Aptitude Software Group Plc · LSE:APTD
Aptitude Software — H1 2023 Earnings Presentation
21 slides from Aptitude Software's earnings presentation, Jul 26, 2023
Slide 1: Interim Results
26 July 2023 Interim Results for the six months ended 30 June 2023
Slide 2: Agenda
Agenda Ivan Martin Overview & Highlights Non-Executive Chairman Financial Performance Alex Curran Acting CEO Strategic Growth Drivers Objectives & Outlook Mike Johns CFO Q&A
Slide 3: Aptitude at a glance
Aptitude at a glance Where others see complexity we see possibility £3bn 120 uni que clients i n over 25 countri es We are leaders in Finance digitalization and Subscription Management Subscription Management Finance digitalization solutions solving complex problems for large enterprises (principal
Slide 4: Economic backdrop increases need for finance digitalization
Economic backdrop increases need for finance digitalization Actions undertaken in H1 to steady churn and right size business around growth opportunities and pipeline conversion First Fynapse go-live Growing sales Continued new pipeline from business success successfully achieved strategic partners M
Slide 5: Aptitude key offerings
Aptitude key offerings Now leading with an integrated finance proposition Focus resources Drives efficiencies Simplify our proposition Enable cross sell Plays to our strengths Wide target market Financial Video & Advanced Telecoms Technology Services Print Media Industries Integrated Finance led pro
Slide 6: Financial highlights
Financial highlights Higher than usual churn impacting ARR growth and net retention rate 50 40 30 ARR (£m) 72% Total growth in ARR Proportion of 20 (constant currency) recurring revenue (HY 2022: 10%) (HY 2022: 68%) 10 0 H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 40.0 35.0 28% 30.0 32% Revenue (£m) £49
Slide 7: Financial highlights
Financial highlights Revenue and profit progression, with cost action undertaken to underpin full year profit performance • Revenue growth of 4% and profit growth of 5% from H1 2022 £37.5m £4.2m • Cost action undertaken in H1 2023 to underpin FY 2023 Total revenue Adjusted Operating profitability (H
Slide 8: Transitioning revenue mix
Transitioning revenue mix Growing proportion of higher margin revenue streams Improving margins over time On-Premise Recurring Licences Cloud Native SaaS Legacy SaaS Aptitude Assure services Implementation services Now Next Later 10
Slide 9: Subscription Management
Subscription Management A long-term growth driver as consumer spend confidence improves The opportunity Key differentiators Delivering great customer outcomes Subscription management 1. Extensive global payment reach “Cut operating expenditure (OPEX) Aptitude’s Subscription 2. Modular end-to-end sol
Slide 10: Aptitude Subscription Management at NBCUniversal's hayu
Aptitude Subscription Management at NBCUniversal’s, hayu Flexibility, agility and a suite of powerful features has enabled hayu to expand to 27 territories Benefits delivered: • Reduced cost per acquisition through voucher codes and the ability to experiment with various subscription models and offe
Slide 11: Finance digitalization
Finance digitalization Underpinned by our accounting hub offerings and Microsoft partnership for Fynapse The opportunity Key differentiators Delivering great customer outcomes Finance digitalization 1. Unique best of breed, modular solution $3M saved across hardware and software costs Efficiency, au
Slide 12: Fynapse uniquely placed to meet current and future CFO Drivers
Fynapse uniquely placed to meet current and future CFO Drivers Automate everything Better insights, faster Continuous innovation Fynapse drives full automation of Fynapse solves the data control, quality, Fynapse is at the heart of a fully open finance processes, at pace, regardless of integration,
Slide 13: Aptitude Fynapse
Aptitude Fynapse The single point of 'finance' truth Client Benefits Fynapse – Aptitude’s Finance Management Platform • Rapid implementation time to value & scalable Fynapse Engines • Open architecture Current Engines Future Engines Accounting Rules Captive generative AI • Single point of ‘finance’
Slide 14: Fynapse fully live at T-Mobile
Fynapse fully live at T-Mobile 3rd largest global Telco with 100 million subscribers • Efficient: $3M saved across hardware and software costs “I am looking forward to building on • Automated: Now takes ¼ of the time to launch new products to the value we’ve seen with the market implementation of th
Slide 15: Game changing partnerships
I think it’s a huge game changer! Our global customers need Game changing partnerships an affordable way of connecting data from across different ledgers to subledgers and to create insights and consolidated financial reporting. Georg Glantschnig, VP, Dynamics 365 Fynapse fixes Microsoft Full Micros
Slide 16: 2023 strategic objectives & outlook
2023 strategic objectives & outlook Our investments provide a strong platform for future expansion We continue to drive We see broad We remain a applicability for all incremental resilient business our growth drivers profitable growth We will drive We have driven We will predictable sales pipeline g
Slide 17: Appendix
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Slide 18: Income statement
Income statement Improving revenue quality driving improved profitability HY 2023 HY 2022 FY 2022 (£’000) (£’000) (£’000) Recurring Revenue 26,998 24,423 50,534 Implementation Revenue 10,538 11,700 23,860 Total Revenue 37,536 36,123 74,394 Operating Costs (33,300) (32,121) (66,887) Adjusted Operatin
Slide 19: Cash flow
Cash flow Improving cash flow performance, but affected by regular seasonal working capital cycle in H1 HY 2023 HY 2022 FY 2021 (£’000) (£’000) (£’000) Cash generated from operations (25) (2,995) 5,272 Interest and tax (paid)/received (725) (530) (2,095) Cash flows generated from operating activitie
Slide 20: Balance sheet
Balance sheet Strong balance sheet with cash of £24.5 million and net funds of £12.2 million 30 June 2023 30 June 2022 31 Dec 2022 (£’000) (£’000) (£’000) Goodwill and intangible assets 65,436 68,818 67,126 Property, plant and equipment including right-of-use assets 4,911 4,250 5,103 Trade and other
Slide 21: Board
Board Experienced management team & Board Alex Curran, Acting Chief Executive Officer Alex was appointed to the Aptitude Software Board as Acting CEO in July 2023. Alex joined Aptitude Software in 2008 and she has held several senior roles within the Group including leading the North American busine
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