Slide 1: Appen Limited FY2015 Full Year Results Presentation
For personal use only Appen Limited FY2015 Full Year Results Presentation
Slide 2: Disclaimer
Disclaimer For personal use only The forward looking statements included in these materials involve subjective judgement and analysis and are subject to significant uncertainties, risks, contingencies, many of which are outside the control of, and are unknown to Appen Limited. In particular, they sp
Slide 3: How Appen helps search, social, automotive, ecommerce and gaming customers
Appen helps leading search and social media companies deliver relevant content and For personal use only news to their users Appen’s work underpins speech recognition technologies for government and commercial applications such as Skype’s translator that connects friends and businesses around the gl
Slide 4: Company overview
Company overview For personal use only Founded in 1996 Providing high quality language data and services to technology companies and government agencies worldwide Customers include 9 of the top 10 global technology companies 140 languages and dialects 210 staff globally: Australia, US, Philippines,
Slide 5: Full year results (A$m)
Full year results (A$m) For personal use only Revenue up 62% Revenue! Earnings! EBITDA up 189% !82.7!! !13.8!! NPAT up 414% !51.0!! !8.3!! EBITDA! Pro forma EBITDA up 110% !4.8!! NPAT! Pro forma NPAT up 136% !1.6!! Benefit from falling AUD FY2014! FY2015! FY2014! FY2015! Company Confidential 5
Slide 6: Share price growth
Share price growth For personal use only !2.00!! Share price growth: !1.80!! !14,000!! $0.50 - $1.61* !1.60!! !12,000!! !1.40!! !10,000!! + 222% !1.20!! !8,000!! !1.00!! !APX!! !0.80!! !6,000!! Dividend: !ASX!All! !0.60!! Ordinaries!! !4,000!! 4.2c !0.40!! !2,000!! !0.20!! !"!!!! !"!!!! ! 5! 5! 5! 5
Slide 7: Full year results (A$m)
Full year results (A$m) % For personal use only change FY2015 FY2014 % change constant currency Revenue up 62% on FY2014 Statutory Results Language Resources up 42% Language Content Relevance up 78% 31.9 22.5 42% Resources Content 50.7 28.4 78% Relevance EBITDA up 189% (Pro forma up 110%*) Total Rev
Slide 8: New revenue growth
New revenue growth For personal use only !25,000!! !20,000!! !15,000!! ($#'000)# FY14! Customers won through successful !10,000!! FY15! pilots in FY2014 provided substantial !5,000!! revenue in FY2015 !"!!!! eCommerce! Search!Customer! Social!Media! Customer! Customer! Revenue in FY2015 from custome
Slide 9: Improved customer diversification
Improved customer diversification For personal use only FY2014 FY2015 Others 14% 28% Improved revenue distribution Others 2% 23% 2% across top ten customers 3% 3% No single customer > 28% 1% 2% 48% 3% 2% 2% 4% 3% 5% 9% 10% 9% 27% Percentage of revenue from top ten customers in FY2014 and FY2015 Comp
Slide 10: Repeat revenue
Repeat revenue For personal use only 95%$ 96%$ 94%$ 97%$ A significant percentage of revenue each year is derived from repeat customers FY2012$ FY2013$ FY2014$ FY2015$ Percentage of revenue each year from customers that provided revenue in the prior year Company Confidential 10
Slide 11: Strong growth from both divisions (A$m)
Strong growth from both divisions (A$m) For personal use only Language!Resources! Content!Relevance! Language Resources revenue up 42% !50.7!! Improvement on high margins Content Relevance !31.9!! !28.4!! Revenue! revenue up 78% !22.5!! Opera:ng!Profit! Operational scalability from !13.0!! !8.1!! !7.
Slide 12: Currency impact (A$m)
Currency impact (A$m) For personal use only Revenue! EBITDA! !13.7!! !82.7!! !4.9!! !13.8!! !18.0!! Results have benefited from !51.0!! !4.1!! the falling AUD !4.8!! FY2014! Currency! Currency! FY2015! FY2014! Currency! Currency! FY2015! Neutral! Impact! Neutral! Impact! Growth! Growth! Company Conf
Slide 13: People and culture
People and culture For personal use only Employee satisfaction high at 90% Turnover low at 13% 210 employees, up from 150 in FY2014 Over 320,000 crowd-sourced on-demand independent contractors worldwide 140 languages and dialects Rated in Flexjobs Top 100 companies for remote work Active in-house Co
Slide 14: Balance Sheet (A$m)
Balance Sheet (A$m) For personal use only FY2015 FY2014 Strong balance sheet. No debt. Current assets up due to increase in cash Current Assets 30.3 18.9 reserves and receivables related to increase Non-Current Assets 11.7 11.2 in revenue volumes Total Assets 42.0 30.1 Interim dividend of 1.2 cents
Slide 15: Cash Flow (A$m)
Cash Flow (A$m) For personal use only FY2015 FY2014 Cash balance increased by $4.1m Receipts 72.5 58.8 Cash flow from operations impacted by: Payments and other (67.6) (49.6) Working capital investment relating to Cash flow from operations before interest and tax 4.9 9.2 increased sales volume Taxes
Slide 16: Outlook - Markets
Outlook - Markets For personal use only Major technology companies continue to invest in speech recognition Increasing use of speech recognition technology in multiple verticals including automotive, healthcare, military, gaming and call centres Search leaders continue to invest in relevance service
Slide 17: Outlook - Pipeline
Outlook - Pipeline For personal use only !100!! !90!! Over $60m orders in hand for FY2016 !80!! !70!! Healthy pipeline of 19 pilots (commenced in FY15) !60!! ($#'000)# !50!! !40!! 5 pilots now in production. Delivered FY2015 revenue !30!! !20!! 7 pilots with existing customers !10!! !"!!!! Search! S
Slide 18: Outlook - Targets
Outlook - Targets For personal use only Targeting low double digit revenue growth in FY2016 Revenue growth through orders in hand and pilot pipeline Growth will be strong but unlikely at FY2015 rate Cyclicality may impact level of revenue growth Currency movements will influence results Targeting lo
Slide 19: Thank you
For personal use only Thank you Mark Brayan, CEO, mbrayan@appen.com Kevin Levine, CFO, klevine@appen.com Company Confidential