Celebrus Technologies Plc · LSE:CLBS
Celebrus Technologies — D4t4 Solutions — H1 2020-21 Earnings Presentation
35 slides from Celebrus Technologies's earnings presentation, November 2020
Slide 1: Specialists in Data Platforms: 2020-21 Interim results
Specialists in Data Platforms 2020-21 Interim results For the 6 months ended 30 September 2020
Slide 2: Introduction
Introduction 2 © D4t4 Solutions plc
Slide 3: About D4t4 Solutions
About D4t4 Solutions BLISH TA from D4t4 Solutions ED ES 1985 World class, multi patented, real-time, enterprise Customer Data Platform and Global Customer Data Management software sales and delivery in 26 countries Listed on the Recurring revenue 2019/20 London Stock £10.1m Exchange Celebrus product
Slide 4: D4t4 Solutions is a specialist in data platforms
D4t4 Solutions is a specialist in data platforms that large enterprises need to complete their digital transformation Web Mobile ATM Card Reader Internet of Things Customer Data Platform Internal data External data Customer Data Management Hybrid Cloud Platform Commercial analytics Risk analytics Fr
Slide 5: Increased number of use cases for our digital data
Increased number of use cases for our 100% compliant, contextualised, first party, real time digital data CUSTOMER WEB MOBILE MARKETING ADVERTISING CRM RISK/FRAUD EXPERIENCE § Collect once, use many § Single, most complete view of the digital consumer § Instantly combined with other customer data to
Slide 6: Highlights
Highlights 6 © D4t4 Solutions plc
Slide 7: Financial highlights
Financial highlights • Group revenue and adjusted profit in line with management expectations • Revenue of £5.09m (H1 2019-20: £8.84m) • Annual recurring revenue (ARR) increased 27.4% to £10.09m (H1 2019-20: £7.92m) • Adjusted loss before tax £0.92m (H1 2019-20: profit £0.74m) • Adjusted EPS of -1.5
Slide 8: Operational highlights
Operational highlights • New customer contracts in South America, mainland Europe and North America across financial services, healthcare and consumer organisations • Extended relationship with range of existing clients globally with sales of increased capacity • Continued to promote and enhance rel
Slide 9: Market opportunity
Market opportunity Our opportunity for growth in the Customer Data Platform and Customer Data Management markets is being amplified by the increased pressure on enterprises to accelerate their digital transformation 9 © D4t4 Solutions plc
Slide 10: Market Opportunity
Market Opportunity • Recent data from MarketsandMarkets suggests the global CDP - Customer Data Platform market is to grow from $2.4bn in 2020 to $10.3bn by 2025 • This is a Compound Annual Growth Rate of 34% • Market Research inc. reports on the size of the CDM - Customer Data Management market as
Slide 11: Strategic direction
Strategic direction 11 © D4t4 Solutions plc
Slide 12: Strategic direction
Strategic direction • Transition to an annual recurring revenue model by 2022-23 • Expand sales reach via global enterprise partners • Continued investment for growth - grow international footprint • Drive product innovation - new patents in US and Europe • Extend product family capabilities to incl
Slide 13: Key Financials
Key Financials 13 © D4t4 Solutions plc
Slide 14: Financial Headlines
Financial Headlines Revenue ARR Gross profit margin Adjusted profit before tax (£m) (£m) (%) (£m) 2020 5.1 2020 10.1 2020 48.6 2020 -0.92 2019 8.8 2019 7.9 2019 51.8 2019 0.74 2018 14.00 2018 6.3 2018 51.0 2018 3.35 2017 4.8 2017 6.0 2017 43.8 2017 -0.38 © D4t4 Solutions plc 14
Slide 15: Income Statement
Income Statement 2020 2019 £'M £'M Products - Own IP 0.3 1.8 Products - 3rd party 0.3 2.2 • Sales and therefore profits down due to delay Delivery services 1.3 1.8 in contracts closing Support & maintenance 3.2 3.0 Revenue 5.1 8.8 • c. £5.5m additional 2020-21 revenues due Cost of sales (2.6) (4.3)
Slide 16: Balance Sheet
Balance Sheet Sep-20 Mar-20 Balance Sheet £'M £'M Non-current assets 14.3 14.0 • Balance Sheet remains strong Receivables 3.2 10.8 • Year-end receivables & payables unwound Inventory 1.6 1.3 (net £1.8m increase in cash including tax Cash 12.1 12.8 refund) Total Assets 31.2 38.9 • £12.1m cash and no
Slide 17: Cashflow
Cashflow 2020 2019 Cash Flow £'M £'M Opening cash 12.8 11.0 • Net Cash balance +£0.9m versus Sep-19 at Operating cash before WC (1.0) 1.2 £12.1m WC movements 1.2 (0.9) • Operating loss more than offset by unwinding Taxes refunded / (paid) 0.2 (0.2) of Year-end working capital Net cash from operation
Slide 18: Recurring Revenue transition update
Recurring Revenue transition update • ARR now £10.1m (Mar-20: £9.6m, Sep-19: £7.9m) • H2 weighting remains due to revenue recognition (IFRS 15) • Some customers resistant to move to recurring which may slow transition slightly • For imminent PaaS deals, there will likely be some material capex & lea
Slide 19: Financial Summary
Financial Summary ü Transition to recurring revenue continues ØARR up 27% versus September 2019 at £10.1m ØKnown trade-off being short term impact to Sales & profit üOperating expenses down but investment in US & APAC continues üBalance Sheet remains strong üShortfall in revenues & profit in H1 due
Slide 20: Our business and growth drivers
Our business and growth drivers 20 © D4t4 Solutions plc
Slide 21: Our business
Our business from D4t4 Solutions • Celebrus Product family includes: • Real time data collection • Real time data migration and synchronisation • Real time data monitoring and management • Celebrus product sales now account for 80% of revenues • Includes Celebrus software licences, delivery services
Slide 22: Growth driver: First party real time behavioural data
Growth driver: First party real time behavioural data Experience “First party real time Commercial Marketing behavioural data is finding more uses within Behavioural data organisations making it more valuable and increasingly critical to business operations” Fraud Risk © D4t4 Solutions plc 22
Slide 23: Growth driver: Real-time data production and usage growing quickly
Growth driver: Real-time data production and usage growing quickly Nearly 30% of all data generated will be consumed in real-time by 2025 Source: IDC © D4t4 Solutions plc 23
Slide 24: Growth driver: Maturing clients are expanding the market
Growth driver: Maturing clients are expanding the market CELEBRUS TARGET MARKET Level 1 Level 2 Level 3 Level 4 Level 5 • Celebrus is bought by Analytics organisations striving for level 4 2018 2023 differentiates company maturity or above 67% 22% Portfolio management of vendors • Today this is appr
Slide 25: Growth driver: Regulations impacting enterprise clients
Growth driver: Regulations impacting enterprise clients PIPEDA GDPR HIPPA Chinese Cybersecurity Law CalOPPA Indian Information Technology CCPA Acts 2000 and 2011 APP LGPD PoPI New Zealand Privacy Act 1993 © D4t4 Solutions plc 25
Slide 26: Recognised and covered by major industry analysts
Celebrus is now regularly recognised and covered by major industry analysts - 35+ notes published in last year Including reports and articles from: § Gartner § Forrester § CDP Institute § Real Story Group § Quadrant § CDP Resource © D4t4 Solutions plc 26
Slide 27: Partners enable our business to scale
Partners enable our business to scale Technology Partners Service Partners Technology partners enable our Service partners provide the sales with joint propositions people to deliver our technology © D4t4 Solutions plc 27
Slide 28: Strategy for growth…
Strategy for growth… 28 © D4t4 Solutions plc
Slide 29: Clear growth strategy leads to a sustainable data platforms business
Clear growth strategy leads to a sustainable data platforms business and predictable revenues Large Enterprises • Highly focussed data centric product development (5000) • Influence industry analysts & opinion formers Megadata companies • Partner with, and sell alongside, complimentary (500) technol
Slide 30: Executing the strategy in FY2020-21
Executing the strategy in FY2020-21 • North American investment continues • Continued annual recurring revenue increase to drive more stable growth • Partner relationships continue to strengthen • Moving clients onto Celebrus V9 • Technology advantage continues to grow with ML and NLP • CX – Fraud –
Slide 31: Outlook
Outlook 31 © D4t4 Solutions plc
Slide 32: Outlook - current trading
Outlook - current trading • Largely unaffected by COVID-19 • High level of customer retention and increasing annual recurring revenue has mitigated any material impact • Transition to annual recurring revenue model continues • The year is progressing well and in line with our expectations with excep
Slide 33: Questions?
Questions? 33 © D4t4 Solutions plc
Slide 34: Disclaimer
Disclaimer This presentation and associated materials have been prepared by and are the sole responsibility of the group. The directors of the group have taken all reasonable care to ensure that the facts stated herein are true to the best of their knowledge, information and belief. This document do
Slide 35: Celebrus use cases
Celebrus use cases © D4t4 Solutions plc 35