Cluey Ltd · ASX:CLU
Cluey — Investor Presentation (July 2024)
30 slides from Cluey's investor presentation, Jul 24, 2024
Slide 1: Cluey update & Capital Raise
Cluey update & Capital Raise 24 July 2024
Slide 2: Disclaimer
Disclaimer This presentation • is not an offer, invitation, inducement or recommendation to purchase or subscribe for any securities in Cluey Ltd ("Cluey") or to retain any securities currently held; • is for information purposes only, is in summary form and does not purport to be complete; • is not
Slide 3: Agenda
Agenda Recap on the progress made in the last 18 months Our Journey To-Date Business is now where it needs to be and ready to scale Going Forward Funding Our Path To Profitability – Capital Capital required to fund path to profitability and growth initiatives Raising
Slide 4: Our journey to-date
Our journey to-date
Slide 5: Summary: The pivot from hyper growth to profitability
Summary: The pivot from hyper growth to profitability CY 2023 First phase of the business restructure: • Peak of 236 FTE’s in July 2022 down to 128 FTE’s in Dec 2023 • Reduction in Head Office costs/overheads by 3.1m (11%) CY23 vs CY22. CY 2022 • Reduction in marketing spend by $2.8m (21%) CY23 vs C
Slide 6: Streamlined Group organisational design and extensive automation of internal processes
Streamlined Group organisational design and extensive automation of internal processes across Cluey and Code Camp, requiring smaller workforce GROUP FTEs1 Australia UK • The Group implemented a streamlined organisational design 250 and extensive automation of internal processes, resulting in a signi
Slide 7: Group Head office costs now significantly reduced - run rate of ~$21m
Group Head office costs now significantly reduced - run rate of ~$21m As we return to growth, Head Office costs are not expected to increase. HEAD OFFICE & DIRECT COSTS Head Office Costs Direct Costs • Significant investment in Product and Technology driving reduction in FTE’s, 45.0 40.7 automation
Slide 8: Continuous improvements in Group CAC performance
Continuous improvements in Group CAC performance QUARTERLY GROUP MARKETING CAC1 $400 $350 • In Q4FY24, Group Marketing CAC1 declined to $115 versus $254 in $300 PCP, an improvement of 54% • Group Marketing CAC is now at the $250 lowest level since inception $200 • Successful restructure of Cluey mar
Slide 9: Achieved marketing and sales efficiency
Achieved marketing and sales efficiency GROUP VARIABLE CAC AS % OF REVENUE 70% • Integrated sales and marketing with a strong focus on optimisation 60% across media channels 50% • Reduced Group Variable CAC1 to $207, a 36% improvement on PCP. 40% Ongoing improvements in marketing and sales continues
Slide 10: Ongoing improvements in LTV to CAC in Cluey Learning division
Ongoing improvements in LTV1 to CAC 2 in Cluey Learning division CLUEY LEARNING DIVISION LTV vs CAC • Substantial increase in LTV following CAC LTV the release of various product and $1,400 service improvements and the introduction of new pricing plans $1,200 • In the last two quarters, consistent $
Slide 11: Cluey Learning student numbers now increasing again as we approach profitability
Cluey Learning student numbers now increasing again as we approach profitability • Initial focus was on achieving scale and proving FORWARD ORDER BOOK our platforms, systems, and processes can cope with large numbers Net Gain/Loss in Weekly Sessions 2,500 • In order to accelerate the path to profita
Slide 12: Focus on achieving profitability and cash preservation has improved Underlying EBITDA and reduced Cash burn
Focus on achieving profitability and cash preservation has improved Underlying EBITDA and reduced Cash burn significantly. QUARTERLY GROUP UNDERLYING EBITDA QUARTERLY GROUP CASH BURN FY22 FY23 FY24 FY22 FY23 FY24 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -1.4 -0.9 -1.3 -2.0 -1.8 -2.2 $’millions $’millions -2.5 -3.3 -
Slide 13: Going forward
Going forward SOLU EY + eet —
Slide 14: Focus now on driving profitability via a multi-channel strategy, three distinct business units
Focus now on driving profitability via a multi-channel strategy, encompassing three distinct business units Multi-channel approach aims to extend reach to our target audience through marketing and leveraging schools as a communication platform Online Schools & Partnerships Events & Experiences Stude
Slide 15: With the right organisation design and team to support multiple business units
With the right organisation design and team to support multiple business units cost- effectively Business units, led by General Managers, are supported by shared functions. This ensures cost - effective & consistent delivery & alignment of customer experience.
Slide 16: Cluey 2.0 – supporting our profitable growth opportunities
Cluey 2.0 – supporting our profitable growth opportunities Technology, data and AI Online Cluey 2.0: • New unified brand strategy • Single digital experience Schools & Events & Partnerships 21k active • Expanded product offering customers Experiences Online: Learning analytics, data and AI 6.5k acti
Slide 17: Strong local presence with significant opportunity to scale via international expansion
Strong local presence with significant opportunity to scale via international expansion. Most of this is organic Australian students Current operations and future markets Cluey is Australia’s leading out-of-school learning services provider Cluey has a proven track record of rollout in overseas mark
Slide 18: Integrating AI across the business
Integrating AI across the business Driving improvements across the business First Product: AI as a tutor for Senior students in beta • Improving productivity • Different to simply using ChatGPT Improving • Data Analysis productivity • Designed to drive learning • Dealing with complexity • Initially,
Slide 19: Integrated AI will deliver a more personalised, engaging and effective learning experience
Integrated AI will deliver a more personalised, engaging and effective learning experience Strengths of Human Tutor Strengths of AI Tutor Benefits of the Integrated approach • Personal connection and motivation • 24/7 availability Integrating both can create a robust educational ecosystem in which:
Slide 20: Capital Raising Details
i Capital Raising | Details
Slide 21: Focus on achieving profitability and cash preservation has significantly reduced Cash Burn
Focus on achieving profitability and cash preservation has significantly reduced Cash Burn. GROUP CASH BURN1 Cash position: 0.0 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 • Implementation of cost saving initiatives in FY23 and FY24 and a focus on driving to -1.0 profitability2 h
Slide 22: Capital raise to support path to profitability and growth initiatives
Capital raise to support path to profitability and growth initiatives Fully underwritten Entitlement Offer to raise $4.5 million. The equity raising is to underpin Cluey’s path to profitability and execute growth opportunities • The equity raise is structured as a fully underwritten 3 for 4 non-reno
Slide 23: Indicative Entitlement Offer Timetable
Indicative Entitlement Offer Timetable Event Date Record Date for Entitlement Offer 7pm (Sydney time), 29 July 2024 Offer Booklet sent to eligible shareholders 31 July 2024 Entitlement Offer opens 9am (Sydney time), 1 August 2024 Entitlement Offer closes 5pm (Sydney time), 14 August 2024 Announcemen
Slide 24: Schedule 1 – Legal Disclaimers
Schedule 1 – Legal Disclaimers This Investor Presentation has been prepared by (and is the sole responsibility of) Cluey Ltd ACN 644 675 909 (ASX: CLU) (Cluey or the Company) for the purposes of giving an update to the market in relation to the Company’s activities and in order to give an overview o
Slide 25: Schedule 1 – Legal Disclaimers
Schedule 1 – Legal Disclaimers Forward-looking statements This Investor Presentation contains “forward-looking statements”, including statements regarding the expected financial condition, results of operations, market conditions or the outcome of and the intended use of proceeds raised under the En
Slide 26: Schedule 2 – Risk Factors
Schedule 2 – Risk Factors An investment in New Shares is subject to known and unknown risks, some of which are beyond the control of the Company. The Company does not guarantee any particular rate of return or the performance of the Company and nor does it guarantee any particular tax treatment. Per
Slide 27: Schedule 2 – Risk Factors
Schedule 2 – Risk Factors Risk factor Summary Competition The Company expects that existing competitors and new entrants to the outside-of-school K-12 education segment will constantly revise and improve their business models in response to challenges from competing businesses, including the Company
Slide 28: Schedule 2 – Risk Factors
Schedule 2 – Risk Factors Risk factor Summary Acquisitions, expansion or growth initiatives As part of its growth strategy, the Company may investigate and undertake expansion, acquisition and other growth initiatives from time by Cluey may not be successful to time. The risks that the Company may f
Slide 29: Schedule 2 – Risk Factors
Schedule 2 – Risk Factors Risk factor Summary Failure to realise benefits from product Developing software and technology is expensive and often involves an extended period of time to achieve a return on investment. An development costs important part of the Company’s business strategy is to continu
Slide 30: Level 2, 117 Clarence Street, Sydney NSW 2000
Level 2, 117 Clarence Street, Sydney NSW 2000 | Phone: 1300 182 000 ABN: 33 620 549 019