Slide 1: ReadCloud Limited Full-Year Results – FY20
ReadCloud Limited Full-Year Results – FY20 2 September 2020
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 VET
The leading SaaS eReading solution for Australian secondary schools and the Vocational Education and Training (VET) sector Delivers the full curriculum seamlessly and securely 360 Schools ↑ 30%* - integrated from Publisher to Student - sophisticated social and collaborative learning tools that subst
Slide 4: Corporate snapshot
Corporate snapshot ASX Code: RCL, RCLO Substantial Shareholders Share Price (28 August 2020) $0.39 Thorney Group* 10.6% Market capitalisation (@ 39 cents) $38.8m Amity Agency Pty Ltd 9.4% Shares on issue (listed) 99.5m Lars Lindstrom 8.6% Options on issue (listed) 15.4m Hunmar Holdings/Darren Hunter
Slide 5: FY20 Results
FY20 Results ● 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 2H20 $0.53 million (1H20 Underly
Slide 6: 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 $55 in FY19 to
Slide 7: FY20 Highlights
FY20 Highlights ● Notable wins in FY20 in the full curriculum schools segment included: ○ three of the largest State High schools in Brisbane (each with over 2,000 students, including the largest State High School in Queensland with over 3,000 students); ○ a large independent Anglican School in New
Slide 8: FY20 Financials – Underlying EBITDA
FY20 Financials – Underlying EBITDA ($) 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 Less publisher & bookseller fees (3,891,795) (2,329,507) 67% change in mix: Gross profit 3,064,
Slide 9: 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 $0.4m received since 30 June 2020 from exercise of ASX-listed Trade and other receivables 2 597,366 470,165 RCLO options. Potentially another
Slide 10: 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, up 52% Underlying EBITDA (161,141) (421,959) (FY19: $4.5m) Interest income 3,799 37,534 2. Payments for acquisition of AIET Transaction costs uncured on business (27,751) (40,520) acquisit
Slide 11: 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, including: ● Automation of back-end processes to improve scalability and reduce the tim
Slide 12: Impact of COVID-19
Impact of COVID-19 ● Minimal impact on operations in FY20, as the Company is fully capable of operating in a remote capacity whilst supporting current and new customers and continuing our product development ● On-boarding of full-curriculum schools for the 2020 school year, including eBook purchases
Slide 13: Outlook
Outlook ● The Company is well-placed for strong growth in FY21 via: — organic growth within existing school customers, driven by expanded usage of the ReadCloud platform and AIET’s auspicing services within existing school customers; — new customer (school) acquisitions across the full-curriculum an
Slide 14: Outlook
Outlook New reseller partners ● ReadCloud signed up 2 significant new reseller partners in the June quarter: ○ Western Australia-based Ziggies Educational Supplies which currently supplies booklisting services to over 300 Western Australian schools; and ○ Victorian-based Lilydale Books which current
Slide 15: Key investment highlights
Key investment highlights ● ReadCloud is the leading digital education solution for Australian schools, delivering clear educational benefits and saving schools and parents money ● Large market opportunity in Australia with an immediate target market of 2,700 secondary schools with 1.6 million stude
Slide 16: ReadCloud Limited Lars Lindstrom | CEO
ReadCloud Limited 284 Bay Street Brighton VIC 3186 Lars Lindstrom | CEO lars@readcloud.com 16
Slide 17: Appendix A: Reconciliation Underlying EBITDA to statutory result
Appendix A: Reconciliation Underlying EBITDA* to statutory result $ FY20 FY19 FY20 vs FY19 a) 62% reduction in Underlying EBITDA loss (%) Underlying EBITDA* (161,141) (421,960) -62% (a) b) Higher depreciation & amortisation expense in FY20 due to: Depreciation & amortisation (702,262) (416,624) 69%