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Half year results 201919 June 2019
Half year results June 20192
Introduction & highlights
Financials
Strategic update & conclusions
Questions & Answers
Alastair Bathgate
Ijoma Maluza
Alastair Bathgate
Agenda
3 Half year results June 2019
Introduction & highlights
Half year results June 20194
Introduction
• Great progress in a high growth, but competitive market
• Investing in product, go to market and the team
• Acquisition of Thoughtonomy– Mid-tier cloud based product offering– Identify cloud opportunities in the core
enterprise market
Half year results June 20195
Sales highlights
Customer momentum continues at pace
Delivers pipeline to upsell, with proven track record
1,337 customers covering 27% of Forbes Global 2000
Key metrics
911Deal count
1H 192H 181H 18
911800559
349New customers
1H 192H 181H 18
349305223
496Upsells
1H 192H 181H 18
496425298
99.5%Renewals
1H 192H 181H 18
99.5%97.3%100%
New logos
Half year results June 20196
Strategic & operational highlights
Launched connected - RPA
Blue Prism World - c.4,500 attendees
Headcount increased by 174%
21 Customer Success heads
Launched success accelerator
Deepening partner relationships – e.g. EY
Building the Blue Prism Labs team
Decipher – cognitive in the platform
Used by 512 customers
Private assets to help share and scale
e-commerce introduced –download Blue Prism
Expanding technology partnerships
703 employees Enhancing the Executive team
Strong cultural framework
Sales & Marketing
Customer Success & Partnerships
Digital Exchange maturing
Investingin R&D
Reinforcing the organisation
Half year results June 20197
Thoughtonomy
8 Half year results June 2019
Financials
Half year results June 20199
Financial highlights
• Exit MRR uses the average FX rate which at the end of April 2019/beginning of May 2019 was £1:$1.29
£41.6mRevenue
1H 191H 18
£41.6m£22.9m
97%Recurring licence revenue
1H 191H 18
97%93%
Key financials (IAS 18 basis)
£7.6mExit monthly recurring revenue*
1H 19FY 18
£7.6m£6.2m
£(34.0)mAdjusted EBITDA
1H 191H 18
£(34.0)m£(4.2)m
£129mCash
1H 191H 18
£129m£55m
Strong performance continues – 82% growth in revenues
High quality, licencebased revenues
MRR increased by £1.4m to £7.6m
Half year results June 201910
Revenue by geography
• Americas grown by 99%
• EMEA remains strong
• APAC presents a significant opportunity
£6.9m
£2.7m
£11.9m
£8.4m
£2.6m
£19.5m
£16.7m
£5.4m
EMEA Americas APAC
1H 191H 181H 17
Presented on IAS 18 basis
Half year results June 201911
Market activity and deal sizes
• Deal count has grown significantly
• Flexible contract terms have increased proportion of 1-year deals
• Removed perceived barriers to customers
0
100
200
300
400
500
600
700
800
900
1,000
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4
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1H 191H 18
Deals secured
2H 181H 17 2H 17
Average deal sizeNote: Average deal size based on incremental recognised revenue divided by number of deals
Half year results June 201912
New customers provide a base to grow
• Upsell opportunity is across cohorts
• Focused on continuing this upsell momentum
Customer cohort analysis by monthly revenues
1H 191H 181H 17 2H 17 2H 18
2017 H1 2017 H2 2018 H1 2018 H2
Half year results June 201913
MRR progression
• Continued strong growth in exit MRR
• Rate of growth reflects the changed commercial model
0
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8
Prior periods MRR New MRR
1H 191H 181H 16 2H 16 2H 181H 17 2H 17
Prior periods (prior to 1H 2018) have not been adjusted to the revised MRR definition
Half year results June 201914
For the sixth months ended 30 April 2019 (£m)
1H19IAS 18
1H19IFRS 15
1H18IAS 18
(IAS 18)% change
Licence revenue 40.5 39.3 21.5 88%
Other revenues 1.1 1.1 1.4 (21)%
Total revenue 41.6 40.4 22.9 82%
Staff costs (57.8) (53.6) (22.9) (152)%
Other expenses (21.4) (21.4) (5.5) (289)%
Adjusted loss from operations (37.6) (34.6) (5.5) (584)%
Depreciation and amortisation 0.3 0.3 0.1 200%
EBITDA (37.3) (34.3) (5.4) (591)%
Share based payments 3.3 3.3 1.2 175%
EBITDA post adjustments (34.0) (31.0) (4.2) (710)%
Income statement
• Licence revenue growth ahead of total revenue growth
• EBITDA loss driven by:– Investment in growth– £4.2m sales
commissions
Half year results June 201915
Cash flowFor the sixth months ended 30 April 2019 (£m) 1H19 1H18
Adjusted EBITDA (31.0) (4.2)Increase in trade and other receivables (4.1) (4.2)Increase in trade and other payables 5.0 (0.6)Increase in deferred revenue 11.8 8.5Net cash flows from operating activities (18.6) (0.5)Income taxes paid (0.3) -Purchase of intangible fixed assets (0.2) -Purchase of property, plant & equipment (0.5) (0.2)Interest received 0.2 -Issue of ordinary shares (net of issue costs) 98.5 39.0Net increase in cash and cash equivalents 79.1 38.3Cash and cash equivalents at the beginning of the year
50.5 16.3
Effect of foreign exchange on cash and cash equivalents
(0.2) -
Cash and cash equivalents at the end of the year 129.4 54.6
Adjusted EBITDA Operating cash flow
1H 19
FY18
1H18
-40 -30 -20 -10 0
Half year results June 201916
Balance sheet
• Continue to manage balance sheet conservatively
• £100m placing in January
• Growth in the business impacts receivables and payables
For the half year ended 30 April 2019 (£m) 1H19 1H18
Non-current assets 13.3 0.5
Trade and other receivables 35.5 19.1
Cash and cash equivalents 129.4 54.6
Current assets 164.9 73.7
Total assets 178.2 74.2
Deferred revenue 59.7 35.8
Trade and other payables 24.7 7.5
Total liabilities 84.4 43.3
Net assets 93.8 30.9
Share capital & premium 150.5 50.5
Share based payment reserve 7.2 2.4
Other reserves 0.4 0.8
Retained losses (64.3) (22.8)
Equity attributable to shareholders 93.8 30.9
Half year results June 201917
Thoughtonomy financial details
• Expected to complete by end of July 2019
• £80m Enterprise Value
• Stepped payment process– Completion - £12.5m
cash; £23m equity– First anniversary -
£20m equity– 18-month anniversary -
£4.5m cash– Two-year anniversary -
£20m equity
77Customers
54Employees
£m
Thoughtonomy12 months to Apr-19
(Unaudited)
Blue PrismPotential Impact
(4-months to FY19)
Adj. Revenue 7.4 2.0 – 3.0
Adj. EBITDA (3.6) (1.0 – 2.0)
Note1. Thoughtonomy financials are unaudited and preliminary based on standalone financials. The actual
impact will depend on Blue Prism’s accounting policies2. Customer and Employee numbers as at end of May 2019
£0.6mMRR
Half year results June 201918
Summary
• Commercial changes have driven an increase in deals and new customer wins
• Deal sizes have rebased in the short-term, reflecting these changes
• The resulting customer base provides a significant opportunity for upsell
• Our track record for retaining and upselling customers is very strong
19 Half year results June 2019
Strategic update & conclusions
Half year results June 201920
Marketplace
Software-as a Service
HfS, November 2018‘The future of Business Operations is here’ 30 November 2018
Continually rated as a market leader
Enterprise market Mid-market
Cloudwill increasingly be the deployment method of choice
“The initial adoption of "attended RPA” ……will eventually drive more "unattended RPA" where the increased value will be created and genuine alignment between RPA models proving to be a gateway to broader AI engagements”
Half year results June 201921
Telefonicaconnected-RPA in action
• Telefónica’s ambition is to maintain and enhance their position as global leader by embracing intelligent process automation as a key pillar in its digital transformation strategy
• After discussing with Blue Prism realised that they needed an enterprise grade solution aligned with security, governance, scalability and central control
• Projects are already being deployed across Telefonica’s most important operators, including Spain and Brazil
• Demonstrates both the strength of Blue Prism and the potential opportunity across the customer base
Significant deal secured in the half500+ Digital Worker commitment
Half year results June 201922
We have focused the product on enterprise connected-RPA
Connected-RPA is enabled by providing a platform which is:
• Business led
• Controlled and governable
• Intelligent
To achieve these the platform must also be secure and scalable
These are crucial to the success and safety of any large RPA deployment
Market penetration in regulated industries, where these capabilities will be assessed as essential
Major banks Insurance Pharma
Share of industry participants in Forbes Global 2000
Half year results June 201923
Product development supports connected-RPA
Digital exchange
Embracing the cloud
Ease of adoptionEmbed AI
Further enterprise opportunities
Blue Prism Labs
Decipher announced –human in the loop
Direct purchase
Trial versions in Azure & on prem Thoughtonomy
provides mid-tier proposition
Enterprise deployments in the cloud
Six Intelligent Automation Skillsto deliver true operational agility
Knowledge & Insight
Visual Perception
Learning
Planning &Sequencing
Problem Solving
Collaboration
Community / learning edition
Half year results June 201924
The Digital Exchange is increasingly central
Half year results June 201925
Managing our sales investments
Managing growth in the sales team • Training ‘Spacecamp’ programme for new starters• Reorganising against market priorities• High-touch customer engagement
Customer Success minimises attrition & maximisesupsells• Increasing post sales contact• CCO from one of our largest customers
Connected-RPA drives our marketing strategy• New CMO from Silicon Valley
5 core geographies
DACH
UnitedStates
Japan
China
UK
Half year results June 201926
Conclusions & outlook
Connected-RPA uniquely addresses our market• We are building a large customer base and have a proven
track record of upselling
• Connected-RPA vision starting to deliver significant deals
• We continue to invest in the future opportunity, including our strategic investment in Thoughtonomy
• Exit MRR and our sales pipeline provide our confidence in our full year 2019 performance
27 Half year results June 2019
Appendices
Half year results June 201928
Operating expense breakdown
1H18 FY18 1H19
General & Administrative 4.0 10.4 10.9
Sales & Marketing 21.6 62.8 61.5
Research & Development 1.6 4.0 3.5
Total Operating Expenses 27.2 77.2 75.9
• Excludes share based payments
Half year results June 201929
Restated MRR
• MRR has been restated to reflect the full impact of deals won during the last month of the reporting period
Old definition New definition
FY17 2.8m 3.2m
1H18 4.4m 4.7m
FY18 5.6m 6.2m
1H19 n/a 7.6m
Half year results June 201930
Sales structure
• Quota carrying: Sales employees working directly with customers and partners
• Solution engineers/pre sales: technical resource. No quota
• Other: Includes management, sales operations and sales enablement Quota-carrying OtherSolutions engineers
Half year results June 201931
IFRS 15
1H19 under IAS 18
Impact of IFRS 15
1H19 under 1FRS 15 (as
reported)
Revenue 41.6 (1.2) 40.4
EBITDA (34.0) 4.2 (29.8)