Final results for the year ended 30 June 2024

Strong growth in ARR and EBITDA, exiting the year with increasing win momentum

Eagle Eye, (LSE: “EYE”), a leading SaaS technology company that creates digital connections enabling personalised, real-time marketing, is pleased to announce its audited results for the financial year ended 30 June 2024 (the “Year”).

FY 2024 Financial Highlights

• Group Revenue UP 11% to £47.7m (FY23: £43.1m)
• Recurring revenue (subscription fees and transactions) DOWN 1ppt to 79%
• Period end Annual Recurring Revenue* (ARR) UP 19% to £39.7m (FY23: £33.3m)
• Net Revenue Retention** 109% DOWN 28ppt
• Adjusted EBITDA*** UP 28% to £11.3m (FY23: £8.8m)
• Adjusted EBITDA margin UP 4ppt to 24%
• Profit after tax up 383% to £5.7m (FY23: £1.2m)
• Closing net cash**** position up 12% to £10.4m (FY23: £9.3m)

*Period End Annual Recurring Revenue is defined as period exit rate for recurring subscription and transaction revenue plus any professional services contracted for more than 12 months hence and secured new wins, excluding any seasonal variations and lost contracts.

**Net retention rate is defined as the improvement in recurring revenue excluding new wins in the last 12 months.

***EBITDA has been adjusted for the exclusion of share-based payment charges along with depreciation, amortisation, interest and tax from the measure of profit. EBITDA has also been adjusted to exclude costs and changes in the fair value of consideration associated with the acquisition of EagleAI.

****Net cash is defined as cash and cash equivalents less financial liabilities.

A year of profitable growth, with new customers secured across all key geographies as retailers increasingly look to drive customer loyalty through personalised engagement, at scale

• New customers secured in the UK, North America and Australasia and expansion with existing customers including Tesco, Morrisons and Asda in the UK, Hudson’s Bay in North America and Woolworths in Australia and New Zealand.
• Exited the Year with strong ARR, up 19% year-on-year.
• Group revenue increased 11% to £47.7m, with license and transaction revenues growing half-on-half and year-on-year.
• Maintained strong cost discipline, delivering adjusted EBITDA ahead of original market expectations, increasing by 28% to approximately £11.3m.
• Net cash position at Year end of £10.4m, providing Eagle Eye with the continued ability to invest to support future growth to achieve the Group’s ambitions.

Continued innovation of EagleAI to expand the Group’s addressable market

• EagleAI (formerly Untie Nots) delivered new customer wins including Tesco, Morrisons, Picard Surgeles and Chronodrive, and expansion with existing customers Carrefour and E.Leclerc, providing significant contribution to the growth in ARR.
• Ongoing innovation will result in a growing number of EagleAI offerings, including ‘Personalised Flyer’, an AI powered personalised digital flyer to be launched in 2025, with E.Leclerc secured as the first customer post Year end.

Contract win momentum provides a positive outlook for FY25 and beyond

• A number of new customer wins secured in the final month of the Year and at the start of H1 2025, including the Group’s first customer in Vietnam, RONA in Canada, Waterstones Booksellers Limited in the UK and retailers in new industries of Fuel and Convenience and eCommerce in New Zealand and France respectively.
• These wins will commence revenue contribution through the course of FY25, providing a strong foundation for FY25 onwards.
• With a significant and growing sales pipeline across all geographies, and initiatives introduced to further enhance the win rate, the Board is confident in the continued growth and strong performance of the Group.

Tim Mason, Chief Executive of Eagle Eye, said:

“Eagle Eye’s reputation for delivering personalised marketing at scale, combined with the new opportunities presented by our entry into data science via EagleAI, provides a strong foundation for long-term growth. Our significant sales pipeline, which has doubled over the course of the year, includes some of the largest retailers in the world. The new initiatives to enhance win conversion rates have already started to bear fruit and position us well for continued success. The wins secured at the end of the Year and into FY25 provide a strong basis for on-going growth. With robust cash generation and a growing customer base globally, we are confident about the future.”

In the video below, CEO Tim Mason outlines Eagle Eye’s business model and future growth plans