Slide 1: 1H FY22 Results Presentation
For personal use only C E L A P RE ASX:RDY 1H FY22 RESULTS PRESENTATION 16 February 2022 Marc Washbourne – Co-Founder & CEO Nimesh Shah – Chief Financial Officer
Slide 2: Next Generation, People-Centric
For personal use only NEXT GENERATION, PEOPLE-CENTRIC 1H FY22 Results 2
Slide 3: Continued strong growth in key metrics
Continued strong growth in key metrics For personal use only Like-for-like revenue* Underlying EBITDA** Underlying NPATA** Net customer revenue retention 16.8% $12.9m $6.9m 97% YoY Growth to $35.7m Margin of 36.0% (exc. LTIP: 37.3%) 1H FY21: $4.2m FY21: 96% 1H FY21: $8.3m Gross opportunity pipeline
Slide 4: Outstanding growth in recurring SaaS revenue
For personal use only 40.0 35.7 35.0 Outstanding 5.4 30.0 28.2 growth in 25.0 4.3 recurring 20.0 19.3 20.0 21.8 2.4 SaaS 1.7 16.9 2.5 15.8 1.2 revenue 15.0 2.1 30.3 23.9 10.0 19.4 18.3 15.7 16.8 13.7 5.0 - 1H FY19 2H FY19 1H FY20 2H FY20 1H FY21 2H FY21 1H FY22 Services Revenue Subscription & Licenc
Slide 5: High value new business wins and strategic M&A underpin continued growth
High value new business Key Education & Work Pathways customer wins wins and strategic M&A For personal use only underpin continued growth Substantial 1H FY22 new business performance with greater than 22 high value customers, each generating over $50k in annualised subscription and implementation v
Slide 6: Laser focused on strategic execution
For personal use only Laser focused on strategic execution 1H FY22 Results 6
Slide 7: ReadyTech is executing on a vertical SaaS playbook
ReadyTech is executing on a vertical SaaS playbook Delivering high value to segments and verticals For personal use only 1H FY22 Results 7
Slide 8: Accelerated growth achieved through ongoing investment
Accelerated growth achieved through ongoing investment For personal use only Product-market fit Go-to-market Scaling Focused product alignment for superior Growth in sales and marketing spend Efficient and streamlined operations to retention and customer acquisition and targeting higher value custom
Slide 9: 1H FY22 financial performance
For personal use only 1H FY22 financial performance 1H FY22 Results 9
Slide 10: Accelerating like-for-like revenue growth of 16.8%
Accelerating like-for-like revenue growth of 16.8% For personal use only Total revenue of $35.7m, and on a like-for-like** basis of $35.0m which is a YoY growth of 16.8%. Subscription and license revenue was $30.3m representing 85% $ MILLIONS of total revenue. Like-for-like** basis subscription reve
Slide 11: Strong cashflow and balance sheet support further growth
Strong cashflow and balance sheet support For personal use only further growth Highlights NET DEBT AS AT 31 DECEMBER 2021 Available cash-for-use of $11.3m, including $7.8m cash and equivalents, and $ MILLIONS 31 Dec 21 30 Jun 21 $3.5m debt facility headroom, given $37.5m facility drawn to $34.0m cur
Slide 12: Education & Work Pathways
For personal use only Education & Work Pathways 1H FY22 Results 12
Slide 13: Education and Work Pathways market remains significant opportunity
Education and Work Pathways market remains significant opportunity For personal use only PRIVATE COLLEGES PRIVATE BACK- STATE TAFE/UNIVERSITY (VET) HIGHER ED TO-WORK GOVT + Great progress made penetrating MARKET SIZE* 67 1H FY21 1H FY20 4,150GROWTH 133 167 8 the large addressable 16 1,200+GROWTH 10
Slide 14: The next generation student management system
The next generation student management system Our product differentiators and why we are winning customers in a sector For personal use only ready for change STUDENT WHY WE ARE WINNING CUSTOMERS ACQUISITION, ADMISSIONS & ENROLMENT OPEN ECOSYSTEM GRADUATION, COURSE Interoperability with best-in-class
Slide 15: Expanding customer base with recent wins
Expanding customer base with recent wins For personal use only Enterprise Employment Services Enterprise Student Management System Case Management System Student Management System Type of customer Type of customer Type of customer Enterprise training organisation offering specialised Employment serv
Slide 16: Revenue and earnings both growing strongly
Revenue and earnings both For personal use only Highlights growing strongly Revenue growth of 27.0% to $14.9m, driven by substantial new business and upsell of partner learning management system. Revenue contribution for the 1H FY22 of $0.6m from AVAXA. $ MILLIONS Strengthening recurring revenue bas
Slide 17: Workforce Solutions
For personal use only Workforce Solutions 1H FY22 Results 17
Slide 18: Workforce Solutions focused on large addressable market of $2.4b
Workforce Solutions focused on large addressable market of $2.4b* Targeting initial industry verticals with For personal use only Mid-to-enterprise market focused SaaS all-in-one offering solving complex payroll and workforce management in stand-up economy Addressable market in ANZ represents 7 mill
Slide 19: All-in-one workforce management system
All-in-one workforce management system Our all-in-one cloud offering is differentiated, meeting customer needs and driving growth For personal use only Focus for 2022 – Employee Experience With the backdrop of a competitive talent market, employers are seeking advantages to engage and retain people.
Slide 20: Strong pipeline conversion has secured new customers
Strong pipeline conversion has secured new customers For personal use only Auckland Theatre Company Trevelyan Pack & Cool The Langham Type of customer Type of customer Type of customer Major arts business with 250 employees. Major Agri-grower with up to 2,500 employees. Hotels and accommodation with
Slide 21: Sustainable revenue growth
For personal use only Sustainable revenue Highlights growth Revenue growth of 10.3% to $11.1m, driven by new customer wins from all-in- one platform, and significant upgrades from existing customers. $ MILLIONS Average revenue per new customer of $48.2k (1H FY21: $39.8k), with all-in-one average rev
Slide 22: Government & Justice
For personal use only Government & Justice 1H FY22 Results 22
Slide 23: Government digital transformation tailwinds
Government digital transformation tailwinds Driving growth across large addressable market For personal use only Global digitisation of Estimate that over 75% of the Next generation public sector Digitisation accelerated by government services and 530+ councils have purchased a employees driving cus
Slide 24: Ready to digitise Government
Ready to digitise Government Digital transformation for improved customer service and growing For personal use only community expectations Strategic Acquisition WHY WE ARE WINNING CUSTOMERS Open Windows delivers market leading Contracts & ASSET & Procurement management to strengthen ERP offering and
Slide 25: Justice providing major global growth opportunity
Justice providing major global growth opportunity Well positioned to capitalise on global digitisation trends For personal use only Domestic Market – Citizen-centric justice case Global Market – Strong portability to WHY WE ARE WINNING CUSTOMERS management solutions with serviceable market other Com
Slide 26: Continued progress in new customer wins
Continued progress in new customer wins For personal use only Town of Claremont Oberon Council Fair Work Commission Type of customer Type of customer Type of customer City Council Regional Council Australian National Industrial Relations Tribunal Driver of new/change of system Driver of new/change o
Slide 27: Significant Government & Justice contribution
For personal use only Highlights Significant Government & Justice contribution Total revenue growth of 19.3% to $9.7m, and on a like-for-like** basis 17.7%, underpinned by 62% growth in subscription revenue to $8m. Recurring revenue is now 81% of total revenue compared to ~60% for the period 1H FY21
Slide 28: Strategy and outlook: Well positioned to grow
For personal use only Strategy and outlook Well positioned to grow ReadyTech increases its FY26 organic revenue target to over $140m which incorporates recent acquisitions of AVAXA and Open Windows. 1H FY22 Results 28
Slide 29: FY22 outlook
For personal use only FY22 outlook • RDY reiterates FY22 organic revenue growth in the mid-teens, with full twelve months FY21 Open Office revenue being $18.3m. • Recent acquisitions of Open Windows and AVAXA to deliver incremental $2.2m revenue at an EBITDA margin of 16%. • EBITDA margin is expecte
Slide 30: Key take-outs
Key take-outs For personal use only ROBUST & PRODUCT-MARKET INVESTMENT IN CONTINUED TALENT TO UNDERPIN SUCCESSFUL 5 YEAR GROWING FIT FOCUSED ON ENTERPRISE FUTURE GROWTH M&A OUTLOOK BUSINESS PIPELINE Sizeable new business high Continued strong Focus on strategic hires AVAXA and Open Windows Well posi
Slide 31: Disclaimer
Disclaimer For personal use only This presentation has been prepared by ReadyTech Holdings Limited for professional investors. The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial
Slide 32: For more information
For more information: For personal use only Ronn Bechler Market Eye Pty Ltd t. +61 400 009 774 e. ronn.bechler@marketeye.com.au About ReadyTech ReadyTech is a leading provider of mission-critical SaaS for the education and training, workforce management, government and justice sectors. Bringing toge