Tribal Group plc · LSE:TRB
Tribal — FY2023 Earnings Presentation
25 slides from Tribal's earnings presentation, March 2024
Slide 1: Tribal Group Full Year Results 2023
Tribal Group Full Year Results 2023
Slide 2: Empowering the World of Education
Overview & Financial Summary and Appendix Highlights Performance Outlook Empowering the World of Education Who We Are What We Do Who We Help Our Goal Provider of software Student Information Over 500 institutions and services to Solutions to both empowered by Tribal’s education Higher & Further Stud
Slide 3: Solid Trading Performance
Overview & Financial Summary and Appendix Highlights Performance Outlook Solid Trading Performance Executing on our growth strategy Results demonstrate • Winning new customers, transitioning existing customers to the Cloud, and successfully launching our newly developed native cloud product, Tribal
Slide 4: What is Driving our Business
Overview & Financial Summary and Appendix Highlights Performance Outlook What is Driving our Business Current Status: Many universities are concerned about growing funding crisis • significant increase in cost base • real terms reduction in revenue from domestic student, with fixed £9,250 fee • redu
Slide 5: Tribal's Growth Strategy
Overview & Financial Summary and Appendix Highlights Performance Outlook Tribal’s Growth Strategy Expanded customer Expanded Expanded share of wallet addressable market geographical reach New Product Sales New Geographies Organic Growth • Cross-sell of products into • Semestry successfully sold • St
Slide 6: Case Studies – New Products into Existing Markets
Overview & Financial Summary and Appendix Highlights Performance Outlook Case Studies – New Products into Existing Markets SITS Cloud Migration SITS Re-implementation ~£650k ~4x ~£160k ~110% The addressable ARR Increase ARR Increase (£0.21m to £0.87m) ARR Increase ARR Increase market for cloud Custo
Slide 7: …With Significant New Customer Wins
Overview & Financial Summary and Appendix Highlights Performance Outlook …With Significant New Customer Wins Tribal: Cloud Student Management System Student Management System (Migrations) SITS: Vision (incl Cloud) Ebs / Maytas Successfully growing ARR Winning new customers in the cloud, Winning ne
Slide 8: Financial Performance
Financial Performance Diane McIntyre, Chief Financial Officer
Slide 9: Financial Summary: Continued ARR growth
Overview & Financial Summary and Appendix Highlights Performance Outlook Financial Summary: Continued ARR growth £85.7M £54.5M £168.8M Revenue up 3.2% ARR up 8.7% Committed income down from £83.1m from £50.2m 0.9% from £170.4m £14.4M £6.6M 2.5p Adjusted EBITDA up 99% Statutory profit before tax Stat
Slide 10: Segments: Education Services driving increase in revenue
Overview & Financial Summary and Appendix Highlights Performance Outlook Segments: Education Services driving increase in revenue SIS ES TOTAL Revenues and Operating Margin % Revenues and Operating Margin % Operating Margin and Operating Margin % +1.1% +12.7% +55.6% – Revenue impacted by £1.2m from
Slide 11: SIS: Transition to a high-quality revenue base
Overview & Financial Summary and Appendix Highlights Performance Outlook SIS : Transition to a high-quality revenue base CORE REVENUE INCREASING BY 2.8% 2023 2022 CHANGE GROWTH CORE REVENUE INCREASING BY 2.8% Foundation Support and • • Cloud Cloud– –Four Fourcloud cloudmigrations migrationsand andon
Slide 12: ARR: High growth in Cloud and Foundation Software
Overview & Financial Summary Business and Appendix Highlights Performance Outlook Update ARR: High growth in Cloud and Foundation Software 2023 2022 CHANGE GROWTH CORE PRODUCT ARR HAS INCREASED 12.9% Foundation Support 25.0 24.3 0.6 2.6% • Foundational support and maintenance modest increase with an
Slide 13: Cashflow: Impact of NTU and exceptional spend
Overview & Financial Summary Business and Appendix Highlights Performance Outlook Update Cashflow: Impact of NTU and exceptional spend Opening Cash £2.9m Tax and other Closing Cash £6.8m items Borrowings £6.3m Net Cash from Borrowings £14.0m operating Net Debt £3.4m activities Net Debt £7.2m before
Slide 14: Decreasing Edge investment from peak in 2022
Overview & Financial Business Summary and Appendix Highlights Performance Update Outlook Decreasing Edge investment from peak in 2022 £15.9m £14.4m EDGE SALES £12.4m • Edge ARR £5.9m with solid pipeline of £11.6m future opportunities 10.2 EDGE INVESTMENT 10.3 • £47.1m capitalised to date 6.8 8.5 • 1
Slide 15: Executing on our growth strategy
Overview & Financial Summary Business and Appendix Highlights Performance Outlook Update Executing on our growth strategy SIS PERFORMANCE £54.5m Successful SaaS transformation 3.4 • Steady growth in • Proportion of overall ARR ARR represented by £50.2m £50.2m £47.5m 4.9 Core offerings is growing 9.1
Slide 16: Summary & Outlook
Summary & Outlook Mark Pickett, Chief Executive Officer
Slide 17: Key Initiatives
Overview & Financial Summary and Appendix Highlights Performance Outlook Key Initiatives Transition to SaaS Building Education Full Service Operational Services Partnership Model Efficiency standalone • Building integrated solutions for • Simplify & standardise internal • Restructure of Education S
Slide 18: Summary & Outlook
Overview & Financial Summary and Appendix Highlights Performance Outlook Summary & Growing ARR • Continued progress in growing ARR, NTU resolution Outlook for • Focus on resolving NTU dispute particularly in migration of existing • Mediation process initiated, and customers to the cloud expected to
Slide 19: Q&A
aT Q&A
Slide 20: Appendix
Appendix
Slide 21: Our Student Information System Products
Overview & Financial Summary and Appendix Highlights Performance Outlook Our Student Information System Products • Bringing market-leading Student Management System products at the core, together with the Edge platform allowing for interoperability with new Capability and Experience offerings • Prov
Slide 22: Our Leadership Team
Overview & Financial Summary Business and Appendix Highlights Performance Outlook Update Our Leadership Team TRIBAL BOARD TRIBAL EXECUTIVE TEAM RICHARD LAST MARK PICKETT PAUL DAVIES ADAM FOX CHLOE PAYNE CHAIR CHIEF EXECUTIVE OFFICER GLOBAL PROFESSIONAL SERVICES CHIEF TECHNOLOGY OFFICER HR DIRECTOR D
Slide 23: Financial Definitions
Overview & Financial Summary Business and Appendix Highlights Performance Outlook Update Financial Definitions TERM DEFINITION Constant Currency Prior year reported results restated to “constant currency” using current year rates to exclude foreign currency impact. Operating profit of continuing ope
Slide 24: [email protected] www.tribalgroup.com
[email protected] www.tribalgroup.com
Slide 25: Thank you
Thank you