Empowering the world of education 2019 Full Year Results March 2020
2019 Overview Growth in core metrics of Annual Recurring Revenue, Adjusted Operating Profit and Margin% Winning greater market-share in Higher and Further Education; strong bookings in Education Services Continuing to drive development of the Tribal Edge products; first Edge module live Dispute with software platform provider on royalty payments fully resolved; new 10 year VARA March 2020 Tribal Results Full Year 2019 2
2019 Highlights Fourth consecutive year of EBITDA growth and positive financial 4 results; net cash of £16.5m Driving improved profitability - Adjusted EBITDA up 9.1%* to £15.4m and Margin improvement of 190bps to 19.6%* Driving quality revenue - Annual Recurring Revenue (ARR) is 69% of software-related revenue, 54% of total revenue Driving future income - Committed Income increased £14.0m* to £133.6m, inc. new SIS customers and 5 large ES re-tenders * on a constant currency basis SIS – Student Information Systems ES – Education Services March 2020 Tribal Results Full Year 2019 3
2019 Highlights EBITDA (As Reported) £m 18.0 25% 16.0 20% 14.0 12.0 15% 10.0 Student Information Systems 8.0 10% Higher Education: won University of Northampton, UK; 6.0 Kaplan and HETI (NSW), Australia 4.0 Further Education: won 11 new EBS customers in the UK; 5% significant additional work with TAFE NSW 2.0 in Australia Education Services 0.0 0% 2015 2016 2017 2018 2019 Won all 5 major re-tenders across UK, US & Middle East, and new EBITDA EBITDA Margin % contract in Sharjah; value of all contracts won £29m March 2020 Tribal Results Full Year 2019 4
Tribal Group: becoming a pure-play, cloud-only, EdTech software company
2020 priorities Ensure business continuity, protect cash, maximise Protect the business from revenue, and support customers and protect staff. impact of coronavirus Execute cost mitigation actions to protect shareholder value Win new customers and Drive new business sales and support our customers in moving to the cloud and through value-add solutions increase share of and services by building a partner programme and wallet in existing customers through acquisitions Provide a compelling and differentiated proposition for Deliver on our next-generation, comprehensive and best-of-breed Tribal Edge strategy SIS which maximises the student experience and reduces customers’ technical complexity and IT cost March 2020 Tribal Results Full Year 2019 6
Transforming an Institution's Student Information System Process Transformation Business process Technical complexity complexity § Fully integrated § Orchestrated § Open § Secure Inefficient, inflexible, costly § System Transformation Intelligent § Cloud-native March 2020 Tribal Results Full Year 2019 7
Delivering Tribal Edge – a new strategy: Three steps to success Increasing Share-of-Wallet through Tribal’s Value-add solutions Student Existing Information on-premise Solution Student Best Business Education Cloud practice APIs CRM Management cloud-native on System Enhanced Engage BI & Tribal Edge … UI (mobile) Reporting platform SITS TE ( ready for Edge ) SITS Tribal Edge March 2020 Tribal Results Full Year 2019 8
Tribal’s Student Information solution Mobile app Student Staff Voice (Engage) Portal Portal Your journey: Marketing & Curriculum Predictive Reporting Degree Business Recruitment Planning Analytics & BI Apprenticeship Engagement Management Evolving to an API Integration Layer advanced Student Information Alumni Technology Enrolment & Learning & Solution: Student Partners Partners Solution Admissions Submissions Management • Registration Studying Flexible Welfare & • Open Support Core • Scalable … Assessments Funding / • Student Information Secure & Awards Finance • Intelligent solutions and cloud-native Best practice templates Tribal Edge platform March 2020 Tribal Results Full Year 2019 9
Tribal Edge: three-year plan à progress 2019 2020 2021 Deliver first Edge Generate incremental Generate additional module to Australian revenue by selling recurring revenue from customers (Callista). completed, best-of- moving existing customers breed core modules to into the cloud Improve profitability further new customer è progressing well Drive incremental Deliver complete core Deliver first Student revenue through Student Management Management module moving customers to modules è Admissions– targeting five the Cloud Early Adopter customers by end 2020 March 2020 Tribal Results Full Year 2019 10
Financial Report March 2020 Tribal Results Full Year 2019 11
Summary 12 months ended 31 December 2019 Revenue EBITDA Net Cash £15.4m £16.5m £78.2m £78.2m 2019 £16.5m 2019 2019 £15.4m £14.1m 2018 £20.0m 2018 £80.1m 2018 down 18% up 8.9% down 2.3% § Core revenue, on a constant currency basis, is down 1.8%, mainly due to timing on Education Services contracts § EBITDA growth on a constant currency basis is 9.1% reflecting quality of revenue and improvements in efficiency § Strong cash management, net cash £22.5m pre-acquisition; increase in investment in Edge product to £5.9m March 2020 Tribal Results Full Year 2019 12
Financial Key Points (core business) Adjusted Operating Profit, EBITDA Revenue Statutory (Loss)/Profit After Tax £15.4m £(3.0)m ** £78.2m down 1.8% 2018 £14.1m* up 9.1% down 173% 2018 £79.6m* 2018 £4.1m* Adjusted Operating Profit, EBITA Annual Recurring Revenue (ARR) Proposed Dividend £11.7m £42.3m 1.2p up 8.1% up 8.2% 2018 £39.1m* 2018 £10.8m* 2018 1.1p up 9.1% Committed Income Adjusted Operating Margin, EBITDA Net cash excluding acquisition £22.5m *** £133.6m 19.6% up 190bps up 11.7% up 12.5% 2018 £119.6m* 2018 17.7%* 2018 £20.0m * Constant Currency basis ** Statutory Loss includes payments relating to platform dispute of £9.1m *** Net cash of £16.5m including acquisition March 2020 Tribal Results Full Year 2019 13
Segment Results 2018 FY Growth % Revenue Segment Profit Segment Revenue 2019 FY 2018 FY (£m) Constant Constant £m Constant Currency £m Constant Currency Currency Currency 25.0 90.0 Student Information Systems 58.6 57.6 57.1 3% 80.0 Education Services 19.6 22.4 22.5 (13%) 20.0 70.0 Total 78.2 80.1 79.6 (1.8%) 60.0 15.0 50.0 Annual Recurring Revenue 42.3 39.5 39.1 8.1% 40.0 10.0 30.0 20.0 5.0 2018 FY Growth % Adjusted Operating Profit 10.0 2019 FY 2018 FY (£m) Constant Constant 0.0 0.0 Currency Currency 2018 FY 2019 FY 2018 FY 2019 FY Student Information Systems 17.9 16.9 16.7 8% SIS ES SIS ES Education Services 4.0 4.6 4.6 (14%) Segment Profit 22.0 21.5 21.3 3% 2018 FY Growth % Revenue by Geography 2019 FY 2018 FY (£m) Constant Constant Central Overheads (10.3) (10.7) (10.5) 2% Currency Currency Total 11.7 10.8 10.8 8% UK 47.4 42.6 42.6 10% Rest of World 30.8 37.5 37.1 (20%) Operating Margin 14.9% 13.5% 13.5% 1.4pp Total 78.2 80.1 79.6 (2%) March 2020 Tribal Results Full Year 2019 14
Annual Recurring Revenue (ARR) 2018 FY Growth % Annual Recurring Revenue 2019 FY 2018 FY 5% Constant Constant (£m) Currency Currency 15% Support & Maintenance 33.7 32.9 32.5 3.7% Cloud Services 6.5 5.7 5.6 16.1% 2019 FY Support Subscription Licenses 2.1 1.0 1.0 110.0% Cloud Total 42.3 39.5 39.1 8.1% ARR from License 80% By Line of Business £ m 25.0 Total Annual Recurring Revenue £42.3m (FY18 £39.1m*) 20.0 § Increase of £3.2m (8.1%) 15.0 § Continuing demand for cloud & hosting services from customers 10.0 § Tribal Dynamics delivers on a full SaaS basis: 5.0 contributed £0.8m (7 months) to subscription licenses, increases to £1.3m on a fully annualised 0.0 Higher Education Further Work Based Schools Dynamics Other basis Education Learning * Constant Currency basis 2019 FY 2018 FY March 2020 Tribal Results Full Year 2019 15
Committed Income Total Committed Income £133.6m Committed as at 31 December 2019 (FY18 £119.6m*) split by year of expected recognition § Increase of £14.0m (11.7%) £m 160.0 § ~ 78% of next 12 months’ consensus revenue committed 140.0 £133.6m § SIS includes Tribal Dynamics (£3.6m) and the impact 120.0 of one less year on the Callista contract § ES includes the five re-tenders won in the year 100.0 Key contracts closed 80.0 § Student Information Systems ES 60.0 • University of Northampton 24% SIS EMEA • Kaplan Australia 49% 40.0 § Education Services • National Centre for the Teaching of Mathematics, UK 20.0 SIS APAC Committed Revenue • New York State Education Department, US 27% £122.5m, split by business • Abu Dhabi Department of Education and Knowledge, 0.0 2020 2021 2022+ UAE SIS EMEA SIS APAC ES • Inspection of European Schools, EU • New Zealand Tertiary Education Commission, NZ Committed Income (Backlog) refers to the Total Contract Value of booked sales orders which have not yet been delivered (including 2 years Support & Maintenance, where it is contracted on an annually * Constant Currency basis recurring basis) March 2020 Tribal Results Full Year 2019 16
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