Readcloud Ltd. · ASX:RCL
Readcloud — Shareholder Meeting (November 2020)
21 slides from Readcloud's shareholder meeting presentation, Nov 10, 2020
Slide 1: ReadCloud Limited – CEO's Presentation to Annual General Meeting
ReadCloud Limited Australia’s Leading eReading Solution CEO’s Presentation to Annual General Meeting 10 November 2020 ASX : RCL, RCLO
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by ReadCloud Limited (“Readcloud”), based on information available as at the date of this presentation. The information in this presentation is provided in summary form and does not contain all information necessary to make an investment decision. This
Slide 3: The leading SaaS eReading solution for Australian secondary schools and the VET sector
The leading SaaS eReading solution for Australian secondary schools and the Vocational Education and Training (VET) sector Delivers the full curriculum seamlessly and securely 500+ Schools1 - integrated from Publisher to Student - sophisticated social and collaborative learning tools that substantia
Slide 4: Corporate Snapshot
Corporate Snapshot ASX Code: RCL, RCLO Substantial Shareholders Share Price (9 November 2020) $0.41 Thorney Group* 10.5% Market capitalisation (@ 41 cents) $41.5m Lars Lindstrom 8.5% Shares on issue (listed) 101.2m Hunmar Holdings/Darren Hunter* 7.0% Options on issue (listed) 13.5m Brindle Holdings
Slide 5: FY20 Highlights
FY20 Highlights 5
Slide 6: FY20 Highlights
FY20 Highlights ● 55% growth in Revenue, with strong growth in both school customers (+30% to 360 Schools) and users (+40% to over 112,000 students and teachers) ● The strong growth in full curriculum schools segment included: ○ three of the largest State High schools in Brisbane (each with over 2,0
Slide 7: FY20 Results
FY20 Results 62% Improvement 23% Improvement ● Total revenue up 55% from $4.80 million in FY19 to $7.46 million in FY20 ● Strong growth achieved across both key operating segments ● Underlying EBITDA* loss reduced from $0.42 million in FY19 to $0.16 million in FY20 ● Positive Underlying EBITDA* for
Slide 8: FY20 Highlights
FY20 Highlights ● FY20 Revenue growth was driven by: ○ a 30% increase in number of customer schools to 360 secondary schools (FY19: 277 schools) ○ a 40% increase in number of ReadCloud platform users to 112,000 (FY19: 80,000 users) ○ an increase in average revenue per user (ARPU) from $55 in FY19 to
Slide 9: FY20 Financials – Underlying EBITDA
FY20 Financials – Underlying EBITDA ($) FY20 FY19 FY20 vs FY19 ● Revenue up 61% vs FY19 Sales and fee revenue 6,956,136 4,316,479 61% ● Publisher and bookseller fees increased faster than revenue due to a change in mix: Less publisher & bookseller fees (3,891,795) (2,329,507) 67% — a higher proporti
Slide 10: FY20 Financials – Balance Sheet
FY20 Financials – Balance Sheet $ Note 30-Jun-20 30-Jun-19 1. Strong cash position at year-end and zero debt. Cash and cash equivalents 1 3,387,609 3,067,599 $1.0m received since 30 June 2020 from exercise of ASX- Trade and other receivables 2 597,366 470,165 listed RCLO options. Potentially another
Slide 11: FY20 Financials – Cash Flows
FY20 Financials – Cash Flows $ Note 30-Jun-20 30-Jun-19 1. After cash receipts from customers of $6.9m in FY20, Underlying EBITDA (161,141) (421,959) up 52% (FY19: $4.5m) Interest income 3,799 37,534 2. Payments for acquisition of AIET Transaction costs uncured on business (27,751) (40,520) 3. Adopt
Slide 12: New Platform Features
New Platform Features New features and continuing investment in the ReadCloud platform strengthens ReadCloud’s competitive advantage. Significant development of the ReadCloud platforms was undertaken during FY20: ● Automation of back-end processes to improve scalability and reduce the time to on-boa
Slide 13: Acquisition of College of Sound and Music Production
Acquisition of College of Sound and Music Production 13
Slide 14: Acquisition Overview
Acquisition Overview Acquisition of 100% of College of Sound and Music Production (“COSAMP”) for up to $1.45 million 1 COSAMP’s proprietary product is entirely complimentary to ReadCloud’s current VET offering Acquisition adds an additional 184 schools to ReadCloud’s current 360 secondary school
Slide 15: Strategic Fit – Significant Cross-Selling Upside
Strategic Fit – Significant Cross-Selling Upside School Customers • The acquisition of COSAMP improves and expands Pacific Islands ReadCloud’s geographic footprint in Australia 2 • COSAMP adds 184 new school relationships to ReadCloud’s 360 school customer network with only 24% cross-over between ex
Slide 16: FY21 Outlook
FY21 Outlook 16
Slide 17: FY21 Outlook
FY21 Outlook ReadCloud is entering the FY21 sales season with well over 500 school customers and 120,000 users for the 2021 school year for both VET and the full-curriculum ReadCloud expects the strong recent momentum in new school sign ups for 2021 to continue into early next year Direct (full-curr
Slide 18: FY21 Outlook cont.
FY21 Outlook cont. VET-in-Schools ● ReadCloud’s VET business, Australian Institute of Education and Training (“AIET”), has had a rapid early start to sales of VET courses for 2021: — 23 new schools have signed-up for 2021 already (in addition to the new school customers coming on board as part of th
Slide 19: Key Investment Highlights
Key Investment Highlights 19
Slide 20: Key Investment Highlights
Key Investment Highlights • ReadCloud is the leading digital education solution for Australian schools, delivering clear educational benefits and saving schools and students money • ReadCloud is growing rapidly with over 120,000 users in over 500 school customers with ongoing growth in market share
Slide 21: ReadCloud Limited – Lars Lindstrom, CEO
ReadCloud Limited 284 Bay Street Brighton VIC 3186 Lars Lindstrom | CEO lars@readcloud.com ASX : RCL, RCLO 21