FINEOS Corporation Holdings Plc · ASX:FCL
FINEOS — FY23X Earnings Presentation
21 slides from FINEOS's earnings presentation, Feb 21, 2024
Slide 1: FY23X results presentation
For personal use only FY23X results presentation Michael Kelly (Founder & CEO) and Ian Lynagh (CFO) 21 February 2024 © FINEOS Corporation Ltd 1
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by FINEOS Corporation Holdings PLC (Company or FINEOS). By accessing or attending this presentation, you acknowledge that you have read and understood the following statements. NO OFFER OF SECURITIES Nothing in this presentation sh
Slide 3: FY23X Financial Highlights
FY23X1 Financial Highlights FINEOS continuing to demonstrate the business’ transition to a higher quality subscription revenue base Subscription ARR Total For personal use only Revenue €65.3m Revenue €33.0m at 31 December’23 €61.1m Up 10.5% on 1H23 Subscription revenue now Up 9.9% on 31 December 202
Slide 4: FY23X Operational Highlights
FY23X Operational Highlights Guardian AdminSuite APAC clients benefitting Securian Canada delivery progressing well For personal use only & NYL to extend use of from cloud migrations, implements FINEOS AdminSuite to support more anticipated in 2H24 Platform for Claims voluntary benefits in 2H24 and
Slide 5: Subscription Revenue continues to dominate over Services Revenue
Subscription Revenue continues to dominate over Services Revenue Up-sell expansion initiatives and new customer wins has seen subscription revenue growth consistent with FINEOS’ strategy Total Revenue by half year €m For personal use only Breakdown of FY23X Revenues: 70m 65.4 61.8 61.5 63.5 61.1 ▪•
Slide 6: Geographic mix of revenues
Geographic mix of revenues Growth in Europe and APAC revenue contributions as North America continues to remain the dominant regional source of revenue at 76.6% of total revenue in FY23X For personal use only 1H23 revenue by region FY23X revenue by region Changes to revenue growth by region 4.5% 4.9
Slide 7: R&D investment spend moderated & decreasing as a % of revenue
R&D investment spend moderated & decreasing as a % of revenue FINEOS is changing the profile of its R&D spend to focus more on digital and data related work For personal use only Ongoing investment being made in R&D to continue to drive subscription R&D investment €m revenue growth ▪ North American
Slide 8: Our people – a key asset of the business
Our people – a key asset of the business Employees by function 2.2% For personal use only 4.8% 33.9% Product Consulting ▪ Average Product Consulting utilisation for the period was 87% (1H23 86%) 87% Cloud Ops Utilisation R&D ▪ Retention rate of over 90% 49.0% Sales & Marketing ▪ Scaling of FINEOS In
Slide 9: FINEOS DEI - Embrace
FINEOS DEI - Embrace Our FINEOS Embrace DEI mission statement is that “as a company, we are committed to recognizing the value of diversity among our employees, which includes intentionally building a work environment where all employees feel included and For personal use only valued both irrespecti
Slide 10: FINEOS ESG Strategy
FINEOS ESG Strategy At FINEOS ESG enables our FINEOS Growth Strategy and the key areas of focus across the three pillars for our ESG strategy are: •Maintain a low carbon footprint and support initiatives to further reduce •Support our people through diversity and inclusion, community initiatives and
Slide 11: FY23X – Financial Slides
For personal use only FY23X – Financial Slides © FINEOS Corporation Ltd 11
Slide 12: Income Statement
Income Statement • Total Revenue €61.1m (1H23: €61.5m) Income Statement FY23X 1H23 % Change €m €m o Subscription revenue grew by 10.5% For personal use only Subscriptions 33.0 29.9 10.5% Services 28.1 30.2 (6.9%) 0.0 1.4 (100.0%) o Services revenue down 6.9% on 1H23. The reduction in services is Ini
Slide 13: Operating Expenses
Operating Expenses 45m Total Operating Expenses Half On Half €M Operating expenses FY23X 1H23 % Change €m €m 40m For personal use only Research & development (11.2) (13.0) (13.6%) 35m 30m Sales & marketing (2.3) (4.1) (43.5%) 25m Product consulting (9.4) (9.8) (4.2%) 20m Cloud operations/support (8.
Slide 14: Balance sheet
Balance sheet • Cash at bank movement reflects investment in the period offset by net Statement of Financial Position 31 Dec 23 30 June 23 % Change proceeds received from the new share capital of €23.6m €m €m For personal use only Cash at bank 28.1 25.5 10.3% • Trade receivables fell 52.4% mainly du
Slide 15: Statement of Cash Flows
Statement of Cash Flows • Net cash used in operating activities of €7.0m increased 109.2% Statement of Cash Flows FY23X 1H23 % Change compared to 1H23 reflecting working capital spend €m €m • Net cash used in investment activities of €13.5m in FY23X For personal use only represents spend on intangib
Slide 16: FY24 Outlook & Key Priorities
For personal use only FY24 Outlook & Key Priorities © FINEOS Corporation Ltd 16
Slide 17: FY24 Key Priorities
FY24 Key Priorities For personal use only ✓ Delivering on the Guardian AdminSuite implementation – important proof point for FINEOS to the market ✓ Drive customer success to scale and move FINEOS clients away from legacy core systems ✓ Increase new business sales as well as cross sales to our existi
Slide 18: Outlook & Guidance for FY24
Outlook & Guidance for FY24 For personal use only • FY24 (1 Jan – 31 Dec) revenue to be in the range €130-135m • Double digit growth in the low to mid-teens (versus CY23) is expected for subscription revenue • Services revenue is expected to remain flat (versus CY23) • Guidance reflects both the con
Slide 19: For personal use only
For personal use only © FINEOS Corporation Ltd 19
Slide 20: Appendix
For personal use only Appendix © FINEOS Corporation Ltd 20
Slide 21: Detailed Statement of Financial Position
Detailed Statement of Financial Position Statement of Financial Position 31 Dec 23 30 Jun 23 % Change €m €m Cash at bank 28.1 25.5 10.3% Trade receivables 8.3 17.4 (52.4%) Unbilled receivables 1.0 2.0 (50.9%) For personal use only R&D tax credit 0.6 0.6 5.7% Prepayments and other receivables 6.8 5.3
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