Cluey Ltd · ASX:CLU
Cluey — H1 FY24 Earnings Presentation
33 slides from Cluey's earnings presentation, Mar 5, 2024
Slide 1: Cluey Ltd H1 FY24 Results
Cluey Ltd H1 FY24 RESULTS 5 MARCH 2024
Slide 2: Agenda
Agenda 1. Welcome Mark Rohald, Deputy Chairman Mark Rohald Matteo Trinca Deputy Joint CEO Chairman 2. H1 FY24 Financial Performance Greg Fordred, CFO 3. Business Update & Key Achievements Matteo Trinca, Joint CEO 4. Strategy & Outlook Matteo Trinca, Joint CEO Trevor McDougall Greg Fordred Joint CEO
Slide 3: H1 FY24 Half Year Results
H1 FY24 Half Year Results
Slide 4: H1 FY24 Snapshot
Cluey’s focus on driving to profitability delivered improved unit economics. H1 FY24 Snapshot Significant cost savings delivered a 48% improvement in Underlying EBITDA and establish the foundation to move to the next phase of our longer-term profitable growth strategy. >276,000 13% Student sessions
Slide 5: Improvement in Cluey CAC
Improvement in Cluey CAC CAC PER NEW STUDENT & PAYBACK IN NUMBER OF SESSIONS TO RECOVER CAC $1,500 100 $1,371 90 $1,300 83 80 Key Metrics & Highlights $1,100 H1 FY24 Variable CAC per new 70 student reduced to $292, an $900 improvement of 16% on PCP, $787 60 and an improvement of 17% on FY23 $700 50
Slide 6: Ongoing improvement in CAC Payback
Ongoing improvement in CAC Payback $1,500 MONTHS TO RECOVER CAC INVESTMENT (AFTER TUTOR/INSTRUCTOR COSTS) 70 60 $1,500 60 Performance Drivers & Results $1,500 50 45 Prioritisation of investment in Code Camp $1,499 40 customer acquisition due to shorter $1,499 payback period and focus on driving to 3
Slide 7: Improvement In Cluey Gross Profit Margin
Improvement In Cluey Gross Profit Margin PER SESSION METRICS AND MARGIN (%) $70 70% $66 $63 $64 Margin Maximisation Continuing $62 $60 $58 60% 58% 57% 54% 53% In H1 FY24, gross profit margin increased 3% to 58.3%, $50 $50 50% from 56.8% in the PCP 48% $40 40% $34 33% $30 $30 $30 $29 $28 30% In H1 FY
Slide 8: Improvement In Cluey Operating Leverage
Improvement In Cluey Cluey’s focus on driving to profitability delivered a 27% decrease in H1 FY24 operating costs to $13.3 million, compared to $18.2 million in the PCP. Operating Leverage Operating costs as a % of revenue decreased from 93% of revenue in FY23 to 78% in H1 FY24. OPERATING COSTS H1
Slide 9: Improvement In Cluey Financial Performance
Improvement In Cluey Focus on driving to profitability delivered a 48% improvement in Financial Performance Underlying EBITDA. SUMMARY CONSOLIDATED FINANCIAL RESULTS – H1 FY24 $’Millions H1 FY23 H1 FY24 Percentage Change Revenue 20.8 17.0 -18% Cost of sales (9.0) (7.1) -21% Gross profit 11.8 9.9 -16
Slide 10: H1 FY24 Underlying EBITDA
H1 FY24 Underlying EBITDA Focus on driving to profitability delivered a 48% improvement in Underlying EBITDA. UNDERLYING EBITDA BRIDGE – H1 FY23 TO H1 FY24 Notes: 1. Underlying EBITDA excludes share-based payment expense of $0.3m in H1 FY24 and $0.7m in H1 FY23 and one-off restructuring payments of
Slide 11: Quarterly Underlying EBITDA
Quarterly Underlying Cluey’s focus on driving to profitability delivered a 55% improvement in Underlying EBITDA in Q2 FY24 on PCP. EBITDA QUARTERLY UNDERLYING EBITDA – FY24 v FY23 & FY22 In FY23, Cluey shifted focus from FY22 FY23 FY24 rapid growth to achieving profitability 0 Q1 Q2 Q3 Q4 -1 Each qu
Slide 12: Business Update & Key Achievements
Business Update & Key Achievements
Slide 13: H1 FY24 Overview
H1 FY24 Overview Continued focus on implementing our core strategy of lowering our cost base and improving gross margin as a platform for profitable revenue growth. Benefits of product and technology investments resulting in reduced FTE and improvements in CAC, LTV and Gross Margin MAINTAIN FINANCIA
Slide 14: Bringing it all together to create connected experiences
Integrating learning experiences across Bringing it all together to platforms through a unified website and brand architecture, lower barriers to entry for create connected experiences prospective customers, and expanding our range of programs to reach diverse audiences. The newly released Customer
Slide 15: New pricing plans balance loyalty rewards with flexible access
New pricing plans balance loyalty The release of our new pricing plans has strengthened our business model by offering convenient options to price- rewards with flexible access sensitive customers and to those requiring scheduling flexibility. New pricing plans offer a range of payment options to su
Slide 16: Released first GPT-based application
Released first GPT-based At Cluey, data has always been core to optimising tutoring and learning. We are now using GPT integrations to optimise insights and application communication. Provides real-time insights into Tutors are fully updated on 1 Customer Hub every student’s current state 3 student
Slide 17: Restructured cost-base to drive to profitability in FY25
Restructured cost-base Realised $18m in annualised cost savings from the to drive to profitability in FY25 FY23 peak. $7.6m annualised savings in media $9.1m annualised savings realised in employment expenses spend realised since FY23 peak (-62% vs $1.8m annualised savings in since FY23 peak (-41% v
Slide 18: Strategy & Outlook
Strategy & Outlook
Slide 19: Returning to Growth
Our resolute focus on achieving profitability has focused on Returning to Growth lowering our cost base and improving operating margin. Once we achieve profitability, our focus will shift to sustainable growth and generating free cash flow. Strategic Growth Roadmap Scaling profitably Expand distribu
Slide 20: Realise immediate returns through strong marketing ROI
Our strategy has focussed on streamlining Realise immediate returns operations, leading to substantial overhead reductions and a conservative cash management approach. These measures have transformed Cluey through strong marketing ROI into a lean, financially disciplined organisation poised for the
Slide 21: Our hybrid model provides further expansion opportunities
Our hybrid model provides further Cluey Learning (online) and Code Camp (primarily F2F) provide the platform for expanding our expansion opportunities omnichannel strategy. Other Expansion Existing Verticals Opportunities Online Schools Holidays Omnichannel Our core know-how and Achieved rapid growt
Slide 22: School and Holiday programs can benefit from partnering with complementary school providers
School and Holiday programs can We are actively pursuing strategic partnerships with school service providers, benefit from partnering with broadening our reach and establishing our offerings complementary school providers more comprehensively within the school ecosystem. Identified partnership oppo
Slide 23: Exploring non-organic strategies to expand internationally
Exploring non-organic strategies to Range of market entry strategies to unlock international growth potential expand internationally with low/no impact on local Australian operations. Level of financial commitment, risk, control and profit potential Licensing Joint Ventures Direct Investment Code Ca
Slide 24: Q&A
Q&A
Slide 25: Appendix & Business Overview
Appendix & Business Overview
Slide 26: Underlying EBITDA
Underlying EBITDA Reconciliation of Statutory loss to Underlying EBITDA ($’000) H1 FY23 H1 FY24 Statutory loss before income tax (8,606) (6,876) + Amortisation of acquired intangibles 583 583 + Depreciation and amortisation – other 747 2,529 + Net Finance costs (116) (162) EBITDA (7,392) (3,926) Add
Slide 27: Positive Contributions by Cluey Learning & Code Camp
Investment in technology & product Positive Contributions driving enhanced service and cost savings delivers a 48% improvement in Underlying EBITDA by Cluey Learning & Code Camp SUMMARY CONSOLIDATED FINANCIAL RESULTS – H1 FY24 H1 FY24 SUMMARY H1 FY23 H1 FY24 YoY • Both business units were profitab
Slide 28: Gross Profit and Gross Profit Margin
Gross Profit and Gross Profit Margin GROSS PROFIT ($) AND GROSS PROFIT MARGIN (%) H1 FY23 $ H1 FY24 $ H1 FY23 % H1 FY24 % Margin Maximisation Continuing 14 60 .0% 59.5% 59 .0% In H1 FY24, whilst Cluey Group’s Gross Profit decreased by 12 11.8 16% to $9.9 million, Gross Profit Margin increased by 3%
Slide 29: Balance Sheet
$’Million 30-Jun-23 31-Dec-23 Balance Sheet Cash and term deposits at bank Other current assets 14.7 1.1 8.0 1.3 As of 31 December 2023 Total current assets 15.8 9.3 Plant and equipment 0.1 0.1 Right-of-use assets 0.4 0.2 Intangible assets 9.8 7.8 Total assets 26.1 17.4 Trade and other payables 4.4
Slide 30: The Cluey Learning Model
Cluey’s integrated online tutoring model supports the learning of The Cluey Learning Model school students in Years 2 – 12 across Mathematics, English, Chemistry, Physics and Biology. Delivered 1:1 and in small groups in Australia and New Zealand Comprehensive learning Comprehensive learning plan pl
Slide 31: What Code Camp Does
Code Camp is a leading provider of holiday and after- What Code Camp Does school coding and digital skills programs for school children in Australia and the UK. Delivered in-person and online. TEACH KIDS TO CODE JavaScript HTML, CSS and jQuery Game design, digital storytelling, problem solving, webs
Slide 32: 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 33: Level 2, 117 Clarence Street, Sydney NSW 2000
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