FINEOS Corporation Holdings Plc · ASX:FCL
FINEOS — FY2022 Earnings Presentation
25 slides from FINEOS's earnings presentation, Aug 24, 2022
Slide 1: FY22 results presentation
For personal use only FY22 results presentation Michael Kelly (Founder & CEO) and Tom Wall (CFO) 24 August 2022 © FINEOS Corporation Ltd 1
Slide 2: FY22 – A year of strong growth underpinned by delivery on strategy
For personal use only FY22 – A year of strong growth underpinned by delivery on strategy © FINEOS Corporation Ltd 2
Slide 3: Strong growth in FY22
Strong growth1 in FY22 For personal use only Total Subscription2 Services Revenue Revenue Revenue €127.2m €53.8m €71.4m Up 17.5% Up 34.2% Up 7.4% Achieved guidance Exceeded guidance Gross Profit EBITDA ARR €83.0m €6.7m €56.4m GP margin 65.3% EBITDA margin 5.3% at 30 June ‘22 GP up 15.3% EBITDA up 28
Slide 4: Growth in subscriptions revenue exceeded guidance
Growth in subscriptions1 revenue exceeded guidance For personal use only • Revenue up 17.5% to €127.2m achieving previous guidance of €125m - €130m • Total subscriptions1 revenue of €53.8m grew by 34.2% exceeding previous guidance of 30% Total Revenue €m (split by Services, Subscriptions and ILF rev
Slide 5: North America - increasing proportion of total revenues
North America - increasing proportion of total revenues For personal use only • Revenue from North America has grown significantly to 79.4% of total revenue (from 45.0% in FY19) % of total revenue from North America North America growth is 90% underpinned by cross-sell and 79.4% 80% up-sell to exi
Slide 6: North America – adoption of FINEOS Platform driving strong Subscription growth
North America – adoption of FINEOS Platform driving strong For personal use only Subscription growth North America - Cloud Subscription Revenue €m North American Subscription 40m 36.8 Revenue has rapidly grown by: 35m o >10 times since the FINEOS 30m IPO on the ASX in August 2019 25m 22.0 o 67.3%
Slide 7: R&D investment supports growth
R&D investment supports growth For personal use only FINEOS continues to dedicate significant resources and financial Investment being made in R&D to investment in research and development continue to drive revenue growth 45m R&D1 investment €m 43.2 41.3 40m 34.0% of revenue invested in R&D in FY2
Slide 8: Geographic mix of revenues
Geographic mix of revenues For personal use only North American revenue growth is 28.1% yoy, which is 79.4% of total revenue APAC revenue down 12.0% yoy - affected by delayed project starts due mainly to COVID environment impacts Europe region down 6.9% where we also experienced delayed projec
Slide 9: Our people – a key asset of the business
Our people – a key asset of the business For personal use only Employees by function 3% 5% 36% Product Consulting Average Product Consulting utilisation for the period was 89% (FY21 90%) 89% Cloud Ops Utilisation Retention rate remains high at 88% R&D Scaling of FINEOS India now underway 88% 4
Slide 10: Our People and Environment, Social & Governance (ESG)
Our People and Environment, Social & Governance (ESG) For personal use only Our People principal objective is to "Drive Organisational Health to create a great place to work and a competitive advantage“ Updated DEI Policy launching: • FINEOS is committed to a world-class Corporate Social Responsibil
Slide 11: FY22 – a year of strong growth
For personal use only FY22 – a year of strong growth © FINEOS Corporation Ltd 11
Slide 12: Strong growth in revenue and EBITDA
Strong growth in revenue and EBITDA For personal use only Income Statement • Revenue growth of €18.9m (17.5%) on FY21: FY22 FY21 % Change €m €m o Software revenue (including ILF) grew 33.2% on FY21; within that, total subscription Software - Subscriptions 53.8 40.1 34.2% revenue grew by 34.2% Softwa
Slide 13: Reduced cost of doing business
Reduced cost of doing business For personal use only • R&D costs are up €1.8m (9.8%) on FY21 linked mainly to staff and Operating expenses software costs FY22 FY21 % Change €m €m • Sales & Marketing costs increased €0.8m (12.9%) on FY21 mainly due to year-on-year salary increases and higher exchange
Slide 14: Balance sheet supports growth initiatives
Balance sheet supports growth initiatives For personal use only Statement of Financial Position • Cash at bank movement reflects capital raise during FY22 (€45.4m) FY22 FY21 % Change • Trade receivables rose 15.2% on FY21 due to the increase in FY22 €m €m Cash at bank 44.3 14.0 216.4% subscription r
Slide 15: Operating cashflows up 224.1%
Operating cashflows up 224.1% For personal use only Statement of Cash Flows FY22 FY21 % Change • Net cash inflow from operating activities of €9.4m in FY22 €m €m primarily due to the increase in revenues and the timing of Net cash flows from operating activities 9.4 2.9 224.1% cash receipts from cus
Slide 16: Well placed to continue growth trajectory
For personal use only Well placed to continue growth trajectory © FINEOS Corporation Ltd 16
Slide 17: … underpinned by delivery on strategy
… underpinned by delivery on strategy For personal use only Expanding within existing customers, winning new customers and entering new markets Increased use of FINEOS Platform within existing customer base FINEOS the LA&H industry platform Post year-end, FINEOS and New York Life Group Benefit Sol
Slide 18: Key priorities for FY23
Key priorities for FY23 For personal use only Operational focus revolves around four strategic pillars Grow and Win Expand sales and FINEOS the upsell with customers new customers enter new markets LA&H industry platform FINEOS has a multinational According to Swiss Re; the global FINEOS inten
Slide 19: Ground-breaking joint study with New York Life Group Benefit Solutions
Ground-breaking joint study proving that the purpose-built FINEOS platform successfully For personal use only met the business challenges of one of the largest North American group insurer Case Study 9 $4bn 6 million managed replaced customers on one platform legacy systems © FINEOS Corporation Ltd
Slide 20: Positive outlook for continued revenue growth in FY23
Positive outlook1 for continued revenue growth in FY23; For personal use only Expect positive free cashflow in FY24 • FY23 revenue expected to be between €135m and €140m • Growth expectations supported by a robust pipeline of significant cross-sell and up-sell opportunities with existing customers,
Slide 21: Thank you. Q&A
For personal use only Thank you. Q&A © FINEOS Corporation Ltd 21
Slide 22: Appendices
For personal use only Appendices © FINEOS Corporation Ltd 22
Slide 23: Detailed Statement of Financial Position
Detailed Statement of Financial Position For personal use only Statement of Financial Position FY22 FY21 % Change €m €m Cash at bank 44.3 14.0 216.4% Trade receivables 25.7 22.3 15.2% Unbilled receivables 0.6 1.2 (50.0%) R&D tax credit 1.0 1.5 (33.3%) Prepayments and other receivables 4.2 3.2 31.3%
Slide 24: 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 25: For personal use only
For personal use only © FINEOS Corporation Ltd 25
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