Credit Clear Limited · ASX:CCR
Credit Clear — Q3 2024 Earnings Presentation
17 slides from Credit Clear's earnings presentation, Apr 22, 2024
Slide 1: Continued Growth: FY24 Q3 Results Presentation
For personal use only CONTINUED GROWTH FY24 Q3 Results Presentation ASX: CCR | 22 April 2024 • Record revenue this quarter • Sustainable cash from operations for past 12 months • Expecting strong seasonal uplift in Q4
Slide 2: Important information
Important information This presentation has been prepared by and is the sole responsibility of Credit Clear No representation or warranty, express or implied, is made by any person as to the Limited ACN 604 797 033 (Company). The information contained in this presentation fairness, accuracy, complet
Slide 3: Agenda
Agenda 1. CEO Update For personal use only Andrew Smith 2. Financial Update Victor Peplow 3. Technology and Strategy Update Jason Serafino 4. Q&A 3
Slide 4: Q3'24 – Key Metrics
Q3’24 – Key Metrics Record revenue overcoming seasonality, 4 quarters of positive cash generation from operations, and a strong balance sheet $10.5m $0.2m $12.4m For personal use only Q3’24 Revenue1 Cash from Operations1,2 Cash at bank +22% PCP Improvement $0.8m PCP Funded for growth opportunities +
Slide 5: Merger created integrated debt resolution provider; our strategy is working
In February 2022 Credit Clear, ARMA and Oakbridge Lawyers merged to create an integrated, digitally enabled, end-to-end provider of debt resolution services. For personal use only We believed “traditional plus digital” would be a unique and successful proposition… … our strategy is working Winning n
Slide 6: Since the merger we have:
Since the merger we have: ü Won material new clients including leading ü With an increasing percentage of digital collections, For personal use only insurers, big four banks, large utilities providers, and we expected gross margins to improve, and they government bodies have from 51% for Q3’23 to 53
Slide 7: Growing adoption and use of SaaS platform
Growing adoption and use of SaaS platform Digital revenue has a gross margin of ~80% For personal use only • Record quarterly digital collections of $29.6m, up Quarterly Digital Collections ($m) 30 59% PCP 29 28 • March result highlights the impact of Tier-1 clients 27 adopting digital engagement st
Slide 8: Q3'24 – Leading indicators
Q3’24 – Leading indicators Referred debt files increasing in value and volume $2.4bn 1.3m 83 For personal use only Value of files under Active files New clients management (FUM) +18% PCP +70% success rate on +61% PCP tenders FUM ($bn) Active files (m) 2.5 1.5 1.4 2.3 1.3 New clients include: 2.1 1.2
Slide 9: Clients building momentum
Clients building momentum Combined end-to-end and integrated offering is unmatched in Australia with SaaS platform and integrated contingent collections resonating strongly with clients providing strong sales momentum For personal use only 18 42 2 Tier 1 clients1 in Q3’24 3 Tier 2 clients2 in Q3’24
Slide 10: Clients already signed building momentum
Clients already signed building momentum • Tier 1 clients • 2 not generating any revenue yet (still Credit Clear delivered record For personal use only onboarding) revenue of $10.5m, up 22% on • 2 are onboarded and beginning to build momentum pcp, on track to achieve guidance guidance which was upgr
Slide 11: Strong alignment with shareholders
Strong alignment with shareholders • Board and management deeply For personal use only invested • Strong support from long-term institutional investors • New substantial institutional investor this quarter (Perennial) • Original founders of Credit Clear owned businesses remain strongly aligned and s
Slide 12: FY24 Outlook
FY24 Outlook • Economic conditions are supportive with internal and external data suggesting a significant For personal use only Macroeconomic increase in overdue accounts from all time lows pre and during COVID-19 tailwinds • Australian companies clearly preparing for a deterioration in the economi
Slide 13: For personal use only
For personal use only CEO & MD Andrew Smith Credit Clear E: andrew@armagroup.com.au Investor Relations Warrick Lace Credit Clear e: warrick.lace@creditclear.com.au m: +61 404 656 408 13
Slide 14: Illustrative client onboarding timeline
Illustrative client onboarding timeline For personal use only Reduce size of panel and broadening scope of work Increase share of business on panel 0 0-3 mths 3-6 mths 3 6-9 mths 6 9-12 mths 9 12-1512+ mths Optimisation, champion / Onboarding challenger testing, performance reporting Initial portfol
Slide 15: What sets us apart?
What sets us apart? Credit Clear Limited is an integrated and end-to-end provider of debt resolution services For personal use only An ASX-listed company Trusted by thousands of clients, in highly Strong economic Aligned with rapidly that has a commercially regulated and diverse tailwinds and indust
Slide 16: Business model
Business model For personal use only Sales: Client appoints Credit Clear Notes: 1. We do NOT buy debt, we Finance: Onboarding: work with our clients to Credit Clear resolve their customers’ Credit Clear and receives a commission client establish a overdue accounts two-way data and/or fee for account
Slide 17: Economic tailwinds
Economic tailwinds Deterioration in economic conditions Household real incomes are not For personal use only expected to recover to their pre- pandemic levels until 2027, with new data showing Australia’s prolonged decline in living standards extended into the second half of 2024. In the 12 months t