Slide 1: Interim Results Presentation
serko Interim Results Presentation 20 November 2019
Slide 2: Disclaimer
DISCLAIMER • This presentation has been prepared by Serko Limited. All information is current at the date of this presentation, unless stated otherwise. All currency amounts are in NZ dollars unless stated otherwise. • Information in this presentation • is for general information purposes only, and
Slide 3: CEO Welcome
CEO Welcome be serko
Slide 4: Agenda
AGENDA Financial Strategic Outlook CEO Welcome Highlights Updates Statement 4 |
Slide 5: FY20 Financial Highlights
FY20 Financial Highlights The FY20 Half Year Results to 30 September 2019 are unaudited. The half year results have been prepared in accordance with Ne w Zealand equivalents to International Financial Reporting Standards including the adoption of IFRS 16 (Leases) from 1 April 20 19. All other accoun
Slide 6: Performance Dashboard – Half Year FY20
PERFORMANCE DASHBOARD – Half Year FY20 FY20 (H1) VS FY19 (H1) - Unaudited PROFIT (LOSS) REVENUE ACTIVITY COSTS ($0.9m) 29% 38% 29% 35% 4.5% 132% 46% NET LOSS AFTER OPERATING RECURRING TOTAL PEAK ATMR3 TRAVEL R&D COSTS4 OPERATING TAX REVENUE REVENUE2 INCOME BOOKINGS EXPENSES $1.4m $14.7m $13.3m $15.2
Slide 7: Net Profit Summary / EBITDAF Reconciliation
NET PROFIT SUMMARY/ EBITDAF RECONCILATION Net Profit Summary H1 FY20 H1 FY19 change change FY19 6 months 6 months 12 months EBITDAF Reconciliation $000 $000 $000 % $000 • Operating Revenue of $14.7m up Operating Revenue 14,671 11,350 3,321 29% 23,361 29% Other income (including Grants) 541 465 76 16
Slide 8: Revenue Analysis
REVENUE ANALYSIS H1 FY20 H1 FY19 FY19 Revenue and Other Income change change 6 months 6 months 12 months by Type $000 $000 $000 % $000 • Recurring revenue up 38% Travel platform revenue 9,243 7,721 1,522 20% 15,948 • Travel platform revenue up 20% Expense platform revenue 2,990 884 2,106 238% 2,710
Slide 9: Operating Expenses
OPERATING EXPENSES • Operating Costs increased as a Operating Expenses H1 FY20 H1 FY19 change change FY19 6 months 6 months 12 months result of increased head count and $000 $000 $000 % $000 costs associated with expansion into NORAM markets and include InterplX operating costs in the Selling and ma
Slide 10: Research & Development
RESEARCH & DEVELOPMENT R&D Costs – Expensed H1 FY20 H1 FY19 change change FY19 6 months 6 months 12 months $000 $000 $000 % $000 • Total R&D costs increased by $5.1m over prior year due to investment Total R&D costs (including amounts capitalised) 8,921 3,843 5,078 132% 9,165 into market requirement
Slide 11: Strategic Updates
Strategic Updates be serko
Slide 12: Serko Strategy
SERKO STRATEGY Offer premium, integrated global solutions Grow ARPB by offering Expand into new territories increased content and through strategic alliances and moving customers to Zeno reach the unserved SME market ARPB : Average Revenue Per Booking is a non-GAAP measure. 12 |
Slide 13: Serko Strategic Goal: $100 Million Per Annum
SERKO STRATEGIC GOAL $100 MILLION PER ANNUM $100 million Booking.com Booking.comagreement is expected agreement is expectedto to assist Serko assist Serkoinin achieving it’s medium-term achieving its medium-term aspirational aspirationaltarget 1 1of target of NZ$100 million NZ$100 annualised million
Slide 14: Agreement with Booking.com
AGREEMENT WITH BOOKING.COM • As announced on 24 October 2019, concurrent with Booking Holdings’ cornerstone investment in Serko, Booking.com has signed commitments to expand its existing agreement with Serko, so that Booking.com can offer and promote Serko Zeno to its business traveller customers. •
Slide 15: Other Strategic Updates
OTHER STRATEGIC UPDATES • Total travel corporate customers (Serko Online and Zeno) grew by a net 327 over the period. Zeno transaction volumes increased 200% over the same period last year, and over 1,300 corporate customers transacted on Zeno during the six month period to 30 September 2019. Zeno t
Slide 16: Outlook Statement
Outlook Statement be serko
Slide 17: FY20 Outlook
FY20 OUTLOOK • Total Operating Revenue Growth for the full year is expected to be in the range of 20%-40%. However, currency fluctuations and the timing of customer onboarding will be key factors in determining the final result, as previously advised to the market. • In Australasia, growth in ‘same
Slide 18: Q&A
Q&A
Slide 19: Appendices: Company Snapshot, Definitions
Appendices: • Company Snapshot • Definitions
Slide 20: About Serko
ABOUT SERKO FOUNDED IN 2007 Innovative Solutions Market Leader NZX/ASX Listed Serko is a technology company focused on Serko is a leading supplier of travel Serko listed on the New Zealand stock innovative solutions that address the technology solutions for TMCs in Australasia exchange in June 2014.
Slide 21: Serko Products
SERKO PRODUCTS Zeno Travel Zeno Expense Zeno Travel is an Online Zeno Expense automates Booking Tool (OBT) that the process of corporate corporate travellers use to card and out-of-pocket book flights, trains, hotels, expense submission, rental cars and airport reconciliation and transfers in line w
Slide 22: Commercial Model
COMMERCIAL MODEL $ Corporate traveller makes a Booking and other fees booking via Serko Serko charges the TMCs a fee per booking Online/Zeno (which varies based on volume). $ Traveller submits receipts Monthly user fee Year Ended 31 March 2019 using Serko Expense/Zeno Serko Expense customers pay a f
Slide 23: Performance Dashboard – Full Year FY19
PERFORMANCE DASHBOARD – Full Year FY19 FY19 VS FY18 PROFIT (LOSS) REVENUE ACTIVITY COSTS $1.6m 28% 26% 28% 41% 17% 87% 32% NET PROFIT OPERATING RECURRING TOTAL PEAK ATMR3 ONLINE R&D COSTS4 OPERATING AFTER TAX REVENUE REVENUE2 INCOME BOOKINGS EXPENSES $2.6m $23.4m $20.7m $24.6m $26m 4.14m $9.2m $23.3
Slide 24: Historic Measures for Financial Years
HISTORIC MEASURES for financial years (31 March) Selected Operational Metrics FY13 FY14 FY15 FY16 FY17 FY18 FY19 Total revenue growth (%) 27% 39% 55% 27% 9%# 28% 28% Revenue growth – Travel Platforms (%) 41% 12% 62% 49% 8% 23% 20% Total travel booking transactions (000s) 987 1,107 1,588 2,407 2,913
Slide 25: Definitions
DEFINITIONS • Peak ATMR (Annualised Transactional Monthly Revenue) is a non-GAAP measure. Serko uses this as a useful indicator of recurring revenues from Serko products. It is calculated by annualising the combination travel and expense platform monthly revenues for the most recent non- seasonal mo
Slide 26: Thank you
Thank you serko