Ai-media Technologies Limited · ASX:AIM
Ai-media Technologies — FY2024 Earnings Presentation
33 slides from Ai-media Technologies's earnings presentation, Aug 29, 2024
Slide 1: FY24 Results Presentation
FY24 Results Presentation 29 August 2024 AI-Media Technologies Limited (ASX: AIM)
Slide 2: CEO message and FY25 strategic pillars
“ We successfully grew our technology revenue by 37%, driven by the scaling of our LEXI solutions, iCap network monetization, and encoding revenue streams. This increase in higher margin revenue led to a 24% increase in EBITDA to reach $4.1 million. Our accomplishments this year have set a strong fo
Slide 3: Continued success in executing on transformation strategy
Continued success in executing on transformation strategy to grow technology revenue at higher margins 100.0 Revenue composition ($m) and gross profit margin (%) 35% 70% 90.0 64% 60% Tech revenue 80.0 60% CAGR 55% 70.0 66.2 50% 61.8 59.8 33.3 60.0 Targeting >80% 37.8 41.8 40% 50.0 40.0 30% Technolog
Slide 4: FY24 financial highlights
FY24 financial highlights Total revenue1 Total gross margin Tech gross margin EBITDA $66.2m 64% 85% $4.1m 7% 4% 1% 24% (FY23: $61.8m) (FY23: 60%) (FY23: 84%) (FY23: $3.3m) Tech revenue2 Tech gross profit Cash balance3 Operating cash flow $32.9m $28.0m $10.9m $3.6m 37% 39% $6.1m 3% (FY23: $24.0m) (FY
Slide 5: AI-Media's unique ecosystem
AI-Media's unique ecosystem Industry leading live captioning platform, providing customers with the only fully integrated solution 1 2 3 4 Video Input Encrypted Encoding Real-time Captioning Captioned Video Output Encoders and iCap network used by both customers and competitors Live or recorded Clou
Slide 6: AI solutions embedded into customer workflows
AI solutions embedded into customer workflows World leading captioning network, infrastructure and solutions ✓ Offered as cloud software or ✓ Scalable encrypted cloud-based ✓ Proprietary speech recognition hardware network with hourly charging solution implemented ✓ Pairs captions to video sources ✓
Slide 7: AI-Media at a glance
AI-Media at a glance World leading captioning network, infrastructure and solutions providing customers with the only fully integrated solution Americas EMEA APAC KEY CORE SOLUTIONS SEGMENTS Encoders Broadcast 62% of FY24 revenue iCap network Government 4% of FY24 revenue Enterprise LEXI solutions 3
Slide 8: FY24 regional revenue breakdown
FY24 regional revenue breakdown US broadcast at leading edge of tech transition 2% 14% 16% 26% 10% $43.3m $18.2m $4.8m 0% 74% 74% 84% Technology Transition Revenue Services Americas APAC EMEA • Achieved significant • Regional priority is to grow • Increase in technology transformation of the tech cu
Slide 9: Operational update
Operational update Al MEDIA >
Slide 10: Sustained growth in iCap and LEXI continues
Sustained growth in iCap and LEXI continues iCap network usage (millions of minutes) LEXI usage (millions of minutes) • From FY21 to FY24, usage of the iCap network grew at a CAGR of 18% and LEXI 116.8 solutions usage grew at a CAGR of 77% 103.8 • LEXI revenue grew by 40% to $11m from FY23 to FY24 8
Slide 11: FY24 product milestones achieved
FY24 product milestones achieved FY24 general & admin expenses include ~$7.5 million invested in Product Development and Engineering, delivering the below benefits across AI-Media’s high growth technology products: Encoding, iCap and LEXI Encoding iCap Network & Cloud LEXI AIM’s competitive moat beg
Slide 12: FY24 operational highlights
FY24 operational highlights AI-Media grew all technology products and realised OPEX savings from Services transition Encoding iCap LEXI Services Transition • Hardware revenue grew • 100% of iCap traffic now • SaaS & Support revenue • Transition away from legacy 40% YoY (FY24 $12.8m vs being monetise
Slide 13: Further LEXI growth driven by cross-selling activities
Further LEXI growth driven by cross-selling activities AIM continues to increase average revenue from top customers by cross selling new complimentary solutions Case study 1: Case study 2: Case study 3: Top 5 US Broadcaster Major US Sports League Fortune 100 Company Annual Spend: $0.9m Annual Spend:
Slide 14: FY24 financials
FY24 financials Al MEDIA >
Slide 15: Summary FY24 financials
Summary FY24 financials Strong results driven by 37% tech revenue growth at margins >80% A$m FY24 FY23 Variance Growth % 37% Tech revenue growth, underpinned by scaling of LEXI Tech revenue 32.9 24.0 9.0 37% solutions, iCap network monetisation and other software Services revenue 33.3 37.8 (4.5) (12
Slide 16: Investment in sales and product are paying off
Investment in sales and product are paying off Sales expenses as a portion of revenue YoY • Overall expenditure increased by 19% 45.0 19% 13% from FY23 to FY24 18% 40.0 17% • Sales & marketing expenditure 15% 16% increased by ~36% and includes a 35.0 15% significant investment in new sales 14% 12.5
Slide 17: Cash flows bridge
Cash flows bridge ($m) Operating CF=$3.6m (1) (2) (1) $8.1m final payment for EEG and ACS acquisitions paid in H1 FY24 (2) Payments for property, plant and equipment, Payments for Intangibles, Repayment of Lease liabilities 17 Note: Totals may not add up precisely due to rounding
Slide 18: Strategy & outlook
Strategy & outlook Al MEDIA >
Slide 19: AI-Media's Total Addressable Market
AI-Media's Total Addressable Market Aiming to extend current leadership from live closed captioning into other AI-powered language services Language Services Market Size (Global, 2023) The broader global language services market includes Text-to-text services (translation, transcreation) and Speech
Slide 20: FY25 growth priorities
FY25 growth priorities Encoders everywhere Grow iCap Network LEXI Toolkit Growth Services Transition • Targeting new territories • Increase encoder New AI-driven media • Continue transition of penetration to grow iCap solutions driven by existing human services • Expansion into new user base Broadca
Slide 21: Upcoming product launches enable AIM to strengthen leadership
Upcoming product launches enable AIM to strengthen leadership position in captioning & launch into broader LSM LEXI Live Voice Dubbing Generative AI Topic Models Improved Latency • Iteration on NAB demo, • Learning from external • Reduce live translation expect to be able to show sources (web sites,
Slide 22: Market expansion priorities by region and segment
Market expansion priorities by region and segment Broadcast Government Enterprise • Target existing customer base to • Target broadcast divisions within • Transition education market to increase LEXI revenue government organizations to sell technology infrastructure and LEXI • Refresh cycles of old
Slide 23: Al MEDIA >
Al MEDIA >
Slide 24: Additional information
Additional information Al MEDIA >
Slide 25: Profit & loss statement
30-Jun-24 30-Jun-23 Var ($m) ($m) ($m) Revenue 66.2 61.8 4.5 Cost of sales (23.8) (24.9) 1.1 Gross Profit 42.5 36.9 5.6 Other income - 0.5 (0.5) Operating expenses (38.4) (34.0) (4.3) Profit & loss EBITDA 4.1 3.3 0.8 statement Depreciation and amortisation (4.4) (4.9) 0.5 EBIT (0.3) (1.6) 1.3 For th
Slide 26: Balance sheet
30-Jun-24 30-Jun-23 Var ($m) ($m) ($m) Cash and cash equivalent 10.9 17.0 (6.1) Trade receivables 10.7 10.5 0.2 Other current assets 5.2 3.5 1.7 Total current assets 26.8 31.0 (4.2) Property, plant and equipment 4.9 4.5 0.3 Intangibles 56.2 59.3 (3.0) Other non-current assets 5.3 6.0 (0.7) Total non
Slide 27: Cash flows
30-Jun-24 30-Jun-23 Var ($m) ($m) ($m) Receipts from customers (incl. of GST) 73.3 67.0 6.3 Payments to suppliers and employees (incl. (69.6) (63.6) (5.9) of GST) Interest received 0.2 0.1 0.1 Other revenue - (0.5) - Interest and other finance costs paid (0.2) (0.4) 0.2 Income taxes paid (0.2) - (0.
Slide 28: Successfully leveraging the EEG acquisition in May 2021
Successfully leveraging the EEG acquisition in May 2021 80.0 64% 65% 60% 75.0 70.0 55% 65.0 66.2 55% 61.8 60.0 55.0 59.8 ~11% 41% 45% Revenue CAGR 50.0 45.0 48.7 40.0 35% 35.0 30.0 25.0 25% 20.0 15.0 15% 10.0 4.1 5.0 1.1 3.3 ~93% 0.0 5%EBITDA CAGR1 (5.0) (8.7) (10.0) (15.0) -5% FY21 * FY22 ** FY23 F
Slide 29: Management
Management Strong and qualified management team to drive product development and commercialisation strategy TONY ABRAHAMS DONNA REID JAMES WARD BILL MCLAUGHLIN JOHN BIRD Co-Founder and CEO Chief Operating Officer Chief Sales Officer Chief Product Officer Chief Financial Officer • Tony co-founded AI-
Slide 30: Board
Board Highly skilled and experienced senior leadership team with decades of experience JOHN MARTIN TONY ABRAHAMS ALISON LOAT CHERYL HAYMAN BRENT CUBIS Non-Executive Chair Co-Founder and CEO Non-Executive Director Non-Executive Director Non-Executive Director (appointed February 2024) • John joined t
Slide 31: Environmental Social and Governance initiatives (ESG)
Environmental Social and Governance initiatives (ESG) AI-Media’s key ESG initiatives focus on continuous improvement Environmental Social Governance • A significant contributor to AIM’s • Our core products provide • Board Diversity and Board carbon footprint has been flights access and inclusion sol
Slide 32: Disclaimer
Disclaimer This presentation (Presentation) contains summary information about AI-Media Technologies actual results, performance and achievements to differ materially from statements in this Limited and its subsidiaries (the Company or AI-Media) based on information as at 29 August Presentation. For
Slide 33: Further Information
Further Information: AI-Media Technologies Lisa Jones Company Secretary investorrelations@AI-Media.tv NWR Communications Melanie Singh Investor Relations melanie@nwrcommunications.com.au 33