Slide 1: Full year results presentation
Full year results presentation Mark Furness for the year ended 31 July 2024 Chief Executive Officer & Founder Greg Price Chief Financial Officer 1 essensys.tech
Slide 2: Powering the world's largest community of flexible, tech driven spaces
Powering the world's largest community of flexible, tech driven spaces. 2
Slide 3: Our Business
FY24 Our Business Helping our customers deliver digitally enabled buildings and spaces since 2006 3
Slide 4: Highlights
FY24 Highlights 01 02 03 Performance ahead of Successful transition to pure-play On track to be EBITDA profitable expectations SaaS model supports scalable, in FY25 sustainable growth 4
Slide 5: essensys Strategic Progress
FY24 essensys Strategic Progress Momentum with 01 All customers now on our pure-play SaaS product, essensys Platform 02 strategic customers driving revenue visibility and quality of earnings 03 Site growth across all regions Streamlined organisation 04 05 Success in retaining and supports better dec
Slide 6: essensys Investment Case
FY24 essensys Investment Case Structural shift in Transition to pure A market leader Developing new Working with the global office play SaaS model to in software and product global leaders in market driven by deliver continued technology that capabilities that commercial real new world of hybrid imp
Slide 7: Financial Review
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Slide 8: Financial highlights
FY24 Financial highlights Revenue, EBITDA and cash ahead of expectations, reflecting progress with strategy £20.3m £24.1m ARR at year end Total Revenue +5%* -2%* £(0.9)m £3.1m Adjusted EBITDA Cash balance 86% improvement vs. last year * At constant currency 8
Slide 9: Shift in model supports scalable, sustainable growth
FY24 Shift in model supports scalable, sustainable growth £’M FY24 FY23 % % CHANGE ARR Growth of 5%*, driven by strategic CHANGE (CONSTANT customer expansion CURRENCY) ARR 20.3 20.0 +2% +5% Recurring revenue decline of -1%*, driven by UK & Europe -8%*, offset by North America +2%* and APAC +60%* Rec
Slide 10: Momentum with strategic customers...
FY24 Momentum with strategic customers... ARR bridge July 2023 to July 2024 (£m) Strategic Strategic Strategic Strategic customers customers customers customers £0.5m -£0.1m £1.1m £0.2m 10
Slide 11: ...is improving revenue quality
FY24 ...is improving revenue quality Strategic customer performance (£m) £’M FY24 FY23 % CHANGE ARR Growth of 8%*, driven by 9% increase in total volume of cohort ARR 16.7 15.5 +8% 11 new customers, contributing £0.5m of ARR Net Revenue Retention of 111% shows ability to grow existing base Recurring
Slide 12: Cost savings underpin improving financial results
FY24 Cost savings underpin improving financial results YEAR ENDED 31 JULY FY24 FY23 TOTAL REVENUE 24.1 25.3 Cost of sales (10.4) (10.4) Gross profit decrease of 8%, driven by GROSS PROFIT 13.7 14.9 reduced revenue, with margin pressure Gross margin % 57% 59% relating to hardware installations Operat
Slide 13: Progress towards profitability
FY24 Progress towards profitability 6 Adjusted EBITDA 4.2 4 2 1.3 0 -2 -0.9 -4 -6 -6.3 -8 -7.0 FY20 FY21 FY22 FY23 FY24 13
Slide 14: Cash outflows significantly reduced
FY24 Cash outflows significantly reduced Cashflows FY 24 (£m) Axis Title 14 Axis Title
Slide 15: H2 FY24 shows path to run rate cash generation in FY25
FY24 H2 FY24 shows path to run rate cash generation in FY25 FY24 Cash burn by quarter (£m) Restructuring payments £1m Working capital 7.9 £1m 8 (offset by end of year) 7 R&D tax 6 receipt -1.9 £0.9m 5 4 +0.5 3.1 3 -2.5 2 -0.9 1 0 Opening cash Q1 Q2 Q3 Q4 Closing cash 15
Slide 16: Operational Review
Operational Review 16
Slide 17: Operational highlights FY24
FY24 Operational highlights FY24 Focus on strategic customers Pure play SaaS transition Operating model aligned with driving evolution of customer lowering barriers to entry and strategic customer focus and base adoption pure play solution 17
Slide 18: Benefits of simplified operating model
FY24 Benefits of simplified operating model Simplified operating £9m annual cost structure enables savings delivered better decision- through reorganisation making, collaboration in FY23 and focus on strategic customers Focus on product We are better placed innovation; 30% of to support our total he
Slide 19: Landing and expanding high value strategic customers
FY24 Landing and expanding high value strategic customers Improving quality of customer base 100% 9% Growth in strategic 82% Of ARR and total revenue 80% customers (FY23: 77%) 60% Significant long-term expansion opportunity exists within existing 40% strategic accounts 93% 20% 111% Net revenue reten
Slide 20: Milestone customer expansions
FY24 Milestone customer expansions United States Australia 3 year term +350 sites in total 5 year term 30 sites for Phase 1 $1M ARR min. US headquartered $1M ARR min. Listed Australian REIT contracted global CRE company contracted BOOKINGS BOOKINGS £324k ARR £431k ARR LIVE LIVE £287k ARR £246k ARR 2
Slide 21: Evolution of office market creating long term structural growth opportunity
FY24 Evolution of office market creating long term structural growth opportunity 93% 9% Premium buildings command a Premium buildings have 9%+ 93%+ premium in net rent vs. higher occupancy rates lower-tier buildings2 vs. lower-tier buildings2 30% 44% Organisations have increased Use of collaboration
Slide 22: Product Development
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Slide 23: A Digital Experience and Intelligence platform
FY24 A Digital Experience and Intelligence platform essensys Platform Customer migrations now complete Access Intelligence Manage occupiers, Real-time insights deliver spaces and digital deep understanding of services space utilisation and occupier experience Pure play proposition Experience Next-ge
Slide 24: Access
FY24 Access Manage and control access to spaces and services with powerful identity and role- based rules and permissions Instant or scheduled onboarding & offboarding of tenants – allocate spaces, assign services and grant access quickly & easily using powerful workflow automations Ensure only trus
Slide 25: Intelligence
FY24 Intelligence Powerful insights into the relationship between buildings, spaces and users Get high-resolution, high-fidelity insights pulled from multiple proprietary datasets with Intelligence Engine Understand how spaces are used- by who, how often, when & more – with space utilisation insight
Slide 26: Experience
FY24 Experience Frictionless, digital-first journeys throughout the tenant lifecycle. Create a network of connected spaces where users can seamlessly move throughout & between spaces, safely & securely Keep users well-connected as they roam without connectivity blackspots or issues Make your spaces
Slide 27: Outlook
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Slide 28: Well placed to capture the long-term opportunity
FY24 Well placed to capture the long-term opportunity On track for positive Continued improvement Sales bookings We remain confident in adjusted EBITDA in FY25 in revenue mix as expectations supported the long-term structural and run-rate cash customers adopt our by strategic customer growth opportu
Slide 29: Questions
Questions 29
Slide 30: Thank you
Thank you Nominated advisor & broker: Singer Capital Markets +44 (0)20 7496 3000 Financial public relations: FTI consulting +44 (0)20 3727 1000 30 essensys.tech
Slide 31: Important Notice
essensys Important Notice This presentation (this “Presentation”), which has been prepared by, and is the sole responsibility of, essensys plc (the “Company”), has been prepared solely in connection with the Company’s full year results for the 12-month period ended 31 July 2024. This Presentation, i