Expert.ai S.p.a. · MIL:EXAI
Expert.ai — H1 2022 Earnings Presentation
13 slides from Expert.ai's earnings presentation, 2022
Slide 1: 1H 2022 Results Investor Presentation
1H 2022 Results Investor Presentation
Slide 2: SaaS and North American Growth
SaaS and North American Growth Focus Going Forward on Growth-Cost Balance SaaS Total Revenue Revenue 13.9MM 6.8MM Annual Recurring +17% YoY NA Revenue +50% YoY Revenue* 3.9MM 18.3MM +339% YoY +46% YoY *Non-IFRS: trailing 12 months annual contract value period ending 1H2022 over period ending 1H 2021
Slide 3: ARR +46% YoY
ARR +46% YoY COMMENTARY • Annual Recurring Revenue €MM • SW subscription & maintenance 20 • Net growth = sum of... 18 • New 16 • Expansion/renewal • Less decline/churn 14 • Trailing twelve months (TTM) 12 10 • Net retention 100%...key focus 18.3 8 • 21 new/expansion 1H clients 6 12.5 4 • Focus on mu
Slide 4: Recurring revenue business
Recurring revenue business COMMENTARY • SW license subscription (SaaS) Revenue stream HY 2021 % Rev. HY 2022 % Rev. Var % • 49% of total • 50% YoY growth Recurring revenues 6.3 53% 8.5 61% 35% • Recurring revenue SaaS 4.5 39% 6.8 49% 50% • 61% of total revenue • 35% YoY growth Maintenance 1.7 15% 1.
Slide 5: Need to scale cost
Need to scale cost COMMENTARY Move from investment to optimization ACT ACT • Actions underway to address cost scaling June - €/m H1 2021 H1 2022 Δ • COGS/margin improvement Total revenues 11.8 13.9 18% • Cloud hosting optimization • Platform deployment consulting Total costs (20.0) (24.9) 24% COGS (
Slide 6: From EBITDA to Net Results
From EBITDA to Net Results: COMMENTARY HY 2020 vs. HY 2021 ACT ACT • Amortization mainly June - €/m H1 2021 H1 2022 Δ R&D costs (€3.1M in 2022 EBITDA (8.1) (11.1) (2.9) and €2.8M in 2021). • Unrealized exchange gain Amortization of Intangible Assets (3.2) (3.7) (0.4) (0.1) (0.1) 0.0 of €0.2M related
Slide 7: Compelling Opportunity
Compelling Opportunity "As economic turbulence looms, Forrester recommends companies rein in tech spending. But not on A.I." Fortune 9/14/2022 The NLP Market Dominant in AI Software (1) C ustomer Se rvice Em otion AI Sale s Applications Applications Analytics and BI Platforms Em ail Authoring – Ente
Slide 8: Analyst Validation of expert.ai Approach
Analyst Validation of expert.ai Approach McKinsey Technology Trends Outlook: Applied AI INTERNAL 9/29/2022 8 August 2022
Slide 9: Competitive Advantage
Competitive Advantage "Our research confirms that the best results are achieved by a combination of AI that is both knowledge- based and ML-based — hybrid AI." Forrester September 22, 2022 NLP Libraries/ Coverage Expert.ai Platform Legacy Platforms NL API/Open-Source ML/DS Platforms Point Solutions
Slide 10: Strong Performer and Growing Ecosystem
Strong Performer and Growing Ecosystem "We recommend that tech leaders increase or defend investments in...intelligent document extraction serving critical business processes" Forrester 8/14/2022 • C Insurance Information Services Solutions Partnership Ecosystem • Policy Review • Financial Services
Slide 11: Keys to SaaS Profitability
Keys to SaaS Profitability • Customer acquisition cost – sales and marketing cost for new business • One time infrastructure investment complete – technology and GTM • Focus and scale GTM • High impact/low complexity segments • Scale/marketing productivity • Grow partners/eco-systems • Payback perio
Slide 12: 2H Focus
2H Focus • Growth-cost alignment and focus on core markets/solutions • ARR growth • New business in core verticals and emerging functional use cases • Key renewals • Customer success/expansion • Accelerate sales cycle with repeatable solutions/enhanced targeting • Build through eco-systems/partnersh
Slide 13: Thank You
Thank You Linkedin.com/company/expert-ai/ Twitter.com/expertdotai ir@expert.ai INTERNAL