Transcription
Financial results &business update14 February 2022Quarter ended 31 December 2021
DisclaimerAny remarks that we may make about future expectations, plans and prospects for thecompany constitute forward-looking statements. Actual results may differ materially fromthose indicated by these forward-looking statements as a result of various factors.In particular, the forward-looking financial information provided by the company in theconference call represent the company’s estimates as of 14 February 2022. We anticipatethat subsequent events and developments will cause the company’s estimates to change.However, while the company may elect to update this forward-looking financial informationat some point in the future, the company specifically disclaims any obligation to do so. Thisforward-looking information should not be relied upon as representing the company’sestimates of its future financial performance as of any date subsequent to 14 February 2022.3
Non-IFRS InformationReaders are cautioned that the supplemental non-IFRS information presented in this presentation is subject toinherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not beconsidered as a substitute for IFRS measurements. Also, the Company’s supplemental non-IFRS financialinformation may not be comparable to similarly titled non-IFRS measures used by other companies.In the tables accompanying this presentation the Company sets forth its supplemental non-IFRS figures forrevenue, operating costs, EBIT, EBITDA, net earnings and earnings per share, which exclude the effect ofadjusting for share-based payments, the carrying value of acquired companies’ deferred revenue, theamortization of acquired intangibles, discontinued activities, acquisition related charges, restructuring costs, andthe income tax effect of the non-IFRS adjustments. The tables also set forth the most comparable IFRS financialmeasure and reconciliations of this information with non-IFRS information.When the Company believes it would be helpful for understanding trends in its business, the Company providespercentage increases or decreases in its revenue (in both IFRS as well as non-IFRS) to eliminate the effect ofchanges in currency values. When trend information is expressed herein "in constant currencies", the results ofthe "prior" period have first been recalculated using the average exchange rates of the comparable period inthe current year, and then compared with the results of the comparable period in the current year.4
AgendaBusiness update Max Chuard, CEOFinancial update . Takis Spiliopoulos, CFOSummary .Max Chuard, CEOQ&A5
BusinessupdateMax ChuardCEO
Accelerating out of the pandemicTotal Software LicensingTotal ARRc.25% 2022-25 CAGR 19% 2022-25 CAGR17*%12%2020 15% 2022-25 CAGR10%*19%*494Non-IFRS EBIT10%17%55320212022E2025ENote: Numbers are non-IFRS. 2020 and 2021 at constant currency* Mid-point 2022 guidance202020212022E2025E202020212022E2025E7
Our market has fundamentally changedDistributionSales & erationsIncumbentsBanks – Tier 1,2,3 Credit unions &community banksSpecialty FinanceMicro financeNonincumbentsNot bank ownedChallenger BanksPureplay BaaSprovidersBaaS brandsexcluding platformsFintechsBank ownedChallenger banksPlatform players(including Paymentdisruptors)Market opportunity growing and rebalancing between incumbents and non-incumbents8
Temenos is a leader across traditional and non-incumbentmarketsTraditional banks(Digital transformation from legacy to modern)Non-incumbents(Rapid scaling of greenfield business)Leading Platform playerGreenfield ChallengerBankFlowe9
Innovation focus drives our market leadership2022 - 2025Cloud/SaaSAPI/MicroservicesDevOpsBig DataAI/MachineLearningBlockchain/Distributed DB 2.5B 1Bcumulative R&D investment1990-2021R&D investment2022-25We invest 20% of revenues in R&D highest in the industry10
Move to subscription captures greater value andaccelerates our growthClient across all tiers and business models areincreasingly asking for subscription contractsSignificant acceleration in Annual Recurring RevenueARR % to grow 20-25% CAGR from 2021-2025c.1.3bnrather than traditional upfront license85%80%70%Temenos will sell five year subscription553mcontracts for on-premise license and57% 57%64%60%65%63%62%maintenance as standard from 2022, includingfor renewals20212022ESubscription license model2023E2024E2025ETerm & Perpetual license modelGrowth in subscription and SaaS will drive recurring revenue;Subscription model accelerates shift to more predictable financial performance11
Value creation from Subscription will driveacceleration in Total Software Licensing and EBITTotal Software Licensing 19%22-25 CAGRNon-IFRS EBIT 15%22-25 025ENote: Numbers are non-IFRS. 2020 and 2021 at constant currency* Mid-point 2022 guidance12
Tangible subscription benefits to clients and TemenosBenefits to clientBenefits to TemenosEnhanced value proposition for customersSignificantly expanding long-term valuesignificantly expanding flexibilitycreation potential through incrementalLower upfront cost, reflecting a shift to OPEXfrom CAPEX and the time value of moneygrowth, higher margins and cash flowsAccelerate the shift to more predictablefinancial performance driven by a muchEasier to scale with demandhigher proportion of recurring revenuesFlexible maintenance optionsIncrease total contract valuesEasier path to SaaSGreater upsell opportunityBetter customer retention13
A strong Q4-21Review of Q4-21 Q4-21 and FY-21 non-IFRS financial highlightsStrong momentum in the fourth quarterSaaS performed particularly well with ACV up 52%and revenue up 33% Total Bookings up 10% in the quarter, 37% on FY-20and also up on FY-19, driving backlog and visibilityQ4-21 SaaS ACV of USD17.0m, up 52%.FY-21 of USD57.3m, up 65% EBIT growth continued to drive operating and freecash flow generationQ4-21 SaaS revenue growth of 33%.FY-21 up 27% Q4-21 Total software licensing up 11%,FY-21 up 17% FY-21 operating cash flow up 16%Significant investment to ensure we are wellpositioned for future growth Move to subscription model for on-premiselicenses will accelerate recurring revenue growthand further increase visibility Strong pipeline build in Q4-21 ensures we are wellpositioned for strong growth in 2022Q4-21 EBIT growth of 2% and 10% forFY-21Well positioned for strong growth in 2022*Revenue, and EBIT figures are non-IFRS c.c. growth rates14
Strong growth in Total Bookings Total Bookings grew 10% in Q4-21 driven by strongdemand across clients Total Bookings has now grown 37% in FY-21 as wecontinue to take market share Product demand remains broad based Total Bookings increasing backlog and long termvisibility for growth Combination of strong growth in SaaS andlicenses, as well as continued increase in averagetenure vs. an average of 3.7 years in FY-20*Total BookingsUSDm800700600500400FY 2020Total Bookings – includes fair value of licence contract value, committed maintenance contract valueon licence, and SaaS committed contract value. All must be committed and evidenced by duly signedagreements.Note: non-IFRS c.c. growth rates. *refer to slide 44 in appendix for quarterly Total Bookings numbers andslide 45 in appendix for historic average tenuresFY 202115
Excellent growth in SaaS Continued strong acceleration in SaaS with ACV up 52% in Q4-21 and 65% in FY-21 US and Europe drove significant majority of signings SaaS pipeline continues to build, balanced across Transact and InfinityUSDmSaaS RevenueUSDmACV14070120601005080406030204010200Q4 2020Note: non-IFRS c.c. growth ratesQ4 2021FY 2020FY 20210Q4 2020Q4 2021FY 2020FY 202116
Q4-21 and FY-21 sales review Sales environment continued to improve Very strong momentum in SaaS across both Transact and Infinity US performed particularly well, as did APAC and MEA Sequential improvement in Europe with good level of dealsignings across both license and SaaS, strong pipeline build for2022 Tier 1 and 2 banks contributed 41% of total software licensing inQ4-21 as strategic transformation projects continue to gainmomentum Sales to the installed base remained robust, contributing 72% oftotal software licensing in Q4-21 19 new client wins in Q4-21, total of 63 new customer wins in FY-21Total Software LicensingGeographic %38%21%22%TiersFY-21Q4-2141%59%36%1 and 23, 4, and 564%17
Strong momentum in our US businessBuilding strong US references US operations continue to perform very well SaaS ACV particularly strong in Q4-21 and expected to continue in2022Global Tier 1 corporate bank Reference client base continued to grow with Commerce Bankgoing live Pipeline is robust with ongoing deal processes with severalmarquee names Strategic partnerships with DXC and Salesforce are progressing well Investing in Sales & Marketing leadership across client segments18
2022 – a year of accelerating growth Outlook for 2022 is strong with third party market spending accelerating to 10% growth Demand for SaaS in particular accelerating driven by non-incumbents and small and mid-size banks Spend by non-incumbents growing very fast at 29% p.a. with explosion in new entrants and business models Tier 1 and 2 banks increasing their spend to respond to competitive dynamics and changing customerexpectations US and Europe driving growth in 2022 from a geographic perspective Move to subscription will accelerate ARR and TSL in 2022 Significant investment in 2022 to ensure we are well positioned to drive growthWell positioned for accelerating growth in 202219
FinancialupdateTakis SpiliopoulosCFO
Performance vs. 2021 guidance (c.c.)DeliveredGuidanceSaaS ACVARRNon-IFRS RevenueNon-IFRS EBITCash conversionLeverage 50-60% growth65% 10-15% growth12%Total software licensing 14-18%growthTotal revenue 8-10% growth17% TSL 12-14% growth100% conversion of EBITDA intooperating cash flowDSOs around c.105 days by year endNet leverage of c.2x by yearend7% Totalrevenue10%124%DSO at117 days1.8x21
Q4-21 and FY-21 non-IFRS financial highlightsRevenue and profitCash flow SaaS revenue up 33% in Q4-21 and 27% in FY-21 FY-21 operating cash flow of USD 473m, up 16% y-o-y Total software licensing up 11% in Q4-21 and 17% in FY-21 FY-21 operating cash conversion of 124% of IFRS Maintenance growth of 7% in Q4-21 and 4% in FY-21 Total revenue up 7% in Q4-21 and 7% in FY-21 FY-21 free cash flow of USD 358m, up 21% EBIT up 2% in Q4-21 and 10% in FY-21 DSOs at 117 days, up 6 days y-o-y FY EBIT margin (reported) of 36.9%, up 1%pt (c.c.) EPS (reported) up 7% in FY-21EBITDADebt and leverage Net debt of USD 821m as of 31.12.21 Leverage at 1.8x at year end, down from 2.1x at year end FY-20Note: figures are non-IFRS c.c. growth rates unless otherwise stated22
Non-IFRS income statement – operatingQ4-21Q4-20Y-o-YreportedY-o-Y c.c.FY-21FY-20Y-o-YreportedY-o-Y 3.796.229%27%Total software 3.1-4%-5%Total revenue290.0277.15%7%967.0899.97%7%Operating 2%356.8331.08%10%Margin44.3%46.1%-2% pts-2% pts36.9%36.8%0% pts1% 3.8%-1% pts46.3%46.0%0% pts7.6%10.9%-3% pts11.5%13.6%-2% ptsIn USDmSoftware licensingSaaSServicesServices margin23
Like-for-like revenue and costs Q4-21 LFL non-IFRS revenues up 7% Q4-21 LFL non-IFRS costs up 11% FY-21 LFL non-IFRS revenues up 7% FY-21 LFL non-IFRS costs up 6%Total Software 04006004%300400-8%20017%7%10011%0Q4 202011%2000Q4 2021FY 2020FY 2021Q4 2020Q4 2021FY 2020FY 202124
Non-IFRS income statement – Yreported128.4127.71%356.8331.08%Net finance charge-6.1-6.8-9%-25.4-30.1-10%FX gain / 41.832%Net profit102.0103.3-1%274.9259.86%EPS (USD)1.421.411%3.803.557%In USDm, except EPSEBIT25
IFRS cash conversionUSD m500117%100%112%124%450400350300250200150100500FY 2018FY 2019FY 2020FY 2021Cash conversion well above 100% target26
Group liquidityUSDmLeverage at 1.8x at year end 202127
Strong growth in ARR, deferred revenue and FCF Strong ARR growth of 12% in Q4-21 Maintenance growth accelerated to 7% in Q4-21 Maintenance collection and increasing SaaS contribution driving deferred revenue growth and FCF ARR growth underpins visibility and confidence in FY-22ARRQ4 2020FCFDeferred RevenueQ4 2021Note: ARR is non-IFRS c.c. growth rate, Deferred revenue and FCF are reported growth rate. Pleaserefer to slide 44 in appendix for quarterly ARR and FCF numbers.Q4 2020Q4 2021Q4 2020Q4 202128
Outlook for 2022 Increasing competition and customer demands are putting pressure on banks to innovate andinvest Accelerating SaaS demand from challenger banks and fintech Move to subscription for on-premise deals to capture greater value and accelerate growthDrivers of revenue visibilityRobust pipelinegrowth Strong SaaS growth Move tosubscription tocapture greatervalueHigher probabilityrevenueKey drivers ofdemand Re-licensing andsubscription Tier 1 and 2continuous renovation Sales to the installedbase SaaS and cloud US and Europe Tier 1 and 229
Subscription model illustrationTerm model – P&LSubscription model – P&L551Year 11Year 211111111Year 5Year 1Year 2Year 3Year 4Year 5Year 61Year 3Year 4MaintenanceTerm License5MaintenanceTerm model – CashSubscription LicenseSubscription model – Cash6Year 11111222222Year 2Year 3Year 4Year 5Year 1Year 2Year 3Year 4Year 5Year 6CashflowCashflowTerm model – ARRSubscription model – ARR11111Year 1Year 2Year 3Year 4Year 5ARRNote: Based on our standard 5 year term contract and based on IFRS15 standards222222Year 1Year 2Year 3Year 4Year 5Year 6ARR30
Future reporting to break out Subscription revenueTotal Software Licensing (old)Total Software Licensing (new) License revenue License revenue SaaS Subscription SaaS Total Software Licensing revenue Total Software Licensing revenueARR (old)ARR (new) Maintenance Maintenance SaaS Subscription SaaS Annual Recurring Revenue Annual Recurring Revenue31
Focused Guidance MetricsKPIReportingAnnual GuidanceMedium term targets (absolute /CAGR)SaaS ACV Total Bookings ARR Total Software Licensing Total Revenue EBIT Margin / Growth Operating Cash Conversion Free Cash Flow Recurring Revenue DSO Tax Rate 32
2022 non-IFRS guidance metrics (c.c.)FY-22 GuidanceFY-21 Base (CCY)ARR18% - 20% growth553mTotal Software Licensing (%)16% - 18% growth414mAt least 10% growth962m 9% - 11% growth357mTotal Revenue (%)EBIT growth Cash conversion to remain at 100% of EBITDA into operating cash flowFY-21 tax rate expected to be between 18-20%Note: Currency assumptions on slide 41. See slide 59 for definition of non-IFRS.33
Medium term targetsMedium termtargets2020 (CCY)2021 (CCY)Medium term targetsPrevious guidanceARR49455320-25% CAGR 2021-25c.USD1.3bn of ARR by 2025 15% CAGR 2020-25Total SoftwareLicensing35641415-20% CAGR 2021-2515-20% CAGR 2020-25Total revenue90096210-15% CAGR 2021-2510-15% CAGR 2020-2535.9%37.1%c.41% by 2025c.41% by 202529735810-15% CAGR 2021-26 to reach USD600m by 2026 15% CAGR 2020-25 to reach USD600m by 2025EBIT marginFCFTargets are non-IFRS. Tax rates estimate: FY22 guidance at 18-20%, 19.5-21.5% for FY23-2534
Non-IFRS EBIT Bridge 2021/2022EBIT Margin36.8%(c.30) bps37.1%(8)29(20)(22)58393357EBIT FY21 CCYSaas & Maintenance MarginTerm & Subscription LicensegrowthVariable costsInvestmentsWage InflationEBIT FY22 (Mid-Point ofGuidance)Strong visibility on SaaS margin expansion and focus on S&M investment35
SummaryMax ChuardCEO
Temenos CapitalMarkets Day 2022 Temenos Capital Markets Day taking place on Tuesday 15thFebruary Virtual event kicking off at 8am ET / 1pm UK / 2pm CET The CMD will include presentations and demonstrations covering: Strategy and Vision Changes in the banking industry and the Temenos ValueBenchmark Evolution of Temenos product and services Evolution of Temenos technology Demos on composable banking, BNPL and Temenos forSalesforce Temenos SaaS ESG Our financial growth planPlease click here to access the Capital Markets Day microsite onthe day
Conclusion Strong momentum in the fourth quarter Sales environment continued to improve Very strong momentum in SaaS and the US in particular Sequential improvement in Europe in Q4-21, strong pipeline build for 2022 Continued investment to ensure we are well positioned for future growth Move to subscription model for on-premise licenses to capture greater value andaccelerate growthWell positioned for strong growth in 202238
Appendix39
Q4-21 and FY-21 operational overview 98 implementation go-lives in Q4-21 Total of 345 go-lives across all clients in FY-21 Use of cloud continues to increase, driving efficiency Services margin of 8% in Q4-21 and 12% in FY-21Taking a client live every day40
FX assumptions underlying 2022 guidanceIn preparing the 2022 guidance, the Companyhas assumed the following FX rates:EUR to USD exchange rate of 1.14GBP to USD exchange rate of 1.35; andUSD to CHF exchange rate of 0.9141
FX exposure% of totalUSDEURGBPCHFOtherTotal software es47%29%4%4%16%Revenues69%19%2%1%8%Non-IFRS costs24%20%11%5%40%Non-IFRS EBIT146%17%(12)%(5)%(46)%NB. All % are approximations based on 2021 actualsMitigated FX exposure – matching of revenues / costs and hedging42
Quarterly SaaS ACVUSDmSaaS ACVUSDmSaaS ACVUSDmSaaS ACVUSDmSaaS Q4-2112.117.410.717.043
Quarterly ARR, Total Bookings, FCFARR, USD mARRTotal Bookings,USD mTotal BookingsFCF, USD 553.4292.6Q4-2140186NB. Q4-20 adjusted to include license and SaaS catch-up consistent with FY2144
Total Bookingsaverage tenureBelow is the average tenure in FY-20 forthe components of total bookings: Average tenure of SaaS contractsin FY-20 was 3.9 years Average tenure of license andmaintenance contracts in FY-20was 3.6 years Average tenure of total bookingsin FY-20 was 3.7 years45
Total software licensing revenue breakdown by geographyQ4 202014%APAC13%Q4 icasMEA27%FY 2020APAC17%18%EuropeFY sMEA46
Total software licensing revenue breakdown by customer tierQ4 20201 and 244%Q4 202141%3, 4 and 556%3, 4, and 559%FY 20201 and 2FY 20211 and 236%36%3, 4 and 51 and 23, 4, and 564%64%47
Software licensing revenue breakdown by competitive deals/add-ons to installed baseQ4 202030%CompetitivedealsQ4 202128%Noncompetitive,installedbased70%FY 2020CompetitivedealsNonCompetitive,installed base72%FY d base48
DSOsDSOs120(6 days of which due to M&A)122120118116114112110108106Q4 2017Q4 2018Q4 2019Q4 2020Q4 2021DSOs at 117 at year end 202149
Balance sheet – debt and leverageNet debt and leverage 2.2x2.0x1.5x1.8x1.6x1.6xQ1 2019Q2 20191.4x1.0x0.5x0.0xQ4 2018Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021Q2 2021Q3 2021Q4 202150
Q4-21 v Q4-20 assets2,2342,216128101Comments: Increase in Trade Receivablesreflects revenue 20CashTrade receivablesFixed asset Fixed assets reduce due toamortisation and foreignexchange gain on intangibles Other assets includes convertiblenote investmentOther assetsUSDm51
Q4-21 v Q4-20 liabilities2,2342,216Comments:216475523209 Increase in Trade and Other Payablesreflects growth in activity195930960978184 Reduction in equity reflects sharebuy-back174398357501193163Q4-2021Q4-2020Trade & Other payables Deferred revenue increase driven bystrong SaaS growth1,108Deferred revenuesBorrowings413Other liabiiltiesEquityUSDm52
Capitalization of development costsUSDmQ1-19Q2-19Q3-19Q4-19FY-19Cap’ dev’ 712.012.213.749.6Net cap’ 0Q4-20FY-20Cap’ dev’ 913.613.613.753.8Net cap’ 1Q4-21FY-21Cap’ dev’ 5.615.117.061.4Net cap’ dev’(5.4)(5.4)(5.8)(8.2)(24.8)53
Reconciliation from IFRS to non-IFRSIFRS revenue measure Deferred revenue write-down Non-IFRS revenue measureIFRS profit measure /-Share-based payments and related social charges /-Deferred revenue write down /-Discontinued activities /-Amortisation of acquired intangibles /-Acquisition related charges /-Restructuring /-Taxation Non-IFRS profit measure54
Accounting elements not included in non-IFRSguidanceBelow are the accounting elements not included in the 2022 non-IFRS guidance: FY 2022 estimated share-based payments charge of c.5% of revenue FY 2022 estimated amortisation of acquired intangibles of USD 50m FY 2022 estimated restructuring costs of USD 10mRestructuring costs include realising R&D, operational and infrastructure efficiencies.These estimates do not include impact of any further acquisitions or restructuring programmes commenced after 14February 2022. The above figures are estimates only and may deviate from expected amounts.55
Earnings Reconciliation – IFRS to non-IFRSIn USDm, except EPS3 Months Ending 31 December2021IFRSSoftware licensingSaaSTotal Software LicensingMaintenanceServicesTotal Revenue118.534.9153.4100.735.9290.0Total Operating CostsRestructuring/acq. costsAmort of Acq’d Intang.IFRS 2 CostsOperating ProfitOperating Margin(189.5)(6.0)(12.4)(9.4)100.535%Financing CostsTaxationNet EarningsEPS (USD per Share)(6.6)(16.9)77.01.07Non-IFRS adj.27.96.012.49.427.9(2.9)24.90.352021Non-IFRS3 Months Ending 31 1.20Non-IFRS 3)103.31.4156
EBIT & EBITDA reconciliation from IFRS to non-IFRSUSDmIFRSIFRS 2Deferred revenue writedownAmortisation of acquiredintangiblesRestructuringAcquisition related costsNon-IFRSQ4 21 EBITQ4 21 EBITDAFY 21 EBITFY 21 2.7-6.05.916.015.6--1.41.4128.4152.6356.8447.757
Net earnings reconciliation IFRS to non-IFRSIn USDm, except EPSQ4 21Q4 20FY 21FY t earnings for non-IFRS EPS102.0103.3274.9259.8No. of dilutive shares (m shares)72.073.172.473.2Non-IFRS diluted EPS (USD)1.421.413.803.55IFRS net earningsIFRS 2 CostDeferred revenue write downAmortisation of acquired intangiblesRestructuringAcquisition related costsTaxation58
Non-IFRS DefinitionsNon-IFRS adjustmentsShare-based payment chargesAdjustment made for shared-based payments and social chargesDeferred revenue write-downAdjustments made resulting from acquisitionsDiscontinued activitiesDiscontinued operations at Temenos that do not qualify as such under IFRSAcquisition related chargesRelates mainly to advisory fees, integration costs and earn out credits or chargesAcquisition related finance costMainly relates to fees incurred on acquisition fundingAmortisation of acquired intangiblesAmortisation charges as a result of acquired intangible assetsRestructuringCosts incurred in connection with a restructuring programme or other organisationaltransformation activities planned and controlled by management. Severance charges, forexample, would only qualify under this expense category if incurred as part of a companywide restructuring planTaxationAdjustments made to reflect the associated tax charge mainly on deferred revenue writedown and amortization of acquired intangibles, and on the basis of Temenos’ expectedeffective tax rateOtherRevenue visibilityVisibility on revenue includes a combination of revenue that iscontractually committed and revenue that is in our pipelineand that is likely to be booked, but is not contractuallycommitted and therefore may not occur.Constant currenciesPrior year results adjusted for currency movementLike-for-like (LFL)Adjusted prior year for acquisitions and movements incurrenciesSaaSRevenues generated from Software-as-a-ServiceSubscriptionRevenue from software sold on a subscription basis. Licenseand Maintenance are recognized separately, with the Licenseobligation reported as Subscription under Total SoftwareLicensing.Total BookingsInclude fair value of licence contract value,committed maintenance contract value on licence, and SaaScommitted contract value. All must be committed andevidenced by duly signed agreements.Annual Recurring Revenues (ARR)Annualized contract value committed at the end of thereporting period from active contracts with recurring revenuestreams. Includes New Customers, up-sell/cross-sell, andattrition. Excludes variable elements.59
SaaS Financial metrics definitions and reportingAnnual ContractValue (ACV)Annual value of incremental business taken in-year. Includes New Customers, up-sell/cross-sell.Only includes the recurring element of the contract and exclude variable elements.Disclosure: quarterly reporting, annual reportingAnnual RecurringRevenue (ARR)Annualized contract value committed at the end of the reporting period from active contractswith recurring revenue streams. Includes New Customers, up-sell/cross-sell, andattrition. Excludes variable elementsDisclosure: quarterly reporting, annual reportingSoftware-as-aService Revenue(SaaS)Software-as-a-Service revenues booked in a periodDisclosure: quarterly reporting, annual reporting60
License vs SaaS ProfitabilityCumulative Gross profit5.44.84.23.7NPV: 3.63.12.62.11.31.11.5 1.51.71.82.22.02.42.62.8NPV: 2.11.00.5Year 1Year 2Year 3Break evenYear 4Year 5Year 6License & MaintenanceYear 7Year 8Year 9Year 10Saas Net present value of SaaS gross margin over 10 years is c70% higher than License & Maintenancegross marginFor illustrative purpose assuming 1USD of License revenues61
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1 day ago · Sales & Marketing Servicing Distribution Product . 20 40 60 80 100 120 140 Q4 2020 Q4 2021 FY 2020 FY 2021 SaaS Revenue 10 20 30 40 50 60 70 Q4 2020 Q4 2021 FY 2020 FY 2021 ACV. Q4-21 and FY-21 sales review 17 Total Software Licensing Geographic split Tier
