Slide 1: FY22 Results Presentation
ASX:RDY FY22 RESULTS PRESENTATION 17 August 2022 Marc Washbourne – Co-Founder & CEO Nimesh Shah – Chief Financial Officer
Slide 2: Next Generation, People-Centric Software
NEXT GENERATION, PEOPLE-CENTRIC SOFTWARE FY22 Full Year Results 2
Slide 3: ReadyTech delivers strong like-for-like growth
ReadyTech delivers strong like-for-like growth Like-for-like revenue* Underlying EBITDA** Underlying NPATA** Net customer revenue retention 16.8% $27.5m $14.3m 106% Margin of 35.1% (exc. LTIP: 36.5%) YoY growth to $78.3m FY21: $10.6m FY21: 104% FY21: $18.9m Gross opportunity pipeline High value cust
Slide 4: Outstanding and sustained growth in recurring SaaS revenue
n u e ev e n r th ti o row Outstanding cr i p R g u bs A G S C 27 % and sustained growth in recurring SaaS revenue FY22 Full Year Results 4
Slide 5: High value new business wins and strategic M&A underpin continued growth
High value new business wins and strategic M&A Winning larger enterprise customers across underpin continued growth ReadyTech Substantial FY22 new business performance with 48 high value customers, each generating over $50k in annualised subscription and implementation value, with an aggregate annua
Slide 6: Laser focused on strategic execution
Laser focused on strategic execution FY22 Full Year Results 6
Slide 7: ReadyTech is executing on a vertical SaaS playbook
ReadyTech is executing on a vertical SaaS playbook Delivering high value across all segments FY22 Full Year Results 7
Slide 8: Accelerated growth achieved through ongoing investment
Accelerated growth achieved through ongoing investment Product-market fit Go-to-market Scaling Focused product alignment for superior Growth in sales and marketing spend Efficient and streamlined operations to retention and customer acquisition and targeting higher value customers support accelerate
Slide 9: FY22 financial performance
FY22 financial performance FY22 Full Year Results 9
Slide 10: Strong like-for-like revenue growth at high margins
Strong like-for-like revenue growth at high margins Total revenue of $78.3m, and $67.0m on a like-for-like** basis – YoY growth of 16.8%. Subscription and license revenue was $65.6m representing 84% of total $ MILLIONS revenue. Like-for-like** basis subscription revenue growth rate of 21.9% from $53
Slide 11: Strong cashflow and balance sheet support further growth
Strong cashflow and balance sheet support further growth Highlights NET DEBT AS AT 30 JUNE 2022 Available cash-for-use of $12.8m, including $9.2m cash and equivalents, and $ MILLIONS 30 June 2022 30 Jun 21 $3.5m debt facility headroom, given $37.5m facility drawn to $34.0m. Additional Bank debt 34.0
Slide 12: Government & Justice
Government & Justice FY22 Full Year Results 12
Slide 13: Government digital transformation tailwinds
Government digital transformation tailwinds Driving growth across large addressable market Global digitisation of Estimate that over 75% of the Next generation public sector Digitisation accelerated by government services and 530+ councils have purchased a employees driving customer and COVID-19 now
Slide 14: IT Vision acquisition: strategic rationale
IT Vision acquisition: strategic rationale Strong strategic fit, complementing ReadyTech’s existing government software Leading market Mission critical Optimised local Leverages Strong local position in local software and sticky government product ReadyTech’s government expertise government software
Slide 15: IT Vision: boosts ReadyTech's position in local government
IT Vision: boosts ReadyTech’s position in local government The acquisition of IT Vision will greatly enhance ReadyTech’s customer footprint and ability to service local governments across Australia IT Vision enjoys strong local government market positions in WA ReadyTech will benefit from a highly e
Slide 16: Ready to digitise Government
Ready to digitise Government Digital transformation for improved customer service and growing community expectations Capability Integrated WHY WE ARE WINNING CUSTOMERS Open Windows delivers market leading contracts and ASSET & procurement management to strengthen ERP offering and provide new upsell
Slide 17: Justice is a major global growth opportunity
Justice is a major global growth opportunity Well positioned to capitalise on global digitisation trends WHY WE ARE WINNING CUSTOMERS Domestic Market Global Market DOMAIN EXPERTISE Over 20 years’ experience in complex domain – deep Citizen-centric justice case management Strong portability to other
Slide 18: Growing international reputation following major win with UK Ministry of Justice
Growing international reputation following major win and successful project in UK with Ministry of Justice ReadyTech’s ’land and expand’ strategy in action “Fantastic – it’s so much quicker and easier to find Judicial availability than in e-diary” Scheduling and Listing Resource Management Cardiff D
Slide 19: Significant Government & Justice contribution
Highlights Significant Government & Justice contribution Revenue growth on a like-for-like basis of 18.6% to $23.9m underpinned by 33% growth in subscription revenue to $19.6m. Recurring revenue is now 76% of total revenue compared to ~65% for the period FY21. $ MILLIONS Government & Justice revenue
Slide 20: Workforce Solutions
Workforce Solutions FY22 Full Year Results 20
Slide 21: Workforce Solutions addressing a huge market of $2.4b
Workforce Solutions addressing Targeting initial industry verticals with all-in-one offering a huge market of $2.4b* Mid-to-enterprise market focused SaaS solving complex payroll and workforce management in stand-up economy LOGISTICS HOTELS & AGED & ACCOMMODATION DISABILITY CARE Addressable market i
Slide 22: Unique all-in-one workforce management system
Unique all-in-one workforce management system Our all-in-one cloud offering is differentiated, meeting customer needs and driving growth Employee Experience Optimised Talent Offering With the backdrop of a competitive talent market, Greatly enhanced recruitment and employers are seeking advantages t
Slide 23: Big wins are increasing our penetration of hotels and accommodation sector
Big wins are increasing our penetration “There are several reasons why of hotels and accommodation sector we chose to opt in for an all-in- one payroll and HR system – we Example of industry vertical strategy in action showing strong results wanted a system that was cost- effective, cloud based, eas
Slide 24: Sustainable revenue growth
Sustainable revenue Highlights growth Revenue growth of 15.8% to $23.5m with Software revenue growing at 20.7% driven by new customer wins from all-in-one platform, and significant upgrades from existing customers. Contribution of PhoenixHRIS was $0.3m in FY22. $ MILLIONS Average revenue per new cus
Slide 25: Education & Work Pathways
Education & Work Pathways FY22 Full Year Results 25
Slide 26: ReadyTech delivering against growing education technology market needs
ReadyTech delivering against EXPANSION OF READYTECH'S UNIQUE EDUCATION growing education technology OPEN ECOSYSTEM market needs • Complement ReadyTech's core and mission-critical Student Management System with innovative EdTech community technology partners. Demand for global EdTech is forecast • De
Slide 27: The next generation student management system
The next generation student management system Our product differentiators and why we are winning customers in a sector ready for change Ecosystem Partnerships First push into open ecosystem partnerships strategy, offering interoperability, new product value and STUDENT revenue share opportunities fo
Slide 28: Expanding customer base with key enterprise wins
Expanding customer base with key enterprise wins Enterprise Enterprise State Training Authority Student Management System Student Management System VET Administration Records System Enterprise training institute specialising in Australia’s largest employment services provider, Largest State Training
Slide 29: Revenue and earnings both growing strongly
Revenue and earnings both Highlights growing strongly Revenue growth of 17.3% to $31.0m on a like-for-like** basis, driven by substantial new business and upsell of partner learning management system. Revenue contribution of AVAXA was $1.7m. $ MILLIONS Strengthening recurring revenue base of $26.2m
Slide 30: Long term outlook
Long term outlook Well positioned for continued growth ReadyTech increases its FY26 organic revenue target to over $160m which incorporates the expected contribution of IT Vision. FY22 Full Year Results 30
Slide 31: FY23 outlook
FY23 outlook Before the contribution of IT Vision, for FY23 ReadyTech expects: • Organic revenue growth in the mid-teens. • $2.0m incremental revenue contribution of FY22 acquisitions. • EBITDA margin in the range of 35% to 36%, excluding the impact of LTIP. IT Vision 11-month contribution in FY23 i
Slide 32: Key take-outs
Key take-outs ROBUST & GROWING EXPANSION OF CHANNEL PRODUCT-MARKET FIT FOCUSED BUSINESS PIPELINE PARTNER STRATEGY ON ENTERPRISE Sizeable new business high conviction Focus on channel partner network strategy Investment in R&D continues to be strong pipeline of $25.0m annualised subscription to deliv
Slide 33: Disclaimer
Disclaimer This presentation has been prepared by ReadyTech Holdings Limited for professional investors. The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The informa
Slide 34: For more information
For more information: Ronn Bechler Automic Group t. +61 400 009 774 e. ronn.bechler@automicgroup.com.au About ReadyTech ReadyTech is a leading provider of mission-critical SaaS for the education and training, workforce management, government and justice sectors. Bringing together the best in people