Integrated Research Limited · ASX:IRI
Integrated Research — H1 FY2022 Earnings Presentation
27 slides from Integrated Research's earnings presentation, Feb 17, 2022
Slide 1: FY2022 Half Year Financial Results
Integrated Research Limited (IRI) For personal use only FY2022 Half Year Financial Results February 2022 John Ruthven, CEO Peter Adams, CFO
Slide 2: We are IR
We are IR For personal use only A leading global software company, providing performance and experience management solutions for the world's mission critical ecosystems. 600+ customers Optimizing the collaboration that Optimizing the commerce that Optimizing the mission-critical 440k SaaS users conn
Slide 3: CEO key messages
CEO key messages Transition underway – building a stronger IR with an expanded product set and enhanced market opportunity For personal use only 1. Right strategy, reaffirmed: Executing IR’s strategy to expand product set to include on prem, hybrid and cloud client solutions - Expands addressable ma
Slide 4: Half-year performance review (A$M)
Half-year performance review (A$M) Growth in TCV +8% and NPAT, up 13x For personal use only 44.1 40.9 29.2 31.7 TOTAL CONTRACT PROFORMA VALUE (TCV) 8% REVENUE 7% Dec-20 Dec-21 Dec-20 Dec-21 6.7 9.4 4.4 5.5 EBITDA 52% NET CASH 71% Dec-20 Dec-21 Jun-21 Dec-21 34.1 1.8 32.3 REVENUE 5% NPAT 0.1 13x Dec-
Slide 5: 1H customer wins validate enhanced value proposition
1H customer wins validate enhanced value proposition Significant new customer wins across on-prem, hybrid & cloud solutions For personal use only new customer through new to existing new customer expansion service provider hybrid hybrid on-premise on-premise Collaborate Collaborate Collaborate Trans
Slide 6: Strong customer endorsements
Strong customer endorsements New business growth up 88%, with 424% growth in new SaaS users For personal use only Customer Tenure 15+ years Long dated contracts Service Providers New Logos 97% 2.5 years 424% 88% customer retention avg. contract length growth in SaaS users new business growth 6
Slide 7: 1H FY22 Progress Report
1H FY22 Progress Report Encouraging results in TCV from new customers, recently launched products gaining traction For personal use only Customer growth & KPI New customer KPI Product innovation KPI Business Model KPI retention target acquisition target target Transition target Proforma 92% New cust
Slide 8: Financials
For personal use only Financials 8
Slide 9: TCV, Revenue and Cash
TCV, Revenue and Cash Positive TCV growth driven by new business partially offset by timing of license renewal cycle For personal use only Interim results: TCV, proforma revenue and cash (A$M) Dec 2021 Dec 2020 % change Total contract value (TCV) 31.7 29.2 8% Proforma subscription revenue 34.4 36.8
Slide 10: Interim revenue analysis - Geographic and Product
Interim revenue analysis - Geographic and Product For personal use only Proforma Subscription Revenue by Geographic Asia Pacific revenue - A$M Americas - US$M Europe revenue - £M 20 8 6 15 6 4 4 10 2 2 5 0 0 0 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019
Slide 11: IR Underlying Business Fundamentals
IR Underlying Business Fundamentals On-prem business generates A$15.6M in normalised EBITDA Interim results – A$M 1H FY22 Cloud and hybrid investment: For personal use only Proforma revenue1 40.9 • $12 million capitalised development EBITDA (statutory) 6.7 spend in cloud platform and new Adjust for
Slide 12: Operating Leverage
Operating Leverage Continued commitment to R&D with disciplined overhead controls For personal use only Research and development (Net) Sales and marketing General and administration 30 A$M 27% 30% A$M 30 A$M 30% 30 56% 55% 54% 60% 25 25% 49% 51% 25 25% 19% 20% 19% 25 26.9 50% 20 16% 20% 24.3 20 20%
Slide 13: Investment in innovation
Investment in innovation Investments in new products enhance IR’s market opportunities For personal use only Innovation 95% Key takeaways: Cloud Cloud Platform Transact 33% • IR remains firm to innovation agenda 10% • FY22 1H development spend1 was $6 million R&D • High investment initiative to clou
Slide 14: Net cash flow analysis
Net cash flow analysis Positive operating cash flow funds growth investments with increased net cash balance For personal use only 20 8.7 5.9 10 1.1 A$M 9.4 5.5 0 Opening net cash Cash from operations Development spend FX, Interest & other Closing net cash Cashflow from operations funds 92% cash col
Slide 15: Balance sheet
Balance sheet Increased net cash Interim results For personal use only Dec 21 Jun 21 A$M A$M Strong balance sheet with Cash and cash equivalents 14.9 12.1 Trade and other receivables net cash of $9.4 million (30 74.8 79.5 Intangible Assets June 21: $5.5 million) 30.3 30.0 Right-of-use Assets 5.2 6.0
Slide 16: Strategy & Product
For personal use only Strategy & Product 16
Slide 17: Phased strategy
Phased strategy Executing clear plan to transition to higher quality growing SaaS based subscription revenues For personal use only FY21 FY22 FY23+ innovation execution scale new products new business market share - New SaaS platform & - Extend value proposition - Expand 3rd party integration produc
Slide 18: Business transition to hybrid and SaaS
Business transition to hybrid and SaaS Building a broader, complementary product set to add more value to clients, and expand the addressable market opportunities For personal use only Platform on-premise hybrid SaaS Maintain on prem Add SaaS support Transition to SaaS Innovation focus solutions for
Slide 19: IR Collaborate
IR Collaborate Increasing IR’s leverage to positive growth trends - hybrid work For personal use only market growth 550M 193M UC users conferencing 7% users CAGR What We Do Trends Use Cases Opportunity Monitoring, troubleshooting, The future of the workforce Remote Support and Growth in conferencing
Slide 20: IR Transact
IR Transact IR is well placed to benefit from cards growth and new payment types For personal use only global cards market non-cash 586B growth transactions real-time 18.6% 1,073B 86B CAGR What We Do Market Trends Use Cases Opportunity Infrastructure monitoring Massive shift in consumer Monitor the
Slide 21: Summary and outlook
Summary and outlook Positive outlook for 2H with expected growth in TCV and NPAT For personal use only TCV growth; Proforma revenue Americas turn- Solid renewals; - 2H YTD TCV up on pcp - annual proforma around; - ‘inventory’ double H1 - big deal dependency revenue comparable to - bolstered leadersh
Slide 22: Disclaimer
Disclaimer SUMMARY INFORMATION FORWARD LOOKING STATEMENTS NOT AN OFFER For personal use only This document and the associated transcript (together “the presentation”) has The presentation contains certain "forward-looking statements”. The words The presentation is for information purposes only and i
Slide 23: For personal use only
For personal use only <end>
Slide 24: Appendix
For personal use only Appendix
Slide 25: Proforma subscription revenue
Proforma subscription revenue For personal use only Purpose: To provide an alternate view of underlying performance by restating term licence and maintenance revenues on a recurring subscription basis How: • All licence sales from FY2012 to FY2022 were analysed for each region in their natural curre
Slide 26: Interim proforma subscription revenue
Interim proforma subscription revenue Interim revenue FY20 FY21 FY22 FY20 FY21 FY22 For personal use only A$M A$M A$M Infrastructure 10.6 9.7 9.1 7% (9%) (7%) Transact 4.9 5.0 5.3 33% 1% 7% Collaborate 24.1 22.1 20.1 9% (8%) (9%) Proforma subscription revenue 39.6 36.8 34.4 11% (7%) (6%) Perpetual s
Slide 27: Glossary
Glossary For personal use only Customer retention equals the opening customer count for the reporting period less customers who are deemed to cease purchasing from IR in the reporting period; this total is then divided by the opening balance and presented in percentage terms. Proforma subscription r
Integrated Research — H1 FY2022 Earnings Presentation on 6ix