Xbp Global Holdings, Inc. · NASDAQ:XBP
Xbp Global — XBP Europe Holdings — Q3 2024 Earnings Presentation
16 slides from Xbp Global's earnings presentation, Nov 12, 2024
Slide 1: Third Quarter 2024 Results
Third Quarter 2024 Results November 12, 2024 ©XBP EUROPE 2024
Slide 2: Safe Harbor Statements
Safe Harbor Statements Forward-Looking Statements: Certain statements included in this presentation are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward- looking statements generally
Slide 3: About XBP Europe: Who, Where, Why & What
About XBP Europe Who, Where, Why & What Who Where XBP Europe Holdings, Inc. (Nasdaq: XBP, XBPEW), is a pan-European Secure hybrid cloud infrastructure enables XBP Europe to integrator of bills, payments, and related solutions and services seeking deploy its solutions to clients across the European m
Slide 4: XBP Europe product suites - Summary
XBP Europe product suites - Summary Banking & Finance Enterprise Information Finance & Accounting Cloud & AI powered Cyber One of largest non-bank processors Management Enhanced invoicing, Security of payments in Europe Scan, process, digitize payments, reporting, analysis documents and get usable d
Slide 5: We serve a diversified base of public and private sector customers
We serve a diversified base of public and private sector customers Industry Specific and Industry Agnostic Enterprise Software and Services Large Enterprises and Small Financial Institutions, Banks & Insurance Governments & Public Sector Businesses Finance Departments Companies Organizations F&A, IP
Slide 6: 3Q 2024 Financial Summary and Highlights
3Q 2024 Financial Summary and Highlights ©XBP EUROPE 2024 6
Slide 7: 3Q 2024 at a Glance
3Q 2024 at a Glance Revenue Gross Margin SG&A Active ACV Ramp Revenue Mix $35.4M 32.6% $6.8M YoY -5.6% YoY +8.0% YoY -0.4% ~$25M Bills & Payments: 69.4% Sequentially +5.5% Sequentially +13.0% Sequentially +14.2% Technology: 30.6% Bills & Payments Gross Technology segment Operating Profit Adj EBITDA1
Slide 8: 3Q 2024 Financial Highlights
3Q 2024 Financial Highlights ($ in thousands, unaudited) • Sequential revenue growth as ~$25 million of active project ramp-ups accelerate, including recent go-live of His Majesty’s Passport Office (HMPO) • Gross margin improvement driven by better operational leverage, automation, and optimization
Slide 9: Segment Profitability
Segment Profitability ($ in thousands, unaudited) • Gross margin improvement at both Bills & Payments and Technology segments as large contracts are ramped and effects of savings initiatives are realized • Technology segment Gross Margin of 59% is the highest achieved in the last five quarters Note:
Slide 10: Appendix
Appendix ©XBP EUROPE 2024 10
Slide 11: Our presence in EMEA
Our presence in EMEA XBP Europe Solutions reach majority of populations in key markets. The Company processed several hundred million payment transactions in 2023. Pan-European Presence Norway 15 Countries1 (population 5 million) process 100% of bank giro 32 Locations Sweden (population 10 million)
Slide 12: $167M FY2023 Revenue: Client and industry diversification
Client and industry diversification $167M FY2023 Revenue 3% - Top client 11% 22% Northern Top 2 -10 Europe Technology 27% 18% 13% UK & Top 11 - 20 Ireland 22% Top 21 - 50 31% Central Europe Bills and Payments 73% 40% 40% All Other Western Europe Diversified client Geography Services & 12 base Produc
Slide 13: Adjusted EBITDA Reconciliation From Continuing Operations
Adjusted EBITDA Reconciliation From Continuing Operations ($ in thousands) (1) Adjustment represents costs associated with restructuring, including employee severance and vendor and lease termination costs. (2) Represents litigation settlement and associated expenses incurred in connection with the
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation ©XBP EUROPE 2024 14
Slide 15: Footnotes to Non-GAAP Reconciliation
Footnotes to Non-GAAP Reconciliation 1) Constant currency excludes the impact of foreign currency fluctuations and is computed by applying the average exchange rates for the quarter ended September 30, 2023, to the revenues during the corresponding period in 2024. 1) Adjustment represents costs asso
Slide 16: Defined Terms in Presentation and Notes
Defined Terms in Presentation and Notes • ACV: Annual contract value in dollars • Gross Margin: Total revenue less cost of revenue as a percentage of total revenue • Capital Expenditures: Funds used to buy, maintain, or improve physical or fixed assets used in the Company’s operations • New Business