Slide 1: Straker H1 FY2024 Investor Presentation
Straker H1 FY2024 Investor Presentation
Slide 2: Presenters
Presenters Grant Straker Co-founder and CEO David Ingram Chief Financial Officer 2
Slide 3: Straker at a glance
Straker at a glance ● Leading AI driven language services provider globally, more than 9,000 customers across the globe ● Best in class platform providing automation, productivity and human in the loop process with more than 20,000 domain and language experts in our crowd ● Increasing use of AI driv
Slide 4: Highlights
Highlights $3.6m $1.7m 60.8% Operating Cash Flow Adj EBITDA Gross Margins an up from $0.6m in PCP increase of 530bp $14.3m $2.4m 108% Cash Balance up Reduction in OPEX Adj Cash from $12.4m Conversion* *Adjusted Cash Conversion is Operating Cash less Investing Cash less Lease Payments divided by Adju
Slide 5: Language Services Update
uage Services Update GROUP
Slide 6: Independent industry analysis from Nimdzi, around the impact of LLMs
Independent industry analysis from Nimdzi*, around the impact of LLMs ● The industry has experienced a slowdown in demand, with a cautious approach from buyers due to economic uncertainties and the evolving capabilities of AI. However, specific sectors like healthcare and life sciences are thriving,
Slide 7: The LanguageCloud platform continues to lead the industry in innovation with workplace apps and AI integration
The LanguageCloud platform continues to lead the industry in innovation with workplace apps and AI integration State of the art human-in-the-loop validation Easy delivery platform for AI Integrated into all stages of platform managing thousands corporates through Slack and the production process giv
Slide 8: Repeating Revenue
Repeating Revenue 95% of revenue is repeating revenue 8
Slide 9: Industry at an inflection point
Industry at an inflection point ● Global downturn combined with advances in AI technologies depressed the industry in the first half of CY 2023 as customers hit pause and took a wait-and-see approach ● Now the initial hype is over on the impact of AI on the industry customers taking a more structured
Slide 10: A strong customer base with significant untapped potential
A strong customer base with significant untapped potential 10
Slide 11: Growth and Profitability Strategy
Growth and Profitability Strategy Maximise Existing Business Growth Initiatives Focus on Pricing Slack App AI validation productivity Increasing Maximise Intelligence customer Teams App Margins Platform wallet share Alternative Switch to Corporate Vertical models(PaaS) LanguageCloud Media Markets 11
Slide 12: Demo of LanguageCloud
Demo of LanguageCloud 12 straker GROUP
Slide 13: Financials
Financials
Slide 14: Income Statement
Income Statement Income Statement (#039;000) 4H FY24_ 1H FY23 Movement Movement % Revenue 33,027__(7,501) (23%) ——— Cost of sales (14,703) 4,691 (2%) Gross profit 18,324 (2,810) (15%) Gross Margin (%) 35% 3% 10% Operating expenses es Selling and distribution (9,243) 1,653, (18%) Product design and deve
Slide 15: Financial Position
Financial Position Financial Position (#039;000) AHFY24 31-Mar-23 Current assets Cash and cash equivalents 12,505 Trade receivables 9715 Other assets and prepayments 4,083 Total current assets 26,269 Non-current assets Intangible assets 28,505 Plant and equipment 323 Right-of-use assets 1,246 Total non
Slide 16: Cash Flow
Cash Flow Cash Flows (#039;000) 4HFY24 1H FY23 ‘Cash flows from operating activities Receipts from customers 27,892 31,991 Government grants and tax incentives 317 205 Interest received 135 1 Payments to suppliers and employees (24,730) (32,753) Interest paid = io) Net cash from / (used) in operating a
Slide 17: Evolving with AI
Evolving with AI
Slide 18: AI Strategy
AI Strategy There is not a car manufacturer in the world today not looking at evolving their offering with EVs. This is the same for language services companies, having a strong strategy for evolving with AI will mean you can take advantage of a huge opportunity. Straker has been at the forefront of
Slide 19: Our AI Goals
Our AI Goals ● Use AI to deliver incomparable value to customers through increased speed, accuracy and cost ● Use our assets around multilingual expertise and human in the loop to evolve our offering into AI tools to increase our utility with existing customers ● Increase subscription revenue by movi
Slide 20: Key achievement on AI strategy
Key achievement on AI strategy ● Attended several AI conferences, got the lay of the land and explored a range of opportunities based on a verification and fact-checking offering the team had built ● A number of use-cases for our platform/assets were identified and we have invested in building some to
Slide 21: Demo of AI tools
Demo of Al tools 21 straker GROUP
Slide 22: Q&A
Q&A 22 straker GROUP
Slide 23: Disclosure Statement
Disclosure Statement This presentation is given on behalf of Straker Limited ASX:STG (Company number NZ: 1008867 / AU: ARBN 628 707 399) Information in this presentation: ● Is for general information purposes only, and is not an offer or invitation for purchase, or recommendation of securities in Str
Slide 24: Thank you
Thank you