Spacetalk Limited · ASX:SPA
Spacetalk — Investor Presentation (April 2023)
20 slides from Spacetalk's investor presentation, Apr 26, 2023
Slide 1: Q3 FY23 Update
Q3 FY23 Update Continued focus on business reset to enable sustainable future growth. April 2023 Spacetalk Ltd. (ASX:SPA) spacetalk.co CONNECTED FAMILIES • CONFIDENT KIDS • SAFE SENIORS
Slide 2: Important notice
Important notice This presentation has been prepared by Spacetalk Ltd. (“Spacetalk,” or “Company,” or “SPA”). Information contained in this presentation: o Is intended to be general background information only, and is not intended that it be relied upon as advice to investors or potential investors
Slide 3: Building for the future, Financial highlights, Business priorities, Risks
1 Building for the future 2 Financial highlights 3 Business priorities 4 Risks
Slide 4: Building for the Future
® Building for the Future O sPAc=TALK
Slide 5: Q3 cash position improved with neutral free cash flow and continued business reset
Q3 - Cash position improved with neutral free cash flow and continuation of the business reset to achieve sustainable future growth. Important milestones achieved as well as key leadership team appointed: • Q3 FY23 Highlights: • Critical steps actioned to reduce annualised cost and complexity. • Imp
Slide 6: Critical steps actioned to reduce annualised cost and complexity
Critical steps have also been actioned to reduce annualised cost and complexity Future growth will be anchored to a strategic plan to be released to ASX no later than Wednesday 10 th May 2023. Already underway/work-in-progress Preview of refreshed Spacetalk strategy • Paramount focus on profitabilit
Slide 7: Financial highlights
© Financial highlights O sPAC=TALK
Slide 8: Q3 Free Cash Flow, Cash in bank, ARR
Q3 Free Cash Flow Cash in bank ARR $0m $5.3m $7.8m Excludes one off non- recurring restructuring costs +26% vs 2Q +47% wearables PCP -10% Schools PCP Q2 2023: $0.4m Q2 2023: $4.2m Q2 2023: $7.5m Unaudited results
Slide 9: Cash generation momentum sustained
Cash generation momentum sustained o Positive Q3 cash position, with neutral free 1 cash flow of $0 million, normalised for $0.6 Free cash flow by Quarter ($million) million of non-recurring, one-off 1.0 restructuring costs 0.5 0.0 0.4 0.0 o Cash generation improvement versus prior corresponding per
Slide 10: Favourable mix - shift to recurring revenue
Favourable mix - shift to recurring revenue Revenue Mix by Quarter o Growth in App and JumpySIM revenue is a favourable Devices Schools App JumpySim mix-shift, notwithstanding lower Q3 revenue overall 100% • Collectively contributing 48% of Q3 revenue 80% (versus 22% PCP) 60% • Higher margin revenue
Slide 11: Annual recurring revenue (ARR) growth in line with strategy focus
Annual recurring revenue (ARR) growth in line with strategy focus o ARR +24% versus PCP, reflecting impact of A R R | ( $ MI LLI ON ) JumpySIM revenue growth App subs + Jumpysim Schools o JumpySIM now represents >20% of ARR (versus 0% PCP) $ 2.5 $ 2.2 o Increase in ARR reflects sharpened focus on $
Slide 12: JumpySIM and App subscriber growth since launch
JumpySIM and App subscriber growth since launch Monthly Subscriptions (App and Jumpy) o Total subscriptions (App and JumpySIM) App Subcribers (LHS) Jumpy Subscribers (LHS) Cash revenue in $000s (App+Jumpy) (RHS) +18% since JumpySIM launch in July 2022 70,000 $600 o Over 11,000 JumpySIM subscriptions
Slide 13: Business priorities
© Business priorities O sPAC=TALK
Slide 14: Q4 focus
Q4 focus Successful launch of new Adventurer 2 watch (targeting mid-May) 01 Continued sell out of Adventurer 1 inventory 02 03 Reset retail margins & secure new channels Strategy update with Investors 04 No later than Wednesday 10th May 2023 Ongoing reduction of costs and complexity 05
Slide 15: Risks
© Risks O sPAc=TALK
Slide 16: Material Business Risks to Strategy and Financial Performance
Material Business Risks to Strategy and Financial Performance The Group proactively identifies and manages material risks that may impact the success of the Group’s (also referred to as “Company”) strategy and future financial performance. The principles and approaches for the Group’s risk managemen
Slide 17: Material Business Risks to Strategy and Financial Performance
Material Business Risks to Strategy and Financial Performance Risk Type Risk Climate Risk There are a number of climate-related factors that may affect the operations and proposed activities of the Company. The climate change risks particularly attributable to the Company include: (a) the emergence
Slide 18: Material Business Risks to Strategy and Financial Performance
Material Business Risks to Strategy and Financial Performance Risk Type Risk Reliance on key personnel The responsibility of overseeing the day-to-day operations and the strategic management of the Company depends substantially on its senior management and its key personnel. There can be no assuranc
Slide 19: This announcement has been authorised by the Spacetalk Board
This announcement has been authorised by the Spacetalk Board Spacetalk Ltd. (ASX:SPA) is a global technology provider of secure communication solutions for families to stay connected and protected. Spacetalk’s range of all-in-one smartphone GPS watches for children (Spacetalk KIDS and Spacetalk ADVE
Slide 20: CONNECTED FAMILIES • CONFIDENT KIDS • SAFE SENIORS
CONNECTED FAMILIES • CONFIDENT KIDS • SAFE SENIORS