Integrated Research Limited · ASX:IRI
Integrated Research — Shareholder Meeting (November 2021)
28 slides from Integrated Research's shareholder meeting presentation, Nov 24, 2021
Slide 1: Integrated Research Limited Annual General Meeting
Integrated Research Limited Annual General Meeting 24 November 2021 Peter Lloyd Chairman
Slide 2: Online Attendees – Text Question Process
ONLINE ATTENDEES – TEXT QUESTION PROCESS 334-906-770 When the question function is available, the messaging tab will appear at the top of the screen To submit a question, type your question in the “Ask a question” box and press the send arrow Your question will be sent immediately for review Receive
Slide 3: Online Attendees – Audio Question Process
ONLINE ATTENDEES – AUDIO QUESTION PROCESS 334-906-770 When the audio questions line is available, a link will appear on the home tab titled Asking Audio Questions If you would like to ask an audio question, pause the meeting broadcast and click on the link You will be prompted to enter your name and
Slide 4: Online Attendees – Voting
ONLINE ATTENDEES – VOTING 334-906-770 When open, the vote will be accessible by selecting the voting tab at the top of the screen To vote simply select the direction in which you would like to cast your vote. The selected option will change colour For Against Abstain There is no submit or send butto
Slide 5: Peter Lloyd, Chairman
watt Peter Lloyd Chairman
Slide 6: Peter Adams, Chief Financial Officer
Peter Adams CHIEF FINANCIAL OFFICER
Slide 7: FY21 Annual results review (A$M)
FY21 Annual results review (A$M) New product launches and sales execution drive 2H recovery following weak 1H 110.9 96.4 78.5 CASH RECEIPTS 78.8 29% FROM 18% REVENUE CUSTOMERS Jun-20 Jun-21 Jun-20 Jun-21 24.1 24.2 21.1 7.9 67% OPERATING 13% NPAT CASH FLOW Jun-20 Jun-21 Jun-20 Jun-21 24.1 5.5 NPAT IN
Slide 8: 2H FY21 Results (A$M)
2H FY21 Results (A$M) Improved 2H performance - revenue and profit recovery 13.2 57.7 53.2 11.0 11.3 44.4 9.8 34.1 30% OPERATING 14% REVENUE CASH FLOW 1H FY20 2H FY20 1H FY21 2H FY21 1H FY20 2H FY20 1H FY21 2H FY21 11.8 12.3 38.9% 38.5% 39.4% NPAT IN 9.0 210% 26.4 PT CONSTANT CURRENCY 2.9 EBITDA MAR
Slide 9: Business model evolution
Business model evolution Summary: – No changes to accounting policies – Compliance with International Financial Reporting Standards (IFRS) – New cloud solutions recently released – Cloud revenues expect to grow faster than on-prem revenue – Introduce new SaaS metrics as business becomes more materia
Slide 10: Geographic and Product revenue analysis
Geographic and Product revenue analysis Group proforma subscription revenue was US$52.1 million (down 3% on prior year) Geographic Americas - US$M Asia Pacific - A$M Europe - £M 60 20 10 18 50 16 8 40 14 12 6 30 10 8 4 20 6 10 4 2 2 0 0 0 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2
Slide 11: TCV and Cash Operating Expenses (A$M)
TCV and Cash Operating Expenses (A$M) Key measures of underlying performance going forward Total Contract Value (TCV) - a key driver of underlying momentum 99.9 - is not an accounting measure 75.1 - represents “in year” contract signings for new and renewal business (excluding residual values) 53.2
Slide 12: Investment in innovation
Investment in innovation …the key to future growth Innovation 94% Cloud Platform 36% Key takeaways: • IR remains firm to innovation agenda • FY21 development spend was $12 million On-prem • High investment initiative to cloud (~63%) R&D 37% Investment • Four new products released during the year Clo
Slide 13: Net cash flow analysis
Net cash flow analysis Positive operating cash flow funds growth investments Strong balance Free cashflow sheet – net (ex 1 30 growth investments) cash $4.7M 21.1 12.0 $18.5 million 20 100% cash 6.5 collection A$M conversion rate 10 1.9 4.7 5.5 Development 0 spend includes Opening net cash Cash from
Slide 14: John Ruthven, Chief Executive Officer
John Ruthven CHIEF EXECUTIVE OFFICER
Slide 15: Self-funding a new SaaS product suite to complement established on-prem business
Self-funding a new SaaS product suite to complement established on-prem business What is driving the change in business model; 1. Enhance our leverage to structural market changes – hybrid working and cashless payments 2. Expand our market opportunity 3. Enhance competitive strengths and increase cu
Slide 16: Transition underway
Transition underway Executing clear plan to transition to higher quality growing SaaS based subscription revenues FY21 FY22 FY23+ innovation execution scale new new market products business share New SaaS Extend and Product Expand into new segments products Enhance Growing share of Higher level Reve
Slide 17: Increasing leverage to structural market changes - hybrid working
Increasing leverage to structural market changes - hybrid working What we On-premise Hybrid Cloud Predictive Digital do monitoring & monitoring monitoring analytics employee trouble-shooting & trouble- & trouble- & AI experience shooting shooting Trends driving a) Flexible work is here to stay the b
Slide 18: Enabling enterprises to deliver hybrid working
Enabling enterprises to deliver hybrid working Phased Chaos Order Innovation take-up do whatever it takes – use management tools – new and emerging existing tools, work-arounds start with evaluating use cases, vendor tools convergence ‘Although these [vendor] tools are helpful, they offer less bread
Slide 19: Collaborate market and opportunity
Collaborate market and opportunity IR well placed to leverage move to ’hybrid work’ opportunity 1. Long-tail with existing on-premise customers as well as new prospects Total Conference Market market users growth 2. MS Teams, Zoom and 550M 185M 7% Webex up-sell and UC users users CAGR cross-sell to
Slide 20: Increasing leverage to structural market changes – cashless payments
Increasing leverage to structural market changes – cashless payments What we Infrastructure Payments Card Real-Time Predictive do monitoring monitoring payments & High- analytics & trouble- analytics Value and AI shooting payments Trends driving a) Massive shift in consumer buying behaviour the b) M
Slide 21: Transact market and opportunity
Transact market and opportunity IR is well placed to benefit from cards growth and new payment types opportunity 1. Grow with our customers – payment volumes are increasing cards global market non-cash 586B growth 2. Expand our base – txn’s 18.6% new payment types real-time (RTP & High-Value) 785B C
Slide 22: Product strategy
Product strategy New product launches expand addressable market and leverage to long term growth trends predictive analytics smart intelligence marketplace A$1.2B TAM wide open API’s new vendors cloud edge deep legacy 22
Slide 23: Quality customer base
Quality customer base Long-term, high value relationships based on mission critical solutions Customer Tenure 15+ years Contract Length 3+ years Service Providers New Logos 23
Slide 24: FY22 customer wins validate enhanced value proposition
FY22 customer wins validate enhanced value proposition Supporting large enterprise on their journey – on-prem, hybrid & cloud new customer through new to existing new customer expansion service provider >$1.0M <$500K >$500K <$500K hybrid hybrid on-premise on-premise Collaborate Collaborate Collabora
Slide 25: FY22 key performance indicators update
FY22 key performance indicators update Customer growth KPI New customer KPI Product KPI Business Model KPI & retention acquisition innovation Transition TCV from new Percent of TCV from Growth in cloud products & capacity 20% New customers 75 products released in 15% deferred revenue 100% to existin
Slide 26: Trading update & summary
Trading update & summary 1. FY22 YTD TCV up on pcp - new products, 'hybrid' traction 2. Reported revenue and NPAT broadly in line with pcp – impact of change in revenue mix as SaaS contracts are recognised over time 3. Positive FCF, solid balance sheet supports on-going product roadmap 4. Strategy t
Slide 27: Disclaimer
Disclaimer SUMMARY INFORMATION FORWARD LOOKING STATEMENTS NOT AN OFFER This document and the associated transcript (together “the presentation”) has The presentation contains certain "forward-looking statements”. The words The presentation is for information purposes only and is not a prospectus, be
Slide 28: Integrated Research Limited Annual General Meeting
Integrated Research Limited Annual General Meeting 24 November 2021
Integrated Research — Shareholder Meeting (November 2021) on 6ix