Essensys Plc · LSE:ESYS
Essensys — FY2021 Earnings Presentation
31 slides from Essensys's earnings presentation, 2021
Slide 1: Annual Results Presentation
FINANCIAL YEAR 2021 Annual Results Presentation MARK FURNESS Chief Executive Officer & Founder ALAN PEPPER Chief Financial Officer & Chief Operating Officer
Slide 2: Our Business
Our Business Our mission critical software helps solve the complex Increase operational challenges faced by office landlords and Drive revenue & multi-site flexible workspace providers. occupancy stickiness THE PROBLEM WE SOLVE Reduce Deliver amazing Occupiers are demanding greater flexibility and e
Slide 3: Highlights FY21
Highlights FY21 Strong growth in Long-term structural key US market drivers accelerating -2% 87% Revenue Recurring Flex Services £33.2m fundraise to Platform launch accelerate growth +2% 6.0% Geo, product and Pandemic recovery GTM expansion Recurring Revenue EBIDTA* Margin building momentum (constan
Slide 4: Operational Highlights
Operational Highlights GROW EXPAND NETWORK BENEFITS LAND REACH AND CAPABILITY STRATEGIC CUSTOMERS Talent acquisition Flex Services Platform Go-to-market launched investment ramp Industry reach and Accelerated domain expertise Pipeline strength product roadmap and depth Brand equity and Major custome
Slide 5: Pandemic Impact
Pandemic Impact INCREASED FLEX NOW EXTENDED STRUCTURAL PIPELINE STRATEGIC SALES GROWTH ACTIVITY PRIORITY CYCLES CATALYST REALTIME OCCUPANCY HYBRID WORKING *Measured via Connect PATTERNS 100 EMERGING 90 80 70 60 50 40 30 20 10 0 Lockdown 1 Lockdown 2 Lockdown 3 Delta variant US Pre-Covid Mar 20 Apr 2
Slide 6: Financial Review
Financial Review
Slide 7: Financial Highlights FY21
Financial Highlights FY21 £22.0m £1.3m 87% 99% 65% EBITDA* Recurring Net Retention Gross Margin Total Revenue –2% -69% +1ppts -1ppts +1ppts • Recurring Revenue -2% • US Recurring Revenue +20%1 • Non-Recurring -9% • US Non-Recurring +15%1 69% 164 737 143 ARR Customers Sites Personnel Gross Margin <->
Slide 8: Our Products
Our Products 101 100 +16% -12% YoY Customers Customers 474 416 +13% -4% Sites Sites 91% 9% REVENUE REVENUE 98% 92% Net Net Retention Retention -3% REVENUE +5% REVENUE RECURRING -2.5% | NRR -41% 67% 89% <-> ARR Gross <-> ARR Gross Margin Margin 8
Slide 9: Income Statement
Income Statement F Y/E JULY 2020 2021 (£’000) AUDITED AUDITED REVENUE Connect recurring 17,470 17,104 Total revenue -2% 2,830 Recurring revenue -2% Connect non-recurring 3.082 2,048 Constant Currency RR +2% Operate 1,947 21,982 US RR +11% US ARR +17% YoY TOTAL REVENUE 22,499 of which: UK/ROW 12,193
Slide 10: Cashflow Statement
Cashflow Statement F Y/E JULY 2020 2021 (£’000) AUDITED AUDITED Working capital in EBITDA 4,215 1,322 year slightly positive Changes in Working Capital 197 486 CJRS/PPP grants in income (386) - Cash from Operations 4,026 1,808 Tax & forex adjs 45 86 Investment in software NET CASH FLOW FROM OPERATIN
Slide 11: Balance Sheet
Balance Sheet F Y/E JULY 31 JULY 2020 31 JULY 2021 (£’000) AUDITED AUDITED FIXED ASSETS: Goodwill 1,263 1,263 Intangible assets 3,750 4,935 Right of use asset 2,055 2,160 Tangible fixed assets 1,695 1,471 8,763 9,829 CURRENT ASSETS: Inventory 323 184 Trade & other receivables 5,186 5,279 Cash and ca
Slide 12: Key Performance Indicators
Key Performance Indicators CUSTOMER CONCENTRATION SITES 38 Top 3 11 Top 10 260 358 419 474 507 3.9 : 1 15 Top 5 35 Rest LTV CAC CROSS-SELL SITES CUSTOMERS 153 37 OPERATE 263 CONNECT 321 64 63 BOTH 2018 2019 2020 2021 Total contracted 12
Slide 13: Market Update
Market Update
Slide 14: Market Update
Market Update PROPORTION OF THE WORKFORCE DESIRING TO WORK REMOTELY IN EACH PLACE POST-PANDEMIC (AT LEAST ONCE A WEEK) IN THIRD-PARTY PLACES 36% vs. 40% in October 2020 HYBRID WORK AT HOME 63% 67% vs. 67% in October vs. 72% in 2020 October 2020 IN THE OFFICE 79% vs. 74% in October 2020 Source: Globa
Slide 15: Market Update: Future of the Agile Industry
Market Update FUTURE OF THE AGILE INDUSTRY The agile nature of the flexible workspace industry, combined with its service led approach & limited CAPEX investment, makes it an ideal platform for businesses. The ability to respond to changing needs & test new solutions means that we expect to see a re
Slide 16: A Flexible Future
Market Update A Flexible Future 16
Slide 17: Strategy Execution
Strategy Execution
Slide 18: Land – Expand – Grow
Land – Expand – Grow Aligned with industry evolution REVENUE EXPANSION IS ALIGNED WITH LANDLORD FLEX EXPANSION Strategic high potential value customers remain key focus of Go-To-Market strategy and product development roadmap $ $$ $$$ SPACE BUILDING PLATFORM Long term lease Long term customer DISTRI
Slide 19: Product Update
Product Update 2010 2021 FLEX SERVICES PLATFORM Integrated flex Focussed on in- operating system building experience Per square foot pricing Modular Bridges flex to architecture traditional space 2017 DIGITAL SPACE SPACE OCCUPIER INFRASTRUCTURE MANAGEMENT OPERATIONS EXPERIENCE Secure private network
Slide 20: North America Update
North America Update STRONG FY21 PERFORMANCE HIGH QUALITY LEADERSHIP LARGEST SINGLE NEW CUSTOMER PIPELINE MARKET OVER 10BN SQ FT EXISTING CUSTOMER GROWTH LARGEST CUSTOMER RENEWED ON NEW 3 YEAR GLOBAL FRAMEWORK AGREEMENT 20
Slide 21: APAC Update
APAC Update REGIONAL CEO, ERIC SCHAFFER FIRST APAC CONTRACT WIN OPERATIONAL CAPABILITY BUILDING TOP OF FUNNEL ACTIVITY STRONG PIPELINE DEVELOPING WELL 21
Slide 22: UK & Europe Update
UK & Europe Update LARGEST UK EUROPEAN BUSINESS UK & EUROPE EUROPEAN CUSTOMER DEVELOPMENT TEAM CEO RECRUITED PIPELINE BUILDING RENEWED BASED IN PARIS 22
Slide 23: Outlook
Outlook
Slide 24: Summary
Summary Resilient performance Momentum Structural growth throughout pandemic building drivers accelerating Foundations Well equipped to realise strengthened growth ambitions 24
Slide 25: Thank You
we power ambition Thank You NOMINATED ADVISOR & BROKER: N+1 Singer +44 (0)20 7496 3000 BERENBERG ( JOINT BROKER): +44 (0)20 3207 7800 FINANCIAL PUBLIC RELATIONS: FTI Consulting +44 (0)20 3727 1000 essensys.tech
Slide 26: Disclaimer
Disclaimer This presentation (this “Presentation”), which has been prepared by, and is the sole responsibility of, essensys plc (the “Company”), has been prepared solely in connection with the Company’s preliminary financial results for the year ended 31 July 2021. This Presentation, its contents an
Slide 27: Appendix
Appendix Landmark, Chancery Lane, London
Slide 28: Use of Fundraise Proceeds
Use of Fundraise Proceeds Net proceeds of the fundraise together with existing INVESTMENT ALIGNED WITH MARKET OPPORTUNITY funds are expected to be used over a three year period 2025 USE OF PROCEEDS (£M) Total addressable market (est) 12.9 2024 8 8.1 Headcount per region 5.8 (excludes product & 30% 3
Slide 29: Accelerating Growth Opportunity
Accelerating Growth Opportunity 2.6BN FORECAST FLEX PENETRATION OVER TIME* JLL FORECAST 30% SQ FT 31% ‘We are big believers in CAGR the flexible workspace arena and see a 226M SQ FT tremendous opportunity 2020 FLEX PENETRATION 2030 – we have a huge global occupier business and FORECAST FLEX PENETRAT
Slide 30: Fundraise: Go To Market
Fundraise : Go To Market Plan to increase market share by 10% LANDLORDS AGENTS / BROKERS / PROPERTY MANAGERS DIRECT : FLEX SPACE PROVIDERS DISTRIBUTION : FRANCHISE MARKET SHARE CURRENT TARGET WE FOCUS ON TOP OF CRE NORTH INDUSTRY VALUE CHAIN… AMERICA 8% 18% FOR THEM FOR US Low Risk Can become embedd
Slide 31: Fundraise Investment Case
Fundraise Investment Case £600 LOOKOUT TO 2030 AMBITION AMBITION 17% market share OPPORTUNITY TO 2025 10% market share £567m ARR £88m ARR INCREASE MARKET SHARE £500 IN GROWING MARKET PLAN 8% market share £68m ARR £400 CURRENT PLAN PREVIOUS PLAN WOULD SEE 5% market share 9% market share MARKET OUTGRO