8common Ltd · ASX:8CO
8common — FY2020 Earnings Presentation
22 slides from 8common's earnings presentation, Aug 31, 2020
Slide 1: FY20 Results Presentation
For personal use only 8common (ASX:8CO) FY20 Results Presentation August 2020
Slide 2: Disclaimer
This presentation has been produced by 8common Limited and may contain forward looking statements that are based on Management’s current expectations, beliefs and assumptions and are subject to a number of risks and uncertainties. Forward looking statements contained in For personal use only this pr
Slide 3: 8common
8common 8common’s technology solutions deliver enterprise- For personal use only grade financial transaction processing for government entities and large enterprise businesses. Its flagship expense8 platform is a leading pureplay provider of end to end travel expense management software, card Growin
Slide 4: Proven Performance
Proven Performance • 4.5x growth between 2016 to 2020 in value of transaction managed For personal use only • $2.1 billion in transactions managed since 2016, $616 million in the last 12 months $800 3.0 $700 $2.1b 2.5 $600 transaction value Platform transactions (m) managed through the 2.0 $500 plat
Slide 5: Financial overview
For personal use only Financial overview 8common 8common Limited (ASX:8CO)
Slide 6: Record SaaS Revenue
Record SaaS Revenue 8CO Investment Thesis For personal use only • Strong corporate footprint, leading position in Government with strong order book $2.6m +30% $4.15m • Compelling opportunities to leverage existing relationship to upsell products and lift ARPU FY20 SaaS recurring SaaS recurring reven
Slide 7: Strong financial performance in FY20
Strong financial SUMMARY FINANCIAL RESULTS performance in FY20 30 June 2020 30 June 2019 CHANGE $ $ $ % For personal use only • Total Revenue $4.2 million up 13% vs FY19 Revenue from subscription and transactions 2,490,484 1,922,418 568,065 30 Other revenue from continuing operations 1,268,847 1,551
Slide 8: Total revenue growth
Total revenue growth • Total revenue growth of 13% vs FY19 For personal use only • Increased level of change request fees of $890k vs $315k in FY19 (183% increase YoY) • Implementation revenue remained in line with prior period. FY21 has begun strongly with 6 new Federal Government agencies signing
Slide 9: Recurring revenue
Recurring revenue • FY20 recurring SaaS revenue of $2.5m has grown 29.5% versus FY19 For personal use only • COVID-19 impacted Q4 FY20 with a drop in Recurring SaaS Revenue to $545k (historically the strongest quarter) • New clients and recovery of activity will drive SaaS Revenue growth in FY21 Qua
Slide 10: Operational overview
For personal use only Operational overview 8common 8common Limited (ASX:8CO)
Slide 11: Well positioned in a growing space
Well positioned in a growing space For personal use only Full automation of Increased data security expense process and monitoring Globally recognised as Market Leader by IDC in its 2019 MarketScape Enterprise Travel & Expense Management Report 70% cheaper than Real time audit and Purchase Order pro
Slide 12: Fed Gov focus
Fed Gov focus Federal Shared Services • Highly valuable and sizeable revenue base 1 2 For personal use only Department of Department of • Global peers who succeed in gov, succeed Industry, Innovation Finance & Science elsewhere +40 $50,000 Access to more than $48 Why we win new Federal entities to o
Slide 13: For personal use only
For personal use only 8common 8common Limited (ASX:8CO)
Slide 14: CardHero & EML
CardHero & EML For personal use only • 8common has signed a 3-year agreement with EML Payments Limited to issue prepaid Mastercard’s through the company’s CardHero platform • The agreement with EML enables the launch of 8common’s CardHero solution via two products: CardHero and CardHero+ • The core
Slide 15: Simple Applications, Effective Reporting
Simple Applications Effective Reporting For personal use only 8common 8common Limited (ASX:8CO)
Slide 16: Employee Purchasing / Fund Disbursement
Employee Purchasing Fund Disbursement For personal use only Employees will be able to transact on their card with the CardHero smartphone application providing Social service clients will be able to transact on access to information such as their card with the CardHero smartphone available funds, pa
Slide 17: The outlook
The outlook For personal use only 8CO will consolidate and secure its position in large enterprise financial transaction management A clear focus on: Grow organic revenue Leverage existing Execute on strategy to Expand direct Develop partner through new agency relationships to cross deliver Cardhero
Slide 18: Appendices
For personal use only Appendices 8common 8common Limited (ASX:8CO)
Slide 19: Capital Structure and Shareholdings
Capital Structure Shareholdings For personal use only Share price (28-Aug-20) A$0.115 Directors 34.42% Shares on issue 182,917,118 Top 20 67.35% Corporate Information Market Capitalisation A$21.95m Cash (30-June-20) A$1.8m Shares in Cloudaron Bhd A$1.3m Bloomberg (CLOUD:MK) 19 8common 8common Limite
Slide 20: Competitor Transactions
For personal use only Revenue at Time of Reported Precedent Company Acquisition (Estimated A$m) Acquisition Amount (Reported A$m) Revenue multiple+ Competitor Transactions 700 8,300 11.9x 32 262 8.2x 7 100 14.8x 8common 3.7* 21.95# 5.9x 20 + multiples do not take into account net cash(debt) or surpl
Slide 21: Board & Management
Board & Management For personal use only Nic Lim John Du Bois Adrian Bunter Larry Gan Andrew Bond Independent, Non-independent, Founder & Executive Independent, Chief Executive Officer Non-Executive Director Non-Executive Director Chairman Non-Executive Director Founder, investor and Board member Mr
Slide 22: Investor Relations
For personal use only Investor Relations Nic Lim Craig Sainsbury Stephanie Ottens Executive Chairman e: craig.sainsbury@marketeye.com.au e: stephanie.ottens@marketeye.com.au e: nic@8common.com 8common 8common Limited (ASX:8CO)