imimobile plcselling begun with first major sale of imiconnect in south africa 11.2 12.7 13.5 16.6...
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IMImobile PLCUnaudited Interim Results Overview - Financial Year 2017
Jay Patel, Chief Executive Officer
Mike Jefferies, Chief Financial Officer
November 2016
IMImobile is…
2
…with a track record of international service delivery
…an established software provider … operating in fast growing markets
… for our clients worldwide
Helping companies to engage with their customers on digital channels
16 years experience in mobile
Delivering services in 60+ countries from cloud infrastructure
Profitable and cash generative for more than 10 years
Offices in London, Atlanta, Dubai, Hyderabad and Johannesburg
800+ employees worldwide
Rapid growth of smartphone usage globally
Customers increasingly demand mobile experiences
Companies recognise they need to invest in mobile and digital
Delivery of multi-channel communication, across multiple
organisation departments and in different geographies is complex
2003 First products sold in India and $1m revenue
2007 Internationalisation began
2010 Acquisition of WIN plc (AIM listed)
2012 IBM licensed IMIdigital in 17 countries
2014 AIM Listing and acquisition of Textlocal
2015 Acquisition of Archer Digital and launch of Textlocal in India
Interim Results Overview - Financial Year 2017
o Revenue up 29% to £36.0m (2015: £27.8m)
o Gross profit up 22% to £20.2m (2015: £16.6m)
o EBITDA up 17% to £5.3m (2015: £4.5m)
o Adjusted profit after tax up 22% to £3.3m (2015: £2.7m)
o Diluted adjusted EPS growth of 18% to 4.8p (2015: 4.1p)
o Cash and cash equivalents at 30 September 2016 of £17.9m (31 March 2016: £15.0m)
3
Strong growth across all business units driven by demand for digitising consumer interactions
Operational Highlights
Financial Highlights
o Strong Organic growth - organic gross profit growth of 14% across the Group (7% in
Europe and Americas, 21% in MEA, 31% in India and SEA)
o Increased proportion of recurring revenues – MRR growth year on year of 25%,
representing 94% of gross profit (2015 92%)
o Strategic client win – new major mobile operator relationship in the US
o New product releases - launch of new version of IMIchat with significant initial traction
from end user customers and channel partners
o Acquisitions integrating well - Textlocal international expansion progressing with 5,000+
paying customers in India and recent launch in Myanmar; Archer integration and cross
selling begun with first major sale of IMIconnect in South Africa
11.212.7 13.5
16.6
20.2
0.0
5.0
10.0
15.0
20.0
25.0
FY13 FY14 FY15 FY16 FY17
H1 Gross Profit £m
2.5
3.4
3.8
4.5
5.3
0.0
1.0
2.0
3.0
4.0
5.0
6.0
FY13 FY14 FY15 FY16 FY17
H1 EBITDA £m
Interim Results Overview - Financial Year 2017
Market Trends, Products & Commercial ModelA fast growing business.
5
Shift towards mobile and digital customer engagement
70% of world's population
will be using smartphones
by 2020, reaching 6.1bn
Rise of chat apps: there will
be 2bn mobile messaging
app users by 2018
By 2017, mobile payment
will reach $780bn, $930bn
in 2018 and $1.08tn in 2019
e-commerce shopping is
shifting from website to
conversational shopping
The digital revolution has forever changed the balance of power
between businesses and their customers.
Ericsson Mobility Report, Digital Strategy Consulting, Shopify, NFC World
Interim Results Overview - Financial Year 2017
6
We simplify channel complexity by helping automate and orchestrate mobile customer interactions
Enterprises
Sales Systems
Marketing Systems
Operations Systems
Support Systems
Explosion of channels combined
with device and messaging
proliferation
Challenge to scale and deliver enterprise-
grade multi-channel services for mobile
across legacy systems
Appointment
Reminders
Delivery
Notifications
Bank Alerts
Live chat
Music & video
content
Product portfolio built on our
global cloud infrastructure
Interim Results Overview - Financial Year 2017
7
Financial Services
Utilities Retail HealthcarePublic Sector
Contact Centre
Logistics Travel
ConnectivityIntelligent Network
GatewaysPayments
Device
Optimisation
Voice
Gateway
13 billion
messages p.a.
14 billion billing
transactions p.a.
10,000+ device
fingerprints in DB
15 billion voice
flows p.a.
600+ services
deployed
24/7 Global Managed Service InfrastructurePrivate cloud co-located in five Tier 3 and Tier 4 data centres across UK, US and India.
Enterprise cloud comms
platform enabling IT to create &
deliver multi-channel customer
journeys
Real-time, interactive multi-
channel campaigns at each point
of the customer life cycle
Content management and
digital service delivery
platform application, utilised
across the world
Application for two-way
interactive text based
messaging in contact centres
Enables broadcasters to
centralise, manage and
interact with audiences via
social media
A cloud-based platform that
enables businesses of any
size to harness the power of
SMS messaging.
IMIcloud
○ Global scalability ○ Potential for operational leverage
Our global cloud infrastructure supports billions of mobile interactions
Interim Results Overview - Financial Year 2017
Commercial model
8
*Approximate split
Volume of e-mail, SMS, MMS,
push notification, sessions etc.
Licences &
one-off
professional services
Contracted revenues
15% 40% 40% 5%Fixed fees Usage based Transactional Non
recurring
Monthly Recurring Revenue(MRR)
Gross Profit Split*
Fees based on revenue transactions
Interim Results Overview - Financial Year 2017
Financial ResultsSix months ending 30th September 2016.
10
Growth in all key metrics
Gross Profit Split
Six months toSep-16
£m
Sep-15
£m
Growth
%
Revenue 36.0 27.8 +29%
Gross profit 20.2 16.6 +22%
Administrative
expenses(16.1) (13.2) +23%
EBITDA 5.3 4.5 +17%
Operating profit 4.1 3.4 +20%
Diluted adjusted EPS 4.8p 4.1p +18%
Trading Performance
Interim Results Overview - Financial Year 2017
11
Strong financial position
AssetsSep-16
£m
Mar-16
£m
Cash
Trade receivables
Pass through revenues
Other current assets
17.9
18.0
6.1
5.4
15.0
16.9
3.1
4.4
Current assets 47.4 39.4
Goodwill
Acquired intangibles
Other intangible assets
PPE
Other non-current assets
20.1
2.1
2.7
5.3
0.9
19.8
2.3
2.0
4.7
0.7
Non-current assets 31.1 29.5
Total assets 78.5 68.9
Net Assets 46.8 43.6
No debt
Ability to leverage
High quality receivable
LiabilitiesSep-16
£m
Mar-16
£m
Trade payables and accruals
Pass through revenues
Other current liabilities
17.3
9.1
4.4
14.4
6.3
3.8
Current liabilities 30.8 24.5
Non-current liabilities 0.9 0.8
Total liabilities 31.7 25.3
Balance Sheet
Interim Results Overview - Financial Year 2017
12
Excellent cash conversion
Six months toSep-16
£m
Sep-15
£m
Cash generated from operations 6.4 4.3
Net cash from operations 5.6 3.8
Investing activities (2.2) (4.7)
Financing activities 0.1 0.0
Cash and cash equivalents
at beginning of period15.0 14.6
Foreign exchange on opening
balances(0.6) (0.2)
Cash and cash equivalents
at end of period17.9 13.5
122% conversion of EBITDA to
cash from operations
Acquisitions paid for out of cash
generated from operations
Strong cash position
Cashflow
Interim Results Overview - Financial Year 2017
Regional UpdatesSix months ending 30th September 2016.
14
Regional Overview – Europe & Americas
0.0
2.0
4.0
6.0
8.0
10.0
12.0
FY14 FY15 FY16 FY17
H1 Gross Profit £m
MRR License & professional services
o Responsible for 53% of Group gross profit (2015: 59%)
o 7% organic gross profit growth (2015: 17%)
o Gross margin 55% (2015: 59%)
o Progress in cloud-communication products IMIconnect, IMIchat,
IMIcampaign and Textlocal
o Initiated channel partner strategy and signed first partnership
agreement for IMIchat
o New client wins across the retail, gambling and media sector
o New relationship with tier one US mobile operator to provide
multi-channel marketing campaign platform and services
o Launched IP messaging with O2 and Facebook Messenger with
our largest banking client
Operational Highlights
Financial Highlights
5.5
6.6
9.9
10.6
Interim Results Overview - Financial Year 2017
15
New customer interaction channels for our clients
Push Notification with O2 Facebook Messenger Customer Service
Interim Results Overview - Financial Year 2017
16
Regional Overview – Middle East & Africa
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
FY14 FY15 FY16 FY17
H1 Gross Profit £m
MRR License & professional services
o Responsible for 33% of Group gross profit (2015: 27%)
o 21% organic gross profit (2015: -2%), 51% overall gross profit growth
o Gross margin 58% (2015: 73%), reflecting impact of Archer
o Long term multi-territory relationships with major operator groups
o Growth driven by consumers taking additional content services and
roll-out of deployments under existing agreements
o New contracts signed will drive growth in following periods
o Strong synergies from Archer Digital - sold IMIconnect into largest
banking client and Archer has supported various video and MMS
initiatives across the Group
Operational Highlights
Financial Highlights
4.14.4 4.5
6.7
Interim Results Overview - Financial Year 2017
17
Strong long-term relationship with Africa’s largest operator Groups
Delivering service to the largest mobile operator groups across 35 countries in Middle East and Africa.
o 35+ countries
o 18,000+ live services
o 60m subscribers
o 5m portal visitors per day
SA Rand
Nigerian Naira
Euro linked
Dollar linked
Indian rupee
Other
MEA GP split by currency
41%
19%
16%
9%
6%
9%
Within the Group there is a natural cost hedge
against the Rand, Euro, Dollar and Rupee, however
no costs are incurred in Naira.
Indian Rupee
Interim Results Overview - Financial Year 2017
18
Regional Overview – India & SE Asia
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
FY14 FY15 FY16 FY17
H1 Gross Profit £m
MRR License & professional services
o Responsible for 14% of Group gross profit (2015: 14%)
o 31% organic gross profit growth (2015: -11%)
o Gross margin 55% (2015: 45%)
o Deepened position with two major operator groups through
consolidation of VAS infrastructure
o Several new client wins across the enterprise, brand and agency
building on growth initiatives from previous periods
o Textlocal India has continued to grow with now more than 5,000
paying customers
o Good continued traction in new geographies; Myanmar and Sri Lanka
Operational Highlights
Financial Highlights3.1
2.5
2,2
2.9
Interim Results Overview - Financial Year 2017
19
Ooredoo Myanmar launches white label Textlocal product
o Greenfield opportunity for
product in fast growing
market
o Fast regional deployment
with limited operational
costs and technical
development
o Sales and distribution
through existing client
Interim Results Overview - Financial Year 2017
Growth strategy
20
Existing Customers
Product Innovation
Channel Strategy
Several active acquisition discussions with business that meet acquisition criteria. (recurring relationships with large blue-chip corporates, complementary product sets, existing geographic locations)
Acceleration of growth through additional distribution by partners has begun, additional
investment required in training and technology integrations.
Continued investment in intellectual property that drives digital interactions including
Natural Language Processing (NLP) and analytics.
Geographic Expansion Focus on successful foundation in select geographic markets (US, Myanmar, South Asia).
Organic Growth
Objective of being trusted technology vendor of customer communication software.
Strategy of investing in technologies that leverage emerging communication channels is
working with success in cross-selling and managing more digital interactions.
Inorganic Growth
M&A
Interim Results Overview - Financial Year 2017
21
Summary and outlook
o Continued strong organic growth across all businesses units
o Extending reach through new customers, new channels, new geographies and product innovation
o Favourable market dynamics with fundamental and rapid shift towards digitisation
o Whilst currency markets continue to be volatile, the full financial year broadly in line with market expectations
Interim Results Overview - Financial Year 2017
London
IMImobile Europe Ltd
5 St Johns Lane
EC1M 4BH
London
United Kingdom
Phone: +44 20 300 86232
Atlanta
IMImobile Inc
Tower Place 200
Atlanta, GA
30326
United States
Phone: +1 470 216 1984
Dubai
IMImobile VAS Ltd FZE
P.O. Box 293593
Office # 624, Building 5EA
Dubai Airport,
U.A.E.
Phone: +971 46091 690
Hyderabad
IMImobile Pvt. Ltd
Plot No. 770, Road No 44
Jubilee Hills
Hyderabad
India
Phone: +91 40 23 555 945
Locations
Johannesburg
Clearwater Office Park,
Building no. 3, First Floor.
Corner Christiaan De Wet and Millennium
Boulevard, Strubensvalley,
Roodepoort, Gauteng, South Africa
Phone: +27 11 991 2900
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operating industry, and future capital expenditures. The events or circumstances referred to in the forward-looking statements may differ materially from those
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