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Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020....

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Investor Presentation Q1 2021 Propelling to New Heights
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Page 1: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

Investor Presentation Q1 2021Propelling to New Heights

Page 2: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

Safe Harbour

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.

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Page 3: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

Our Purpose: To empower good companies to be great.

Our Position: To clarify uncertainty in the supply chain.

Our Mission: To equip supply chain greatness.

Our Vision: That good companies have the space to thrive.

Our story is all about our customers

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Page 4: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

Visionary provider of supply chain technologyfor the world’s most complex supply networks

9 Times“Visionary” in

Gartner’s WMS Magic Quadrant

Top 3in Gartner’s

2019 Healthcare Supply Chain

Top 25 “Masters”

37 Yearsof complex

supply network experience

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Page 5: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

E-Commerce

Pointof Use

End-to-end Integrated Supply Chain Management Solutions

Financial Management 3RD Party Billing

ANALYTICS

Healthcare – Distribution – Retail – 3PL

CUSTOMERSPARTNERSSUPPLIERS ENTERPRISE SYSTEMS

TransportationWarehouseProcurement& Inventory

DemandPlanning

Collaboration

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Page 6: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

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

Solutions Built on Experience

6

Complex Supply Networks Retail

Third Party Logistics Healthcare

Page 7: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

Global Reach

1,000+ Customers

$109M Revenue*

60% USA 21% Canada 19% ROW

(primarily Europe)

$49MAnnual Recurring

Revenue**

534 Employees

7 * Last twelve months, July 31, 2020** At July 31, 2020

Page 8: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

Extending our Reach in $10B US Health Systems Market – The ARR Opportunity

87%13%

Market Opportunity Current Share

ARR Opportunity:

$600m

83%

17%

Market Opportunity

ARR Opportunitywith Current Base:

$76m+300Target Health Systems

Health SystemsMarket Share

Base AccountPenetration

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Page 9: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

B2B and B2C Marketplace Convergence

Businesses/trading partners expect the same

Extraordinary pressure on supply chain to deliver

Result: Supply Chain Management is at a crossroads and in need of answersOpportunity: Tecsys is well positioned to solve these challenges

Seismic shift happening in retail – amplified by COVID19

Consumers demand products faster

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Page 10: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

Evolution of Annual Recurring Revenue (ARR*)

16%Q1 YTD 2021 ARR growth, annualized

2017 2018 2020

$26.5 $26.9

$49.3

*Refer to July 31, 2020 Management Discussion and Analysis “Key Performance Indicators”

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2019

$38.6

Amounts in July 31, 2020 constant CAD millions

$47.4

Q1 YTD 2021

Page 11: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

Annual Recurring Revenue Net Retention Rate

111%LTM Q1 2021 Recurring Revenue Net Retention Rate

2018 2019 LTM Q1 2021

98%

111%

Net Retention = (Existing customer expansion less churn) divided by Beginning period ARR

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2020

106%106%

Page 12: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

SaaS Bookings Growing Rapidly, and increasing as a Proportion of Total(License Equivalency Basis)

Amounts in CAD millions

2017 2019 2020

$5.9$6.7

$22.2

SaaS

License

12

$8.9

2018

147%YoY growth

23%License bookings

77%SaaS bookings

Page 13: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

SaaS and Professional Services Bookings Growth

13

In $CAD Millions

$26.0$30.0

$37.4

$50.7

0

10

20

30

40

50

60

2017 2018 2019 2020

*Please refer to FY 2020 Annual Report MD&A for definition of Bookings and Backlog under Key Performance Indicators

FY20 PS Bookings* Growth: 36%

$0 $0.1

$1.5

$8.8

0

2

4

6

8

10

2017 2018 2019 2020

FY20 SaaS Bookings* Growth: 486%

Page 14: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

Strong Bookings Resulting in Healthy Backlog Growth

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In $CAD Millions

$16.6 $15.9

$24.5

$35.0

0

5

10

15

20

25

30

35

40

2017 2018 2019 2020

PS Backlog

*Please refer to FY 2020 Annual Report MD&A for definition of Bookings and Backlog under Key Performance Indicators

FY20 PS Backlog* Growth: 43%

$0 $0.4

$15.1

$52.0

0

10

20

30

40

50

60

2017 2018 2019 2020

SaaS Backlog

FY20 SaaS Backlog* Growth: 244%

Page 15: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

SaaS Bookings Fuel Recurring Revenue Growth

121%YoY SaaS Revenue Growth*

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Amounts in CAD millions

31%Q1 FY21 SaaS Revenue as a percentage of total Cloud, Maintenance and Subscription Revenue (up from 18% in Q1 FY20)

$0,0 $0,0

$0.9$1.4

$1.7$2.1

$2.5 $2.7

$3.8

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

10,0

11,0

12,0

13,0

Q1 FY19A Q2 FY19A Q3 FY19A Q4 FY19A Q1 FY20A Q2 FY20A Q3 FY20A Q4 FY20A Q1 FY21A

Quarterly SaaS Revenue Growth

Total SaaS Revenue Total Cloud, Maintenance and Susbscription Revenue

Page 16: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

Strengthened portfolio with a strong retail capability to expand addressable market (OrderDynamics, Order Management Platform)

Expanded footprint in Europe (PCSYS A/S, now Tecsys A/S) Acquisitions integrated and contributing positively to growth

Key Acquisitions -Update

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Page 17: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

Corporate Information

Page 18: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

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Annual Recurring Revenue**

$49.3Mup 29% YoY

SaaS ARR Bookings*

$10.7Mup 435% YoY

Cloud, Maintenance and Subscription Revenue*

$43.5Mup 28% YoY

* Last twelve months, July 31, 2020** At July 31, 2020

Page 19: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

Financial Highlights, in CAD 000 except EPS

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Q1, 2021 Q1, 2020 Δ YoY Q1, 2021 TTM Q1, 2020 TTM Δ YoY$ % $ % $ % $ % $ % $ %

Total Revenue $28,091 100.0% $24,250 100.0% $3,841 15.8% $108,696 100.0% $84,417 100.0% $24,279 28.8%Cloud, Maintenance and Subscription Revenue $12,253 43.6% $9,782 40.3% $2,471 25.3% $43,529 40.0% $34,073 40.4% $9,456 27.8%Cost of sales $14,601 52.0% $12,717 52.4% $1,884 14.8% $56,421 51.9% $43,027 51.0% $13,394 31.1%Gross margin $13,490 48.0% $11,533 47.6% $1,957 17.0% $52,275 48.1% $41,390 49.0% $10,885 26.3%

Sales & Marketing $4,997 17.8% $4,508 18.6% $489 10.8% $20,623 19.0% $18,278 21.7% $2,345 12.8%General and Administration $2,426 8.6% $2,384 9.8% $42 1.8% $9,863 9.1% $10,158 12.0% ($295) -2.9%Research and Development $4,099 14.6% $3,718 15.3% $381 10.2% $15,616 14.4% $13,731 16.3% $1,885 13.7%Restructuring costs $0 0.0% $420 1.7% ($420) 100.0% $0 0.0% $420 0.5% ($420) 100.0%Operating expenses $11,522 41.0% $11,030 45.5% $492 4.5% $46,102 42.4% $42,587 50.4% $3,515 8.3%

Profit (loss) from operations $1,968 7.0% $503 2.1% $1,465 291.3% $6,173 5.7% ($1,197) -1.4% $7,370 615.7%

Net income (loss) $1,235 4.4% ($267) -1.1% $1,502 562.5% $3,848 3.5% ($1,021) -1.2% $4,869 476.9%

Adjusted EBITDA $3,509 12.5% $1,995 8.2% $1,514 75.9% $11,785 10.8% $4,235 5.0% $7,550 178.3%

EPS Basic $0.09 ($0.02) $0.11 550.0% $0.29 ($0.08) $0.37 462.5%EPS Diluted $0.08 ($0.02) $0.10 500.0% $0.28 ($0.08) $0.36 450.0%

License Bookings $461 $393 $68 17.3% $4,786 $5,364 ($578) -10.8%

SaaS ARR Bookings $2,370 $380 $1,990 523.7% $10,748 $2,008 $8,740 435.3%

Annual Recurring Revenue $49,293 $38,348 $10,945 28.5%SaaS Backlog $57,030 $15,182 $41,848 275.6%Professional Services Backlog $38,060 $22,229 $15,831 71.2%

Refer to July 31, 2020 Management Discussion and Analysis “Key Performance Indicators”

Refer to July 31, 2020 Management Discussion and Analysis “Non-IFRS Performance Measure”

Page 20: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

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Market Cap14.4M S/O

$400M

BrokerageCoverage

Corporate Overview

Symbol TCS Dividend per Year

24¢Insider Ownership

26%

Cormark Securities Echelon Partners Stifel/GMP LB Securities National Bank

Page 21: Investor Presentation Q1 2021 - tecsys.com...Q1 YTD 2021 ARR growth, annualized. 2017. 2018. 2020. $26.5. $26.9. $49.3 * Refer to July 31, 2020 Management Discussion and Analysis “Key

Management Team

Peter BreretonPresident and CEO

Mark J. BentlerChief Financial Officer

Bill KingChief Revenue Officer

Peter initially led the company’s software development, product management, sales and marketing. In 1998, he was appointed CEO and was largely responsible for the company’s Initial Public Offering. He repositioned Tecsys in the supply chain execution industry, and leveraged the company’s strengths in technology and supply chain expertise to achieve significant growth and become a leader in its markets.

Mark joined Tecsys in 2018 as chief financial officer. Mark has more than 20 years of international experience and was previously Chief Financial Officer for Aptos Retail. In addition to playing a significant role in the formation and growth of the company, he led the successful transition of the business’ retail management enterprise solutions to a cloud-centric platform. Prior to his work at Aptos Retail, he served as Vice President, Finance for Epicor Retail.

Bill has led Tecsys’ go-to-market strategy and expansion since January 2019. Prior to joining Tecsys, he held executive sales leadership positions at Oracle in the North American Sales organization, most recently as vice president of key accounts and previously as group vice president of North America Storage Sales. Prior to Oracle, Bill was with Fujitsu for over a decade and held a variety of executive management positions.

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Questions & Answers Thank you


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