Slide 1: Financial Results
Financial Results Unaudited financial results for the half year ending 30 September 2023 Investor Presentation - 15 November 2023
Slide 2: Disclaimer
Disclaimer • This presentation has been prepared by Serko Limited ("Serko"). 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 information purposes
Slide 3: Contents
Contents 04 1H FY24 Highlights 12 Strategic Priorities 18 Financial Update 27 Outlook Darrin Grafton Shane Sampson CEO CFO
Slide 4: 1H FY24 Highlights
1H FY24 Highlights Refer to Appendix for definitions and descriptions of the non-GAAP measures used by management throughout this presentation. Serko 4
Slide 5: Strong progress and delivery on growth plans
Strong progress and delivery on growth plans Maximise Winning in Global Building recovery, chosen markets scale and globally- deliver operational competitive unmanaged leverage business revenue growth FY23 FY24 Serko 5
Slide 6: 1H FY24: Revenue growth and operational leverage
1H FY24: Revenue growth and operational leverage Revenue Costs Profit (loss) Balance sheet $36.3m $45.4m $42.2m $(7.2m) $84.3m Total Operating Total Net loss Cash income expenses spend after tax on hand 87% INCREASE 7% INCREASE 3% INCREASE 64% IMPROVEMENT DECREASE HoH $(0.8m) $0.6m EBITDAF loss Avg.
Slide 7: Growth from unmanaged and managed travel
Growth from unmanaged and managed travel • Total 1H24 income of $36.3m, up 87% on 1H23 and up 27% on Total income 2H23 $40m $36.3m • Growth driven by $35m progress of Booking.com for $28.6m $30m Business and increased volumes $25m in Australasia $19.4m $20m • First-half benefitted from higher $15m A
Slide 8: Focus on delivering sustainable growth
Focus on delivering sustainable growth Total income Total online bookings* Completed room nights** 1.3m $36.3m 2.5m 1.1m $28.6m 2.2m 2.0m $19.4m 1.1m 1.0m Up 192%0.5m on 1H23 $9.5m $9.4m 0.2m 0.1m 1H22 2H22 1H23 2H23 1H24 1H22 2H22 1H23 2H23 1H24 1H22 2H22 1H23 2H23 1H24 Up 87% on 1H23 Up 26% on 1H2
Slide 9: Increasing benefits from cost discipline
Increasing benefits from cost discipline Total spend $50m • Total spend of $42.2m for 1H24 $45m $41.1m $42.2m $42.2m $40m $33.9m $35m • Total spend growth was $30m $28.4m up 3% on 1H23 and in line with $25m 2H23 $20m $15m $10m $5m $0m 1H22 2H22 1H23 2H23 1H24 Serko 9
Slide 10: Total income growth exceeded cost growth
Total income growth exceeded cost growth $50m Total spend as a percentage $45m $41.1m $42.2m $42.2m of total income decreased $40m from 212% in 1H23 to 116% in $35m $33.9m $36.3m 1H24 $30m $28.4m $28.6m $25m $20m $19.4m $15m $10m $9.4m $9.5m $5m $0m 1H22 2H22 1H23 2H23 1H24 Total income Total spend
Slide 11: Reduction in underlying average monthly cash burn
Reduction in underlying average monthly cash burn Underlying cash flow Underlying average monthly cash burn* 1H22 2H22 1H23 2H23 1H24 1H22 2H22 1H23 2H23 1H24 $0 m $4m $3.7m $3.6m -$5 m -$3.4 m $2.9m $3m -$10 m $1.8m $2m -$11.0 m -$15 m $1m $0.6m -$20 m -$17.6 m $0m -$22.1 m -$21.6 m -$25 m * Underl
Slide 12: Strategic Priorities
Strategic Priorities Serko 12
Slide 13: Progress against our strategic goals
Progress against our strategic goals 1 2 3 4 5 3yr Customer Unmanaged Managed Marketplace Culture Strategic success revenue revenue and content Develop a culture of Goals Deliver an exceptional Establish significant Consistently grow Commercialise the engaged Serkodians customer experience market sh
Slide 14: Strengthening our executive team
Strengthening our executive team Joydip Das Liz Fraser Chief Product Officer Chief Revenue Officer • Experience as a global product • Extensive experience driving leader revenue growth in travel and media • Until recently, Chief Product Officer sectors of technology company Iress • Experience includ
Slide 15: 2. Unmanaged revenue
Complete H2 FY22 –23 FY23 –24 2. Unmanaged revenue Phase 1 Phase 2 Phase 3 Migration Activating + Scaling Engaging Continued delivery with Booking.com Completed room nights Avg. revenue per completed room night Active customers up 192% on 1H23 in line with 1H23 up 61% on 1H23 1.3m 176 € 10.10 € 10.0
Slide 16: 2. Unmanaged revenue: Phase 3 Scaling
Complete H2 FY22 –23 FY23 –24 2. Unmanaged revenue Phase 1 Phase 2 Phase 3 Migration Activating + Scaling Engaging Phase 3: Scaling • We are now focused on implementing our scaling strategies with Booking.com alongside the delivery of new features. • Scaling initiatives include bringing more of the
Slide 17: 3. Managed revenue
3. Managed revenue Australasia Online bookings (millions) 2.0m Australasia 1.7m 1.7m • Online bookings were up 14% in Australia and New Zealand to____ 2 million, the result of continued strong growth and increased 1.1m market share 0.9m • Driven by increased transaction volumes in Australasia and ne
Slide 18: Financial Update
Financial Update Unaudited financial results for the half year ending 30 September 2023 Serko 18
Slide 19: Net profit summary / EBITDAF reconciliation
Net profit summary / Net Profit Summary 1H24 1H23 change change FY23 EBITDAF reconciliation EBITDAF Reconciliation #039;m #039;m #039;m % #039;m Revenue 35.8 18.8 17.0 90% 46.5 Other income 0.6 0.7 (0.1) (13%) 1.5 Total income 36.3 19.4 16.9 87% 48.0 Operating expenses (45.4) (42.3) (3.0) 7% (82.8) • Significan
Slide 20: Revenue analysis
Revenue analysis Revenue and other Income by Type 1H24 1H23 change change FY23 #039;m #039;m #039;m % #039;m Revenue – transaction and usage fees: Travel platform booking revenue 9.6 8.4 1.1 13% 16.3 • Continued growth in the Booking Expense platform revenue 2.6 2.5 0.1 6% 5.0 Supplier commissions revenue 22.7
Slide 21: Operating expenses
Operating Expenses 1H24 v 1H23 $47m $2.3m Operating expenses $0.0m $45m $1.4m $0.8m $1.1m $43m $0.3m $41m $39m $37m $35m • Third party direct costs increased broadly in line with increased online travel booking volumes • Amortisation has increased reflecting Operating expenses 1H24 1H23 change chang
Slide 22: Total spend
Total spend Total Spend 1H24 1H23 change change FY23 • Total spend grew by only 3% with #039;m #039;m #039;m % #039;m lower employee share scheme costs largely offsetting the increase in third Total Operating Expenses 45.4 42.3 3.0 7% 82.8 party costs and increased employee Add back: capitalised development 5.1
Slide 23: Total spend: Headcount
Total spend: Headcount Serko 23
Slide 24: Product design and development
Product design and development • Product design and development (PD&D) Product Design and Development Expenditure 1H24 1H23 Change Change FY23 costs is a non-GAAP measure representing #039;m #039;m #039;m % #039;m the internal and external costs related to PD&D that have been included in operating Total Product
Slide 25: Underlying cash flow
Underlying cash flow Adjusted Cash flow 1H24 1H23 Change Change FY 23 #039;m #039;m #039;m % #039;m • Underlying cash flow is a proxy for Free Cash Flow and excludes Adjusted cash flows from operating activities 1.7 (17.4) 19.2 (110%) (19.2) movements between cash and short Adjusted cash flows from investing ac
Slide 26: Balance sheet
Balance sheet • Serko’s balance sheet remains strong Balance Sheet 1H24 1H23 Change Change FY23 with cash and short term investments #039;m #039;m #039;m % #039;m of $84.3 million and no debt Cash and Short Term Deposits 84.3 102.9 (18.5) (18%) 87.7 • Receivables grew driven by increased Other Current Assets 16
Slide 27: Outlook
Outlook Serko 27
Slide 28: Outlook
Outlook Considering the growth in the first half, and second half seasonality, Serko revises its anticipated total income for the FY24 year upwards from $63 million - $70 million to $67 million - $74 million. Serko affirms its total spend guidance of $86 million - $90 million for FY24 and anticipate
Slide 29: Q&A
Q&A Serko 29
Slide 30: Appendix
Appendix Serko 30
Slide 31: Definitions
Definitions Non-GAAP (generally accepted accounting practices) financial measures do not have standardised meanings prescribed by GAAP and therefore may not be comparable to similar financial information presented by other entities. Non-GAAP measures are used by management to monitor the business an
Slide 32: 1H24 results summary
1H 24 results summary 1H23 2H23 FY23 1H24 1H24 v 1H23 1H24 v 1H23 1H24 v 2H23 % % Financial ($m) Total income $19.4m $28.6m $48.0m $36.3m $16.9m 87% 27% Total spend $41.1m $42.2m $83.3m $42.2m $1.1m 3% 0% EBITDAF loss ($16.9m) ($4.9m) ($21.8m) ($0.8m) $16.1m (96%) (84%) Net loss after tax ($19.7m) (
Slide 33: Serko at a glance
2007 SKO 340+ Founded ASX & NZX Size of our team 5 offices 7000+ c. 600k in New Zealand, USA, Managed registered Unmanaged registered Australia, China companies companies Current as at 30 September 2023. Serko 33
Slide 34: Thank you
Thank you serko