Xpon Technologies Group Ltd. · ASX:XPN
Xpon Technologies — H1 FY2023 Earnings Presentation
33 slides from Xpon Technologies's earnings presentation, Feb 21, 2023
Slide 1: FY23 Interim Results Presentation
FY23 Interim Results Presentation 21 February 2023
Slide 2: Disclaimer
Disclaimer This Presentation and has been prepared by XPON Technologies Group Limited ACN Certain statements in this Presentation, particularly those regarding possible or assumed 635 810 258 (XPON or the Company). Shares in the Company are listed on ASX (ASX future performance, potential business g
Slide 3: Our mission
Our mission Empower marketing and customer experiences of the future. © 2023 XPON Technologies Group Limited POWERED EXPONENTIALLY | 3
Slide 4: Company overview
Company overview: XPON is a Cloud and MarTech company [ ] and use it We help businesses make sense of their to unlock customer data, exponential growth. © 2023 XPON Technologies Group Limited POWERED EXPONENTIALLY | 4
Slide 5: Scalable complementary offering
Scalable complementary offering Solutions Initially lands a customer by deploying and optimising marketing technologies (MarTech) and advertising technologies (AdTech); leveraging Big Data Analytics (BDA) to improve marketing effectiveness; developing consumer-facing applications and digital experie
Slide 6: Agenda
Agenda 1. Business update 2. Financial results 3. Strategy and outlook 4. Appendix © 2023 XPON Technologies Group Limited POWERED EXPONENTIALLY | 6
Slide 7: Successful land and expand strategy
Successful ʻland and expand’ strategy 19 landed 25 expanded Including: 1 Strong track record of expanding landed corporate & enterprise customers. How XPON typically lands How XPON typically expands ■ Marketing & CX maturity assessment, audit and ■ Consolidation of marketing and customer data with W
Slide 8: Key financial metrics - 1H FY23 comparison
Key financial metrics - 1H FY23 comparison Strong growth continued in 1H FY23 vs. 1H FY22 $ 39% $ % $ 55% 18.2m 8.9m 6.1m 44 1 REVENUE GROSS PROFIT ANNUALISED RECURRING REVENUE (ARR) % 5 ppts $ $1.2m % 9 ppts 69 GROSS PROFIT MARGIN CASH 7.0m 2 99.6 RECURRING REVENUE 1, 3 Note: 1. Have not been subje
Slide 9: ARR growth
ARR growth1,2 Momentum continues with 39% growth YoY. $1.8m H1 FY23 $3.3m H2 FY22 $3.9m H1 FY22 $18.2m $13.1m ARR $3.9m Dec 2022 H2 FY21 ARR Dec 2021 $5.3m ARR Dec 2020 148% growth YoY 39% growth YoY Note: 1. Refer to glossary for definitions 2.Has not been subject to review by auditors. © 2023 XPON
Slide 10: Business updates - H1
Business updates - H1 ■ Appointment of Non-executive Director Jodie Leonard to the Board ■ Appointment of Matt Daniels as Chief Technology and Security officer ■ Inaugural Investor Day event as an ASX-listed entity ■ Consistent quality customer service record, with NPS at/above 85% for the period wh
Slide 11: Global team footprint
Global team footprint XPON reached a global headcount of 1451, in line with United Kingdom talent acquisition strategy Team breakdown Vietnam 1 Australia New Zealand Note: Team breakdown as at 31 December 2022. 1. Includes 14 on-demand remote contractors © 2023 XPON Technologies Group Limited POWERE
Slide 12: Awards and recognition
Awards and recognition XPON was recognised for its high-growth results in Australia: ■ Deloitte Fast50 Rising Star #18 ■ AFR 100 Fast Starter #59 XPON also achieved a number of channel partner milestones, including: Google Cloud Partner ■ Premier reseller Google Marketing Partner: ■ Partner of the Y
Slide 13: Expanded client experience: Flight Centre
Expanded client experience: Flight Centre Survey response rates* 0.1% 50% 6.9% Before After % overall brand uplift FlightCentre, building on its long-standing relationship with XPON, was able to realise significant optimisations in Flight Centre’s marketing technology stack by seamlessly integrating
Slide 14: Strong revenue growth and expanding margins
Strong revenue growth and expanding margins1 Revenue CAGR2 of 37%, gross profit CAGR of 56% ■ Revenue growth - benefiting from successful land and expand strategy ■ Gross profit - benefiting from higher margin product mix ■ Gross profit margin - tracking towards targeted range of 70% - 80% Note: 1.
Slide 15: Strong revenue predictability and margin growth
Strong revenue predictability and margin growth Revenue by type Revenue by region 1H FY23 37% 53% 47% 63% 1H FY22 Recurring vs. 0% non-recurring revenue 9% 1H FY23 91% 1H FY22 100% © 2023 XPON Technologies Group Limited POWERED EXPONENTIALLY | 15
Slide 16: Unit economics
Unit economics1,2,3 Compelling unit economics with exceptional customer and revenue retention underpinned by the successful ʻland and expand’ strategy. % $ $ 99.4 765k 68k $ AVERAGE MONTHLY CUSTOMER RETENTION RATE LIFETIME VALUE PER CUSTOMER CUSTOMER ACQUISITION COST (CAC) 167m % 178 11x 11 mth TOTA
Slide 17: Profit & Loss summary
Profit & Loss summary For half-year ended 31 31-Dec-22 31-Dec-21 Movement % ■ Revenue increased by 44% to $8.9m, assisted December 2022 $'000 $'000 by the benefit of 19 landed customers and 25 Revenue 8,875 6,162 44% expanded customers over the period. Cost of sales (2,748) (2,221) 24% ■ Gross profi
Slide 18: Balance Sheet summary
Balance Sheet summary 31 Dec 22 30 Jun 22 For period ended $’000 $’000 Movement % TOTAL ASSETS Cash and cash equivalents 6,981 8,237 (15%) ■ Cash and cash equivalents balance of $7.0m Trade and other receivables 5,913 5,082 16% representing a net decrease in cash of $1.2m Intangible assets (net) 4,3
Slide 19: Cashflow bridge
Cashflow bridge ■ Operating receipts - $9.4m representing a cash conversion rate of 106% to reported revenue of $8.9m benefitting from timing of payments of annual contract renewals ■ Net decrease in cash of $1.2m to $7.0m from 30 June to 31 December 2022 ■ CAPEX includes the rollout of a new ERP ■
Slide 20: Formula for sustainable growth
Formula for sustainable growth Once-in-a-generation x powered by strong unit economics + = opportunity (LAND) operating leverage ➡ targeting cash flow Using our platforms, technology, and people break-even for full (EXPAND) year FY24 © 2023 XPON Technologies Group Limited POWERED EXPONENTIALLY | 20
Slide 21: Improving operating leverage
Improving operating leverage Headroom available to achieve industry targets for both revenue and gross profit per headcount Annualised Rev per Headcount vs Annualised Gross Profit per Headcount Target (A$) vs Target (A$) Note: Headcount was 135 for Q4 FY22, 141 for Q1 FY23, and 145 for Q2 FY23. © 20
Slide 22: Macro business drivers
Macro business drivers Convergence of trends continues to 3rd party cookies drive demand for the XPON offering: ■ The increased data privacy and security regulation by governments; Data ■ The continued degradation of third-party advertising security XR cookies; ■ The increased demand for personalise
Slide 23: Growth pillars
Growth pillars Strengthen Expand value Leverage sales & Expand channel Extend Wondaris existing solutions, creation, product marketing relationships platform may include adoption from capacity and ecosystem strategic existing capability acquisitions customers © 2023 XPON Technologies Group Limited P
Slide 24: Outlook
Outlook We remain positive on ■ Maintaining organic growth while achieving target of the outlook for the full cashflow break-even in FY24. year, as we scale the ■ Ongoing product development against the XPON roadmap to extend integrations and the Wondaris ecosystem. business. During FY23, XPON maint
Slide 25: Thank you
Thank you xpon.ai/investors
Slide 26: Appendices
Appendices POWERED EXPONENTIALLY
Slide 27: Appendix - Profit & loss, balance sheet
Appendix 1 - Profit & loss, balance sheet Profit & Loss Balance Sheet For half-year ended 31 December 2022 For half-year ended 31 December 2022 31-Dec-22 31-Dec-21 Movements 31-Dec-22 30-Jun-22 Movements $’000 $’000 % $’000 $’000 % Cash and cash equivalents 6,981 8,237 (15%) Revenue 8,875 6,162 44%
Slide 28: Appendix - Glossary
Appendix 2 - Glossary Annualised Recurring Revenue (ARR): represents monthly contracted recurring revenue multiplied by 12. Customer Acquisition Costs (CAC): calculated by total customer acquisition costs spent on An annualised measure of the revenue that XPON expects to earn from its customers on a
Slide 29: A catalyst helping you navigate a fragmented industry
A catalyst helping you navigate a fragmented industry Industry value chain XPON serves as a catalyst to break down data silos, so the organisation benefits from a secure, holistic view of their consumer. Teams responsible Marketing Operations IT © 2023 XPON Technologies Group Limited POWERED EXPONEN
Slide 30: Evolving privacy landscape
Evolving privacy landscape Breach 1 happens Erosion of 2 consumer Regulatory changes trust Examples: ■ GDPR ■ CCPA ■ AAP XPON way to break the cycle: Build trust via value exchange and transparency 4 3 Fragmented User Industry changes experiences Examples: Causing: ● Apple Privacy Controls ■ Lack of
Slide 31: Wondaris
Wondaris Centralised data from any of the Enriched with ML and AI, data insights High-value audiences are activated easily public cloud vendors, including GCP, managed with ISO-certified standards to through automated workflows, to deliver AWS, Azure and Snowflake, either via deliver a privacy-safe,
Slide 32: Holoscribe
Holoscribe ■ Content creators and collaborators rapidly and easily publish rich extended reality (XR) and 360 experiences to any channel via web interface ■ Polls, quizzes and engagement tools offer consumers personalised experiences and create actionable insights on segmentation ■ Native integratio
Slide 33: Leadership team
Leadership team Jennifer Killian, Marketing executive and experienced board advisor with Phillip Aris, Experienced Chair and public company CEO/MD, Group CMO more than 20 years’ experience with B2B SaaS companies Non Executive Chairman specialising in professional services and emerging tech. ranging
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