IMImobile PLC Interim Results Overview Six Months Ended 30 September 2018
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
IMImobile PLC Interim Results Overview Six Months Ended 30 September 2018 Jay Patel, Chief Executive Officer Mike Jefferies, Chief Financial Officer November 2018
H1 Group highlights - continued growth and strategic progress
Financial highlights Operational highlights
▪ Revenue up 26% (15% organic) to £67.2m (2017: £53.1m) ▪ Strong period of new blue chip client wins in the UK and South Africa
▪ Gross profit up 18% (3% organic) to £29.2m (2017: £24.7m) ▪ Enhanced operating leverage: EBITDA margin up 26.4% from 23.1%
▪ Strong organic gross profit growth from monthly recurring ▪ Partnership momentum: initial new client wins
revenues of 18% (excluding impact of MTN)
▪ Continued investment in innovation – new messaging channels including
▪ Adjusted EBITDA up 35% to £7.7m (2017: £5.7m)
Apple Business Chat & Rich Communication Services
▪ Adjusted profit after tax up 40% to £4.7m (2017: £3.3m)
▪ Strengthened position in North America – Impact Mobile acquisition
▪ Diluted adjusted EPS up 35% to 6.6p (2017: 4.8p)
▪ Post period end acquisition of Express Pigeon: a US email marketing
▪ Cash and cash equivalents at 30 September 2018 of £12.0m
platform provider
(31 March 2018: £15.7m)
H1 Revenue (£m) H1 Gross Profit (£m) H1 EBITDA (£m)
80 35 9
70 67.2 29.2 8 7.7
30
7
60 24.7
53.1 25
5.7
50 20.2
6 5.3
20
16.6 5 4.5
40 36.0
3.8
27.8 15 13.5 4
30
21.5 3
10
20
2
10 5
1
0 0 0
FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19
(EBITDA margin: adjusted EBITDA / gross profit)
Interim Results Presentation FY19, 30 September 2018 2
A global cloud communications software and solutions provider
Who we are Our vision
▪ #1 in UK, South African and Canadian markets
A world in which consumers are
▪ 1,100+ employees globally, HQ in London, offices in
Dubai, Hyderabad, Johannesburg and Toronto delivered great customer experiences
▪ Listed on London Stock Exchange’s AIM Market
through continuous, seamless
engagement, powered by best in
▪ Track record of profitable and cash generative
growth for more than 16 years class software and automation.
At scale Our customers
CL CL CL CL CL
LOGO LOGO LOGO LOGO LOGO
CL CL CL CL CL
LOGO LOGO LOGO LOGO LOGO
Interim Results Presentation FY19, 30 September 2018 3
Market opportunity and positioning Interim Results Presentation FY19, 30 September 2018
There is a global B2C communications opportunity driven by technology
Businesses will communicate with consumers as easily as people communicate with each other
BETTER BETTER BETTER
NETWORKS + DEVICES + SOFTWARE = DISRUPTION
Person to person communications have Businesses face challenges in creating
already changed seamless customer experience
1.3 billion users on FB Messenger
Legacy systems Regulations
1.5 billion users on Whatsapp
Complex integrations Existing contracts
1.3 billion active Apple devices
Interim Results Presentation FY19, 30 September 2018 5
There are major shifts within the communications market
New digital and mobile Change in consumer Pressure for businesses to
communication channels expectations digitally transform
Automation of
Personalised customer service
Relevant Contextual and
real-time marketing
Real-time
24/7 service
availability
Two-way
Moving infrastructure
Apple Business Chat | RCS | WhatsApp Contextual into the cloud
Big opportunities for scalable communications solution providers
Interim Results Presentation FY19, 30 September 2018 6
The CPaaS market opportunity
50% CAGR $10.9bn by 2022 30% by 2020
End-user spending on CPaaS expected
The CPaaS market is forecast to grow By 2020, 30% of enterprises will deploy
to grow at a CAGR rate of nearly 50%
from $2bn in 2017 to $10.9bn in 2022. CPaaS use cases from 5% in 2017.
between 2016 and 2021.
CPaaS (Communications Platform as a Service) is a cloud-based middleware on which you can develop, run
and distribute communications software.
A CPaaS platform offers APIs that simplify the integration of communications capabilities into any app, service or
business process. It is a flexible solution that gives greater scalability while reducing time to implementation,
meaning a faster route to enhanced customer experience.
Interim Results Presentation FY19, 30 September 2018 7
Our position in the customer engagement landscape
Outbound Inbound
Marketing Contact Centres
communications Voice based
Service
communications
Email
IMImobile’s key differentiators
▪ Provide end-to-end automation and
integration for our clients
▪ Comprehensive self developed
market leading technology & IP
(Recent Salesforce
acquisition)
▪ Software purpose built for large
enterprise businesses as opposed to
other vendors who target SMB or
developer audience
Integration & Business
Process automation
Interim Results Presentation FY19, 30 September 2018 8
Customer Updates
9
Improving the parcel delivery experience
▪ Hermes deployed IMIconnect as part of their
‘Digital Futures’ programme
▪ IMIconnect will enhance millions of delivery
notifications each month of behalf of
Hermes’s retail clients
▪ Customer journeys currently built include:
“
1. Geo fencing – provides a location for each parcel
with delivery updates sent over a choice of IMImobile has been instrumental in helping to
channels deliver our ‘Digital Futures’ programme that
prioritises customer experience through
2. ‘SafePlace’ photo – photographic evidence that
”
investment in innovation and technology.
parcels have been deposited, providing
increased confidence of successful delivery Chris Ashworth, Chief Information Officer at Hermes
Deployed in less than 3 months
Interim Results Presentation FY19, 30 September 2018 10Delivery
Notifications
Hermes
Interim Results Presentation FY19, 30 September 2018 11Powering marketing communications automation
▪ Capitec is South Africa’s fastest growing bank
▪ IMImobile delivers a centralised client
communications hub to create a more
personalised digital banking experience for
Capitec’s 10 million customers
▪ IMIconnect speeds up the delivery of new
innovative banking services such as:
› Account & transaction notifications
“
› Credit status checks
› Customer feedback surveys We are pleased to work with IMImobile,
a partner with proven experience and
”
track record in the financial services
sector.
Francois Viviers, Executive: Marketing & Communications
Interim Results Presentation FY19, 30 September 2018 12UK’s first Apple Business Chat service
▪ npower became the first client for IMImobile
using Apple Business Chat
▪ A new way for consumers to connect directly
with businesses using the Messages app on
Apple devices
▪ Using the new messaging capability to improve
customer experience for customers looking to
switch to a smart meter
› Send rich media messages to customers
illustrating smart meter benefits and installation
process
› Customer service agents can trigger a post-chat
survey for feedback using emojis
Interim Results Presentation FY19, 30 September 2018 13First to offer new channels to our customers
Apple Business Chat Google RCS
IMImobile is one of 18 approved providers IMImobile is one of 23 companies globally
globally to offer Apple Business Chat that joined Google’s Early Access Program
Interim Results Presentation FY19, 30 September 2018 14Account growth: Tier 1 telecom service provider, UK
Account Growth (p.a) Volume of Customer Interactions
Managed by our Products
>100m
> £1M SaaS fees
(contracted)
Event triggered
2019
customer journey
2021
orchestration
>45m
Marketing Automation
< £1M SaaS fees
(contracted) >30m
Multi-channel
2016
Campaign >15m
2018
Management
2.5m
£100-500K projects
2014 2015 2016 2017 2018 2019
Email Marketing
2015 Campaigns
< £100K projects 40+ customers forecasted for
2014
Ad-hoc Marketing
Campaigns
over £0.5m revenue at full year
Back-end System Integration (33 in FY18 & 27 in FY17)
Interim Results Presentation FY19, 30 September 2018 15Financial Results
Unaudited
Interim Results Preliminary
PresentationResults
FY19,Year End March 2018
30 September 2018Commercial Model
Gross Profit Split*
25% 40% 20% 15%
Fixed fees Usage based Transactional Non
recurring
Contracted Volume of e-mail, SMS, MMS, Fees based on Licences & one-off professional
revenues push notification, sessions etc. revenue transactions services
Monthly Recurring Revenue
(MRR)
~85%
*Indicative gross profit split
Interim Results Presentation FY19, 30 September 2018 17Adjusted trading performance
Gross profit split
Sep-18 Sep-17 Growth
Year ended
£m £m %
Revenue 67.2 53.1 +26%
Gross profit 29.2 24.7 +18%
Administrative expenses
(21.5) (19.0) +13%
(excluding D&A)
Adjusted EBITDA 7.7 5.7 +35%
EBITDA margin 26.4% 23.1%
Adjusted profit after tax 4.7 3.3 +40%
Diluted adjusted EPS 6.6p 4.8p +35%
Interim Results Presentation FY19, 30 September 2018 18Regional overview – Europe & Americas
Financial highlights Operational highlights
▪ Contributed 70% of Group gross profit, representing year on year gross
▪ Revenue £51.0m (2017: £35.2m)
profit growth of 48%, of which 21% is organic
▪ Gross profit £20.3m (2017: £13.8m)
▪ Significant new blue chip client wins across multiple sectors including
▪ Gross margin 39.8% (2017: 39.1%) Hermes and npower
H1 Gross Profit in £m
▪ Continued to generate substantial upsell revenue from established clients
25
e.g. renewed substantial contract with tier one UK mobile operator
20.3
20
▪ Partner programme has gained momentum in the region
13.8
15
▪ Acquisition update:
9.9 10.6
10
6.6 ▪ Healthcare Communications – meeting significant growth
expectations
5
▪ Impact Mobile acquisition expanded North American operations
0
FY15 FY16 FY17 FY18 FY19
MRR License & professional services
▪ Post period end acquisition of Express Pigeon
The AA The AA The AA The AA The AA The AA The AA
Interim Results Presentation FY19, 30 September 2018 19Regional overview – MEA and India & SEA
Middle East & Africa India & South East Asia
Gross Profit £4.6m (2017: £5.6m) Gross Profit £4.3m (2017: £5.3m)
8 6 5.3
6.7
7
5 4.3
5.6
6
4.4 4.5 4.6 4
5
2.9
4 3 2.5
2.2
3
2
2
1
1
0 0
FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19
MRR License & professional services MRR License & professional services
▪ Continued to experience headwinds due to trading ▪ Experienced a decline due to recognition of
conditions in Nigeria and new group policies with our deployments for Telenor in the first half of last year
largest client in the region ▪ Expanded telecom service offering into new territories
▪ Expanded our footprint in the region, deploying new e.g. Sri Lanka and Myanmar
projects in Jordan and Palestine. ▪ Textlocal India has onboarded over 6,000 new
▪ 20% gross profit growth in enterprise revenues customers during the period
▪ Significant new client wins in the banking sector
Interim Results Presentation FY19, 30 September 2018 20Balance sheet
Sep-18 Mar-18 Sep-18 Mar-18
Assets Liabilities
£m £m £m £m
Cash 12.0 15.7 Trade payables and accruals 28.3 27.6
Trade receivables 34.7 28.8 Pass through revenues 5.1 5.7
Pass through revenues 4.5 5.2 Other current liabilities 18.9 12.7
Other current assets 5.2 6.1
Current liabilities 52.3 46.0
Current assets 56.4 55.8
Non-current liabilities 25.3 14.4
Goodwill 41.6 33.3
Acquired intangibles 19.9 12.3 Total liabilities 77.6 60.4
Other intangible assets 11.0 8.1
PPE 4.3 4.6
Other non-current assets 0.6 0.5
High quality receivables
Non-current assets 77.4 58.8
Total assets 133.8 114.6
Strong balance sheet
Net Assets 56.2 54.2
Interim Results Presentation FY19, 30 September 2018 21Adjusted cashflow
Sep-18 Sep-17 Net cash
Period ended
£m £m
Sep-18 Mar-18
Cash generated from operations 5.5 5.7 Period ended
£m £m
Net cash from operations 5.0 5.4 Cash 12.0 15.7
Investing activities (20.1) (2.9) Borrowings (21.3) (11.4)
Financing activities 11.3 (0.1)
Net (debt)/cash (9.3) 4.3
Cash and cash equivalents at
15.7 14.7
beginning of period
Foreign exchange on opening Cash conversion of 80%
0.1 (1.7)
balances
Cash and cash equivalents at end
Additional debt facility of £10m
12.0 15.4
of period
Interim Results Presentation FY19, 30 September 2018 22Growth Strategy Interim Results Presentation FY19, 30 September 2018
Growth Strategy
1 2 + 3 + 4
Grow our share of Accelerate market Introducing new Leverage acquisitions for
interactions for existing penetration through innovative customer market distribution
customers partnerships engagement technologies
Canada’s leading provider of
end-to-end mobile
engagement solutions
Established track record of performance since IPO
3 year gross profit CAGR of 21%
Interim Results Presentation FY19, 30 September 2018 24 24Summary and outlook
▪ Technology landscape moving in the direction that we anticipated
▪ Strongly positioned to benefit from disruption in business to consumer communications
▪ Market leader in UK, South Africa & Canada
▪ Number of new blue chip client wins and expansion with existing clients
▪ Strengthened position in North America with acquisition of Impact Mobile
▪ Continued investment in innovation
▪ FY19 trading in line with management expectations
Interim Results Presentation FY19, 30 September 2018 25Thank you
London High Wycombe Theale Johannesburg
IMImobile Europe Ltd. Swan House IMImobile Intelligent IMImobile South Africa
5 St John’s Lane White Hart Street Networks Clearwater Office Park,
London High Wycombe Abbey House Building no. 3, First Floor.
EC1M 4BH HP11 2HL 1650 Arlington Business Corner Christiaan De Wet and
United Kingdom United Kingdom Park, Theale Millennium Boulevard,
RG7 4SA Strubensvalley,
United Kingdom Roodepoort, Gauteng,
South Africa
Dubai Hyderabad Little Rock Toronto
IMImobile VAS Ltd. FZE IMI Mobile Pvt. Ltd IMImobile North America IMImobile Canada
P.O. Box 293593 Plot No. 770 201 E. Markham, 4 King Street West
Office # 624, Building 5EA Road No. 44 Suite 150 Suite 1700
Dubai Airport Free Zone, Jubilee Hills Little Rock, Toronto, Ontario
Dubai, U.A.E Hyderabad – 500 033 AR 72201 M5H 1B6
USA Canada
Interim Results Presentation FY19, 30 September 2018You can also read
