Announcement
FLLYR: GEO: FY19 Preliminary Results
08:31am
GEO
23/08/2019 08:31
FLLYR
PRICE SENSITIVE
REL: 0831 HRS Geo Limited
FLLYR: GEO: FY19 Preliminary Results
23 August 2019
30 JUNE 2019 UNAUDITED FINANCIAL RESULTS
GEO secures new funding to support path to profitability.
Delays in technology releases defer revenue growth and passage to
profitability.
Major shareholder North Ridge Partners subscribes to $1.5m convertible note
to support the continued path to top line growth and profitability.
Summary of attached unaudited Financial Result for Year Ended 30 June 2019
and Commentary:
o FY19 recurring (subscription) revenues increase 21.6% to $4.9m from $4.0m
in FY18 as product repricing initiatives drive strong increases in average
revenue per user from $11.96 to $17.09 per month.
o Total revenue including non-recurring items rises 8.4% to $5.6m with core
product revenue growth partially offset by lower training and implementation,
and the timing of recognition of grants.
o EBITDA loss narrows to $1.4m from $2.6m in FY19. Net loss of $5.5m (36.7%
improvement on FY18), which includes a previously announced $3.2m non-cash
charge from writing down Geo for Sales intangibles.
o Subscription revenues for the core Geo product increase 37% with 26.9%
decrease in licence numbers to 16.3k as customers move to market rates. Geo
for Sales revenues decrease 6.2% with licence numbers falling 31.7% to 0.9k
amid regulatory changes to the field sales market in Victoria.
o New Geo product released to market in Q4 after delay requiring a deferral
of digital marketing spend and impacting on planned licence growth. Marketing
spend has been re-started, with encouraging early signs in key customer
acquisition metrics.
o Cash reserves $1.0m at year-end; North Ridge Partners agrees to subscribe
for a $1.5m convertible note to facilitate the transition to profitability.
o Geo launches a sale and/or buyback of small shareholder parcels to
streamline its register and reduce both administration costs and trading
volatility.
Roger Sharp
Chairman
End CA:00339643 For:GEO Type:FLLYR Time:2019-08-23 08:31:14
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