Gentrack Group Ltd · NZX:GTK
Gentrack — FY2024 Earnings Presentation
27 slides from Gentrack's earnings presentation, Nov 26, 2024
Slide 1: Gentrack Group FY24
Gentrack Group FY24 26 November 2024 [NZX/ASX: GTK] © Gentrack 2024. All rights reserved. This document is the intellectual property of Gentrack.
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements. Forward-looking statements often include words such as ‘anticipate’, ‘expect’, ‘plan’ or similar words in connection with discussions of future operating or financial performance. The forward-looking statements are based on managem
Slide 3: Gentrack FY24 Business Review
Gentrack FY24 Business Review Gary Miles Chief Executive Officer © Gentrack 2024. All rights reserved. This document is the intellectual property of Gentrack. 3
Slide 4: Financial Headlines
FY 23 FY 24 Financial Headlines REVENUE $169.9M $213.2M Revenue growth of 25.5% 25.5% Utilities revenue up 22.6%: • Underlying revenue, excluding $27.6m in FY23 from UTILITIES insolvent UK customers, up 51%. $147.9M $181.3M REVENUE 22.6% • Recurring revenue 33% higher from prior period wins & upsell
Slide 5: LTI Costs included within EBITDA
LTI Costs included within EBITDA Our LTI share schemes have underpinned our strong growth, • LTI payroll tax: booked $7.1m v $0.3m in FY23. c.$4m through staff retention, attracting talent and incentivising more than expected in our guidance: performance. o Follows substantial uplift in our share pr
Slide 6: Looking Ahead
Looking Ahead We remain confident of our mid-term guidance of growing revenue more than15% CAGR and an EBITDA margin of 15-20% after expensing all development costs. In FY25, we expect both Utilities and Veovo to show continued revenue growth and EBITDA improvement, the extent of which will depend o
Slide 7: Key metrics across the last 4 years
Key metrics across the last 4 years 4Y CAGR 26% © Gentrack 2024. All rights reserved. This document is the intellectual property of Gentrack. 7
Slide 8: Our 4+1 Engines of Growth
Our 4+1 Engines of Growth +248% MOMENTUM +85% +25% LEADERSHIP +30% 0% +43% Excluding insolvencies 8
Slide 9: Our 4+1 Engines of Growth
Our 4+1 Engines of Growth +248% MOMENTUM +85% +25% ▪ More with our customer base LEADERSHIP +30% 0% +43% Excluding insolvencies 9
Slide 10: Our 4+1 Engines of Growth
Our 4+1 Engines of Growth +248% MOMENTUM +85% +25% ▪ More with our customer base ▪ Extending our base with new logos and new countries LEADERSHIP +30% 0% +43% Excluding insolvencies 10
Slide 11: Our 4+1 Engines of Growth
Our 4+1 Engines of Growth AUSTRALIA UK The most advanced energy market The most competitive energy market MOMENTUM ▪ More with our customer base ▪ Extending our base with new logos and new countries LEADERSHIP ▪ #1 in Customer Experience (CX) Worldwide Salesforce #1 CRM Revenue Market Share Source:
Slide 12: Our 4+1 Engines of Growth
Our 4+1 Engines of Growth NEW ZEALAND ASIA Business Transformation CIO Awards Asian Technology Excellence Awards 2024 MOMENTUM ▪ More with our customer base ▪ Extending our base with new logos and new countries Gentrack awarded 3 prestigious awards ▪ Best Enterprise Software for Utilities ▪ Best Ent
Slide 13: Extensive g2 Capability Model
Extensive g2 Capability Model 13
Slide 14: Leading Technology for Energy and Water
Leading Technology for Energy and Water ▪ Best technology stack (g2) to support the energy transition For B2C & B2B, Energy & Water ▪ Leading in Customer Experience (CX) within our markets ▪ Leveraging best-in-class technology partners ▪ g2 full transformation project at Genesis is going well ▪ We
Slide 15: CEO Closing Remarks
CEO Closing Remarks We continue to grow across our core markets for utilities in Australia, New Zealand and the UK where the demand remains strong. These markets are modernising in advance of other countries which will follow. We’ve had four new Utilities customer wins in the year including in two n
Slide 16: Gentrack FY24 Results
Gentrack FY24 Results John Priggen Chief Financial Officer © Gentrack 2024. All rights reserved. This document is the intellectual property of Gentrack.
Slide 17: Group Profit and Loss
Group Profit and Loss NZ$m FY 23 FY 24 • Group revenue up 25.5% strong growth for Utilities Veovo Total Utilities Veovo Total Utilities & Veovo. Recurring revenue 90.9 14.1 105.0 121.3 16.3 137.5 Non Recurring Revenue 29.5 7.8 37.3 60.0 15.7 75.7 Insolvent Customers 27.6 - 27.6 - - - • EBITDA at $23
Slide 18: Utilities Revenue Analysis
Utilities Revenue Analysis NZ$m Utilities Revenue FY 24 v FY 23 FY 24 22.6% YOY growth (50.6% underlying growth) FY 23 Total:$181.3m Total:$147.9m Underlying:$181.3m • Recurring revenue up 33% from prior period Underlying:$120.3m wins & upsells. • Non-recurring revenue up 104%. Key FY24 programmes i
Slide 19: Utilities Revenue Analysis
Utilities Revenue Analysis NZ$m FY24 v FY23 Revenue by region 0% • Strong underlying growth in the UK offset loss Underlying revenue +43% of FY23 Bulb revenue. Underlying growth • Consistent strong growth in Australia from 30% upgrades and new wins. • NZ growth includes the g2.0 upgrade at 85% Genes
Slide 20: Revenue Analysis
Revenue Analysis NZ$m Veovo Revenue FY24 v FY23 FY 24 Revenue by region 45.5% YOY growth (25% higher excl. $31.9m EMEA hardware sales) FY 23 • NRR from services and hardware up AMERICAS $21.9m 100%+ driven by new customer wins in the UK and the Middle East and APAC upgrades across Europe and APAC. •
Slide 21: Utilities Expenditure Analysis
Utilities Expenditure Analysis NZ$m Utilities Costs FY24 v FY23 • $15.6m increase in direct costs, in people & hosting, to support higher revenues. • LTI accounting charge is $4.6m higher v FY23, partly from business growth and partly how schemes are structured which front loads more of the 3-year c
Slide 22: Cashflow
Cashflow NZ$m • Strong underlying cash generation of $30.4m FY 23 FY 24 YoY % funding: Cash Balance as at Beginning of Period 27.4 49.2 80% EBITDA 23.2 23.6 2% • $12.9m Amber investment Change in working capital -0.9 7.2 >100% • $17.5m increase of year end cash to Tax -1.7 -6.6 >100% $66.7m. Capex -
Slide 23: Q&A
Q&A © Gentrack 2024. All rights reserved. This document is the intellectual property of Gentrack.
Slide 24: FY24 on a Constant Currency Basis
FY24 on a Constant Currency Basis This compares FY24 results against what those results would have been if they had been booked at FY23 exchange rates. FY24 NZ$m FY24 Constant Difference % Currency Revenue 213.2 208.5 -4.8 -2.2% Operating Costs 189.7 185.5 -4.2 -2.2% EBITDA 23.6 23.0 -0.6 -2.5% Stat
Slide 25: Reconciliation to Financial Statements
Reconciliation to Financial Statements NZ$m • This shows how CMRR; TRR; NRR and revenue from insolvent customers shown in this presentation reconciles to revenue disclosure in the Financial Statements. • For FY23, the $27.6m revenue from insolvent customers is disclosed in the Financial Statements a
Slide 26: LTI share schemes Q&A
LTI share schemes Q&A What has been the impact of Gentrack's Scheme? Management and senior staff are eligible for LTI share schemes. Staff turnover has fallen and is lower than tech benchmarks. We believe that our LTI share schemes are a key component underpinning the very strong growth we have seen
Slide 27: Thank you
Thank you © Gentrack 2024. All rights reserved. This document is the intellectual property of Gentrack.