for personal use only - rightcrowd
TRANSCRIPT
Half Yearly Results – FY2020RCW:ASX | February 2020
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Agenda
H1 FY20 Achievements
Business Update
H1 FY20 Financial Information
Summary and Outlook
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A Reflection on H1 FY20 Achievements
88% of sales revenue from overseas, which included $875k generated from
the European region
Core business unit has line of sight for cashflow break-even in FY20
Restructured business into Core and New Products business units
Expanded presence in US market with new client wins in industrial and financial
sectors
Successfully delivered first major Presence Control project in Belgium
License and Recurring revenue growth of 91% and 40% (YoY) respectively
36% (YoY) sales revenue growth to $6.0m in H1 FY20
Strong H1 revenue growth
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Agenda
H1 FY20 Achievements
Business Update
H1 FY20 Financial Information
Summary and Outlook
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LIMITATIONSSiloed systems
Siloed internal processesSiloed safety, security and
compliance
IMPACTCompromised safety,
security and complianceUnexplored improvement
potential
ENTERPRISE SYSTEMS
>$100 BILLION PA
CYBER SECURITY INDUSTRY
>$100 BILLION PA
Strategically Positioned
ESRM MARKET
• Physical security and IT convergence
• RightCrowd is at the tip of the industry’s technology transformation
• Currently, only a few companies addressing this market
PHYSICAL SECURITY INDUSTRY
>$100 BILLION PA
RightCrowd is well positioned to capitalise on the emerging Enterprise Security Risk Management (ESRM) market
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Identities and accessrules baked into systems
and applications
Logical security
CONVERGEDPHYSICAL AND LOGICAL
ACCESS CONTROL
Physical security
Centralised Access Control Lists
(ACL)
Role-based Access Control Systems
(RBAC)
Attribute-based Access Control Systems
(ABAC)
Mechanicallocks and
keys
Electronic locks and badgesPhysical Access Control
Systems (PACS)
very little identity software innovation
Opportunity forintegrated Attribute-
based Physical Access & Presence Control
The Market – Evolution and Convergence F
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RightCrowd Product Strategy – Physical Security
Employee PortalContractor Portal
Visitor Portal
USERS LOCATIONS
BusinessSystems
Learning ManagementSystems
IT / HRSystems
Admin PortalSecurity Officer
RightCrowdRules & Workflow
Engine
Physical Access Control System
Phoneapp
Securitywearable
Existingbadges
Integrated Attribute-based
Access and Presence Control
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RightCrowd Product Strategy – Logical and Physical Convergence
AuditorsIT Administrators
Compliance ManagersSecurity Officers
Line Managers
USERS OUTCOMES
REMEDIATION
IT / HRSystems
CustomApplications
Cloud Applications
MainframeLegacy Systems
Off-the-ShelfApplications
Physical Security
Ticketing Systems Identity & Access Management
• Continuous User Access Compliance• Lightweight, fast deployment and rapid ROI• Visibility of user access within logical and physical systems• User access reviews for every system, made easy• Reduce cost, mitigate risk and boost productivity
AnalyticsEngine
Positioning in cyber security market to capitalise on growing “Insider Threat” within corporations
• Identifies user access issues across a multitude of systems
• Can notify relevant personnel for resolution via email
• Output can be used for remediation of user access issues
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PARTNERING WITH THE WORLD’S LARGEST PHYSICAL ACCESS CONTROL SYSTEM COMPANIES, THAT CONTROL ~70% OF THE GLOBAL MARKET.
Channel opportunities
Majority of large organisations run
access control from one of these vendors
RightCrowd’s partners have their hardware in several
hundred thousand environments
Integrating with and holding long-term partnerships with leading global security firms provide
RightCrowd strong growth potential
Successfully built trust resulting in growing number of
opportunities that will provide a long tail of revenue
RightCrowd is in the early growth phase of a very large, relatively untapped market as the physical security sector progresses along the digitisation path.
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Remove the queue
Making visitors part of evacuation management
Efficient lobby operations
Big group, no problem
See the big picture
Visitor Management
The enterprise standard for Visitor Management.
RightCrowd Product Offering – Core
Improve hosting experience
Workforce Management
Ensures continuous validation that everyone on site is right.
On-boarding and access management
Competencies and certifications
Time on-site
Fatigue management
Random drug and alcohol testing
Automated access revocation
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Flexible configuration and deployment
Cover every location
Continuous visibility
Frictionless evacuation
Improve emergency response
Eliminate muster stations
Integrates with any access control or business system
Continuous visibility
Simplified compliance reporting
Automated data collection
Dynamic audit generation
Monitor security issues in real-time
Evacuation Management
Real-time evacuation headcount for everyone on site.
Access AnalyticsPresents the health of access compliance in a single view.
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RightCrowd Product Offering – New Products
Digital badgeholders
Visualise physical security
Leverages existing PACS infrastructure
Flexible deployment model
Mobile App allows two-way zone notifications to users and security
Tethering of visitors
Presence Control
Providing companies the next layer of physical security.
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Agenda
H1 FY20 Achievements
Business Update
H1 FY20 Financial Information
Summary and Outlook
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PROFIT OR LOSS Group Results (AUD'000s)
H1 FY20 H1 FY19% Change
YoY
Sales Revenue 5,967 4,382 +36%
Other Income 274 289 -5%
Total Income 6,242 4,672 +34%
Total Expenses 10,806 7,757 +39%
Profit before Income Tax (4,564) (3,085) -48%
Income Tax Expense (31) (32)
Net Profit for the Year (4,595) (3,117) -47%
H1 FY20 Financial Performance
Growth in sales revenue driven by new license sales mainly in North America for workforce and visitor management solutions.
Annual Recurring Revenue (ARR) more than $3.3m as at 31 Dec 19.
New Products division (Presence Control, Evacuation Management, and Access Analytics products) generating early revenue from first deployments, adding $0.2m of revenue for the period.
Expenses predominantly driven by employee related costs ($7.9m) –the increase on H1 FY19 driven by Ticto and Offsite Vision acquired entities (adding $2.0m additional cost in H1 FY20).
Adoption of AASB16 in this reporting period using modified retrospective approach resulted in minimal impact on net profit given limited number of Company operating office leases.
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BALANCE SHEET Group Results (AUD'000s)
31-Dec-19 30-Jun-19% Change
YoY
Current Assets 6,811 9,941 -31%
Non-Current Assets 17,492 16,098 +9%
Total Assets 24,303 26,039 -7%
Current Liabilities 6,099 4,377 +39%
Non-Current Liabilities 1,141 224 +410%
Net Assets 17,063 21,439 -20%
Issued Capital 39,691 39,651 +0%
Reserves 729 783 -7%
Retained Earnings (23,357) (18,995) -23%
Total Equity 17,063 21,439 -20%
H1 FY20 Financial Performance
Cash balance closes at $3.82m, down from $4.97m at end June.
Trade and Other Receivables at $2.45m, down from $4.37m at end June due to receipt of government R&D rebate during H1 FY20.
Increase in Non-Current Assets, Current, and Non-Current Liabilities driven by adoption of AASB 16 – Leases. Operating leases now recorded on balance sheet as Right-of-Use Assets and Lease Liabilities.
Changes in Equity driven by:• Share issuance relating to Offsite Vision acquisition
based on achieving Year-1 performance targets• Transfer of Share Option Reserve to Retained Earnings
following Share issuance.• Retained earnings movement through net loss
for the half-year.
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Agenda
H1 FY20 Achievements
Business Update
H1 FY20 Financial Information
Summary and Outlook
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Summary and Outlook
Completion of current large deployment projects and preparation for substantial
new projects in sales pipeline
Extending existing global PACS channel relationships through white labelling of
workforce management solutions
Renewal of RightCrowd IQ customer contracts and acceleration of pipeline
with dedicated sales coverage and emerging channel partners
Increasing proportion of revenue relating to recurring software revenue and
license fees
Presence Control sales momentum to increase with successful reference site,
distribution partners and additional European sales headcount
Core business unit projected to achieve cashflow break-even in FY20
RCW maintains full year FY20 outlook of $13m+ of sales revenue (40%+ growth YoY)
36% (YoY) sales revenue growth to $6.0m in H1 FY20.License and Recurring revenue growth of 91% and 40% (YoY) respectively
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