Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT ON FORM 8-K - Higher One Holdings, Inc. | q4-8k.htm |
| EX-99.1 - PRESS RELEASE - Higher One Holdings, Inc. | q4pressrelease.htm |
Higher One Holdings, Inc.
Q4’11 Earnings Results
Q4’11 Earnings Results
February 7, 2012
®
©2011 Higher One Holdings, Inc. Higher One and CASHNet are registered trademarks
of Higher One, Inc. All other marks are owned by their respective owners.
of Higher One, Inc. All other marks are owned by their respective owners.
2
Forward-Looking Statements
This presentation includes forward-looking statements, as defined by the Securities and Exchange
Commission. Management’s projections and expectations are subject to a number of risks and
uncertainties that could cause actual performance to differ materially from that predicted or implied.
These statements speak only as of the date they are made, and the company does not intend to update or
otherwise revise the forward-looking information to reflect actual results of operations, changes in
financial condition, changes in estimates, expectations or assumptions, changes in general economic or
industry conditions or other circumstances arising and/or existing since the preparation of this
presentation or to reflect the occurrence of any unanticipated events. The forward-looking statements in
this presentation do not include the potential impact of any acquisitions or divestitures that may be
announced and/or completed after the date hereof. Information about the factors that could affect future
performance can be found in our recent SEC filings, available on our website at http://ir.higherone.com/.
Commission. Management’s projections and expectations are subject to a number of risks and
uncertainties that could cause actual performance to differ materially from that predicted or implied.
These statements speak only as of the date they are made, and the company does not intend to update or
otherwise revise the forward-looking information to reflect actual results of operations, changes in
financial condition, changes in estimates, expectations or assumptions, changes in general economic or
industry conditions or other circumstances arising and/or existing since the preparation of this
presentation or to reflect the occurrence of any unanticipated events. The forward-looking statements in
this presentation do not include the potential impact of any acquisitions or divestitures that may be
announced and/or completed after the date hereof. Information about the factors that could affect future
performance can be found in our recent SEC filings, available on our website at http://ir.higherone.com/.
This presentation includes certain metrics presented on a non-GAAP basis, including non-GAAP adjusted
EBITDA, non-GAAP adjusted EBITDA margin, non-GAAP adjusted net income, non-GAAP adjusted diluted
EPS, and non-GAAP Free Cash Flow. We believe that these non-GAAP measures, which exclude
amortization of intangibles, stock-based compensation, and certain non-recurring or non-cash impacts to
our results, all net of taxes, provide useful information regarding normalized trends relating to the
company’s financial condition and results of operations. Reconciliations of these non-GAAP measures to
their closest comparable GAAP measure are included in the appendix of this presentation.
EBITDA, non-GAAP adjusted EBITDA margin, non-GAAP adjusted net income, non-GAAP adjusted diluted
EPS, and non-GAAP Free Cash Flow. We believe that these non-GAAP measures, which exclude
amortization of intangibles, stock-based compensation, and certain non-recurring or non-cash impacts to
our results, all net of taxes, provide useful information regarding normalized trends relating to the
company’s financial condition and results of operations. Reconciliations of these non-GAAP measures to
their closest comparable GAAP measure are included in the appendix of this presentation.
®
©2011 Higher One Holdings, Inc. Higher One and CASHNet are registered trademarks
of Higher One, Inc. All other marks are owned by their respective owners.
of Higher One, Inc. All other marks are owned by their respective owners.
3
Q4’11 Highlights
• Revenue below expectations
o Voluntary credit plan
o Account Revenue lower than expected
• Adjusted EPS in-line with expectations
o Strong margin expansion
• Best ever year for OneDisburse sales
o 199,000 new SSE in Q4’11
o 773,000 SSE from new sales in FY’11
• Implementing two new bank partners
©2011 Higher One Holdings, Inc. Higher One and CASHNet are registered trademarks
of Higher One, Inc. All other marks are owned by their respective owners.
of Higher One, Inc. All other marks are owned by their respective owners.
4
*Calculation of organic revenue growth is included in the appendix of this presentation
**Excluding $4.7 million impact of credit plan, gross margin would have been 63.2%
Revenue
(in $ millions)
Revenue excluding impact of credit plan
Q4’11 Gross Margin excluding credit project: 63.2%
26.1
38.9
27.8
38.6
39.8
51.4
35.1
48.1
46.5
Customer
Credit Plan
Credit Plan
**
®
©2011 Higher One Holdings, Inc. Higher One and CASHNet are registered trademarks
of Higher One, Inc. All other marks are owned by their respective owners.
of Higher One, Inc. All other marks are owned by their respective owners.
5
GAAP Net Income
Net Income
(in $ millions)
®
©2011 Higher One Holdings, Inc. Higher One and CASHNet are registered trademarks
of Higher One, Inc. All other marks are owned by their respective owners.
of Higher One, Inc. All other marks are owned by their respective owners.
6
Strong Adj. EBITDA as margin expands
*Calculation of Adj. EBITDA and Adj. EBITDA Margin is included in the appendix of this presentation
Adj. EBITDA*
(in $ millions)
®
©2011 Higher One Holdings, Inc. Higher One and CASHNet are registered trademarks
of Higher One, Inc. All other marks are owned by their respective owners.
of Higher One, Inc. All other marks are owned by their respective owners.
7
GAAP Diluted EPS
GAAP Diluted EPS
(in $)
®
©2011 Higher One Holdings, Inc. Higher One and CASHNet are registered trademarks
of Higher One, Inc. All other marks are owned by their respective owners.
of Higher One, Inc. All other marks are owned by their respective owners.
8
Margin expansion drives strong adj. EPS
*Calculation of Adj. EPS and Adj. Net Income Margin is included in the appendix of this presentation
Adjusted Diluted EPS
(in $)
®
©2011 Higher One Holdings, Inc. Higher One and CASHNet are registered trademarks
of Higher One, Inc. All other marks are owned by their respective owners.
of Higher One, Inc. All other marks are owned by their respective owners.
11
Strongest ever Q4 for OneDisburse sales
*SSE stands for Signed School Enrollment, and is recorded each quarter as the total student enrollment at all schools that are contracted at
quarter-end for either our OneDisburse or at least one of our CASHNet® payment suite of products, as of the date the contract is signed (using
the most up-to-date IPEDS data at that point in time).
quarter-end for either our OneDisburse or at least one of our CASHNet® payment suite of products, as of the date the contract is signed (using
the most up-to-date IPEDS data at that point in time).
OneDisburse SSE*
CASHNet Suite SSE*
+27%
+6%
(in thousands)
(in thousands)
®
©2011 Higher One Holdings, Inc. Higher One and CASHNet are registered trademarks
of Higher One, Inc. All other marks are owned by their respective owners.
of Higher One, Inc. All other marks are owned by their respective owners.
12
Adoption increases drive OneAccount growth
OneAccount Growth
+23%
(in thousands)
®
©2011 Higher One Holdings, Inc. Higher One and CASHNet are registered trademarks
of Higher One, Inc. All other marks are owned by their respective owners.
of Higher One, Inc. All other marks are owned by their respective owners.
13
Continued growth in major revenue streams
As a % of total
revenue
revenue
Account
(in $ thousands)
Payment Trxn
(in $ thousands)
Higher Ed. Institution
(in $ thousands)
Other
(in $ thousands)
80%
80%
9%
10%
9%
8%
2%
2%
+17%
+27%
+9%
+11%
Carefully managing expenses as we scale revenue
• Continued operating leverage
from scale
from scale
• Certain product development costs
now being capitalized as we focus
on long-term technology projects
now being capitalized as we focus
on long-term technology projects
• Excluding stock-based and other
customer acquisition expense, S&M
expense as a percent of revenue was
4.9% in Q4’11 (compared to 4.6% in
Q4’10)
customer acquisition expense, S&M
expense as a percent of revenue was
4.9% in Q4’11 (compared to 4.6% in
Q4’10)
• Strong SSE growth drove higher sales
expense
expense
• Evisions sales deal expired at the end
of FY’11
of FY’11
G&A
(as a % of rev before
customer credit plan)
PD
(as a % of rev before
customer credit plan)
Adj. S&M*
(as a % of rev before
customer credit plan)
6.1%
7.3%
Stock-based and
other M&A
related expense
other M&A
related expense
*The Adjusted Sales and Marketing Expense graph shows both total Sales & Marketing as a percent of revenue as well as Sales & Marketing as a percent of revenue
excluding stock-based and other acquisition expense, which is related to the vesting of certain shares issued in connection with the acquisition of EduCard and CASHNET.
Stock-based and other acquisition expense is recognized in the quarter as a function of sales and average share price.
excluding stock-based and other acquisition expense, which is related to the vesting of certain shares issued in connection with the acquisition of EduCard and CASHNET.
Stock-based and other acquisition expense is recognized in the quarter as a function of sales and average share price.
®
©2011 Higher One Holdings, Inc. Higher One and CASHNet are registered trademarks
of Higher One, Inc. All other marks are owned by their respective owners.
of Higher One, Inc. All other marks are owned by their respective owners.
16
GAAP Guidance Update
FY’12
Q1’12
• CapEx expected to be approximately 5 - 10% of revenue
• Strong OneDisburse sales in 2011 will drive growth as
schools are launched
schools are launched
• Initiatives to drive additional revenue in back half of year
®
©2011 Higher One Holdings, Inc. Higher One and CASHNet are registered trademarks
of Higher One, Inc. All other marks are owned by their respective owners.
of Higher One, Inc. All other marks are owned by their respective owners.
17
Non-GAAP Guidance Update
*Calculation of Adjusted Diluted EPS is included in the appendix of this presentation
FY’12
Q1’12
• CapEx expected to be approximately 5 - 10% of revenue
• Strong OneDisburse sales in 2011 will drive growth as
schools are launched
schools are launched
• Initiatives to drive additional revenue in back half of year
®
©2011 Higher One Holdings, Inc. Higher One and CASHNet are registered trademarks
of Higher One, Inc. All other marks are owned by their respective owners.
of Higher One, Inc. All other marks are owned by their respective owners.
18
Q4’11 Summary
• Adjusted EPS at high end of expectations
• Strong OneDisburse SSE growth
• Implementing two new bank partners
• Initiatives to grow revenue/manage costs:
o Rolling out new accounts
o Consumer marketing activity
o Focus on certain CASHNet modules
o IT infrastructure investment
®
©2011 Higher One Holdings, Inc. Higher One and CASHNet are registered trademarks
of Higher One, Inc. All other marks are owned by their respective owners.
of Higher One, Inc. All other marks are owned by their respective owners.
19
Q & A
®
©2011 Higher One Holdings, Inc. Higher One and CASHNet are registered trademarks
of Higher One, Inc. All other marks are owned by their respective owners.
of Higher One, Inc. All other marks are owned by their respective owners.
20
Appendix
®
©2011 Higher One Holdings, Inc. Higher One and CASHNet are registered trademarks
of Higher One, Inc. All other marks are owned by their respective owners.
of Higher One, Inc. All other marks are owned by their respective owners.
25
Reconciliation of GAAP to non-GAAP Guidance