Readytech Holdings Ltd. · ASX:RDY
Readytech — FY2023 Earnings Presentation
30 slides from Readytech's earnings presentation, Aug 23, 2023
Slide 1: FY23 Investor Presentation
ASX:RDY For personal use only FY23 INVESTOR PRESENTATION 23 August 2023 Marc Washbourne – Co-Founder & CEO Nimesh Shah – Chief Financial Officer
Slide 2: Next Generation, People-Centric Software
For personal use only NEXT GENERATION, PEOPLE-CENTRIC SOFTWARE FY23 Results 2
Slide 3: Solid revenue growth and strong margins
ReadyTech continues to deliver a combination of solid revenue growth and strong margins Revenue Recurring revenue Underlying EBITDA** Major new enterprise contracts $103.3m $84.3m $34.8m $12.4m contracts signed For personal use only Increase of 13.1%* Increase of 12.9%* Underlying EBITDA margin** of
Slide 4: Enterprise strategy delivering strong and sustainable SaaS revenue growth
120.0 103.3 4% o f 3 ue wth ven 100.0 g ro r e 19.0 G R tion CA scrip Enterprise sub 78.3 For personal use only strategy 80.0 12.7 delivering strong and sustainable 50.0 $m 60.0 SaaS revenue 39.3 6.7 84.3 growth 40.0 4.2 65.6 43.3 20.0 35.1 0.0 FY20 FY21 FY22 FY23 Subscription Revenue Services Reven
Slide 5: Strategic plan delivering growth momentum in enterprise markets
ReadyTech's compelling strategic plan is delivering growth momentum in enterprise markets • Cloud penetration is in its For personal use only • Significant opportunity for infancy and slower to be lucrative $500k to Large addressable adopted in enterprise. Acquire high value $5m+ annual SaaS contrac
Slide 6: Targeting large, high value enterprise customers across all segments
Successfully targeting large, high value enterprise customers across all segments Executing well on enterprise strategic pillars For personal use only Identify, select and Expand investment in Scale via strategic Focus on enterprise address attractive go-to-market to win more partners and network pr
Slide 7: Recent landmark customer wins validate enterprise strategy
Recent landmark customer wins validate investment in enterprise strategy and capability 11 new enterprise contracts of Ready Skills $12.4 million combined deal value^ For personal use only High conviction pipeline of new customers exceeding $28 million Phase 2 ^Deal value equals first-year annualise
Slide 8: Enterprise strategy to pursue large serviceable markets of $970m
Enterprise strategy to pursue large serviceable markets of $970m* underpins long-term growth ReadyTech pipeline is growing across multiple enterprise vertical opportunities, augmented by customer upgrade growth opportunity For personal use only $335m+ $485m+ $150m+ Education & Work Pathways Governme
Slide 9: Capitalising on the AI revolution
ReadyTech’s direct access to high quality data and a culture of innovation position it to capitalise on the AI revolution ReadyTech’s Our culture of Building on Focus of natural advantages innovation wins with Ready AI AI opportunities For personal use only • Direct access to vast data sets, • Circa
Slide 10: Open ecosystem is a major point of competitive difference
ReadyTech’s open ecosystem is a major point of competitive difference Open architecture offers customer choice, flexibility and interoperability versus the platform monoliths ReadyTech 3rd Parties Customer choice Horizontal systems For personal use only Core of ReadyTech offers Alternative ecosystem
Slide 11: FY23 financial performance
For personal use only FY23 financial performance FY23 Results 11
Slide 12: Continuing to deliver profitable growth
ReadyTech continues to deliver profitable growth Highlights $ MILLIONS Total revenue up 31.9% to $103.3m (like-for-like increase of 13.1%**): YoY % • Subscription revenue up 28.5% to $84.3m (like-for-like increase of FY23 FY22 change 12.9%)**, representing 82% of total revenue (FY22: 84%) Subscripti
Slide 13: Strong cash flow and balance sheet support growth initiatives
Strong cash flow and balance sheet support growth initiatives Highlights NET DEBT AS AT 31 DECEMBER 2022 Available cash-for-use of $26.6m, including $23.6m cash and equivalents, and $ MILLIONS 30 Jun 23 30 Jun 22 $3m debt facility headroom, given $50.0m facility drawn to $47.0m. 40% of total facilit
Slide 14: Education & Work Pathways
Education & For personal use only Work Pathways Next generation education, apprenticeship and employment services technology powering better outcomes for students, learners and job seekers. FY23 Results 14
Slide 15: Education & Work Pathways: continued growth in revenue and earnings
Highlights Continued growth in FY23 results demonstrated strong growth driven by new customer wins in revenue and earnings Education & Work Pathways products, and strong customer retention with robust and resilient customers providing sustainable revenue growth into FY24 and For personal use only be
Slide 16: Capitalising on major enterprise opportunities in education market
ReadyTech is capitalising on major enterprise opportunities in the education market Driving growth across large addressable markets ready for change High level of end-of-life Preference for enterprise Student expectation of a technology to be replaced providers focused on local modern and engaging d
Slide 17: Capitalising on major enterprise opportunities in education market (continued)
ReadyTech is capitalising on major enterprise opportunities in the education market Driving growth across large addressable markets ready for change Need for integration ability in Strong macros – lifelong learning, customer ecosystem and skilling workforce and return of modular architecture to inte
Slide 18: Workforce Solutions
Workforce For personal use only Solutions Integrated payroll, rostering, HR and recruitment for the modern workforce FY23 Results 18
Slide 19: Strong revenue growth underpinned by software subscription revenue
Strong revenue growth underpinned by rapidly Highlights increasing software Revenue growth of 17.7% to $28.6m, with software revenue growing at 20.4% to subscription revenue $19.3m. This was driven by 78 new customer wins and upsell of modules driving For personal use only growth in average revenue
Slide 20: Why we are winning customers
WHY WE ARE WINNING CUSTOMERS Successfully winning in stand-up economy in sectors ripe for change Highly trusted for mission-critical payroll & compliance One vendor relationship replacing legacy systems with unique all-in-one workforce Connected data for real-time and Expanded compliance – support f
Slide 21: Ready People offers strategic product expansion and growth opportunity
Ready People offers highly New employee experience gateway designed for the strategic product expansion needs of the stand-up economy, enabling them to and growth opportunity work smarter and in one place Ready People is the current exemplar of our open ecosystem, connecting and elevating the user e
Slide 22: Landmark wins increasing penetration of Retail, Agriculture and Hotels
Landmark wins are increasing the penetration of Retail & FMCG, Agriculture and Hotels & Accommodation sectors The industry vertical strategy in action is delivering new customer wins For personal use only Why we are winning Recent stand-up economy wins Continued proven track record and referral netw
Slide 23: Government & Justice
Government For personal use only & Justice Modern, scalable and customer-centric solutions for Local & State Government and justice agencies FY23 Results 23
Slide 24: Recent customer wins and solid opportunity pipeline
Recent customer wins and solid Highlights opportunity pipeline has positioned for strong revenue Revenue growth of 61.9% YoY to $38.7m on a like-for-like basis*, increased 5.7% to $26.1m. performance in FY24 and beyond For personal use only IT Vision FY23 revenue of $12.6m operating at 21.7% EBITDA
Slide 25: Ready to digitise Government & Justice
Ready to digitise Government & Justice Pursuing 4 key growth drivers with strong competitive position and digital transformation tailwinds 1. Local Government – Acquire New Customers 2. Local Government – Upgrade Existing Customers Targeting 331 medium & large councils Offering 170+ existing custome
Slide 26: Ready to digitise Government & Justice (continued)
Ready to digitise Government & Justice Pursuing 4 key growth drivers with strong competitive position and digital transformation tailwinds 3. Contracts & Procurement 4. Justice Case Management Targeting Government and blue-chip enterprise customers Justice is a major global growth opportunity For pe
Slide 27: Well-positioned for continued growth: FY24 outlook
Well-positioned for continued growth FY24 outlook Organic revenue growth in the mid-teens. EBITDA margin to be in the range of 34%-35% excluding the impact of LTIP (EBITDA margin excl. IT Vision and LTIP, to be in the range of For personal use only 36%-37%). Labour capitalisation as a percentage of
Slide 28: Key take-outs
Key take-outs MOMENTUM BUILDING IN ROBUST PIPELINE ACROSS PROFITABLE GROWTH ENTERPRISE WINS LARGE ENTERPRISE MARKETS For personal use only Focus on enterprise strategy and a Combining growth and profitability with Sizeable and high conviction new number of landmark wins across margin profile improvi
Slide 29: Disclaimer
Disclaimer 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 products. The informa
Slide 30: For more information
For more information: Ronn Bechler Automic Group t. +61 400 009 774 e. ronn.bechler@automicgroup.com.au About ReadyTech For personal use only ReadyTech is a leading provider of mission-critical SaaS for the education, employment services, workforce management, government and justice sectors. Bringin