Blue Prism Group plc H1 Results - Six months ended 30 April 2017
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Blue Prism Group plc
H1 Results
Six months ended 30 April 2017
27 June 2017
blueprism.com
Commercial In Confidence
Disclaimer
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professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of, or persons falling within Article 49(2)(a) to (d) (High Net Worth
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person who is not a relevant person should not act or rely on or attend this Presentation or any of its content and should take no other action. Nothing in this Presentation constitutes investment advice
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The world’s most successful digital workforce Commercial In Confidence
GROUP OVERVIEW
Blue Prism Group plc is a UK-based software company and a leader in the new global technology category of Robotic
Process Automation (“RPA”). Blue Prism’s RPA software delivers the world’s most successful digital workforce.
The Company was formed in 2001, and successfully listed on AIM in March 2016.
What we do How we do it How customers benefit
The Digital Workforce Software robots Back office tasks
Enabling organisations to Versatile, flexible, trainable Taking over the granular
automate existing everyday and reliable work, freeing up people to
user actions perform
blueprism.com 3
Commercial In ConfidenceFinancial highlights
Financial highlights H1 17 Revenue analysis
£10.0m
• Recognised revenue increased 133% to £9.3m (H1 16: £8.0m Recurring revenue
£4.0m)
£6.0m +154%
Total Revenue
Non-recurring
• Recurring revenue represented 91% of total revenue (H1 16: licence revenue
83%; FY 16: 85%) £4.0m
Professional
61% 83%
services
85%
• Exit run-rate (recognised, recurring license revenue) £2.0m 61%
51%
increased 161% to £1.72m per month (H1 16: £0.66m per Other revenue
month; FY 16: £0.95m per month) £0.0m
FY14 FY15 FY16 H116 H117
• Adjusted EBITDA loss of £2.7m (H1 16: Loss: £1.4m)*
Revenue by region
• Cash and cash equivalents at 30 April 2017 stood at £10.6m
100%
(H1 16: £11.2m; FY 16 £11.8m)
80%
*EBITDA loss adjusted to exclude share-based payments.
60% APAC
Americas
40%
EMEA
20%
0% 4
Commercial In Confidence
H1 16 H1 17Operational highlights
• 209 software deals secured during the period, 118 Significant client momentum
Momentum new customers (HI 16: 33 new customers)
• Customer base increased to 271 (H1 16: 90) 300
• 83 upsells secured across 53 customers (H1 16: 28
Customer licence expansion upsells)
• Eight renewals, amounting to 100% renewal rate 250
•
Number of customers
32 new US customers signed, 19 upsells and one
US growth renewal
200
• Customer base now stands at 58
• All new customers secured through our partner
Channel partner focus ecosystem
150 242
• An increasingly large and global RPA market, that 100
Positive market dynamics we continue to capitalise on 124
64
• Launched new Operating System and Technology 50
Product innovation Alliance Programme, supported by the 34
announcement of version 6.0 16
5 23 29 26 29
11 12 16
0
• Global employee base increased from 86 (FY 16) to
Brought forward investment 127, of which 46 are US employees
FY12 FY13 FY14 FY15 FY16 H1 16 H1 17
Direct customers Indirect customers
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Commercial In ConfidenceOperational progress
blueprism.com 6
Commercial In ConfidenceLeading position in the RPA market
Competition Product Execution
Intensifying with market growth
EY ‘30-50% of RPA projects not delivering’
Industry analyst coverage
Enterprise-grade build from inception – not due to software, but execution
Market discerning between desktop and
Ranked #1 for execution in the 2017 HfS Over a decade of implementation
true RPA software
RPA Blueprint grid experience and development of robotic
Blue Prism’s clear focus on enterprise
Best of breed partners for areas such AI, operating model
proving successful
cognitive technology Recognised for providing secure, scalable
Gaining traction in new geographies:
R&D growth in real terms YoY and central management of digital
progress in US, entry into Japan
workforces
#1 for compliance
Version 6.0 announced
The Forrester Wave™: Robotic Process Automation
Q1 2017
7
Commercial In ConfidenceBlue Prism World – The RPA Revolution
8
Commercial In ConfidenceIndirect sales focus – effective and efficient
Global strategic partners Specialist resellers Blue Prism initiatives
• Introduction of autonomous training kits and
first training partner signed
• Partner delivery enablement and
certification, quality assurance and
development of best practices
All new customers in H1 were indirect
9
Commercial In ConfidenceAddressing the RPA skills shortage
April 2017
Blue Prism training the next generation of RPA experts:
Robiquity announced as first Blue Prism
authorised training partner. Robiquity
expects to train 500+ new experts in
robotic process automation (RPA) this
year in its world-first Blue Prism
software training academy
Ascension becomes first North
American authorized training partner. A
Basic Foundation Mandatory Mandatory Mentoring Accreditation
awareness course guides tutorials exam contributing member in the
development of standards for RPA (with
the Institute of Electrical and
Authorised Blue Prism Training Partners Electronics Engineers), Ascension brings
Blue Prism’s authorised training partners (currently six in total) are approved to offer industry class training transformational as well as practical
to any enterprise or partner, looking to establish, improve or industrialise their RPA (Robotic Process experience to its engagements
Automation) with a resilient, scalable, secure, and governed Digital Workforce.
Other partners include:
Digital Workforce, Reveal Group, Symphony and
Wonderbotz
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Commercial In ConfidenceIncreasing US presence
US revenue growth shows initial investment success East to West
• The world’s leading technology economy remains a strategic
focus for the Group
• 46 employees in the US, significant investment in sales
• 32 new customer wins (all indirect); 19 upsells and one renewal
• Revenues increased to £3.3m in H1 2017 (35% of Group) Chicago
San Francisco
• Continued focus on developing channel partner ecosystem New York
Austin
HQ and Tech Hub Miami
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Commercial In ConfidenceExecuting against strategy
What we said… What we are doing…
• Addressing skills shortage in the market place
• Continuing investments in sales and marketing
Building a scalable sales and delivery channel
• Technical Alliance Programme and our partner certification programme
• Partners opening up new geographies
Increasing business with the Group’s customers • Record 83 upsells across 53 customers
• Eight renewals; 100% renewal rate
• 32 new customers signed, 58 in total
Executing on the Group’s US market strategy • 19 upsells and one renewal
• 46 employees
• Defined product roadmap, enterprise focus
Reinforcing the Group’s market leadership • 24/7 global customer support
• Utilising the best of breed partners for technological edge
• Blue Prism World
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Commercial In ConfidenceFinancials
blueprism.com
Commercial In ConfidenceFinancial analysis
Revenue by region Revenue analysis
100%
£10
80% Other Revenue
£8
60%
APAC Professional Services
Millions
£6
Americas
40% EMEA
£4
83%
Non-recurring
61%
20% Revenue
£2 51%
0% Recurring Revenue
H1 2016 H1 2017 £0
FY 14 FY 15 FY 16 H1 17
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Commercial In ConfidenceIncome statement
Commentary Income statement for the six month period ended 30 April 2017
For the six months ended 30 April (£'000) H1'17 H1'16 % change FY'16
• H1 17 licence revenues exceed FY 16 Licence revenue 8,517 3,369 253% 8,304
• PS revenues contain a higher proportion of IP Professional services & training 833 648 129% 1,340
Total revenue 9,350 4,017 233% 9,644
revenues through training revenues
• Recurring revenue now +90% of total revenue
(H1 16: 83%)
• H1 17 exit run-rate of £1.72m per month (H1 Staff costs (8,342) (3,747) 226% (10,187)
Other expenses (3,697) (1,658) 223% (3,906)
16: £662k, FY 16: £946k) Adjusted loss from operations (2,689) (1,388) - (4,449)
• Increased costs due to Adjusted EBITDA (2,650) (1,373) - (4,410)
• investments in period, mostly sales staff Share based payments (417) (60) - (362)
and marketing expenditure; and IPO costs - (502) - 502
Total exceptional costs (417) (562) - (864)
• policy of expensing sales commissions on EBITDA pre-exceptional costs (3,067) (1,935) - (5,274)
multi-year licences as soon as invoiced
Loss before tax (3,106) (1,944) - (5,249)
Loss after tax (3,106) (1,944) - (5,318)
FD EPS (p) (4.99) (5.03) - (10.53)
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(1) Billings are defined as invoices raised in the period, and future contracted revenue is defined as the future value of the contract which has not yet been invoiced to the customer Commercial In ConfidenceBalance sheet
Commentary Balance sheet as at 30 April 2017
As at 30 April (£'000) H1'17 H1'16 FY'16
Non-current assets 216 152 158
• Cash decreased due to planned investments Trade and other receivables 9,517 2,582 5,585
• Includes £2.0m from a small number of Cash and cash equivalents
Current assets
10,639
20,156
11,193
13,775
11,788
17,373
customers who paid their three year license Total assets 20,372 13,927 17,531
fees in advance
Deferred income 16,459 5,897 10,437
• Deferred income +58% on FY 16 reflecting Trade creditors 382 353 574
significant increase in new business and Accruals 1,713 620 2,031
prepayment Other 506 115 619
Current liabilities 19,060 6,985 13,661
• RCF of £2.0m unutilised Total liabilities 19,060 6,985 13,661
• No intangibles and R&D fully expensed Net assets 1,312 6,942 3,870
Share capital & premium 11,355 11,224 11,224
Share based payment reserve 704 60 287
Retained losses (10,747) (4,342) (7,641)
Equity attributable to shareholders 1,312 6,942 3,870
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Commercial In ConfidenceCash flow statement
Commentary Consolidated cash flows as at 30 April 2017
For the six months ended 30 April (£'000) H1'17 H1‘16 FY'16
• Net cash decreased as a result of planned EBITDA (3,067) (1,935) (5,274)
investment into primarily sales & marketing Cash inflow / (outflow) from operations (1,185) (1,266) 93
resources Interest received / paid 3 6 25
Tax received / paid - - (2)
• Further benefited from £2.0m received from Capital expenditure (98) (56) (154)
a small number of customers who paid their Financing 143 10,158 9,475
Cash inflow / (outflow) (1,149) 8,842 9,437
three year license fees in advance
• Strong trading in the period means the Net cash inflow / (outflow) (1,149) 8,842 9,437
Cash at bank b/f 11,788 2,351 2,351
business cash position still strong Cash at bank c/f 10,639 11,193 11,788
• Strong cash position enabled us to bring
forward investments
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Commercial In ConfidenceSummary & Outlook
blueprism.com
Commercial In ConfidenceSummary & Outlook
• 118 new customers; 100% via channel partners
2017 H1: A period of expansion • 83 upsells across 53 customers and 8 renewals
• US growth; 32 new customers and 19 upsells
• Focus on quality of delivery through the certification and accreditation
of partners and their employees
Focusing on partner strategy • Great partner backing at Blue Prism World (London and New York)
• Roll-out global customer and partner support
• Market dynamics, strong pipeline and competitive landscape merits
Emerging and exciting global continued investment
market • Maintaining our position as the leading global RPA technology provider
• Positioning as the execution platform for third-party AI technologies
2017 H2: Continued momentum • Delighted with H1 17 progress
• Strong pipeline gives us confidence for further growth in H2 17
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Commercial In ConfidenceQuestions
blueprism.com20
Commercial In ConfidenceAppendix
blueprism.com
Commercial In ConfidenceWhere are software robots positioned?
IT Resourced Business Resourced
& Delivered
Enterprise IT Operational Ownership
Virtual Workforce
Volume of work
Powered by
Software Robots
SDK / IT Operational
Developed Scripts
Business Processes
22
Commercial In ConfidenceBuilding a mature capability
Supported and Controlled by the
hosted by IT operation
Enterprise Flexible Pipeline
Infrastructure Management
Regulatory Ease of Demand
Compliance Management
Virtual Workforce
Autonomy - Faster
Supported Platform Powered by
Software Robots to Deliver
Secured Ability to adapt to
Environment detailed Insight
Scalable Cloud Rapid Change
Deployment Model
Operational Analogous to
Assurance Existing Workforce
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Commercial In ConfidenceCommercial model
Typical ‘initialise’ partner deal
• –
•
•
• –
•
•
•
• –
Typical contract term based on 10 robots at £8,000 per robot p.a.
Year 1 Year 2 Year 3 Year 4
Total Contracted Revenue: £240k
Invoiced Revenue: £80k Invoiced Revenue: £80k Invoiced Revenue: £80k
Recognised Recognised
Recognised Revenue: £80k Recognised Revenue: £80k
Revenue: £40k Revenue: £40k
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Commercial In ConfidenceBoard of Directors
Chris Batterham
Alastair Bathgate
Non-Executive Director
Chief Executive Officer & Co-Founder • Significant experience in senior finance roles across the technology
• Over 30 years’ experience in enterprise software, manufacturing and banking sector, previously FD of Unipalm plc, until 2001 and CFO of Searchspace
until 2005
• Co-founded Blue Prism in 2001, having previously spent eight years in process • Currently non-executive chairman of Eckoh plc and Non-Executive
improvement at Bradford & Bingley Building Society and four years delivering Director of SDL plc, NCC Group plc and Toumaz Limited.
enterprise software solutions to major customers such as Barclays Bank at Lynx
Financial Systems
• MBA from Leeds University Business School
Gary Johnson Charmaine Eggberry
Chief Financial Officer Non-Executive Director
• Over 20 years’ experience in senior finance roles across the technology sector • Previously held senior board level positions at Research in Motion as
• Joined Blue Prism in February 2015 and was most recently Finance Director of Managing Director and CMO from 2002-2008 and Nokia as Global Senior
Testronic Laboratories, a digital testing company covering digital TV, video Vice President from 2010-2012
games and movies. His previous experience includes roles as COO at Sony • Currently Non-Executive Director of GB Group plc, Avanti
Communications Group Plc and Chairperson of Buzzmove
Psygnosis and finance director of Acorn Computers plc and Rage plc
• Member of the Institute of Chartered Accountants in England & Wales
Jason Kingdon
Non-Executive Chairman
Ken Lever
• Substantial experience in technology software start-ups
Non-Executive Director
• Co-founder of University College London ("UCL") Intelligent System Lab and co- • Currently Group Chairman at RPS Group plc. Previously CEO of
founder and CEO of Searchspace Limited, twice named as one of the 50 fastest Xchanging plc and held senior executive director roles at a number of
growing technology companies in the UK in Deloitte's Technology Fast 50 list. listed businesses including Alfred McAlpine plc, Albright & Wilson plc
Searchspace was sold in 2005 to US private equity group Warburg Pincus for an and Tomkins plc
estimated $140 million • Currently Non-Executive Director of Vertu Motors plc, Gresham House
Strategic plc, Biffa plc and F.M. Insurance Company Limited
• Ernst & Young Entrepreneur of the Year in 2003 and a member of UCL’ Enterprise
Advisory Board
• PhD in Computer Sciences from University College London
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Commercial In ConfidenceThe story so far…
An enterprise-grade “Digital Workforce” powered by software robots, with live blue-chip customers
Services Product idea Industrialization Scaling-up & momentum
Version 4.2 released Version 5
Product ready for
London office • Enterprise Virtual released
“industrial” use Workforce
established
• Release of
version 3.0
Idea of • Scale testing
productizing
Blue Prism formed
emerges
• Automation
consultancy
• Developed with
beta partners in
• Establishing Financial Services
automation best-
International
practice Sales momentum expansion
• Sydney office opened
14 new clients in FY14
Gartner Cool Vendor • Network of partners AIM IPO
• 1,000s robotic “FTEs” • RPA market validation
• Established US office
deployed globally
2001 2005 2008 2012 2014 2015 2016 2017
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