Getbusy (LON:GETB) - Management Call #1

Aug 04, 2022

Thinks mid-high single digit growth coming 5y
Not possible to be a ‘hockeystick’ growth trajectory
Integration with wockice.
- Early on the VC portal had a chat feature, they are building on that.

Asset finance product, Smartvault with a different front-end etc.
Allows for the electronic vaulting and collateralisation of loan papers. This is historically all done paper-based and is a highly costly and in-efficient process. Getbusy saw significant potential and interest from banks to provide this product.
They released a pilot which saw great interest and due to high market regulation, paused customer acquisition to ensure their product was compliant with all necessary regulations. They intend to resume customer acquisition next year.
Customer acquisition cost should be very low due to a lack of competition and an incumbent leader detailed below.
Previously there was a single product doing this function called e-original
(https://www.wolterskluwer.com/en/solutions/eoriginal)
- Prior to Wolters Kluwers acquisition, the business had been growing organically in double digits the prior 3 years.
- Providing an eMortgage signing and vaulting software for Fiserv among others.
- You can read more about emortgages here https://www.rocketmortgage.com/learn/emortgage

This is a product geared at netsuite and other large ERP systems.
File management system in netsuite was garbage, so Getbusy saw an opportunity.
Customers stay with ERP providers for decades so very sticky.
Troubles they are facing are predominantly brand recognition. They are struggling to find traction, andthat is and remains their focus.
Also using it to improve the VC portal as mentioned earlier, for example the latest deal with Insolvency etc.
1m plus user opportunity. Current subscription price is £23/user per month if paid for 12m upfront or £30/user per month if paid on a monthly basis. That means there is current potential for £300m+ in ARR to the group just in netsuite alone let alone systems such as SAP etc.

Growing ARR is the primary objective
ARR is a proxy for DCF, Multiple of ARR and normalised margins of 30% + EBITDA at maturity.
- The difference between Mature margins and VC Margins ~50% is because of the differing profile of Gross margins, below the line is similar.
LTV/CAC is a "sliding scale" and 3x LTV/CAC is their benchmark. They increase the acquisition spend on customers the higher this ratio goes and vice versa.
- We can't tell investors when we will reach those margins because it is informed by our returns on our reinvestment. We would much rather have 10, 20, 30% EBITDA margins on 50m of ARR rather than our current 18 for example.

Hurdle Rate