Tribal Group Plc · LSE:TRB
Tribal — H1 2024 Earnings Presentation
26 slides from Tribal's earnings presentation, August 2024
Slide 1: Tribal Group Half Year Results 2024
Tribal Group Half Year Results 2024
Slide 2: Empowering the World of Education
Overview & Financial Business Appendix Highlights Performance Update 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 (SIS) to both empowered by Tribal’s education Higher & Further St
Slide 3: H1 Overview
Overview & Financial Business Appendix Highlights Performance Update H1 Overview Revenue & Prior pause in Business Positive EBITDA growth new sales reinvigoration Outlook Successful delivery of Impacted by corporate NTU & Offer period Sales pipeline cloud contracts activity in 2023 now behind us imp
Slide 4: New wins and successful implementations
Overview & Financial Business Appendix Highlights Performance Update New wins and successful implementations 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 5: Financial Performance
Financial Performance Diane McIntyre, Chief Financial Officer
Slide 6: Financial Summary: Steady overall financial performance
Overview & Financial Business Appendix Highlights Performance Update Financial Summary: Steady overall financial performance £44.9M £6.2M £54.4M Revenue up 5.2% Cloud revenue up 26% ARR up 0.4% from £42.7m from £4.9m from £54.2m FY23 £152.6M £7.4M £4.9M Committed income down Underlying adjusted Cash
Slide 7: Segments: Both SIS and ETIO driving increase in revenue
Overview & Financial Business Appendix Highlights Performance Update Segments: Both SIS and ETIO driving increase in revenue SIS ETIO ADJUSTED EBITDA Revenues and Operating Margin % Revenues and Operating Margin % +6.1% +2.2% +7.2% – High growth in Cloud revenues at 26% – Revenue growth driven by tw
Slide 8: SIS: Cloud and Foundation driving revenue and margin growth
Overview & Financial Business Appendix Highlights Performance Update SIS: Cloud and Foundation driving revenue and margin growth CORE REVENUE INCREASING BY 6.5% H1 2024 H1 2023 CHANGE GROWTH • Foundation software benefiting from upsells to the base across all product sets Foundation Software and Sup
Slide 9: ARR: Growth in foundation software and support
Overview & Financial Business Appendix Highlights Performance Update ARR: Growth in foundation software and support CORE PRODUCT ARR HAS INCREASED 2.0% H1 2024 2023 CHANGE GROWTH • Growth impacted by offer period Foundation Software and Support 33.7 32.5 1.3 3.3% • Foundation software and support gr
Slide 10: Cashflow: Recovery in cash from operating activities
Overview & Financial Business Appendix Highlights Performance Update Cashflow: Recovery in cash from operating activities OPENING Operating Net cash from OPENING operating activities activities CASH Exceptional CASH before tax Costs NET CLOSING CASH Tax and other items1 Opening Capitalised Net Debt
Slide 11: Decreasing Edge investment from peak in 2022
Overview & Financial Business Appendix Highlights Performance Update Decreasing Edge investment from peak in 2022 £7.6m Edge sales £6.7m • Edge ARR £5.5m and selected products integrated into new bundled pricing £5.3m Edge investment 5.4 • £49.6m capitalised to date 4.6 2.5 • 46% decrease in Edge in
Slide 12: Executing on our growth strategy
Overview & Financial Business Appendix Highlights Performance Update Executing on our growth strategy CORE ARR 10% CAGR SaaS transformation underway • Core ARR growing at 10% CAGR since 2021 • Completion of major high margin, non-core contracts now fully reflected in ARR. Associated revenue and marg
Slide 13: Business Update
Business Update Mark Pickett, Chief Executive Officer
Slide 14: What is driving our business
Overview & Financial Business Appendix Highlights Performance Update What is driving our business University Challenge University Solution Tribal Opportunity • Sell existing products • Legacy SMS complexity / delivered from Public Cloud • Reducing costs, including lack of agility / security closing
Slide 15: Key Initiatives
Overview & Financial Business Appendix Highlights Performance Update Key Initiatives Build Operational Transition to New Etio Standalone Efficiency Partnership Model Half Year Results to 30 June 2024
Slide 16: Driving Efficiency: Simple, standard, scalable
Overview & Financial Business Appendix Highlights Performance Update Driving Efficiency: Simple, standard, scalable Global Business Restructuring Maintaining Customers Services Efficiencies Margin PRICING SCALABILITY COST EFFICIENCY OFFSETTING HEADWINDS Consistent, Standard, scalable Improving value
Slide 17: Tribal Partnership model: Reduce customer's TCO
Overview & Financial Business Appendix Highlights Performance Update Tribal Partnership model: Reduce customer’s TCO Higher Education Full-Service (HEFS): • £ Per Student Per Annum Increasing customer support fee to a per student per annum (pspa) basis, set by ‘fair market rate’ aligned across all c
Slide 18: Education Services
Education Services Partners with education authorities and organisations to support them in delivering large scale projects which improve the quality and impact of education • Re-branded and separated from Core SIS • Further investment into the business • 2024 impacted by UK General Election & Middl
Slide 19: Summary & Outlook for H2 2024
Overview & Financial Business Appendix Highlights Performance Update Summary Focus on ARR • Grow core ARR, particularly in migration New Pricing Model • Focus on successful roll-out of new & Outlook of existing customers to the cloud. • Work to reinvigorating opportunities following the conclusion o
Slide 20: Q&A
Q&A 20
Slide 21: Case Studies – New Products into Existing Markets
Overview & Financial Business Appendix Highlights Performance Update Case Studies – New Products into Existing Markets SITS Cloud Migration SITS Re-implementation ~£650k ~4x ~£160k ~110% ARR Increase ARR Increase ARR Increase ARR Increase (£0.21m to £0.87m) Customer Overview ~£0.9m 8 mths ~£1.4m 10
Slide 22: Appendix
Appendix
Slide 23: Our Student Information System Products
Overview & Financial Business Appendix Highlights Performance Update 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 • Provides
Slide 24: Our Leadership Team
Overview & Financial Business Appendix Highlights Performance 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 DIRECTOR ROGER MCDOWE
Slide 25: Financial Definitions
Overview & Financial Business Appendix Highlights Performance 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 operations which exclud
Slide 26: [email protected] www.tribalgroup.com
0330 016 4000 [email protected] www.tribalgroup.com