FINEOS Corporation Holdings Plc · ASX:FCL
FINEOS — FY2023 Earnings Presentation
22 slides from FINEOS's earnings presentation, Aug 23, 2023
Slide 1: FY23 results presentation
For personal use only FY23 results presentation Michael Kelly (Founder & CEO) and Ian Lynagh (CFO) 23 August 2023 © 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: FY23 Financial Highlights
FY23 Financial Highlights FINEOS continuing to demonstrate the business’ transition to a higher quality subscription revenue base Subscription ARR Total For personal use only Revenue €67.3m Revenue €62.4m at 30 June ’23 €125.0m Up 15.9% on FY22 and now the Down 1.7% on FY22 due to major largest reve
Slide 4: FY23 Operational Highlights
FY23 Operational Highlights Larger Clients are Major contract win North American For personal use only scaling up utilisation of for complete Revenue 78.1% of the platform AdminSuite Total Revenue, in line with FY22 More legacy platforms being made Expected subscription & services North America repr
Slide 5: Subscription Revenue now greater than Services Revenue
Subscription Revenue now greater than Services Revenue Up-sell expansion initiatives and new customer wins has seen subscription revenue growth consistent with FINEOS’ strategy Total Revenue by year €m For personal use only Breakdown of FY23 Revenues: 127.2 125.0 120m 108.3 ▪• North Total Subscripti
Slide 6: Geographic mix of revenues
Geographic mix of revenues Changes to revenue composition has seen growth in Europe region revenue in FY23 FY22 revenue by region FY23 revenue by region For personal use only 3.9% Changes to Services revenue growth 4.9% by region • North American revenue is 78.1% of 16.7% 17.0% total revenue which i
Slide 7: North America
North America FINEOS’ primary R&D investment focus on North America continues to deliver the highest proportion of revenue by region, at 78.1% of Total Revenue For personal use only Continued adoption of the FINEOS North America Revenue by year €m Platform in North America 120m 90.0% • Total Subscri
Slide 8: R&D investment supports growth
R&D investment supports growth FINEOS continues to dedicate significant resources and financial investment in research and development For personal use only R&D investment €m Investment being made in R&D to 48.5 continue to drive revenue growth 43.2 ▪ North American SaaS 41.3 revenues continue to be
Slide 9: Our people – a key asset of the business
Our people – a key asset of the business Employees by function 2.7% ▪ Average Product Consulting utilisation for For personal use only 5.4% 35.9% Product Consulting the period was 86% (FY22 89%) 86% Cloud Ops ▪ Retention rate of over 90% Utilisation R&D ▪ Scaling of FINEOS India now underway 46.8% S
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 For personal use only ▪ Support our people through diversity and inclusion, c
Slide 11: FINEOS DEI - Embrace
FINEOS DEI - Embrace Our FINEOS Embrace DEI mission statement is that “as a company, we are committed to recognising the value of diversity among our employees, which includes intentionally building a work environment where all For personal use only employees feel included and valued both irrespecti
Slide 12: FY23 – Financial Slides
For personal use only FY23 – Financial Slides © FINEOS Corporation Ltd 12
Slide 13: Income Statement
Income Statement • Total Revenue €125.0m (FY22: €127.2m) Income Statement FY23 FY22 % Change €m €m o Subscription revenue grew by 15.9% For personal use only Subscriptions 62.4 53.8 15.9% Services 60.8 71.4 (14.8%) 1.8 2.0 (11.6%) o Services revenue down 14.8% on FY22.The reduction in services is In
Slide 14: Operating Expenses
Operating Expenses 45m Total Operating Expenses Half On Half €M Operating expenses FY23 FY22 % Change €m €m 40m For personal use only Research & development (25.3) (20.2) 25.0% 35m 30m Sales & marketing (7.9) (7.0) 13.3% 25m Product consulting (19.6) (18.8) 4.4% 43.8 20m 40.3 39.9 (16.4) (15.4) 6.9%
Slide 15: Balance sheet
Balance sheet • Cash at bank movement reflects investment in the period Statement of Financial Position 30 June 23 30 June 22 % Change €m €m • Trade receivables fell 32.6% due to higher collections from customers For personal use only Cash at bank 25.5 44.3 (42.4%) in 2H23 versus 2H22 and reduced se
Slide 16: Statement of Cash Flows
Statement of Cash Flows • Net cash generated from operating activities of €12.2m Statement of Cash Flows FY23 FY22 % Change increased 29.7% compared to FY22 mainly due to higher collections from customers, offset by slightly higher operating costs €m €m For personal use only Net cash generated from
Slide 17: FY24 Outlook & Key Priorities
For personal use only FY24 Outlook & Key Priorities © FINEOS Corporation Ltd 17
Slide 18: FY24 Key Priorities
FY24 Key Priorities For personal use only ✓ 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 existing clients ✓ Gain more efficiency and cost savings through the execution of our cost out program ✓ Achie
Slide 19: FINEOS Outlook
FINEOS Outlook For personal use only • FY24 revenue expected to be in the range of €131-135m • Subscription revenue growth rate in low to mid-teens percentage • Low percentage growth in services revenues as FINEOS gives strategic system integrators (SI) a greater role in its product implementations
Slide 20: For personal use only
For personal use only © FINEOS Corporation Ltd 20
Slide 21: Appendix
For personal use only Appendix © FINEOS Corporation Ltd 21
Slide 22: Detailed Statement of Financial Position
Detailed Statement of Financial Position Statement of Financial Position FY23 FY22 % Change €m €m Cash at bank 25.5 44.3 (42.4%) Trade receivables 17.4 25.7 (32.6%) Unbilled receivables 2.0 0.6 250.8% For personal use only R&D tax credit 0.6 1.0 (36.2%) Prepayments and other receivables 5.3 4.9 8.6%
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