IMImobile PLC Interim Results Overview Six Months Ended 30 September 2017

Transcription

1 IMImobile PLC Interim Results Overview Six Months Ended 30 September 2017 Jay Patel, Chief Executive Officer Mike Jefferies, Chief Financial Officer November 2017

2 IMImobile sits at the heart of digital customer interactions Who we are What we do Why clients use us Market leader of cloud communication software and services for digital interactions Provide software and tools to help businesses automate and improve customer interactions Best of breed over 15 years experience in managing digital communication channels Profitable and cash generative growth for more than 10 years 950+ employees globally, HQ in London, offices in Atlanta, Dubai, Hyderabad and Johannesburg Enable businesses to use mobile and digital technologies to communicate better with customers whilst reducing costs Innovation strong track record of delivering innovation for leading enterprises Enterprise grade 24/7 global cloud managed service infrastructure SITA SITA SITA SITA 2

3 Strong profitable cash generative growth Financial Highlights H1 Gross Profit m H1 EBITDA m Revenue up 48% to 53.1m Gross profit up 22% to 24.7m EBITDA up 8% to 5.7m Adjusted profit after tax up 3% to 3.3m Diluted adjusted EPS up 1% to 4.8p Cash generated from operating activities of 5.7m representing operating cash conversion of 100% FY13 FY14 FY15 FY16 FY17 FY FY13 FY14 FY15 FY16 FY17 FY18 Operational Highlights Continued organic growth 10% organic gross profit growth, the Group has grown organically in every reporting period since IPO in H Consolidated UK market position established leader in digital and mobile notifications in key consumer vertical (financial services, logistics, utilities, telecoms) Acceleration of partnership activities new commercial and technical partnerships established (BT, KCOM, NICE incontact) Strong growth in SEA deployments under new relationship with Telenor Group progressing well US investment signed first enterprise client through reseller agreement with US mobile operators; post period acquisition of Sumotext completed Synergies from acquisitions starting to progress cross selling of core IMImobile products to clients of Textlocal, Archer Digital and Infracast 3

4 The How challenges we help we help our clients customers with 4

5 The challenge of managing digital customer interactions Business Applications Communication Channels Appointment Reminders COMPLEX Fraud Alerts TIME CONSUMING Disparate legacy systems Parcel Notifications FAST CHANGING Live Chat REGULATIONS Music & video content 5

6 IMIconnect video 6

7 Our cloud infrastructure supports billions of digital interactions Operator Banks Utilities Retail Public Sector Contact Centre Logistics Travel IMImobile Cloud Applications Agent application for two-way Enables the automation of customer Real-time, interactive multi- Content management and Enables broadcasters to Market leading mobile messaging interactive messaging chats in queries and actions through omnii- channel campaigns at each point digital service delivery centralise, manage and interact platform serving small and contact centres channel conversations of the customer life cycle platform application with audiences via social media medium size businesses (SMBs) IMImobile Cloud Platform & Enablers Adaptive Intelligence Layer NLP Machine Learning Context Mapping Libraries New features Consent Management for GDPR compliance New integrations Enterprise cloud communication platform - 24/7 Global Managed Service Infrastructure Enabler Layer Global MNO Connectivity OTT & IP Messaging Device Database Voice Gateway Payments Cisco, Genesys, Netcracker Recognition Shortlisted for UK National Innovation Award 2017 (Virtual Customer Assistant) Best Cloud Communications Software Company2017 (TMT Technology Award) 7

8 We power banking alerts and notifications across all channels Customer Self Care Chatbots on FB Proactive Alerts & Notifications My Bank My Bank IMIchat used for multi-channel two-way customer service interactions across SMS and Facebook Messenger IMIconnect used across several Line of Businesses for Fraud Management, Account Management and e-billing use cases My Bank My Bank My Bank My Bank Delivering messaging strategies for three of the top four UK retail banking groups. Real time account balances Transfer funds Report a stolen card Over 14 different notifications Alerts for cash withdrawal, direct debit account balances, transfer funds etc. 8

9 We enable proactive two way communications for leading utilities Engineer Bookings & Appointment Reminders Meter Reading & Customer Invoicing Delivering proactive communication to avoid inbound calls into Call Centres for low value enquiries such as meter readings. Two-way actionable communication On customer s preferred messaging channel Automated creation of service ticket in underlying system Sent only during social hours Conversational approach to improve customer experience 9

10 We support digital lifestyle services for large mobile operator groups Delivering innovative entertainment services Virtualising network capabilities and services Deploying new customer self-care solutions Helping mobile operators to utilise digital communication channels to optimise customer experience for rich digital content services. Live in 20 countries 100 million charging transactions 17 million unique users per month Cloud Digital Service Delivery Platform VAS Virtualisation System and services Self-care via FB Messenger 6 different functions, e.g. top-ups Seamless agent handover via live-chat 10

11 Investing in AI, automation and new communication channels RCS - The Next-generation Messaging Standard Chatbot - Customer Service Automation AI & NLP - Conversational Customer Engagement 11

12 Financial Results Six months ending 30 September

13 Commercial model Gross Profit Split* 20% 40% 25% 15% Fixed fees Usage based Transactional Non recurring Contracted revenues Volume of , SMS, MMS, push notification, sessions etc. Fees based on revenue transactions Licences & one-off professional services Monthly Recurring Revenue (MRR) ~85% *Indicative Gross Profit Split 13

14 Strong financial performance (Financial Results Six Months Ended 30 September 2017) Financial highlights Revenue up 48% (organic 12%) to 53.1m (2016: 36.0m) Gross profit up 22% (organic 10%) to 24.7m (2016: 20.2m) EBITDA up 8% to 5.7m (2016: 5.3m) Adjusted profit after tax up 3% to 3.3m (2016: 3.3m) Diluted adjusted EPS growth of 1% to 4.8p (2016: 4.8p) Cash and cash equivalents at 30 September 2017 of 15.4m (31 March 2017: 14.7m) H1 Revenue m H1 Gross Profit m H1 EBITDA m FY13 FY14 FY15 FY16 FY17 FY FY13 FY14 FY15 FY16 FY17 FY FY13 FY14 FY15 FY16 FY17 FY18 14

15 Growth in all key metrics Adjusted trading performance Gross profit split Period ended Sep-17 m Sep-16 m Growth % Revenue % Gross profit % 21% September 23% 56% 14% September 33% 53% Administrative expenses (excluding D&A) (19.0) (14.9) +27% EBITDA % EBITDA margin* 23.1% 26.0% Profit before tax % Diluted EPS 4.8p 4.8p +1% Continued investment in future Continued growth investment in future growth Sales & Marketing Major deployments Partnerships US Textlocal India 82% 3 Year Performance Revenue CAGR of 35% Gross profit CAGR of 22% EBITDA CAGR of 15% *EBITDA margin calculated as EBITDA over Gross Profit 15

16 Strong financial position Balance sheet Assets Cash Trade receivables Pass through revenues Other current assets Sep-17 m Mar-17 m Current assets Goodwill Acquired intangibles Other intangible assets PPE Other non-current assets Non-current assets Total assets Net Assets Liabilities Trade payables and accruals Pass through revenues Other current liabilities Minimal debt Ability to leverage High quality receivable Sep-17 m Mar-17 m Current liabilities Non-current liabilities Total liabilities

17 Excellent cash conversion Cashflow Historic Cash Generation Period ended Sep-17 m Sep-16 m Cash generated from operations Net cash from operations FY13 FY14 FY15 FY16 FY Investing activities (3.0) (2.2) Financing activities (0.1) Cash and cash equivalents at beginning of period Foreign exchange on opening balances Cash and cash equivalents at end of period (1.7) (0.8) Net cash from operating activities ( m) Acquisitions ( m) 100% conversion of EBITDA to cash from operations Strong cash position 17

18 Regional Updates Six months ending 30 September

19 Europe & Americas Financial highlights Revenue up 83% to 35.2m (2016: 19.2m) Gross profit up 30% (organic 7%) to 13.7m (2016: 10.6m) Gross margin 39.1% (2016: 55.2%) H1 Gross Profit m FY14 FY15 FY16 FY17 FY18 MRR License & professional services Operational highlights UK market leader for digital notifications in financial services sector (now serving three of the top four UK retail banking groups) New client wins in UK and US for automation of customer service interactions in logistics, retail and utilities sector (deployment begins Q1 2018) Established commercial partnership and reseller agreements with BT, KCOM, NICE incontact, and SITA Textlocal has grown strongly Year-on-Year and continues to attract significant new clients in the leisure, gambling, insurance and public sector Post period, completed acquisition of Sumotext provides strong cross selling opportunities of IMI products to the enterprise market in the US SITA SITA 19

20 Strategic acquisition M&A Highlight Leading provider of mobile messaging solutions in the US, founded in 2007 Established client base in government, travel, retail, healthcare sector as well as brands, agencies and non-profit organisations Complementary customer and product portfolio, providing significant cross-sell and up-sell opportunities into US enterprise market Consideration between $4.5m and $6.0m payable in cash Expected to enhance Group earnings during the year ending 31 March 2019 Clients include: 20

21 Middle East & Africa Financial highlights Revenue down 21% to 9.1m (2016: 11.6m) Gross profit down 17% to 5.6m (2016: 6.7m) Gross margin 61.4% (2016: 58.2%) Operational highlights Launched new entertainment services with MTN to support it s rich digital content service offering across Africa Re-branded Archer Digital to IMImobile South Africa H1 Gross Profit m Expect deployment of IMIconnect and IMIcampaign into a new banking client in Q Secured new client, a leading PayTV operator and signed partnership agreement with Blue Label Mobile, South Africa s leading telecom distributor Nigeria now represents 2% of gross profit vs 6% in FY FY14 FY15 FY16 FY17 FY18 MRR License & professional services SITA SITA 21

22 India & South East Asia Financial highlights Revenue up 69% to 8.8m (2016: 5.2m) Gross profit up 84% to 5.3m (2016: 2.9m) Gross margin 60.1% (2016: 55.3%) H1 Gross Profit m Operational highlights Strong performance driven by deployments for Telenor Group in Malaysia, Bangladesh, Thailand and in the public sector for Government of Telangana Continued to grow business by working with brands and agencies as they start to utilise mobile for customer communications Business in Myanmar is growing, further opportunities for growth in the telecom and enterprise market Textlocal India has grown significantly and we continue to invest in customer acquisition through digital marketing 0.0 FY14 FY15 FY16 FY17 FY18 MRR License & professional services SITA SITA 22

23 Growth Strategy 23

24 Growth strategy Grow revenue from existing customers Accelerate growth via channel partners Continue investment in products + technology Strategic acquisition Expand geographic footprint Become the trusted technology vendor for digital customer interaction and maximise cross-selling opportunities Extend distribution of products through channel partners via joint go-to-market initiatives Invest in new technologies ahead of market demand and leverages new emerging communication channels Maintain a strong balance sheet to pursue acquisitions that meet IMI s strict acquisition criteria Focus on expansion in strategic geographic markets (US, Germany, South Africa, and South Asia). 28 customers > 0.5m (FY17) 32 customers > 0.5m (projected) 24

25 Summary and outlook Favourable market dynamics with continued momentum of digital transformation and automation Market leading position and long standing client relationships provides solid foundation for organic growth Acceleration of growth through partnerships Continued investment in partnerships, product, sales and marketing FY18 trading in line with expectations 25

26 Thank you Atlanta London High Wycombe Johannesburg IMImobile Inc. Tower Place Peachtree Rd. NE. Atlanta, GA. USA IMImobile Europe Ltd. 5 St John s Lane London EC1M 4BH United Kingdom IMImobile Europe Ltd. Tempus Court Bellfield Road High Wycombe HP13 5HA United Kingdom IMImobile SA Clearwater Office Park, Building no. 3, First Floor. Corner Christiaan De Wet and Millennium Boulevard, Strubensvalley, Roodepoort, Gauteng, South Africa Dubai Hyderabad IMImobile VAS Ltd. FZE P.O. Box Office # 624, Building 5EA Dubai Airport Free Zone, Dubai, U.A.E IMI Mobile Pvt. Ltd Plot No. 770 Road No. 44 Jubilee Hills Hyderabad

27 This presentation has been prepared by IMImobile PLC (Company). This presentation does not constitute or form part of any offer to sell or issue, or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of the Company or in any other entity, nor shall this document or any part of it, or the fact of its presentation, form the basis of, or be relied on in connection with, any contract or investment decision, nor does it constitute a recommendation regarding the securities of the Company or any other company. The information in this presentation includes forward-looking statements that are based on the Company's or, as appropriate, the Company's directors' current expectations and projections about future events. These forward-looking statements may be identified by the use of forward-looking terminology, including without limitation the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or their negative or other variations or comparable terminology, or by discussion of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements, as well as those included in any other material discussed at any presentation, are subject to risks, uncertainties and assumptions about the Company and its subsidiaries and investments and the markets in which the Company operates. These risks include but are not limited to the development of its business, trends in its operating industry, and future capital expenditures. The events or circumstances referred to in the forward-looking statements may differ materially from those indicated in these forward-looking statements. Forward-looking statements may differ from actual results and none of the future projections, expectations, estimates or prospects in this presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the presentation. Statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The information contained in this presentation, including any forward-looking statements, is provided as at the date of this presentation. Subject to its disclosure obligations neither the Company nor any of its affiliates, or individuals acting on its behalf, undertakes to publicly update or revise any forward-looking statements or other information in this presentation, whether as a result of new information, future events or otherwise. As a result of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements as a prediction of actual results of the Company or otherwise. The information and opinions contained in this presentation and any other are material discussed verbally are subject to verification, completion and change without notice. Neither the Company nor its advisers and/or agents undertakes any obligation to provide any recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. No representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its affiliates (within the meaning of Rule 405 under the US Securities Act 1933) members, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation or any other material discussed verbally. None of the Company or any of its affiliates (as defined above), members, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with it.