Gentrack Group Ltd · NZX:GTK
Gentrack — H1 FY23 Earnings Presentation
23 slides from Gentrack's earnings presentation, May 22, 2023
Slide 1: Gentrack Group FY23 Half Year Update
For personal use only Gentrack Group FY23 Half Year Update 22 May 2023 [NZX/ASX: GTK] © Gentrack 2023. All rights reserved. This document is the intellectual property of Gentrack.
Slide 2: Disclaimer
Disclaimer For personal use only This presentation may contain forward-looking statements. Forward-looking statements often include words such as ‘anticipate’, ‘expect’, ‘plan’ or similar words in connection with discussions of future operating or financial performance. The forward-looking statement
Slide 3: HY23 Business Review
For personal use only Gentrack HY23 Business Review Gary Miles Chief Executive Officer © Gentrack 2023. All rights reserved. This document is the intellectual property of Gentrack. 3
Slide 4: Financial Headlines
HY22 HY23 Financial Headlines $57.1M $84.3M REVENUE 47.7% Revenue growth driven by 51.2% increase at Utilities: For personal use only • Customer wins & upsells to existing customers UTILITIES $73.9M driving underlying growth. Excluding REVENUE $48.9M 51.2% customers in insolvencies, revenue up 39% •
Slide 5: Outlook Update
Outlook Update For FY23, the Group expects revenue to be between $157m and $160m. This is an For personal use only increase over our previous guidance of $147m to $150m. We still expect FY23 revenue will include c.$25m from insolvent UK customers, with the higher revenue guidance a result of faster
Slide 6: The growth opportunity for Gentrack is significant
The growth opportunity for Gentrack is significant For personal use only ~100% The first wave (20%) 2-3 is predicted to new-age players will take of utilities will transform transform by 2026 market share from legacy in the next decade players who are slow to adapt & new regional players outpaced No
Slide 7: Gentrack is well positioned to service all of our stakeholders
Gentrack is well positioned to service all of our stakeholders We have a strong leadership team, employees have great career opportunities, attrition is For personal use only significantly lower than tech benchmark and net People people growth of 23% from HY22 to HY23. GTK stock performance in NZX,
Slide 8: Utilities Objectives for 2023 – Recap
Utilities Objectives for 2023 – Recap Grow in our core markets Expand globally For personal use only ‘23 and beyond ‘23 and beyond Implement booked wins in Australia, Use Singapore as a base to expand into New Zealand and UK Asia and the UK into EMEA Upsell G2, cloud services and innovation Reassign
Slide 9: Scorecard for 'Grow in our core markets'
Scorecard for ‘Grow in our core markets’ Regional growth revenue compared to HY22: Implement booked wins in Australia, For personal use only New Zealand and UK AUS NZ UK # of customers Upsell G2, cloud services and innovation upgrade highway to all existing customers Innovative add-ons time Reach ne
Slide 10: Scorecard for 'Expand in EMEA and Asia'
Scorecard for ‘Expand in EMEA and Asia' Use Singapore as a base to expand into Opened Singapore office For personal use only Asia and the UK into EMEA Reassign experienced leaders from core Experienced Gentrack execs now leading Asia markets to new markets and EMEA with scaled up sales teams Our sal
Slide 11: Airport Division Returns to Growth
Airport Division Returns to Growth For personal use only Win new airports More than 2x the sales pipeline Expand the base 4 3 Numerous upsells, including in upgrades signed transformations projects goes live, including first managed services 2 tier-1 airports Migrated to new Machine learning Forecas
Slide 12: HY23 Results
For personal use only Gentrack HY23 Results John Priggen Chief Financial Officer © Gentrack 2023. All rights reserved. This document is the intellectual property of Gentrack.
Slide 13: Group Profit and Loss
Group Profit and Loss • Revenue up 47.7% vs HY22: For personal use only Utilities Veovo Group o Strong growth at both the Utilities and Veovo businesses. o Includes $19.7m from Bulb & other UK insolvencies. Expect c.$5m from these customers in H2. o Underlying Utilities growth also impressive at 39%
Slide 14: Utilities Revenue Analysis
Utilities Revenue Analysis Total revenue up 51% v HY22 For personal use only Utilities Revenue HY23 v HY22 Strong underlying growth (excluding Bulb & other UK Total:$73.9m insolvencies): Total:$48.9m Underlying:$54.2m Underlying:$39.0m • 39% growth in total underlying revenues. • 43% growth in under
Slide 15: Utilities – Analysis of Underlying Revenue
Utilities – Analysis of Underlying Revenue HY23 v HY22 Revenue by region excl. insolvencies 39% • Strong underlying growth across all regions. For personal use only 26% • ROW - growing international footprint with $2m revenue from customers in Singapore, Fiji & Papua New Guinea. 58% • Strong growth
Slide 16: Utilities Expenditure Analysis
Utilities Expenditure Analysis Utilities Costs HY23 v HY22 (NZ$m) • $6.3m increase in direct costs, in people & For personal use only hosting, to support higher revenues. • Higher investment in strategic R&D (up $1.4m) as our underlying revenue grows. • $1.4m investment in international expansion (A
Slide 17: Revenue Analysis
Revenue Analysis For personal use only Veovo Revenue HY22 v HY23 Veovo Revenue by Geography HY23 v HY22 Total Revenue Europe $10.4m Up 26.7% on H1 22 $8.2m Annual Recurring Americas Revenue 27% $6.8m Up 15.1% on H1 22 APAC H1 22 H1 23 Committed Monthly Non-contracted Non-recurring Recurring Revenues
Slide 18: Cashflow
Cashflow EBITDA to Net Cashflow HY23 (NZ$m) For personal use only 30 31 September March 2022 2023 Cash $27.4m $41.9m Debt* Nil Nil Net Cash $27.4m $41.9m * Group retains a $25m credit facility currently undrawn • Cash up $14.5m from September 2022 (+53%). • High cash conversion from EBITDA, with no
Slide 19: In Summary
In Summary We are pleased with our progress in all of Gentrack’s core markets. For personal use only For the new markets we are entering, for both utilities and airports, our pipeline is growing. Our technologies are resonating well and our key partnering strategy around g2.0 with SalesForce and AWS
Slide 20: Q&A
For personal use only Q&A © Gentrack 2023. All rights reserved. This document is the intellectual property of Gentrack.
Slide 21: GAAP to Non-GAAP Profit Reconciliation
GAAP to Non-GAAP Profit Reconciliation For personal use only Half Year Half Year NZ$m 31 Mar 22 31 Mar 23 Reported net profit/(loss) for the period (GAAP) (5.8) 7.9 Add: Net finance Expense 1.5 0.5 Add/(deduct): Income Tax expense/(credit) 0.2 3.5 Add: Depreciation and amortisation 5.4 4.1 EBITDA 1.
Slide 22: HY23 on a Constant Currency Basis
HY23 on a Constant Currency Basis For personal use only HY23 Difference NZ$m HY23 Constant % (vs HY23) Currency Revenue 84.3 84.0 (0.3) (0.3%) Operating Costs 68.3 67.8 (0.5) (0.7%) EBITDA 16.0 16.2 0.2 1.2% Statutory NPAT 7.9 8.0 0.2 2.0% © Gentrack 2023. All rights reserved. This document is the i
Slide 23: Thank you
For personal use only Thank you © Gentrack 2023. All rights reserved. This document is the intellectual property of Gentrack.