LiveTiles Limited Q1 FY20 Investor Update

LiveTiles Limited Q1 FY20 Investor Update for October 29, 2019, is a presentation in Australian Dollars (AUD). The presentation includes disclaimers, limitations, and risks associated with forward-looking statements. Recipients are advised to exercise caution and seek professional advice before making any investment decisions regarding LiveTiles. The content is for informational purposes only and does not constitute a recommendation or offer to subscribe for shares in LiveTiles.

• LiveTiles Limited
• Investor Update
• Australian Dollars
• Forward-looking Statements
• Professional Advice

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1. LiveTiles Limited Q1 FY20 Investor Update 29 October 2019

2. Disclaimer All All currency currency amounts amounts in in this this presentation presentation are are in in Australian Australian Dollars Dollars (AUD) (AUD). . This This presentation presentation has limitations limitations and has been been prepared and disclaimers disclaimers set prepared by set out out below by LiveTiles LiveTiles Limited below. . Limited ( LiveTiles ) ( LiveTiles ). . Each Each recipient recipient of of this this presentation presentation is is deemed deemed to to have have agreed agreed to to accept accept the the qualifications, qualifications, None None of of LiveTiles, LiveTiles, its express express or or implied, information information. . The risks risks and and contingencies, contingencies, many forward forward looking looking statements reliance reliance on on such such forward its subsidiaries subsidiaries or or respective implied, as as to to the the accuracy, The forward forward looking looking statements many of of which statements and and the forward looking looking statements respective directors, accuracy, reliability reliability or or completeness statements included included in in this which are are outside outside the the assumptions assumptions on statements. . directors, officers, completeness of of the this presentation presentation involve the control control of, on which which those those statements officers, employees, employees, advisers advisers or or representatives representatives ( Beneficiaries ) the information information contained contained in in this involve subjective subjective judgement judgement and and are are unknown unknown to, to, the the Beneficiaries Beneficiaries. . Actual statements are are based based. . Given Given these ( Beneficiaries ) make this presentation, presentation, including and analysis analysis and Actual future future events these uncertainties, uncertainties, you make any including any and are are subject subject to to significant events may may vary you are are cautioned cautioned to to not any representation representation or or warranty, any forecast forecast or or prospective significant uncertainties, vary materially materially from not place warranty, prospective uncertainties, from the place undue of, and the undue This This presentation presentation is is a a general The The information information in in this recommendation recommendation with general overview overview only this presentation presentation is is provided with respect respect to to any any investment only and provided personally investment in in LiveTiles, and does does not personally to to the LiveTiles, nor not purport purport to to contain the recipient nor does does it it constitute contain all recipient as constitute financial all the the information information that as a a matter matter of of interest financial product that may interest only product advice advice. . may be only. . It It does be required required to to evaluate does not evaluate an not amount amount to to an an investment investment in in LiveTiles an express express or or implied LiveTiles. . implied The The recipient, recipient, intending conduct conduct their their own seek seek professional professional advice situation situation and and needs intending investors own independent independent review, advice as needs. . investors and and respective respective advisers review, investigations investigations and as to to whether whether an an investment advisers should should: : and analysis analysis of LiveTiles is is appropriate of LiveTiles LiveTiles and appropriate for and of of the the information information contained for them, them, having having regard contained or regard to to their or referred referred to their personal personal objectives, to in in this objectives, risk this presentation presentation; ; and/or risk profile, profile, financial and/or financial investment in in LiveTiles Nothing Nothing in in this this presentation presentation is is or or is is to to be be taken taken to to be be an an offer, offer, invitation invitation or or other other proposal proposal to to subscribe subscribe for for shares shares in in LiveTiles LiveTiles. . Except Except insofar presentation presentation or insofar as as liability or in in any liability under any other other way under any way for any law for errors errors or law cannot cannot be or omissions omissions (including be excluded, excluded, none (including responsibility none of of the responsibility to the Beneficiaries Beneficiaries shall to any any persons shall have persons by have any by reason reason of any responsibility responsibility for of negligence) negligence). . for the the information information contained contained in in this this 2 2

3. LiveTiles Q1 Snapshot Q1 Highlights $42.9m of annualised recurring revenue (ARR) (1), up 131% on pcp 952 paying customers across every major industry vertical 185 transacting partners2 Large and rapidly growing addressable market Pleased with sales and marketing activity early in Q2 Strengthening pipeline - early customer and partner response to Wizdom and bundling driving pipeline growth Bundles: longer sales cycle, higher average contract value and retention rate Larger and more engaged partner channel 1. 2. As at 30 September 2019. Annualised recurring revenue (ARR) represents committed, recurring revenue on an annualised basis. LiveTiles resellers that have closed at least one LiveTiles software licensing transaction 3 3

4. Strong Recurring Revenue Growth Year-on-year ARR growth (1) Average ARR per customer up 37% YoY Q1 ARR +131% on pcp One of the world s fastest-growing SaaS companies Strong growth in average ARR per customer (+37% in last twelve months) driven by: A higher proportion of new enterprise customers Product cross-sell / bundling Increased penetration of existing customers Acquisition of Wizdom, Europe s leading plug and play , Microsoft-aligned digital workplace software business, completed in Feb 2019 Q1 in line with expectations, strong pipeline of sales opportunities in FY20 1. Acquired ARR comprises Wizdom s ARR as at 31 December 2018 ($8.0 million) and Hyperfish s ARR as at 30 June 2018 ($0.4 million). Figures in A$ millions. 4 4

5. Substantial Cash Flow Improvement Strong Growth in Customer Cash Receipts Improving Net Operating Cash Flow Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 $m -5.3 -6.2 -7.8 -9.6 -11.0 Strong growth in customer cash receipts continued in Q1FY20 Another record quarter in Q1 Fourth consecutive record quarter Fifth consecutive quarter of net operating cash flow improvement $3.8m R&D tax incentive received during Q1 Underlying opex of $16.4m vs guidance of $15.9m Non-operating opex relating to discontinued salary and contractor costs, legal costs and costs relating to capital raising Q2 opex expectations of ~$16.2m 5 5

6. Global Market Opportunity: intranet software Large and rapidly-growing addressable market of ~300,000 organisations Microsoft Office365 Customer Base (1) Total Potential Addressable Market 300,000 Potential Customers x $43.6k Average ARR per Customer (2) = ~$13 billion pa Almost all organisations with >100 employees utilise some form of intranet or employee portal Each 1% market penetration = ~$130m ARR Almost all use custom-coded intranets without benefit of intranet software Strong growth in Microsoft s Office365 Commercial revenue: +34% YoY (3) 1. 2. 3. LiveTiles estimates based on industry knowledge. LiveTiles average annualised recurring revenue (ARR) per customer as at 30 June 2019. Microsoft Q4 FY19 earnings release (constant currency basis). 6 6

7. Clear Global Market Leader Software-based intranets are in the early stages of replacing custom-coded intranets Leading Market Share (1) Penetration of Software-based Intranets (1) LiveTiles is more than 4x larger than its nearest competitor (by revenue) Internal organisation intranets and portals have historically been custom-coded - common frustrations with cost, lack of features and lack of dynamic change Most competitor software vendors are embedded within systems integrator (consulting) businesses LiveTiles pioneered the market for low/no-code intranet software in 2015 LiveTiles is pursuing market conversion through direct, partner and Microsoft channels 7 7 1. Number of organisations (LiveTiles estimates based on industry knowledge).

8. Growth Benchmarking: Years to US$100M in ARR LiveTiles is targeting A$100m ARR in ~6.25 years since initial product launch1 1. The Company s A$100M ARR target is not a forecast or guarantee of future performance. It depends on a number of assumptions and is subject to risks, including the risk factors set out in the Company s presentation lodged with ASX on 18 September 2019. 8 8 Chart source: https://medium.com/startup-grind/growing-as-fast-as-slack-195c1e194561

9. Growth Outlook LiveTiles expects to deliver another year of strong customer and revenue growth in FY20 Large and growing addressable market Continued growth in partner/reseller distribution channel Focused direct sales & marketing strategy targeting larger enterprises Growing demand for Artificial Intelligence products Substantial expansion opportunity with existing customers via cross-sell, bundling and increased penetration Conversion of large pipeline generated by inside sales team in the United States High-impact co-marketing initiatives with Microsoft Technology alliances LiveTiles publicly stated target is to organically grow ARR to at least $100m by 30 June 20211 100 Target implies 62% pa Compound Annual Growth 80 60 $m 40 20 0 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 1. The Company s A$100M ARR target is not a forecast or guarantee of future performance. It depends on a number of assumptions and is subject to risks, including the risk factors set out in the Company s presentation lodged with ASX on 18 September 2019. 9 9