Exasol Ag · XETR:EXL
Exasol — H1 2021 Earnings Presentation
34 slides from Exasol's earnings presentation, Sep 21, 2021
Slide 1: Earnings Call H1 2021 Results
EXASOL H1 2021 RESULTS Earnings Call H1 2021 Results September 21, 2021
Slide 2: Disclaimer
DISCLAIMER Disclaimer This presentation contains future-oriented, forward-looking statements (“Forward-looking Statements”), estimates, opinions, projections and forecasts representing the current assessments and views with respect to anticipated future performance of Exasol AG. These assessments, v
Slide 3: Aaron Auld, CEO and Jan-Dirk Henrich, CFO/COO
Aaron Auld, CEO Jan-Dirk Henrich, CFO/COO • CEO at Exasol AG since July 2013 • CFO/COO at Exasol AG since September 2021 • Responsible for the strategic direction of the • Responsible for finance related departments company, as well as growing the business including Accounting, Controlling, Legal/Co
Slide 4: Topics for today
Topics for today Outlook 4. Q&A
Slide 5: Business Performance H1 2021
Business Performance H1 2021 by Aaron Auld, CEO
Slide 6: H1 2021 Overview
H1 OVERVIEW H1 2021 Overview FINANCIALS IN SUMMARY • ARR growth of +27.4% YoY to 26.5m EUR • Exasol continues to grow by every metric • Revenue growth of +29.7% YoY to 13.1m EUR • Clear progress in all areas, including ability to win large international organizations • Adjusted EBITDA* of (14.1) €m
Slide 7: Recap: Strategic goals for 2021
H1 OVERVIEW Recap: Strategic goals for 2021 KEY PRIORITIES 2021 > +45% 1. Build out go-to-market machine ARR Outlook 2. Create unique performance brand 3. Phased rollout of Cloud Performance DWH > EUR 35 million 4. Prepare DWH Automation for market launch ARR Outlook 5. Build and professionalize 300
Slide 8: ARR development lower than expected, but stable outlook for FY21
ARR DEVELOPMENT ARR development lower than expected, but stable outlook for FY21 KEY DRIVERS +45.0% • Extended time-to-close for major customer projects (partly driven by COVID) +27.4% • Delayed go-to-market ramp-up • Data-volume based model preventing faster adoption OUTLOOK Q3/Q4 • Strong pipeline
Slide 9: Recent customer wins
ARR DEVELOPMENT Recent customer wins Exa s ol d e live re d 10 0 x p e rforma nc e inc re a s e ove r le g a c y s ys te m Us e d for fina nc ia l re p orting , c re d it ra ting , 3 6 0 ° c us tome r vie w. Re p la c e d 2 0 TB Ora c le s ys te m with op tion to e xp a nd to 5 0 - 10 0 TB German Co
Slide 10: Grow with our customers – increase the install-base
ARR DEVELOPMENT Grow with our customers – increase the install-base Strong retention and growth numbers with existing customers • Customer lifecycle retention geared towards long-term relationships and mutual trust • Customer churn –3% ARR. 97% renewal rate exemplifying indicator in the industry • E
Slide 11: Accelerating Amazon AWS Partnership
JOINING THE AMAZON WEB SERVICES (AWS) INDEPENDENT SOFTWARE VENDOR (ISV) ACCELERATE PROGRAM Accelerating Amazon AWS Partnership Apr’21 Dec’20 ISV Accelerate Private Offers (multiple / ongoing) Exasol joins the invitation-only, Exasol selects AWS as strategic co-sell program for the top 100 partner to
Slide 12: Building The Global Marketing Engine in 2021
PROGRESS KEY AREAS 2021 Building The Global Marketing Engine in 2021 BUILD THE GTM MACHINE DRIVE LEADS NOW OPTIMIZE FOR FY2022 • Collaboration with leading full-service • Digital Marketing 2.0 with first set of end- • Execute website optimization roadmap to digital marketing agency to drive and to-e
Slide 13: The making of a compelling brand
DIFFERENTIATED BRAND AWARENESS The making of a compelling brand Focused earned brand credibility • 5 well-received industry thought leadership initiatives launched in 2021 • 77% increase in global press coverage year over year • Increased Share of Voice in online media in one year from 3% to 9% • Sh
Slide 14: DFB Technology partnership
A PARTNERSHIP OF SUCCESS Building THE DFB Technology partnership German football database with The sleeping the innovative giant awakes DFB Academy with Exasol by his • In 2020 Exasol became strategic technology partner of Current High brand side European visibility with the German Football Associat
Slide 15: Solidified market position via analyst validation
FAVORABLE INDUSTRY ANALYST ENGAGEMENT Solidified market position via analyst validation • Forrester moved Exasol from contender to strong Price/kQphH in USD (30 TB) Performer in the latest Forrester Wave™: Cloud Data Cost per kQphH – lower is better Warehouse, Q1 2021 • BARC graded Exasol as top ran
Slide 16: Exasol Cloud Performance Data Warehouse aaS
ADDING STRATEGIC OFFER IN THE CLOUD – EXASOL SAAS ROLLOUT Exasol Cloud Performance Data Warehouse aaS Phased Launch beginning end of Q3 Exasol Cloud Performance DWH provides a new strategic growth platform to extend Exasol‘s existing volume-based model for faster adoption. This offering will kicksta
Slide 17: Supporting growth through process and operations
PROFESSIONALIZATION OF PROCESSES Supporting growth through process and operations • Achieved key security and quality ISO certifications with top results. Auditors found no gaps and had zero objections • Professionalized employee onboarding, training and built new Sales Academy from ground up to acc
Slide 18: CSR & ESG activities significantly strengthened
SUSTAINABILITY & CORPORATE SOCIAL RESPONSIBILITY INITIATIVES CSR & ESG activities significantly strengthened Internal CSR CSR activities & ESG • 2019 & 2020 Carbon Neutrality stamp Working 2019 2020 Group • Diversity & Inclusion Training & Education • I Am Change Sustainability initiative • Data Lit
Slide 19: Headcount up 29%, driven by sales & marketing
BUILD PROFESSIONAL ORGANIZATION WITH 300+ PEOPLE Headcount up 29%, driven by sales & marketing +29% +29% 288 288 KEY OBJECTIVES 37 • Continued focus on shaping an 56 223 223 organization for sustainable 57 growth Administration 29 USA 29 37 • Recruiting in 2021 highly focused Research and 48 UK 35 o
Slide 20: Financial Results H1 2021
Financial Results H1 2021 by Jan-Dirk Henrich, CFO/COO
Slide 21: H1 2021 Financial Highlights
FINANCIAL RESULTS H1 2021 H1 2021 Financial Highlights • Revenue growth of 30% YoY • Adjusted EBITDA* of (14.1)m EUR vs. (1.8)m EUR in H1 2020 • Adjusted Operating Cashflow* of (11.5)m EUR vs. (1.7)m EUR in H1 2020 • Available liquid funds of 46.6m EUR at end H1 2021 • Equity ratio stays at >50% * A
Slide 22: Revenue by Region in €m
FINANCIAL RESULTS H1 2021 Revenue by Region in €m +30% 13.1 COMMENTS 0,8 +14% • Stable revenue growth of 30% YoY 1,2 +9% 10.1 1,7 +21% • Continued strong performance in UK 0,7 core market DACH RoE and RoW 1,1 US 1,4 • Delayed growth acceleration in strategic target markets US and UK 9,4 +36% DACH 6,
Slide 23: Adjusted EBITDA of (14.1) €m in H1 2021
FINANCIAL RESULTS H1 2021 Adjusted EBITDA of (14.1) €m in H1 2021 Profit and loss H1 2021 H1 2020 Revenue 13.1 10.1 2.0 thereof recurring revenue in % 92% 91% 1%pt Other operating income 0.5 0.2 0.3 COGS (1.7) (1.0) (0.7) Operating gross profit 11.9 9.3 2.6 Margin 91% 92% (1%pt) Capitalized own work
Slide 24: Increase in adj. Opex driven by personnel & marketing
FINANCIAL RESULTS H1 2021 Increase in adj. Opex driven by personnel & marketing +9.2m EUR +4.0m EUR +1.4m x3 EUR +0.6m EUR 18.0 5,1 8.8 Recruiting and Training 2,1 2,1 1,5 1,1 Salaries 0,7 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 PERSONNEL MARKETING ADVISORY OTHER • Salaries •
Slide 25: Adjusted Operating Cash flow of (11.5) €m
FINANCIAL RESULTS H1 2021 Adjusted Operating Cash flow of (11.5) €m H1 2021 H1 2020 Net loss (16.2) (16.2) 0.0 Adjusted operating cash flow H1 2021 H1 2020 Operating cash flow (20.2) (4.8) (14.4) Operating cash flow (20.2) (4.8) (14.4) Adjustments + cash flow from share based 7.2 0.0 Investing cash
Slide 26: Liquid funds of 46.6 €m and Equity ratio of 52%
FINANCIAL RESULTS H1 2021 Liquid funds of 46.6 €m and Equity ratio of 52% In €m H1 2021 2020 Fixed assets 9.0 7.7 1.3 Current assets and prepaid expenses 52.1 74.4 (22.3) Liquid funds 46.6 69.5 (22.9) In % of total assets 76% 85% (9%pt) Equity 32.0 48.3 (16.3) In % of total assets 52% 59% (7%pt) Pro
Slide 27: Overall CFO/COO priorities and focus of first 100 days
FINANCIAL RESULTS H1 2021 Overall CFO/COO priorities and focus of first 100 days • E.g., transparency on current returns on invests, Ensure effective 1 budgeting & review processes, accountabilities and resource allocation MBOs, planning and forecasting capabilities First 100 days • E.g., switch to
Slide 28: Internal IR capabilities strengthened with new Head of IR
FINANCIAL CALENDAR Internal IR capabilities strengthened with new Head of IR Head of Investor Relations signed Remaining financial calendar 2021 last week, will join Jan. 1, 2022 Trading Statement 15 years of IR experience in SDAX 9M 2021 and TecDAX listed companies, 4 Nov 2021 including: Deutsche B
Slide 29: Outlook
Exasol Outlook by Aaron Auld, CEO
Slide 30: Exasol Performance Bridge to the Cloud
MARKET OUTLOOK Exasol Performance Bridge to the Cloud Dynamic Data Analytics platform optimization Comprehensive solution Unique Proposition for customers' agile data strategies In concept Flexibility in data-analytics architecture and enable Agile Proposition Scaling across (multiple) migration fro
Slide 31: Exasol outlook for 2022
MARKET OUTLOOK Exasol outlook for 2022 • Create lean and business-oriented organization geared towards 3-year plan, including effective reporting systems for reliable performance management, continuous change and value-driven improvements (Sep.-Dec. 2021). • 2022 business objectives defined and all
Slide 32: Q&A
Exasol Q&A
Slide 33: Thank you
Exxasol Thank you
Slide 34: Faster. Wins.
Faster. Wins.