Credit Clear Limited · ASX:CCR
Credit Clear — FY2024 Earnings Presentation
15 slides from Credit Clear's earnings presentation, Aug 28, 2024
Slide 1: FY24 Results Presentation
For personal use only • Achieved upgraded guidance of $42.0m RECORD REVENUE, revenue, up 20% on pcp, and $4.2m Underlying EBITDA PROFITABILITY • FY25 Guidance of $48m - $50m revenue and AND CASH GENERATION +$7m Underlying EBITDA (excluding any acquisitions in FY24) ASX: CCR FY24 Results Presentation
Slide 2: Important information
Important information This presentation has been prepared by and is the sole responsibility of Credit Clear No representation or warranty, express or implied, is made by any person as to the Limited ACN 604 797 033 (Company). The information contained in this presentation fairness, accuracy, complet
Slide 3: Agenda
Agenda 1. CEO Update For personal use only Andrew Smith 2. Financial Update Victor Peplow 3. Technology and Strategy Update Jason Serafino 4. Q&A 3
Slide 4: An integrated and end-to-end debt resolution provider
An integrated and end-to-end debt resolution provider For personal use only An ASX-listed company Trusted by thousands of clients in highly Strong trading Aligned with rapidly that has a commercially regulated and diverse conditions with rising changing customer proven AI-driven industries to engage
Slide 5: Achieving profitable growth
Achieving profitable growth Record revenue up 20% on pcp and strong cash from operations resulting in FY24 Underlying EBITDA1 of $4.2m For personal use only $42.0m $4.2m $13.1m FY24 Revenue Underlying EBITDA1 Cash at bank +20% on pcp Improvement of $4.0m on Funded for growth pcp opportunities Revenu
Slide 6: FY24 – Improving operating leverage
FY24 – Improving operating leverage 53% For personal use only GROSS MARGIN UP FROM 51% IN FY 23 DRIVEN BY DIGITAL COLLECTIONS $3.7M CASH GENERATED FROM OPERATIONS WITH $1 3.1M AT BANK TO FUND GROW TH 10% UNDERLYING EBITDA 1 MARGIN TO REVENUE IMP ROVES FROM 1 % TO 1 0% 1. Notes: underlying EBITDA exc
Slide 7: FY24 – Underlying vs Statutory EBITDA
FY24 – Underlying vs Statutory EBITDA FY22 FY23 FY24 $000's $000's $000's YoY Notes EBITDA - Underlying Business For personal use only Revenue 21,462 34,951 42,001 Revenue up 20% Expenses Employee Benefits (13,576) (20,551) (21,769) Employee benefits up 6% Tech Development - OPEX (2,579) (2,048) (2,
Slide 8: Clients building momentum
Clients building momentum Combined end-to-end and integrated offering is unmatched in Australia with SaaS platform and integrated contingent collections resonating strongly with clients providing strong sales momentum For personal use only 20 44 8 Tier-1 clients1 in FY24 12 Tier-2 clients2 in FY24 U
Slide 9: In FY24 we have…
In FY24 we have… ✓ Won material new clients including leading ✓ We expected gross margins to improve, and insurers, large utilities providers, and they have, from 51% in FY23 to 53% in FY24 For personal use only government bodies ✓ Our top line revenue is growing off a relatively ✓ Maintained a tend
Slide 10: Growing adoption and use of SaaS platform
Growing adoption and use of SaaS platform Digital revenue has a gross margin of ~80% Digital collections ($m) For personal use only 140 120 • Record digital collections of $116m, up 63% 116 on pcp 100 • FY24 result highlights the impact of Tier-1 clients adopting digital engagement 80 strategies 71
Slide 11: 22% Uplift from AI a Sustainable Competitive Advantage
22% Uplift from AI a Sustainable Competitive Advantage • In a recent test with a major water utility the Next Best Action (NBA) strategy achieved a median For personal use only performance uplift of 22%, with a 90% probability of outperforming the standard workflow • Our AI cannot be easily replicat
Slide 12: Trading conditions
Trading conditions 1. Cost of living increasing 2. Reduction in debt sold For personal use only 3. Industry consolidation 12
Slide 13: FY25 Outlook
FY25 Outlook Macroeconomic • Trading conditions are supportive For personal use only tailwinds • Australian companies strengthening their debt resolution capabilities • Clients already signed will contribute a large portion of the organic growth in FY25 • Tender win rate of +70% and strong sales pip
Slide 14: For personal use only
For personal use only CEO & MD Andrew Smith Credit Clear E: andrew@armagroup.com.au Investor Relations Warrick Lace Credit Clear e: warrick.lace@creditclear.com.au m: +61 404 656 408 14
Slide 15: Illustrative client onboarding timeline
Illustrative client onboarding timeline For personal use only Reduce size of panel and broadening scope of work Increase share of business on panel 0 0-3 mths 3 3-6 mths 6-9 mths 6 9-12 mths 9 12-1512+ mths Optimisation, champion / Onboarding challenger testing, performance reporting Initial portfol