Thank you for standing by, and welcome to the Class Limited FY 2021 Result Briefing Conference Call. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Andrew Russell, CEO and Managing Director, p lease go ahead. Good morning, and thank you for joining us for the presentation of Class Limited full-year results for 2021. My name is Andrew Russell, and I am the CEO of Class. I'm joined today by Group Financial Controller, Damien Smith, and our Investor Relations Officer, Zoe Wise. Today, I'll present on the following agenda: company overview and result headlines, FY 2021 financial highlights, strategy and outlook, results takeaways, and then follow up with some questions and answers. Today's presentation will outline our FY 2021 performance and our progress in executing our strategy. The key messages to our shareholders from today's presentation are simply these: We continue to execute well to our Reimagination Strategy with both accelerated financial and operational results. We are continuing our successful track record of buying and integrating acquisitions well. We are realizing strong organic growth with these acquisitions as we scale the Class NowInfinity platform. Our technology and product investment has been fast-tracked and is delivering improved operating efficiency. The platform rejuvenation program is on track, the investment as a percentage of revenue has peaked and will trend downwards as we scale. Class has resilient and predictable earnings for the year ahead as the country continues to face uncertain economic headwinds, currently as a result of COVID-19. Class is well-positioned for ongoing sustainable revenue and TAM growth in FY 2022 and beyond. I'd like to take the opportunity to outline what Class does to those that are new to our business. Class is both a market leader and a multi-award-winning SaaS technology business. Our customers include accountants, administrators, investment advisors, financial planners, and lawyers. Our value proposition is that our software simplifies, automates, and connects. Class software solutions assist our customers to automate key processes, reduce operating costs to their back office, improve data accuracy, and reduce compliance risk. Class revenue is derived from our suite of products offered via our monthly software fee and pay-as-you-go fees. Our revenue comprises both subscription and recurring pay-as-you-go transactional revenue. Class is differentiated from other products, given that there's built barriers to entry in this space due to the nature of the complex rules processing the software automates. Class software products are focused on account tech, including our super, portfolio, and trust products. Doc tech, our NowInfinity product platform. Wealth tech, our portfolio administration reporting product. Today, our software platform is Australian-focused. However, we believe the Class technology product platforms present opportunities for us to extend into new adjacency and offshore markets for future growth. Our multi-product strategy is to ensure we become embedded in our customers back offices so that we can strategically assist them through our technology across their service value chain to establish and create wealth vehicles, to manage those wealth vehicles such as companies, SMSFs, and trusts, and to administer those wealth structures at scale, SMSF, individual investment portfolios, and trusts. One of the key differentiators of the Class software is the quality and number of feeds. The aggregation and synthesis of data alongside the complex rules-based software is, in essence, the secret sauce of the Class technology stack. Indeed, the reason why Class is a leader in the markets in which we operate. Turning to our financial results. The business boldly set out our financial targets for FY 2021, and the business has delivered to those targets. Our highlights are: record operating revenue and other income of AUD 54.9 million, up 25% and ahead of guidance. Roll forward revenue of AUD 59.8 million, up 21.5%. Underlying earnings before interest tax depreciation and amortization of AUD 21.9 million, up 15%. We maintained an underlying EBITDA margin of 40%, in line with our guidance. Class strong free cash flow of AUD 10.6 million. The balance sheet is very healthy, and free cash flow from operations is increasing as the business grows and achieves economies of scale. We have invested AUD 16.9 million over the past year to progress our next generational technology and product development capability vision. The customer base has grown by 123%, and the board has declared a final fully franked dividend of AUD 0.025 for the second half FY 2021. In summary, the FY 2021 financial results are solid, and as importantly, we are transforming and scaling Class in line with our three-year plan. Further details of our financial performance, including operation results, product investment, cash flow, balance sheet, and key operating metrics, can be reviewed in the appendix of the full- year results presentation deck. The transformation strategy has been to grow new revenues and TAM, scale the business, and at the same time, improve operating capability. We've been committed to transforming the business at speed, and we are focused on four areas. Firstly, maintaining SMSF product leadership and launching Class Trust. Secondly, accelerating growth through strategically aligned acquisitions. Third, growing the number of wealth accounting customer relationships. And four, rejuvenating the technology stack for next generation world-class capabilities. In FY 2021, we have shown our ongoing commitment to invest in Class Super to ensure it remains a multi-award-winning and market-leading SMSF administration software. A key strategic requirement for the three-year Reimagination Strategy was to ensure Class could grow the business outside of Super. It is pleasing to note that over the past two years, the Super business revenue continues to grow. However, the Super contribution of total revenue has rebalanced from over 95% of revenue in FY 2019 to approximately 70% of total revenue FY 2021. Class now has a diversified and growing product revenue portfolio in FY 2021 and beyond. The launch of Class Trust is a significant milestone for the Reimagination Strategy. Our market research has been validated that there is a key pain point for trust administration, as there was for SMSF administration for our customers. Our strategy has been to sell through to our customer base who already have trust advisory practices. We have now grown our Class Trust customer numbers impressively since Class Trust product launch. As at 30 June, the Trust customer numbers were over 250. We are pleased with the product launch results to date and the continuing positive feedback from our customers. NowInfinity is the leading platform in the legal documentation and corporate compliance vertical. Our subsequent acquisitions have allowed us to arbitrage the cost of customer acquisition by purchasing end-of-life platforms, but with large and sticky customers who are wanting best in market technology and products. All acquisitions have improved our capabilities as well as strengthened our bench of talent. Similarly, the acquisition of Topdocs announced today further strengthens our bench strength in capability, drives scale, increases our wealth accounting customer numbers. We have subsequently decommissioned the technology of Smartcorp and ReckonDocs and migrated the customers over to the NowInfinity platform. All our acquired businesses now fall under the Class NowInfinity brand. We have redesigned and trained our internal customer management and sales teams to sell the multi-product suite. Our operational strategy is to drive further product penetration across those segments and increase the lifetime value of customers. Our FY 2021 investment is focused on upgrading our Class technology platform and enhancing our product features to maintain our SMSF product leadership, develop Class Trust, and integrate the NowInfinity products deeper into the Class business. Turning to our FY 2021 financial highlights. We are consistently growing our revenue and EBITDA. The Reimagination Strategy is divided into three yearly stages of business transformation. Year one, the focus on starting to implement our strategy and building capability. It involved aligning our team behind the vision and values of the organization, improve customer engagement, and subsequently building transformation momentum. Year two, FY 2021, the focus was on accelerating our transformation and growth from the solid platforms we had built in year one. Our progress has been fast-paced, and most importantly, we are delivering to the targets we have set ourselves and communicated to the market. This graph clearly shows the step change in performance in the past two years in both revenue and EBITDA performance. We now enter year three of the strategy, our make our mark year, with a track record of delivering to our plan. The Class business is transforming at speed, and we're excited about the opportunities that lie ahead as we continue to grow revenue and see the operating leverage drive increased profitability as we scale. Class revenues are derived from a combination of subscription and recurring pay-as-you-go revenue from the Class NowInfinity business and our partner program. Our subscription and pay-as-you-go revenue profile has accelerated in FY 2021. We have a balanced mix of subscription and recurring pay-as-you-go revenue. 70% of active pay-as-you-go customers were repeat customers in FY 2021. The combination of subscription and recurring pay-as-you-go revenue is termed roll forward. Our roll forward revenue is AUD 59.8 million and has grown 21.5% PCP. We expect continued strong growth in FY 2022, given the established leadership position we occupy. Another core pillar of transformation was to invest in our product and technology capability. Our vision is to build a competitive moat by ensuring Class has a next-generational technology platform, product pipeline, and business enablement to support our transformation. We've invested in three key areas over the past two years. Our first area of investment is in the core platform. Investment in the platform benefits all products. Platform investments give us scalability and optionality with the ability to maintain operational excellence when we need to pivot and scale. Our second area of investment is to ensure that we are building a world-class product development capability. Our product investments have resulted in us being the first to market with a trust administration product. We are improving our core capabilities each month, and it is reassuring to receive feedback from our customers that Class is improving. This has been reflected in Class winning multiple industry awards in FY 2021, in particular, named SMSF Software Provider of the Year. Our third area of investment is in business enablement. Business enablement is important as we scale. Automation in this area allows us to take on more customers, develop new products, and acquire businesses quickly and efficiently, while maintaining compliance and cost competitive. Such investments include a new billing system and an integrated CRMs to help us better understand our rapidly growing customer base. As we scale, we will reap the benefits of our investments in the underlying technology with the trajectory of development spend as a percentage of revenue trending down towards 20% in the midterm, as we scale. The capitalized amount will depend on our specific development activities. Based on historical trends, we expect this to be approximately 2/3 of our spend. We're also aiming to increase our proportion of spend on product development, which you can see in the plan for FY 2022 and beyond. The key call-outs with respect to our investment in product and technology are these. Our product and technology investment as a percentage of revenue has peaked, but in the years ahead. Turning now to strategy and outlook. Increase customer numbers on the platform and improves functionality. Then integrate well to leverage the investments, drive synergies across the platforms, and create opportunities to increase our average customer revenues and lifetime value. As you can see from this slide, our acquisitions complement and drive growth of our core products of SMSF and trust. Our product sets sit across the service value chain of our customers and work together to help our customers establish, manage, and administer wealth vehicles for their clients. It is significant that today ever, the NowInfinity and Class platforms are the engine room of establishments, management, administration of wealth vehicles in Australia. We continue to accelerate our growth strategy through targeted and well-sequenced acquisitions. We're excited to announce the acquisition of the legal documentation software provider Topdocs, which grows our market leadership position. We welcome both the Topdocs team and customers to Class. Topdocs provides SMSF corporate and trust documentation to accountants, financial planners, lawyers, and other professional advisors. Its product suite is a complementary fit for Class, and its services will be incorporated into Class NowInfinity platform while accelerating the path to scaling NowInfinity. The transaction involves the complete acquisition of Topdocs platform and customer base for an enterprise value of AUD 13 million, adjusted for working capital. The transaction has a target completion date of September the first, with an estimated revenue contribution of AUD 3 million this financial year. We estimate that Class now holds 18% of the document and corporate compliance market by revenue. Following the Topdocs transaction, we estimate we now have over 7,700 unique customers. Our customer base has grown rapidly through acquisition and organic growth. With more customers comes more opportunities. That's a good challenge to have. Most importantly, our intention is to ensure our customers are at the heart of how we design, build, and deliver our products to market. Over the past two years, we have been focused on engaging more of our customers through the product life cycle. Furthermore, by investing in business enablement CRM systems, we will be better equipped to leveraging the mountain of data we now have to drive our decisions. Be that transactional data, behavioral data, and industry insights gathered across the Class and NowInfinity platforms. I'd like to take the opportunity to thank all our customers for their guidance and support in FY 2021, which has contributed to the fast-paced transformation of Class. To achieve and drive future sustained growth, our transformation strategy has been to grow our total addressable market or TAM. Our Reimagination Strategy is focused on growing through a combination of new product categories and adjacent acquisitions that complement the core offerings to create a transformed multi-product technology business. Our commissioned independent research by Frost & Sullivan indicates that in the past two years, Class has increased its TAM over two and a half times via the successful execution of this strategy. Class now has a marketplace of over AUD 365 million. Our expanded addressable market provides Class a larger runway to grow revenue and cement leadership positions in super, portfolio, legal documents, and corporate compliance and trust products. We are now turning our thinking to Horizon Two, given our progress and success to date, and we're exploring opportunities to further grow our TAM via new product categories where complex administration rules exist and can be automated by technology and complement our product suite. Grow through new adjacencies where complex administration rules exist and can be automated by technology and Class core competencies can be replicated. Finally, offshore markets where analysis proves that Class product suite can differentiate and grow shareholder value. We will explore a number of market entry strategies. Clearly, there are some constraints presently with COVID. We are building our new market knowledge, followed by a structured approach for opportunity assessment and prioritization. We believe we already have a clear runway to a significantly larger TAM. We will contribute a clear and connected business development vision for FY 2023 and beyond as we utilize it over the coming year. Class has funded four EPS accretive acquisitions with cash and debt to minimize dilution for shareholders. These acquisitions will contribute in excess of AUD 20 million in revenue in FY 2022 and are delivering double-digit organic growth. The balance sheet is very healthy, and free cash flow from operations is increasing as the business grows and achieves economies of scale. Class has identified a number of further opportunities to grow through acquisition, and the board will review the company's capital management strategy, including dividend payout, in the first half of FY 2022 to ensure we maintain a strong balance sheet and optimize total shareholder returns through internal funding of growth initiatives. Our strategy development progress so far has been impressive and fast-paced. Our performance scorecard highlights include, we have a refreshed brand, color palette, and brand strategy to align with our technology transformation and business position. We've extended our product suite from two to seven products. Our technology and product capability has materially improved as we invest to ensure we have a next-gen technology stack that provides a competitive moat. We've expanded our TAM by two and a half times and created real growth opportunities to expand our TAM materially in the years ahead. We have grown revenues from AUD 38 million- AUD 55 million in FY 2021. We've acquired four businesses, funded them from the balance sheet with minimal dilution. We've integrated them well to drive further growth. We've scaled the businesses, and consequently, the business will be able to realize the benefits of that operating leverage with improved free cash flow and profitability in years ahead. We've invested in our people. We can proudly show that our female employees now make up 54% of our organization, up from 41% in FY 2019. Importantly, the Class culture is strong. We pride ourselves on being able to attract world-class talent and aligning behind our core values and ways of working. We do it with heart. We're better together. We build on trust, and we're always reimagining. Our strong culture and engagement is now reflected in our employee NPS scores. We're all proud of what we do at Class and what we've achieved so far. I'd like to congratulate and thank the Class team for their significant efforts in FY 2021, particularly when the majority of the time we've been working remotely. Our results are a reflection of your hard work, skill, and energy. In terms of outlook for FY 2022, we are mindful of the dynamic COVID-19 environment. Class has adapted well to remote, and hybrid working and will be part of our BAU going forward. Productivity, development velocity, and customer service metrics remain or are above our long-term business averages. However, we are mindful of the impact that the ongoing lockdowns may be having on mental health. The ongoing border closures are igniting a war for technology talent. Class will continue to monitor the COVID impacts on both our staff and customers in the coming months, and indeed, the financial year. Notwithstanding the unknowns of COVID-19, we wish to provide the following FY 2022 outlook. Our revenue target for FY 2022 is a combination of going existing customer revenue, plus the roll-forward revenue derived from growth in our new products, plus the full-year revenue contributions from Smartcorp and ReckonDocs acquisitions, plus the Topdocs acquisition, part FY 2022 revenue contribution of AUD 3 million of revenue, then organic additional revenue initiatives. We are targeting FY 2022 revenue of AUD 65 million, which is an 18% uplift from our FY 2021 results announced today. We are targeting EBITDA of AUD 25 million, which is a 19% uplift on the FY 2021 results and illustrates improvement in our operating leverage as we scale. I'd like to conclude with several FY 2021 result takeaways. We have an impressive strategy execution scorecard. Our FY 2021 financial results are solid and exceeded our revenue target. We have a successful acquisition track record. We have bought and integrated well, o ur acquisitions are delivering double-digit organic revenue growth. The roll-forward revenue continues to grow. We now have market leadership in all our product areas, and that also puts us in a position of strength. We continue to seek acquisitions that are strategically aligned to our vision. We have outlined our revenue and EBITDA targets for FY 2022 with PCP uplifts of 18% and 19% respectively. We are well positioned to achieve those targets. Finally, the Class business is very well-placed to value in sustainable revenue growth in FY 2022 and beyond. We have realistic and achievable growth ambitions, which include material TAM expansion opportunities FY 2023 and beyond. Thank you for your ongoing support and interest in Class. The future, as I always say, looks very exciting as our vision comes alive. I'll now open for Q&A, t hank you. Thank you, at this time if you'd like to ask a question. Please press star then one and wait for your name to be announced. If you wish to cancel your request, please press star then two and if from the speaker phone, please pick up the handset to ask your question. Our first question is from Jules Cooper of Shaw & Partners, p lease go ahead. Hi, g ood morning, Andrew, g reat presentation, j ust a couple of questions from me. You mentioned in your commentary that approximately 2/3 of R&D spend would be capitalized over the medium term. Is that sort of an expectation that you see being likely in FY 2022 given the various products, projects, et cetera, that you're working on? I've just got one follow-on. Good morning, Jules. That's our rule of thumb, o bviously, the capitalization depends on the product roadmap, but that's our guardrails for FY 2022, y es. Awesome, exc ellent, t hen really good to see that accelerating organic growth in the business and the way you've laid out the guidance on slide 19 is incredibly helpful. If we sort of think about the other revenue initiatives, the AUD 2.1 million there, could you maybe just give us a sense for how you see that being split between trust and document management or the SMSF business, just so we can get a sense for maybe where some of these new initiatives are in terms of their contribution to the business and what you see coming through in FY 2022, please? Yes, certainly, w ell, as you know, Jules, the scaling of Trust is a key focus for the team, so that's a BAU activity. We have a partnering program, as you know, that we're going to spend some more time in terms of looking at how we can boost revenue through our ecosystem. We also think that there's some pricing initiatives for additional value on the feature set that we've got right across the product portfolio. Excellent, a ll right. No, good to hear. Okay, thank you. Thank you. A reminder to ask a question, please press star then one. Russell, let's pause for a moment to see if there are any further questions. We go to our next question is from Ross Barrows of Wilsons Advisory, p lease go ahead. Good morning, and thanks for the opportunity. Two questions from my end, really focusing on slide 15, the addressable market. The first question is around the product categories and the new adjacencies. Could you just talk a little bit more about that and maybe through an organic versus an acquisitive lens? Good morning, Ross. Certainly, we're in the process as outlined, to really deep dive into the opportunity set. One of the things that I admire about Class is we're never short of opportunities. The issue is being disciplined to narrow that down and get them in a priority order. We think that we've got some product extensions that can sit across the current set of portfolio of products. We think that there's adjacencies that look interesting, and we'll come to market with some further detail of that later in this financial year. We're exploring other markets where firstly, there's similar tax ruling markets that we have got contacts in, and we're going to explore that for our current product suite. Partnering is certainly a way to enter into those new markets to de-risk the business. We'll go through a very considered approach of how we look about that. Acquisitions in the Australian marketplace, well, we've made a good acquisition today with the acquisition of Topdocs. We'll continue to build our runway, and we'll assess those as we have in the past in terms of how they create value for shareholders and whether they improve our position in the markets that we operate. Yeah, great. Thanks, j ust the second question's around the third point there. Offshore markets, you've addressed that a little bit already. Any more color you can give around that and I guess how we should think about the risk tolerance or the change in risk profile of Class as a business should an offshore market be entered? Firstly, we're exploring it. It's part of the strategy development process for Horizon 2, we'll be overlaying that with the opportunities that we've got onshore. Clearly, COVID presents a bit of a friction point at this point in time to be able to explore those overseas markets. We're certainly talking to people in North America and in Europe to try to fully understand what's the capabilities and where could the Class product portfolio fit into that market. Our early assessment, we've still got a lot of work to do, but the Class engine with its speeds and its ability to be able to synthesize complex rules at scale, we think that there's a number of markets that look very interesting for us. In terms of the risk profile, once again, we're just going to go through a very thorough risk assessment and opportunity assessment as we always do as part of the Reimagination Strategy. We'll be applying that same type of thinking to Horizon 2 and come out with a very connected runway for our Horizon 2 strategy. That's great, t hank you. Thank you, M r. Russell, there are no further questions at this time. Would you like to make some closing comments? Yes, t hank you. Thank you for joining us this morning. We appreciate your interest in Class. We're very proud of our results, and we look forward to catching up with you on the roadshow. Thank you, everyone. Thank you, t hat concludes today's call. 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