FY19 Investor Presentation...2019/08/23 · The education industry is starting to be digitised with...

ASX:JAN

FY19 Investor Presentation23rd August 2019

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Janison is a global education technology pioneer seizing an immense market opportunity

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The industry opportunity is immense

Annual Recurring Revenue (ARR) is increasing

The client base is loyal and expanding

There is a clear plan to drive growth

The business generates healthy profit margins

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Outlook

Business Update - CEO

Financial Update - CFO

Overview

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By 2025 there will be half a billion more school and university students driving a $7.8 trillion market

500mGrowth in Students

$7.8TSize of Education Market

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The education industry is starting to be digitised with the Education Technology market due to exceed $340B by 2025

$342BSize of Education technology market

225%Growth of Education technology market

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We are implementing our platforms and generating revenue across all three key market sectors

Year ending 30 June 2018 2019 Change

Schools (K-12) $6.5m $9.3m +44%Higher Education $2.4m $3.5m +45%Workplace $8.4m $9.7m +16%Total operating revenue $17.3m $22.5m +30%

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FY19 First Half ended 31 December 2018

(A$m)Q1 FY19Q2 FY19Growth1H FY181H FY19Growth

Learning Revenue2144717.1772363578.21+10%3421412.124504995.15+32%

Assessment Revenue2943064.5622525719.6(14)%5000026.065468787.33+9%

Group Revenue5087781.7384889297.81(4)%8421438.189973782.48+18%

Cost of Sales3700278.6993839342.46+4%4780034.647539621.159+58%

GM% 27%21%(6)pps43%24%(19)pps

G&A1487435.0871600609.499+8%1578156.383088044.586+96%

Trading EBITDA 1-99932.04781-550654.1492+451%2063247.16-653883.2653(132)%

Operating Cash Flow 3-1977000ERROR:#DIV/0!2520000-2444000(197)%

Trading EBITDA excluding major 'Build' projects 2nrnrnr2063247.16-653883.2653(132)%

FY19 First Half ended 31 December 2018

(A$m)Q2 FY18Q2 FY19Growth1H FY181H FY19Growth

Learning Revenue1717331.062363578.21+38%3421412.124504995.15+32%

Assessment Revenue2345798.782525719.6+8%5000026.065468787.33+9%

Group Revenue4063129.844889297.81+20%8421438.189973782.48+18%

Cost of Sales2802211.683839342.46+37%4780034.647539621.159+58%

GM% 31%21%(10)pps43%24%(19)pps

G&A698758.791600609.499+129%1578156.383088044.586+96%

Trading EBITDA 1562159.37-550654.1492(198)%2063247.16-653883.2653(132)%

Operating Cash Flow 3-1977000ERROR:#DIV/0!2520000-2444000(197)%

Trading EBITDA excluding major 'Build' projects 2nrnrnr2510228.459187116.7347(93)%

ITE-446981.2987-355000

Cloud Hosting Issues-206259.314Contractual Revenue for ESA for Hosting500

BC (Language) Chinese Hosting Offline-121000

RMS-3650001h FY19250

-446981.2987-841000Additional Hosting Revenue Received in 1H FY19360

Total Revenue Received610

Assumed margin20%

FY19 Outlook (including LTC)Assumed profit on Hosting122

Buffer(A$m)2H FY182H FY19 E 1GrowthFull Year FY18Full Year FY19 E 1GrowthBacksolved cost on Hosting488

100%Learning Revenue4180321.424745331.27+14%7601733.549250326.42+22%Actual Cost of Hosting in 1H FY19703(per Dec Finance Pack)

100%Assessment Revenue4702758.467126476.313+52%9702784.5212595263.64+30%Overspend-215

Group Revenue8883079.8811871807.58+34%17304518.0621845590.06+26%

Cost of Sales5845720.8266401315.305+10%10625755.4713940936.46+31%

GM% 34%46%+12pps39%36%(2)pps

G&A1928016.9573112095.779+61%3506173.3376200140.365+77%

Trading EBITDA 11109342.0972358396.499+113%3172589.2571704513.234(46)%


Note: Increases in G&A relate to an increased Sales & Marketing team ($1.3m), recruitment of senior executives and public entity listing costs ($1.1m) and a reduction in the estimated R&D tax credit ($0.4m).

FY19 Outlook (including LTC)

Buffer(A$m)2H FY182H FY19 E 1GrowthFull Year FY18Full Year FY19 E 1Growth

100%Learning Revenue4180321.424745331.27+14%7601733.549250326.42+22%

100%Assessment Revenue4702758.469962309.647+112%9702784.5215431096.98+59%

Group Revenue8883079.8814707640.92+66%17304518.0624681423.4+43%

Cost of Sales5845720.8267819231.971+34%10625755.4715358853.13+45%

GM% 34%47%+13pps39%38%(1)pps

Operating Expenses1928016.9573530012.446+83%3506173.3376618057.032+89%

Trading EBITDA 11109342.0973358396.499+203%3172589.2572704513.234(15)%

Trading EBITDA including LTC PF 21109342.0973358396.499+203%3172589.2573804513.234+20%


Note: Increases in G&A relate to an increased Sales & Marketing team ($1.3m), recruitment of senior executives and public entity listing costs ($1.1m) and a reduction in the estimated R&D tax credit ($0.4m).

LTC Rev (Feb-Jun)2835833.3332835833.333

LTC CoS1417916.667

LTC Opex (G&A)417916.6667

LTC EBITDA (Feb-Jun)983333.33331000000983333.3333

LTC EBITDA (Jul-Jan )1100000

Operating Revenue - First Half FY19

(A$m)2H FY181H FY19Growth on 2HFY18

Platform Revenue5358652.4435282636.08(100)%

Project Services Revenue3524427.4374693340.929(100)%

Group Revenue8883079.889975977.009(100)%

FY19 Income Statement to 31 March 2019

(A$m)FY18Q3FY19 Q3FY19 Q3 Growth FY18YTDFY19YTDNormalisations1Normalised FY19 YTDNormalised Growth on FY18 YTD

Learning Revenue2307544.711875862.6-19%7600037.438548004.24-- 8548004.24+12%

Assessment Revenue2449344.625443105.73122%9702746.2713982524.15-- 13982524.15+44%

Group Revenue4756889.337318968.3354%17302783.722530528.39-- 22530528.39+30%

Cost of Sales2622615.082927160.19812%7402649.7510465490.02-8410009624490.02+30%

Gross Profit2134274.254391808.132106%9900133.9512065038.37-- 12906038.37+30%2000000

GM%45%60%15.1pps57%54%57%0.1pps0.379

Operating Expenses946731.561361437.60444%2640551.874447633.184-1768949.7792678683.404+1%5,277,045

Trading EBITDA1187542.693030370.528155%7259582.087617405.186-2609949.77910227354.97+41%

3 Excludes non-recurring or abnormal Costs:-841000

4 Includes incremental G&A Costs:1HQ3YTD Q31H FY181HFY19Q3 FY18Q3 FY19

- Investment in BD-446393.5151-175659.8544-622053.3695196216.58642610.095192493.66268153.5144

- Investment in Executive Leadership Team-318633.61-271751.8-590385.412026075.52344709.11943964.21215716

- Reduced R&D Tax Credit-271366-185145-456511-731135-459769-388045-202900

- Regional Jobs Grant in FY18-100000-100000

Total-1136393.125-632556.6544-1768949.779

Audit Adjustments 1

ITE-200000

RMS-175000

Total-375000

Audit Adjustments 2

Software Cap

Income Statement - Quarter and Year Ending to 30 June 2019

(A$m)FY18Q4FY19 Q4FY19 Q4 Growth FY18Full YearFY19 NormalisationsNormalised FY18 Full YrFY19Full YearNormalised Growth on FY18 Full Yr

Recurring Revenue2707034.25942757.08120%10614616.4-- 10614616.414094718.8+33%

Project Services Revenue2049855.131376211.25(33)%6688167.3-- 6688167.38435809.59+26%

Group Revenue4756889.337318968.3354%17302783.7-- 17302783.722530528.39+30%

Cost of Sales3222666.714126244.54728%10625316.46123600011861316.4614632586.75+23%

Gross Profit1534222.623192723.783108%6677467.24-- 5441467.247897941.638+45%

GM%32%44%11.4pps39%31%35%3.6pps

Operating Expenses1135554.191431196.20926%3499285.871406475.8094905761.6795890215.474+20%

Trading EBITDA398668.431761527.573342%3178181.372642475.809535705.56082007726.164(275)%

FY19

ITE-430000

Cloud Hosting Issues-500000Net difference between $1.2m cost incurred and $700k credits from MS

BC (Language) Chinese Hosting Offline-89000

RMS-217000

0-1236000

FY18FY19

4 Includes incremental G&A Costs:FY19

- Investment in BD-757385.8152481437.391238823.205

- Investment in Executive Leadership Team-319237.9941091699.771410937.764

- Reduced R&D Tax Credit-329852-1496909-1167057

- Regional Jobs Grant in FY18offset by EMDG grant c.$100k

Total-1406475.809

FY19 Income Statement - Quarter and Year Ending 30 June 2019

(A$m)FY18Q4FY19 Q4GrowthFY18Full YearFY19Full YearFY19 NormalisationsNormalised FY19Normalised Growth

Recurring Revenue2707034.25942757.08120%10614616.414094718.8-- 14094718.8+33%

Project Services Revenue2049855.131376211.25(33)%6688167.38435809.59-- 8435809.59+26%

Group Revenue4756889.337318968.3354%17302783.722530528.39-- 22530528.39+30%

Cost of Sales3222666.714126244.54728%10625316.4614632586.75123600013396586.75+26%

Gross Profit1534222.623192723.783108%6677467.247897941.638-- 9133941.638+37%

GM%32%44%11.4pps39%35%-- 41%1.9pps

Operating Expenses1135554.191431196.20926%3499285.875890215.4741406475.8094483739.665+28%

Trading EBITDA398668.431761527.573342%3178181.372007726.1642642475.8094650201.973+46%

FCF-1827556.85-3731466.097(104)%2413938.082330404.799-- 2330404.799(3)%

FCF as a % of revenue-38%-51%-193%14%10%-- 10%(3.6)pps

Revenue

Operating Revenue - ending 31 December 2018

3-months6-months

(A$m)Q2 FY18Q1 FY19Q2 FY19Growth on Q2 FY18Growth on Q1 FY191H FY181H FY19Growth on 1H FY18Growth on 2H FY18

FY19 Operating Revenue - Quarter and Year Ending 30 June 2019

3-months6-months

(A$m)Q2 FY18Q1 FY19Q2 FY19FY18Q4FY19Q4FY19Q4 GrowthGrowth on Q1 FY19FY18Full YearFY19 Full YearFull Year GrowthGrowth on 2H FY18

Recurring Revenue2612543.6132782183.1672500452.9132707034.25942757.08+120%(10)%10614616.414094718.8+33%ERROR:#REF!

Project Services Revenue1450588.842305598.5722387742.3572049855.131376211.25(33)%+4%6688167.38435809.59+26%ERROR:#REF!

Group Revenue4063132.4535087781.7384888195.274756889.337318968.33+54%(4)%17302783.722530528.39+30%ERROR:#REF!

215,654.72644,646.75901,651.43ERROR:#REF!

By division:

Assessment2345801.222943064.5622524717.4822449344.625443105.73+122%(14)%9702746.2713982524.15+44%ERROR:#REF!

Recurring Platform Revenue1110867.11282112.741038626.551130228.221965624.26+74%(19)%4503220.785799250.6+29%ERROR:#REF!

Recurring Assessment Revenue-- 02523200.21-- -- 2523200.21--

Project Services Revenue1234934.121660951.8221486090.9321319116.4954281.26(28)%(11)%5199525.495660073.34+9%ERROR:#REF!

Learning1932985.9532789363.9273265129.2142307544.711875862.6(19)%+17%7600037.438548004.24+12%ERROR:#REF!

Recurring Platform Revenue1501676.5131500070.4271461826.3631179682.491206391.61+2%(3)%4534654.484642833.68+2%ERROR:#REF!

Recurring Content Revenue215654.72644646.75901651.4251397123.49247541(38)%+40%1576741.141129434.31(28)%ERROR:#REF!

Project Services Revenue215654.72644646.75901651.4251730738.73421929.99(42)%+40%1488641.812775736.25+86%ERROR:#REF!

Group Revenue4278787.1735732428.4885789846.6964756889.337318968.33+54%+1%17302783.722530528.39+30%ERROR:#REF!

- 00.05- 0- 0- 0

Operating Revenue - ending 31 March 2019

3-months6-months

(A$m)Q2 FY18Q1 FY19Q2 FY19FY18Q3FY19Q3FY19Q3 GrowthGrowth on Q1 FY19FY18YTDFY19 YTDFY19 YTD GrowthGrowth on 2H FY18

Assessment Division2345801.222943064.5622524717.4822253375.593070342.39+36%(14)%7253401.658539418.42+18%ERROR:#REF!

Platform Revenue1110867.11282112.741038626.551118555.581511591.84+35%(19)%3372992.563833626.34+14%ERROR:#REF!

Project Services Revenue1234934.121660951.8221486090.9321134820.011558750.55+37%(11)%3880409.094705792.08+21%ERROR:#REF!

Learning Division1932985.9532789363.9273265129.2141872776.792167146.5+16%+17%5292492.726672141.64+26%ERROR:#REF!

Platform Revenue1501676.5131500070.4271461826.3631144245.871159697.78+1%(3)%3354971.993436442.07+2%ERROR:#REF!

Project Services Revenue215654.72644646.75901651.4251339713.52807507.72+138%+40%757903.082353806.26+211%ERROR:#REF!

Content Revenue215654.72644646.75901651.4251388817.4199941(49)%+40%1179617.65881893.31(25)%ERROR:#REF!

Group Revenue4278787.1735732428.4885789846.6964126152.385237488.89+27%+1%12545894.3715211560.06+21%ERROR:#REF!

Total Platform Revenue2612543.6132782183.1672500452.9132651618.852871230.62+8%(10)%7907582.28151961.72+3%ERROR:#REF!

Total Project Services Revenue1450588.842305598.5722387742.3571474533.532366258.27+60%+4%4638312.177059598.34+52%ERROR:#REF!

Group Revenue4063132.4535087781.7384888195.274126152.385237488.89+27%(4)%12545894.3715211560.06+21%ERROR:#REF!

215,654.72644,646.75901,651.43- 00.05- 0- 0- 0.00ERROR:#REF!

Other Charts

GROUPFY18FY18FY18FY18FY19

($'000s)($'000s)($'000s)($'000s)($'000s)Change

Total Clients83123+48%

Average Revenue per Client (ARPC)$ 208$ 234+12%

Average Recurring Revenue per Client (ARRPC) 1$ 190$ 145(24)%This is a mix issue due to the acquisition of LTC clients

Customer Churn0.1%2.5%--

Gross Margin 239%46%+19%GP for FY19 is adjusted to include a full year benefit of LTC (e.g. FY20 GP%)

LTV ($'000s)$ 77,064$ 2,633(97)%

Customer Concentration (Top 10 clients)74%61%+13pps

FY18FY18FY18

CONSOLIDATED GROUP($'000s)($'000s)($'000s)FY18FY19Change


Average Revenue per Client (ARPC) $'000s 1$208$234+12%

Customer Churn0.1%2.5%(2)pps

Gross Margin 239%41%+5%GP for FY19 is adjusted to include a full year benefit of LTC (e.g. FY20 GP%)

LTV ($'000s)$ 77,064$ 2,633(97)%

Customer Concentration (Top 10 clients)74%61%+13pps

LEARNINGFY18FY18FY18

($'000s)($'000s)($'000s)FY18FY19Change

Total Clients7371(3)%

Average Revenue per Client (ARPC) $'000s$ 104$ 120+16%

Average Recurring Revenue per Client (ARRPC) $'000s 1$ 84$ 81(3)%


Gross Margin55%52%(6)%

LTV ($'000s)$ 48,940$ 1,991(96)%

ASSESSMENTFY18FY18FY18(with LTC)

($'000s)($'000s)($'000s)FY18FY19ChangeFY19* Excludes LTC

Total Clients1010+0%52

Average Revenue per Client (ARPC) $'000s$ 970$ 1,398+44%$ - 0

Average Recurring Revenue per Client (ARRPC) $'000s 1$ 450$ 580+29%$ - 0

Customer Churn0.0%0.4%--0.0%Replaced with a 15 year expected lifefor assessment clients

Gross Margin 225%28%+10%21%Assumed 'normalised' GP for FY197%Additional GP from CoS normalisations ($800k)

LTV ($'000s)$ 1,713$ 2,437+42%$ - 0No churn but assumes an average 20 year life

LTCFY18FY18FY18

($'000s)($'000s)($'000s)FY18FY19Change


Average Revenue per Client (ARPC) $'000s$ 125$ 148+18%

Average Recurring Revenue per Client (ARRPC) $'000s 1$ 125$ 148+18%


Gross Margin50%49%(2)%

LTV ($'000s)$ 870$ 1,007+16%Assumes a 14 year life for LTC clients

Note: Churn applies to recurring revenue only (platform, content, invigilation services)

1+0.0009482849

LTV = ARPU x GP x (1/(1-k) + (G x K) / (1-k)^2)100%0.000000901

K = (1-Churn rate) x (1-Disc Rate)1,053.53+1052.53443333332,106.07

Disc Rate:20%1+0.0252996816

100%0.000000901

1,053.53+28080.997055667829,134.53

https://blog.chartmogul.com/calculate-ltv-negative-churn/?utm_campaign=Submission&utm_medium=Community&utm_source=GrowthHackers.com

Operating Revenue by Market Sector

Year ending 30 June20182019Change

Schools (K-12)64870009314022.86+44%* FY18 figures fixed - UNSW was incorrectly classified as a university

Higher Education24250003516579.8+45%

Workplace83930009699925.73+16%

Total operating revenue1730500022530528.39+30%

Schools (K-12)Higher EducationWorkplace648700024250008393000

Schools (K-12)Higher EducationWorkplace9314022.85999999943516579.89699925.7300000004

https://blog.chartmogul.com/calculate-ltv-negative-churn/?utm_campaign=Submission&utm_medium=Community&utm_source=GrowthHackers.com

CF

Operating

Q3 FY18-600Mar 2018

Q4 FY18-1078Jun 2018

Q1 FY19-466Sep 2018

Q2 FY19-1977Dec 2018

Q3 FY1919Mar 2019

Q4 FY192835Jun 2019

Operating Cash Flow

Janison Consolidated Group

431604325243344434354352543617-600-1078-466-1977192835

Quarter ending:

Customer Concentration

1814.1%14.1%28.2% 1915.8%44.7%

ESA4,799,39428%- 0ESA4,652,26118%Top 5 Client GrowthTop 10 Client Growth

WESTPAC1,537,86337%- 0SEAB2,032,93825%FY189,615,19156%12,701,26674%

ITE1,514,72746%- 0UNSW (EAA)1,434,33931%FY1910,614,94840%16,016,57161%

SEAB938,99351%- 0WESTPAC1,343,48836%Growth10.4%26.1%

BRITISH COUNCIL824,21456%- 0RMS1,151,92140%

VALID708,45060%- 0VALID1,128,38445%

UNSW (EAA)675,25564%- 0ASG (SMS)981,06449%= Annualised revenue (LTC was only 1qtr of revenue)

LEARNING SEAT597,35268%2,077,601CFA2,077,60156%

ASG (SMS)592,32771%- 0BRITISH COUNCIL639,62459%

KINROSS512,69174%- 0CANOPI574,95061%

CANOPI439,64077%- 0LEARNING SEAT552,75363%

RIO TINTO415,00079%- 0SUN446,46865%

IRT354,32681%- 0NAB439,37467%

SUN201,04082%- 0SYD WATER417,81568%

VERACITY195,35384%758,066CQU758,06671%

RAMSAY182,50085%- 0KINROSS300,07672%

NZDF158,82286%- 0ITE293,35473%

DEAKIN158,57487%- 0NZDF265,35874%

SJOG146,60087%- 0VERACITY201,18875%

IDP97,27188%- 0RAMSAY184,10076%

EPWORTH96,00088%- 0DOD174,30476%

FUTURE TRAIN81,70189%- 0BNZ170,11877%

CS-WA80,00089%282,736CSU282,73678%

CBA72,14390%- 0SJOG146,59479%

CS-NSW70,00090%- 0RIO TINTO140,00079%

AMB NSW70,00091%- 0FUTURE TRAIN137,29880%

ANZIIF68,40091%329,187UOL329,18781%

CHCC64,22991%284,596DKN284,59682%

GEMS61,42892%280,365VU280,36583%

NT POLICE60,32592%- 0DEAKIN111,00084%

MTS55,20092%267,342OES/SWU267,34285%

DOD54,90593%- 0LEND105,15685%

LEAD SUC54,41293%- 0GEMS104,10885%

CSU48,00093%- 0CBA95,62286%

AITSL47,49194%214,508UNE214,50887%

DEAKIN UNI44,23394%- 0TCIG80,73387%

GIA43,57594%197,431WNG197,43188%

DJ41,66794%- 0AGL ENERGY74,81388%

NPDL41,07295%- 0EPWORTH74,00088%

PETSTOCK39,16795%- 0CS-NSW73,85489%

ASI39,10095%183,317ATMC183,31789%

QUU38,81995%- 0AMB NSW70,00090%

CURTIN UNI38,40096%171,757OUA171,75790%

RACWA38,34096%- 0DJ64,92190%

RMS36,27696%158,449USQ158,44991%

FWO34,75096%- 0IDP60,40291%

PCC33,00096%- 0CHCC56,87591%

DTC31,17997%- 0IRT56,33392%

ASIC29,45697%140,754NPL140,75492%

OTA27,10697%- 0MTS55,76292%

BHP25,15097%- 0LEAD SUC51,05793%

FEROS25,00097%127,557UTAS127,55793%

TEMASEK24,88197%- 0NABTRADE49,94593%

UWS24,50198%- 0DEAKIN UNI47,59993%

LINKEDTRAINING24,00098%10,484GIA10,48494%

DELOITTE CAN24,00098%- 0CLW44,28494%

GO2WORK22,81198%- 0GO2WORK43,65094%

AIA21,93098%- 0NPDL43,00094%

AMB ACT21,18098%- 0OTA42,99194%

IP AUS21,00098%- 0GMR41,26394%

LA WA20,00298%- 0ASI40,85094%

RAHC18,69399%92,817NWC92,81795%

CLW18,63899%- 0NT POLICE36,30095%

DENR17,50099%- 0PCC36,01395%

QATC16,86099%- 0FEROS36,00095%

ACU16,36499%- 0AITSL33,87695%

TAFE NSW16,00099%- 0QUU32,61696%

APVMA15,60099%78,516RCP78,51696%

FREMANTLE15,45899%- 0STOCKLAND30,87596%

BLUE KNOT15,00099%- 0RACWA29,25196%

CSV13,86399%- 0CSV28,14796%

NSW DFSI12,00099%67,424OES/WSU67,42496%

RMLT (QLD)11,900100%- 0CS-WA26,66797%

ACP11,364100%- 0LINKEDTRAINING26,00097%

BNZ11,298100%65,051IFoA65,05197%

SYD WATER9,390100%- 0NESA25,40097%

GRIFFITH UNI8,850100%- 0OECD25,25097%

TAFE QLD8,000100%- 0DELOITTE CAN24,00097%

TTS7,283100%- 0LA WA23,33197%

LEND7,015100%57,192SCU57,19297%

IXOM6,500100%55,280LSAC55,28098%

SMU5,786100%54,535SAF54,53598%

TAFE SA5,105100%54,183SAU54,18398%

NAATI2,200100%- 0GRIFFITH UNI21,24098%

AGL ENERGY1,250100%52,898KPL52,89898%

CFA- 0100%- 0DTC19,55098%

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3-mths3-mths 6-mths6-mths

(A$000s) Q2 FY18Q2 FY19GrowthH1 FY18H1 FY19Growth

Learning Revenue 1,717 2,364 38%3,421 4,505 32%

Assessment Revenue 2,346 2,526 8%5,000 5,468 9%

Group Revenue 4,063 4,889 20%8,421 9,973 18%

Trading EBITDA

(1)

696 (551)-179%2,064 (551)-127%

Operating Cash Flow (1,977)-$xxm2,520 (1,977)-$4.5m

FY19- First Half ended 31 Dec 2018

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1 The industry opportunity is immense


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We provide two core platforms on a recurring licencing model

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We are increasing Annualised Recurring Revenue(ARR) to $12.0m

$8.1m

$10.3m$10.7m

$12.0m

June 2016 June 2017 June 2018 June 2019

Annualised Recurring Revenue$m

Recurring revenue reported on the Statement of Profit or Loss consists of revenue earned during the 12 months to 30 June. Annualised recurring revenue is the forward-looking 12 months of recurring revenue as at 30 June

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We have retained and grown our key clients

CONSOLIDATED GROUP FY18 FY19 Change

86 138 +60%

Average Revenue per Client (ARPC) $'000s 1 201$ 247$ +23%

99.9% 97.5% (2)pps

39% 40% +5%

74% 61% +13pps

Total Clients

Customer Retention

Gross Margin 2

Customer Concentration (Top 10 clients) 3

1 The average revenue per client excludes LTC clients and revenue acquired in Q4 FY19 to allow for a consistent year on year comparison.2 GP% for FY19 is the normalised gross profit. See ASX release “Appendix 4C Q4FY19” table 3 for further details of non-recurring or ‘normalised’ costs in FY19. 3 Customer concentration is a risk measure of the revenue generated from the 10 largest clients as a percentage of total revenue.

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We have acquired 57 new clients in FY19 in the Higher Education and Workplace sectors

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To transform the way people learn

JANISON VISIONOur Vision

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To power education outcomes for 25 million

learners by 2025

JANISON VISION2025 Goal

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Schools(K-12)

Higher Education

Workplace

We currently generate platform income in these sectors

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We are now incubating SaaS based products to serve these markets

Platform+

Content+

Integration+

Analysis=

Product18

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Outlook

Business Update - CEO

Financial Update - CFO

Overview

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The business generates healthy profit margins

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Year ended 30 June FY18$mFY19

$m%

changeRecurring Revenue 10.6 11.5 +9%Services Revenue 6.7 11.0 +64%Group Revenue 17.3 22.5 +30%Cost of Sales 10.6 13.4 +26%Gross Profit 1 6.7 9.1 +37%GM %

Operating Expenses

39%

3.5

40%

5.9

+1 ppt

+28%EBITDA 3.2 3.3 +2%EBITDA % 18% 14%

1 Normalised Gross Margin includes non-recurring adjustments as detailed in the Appendix.

FY19 Group Result

Normalised Gross Margin1 of 40% and normalised EBITDA of $3.3m 40%

Normalised Gross Margin

$3.3mNormalised EBITDA

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ASX: JAN

Share price at listing $0.30

Share price at 21 Aug 2019 $0.30

Current market cap $50M

Enterprise value $44M

FY19 Normalised EBITDA multiple 13.3x

FY19 Revenue multiple 2.0x

We are generating profitable growth and our shareholder base is expanding

Year ended 30 June FY16 FY17 FY18 FY19 Change

Learning revenue 5.4 6.6 7.6 8.5 +12%

Assessment revenue 5.2 7.8 9.7 14.0 +44%

Group revenue 10.6 14.3 17.3 22.5 +30%Normalised EBITDA 1.8 3.0 3.2 3.3 +2%Operating cash flow 2.1 (0.7) 0.8 0.3 (63)%Cash in bank 2.9 1.4 3.6 6.0 +67%

1 Shareholdings ex clude any share-based payments which, if v ested, will have a dilutive effect on total shareholding. Figures correct as at 20th August 2019.2 Includes priv ate & institutional inv estors

54%46%

46% Free Float – up 15% from last year 254% Founders & Directors

Ordinary Shareholdings 1 46%Free-float

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Appendix

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Gross Profit Reconciliation to Annual Report

Year ended 30 June FY17 FY18 FY19 Change

Reported Gross Profit 6.3 6.7 7.9 +18%

GP normalisation add-backs:

Non-recurring project build costs1 -- -- 0.7 --

Non-recurring excess hosting costs2 -- -- 0.5 --

Total Normalisations -- -- 1.2 --

Normalised Gross Profit 6.3 6.7 9.1 +36%

Normalised Gross Profit % of Revenue 44% 39% 40% +1 ppt

1 Project build costs relate to ITE, RMS and British Council2 Net of compensation received from hosting provider

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Tom [email protected]+61 421 029 620

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Slide Number 1Slide Number 2Slide Number 3Slide Number 4Slide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10Slide Number 11Slide Number 12Slide Number 13Slide Number 14Slide Number 15Slide Number 16Slide Number 17Slide Number 18Slide Number 19Slide Number 20Slide Number 21Slide Number 22Slide Number 23Slide Number 24Slide Number 25

FY19 Investor Presentation...2019/08/23 · The education industry is starting to be digitised with...

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Transcript of FY19 Investor Presentation...2019/08/23 · The education industry is starting to be digitised with...