Trade Window Holdings Ltd. · NZX:TWL
Trade Window — H1 2024 Earnings Presentation
22 slides from Trade Window's earnings presentation, Nov 29, 2023
Slide 1: 1H 24 Financial Results Investor presentation
1H 24 Financial Results Investor presentation 29 November 2023 TradeWindow’s ordinary shares trade on the NZX under the ticker TWL
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Trade Window Holdings Limited (TradeWindow). All information is current at the date of this presentation, unless stated otherwise. All currency amounts are in NZ dollars unless stated otherwise . Information in this presentation: • is for general inf
Slide 3: Agenda
Agenda Financial results overview 4 FY 24 funding and reorganisation 6 Progress against our strategy 9 Financial overview 11 Outlook and summary 18 AJ Smith Deidre Campbell CEO & Director Chief Financial Officer 1H 24 Investor Presentation 3
Slide 4: 1H 24: Trading revenue +25%, despite capital market headwinds
1H 24: Trading revenue +25%, despite capital market headwinds Revenue • Trade volume is holding steady for shippers (exporters and importers). TradeWindow benefits from exposure to non-discretionary commodity trade • 25% increase in trading revenue driven by organic growth and increasing average rev
Slide 5: Key performance indicators – ARR rising, led by increased ARPC
Key performance indicators* – ARR rising, led by increased ARPC * Unaudited $3.0m $5.5m $1,612 $690 Trading revenue Annual ARPC (Shippers) ARPC (Freight Recurring Forwarders) Revenue Up 27% on 1H23 Up 21% on 1H23 Up 25% on 1H23 Up 21% on 1H23 (Cube revenue up 92%) 51% 475 96% 51% % of expenses Custo
Slide 6: FY24 Funding and reorganisation
FY24 Funding and reorganisation Towards financial sustainability New capital in a challenging market • $500,000 at 24.3 cents per share secured under capital raising completed via private placement to bridge non-completion of the nChain deal • Supported by key existing investors, including the two f
Slide 7: Market dynamics remain positive
Market dynamics remain positive CUSTOMER DEMAND TRENDS • Non-discretionary trade steady • Discretionary spending decreasing Digital Trade • E-commerce is a permanent channel Facilitation MACROECONOMIC TRENDS • Shipping costs have fallen • Inflation is slowing • Drive to increase productivity MARKET
Slide 8: Our strategy:
Our strategy: Strategic summary Trusted digital trade facilitation delivered through a global trade platform that connects our customers with their supply chain ecosystem Our vision End-to-end connectivity Our strategic priorities across global supply chains Land Grow Unify People Market penetration
Slide 9: Strategy: charting a route to sustainability
Strategy: charting a route to sustainability Land Grow Unify People Market penetration Add customer value Global trade platform Build capability 1H 24 Achievements 1H 24 Achievements 1H 24 Achievements 1H 24 Achievements • Consolidated market share • Released new features • Carrier Bookings • Buildi
Slide 10: A strong and cash-generative core – a sample of our 475 customers
A strong and cash-generative core – a sample of our 475 customers Service to our customers - some of the world’s most prolific shippers and freight forwarders – will not be diminished by the reorganisation Dairy Meat Seafood Horticulture Logistics & other Note, logos don’t necessarily correspond to
Slide 11: Financial overview
Financial overview 1H 24 Investor Presentation
Slide 12: Financial performance led by sales growth across all products
Financial performance led by sales growth across all products Trading revenue up 25% driven by organic growth Income Statement $000 H1 FY24 H1 FY23 H2 FY23 • Trading revenue up 25% to $3.0m, 6 months 6 months Change % 6 months Change % with sales growth across all core Trading revenue 3,000 2,407 25
Slide 13: Recurring revenue growth in all markets
Recurring revenue growth in all markets Organic growth underpinning revenue increase • Trading revenue growth of 25% - Driven by combination of attracting larger H1 FY24 H1 FY23 H2 FY23 customers, existing customers taking up Revenue by type $000 6 months 6 months Change % 6 months Change % compleme
Slide 14: Average revenue per customer up across segments
Average revenue per customer up across segments H1 FY24 H1 FY23 Shippers 6 months 6 months Change % • Increased monthly Average Revenue Per Subscriber customer nos. period end 146 152 -4% Customer (ARPC) for Freight – up 21% Ave Subscriber customer nos. 150 144 4% Ave monthly revenue per customer 1,
Slide 15: Operating expenses reduce following March reorganisation
Operating expenses reduce following March reorganisation Reflect implementation of cost reductions announced in March 2023 Employee benefits expense $000 H1 FY24 6 months H1 FY23 6 months Change % H2 FY23 6 months Change % • Employee costs down 14% reflect cost Cost of goods sold 1,113 903 23% 1,088
Slide 16: Balance sheet – research and development not capitalised
Balance sheet – research and development not capitalised H1 FY24 FY23 Balance Sheet $000 6 months 12 months Change % Movements Current Assets 2,721 8,022 -66% Reduction in cash reserves and receivables Non-Current Assets 13,183 14,509 -9% Amortisation of intangibles and ROU assets Total Assets 15,90
Slide 17: Cashflow – cash outflow reduced with reorganisation
Cashflow – cash outflow reduced with reorganisation Balance date cash and cash equivalents of $1.8m H1 FY24 H1 FY23 H2 FY23 Cash flow $000 • Balance date cash and cash equivalents of 6 months 6 months Change % 6 months Change % $1.8m; $500k raised since period end. Operating Activities Cash Received
Slide 18: FY24 outlook: focused on financial sustainability
FY24 outlook: focused on financial sustainability • Continuing to see steady demand from exporters, importers, and freight forwarders exposed to non-discretionary trade • TradeWindow expects trading revenue for the year ending March 2024 to range between $6 million to $6.5 million and will complete
Slide 19: Appendix
Appendix 1H 24 Investor Presentation
Slide 20: Glossary
Glossary Annualised Recurring Revenue (ARR) Customs Broker Subscriber customers Annual recurring revenue is calculated using A Customs Broker is a licenced individual who acts as Subscriber customers are those that license and/or subscription revenue for March 2023 and the monthly an intermediary fo
Slide 21: TradeWindow is digitising global trade information flows
TradeWindow is digitising global trade information flows Exporters Bank Correspondent Bank Importers Bank Invoicing Platform Pre-Shipment Exporter Forwarder Inspector Export Port Carrier Import Port Importer Insurer Customs Customs Document Courier Document Courier Key: Financial Physical Informatio
Slide 22: Level 4 33-45 Hurstmere Road Takapuna
Level 4 33-45 Hurstmere Road Takapuna +64 9 836 4200 A J Smith Executive Director & CEO e: aj@tradewindow.io Andrew Balgarnie Chief Strategy Officer e: andrew@tradewindow.io Deidre Campbell Chief Financial Officer e: deidre@tradewindow.io www.tradewindow.io
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