Info-Tech

Good evening, everyone. Welcome to Info-Tech first half 2026 presentation. For this slide, we start off, I thought that before we go into the financial results, let me give a quick overview of Info-Tech. We have an 18-year track record building in cloud-based business software. Today, we serve more than 28,000 businesses across five countries. with approximately 1.1 million users on our platform each month. Over the years, we have evolved beyond HRMS into an integrated software as a services. We call it the SaaS Business Software Provider, providing offering HRMS, accounting and CRM solutions on a unified cloud platform. This allows us to increase customer adoption across multiple products and strengthening our recurring subscription revenue. A second growth engine is the Info-Tech Academy, which has exceeded 23,000 cumulative registrations, with more than 85% academy registrations related to AI program. This reflects the growing demand for workforce transformation and the practical AI adoption across businesses. Okay, let me see if you know. It's the same office.

Which room in the office?

We now have a team of 600 employees globally. We product development centered in our India development hub, supporting scalable innovations and regional expansion. In short, Info-Tech today is a profitable, integrated SaaS business software provider with growing multi-product ecosystem and rapidly expanding academy businesses that complements our software platform. Next, we have got three sections, so we will cover the overview. So let me start with a quick overview of our first half 2026 performance. We delivered another strong set of financial results underpinned by continued strength of our recurring SaaS businesses. and continued strong demand for AI-related programs through our Info-Tech Academy. Revenue increased 22% year-on-year to $27.3 million, reflecting broad-based growth across both our software and academy business. Importantly, our subscription order book increased 14% to $30.4 million, which provides good, confirmed revenue visibility into the future periods and reinforces the recurring nature of our SaaS business. Our underlying profitability remains healthy with adjusted EBITDA increasing 22% to 11.5 million and adjusted PAT increasing 20% to 8.7 million, broadly in line with the revenue growth. From a revenue mix perspective, subscription revenue continues to be the core of our business, contributing 78% of total revenue, while services revenue, mainly driven by Infotech Academy, continues to grow strongly. Geographically, all our core markets deliver double-digit growth, with Singapore remaining our largest market and Malaysia continuing to perform particularly well. Our balance sheet remains very strong. We ended the period with $76.6 million in cash and zero bank borrowings, while generating $15.3 million of net operating cash flow, demonstrating the positive nature of our SaaS model. Finally, We propose an interim dividend of 1.68 cents per share, representing 45% of reported profit after tax and 50% of adjusted profit after tax, reflecting both our strong earnings and healthy cash position. Overall, this slide highlights three key messages. Number one, strong revenue and recurring growth. Number two, improving profitability And finally, a very strong balance sheet with healthy cash generation. This slide summarizes how Info-Tech has evolved over the past 18 years. Today, we are an integrated SaaS business software provider serving approximately 28,000 organizations and 1.1 million users across Asia through a unified cloud-based platform. At the core of our business are four integrated pillars, HRMS, Accounting, CRM, and Infotech Academy. HRMS remains our largest business and provides the foundation of our recurring customer base. Accounting extends our relationship with customers into financial management, while CRM expands our platform into customer engagement and sales management. Infotech Infotech Academy is our fourth pillar and plays a strategic role in workforce transformation, particularly through AI-related programs that help businesses adopt AI and improve productivity. What differentiates us is that these are not stand-alone products. They are all connected through a single AI integrated SaaS platform, allowing customers to use multiple solutions within one ecosystem. The AI embedded across our platform enables customers to generate customized reports, analyze enterprise data, and improve decision-making through natural language prompts. As customers adopt more products, Platform utilization increases, customer engagement deepens, and customer lifetime value grows. This integrated model creates several attractive SaaS characteristics. Higher software utilization, stronger customer retention, increased cross-selling opportunities, and scalable recurring subscription revenue. Info-Tech Academy has become an increasingly important growth engine for the group. In the first half of this year, more than 85% of Academy revenue was generated from AI-related programs, reflecting strong demand for practical AI and digital skills across businesses. Our Academy offer a broad portfolio of WSQ accredited courses with AI and digital program being the fastest growing segment These courses focuses on practical workplace applications, including generative AI, productivity improvement, data analytics, and business transformation. Beyond AI, we also provide HR, accounting, and communication skill programs, which support broader workforce development needs. Importantly, These programs are supported by government funding up to 70% through SFEC, UTEP, and PSEA support, making them highly accessible to both SMEs and enterprise customers. The key point is that Academy complements our SaaS platform by helping customers adopt AI, improve productivity, and deepen engagement across the infotech ecosystem. Next, the section will go into the financials. For this slide, it summarizes our financial performance for the first half of 2026. Overall, we delivered growth-based improvement across revenue, profitability, and cash generation, demonstrating the strength of our recurring SaaS business model. Revenue increased 22% year-on-year to $27.3 million, with growth coming from both our core subscription business and our services business. Subscription revenue increased 12%, reflecting continued customer growth and recurring revenue expansion, while services revenue more than doubled, increasing 116%, driven primarily by Info-Tech Academy and AI-related programs. Gross profit increased 19% to $22.6 million and our gross margin remains strong at 82.8% and within a healthy and sustainable range. At the reported FS level, reported EBITDA increased 69% and reported net profit after tax increased 89%. These elevated reported numbers were due to one million Enterprise Singapore GEMS grant and the absence of prior year IPO related expenses. More importantly, Our adjusted EBITDA increased 22% and adjusted NPAT increased 20%, which better reflects the underlying performance of the business. These adjusted growth rates are broadly in line with the revenue growth, indicating that underlying earnings momentum remains strong. Finally, Basic EPS earnings per share increased to 3.75 cents, reflecting the strong improvement in profitability during the period. The key takeaway is that we achieved healthy revenue growth, sustainable high margins, and strong underlying earnings growth, supported by a resilient recurring SaaS business and a growing contribution from Infotech Technology Academy. This slide shows the consistency of our financial performance over the past few years. The first point is that the revenue growth has been sustained, increasing from $30.8 million in FY2022 to $36.5 million in FY2025 and continuing into the first half of this year with 22% year-on-year growth to $27.3 million. More importantly, this growth has remained high quality and profitable. Our gross margins have consistently remained in the 83% to 87% range, which demonstrates the strength of our SaaS business model. At the EBITDA level, we continue to benefit from operating leverage. Adjusted EBITDA increased 22% to 11.5 million, while EBITDA margin remains strong at 42%, reflecting the scalability of our platform and the disciplined cost management. Similarly, adjusted PAT increased 20% to 8.7 million, with PAT margins remaining at 32%. Showing that revenue growth continues to translate into healthy earnings growth. The key takeaway is that we are not pursuing growth at the expense of profitability. We are delivering consistent revenue growth, sustained high margins and expanding operating leverage, which are the characteristics of a scalable and profitable SaaS business. Next slide shows our growth was broad-based across geography and product line, which we believe is an important indicator of the strength of our business. On the geography side, all our markets delivered double-digit growth. Singapore grew 21%, Malaysia grew 26%, making it our fastest growing market, and our other regional markets grew 13%. This demonstrates that growth is driven across multiple markets, rather than relying on a single geography. On the product side, subscription revenue increased 12%, which remains the core recurring revenue base of the group. The standout performer was services revenue, which grew 116%, primarily driven by Info-Tech Academy and AI-related programs. Hardware revenue remains stable, increasing 3%. What is encouraging is that both software business and academy business contributed meaningfully to overall growth. The key takeaway is that each geography and every revenue stream grew year on year, with Malaysia and services leading the growth momentum, giving us confidence that our growth is diversified and sustainable. Next slide. This slide highlights the underlying operating momentum of our business. First, our HRMS user base continued to grow steadily, increasing from approximately 1 million to 1.1 million users, while maintaining customer retention above 90%. This reflects the resilience of our recurring SaaS business and the strength of our customer relationships. Second, our accounting business continued to scale with the number of accounting customers increasing 14% year-on-year to approximately 2,000 customers. This demonstrates the continued success of our cross-selling strategy and the expansion of our integrated SaaS platform. Third, our annual recurring revenue, or ARR, increased from $25.4 million to $26.3 million. ARR is an important SaaS metric that reflects the annualized value of our recurring subscription revenue and provides a good indicator of the strength and growth of our subscription base. Finally, Info-Tech has become an increasingly important complementary growth engine. Cumulative registrations exceeded 23,000, with more than 5,000 new registrations added during the first half of this year. Importantly, more than 85% of registrations were all for AI-related courses, reflecting strong demand for practical AI and workforce transformation programs. The key takeaway If the customer adoption continues to expand across our HRMS and accounting platform, recurring revenue remains healthy and Academy is creating additional growth opportunities that complements our core SaaS business. For the next slide, the balance sheet and cash flow highlights the strength of our balance sheet and the cash flow generation. As at 30th June, 2026, The group has 76.6 million in cash and cash equivalent with no bank borrowings, giving us a very strong net cash position and significant financial flexibility. Our working capital increased 11% to 42.5 million, reflecting a strengthening balance sheet. You will also notice that trade and other receivables declined significantly from 9.2 million to 2.4 million, mainly due to the collection of year-end billings during the first half of the year. On the cash flow side, the most important point is the net cash generated from operating activities increased from 6.4 million to 15.3 million, more than doubling year-on-year. This was driven by higher operating profit and favorable working capital movements. Even after paying $5 million in dividends, we still generate a net cash increase of $9.4 million, demonstrating the strong cash-generative nature of our SaaS business. The key takeaway is that Info-Tech remains debt-free, highly cash-generative, and financially well-positioned to fund future product development Regional expansion and shareholder returns from internal cash flow. So for our next session, we look at the outlook. Looking ahead, our strategy is focused on three areas. Number one, platform expansion. Number two, growth drivers. And number three, margin expansion. First, platform expansion. Our integrated product suite allows us to increase the number of products each customer uses, strengthening cross-selling opportunities and customer lifetime value. Embedded AI capabilities are also enhancing customer productivity and increasing the value of our software platform. Second, growth drivers. So second, for the growth drivers, we continue to see strong demand for AI-related training programs through Info-Tech Academy, which has become an increasingly important growth engine for the group. Demand is being supported by growing enterprise AI adoption, as businesses increasingly require practical AI skills and workforce transformation capabilities. In Singapore, our government funding initiatives including Enhanced Skills Future Enterprise Credit and AI-related support measures are helping to accelerate training demand. Meanwhile, we continue to invest in marketing and regional expansion across Singapore, Malaysia, Hong Kong and India. Third, margin expansion. Our SaaS model provides operating leverage as revenue skills. Our India Development Hub gives us structural cost advantage, while continued technology innovation improves development efficiency and supports long-term scalable profit growth. Overall, these initiatives provide multiple identifiable growth drivers and reinforce our confidence in delivering sustainable long-term growth. That concludes my presentation and next I open the floor to any Q&A.