Slide 1: 2023 Results Presentation
2023 RESULTS PRESENTATION April 2024
Slide 2: Executive Management
Executive Management • Founded FADEL in 2003 • 29 years of enterprise technology experience Tarek Fadel • Spent six years at Oracle • BS degree in Computer Science from the City University of NY and an MBA from Columbia University Founder & CEO • Also Chairman of French American School of NY • Joine
Slide 3: FADEL at a Glance
FADEL at a Glance Who we are What we do Who we help Help Manage, Calculate and Leading developer of highly regarded cloud-based Licensors Report Fixed Fees/Royalties Large and mid-market multinational IP and content owners / Enterprise Software for: Help Licensees users – IP & Brand Licensing Help B
Slide 4: IPO Strategy Delivering Strong Operational Progress
IPO Strategy Delivering Strong Operational Progress Expanding on the next phase of our Two new solutions brought to Financial highlights growth trajectory market 31% increase in recurring revenue Gross margin Additional capabilities of Brand Successful London listing raising improvement Vision, incl
Slide 5: What Problems Do We Solve?
What Problems Do We Solve? Market Drivers Issues Our Customers Face Examples ▪ Complex contracts govern usage rights and determine royalty payments Licensing infringements ▪ Digital content is multiplying and companies are not equipped to manage the content ▪ Inadvertently infringing on copyrights/l
Slide 6: Brand Vision – sold to multi-national brand marketers
BRAND VISION – sold to multi-national brand marketers Ensure your Content is Consistent, Compliant and On-Brand! FY 2023 license ARR growth FY 2023 customer growth ▪ Digital Asset Management - Centralize and enrich brand assets making them easily searchable and shareable across all stakeholders ▪ Di
Slide 7: Content Tracking - Video Matching
Content Tracking - Video Matching Unique capability to match videos and determine potential violations Significant demand for content tracking Find your videos anywhere on web, social or eCommerce and know if any portion of licensed content is expired so you can take down ▪ Find even just a portion
Slide 8: IPM Suite – sold to both IP / Content owners and users
IPM SUITE – sold to both IP / Content owners and users Innovate, Protect, Manage and Monetize your IP FY 2023 license ARR growth Manage licensed content and royalties both in and out in a single, end-to-end platform ▪ Create competitive advantage with innovative, new licensing models 44%* ▪ Empower
Slide 9: LicenSee by FADEL: Streamlining Royalty Operations for Mid-Market Licensees
LicenSee by FADEL: Preconfigured to Streamline Royalty Operations for Thousands of Mid-Market Licensees Deal Management Innovation: Leveraging our IP into the mid-market ▪ Significant new addressable market Performance ▪ Shorter sales and implementation cycles Contract Validation Analytics LicenSee
Slide 10: The Revenue Model – pivoting to a more focused SaaS model
The Revenue Model –pivoting to a more focused SaaS model Enterprise Cloud Hosted Software Offerings 1 SaaS Offerings 2 Products Products License License Brand Vision IPM Suite – Typical 1 year License Agreement RECURRING RECURRING IDS PictureDesk Private – SaaS Subscription Model IDS PictureDesk Pub
Slide 11: Financials FY 2023 Results
Financials FY 2023 Results
Slide 12: FY 2023 Financial Highlights
FY 2023 Financial Highlights Gross margin EBITDA loss Revenue 62% $(2.0)m $14.5m 2022: 60% 2022: $(1.5)m +10% 2022: $13.2m Net loss after taxes Net cash Total recurring revenue growth $(1.5)m $3.0m 2022: $(3.5)m 2022: $0.2m 31%* 2022: 34%* * Growth rate compared to the prior year 12
Slide 13: Income Statement
Income Statement US$ 2022 2023 COMMENTARY License/subscription and support 8,681,002 11,395,295 ▪ Positive revenue growth Professional services 4,501,551 3,091,494 Total revenue 13,182,553 14,486,789 - Total revenue +10% vs 2022 Cost of fees and services 5,237,394 5,466,978 - Recurring revenue strea
Slide 14: Balance Sheet
Balance Sheet US$ 2022 2023 Assets Cash and cash equivalents 1,181,371 3,191,458 Accounts receivable, net 1,863,394 2,308,580 Unbilled work-in-progress 929,715 3,703,895 COMMENTARY Income tax receivable - 660,624 Other current assets 214,395 298,574 ▪ Working capital strengthened with $8.6m IPO proc
Slide 15: Cash flow
Cash flow US$ 2022 2023 Net loss after taxes (3,497,207) (1,547,622) Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortisation 655,753 647,640 Non-cash stock compensation (20,051) 542,409 Non-cash commission shares - 162,130 Non-cash impact of foreig
Slide 16: IPO Strategy Delivering… FY 2023 progress and FY 2024 update
IPO Strategy Delivering… FY 2023 progress and FY 2024 update ▪ New Brand Vision customers across a mix of product components 1 ▪ Growing momentum in our Brand Vision pipeline and increasing number of Use Cases from WIN NEW CUSTOMERS active trials - Content Tracking, and in particular, video matching
Slide 17: Summary and Outlook
Summary and Outlook Summary and Outlook “Fifty in Five” - Building a revenue engine to deliver US$50m/yr. within five years of IPO ▪ Following the arrival of the new CFO, combined with the pivot towards a more SaaS focused business, we are reducing our revenue expectations Land and Expand ▪ Company
Slide 18: Want to know more?
Want to know more?
Slide 19: Board of Directors
Board of Directors The collective Board has significant experience in high growth technology, growing sales and quoted companies as well as strong industry relations ▪ 29 years of enterprise technology experience ▪ Over 15 years of accounting expertise ▪ Spent six years at Oracle ▪ Formerly at Ernst
Slide 20: The FADEL Platform: Tailored Offering for Market Segments
The FADEL Platform: Tailored Offering for Market Segments IPM Suite: IP & Brand Licensing Brand Vision: Digital Brand Compliance Enables businesses to protect, manage, monetize, and measure their Rights Designed to protect the use of a company’s brand digital assets, product IP, empowering them to m
Slide 21: IPM Suite End-to-End Rights & Royalty Management
IPM SUITE End-to-End Rights & Royalty Management ▪ Management of royalties in and out in a single, end-to-end platform ▪ Publishing partners are able to report on sales and royalties through a self-service framework ▪ Workflow to validate reported royalties, calculate financials, and approve and aut
Slide 22: LicenSee by FADEL: Purpose-Built to Streamline Royalty Operations
LICENSEE BY FADEL: PURPOSE-BUILT TO STREAMLINE ROYALTY OPERATIONS FOR LICENSEES ▪ Record catalog of properties detailing deal terms, royalty rates and payment rules ▪ Create deal templates to ensure consistency ▪ Monitor contract performance in real time Deal Management ▪ Manage contract amendments
Slide 23: Brand Vision Content Services
BRAND VISION Content Services ▪ Brand Managers and marketers can centralize, organize and manage important brand assets ▪ Making the latest brand assets accessible and easily searchable to all stakeholders to ensure an up-to-date and consistent brand image ▪ AI-driven visual search takes search to a
Slide 24: Brand Vision Digital Rights Management (Rights Cloud)
BRAND VISION Digital Rights Management (Rights Cloud) ▪ Protect the use of brand assets, logos, product packaging, marketing content and advertising ▪ Centralized single “rights” source for talent and agencies, agreements, and asset rights and restrictions ▪ Perform a simple rights check to see when
Slide 25: Brand Vision Content Tracker for Compliance Post-Distribution
BRAND VISION Content Tracker for Compliance Post-Distribution ▪ Search for published assets across brand, social, e-commerce and partner sites ▪ Apply AI techniques for facial matching, logo detection and object detection ▪ Search for rights-managed content across images, PDFs, videos ▪ Identify vio
Slide 26: Brand Vision (PictureDesk) – A single content platform for media companies
BRAND VISION (PICTUREDESK) – A single content platform for media companies to find, store and monetize published articles and digital assets When speed is of the essence, PictureDesk delivers! Supplier Feeds Internal Owned Content Published Articles ▪ Aggregate live feeds with up-to-the-minute photo
Slide 27: PictureDesk Provides Streamlined Workflows, Increased Revenues
PICTUREDESK PROVIDES… Streamlined Workflows Increased Revenues Reduced Spending With all owned and third party content in Publishers syndicating their content through As well as immediate IT cost savings, with one place, PictureDesk is built to save time PictureDesk see increased revenues from the a