Results for the 6 months to 31 December 2022

1 March 2023

RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2022

SOFT Q2 – SUBSEQUENT RECOVERY & CONFIDENT OUTLOOK

The following is a summary of the attached Results Announcement Commentary:

GEO (NZX.GEO) today announces its financial results for the first half of the 2023 financial year.
Financial & Operational Highlights for the Six Months to 31 December 2022*:
• Revenues: $1.63m down 3.3% on PCP** due to soft Q2.
• Expenses: $4.99m up 57% on PCP reflecting increased tech and product spend and completion of 18-month investment program (tech costs now trending down).
• EBITDA: $2.74m loss +180% on PCP.
• Platform: Funds raised in 2021 have been used to re-engineer every customer touchpoint, enabling GEO to focus on a single, scalable platform driving faster revenue growth with reduced churn.
• Revenue drivers: Before platform upgrades, new customer additions were the sole revenue lever - today GEO has three levers to drive growth:
1. new customer sales;
2. product price increases; and
3. new revenue-generating product features.
• New revenue features: Automated SMS notifications and payment platform are being rolled out between now and 30 June. These are GEO's first incremental revenue streams outside of base subscriptions and are features with strong market validation and existing customer usage.
• Balance sheet: GEO previously guided $3.5m in incremental capital needed to break even. Subject to no material change to market conditions this outlook remains unchanged, with capital raising at an advanced stage:
1. after extensive diligence, Pioneer Capital will provide a $2.5m high-yield debt facility conditional upon equity issue below.
2. $1m+ pro rata equity issue to follow.
• Outlook: The Board has strong confidence in the outlook with a significant component of CY23 growth already locked in (initial product price increases rolled out and new incremental product feature revenues). Calendar year end expectations of $385k minimum MRR (representing >40% MRR Growth), cash burn run rate $110k and year-end cash balance ~$1.2m.
• Post balance date: MRR up 7% since 31 December 2022 as new platform allowed for progressive pricing increases.
* All figures are for the six months ended 31 December 2022 unless otherwise stated
**Prior Corresponding Period

For more information:
Tim Molloy
Chief Executive Officer
Tel: +61 411 592 180
Email [email protected]

ABOUT GEO
GEO is a leading SaaS business that provides job management platforms for trades, field and home service businesses. The market for GEO’s products is growing quickly as the global mobile workforce expands. Geo’s simple yet powerful software platform helps business owners reduce the complexity of running their business whilst saving time and improving cashflow.
For more information: www.geoop.com

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Announcement PDF