Integrated Research Limited · ASX:IRI
Integrated Research — Shareholder Meeting (November 2024)
24 slides from Integrated Research's shareholder meeting presentation, Nov 25, 2024
Slide 1: FY2024 Annual General Meeting
Integrated Research Limited (ASX: IRI) FY2024 Annual General Meeting 25 November 2024
Slide 2: Disclaimer
Disclaimer SUMMARY INFORMATION FORWARD LOOKING STATEMENTS NOT AN OFFER 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 is not a prospectus, be
Slide 3: How to ask a Question?
How to ask a Question? • To ask a written question select the Q & A icon • Select the topic your question relates to from the drop-down list • Type your question in the text box and press the send button • To ask a verbal question, follow the instructions below the broadcast window 3
Slide 4: How to Vote?
How to Vote? • When the poll is open, select the vote icon at the top of the screen Items of Business • To vote, select either For, Against or Abstain 2A Re-elect Mr Sam Sample as a Director FOR AGAINST ABSTAIN • You will see a vote confirmation 2B Re-elect Ms Jane Citizen as a Director • To change
Slide 5: Chair's Address
Chair’s Address Peter Lloyd
Slide 6: CEO Address
CEO Address Ian Lowe
Slide 7: FY24 Key Highlights
FY24 Key Highlights A year of strong financial performance and people / strategy reset, designed to drive growth Strong Financials Robust Growth in Reset For Product Led Americas and Europe Growth Strategy TCV up 22% Americas TCV up ~50% Focus on customer led Revenue up 19% Europe TCV up ~30% innova
Slide 8: Full-Year Performance Review: Statutory (A$M)
Full-Year Performance Review: Statutory (A$M) Improving market dynamics and prudent cost management drives profits 83.3 76.3 72.4 69.8 CASH RECEIPTS FROM REVENUE 5% 19% CUSTOMERS Jun-23 Jun-24 Jun-23 Jun-24 24.6 12.1 13.8 13.0 NET OPERATING EBITDA 103% CASHFLOW 6% Jun-23 Jun-24 Jun-23 Jun-24 31.9 27
Slide 9: Full-Year Performance Review: Proforma (A$M)
Full-Year Performance Review: Proforma (A$M) Strong year for renewals 83.9 68.5 67.5 66.6 TOTAL CONTRACT ANNUAL RECURRING VALUE (TCV) 22% REVENUE 1 1% Jun-23 Jun-24 Jun-23 Jun-24 75.6 74.8 PROFORMA 17.5 16.7 PROFORMA REVENUE 1% EBITDA 5% Jun-23 Jun-24 Jun-23 Jun-24 101% 97% 23% 22% CASH CONVERSION E
Slide 10: Capital Management and Dividend
Capital Management and Dividend IR’s Capital Allocation Priorities: 1. Invest in innovation: – Allocate up to an additional 10% of TCV annually to product innovation for new revenue streams – M&A considered if right-sized, synergistic, in growth markets and supportive of product strategy – Targeting
Slide 11: IR operates in the Observability market
IR operates in the Observability market What is ‘Observability’? Real time observation of critical technology & infrastructure performance, including: • Log management • Application performance monitoring • Infrastructure monitoring Use cases include: • Performance management/optimisation • Security
Slide 12: IR's Observability Offering powered by Prognosis
IR’s Observability Offering powered by Prognosis Collaborate Transact Infrastructure Enterprise UC Cards NonStop Contact Center High Value Payments Service Provider Real-Time Payments 12
Slide 13: Global, blue chip client base
Global, blue chip client base Long-term, high value relationships based on mission critical solutions Tech | Telco BFSI Health | Gov | Edu Retail |Industrial | Other 5/25 Fortune 500 top 5/20 largest Australian 5/10 top telcos 6/10 top USA banks companies companies (market cap)
Slide 14: Observability is a non-discretionary item
Observability is a non-discretionary item 40.0% 35.0% 30.0% • For approximately 53% of 25.0% revenue generating 20.0% services, the cost for 1 hour 15.0% of critical infrastructure 10.0% downtime is greater than USD $100k 5.0% 0.0% Less than $25,000- $49,000- $100,000- $250,000- $500,000- $1 million
Slide 15: Observability is a large and growing market…
Observability is a large and growing market… (USD investment in Observability solutions) • Adoption of cloud based solutions is driving market growth • On-Premises remains a large market and holding ground • Enterprise clients are moving to a hybrid model: combination of on-premises + cloud • IR pro
Slide 16: IR provides solutions for both the on-premises and cloud segments…
IR provides solutions for both the on-premises and cloud segments… • IR offering is well differentiated in the low growth ‘on-premises’ segment, but not well differentiated in the high growth ‘cloud’ segment • Clear product differentiation aligned to the high growth cloud segment best positions the
Slide 17: Growth in non-renewal revenue is central to sustained growth
Growth in non-renewal revenue is central to sustained growth $100 $90 • YOY revenue contribution from $80 contract renewals is variable, $70 and was significant in FY24. $60 $50 • New products aligned with the $40 high growth cloud segment: $30 – Maximises our growth $20 opportunity $10 – Differenti
Slide 18: What does it mean..?
What does it mean..? We need to evolve for growth. • Generate new revenue by creating the new products we know enterprise clients need: – New revenue from existing clients – New revenue from new clients – Clearly differentiate our cloud based offering • Focus the sales approach: – Target enterprise
Slide 19: Evolve our value proposition with new products & capabilities
Evolve our value proposition with new products & capabilities Current State Future State • What is going wrong in •What does it mean for my customers and my employees? my technology •What can I anticipate might go wrong in the future and how do I avoid it? ecosystem? •I’ve identified the problem, ho
Slide 20: Leveraging existing assets
Leveraging existing assets • Utilise the data, IP and expertise we already have • IR Labs capability (Machine Learning & AI) • Global, blue chip client base • Global sales organisation powered by Prognosis IR Labs Collaborate Transact Infrastructure Enterprise UC Cards NonStop Big Data, Real Time Co
Slide 21: In Summary…
In Summary… • Observability is a large and growing market opportunity ($28B by 2027) • IR has a proven, established offering and a global blue chip client base • Generate more new client revenue by creating new capabilities • Continue to focus the sales approach (ICP) • Modernise & simplify • Manage
Slide 22: FY25 Priorities & Observations
FY25 Priorities & Observations • New product capabilities to launch in 2H FY25 and ongoing • Innovation via IR Labs to accelerate • Value of FY25 contract renewals softer than FY24 and weighted to 2H • Targeting improving renewal rate for Collaborate, to wash through off the back of focus on ICP • V
Slide 23: Our strengths are considerable…
Our strengths are considerable… • Foundational elements of IR’s business remain critically valuable: – Independence: IR is a specialist monitoring technology provider, not a vendor – Aggregation: the Enterprise technology supply chain is becoming more fragmented and more complicated - IR aggregates
Slide 24: Vision…
Vision… To become the world’s leading independent provider of business critical technology & infrastructure intelligence. 24
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