2016 Annual Shareholders Meeting. November 4, 2016

Transcription

1 2016 Annual Shareholders Meeting November 4, 2016

2 Agenda 1. Chairman s address 2. CEO s report 3. CFO s report 4. Formal business - Resolutions 5. General business and questions 6. Reception

3 Chairman s Address Greg Cross

4 Chairman s Comments Growth of 24% in operating revenue to $35m v $28m in FY 15 Gross margin 77% ARR 1 of $31.2m down 3% constant currency 2 o Sales transition 100% complete Hire of new CRO Implemented new sales model Rebuilt Sales team o Marketing transition in process Hire of new CMO Implemented new marketing strategy 4

5 Chairman s Comments Retention rate 84% by value o Customer Success Group 100% complete Hired new VP CSG Disappointing turnover of 3 key customers Cash of $6.8m - Net cash inflow $1.2m Net loss before tax reduced from $7.6m to $162k o Reduced headcount to 152 FTEs Share price New Product Innovation o Core component of our strategy o Key to competitive differentiation 5

6 CEO s Report Chris Brennan

7 Key Takeaways We create value to shareholders by delivering value for our customers. We are well positioned to remain the leader in predictive product discovery. We are in the early stages of a multi-billion dollar market opportunity. 04 We have a clear vision for growth and profitability. 7

8 Creating Value for Customers SLI Gives Customers Technical and Business Advantages Technical Buyer Engine Business Increases customers revenue profitably Real ROI Continuous Innovation Peace of Mind Increased traffic Convert more shoppers to buyers Increase order values SaaS Future-proof platform Extensible architecture Global Scalable & secure cloud solution World class service & support 8

9 Predictive Product Discovery: The Future of E-Commerce WHAT IS THIS USER ON THIS WEBSITE MOST LIKELY TO BUY RIGHT NOW? Any Data Stream User Behaviour Reviews Demographics Social Product Info Personal Data THE BUYER ENGINE MACHINE-LEARNING PLATFORM ANALYTICS DEEP LEARNING ONE TO MANY ONE TO FEW ONE TO ONE Relevant & Personalised For: 9 User Types Anonymous Known User Segments Geography Technology User Intent Know What They Want Guided Selling

10 More Sales with Personalisation boots Before After Female Shopper Male Shopper 10

11 SLI Creates a Virtuous Circle Better User Experience More User Behaviour Better user experience converts more shoppers to buyers and increases AOVs Increased site traffic powers Buyer Engine to improve user experience More Traffic Drives new site traffic based on analysis of user behaviour 11

12 Retailers Grow Faster with SLI 19% 45% 78% 20% 72% Increase in Site-Wide Conversion Decrease in Bounce Rate Conversion Rate Increase for Search Users Increase in Average Order Value Increase in Average Revenue Per Visit The search relevance, analytics and merchandising controls are what sets SLI apart. Everlast saw 6x higher conversions and attributed 10% of revenue to SLI search Mike Ebert E-commerce Director of Everlast Worldwide S O U R C E : S U R V E Y O F S L I C U S T O M E R S U S I N G S E L E C T D A T A F R O M

13 Growth Vectors WE HAVE BARELY SCRATCHED THE SURFACE OF THE MARKET OPPORTUNITY I N DUSTRY S E G M E NTS P RODUCT M AR K E T P O S I TI O N B2C Current B2C New B2B Organic 3 rd Party Mid- Enterprise Lower End Existing Geographical Markets Current Customers New Customers New Geographical Markets New Customers Strong Green Field Minimal 13

14 Leading Retailers Choose SLI Fashion Gifts & Specialty Goods Health & Beauty Home & Garden Food & Beverage & more 14

15 A US$ 1.7 Billion Market Opportunity Go To Market Strategy Total E-Commerce ~$2 Trillion Market Share 12% Growth Enterprise $100m to $1B in Online Revenue > 5,000 products 750 global targets $75m opportunity Total Retail ~$24 Trillion Market 4% Growth Mid-Enterprise $50m to $500m in Online Revenue > 2,000 products 2,500 global targets $125m opportunity Mid-Market $3m to $100m in Online Revenue > 500 products 50,000 global targets $1.5b opportunity S O U R C E : I N T E R N E T R E T A I L E R T O P & B U I L T W I T H S O U R C E : E M A R K E T E R 15

16 Annualised Recurring Revenue NZ$ m Millions Restoring High Quality, Growing Subscription Revenue ARR at June Constant Currency Previous year Increase 16

17 Billions More IR Top 1000 Retailers are Using SLI than any other SaaS Provider Total 2016 IR Top 1000 US Customers by SaaS Vendor #1 THIRD STRAIGHT YEAR Total Queries on SLI Platform Total Queries on SLI Platform 17

18 A Big Opportunity to Grow the 576 Customers we had at 30 June 2016 WITHOUT ANY GROWTH FROM TIER INCREASES P R O D U C TS Landing Page Creator I L L U S TRATI V E P R I C I N G M O D E L CURRENT P E N E TRATI O N $ % Mobile $ % 576 Accounts at Full Product Penetration Current Revenue (NZD): $31m Learning Recommendations $ % Learning Navigation $ % Site Champion $ % Learning Search $ % Potential Revenue at 100% penetration for existing customers (NZD): $62m 18

19 15 Years of Innovation THE NEXT INNOVATION WILL COME FROM THE COMPANY WITH A HISTORY OF INNOVATION One to Few >> One to One Pioneered Machine Learning Site Search Tied Click Behavior to Purchase Information 2001 Patented Learning Search 2004 Site Champion 2006 Learning Navigation 2008 Commerce Console 2010 Mobile & Rich Auto Complete 2014 Personalization & Recommendations Patents 2015 Landing Page Creator Machine Learning Platform Learning Search: Global Brain Learning Search: Keyword Suggestor Rich Autocomplete Algorithm 19

20 Targeting Sustainable Growth Restore growth, achieve sustainable profitability and positive cash flow Growth in NAM Upselling to our existing customers, especially Site Champion Restoring customer retention to historic levels Selling the value of the Buyer Engine and the application stack to drive increases in ACV 20

21 CFO s Report Rod Garrett

22 Income statement - NZD Jun Jun 15 ARR (constant currency) 31,191 32,111 Operating Revenue 35,006 28,126 Other Income Total Revenue 35,691 28,766 Delivery Costs 7,958 7,211 Growth Costs 17,631 20,124 Other Costs 9,975 9,785 Exchange (Gain)/Loss 289 (804) Total Costs 35,853 36,316 Loss Before Tax (162) (7,550) Gross Margin 77.3% 74.4% 22

23 Cashflow NZD Jun Jun 15 Receipts from customers 36,148 27,938 Payments made to suppliers and employees (35,936) (34,193) Other net cash flows from operating activities Cash flows from operating activities 808 (5,638) Cash flows from investing and financing activities 375 (169) Net increase/(decrease) in cash and cash equivalents 1,183 (5,807) Opening cash balance 5,582 11,389 Closing cash balance 6,765 5,582 23

24 Formal Business - Resolutions

25 Item 1 Financial Statements: To receive and consider the financial statements of the Company for the year ended 30 June 2016, together with the auditors report on such financial statements, both as contained in the Company s 2016 Annual Report.

26 Item 2 - resolution Resolution 1 Election of Director: that Greg Cross, who retires by rotation in accordance with clause 25 of the Company's constitution and in accordance with NZX Main Board Listing Rule , and, who being eligible, offers himself for re-election as a director of the Company, be re-elected a director of the Company. Resolution 2 Election of Director: that Shaun Ryan, who retires by rotation in accordance with clause 25 of the Company's constitution and in accordance with NZX Main Board Listing Rule , and, who being eligible, offers himself for election as a director of the Company, be elected a director of the Company.

27 Item 3 - resolution Resolution 3 Appointment and remuneration of the Auditors: To record the reappointment of PricewaterhouseCoopers as the Company s auditor and to authorise the Directors to fix the remuneration of the auditor for the ensuing year.

28 General Business and Questions

29 Thank you.

30 Endnote [1] Annualised Recurring Revenue (ARR) is a non-gaap financial performance measure used internally by SLI as a basis for its expected forward revenue. ARR is calculated based on the subscription revenue from the existing customer base in the reference month and then annualised using exchange rates at the end of the reference month. ARR does not account for changes in behaviour of customers. For the Site Champion component of ARR it is necessary to apply judgement to mitigate the effects of one-off events that impact the reference month revenue of the calculation. [2] On a reported basis the reduction in ARR over the past 12 months was 10%