Trading Update

MKTUPDTE

Fri, Jan 13 2023 08:30 am

MARKET RELEASE

Trading update

13 January 2023

TradeWindow is today providing a trading update for FY2023 as well as revenue and EBITDA guidance to the end of FY2025.

Trading update for FY2023

At TradeWindow’s interim results on 17 November 2022, TradeWindow updated the market on encouraging demand for its products including winning a large number of contracts that include implementations.

TradeWindow continues to experience strong demand. However, in line with the risk factors highlighted in its FY2023 guidance, some implementations continue to take longer than expected. This means revenue previously expected in FY2023 will be pushed into FY2024.

TradeWindow now expects trading revenue for the FY2023 year to be approximately $4.8 million to $5.1 million and total income to be approximately $5.5 million to $5.8 million. The previous guidance range for trading revenue was $5.5 million to $7.0 million, and total income was $6.0 million to $7.5 million.

TradeWindow CEO AJ Smith said: “Revenue expectations for the FY2023 year have been impacted primarily by the timing of implementations concentrated on a single product. We are experiencing strong demand in new and existing markets alongside positive customer feedback on our products and expect this to continue in the coming years. Momentum is strong with important developments announced in recent months including our global partnership with US-based FoodChain ID.

“We have made a number of improvements to refine sales and onboarding processes to speed up implementations and the short-term focus to more quickly translate sales to revenue remains high. Alongside this, we continue to focus on developing our products to support efficiency and seamless customer delivery as we continue to scale.”

Revenue and EBITDA guidance to the end of FY25

TradeWindow expects revenue guidance to be approximately $10.4 million for FY2024 and approximately $20.2 million for FY2025. TradeWindow is targeting monthly EBITDA breakeven by the end of FY2025.

The guidance in this statement remains subject to ongoing geopolitical and environmental uncertainty including the impact of ongoing supply chain challenges, and the timing of customer decisions and implementations.

ENDS

Released for and on behalf of TradeWindow by:
Deidre Campbell
Chief Financial Officer

For further information:

Investors
Andrew Balgarnie
TradeWindow
+64 27 227 3541

Media
Coran Lill
The Project
+64 27 342 3836

About TradeWindow:
Founded in December 2018, TradeWindow is an NZX-listed software company that provides digital solutions for exporters, importers, freight forwarders, and customs brokers to drive productivity, increase connectivity, and enhance visibility. TradeWindow’s software solutions integrate to form a cohesive digital trade platform that enables customers to more efficiently run their back-end operations, share information and securely collaborate with a global supply chain made up of customers, ports, terminals, shipping lines, banks, insurance companies, and government authorities.
www.tradewindow.io

Important note on future performance
This announcement may include forward-looking statements about TradeWindow and the environment in which TradeWindow operates, such as indications of, and guidance on, future earnings and financial positions and performance. You are strongly cautioned not to place undue reliance on forward-looking statements, particularly in light of the significant volatility, uncertainty and disruption currently being experienced in global markets. Forward-looking information is inherently uncertain and subject to contingencies, known and unknown risks and uncertainties and other factors outside of TradeWindow's control, and may involve significant elements of subject judgement and assumptions as to future events which may or may not be correct. Forward-looking statements may also assume the success of TradeWindow's business strategies. The success of any of these strategies is subject to uncertainties and contingencies beyond TradeWindow's control, and no assurance can be given that any of the strategies will be effective or that the anticipated benefits from the strategies will be realized in the period for which the forward looking statements may have been prepared or otherwise. No assurance can be given that actual outcomes or performance will not materially differ from the forward-looking statements. A number of important factors could cause TradeWindow's actual results or performance to differ materially from these statements, particularly as a result of the impacts of the current economic environment. The forward-looking statements are based on information available to TradeWindow as at the date of this announcement. Except as required by law or regulation (including the NZX Listing Rules), TradeWindow undertakes no obligation to provide any additional or updated information whether as a result of new information, future events or otherwise.