Slide 1: ASX Release: Investor Presentation
ASX Release 10 July 2024 Investor Presentation ReadCloud Limited (ASX: RCL) (“ReadCloud” or “the Company") is pleased to release to the market, a copy of its latest investor presentation. This announcement was authorised for release by the Board of Directors of ReadCloud For personal use only Limite
Slide 2: ReadCloud Limited - Education services for school and industry
For personal use only ReadCloud Limited RCL - Education services for school and industry July 2024
Slide 3: Corporate Snapshot
Corporate Snapshot For personal use only ASX Code: RCL Substantial Shareholders Share Price (9 July 2024) $0.11 Board and management shareholdings* 22.1% Thorney Group* 11.4% Market capitalisation (@ 11 cents) $16.1m Microequities Asset Management 9.1% Shares on issue 146.2m Lars Lindstrom 6.4% Hunm
Slide 4: A diversified business with verticals entrenched in the education sector
A diversified business with 3 verticals entrenched in the education sector with the tailwind of accelerating digitisation to leverage our proprietary For personal use only technology and proven product suite ReadCloud provides digital text books for Australian and International schools, Vocational T
Slide 5: Recent focus has set the stage for growth
Recent focus has set the stage for growth For personal use only The recent Executive and Board renewal program, and the initiatives subsequently implemented, have resulted in a business that is rightsized, debt free, and on target to transition to positive underlying EBITDA and positive operating ca
Slide 6: Revenue Growth and 1H24 Financial Highlights
Revenue Growth and 1H24 Financial Highlights For personal use only $m Revenue 13% growth in 1H24 Sales and Fee revenue 14 12 53% improvement in 1H24 Operating Cashflow to $1.74m 10 4% reduction in 1H24 Operating Expenses to $3.24m 8 6 Underlying 1H24 EBITDA up 120% to $1.04 million* 4 2 VET-in-schoo
Slide 7: Driving growth with financial discipline
Driving growth with financial discipline For personal use only Protect and enhance gross margins of 15-23% in eBooks, >85% in VET-in-schools, and 40-60% in Industry Training On track for breakthrough positive underlying EBITDA and operating cashflow in FY24 Annual BAU revenue growth target ≥15% Stab
Slide 8: Upside catalysts
Upside catalysts For personal use only Traction in sales of eBooks to international schools. There are 12,000 international schools. ReadCloud is initially servicing 5 international schools. ReadCloud is pursuing acceptance to the NSW Department of Education preferred supplier panel for Educational
Slide 9: Positioned for consolidation and growth
Positioned for consolidation and growth For personal use only Tailwinds from ongoing migration to online education (ie away from physical textbooks) and from decentralisation of publisher power as teachers incorporate more engaging content into learning materials Leading position in VET-in-schools s
Slide 10: Additional Information
For personal use only Additional Information 9
Slide 11: Learning Technology and eBooks
Learning Technology and eBooks For personal use only sophisticated ReadCloud: collaborative learning tools literacy and Provides a leading eBook solution for schools that replaces accessibility physical textbooks reading tools analytics integration with school Sources over 200,000 eBooks from the wo
Slide 12: Benefits of ReadCloud's eBook Solution
Benefits of ReadCloud’s eBook Solution For personal use only For Parents For students For teachers For schools “no more heavy backpacks for “I can ask the teacher a “everyone is learning from the “the eLearning platform and students” question privately” same version of the book” digital materials be
Slide 13: VET-in-schools
VET-in-schools For personal use only ReadCloudVET provides vocational training for 14,000 secondary school students in 339 schools nationally Delivers proprietary technology, curriculum and systems that simplify tasks for teachers and VET Coordinators so they can focus on ensuring their students get
Slide 14: Growth opportunity for VET-in-schools
Growth opportunity for VET-in-schools For personal use only In 2024 ReadCloudVET is delivering Vocational Education & Training to 14,000 secondary school students at 339 schools. ReadCloudVET earns revenue from a fee per qualification (~$2,500) and a fee per student enrolled (~$200). Currently ReadC
Slide 15: VET-in-industry
VET-in-industry For personal use only Southern Solutions Training Services: provides targeted training solutions for high priority industries focusses on Early Childhood Education and Care has 17 qualifications on scope, including aged care, supply chain and real estate differentiates from its compe
Slide 16: 1H24 Financials
1H24 Financials Underlying EBITDA For personal use only 1H23 $’000 1H24 YOY 1H24 versus 1H23: Restated* Sales and fee revenue 8,136 7,201 13% • 13% Growth in Sales & fee revenue driven by: Less publisher & bookseller fees (3,503) (3,144) 11% - Direct eBook Solutions sales & fee revenue ↑ 9% Less tra
Slide 17: 1H24 Financials: Reconciliation of Underlying EBITDA to Statutory profit
1H24 Financials Reconciliation of Underlying EBITDA to Statutory profit For personal use only 1H23 $’000 1H24 YOY Restated Underlying EBITDA* 1,040 474 119% • Contingent consideration liability in respect of Southern Solutions Fair value movement in contingent acquisition has been remeasured to $0 1
Slide 18: 1H24 Financials: Balance Sheet
1H24 Financials Balance Sheet For personal use only $’000 Note 31-March-24 30-Sep-23 Notes Cash and cash equivalents 3,100 1,709 Trade and other receivables 1 2,637 1,154 1. Includes trade receivables of $1.84m and accrued Prepayments 98 112 revenue of $0.63m Total current assets 5,835 2,975 2. Inta
Slide 19: 1H24 Financials: Cash flows
1H24 Financials For personal use only Cash flows $’000 31-Mar-24 31-Mar-23 YOY Receipts from customers 7,167 5,913 21% • Receipts from customers up 21% Payments to suppliers (5,784) (5,258) 10% R&D tax incentive refund 333 424 -21% • Improvements in operating cash flow driven by revenue growth, cost
Slide 20: Disclaimer
Disclaimer For personal use only This presentation has been prepared by ReadCloud Limited (“Readcloud”), based on information The distribution of this presentation may be restricted by law and you should observe any such available as at the date of this presentation. The information in this presenta