Annual General Meeting 13 November Making it easier out there

Transcription

1 Annual General Meeting 13 November 2018 Making it easier out there

2 Agenda 2 Chair Review CEO Presentation Questions Formal Business

3 Chair Review 3 Statutory Headlines Long run trend of growth in ARR Revenue... $4.0m recurring subscription revenue, up 6.3% on FY17 $5m $4m Geo Geo for Sales Earnings... $8.5m loss (includes ASX listing costs and non-cash impairment) $3m $2m $1m $0m Mar-13 Mar-14 Jun-15 Jun-16 Jun-17 Jun-18 Underlying Momentum - Long run trend of declining cash burn Revenue Growth 24% increase in ARR in H2 FY18 to $4.8m at 30 June (100) (200) (300) EBITDA. 39.7% improvement in Underlying EBITDA (400) (500) Cash Flow.... $130k current monthly Underlying Cash Burn (declining) (600) $3m 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1Q19 Trend $2.4m net cash at July-18 $2m Balance Sheet... $4.3m improvement in net cash at Jul-18 over Dec-17 $1m $0m -$1m -$2m Jun-17 Dec-17 Jun-18 Jul-18

4 Agenda 4 Chair Review CEO Presentation Questions Formal Business

5 CEO Presentation 5 GEO s Mission We make it easier out there by simplifying the challenges of managing a mobile workforce We do this by providing software to help organise our clients workforces and help grow their business

6 FY18 Snapshot 6 Two core products - Geo and Geo for Sales 23,687 combined licences 39 FTEs in New Zealand, Australia, and the Philippines at 30 June 2018 $5.2m revenue & income ($4.0m recurring subscription income) Target Market Companies with workers providing field-based services e.g. trades, security, health, councils, home services Higher value, more complex services best sold person-to-person e.g. energy, solar, media & broadband/telco Licences 22,362 1,325 Monthly ARPU $11.96 $99.43 Location * All as at 30 June 2018 Australia (68%) New Zealand (20%) UK (6%) US (3%) Other (3%) Australia (75%) US (22%) New Zealand (3%)

7 Executive Team 7

8 Path to Profitability 8 Calendar 2018 work plan: 1. Launch new Geo product 2. Market-based pricing 3. Branding and digital marketing 4. New channels 5. GeoPay

9 New Geo Product 9 Major upgrade based on thousands of hours of customer feedback improved user experience improved digital marketing conversions higher client retention market rate pricing Geo is so much easier and simpler to use. It s going to make such a difference to our business.

10 Geo: Pricing 10 Flagship application was underpriced Geo Licences & Monthly ARPU In H2 FY18 we migrated 30% of licences to market pricing $15 This drove incremental monthly revenue of $61k at 100% margin with a 51% increase in average ARPUs End game is a smaller, more profitable customer base on better products, paying market rates with high utilisation Process will be complete by 30 June ,000 40,000 30,000 20,000 Licences Monthly ARPU $12 $9 $6 10,000 $3 - Mar-13 Mar-14 Jun-15 Jun-16 Jun-17 Jun-18 Oct-18 $0

11 Digital Marketing 11 Objectives Scale this business via the web Tie in all resources to drive traffic, maximise trials and conversions Branding Flagship workforce management solution is Geo Salesforce management solution is Geo for Sales Digital Marketing Six product websites consolidated into Digital marketing relaunched in October

12 Channels 12 Go-to-market channel partnerships Ingram Micro Cloud has now activated Geo's new flagship product Ingram s only global mobile workforce productivity app: Geo s workforce mobility solution is the first and only one of its kind on our cloud marketplace and it is hotly anticipated... Lee Welch, Cloud Director Ingram Micro Ingram Micro Cloud: fully automated e-commerce platform used by ~200,000 solution providers globally Direct to Enterprise Small, dedicated sales team in place in ANZ

13 GeoPay 13 ~70% of Geo s customers complete one-off jobs and invoice daily, collecting hundreds of millions of dollars pa GeoPay enables them to collect money at sale, improving cash flows For each $1 collected via GeoPay, GEO receives a 0.5 cent commission Few customers currently use GeoPay, so we upgraded the app in CY18 to capitalise on the perceived opportunity GEO s payments partner failed to deliver on trials, delaying the project Activation deferred until FY20

14 Geo for Sales 14 The market leader in ANZ field sales, with a large global market FY18 Prioritised our focus on the core product, Geo, over Geo for Sales Geo for Sales revenues declined 12.5% $5m non-cash write-down of related intangibles The Fix Strategic review completed late FY18 Renewed focus on product and customers Faster customer deployment via in-house integrations New marketing resources and programmes in place Map data On-site contracting Manage & assign territory

15 Outlook 15 Geo ARPU increases are driving revenue growth in H1 New customer numbers are expected to drive growth in H2 from new product, digital relaunch, Ingram and direct sales Geo for Sales reboot is underway EBITDA break even run rate is expected within current cash reserves Expect GEO to move into profit with a smaller, highlyengaged customer base YTD performance supports FY19 guidance: 30%+ revenue growth EBITDA break even run rate middle of CY19

16 Agenda 16 Chair Review CEO Presentation Questions Formal Business

17 Resolution Proxies 17 Resolution For Against Open 1. Re-election of Roger Sharp 30,748, % 30, % 368, % 2. Election of Mark Rushworth 30,748, % 30, % 368, % 3. Election of Rod Snodgrass 30,748, % 30, % 368, % 4. Auditor s fees 30,777, % 3, % 366, %

18 Annual General Meeting 13 November 2018 Making it easier out there

19 Glossary 19 ARPU: ARR: Underlying Cash Flow: Underlying EBITDA: Average revenue per user Annualised Recurring Revenue (ARR) is a non-gaap financial performance measure used internally by GEO as a basis for its current revenue run rate. ARR is calculated based on the subscription revenue from its GEO and GEO for Sales solutions in the reference month and then annualised using exchange rates at the end of the reference month Monthly operating and investing cash flows adjusted for impact of significant annual payments / unusual payment timings to show underlying trend Underlying EBITDA is EBITDA less non-operational revenue and expenses and does not have a standardised meaning prescribed by NZ GAAP. In FY18 it excluded the impact of $0.7m in ASX migration costs and associated restructure costs (FY17: $184k). In FY17, Underlying EBITDA excluded the impact of a $1.0m write back of a contingent liability previously taken up at the time of acquisition of Interface IT