Integrated Research Limited · ASX:IRI
Integrated Research — Shareholder Meeting (November 2024)
29 slides from Integrated Research's shareholder meeting presentation, Nov 25, 2024
Slide 1: 2024 Annual General Meeting
Integrated Research Ltd > ABN 76 003 588 449 Level 9, 100 Pacific Highway, North Sydney NSW 2060 Australia t: +61 (2) 9966 1066 e: InfoAP@ir.com 25 November 2024 ASX Market Announcements Office Australian Securities Exchange 2024 Annual General Meeting Integrated Research Limited (ASX: IRI) re-submi
Slide 2: FY2024 Annual General Meeting
Integrated Research Limited (ASX: IRI) FY2024 Annual General Meeting 25 November 2024
Slide 3: Disclaimer
Disclaimer SUMMARY INFORMATION FORWARD LOOKING STATEMENTS NOT AN OFFER 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 is not a prospectus, be
Slide 4: How to ask a Question?
How to ask a Question? • To ask a written question select the Q & A icon • Select the topic your question relates to from the drop-down list • Type your question in the text box and press the send button • To ask a verbal question, follow the instructions below the broadcast window 3
Slide 5: How to Vote?
How to Vote? • When the poll is open, select the vote icon at the top of the screen Items of Business • To vote, select either For, Against or Abstain 2A Re-elect Mr Sam Sample as a Director FOR AGAINST ABSTAIN • You will see a vote confirmation 2B Re-elect Ms Jane Citizen as a Director • To change
Slide 6: Chair’s Address
Chair’s Address Peter Lloyd
Slide 7: CEO Address
CEO Address Ian Lowe
Slide 8: FY24 Key Highlights
FY24 Key Highlights A year of strong financial performance and people / strategy reset, designed to drive growth Strong Financials Robust Growth in Reset For Product Led Americas Growth Strategy TCV up 22% Americas TCV up ~70% Focus on customer led Revenue up 19% Europe TCV down ~25% innovation and
Slide 9: Full-Year Performance Review: Statutory
Full-Year Performance Review: Statutory (A$M) Improving market dynamics and prudent cost management drives profits 83.3 76.3 72.4 69.8 CASH RECEIPTS FROM REVENUE 5% 19% CUSTOMERS Jun-23 Jun-24 Jun-23 Jun-24 24.6 12.1 13.8 13.0 NET OPERATING EBITDA 103% CASHFLOW 6% Jun-23 Jun-24 Jun-23 Jun-24 31.9 27
Slide 10: Full-Year Performance Review: Proforma
Full-Year Performance Review: Proforma (A$M) Strong year for renewals 83.9 68.5 67.5 66.6 TOTAL CONTRACT ANNUAL RECURRING VALUE (TCV) 22% REVENUE 1 1% Jun-23 Jun-24 Jun-23 Jun-24 75.6 74.8 PROFORMA 17.5 16.7 PROFORMA REVENUE 1% EBITDA 5% Jun-23 Jun-24 Jun-23 Jun-24 101% 97% 23% 22% CASH CONVERSION E
Slide 11: Capital Management and Dividend
Capital Management and Dividend IR’s Capital Allocation Priorities: 1. Invest in innovation: – Allocate up to an additional 10% of TCV annually to product innovation for new revenue streams – M&A considered if right-sized, synergistic, in growth markets and supportive of product strategy – Targeting
Slide 12: IR operates in the Observability market
IR operates in the Observability market What is ‘Observability’? Real time observation of critical technology & infrastructure performance, including: • Log management • Application performance monitoring • Infrastructure monitoring Use cases include: • Performance management/optimisation • Security
Slide 13: IR’s Observability Offering
IR’s Observability Offering powered by Prognosis Collaborate Transact Infrastructure Enterprise UC Cards NonStop Contact Center High Value Payments Service Provider Real-Time Payments 12
Slide 14: Global, blue chip client base
Global, blue chip client base Long-term, high value relationships based on mission critical solutions Tech | Telco BFSI Health | Gov | Edu Retail |Industrial | Other 5/25 Fortune 500 top 5/20 largest Australian 5/10 top telcos 6/10 top USA banks companies companies (market cap)
Slide 15: Observability is a non-discretionary item
Observability is a non-discretionary item 40.0% 35.0% 30.0% • For approximately 53% of 25.0% revenue generating 20.0% services, the cost for 1 hour 15.0% of critical infrastructure 10.0% downtime is greater than USD $100k 5.0% 0.0% Less than $25,000- $49,000- $100,000- $250,000- $500,000- $1 million
Slide 16: Observability is a large and growing market
Observability is a large and growing market… (USD investment in Observability solutions) • Adoption of cloud based solutions is driving market growth • On-Premises remains a large market and holding ground • Enterprise clients are moving to a hybrid model: combination of on-premises + cloud • IR pro
Slide 17: IR provides solutions for both segments
IR provides solutions for both the on-premises and cloud segments… • IR offering is well differentiated in the low growth ‘on-premises’ segment, but not well differentiated in the high growth ‘cloud’ segment • Clear product differentiation aligned to the high growth cloud segment best positions the
Slide 18: Growth in non-renewal revenue is central to sustained growth
Growth in non-renewal revenue is central to sustained growth $100 $90 • YOY revenue contribution from $80 contract renewals is variable, $70 and was significant in FY24. $60 $50 • New products aligned with the $40 high growth cloud segment: $30 – Maximises our growth $20 opportunity $10 – Differenti
Slide 19: What does it mean..?
What does it mean..? We need to evolve for growth. • Generate new revenue by creating the new products we know enterprise clients need: – New revenue from existing clients – New revenue from new clients – Clearly differentiate our cloud based offering • Focus the sales approach: – Target enterprise
Slide 20: Evolve our value proposition with new products & capabilities
Evolve our value proposition with new products & capabilities Current State Future State • What is going wrong in •What does it mean for my customers and my employees? my technology •What can I anticipate might go wrong in the future and how do I avoid it? ecosystem? •I’ve identified the problem, ho
Slide 21: Leveraging existing assets
Leveraging existing assets • Utilise the data, IP and expertise we already have • IR Labs capability (Machine Learning & AI) • Global, blue chip client base • Global sales organisation powered by Prognosis IR Labs Collaborate Transact Infrastructure Enterprise UC Cards NonStop Big Data, Real Time Co
Slide 22: In Summary…
In Summary… • Observability is a large and growing market opportunity ($28B by 2027) • IR has a proven, established offering and a global blue chip client base • Generate more new client revenue by creating new capabilities • Continue to focus the sales approach (ICP) • Modernise & simplify • Manage
Slide 23: FY25 Priorities & Observations
FY25 Priorities & Observations • New product capabilities to launch in 2H FY25 and ongoing • Innovation via IR Labs to accelerate • Value of FY25 contract renewals softer than FY24 and weighted to 2H • Targeting improving renewal rate for Collaborate, to wash through off the back of focus on ICP • V
Slide 24: Our strengths are considerable…
Our strengths are considerable… • Foundational elements of IR’s business remain critically valuable: – Independence: IR is a specialist monitoring technology provider, not a vendor – Aggregation: the Enterprise technology supply chain is becoming more fragmented and more complicated - IR aggregates
Slide 25: Vision…
Vision… To become the world’s leading independent provider of business critical technology & infrastructure intelligence. 24
Slide 26: Peter Lloyd
Peter Lloyd Chair Ladies & Gentlemen: Voting is Now Closed
Slide 27: <end>
<end>
Slide 28: Glossary
Glossary Annual Recurring Revenue (ARR) equals to the monthly recurring revenue at the end of the period multiplied by 12. Cash conversion rate equals cash receipts divided by proforma revenue. Customer retention equals the opening customer count for the reporting period less customers who are deeme
Slide 29: Full Year proforma subscription revenue
Full Year proforma subscription revenue Reconciliation of statutory to proforma revenue Full Year Revenue 2021 2022 2023 2024 2021 2022 2023 2024 A$M A$M A$M A$M Infrastructure 18.3 17.8 18.6 19.2 -15% -2% 4% 4% Transact 10.0 10.9 11.5 12.7 -5% 10% 5% 11% Collaborate 41.4 39.6 38.3 34.9 -16% -4% -3%
Integrated Research — Shareholder Meeting (November 2024) on 6ix