Slide 1: Digital compliance platform and courseware
SKILLCAST GROUP PLC Digital compliance platform and courseware 2023 RESULTS INVESTOR PRESENTATION April 2024 Page 1 of 14
Slide 2: Presentation team
Presentation team Vivek Dodd Richard Steele CEO CFO • Co-founded Skillcast in 2001 • Joined Skillcast as CFO in May 2022 • Ex-investment banker (JP Morgan) • 30 years commercial finance • MS (MIT), BTech (IIT Delhi), former background CFA Charterholder • Previously CFO at Mind Gym Plc vdodd@skillcas
Slide 3: 2023 Financial Highlights
2023 Financial Highlights Subscription revenues growth +28% (2022: 28%) ARR growth accelerated +37% to £9.3m (31 Dec 2022: £6.8m, +16%) Overhead growth on prior year slowed to 18% (2022: 49%) Page 3 of 14
Slide 4: 2023 Operational Highlights
2023 Operational Highlights Now serving over 1,200+ clients (2022: 1,000+) High net retention of 105% (2022: 92%) and low churn of 7% (2022: 12%) Revenue growth supported by product innovation: ▪ Global Libraries ▪ Fast Track ▪ Compliance bites - microlearning format ▪ Product repositioning: Basic/S
Slide 5: Learning innovation in 2023
Learning innovation in 2023 Shorter interactive formats that improve employee engagement and knowledge retention. Compliance Bites Microlearning FastTrack E-learning Courses • Short 2-3 minute videos on 140+ compliance • Enable experienced and knowledgeable issues, such as insider trading, data proc
Slide 6: SaaS Subscription Plans
SaaS Subscription Plans Basic - NEW Standard - EXISTING Premium - NEW ▪ Suitable for small ▪ Suitable for companies of all ▪ Suitable for companies of companies and teams of sizes that want to build their all sizes that want to go up to 50 users compliance platform flexibly the next step with learni
Slide 7: AI in learning innovation
AI in learning innovation The market At Skillcast Significant opportunity and risk Trusted supplier of content Misinformation and disinformation from AI #1 risk in World We have been using third-party AI services for many years to: Economic Forum report* Create content, improve the productivity of o
Slide 8: Financials – Income statement summary
Financials – Income statement summary Income Statement All revenue growth came from subscription revenues Growth Growth (£’000) 2022 2023 rate rate Non-strategic professional services revenues impacted by clients YEARS ENDED 31.12 more hesitant to commit to bespoke projects Subscriptions 6,690 28% 8
Slide 9: On track for return to profitability
On track for return to profitability £10.0m 70% Overheads as % of ARR, £9.0m our leading indicator of 58% 60% £8.0m future subscription IPO Dec revenues, fell to 46% in £7.0m 21 52% 51% 50% H2 23, similar to pre-IPO 46% 44% levels. £6.0m 43% 40% Post-IPO increase in £5.0m overheads to support 30% fu
Slide 10: Cash flow statement
Cash flow statement Cash flow statement (£’000) 2022 2023 Free cash flow of £0.1m despite LBT of - YEARS ENDED 31.12 £0.6m PBT (556) (648) £0.3m of interest received from cash on Depreciation/amortisation 237 262 deposit £1.4m increase in payables includes £1.1m Share Option Reserve 207 132 from inc
Slide 11: Financials – Balance sheet summary
Financials – Balance sheet summary Statement of Financial Position 31.12.22 31.12.23 (£’000) Non-current assets related to office F&F, IT Non-current assets 882 795 equipment and the right-of-use assets of the 2 office leases Current assets All product and tech development is expensed Receivables 3,
Slide 12: Our strategy
Our strategy Organic remains the prime driver of growth ▪ Focus on resilient and growing staff compliance market ▪ Focus new business sales efforts on mid-size/regulated market (Standard and Premium) ▪ Minimise churn through continued excellent customer service ▪ Maximise upsells of "sticky" Regtech
Slide 13: Current Trading & Outlook
Current Trading & Outlook Continue to trade in line with expectations ▪ Started the year well, ARR at 31 March £10.0m, +36% YOY ▪ 7% price rise and auto-renewal terms well accepted by clients ▪ Professional services slower start, though this is volatile and has poor visibility Head of marketing join
Slide 14: Thank you
Thank you 80 Leadenhall St London EC3A 3DH skillcast.com Page 14 of 14