Good morning. My name is Jane Morgan, and thank you for joining the Bigtincan Holdings Limited Q2 FY 2022 appendix 4C and quarterly report briefing. Today, I'm joined by Bigtincan Co-founder and CEO David Keane, Global Financial Controller Cyril Desouza, and Chief Marketing Officer Rusty Bishop, who will discuss the Q2 FY 2022 quarterly results release and provide some business progress commentary with a Q&A session to follow. To ask a question throughout the presentation, please use the Q&A function at the bottom of the screen. David, I'll hand over to you. Thank you so much, Jane. Yes, good morning and welcome to everybody for Bigtincan's Q2 FY 2022 appendix 4C and quarterly result report briefing. My name is David Keane, the CEO and Co-Founder of Bigtincan. As you heard, with us today is Cyril Desouza and Rusty Bishop. Now, for today's call, we'll be using the appendix 4C report that was released to the ASX this morning, together with a brief supporting slide presentation, also released on the ASX. Now, before we begin, I wanna start by sending my thank you to the entire global Bigtincan team, who have really, again, this quarter, shown their ability to execute, to delight our customers, and deliver a strong result that we'll talk about today in delivering, I think some really interesting things to talk about in today's presentation. Let's get on to the results. We're gonna share some slides with you now. All right, let's go. Highlights for this quarter, first of all, from a cash flow perspective, given this is the 4C, so of course, total cash receipts increased 150% to AUD 26.3 million for this quarter. Cash operating payments of AUD 25.2 million. Now, that payments line includes the operating payments for the first full quarter of the Brainshark acquisition that was completed in last year in September, and associated Brainshark integration investments. That resulted in a AUD 1.1 million cash operating positive position for Q2 FY 2022. Again, as I was saying before, those payments include approximately about AUD 600,000 of payments for one-off Brainshark integration costs. If you added those back in the operating cash positive position, it'd be something about AUD 1.7 million-AUD 1.8 million. At the end of December 2021, Bigtincan had approximately AUD 50 million in cash, in cash equivalents with a strong accounts receivable balance and is well-funded to continue its progression into the second half of FY 2022. Let's have a look at some of the non-cash specific highlights, though, on the next slide. Thank you. Trading highlights and outlook. One of the things that we talk about in these four Cs, these periods, is our ARR growth. At the end of December, Bigtincan had AUD 112 million in annualized recurring revenue. That's a 133% increase over December 2020. Now, what drove that were a bunch of new customer wins and expansion, and we'll talk a bit about that more in a minute. We also released new versions of products across our three core hubs, our Content Hub, our Learning Hub, and our Engagement Hub. These releases offered new features and capabilities that continue Bigtincan's market leadership position. Bigtincan is on track to achieve or exceed AUD 119 million in ARR and AUD 109 million in revenue for FY 2022. Let's have a bit of a more look into some of those growth vectors on the next slide. Thank you. What were the growth sources? Well, of course, new customer wins and expansion in key existing customers. I'll talk about some of those in a minute. We also saw growing cross-sell and upsell across our different hubs as we see customers seeing the benefits of taking advantage of multiple hubs as they grow their investment with Bigtincan. We're also seeing our sectoral awareness increase. Those new product offerings that we spoke about adding to our team's ability to build complete solutions and grow our revenue with each of our customers. Let's have a look at that in a bit more detail on some of the new customer wins and expansion for this quarter in the next slide. Customer wins and expansion with organizations like Konecranes based out of Finland. It's a nice global deal coming out of there. For folks that have spent time in the United States, Clorox, it's a fast-moving consumer goods company focused, of course, on cleaning products among a bunch of others. It's a household name here in the U.S. Other customers including Singer Equipment, Doma, Yokohama Tires. Good expansion in organizations like Genentech, life sciences organization, Delta Air Lines in transportation, Brookdale, GUESS clothing and retail, and Thermo Fisher in life sciences. As I mentioned, platform cross-sell continues to be a focus here at Bigtincan as we empower our customers with the ability to be able to take advantage of the technology that we have in our different hubs. We had growing strength with Q2 cross-sell deals including RevRV, Convatec, and in Australia, Lion. Those really showing the benefits of the Bigtincan multi-hub product strategy, that we'll talk a bit more about in a minute. Let's go to the next slide. Thank you. We'll have a bit of a look at the Brainshark update. We're really pleased to be able to present to investors the strong and significant progress the company has made in work relating to the integration of people and system from the Brainshark acquisition. This was a busy quarter for our team, and they executed really well in bringing together the people side, unifying the product offerings, unifying system operations in areas like finance and human resources, and settling our brand position, which we'll talk more about today. Providing an integration across those multiple work platforms, so we can connect this into the core of Bigtincan. Team executed really well. I'm really pleased with the progression on that significant integration task following that acquisition in September of 2021. Now, as we think about the future, though, on the next slide, I wanna talk a bit about why we think this is such an important market to be in. You know, we believe that sales enablement technology is having an impact really on every buyer-seller interaction. To talk to us a little bit more about why this is happening and I think some of the importance of Bigtincan's strategy, I'd like to hand over to Rusty Bishop, Bigtincan's Chief Marketing Officer. Take you through a bit of a market update. Rusty, over to you. Thanks, David. For those who didn't catch it, my name is Rusty Bishop. I'm the Chief Marketing Officer here at Bigtincan. Next slide, please. Bigtincan is on a mission to help the world's best companies create the buying experience of the future. We know these large brands are ambitious. They know the economy is changing, and they wanna be successful in these challenging times. However, with current solutions, these aspirations are unattainable, hampered by limited insights, training quality, misalignment, siloed sales assets, compliance, and slow onboarding times. As a result, their sellers fail to take action and grasp opportunities for growth. Bigtincan empower sellers to focus on their buyers' experiences, offering solutions that are smart, flexible, and easily adapted to unique business processes, giving companies a better way to engage their customers, drive value, and guide them to the best decisions. Next slide, David. The Bigtincan platform consists of three hubs that come together to form a complete sales enablement solution. Our Learning Hub is a system of action to receive onboarding, training, and coaching that adapts to individuals' learning preferences with microlearning and chat-based certifications. Our Content Hub is a system of actions to create, personalize, and interact with digital assets for sellers to share with their customers that we've recently expanded to include augmented reality and virtual reality in anticipation of Facebook's metaverse. Our Engagement Hub is a system of action for sellers to interact with buyers remotely or in person, and most importantly, to measure their responses in real-time with conversational intelligence built in. Underlying the hubs is a unified data model that continuously adapts based on our clients' processes, compliance rules, and datasets with real-time analytics to help predict and suggest the best actions for sellers to take next. This platform is extremely flexible. Clients can pick one, two, or three hubs, giving us the ability to expand our revenue base with current customers, as well as close deals with large enterprises that wanna consolidate from a single vendor, such as the Asurion deal we announced recently on the ASX in September of 2021. Next slide. In support of this, I pulled together three recent analyst data points to share with you today. First, here in the United States, LinkedIn recently published that as many as 62% of Americans will be looking to change jobs in 2022. The impact of that will be that companies will need tools like our Learning Hub to rapidly onboard their new hires and scale training and coaching in this remote-first world. Second, the global analyst firm Forrester recently shared data that at least 75% of B2B sales organizations now have a dedicated sales enablement function, suggesting our core sales content hub technology will continue to be in high demand. Finally, something that many of you, I'm sure, will agree with. McKinsey has shown that B2B buyers now prefer remote and digital interactions to meeting in person. This is a perfect fit for our Engagement Hub technology that can give sellers a chance to understand customer behaviors and actions even in remote selling situations. Next slide, Div. In closing, I'll leave you with a quote from Jim Lundy of Aragon Research from earlier this month. She said, "Bigtincan is positioned well as a leader in sales enablement. They continue to add capabilities and innovative features to help their customers anticipate buyers' needs." Thank you for your time today. I look forward to speaking with you all again at our Investor Tech Day in late February. With that, I'll pass it over to Cyril Desouza, our Head of Finance. Thanks, Rusty. Bigtincan ended the quarter of Q2 in a very strong position. As you can see, we ended at AUD 1.1 million net cash from operating activities, which was compared to a loss of AUD 4.9 million in Q1 FY 2022, and a loss of AUD 1.1 million in Q1 FY 2021. What you can see here is the business has actually improved 198% year-on-year, which demonstrates the strong cash management and operational efficiency throughout the business. Another key point is this was the first net cash quarter that we've had in three years, and it was perfect timing with the business ending the period of AUD 49.9 million in cash and cash equivalents. Looking at the cash receipts on the next slide, Bigtincan ended at AUD 26.3 million. Now, our cash receipts come from three main hubs. The first is the content, second is engagement, and the third is the learning. Within the learning was the most recent acquisition being the Brainshark, which contributed the readiness technology, which was acquired on the eighth of September 2021. In terms of the mix of the cash collections, just over 50% of it was related to the Bigtincan Learning Hub, and the other 50% related to the content and engagement hubs. There was also a few cross-sell opportunities within Q2, and we see momentum of that heading into the second half of FY 2022. Now, moving to the right-hand side, you can see the operating cash payments of AUD 25.2 million. David called it out. Within that was AUD 600,000 that related to the integration of the readiness platform into the Bigtincan Learning and the Bigtincan Core platform. Most of the increase of AUD 5.9 million from the last quarter was related to the full run rate of Brainshark coming into the Bigtincan operations. I wanna also call out down below. You can see AUD 4.9 million was invested in data product related products, as well as our learning, coaching, and content future development projects, which we see as our competitive advantage in terms of future revenue opportunities in a market that we see as long. In a long-term potential market. Other payments within the quarter was the last payment of Vidinoti of AUD 557,000, as well as there was AUD 1.3 million worth of delayed and the final acquisition costs related to the Brainshark acquisition, which included legal, tax, and accounting fees. Moving on to the next slide. As you can see here, our cash has had a tremendous trend going forward, and we ended the period, as I said before, at AUD 26.3 million. Now, if you back away the multi-year deals of AUD 1.6 million, which are payments related to more than twelve months, you end at AUD 24.7 million. What's significant about that number is if you annualize that number, and then you take that as a percentage of ARR, which was AUD 112 million, it gives us a conversion rate of just under 90%, and that's in line with company forecast. The other significant thing is we've ended the year with very solid accounts receivable balance, which will be disclosed at the half year accounts at the end of February. That's all for me. Back to you, David. Thank you, Cyril. Again, I think really Bigtincan's in a good place as we start the second half of FY 2022. Again, as we confirmed in the 4C today, Bigtincan is on track to achieve our guidance of AUD 119 million of ARR and AUD 109 million of revenue. You can see that the opportunity for Bigtincan extends more than through FY 2022 into future periods. We're convinced that today's result demonstrates to investors that Bigtincan is able to grow its business, but do so efficiently and effectively. It also shows the opportunity for us as we grow our enterprise-focused software as a service business to be able to continue that trend of building efficiency and effectiveness into our growth as we go forward. Now, I wanna talk a bit about going forward and a couple of things that happened post the end of this quarter that I think are of interest to investors. One of the things that we announced to the market earlier in January was the release of our Bigtincan for Salesforce tool. This is a tool that was created in conjunction with salesforce.com and is available on the salesforce.com AppExchange. It's a good example of the work the data products group does. That's the group that Cyril talked about. We're investing in the long-term capabilities to use technology like artificial intelligence and other tools that Rusty spoke about as well, to be able to build technology that really makes a difference for our customers. Bigtincan for Salesforce shows how we can start to create intelligent mapping between what our customers need and what their company has. You can see on the left-hand side in the text here, we talk about how Bigtincan for Salesforce allows our customers to describe their business almost in a logical way. Then the technology in the ontology engine built into Bigtincan for Salesforce will match the needs that those customers have against content and information that that company has. It will create that connection dynamically. As the system learns, it scores content and training items based on the presence or absence of terms within fields inside the CRM platform. This is really gonna add more and more benefit as customers continue to use these technologies. I see Bigtincan for Salesforce as an indication of the market leadership position that Bigtincan is taking through the investments in the data products group and other parts of our business all around the world. There's one other thing I thought I might bring up for you as well. The next slide, thank you. This is something that we announced in a press release last week. This is Bigtincan was named a leader and gold medalist in the 2022 SoftwareReviews Sales Enablement Data Quadrant Guide report. It's a bit of a mouthful, but this is an important report published by SoftwareReviews, which is an independent organization that conducts reviews of customers of enterprise software. Now, Bigtincan was ranked number one among our competitors for our vendor capabilities and product features. We took first place in 18 different categories. Now, this is the most ever category wins awarded to a single provider in SoftwareReviews' history. The press release is available for you to read on bigtincan.com. The one other point that came out of that report, which I found quite pleasing for us, was when asked about the propensity to renew the use of that SaaS software. Bigtincan was at 100% propensity to renew when our customers were asked about that for the future. I think that's a pleasing result and really demonstrates the work that this amazing team here does at Bigtincan all around the world to build the technology, to take care of our customers, and build what I think is gonna be a strong future for our company. Well, look, that's it for today's Appendix 4C review. Would love to take any questions. Maybe if we can stop the screen share, we can go through some questions. Okay. We've got a question here about the AUD 4.9 million CapEx investment that Cyril spoke about. Cyril, do you wanna comment on the trend of that? I'm happy to comment on the technology side, but you can comment on the trends for us. Yeah. The trend of the AUD 4.9 million will be pretty much consistent, I'd say, over the next half. It's not gonna increase dramatically. Now, we do it prudently where we take it as a percentage of total product development, which historically has always been within the range of 20%-30%. We'll manage that going forward, based on the projects or the technology which I'm gonna pass over to David now to discuss. Yeah. Look, we see data products and other technology investments really being the good investments that generate long-term value for shareholders in the company as we continue to grow. It's showing in today's results how that focus on building technology drives the efficiency and effectiveness of our engines here at Bigtincan. You know, our growth engine has been successfully continuing to build on the momentum created by that technology leadership. We think those are important investments. There's a question here from Greg Lee. If ARR and cash receipts have improved so well, how come this hasn't translated into the share price, which has fallen? Now, of course, there are sectoral challenges that we're seeing, maybe pass through the market at the moment. Look, from a Bigtincan point of view, the company's performing as it should. I think today's result would give investors confidence that Bigtincan knows how to grow responsibly. Showing that we're operating cash positive, I think will give investors increasing confidence in the ability for this company to execute and build long-term value. Okay. There's a question from Paul here asking: When are you hoping to turn a profit? Well, of course, we'll talk more about our EBITDA position at the half and of course, the full year results. Look, I think the important thing for investors to understand is we do believe it has been important to invest ahead of the revenue to show that we could create this technology and build the underlying value with the company that makes some of the world's leading brands choose to work with us. We believe that, you know, the long-term value, the LTV we talk about a lot, is demonstrating that there is hundreds and hundreds of millions of dollars of long-term value for us to gain from those investments made in technology leadership. By the end of the day, look, it's our job to do that efficiently and effectively and adjust the company to market conditions. Certainly, we believe that, you know, in this result and other results you see really demonstrate the company's ability to be able to grow and grow effectively. We'll talk more about that at the half year. All right. If you have any more questions, please feel free to use the question box. All right. Well, again, just the 4C team. We'll have a lot more to talk about at the half year. Jane, maybe back to you to sign us off. Wonderful. Well, thank you all for joining the Bigtincan Holdings Limited Q2 Appendix 4C and quarterly report briefing. If we have missed any questions, please feel free to reach out via the contact details on the bottom of our ASX releases. A copy of today's presentation will be available on the Bigtincan website in the coming days. Thank you, and look forward to hosting you again soon.
Loading workspace