TIDMEYE
RNS Number : 7663Z
Eagle Eye Solutions Group PLC
16 January 2024
16 January 2024
Eagle Eye Solutions Group plc
("Eagle Eye", the "Group", or the "Company")
H1 Trading Update
and
Notice of Results
Delivering results in line with expectations and continued
expansion in the US
Eagle Eye (LSE: "EYE"), a leading SaaS technology company that
creates digital connections enabling personalised, real-time
marketing, provides an update on the Group's trading for the six
months ended 31 December 2023 (the "Period").
Highlights
H1 FY24 H1 FY23 % change
--------- --------- ---------
Group Revenue GBP24.1m GBP20.0m +20%
Recurring revenue ( subscription
fees and transactions) 78% 78% -
Adjusted EBITDA (*) GBP5.9m GBP4.7m +25%
Adjusted EBITDA* margin 24.3% 23.5% +0.8ppt
Net cash at 31 December** GBP7.8m GBP5.7m +36%
-- Continued positive trading has delivered revenue and EBITDA growth in line with Eagle Eye's
"Rule of 40" objective and Board expectations
-- The Group continues to win and expand its relationship with some of the world's largest
retailers.
Eagle Eye now has eight North American customers and a growing presence in Europe and Asia,
alongside its long-standing UK customers
-- Successful first year for Untie Nots as part of the Group, including expansion with key
customers
and major new wins, including entry into the UK market through a win with Morrisons, benefitting
from Eagle Eye's larger marketing reach and relationships
-- Investment in innovation to capitalise on the expanding market opportunity, including the
creation of a new AI offering, EagleAI, launched at the world's largest retail trade show,
NRF, in New York, last week
-- Awarded 7(th) place in the UK's Best Companies to Work for, and named the 7(th) most innovative
marketing technology company in the world in the TMW 100 awards
-- The Board is confident in delivering another year of profitable growth in line with its
expectations
The Group delivered another good performance during the Period,
achieving revenue and profit growth in line with its "Rule of 40"
objective (revenue growth + Adjusted EBITDA margin = 40+) . Revenue
grew 20%, to GBP24.1m (H1 FY23: GBP20.0m) and adjusted EBITDA*
increased 25% to GBP5.9m (H1 FY23: GBP4.7m), representing an EBITDA
margin of 24.3% (H1 FY23: 23.5%).
In line with Board expectations, reflecting seasonal flows and
payment of an element of the outstanding consideration in respect
to the Untie Nots acquisition, the Group had a net cash outflow of
GBP1.5m in the Period (H1 FY23: GBP2.0m inflow), resulting in a net
cash position of GBP7.8m at 31 December 2023 (30 June 2023:
GBP9.3m). The Board expects the Company to be cash generative in
the second half of the financial year.
Eagle Eye continued to expand across its target geographies in
the Period, securing a high level of new 'Wins', with highlights
including two five-year loyalty contracts in North America,
bringing Eagle Eye's total North American customer numbers to
eight, including the first win for EagleAI. Other wins include a
three-year contract with an Australian retailer, and a three-year
contract with The Ivy Collection in the UK, a popular group of
brasseries and cafes, to power its colleague discount scheme.
The Group's continued strong performance has been supported by
the deepening of existing relationships, delivering a continued
strong level of Net Revenue Retention. Highlights include expansion
with Woolworths in Australia, Hudson's Bay in North America, as
well as Asda in the UK.
The Company's newly acquired business, Untie Nots, continues to
perform strongly, expanding with existing customers, including
E.Leclerc, as well as entering new territories through the strength
of the Eagle Eye sales and marketing efforts, including deepening
Eagle Eye's relationship with Morrisons, adding Untie Nots'
AI-powered 'Challenges' product.
In the period, Eagle Eye signed a partnership agreement with
commercetools, a global leader in composable commerce headquartered
in Germany, with the intent to launch an integration-led
Partnership in early 2024. This will enable commercetools customers
to access the power of the Eagle Eye AIR platform and its
associated Loyalty and Promotional capabilities on their eCommerce
websites through a single, ready-to-use connection.
The Group's innovative AI-offering, EagleAI, was successfully
launched last week at the world's largest retail trade show, NRF in
New York and we were delighted to announce our first customer for
EagleAI last week.
During the Period, the Group moved up the rankings to 7th place
in the UK's Best Companies to Work for and was named the 7th most
innovative marketing technology company in the world in the recent
TMW 100 awards, where it also received the prestigious Judges Pick
accolade. These are recognition of the Group's continued embodiment
of the "Golden Rule": treating people as they'd like to be treated,
which is the guiding principle behind the Group's world-class
culture.
Outlook
Retailers around the world are continuing to assess how best to
p rovide highly relevant, personalised promotions and loyalty
offerings to their customers, including leveraging the benefits of
data science and AI. The proven ability of Eagle Eye's AIR platform
to deliver personalised promotions, in real-time, at the scale and
speed required by the world's largest retailers, continues to drive
a growing sales pipeline.
Supported by a scalable SaaS business model, high levels of
recurring revenues, strong margins and increasing levels of cash
generation, the Board remains confident in delivering results for
FY24 in line with management expectations.
Tim Mason, Chief Executive of Eagle Eye , said:
"Through the AIR platform's ability to deliver hyper
personalised messages to consumers at speed and scale, we are in a
strong position to be an enabler of the advancements taking place
in the world of retail marketing. With a growing addressable
market, a newly launched AI-powered offering, EagleAI, an
outstanding team and high-quality business model driving growth in
revenue, profits, and cash generation, we are extremely excited
about the future of Eagle Eye."
Notice of Results
The Group expects to announce its results for the six months
ended 31 December 2023 on Tuesday, 19 March 2024.
Notice of Investor event
Eagle Eye will be hosting an in-person presentation for
investors and equity research analysts on Thursday, 22 February
2024 in London, providing insight into the Group's growth strategy.
Should you wish to attend, please contact
eagleeye@almastrategic.com . No material new information will be
provided on the day.
Notes:
All financials are based on unaudited figures
*EBITDA has been adjusted for the exclusion of share-based
payment charges along with depreciation, amortisation, interest and
tax from the measure of profit. H1 2023 EBITDA figure has also been
adjusted to exclude costs associated with the acquisition of Untie
Nots.
** Net cash is defined as cash and cash equivalents less
financial liabilities and excludes placing proceeds raised
associated with the consideration for the acquisition of Untie
Nots, which was paid out following completion of the acquisition on
3 January 2023.
For further information, please contact:
Eagle Eye Solutions Group plc Tel: 0844 824 3686
Tim Mason, Chief Executive Officer
Lucy Sharman-Munday, Chief Financial
Officer
Investec (Nominated Advisor and Joint Tel: 020 7597 5970
Broker)
Corporate Finance: David Anderson / Nick
Prowting
Shore Capital (Joint Broker) Tel: 020 7408 4090
Corporate Finance: Daniel Bush / David
Coaten / Lucy Bowden
Corporate Broking: Henry Willcocks
Alma Strategic Communications Tel: 020 3405 0205
Caroline Forde / Hannah Campbell / Kinvara
Verdon
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 750 million personalised offers are executed via
the platform every week, and it currently hosts over 200 million
individual loyalty members for businesses all over the world. We
are 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 2023, the Group acquired France-based Untie Nots, an
AI-powered personalised promotions business, adding Carrefour, E.
Leclerc, Auchan and other leading brands to its European customer
base.
Web - www.eagleeye.com
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