Dye & Durham Ltd. · TSX:DND
Dye & Durham — Q4 FY2024 Earnings Presentation
23 slides from Dye & Durham's earnings presentation, Sep 4, 2024
Slide 1: Q4 & YE FY2024 Results Presentation
Q4 & YE FY2024 RESULTS PRESENTATION September, 4th 2024 When being certain is everything dyedurham.com dyedurham.com
Slide 2: Disclaimer
ibdroot\projects\IBD-NY\driveins2022\902367_1\Presentations\05. Lender Presentation\DND Private LP - November 2022_v26.pptx DISCLAIMER This presentation has been prepared for informational purposes only. These materials are not, and in no circumstances are they to be construed as, a prospectus, an o
Slide 3: Disclaimer (Cont'd)
ibdroot\projects\IBD-NY\driveins2022\902367_1\Presentations\05. Lender Presentation\DND Private LP - November 2022_v26.pptx DISCLAIMER (CONT’D) Company’s most recent Annual Information Form and under the heading “Risks and Uncertainties” in the Company’s most recent Management’s Discussion and Analy
Slide 4: Your Legal Practice, Made Perfect
ibdroot\projects\IBD-NY\driveins2022\902367_1\Presentations\05. Lender Presentation\DND Private LP - November 2022_v26.pptx YOUR LEGAL PRACTICE, MADE PERFECT Our mission-critical software gets business done right, every time. We provide premier practice management solutions and vital data insights s
Slide 5: Dye & Durham Results Snapshot
DYE & DURHAM RESULTS SNAPSHOT Dye & Durham Key Operating Areas2 C$120 mm C$69 mm Q4 FY2024 Revenue Q4 FY2024 Adj. EBITDA1 (Highest ex-TM Group) (Second highest ex-TM Group) Canada ~7,800 UK & I Customers ~18,000 Customers 57% C$32 mm Q4 FY2024 Q4 FY2024 Leveraged Free Cash Flow Adj. EBITDA Margin1 (
Slide 6: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Dye & Durham is focused on bringing software capabilities together to provide a single point solution for customers Key Industry Drivers Dye & Durham Key Growth Drivers 1 Growing Contracted Revenue Accelerated adoption of legal technology to improve efficiencies and client
Slide 7: Dye & Durham Segment Overview
DYE & DURHAM SEGMENT OVERVIEW Legal Software Banking Technology Practice Management Data Insights & Due Diligence Lending Tech Payments Managed Banking Services End-to-end practice management software enables Our payments infrastructure technology facilitates the transfer of We connect a global netw
Slide 8: Market Needs Differ by Size of the Firm
MARKET NEEDS DIFFER BY SIZE OF THE FIRM • Primarily focused on high impact large corporate matters (ex. high profile mergers) with an increasing need for digital solutions Large Law Firms 11+ Lawyers • Require management of large complex workflow orders such as electronic due diligence, corporate an
Slide 9: Product Offering Aligns with Fastest Growing Legal Tech Segments
DYE & DURHAM’S PRODUCT OFFERING ALIGNS WITH SOME OF THE FASTEST GROWING SEGMENTS IN LEGAL TECH Top Growth Segments for Legal Tech Spend Growth Momentum1 Dye & Durham Core CAGR % (2024-2030) Low Medium High Software Competency Analytics 12.0% Practice Management 11.0% Legal Research 10.0% Dye &
Slide 10: Large Addressable Market Opportunity
LARGE ADDRESSABLE MARKET OPPORTUNITY Total Addressable Market Key Drivers Behind Expansion Global Legal Technology Spend (US$) 1 Rising competition in the legal solutions ~$46B industry, leading to increased focus on productivity TAM 2 Surge in new regulatory structures and legal information, which
Slide 11: The Legal Professional Workflow Experience Has Been Disjointed
THE LEGAL PROFESSIONAL WORKFLOW EXPERIENCE HAS BEEN DISJOINTED User Application 1 Application 2 Application 3 Application 4 Application 5 Application 6 Practice Property Corporate Records Onboarding Accounting Mgmt. Searches Searches Mgmt. Inconsistent user experience Multiple individual solutio
Slide 12: Successful Consolidation of Acquisitions into Single Platforms
SUCCESSFUL CONSOLIDATION OF ACQUISITIONS INTO SINGLE PLATFORMS We have acquired a number of Practice Management and Data Insights & Due Diligence applications and created a consolidated platform and a common brand Canada UK & Ireland Australia United States Management Affinity Practice Practice Mana
Slide 13: Unity Global Platform
ibdroot\projects\IBD-NY\driveins2022\902367_1\Presentations\05. Lender Presentation\DND Private LP - November 2022_v26.pptx OUR SOLUTION: UNITY® GLOBAL PLATFORM UNITY® EVERYTHING YOU NEED TO RUN YOUR LEGAL PRACTICE, ALL IN ONE PLACE. From intake to invoice, and everything in between. A SINGLE DESTIN
Slide 14: Continued Growth in Contracted Revenue
CONTINUED GROWTH IN CONTRACTED REVENUE Annualized Contractual Revenue1,2,3 (C$ mm) ARR ($) Other Revenue Under Contract % of Contracted Revenue 53% 51% 49% 46% 39% $245.5 37% $221.1 $198.1 $203.2 16% $166.0 $108.8 13% $95.6 10% 7% 7% $136.8 $91.1 3% $88.7 $87.6 $69.0 $62.2 $46.1 $52.2 $125.5 $136.7
Slide 15: Diversified Revenue Model with Predictability and Scale
HIGHLY ATTRACTIVE & DIVERSIFIED REVENUE MODEL WITH PREDICTABILITY AND SCALE Breakdown of Revenue Model 1 Transactional Payment per legal matter or transaction Minimum Spend 14% 2 Subscription Non-Contracted Contracted 15% Transactional Other Revenue Under Represents actual revenue usage above minimu
Slide 16: Understanding the Acquisition Strategy
UNDERSTANDING THE ACQUISITION STRATEGY… Revenue CAGR Since Acquisition • DND has demonstrated a track record of U.K. KYC/AML technology; offering identifying and executing on highly strategic now directly available to DND’s U.K. acquisitions that drive strong financial Credas (Nov 2023) 39% customer
Slide 17: Ability to Extract Incremental Value from Acquired Businesses
…AND OUR ABILITY TO EXTRACT INCREMENTAL VALUE FROM THE BUSINESSES THAT WE HAVE ACQUIRED Adjusted EBITDA Growth Since IPO1, 2 ($ mm) Post-Synergy Performance on Capital Deployed Since IPO ($ mm) 2 $103 $256 $2,000 18x from 16.6x $1,500 ~$1.9 bn Capital deployed 15x $113 since IPO Significant $1,000 1
Slide 18: Record Revenue Quarter with Strong Organic Growth
RECORD REVENUE QUARTER WITH STRONG ORGANIC GROWTH • Q4 FY2024 revenue increase of 15% YoY, excluding divestiture of TM Group, driven by solid performance from the seasonality in real estate transactions and strength in our due diligence volumes • Organic growth of 8% demonstrating strong product pos
Slide 19: Quarterly Financial Performance
QUARTERLY FINANCIAL PERFORMANCE Dye & Durham continues to effectively navigate the current high interest rate environment, delivering record financial performance Revenue (C$ mm) Adjusted EBITDA1 (C$ mm) 80% Adj. EBITDA EBITDA Margin % 100 70% 120 120 120 120 57% 56% 57% 60% 110 80 54% 54% 54% 55% 5
Slide 20: Record Quarter for Free Cash Flow Generation
RECORD QUARTER FOR FREE CASH FLOW GENERATION 1,2 CFO Less Capex, Leases & PPE (C$MM) Levered Free Cash Flow (C$MM) $46 Q4 FY24 cash flow was $34 $33 $34 $32 one of the best on $30 $26 record, driven by strong $21 fundamental business $16 performance, continued execution on acquisition $8 synergies,
Slide 21: Appendix
APPENDIX When being certain is everything everything / 2121
Slide 22: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Net Income to Adjusted EBITDA Three months ended Three months ended Twelve months ended Twelve months ended ($C 000's) June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Income (loss) for the period (105,204) (89,179) (174,348) (170,643) Amortization and depreciat
Slide 23: Reconciliations
RECONCILIATIONS 1) Organic Revenue Reconciliation 2) Leveraged Free Cash Flow Reconciliation Q4 Q4 FY2024 FY2023 FY2024 FY2023 (In thousands of Canadian dollars) Three months ended June 30, Fiscal year ended June 30, Revenue 120.1 120.2 457.7 451.1 2024 2023 2024 2023 $ $ $ $ TM Group Pre- 0.0 15.4