Hsenid Business Solutions Plc · CSELK:HBS.N0000

Hsenid Business Solutions — Q3 FY2025 Earnings Presentation

20 slides from Hsenid Business Solutions's earnings presentation, February 2025

  1. Slide 1: Quarterly Investor Forum 3Q FY2025

    Quarterly Investor Forum 3Q FY2025

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements This presentation may contain forward-looking statements for which there are risks, uncertainties, and assumptions. Forward- looking statements may include any statements regarding strategies or plans for future operations; any statements concerning new features, enhanceme

  3. Slide 3: hSenidBiz | PeoplesHR at a Glance

    hSenidBiz | PeoplesHR at a Glance $10 Bn+ TAM 1675+ Customers 1 Mn+ Global Users Market Opportunity APAC and MEA Operating across 40+ countries and Churn maintained at a healthy 20+ industries rate of < 1% $4.0 Mn Exit ARR $4.3 Mn CARR 30% ARR Growth Exit Annualized Recurring Revenue Contracted ARR

  4. Slide 4: PeoplesHR is poised to be the Most Preferred HR Tech Solution in Emerging Markets

    PeoplesHR is poised to be the Most Preferred HR Tech Solution in Emerging Markets ► Hire-to-retire HR Tech Platform which thrives in digitalizing complex business processes in Human Resource Management ► Robust CoreHR, Time & Attendance and Payroll Engine with strong focus on statutory compliance an

  5. Slide 5: Quarter at a Glance

    Quarter at a Glance Core Exit ARR ► Revenue of LKR 431 Mn (Q3 FY23 to Q2 FY25) USD Mn 4.0 ♦ YoY Growth of -5% in LKR terms; +4% in USD cc 3.8 3.7 ♦ Higher quality of revenue (67% recurring revenue 3.5 as % of total revenue) driven by growth in ARR and 3.3 3.1 decline in non-core revenues 3.0 2.7 2.8

  6. Slide 6: Key Business Updates

    Key Business Updates Product Development & Engineering ♦ New feature introduction for compliance in GCC region ♦ Seamless synchronization between clocking devices and PeoplesHR for efficient attendance processing ♦ Introduction of enhancements for payroll automation, improved transparency via automa

  7. Slide 7: Key Business Updates

    Key Business Updates Sales Update ♦ Strengthened inbound motion, aligning sales and marketing for consistent lead generation ♦ Direct-led outbound sales efforts delivering early results with structured account planning ♦ Demand generation stabilized with a pipeline of qualified opportunities Market

  8. Slide 8: New Deal Bookings

    New Deal Bookings New Deal Bookings USD Mn ► USD 255,968 new deal closures in Q3 3.5 ♦ 15% decline relative to 2Q FY25 3.0 ► Sri Lanka drove the majority of new deal 2.5 acquisitions in Q3 1.1 ♦ 70% originated from Sri Lanka while 2.0 0.7 18% originated from SEA 1.5 1.0 ► PHR Cloud accounted for ~99

  9. Slide 9: Summarized Income Statements

    Summarized Income Statements In LKR millions FY22 FY23 FY24 3Q FY24 2Q FY25 3Q FY25 Revenue 1,091 1,464 1,645 454 422 431 Gross profit 617 644 665 207 184 201 Gross profit margin 57% 44% 40% 46% 44% 47% Normalized EBITDA 329 138 (148) (18) (72) (35) Normalized EBITDA margin 30% 9% -9% -4% -17% -8% F

  10. Slide 10: Revenue Drill Down

    Revenue Drill Down 3Yr CAGR YoY growth All in LKR millions FY22 FY23 FY24 3Q FY24 2Q FY25 3Q FY25 (in LKR / USDcc) (in LKR / USD cc) PHR Cloud 372 678 893 235 275 258 Subscription Revenue (Recurring) 261 502 670 180 245 214 +48% / +20% +10% / +23% Professional Services 111 176 222 55 30 44 PHR On-pr

  11. Slide 11: Core Recurring Revenue

    Core Recurring Revenue Annual Core Recurring Core Recurring Revenue Composition Revenue Composition LKR Mn 1000 28% 33% 43% 41% 3yr CAGR +29% 58% 52% 800 600 72% 67% 942 57% 59% 400 +15% YoY (+26% in USD cc) 42% 48% 708 200 459 252 304 289 FY22 FY23 FY24 3Q 2Q 3Q FY24 FY25 FY25 0 FY22 FY23 FY24 3Q 2

  12. Slide 12: Revenue Composition

    Revenue Composition ► PHR Cloud remained the primary revenue driver at over 60% ► Sri Lanka remained the largest contributor to revenue with a slight increase in MEA contributions Product Breakdown Geographical Breakdown 1% 4% 6% 5% 9% 4% 15% 14% 6% 14% 14% 5% 17% 19% 11% 12% 8% 26% 24% 4% 5% 9% 9%

  13. Slide 13: Business Segments: PHR Cloud and On-Premise

    Business Segments PHR Cloud and On-Premise PHR Cloud Revenue PHR On-Premise Revenue LKR Mn LKR Mn 450 3yr CAGR +1% 1200 3yr CAGR +48% 900 300 600 -34% YoY (-27% in USD cc) +10% YoY (+23% in USD cc) 150 300 0 0 FY22 FY23 FY24 Q3 Q2 Q3 FY22 FY23 FY24 Q3 Q2 Q3 FY24 FY25 FY25 FY24 FY25 FY25 ► PHR Cloud

  14. Slide 14: Business Segments: PHR Tracking Solutions and Outsourcing

    Business Segments PHR Tracking Solutions and Outsourcing PHR Tracking Solutions Revenue PHR Outsourcing Revenue LKR Mn LKR Mn 3yr CAGR +30% 150 100 3yr CAGR +27% 75 100 -7% YoY (-7% in USD cc) 50 +22% YoY (+32% in USD cc) 50 25 0 0 FY22 FY23 FY24 Q3 Q2 Q3 FY22 FY23 FY24 Q3 Q2 Q3 FY24 FY25 FY25 FY24

  15. Slide 15: Cost of Sales Drill Down

    Cost of Sales Drill Down YoY All in LKR millions FY22 FY23 FY24 3Yr CAGR 3Q FY24 2Q FY25 3Q FY25 growth On-site and third-party implementation costs† 59 94 150 +37% 41 27 23 -45% Infrastructure costs†† 53 170 162 +69% 43 38 40 -6% Cost of devices sold 54 64 49 +20% 16 20 15 -6% Mobile solutions rela

  16. Slide 16: Analysis of Normalized EBITDA Margin

    Analysis of Normalized EBITDA Margin Expenses as a % of Revenue Normalized EBITDA Margin† 30% 22% 25% 26% 25% 16% 32% 35% 9% 18% 26% 28% 32% 18% -4% 56% 60% 54% 56% 53% -8% 43% -9% -17% FY22 FY23 FY24 3Q 2Q 3Q FY22 FY23 FY24 3Q 2Q 3Q FY24 FY25 FY25 FY24 FY25 FY25 COGS†† Admin Expenses††† S&M Expense

  17. Slide 17: Cash Position and IPO Fund Utilization

    Cash Position and IPO Fund Utilization Cash Position IPO Fund Utilization LKR Mn LKR Mn 1600 700 96 1400 600 1200 500 1000 400 800 300 350 596 600 200 400 100 202 140 200 0 Market Development Product Development Total 0 Initiatives Initiatives FY22† FY23† FY24† 3Q FY25† Cash Position IPO Proceeds In

  18. Slide 18: Free Cash Flow Generation

    Free Cash Flow Generation 300 30% 200 20% 100 10% 0 0% -100 -10% -200 -20% -300 -30% -400 -40% -500 -50% -600 -60% FY22 FY23 FY24 3Q FY24 2Q FY25 3Q FY25 Operating Cash Flow Capex & Lease Payments Free Cash Flow to the Firm FCFF Margin† ► Improved cash collections from existing customers during the

  19. Slide 19: Peer HCM and SaaS company benchmarking

    Peer HCM and SaaS company benchmarking (For the last reported quarter) HCM Peers SaaS Peers 32% 20% 25% †† †† ARR Growth 306% 146% 181% †† †† GTM Efficiency Ratio NRR 104% 103% 108% † †† †† (Net Revenue Retention) <1% 5% N/R †† Revenue Churn Rate ♦ Analysis of HCM Peers includes ATOSS, Zalaris, Work

  20. Slide 20: Investor Forum

    Investor Forum Join us for the Investor Forum Q&A Session 18th of February 2025 3.00 pm IST for Q3 FY2025 You can use the Q&A functionality in zoom to send in your questions; or alternatively Click on the "Raise your hand" button to be given an opportunity to unmute your microphone and pose your que

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