1H19 presentation FINAL print - Blue Prism€¦ · D F u G D B u E A A u H @ D A ¿ /# - 3+ ). . A @ u C A @ u C D u D A G H ... Microsoft PowerPoint - 1H19 presentation FINAL print

Half year results 201919 June 2019

Half year results June 20192

Introduction & highlights

Financials

Strategic update & conclusions

Questions & Answers

Alastair Bathgate

Ijoma Maluza

Alastair Bathgate

Agenda

3 Half year results June 2019

Introduction & highlights


Introduction

• Great progress in a high growth, but competitive market

• Investing in product, go to market and the team

• Acquisition of Thoughtonomy– Mid-tier cloud based product offering– Identify cloud opportunities in the core

enterprise market


Sales highlights

Customer momentum continues at pace

Delivers pipeline to upsell, with proven track record

1,337 customers covering 27% of Forbes Global 2000

Key metrics

911Deal count

1H 192H 181H 18

911800559

349New customers

1H 192H 181H 18

349305223

496Upsells

1H 192H 181H 18

496425298

99.5%Renewals

1H 192H 181H 18

99.5%97.3%100%

New logos


Strategic & operational highlights

Launched connected - RPA

Blue Prism World - c.4,500 attendees

Headcount increased by 174%

21 Customer Success heads

Launched success accelerator

Deepening partner relationships – e.g. EY

Building the Blue Prism Labs team

Decipher – cognitive in the platform

Used by 512 customers

Private assets to help share and scale

e-commerce introduced –download Blue Prism

Expanding technology partnerships

703 employees Enhancing the Executive team

Strong cultural framework

Sales & Marketing

Customer Success & Partnerships

Digital Exchange maturing

Investingin R&D

Reinforcing the organisation


Thoughtonomy


Financials


Financial highlights

• Exit MRR uses the average FX rate which at the end of April 2019/beginning of May 2019 was £1:$1.29

£41.6mRevenue

1H 191H 18

£41.6m£22.9m

97%Recurring licence revenue

1H 191H 18

97%93%

Key financials (IAS 18 basis)

£7.6mExit monthly recurring revenue*

1H 19FY 18

£7.6m£6.2m

£(34.0)mAdjusted EBITDA

1H 191H 18

£(34.0)m£(4.2)m

£129mCash

1H 191H 18

£129m£55m

Strong performance continues – 82% growth in revenues

High quality, licencebased revenues

MRR increased by £1.4m to £7.6m


Revenue by geography

• Americas grown by 99%

• EMEA remains strong

• APAC presents a significant opportunity

£6.9m

£2.7m

£11.9m

£8.4m

£2.6m

£19.5m

£16.7m

£5.4m

EMEA Americas APAC

1H 191H 181H 17

Presented on IAS 18 basis


Market activity and deal sizes

• Deal count has grown significantly

• Flexible contract terms have increased proportion of 1-year deals

• Removed perceived barriers to customers

0

100

200

300

400

500

600

700

800

900

1,000

0

2

4

6

8

10

12

14

16

18

20

1H 191H 18

Deals secured

2H 181H 17 2H 17

Average deal sizeNote: Average deal size based on incremental recognised revenue divided by number of deals


New customers provide a base to grow

• Upsell opportunity is across cohorts

• Focused on continuing this upsell momentum

Customer cohort analysis by monthly revenues

1H 191H 181H 17 2H 17 2H 18

2017 H1 2017 H2 2018 H1 2018 H2


MRR progression

• Continued strong growth in exit MRR

• Rate of growth reflects the changed commercial model

0

1

2

3

4

5

6

7

8

Prior periods MRR New MRR

1H 191H 181H 16 2H 16 2H 181H 17 2H 17

Prior periods (prior to 1H 2018) have not been adjusted to the revised MRR definition


For the sixth months ended 30 April 2019 (£m)

1H19IAS 18

1H19IFRS 15

1H18IAS 18

(IAS 18)% change

Licence revenue 40.5 39.3 21.5 88%

Other revenues 1.1 1.1 1.4 (21)%

Total revenue 41.6 40.4 22.9 82%

Staff costs (57.8) (53.6) (22.9) (152)%

Other expenses (21.4) (21.4) (5.5) (289)%

Adjusted loss from operations (37.6) (34.6) (5.5) (584)%

Depreciation and amortisation 0.3 0.3 0.1 200%

EBITDA (37.3) (34.3) (5.4) (591)%

Share based payments 3.3 3.3 1.2 175%

EBITDA post adjustments (34.0) (31.0) (4.2) (710)%

Income statement

• Licence revenue growth ahead of total revenue growth

• EBITDA loss driven by:– Investment in growth– £4.2m sales

commissions


Cash flowFor the sixth months ended 30 April 2019 (£m) 1H19 1H18

Adjusted EBITDA (31.0) (4.2)Increase in trade and other receivables (4.1) (4.2)Increase in trade and other payables 5.0 (0.6)Increase in deferred revenue 11.8 8.5Net cash flows from operating activities (18.6) (0.5)Income taxes paid (0.3) -Purchase of intangible fixed assets (0.2) -Purchase of property, plant & equipment (0.5) (0.2)Interest received 0.2 -Issue of ordinary shares (net of issue costs) 98.5 39.0Net increase in cash and cash equivalents 79.1 38.3Cash and cash equivalents at the beginning of the year

50.5 16.3

Effect of foreign exchange on cash and cash equivalents

(0.2) -

Cash and cash equivalents at the end of the year 129.4 54.6

Adjusted EBITDA Operating cash flow

1H 19

FY18

1H18

-40 -30 -20 -10 0


Balance sheet

• Continue to manage balance sheet conservatively

• £100m placing in January

• Growth in the business impacts receivables and payables

For the half year ended 30 April 2019 (£m) 1H19 1H18

Non-current assets 13.3 0.5

Trade and other receivables 35.5 19.1

Cash and cash equivalents 129.4 54.6

Current assets 164.9 73.7

Total assets 178.2 74.2

Deferred revenue 59.7 35.8

Trade and other payables 24.7 7.5

Total liabilities 84.4 43.3

Net assets 93.8 30.9

Share capital & premium 150.5 50.5

Share based payment reserve 7.2 2.4

Other reserves 0.4 0.8

Retained losses (64.3) (22.8)

Equity attributable to shareholders 93.8 30.9


Thoughtonomy financial details

• Expected to complete by end of July 2019

• £80m Enterprise Value

• Stepped payment process– Completion - £12.5m

cash; £23m equity– First anniversary -

£20m equity– 18-month anniversary -

£4.5m cash– Two-year anniversary -

£20m equity

77Customers

54Employees

£m

Thoughtonomy12 months to Apr-19

(Unaudited)

Blue PrismPotential Impact

(4-months to FY19)

Adj. Revenue 7.4 2.0 – 3.0

Adj. EBITDA (3.6) (1.0 – 2.0)

Note1. Thoughtonomy financials are unaudited and preliminary based on standalone financials. The actual

impact will depend on Blue Prism’s accounting policies2. Customer and Employee numbers as at end of May 2019

£0.6mMRR


Summary

• Commercial changes have driven an increase in deals and new customer wins

• Deal sizes have rebased in the short-term, reflecting these changes

• The resulting customer base provides a significant opportunity for upsell

• Our track record for retaining and upselling customers is very strong


Strategic update & conclusions


Marketplace

Software-as a Service

HfS, November 2018‘The future of Business Operations is here’ 30 November 2018

Continually rated as a market leader

Enterprise market Mid-market

Cloudwill increasingly be the deployment method of choice

“The initial adoption of "attended RPA” ……will eventually drive more "unattended RPA" where the increased value will be created and genuine alignment between RPA models proving to be a gateway to broader AI engagements”


Telefonicaconnected-RPA in action

• Telefónica’s ambition is to maintain and enhance their position as global leader by embracing intelligent process automation as a key pillar in its digital transformation strategy

• After discussing with Blue Prism realised that they needed an enterprise grade solution aligned with security, governance, scalability and central control

• Projects are already being deployed across Telefonica’s most important operators, including Spain and Brazil

• Demonstrates both the strength of Blue Prism and the potential opportunity across the customer base

Significant deal secured in the half500+ Digital Worker commitment


We have focused the product on enterprise connected-RPA

Connected-RPA is enabled by providing a platform which is:

• Business led

• Controlled and governable

• Intelligent

To achieve these the platform must also be secure and scalable

These are crucial to the success and safety of any large RPA deployment

Market penetration in regulated industries, where these capabilities will be assessed as essential

Major banks Insurance Pharma

Share of industry participants in Forbes Global 2000


Product development supports connected-RPA

Digital exchange

Embracing the cloud

Ease of adoptionEmbed AI

Further enterprise opportunities

Blue Prism Labs

Decipher announced –human in the loop

Direct purchase

Trial versions in Azure & on prem Thoughtonomy

provides mid-tier proposition

Enterprise deployments in the cloud

Six Intelligent Automation Skillsto deliver true operational agility

Knowledge & Insight

Visual Perception

Learning

Planning &Sequencing

Problem Solving

Collaboration

Community / learning edition


The Digital Exchange is increasingly central


Managing our sales investments

Managing growth in the sales team • Training ‘Spacecamp’ programme for new starters• Reorganising against market priorities• High-touch customer engagement

Customer Success minimises attrition & maximisesupsells• Increasing post sales contact• CCO from one of our largest customers

Connected-RPA drives our marketing strategy• New CMO from Silicon Valley

5 core geographies

DACH

UnitedStates

Japan

China

UK


Conclusions & outlook

Connected-RPA uniquely addresses our market• We are building a large customer base and have a proven

track record of upselling

• Connected-RPA vision starting to deliver significant deals

• We continue to invest in the future opportunity, including our strategic investment in Thoughtonomy

• Exit MRR and our sales pipeline provide our confidence in our full year 2019 performance


Appendices


Operating expense breakdown

1H18 FY18 1H19

General & Administrative 4.0 10.4 10.9

Sales & Marketing 21.6 62.8 61.5

Research & Development 1.6 4.0 3.5

Total Operating Expenses 27.2 77.2 75.9

• Excludes share based payments


Restated MRR

• MRR has been restated to reflect the full impact of deals won during the last month of the reporting period

Old definition New definition

FY17 2.8m 3.2m

1H18 4.4m 4.7m

FY18 5.6m 6.2m

1H19 n/a 7.6m


Sales structure

• Quota carrying: Sales employees working directly with customers and partners

• Solution engineers/pre sales: technical resource. No quota

• Other: Includes management, sales operations and sales enablement Quota-carrying OtherSolutions engineers


IFRS 15

1H19 under IAS 18

Impact of IFRS 15

1H19 under 1FRS 15 (as

reported)

Revenue 41.6 (1.2) 40.4

EBITDA (34.0) 4.2 (29.8)

Documents

1H19 presentation FINAL print - Blue Prism€¦ · D F u G D B u E A A u H @ D A ¿ /# - 3+ ). . A @ u C A @ u C D u D A G H ... Microsoft PowerPoint - 1H19 presentation FINAL print