Cluey Ltd · ASX:CLU
Cluey — FY2022 Earnings Presentation
26 slides from Cluey's earnings presentation, Aug 29, 2022
Slide 1: Cluey Ltd (CLU) FY22 Full-Year Results
CLUEY LTD (CLU) FY22 FULL-YEAR RESULTS 29 AUGUST 2022
Slide 2: Agenda
AGENDA Overview Mark Rohald, CEO Business Update & Key Achievements Mark Rohald, CEO FY22 Full Year Results Greg Fordred, CFO FY23 Key Initiatives & Growth Outlook Mark Rohald, CEO Q&A Mark Rohald and Greg Fordred Mark Rohald, CEO Greg Fordred, CFO 1
Slide 3: Business Update & Key Achievements
1 Business Update & Key Achievements 2
Slide 4: Overview of Cluey
OVERVIEW OF CLUEY CLUEY AUGMENTS TRADITIONAL SCHOOLING FOR K-12 STUDENTS ACROSS AUSTRALIA AND NEW ZEALAND WITH A RANGE OF COMPREHENSIVE LEARNING SERVICES Core academic support services: • Live online 1-to-1 and small group tutoring, mapped to local curriculum • Primarily B2C with some B2B as a gover
Slide 5: Estimated addressable market
CLUEY IS A DOMINANT PLAYER IN THE LARGE LEARNING SERVICES MARKET Est. Australian & NZ tutoring market When considering further learning services, students opportunity ~4.8 million students and parents seek one of the following 2: ~4 million1 school students in Australia General academic improvement
Slide 6: Business Update & Key Achievements
BUSINESS UPDATE & KEY ACHIEVEMENTS CODE CAMP ACQUISITION, INTEGRATION & EXPANSION EXPANSION TO NEW ZEALAND COURSE EXTENSION Acquisition completed Oct-21. Key areas Successful soft launch in Oct-21. In Q4FY22, NZ Launched Yr 11-12 Physics and Biology now integrated. Delivered $3.4m revenue new studen
Slide 7: FY22 Full Year Results
2 FY22 Full Year Results 6
Slide 8: FY22 Snapshot
FY22 SNAPSHOT CLUEY 1 CONTINUES TO BENEFIT FROM THE TRANSFORMATIONAL SHIFT TO ONLINE LEARNING AND DEMAND FOR CO/EXTRA CURRICULAR LEARNING >538,000 2.0x Student sessions in FY22, up Increase in new students in 115% from 250,000 in PCP FY22 (vs PCP) 2,490 2.1x Active Cluey Learning tutors in June Incr
Slide 9: Continuing growth in key group metrics
CONTINUING GROWTH IN KEY GROUP METRICS 35, 000 32,929 ACTIVE STUDENTS 1 STUDENT SESSIONS 2 600 ,000 538,362 30, 000 500 ,000 25, 000 23,739 400 ,000 FY21 revenue of $15.9m, an increase of 226% on FY20, 20, 000 15,543 exceeding forecast1 of $15.5m by $400k (3%) 300 ,000 250,613 15, 000 10,311 200 ,00
Slide 10: Strong growth in group financial performance
STRONG GROWTH IN GROUP FINANCIAL PERFORMANCE 40 REVENUES ($’millions) GROSS PROFIT ($’millions) and GROSS MARGIN (%) 34.3 35 Gross Profit Gross Profit margin (%) 54% 20.0 30 53% 50% 18.0 48% 25 16.0 18.1 40% 14.0 20 12.0 33% 15.9 30% 10.0 15 8.0 10 8.6 20% 6.0 4.9 4.0 10% 5 0.9 2.0 0.3 2.3 - - 0% FY
Slide 11: Group variable customer acquisition cost
GROUP VARIABLE CUSTOMER ACQUISITION COST 1 (‘CAC’) CAC PER NEW STUDENT & PAYBACK IN NUMBER OF SESSIONS TO RECOVER CAC FY22 Variable CAC per new student, improved by 24% on FY21 CAC # sessions payback $1, 600 90 $1,371 80 In FY22, 13 student sessions CAC $1, 400 83 payback, after tutor cost. Based on
Slide 12: Ongoing improvement in unit economics
ONGOING IMPROVEMENT IN UNIT ECONOMICS CLUEY (Consolidated) LTR LTV CAC LTV:CAC $2,700 2.8x 2.8 $2,259 $2,162 $2,200 2.3 2.1x $1,700 1.8 CAC :LTV 1 ratio improved by $1,197 33% in FY22 to 2.8 times $1,174 $1,200 1.3 Code Camp LTR 1, LTV and CAC $700 $563 0.8 are comparatively ~20% of $429 Cluey Learn
Slide 13: Ongoing improvement in unit economics
ONGOING IMPROVEMENT IN UNIT ECONOMICS LTR LTV CAC LTV:CAC LTR LTV CAC LTV:CAC $3,500 2.6x 2.6 $60 0 3.5 2.4x $3,000 2.2x 3.0x $2,684 2.1 $50 0 $490 3.0 $2,500 1.8x $2,255 $2,202 1.6 2.5 $1,968 $40 0 $2,000 2.0 1.1 $1,500 $1,390 $30 0 $259 $1,245 $1,180 1.5 $1,041 0.6 $1,000 $20 0 1.0 $569 $560 $491
Slide 14: Improved operating leverage at increased scale
IMPROVED OPERATING LEVERAGE AT INCREASED SCALE COSTS AS % OF REVENUE H2FY22 Marketing % G&A % Employment costs % Marketing costs (including brand 400% spend of $1.1m) as % of revenue 350% down 29% on H2FY21 to 41% 300% 250% General & Administration (G&A) 200% costs as % of revenue down 37% on 150% H
Slide 15: Cluey Group continues to deliver significant growth
CLUEY GROUP CONTINUES TO DELIVER SIGNIFICANT GROWTH CLUEY EXPERIENCED STRONG GROWTH IN REVENUE AND GROSS PROFIT SUMMARY CONSOLIDATED FINANCIAL RESULTS – FY22 FY22 FY21 % Revenue $34.3m $15.9m +116% Cost of sales ($16.1m) ($7.3m) +121% Gross profit $18.1m $8.6m +110% Gross profit margin (%) 53% 54% -
Slide 16: Underlying EBITDA
UNDERLYING EBITDA UNDERLYING EBITDA BRIDGE – FY21 TO FY22 • Increase in new • Directly related • FY22 Brand spend $1.9m • Full year • Investment in • 9 months since students, active to increase in • Marketing spend resulted in public Product & Tech acquisition, students and student student sessions
Slide 17: Cluey Group continuing to improve KPIs
CLUEY GROUP CONTINUING TO IMPROVE KPI’S CLUEY EXPERIENCED STRONG GROWTH ACROSS ALL KEY OPERATING METRICS WITH SOLID PERFORMANCE BY CODE CAMP KEY OPERATING METRICS – FY22 Cluey Learning FY22 FY21 % Code Camp2 FY22 New students 27,901 17,832 +56% New students acquired3 6,941 Total variable acquisition
Slide 18: Balance Sheet
BALANCE SHEET $’Million 30-Jun-22 30-Jun-21 Cash and term deposits at bank 24.0 28.0 Other current assets 1.4 1.1 AS AT 30 JUNE 2022 Total current assets 25.4 29.1 Plant and equipment 0.3 0.1 Right-of-use assets 0.7 - Intangible assets 10.0 1.3 Total assets 36.4 30.5 Trade and other payables 5.2 3.6
Slide 19: FY23 Key Initiatives & Growth Outlook
3 FY23 Key Initiatives & Growth Outlook 18
Slide 20: Growth Outlook FY23
GROWTH OUTLOOK FY23 BALANCING THE KEY PRIORITIES OF GROWTH, IMPROVING UNIT ECONOMICS AND PROFITABILITY KEY TO DRIVING TOWARDS CASH BREAK-EVEN Foundations laid for strong organic growth: SCALING THE • Continue to efficiently scale the core business by investing in sales and marketing at a lower CAC C
Slide 21: FY23 Key Priorities
FY23 KEY PRIORITIES OUR MA JOR PRIORITIES AND WORKSTREAMS IN FY23 CONVERGE ON IMPROVEMENTS IN GP$ PER STUDENT (VIA MARGIN AND TOTAL ACTIVITY) AND REDUCING VARIABLE COSTS INVESTMENT IN PRODUCT & TECHNOLOGY CAPABILITY KEY TO IMPROVING OPERATING LEVERAGE AND INCREASING THROUGHPUT Total sessions Perform
Slide 22: Pathway to Profitability
PATHWAY TO PROFITABILITY FOCUS ON BALANCING THE KEY PRIORITIES OF GROWTH, IMPROVING UNIT ECONOMICS AND PROFITABILITY AS THE PATH TO ACHIEVING CASH FLOW BREAK-EVEN Cluey Learning Sessions FY22 Actual FY23 FY24 Full benefits from FY23 ~42,000 avg. session/m As at Aug 22 est. ~85,000 avg. session/m inv
Slide 23: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS CONTINUED REVENUE GROWTH GROWTH AND RETURNS IN TECHNOLOGY Delivered revenue of $34.3m in THE CORE BUSINESS ADVANTAGE FY22 vs $15.9m in FY21 Proven strong growth trajectory, Enterprise platforms, data and improved unit economics and learning analytics driving operating lever
Slide 24: Q&A
4 Q&A 23
Slide 25: Disclaimer
DISCLAIMER This presentation • is not an offer, invitation, inducement or recommendation to No representation or warranty, express or implied, is made as to the purchase or subscribe for any securities in Cluey Ltd ("Cluey ") or to fairness, accuracy, completeness or correctness of the information,
Slide 26: Contact Us
CLUEY LTD (CLU) CONTACT US Mark Rohald Greg Fordred CEO CFO & Company Secretary investor.relations@clueylearning.com investor.relations@clueylearning.com