Cirata Plc · LSE:CRTA
Cirata — WANdisco — H1 2015 Earnings Presentation
23 slides from Cirata's earnings presentation, Sep 23, 2015
Slide 1: Interim Results: Six months ended 30 June 2015
INTERIM RESULTS Six months ended 30 June 2015 23 September 2015
Slide 2: H1 summary
H1 summary Operating platform evolves u Revenue up 13% u Increased ALM sales and marketing focus u New equity funding u Strong cost control Big Data strategy advances u New Fusion product accelerated new customer wins to eight in the 2nd quarter u Winning with integrations to both Hadoop distributor
Slide 3: Finance Update
FINANCE UPDATE PAUL HARRISON
Slide 4: Key Financials
Key Financials $m 2015 H1 2014 H1 Sales bookings 4.4 7.4 Deferred revenue 18.0 15.5 Revenue 5.7 5.0 Adjusted EBITDA* (9.2) (9.5) Capitalised product development 4.3 4.2 Net cash 15.2 15.0 * Adjusted EBITDA loss excludes share-based payments, capitalised product development costs, acquisition-related
Slide 5: Big Data sales bookings
Big Data sales bookings Sales bookings $m 5.3 4.4 4.3 4.7 4.0 3.4 3.0 3.0 2.4 WANdisco 2.0 2.1 0.2 0.1 0.2 0.1 0.4 0.4 1.0 Big Data Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 ---------2013---------- ----------2014--------- ---2015--- u Acceleration to 8 deals in Q2 u Quarterly variability u Strong pricing, parti
Slide 6: ALM sales bookings
ALM sales bookings Sales bookings $m 5.3 4.4 4.3 4.0 4.7 3.0 3.4 3.0 2.0 2.4 4.3 4.3 4.9 WANdisco 3.0 3.8 3.3 2.8 2.6 1.6 1.4 ALM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 ---------2013---------- ----------2014--------- ---2015--- u Revenue $4.9m (2014 H1 $4.9m) u Strong growth in renewals u Increased sales and
Slide 7: Revenue
Revenue Bookings to revenue ($m) 2015 H1 2014 H1 Deferred revenue ($m) Sales Bookings 4.4 7.4 Opening balance (1 January 2015) 19.3 New deferred revenue (3.4) (6.0) New deferred revenue from 2015 H1 bookings 3.4 New recognised revenue 1.0 1.4 Deferred revenue release from prior periods 4.7 3.6 Defer
Slide 8: Profit and loss
Profit and loss $m 2015 H1 2014 H1 % Change Revenue 5.7 5.0 13% Cost of sales (0.4) (1.0) 62% Gross profit 5.3 4.0 33% Overheads (18.8) (17.7) -6% Adjusted EBITDA* pre-capitalisation (13.5) (13.7) 2% Capitalised product development 4.3 4.2 2% Adjusted EBITDA* after capitalisation (9.2) (9.5) 3% * Ad
Slide 9: Overheads
Overheads Continuing cost control focus People costs Function People costs ($m) Closing headcount u People costs are 75% of our cash cost base 2015 H1 % 2014 H2 2015 H1 % 2014 H2 u Headcount reduction from 182 (2014 FY) to 162 Product development 5.4 38% 5.1 70 43% 96 u More efficient ALM product deve
Slide 10: Cash Flow
Cash Flow Working capital ($m) 2015 H1 2014 H1 Change Receivables 12.4 13.2 (0.8) Payables (3.3) (3.2) (0.1) Cash flow ($m) 2015 H1 2014 H1 Deferred revenue (18.0) (19.3) 1.3 Adjusted EBITDA (9.2) (9.5) Net working capital (8.9) (9.3) 0.4 Net working capital change (0.4) 2.5 Currency, interest, tax
Slide 11: Equity and debt funding
Equity and debt funding Equity Debt u $10.0m revolving credit with HSBC u Range of UK and US investors u Secured on existing deferred revenue u $26.1m cash inflow net of fees u Available to 31 March 2017 u Share count increased from 24.4m (30 December 2014) to 29.5m (30 June 2015) u Not utilised to
Slide 12: Our financial model is evolving
Our financial model is evolving LESS PREDICTABLE CONTROLLED Momentum in deal volumes Quarterly variability in sales bookings Big Data & ALM deal momentum increasing Subscription size & duration Average new deal sizes: Big Data $200K ALM $100K 2-year average terms Predictable deferred revenue Brought
Slide 13: Financial summary
Financial summary Sales bookings u Momentum building in Big Data u Increased product and sales focus in ALM u Near-term variability in quarterly bookings Revenue u 13% revenue growth u Deferred revenue benefit u Increasing conversion from bookings to revenue Costs & Funds u Cost control focus contin
Slide 14: Business Review
BUSINESS REVIEW DAVID RICHARDS
Slide 15: WANdisco Fusion solves a key challenge of distributed Big Data
WANdisco Fusion solves a key challenge of distributed Big Data More data means escalating costs WANdisco delivers significant ROI by enabling full use of data centre resources Data Centre 1 Unreplicated Data Centre 2 60% Data storage annual growth Active usage Idle back-up Only one data centre is ac
Slide 16: Evolving Big Data market
Evolving Big Data market Non-Stop Hadoop Fusion In ‘The Lab’… In ‘Production’… Experimental ‘Production’ Live & mission-critical Non-critical operations Service Level Agreements Small scale Large scale ‘The Lab’ What does this mean for our business? Product Self assembly (100% Hadoop) Engineered App
Slide 17: Big Data deals gathering momentum
Big Data deals gathering momentum Accelerating customer base Industry spread with hotspots in regulated industries Record 8 new customer wins Financial Services 10 Fusion launch Utilities & British Gas scales up contract Telecoms 4 Consumer Goods 3 Healthcare & Public 2 First customer wins: British
Slide 18: Key 2015 H1 new customers going into 'production'
Key 2015 H1 new customers going into ‘production’ Customer Use case Storage partner Hadoop distributor UK financial regulation body ‘Lab’ - Cloudera Australian consumer finance house ‘Production’ Teradata Hortonworks New Zealand government agency ‘Production’ HP Cloudera US retail bank ‘Production’
Slide 19: Big Data partner momentum
Big Data partner momentum Partner strategy Fusion opens up more partners 7 partners Teradata Strategic Non-Stop 23 partners IBM Hadoop 6% EMC 80% of activity Infrastructure HP Oracle Software Hortonwork Dell Compatibility Services s Cisco Technical China Fusion 67% 3 reseller & services Tactical par
Slide 20: Customer wins with partners
Customer wins with partners After 2 years in a lab, Fusion was the u Oracle ’Big Data Appliance’ (BDA) customer signed 18 only product that would get us on a production timeline …which has been US Bank months previously - Oracle consulted on all data centre shortened to 30 days. The CTO office investm
Slide 21: Evolving ALM Market
Evolving ALM Market Share of $ software annual spend, 2014 Other 20% Subversion Git 53% 27% What does this mean for our business? Market growth, 2014 Product Distributed control Centralised control Source Code 7% Marketing New industries Old & new industries (inertia) Management growth New & convert
Slide 22: ALM strategy
ALM strategy The right market positioning Increased focus Data Exploration • The right product, Subversion, for the current ALM market - • Impact on sales from transition to a greater ALM focus in field WAN low latency, disaster recovery, developer access control sales • Highly credible in the marke
Slide 23: 2015 Goals
2015 Goals • Increased momentum in Big Data deals • Big Data partner ecosystem beyond Hadoop Distributors • Scale-up of existing Big Data contracts • ALM moves towards profit • Momentum expected to build through the rest of the year 23