Spotlio AS (SPOT) Earnings Call Transcript & Summary

Hello, and welcome to Canopy Holdings Q4 FY '23 presentation. I'm Christian Erlandson, your CEO; and with me today is James Price, our CFO. James will take you through our financials for the quarter as well as year-end and our KPIs. So stay tuned. I will start today by taking you through our business update, as we have a few significant messages to share. We will also update you on Q4, year-end financials, leading to our KPIs and wrapping up with the reaffirmation of our guidance for FY '24. After that, we'll take your questions. For those of you not familiar with Canopy Holdings, we've created a platform to help resorts and attractions, increase revenue, reduce costs and improve customer journeys through digitizing key processes, and Canopy Holdings is focused on creating a sustainable future for our partners by creating a purpose-driven organization, addressing megatrends impacting our industries we serve. This is a big market, so we have a lot of runway to go. So on our business update. Since we last spoke, we have completed our private placement. The round was significantly oversubscribed and covered by existing shareholders. This funding provided the company with a clear path to profitability and furthermore shows that the existing investors have a strong belief in the trajectory of the company. In more recent moves, I've taken on the role of CEO of Catalate business, and we'd like to take a moment to wish Matt Cohen all the best. He's been a big part of the Catalate journey from the very beginning, and I would like to wish him well in his future endeavors. On the back of this change, I've initiated an initiative focused on bringing the 3 businesses together, that is Canopy, Catalate and Spotlio. My objective is to combine the strengths of all 3 businesses by leveraging their unique capabilities, optimizing operational efficiencies, stimulating sustainable top line growth and accelerating forward together. The outcome of this ambitious initiative will not only foster collaboration, but will also strengthen our position and our approach in the industry. Details of the outcomes in this initiative will be shared with you in our quarterly earnings statement in September. And last, but not least, partnerships. We've recently announced 2 significant partnerships this week. The first partnership is with JB Concept, a leading provider of sales solutions in the ski resort area in France as well as Switzerland. They've contracted with us to integrate dynamic pricing into their e-commerce platform, allowing us to meet the ultimate demand of the shared community by offering them comprehensive innovative solutions and building upon the success of our collaboration with Val Cenis, who recently renewed the partnership for another 3 years. Val Cenis have offered an innovative new solution offering guests to purchase weather guarantees for their lift tickets. We've done this in partnership also with Sensible Weather, a company that we've been working with in the States in the parks and attractions arena over the last 2 years. And this guarantee, on the e-commerce platform, will allow during times of rain or snow, the consumers will know that they have assurances that if there is a cancellation, they will be fully reimbursed. So this is exciting innovation, Val Cenis, the first one to bring it into the market in Europe, and we go from there. So now I'd like to hand over to James, who will take you through the financials.

Thank you, Christian, and good morning, everyone. I'm now going to take you through the financials for both Q4 and fiscal year '23. So starting off with the income statement. Q4 revenues, we're reporting 6% lower year-on-year. This is mainly due to a significant deferred revenue recognition adjustment in the same comparative quarter in fiscal year 2022. But overall, for fiscal year '23, we're delighted to report 13% growth in revenues. This has led, in particular, by an increase in the revenues in our B2B transactional business. In terms of costs, the main headlines. Personnel costs are significantly down, so 48% year-on-year in Q4. And then over the full fiscal year '23, 13% down. This is an effect of both the levers throughout the fiscal year in the organization and also our continued cost optimization actions taken throughout the year. So Q4 EBITDA overall is negative NOK 7.2 million. This is a significant improvement on prior year in the same comparative period, and this is really underpinning our drive to profitability, both growing top line and also continuing to rationalize our cost base. I'll take you briefly now through the balance sheet. Main item to highlight here is our cash position, which as of 30 April is NOK 8.6 million. This is down from NOK 77.3 million in the same comparative quarter previous year. In May 2023 and following the end of the financial quarter, the company completed a directed equity issue and subsequent offering. And this -- both of these actions combined have increased the company's cash position by approximately NOK 40 million. Briefly now just to touch on the cash flow statement. Total, the net change in cash in the quarter is negative NOK 8.2 million. This is down from NOK 15.9 million in the same quarter in the previous year. And looking towards FY '24. Just to reiterate, we expect this trend of year-over-year cash flow improvement to continue through the period through FY '24 as we both look to increase revenues and continue to lower our annualized cost base going forward as we drive towards our goal of profitability. Now I'll take you briefly through the KPI update. So in terms of number of B2B resorts, which you see here on the left, no major changes during the quarter. In the B2B SaaS segment, same amount of resorts whilst growing ARR and increasing ARPA, net decrease of 1 in the B2B transactional segment, and that signifies that we ended the Q4 period, 30 April, with 230 B2B resorts and attractions. In terms of ARR, we're around EUR 7 million mark as of the end of Q4. Now I'd just like to take you through -- unpack the numbers in the KPIs and just 2 specific segments within the business. The first one is the European ski business. So here, we see a strong historic traction on the graph on the left from May 2021 through to May '23 in the 2 previous periods, significant growth of the trailing 12-month commissions. And then we also see a strong growth of 23% in the past year from current May '23 figures in comparison with the prior year. This is, in general, now we see the end of the winter season, we can provide now an update since the last [Technical Difficulty] see increased commissions year-on-year throughout February, March, April and the end of the European ski season. So in terms of parks and attractions. Here, we see a very strong spike, very, very strong traction from '21 through to '23. This effect is continuing during the past summer season, which is typically our strong season in parks and attractions where each month, we considerably outperformed the prior year, FY '22. Now FY '23, we see strong traction already in May, and we expect to be able to provide updates and a lot more data on the promising FY '24 season in our next quarterly update. And then finally, I'd just like to -- Christian touched upon to reiterate our guidance for FY '24. We were happy to deliver on revenue guidance for FY '23, which has come in at NOK 82 million, ahead of the NOK 80 million guidance provided. And we'd like to reiterate our belief in revenue top line growth of around 35%, which takes us to around NOK 110 million and our continual efforts on reducing the cash burn, on addressing the cost structure or cost base, and we expect to reduce that significantly to around NOK [ 15 ] million in FY '24. So with that, I'd like to welcome Christian back for the Q&A.

There are no questions at this time. So I'd like to thank everybody for attending, and wish you a great day, and see you in September. Take care.

Thank you.

Bye.

Bye.