imimobile plc€¦ · 2000 founded with mobile-first vision 2014 listed on london stock...

| Jay Patel Group Chief Executive Officer

| Mike Jefferies Group Chief Financial Officer

IMImobile PLCPreliminary Results Year Ended 31st March 2020

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 with our market-leading, customer interaction management suite.

A global communications software and solutions provider

3

Who we are What we do Who we do it for

We provide a customer interaction management suite that enables enterprises to automate customer communications to improve CX and reduce costs.

We have market leading software and our platform and applications work together and integrate with third-party suppliers to provide end-to-end automation of customer interactions.

Business split* Key financials

Organic recurring revenue growth for 17 years

Management shareholding: 13%

6-year revenue CAGR

6-year gross profit CAGR

6-year adjusted EBITDA CAGR

26% 19% 20%

Regional split Sector split

2000 Founded with mobile-first vision

2014 Listed on London Stock Exchange’s AIM market

1100 Global employees

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

9 Successful acquisitions since IPO

1 Market leader in UK, Canada and South Africa

2019 Acquisition of 3C, a global leader in RCS

3%

2%2%

1%

IMImobile - Preliminary Results Year End March 2020

Divisional split

*All approximate gross profit splits

IMImobile - Preliminary Results Year End March 2020 4

Double-digit growth across all sectors and regions for cloud communication products

15% organic gross profit growth across 82% of the business

4-year organic gross profit CAGR of 16% for cloud communications products

Strong momentum in North America, the Company’s biggest potential growth market

Strong period of new client wins, partnership agreements and contract renewals

Resilient performance in Q1 FY21, despite challenges of COVID-19, with gross profit up approximately 20% year-on-year for the quarter

Strong trading performance for FY20


COVID-19 impact

Management response

Opportunities

Volumes and activity levels in core sectors (Banking, Mobile Operator, Logistics) counteracted sectors most affected by the pandemic (Healthcare, SMB and Retail)

Started to see steady recovery in activity of clients in worst affected sectors

Long term positive impact expected, accelerating need for businesses to effectively communicate with customers

Rolled out crisis communications solutions for employee, customer and citizen engagement:

- Emergency broadcast alerts

- Remote contact centres

- IVR call deflection

- Video consultation solutions

5

Mitigated short term impact, with long term positive impact expected

All 1,100 employees transitioned to remote working in a few days

Early internal measures introduced included hiring freeze, travel restrictions and temporary salary reductions

Successful fundraise ensured safeguarding of financial flexibility

Following good Q1 performance, reversed a number of internal measures, including salary reductions, except for the Board

Started to return furloughed employees to the business since 1st July

We have always felt like a number of our patients do not actually need to come to the clinic. During the pandemic, having a service like eClinic has become a necessity.

“

”Dr Muhammad Javed, CCIO at Walsall Healthcare NHS Trust

Financial review


Strong growth in all financial metrics

7

Year ended(adjusted results)

Mar-20£m

Mar-19£m

Growth%

Revenue 171.2 142.7 +20%

Gross profit 79.1 62.6 +26%

Administrative expenses (excluding D&A)

(57.5) (43.5) +32%

EBITDA 21.6 19.1 +13%

EBITDA margin* 27.3% 30.5%

Profit after tax 12.3 10.8 +14%

Adjusted diluted EPS 15.5p 15.1p +3%

Cash & cash equivalents 25.1 13.2 +89%

6-year RevenueCAGR

6-year Gross profit

CAGR

6-year EBITDA CAGR

+19%

+20%

+26%

*EBITDA margin = EBITDA/Gross Profit


Strong balance sheet

8

AssetsMar-20

£mMar-19

£m

CashTrade receivablesPass through revenuesOther current assets

25.138.2

2.09.4

13.241.3

3.36.1

Current assets 74.7 63.9

GoodwillAcquired intangiblesOther intangible assetsPPEOther non-current assets

70.036.516.9

6.50.7

43.616.413.2

4.30.6

Non-current assets 130.6 78.1

Total assets 205.3 142.0

Net assets 78.7 60.1

Goodwill and bank borrowings increased for 3C and Rostrvm acquisitions

LiabilitiesMar-20

£mMar-19

£m

Trade payables and accrualsPass through revenuesOther current liabilities

45.44.4

19.5

40.65.1

12.1

Current liabilities 69.3 57.8

Non-current liabilities 57.3 24.1

Total liabilities 126.6 81.9

Post-period end placing of £21.7m strengthened financial position


High levels of cash conversion

9

Year toMar-20

£mMar-19

£m

Cash generated from operations 20.9 15.9

Net cash from operations 18.3 14.6

Investing activities (49.2) (27.5)

Financing activities 42.8 10.6

Cash and cash equivalents at beginning of period

13.2 15.7

Foreign exchange on opening balances

0.0 (0.2)

Cash and cash equivalents at end of period

25.1 13.2

End of period bank debt (47.3) (20.7)

Strong adjusted cash conversion of 111%

Net cash* of £2.0m as at 30 June 2020 following post-period end placing

Net debt* of £22.2m

Cash generated from operations of more than £70m in the last five years (>95%)

*Excludes operating leases


Business split

10

Year toMar-20

£mMar-19

£mGrowth

%

Revenue 150.9 120.0 26%

Gross profit 64.5 46.7 38%

Europe 37.8 33.3 13%

Americas 18.4 7.3 152%

APAC 4.0 2.8 45%

MEA 4.4 3.4 29%

Adjusted EBITDA* 22.8 - -

Year toMar-20

£mMar-19

£mGrowth

%

Revenue 20.3 22.7 (11%)

Gross profit 14.6 15.8 (8%)

Europe 2.6 4.0 (35%)

Americas 1.1 0.1 1626%

APAC 6.0 6.0 (1%)

MEA 4.9 5.7 (14%)

Adjusted EBITDA* 1.1 - -

Cloud Communications Products (82%)

Operator VAS & Payments (18%)

Sector split

Sector split Gross profit split

Gross profit split

10

*Adjusted EBITDA excludes central costs


Cloud Communications Products


Our customer interaction management suite

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CORE BUSINESS SYSTEMS

3rd PARTY SERVICES

TRANSACTION PROCESSING

FRAUD MANAGEMENT

CASE MANAGEMENT

COMMERCE PLATFORM

BILLING PLATFORM

APPOINTMENT MANAGEMENT

DELIVERY / FULFILMENT

NAME / ADDRESS VERIFICATION

CREDIT CHECK

PAYMENTS

CRM PLATFORM

APP2

Enterprise CPaaS platform

Integration set-up

& management

Business logic & flow

orchestration

NLP & AI powered

conversationalautomation

Communicationchannel

management

Intelligent enterprise control

Service assurance & infrastructure management

Business applications


Established market opportunity

Marketing Product/IT

Support

o Marketers must move beyond traditional campaigns to orchestrate always-on, continuous engagement

o Customers want consistency and relevance across all touchpoints

o Customers want to interact with businesses on their terms using their favourite communications channels

o Companies must understand the need to align marketing with sales, service, and eCommerce to deliver better customer experiences

o The CPaaS market is forecasted to grow from $3.3bn in 2018 to $17.2bn in 2023

o RTIM marketing is forecasted to grow at a CAGR of 13.2% through 2023

o CCaaS solutions are growing at a CAGR of 27.7%

IMImobile’s customer interaction management suite sits at the

intersection between these three core business areas

Legacy platforms not mobile-first

Fragmented use of dataRich personalised

campaigns

Legacy platformsBespoke one-way

solutionsRigid processes

Reactive resourceAccess to limited legacy systems

Responding “after the event”

13


Cloud communications overview – Europe

The AA The AA The AA The AA The AA

Revenue £107.0m (2019: £94.9m)

Gross profit £37.7m (2019: £33.8m);

12% organic gross profit growth

Gross margin 35.3% (2019: 35.6%)

FinancialsOperational highlights

Growth driven by new client wins and cross selling to existing accounts of additional cloud communications products

New client wins across banking, utilities, public sector & leisure provide foundations for future growth

Healthcare division signed 11 new NHS trusts and launched new eClinicproduct

Renewed significant contract with Spanish mobile operator & progress in mainland Europe

Signed new partnerships with telecom and business services companies

Launched RCS campaigns for three major UK operators & Apple Business Chat for major high street bank

FY16 FY17 FY18 FY19 FY20

MRR NRR

Gross Profit (£m)

15.918.2

27.3

33.8

37.7


Cloud communications overview – Americas

The AA

Revenue £25.8m (2019: £10.5m)

Gross profit £18.4m (2019: £7.3m)

10% organic gross profit growth

Gross margin 71.2% (2019: 69.3%)


Organically won large US retail client for CPaaS offering

Selected through competitive tender process

Emergency COVID-19 communications deployed

First phase of project successfully delivered in July

Validated relevance of Group product set in the market

Acquired established mobile marketing business, 3Cinteractive (3C) in August 2019

100+ employees based in Boca Raton, Florida

Blue chip client list

Integration substantially complete

Created one North American organisation (c.140 employees)


MRR NRR

Gross Profit (£m)

0.81.3 1.6

7.3

18.4


Strategy and growth in North America

Progress to date

Held 20 workshops with 3C customers

11 opportunities identified

4 now in deployment

Substantial new logo wins

Retail, financial services & hospitality sectors

Competitive tender processes

Underpins confidence in core proposition

Limited US market changes necessary for technology

IMIconnect, IMIchat & IMIcampaign successfully deployed

Other products currently in deployment

Growth strategy

Clear market opportunity identified and confirmed

Large enterprises with complex legacy infrastructure

Need for more than just communication APIs

Tender/workshop led procurement process

High touch account management

Market leading innovation

Global leader in RCS Business Messaging

Ready to scale

Investment in brand awareness

Investment in sales and marketing

Investment in analyst recognition

Rather than the usual catalogue of SDKs and APIs, the company is focused around end-to-end automation of customer journeys across digital touchpoints. Commented a leading industry analyst

“

”16



MRR NRR

1.5

3.43.0

3.4

Cloud communications overview – MEA and APAC

Middle East & Africa Asia PacificGross Profit £4.4m (2019: £3.4m) Gross Profit £4.0m (2019: £2.8m)

Solid trading performance enhanced by growth of new messaging channels and automation technologies

New contract wins across banking, mobile operator and utilities sectors

Gross Profit (£m) Gross Profit (£m)

4.4


MRR NRR

0.81.2

2.42.8

4.0

Momentum in the region for WhatsApp Business channel

Onboarded clients across automotive, retail & banking sectors


Consistent growth strategy

1 2 3 4

Accelerate market penetration through

partnerships

Grow our share of interactions with existing accounts

Introducing new innovative customer

engagement technologies

Leverage acquisitions for market distribution

+ +

46 customers over £500k p.a. revenue (PY: 40)

118 customers between £100k - £500k p.a. revenue

(PY: 83)


New communications channels starting to gain momentum

WhatsApp for Mercedes-Benz

Apple Business Chat for Barclays

RCS for Vivo Brazil

Global market leader for RCS Business Messaging

Launched world’s largest RCS campaign during period

Verified technology partner of Google, Apple and Facebook

Launched Apple Business Chat for first major UK bank

WhatsApp services launched for leading automotive providers –Hyundai, Mercedes-Benz, Toyota

Large enterprises starting to see the effectiveness of new communications channels


Operator VAS & Payments


Product set

IMIdigital is a content management platform delivering digital content services and self-care customer portals for mobile operators.

Tap2Bill is a Trusted Payment Intermediary (TPI) processing API and SMS based payments charged to users mobile bills or deducted from PAYG credit, on behalf of charities and e-commerce brands.


Operator VAS & payments overview

The AA

Revenue £20.3m (2019: £22.2m)

Gross profit £14.6m (2019: £15.8m)

Gross margin 71.8% (2019: 69.0%)


Experienced a decline of 8% in line with management expectations

Gross profit from the UK payments business fell from £3.5m to £2.6m – due to regulations and changes in consumer habits

Gross profit flat in APAC at £6.0m – growth from usage of IMIdigitalfor self-care applications for mobile operator portals offset the one-off licence fees achieved last year

Gross profit in MEA fell from £5.7m to £4.9m - due to continued decline in market for certain content services

Long term trusted relationships with leading telecom groups provides foundations for future growth


MRR NRR

Gross Profit (£m)

17.519.2

16.4 15.8

14.6

Summary & outlook


Resilient performance delivered so far post-period end: Group gross profit up approximately 20% year-on-year

Cloud communications products gross profit up 30% year-on-year, driven by 3C acquisition

Positive momentum on strategic deployments and new contract wins

Encouraging performance in North America, developing sales and marketing initiatives in the region

Uncertainty around the economic impact of the pandemic remains, however we are reassured by the substantial opportunities open to the Group

We believe the pandemic will drive and accelerate uptake of digital transformation and therefore demand for our solutions

Summary & outlook

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Investment case

25

Structural growth opportunity

Track record of growth

Own IP and R&D investment

Market 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 sixfoldincrease over the next five years for messages that

businesses send to consumers”

17 years of organic recurring

revenue growth

No. 1 UK, South Africa, Canada

Top 5 Providers in the US


Questions

Appendices


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Significant clients with billing of >£100k revenue

Global client list FY20


An experienced management team

29

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


Quality of earnings

30

Volume of e-mail, SMS, MMS, push notification, sessions etc.

Licences & one-off

prof. services

Contracted revenues

Fixed fees Usage based Transactional Non recurring

c.90% Monthly Recurring Revenue

(MRR)

Fees based on

revenue transactions

Impact of capitalisation and amortisation

Well diversified

Approximate gross profit split

Longstanding customer relationships

25% 50% 15% 10%

Average customer tenure

Top 10customers

Top 20customers

Percentage of gross profit

9.9 years

8.5 years

31%

45%

9.0 9.0

7.3

10.1 9.8

6.9

13.613.1

11.2

14.613.9

13.3

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

FY17 FY18 FY19 FY20

FY19

Gross profit split (by region)

FY20

imimobile plc€¦ · 2000 founded with mobile-first vision 2014 listed on london stock...

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