Credit Clear Limited · ASX:CCR
Credit Clear — Q4 FY24 Earnings Presentation
14 slides from Credit Clear's earnings presentation, Jul 29, 2024
Slide 1: Record revenue, profitability and cash generation
For personal use only RECORD REVENUE, PROFITABILITY AND CASH GENERATION • $11.5m revenue in Q4 up 28% PCP Q4’ 24 Quarterly Update • $1.8m cash from operations in Q4 ASX: CCR | 29 July 2024 • ~$4m Underlying EBITDA for FY24
Slide 2: Important information
Important information This presentation has been prepared by and is the sole responsibility of Credit Clear No representation or warranty, express or implied, is made by any person as to the Limited ACN 604 797 033 (Company). The information contained in this presentation fairness, accuracy, complet
Slide 3: Agenda
Agenda 1. CEO Update For personal use only Andrew Smith 2. Financial Update Victor Peplow 3. Technology and Strategy Update Jason Serafino 4. Q&A 3
Slide 4: An integrated and end-to-end debt resolution provider
An integrated and end-to-end debt resolution provider For personal use only An ASX-listed company Trusted by thousands of clients in highly Strong economic Aligned with rapidly that has a commercially regulated and diverse tailwinds and industry changing customer proven AI-driven industries to engag
Slide 5: Growing operational leverage
Growing operational leverage Record revenue up 28% PCP and strong cash from operations resulting in FY24 Underlying EBITDA of approximately $4m For personal use only $11.5m $1.8m $13.1m Q4’24 Revenue1 Cash from Operations1,2 Cash at bank +28% PCP Improvement of $1.6m PCP Funded for growth +10% QoQ Y
Slide 6: Q4 '24 – Leading indicators
Q4 ’24 – Leading indicators Value and volume of new debt referred remains strong $2.3bn 1.3m 89 For personal use only Value of files under Active files New clients management (FUM) +8% PCP +70% success rate on +10% PCP tenders FUM ($bn) Active files (m) 2.4 1.4 2.4 1.4 1.3 2.2 2.3 2.3 1.3 1.3 1.3 2.
Slide 7: Clients building momentum
Clients building momentum Combined end-to-end and integrated offering is unmatched in Australia with SaaS platform and integrated contingent collections resonating strongly with clients providing strong sales momentum For personal use only 20 44 2 Tier-1 clients1 in Q4’24 2 Tier-2 clients2 in Q4’24
Slide 8: Growing adoption and use of SaaS platform
Growing adoption and use of SaaS platform Digital revenue has a gross margin of ~80% quarterly digital collections ($m) For personal use only 35 • Record quarterly digital collections of 33.2 $33.2m, up 65% PCP 30 29.6 • June result highlights the impact of Tier-1 25 26.3 26.6 clients adopting digit
Slide 9: 22% Uplift from AI
22% Uplift from AI • An experiment conducted from April to May, aimed For personal use only at enhancing the collection strategy for a large energy provider • The experiment utilised the company’s AI to determine the optimal time and type for digital messages to be sent • Specifically, the 'Action T
Slide 10: A new standard in hardship management
A new standard in hardship management A cutting-edge SaaS platform which provides a digital solution For personal use only for hardship management: • easy capture of financial circumstances • tailored payment arrangements • automating legislative compliance • providing robust monitoring capabilities
Slide 11: ANZ Bank
ANZ Bank For personal use only • During the quarter the Company went live with ANZ Bank, the Australian bank announced as a new client in May 2023 • Following an extensive onboarding process where the Company satisfied the bank’s significant due diligence requirements At the start of the quarter the
Slide 12: Illustrative client onboarding timeline
Illustrative client onboarding timeline For personal use only Reduce size of panel and broadening scope of work Increase share of business on panel 0 0-3 mths 3-6 mths 3 6-9 mths 6 9-12 mths 9 12-1512+ mths Optimisation, champion / Onboarding challenger testing, performance reporting Initial portfol
Slide 13: FY25 Outlook
FY25 Outlook • Trading conditions are supportive For personal use only Macroeconomic tailwinds • Australian companies strengthening their debt resolution capabilities • Continue to win share of wallet from large clients with our end-to-end hybrid offering Organic growth • Continued integration and d
Slide 14: For personal use only
For personal use only CEO & MD Andrew Smith Credit Clear E: andrew@armagroup.com.au Investor Relations Warrick Lace Credit Clear e: warrick.lace@creditclear.com.au m: +61 404 656 408 14