Revised Guidance and Update on Strategic Review

9 November 2023

GEO Revises Guidance and Provides Update on Strategic Review

Further to NZ RegCo’s advice that, at the request of Geo Limited (GEO, Company), it had placed a trading halt on Geo’s
ordinary shares on 7 November 2023, GEO provides the following market update.

Background

GEO announced on 29 August 2023 that it was launching a strategic review. The Company’s Board has approved changes to
move immediately to EBITDA profit, and has decided to launch an immediate formal process to assess buyer interest in
acquiring the Company (or a similar strategic transaction).

Update on Trading and Guidance

Annualised Recurring Revenue (ARR) is expected to be in the range NZ$4.0m - $4.2m at 31 December 2023, representing
growth of 20-25% over the ARR run-rate as at 30 June 2023 and driven largely from recent price increases.
With its platform rebuild largely complete, new features in market and price increases implemented, GEO is undertaking
further cost reductions. As a result, the Company now expects to achieve a sustainable positive EBITDA run rate (including
capitalised R&D) by 31 December 2023.
Excluding the impact of R&D capitalisation, this equates to a ~$20-30k monthly operating and investing cash flow deficit. The
Company will seek to eliminate this ongoing minor cash burn through final efficiencies in its overhead cost base in early
calendar 2024.
Achieving breakeven will require a range of cost reductions, including in customer acquisition activity. This will reduce short
term growth (see Risks, below). GEO will assess and optimise the balance between revenue growth and bottom-line
profitability once EBITDA breakeven has been achieved.

Sale Process

After consideration of the updated financial outlook and conclusions from its strategic review, the Board has decided to
launch an immediate formal process to assess buyer interest in the Company. There is no guarantee that a transaction can
be completed on satisfactory terms; however, in the Board’s view, the initial interest received justifies launching a formal
process.


Balance Sheet

The Company had previously guided to achieving EBITDA breakeven by the close of FY24 within current cash reserves.
With the accelerated move to EBITDA positive by December 2023, cash at 31 December 2023 is projected to be in the range
of $600k - $800k after one-off restructuring costs.
GEO notes the need to cover the modest remaining monthly cash burn ($20k - $30k per guidance above) and the potential
one-off legal, expert and advisory costs associated with any transaction process. To ensure the Company has a stronger
liquidity buffer as it moves into a sale, GEO is investigating putting in place a small funding facility.
On 8th November 2023, Pioneer Capital clarified the definition of 'normal operating cashflows' with respect to covenants in
its loan agreement. Until now, GEO understood that the definition excluded one-off restructuring costs. Having considered
that advice, we are now aware that a technical breach of a facility covenant occurred due to the one-off restructuring costs
incurred in September 2023.
Pioneer advises that the breach has been remedied to their satisfaction and there is no continuing event of default.

Risk Profile

The ARR outlined above reflects both new features and one-off price increases, and assumes that customer retention
remains consistent with current levels. With future price increases likely to be lower, and customer acquisition activity
reduced, the rate of growth experienced in H1 24 is unlikely to be sustained. Further, the additional cost reductions being
implemented to achieve EBITDA breakeven will result in a smaller team with some potential for heightened operational risk.

For more information:
Tim Molloy
Chair
AU: +61 411 592 180
NZ: +64 21 284 0180
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