Slide 1: ReadCloud Limited: Positive Operating Cashflow and FY25 Outlook
ReadCloud Limited Positive Operating Cashflow and FY25 Outlook FY24 Audited Annual Results
Slide 2: FY24 Financial Highlights
FY24 Financial Highlights Executing with discipline into a deep pool of opportunity Up 15% Down 6% Up 146% Up 207% $1.43m Sales & Fee Revenue Operating costs Underlying EBITDA* Operating Cashflow Cash $11.9m Restructured workforce $0.36m $0.41m Continued Debt Free status Organic growth in all The bu
Slide 3: Revenue Growth Trend
Revenue Growth Trend Organic Growth in all business lines FY23 v FY24 Sales and Fee Revenue Drivers of Organic Growth • Strong retention rate of 93% across eBooks and VET-in-schools $ 12 m • Addition of new schools $ 10 m • Strengthening market positioning driving inbound inquiries $8m • Heightened
Slide 4: FY24 Highlights
FY24 Highlights Significant turnaround with positive underlying earnings and positive operating cashflow. Effective cost control is in place. In FY24 operating costs reduced by 6% and supported 15% growth in Sales and Fee Revenue. eBooks VET-in-schools Industry Training • Retention rate increased to
Slide 5: ReadCloud's Approach
ReadCloud’s Approach We deliver educational technology, content, and training programs to Australian and International markets. We enhance learning through an innovative platform, exceptional service, and tailored management solutions. We strategically nurture our competitive advantages and are aliv
Slide 6: Key Offerings & Drivers of Success
Key Offerings & Drivers of Success Innovative Technology Content & Materials Reach & Distribution Vocational Training • Digital-first, publisher- • Australian-owned tech and • Efficient global distribution • Australia’s largest range of agnostic eBook platform content IP without increasing the cost
Slide 7: ReadCloud Delivers Quality Learning Opportunities
ReadCloud Delivers Quality Learning Opportunities Equity of Access Providing equal access to learning resources and opportunities to all students including those in remote and regional locations Timely Resource Delivery Ensuring the right books reach the right students at the right time Vocational P
Slide 8: Driving Continuous Improvement through Customer Engagement
Driving Continuous Improvement through Customer Engagement We embrace insights and feedback to strengthen our service offerings, focusing on the following areas: Support Sessions A dedicated team committed to supporting customers and ensuring seamless use of our products Personalised Customer Care R
Slide 9: The Problems We Help Solve
The Problems We Help Solve Content Delivery and Learning Compliance and Industry Access and Equity Ease and Efficiency Support Support • Ensuring equity of access to • Efficiently delivering relevant • Removing training • Facilitating the achievement learning resources and educational content to com
Slide 10: Service Sectors
Service Sectors Vocational Education and Training delivered to Vocational Education and Training Delivered to eBooks for Schools & Students Secondary School Students Industry A digital-first platform that aggregates eBooks from Delivering high-quality vocational training programs A valued and reliab
Slide 11: Key Services and What They Do: eBooks
Key Services and What They Do eBooks Services & solutions Application Problem solved Benefits & Pricing & scalability Total Addressable competitive advantage Market Provisioning Australian book hire No more multiple Reduces administrative Retail margin on books Australian schools k-12 schools logins
Slide 12: Key Services and What They Do: VET-in-schools
Key Services and What They Do VET-in-schools Services & solutions Application Problem solved Benefits & Pricing & scalability Total Addressable competitive advantage Market High-quality VET-in-Schools Auspicing agreements (our RTO compliance Students no longer need to Course fee Australian Secondary
Slide 13: Key Services and What They Do: Industry Training
Key Services and What They Do Industry Training Services & solutions Application Problem solved Benefits & Pricing & scalability Total Addressable competitive advantage Market Deliver nationally Delivery of Certificate III Meeting staff qualification Managed service solutions, Per student fee Austra
Slide 14: Innovation and Customer Connection
Innovation and Customer Connection Comprehensive Services and enriched user engagement Technology for teachers, students and schools Access to leading Publisher and Proprietary Content for comprehensive range of subjects and courses FY24 Audited Annual Results 14
Slide 15: Organic Growth Horizon
Organic Growth Horizon Demonstration of sustained organic revenue Core Growth Levers growth at 15% eBooks $ 18 m • Sales to schools $ 16 m • New Australian schools • New International schools $ 14 m • Increased adoption within existing school customers • Entry into Booklist category $ 12 m VET-in-sc
Slide 16: Growth Pathways
Growth Pathways FY25 Medium Term eBooks • Increase international school customers from existing 5 • Expand sales team and target NSW schools • Signing additional Australian Schools • Build a dedicated team to reach scale in international business using learnings from initial clients • Entry into Boo
Slide 17: FY24 Summary Profit and Loss
FY24 Summary Profit and Loss $’000 30-Sept-24 30-Sept-23 YOY Notes Sales and fee revenue 11,904 10,349 15% Less publisher & bookseller fees (3,974) (3,619) 10% • Sales & Fee Revenue up 15% Less trainer costs (1,236) (877) 41% • Operating expenses down 6% Less Cost of sales - Other (129) (52) 148% •
Slide 18: Strong track record of revenue growth
Strong track record of revenue growth Sales and Fee Revenue by business $ 12 m $ 10 m $8m $6m $4m $2m $0m FY21 FY22 FY23 FY24 eBooks VET-in-schools Industry Training FY24 Audited Annual Results 18
Slide 19: Operating Expenses actively managed
Operating Expenses actively managed Executing with discipline into a deep pool of opportunity Operating expenses as % of Sales and Fee Revenue FY21 FY22 FY23 FY24 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% Employment costs Non-employment costs FY24 Audited Annual Results 19
Slide 20: Solid Earnings Improvement
Solid Earnings Improvement Underlying EBITDA FY21 FY22 FY23 FY24 600 400 200 #039;000 - (200) (400) (600) (800) (1,000) FY24 Audited Annual Results 20
Slide 21: FY23 to FY24 Underlying EBITDA Earnings Bridge
FY23 to FY24 Underlying EBITDA Earnings Bridge #039;000 FY24 Audited Annual Results 21
Slide 22: Underlying Earnings Now Positive
Underlying Earnings Now Positive Reconciliation of statutory loss to underlying EBITDA $’000 30-Sept-24 30-Sept-23 YOY Notes Reported (statutory) net loss after tax (1,019) (2,252) -% • Contingent consideration liability in respect of Southern Solutions Depreciation and amortisation 1,024 1,142 -10%
Slide 23: Balance Sheet
Balance Sheet $’000 30-Sept-24 30-Sep-23 Notes Cash and cash equivalents 1,431 1,709 Trade and other receivables 978 1,154 • Maintaining a strong cash position Prepayments 115 112 • Debt free Total current assets 2,524 2,975 Non-current deposits 0 36 • Expiry of Contingent Consideration Property, pl
Slide 24: Cashflow
Cashflow $’000 30-Sept-24 30-Sept-23 YOY Notes Receipts from customers 12,042 10,690 13% Payments to suppliers -12,006 -11,564 4% • Effective Working Capital R&D tax incentive refund 333 424 -21% Management Interest income 33 17 94% • Revenue growth converting to cash Income tax refund / (paid) 12 4
Slide 25: FY25 Outlook and Targets
FY25 Outlook and Targets Management remains focussed on Continuing organic revenue growth Cost growth % targeted to be disciplined execution that unlocks baseline target of 15% meaningfully lower than revenue operating leverage growth % Organic Growth Priorities FY25 • Growth in Australian School Cu
Slide 26: Investment Highlights
Investment Highlights • Large addressable markets in education present a deep pool of opportunity • Strong tailwinds – migration to online education and government recognition of the importance of vocational training • School-based education businesses are resilient to geopolitical and economic shoc
Slide 27: Corporate Snapshot
Corporate Snapshot ASX Code: RCL Substantial Shareholders Share Price (19 November 2024) $0.081 Board and management shareholdings* 22.6% Thorney Group* 11.3% Market capitalisation (@ 8.1 cents) $12.0m Microequities Asset Management 9.1% Shares on issue 147.6m Lars Lindstrom 6.4% Options on issue (u
Slide 28: Disclaimer
Disclaimer This presentation has been prepared by ReadCloud Limited (“Readcloud”), based on information available as at Forward looking statements the date of this presentation. The information in this presentation is provided in summary form and does not contain all information necessary to make an