Slide 1: 2022 Fourth Quarter Results
2022 Fourth Quarter Results Ended December 31, 2022
Slide 2: Forward Looking Statements Disclaimer
Forward Looking Statements Disclaimer This presentation contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as “believe,” “expect,” “seek,” “may,” “will,” “inten
Slide 3: Explanation of Non-GAAP measures
Explanation of Non-GAAP measures Non-GAAP financial measures are included in this press release. Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude share-based compensation, amortization of acquired intangible assets, acquisition related expenses, amortization of disc
Slide 4: Q4 and Full Year 2022 Highlights
Q4 and Full Year 2022 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 4
Slide 5: Q4 2022 Highlights (Non-GAAP)
Q4 2022 Highlights (Non-GAAP) Total revenue Cloud revenue Cloud gross margin Recurring revenue increased 10% (12% in increased 26% (27% in increased 230 bps to represented 85% of CC) to $569M; CC) to $359M; 70.5%; total revenue; compared to $516M in compared to $285M in compared to 68.2% in compared
Slide 6: FY 2022 Highlights (Non-GAAP)
FY 2022 Highlights (Non-GAAP) Record total revenue Record cloud revenue Cloud gross margin Recurring revenue of $2,181M; of $1,295M; increased 230 bps to was 82% of total an increase of 13% an increase of 27% 70.0%; revenue; (14% in CC) (27% in CC) compared to 67.7% in compared to 80% in FY compared
Slide 7: Impressive Growth and Execution
Impressive Growth and Execution TOTAL REVENUE (Non-GAAP, $M) • Total revenue increased 10% (12% in CC) in Q4 2022 and 13% (14% in CC) for the full year 2022, driven by 26% and 2,181 27% growth in cloud revenue for Q4 2022 and FY 2022, 1,926 respectively 13% • Cloud revenue in FY 2022 of $1.3B repres
Slide 8: Income Statement
Q4 and Full Year 2022 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 8
Slide 9: GAAP and Non-GAAP Income Statement
GAAP and Non-GAAP Income Statement USD in thousands (except EPS) Quarter ended Year to date December 31, December 31, 2022 2021 2022 2021 GAAP revenues $ 568,560 $ 515,473 $ 2,181,294 $ 1,921,150 Valuation adjustment on acquired deferred cloud revenue - - - 4,372 Valuation adjustment on acquired def
Slide 10: GAAP and Non-GAAP Income Statement (cont.)
GAAP and Non-GAAP Income Statement (cont.) USD in thousands (except EPS) Quarter ended Year to date December 31, December 31, 2022 2021 2022 2021 GAAP financial and other expense (income), net $ (9,127) $ 7,696 $ (10,159) $ 23,290 Amortization of discount on debt and loss from extinguishment of debt
Slide 11: GAAP and Non-GAAP Income Statement (cont.)
GAAP and Non-GAAP Income Statement (cont.) USD in thousands (except EPS) (1) Share-based Compensation Quarter ended Year to date December 31, December 31, 2022 2021 2022 2021 Cost of cloud revenue $ 2,451 $ 2,661 $ 8,840 $ 7,949 Cost of services revenue 3,233 3,597 11,497 10,513 Cost of product reve
Slide 12: Q4 2022 Revenue Breakdown by Region
Q4 2022 Revenue Breakdown by Region 83% 11% (Non-GAAP) AMERICAS EMEA $475M, +12% YoY $63M, +1% YoY, +11% YoY CC 6% APAC $31M, +2% YoY, +5% YoY CC 12
Slide 13: FY 2022 Revenue Breakdown by Region
FY 2022 Revenue Breakdown by Region 83% 11% (Non-GAAP) AMERICAS EMEA $1,802M, +15% YoY $250M, +4% YoY, +12% YoY CC 6% APAC $129M, +13% YoY, +16% YoY CC 13
Slide 14: Q4 2022 Revenue Breakdown by Business Unit
Q4 2022 Revenue Breakdown 82% 18% by Business Unit FINANCIAL CUSTOMER CRIME & (Non-GAAP) ENGAGEMENT COMPLIANCE $467M, +11% YoY, $102M, +6% YoY, +12% YoY CC +9% YoY CC 14
Slide 15: FY 2022 Revenue Breakdown by Business Unit
FY 2022 Revenue Breakdown 81% 19% by Business Unit FINANCIAL CUSTOMER CRIME & (Non-GAAP) ENGAGEMENT COMPLIANCE $1,769M, +13% YoY $412M, +17% YoY +13% YoY CC +19% YoY CC 15
Slide 16: Gross Profit and Gross Margin Q4 and FY 2022 (Non-GAAP)
Gross Profit and Gross Margin Q4 and FY 2022 (Non-GAAP) $500 14% 79.0% 79.0% $1,595M $1,600 10% $450 77.0% 77.0% $413M $1,398M $1,400 75.0% $400 75.0% $376M 73.1% 73.0% 73.0% 72.6% $1,200 73.0% $350 72.6% 71.0% 71.0% $1,000 $300 69.0% 69.0% $250 $800 67.0% 67.0% 65.0% $200 65.0% $600 Q4 21 Q4 22 FY
Slide 17: Gross Margin Q4 2022 (Non-GAAP)
Gross Margin Q4 2022 (Non-GAAP) PRODUCT SERVICES CLOUD MARGIN MARGIN MARGIN 85.7%| -600bp 73.3%| -80bp 70.5%| +230bp Product GM Product 91.7% GM 85.7% Services Services GM GM Cloud Cloud 74.1% 73.3% GM GM 70.5% 68.2% Q4 21 Q4 22 Q4 21 Q4 22 Q4 21 Q4 22 17
Slide 18: Gross Margin FY 2022 (Non-GAAP)
Gross Margin FY 2022 (Non-GAAP) PRODUCT SERVICES CLOUD MARGIN MARGIN MARGIN 89.2%| -220bp 73.5%| +20bp 70.0%| +230bp Product Product GM GM 91.4% 89.2% Services Services GM GM Cloud Cloud 73.3% 73.5% GM GM 70.0% 67.7% FY 21 FY 22 FY 21 FY 22 FY 21 FY 22 18
Slide 19: Operating Income and Operating Margin Q4 and FY 2022 (Non-GAAP)
Operating Income and Operating Margin Q4 and FY 2022 (Non-GAAP) 15% 31.0% $200 31.0% $700 12% $625M $180 30.0% $163M 30.0% $600 $160 $544M $146M $140 $500 29.0% 29.0% 28.7% 28.6% +50 bp +40 bp $120 $400 28.0% $100 28.0% 28.2% 28.2% $80 $300 27.0% 27.0% $60 $200 $40 26.0% 26.0% $100 $20 25.0% $0 25.0
Slide 20: Cost Ratios Q4 2022 (Non-GAAP)
Cost Ratios Q4 2022 (Non-GAAP) R&D S&M G&A as % of revenue as % of revenue as % of revenue S&M 24.2% S&M 22.6% R&D R&D 14.7% 15.0% 2.0%* 2.3%* G&A G&A 12.7% 12.7% 8.6% 7.9% Q4 21 Q4 22 Q4 21 Q4 22 Q4 21 Q4 22 20 * R&D capitalization
Slide 21: Cost Ratios FY 2022 (Non-GAAP)
Cost Ratios FY 2022 (Non-GAAP) R&D S&M G&A as % of revenue as % of revenue as % of revenue S&M S&M 23.5% 24.0% R&D R&D 15.0% 14.8% 2.2%* 2.3%* G&A G&A 12.8% 12.5% 8.0% 7.9% FY 21 FY 22 FY 21 FY 22 FY 21 FY 22 21 * R&D capitalization
Slide 22: EBITDA and EBITDA Margin Q4 and FY 2022 (Non-GAAP)
EBITDA and EBITDA Margin Q4 and FY 2022 (Non-GAAP) 36.0% $200 35.0% 14% $800 $184M 14% $180 $694M 35.0% $700 $162M 34.0% $160 $608M 34.0% $600 $140 33.0% 33.0% $500 32.4% $120 32.0% 31.8% 32.0% $100 $400 31.5% 31.0% 31.6% $80 31.0% $300 $60 30.0% 30.0% $200 $40 29.0% 29.0% $20 $100 28.0% $0 28.0% $0
Slide 23: Balance Sheet and Cash Flow Analysis
Q4 and FY 2022 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 23
Slide 24: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet USD in thousands December 31, December 31, December 31, December 31, 2022 2021 2022 2021 Unaudited Audited Unaudited Audited ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT ASSETS: CURRENT LIABILITIES: Cash and cash equivalents $ 529,596 $ 378,656 Trade payab
Slide 25: Cash Flow From Operations
Cash Flow From Operations $M Q4 22 Q4 21 %∆ FY 22 FY 21 %∆ Cash flow from operations 176.7 112.7 57% 479.7 461.8 4% - Capital expenditure 10.9 3.7 199% 31.9 24.8 29% - Capitalization of software development 12.8 10.5 23% 50.0 42.4 18% Cash flow from operations after capex & software capitalization 1
Slide 26: Cash Movement and Liquidity (USD in Millions)
Cash Movement and Liquidity (USD in Millions) December 31, 2022 145 82 480 41 30 1,572 20 8 4 3 1,425 Liquidity Operating CF Buyback CAPEX* Purchase of Acquisitions Repayment of FX impact ST investments Other Liquidity 12/31/21 investments, Debt MTM** 12/31/22 net *CAPEX movement includes R&D capita
Slide 27: Outlook
Q4 and FY 2022 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 27
Slide 28: Outlook (Non-GAAP)
Outlook* (Non-GAAP) Q1 2023 FY 2023 Revenue ($M) 559 – 569 2,345 – 2,365 EPS ($) 1.92 – 2.02 8.28 – 8.48 *The outlook is provided as of February 23, 2023. There is no guarantee that the Company will change or update these figures in this presentation should a need arise in the future to update the o
Slide 29: Thank You
Thank You