Expert.ai
1H 2024 Investor Presentation
1st October 2024
Agenda
Transformation and Evolution strategy in 2024
Work in progress - Update 1H 2024
1H 2024 Key Financials
Outlook
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TRANSFORMATION AND EVOLUTION STRATEGY IN 2024
Repositioning Strategy in 2024
Today
Driving through
Transformation and Evolution
2023 | 2024 |
Expert.ai creates | Introducing new solutions |
designed to drive measurable | |
technology that | |
business value, ensuring that | |
transforms language into | |
AI innovations align with | |
knowledge and insight | |
business outcomes | |
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2025
Expert.ai delivers
enterprise AI solutions
driving measurable
business value
Focus on Vertical Solution based on horizontal framework
Finance & Banking
Capitalize on knowledge and streamline information-intensive processes to meet demands of customers and regulators.
Insurance | Vertical |
Reduce risk, improve win rates, | Solutions |
and increase capacity for | |
commercial insurance carriers | |
and brokers. |
Healthcare & Pharma
Make the most of available data to improve R&D, prevent operational risks and enhance the quality of treatment and care.
Enterprise
Leverage the value of information hidden in language for automation, insight and efficiency
PIM / Information services
Improve the process of content creation and enrichment, as well as augment manual processes and workflows
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WORK IN PROGRESS - UPDATE 1H 2024
Work in progress - profitability and financial sustainability
Cost restructuring
Debt renegotiation
Capital increase
Professional services "carve out"
New company infrastructure
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- Annualized savings achieved of approx. € 4M
- Confirmed target of positive EBITDA cash for the year
- Successful renegotiation of debt terms with majors financing banks. These measures will free up over € 3.5M in 2024 and over € 3M in 2025.
- Successful capital increase of ca. € 30 M in July 2024
- Work in progress about new management approaches, new organization and new incentives on profitability
- Work in progress about processes analysis and optimization, new operative tools, new policies.
Achieved | Work in progress |
Work in progress - preparing the ground for the growth
New solutions roadmap
New business model & strategy
Partnerships
M&A
New Foundation
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- Implementation of new projects that involve GenAI integration
- Selection of verticals and use cases in progress
- Preliminary growth strategy defined
- Customer success program started
- First selection of partners
- Differentiated approach defined by type of partners
- Preliminary definition of combined offering
- M&A strategy and plan defined
- First screening of possible targets in the Italian market
- First joint venture in evaluation about offering strategic AI consulting
Achieved | Work in progress |
1H 2024
KEY FINANCIALS
Consolidated Income Statement 1H 2024
€M | 1H 2024 | 1H 2023 | Var. | Var. % |
Total revenues | 12.0 | 13.1 | (1.2) | (9%) |
COGS | (4.1) | (5.9) | 1.7 | (30%) |
Gross Margin | 7.8 | 7.3 | 0.6 | 8% |
% Revenue | 66% | 55% | ||
Sales & Marketing | (4.6) | (5.4) | 0.8 | (14%) |
Product & R&D | (2.7) | (4.9) | 2.2 | (44%) |
G&A and management | (3.3) | (3.9) | 0.7 | (17%) |
EBITDA Cash | (2.8) | (7.0) | 4.2 | (60%) |
% Revenue | (23%) | (53%) | ||
Capitalized R&D expenses | 2.0 | 3.8 | (1.9) | (49%) |
EBITDA | (0.8) | (3.2) | 2.3 | (74%) |
% Revenue | (7%) | (24%) | ||
Amortization & Depreciation | (3.7) | (4.1) | 0.4 | (9%) |
EBIT | (4.5) | (7.2) | 2.7 | (38%) |
% Revenue | (38%) | (55%) | ||
Financial income/expenses | (0.2) | (0.5) | 0.3 | (58%) |
Restructuring expenses | (1.9) | 0.0 | (1.9) | |
Result before Taxes | (6.6) | (7.7) | 1.1 | (14%) |
Taxes | 0.1 | 0.0 | 0.0 | 9% |
Net Result | (6.6) | (7.7) | 1.1 | (14%) |
% Revenue | (55%) | (59%) |
Comparison 1H 2024 vs 1H 2023
- Revenues decrease referred mainly to professional services revenue;
- Gross Margin improvement thanks to higher focus on projects profitability;
-
Cost reduction in every department with consequent positive impact (+€4.2M) on cash
EBITDA; - Lower capitalization of R&D expenses for selected investments;
- Restructuring expenses due to reorganization, savings in the Personnel costs and extraordinary expenses for capital increase and debt renegotiation.
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