Xpon Technologies Group Ltd. · ASX:XPN
Xpon Technologies — Shareholder Meeting (October 2023)
23 slides from Xpon Technologies's shareholder meeting presentation, Oct 26, 2023
Slide 1: Managing Director & Chief Executive Officer's Presentation
ASX Announcement 26 October 2023 XPON Technologies Group Limited Managing Director & Chief Executive Officer’s Presentation Brisbane, Australia: XPON Technologies Group Limited (ASX:XPN)(XPON) is pleased to provide its Group Managing Director & Chief Executive Officer’s Presentation at the 2023 Annu
Slide 2: Annual General Meeting 2023
XPON Technologies Group Limited Annual General Meeting 2023 26 October 2023
Slide 3: Disclaimer
Disclaimer This Presentation and has been prepared by XPON Technologies Group Limited ACN Certain statements in this Presentation, particularly those regarding possible or assumed 635 810 258 (XPON or the Company). Shares in the Company are listed on ASX (ASX future performance, potential business g
Slide 4: CEO address
CEO address Matt Forman - Group MD and CEO POWERED EXPONENTIALLY | 8
Slide 5: XPON is a marketing technology company
XPON is a marketing technology company. Our mission is to modernise marketing and customer experience. © 2023 XPON Technologies Group Limited POWERED EXPONENTIALLY | 9
Slide 6: XPON's products and services create a better ROI for businesses
Improving targeting and XPON’s products measurement to increase and services create marketing effectiveness a better ROI for businesses by: Activating customer data to deliver more personalised and profitable customer experiences © 2023 XPON Technologies Group Limited POWERED EXPONENTIALLY | 10
Slide 7: How we help customers improve their marketing ROI
How we help customers improve their marketing ROI 1 2 Understand and simplify Leverage and centralise the technology mix first-party data Secure / private 3 Use enriched data to 4 power, measure and Enrich data to make it more optimise marketing and valuable with Machine customer experience (CX) Lea
Slide 8: Businesses face increasing complexity in achieving marketing ROI
Businesses face increasing complexity in achieving marketing ROI due to: Privacy Technology Regulations Disruption Increased government Need to accelerate regulations, third-party adoption of new cookies phasing out and technologies including first-party data rising in cloud, AI and machine prominen
Slide 9: FY23 Key financial metrics
FY23 Key financial metrics 1 13% 22% 4ppt $15.1m REVENUE $10.4m GROSS PROFIT 69% GROSS PROFIT MARGIN Note: 1. Audited © 2023 XPON Technologies Group Limited POWERED EXPONENTIALLY | 13
Slide 10: Q1 FY24 results
1 Q1 FY24 results 41% 42% $2.5m $1.7m REVENUE GROSS PROFIT -1ppt $2.8m 2 68% CASH GROSS PROFIT MARGIN Note: 1. Key metrics have not been subject to review by auditors. Comparisons are to the previous corresponding period 2. Cash - closing balance for period ended 30 September 2023 © 2023 XPON Techno
Slide 11: Actions to mitigate softening revenue
Actions to mitigate softening revenue Cash flow break-even targeted for FY25. ■ Align the cost base with current trading conditions effective October 2023, saving $1.5m annually. ○ Associated one-off costs of $250k will be reported in the December 2023 quarter. ■ Pursuing App Mod divestment and redu
Slide 12: Go to market through 2 Business Divisions
Go to market through 2 Business Divisions Marketing Technology (MarTech) App Modernisation (App Mod) License XPON’s technology. Convert customers to XPON’s technology. Sells Google’s software (Google Marketing Builds and deploys modern applications and Platform, Google Cloud) bundled with XPON’s cus
Slide 13: Mixed revenue performance across business divisions
Mixed revenue performance across business divisions Proforma Revenues ■ Core MarTech 3 year revenue CAGR of 38% with consistent YoY growth: ● macroeconomic trends squeezing consumer marketing budgets ● flat growth in recent quarters ■ App Mod 3 year revenue CAGR of 45%, however material decline in H
Slide 14: App Mod division not sustainable
App Mod division not sustainable Proforma revenue ■ Growth in 2022 was solid: ● strategy to grow customers continued ● $1.5m Q1 FY22 to $2.2m Q1 FY23 ■ Growth stalled from Q2 FY23: ● Softer economic conditions in the UK ● key recurring contracts paused in Q2 FY23 ● contracts scheduled to resume in Q
Slide 15: Pursuing divestment of App Mod division
Pursuing divestment of App Mod division In discussion with Reduce cash burn by a Provides clear strategic potential buyers further c$1.3m annually focus moving forward once divested on core MarTech business © 2023 XPON Technologies Group Limited POWERED EXPONENTIALLY | 19
Slide 16: MarTech customer growth reinforces strength
MarTech customer growth reinforces strength MarTech Customers ■ Ongoing customer number growth: ● Recurring customers up from 10 to 46 over 3 years, 66% CAGR ● Landed 16 customers over last 12 months with further potential to expand ■ Low customer churn MarTech ARR ● 99.3% monthly customer retention
Slide 17: Blue-chip MarTech customers with low churn
Blue-chip MarTech customers with low churn Currently 46 recurring and 16 non recurring customers, with Net Promoter Score (NPS) of 88. Financial services Retail & travel Media & entertainment Education Note: Non-recurring: customers that have landed and have not yet expanded into a recurring contrac
Slide 18: MarTech revenue and pipeline strong
MarTech revenue and pipeline strong ■ MarTech core to XPON’s growth strategy Proforma revenue ● Resilient business despite tighter customer marketing budgets (reduced ad spend by 10% YoY) ■ Revenue up 33% FY23 v FY22 ● Q1 FY24 revenue of $2.1m, flat YoY and up 2% QoQ ● Q1 FY24 Gross profit margin 73
Slide 19: AI impact on MarTech exploding
AI impact on MarTech exploding AI spend in marketing1 ■ Marketing predicted to be leading adopter of AI ■ Forecast 31% CAGR to $107B in AI marketing spend from 2022 - 2028 ■ Companies that implement AI 1, 2 Source: https://t.ly/fRPyW technologies see a 451% increase in ` qualified leads2 XPON’s has
Slide 20: MarTech moat created with Wondaris
MarTech moat created with Wondaris ■ Continued IP innovation Build intelligent ● AI to enrich customer insights Centralise your audiences for customer data better marketing ● faster time to value for customers in the cloud performance ● platform integrations to accelerate value ■ Competitive differe
Slide 21: Outlook and priorities
Outlook and priorities Cash flow break-even targeted for FY25. Clear priorities for the balance of the financial year: ■ Align the cost base with current trading ■ Retain and grow revenue from existing MarTech conditions, saving $1.5m annually. customers ■ Pursuing App Mod divestment and reduce cash
Slide 22: Summary
Summary Core MarTech AI impact on business has solid MarTech gaining MarTech exploding, base of long-term traction in UK, Wondaris has blue chip customers expanding integrated AI and with strong pipeline, relationship with we are well and low churn. Google in the region, positioned to Opportunity to
Slide 23: Contact
Contact For investors: investors@xpon.ai For media: marketing@xpon.ai
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