IMImobile PLC · 9/30/2019 · Interim Results Presentation FY20, 30 September 2019 7 The CPaaS...

Jay Patel, Chief Executive Officer

Mike Jefferies, Chief Financial Officer

November 2019

IMImobile PLCInterim Results OverviewSix Months Ended 30 September 2019

Interim Results Presentation FY20, 30 September 2019

A global communications software and solutions provider

2

Who we are What we do Who we do it for

We provide cloud communications software that

enables enterprises to automate digital customer

interactions to improve customer experience and

reduce costs.

Our differentiation is that our platform &

applications work together and integrate with third-

party suppliers to provide end-to-end automation

of customer journeys.

Business split Key financials

▪ Organic recurring revenue growth for 17 years

▪ Management shareholding: 14%

5-year

revenue CAGR 5-year gross

profit CAGR 5-year adjusted

EBITDA CAGR

31% 21% 21%

Regional split Business model Approx. Sector split

2000 Founded with mobile-first vision

2014 Listed on London Stock Exchange’s AIM market

1100 Global employees

21 Offices - London HQ, Boca Raton, Joburg, Dubai

8 Successful acquisitions since IPO

1 Market leader in UK, Canada and South Africa

2019 Acquisition of 3C, global leader in RCS

MRR – Monthly recurring revenue; NRR – Non recurring revenue


H1 Group highlights – growth in all regions

3

Financial highlights Operational highlights

▪ Organic growth in all regions and business units

▪ Milestone acquisition of 3Cinteractive integrated, strengthening position in

North America and establishing global RCS leadership position

▪ Strong period of new client wins and renewal of all major contracts in the

period

▪ New launches using richer messaging channels – Apple Business Chat,

RCS & WhatsApp Business

▪ Revenue up 24% to £83.0m (2018: £67.2m) (18% organic)

▪ Gross profit up 21% to £35.2m (2018: £29.2m) (12% organic)

▪ Adjusted EBITDA up 27% to £9.8m (2018: £7.7m)

▪ Adjusted profit after tax up 12% to £5.2m (2018: £4.7m)

▪ Adjusted diluted EPS up 5% to 6.9p (2018: 6.6p)

▪ Adjusted cash generated from operating activities of £12.5m; cash

conversion of 127% (2018: 80%)

27.8

36.0

53.1

67.2

83.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

FY16 FY17 FY18 FY19 FY20

16.6

20.2

24.7

29.2

35.2

0

5

10

15

20

25

30

35

40


4.55.3

5.7

7.7

9.8

0

2

4

6

8

10

12


H1 Revenue (£m) H1 Gross Profit (£m) H1 EBITDA (£m)


Investment case

4

Structural growth

opportunity Track record of

growthOwn IP and

R&D investmentMarket leader Experienced

management

>85% senior management team

with over 10 years sector

experience(SVP level and above)

"The enhanced

functionalities of RCS will

lead to a nearly sixfold

increase over the next five

years for messages that

businesses send to

consumers”1

17 years of organic recurring

revenue growth

No. 1 UK, South Africa, Canada

Top 5 Providers in the US

1 https://www.businessinsider.com/verizon-sprint-tmobile-att-unite-on-new-messaging-standard-2019-10?r=US&IR=T

https://www.businessinsider.com/verizon-sprint-tmobile-att-unite-on-new-messaging-standard-2019-10?r=US&IR=T

Market & Products

We believe that technology has and will continue to

fundamentally change how businesses engage with their

customers.

New communications channels and the possibilities of

intelligent automation will allow businesses to improve

customer experience and reduce costs.

We help our clients do this.

Interim Results Presentation FY20, 30 September 2019 7

The CPaaS market is

forecast to grow from $2bn

in 2017 to $10.9bn in 2022.

$10.9bn by 2022 IDC positions IMImobile as a Major Player in the

2019 IDC MarketScape for Worldwide Cloud

Communications Platform-as-a-Service

Spending on CPaaS will

grow at CAGR of 49.6% to

reach $4.63bn by 2021

49.6% CAGR

Developer focus

Enterprisefocus

The Communications Platform as a Service ‘CPaaS’ market opportunity


The ‘Future of Messaging’ market opportunity

Additional differentiators

▪ 10+ channels including: email, SMS, voice, push, MMS etc.

▪ Direct relationships with mobile operators.

▪ Multiple new channel deployments.

Disclaimer: diagram based on publicly available information at the time of announcement

1 of 3 technology providers approved by Apple, Facebook and Google


Recent deployments show momentum for new communications channels

Apple Business

Chat for Vauxhall

WhatsApp for

npowerRCS for

Vodafone RCS for EE


Our CX automation product suite

10

CORE BUSINESS SYSTEMS

3 rd PARTY SERVICES

TRANSACTION PROCESSING

FRAUD MANAGEMENT

CASE MANAGEMENT

COMMERCE PLATFORM

BILLING PLATFORM

APPOINTMENT MANAGEMENT

DELIVERY / FULFILMENT

NAME / ADDRESS VERIFICATION

CREDIT CHECK

PAYMENTS

CRM PLATFORM

APP

2

Platform Layer

Integration set-

up

& management

Business logic

& flow

orchestration

NLP & AI

powered

conversational

automation

Communication

channel

management

Intelligent enterprise control

Service assurance & infrastructure

management

Applications Layer

Possible application alternatives/integrations


Our products work across three core business areas

Customer Service &

Support

Customer Operations

Marketing Automation

My boiler has stopped

working – I need an

engineer

I have a suspect

transaction on my credit

card

Reminder that your

appointment with Dr.

Smith is at 2pm today

Your parcel will be

delivered between

11:00-13:00 today

Would you like to

upgrade your data

plan?

The iPhone 11 is out

now – click here to

reserve…

Saving £2 million for the

NHS in postal costs by

taking a digital-first

approach to patient

letters.

Achieving an overall

CSAT score of over 90%

after deployment for

British Gas.

Generating £250 million

revenue for O2 per year

through marketing

comms.


How our products work together provides competitive differentiation

Customer receives message through

IMIcampaign – this could be over any channel

Customer clicks link and UI switches to Apple

Business Chat using IMIconnect

Customer is transferred to IMIchat for agent

support – this could be a third party contact

centre system

Bill shock prevention

using Apple Business Chat


Financial Highlights


Strong growth in all financial metrics

14

Year endedSep-19

£m

Sep-18

£m

Growth

%

Revenue 83.0 67.2 +24%

Gross profit 35.2 29.2 +21%

Administrative expenses

(excluding D&A)(25.4) (21.5) +18%

Adjusted EBITDA 9.8 7.7 +27%

EBITDA margin* 28.0% 26.4%

Adjusted profit after tax 5.2 4.7 +12%

Adjusted diluted EPS 6.9p 6.6p +5%

Cash & cash equivalents 16.4 13.2 24%

*EBITDA margin = EBITDA/Gross Profit

5-year

RevenueCAGR

5-year

Gross Profit CAGR

5-year

EBITDA CAGR

+21%

+21%

+31%


Quality of earnings

15

Volume of e-mail, SMS, MMS,

push notification, sessions etc.

Licences

& one-off

prof.

services

Contracted

revenues

Fixed fees Usage based Transactional Non recurring

90%

Monthly Recurring Revenue(MRR)

Fees based

on

revenue

transactions

Impact of capitalisation and amortisation

Well diversified

Approximate gross profit split

Longstanding customer relationships

FY20

Gross profit split

(by region)

FY19

25% 50% 15% 10%

Average customer tenure

Top 10

customers

Top 20

customers

Percentage of gross profit

9.8 years

8.0 years

33%

48%

H1 20 excludes the impact of IFRS16

4.1 4.0

3.3

4.1 4.0

2.7

5.95.6

4.3

6.56.1

5.1

PBT as reported 7 yr amortisation PBT assuming 5 yr amortisation EBITDA less capex

H1 17 H1 18 H1 19 H1 20


Trade payables and accruals increase also

attributable to 3C

Strong balance sheet

16

AssetsSep-19

£m

Mar-19

£m

Cash

Trade receivables

Pass through revenues

Other current assets

16.4

39.1

2.9

8.0

13.2

41.2

3.3

6.2

Current assets 66.4 63.9

Goodwill

Acquired intangibles

Other intangible assets

PPE

Other non-current assets

69.6

39.3

14.4

7.6

1.9

43.6

16.8

12.8

4.3

0.6

Non-current assets 132.8 78.1

Total assets 199.2 142.0

Net assets 78.9 60.1

LiabilitiesSep-19

£m

Mar-19

£m

Trade payables and accruals

Pass through revenues

Other current liabilities

40.3

4.7

24.1

34.1

5.1

18.6

Current liabilities 69.1 57.8

Non-current liabilities 51.2 24.1

Total liabilities 120.3 81.9

Goodwill and acquired intangible growth from 3C acquisition


High levels of cash conversion

17

Period endedSep-19

£m

Sep-18

£m

Adjusted cash generated from

operations12.5 6.1

Net cash from operations 10.4 5.0

Investing activities (44.0) (20.1)

Financing activities 36.4 11.3

Cash and cash equivalents at

beginning of period13.2 15.7

Foreign exchange on opening

balances0.4 0.1

Cash and cash equivalents at end

of period16.4 12.0

Period endedSep-19

£m

Mar-19

£m

Cash 16.4 13.2

Borrowings (38.2) (20.7)

Net (debt)/cash (21.8) (7.5)

Net cash

£42m debt facility from SVB mix of GBP and

USD debt

Amortising over 5 years

Margin payable of ~2.5% + LIBOR


Regional overview – Europe

18

The AA The AA The AA The AA The AA

▪ Revenue £57.2m (2018: £46.6m)

▪ Gross profit £19.1m (2018: £17.3m);

▪ 10% organic gross profit growth

▪ Gross margin 33.4% (2018: 37.2%)

FinancialsOperational highlights

▪ MRR growth in each of our key business units.

▪ Launched RCS for customer bases of three major UK operators.

▪ Multiple contract wins within the enterprise sector.

▪ UK Healthcare division continues to perform well with communications

volumes up over 20%.

▪ Our product in the SMB segment, Textlocal, continued to grow strongly

with record trading months.

▪ Momentum gained through established partnerships.

▪ Post-period end acquisition of Rostrvm, UK based, contact-centre provider

for additional voice channel and contact centre capabilities. 0

5

10

15

20

25


MRR NRR

H1 Gross Profit (£m)

9.4

6.

10.0

13.2

17.3

19.1


Regional overview – Americas

19

The AA

▪ Revenue £8.3m (2018: £4.4m)

▪ Gross profit £5.8m (2018: £3.0m)

▪ 4% organic gross profit growth

▪ Gross margin 70.0% (2018: 62.1%)

FinancialsOperational highlights

▪ Following round of successful equity fundraising of £20 million and

increased debt facilities, completed acquisition of 3Cinteractive in August

2019 which:

▪ Strengthened operational capabilities in region

▪ Established Group as global leader for RCS Business Messaging

▪ Strengthened regional management team

▪ Existing Americas business continued to perform well, driven by increasing

messaging volume in the Canadian market from both existing and new

customers.

▪ Confident we have the necessary experience, scale and strength of

offering to drive significant growth in the largest addressable market for our

product set.0

1

2

3

4

5

6

7


MRR NRR

H1 Gross Profit (£m)

0.5 0.6 0.6

3.0

5.8


0

1

2

3

4

5

6

7

8


MRR NRR

4.5

6.7

5.6

4.6

Regional overview – MEA and APAC

20

Middle East & Africa Asia PacificGross Profit £5.0m (2018: £4.6m) Gross Profit £5.3m (2018: £4.3m)

▪ Good organic gross profit growth of 10%.

▪ After period of headwinds, the operator segment has

now stabilised.

▪ Success developing new business in the UAE.

H1 Gross Profit (£m) H1 Gross Profit (£m)

5.0

0

1

2

3

4

5

6


MRR NRR

2.2

2.9

5.3

4.3

5.3

▪ Strong organic gross profit growth of 22%.

▪ New enterprise customers such as Hyundai, Britannia &

Skoda using WhatsApp Business.

▪ Textlocal India experienced significant year on year

growth, onboarding 6,000 new customers.


Growth Strategy


Growth strategy

1 2 3 4

Accelerate market

penetration through

partnerships

Grow our share of

interactions for existing

customers

Introducing new

innovative customer

engagement technologies

Leverage acquisitions for

market distribution

+ +

52 customers over £500k p.a.

revenue, up from 43 last year.

376 customers over £25k p.a.

revenue, up from 316 last

year.


Introducing new innovative customer engagement technologies

23


Our latest acquisition: 3Cinteractive Corp

The RCS opportunity Progress & outlook

Acquisition rationale

81 global operators have currently launched

RCS, with an additional 27 operator launches

forecast by Q1 2020.

Consumers will engage with at least one brand,

once a day by 2023 using RCS.

▪ Leading RCS solutions provider in US

▪ Over 300 clients

▪ Direct connectivity to all major US mobile operators

▪ Delivering >1billion transactions per month

▪ >90% recurring & repeating revenues

▪ North American operations

merged under one

organisational structure.

▪ Initial training workshops on

Group product set

completed.

▪ Good existing client

workshops held and

significant cross-sell

opportunities identified and

progressing.


Results of RCS

▪ Initial customer engagement rates for RCS

significantly higher than SMS.

▪ For a Vodafone promotional campaign; 80%

of customers read the message, and 25%

responded to the offer. SMS and MMS

scored a response rate of around 1%.

▪ Customers prefer the RCS experience to

SMS too.


Post period acquisition: Rostrvm

▪ UK based, contact centre provider for a

consideration of up to £3.5 million

▪ Providing Group with additional voice

channel & contact centre capabilities

▪ Strong public sector customer synergies

▪ Complementary strategic reseller

partnerships with mobile operators


Outlook

27

▪ Board encouraged by strong first half of the year, delivering growth in all regions

▪ Structural growth opportunity in customer communications

▪ Group well positioned to continue to deliver on its strategic priorities

▪ FY20 trading in line with management expectations


London

IMImobile Europe Ltd.

5 St John’s Lane

London

EC1M 4BH

United Kingdom

Hyderabad

IMI Mobile Pvt. Ltd

Plot No. 770

Road No. 44

Jubilee Hills

Hyderabad – 500 033

Dubai

IMImobile VAS Ltd. FZE

P.O. Box 293593

Office # 624, Building 5EA

Dubai Airport Free Zone,

Dubai, U.A.E

Boca Raton

IMImobile North America

750 Park of Commerce

Blvd #400

Boca Raton, Florida

33487

USA

Johannesburg

IMImobile South Africa

Clearwater Office Park,

Building no. 3, First Floor.

Corner Christiaan De Wet and

Millennium Boulevard,

Strubensvalley,

Roodepoort, Gauteng,

South Africa

Theale


Abbey House

1650 Arlington Business

Park, Theale

RG7 4SA

United Kingdom

High Wycombe


Swan House

White Hart Street

High Wycombe

HP11 2HL

United Kingdom

Toronto

IMImobile Canada

4 King Street West

Suite 1700

Toronto, Ontario

M5H 1B6

Canada

Thank you


Appendices


Global client list FY20

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Client logo

Significant clients with billing of >£100k revenue


An experienced management team

31

Jay PatelGroup CEO

18 years with IMImobile

25+ years of Technology, Media

& Telecom experience with

BSkyB, UBS Warburg, Spark

Ventures

Chartered Accountant with

KPMG and MBA from INSEAD

Mike JefferiesGroup CFO

9 years at IMImobile

Executive position at WIN PLC

and formerly with the Whirlpool

Corporation

Chartered Management

Accountant

Vishwanath AlluriFounder & Non-Executive

Director

Extensive experience in

creating technology

companies

Chartered Accountant &

Company Secretary

Shyam BhatFounder & Group CTO

Engineer from highly prestigious

Indian Institute of Technology,

Bombay

30+ years in engineering & new

product developments

John AllwoodNon-Executive Chairman

Ex Chief Executive of Orange UK

Ex Chief Executive of Mirror

Group plc of

Non-Executive Director of

TalkTalk

Simon Blagden CBENon-Executive Director

25+ years experience in

telecoms & IT industry

Non-Executive Chairman

Fujitsu UK

Chairman Duke of York’s

Community Initiative charity

IMImobile PLC · 9/30/2019 · Interim Results Presentation FY20, 30 September 2019 7 The CPaaS...

Documents

Transcript of IMImobile PLC · 9/30/2019 · Interim Results Presentation FY20, 30 September 2019 7 The CPaaS...