Motork Plc · EURONEXT:MTRK
Motork — H1 2023 Earnings Presentation
26 slides from Motork's earnings presentation, Jul 28, 2023
Slide 1: Half Year Results 2023
2023 HALF YEAR RESULTS July 28th 2023
Slide 2: Highlights
01. HIGHLIGHTS
Slide 3: Key Strategic Highlights
Key Strategic Highlights ▪ Continued growth at scale ▪ June : Record month in Retail bookings, with huge pick-up in Spain ▪ Healthy pipeline in both Retail and Enterprise and Committed ARR provides visibility for H2 23 ▪ Strategic focus on profitability and operating leverage ▪ Comprehensive review
Slide 4: H1 23 Key Figures
H1 23 Key Figures Operational(1) Financials Outlook Customers H1 23 ARR(4) FY23 €39-43m ARR 5.2k +50% YoY incl. c. €2m CRR(4) Retention(2) Recurring Mix (5) Operating Leverage 114% 80% over H2 23 Retail ACV(3) Cash EBITDA FY23 Cash EBITDA €18.1k -€9.3m Factoring reorg. costs Platform ACV Run-Rate Sa
Slide 5: Financials
02. FINANCIALS
Slide 6: 70% Growth in Recurring Billings
70% Growth in Recurring Billings REPORTED REVENUES – (€M) BILLINGS – (€M) ▪ H1 23 Revenues overall up 30% vs. H1 22, and total billings up 28% 21.9 ▪ H1 23 Recurring Billings up 69% +30% 18.7 consistent with ARR development 3.2 16.9 +28% ▪ Non-recurring revenues down 29%, 4.4 overall consistent with
Slide 7: Continued High Pace Growth
Continued High Pace Growth Q2 23 ANNUAL RECURRING REVENUES (“ARR”) – (€M) ▪ Consistently growing ARR at high pace ▪ Q2 23 ARR up 50% vs. Q2 22, of which 34.8 34% organically 4.7 ▪ Organic perimeter notably including 30.1 companies acquired before Q2 22 and still in their first year of integration an
Slide 8: Aligning ARR Reporting and Integrating Acquisitions
Aligning ARR Reporting and Integrating Acquisitions ANNUAL RECURRING REVENUES (“ARR”) – (€M) ▪ Aligning ARR Reporting and Integrating Acquisitions − Application to the acquired 30.1 companies of MotorK’s more conservative and strict definition of 27.9 27.3 Annual Recurring Revenues (ARR) 26.9 24.6 ▪
Slide 9: Enterprise Fueling Organic Growth
Enterprise Fueling Organic Growth ORGANIC ARR – (€M) ENTERPRISE ARR MIX – (€M) ▪ 34% overall organic growth ▪ Solid contribution of Enterprise, 27.0 doubling ARR year on year, reflecting strengthened strategic focus on Enterprise initiated on the 21% 5.8 back end of FY 22 ▪ Enterprise now representi
Slide 10: Robust Retail Organic KPIs
Robust Retail Organic KPIs RETAIL ORG. CUSTOMER (1) – (#) ARR CHURN – (%) NRR(2) – (%) 852 115% 114% 6.2% 5.6% 670 Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 (1) Core Retail base, excluding customers from acquired companies (Dapda, FranceProNet, Fidcar, Carflow, WebMobil24, GestionaleAuto) not yet migrated
Slide 11: Consistent Increase in Multi-Product Adoption
Consistent Increase in Multi-Product Adoption ANNUAL AVERAGE CONTRACT VALUE (“ACV”) – (K€ / YEAR) ▪ ACV reached €18.1k in Q4 22 Retail Organic Perimeter – excl. non migrated M&A Customers ▪ Up 9% against €16.6k in the same period last year ▪ Growth in multi-product adoption fueled by continued new p
Slide 12: Spain Case Study: Unlocking Value through M&A
Spain Case Study : Unlocking Value through M&A SPAIN RETAIL : ACV EVOLUTION – (K€ / YEAR) ▪ Case study in Spain highlighting the Embarking acquired customers onto the full MotorK journey uplift potential from migration and platforming of acquired customers x 4.8 through M&A €28.9k ▪ Average Dapda cu
Slide 13: Lots of Room to Grow
Lots of Room to Grow TOTAL CUSTOMERS EVOLUTION – (#) ▪ The group is now addressing 5.2k customers across Europe ▪ Acquired base of c. 4.3k customers ▪ Large base of customers offering 5,200 still untapped potential in terms of cross-sell and up-sell opportunities 3,200 4,348 2,000 2,451 1,367 599 63
Slide 14: Managing Opex Growth for Future Profitability
Managing Opex Growth for Future Profitability OPEX BREAKDOWN – (€M) REPORTED ADJ. EBITDA – (€M) ▪ Overall, 21% increase in Opex vs. H1 22 ▪ H1 22 not fully factoring the strategic investments implemented throughout 23.3 +21% FY 22 to achieve critical mass in terms 3.7 of R&D and S&M teams 19.2 ▪ Ope
Slide 15: Perspective on Cash EBITDA
Perspective on Cash EBITDA H1 23 EBITDA BRIDGE – (€M) ▪ H1 23 Cash EBITDA of (€9.3)m vs. (€7.3)m in H1 22 ▪ Increase in recurring revenues over H1 23 vs. H1 22 not yet fully absorbing the (1.4) new cost structure (3.2) ▪ Overrun costs related to the integration of the recently acquired companies (4.
Slide 16: Short-Term Impact, Long-Term Benefit
Short-Term Impact, Long-Term Benefit CASH EBITDA – (€M) ▪ H1 23 Cash EBITDA of (€9.3)m vs. (€7.3)m in H1 22 ▪ Increase in Costs reflecting the upsized group compared to last year (466 FTEs at H1 23 vs. 250 at the start of FY22) ▪ Additional €1.6m costs incurred in H1 23 to leverage future synergies
Slide 17: Implementing Cost Optimization
Implementing Cost Optimization ▪ Ambitious growth plans in FY22, both COST OPTIMIZATION IMPLEMENTATION – (€M) organic and through M&A, resulting in increased cost base ▪ Comprehensive review to identify and streamline operations and leverage 0.6 synergies resulting from the acquisitions 0.7 (2.0) ▪
Slide 18: FY 23 ARR Outlook
FY 23 ARR Outlook FY 23 ARR OUTLOOK – (€M) ▪ €34.8m CRR as of H1 23 , including backlog, contractual price increase and Enterprise deals to be delivered 39 to 43 ▪ Confirming initial range of €39 to €43 m, 2.0 factoring up to €2 m of CRR from H1 23 − Related to large Enterprise roll-up 34.8 plans th
Slide 19: Path to Profitability
Path to Profitability QUARTERLY CASH EBITDA TRAJECTORY– (€M) ▪ Adjusting FY23 Cash EBITDA guidance to a more conservative €-13m to €-10m FY 23 FY 24 ▪ Reorganization costs and some delays Cash EBITDA = -13 to -10 €m Cash EBITDA Positive in initial migration plans have led to lower than anticipated C
Slide 20: Q&A
03. Q&A
Slide 21: Appendix
APPENDIX
Slide 22: H1 23 Profit and Loss
‘+ H1 23 — Profit and Loss H1 2023 CONSOLIDATED PROFIT AND LOSS (Reclassified) In k€ Jun-23 Jun-22 Revenues 21,900 16,911 Costs for customers media services (3,634) (3,418) Personnel costs (16,111) (12,608) R&D capitalization 4,714 2,710 Other costs (8,236) (5,902) EBITDA Adjusted (1,367) (2,307) Ex
Slide 23: H1 23 Revenues Breakdown
‘+ H1 23 — Revenues Breakdown H1 2023 REVENUES BY PRODUCT AND SERVICES LINE Ink€ Jun-23 Jun-22 y.o.y. change SaaS platform 16,243 11,444 42% Digital Marketing 3,704 3,639 2% Other 1,953 1,828 7% Revenues 21,900 16,911 30% Inké Jun-23 Jun-22 y.o.y. change SaaS Recurring revenues 16,125 10,811 49% Con
Slide 24: H1 23 R&D Expenses
‘+ H1 23 — R&D Expenses Hi 2023 R&D EXPENSES Ink€ Jun-23 R&D expenses 7,608 - of which capitalised 4,714 - of which expensed in the income statement 2,894 R&D expenses as a percentage of Revenues 35% Jun-22 2,710 1,850 27% change
Slide 25: H1 23 Cash Flow Statement
‘+ H1 23 — Cash Flow Statement H1 2023 CASH FLOW STATEMENT (Reclass Ink€ Cash - Beginning of the period EBITDA Adjusted Decrease / (increase) in working capital Decrease / (increase) in contract assets Operating free cash-flow Taxes paid Cash flow from investing acti Cash flow from investing acti Fr
Slide 26: H1 23 Statement of Financial Position
H1 23 ― Statement of Financial Position 26