Investor Presentation Q4 2020 - tecsys.com · Investor Presentation Q4 2020 A Symbol of Leadership....

Post on 24-Jul-2020

13 views 0 download

Transcript of Investor Presentation Q4 2020 - tecsys.com · Investor Presentation Q4 2020 A Symbol of Leadership....

InvestorPresentationQ42020

ASymbolofLeadership

SafeHarbour

The statements in this presentation relating to matters that are not historical fact are forwardlooking statements that are based on management's beliefs and assumptions.

Such statements are not guarantees of future performance, and are subject to a number ofuncertainties, including but not limited to future economic conditions, the markets that Tecsys Inc.serves, the actions of competitors, major new technological trends and other factors beyond thecontrol of Tecsys Inc., which could cause actual results to differ materially from such statements.

All names, trademarks, products and services mentioned are registered or unregistered trademarksof their respective owners.

2

OurPurpose:Toempowergoodcompaniestobegreat.

OurPosition:Toclarifyuncertaintyinthesupplychain.

OurMission:Toequipsupplychaingreatness.

OurVision:Thatgoodcompanieshavethespacetothrive.

Ourstoryisallaboutourcustomers

3

Visionaryproviderofsupplychaintechnologyfor theworld’smostcomplexsupplynetworks

9Times“Visionary”inGartner’sWMSMagicQuadrant

Top3inGartner’s2019HealthcareSupply

ChainTop25“Masters”

37Yearsofcomplexsupply

networkexperience

4

E-Commerce

PointofUse

End-to-endIntegratedSupplyChainManagementSolutions

FinancialManagement 3RD PartyBilling

ANALYTICS

Healthcare – Distribution – Retail –3PL

CUSTOMERSPARTNERSSUPPLIERS ENTERPRISESYSTEMS

TransportationWarehouseProcurement&Inventory

DemandPlanning

Collaboration

5

Delivering end-to-end solutions with technology & services tailored to key industries

SolutionsBuiltonExperience

6 7/21/20

Complex Supply Networks Retail

Third Party Logistics Healthcare

GlobalReach

1,000+ Customers

$105M Revenue*

58% USA 23% Canada 19% ROW

(primarily Europe)

$48MAnnual Recurring

Revenue**

514 Employees

7 * Last twelve months, April 30, 2020** At April 30, 2020

ExtendingourReachin$10BUSHealthSystemsMarket–TheARROpportunity

87% 13%

Market Opportunity Current Share

ARROpportunity:

$600m

83%

17%

Market Opportunity

ARROpportunitywithCurrentBase:

$76m+300TargetHealthSystems

HealthSystemsMarketShare

BaseAccountPenetration

8

B2BandB2CMarketplaceConvergence

§ Businesses/tradingpartnersexpectthesame

§ Extraordinarypressureonsupplychaintodeliver

Result: SupplyChainManagementisatacrossroadsandinneedofanswersOpportunity: Tecsys iswellpositionedtosolvethesechallenges

§ Seismicshifthappeninginretail

§ Consumersdemandproductsfaster

9

EvolutionofAnnualRecurringRevenue(ARR*)

23%YoY ARR Growth (constant currency)

2017 2018 2020

$27.1 $27.5

$48.1

*RefertoJanuary31,2020ManagementDiscussionandAnalysis“KeyPerformanceIndicators”

10

2019

$39.1

Amounts in January 31, 2020 constant CAD millions

AnnualRecurringRevenueNetRetentionRate

106%2020 FY20 Recurring Revenue Net Retention Rate

2017 2018 2020

98% 98%

106%

NetRetention= (Existingcustomerexpansionlesschurn)dividedbyBeginningperiodARR

11

2019

106%

ShareholderValueGrowthThroughSaaSMigration

WhySaaS?

Agility ofDeployment

Accelerated Upgrades

Managed Security and

Certifications

Mature Cloud Data Security

13

0

200

400

600

800

1000

1200

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

License SaaS

PerpetualLicensevs.SaaSPricingModelCrossOver

SaaS typically priced at 2.5xperpetual license maintenance

SaaS Annual Contract Value (ACV) typically equals .5x license

In year 4 (at ~40 months) SaaS cumulative revenue crosses over perpetual license cumulative revenue*

Net gain over perpetual maintenance revenues

*SaaScontractstypically5yearsindurationwithautorenewalthereafter

14

SaaSBookingsGrowingRapidly,andincreasingasaProportionofTotal(License Equivalency Basis)

Amounts in CAD millions

2017 2019 2020

$5.9$6.7

$22.2

SaaS

License

15

$8.9

2018

147%YoY growth

23%License bookings

77%SaaS bookings

SaaSFuelsRecurringRevenueGrowth

279%YoY SaaS Revenue Growth*

16

* As of Q4 FY20

Amounts in CAD millions

25%Q4 FY20 SaaS Revenue as a percentage of total Cloud, Maintenance and Subscription Revenue (up from 15% in Q4 FY19)

$0.0 $0.0

$0.9

$1.4$1.7

$2.1$2.5 $2.7

0.0

0.5

1.0

1.5

2.0

2.5

6.0

6.5

7.0

7.5

8.0

8.5

9.0

9.5

10.0

10.5

11.0

Q1 FY19A Q2 FY19A Q3 FY19A Q4 FY19A Q1 FY20A Q2 FY20A Q3 FY20A Q4 FY20A

Quarterly SaaS Revenue Growth

Total SaaS Revenue Total Cloud, Maintenance and Susbscription Revenue

§ Strengthenedportfoliowithastrongretailcapabilitytoexpandaddressablemarket(OrderDynamics,OrderManagementPlatform)

§ ExpandedfootprintinEurope(PCSYSA/S,nowTecsysA/S)

§ Nowafteroneyear- Acquisitionsintegratedandcontributingpositivelytogrowth

KeyAcquisitions-Update

17

CorporateInformation

19

AnnualRecurringRevenue**

$43.8Mup 57%

SaaSARRBookings*

$8.8Mup 472%

Cloud,MaintenanceandSubscriptionRevenue*

$41.1Mup 31%

* Lasttwelvemonths,April30,2020** AtApril30,2020

FinancialHighlights,inCAD000exceptEPS

20

Q4,2020 Q4,2019 ΔYoY Q4,2020TTM Q4,2019TTM ΔYoY

$ % $ % $ % $ % $ % $ %TotalRevenue $27,750 100.0% $23,191 100.0% $4,559 19.7% $104,855 100.0% $76,449 100.0% $28,406 37.2%Cloud,MaintenanceandSubscriptionRevenue $10,638 38.3% $9,360 40.4% $1,278 13.7% $41,058 39.2% $31,282 40.9% $9,776 31.3%Costofsales $14,854 53.5% $12,282 53.0% $2,572 20.9% $54,537 52.0% $39,008 51.0% $15,529 39.8%Grossmargin $12,896 46.5% $10,909 47.0% $1,987 18.2% $50,318 48.0% $37,441 49.0% $12,877 34.4%

Sales&Marketing $5,368 19.3% $5,058 21.8% $310 6.1% $20,134 19.2% $17,204 22.5% $2,930 17.0%GeneralandAdministration $2,637 9.5% $2,836 12.2% ($199) -7.0% $9,821 9.4% $9,354 12.2% $467 5.0%ResearchandDevelopment $4,297 15.5% $3,852 16.6% $445 11.6% $15,235 14.5% $12,681 16.6% $2,554 20.1%Restructuringcosts $0 0.0% $0 0.0% $0 100.0% $420 0.4% $0 0.0% $420 100.0%Operatingexpenses $12,302 44.3% $11,746 50.6% $556 4.7% $45,610 43.5% $39,239 51.3% $6,371 16.2%

Profit(loss)fromoperations $594 2.1% ($837) -3.6% $1,431 171.0% $4,708 4.5% ($1,798) -2.4% $6,506 -361.8%

Netincome(loss) $375 1.4% $79 0.3% $296 -374.7% $2,346 2.2% ($741) -1.0% $3,087 -416.6%

AdjustedEBITDA $1,951 7.0% $684 2.9% $1,267 -185.2% $10,271 9.8% $2,776 3.6% $7,495 270.0%

EPS(basicanddiluted) $0.03 $0.01 $0.02 -200.0% $0.18 ($0.06) $0.24 -400.0%

Bookings $40,885 $19,248 $21,637 112.4% $112,683 $63,211 $49,472 78.3%LicenseBookings $1,388 $1,239 $149 12.0% $4,718 $5,928 ($1,210) -20.4%SaaSARRBookings $4,075 $917 $3,158 344.6% $8,758 $1,530 $7,228 472.4%

Backlog $120,351 $76,563 $43,788 57.2% $120,351 $76,563 $43,788 57.2%AnnualRecurringRevenue $48,140 $38,276 $9,864 25.8% $48,140 $38,276 $9,864 25.8%ProfessionalServicesBacklog $34,965 $24,478 $10,487 42.8% $34,965 $24,478 $10,487 42.8%

RefertoApril30,2020ManagementDiscussionandAnalysis“KeyPerformanceIndicators”

RefertoApril30,2020ManagementDiscussionandAnalysis“Non-IFRSPerformanceMeasure”

21

MarketCap14.4MS/O

$460M

BrokerageCoverage

CorporateOverview

SymbolTCS DividendperYear

23¢InsiderOwnership

26%

§ Cormark Securities§ EchelonPartners§ Stifel/GMP§ LBSecurities§ NationalBank

ManagementTeam

PeterBreretonPresidentandCEO

MarkJ.BentlerChiefFinancialOfficer

BillKingChiefRevenueOfficer

Peterinitiallyledthecompany’ssoftwaredevelopment,productmanagement,salesandmarketing.In1998,hewasappointedCEOandwaslargelyresponsibleforthecompany’sInitialPublicOffering.HerepositionedTecsysinthesupplychainexecutionindustry,andleveragedthecompany’sstrengthsintechnologyandsupplychainexpertisetoachievesignificantgrowthandbecomealeaderinitsmarkets.

MarkjoinedTecsysin2018aschieffinancialofficer.Markhasmorethan20yearsofinternationalexperienceandwaspreviouslyChiefFinancialOfficerforAptosRetail.Inadditiontoplayingasignificantroleintheformationandgrowthofthecompany,heledthesuccessfultransitionofthebusiness’retailmanagemententerprisesolutionstoacloud-centricplatform.PriortohisworkatAptosRetail,heservedasVicePresident,FinanceforEpicorRetail.

BillhasledTecsys’go-to-marketstrategyandexpansionsinceJanuary2019.PriortojoiningTecsys,heheldexecutivesalesleadershippositionsatOracleintheNorthAmericanSalesorganization,mostrecentlyasvicepresidentofkeyaccountsandpreviouslyasgroupvicepresidentofNorthAmericaStorageSales.PriortoOracle,BillwaswithFujitsuforoveradecadeandheldavarietyofexecutivemanagementpositions.

22

Questions&AnswersThankyou