Cxense ASA Q presentation

Transcription

1 Cxense ASA Q presentation 1

2 Important notice THIS PRESENTATION AND ITS ENCLOSURES AND APPENDICES (HEREINAFTER JOINTLY REFERRED TO AS THE PRESENTATION ) HAVE BEEN PREPARED BY CXENSE ASA (THE COMPANY ) EXCLUSIVELY FOR INFORMATION PURPOSES. THIS PRESENTATION HAS NOT BEEN REVIEWED OR REGISTERED WITH ANY PUBLIC AUTHORITY OR STOCK EXCHANGE. RECIPIENTS OF THIS PRESENTATION MAY NOT REPRODUCE, REDISTRIBUTE OR PASS ON, IN WHOLE OR IN PART, THE PRESENTATION TO ANY OTHER PERSON. THE CONTENTS OF THIS PRESENTATION ARE NOT TO BE CONSTRUED AS LEGAL, BUSINESS, INVESTMENT OR TAX ADVICE. EACH RECIPIENT SHOULD CONSULT WITH ITS OWN LEGAL, BUSINESS, INVESTMENT AND TAX ADVISER AS TO LEGAL, BUSINESS, INVESTMENT AND TAX ADVICE. THERE MAY HAVE BEEN CHANGES IN MATTERS, WHICH AFFECT THE COMPANY SUBSEQUENT TO THE DATE OF THIS PRESENTATION. NEITHER THE ISSUE NOR DELIVERY OF THIS PRESENTATION SHALL UNDER ANY CIRCUMSTANCE CREATE ANY IMPLICATION THAT THE INFORMATION CONTAINED HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO THE DATE HEREOF OR THAT THE AFFAIRS OF THE COMPANY HAVE NOT SINCE CHANGED, AND THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT ANY INFORMATION INCLUDED IN THIS PRESENTATION. THIS PRESENTATION INCLUDES AND IS BASED ON, AMONG OTHER THINGS, FORWARD-LOOKING INFORMATION AND STATEMENTS. SUCH FORWARD-LOOKING INFORMATION AND STATEMENTS ARE BASED ON THE CURRENT EXPECTATIONS, ESTIMATES AND PROJECTIONS OF THE COMPANY OR ASSUMPTIONS BASED ON INFORMATION AVAILABLE TO THE COMPANY. SUCH FORWARD- LOOKING INFORMATION AND STATEMENTS REFLECT CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS, UNCERTAINTIES AND ASSUMPTIONS. THE COMPANY CANNOT GIVE ANY ASSURANCE AS TO THE CORRECTNESS OF SUCH INFORMATION AND STATEMENTS. AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION, INCLUDING, AMONG OTHERS, RISKS OR UNCERTAINTIES ASSOCIATED WITH THE COMPANY S BUSINESS, SEGMENTS, DEVELOPMENT, GROWTH MANAGEMENT, FINANCING, MARKET ACCEPTANCE AND RELATIONS WITH CUSTOMERS, AND, MORE GENERALLY, GENERAL ECONOMIC AND BUSINESS CONDITIONS, CHANGES IN DOMESTIC AND FOREIGN LAWS AND REGULATIONS, TAXES, CHANGES IN COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN CURRENCY EXCHANGE RATES AND INTEREST RATES AND OTHER FACTORS. SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALISE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THIS DOCUMENT. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT THE INFORMATION INCLUDED IN THIS PRESENTATION. THIS PRESENTATION IS SUBJECT TO NORWEGIAN LAW, AND ANY DISPUTE ARISING IN RESPECT OF THIS PRESENTATION IS SUBJECT TO THE EXCLUSIVE JURISDICTION OF NORWEGIAN COURTS 2

3 Agenda Welcome and highlights Q Financials Q Tech update 3

4 Welcome and highlights Q Financials Q Tech update 4

5 Selected highlights Q Annualized currency adjusted run rate of USD 18.3m in December 2014, as compared to a Q run rate of USD 16.4m Quarterly currency adjusted SaaS segment revenue of USD 3.8m, which represents a Y/Y growth of 43% SaaS segment gross margin of 84% compared to 81% in the two previous quarters due to full effect from the change in hosting partners The cost cutting plan is moving forward as planned, and the company is aiming for monthly operating expenses of of USD 1.5 million, a reduction of more than 20% compared to September 2014 opex level North America is gaining traction, and was our strongest performing region in the quarter. The Q EBITDA for the SaaS segment was USD -3.3m. Adjusted for the expected full effect of the ongoing cost reductions as well as one-off items in the quarter, the loss would have been USD 1.5m 5

6 Selected contracts in Q APAC Publisher based in Hong Kong EMEA Newspaper based in Copenhagen Japan Largest retailer in Japan North America Publisher based in Utah, USA Latin America Broadcaster based in Buenos Aires 6

7 Record number of contracts in Q Strong momentum, and 34 new contracts signed in the quarter, a growth of 55% compared to Q December contracts represent a monthly recurring revenue of USD 73k and a yearly revenue of USD 876k The DMP (Data Management Platform) continues to gain traction First Bank and Finance contract signed in February 2015 North American operation bounced back after the two previous modest quarters, and we see significant opportunities in the region in per cent of the contracts in the quarter were up-sell to existing clients 7

8 Uplift in sales efficiency New MRR (monthly recurring revenue) per year 2012: USD 137k 2013: USD 161k 2014: USD 301k New MRR per sales rep. per year (sales efficiency) 2012: USD 15k 2013: USD 16k 1H 2014 annualized: USD 17k 2H 2014 annualized: USD 25k Dec closed annualized: USD 45k Churn 2012: USD 35k 2013: USD 39k 2014: USD145k (whereof USD 83k from our acquired portfolio) 8

9 Sales model with more people attacking the market High End sales The Elephant Hunters Serving the largest clients world wide within its sector 5 Regional Sales The five sales regions Professionals with local knowledge performing sales in a region 20 Online sales Cxense.com New self service offering on Cxense.com 2 The number of sales people from 20 to 27; a growth of 35% 9

10 Welcome and highlights Q Financials Q Tech update 10

11 Strong sales growth from Q to Q Cxense SaaS segment* revenue growth Growth drivers USDm Growth in existing customer base Capacity increase and upsell of new applications % Sale of recurring software licenses to new customers Gives accumulating revenue base 2 1 Acquisition of existing customer bases Upsell and value increase/leverage on acquired customer bases by connecting the EIE platform Gross Margin 0 Q Growth Q Q SaaS segment gross margin of 84%, compared to Q gross margin of 81% *Q (Q4 2013) Consolidated revenues (SaaS segment and PCAN segment) of USD 4.15million (USD 3.2 million) 11

12 KPIs for Q SaaS segment New recurring revenue New committed Monthly Recurring Revenue (MRR) of USD 116,6 thousand in Q New committed MRR of USD 73 thousand in Dec 2014 i.e. annualized runrate of USD 876 thousand New contracts / average deal size 34 new SaaS contracts in Q4 2014, compared to 22 last quarter Average deal size of new contracts is USD 3.4 thousand Churn New churn with full MRR effect of USD -33 thousand annualized run-rate effect of USD -132 thousand 12

13 Q4 USD appreciation with negative impact on revenue growth Cxense SaaS revenues Q to Q development, USD thousand Reported quarterly growth: 1.7% Currency adjusted quarterly growth: 7.6% ~85% of revenue is invoiced in other currencies than USD Q revenues Churn / Lost MRR New MRR Change in services and variable license revenues Currency effect Q revenues 13

14 Income statement SaaS segment P&L SaaS (USD thousands) Q Q Revenue COGS Gross Profit In % of revenue 84 % 81 % Employee benefits Wherof share based payements cost 136 Wherof share based social cost provisions and costs 76 Wherof salary and social restructuring prov. and costs 345 Other operating expenses Wherof office moving costs and restructuring costs 68 0 Wherof extraordinary/ special Wherof direct transaction costs Wherof one-off receivable provision Wherof R&D refund Total operating expenses Total operationg expenses adj EBITDA EBITDA adj Estimated full effect of cost reduction program 1299 EBITDA adjusted for est. full effect of cost reduction Revenues Growth negatively affected by USD hike versus other currencies 85% of recurring revenue base is invoiced in other currencies than USD Healthy currency adjusted growth Gross margin Increase versus previous quarters due to full effect of hosting cost improvements launched in Q Personnel costs Number of FTEs reduced from 118 at the end of Q to 95 after the reorganization Re-organization executed during Q limited cost effect in the quarter Q negatively affected by provisions for 2015 restructuring costs Full effect from cost reduction measures by June 2015, >80% by March 2015 Other OPEX Q comments Significant one-off effects as a result of re-organization and other one-off items. EBITDA USD -1.5 million adjusted for one-off effects and expected full effect of re-organization and cost reduction measures, a significant reduction vs Q adjusted EBITDA level of USD 3 million 14

15 Consolidated Statement of Financial Position USD thousands Non-current assets As at 31 Dec 2014 As at 31 Dec 2013 Goodwill Deferred tax assets Intangible assets Office machinery, equipment, etc Other financial assets Total non-current assets Current assets Trade receivables Other short-term assets Cash and cash equivalents Total current assets Assets classified as "held for sale" 0 0 Total Assets Total Equity Non-current liabilities Deferred tax liabilities Total non-current liabilities Non-current liabilities Trade payables Current taxes Other short-term liabilities Total current liabilities Liabilities related to assets "held for sale" 0 0 Total equity and liabilities Comments Total assets of USD 15.6 million Largest components: Goodwill and intangible non-current assets related to the acquisition of Emediate Cash Very limited fixed assets except for USD 240 thousand invested in hosting equipment under Office machinery, equipment etc. Q Trade receivables of USD 2.15 million (44 days) compared to USD 3.0 million (84 days) in Q Cash and cash equivalents of USD 2.8 million Other short term assets of USD 1.8 million including USD 1.1 million escrow account related to Emediate acquisition. Current liabilities of USD 5.8 million, whereof USD 0.15 million relates to unpaid restructuring costs and USD 1.1 million relates to the escrow account related to the Emediate acquisition. Total equity of USD 9.4 million 15

16 Cash flow statement Cash flow statement Q Q Q comments Cash flow from operating activities P/(L) before income tax (inc. disposal group) Adjustments: Income tax payable Share- based payments Result from investment in associates - - Depreciation and amortization Currency translation effects Change in trade receivables Change in trade payables Change in other accrual and non-current items Net cash flow from / (used in) op. activities , ,14643 Cash flow from investing activities Investment in fixed assets Investment in intangible assets Investment in associated companies Investment in subsidiary (1) Sale of subsidiary (1) Net cash flow from / (used in) investing activi Cash flow from financing activities Net proceeds from share issues Proceeds from minority interest Net cash flow from / (used in) finaning activiti Net inc / (dec) in cash and cash equivalents (1) Cash effects are net of cash received on sale of subsidiary, and cash held by the subsidiary. Cash flow from operations significantly lower than group EBITDA for Q due to the following reasons: Good accounts receivable collection results in Q Additional year-end receivable loss provision Provisions for restructuring costs related to the cost reduction program executed in Q *After the share issue there were shares outstanding. There were also warrants and share options outstanding 16

17 Cxense SaaS: Significant EBITDA run-rate improvement SaaS segment USD thousands Regional Sales & Operations Group functions SaaS business and R&D segment TOTAL EMEA Americas APAC Q Q Q Q Q Q Q Q Q Q Revenues COGS (allocated) Whereof Gross profit within R&D Gross magin % 84 % 81 % 84 % 81 % 84 % 81 % 84 % 81 % Employees (FTEs) OPEX (allocated) EBITDA adjusted In % of revenues 47 % 30 % -45 % -58 % -17 % -13 % -42 % -85 % The table above shows a SaaS segment EBITDA allocation by geography. The allocated EBITDA is adjusted for one-off costs and provisions and the expected full effect of the cost reduction program executed in Q

18 Welcome and highlights Q Financials Q Tech update 18

19 Cxense DMP (Data Management Platform): The Operating System for Online Business

20 Sign-up and pay online Simple online sign-up to capture more leads Four pricing levels to fit a wide range of businesses Minimizes sales team involvement Focuses sales force on upsell of related products such as the Cxense DMP

21 Cxense signs first bank client Personalized bank website Cxense to customize the online banking experience to match user needs and increase sales & loyalty. Youth saver, mortgage or pension? Individual user profiles determine whether a bank should promote a mortgage, youth savings account, credit card or pension. Educate and convert By identifying customer segments with high propensity to buy products, a bank can create tailored sales funnel to increase conversions across all devices, including mobile phones and tablets

22 Introducing Cxense Insight 30 day free trial & online registration

23 Summary Q Record number of new contracts Annualized currency adjusted run rate of USD 18.3m in December 2014 The DMP is gaining traction New sales model with more people in front Raised USD 7m in new equity in January 2015 Well positioned for growth 23