For personal use only Half Yearly Results – FY2020 RCW:ASX | February 2020
Agenda For personal use only H1 FY20 Achievements Business Update H1 FY20 Financial Information Summary and Outlook
A Reflection on H1 FY20 Achievements For personal use only Strong H1 revenue growth License and Recurring revenue growth of Expanded presence in US market with new Core business unit has line of sight for 91% and 40% (YoY) respectively client wins in industrial and financial cashflow break-even in FY20 sectors 88% of sales revenue from overseas, Restructured business into Core and Successfully delivered first major which included $875k generated from New Products business units Presence Control project in Belgium the European region 36% (YoY) sales revenue growth to $6.0m in H1 FY20 3
Agenda For personal use only H1 FY20 Achievements Business Update H1 FY20 Financial Information Summary and Outlook
Strategically Positioned For personal use only RightCrowd is well positioned to capitalise on the emerging Enterprise Security Risk Management (ESRM) market LIMITATIONS Siloed systems Siloed internal processes ENTERPRISE Siloed safety, security and SYSTEMS compliance >$100 BILLION PA ESRM MARKET • Physical security and IT convergence IMPACT RightCrowd is at the tip of • the industry’s technology PHYSICAL Compromised safety, transformation CYBER SECURITY security and compliance SECURITY INDUSTRY Unexplored improvement INDUSTRY Currently, only a few • potential companies addressing >$100 BILLION PA >$100 BILLION PA this market 5
The Market – Evolution and Convergence For personal use only Opportunity for Electronic locks and badges Mechanical integrated Attribute- Physical Access Control locks and based Physical Access & Systems (PACS) keys Presence Control Physical security very little identity software innovation CONVERGED PHYSICAL AND LOGICAL ACCESS CONTROL Logical security Identities and access Centralised Access Role-based Access Attribute-based Access rules baked into systems Control Lists Control Systems Control Systems and applications (ACL) (RBAC) (ABAC) 6
RightCrowd Product Strategy – Physical Security For personal use only Learning Management IT / HR Business Systems Systems Systems USERS LOCATIONS RightCrowd Employee Portal Admin Portal Rules & Workflow Contractor Portal Security Officer Engine Visitor Portal Physical Access Control System Integrated Attribute-based Access and Presence Control Phone Security Existing app wearable badges 7
RightCrowd Product Strategy – Logical and Physical Convergence For personal use only Positioning in cyber security market to capitalise on growing “Insider Threat” within corporations IT / HR Physical Mainframe Custom Off-the-Shelf Cloud Systems Security Legacy Systems Applications Applications Applications USERS OUTCOMES Auditors Identifies user access issues across a • IT Administrators Analytics multitude of systems Engine Compliance Managers Can notify relevant personnel for • resolution via email Security Officers REMEDIATION Output can be used for remediation • Line Managers Ticketing Systems Identity & Access of user access issues Management Continuous User Access Compliance • Lightweight, fast deployment and rapid ROI • Visibility of user access within logical and physical systems • User access reviews for every system, made easy • 8 Reduce cost, mitigate risk and boost productivity •
Channel opportunities For personal use only PARTNERING WITH THE WORLD’S LARGEST PHYSICAL ACCESS CONTROL SYSTEM COMPANIES, THAT CONTROL ~70% OF THE GLOBAL MARKET. Successfully built trust resulting Majority of large Integrating with and holding long- RightCrowd’s partners have in growing number of organisations run term partnerships with leading their hardware in several opportunities that will provide a access control from one global security firms provide hundred thousand long tail of revenue of these vendors RightCrowd strong growth potential environments RightCrowd is in the early growth phase of a very large, relatively untapped market as the physical security sector progresses along the digitisation path. 9
RightCrowd Product Offering – Core For personal use only Workforce Visitor Management Management Ensures continuous validation The enterprise standard for Visitor that everyone on site is right. Management. On-boarding and access Remove the queue management Improve hosting Competencies and experience certifications Making visitors part of Time on-site evacuation management Efficient lobby Fatigue management operations Random drug and Big group, no problem alcohol testing Automated access See the big picture revocation 10
RightCrowd Product Offering – New Products For personal use only Evacuation Presence Management Access Analytics Control Real-time evacuation headcount for Presents the health of access Providing companies the next layer of everyone on site. compliance in a single view. physical security. Flexible configuration Integrates with any access Digital badgeholders and deployment control or business system Visualise physical Continuous visibility Cover every location security Leverages existing PACS Simplified compliance Continuous visibility infrastructure reporting Flexible deployment Automated data Frictionless evacuation model collection Mobile App allows two- Improve emergency Dynamic audit way zone notifications to response generation users and security Monitor security issues Eliminate muster Tethering of visitors in real-time stations 11 11
Agenda For personal use only H1 FY20 Achievements Business Update H1 FY20 Financial Information Summary and Outlook
H1 FY20 Financial Performance For personal use only Growth in sales revenue driven by new license sales mainly in North Group Results (AUD'000s) America for workforce and visitor management solutions. PROFIT OR LOSS % Change H1 FY20 H1 FY19 YoY Annual Recurring Revenue (ARR) more than $3.3m as at 31 Dec 19. Sales Revenue 5,967 4,382 +36% New Products division ( Presence Control, Evacuation Management, Other Income 274 289 -5% and Access Analytics products ) generating early revenue from first deployments, adding $0.2m of revenue for the period. Total Income 6,242 4,672 +34% Expenses predominantly driven by employee related costs ($7.9m) – Total Expenses 10,806 7,757 +39% the increase on H1 FY19 driven by Ticto and Offsite Vision acquired entities (adding $2.0m additional cost in H1 FY20). Profit before Income Tax (4,564) (3,085) -48% Adoption of AASB16 in this reporting period using modified Income Tax Expense (31) (32) retrospective approach resulted in minimal impact on net profit given limited number of Company operating office leases. Net Profit for the Year (4,595) (3,117) -47% 13
H1 FY20 Financial Performance For personal use only Cash balance closes at $3.82m, down from $4.97m at end June. Group Results (AUD'000s) BALANCE SHEET % Change 31-Dec-19 30-Jun-19 YoY Trade and Other Receivables at $2.45m, down from $4.37m at Current Assets 6,811 9,941 -31% end June due to receipt of government R&D rebate during H1 FY20. Non-Current Assets 17,492 16,098 +9% Total Assets 24,303 26,039 -7% Increase in Non-Current Assets, Current, and Non-Current Liabilities driven by adoption of AASB 16 – Leases. Operating Current Liabilities 6,099 4,377 +39% leases now recorded on balance sheet as Right-of-Use Assets and Lease Liabilities. Non-Current Liabilities 1,141 224 +410% Net Assets 17,063 21,439 -20% Changes in Equity driven by: Issued Capital 39,691 39,651 +0% Share issuance relating to Offsite Vision acquisition • based on achieving Year-1 performance targets Reserves 729 783 -7% Transfer of Share Option Reserve to Retained Earnings • following Share issuance. Retained Earnings (23,357) (18,995) -23% Retained earnings movement through net loss • Total Equity 17,063 21,439 -20% for the half-year. 14
Agenda For personal use only H1 FY20 Achievements Business Update H1 FY20 Financial Information Summary and Outlook
Summary and Outlook For personal use only 36% (YoY) sales revenue growth to $6.0m in H1 FY20. License and Recurring revenue growth of 91% and 40% (YoY) respectively Core business unit projected to achieve Increasing proportion of revenue relating Extending existing global PACS channel cashflow break-even in FY20 to recurring software revenue and relationships through white labelling of license fees workforce management solutions Completion of current large deployment Renewal of RightCrowd IQ customer Presence Control sales momentum to projects and preparation for substantial contracts and acceleration of pipeline increase with successful reference site, new projects in sales pipeline with dedicated sales coverage and distribution partners and additional emerging channel partners European sales headcount RCW maintains full year FY20 outlook of $13m+ of sales revenue (40%+ growth YoY) 16
For personal use only Contact Peter Hill CEO peter.hill@rightcrowd.com James Stewart CFO/COO james.stewart@rightcrowd.com
Recommend
More recommend
