Essensys Plc · LSE:ESYS
Essensys — H1 2024 Earnings Presentation
28 slides from Essensys's earnings presentation, May 2024
Slide 1: Half year results presentation
Half year results presentation for the six months ended January 2024 Mark Furness Chief Executive Officer & Founder Sarah Harvey Chief Financial Officer
Slide 2: H1 24 Highlights
H1 24 Highlights Significant progress towards profitability and cash generation with Adjusted EBITDA loss narrowing to £0.5m from £4.2m Focus on simplification and operational efficiency delivered £8m of annualised cost savings Two major expansion contracts signed with large strategic customers to d
Slide 3: Financial review
inancial . VIEW essensvs
Slide 4: Financial highlights H1
Financial highlights H1 24 £11.7m Total revenue -9% £7.0m Gross profit -4% 60% Gross margin +3pp £10.2m £20.1m ARR £(0.5)m £3.5m Recurring -4% 87% mix +5pp £1.5m Adj EBITDA +88% Cash balance Contracted ARR1 £6.8m -16% £4.4m -2% £0.5m +67% North America UK & Europe APAC 1New ARR contracted not live a
Slide 5: Income statement
Income statement SIX MONTHS ENDED 31 JANUARY (£’000) 2023 2024 REVENUE Recurring 10,628 10,172 Non-recurring 2,281 1,561 TOTAL REVENUE 12,909 11,733 8,063 6,861 US impact of non-recurring and fx of which: North America 4,501 4,368 Good progress in APAC UK & Europe 345 504 UK decline slowing APAC Cos
Slide 6: ARR bridge July 2023 to January 2024 (£m)
ARR bridge July 2023 to January 2024 (£m) 6
Slide 7: Adjusted EBITDA movements H123 to H124 (£m)
Adjusted EBITDA movements H123 to H124 (£m) 7
Slide 8: Cashflow statement
Cashflow statement SIX MONTHS ENDED 31 January (£’000) 2023 2024 Adjusted EBITDA (4,160) (453) Add: exceptional costs (521) - Changes in working capital (3,344) (2,256) Payment of £1m Other exceptional reorganisation CASH FROM OPERATIONS (8,025) (2,709) costs Tax & foreign exchange - 25 NET CASH FLO
Slide 9: Cashflows H1 24 (£m)
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Slide 10: Operational review
operational 7 VIEW essensvs
Slide 11: Operational highlights H124
Operational highlights H124 474 sites +8 7 new customers 6 Strategic 100 114 95% 2.6 : 1 Customers People Net revenue LTV:CAC -2 -25% Retention +0.5 –3ppt 303 -5 156 +9 15 +4 UK & Europe APAC North America Landmark - Lighthouse in Kings Cross, UK 11
Slide 12: Improving quality customer base
Customer movement by region Improving quality customer base Strategic customers replacing small operators + 6 new strategic customers -1 strategic + 1 non-strategic -8 small Reasons for customer churn Proportion of total strategic ARR Strategic customers New strategic customers by APAC region 7% 84%
Slide 13: Continued site growth
Continued site growth Strategics continue to replace small operator sites; return to growth in UK & Europe Gross site closures Strategic customer optimization 5 Non-strategic customer sites 13 Single strategic customer churn 5 Total net site increase 8 97% of new sites with Strategic customer sites
Slide 14: Proposition and market evolution
Proposition and market evolution 14
Slide 15: Milestone customer expansions
Milestone customer expansions US Australia 3 year term 5 year term Master Service Agreement Master Service Agreement $1M ARR min. contracted $1M ARR min. contracted +350 sites in total 30 sites for Phase 1 US headquartered global CRE company Listed Australian REIT 15
Slide 16: Evolution to pure play SaaS
Evolution to pure play SaaS IT tool Business tool 2006 2024 Future Bandwidth Access Manage physical & digital access Phones Intelligence Space utilisation & DX insights IP address Experience Mobile-first, seamless journeys 16
Slide 17: essensys Platform
essensys Platform Access Manage occupiers, spaces and digital services Intelligence Real-time insights deliver deep understanding of space utilisation and occupier experience Experience Powerful automation engine delivers seamless in- building experiences Integrate to create world class ecosystem Ma
Slide 18: essensys Platform Intelligence Engine
essensys Platform Intelligence Engine Why? Intelligence Engine Office utilisation Single, centralised platform Global avg. vs. pre-pandemic 45% Uses existing infrastructure I.D. badge swipes Utilisation data from single source 96% Space utilisation & DX insights Low-resolution → Increase yield Low-f
Slide 19: Long-term margin improvement
Long-term margin improvement 100% 100% Contribution margin 80% Core network costs 80% Data centres including Margin opex and lease costs 60% progression 60% Contribution 40% Fibre costs as revenue 40% margin Private fibre connection from essensys Cloud mix improves 20% data centre to 20% customer pr
Slide 20: Commercial Real Estate 2024
Commercial Real Estate 2024 Bifurcated market Premium outperforms Budgets tightened Utilisation key 93% 9% 30% 44% Premium buildings command Premium buildings have 9%+ Organisations have increased Use of collaboration space a 93%+ premium in net rent higher occupancy rates space sharing by 30% since
Slide 21: Summary
Summary Innovation Develop of Efficiency unique and compelling Simplification and ease of adoption solutions Focus to reduce friction Strategic - Access and shorten sales Discipline customers and cycles - Intelligence evolution to Active cost - Experience pure-play SaaS control and cash management O
Slide 22: Appendices
Oppendices » essensvs
Slide 23: Balance sheet
Balance sheet (£’000) 31 JUL 2023 31 JAN 2024 Non-current assets 12,776 12,178 Intangible 10,059 9,936 Tangible 1,577 1,149 Right of use 1,140 1,093 Current assets 14,739 11,293 Inventories 2,260 2,332 Trade and other receivables 4,617 5,499 Cash 7,862 3,462 Total assets 27,515 23,471 Current liabil
Slide 24: Our business
Our business Our unique software and technology provides the foundation from Helping our customers deliver digitally which large landlords and flex workspace providers can simplify the management of their network of spaces and understand their enabled buildings and spaces since 2006 occupiers’ needs
Slide 25: Work has evolved, now buildings are evolving
Work has evolved, now buildings are evolving Tenant spaces Flexible spaces Decrease time to occupancy, Deliver flex operations. provide a turn-key solution and Meet the changing needs of tenants spaces that are move-in ready with an adaptable offering Meeting rooms Amenity spaces Provide bookable me
Slide 26: We help deliver digitally enabled spaces and experiences at scale
We help deliver digitally enabled spaces and experiences at scale Shared meeting spaces Building amenity spaces Flexible space options Access Intelligence Experience Physical Utilisation Seamless Touchless technologies Digital Experience Mobile-first Connected technologies / apps A powerful business
Slide 27: Thank you
Thank you Nominated advisor & broker: Singer Capital Markets +44 (0)20 7496 3000 Financial public relations: FTI consulting +44 (0)20 3727 1000 essensys.tech
Slide 28: Important notice
Important notice This presentation (this “Presentation”), which has been prepared by, and is the sole responsibility of, essensys plc (the “Company”), has been prepared solely in connection with the Company’s half year results for the 6 month period ended 31 January 2024. This Presentation, its cont