Thank you all for standing by, and welcome to the LiveTiles Limited Q4 Financial Year 2022 results call. All participants are in 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 Mr. Karl Redenbach, CEO. Please go ahead. Good morning, everybody. I'm here joined with Jarrod Magee in Melbourne this morning, and we'll be going through the Q4 results. Before I start, for those that don't know LiveTiles, we are specialists and experts in employee experience software as a service, and we have got over a thousand customers, including the likes of Nestlé, Foot Locker, UnitedHealth Group, all across the globe with operations in Europe and the U.S. and Asia Pacific. Today we'll talk about the results we'll go through. We'll also have a Q&A session as well for those who would like to ask some questions. In particular, pleased to announce our operating revenues of unaudited number of AUD 52.8 million, up 17% on FY 2021. We will be putting out in late August our full results once they've been audited, and we look forward to getting those results out. Our contracted licensed user base of 2.77 million at 30 June 2022, up 20% from the 2.32 million at 30 June 2021. We had cash receipts in the quarter of AUD 12.9 million, which was a 10% increase on the prior corresponding period in FY 2021. We'll have Jarrod talk a little bit more about some of those operating cash flows for Q4. We have a total available cash balance of AUD 17.1 million. Our ARR, annualized recurring revenue number of AUD 65.6 million as of 30 June, which is up 4% from the previous corresponding period on a constant currency basis. We also secured a key upsell deal out of Europe with a three-year basis, which is great to see. Last but not least, I'll talk a little bit more about this. We acquired the Human Link business, which has been going very well, particularly in expanding our employee experience programs and really what we're trying to do in the EX world and EX vision. For those, Jarrod will be talking through the financial highlights in a minute, but I thought we'd just flip to page four for those that have seen our 4C update, which has been released on the ASX platform, which will talk about some of the key, I suppose, highlights for the quarter, as far as launching our operational efficiency. One of the things I can say is that we are achieving strong operational integrations and we've through over the many years, through the several acquisitions we've done and made much more complex through COVID, where typically we'd be able to have people in a room. We are now having some of those people in a room, which is fantastic to see. We've got people meeting in Europe. We've got our teams in Ireland and Denmark and Switzerland communicating and integrating, I think better than ever. We are starting to see customers, which I think is a great thing. As we said, if we go back to the last fiscal year and we look back to where we were in July to sort of November of last year, it was a pretty dark period, I think for a lot of people. Certainly based here in Melbourne, it was very trying times when we, you know, we couldn't leave our houses. We're starting to see customers, we're starting to see events happening, which is great. The good news about that is we're starting to build a great pipeline of a really strong pipeline of enterprise customers. From a general perspective, we would have loved to have landed more enterprise customers in this quarter, Q4. One of the challenges of running an enterprise software as a service company, particularly where you have large ARR deals, some of those deals do take time. The good news is that pipeline's still strong, we expect, and is still growing. Importantly, we expect to win those clients over the coming months and quarters. One of the biggest items that we launched, which was an initiative that we started about 12 months ago in the planning, and it started when we had Simon Sinek, who, for those that don't know, is one of the world's business leaders or leadership experts, I would say, where we had many people attend a session October, November last year regarding the why for companies and the purpose. We've done a great job with our very large accounts in helping them drive purpose-driven organizations technology using our software. One of the key things that we had both on request and as a strategic goal is what we call the Employee Experience Academy. We launched that this quarter. We had the founders Kelly Michael and Steve Macdonald of The Human Link launch that with another expert in this space on the topic that work will never be the same. Really, we see this as a tailwind for our business where people coming out of COVID and working more from home using digital tools like ours, we see as a huge opportunity to provide communication, connection, collaboration platform for companies and organizations, particularly mid to large companies, to connect with their employees. This was all about providing access to EX experts, which is really the key purpose of the EX Academy. We've got an on-demand virtual learning and insights and the link for this for those who are interested in actually going to look at it is exacademy.com, which is provided on page four of the Appendix 4C. You can go and look at what we're doing in that space. The great news is we had over 350 executives from Europe, the U.S.A. and APAC turn up to that. Some of those were key decision makers. Already the feedback we've had in really such a short amount of time on that is that this is extremely helpful and we believe ultimately will drive people to our platform and to our business over time. That was a great initiative that we've launched and we've invested a lot of time and effort into getting that up to where it needs to. The next component that we've talked about here on page four is the integration of Human Link. We've seen some great take up, particularly during the period of the likes of BHP, PwC, Microsoft. I'm just naming a few of the large organizations that we're working together. We now have a number of key programs, employee experience programs or EX programs that are embedded into the global business. This has been part of, I suppose, our operational focus. You know, when we're talking about the likes of, for example, BHP, which is obviously one of Australia's largest companies, and us being able to embed both the approach of these programs plus our technology, we think there is very large upside in how we can go to market. You know, they're the largest companies, but obviously the likes of being able to communicate, collaborate, and through these programs, and most importantly, improve each of these organizations, we think is a huge opportunity. The other key component with Human Link is we did successfully launch the team and their products into the U.S. market. That was a big focus for the quarter. We feel that we've got that business really well integrated and a really great go-to-market for FY 2023. The last thing I want to talk about is that we're continuing to develop our product and our product roadmap. We're very lucky in that we believe we've got an extremely stable and successful product in our 1,000+ customers. And again, a lot of those customers are very large, big names with, you know, very highly secure customers that require, you know, constant support and update. More importantly, you know, we've been able to prove through the wins that we've had over FY 2022 and some of those very large wins with large names that our product is resonating, that it's more relevant than ever, you know, especially in a post-COVID world where people are working from home. We see that the feedback we're getting from all types of organizations, all different types of industries, that it's this is an important topic. We believe that the employee experience market is gonna continue to grow and that there's large upsides, particularly, as I've mentioned, being able to get in to see customers for the first time for a long time over the last couple of quarters, and importantly, start to run events. We're working very closely with Microsoft on a number of key events all across the world. You'll see some information coming out shortly on events we're running in New York, some events we're running in Europe, and some of the successes we're getting there. That's a sort of a quick operational update. I'll now throw it over to Jarrod, who will go through some of the financial information we've provided. Thanks, Karl. I'll now recap the key financial highlights for the quarter ending 30 June 2022. In regards to our cash update, the June quarter cash receipts of AUD 12.9 million was a decline by 11% when compared to June 2021 period. As during the quarter, there was approximately AUD 1.7 million lower than expected customer receipts that were due to be collected by 30 June, but saw delays in being paid before the quarter was able to close out. Pleasingly, as of today, we've seen 60% of this amount having already been collected after 30 June. On a trailing twelve months basis, and for the full year FY 2022 financial year, cash receipts rose 10% over the twelve-month period to a total of AUD 56.7 million. In relation to the cash flows, as per the Appendix 4C, the net cash operating outflows for the quarter was AUD 2.3 million, which is AUD 1.1 million higher than the prior period. As previously mentioned, this operating outflow result has been impacted by the delayed customer receipts incurred for the quarter alone. Pleasingly, the operating cost base during the June quarter has remained flat again to the prior quarter and has also improved by AUD 0.6 million when compared to the June 2021 operating cost base. On a trailing 12 months basis, net operating cash flows improved by AUD 12.6 million and 68% to a net outflow of AUD 5.9 million for 12 months. When adjusting for any one-offs and government grants, the underlying net outflows was AUD 4.1 million and a 34% improvement compared to the prior corresponding period. In terms of the breakdown of operating cash outflows during the quarter related to the business operations, we saw the following. Staff costs of AUD 3.4 million, R&D spend of AUD 5.4 million, product and operating costs of AUD 3.9 million, advertising and marketing of AUD 800,000, and admin and corporate costs of AUD 1.2 million. With a combination of the above cash performance and movements, the closing cash on hand at 30 June is AUD 13.1 million, with an additional AUD 4 million still available to draw on from the OneVentures facility. Thus bringing total cash available to AUD 17.1 million and keeping the business in a strong financial cash position as we enter FY 2023. As mentioned at the start of our call, our full year operating revenues that remain subject to finalization of the audit was AUD 52.8 million, growing 17% over the prior year period and a great result that is underpinned by strong growth from within our software subscription revenue base. Another one of our key business metrics saw our contracted user license base grow 20% to 2.77 million over the past 12 months, up from 2.32 million as at 30 June 2021. We have seen continued growth coming from within the LiveTiles Reach product that on its own has grown 79% over the same period. As Karl touched on, ARR for the quarter was AUD 65.6 million. We've seen an increase of 4% compared to the prior period. When compared to the March 31 quarter, just gone, of which ARR was AUD 64.1 million, there was an increase over the quarter, assisted with just over AUD 1.4 million dollar FX tailwind through the June quarter. On a constant currency basis when comparing and using June 2021 FX rates, the ARR was AUD 65 million. Customer ARR net retention over the trailing 12 months was 91%, and our total customer base now sits at 1,087. That covers the key financials for the June quarter. Any further details can be found within our ASX announcement and the accompanying Appendix 4C. I'll now pass back to Karl for a wrap-up before our Q&A session. Yeah. Hopefully that gives you a flavor. As I've said, we would have hoped that some of our ARR and custom enterprise customers would have closed in the quarter. The positive news is that our pipeline is continuing to grow. Obviously, with a strong revenue result compared to FY 2021 and, you know, the challenging times that we have had, we feel very optimistic, particularly now that we're running, you know, events. We have people starting to see each other in Teams, which is just a critical component, particularly when you're trying to develop enterprise-grade technology and you are trying to do it globally. When you've got the likes of some of these very large customers, it's very difficult, you know, to do everything remotely, particularly when we talk about some of the complex security things that we need to do, as well as our roadmap that we're building a product roadmap with our engineering team. We think we've got some of the top engineers in the world, but we're feeling really confident about the product roadmap and the pipeline, which is a key element, as well as some of those wins we've had in the quarter. I think we're happy to open up to Q&A and I'll throw it back to the host. Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset and ask your question. Your first question comes from Anthony De Pizzol from Shaw. Please go ahead. Good day, guys. How are you? Good, thanks. Excellent. Look, just wanted to put a couple of questions. First one, last quarter there was issues with collecting cash receipts before the quarter end, and it looks like we've got the same thing again this quarter. Can you explain what the actual issue is with getting the cash receipts to come in on time? Are clients just not paying on time? What's the actual issue here? Hi, Anthony. Thanks for the question. Jarrod here. Hi, Jarrod. In terms of our Q4 results, the issue we incurred in this recent quarter was really just delayed in payment. We had a lot of commitments that would be paid by 30 June that, as we expected per our collection schedule, unfortunately weren't met in time. Be that as it may, we've since been able to collect 60% of that balance to date, and we're fairly confident we'll have most of that come back in as well. In relation to the Q3 comment, what we saw in Q3 was isolated to a cohort of customers that we just weren't able to renew their renewals in time, which led to delayed billings, which then led to delayed cash collections as a result. Since that occurred in Q3, we have collected 100% of those balances that were meant to occur in Q3. Okay. Are you able to say, I mean, if you've got 60% there's still 40% remaining. If you had signed the 400%, what the difference would be from cash receipts, just so we can get a. I mean, effectively, the cash receipts of AUD 12.9 million. I mean, can you give a guide as to what that would have been or if the 60% had come in prior and what the 400% would have looked like, what the number would have come in at if that 400% had been collected prior to June 30? Yeah. We were expecting that at AUD 1.7 million to come in in the Q4 results. That was our expectation. What? An extra AUD 1.7 million on top of the AUD 12.9 million? That's correct. 60% of that's come in and 40% is- We're still- Very high probability that's gonna come in. Yeah, we're still in the collection phase and, you know, we already had commitments pre-30 June, so we're still in that healthy discussions with our customers to collect those monies. Okay, great. Excellent. I might ask another question, but I'll leave it. I'll open up the floor for now. Thank you. Appreciate it. Thanks, Anthony. Once again, if you would like to ask a question, please press star one on your telephone and wait for your name to be announced. There are currently no further questions at this time. I'd now like to hand back to Mr. Redenbach for closing remarks. Great. Well, thanks everyone for joining this call. As we said, we'll be putting out our full set of results at the end of August, and we look forward to sharing the audited results with everyone. Again, we're happy to take any questions via email or as per the ASX Appendix 4C at ir@livetilesglobal.com should you have those questions. Thanks for those joining, I think in the U.S., have a good evening. From around the globe, have a good day there. Thanks for joining along and we'll speak to you soon. Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.
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