Quartix Technologies Plc · LSE:QTX
Quartix Technologies — H1 2019 Earnings Presentation
23 slides from Quartix Technologies's earnings presentation, Jul 24, 2019
Slide 1: Real-Time Vehicle Tracking Interim Results Presentation
Real-Time Vehicle Tracking Quartix Holdings plc 24 July 2019 Interim Results Presentation
Slide 2: Highlights
Highlights NEW INSTALLATIONS Investment in fleet drives 20,000 1ST 6 MONTHS subscription base growth 10,000 • Substantial investments in new installations, R&D, marketing and development of new markets 0 • New unit installations in H1 increased by 48% to 22,505 2017 2018 2019 units (2018: 15,220) SU
Slide 3: KPIs
KPIs H1 2019 H1 2018 Change Fleet installations (units) 22,505 15,220 +48% Fleet subscription base (units) 138,081 112,530 +23% Fleet customer base 14,851 12,035 +23% Fleet attrition (annualised %) 10.5 12.0 Fleet invoiced recurring revenues (£’m) 9.4 8.4 +12% Fleet revenue (£’m) 10.1 9.1 +11% Fleet
Slide 4: HY Segmental Analysis
HY Segmental Analysis Customer Fleet Telematics £’m Total Fleet Insurance Total Business Acquisition Services Recurring revenue - 9.4 9.4 - 9.4 Other sales 0.2 0.5 0.7 2.5 3.2 Total revenue 0.2 9.9 10.1 2.5 12.6 Sales & marketing (2.1) (0.4) (2.5) - (2.5) Equipment, installations, carriage (1.0) (0.
Slide 5: Financial Overview
Financial Overview H1 2019 H1 2018 Change Fleet revenue 10,091 9,132 11% Insurance revenue 2,461 3,781 (35%) Total revenue 12,552 12,913 (3%) Gross profit 7,956 8,456 (6%) Gross margin 63% 65% Operating profit 3,183 3,844 (17%) Operating margin 25% 30% Adjusted EBITDA 3,508 4,061 (14%) Earnings per
Slide 6: Fleet UK
Fleet UK 8 + 5% £7.7m +15% 99,055 £’m 100000 New installations increased by 49% to 13,360 6 80000 60000 4 40000 2 Outstanding performance in new customer 20000 and business acquisition Excellent progress in all sales channels 0 0 (comparison, telesales, distribution and 2018 2019 2018 2019 field) Si
Slide 7: Fleet France
Fleet France 2.0 25000 €’m +33% €1.7m +46% 22,440 New installations 20000 increased by 58% to 1.5 4,465 15000 1.0 10000 0.5 Excellent progress in subscription base, new 5000 installations and revenue. Strong contributions from direct, price 0.0 0 comparison and indirect channels H1 2018 H1 2019 2018
Slide 8: Fleet USA
Fleet USA $’m 16,104 +30% $1.2m +49% New installations 15000 increased by 28% to 1.0 4,365 10000 0.5 5000 Excellent progress in the subscription base and revenue Strong growth in revenues 0.0 0 Initial results from development of new H1 2018 H1 2019 2018 2019 distribution channels Revenue Subscripti
Slide 9: Fleet Poland/ Spain
Fleet Poland/ Spain Sales team for Spain and Poland recruited based in Newtown Website and application launch late February Recent website releases to provide support for Italy, Ireland and Hispanic customers in USA 9
Slide 10: UK Insurance Telematics
UK Insurance Telematics 4.0 - 29% £m - 35% 20000 17,069 3.0 £2.5m 2.0 10000 1.0 Continued shift from low-margin business resulted in expected reduction in volume We continue to focus on opportunities where 0 0.0 the quality of our service and data delivery H1 2018 H1 2019 H1 2018 H1 2019 are valued
Slide 11: “New-look” application
“New-look” application Web and mobile applications updated for release in late 2018 Preparation for new countries, languages and character sets A strong contributor to growth in new business in 2019 11
Slide 12: User-install options
User-install options User-install products are available in each of our markets: UK, Ireland, France, USA, Poland, Spain and Italy 36% of unit shipments in H1 2019 Next generation 4G tracking system received full approval level in USA 12
Slide 13: Growth and Outlook
Growth and Outlook 140,000 FLEET SUBSCRIPTION BASE June 2019 (6 months) (at year-end except 2019) 120,000 Significant increase in investment in customer acquisition 100,000 Outstanding growth in subscription base in H1 Excellent progress in the UK, US and France 80,000 On-track to meet expectations
Slide 14: Appendix: an Introduction to Quartix
Real-Time Vehicle Tracking Quartix Holdings plc Appendix: Interim Results Presentation an Introduction to Quartix14
Slide 15: Our Proposition
Our Proposition Increased productivity and reduced risk Fleet customers use our software to: Insurers use our data and alerts to: • Increase capacity • Improve fuel economy • Assess risk • Respond to accidents • Reduce overtime payments • Eliminate fraud and wastage • Verify agreed vehicle usage • R
Slide 16: Background information
Background information >500,000 systems installed since 2001 A UK LEADER 145,000 vehicles currently tracked in the UK: • 46,526 across 8 insurance companies • 99,055 across 9,431 UK fleet clients 5,299 fleet clients in France and USA 121 clients in Ireland, Poland, Spain 38,544 vehicles tracked in F
Slide 17: Company values
Company values Long-term relationships MISSION “We provide operational information to maximise productivity and reduce risk for organisations with mobile workforces. Our customers improve their business performance with information delivered quickly and reliably through our web and mobile-based appl
Slide 18: Strategy
Strategy 5 key elements • Market development: UK, USA, France and the rest of Europe • Cost per unit leadership: doing more with what we have, right across the business • Continuous enhancement to our core software and telematics products: focusing on the needs of SME customers in the service sector
Slide 19: Architecture
Architecture GPS GPRS/ 3G 19
Slide 20: Real-time tracking
Real-time tracking ROUTE MAPS LIVE TRACKING Available online with timing, speed and speed distribution information With google maps, streetview and satellite imaging. Also available in mobile apps for iOS TIMESHEETS and Android Available online or delivered by email in HTML or Excel format 20
Slide 21: Recurring Revenue
Recurring Revenue 18 INVOICED SUBSCRIPTION FIRST 6 £’m REVENUE BY YEAR 2018 MONTHS 16 2017 14 2016 12 The chart shows invoiced fleet subscription revenue segmented 2015 10 by year of customer acquisition 2019 2014 2018 8 2013 6 2012 2011 4 2010 2009 2 2002 to 2008 -1 2008 2009 2010 2011 2012 2013 20
Slide 22: Financial Results
Financial Results 3.8 2.5 Additional £1m 3.8 Investment in Revenue by Sector £’m 9.1 10.1 Fleet 8.3 Fleet NEW INSTALLATIONS Insurance 48% growth in new installations. Costs written off during the period SALES RESOURCE H1 2017 H1 2018 H1 2019 Significant investment in sales resource 4.0 4.1 MARKETING
Slide 23: Real-Time Vehicle Tracking Interim Results Presentation
Real-Time Vehicle Tracking Quartix Holdings plc 24 July 2019 Interim Results Presentation