Nowvertical Group Inc · TSXV:NOW
Nowvertical — Q4 2023 Earnings Presentation
17 slides from Nowvertical's earnings presentation, April 2024
Slide 1: Q4 2023 Financials
Q4 2023 Financials Transform data into business value with AI, Fast. April 2024 WWW.NOWVERTICAL.COM
Slide 2: Disclaimer and Forward-looking Statements
Disclaimer and Forward-looking Statements This presentation has been prepared by NowVertical Group Inc. (“NowVertical” or the “Company”). The data, information and opinions contained or referenced herein (collectively, the “Information”) is for general informational purposes only and is not tailored
Slide 3: Agenda
1. NowVertical Overview 2. 2023 Financial Updates Agenda 3. 2024 Financial Strategy 4. 2024 Operating Strategy
Slide 4: 2024 Market Outlook
2024 Market Outlook We’re at the precipice 2,000 of the exponent in AI 1,800 $1,847bn Market Growth Global AI market size in billion U.S. Dollars2 1,600 1,400 70% of CEOs are heavily investing in generative AI, viewing it as a 1,200 competitive edge for the future. 1,000 A significant number of them
Slide 5: Enterprises are struggling to maximise their data and AI ROI
2024 Market Challenge Yet, enterprises are struggling to maximise their data and AI ROI 36% WHY? As AI projects move from peripheral isolated activities to core strategic drivers they intersect with existing organisational and data complexity. of all AI projects fail1 85% Organisational Complexity 8
Slide 6: Our Value Proposition
Our Value Proposition We transform data into business value Advanced analytics to improve Cloud Infrastructure creation and marketing effectiveness ML Industrialization with AI, 39% increase in customer Creation of ‘Data Market’ to lifetime value democratize insights ML Models to predict customer Vi
Slide 7: At a glance
At a glance NA & EMEA Market 250+ 100+ 30+ Clients Enterprise Clients CLV over $5m 12 Strategic Acquisitions 600+ Strong Team across 5 continents Utilizing the market leading tech … and more LATAM Market 7 NowVertical Group TSXV: NOW / OTC: NOWVF
Slide 8: Q4 2023 and FY 2023 at a glance
Performance Update Q4 2023 and FY 2023 at a glance $10.1m $6.3m $0.8m Revenue Gross Profit Adjusted EBITDA 20% vs Q4 ‘22 75% vs Q4 ‘22 358% vs Q4 ‘22 $51.7m $26.6m $5.4m Revenue Gross Profit Adjusted EBITDA 91% vs ‘22 130% vs ‘22 378% vs ‘22 8 NowVertical Group TSXV: NOW / OTC: NOWVF
Slide 9: 2023 Year End Revenue Adjustments
Performance Update 2023 Year End Revenue Adjustments $10.1m $14.6m $10.1m includes a $4.5m FX revaluation of the Q1-Q3 Argentina revenue due to Q4 2023 Reported Q4 2023 would have been Q4 23 devaluation of the Argentine peso $51.7m $57.2m $51.7m includes a $5.9m reallocation of license reseller cost
Slide 10: Revenue Analysis
Performance Update Revenue Analysis $15.0 $14.6 $14.0 $14.0 $12.6 $12.4 Summary Highlights $10.7 Reported Revenue $10.1 • Consolidated proforma revenue Proforma trending positively in FY 2023 Revenue • Proforma revenue applies the year end Argentine peso rate to each quarter to convey relative perfo
Slide 11: Adjusted EBITDA Analysis
Performance Update Adjusted EBITDA Analysis Summary Highlights • Consolidated Adjusted EBITDA $2.7 trending positively, 10% in FY 2023 • BU profitability and continued $2.3 reduction in operating costs are key Adjusted EBITDA $1.9 contributors of improved consolidated Adjusted EBITDA profitability P
Slide 12: Revenue Mix
Revenue Breakdown Revenue Mix Markets ∽ 38% LATAM ∽ 62% NA & EMEA ~62% NA & EMEA ~38% LATAM Propositions ~20% Licenses, ~80% Services & Solutions Maintenance and SAAS 12 NowVertical Group TSXV: NOW / OTC: NOWVF
Slide 13: Significantly Strengthening The Cash Position
Liabilities Significantly Strengthening The Cash Position Deferred Payments $5.1m $2.6m 2024 original schedule Deferred to 2025 Tech Ops & Corporate $7.4m $3.1m Costs 2023 Actual 2024 annualised cost savings EDC Debt Deferral $1.27m $6.97m Aggregate principle 2024 Total Cost Benefit deferred to 2028
Slide 14: Strategic Direction
Strategic Direction Transition from inorganic aggressive acquisition strategy to a focus on organic growth from a sustainable foundation, with opportunistic acquisition. 1 2 AI Market Growth Strategic Account Growth Integrating Opportunities Business Units 3 4 Unifying our Global Stronger propositio
Slide 15: Contact Information
Contact Information NowVertical Group Inc. 545 King Street West Toronto, Ontario M5V 1M1 Sandeep Mendiratta, CEO [email protected] www.nowvertical.com Investor Relations Glen Nelson, VP Investor Relations [email protected] www.nowvertical.com
Slide 16: Thank You.
Thank You. We Transform data into business value with AI, Fast. WWW.NOWVERTICAL.COM
Slide 17: Non-IFRS Measures
Non-IFRS Measures The non-IFRS financial measures referred to in this news release are defined below. The management’s discussion and analysis for the three months and year ended December 31, 2023, which will are available on the Company’s SEDAR+ profile, also contains supporting calculations. “EBIT