velpic agm presentation · velpic agm presentatn | 25 nov 2016 fy16 review – financial results...
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VELPIC AGM PRESENTATION25 NOVEMBER 2016
2VELPIC AGM PRESENTATION | 25 NOVEMBER 2016
Company Overview
Introductions
Chairperson’s Address
FY16 Review
Financial Overview: Summary of FY16 Results
Operational Overview
Strategy & Outlook
Where Are We Going?
Corporate Overview
Contents
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Company Overview
Velpic is a cloud-based platform that solves the challenges inherent in the use of existing LMS platforms.
It provides a user-friendly and productivity-enhancing alternative to traditional offline training strategies.
Revenue is generated through recurring Software as a Service (SaaS) Fees.
Dash Digital is a specialist technology agency that offers brand, marketing, web and app development services that
builds, deploys and maintains cloud platforms and mobile applications.
Revenue is generated through Professional Services and Hosting.
Listed on the ASX in November 2015
Two complementary businesses: Velpic: an innovative eLearning Platform Dash Digital: a brand technology agency
Targeting a substantial growing Learning Management Systems (LMS) market expected to be worth US$15.7 billion by 2021*
*Markets and Markets: LMS Report
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Introductions – Board
Russell FrancisChief Executive Officer
Industry-disrupting entrepreneur and technology architect with more than 25 years international experience. Proven track recond building enterprise scale applications. Won Talent Unleashed Awards Most Disruptive CIO/CTO Award in 2015 judged by Sir Richard Branson and a panel of global business and technology luminaries.
Leanne GrahamNon-Executive Chairperson
Over 28 years of executive sales and technology experience, having being the highly successful former general manager and global head of sales for Xero’s New Zealand operations. Significant sales and technology experience in early stage and listed companies.
Harry KarelisNon-Executive Director
More than 25 years diversified experience in the financial services sector, including private equity, Asian emerging markets, natural resources, healthcare, life science and medical technologies. Holds several international public and private company directorships and possessing considerable cross-border experience.
Daniel RohrNon-Executive Director
A Chartered Accountant and CFO with over 25 years management, corporate advisory, finance and accounting experience, Daniel has served in numerous listed and unlisted companies across a range of industries including digital technology, mining, real estate and financial services.
BOARD
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Chairperson’s AddressYEAR IN REVIEW
Successful listing on the ASX
Raised over $9 million in capital
Commenced International expansion in New Zealand, USA and UK
Enterprise customer growth of 260% in 12 months and fast approaching 50 clients
Established a strong reseller and partner network of 20+ including partners in the USA
OUTLOOK
Global Learning Management Solutions (LMS) market continues to grow at a CAGR of 25%*
Expected to reach USD 15.7 billion in 2021*
Increasing adoption of digital learning among corporates and trends towards micro learning, social learning and gamification will drive growth of VelpicFlexible, scalable and simple to use solution gives Velpic a competitive advantage
Continue to enhance the platform and features available
Continue to drive international expansion opportunities
*Markets and Markets: LMS Report
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6VELPIC AGM PRESENTATION | 25 NOVEMBER 2016
2014 2015 2016
The ‘Velpic” brand
launched
Version 2.0 development
completed (MVP)
Velpic platform goes live
with 2 inaugural clients
120 lessons completed in first month
Founders decide Velpic’s
future is a public company
Former General Manager and
Global Head of Sales for Xero,
Leanne Graham, Appointed Chair
RTO complete with successful recompliance capital raise
of $4m
Velpic identifies
3 pillar go-to-market
strategy; 1. Enterprise,
2. Reseller Partners & 3. SME
National sales team established to accelerate
Enterprise customer growth and
increase market share
121 lessons completed
in one morning
Launch of Version 3.0 enabling SME
channel
Reseller Partnership
channel launched
with key hires
Rights issue successfully completed raising $5.7m
International expansion
initiated with ADP partnership in
USA and successful
G-Cloud tender in the UK
Launch of Online Lesson Marketplace Providing off the shelf lessons on-
demand lessons for SMEs
Version 3.1 launched allowing any document as a lesson and new active user pricing
2014 2015 2016OCTIncreasing Number of Enterprise SaaS clients:
3 5 6 9 13 19 26 32 40 47
Review – A year of milestones
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FY16 Review – Financial ResultsSubstantial revenue growth for FY16
$1.4 million in revenue (from 22 October 2015 to 30 June 2016 - annualised to $2.1m)
Recurring revenue experiencing an uplift (28%) in Q1 FY17
Loss of $4.65m
Included a number of one off expenses linked to legacy operations and acquisition costs
$9+ million capital raised
$4 million re-compliance Prospectus Issue in October 2015
$5.7 million raising through a 2 for 5 renounceable rights issue in July 2016
Cash at bank figure as at 30 Sept 2016 - $5.74 million
Company well funded to further progress growth initiative in 2017, including expanding its customer presence internationally
Reve
nue
AUD
(000
)SEPT-15 DEC-15 MAR-16 JUN-16 SEPT-16
Quarterly Annualised Subscription Revenue
0
50
100
150
200
250
300
11%
28%
35%
17%
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FY16 Review – Operational ResultsFast approaching 50 enterprise clients.
260% growth in enterprise clients in 12 months.Velpic Growth
Ente
rpris
e Sa
aS c
lient
sJul
2014
5
10
0
15
20
25
30
35
40
Sep Nov Jan Mar May Jul2015
Jul2016
Sep Nov Jan
45
50
Mar May Sept
total lessons completed to date 37,131
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Customer Growth
Platform Development
SME Customer Growth
Expand into New Geographies
Activity pipeline & newsflow
• Customer growth continues in Australia. Fast approaching 50 enterprise clients.
• Strong reseller partnerships in place with 23 resellers and positioned in leading app marketplaces including G-Cloud and ADP.
• Further partnerships anticipated in 2017.
• Strategic enhancements to sales team planned.
• 92 expert modules launched
• Online marketplace now live enabling customers to purchase off-the-shelf on demand e-learning lessons and customisable templates to attract further SME clients.
• V.3.1 of eLearning platform launched offering enhanced lesson creation functionality to further drive client growth.
• Continue to develop and enhance client experience.
• Entered a number of strategic partnerships with product and service providers driving SME marketing and customer growth.
• Dedicated lead generation and desk-based sales team established.
• International Top 20 awards for:• category leader in LMS• most affordable LMS
software• most user friendly LMS
software
• International expansion commenced with first client wins in New Zealand.
• Positioned for growth via leading app marketplaces including ADP and G-Cloud (UK Government) marketplace.
• 2017 – follow through with targets in US, UK, Singapore, Hong Kong and South Africa.
• Further distribution partnerships to come.
1 2 3 4
Strategy and Outlook
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Where are we going?VISION
To be a significant force in transforming the learning management solutions sector.LMS platforms are fast becoming a business critical solution. By capitalising on the shift towards continuous micro learning and the increasing social learning trend, Velpic will continue to improve the skills, knowledge and capabilities of business’ most important assets, their people.
Boost content retention by up to
60%Reduce cost to train by up to
70%Reduce training time by up to
75%
Enter new markets: UK, US, Singapore, Hong Kong and South Africa
Further grow the client base
Focus on increasing recurring subscription (SaaS) revenue
Enhance the LMS platform to capitalise on new learning trends including social learning
Enhance content library of online marketplace to drive customer growth
WHAT 2017 LOOKS LIKE
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Corporate Overview
ASX VPC
Share Price $0.02
Fully Paid ordinary shares 552,432,676
Restricted/Escrowed fully paid ordinary shares 126,040,500
Options:Listed $0.06 OptionsOptions to acquire fully paid ordinary shares
97,052,11729,960,000
Market Cap (undiluted) $13.6 million
Cash Balance (30 September 2016) $5.74 million
Top 5 Shareholders (21 November 2016)
The Trust Company (Australia) Limited 7.57%
Mr Russell Francis 6.02%
Mr Patrick Connell 5.60%
Mr Glen Moora 5.60%
Ms Natalie Olive Horsefield 2.75%
CAPITAL STRUCTURE
Management
Top 20 (excl Management)
Others
21 November 2016:
55%
17%
28%
11VELPIC AGM PRESENTATION | 25 NOVEMBER 2016
Investors
Russell FrancisChief Executive OfficerVelpic Ltd
t +61 8 6160 4455m +61 408 822 [email protected]
Media
Ben GrubbSenior Account Manager
t +61 414 197 [email protected]
Sales
Glen MooraExecutive Director & BDMVelpic Ltd
m +61 418 919 [email protected]
Thank you
www.velpic.com
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