Aptitude Software Group Plc · LSE:APTD
Aptitude Software — H1 2024 Earnings Presentation
21 slides from Aptitude Software's earnings presentation, Jul 25, 2024
Slide 1: Interim Results
25 July 2024 Interim Results for the period ended 30 June 2024 1
Slide 2: Agenda
Agenda 01 Executive Summary Alex Curran | CEO 02 Financial Highlights Mike Johns | CFO Alex Curran 03 Strategic Update CEO Alex Curran | CEO 04 Summary and Outlook Alex Curran | CEO Mike Johns CFO 2
Slide 3: Executive summary
Executive summary Long term Organisation Performance H1 results opportunity improvements on track • £3bn total addressable market • Organisation transformation in • H1 results in line with expectations • Board confident that Group will meet support of the opportunity market expectations for FY 2024
Slide 4: Aptitude's journey
Aptitude’s journey Compliance to AI Autonomous finance Compliance First to market Shift to platform £3bn market 4 Market is ready, Aptitude is ready and H1 results highlight data points and progress
Slide 5: Leading AI Autonomous Finance
Leading AI Autonomous Finance Strategy on track and in line with expectations Market Position Partner Progress Client Retention H1 New Wins & Client Expansions 5
Slide 6: Financial Highlights
Financial Highlights £46.7m (Jun 2023: £45.2m)2 Total Software ARR1 Transition to AI Autonomous Finance conducted from a position of strength High revenue visibility Heritage ARR provides credibility in the office of the CFO and conversion opportunity with Fynapse. +3% Growth in Software ARR (Jun 20
Slide 7: Financial Highlights
Financial Highlights 78% Proportion of Recurring Higher returns driven through improved margin, Fynapse sales and carefully managed (H1 2023: 72%) Revenue investment Improving revenue quality Increasingly recurring revenue driven by Fynapse adoption provides stronger margins and forward visibility –
Slide 8: Progress against strategy
Progress against strategy Organisational change to support strategic shift is driving momentum AI Autonomous Finance execution plan in progress and creating momentum Milestones achieved highlighting strategic progress Strategic partners continue to invest behind Aptitude to support improved deal vel
Slide 9: The AI Autonomous Finance Opportunity
The AI Autonomous Finance Opportunity 4 strategic execution pillars Investment Behind Partner first Laser focused Continuous AI Autonomous organisation go-to-market innovation and Finance strategy efficiency 2027 1/3 AAH clients to Fynapse 80% Partner sourced ARR 9
Slide 10: Snapshot of progress and milestones
Snapshot of progress and milestones Fynapse Partners Upsell cross sell Growing pipeline Growing pipeline 1/3 AAH by 2027 4 clients (vs 30 June 2023) 38% ARR sourced by 99% software net retention rate partners Key wins: New white label offer Key wins: 10
Slide 11: Fynapse - The Finance Data Management Platform
Key Benefits Key Benefits • A single view of data • Migration of global finance architecture to cloud • Automation of manual process & • Ability to process significantly increased calculations in an auditable and financially data volumes controlled platform • Alternative to transformation for faster
Slide 12: Aptitude strategic partnerships driving growth
Aptitude strategic partnerships driving growth Simpler market entry & faster time to value powering partnerships 12 80% of ARR to be partner sourced by end of 2027
Slide 13: Summary and outlook
Summary and outlook Substantial Software New wins progress first growth half 2024 Organizational Momentum Confidence in transformation building future growth 13
Slide 14: Appendix
7S Aptitude~ Appendix
Slide 15: Organisational focus & product portfolio
Organisational focus & product portfolio Organisation set up to support products and opportunities Innovate & grow Fynapse Target & protect eSuite AREV Maintain & respond Revenue growth IFRS17/AICE IFRS17/AICE, AAH AAH, AREV Retain & support ARRE Platform ACALC ALAE Investment 15
Slide 16: Aptitude Fynapse
Aptitude Fynapse Unlocking Autonomous Finance through modular capabilities Data Cloud Single View of All Data Data Cloud Intelligence Data Fabric Data Fabric Intelligence Delivers Autonomous and Connect to Anything AI-Powered Finance Data Flow Data Flow Subledger Subledger Automate Everything Global
Slide 17: Aptitude Fynapse
Aptitude Fynapse Market leading support of AI Powering AI Autonomous Finance Fynapse – Aptitude’s Finance Data Platform Data Visualisation & Business Configuration UI Operations UI Marketplace Intelligence Configurable Fynapse Engines AI Optimized Integration Finance AI Real Time Forecasting Account
Slide 18: Income statement
Income statement Increasing recurring revenue and cost efficiencies driving higher margins HY 2024 HY 2023 FY 2023 (£’000) (£’000) (£’000) Recurring Revenue 27,481 26,998 53,370 Implementation Revenue 7,779 10,538 21,315 Total Revenue 35,260 37,536 74,685 Operating Costs (31,060) (33,300) (64,959) A
Slide 19: Cash flow
Cash flow Invoice timing delays reduced cash from operations – expected return to normalised levels by end of 2024 HY 2024 HY 2023 FY 2023 (£’000) (£’000) (£’000) Cash generated from operations (3,714) (25) 11,945 Interest and tax (paid)/received (1,780) (725) (951) Cash flows generated from operati
Slide 20: Balance sheet
Balance sheet Strong balance sheet with robust cash position 30 June 2024 30 June 2023 31 Dec 2023 (£’000) (£’000) (£’000) Goodwill and intangible assets 62,055 65,436 63,745 Property, plant and equipment including right-of-use assets 4,030 4,911 4,484 Trade and other assets 21,649 18,255 17,099 Cas
Slide 21: Board
Board Management team aligning the business to support significant growth opportunity Alex Curran, Chief Executive Officer Alex Curran was appointed to the Aptitude Software Board as Acting CEO on 12 July 2023 and subsequently appointed as CEO on 30 November 2023. Alex joined Aptitude Software in 20
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