Celebrus Technologies plc

Good afternoon and welcome to the D4T4 Solutions PLC final results investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and can be submitted at any time by the Q&A tab situated in the right-hand corner of your screen. Just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I'd like to submit the following poll. And I'd now like to hand it over to Bill Bruno, CEO. Good afternoon, sir.

Excellent, thank you and thank you everybody for taking the time today. Myself and Ash are pleased here to be with you and we'll walk you through a high level presentation of the results. As mentioned, please utilize the Q&A tab. We'll try to get to as many of the questions as we possibly can today, so feel free to utilize that. And so I think we'll go ahead and start off with the operational highlights. Ash, if you don't mind jumping through the disclaimers and everything. From an operational perspective, it's been another busy year for the business as we sort of transform into a sales organization and focus on standing up our direct sales capabilities. You'll also notice, and Ash will call attention to this when he goes through some of the financial results, but if you participated in this last year, we talked about how we were onboarding several new systems across the business from finance, HR, to sales and marketing, and recruitment, et cetera. And now that those systems are in place and the data is in a much more useful format, we're also starting to incorporate additional views So there's some pipeline metrics in the RNS, and as you'll find mentioned in the annual report as well, that start to bring some of this to light. So namely, that our pipeline value grew in the previous year by 27%, and the amount for the proposals grew fourfold throughout the year. Now, I know there will be a lot of questions, because we did get asked, how would you manage standing up a direct sales business? That can be a quite expensive undertaking. And one of the things that Ash will call out when he goes through the numbers is business as well being being flat and that's been through uh us taking a careful look at the business and ensuring that where we're investing is in the right places and also making restructuring and efficiency changes to the business across the board as well now from a direct sales perspective because i'm sure these questions will come top of mind in the in the pipeline as it currently sits today about 65 of our pipeline is direct with the remainder being through indirect channels and some of the partners that we've built over the years We continue to simplify our messaging as a platform, and you'll see this come to life quite a bit in this year's annual report. But we now refer to it as the Seller's Platform, and I'll come on to that when we get into some of the strategy, and I'll show you what that means, and I'll talk through a bit more about how we position and sell from that perspective. But that simplification and alignment of the platform is a necessary next step when building a direct sales business, because clients experience expect you to deliver on things that perhaps your platform wasn't asked to do before when you're solely standing behind an indirect channel for how you go to market. We do continue to not only acquire new customers, and we had several great wins in the previous financial year, but we also had some strong upsell. And Ash will walk you through a new breakdown of our annual recurring revenue as our contracts are focused on a term basis. Multi-year contract, usually to the tune of three years on a non-cancelable basis. And that's how we view annual recurring revenue. You also might remember that we acquired Prickly Cactus a few years back. And that was done to really start to stand up our customer success team and to start to drive growth from our existing accounts. Pleased to report that in this previous financial year, they met the earn out criteria early and they've now been fully integrated as our international customer success team. We've also stood up in this year customer success team for the Americas as well. And the driver of that is not only to have a target and incentivization to drive a target goal of average growth in each market for all of our existing customers, but it's also to free up sales so they can spend more time selling and less time managing existing accounts. Innovation also continued to be a key part of what we do as a business. You might recall from previous conversations that we generally do two major releases a year. We stay true to that. We have a release that is already in beta that will be going publicly live in terms of marketing and messaging over the course of the next few weeks. And another release that always happens in kind of the November, December timeframe. Some key innovation from this previous year included a new patented capability in Celebris that we're calling CX Vaults, which is a true cookie-less solution to deliver personalized experiences in a compliant manner for individuals who opt out of tracking. In addition, we further enhanced what we call our digital identity verification capabilities. And I'll just make note that of that, the majority of our pipeline is driven by that feature because it is a core differentiator of our platform. And it is the foundational element of every solution that we bring to market with our various partners as well. And just one final note on the pipeline outside of the growth. Historically, D4T4 has focused primarily on financial services. We've expanded our focus considerably with the growth of our direct sales channel and our business development routes to expand significantly into healthcare in the U.S., which is a massive opportunity for us as a business going forward and a significant contributor to today's pipeline, in addition to retail, travel, and insurance as well. So with that, I'll throw things over to Ash to walk through some of the financial highlights for you as well.

Thanks, Will. So on the financial highlights, I'll run through these very briefly and then go into a bit more detail further on. But in terms of highlights, the ARR annual recurring revenue is up 19% from 14 million to 16.7. And I'll go on and talk later about the components within that. Software revenues is a new metric that we're reporting on. I'll explain why in a few moments, but that's gone up by 9.6% to 19.1 million. And so this is essentially excluding third party hardware sales. I'll explain why that's important. Following on from software revenues as a headline, the GP gross profit percentage of software revenues has also gone up from 67.8 to 68.8 and again that's an important metric and again I'll explain why in a few moments. The adjusted profit before tax is up from 3.3 million up to 3.8 million. And the four-year dividend, following on from that, we're increasing by 3.8% this year, so paying out 3.03 pence per share. And then the final highlight is the cash balance. It's gone up from 11.4 million last year to 17.2 million, and we remain with a strong balance sheet and no debt.