FINEOS Corporation Holdings Plc · ASX:FCL
FINEOS — H1 2024 Earnings Presentation
20 slides from FINEOS's earnings presentation, Aug 21, 2024
Slide 1: 1H24 results presentation
For personal use only 1H24 results presentation Michael Kelly (Founder & CEO) and Ian Lynagh (CFO) 21 August 2024 © FINEOS Corporation Ltd 1
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by FINEOS Corporation Holdings PLC (Company or FINEOS). By accessing or attending this presentation, you acknowledge that you have read and understood the following statements. NO OFFER OF SECURITIES Nothing in this presentation sh
Slide 3: 1H24 Financial Highlights
1H241 Financial Highlights Strong operating margins – delivering on strategy Subscription ARR Total For personal use only Revenue €68.7m Revenue €34.5m at 30 June’24 €64.4m Up 6.1% on pcp2 Subscription revenue now Up 5.2% from €65.3m at 31 Dec '23 Up 1.5% on pcp represents 53.5% of total revenue Gro
Slide 4: 1H24 Operational Highlights
1H24 Operational Highlights Strong North America Largest ANZ client Direct to employer For personal use only pipeline – multiple wins commenced cloud absence management across new name and migration to FINEOS clients to go live in existing client up-sells Platform 2H24 Voya Financial latest new name
Slide 5: 1H24 Financial Performance
1H24 Financial Performance 6 months to 6 months to % For personal use only All figures €m 30 June 2024 30 June 2023 Variance Revenue 64.4 63.5 1.5% Subscription 34.5 32.5 6.1% Services 29.6 30.6 (3.3%) Initial license fees 0.3 0.4 (8.2%) Cost of sales (17.0) (19.0) (10.3%) Gross profit 47.4 44.5 6.5
Slide 6: Subscription Revenue growth continues
Subscription Revenue growth continues Subscription revenue now represents 53.5% of total revenue Total Revenue by half year €m For personal use only Breakdown of 1H24 Revenues: 70m 64.4 61.8 61.5 63.5 61.1 ▪• North OverallAmerica RevenueCloud up 1.5% compared to Subscription 2H23 driven revenue up b
Slide 7: Geographic mix of revenues
Geographic mix of revenues Growth in North America share of revenue as it continues to remain the dominant regional source of revenue at 79.0% of total revenue in 1H24 For personal use only 6 months to 30 June 2023 6 months to 30 June 2024 (2H23) revenue by region (1H24) revenue by region Changes to
Slide 8: R&D investment spend
R&D investment spend – focus continues to support product development where opportunities arise For personal use only Benefit of ongoing investment reflected R&D investment €m in Subscription revenue growth ▪ North American SaaS • 37.9% ofrevenues Revenue invested continue in R&D to bein 1H24 25.0 2
Slide 9: Our people – a key asset of the business
Our people – a key asset of the business Employees by function 1% For personal use only 5% 34% Product Consulting ▪ Average Product Consulting utilisation for the period was 87% (2H23: 86%) 87% Cloud Ops Utilisation R&D ▪ Retention rate of over 90% 50% Sales & Marketing ▪ Move to hiring in lower cos
Slide 10: 1H24 – Financial Slides
For personal use only 1H24 – Financial Slides © FINEOS Corporation Ltd 10
Slide 11: Income Statement
Income Statement 6 months to 6 months to • Total Revenue €64.4m (2H23: €63.5m) 30 June 30 June Income Statement 2024 2023 % Change o Subscription revenue grew by 6.1% €m €m For personal use only Subscriptions 34.5 32.5 6.1% Services 29.6 30.6 (3.3%) o Services revenue down 3.3% on 2H23 with correspo
Slide 12: Operating Expenses
Operating Expenses 6 months to 6 months to Total Operating Expenses Half On Half €M 45m 30 June 30 June Operating expenses 2024 2023 % Change 40m €m €m For personal use only 35m Research & development (11.3) (12.3) (7.6%) 30m Sales & marketing (2.2) (3.9) (42.6%) 25m Product consulting (11.1) (9.8)
Slide 13: Balance sheet
Balance sheet • Cash at bank movement reflects higher revenue in the period Statement of Financial Position 30 June 24 31 Dec 23 % Change combined with the earlier receipt of customer payments and timing of €m €m supplier payments For personal use only Cash at bank 34.2 28.1 21.5% Trade receivables
Slide 14: Statement of Cash Flows
Statement of Cash Flows 6 months to 6 months to • Net cash generated from operating activities of €19.8m 30 June 30 June increased 27.6% compared to 2H23 reflecting working capital Statement of Cash Flows 2024 2023 % Change management For personal use only €m €m • Net cash used in investment activit
Slide 15: FY24 Outlook & Key Priorities
For personal use only FY24 Outlook & Key Priorities © FINEOS Corporation Ltd 15
Slide 16: 2H24 Key Priorities
2H24 Key Priorities For personal use only ✓ Delivering on the Guardian AdminSuite implementation and scaling through 2025 and beyond – important proof point for FINEOS to the market ✓ Complete the Direct-to-Employer FINEOS Absence product and get existing clients live to enable full go- to-market ap
Slide 17: Outlook & Guidance for FY24
Outlook & Guidance for FY24 • FY24 (1 Jan – 31 Dec) total revenue guidance reaffirmed; expected to be between €130-135m, albeit to For personal use only the lower end of the range and composition of revenue slightly changed to: • High single digit % growth for subscription revenue versus CY23 (down
Slide 18: For personal use only
For personal use only © FINEOS Corporation Ltd 18
Slide 19: Appendix
For personal use only Appendix © FINEOS Corporation Ltd 19
Slide 20: Detailed Statement of Financial Position
Detailed Statement of Financial Position Statement of Financial Position 30 June 24 31 Dec 23 % Change €m €m Cash at bank 34.2 28.1 21.5% Trade receivables 14.5 8.3 75.9% Unbilled receivables 4.6 1.0 370.7% R&D tax credit 0.2 0.6 (63.1%) For personal use only Prepayments and other receivables 7.8 6.
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