Aptitude Software Group Plc · LSE:APTD
Aptitude Software — FY2022 Earnings Presentation
21 slides from Aptitude Software's earnings presentation, Mar 21, 2023
Slide 1: Final Results for the year ended 31 December 2022
21 March 2023 Final Results for the year ended 31 December 2022
Slide 2: Aptitude presentation team
Aptitude presentation team Jeremy Suddards, Chief Executive Officer Jeremy was appointed to the Board as Chief Executive Officer Designate on 1 September 2019, before formally taking on the role of Chief Executive Officer on 17 January 2020. Jeremy joined Aptitude in January 2018 as Chief Client Off
Slide 3: Aptitude at a glance
Aptitude at a glance Where others see complexity we see possibility We are leaders in Finance Digitalization and Subscription Management solutions solving complex problems for large enterprises £3bn 120 unique clients in over 25 countries • Highly configurable products to meet the needs of the most
Slide 4: Aptitude key offerings
Aptitude key offerings Solving large complex problems for large complex organisations Large, complex organizations Video & Advanced Financial Services Telecoms Technology Print Media Industries FINANCE DIGITALIZATION SUBSCRIPTION MANAGEMENT COMPLIANCE AUTOMATION RETAIN CONVERT DOMAIN DRIVEN REPORT C
Slide 5: Excellent progress with Fynapse
Excellent progress with Fynapse Investment Charter client contracted and partnership with Microsoft Development Resourcing successful £4.9m R&D investment expensed (2021: £1.5m) Investment moderates from end of 2023 Continued success for Pipeline Product Aptitude Accounting Hub Pipeline strengthenin
Slide 6: Strong progress across wider portfolio
Strong progress across wider portfolio New business success achieved in a transitional year Continued success for Aptitude Landmark win for eSuite and MPP Global fully Accounting Hub within Finance continued demand for AREV within integrated Digitalization Subscription Management Multiple standalone
Slide 7: Aptitude growth drivers
Aptitude growth drivers A structured growth journey with key foundations in place 7
Slide 8: Financial highlights
Financial highlights Organic revenue growth of 14%, profit in line given previously communicated investment plans £15.9m £74.4m £7.5m Net funds Total revenue Adjusted Operating (2021: £59.3m) Profit (2021: £9.9m) 1 10% 5.4p Adjusted Operating Total dividend Margin (2021: 5.4p) (2021: 17%) 1 Continu
Slide 9: Financial highlights: ARR and revenue
Financial highlights Continued growth in annual recurring revenue, a strategic focus for the Group 60 50 40 ARR3 (£m) 30 +9% 68% 20 Organic growth in ARR Proportion of 10 (constant currency) recurring revenue (2021: 9%) (2021: 68%) 0 2018 2019 2020 2021 2022 80 70 60 32% 50 32% Revenue (£m) 38% 42%
Slide 10: Transitioning revenue mix
Transitioning revenue mix Growing proportion of higher margin revenue streams Transitioning revenue Higher gross • Increasing recurring revenue %age margin revenues • Improving quality of services Moderation of investment • Fynapse investment peaks in FY2023 • Investment moderation in wider portfol
Slide 11: Finance Digitalization
Finance Digitalization Enabling the CFO office to be better, faster and cheaper The opportunity Key differentiators Delivering great customer outcomes 1. Unique best of breed, modular solution $1.5m saved from the ability to retire legacy FINANCE DIGITALIZATION systems 2. Rapid speed to value Qualit
Slide 12: Subscription Management
Subscription Management Enabling enterprise clients to launch, experiment and grow recurring & transactional revenue streams The opportunity Key differentiators Delivering great customer outcomes 1. Extensive global payment reach “Cut operating expenditure (OPEX) by more SUBSCRIPTION MANAGEMENT than
Slide 13: Go-to-market strategy enables us to execute on a £3bn opportunity
Go-to-market strategy enables us to execute on a £3bn opportunity Partner model at heart of our growth strategy Resell Tier 1 Accounts • Strategic Global Partnership signed December • Key component within KPMG’s Powered Enterprise 2022 Finance solution • Deep integration of Fynapse with Microsoft •
Slide 14: Operational best practice to support our strategy
Operational best practice to support our strategy Focus on increasing efficiency in the business to drive profitability Furthering our ESG strategy People Process Technology • New D&I Policy published • ESG reporting progression • “Thrive Tribe” groups launched Retaining and training our best Measur
Slide 15: 2023 strategic objectives & outlook
2023 strategic objectives & outlook Our investments provide a strong platform for future expansion Areas of strategic focus for 2023 Two strategic • Continued focus on Finance Digitalization and Subscription Management growth drivers • Fynapse roll-out key focus within Finance Digitalization • Execu
Slide 16: Appendix
7S tude~ Apti Appendix 16
Slide 17: Income statement
Income statement Moderation in operating profit in line with previously communicated investment plans 2022 2021 (£’000) (£’000) Recurring Revenue 50,534 40,086 Implementation Revenue 23,860 19,244 Total Revenue 74,394 59,330 Operating Costs (66,887) (49,430) Adjusted Operating Profit 7,507 9,900 Non
Slide 18: Cash flow
Cash flow Cash collection affected by a small number of on-going commercial discussions on annual renewals 2022 2021 (£’000) (£’000) Cash generated from operations 5,272 11,890 Interest and tax (paid)/received (2,095) 24 Cash flows generated from operating activities 3,177 11,914 Purchase of propert
Slide 19: Balance sheet
Balance sheet Strong balance sheet with cash of £29.2 million and net funds of £15.9 million 31 Dec 2022 (£’000) 31 Dec 2021 (£’000) Goodwill and intangible assets 67,126 70,508 Property, plant and equipment including right-of-use assets 5,103 4,261 Trade and other assets 16,718 13,412 Cash and cash
Slide 20: Business model
Business model High quality business model with a strong opportunity within the base NEW BUSINESS OPPORTUNITY RETAIN CONVERT FINANCE DIGITALIZATION SUBSCRIPTION MANAGEMENT REPORT CONSUME REVENUE BASE OPPORTUNITY ADDITIONAL ADDITIONAL SERVICE ADDITIONAL INFLATION MODULE FEES FEES USAGE FEES MECHANISM
Slide 21: Board
Board Experienced management team & Board Jeremy Suddards, Chief Executive Officer Jeremy was appointed to the Aptitude Board as Chief Executive Officer Designate on 1 September 2019, before formally taking on the role of Chief Executive Officer on 17 January 2020. Jeremy joined Aptitude in January
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