCH & DEVELOPMENT R&D Costs – Expensed H1 FY21 H1 FY20 FY20 6 months 6 months change change 12 months $000 $000 $000 % $000 • Total R&D costs decreased by $3m over prior period. Total R&D costs (including amounts capitalised) 5,898 8,921 (3,023) -34% 13,606 • Net product development costs Perce
Slide 12: Strategic Updates
Strategic Updates be serko
Slide 13: Foundations of the Path to $100 Million Revenue
FOUNDATIONS OF THE PATH TO $100 MILLION REVENUE 13 |
Slide 14: Accelerating to Execute on the Opportunities of a Changing Business Travel Market
ACCELERATING TO EXECUTE ON THE OPPORTUNITIES OF A CHANGING BUSINESS TRAVEL MARKET CRISES FUELLED FOR STRATEGICALLY BRING OPPORTUNITY GROWTH POSITIONED The COVID-19 pandemic is a rare Serko’s recent $67.5 million capital Serko’s priority is to ensure it has the event that is reshaping parts of the ra
Slide 15: Australasia Market Update
AUSTRALASIA MARKET UPDATE DOMESTIC FOCUS Approximately 93% of Serko’s revenues come from domestic bookings in Australia and New Zealand which are not reliant on the re-opening of International borders. RETURN TO TRAVEL Lifting of travel restrictions in New Zealand saw a rapid return to over 75% of p
Slide 16: North America Market Update
NORTH AMERICA MARKET UPDATE NORTH AMERICA READY We have continued to tailor North American content and integrations that helped Serko win and launch ZS Associates, our largest customer to date in this market. INCREASED DISTRIBUTION Since 31 March 2020, we have added four new TMC resellers in North A
Slide 17: Booking.com Update
BOOKING.COM UPDATE SCALING TO THE PILOT CUSTOMERS ENTRY INTO NEW OPPORTUNITY ARE LIVE GLOBAL MARKETS Serko and Booking.com are working The Booking.com for Business Customers will be able to sign-up to the new together to bring a best-in-class platform powered by Zeno is now Booking.com for Business
Slide 18: Outlook Statement
Outlook Statement be serko
Slide 19: FY21 Outlook
FY21 OUTLOOK • Serko is well positioned for growth when trading conditions improve and the business travel industry starts to recover. • Timing, however, remains uncertain. As a result, we are unable to forecast our likely operating revenue for the 2021 financial year with any certainty. • Serko con
Slide 20: Q&A
Q&A
Slide 21: Appendices
Appendices: Company Snapshot Definitions
Slide 22: About Serko
ABOUT SERKO FOUNDED IN 2007 Innovative Solutions Market Leader NZX/ASX Listed Serko is a technology company focused on Serko is a leading supplier of travel Serko listed on the New Zealand stock innovative solutions that address the technology solutions for TMCs in Australasia exchange in June 2014.
Slide 23: Serko Products: Zeno Travel and Zeno Expense
SERKO PRODUCTS Zeno Travel Zeno Expense Zeno Travel is an Online Zeno Expense automates the Booking Tool (OBT) that process of corporate card corporate travellers use to and out-of-pocket expense book flights, trains, hotels, submission, reconciliation and rental cars and airport reimbursement. tran
Slide 24: Serko Strategy
SERKO STRATEGY Grow average revenue per booking (ARPB) by offering increased content and moving customers to our premium offering Zeno Offer premium, integrated global solutions Technology Innovation Grow ARPB Grow Customer Base Expand into new territories through strategic alliances and reach the u
Slide 25: Commercial Model
COMMERCIAL MODEL Booking and other fees $ Serko Corporate traveller makes a booking via Serko charges the TMCs a fee per booking Online/Zeno (which varies based on volume). Monthly user fee Year Ended 31 March 2020 a Traveller submits receipts using Serko Expense/Zeno $ Serko Expense customers pay a
Slide 26: Performance Dashboard – FY20
PERFORMANCE DASHBOARD – FY20 FY20 VS FY19 PROFIT (LOSS) REVENUE ACTIVITY COSTS ($9.4m) 11% 16% 9% 6% 2% 48% 59% NET LOSS AFTER OPERATING RECURRING TOTAL PEAK ATMR 3 TRAVEL R&D COSTS 4 OPERATING TAX REVENUE REVENUE 2 INCOME BOOKINGS EXPENSES $(6.1m) $25.9m $24.1m $26.8m $27.5m* 4.2m $13.6m $37.1m EBI
Slide 27: Historic Measures for Financial Years
HISTORIC MEASURES for financial years (31 March) Selected Operational Metrics FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Total revenue growth (%) 27% 39% 55% 27% 9%# 28% 28% 11%# Revenue growth – Travel Platforms (%) 41% 12% 62% 49% 8% 23% 20% 2% Total travel booking transactions (000s) 987 1,107 1,588
Slide 28: Definitions
DEFINITIONS • Peak ATMR (Annualised Transactional Monthly Revenue) is a non-GAAP measure. Serko uses this as an indicator of recurring revenues from Serko products. It is calculated by annualising the combination travel and expense platform monthly revenues for the most recent non-seasonal month. Th
Slide 29: Thank you
Thank you serko