Slide 1: QuickFee H1 FY25 Results Presentation
QUICKFEE H1 FY25 RESULTS PRESENTATION 21 February 2025 President, North America, Jennifer Warawa Chief Financial Officer, Simon Yeandle
Slide 2: QuickFee helps professional services firms accelerate and automate accounts receivable
QuickFee helps professional services firms accelerate and automate accounts receivable and grow their business. To learn more about QuickFee, our business and strategy, please see our 'About Us' video located on our Investor Hub here: www.investorhub.quickfee.com/activity-updates/quickfee-about-us w
Slide 3: H1 FY25 results overview: First ever EBTDA positive half year
H1 FY25 results overview: First ever EBTDA positive half year H1 FY25 PERFORMANCE (A$M) H1 FY25 H1 FY24 MOVEMENT Revenue up REVENUE – AUSTRALIA 6.1 4.1 UP 49% 26% on pcp, REVENUE – USA 5.6 5.2 UP 8% TOTAL REVENUE 11.7 9.3 UP 26% EBTDA GROSS PROFIT 7.6 5.7 UP 33% positive & improved OPERATING EXPENSE
Slide 4: Strong revenue growth and profitable operations
Strong revenue growth and profitable operations H1 FY25 Key Highlights + Total group revenue of A$11.7 million, up 26% on pcp + Australian revenue up 48% on pcp to A$6.1 million: + AU Finance (Pay Over Time) Total Transaction Value (TTV) up 25% to A$31.7 million + AU Finance revenue yield of 16.9% (
Slide 5: Transitioning to sustainable profitability
Transitioning to sustainable profitability + Positive EBTDA of A$0.3 million in first half of FY25, reflecting revenue growth on a reduced cost base + Operating expenses were down 13% on pcp to A$7.3 million, primarily driven by the cost savings implemented in CY 2024 + Earnings weighted to the seco
Slide 6: What We Do
WHAT WE DO
Slide 7: QuickFee at a glance
QuickFee at a glance WE HELP FIRMS OUR SOLUTIONS OUR COMPETITIVE TRUSTED FOR PAYMENTS AND FINANCING DIFFERENTIATORS SOLUTIONS SINCE 2009: Reduce A/R Pay Now | ACH/EFT + Card A/R typically runs high for Secure digital payments + Designed specifically firms, and we can help turn platform for accountin
Slide 8: The US Business: Profitable Segment Operations
THE US BUSINESS: PROFITABLE SEGMENT OPERATIONS
Slide 9: Profitable operations in the US
Profitable operations in the US US Financial Performance + Solid revenue growth, up 8%: 11% growth in Finance revenue to A$2.1 A$’M H1 FY25 H1 FY24 %+/- million and 6% growth in Pay Now revenue to A$3.5 million Pay Over Time (Finance) revenue 2.1 1.9 +11% + Gross profit up 18%: Margin expansion due
Slide 10: Executing on the strategy in H1 FY25
Executing on the strategy in H1 FY25 New Connect integrations with Thomson Reuters Practice CS and PracticeERP, making a total of five Connect integrations Total of 95 firms signed up for Connect at 31 December 2024 and strong pipeline of Connect clients to be onboarded in H2 FY25 Invoices delivered
Slide 11: Larger firm size leads to increased transaction volumes
Larger firm size leads to increased transaction volumes + Increasing traction in larger TOTAL FIRMS FINANCE CONNECT firm segment, despite NEW FIRM SIGN-UPS US$M NEW FIRM SIGN-UPS TO FIRMS SIGNED UP TO decrease in new firm sign-ups FINANCE US$M CONNECT + Larger firms are better resourced to modernise
Slide 12: The US Business: Substantial Growth Potential
THE US BUSINESS: SUBSTANTIAL GROWTH POTENTIAL
Slide 13: Changing dynamics in US accounting profession
Changing dynamics in US accounting profession 12% of industry growth from M&A in 2024, mainly amongst highest performing firms1 Industry consolidation1 driven by: + Technology spend increased to 5-6% of revenue in 2024, up from 3.5% in 2016. ~50% of firms investing in AI + Succession planning for re
Slide 14: Unlocking transformational growth in the US
Unlocking transformational growth in the US Drive Cost Effective Growth QuickFee Finance Through Automation Revenue yields on the Finance Leverage automation across all product are approximately 25x functional areas to ensure we are those of Pay Now. driving growth in the most efficient, cost-effect
Slide 15: Targeting secondary verticals
Targeting secondary verticals Focus segment: + Professional services with a business-to-business (B2B) focused customer base Primary verticals: + Accounting or solution providers to accounting (e.g.: accounting software or CPA State Society) Secondary verticals: + Legal, government contracting, exec
Slide 16: QuickFee Connect: driving transaction volumes and increasing recurring revenue
QuickFee Connect: driving transaction volumes and increasing recurring revenue Building our platform to enable easier, more Five Connect Practice scalable integrations with new strategic partners Management Integrations + We have approximately 100 Connect customers, with about 50% having completed t
Slide 17: Deepening relationships with strategic partners
Deepening relationships with strategic partners QuickFee is the only vendor that has representation on the BDO Alliance Partners Advisory Council, which provides insights and information to its Members. In addition, we have two speaking spots at the upcoming BDO Evolve conference in May. Jennifer Wa
Slide 18: Australia: From Strength to Strength
AUSTRALIA: FROM STRENGTH TO STRENGTH
Slide 19: Substantial revenue and profit growth in AU
Substantial revenue and profit growth in AU AU Financial Performance + Strong revenue growth: AU revenue up 49% to $6.1 million, driven by A$M H1 FY25 H1 FY24 %+/- a 50% increase in Finance revenue to $5.4 million Pay Over Time (Finance) revenue 5.4 3.6 +50% Pay Now (EFT + Card) revenue 0.5 0.4 +25%
Slide 20: From strength to strength in H1 FY25
From strength to strength in H1 FY25 + AU Finance TTV up 25% on pcp to A$ 31.7 million AU FINANCE 'LAST 12 MONTHS' ROLLING TTV (A$M) 61.8 (H1 FY24: A$ 25.4 million) 60.1 55.5 + AU Finance revenue up 50% on pcp to A$ 5.4 53.4 51.2 million (H1 FY24: A$ 3.6 million) 48.5 + Strong growth in traditional
Slide 21: H1 FY25 Financial Highlights
H1 FY25 FINANCIAL HIGHLIGHTS
Slide 22: Group profit and loss
Group profit and loss + Robust revenue growth: Total revenue up 26% to A$ 11.7 million, driven by A$M H1 FY25 H1 FY24 $+/- %+/- growth in the higher margin Finance products in AU and US Interest revenue** 7.1 5.1 +2.0 +39% + Increased gross profit: Gross profit up 33% to A$ 7.6 million, reflecting:
Slide 23: Continued reduction in operating expenses
Continued reduction in operating expenses + Operating expenses continued to decrease in H1 FY25 to A$7.3 OPERATING EXPENSES BY HALF-YEAR (A$M) million, a reduction of 13% on pcp + This primarily reflects a decrease in product development expenses from H1 FY24 + All expense line items have decreased
Slide 24: Group balance sheet
Group balance sheet 31 Dec 30 June A$M $+/- %+/- 2024 2024 Cash and cash equivalents 15.4 13.5 +1.9 +14% + Strong loan book growth: AU loan book up 20% to A$ 42.8 million and US loan book up 13% to US$ 13.4 million Loan receivables (current) 63.0 54.0 +9.0 +17% Trade and other current assets 1.2 1.5
Slide 25: Group cash flow
Group cash flow Reconciliation from loss for the period to operating cash flow A$M H1 FY25 H1 FY24 $+/- %+/- A$M H1 FY25 H1 FY24 $+/- %+/- Net cash outflow from operating activities (0.5) (2.9) +2.4 +83% Loss for the period (1.2) (3.4) +2.2 +65% Net cash inflow/(outflow) from loan book / firm Non-ca
Slide 26: Funding update
Funding update Credit facilities Loan book & Liquidity 31 Dec 30 June Northleaf credit facility A$M 2024 2024 $+/- + US$40 million (A$58.5 million) facility Loan book 64.4 55.2 +9.2 + Currently drawn to US$10 million + A$30.5 million (A$46.6 million in total) Available cash and cash equivalents 3.5
Slide 27: Continued revenue & EBTDA growth trajectory
Continued revenue & EBTDA growth trajectory REVENUE BY QUARTER (A$M) Q2 ➔ Q4 + Track record of solid revenue growth and uplift Q2 ➔ Q4 from H1 in H2 each FY: Consistent revenue growth 6.1 6.2 from Q1 to Q3, and Q2 to Q4, every fiscal year. H1 FY25 revenue up 26% vs pcp; interest revenue up 5.6 39% v
Slide 28: H2 FY25 Outlook
H2 FY25 OUTLOOK
Slide 29: H2 FY25 Outlook
H2 FY25 Outlook Focus on growing profitability • Focus on maximum profit growth: QuickFee Finance and QuickFee Connect • Continue to manage cost base carefully • Continued investment in Connect automation to capture revenue opportunity • Continued organic growth in Australia • Expected FY25 EBTDA in
Slide 30: Questions
QUESTIONS
Slide 31: Contact Details
CONTACT DETAILS Simon Yeandle, CFO p: +61 2 8090 7700 e: simon.yeandle@quickfee.com Katie Mackenzie, Investor Relations p: +61 455 502 197 e: kmackenzie@belleviewir.com.au
Slide 32: Disclaimer
Disclaimer The material contained in this document has been prepared by QuickFee does not undertake any obligation to publicly release the QuickFee Limited ACN 624 448 693 (‘company’) and contains result of any revisions to these forward-looking statements to general information about the company’s
Slide 33: Appendix
APPENDIX
Slide 34: Detailed profit and loss AU and US
Detailed profit and loss Detailed profit and loss AU US A$M H1 FY25 H1 FY24 $+/- %+/- A$M H1 FY25 H1 FY24 $+/- %+/- Interest revenue** 5.1 3.3 +1.8 +55% Interest revenue** 2.0 1.8 +0.2 +11% Revenue from contracts with customers 1.0 0.8 +0.2 +25% Revenue from contracts with customers 3.6 3.4 +0.2 +6%
Slide 35: Historical metrics - US
Historical metrics - US FY22 FY23 FY24 FY25 Total Transaction Volumes (TTV) Q1 Q2 H1 Q3 Q4 H2 FY22 Q1 Q2 H1 Q3 Q4 H2 FY23 Q1 Q2 H1 Q3 Q4 H2 FY24 Q1 Q2 H1 Professional Services US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M US$M Pay
Slide 36: US product profitability
US product profitability ACH Card Financing CONNECT Total US$000s except volume H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 N/A H1 FY25 H1 FY24 Volume US$ M 579 517 126 109 16.7 13.6 721.7 639.6 Financing revenue (interest) - - - - 1,313 1,131 - 1,313 1,131 Payments and other revenue 2 0
Slide 37: Historical metrics - AU
Historical metrics - AU FY22 FY23 FY24 FY25 Total Transaction Volumes (TTV) Q1 Q2 H1 Q3 Q4 H2 FY22 Q1 Q2 H1 Q3 Q4 H2 FY23 Q1 Q2 H1 Q3 Q4 H2 FY24 Q1 Q2 H1 Professional Services A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M A$M Pay Now EFT 4.4 4.2 8.6 3.7
Slide 38: AU product profitability
AU product profitability EFT & card Financing BNPL Total A$000s except volume H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 Volume A$ M 44 37 31.7 25.4 2.8 1.4 78.5 63.8 Financing revenue (interest) - - 4,944 3,262 191 67 5,135 3,329 Payments and other revenue 493 409 410 345 953 7
Slide 39: Glossary
Glossary ACH Automated Clearing House A type of electronic bank-to-bank payment in the US, equivalent to EFT in Australia Active customer Any customer who has transacted with QuickFee in the relevant period Active firm Any firm that has had a transaction with QuickFee in the relevant period APR Annu