Slide 1: Q2 FY24 Business Update
QUICKFEE Q2 FY24 BUSINESS UPDATE 23 January 2024 President, North America, Jennifer Warawa Chief Financial Officer, Simon Yeandle
Slide 2: Record Q2 revenue driven by growth in QuickFee Finance
Record Q2 revenue driven by growth in QuickFee Finance Group revenue up 38% on the prior corresponding period (pcp) to $5.1 million: + US Finance revenue up 58% on pcp: Total Transaction Values (TTV) up 45% and revenue yield up 70 bps + Australia Finance revenue up 55% on pcp: TTV up 23% and revenue
Slide 3: Strong revenue growth expected to continue
Strong revenue growth expected to continue Group Revenue by Half Year (A$M)1 9.3 Group Revenue by Quarter (A$M)1 5.1 7.9 4.3 4.2 6.9 3.5 3.7 3.6 6.1 3.2 2.5 2.6 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 H2 FY22 H1 FY23 H2 FY23 H1 FY24 Seasonality + Revenue stronger in Q
Slide 4: QuickFee Pay Over Time (Finance)
QuickFee Pay Over Time (Finance) AU Finance TTV AU Finance AU Finance revenue A$M revenue yield A$M Revenue growth driven by both volume & yield 0.8 + In both markets, revenue growth has come 0.5 from both TTV growth and yield Yield 25.4 14.2% improvements 20.6 11.3% TTV H1 FY23 2.3 + Yield improvem
Slide 5: What We Do
WHAT WE DO
Slide 6: The QuickFee Platform
The QuickFee Platform QuickFee offers multiple easy ways for clients to pay the firm. The firm is paid upfront within three business days – boosting cash flow and reducing aging A/R. PAY NOW PAY OVER TIME CONNECT (US only) EFT/ACH + CARD FINANCE INTEGRATION + AUTOMATION Traditional method of payment
Slide 7: Revenue Growth in the US
REVENUE GROWTH IN THE US
Slide 8: New sales strategy driving revenue growth in US
New sales strategy driving revenue growth in US Transformed and optimized sales and customer success teams + Redesigned and implemented new remuneration structure to align commissions with high quality transaction volume + Tailored sales and marketing messaging to position QuickFee Finance as the ke
Slide 9: Led by QuickFee Finance
Led by QuickFee Finance US Financing TTV (US$M) 7.7 Key differentiator in competitive payments market Revenue yields on the Finance product are 5.9 approximately 25x those of Pay Now 5.8 5.3 5.0 New sales commission plans reward: 4.8 + New firms signing up to Finance + Existing firms Finance volume
Slide 10: Innovation-driven product and development strategy
Innovation-driven product and development strategy Focus on building a scalable commercial foundation + New CTO, Dave Moore, is refining the technology strategy + Increased focus on quality, including real-time visualizations for service health and monitoring + Adopting an “automate everything possi
Slide 11: Q2 FY24 Operational metrics in the US
Q2 FY24 Operational metrics in the US + US Active Customers up 14% to 91,000 and US Active Firms up 10% to 725. + The strategic decision to focus on the core, higher-margin Finance product, in conjunction with a refreshed sales strategy with incentive alignment on commissions, has driven stronger Fi
Slide 12: Australia: Strong Performance in Mature Market
AUSTRALIA: STRONG PERFORMANCE IN MATURE MARKET
Slide 13: Australia: Strong performance in a mature market
Australia: Strong performance in a mature market AU Financing TTV (A$M) QuickFee well established as a market leader, with 14.9 14.4 ~40% of the AU market for fee funding 13.0 11.7 + AU Finance revenue up 55% on pcp and 13% qoq to 10.9 11.0 A$1.914 million 9.3 8.9 8.1 7.9 + In a higher interest rate
Slide 14: Q2 FY24 Operational metrics in Australia
Q2 FY24 Operational metrics in Australia + AU Finance TTV up 23% on pcp to $14.4 million + AU Active Customers up 31% on pcp to 17,000, AU Active Firms up by 3% to 423 + Legal disbursement funding TTV (included within Finance TTV) continues to be a growing component of the AU business www.quickfee.c
Slide 15: Adequate liquidity for sustainable profitability
Adequate liquidity for sustainable profitability Cash and liquidity + Strengthened capacity for growth through a new A$10 million asset-based funding facility to support growth of Australian legal disbursements funding product + Provides immediate additional liquidity of A$4.3 million cash; not all
Slide 16: Strategy and Outlook
STRATEGY AND OUTLOOK
Slide 17: FY24 Strategic priorities: unchanged
FY24 Strategic priorities: unchanged Focus on reaching profitability + Continue to reduce cash burn and manage cost base + Focus on fastest path to profit: QuickFee Finance and Connect solutions + Accelerate disciplined and cost-effective product development with a narrow focus Leverage our most val
Slide 18: Continue to track towards operating profitability
Continue to track towards operating profitability Growth in both the US and Australia expected to continue, buoyed by economic and structural tailwinds Strong start to FY24 and strengthened management team provides confidence in our ability to continue to execute on our growth strategy Focus on redu
Slide 19: Questions
QUESTIONS
Slide 20: Contact Details
CONTACT DETAILS Simon Yeandle, CFO p: +61 2 8090 7700 e: simon.yeandle@quickfee.com Katie Mackenzie, Investor Relations p: +61 455 502 197 e: kmackenzie@belleviewir.com.au
Slide 21: Disclaimer
Disclaimer The material contained in this document has been prepared by QuickFee does not undertake any obligation to publicly release the QuickFee Limited ACN 624 448 693 (‘company’) and contains result of any revisions to these forward-looking statements to general information about the company’s
Slide 22: Glossary
Glossary ACH Automated Clearing House A type of electronic bank-to-bank payment in the US, equivalent to EFT in Australia Active customer Any customer who has transacted with QuickFee in the relevant period Active firm Any firm that has had a transaction with QuickFee in the relevant period APR Annu