FINEOS Corporation Holdings Plc · ASX:FCL
FINEOS — FY2024 Earnings Presentation
24 slides from FINEOS's earnings presentation, Feb 26, 2025
Slide 1: FY24 Results Presentation
For personal use only FY24 Results Presentation Michael Kelly (Founder and CEO) and Ian Lynagh (CFO) © FINEOS Corporation Ltd 26 February 2025 1
Slide 2: The FINEOS Playbook – A powerful culture with a singular focus
The FINEOS Playbook – A powerful culture with a singular focus Vision For personal use only ON A world where protection from TI illness, injury and loss is accessible to everyone C FINEOS Mission TE PRO “Global market leader in core systems for group and individual Life Accident and Health insurance
Slide 3: FY24 Financial Highlights
FY241 Financial Highlights FINEOS transitioning to a higher quality subscription revenue business with improving margins Subscription ARR Total For personal use only Revenue €71.2m Revenue €69.9m at 31 December’24 €133.2m Up 6.6% on CY23 Subscription revenue now Up 9.0% on 31 December 2023 Up 6.9% o
Slide 4: FY24 Operational Highlights
FY24 Operational Highlights Guardian live on FINEOS AdminSuite FINEOS New Business & FINEOS Absence for For personal use only New York Life - Underwriting product rewrite Employer now live with 2 GBS launched Voluntary was completed as SaaS cloud large US employers since Q3 Benefits on FINEOS native
Slide 5: Our People – Key asset of the business
Our People – Key asset of the business Employees by Function 1.5% For personal use only 5.2% 32.6% Product Consulting ▪ Average Product Consulting utilisation for the period was 85% (CY23: 87%) 85% Cloud Ops Utilisation R&D ▪ Employee Retention of over 90% Sales & Marketing 51.7% ▪ Scaling of FINEOS
Slide 6: Geographic mix of revenues
Geographic mix of revenues Aligned with our investment strategy North America continues to remain the dominant regional source of revenue at 79.4% of total revenue in FY24 For personal use only FY24 revenue by region CY23 revenue by region Changes to revenue growth by region 4.1% 5.1% • North Americ
Slide 7: FY24 – Financial Slides
For personal use only FY24 – Financial Slides © FINEOS Corporation Ltd 7
Slide 8: Income Statement
Income Statement • Total Revenue €133.2m (CY23: €124.7m) Income Statement FY24 CY23 % Change €m €m o Subscription revenue grew by 6.6%, driven by a mix of new name For personal use only Subscriptions 69.9 65.6 6.6% Services 62.2 58.7 6.0% acquisitions, existing FINEOS Clients migration to the FINEOS
Slide 9: Subscription Revenue continues to dominate over Services Revenue
Subscription Revenue continues to dominate over Services Revenue Up-sell expansion initiatives and new customer wins has seen subscription revenue growth consistent with FINEOS’ strategy Breakdown of FY24 Revenues: Total Revenue €m For personal use only • Total Subscription Revenue of €69.9m 149.9 g
Slide 10: Operating Expenses
Operating Expenses 100m Total Operating Expenses €M Operating expenses FY24 CY23 % Change €m €m 80m For personal use only Research & development (23.3) (23.5) (1.1%) Sales & marketing (3.4) (6.2) (45.5%) 60m Product consulting (21.8) (19.2) 13.5% 40m Cloud operations/support (14.2) (16.0) (11.5%) Ge
Slide 11: R&D investment spend leveling off & decreasing as a % of revenue
R&D investment spend leveling off & decreasing as a % of revenue FINEOS is changing the profile of its R&D spend to focus more on digital and data related work For personal use only Ongoing investment being made in R&D to continue to drive subscription R&D investment €m revenue growth 38.5% ▪ North
Slide 12: Balance sheet
Balance sheet • Cash at bank in line with our forecast and movement reflects Statement of Financial Position 31 Dec 24 31 Dec 23 % Change investment in the period €m €m For personal use only Cash at bank 19.8 28.1 (29.5%) • Trade receivables rose 37.6% mainly due to the issue of some Trade receivabl
Slide 13: Statement of Cash Flows
Statement of Cash Flows • Net cash generated from operating activities of €18.8m Statement of Cash Flows FY24 CY23 % Change increased 119.7% compared to CY23 reflecting improved cash collection and cost management €m €m For personal use only Net cash generated from operating • Net cash used in inves
Slide 14: FY25 Outlook & Key Priorities
For personal use only FY25 Outlook & Key Priorities © FINEOS Corporation Ltd 14
Slide 15: Significant growth opportunity for FINEOS in North America
Significant growth opportunity for FINEOS in North America Existing clients Total Employee Benefits Market (AM Best) • FINEOS penetration is at 10-15% For personal use only US$200b premium • Up-sell white space to expand lines of business supported • Cross-sell opportunity for FINEOS FINEOS Target M
Slide 16: FY25 Key Priorities
FY25 Key Priorities ✓ Achieve positive FCF for FY25 and cash generative thereafter For personal use only ✓ Progressively embed AI within the FINEOS Platform for improved performance and outcomes ✓ Guardian Life - 1/1/2026 Phase 2 go live on FINEOS AdminSuite to enable further scaling ✓ Continue to i
Slide 17: Outlook & Guidance for FY25
Outlook & Guidance for FY25 For personal use only • FY25 (1 January – 31 December) revenue to be in the range €138m - €143m • Guidance reflects ongoing work on large programs and the lengthy sales cycles • On track for successful delivery of key projects to replace legacy systems with several large
Slide 18: Outlook & Guidance for beyond FY25
Outlook & Guidance for beyond FY25 For personal use only Following a 3-Year period of above ‘industry normal’ R&D investment levels to meet positive demand from Tier 1 North American carriers, coupled with R&D investment required to automate the SaaS features of the FINEOS Platform to drive greater
Slide 19: Disclaimer
Disclaimer For personal use only This presentation has been prepared by FINEOS Corporation Holdings PLC (Company or FINEOS). By accessing or attending this presentation, you acknowledge that you have read and understood the following statements. NO OFFER OF SECURITIES Nothing in this presentation sh
Slide 20: Thank you
For personal use only Thank you © FINEOS Corporation Ltd 20
Slide 21: Appendices
For personal use only Appendices © FINEOS Corporation Ltd 21
Slide 22: Detailed Statement of Financial Position
Detailed Statement of Financial Position Statement of Financial Position 31 Dec 24 31 Dec 23 % Change €m €m Cash at bank 19.8 28.1 (29.5%) Trade receivables 11.4 8.3 37.6% Unbilled receivables 0.5 1.0 (47.5%) For personal use only R&D tax credit 0.3 0.7 (55.1%) Prepayments and other receivables 7.4
Slide 23: FINEOS DEI - Embrace
FINEOS DEI - Embrace Our FINEOS Embrace DEI mission statement is that “as a company, we are committed to recognizing the value of diversity among our employees, which includes intentionally building a work environment where all employees feel included and For personal use only valued both irrespecti
Slide 24: FINEOS ESG Strategy
FINEOS ESG Strategy At FINEOS ESG enables our FINEOS Growth Strategy and the key areas of focus across the three pillars for our ESG strategy are: •Maintain a low carbon footprint and support initiatives to further reduce •Support our people through diversity and inclusion, community initiatives and
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