Fineos Corporation Holdings PLC

Thank you for standing by and welcome to the Finneos Corporation Holdings PLC first half 26 results briefing. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you'd like to ask a question, you'll be pressed the star key followed by the number one on your telephone keypad. I'll now like to hand the conference over to Mr. Michael Kelly, CEO. Please go ahead.

Thank you and welcome everybody to today's call. I'm joined here today by our CFO, Iain Lyna, and we're gonna go through our first half year results and give you an overview and some color behind the results. So I would ask you to turn to slide two, please, and we'll start off. So as you can see from slide two, we've had a very good performance in the half, subscription revenues of 41.9% 41.9 million euros of 15% on June 25 and 57.8% of total revenue now in line with our strategy to drive up our subscriptions as a percentage of overall revenue. Our total revenue was 72.5 million euros of 7.9% on June 25 of 7.2% to 72 million on a constant currency basis. Gross profit $54.6 million and gross profit margin $75.4 million. Gross profit is up 6.3% on the previous corresponding period of June 25. EBITDA $17.4 million and EBITDA margin expanding to 24%. so EBITDA is up 32.3% on June 25 and the EBITDA margin is up from 19.6% so again expanding our margins in line with strategy net profit after tax is 1.9 million up 254.6% on June 25 where the loss was actually 1.3 million and cash is up to $39 million, up 11.9% on June 25, and of course no debt. The positive free cash flow was $10.9 million, and really indicating that we're continuing that momentum of positive free cash flow and cash generation in this business. And the ARR was $87.8 million, and the net retained earnings 115%. and so both very strong numbers and again indicating very strong and sticky customers who are continually buying and expanding their footprint with Phineas. Our AOR is up 14.9% from 76.4 million and the NOR is up 15.3% since June 25. So overall we're very pleased with those results and those headlines. And I suppose what's causing the kind of growth is a number of things, but certainly new name sales in the half. We had two of those, Phineas Admin Suite for claims, the MAIB in Australia and one other in the States. So that kind of continues to drive that market leadership. But very, very pleasingly for us, we had two more sales of Admin Suite. One to One America. And in that one, we signed a 10-year contract. So One America worked very keen for a long-term contract for Admin Suite because they can see themselves using this for 10 years and well beyond. And of course, there was one other smaller client in the US who also bought Admin Suite. They didn't want to publicize their name due to being owned by a large Blue Cross Blue Shield in the States and not having the permissions. So we're really seeing the benefits of the admin suite now, and customers are going to see more and more opportunity to expand into the admin suite. And very pleasingly, again, One America licensed Phineas Admin Suite for quote-under-write rate, plus the Phineas Employer Connect, and both 10-year contracts. And I'm calling that out because both of these products are derivatives from acquisitions we made, One Life Health and Spree. So It's really pleasing that we've actually re-engineered and got those products in the full suite end-to-end. So we're looking forward to seeing One America really driving home now that full suite of products that we have out there. And it's proved that our R&D and our strategy is coming together very nicely. On the customer side, we've had multiple on-time go-lives. With ACC in New Zealand, one of our largest clients in the Southern Hemisphere, doing a two-year migration from an on-premise major scheme in the country to the Phineas admin suite for claims. And that just took two years, was on time, on budget, and they're thrilled with that program. And indeed, the publicity is on our website if you'd like to go and see it. Our funniest customer connect events have been in New York and Sydney in the last few months and we've one coming up in Toronto and we've another one in November in Sydney just to let you know and these are proving to be very useful because we're demonstrating product we're showing our clients where the product is going our roadmaps and more importantly I think we're bringing customers with us to talk about their experiences and their transformation and this is going down very very well we've got some really good case studies with Guardian and New York Life, but also other customers are joining in. So building positive momentum. And we're gaining a multiplier effect from embedded AI in our product. With our deep domain focus and our market leadership, baking the AI in at the core is just helping us to accelerate our growth and making our product far more attractive and sticky with our clients.

So if you turn to slide four,