FINEOS Corporation Holdings Plc · ASX:FCL
FINEOS — H1 2021 Earnings Presentation
23 slides from FINEOS's earnings presentation, Feb 24, 2021
Slide 1: 1H21 Results Investor Presentation
For personal use only 1H21 Results Investor Presentation Michael Kelly CEO & Tom Wall CFO 24th February 2021 © FINEOS Corporation Ltd 1
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by FINEOS Corporation Holdings PLC (Company or FINEOS). By accessing or attending this presentation, you acknowledge that you have read and understood the following statements. NO OFFER OF SECURITIES Nothing in this presentation sh
Slide 3: FINEOS Market Leadership and Presence
FINEOS Market Leadership and Presence For personal use only
Slide 4: 1H21 Operating Highlights
1H21 Operating Highlights For personal use only Multiple client go live implementations and platform upgrades 1,043 drive higher Total Headcount Annual Recurring Revenue at 31 Dec 2020 Leading New Business Insurtech Increase of 40.8% on 1H20, ARR 31 Dec 20: €38.3 million Acquired August 2020 include
Slide 5: 1H21 Financial Highlights
1H21 Financial Highlights For personal use only Revenue of €52.6m Subscription1 revenue Services Revenue 20.1% organic 35.1% organic 15.9% organic growth on 1H20 growth on 1H20 growth on 1H20 30.1% including contribution 51.5% growth including 23.3% growth including from Limelight Health contributio
Slide 6: 1H21 Revenue Highlights
1H21 Revenue Highlights For personal use only Total revenue growth of 30.1% on 1H20, despite negative fx impact of (€1.5m) from exposure to the USD. Growth driven by new client wins during 2H20 and revenue contribution of €3.9m from Limelight Health that was acquired during 1H21. ARR1: €38.3 million
Slide 7: R&D Investment
R&D Investment For personal use only FINEOS continues to dedicate significant resources and financial Investment being made in R&D to investment to develop its software through research and development continue to drive revenue growth 20.0 R&D1 investment €m €19.4 18.0 ▪ €19.4m invested in R&D in 1H
Slide 8: 1H21 revenue by region
1H21 revenue by region Geographic mix of revenue For personal use only 5% 24% EMEA • North America focused strategy working with revenue APAC from the region growing to 71% of total revenue in 1H21 North America versus 55% in prior corresponding period 71% • Strong growth in NA region driven by new
Slide 9: Our People
Our People For personal use only Employees by function 4% 5% 37% Product Consulting • The Covid-19 pandemic has meant that FINEOS’ global 86% Cloud Ops workforce has transitioned and Utilisation1 R&D continues to work remotely 46% Sales & Marketing • Average utilisation for the period 8% General & A
Slide 10: Our Clients
Our Clients For personal use only Client revenue concentration decreasing over time as client base of leading insurance carriers expands Length of % of 1H20 2% 3% Client No. of years relationship revenue % of 1H21 revenue 11% Client 1 10 years 15% 11% 5% Client 2 2 year 14% 11% Client 3 2 year 5% 9%
Slide 11: 2020 Year in Review
2020 Year in Review For personal use only Clients active in: ✓ brand-new installations 10 major carrier go lives ✓ version upgrades ✓ platform migrations …in order to modernise their core systems in support of their digital transformation 8 new Investment in product R&D continued installations Acqui
Slide 12: Limelight Health Integration
Limelight Health Integration For personal use only • Acquired in August 2020, integration process is progressing well with a number of streams complete • Limelight Health brand and product suite converted to FINEOS in December 2020 • Revenue contribution lower than initially expected as one client n
Slide 13: Core Software Suite for Life, Accident and Health
Core Software Suite for Life, Accident and Health For personal use only Absence Billing Claims FINEOS AdminSuite • Integrated claims • Paid & unpaid leaves • Customer-centric design • Automated cash application • Straight-through processing • Accuracy & compliance • Accurate decisions • Integrated a
Slide 14: The FINEOS Platform
The FINEOS Platform For personal use only FINEOS AdminSuite FINEOS Engage FINEOS Insight PLATFORM CAPABILITIES • Consumer/employer core admin • End-to-end integrated components • Configurable SaaS platform • Digital friendly process model • Comprehensive API support • Secure, stable and scalable • C
Slide 15: Growth Strategy
Growth Strategy Expand within existing clients, win new clients and enter new geographic markets For personal use only Grow and Win Expand sales and FINEOS the upsell with clients new clients enter new markets LA&H industry platform ◼ FINEOS has a multinational client ◼ Seeing high demand for IDAM ◼
Slide 16: Financial Performance
For personal use only Financial Performance © FINEOS Corporation Ltd 16
Slide 17: Proforma Income Statement
Proforma Income Statement For personal use only €m 1H21 1H20 % Change • 1H21 revenue grew 30.1% on 1H20, 20.1% reflecting organic growth, and 10% from acquisition Software 19.1 13.3 43.9% • Software revenue grew 43.9% on 1H20 and included €1.9m relating to Limelight Health (LLH) and an Initial Licen
Slide 18: Statutory to Proforma reconciliation
Statutory to Proforma reconciliation For personal use only €m 1H21 1H20 52.6 40.4 Statutory revenue - - No adjustments to revenue 52.6 40.4 Pro forma revenue (5.1) 0.1 Statutory profit/(loss) after tax (0.1) Incremental pubic company costs 0.2 Net finance expense 0.7 IPO Cost Existing Option Plan ad
Slide 19: Balance Sheet
Balance Sheet For personal use only €m 31 Dec 20 30 Jun 20 % Change Cash at Bank 30.7 39.8 -23% • Cash at Bank movement reflects acquisition cost (€2.7m) and Trade Debtors 8.9 17.6 -50% R&D investment. R&D credit 2.6 2.3 13% Prepayments 3.5 3.5 0% • Trade debtors decreased by 50% since 30 Jun 20 due
Slide 20: Cashflow Statement
Cashflow Statement For personal use only €m 31 Dec 20 31 Dec 19 % Change Net cash flows generated from operating activities 3.4 (3.4) -199% • Cash inflow from operating activities primarily due to increase in revenue offset by operating Net cash used in investing activities (68.3) (8.4) 710% expense
Slide 21: Outlook
Outlook1 For personal use only • Total Revenue for FY21 including contribution from Limelight Health, expected to be in the range of €102-105m, after impacts from foreign exchange2 • Reaffirming FY21 guidance of 30% growth in subscription revenue, before contribution from Limelight Health which is e
Slide 22: Appendix – Statutory Accounts
For personal use only Appendix 1 – Statutory Accounts © FINEOS Corporation Ltd 22
Slide 23: Statutory Income Statement
Statutory Income Statement For personal use only €m 1H21 1H20 % Change Software 19.1 13.3 43.9% Services 33.4 27.1 23.3% Total Revenue 52.6 40.4 30.1% Cost of sales (18.7) (12.2) 53.0% Gross profit 33.8 28.2 20.1% Research & Development (8.4) (6.5) 29.9% Sales & Marketing (2.7) (1.9) 41.2% Delivery
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