3p Learning Ltd. · ASX:3PL
3p Learning — FY2014 Earnings Presentation
21 slides from 3p Learning's earnings presentation, Aug 26, 2014
Slide 1: Investor & Analyst Presentation, year ended 30 June 2014
For personal use only INVESTOR & ANALYST PRESENTATION For the year ended 30 June 2014 Chief Executive Officer – Tim Power Chief Financial Officer - Jonathan Kenny
Slide 2: Important notice and disclaimer
Important notice and disclaimer (“Important Notice”) For personal use only The material in this presentation is a summary of 3P Learning Limited’s (‘3P’) activities and results as at the time of preparation, [insert date]. Further details are provided in the Company’s full year accounts and results,
Slide 3: Agenda
For personal use only Agenda 01 Overview 3 02 Financial Information and KPIs 6 03 Key Product Update 13 04 Recap and Outlook 17 05 Appendix - Additional Financial Information 19
Slide 4: 3P Learning Overview
3P Learning Overview For personal use only • 3P Learning is a global online education company that offers cloud-based software-as-a- service products for schools and students in grades K-121 • At 3P Learning, our mission is to create a place where students, families and teachers can love learning. T
Slide 5: FY14 Performance vs Prospectus Forecast
FY14 Performance vs Prospectus Forecast For personal use only • Revenue was $1.2 million or 3.3% ahead of prospectus forecast • EBITDA was 3.7% ahead of pro forma prospectus and 5.0% ahead on a statutory basis • NPBT was 5.2% ahead of pro forma prospectus and 10.5% ahead on a statutory basis • NPAT
Slide 6: FY14 Operational Highlights
FY14 Operational Highlights For personal use only • Successful completion of IPO in July 2014 • Licence growth of 800,000 for FY14 (+21% yoy) • 32 product enhancement releases for last quarter reflecting continuous innovation • Over 1.1 million unique app downloads since launch • Launched Jenolan Ca
Slide 7: Financial Information and KPIs
For personal use only Section 2 Financial Information and KPIs
Slide 8: Revenue by geography
Revenue FY14 revenue ahead of prospectus forecast in all categories. In ANZ copyright revenue was $0.8 million For personal use only ahead and in EMEA licence revenue was $0.3 million ahead due to higher ARPU mix and America slightly ahead with additional licence sales in Q4. Revenue by geography Re
Slide 9: Revenue by product
Revenue FY14 revenue ahead of prospectus forecast. In ANZ copyright revenue was $0.8 million ahead and in EMEA For personal use only licence revenue was $0.3 million ahead due to higher ARPU mix. Revenue by product Revenue split as at 30 June 2014 50 45 43.8 Other 2.1 Spellodrome 6% 40 1.6 5% 36.5 3
Slide 10: Licences by geography
Licences Strong licence growth in FY14 of 800,000 (+21% growth yoy) For personal use only Licence numbers in Americas ahead of forecast for Q4 with strong sales to school clusters. ANZ and EMEA licence sales behind prospectus forecast but well on track for FY15. Total Licences (000’s) – by geography
Slide 11: Licences by product
Licences Strong licence growth in FY14 of 800,000 (+21% growth yoy). For personal use only Cross sell of Reading Eggs ahead of forecast. Total Licences (000’s) – by product Licences split as at 30 June 2014 6,000 5,301 5,000 4,665 4,722 339 294 342 949 3,863 Total Licences ('000s) 4,000 849 757 3,46
Slide 12: ARPU
ARPU Average revenue per licence For personal use only FY14A result reflected higher average revenue per licence compared to forecast due primarily to sales mix in EMEA and managed volume discounting Australian increases in ARPU are progressing as planned with no material or unexpected impact on ren
Slide 13: Group Performance Overview
Group Performance Overview For personal use only Pro forma EBITDA was $0.5 million above prospectus forecast for year ended 30 June 2014 Summary of actual vs forecast income statements Pro forma * Statutory $ million, June year end FY14A FY14F Var FY14A FY14F Var Total revenue 36.5 35.3 1.2 36.5 35.
Slide 14: FY14 Actual to Forecast EBITDA Bridge
FY14 Actual to Forecast F14 EBITDA Bridge For personal use only Pro forma EBITDA was $0.5 million above prospectus forecast for year ended 30 June 2014 EBITDA bridge 13.8 13.6 0.4 13.4 13.2 1.2 0.3 EBITDA ($m) 13.0 12.8 12.6 12.4 13.0 12.2 12.5 12.0 11.8 FY14F EBITDA Revenue growth Employee expenses
Slide 15: Cash Flow
Cash Flow For personal use only Cash Flow is ahead of forecast due to stronger working capital driven by improved debtor collections and higher Q4 sales. Cash flow conversion of 94%. Consolidated pro forma cash flow statements $million, June year end FY14A FY14F Var EBITDA 13.0 12.5 0.5 Non-cash exp
Slide 16: Key Product Updates
For personal use only Section 3 Key Product Updates STRICTLY CONFIDENTIAL PAGE 15
Slide 17: New Product Updates/Releases (Mathletics)
New Product Updates/Releases (Mathletics) For personal use only In June 2014, 3PL released a brand new live data reporting tool into Mathletics – for use by teachers and administrators. Since launch, this new tool alone has seen a significant early uplift in teacher login activity. • New automated d
Slide 18: New Product Updates/Releases (Mathletics)
New Product Updates/Releases (Mathletics) For personal use only In July 2014, 3PL released another groundbreaking innovation into the Mathletics tablet app - the ability to access the resource fully offline. This is a world-first for a fully online resource - in particular one with the volume and co
Slide 19: New Product Updates/Releases (IntoScience)
New Product Updates/Releases (IntoScience) In August 2014, 3PL released the world-first addition of the Jenolan Caves interactive exhibit within For personal use only IntoScience. • An inch-perfect 3D digitial recreation of the Jenolan • Launched as part of 3PL’s “Australia’s Biggest School Caves wi
Slide 20: Recap and Outlook
For personal use only Section 4 Recap and Outlook STRICTLY CONFIDENTIAL PAGE 19
Slide 21: Recap
Recap For personal use only • Positive result compared with FY14 prospectus forecast • Continuing to build momentum in Americas • Forecast ARPU increases on track • Confirm FY15 prospectus forecast guidance STRICTLY CONFIDENTIAL PAGE 20