Slide 1: FY2022 Full Year Financial Results
Integrated Research Limited (IRI) For personal use only FY2022 Full Year Financial Results 18 August 2022 John Ruthven, CEO Peter Adams, CFO Matthew Walton, interim 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. Real-time analytics, fast troubleshooting, dynamic alerts, comprehensive reporting and customizable dashboards delivers a seamless
Slide 3: Blue Chip Customer Base
Blue Chip Customer Base 600 customers, 470k SaaS users, >25% Fortune 500 customers For personal use only Tech | Telco BFSI Health | Gov | Edu Other 3
Slide 4: 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. FY22 was a challenging year for IR with the macro environment leading to sales delays and cancellations 2. New SaaS product adoption slower than anticip
Slide 5: Full-Year Performance Review: Statutory (A$M)
Full-Year Performance Review: Statutory (A$M) Cash receipts and cash position remain strong in a challenging year For personal use only 78.5 78.8 75.5 62.9 CASH RECEIPTS FROM REVENUE 20% CUSTOMERS 4% Jun-21 Jun-22 Jun-21 Jun-22 21.9 21.1 16.9 8.5 NET OPERATING EBITDA 61% CASHFLOW 20% Jun-21 Jun-22 J
Slide 6: Full-Year Performance Review: Proforma (A$M)
Full-Year Performance Review: Proforma (A$M) Proforma – more reflective of underlying performance For personal use only 69.6 68.4 26.6 24.5 PROFORMA PROFORMA SUBSCRIPTION REVENUE 2% EBITDA 8% Jun-21 Jun-22 Jun-21 Jun-22 83.5 79.8 94% 95% CASH CONVERSION PROFORMA REVENUE 4% RATE1 1ppt Jun-21 Jun-22 J
Slide 7: FY22 Progress Report
FY22 Progress Report Focus on addressing past underperformance including appointing new international leadership team For personal use only AHEAD OF KEY METRICS KPI TARGET BEHIND PLAN ON PLAN PLAN Customer growth & retention Proforma subscription revenue retention 92% TCV from new products & capacit
Slide 8: Financials
For personal use only Financials
Slide 9: Full-Year Performance Review: Key Metrics (A$M)
Full-Year Performance Review: Key Metrics (A$M) Reporting Annual Recurring Revenue (ARR) For personal use only Total Contract Value Annual Recurring Net Revenue Retention (TCV) Revenue1 Rate2 75.1 68.1 66.1 56.7 94% 92% 25% 3% 2ppt Jun-21 Jun-22 Jun-21 Jun-22 Jun-21 Jun-22 Drivers of TCV result: Sta
Slide 10: Full-Year Performance Review: Key Metrics
Full-Year Performance Review: Key Metrics TCV by product contribution from Cloud and Hybrid almost double in FY22 For personal use only TCV by Product Contract Life TCV Renewal & New 7% 13% 30% 27% 34% 46% 44% 43% 93% 87% 66% 54% 26% 30% FY21 FY22 FY21 FY22 FY21 FY22 On-prem Cloud & Hybrid 1-2 years
Slide 11: Total Contract Value (TCV) by Product
Total Contract Value (TCV) by Product New contract wins flat YoY, fewer contracts up for renewal For personal use only Collaborate – A$M Transact – A$M Infrastructure – A$M 37.0 12.6 14.1 27.0 11.9 11.2 1.9 2.1 16.5 7.5 6.5 24.4 2.7 12.2 9.8 10.5 4.7 4.8 FY21 FY22 FY21 FY22 FY21 FY22 Renewal New & C
Slide 12: Total Contract Value (TCV) by Geography
Total Contract Value (TCV) by Geography Recent leadership changes implemented in Americas and Europe For personal use only APAC – A$M Americas – US$M Europe - £M 30.6 14.0 7.0 6.4 10.3 7.4 18.5 3.2 3.8 6.0 8.0 23.6 1.6 6.6 10.5 3.2 4.3 2.2 FY21 FY22 FY21 FY22 FY21 FY22 Renewal New & Capacity Renewal
Slide 13: Proforma Subscription Revenue
Proforma Subscription Revenue APAC the standout with growth across all product lines For personal use only APAC – A$M Americas – US$M Europe - £M 33.5 30.9 7.1 14.0 12.1 12.4 6.5 12.4 +0% +6% 2.3 -14% 2.0 8.1 7.6 21.1 18.5 4.8 4.5 5.9 +33% -12% -8% 4.5 FY21 FY22 FY21 FY22 FY21 FY22 Collaborate T&I C
Slide 14: Operating Leverage
Operating Leverage Continued commitment to innovation with disciplined overhead controls For personal use only Research and development (Net) Sales and marketing General and administration 50 A$M 50% A$M 50 A$M 30% 60% 45 50 52% 52% 45 25% 40 40% 45 50%40 35 40 43.4 35 29% 41.1 20% 30 30% 35 40%30 2
Slide 15: Net Cash Flow Analysis
Net Cash Flow Analysis Strong cash conversion boosts net cash balance For personal use only 30 16.9 11.5 20 A$M 1.4 12.3 10 5.5 0 Opening net cash Cash from operations Development spend FX, Interest & other Closing net cash Cashflow from operations funds 95% cash collection conversion Highest end of
Slide 16: Balance Sheet
Balance Sheet Strong balance sheet to support self-funded growth Annual results For personal use only Jun 22 Jun 21 YoY A$M A$M Strong balance sheet with Cash and cash equivalents 12.3 12.1 1% Trade and other receivables net cash of $12.3 million 68.8 79.5 (13%) Intangible Assets (30 June 21: $5.5 m
Slide 17: The Opportunity
For personal use only The Opportunity
Slide 18: Collaborate – The Opportunity
Collaborate – The Opportunity Positive long-term trends from market growth and increasing complexity For personal use only today The CIO’s Challenge 5.8m ‘Work from anywhere’ policies increase IR monitored users • addressable environments to manage (home, office, café, etc.) market 599m • Proliferat
Slide 19: Collaborate - Key Growth Drivers
Collaborate - Key Growth Drivers Positive long-term trends from market growth and increasing complexity For personal use only Structural market change – Cloud based applications and solutions creating more flexibility for businesses to operate across multiple environments Expanding workplace environ
Slide 20: Transact - The Opportunity
Transact - The Opportunity Well positioned to benefit from cards growth and expanding cashless payment methods For personal use only Today The Payments Industry’s IR monitors ~600m Challenge transactions daily* addressable • Evolving at a rapid rate market 1,267B • Effectively manage booming growing
Slide 21: Transact - Key Growth Drivers
Transact - Key Growth Drivers Well positioned to benefit from cards growth and expanding cashless payment methods For personal use only Structural market change – entrenched behavioral change by consumers and businesses to non-cash payment methods Expanding payment types and channels – increasing us
Slide 22: Strategy & Product
For personal use only Strategy & Product
Slide 23: Strategy
Strategy continue to continue to For personal use only transition build long- business to term recurring combination of on-premise, support revenue hybrid and enterprise streams cloud users’ evolving needs expand into self-funding adjacent development leverage areas and of new SaaS structural higher
Slide 24: Phased Strategy
Phased Strategy Supporting the evolving market trends For personal use only Phase II Phase I Phase III execution innovation scale new business new products grow market share Leverage existing Extend product suite - new Promote value proposition beyond customers through value- SaaS platform & product
Slide 25: Innovation - Investment Over Last Years
Innovation - Investment Over Last 2 Years Pro-active cloud-based innovation pipeline to support customers For personal use only ~$20m spend on 34% innovation over last 2 years 71% of 6% spend on R&D SaaS based investment products 29% 37% 31% dedicated to new cloud- based vendor products Cloud Collab
Slide 26: Innovation - New Products and Future Development
Innovation - New Products and Future Development Executing clear plan to transition to higher quality, growing SaaS based subscription revenues For personal use only Collaborate Transact Platform Prognosis cloud • Space Management • Payment Analytics • ServiceNow products • AudioCodes SBC • Single S
Slide 27: Collaborate Dashboards
Collaborate Dashboards Empowering IT to make the complex simple For personal use only Step 1 - Turn your data into storytelling Step 4 - Analyze and troubleshoot Step 2 - Visualize the data Step 5 - Automate alerts & relax Step 3 - Create your dashboard 27
Slide 28: Collaborate Case Study: GSK
Collaborate Case Study: GSK Assurance and Visibility for Complex Global Operations For personal use only “What we really needed was to see problems before our users called us. And that’s what IR gave us – the ability to see our environment in real- time, as it was running, and not wait for the user
Slide 29: Transact Dashboards
Transact Dashboards Making the complex simple For personal use only Step 1 - Turn your data into storytelling Step 4 - Analyze and troubleshoot Step 2 - Visualize the data Step 5 - Automate alerts & relax Step 3 - Create your dashboard 29
Slide 30: Transact Case Study – Rabobank
Transact Case Study – Rabobank Modernization & Flexible Integration For personal use only CHALLENGE • Customer is modernizing payments platforms, introducing new payment type, leveraging more payment services • Regulatory constraints - can’t go live with new services or flows without monitoring SOLU
Slide 31: FY23 Key Priorities
For personal use only FY23 Key Priorities
Slide 32: FY23 Key Priorities
FY23 Key Priorities Strong foundation from which to grow For personal use only Returning the Americas and Europe to growth Increasing new product adoption and traction High customer retention and ongoing managed migration to cloud Launch of generation II products – building on the new SaaS products
Slide 33: 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 34: Appendix
For personal use only Appendix
Slide 35: 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 36: Proforma Subscription Revenue
Proforma Subscription Revenue Reconciliation of statutory to proforma revenue Annual revenue FY20 FY21 FY22 FY20 FY21 FY22 For personal use only A$M A$M A$M Infrastructure 21.5 18.3 17.8 6% (15%) (2%) Transact 10.5 10.0 10.9 25% (5%) 10% Collaborate 49.3 41.4 39.6 9% (16%) (4%) Proforma subscription
Slide 37: TCV Reconciliation by Product
TCV Reconciliation by Product A$M Collaborate Transact Infrastructure Services Total For personal use only FY21 FY22 YoY FY21 FY22 YoY FY21 FY22 YoY FY21 FY22 YoY FY21 FY22 YoY Renewal 24.4 10.5 (57%) 4.7 4.8 2% 12.2 9.8 (20%) - - - 41.3 25.2 (39%) New & Capacity 12.6 16.5 31% 6.5 2.7 (58%) 1.9 2.1
Slide 38: TCV Reconciliation by Geography
TCV Reconciliation by Geography For personal use only Natural Currency APAC – A$M Americas – U$M Europe - £M FY21 FY22 YoY FY21 FY22 YoY FY21 FY22 YoY Renewal 4.3 6.6 56% 23.6 10.5 (55%) 3.2 2.2 (32%) New & Capacity 6.0 7.4 24% 7.0 8.0 14% 3.2 1.6 (49%) Subtotal – TCV Subscription 10.3 14.0 36% 30.6
Slide 39: Glossary
Glossary Annual Recurring Revenue (ARR) equals to the monthly proforma subscription revenue as of June 2022 multiplied by 12. For personal use only Cash conversion rate equals cash receipts divided by proforma revenue. Customer retention equals the opening customer count for the reporting period les