Jcurve Solutions Limited · ASX:JCS
Jcurve Solutions — H1 2016 Earnings Presentation
15 slides from Jcurve Solutions's earnings presentation, Feb 23, 2016
Slide 1: 2016 Half Year Results
For personal use only 2016 HALF YEAR RESULTS 23 February 2016 ASX:JCS
Slide 2: Table of Contents
TABLE OF CONTENTS For personal use only HALF YEAR HIGHLIGHTS 3 STRATEGY 4 GROUP FINANCIAL SUMMARY 5 INVESTING TO GROW THE BUSINESS 6 MAXIMISING VALUE FROM ITEMS 12 2
Slide 3: Half Year Highlights: Continued Growth for JCurve
HALF YEAR HIGHLIGHTS CONTINUED GROWTH FOR JCURVE For personal use only REV. MIX CHANGE CHURN LOWER AT JCURVE SOFTWARE CONTINUES: JCURVE 8.6% (-1.4pp since MRR +29% SOFTWARE +42%, June ‘15) TEMS -27% INCREASED IMPROVING INDUSTRY INVESTMENT IN CUSTOMER MIX: RECOGNITION FROM CULTURE AND BRAND VALUE PER
Slide 4: We Are Focused on Three Opportunities
STRATEGY WE ARE FOCUSED ON THREE OPPORTUNITIES For personal use only STRATEGIC OPPORTUNITIES OBJECTIVES TIME FRAME Maximising value from the • Drive productivity Short term TEMs business • Harvest cash to fund growth in JCurve • Subscriber growth • Build a large and sustainable base of Investing to
Slide 5: Group Financial Summary
GROUP FINANCIAL SUMMARY Half Year ended 31 December For personal use only $ millions 2015 2014 % change Highlights Revenue 4.9 6.0 (19%) EBITDA loss (3.2) (5.4) (40%) • Revenue mix change includes increased JCurve Software revenue +42% to $2.7m, lower TEMS Loss before income tax (3.2) (5.5) (41%) re
Slide 6: Investing to Grow the JCurve Business
INVESTING TO GROW THE JCURVE BUSINESS For personal use only About JCurve Tailwinds Big software for small business Cloud technology adoption Growing trade liberalisation driving JCurve ERP is the economical an increase in the large market size of wholesale distributors all-in-one solution for SMEs S
Slide 7: JCurve's Competitive Advantages
JCURVE’S COMPETITIVE ADVANTAGES For personal use only Made for small business Scalable Exclusive license with NetSuite The last software a growing for small business in A & NZ business will ever need Simplify Complexity Empowers growth Streamlines and automates Delivers improved sales and end-to-end
Slide 8: Investing to Grow the JCurve Business
INVESTING TO GROW THE JCURVE BUSINESS For personal use only “ CULTURE BRAND JCurve is our home base and has allowed us to compete on the world § New talent and § Launched new stage. – AUDIOFLY capability recruited customer case studies “ § Recognising our § Launched new website The dashboard alone h
Slide 9: Who Are We Selling To?
WHO ARE WE SELLING TO? For personal use only Our target market is growing Wholesale & Distribution businesses in Australia and New Zealand, typically employing less that 20 employees. There are 79,000 such businesses in Australia. 5 – 20 EMPLOYEES LOWER CHURN AND HIGHER 1–4 VALUE EMPLOYEES 58,000 21
Slide 10: Positive Customer Mix Change
POSITIVE CUSTOMER MIX CHANGE: ACQUIRING AND RETAINING HIGHER VALUE CUSTOMERS For personal use only NUMBER OF AVERAGE MONTHLY CHURN SUBSCRIBERS 6 4.0% % CUSTOMER CHURN % MRR CHURN 3.0% 2016 2.0% 3 1.0% 0.0% 0 DEC-14 MAR-15 JUN-15 SEP-15 DEC-15 2011 2013 2015 10
Slide 11: JCurve Recurring Revenue Growth
JCURVE RECURRING REVENUE GROWTH For personal use only JCURVE RECURRING REVENUE - ANNUALISED $314K $6,000,000 +29% 2016 2015 $244K $4,000,000 2014 2013 2012 $2,000,000 2011 2010 DEC ‘14 DEC ‘15 2009 $0 2009 2010 2011 2012 2013 2014 2015 2016 MONTHLY RECURRING (forecast) REVENUE 11
Slide 12: Maximising Value from TEMS
MAXIMISING VALUE FROM TEMS For personal use only TEMS Headwinds 1H’16 Initiatives TEMS TELECOM EXPENSE MANAGEMENT Productivity: reduced ‘All you can eat’ and large headcount in TEMS has buckets of included data and enabled group opex to roaming from telecom carriers decrease 21% (excl. Automates the
Slide 13: 2016 Outlook and Product Trends
2016 OUTLOOK AND PRODUCT TRENDS For personal use only MEASURE FY16 OUTLOOK FY16 REVISED FY15 ($ MILLIONS) (issued Nov ‘15) OUTLOOK JCurve Solutions Revenue $11.3m Range: $10m to $10.5m Range: $9.5m to $10.5m EBITDAexcl. ($0.9m) Range: ($0.5m to $0.2m) Unchanged Impairments loss loss* NPAT excl. ($0.
Slide 14: Conclusion
CONCLUSION For personal use only JCurve software Productivity is We have a plan business is helping to to grow and are performing well maximise value investing in our and should from the TEMS people, our brand, continue to grow business and our customers strongly for sustainable growth 14
Slide 15: Contact Details
CONTACT DETAILS For personal use only Stephen Canning CEO JCurve Solutions e. stephen.canning@jcurve.com.au www.jcurvesolutions.com 15