THIS ANNOUNCEMENT CONTAINS INSIDE
INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU
AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018 ("MAR"). UPON PUBLICATION OF THIS
ANNOUNCEMENT THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE
PUBLIC.
23 July 2024
Eagle Eye Solutions Group
plc
("Eagle
Eye", the "Group", or the "Company")
FY 2024 Trading
Update
19% ARR growth and strong
EBITDA performance, ahead of expectations
Eagle Eye (LSE: "EYE"), a leading
SaaS technology company that creates digital connections enabling
personalised, real-time marketing, is pleased to provide an update
on the Group's trading for the year ended 30 June 2024 (the "Year"
or "FY 2024").
Financial Highlights
|
|
FY
2024
|
FY
2023
|
%
change
|
|
Period end Annual Recurring Revenue
(ARR)1
|
£39.7m
|
£33.3m
|
+19%
|
|
Group Revenue
|
£47.7m
|
£43.1m
|
+11%
|
|
Recurring revenue
(subscription fees and
transactions)
|
79%
|
80%
|
-1pps
|
|
Adjusted
EBITDA2
|
£11.3m
|
£8.8m
|
+28%
|
|
Adjusted EBITDA2
margin
|
24%
|
20%
|
+4pps
|
|
Closing net cash3
position
|
£10.4m
|
£9.3m
|
+12%
|
|
·
|
Another year of profitable growth,
with new customers secured in the UK, North America and Australia
and expansion with existing customers including Tesco, Morrisons
and Asda in the UK, Hudson's Bay in North America and Woolworths in
Australia
|
|
·
|
Several new international customers
won at the end of the Year, including Central Retail Vietnam - the
Group's first customer in Vietnam, Z Energy in New Zealand, and
Picard and Chronodrive in France
|
|
·
|
The Group exited the Year with
strong ARR, up 19% year on year, with the majority of revenue from
the wins in Q4 FY 2024 to be recognised from FY 2025
onwards
|
|
·
|
The win momentum towards the end of
FY 2024 has continued post year end, with RONA in Canada and
Waterstones in the UK, increasing ARR further and providing good
visibility for FY 2025
|
|
·
|
The Group maintained strong cost
discipline, delivering adjusted EBITDA2 ahead of market
expectations4
|
|
·
|
Continued innovation to expand the
Group's addressable market, focusing on the Group's AI-based
offering, EagleAI, validated by initial customer wins including
Tesco, Morrisons and Carrefour via Média performances
|
|
·
|
Significant sales pipeline across
all geographies as retailers look to drive customer loyalty through
personalised promotions, at scale
|
Continued growth and operational
discipline delivers adjusted EBITDA above expectations
The continued expansion with
existing customers and win momentum ahead of the Year-end means
that Eagle Eye exited the Year with ARR1 up 19% to
£39.7m (FY 2023: £33.3m). This ARR growth included strong progress
with EagleAI and provides a good foundation for the year ahead, as
the timing of wins means that revenue recognition from these
contracts will benefit FY 2025 onwards. New contracts secured
post-year end have increased ARR further, as additional 'win' initiatives start to deliver
results.
Group revenue increased 11% to
£47.7m (FY 2023: £43.1m), with license and
transaction revenues growing half-on-half and
year-on-year.
EagleAI, the Company's AI-based
personalised promotions offering, enjoyed a strong H2, winning a
new contract with Tesco Stores Ltd to power Clubcard challenges and
the swift expansion of the Morrisons contract, secured at the end
of FY 2023, into Personalised Challenges, as well as further new
customers, detailed below.
The Group has maintained strong cost
discipline, delivering adjusted EBITDA2 ahead of market
expectations4, increasing by 28%
to approximately £11.3m (FY 2023: £8.8m), with good growth in
adjusted EBITDA2 margin to 24% (FY 2023: 20%)
demonstrating the operating leverage within the business and
ongoing 'better, simpler, cheaper' initiatives.
The Group was cash generative in H2
and the Year overall, in line with the Board's expectations, and
closed the Year with a net cash position3 of £10.4m (30
June 2023: £9.3m), providing Eagle Eye with the continued ability
to invest to support future growth.
Contract momentum closing out the
Year
The Company is pleased to announce
today a number of new customer wins in the final month of the Year
and at the start of FY 2025, including the Group's first customer
in Vietnam, and retailers in new industries of Fuel and Convenience
and eCommerce, demonstrating the wide applicability of Eagle Eye's
offerings. The wins will commence revenue contribution through the
course of FY 2025.
AIR/ Loyalty
wins
|
·
|
A three-year contract with Central
Retail Vietnam ("CRV"), one of the largest multi-format retailers
in Vietnam operating across more than 340 stores, to launch CRV's
first digital loyalty programme utilising the Group's AIR platform.
The programme is expected to be fully live
by the end of 2024 calendar year.
|
|
·
|
A three-year loyalty contract with Z
Energy in New Zealand, a full-service fuel and
convenience retailer operating across 289 outlets, with potential
for expansion.
|
|
·
|
Post Year end, a five-year contract
with Waterstones Booksellers Limited in the UK to support their
loyalty and gifting propositions and a three-year contract with
RONA, one of Canada's leading home improvement retailers, to
deliver personalised loyalty benefits to their Pro
customers.
|
EagleAI /Personalised
Challenges wins
|
·
|
Two specialist French retailers
Picard Surgeles and, Chronodrive, the Group's first eCommerce
customer, entered two-year contracts for EagleAI - Personalised
Challenges, to be deployed across their customer bases. This
follows successful pilots, which demonstrated strong customer
engagement and incremental sales, demonstrating strong ROI from the
Personalised Challenges solution.
|
Focused on driving our win rate for
future growth
The Group has a considerable
pipeline of sales opportunities, including some of the world's
largest retailers, and continues to develop initiatives to maintain
and increase the pace at which opportunities convert to sales.
Several further initiatives have been implemented in the Year,
including:
|
·
|
a reorganisation of the sales team
to be more focused on customer wins;
|
|
·
|
increased productisation of
technology to facilitate a simplified sales discussion;
|
|
·
|
a new focus on alliances, covering
both partners and system integrators, to expand the Group's reach;
and
|
|
·
|
continued innovation, particularly
within EagleAI, as Eagle Eye seeks to capitalise on the growing
interest in AI-powered personalisation execution.
|
Outlook
Eagle Eye's market-leading
reputation as the provider of personalised marketing at scale and
the increasing opportunities available to it through its new
AI-based offerings, provide it with a strong foundation for
long-term growth. The Group has a significant sales pipeline,
including some of the world's largest retailers, and has
implemented new initiatives to drive its win rate. Meanwhile, the
wins secured at the end of FY 2024 and into FY 2025 provide a
strong basis for further growth through FY 2025 into FY 2026. With
healthy levels of cash generation, a growing international customer
base and new AI-based offerings, the Board looks to the future with
confidence.
Notice of Results
The Group expects to announce its
results for the year ended 30 June 2024 on 18 September
2024.
Tim Mason, Chief Executive of Eagle
Eye, said: "The
world of loyalty is evolving at pace. At the vanguard of this
movement are the grocers, for whom loyalty increasingly means
personalised promotions, due to their proven ability to delight
customers and increase loyalty, profitably. Our ability to support
personalised promotions at scale, and the increasing opportunities
presented by our new AI-based offerings, mean we are the
acknowledged leaders in this market. The strength of our customer
base helps to drive interest from some of the world's largest
retailers as we continue to capture what is a sizeable, long-term
growth opportunity."
Notes:
All financials are based on
unaudited figures
1- Period end Annual Recurring
Revenue ("ARR") is defined as Period exit rate for recurring
subscription and transaction revenue (excluding SMS) plus any
professional services contracted for more than 12 months hence and
secured new wins, excluding any seasonal variations and lost
contracts.
2- EBITDA has been adjusted for the
exclusion of share-based payment charges along with depreciation,
amortisation, interest and tax from the measure of profit. 2023
EBITDA figure has also been adjusted to exclude costs associated
with the acquisition of Untie Nots.
3- Net cash is defined as cash and
cash equivalents less financial liabilities.
4- Company compiled adjusted
EBITDA range is based on known sell-side analyst estimates for the
full year ended 30 June 2024 of £10.3m to
£10.8m.
The person responsible for arranging
the release of this announcement on behalf of Eagle Eye is Lucy
Sharman-Munday, Chief Financial Officer.
Enquiries:
|
Eagle Eye Solutions Group plc
|
Tel: 0844 824 3686
|
|
Tim Mason, Chief Executive
Officer
|
|
|
Lucy Sharman-Munday, Chief Financial
Officer
|
|
|
|
|
|
Investec Bank plc (Nominated Adviser and Joint
Broker)
|
Tel: +44 20 7597 5970
|
|
David Anderson / Nick
Prowting
|
|
|
|
|
|
Shore Capital (Joint Broker)
|
Tel: +44 20 7408 4090
|
|
Corporate Advisory: Daniel Bush,
David Coaten, Lucy Bowden
|
|
|
Corporate Broking: Henry
Willcocks
|
|
|
|
|
|
Alma Strategic Communications
|
Tel: +44 20 3405 0205
|
|
Caroline Forde, Hannah Campbell,
Kinvara Verdon
|
|
Forward-looking statements
This announcement may include
statements, beliefs or opinions that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements may
be identified by the use of forward-looking terminology, including
the terms "believes", "estimates", "plans", "projects",
"anticipates", "targets", "aims", "continues", "expects",
"intends", "hopes", "may", "will", "would", "could" or "should" or,
in each case, their negative or other variations or comparable
terminology, or by discussions of strategy, plans, objectives,
goals, future events or intentions. No representation or warranty
is made that any of these statements or forecasts will come to pass
or that any forecast results will be achieved. Forward-looking
statements may and often do differ materially from actual results.
Any forward-looking statements contained in the announcement speak
only as of their respective dates, reflect Eagle Eye's current view
with respect to future events and are subject to risks relating to
future events and other risks, uncertainties and assumptions
relating to Eagle Eye's business, results of operations, financial
position, liquidity, prospects, growth and strategies.
Except as required by any applicable
law or regulation, Eagle Eye expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained in this announcement or any
other forward-looking statements it may make whether as a result of
new information, future developments or otherwise.
About Eagle Eye
Eagle Eye is a leading SaaS
technology company enabling retail, travel and hospitality brands
to earn the loyalty of their end customers by powering their
real-time, omnichannel and personalised consumer marketing
activities.
Eagle Eye AIR is a cloud-based
platform, which provides the most flexible and scalable loyalty and
promotions capability in the world. More than 850 million
personalised offers are executed via the platform every week, and
it currently hosts over 500 million loyalty member wallets for
businesses all over the world. Eagle Eye is trusted to deliver a
secure service at hundreds of thousands of physical POS
destinations worldwide, enabling the real-time issuance and
redemption of promotional coupons, loyalty offers, gift cards,
subscription benefits and more.
The Eagle Eye AIR platform is
currently powering loyalty and customer engagement solutions for
enterprise businesses all over the world, including Asda, Tesco,
Morrisons, Waitrose and John Lewis & Partners, JD Sports, Pret
a Manger, Loblaws, Southeastern Grocers, Giant Eagle, and the
Woolworths Group. In January 2024, Eagle Eye launched EagleAI, a
next-generation data science solution for personalisation, already
being used by leading retailers worldwide including Carrefour,
Auchan and Pattison Food Group. Web - www.eagleeye.com