Trading Update

This announcement contains inside information as stipulated under the UK version of the market abuse regulation (EU no. 596/2014) as it forms part of UK law by virtue of the European Union (withdrawal) act 2018 (as amended from time to time).

19 July 2022

Eagle Eye Solutions Group plc

("Eagle Eye", the "Group", or the "Company")

FY2022 Trading Update

Strong trading drives 41% growth in ARR

Eagle Eye (LSE: "EYE"), a leading SaaS technology company that creates digital connections enabling personalised, real-time marketing, is pleased to provide an update on the Group's trading for the year ended 30 June 2022 ("the Year").

Financial Highlights

Operational Highlights

·      Trading in the final two months of the Year remained strong and the Board is pleased to report significant growth in revenues and adjusted EBITDA ahead of previous upwardly revised market expectations

·      39% revenue growth driven by all areas of the customer strategy: Win, Transact and Deepen

·      The Group continues to demonstrate the strength of its SaaS model: ARR up 41% to £23.9m, NRR increased to 145% and maintained low churn at less than 1%, providing a strong basis for continued expansion

·    56% of ARR now comes from North America, driven by the successful implementation and go-live of our second significant customer in this geography, demonstrating the strong progress being achieved in what is expected to be the world's largest digital promotions market

·      Strong cash performance, ahead of expectations, driven by the increase in adjusted EBITDA

·      Awarded three star accreditation by Best Companies to Work For 2022

·     Continued investment in people and operations to support further growth and capitalise on the global shift towards personalised digital marketing by retailers

·     Strong new business pipeline across all geographies

Eagle Eye has benefitted during the Year from significant new customer wins across multiple geographies, the accelerated ability to take these customers live, continued deepening of contractual relationships with existing customers, and the acceleration of digital strategies in the post-pandemic environment.

Progress in the U.S. has been particularly encouraging, and the Group now has five clients in North America including two through Eagle Eye's influential partner, Neptune Retail Solutions. 56% of the Group's ARR now comes from North America, demonstrating the strong progress being achieved in what is expected to be the world's largest digital promotions market, due to the huge value of promotions by Consumer Packaged Goods businesses. The sales pipeline in the North America continues to expand, both directly and through partners, and presents an exciting opportunity for the Group. Eagle Eye continues to invest in its international capabilities to ensure it has the ability to deliver on revenue growth.

A number of significant customer contracts moved into the transactional phase during the Year. These included Woolworths in Australia, Staples US Retail and Virgin Red. Several long-standing customers extended their use of the AIR platform, including Asda, with the trial of a new loyalty programme, Asda Rewards, and Pret a Manger with the expansion of the coffee subscription service into France and the U.S., as well as the launch of a trial loyalty scheme, Pret Perks. The successful deepening within existing customers can be seen in the Group's high levels of NRR.

Outlook

In the current difficult economic environment, promotions are more important than ever. The retail industry is becoming increasingly aware that data driven, personalised promotions are one of the most effective ways to drive increased trade. The ability of our AIR platform to deliver 1:1 marketing, in real time, at an enterprise scale, means we are well positioned to address this growing customer need.

Eagle Eye enters FY2023 in a significantly stronger position, with a growing presence in North America, Australia and New Zealand alongside its long-standing European customers.

The Group continues to successfully manage inflationary pressures and the healthy underlying growth and flexibility of the Company's business model mean that management can invest into the business and people with confidence to support future growth.

The Group's strong new business pipeline, strong SaaS metrics, and successful record of expansion with customers provides a growing recurring revenue base which, coupled with supportive market drivers, underpins the Board's confidence in the long-term success of Eagle Eye.

Notice of Results

The Group expects to announce its results for the year ended 30 June 2022 on Wednesday, 21 September 2022.

Tim Mason, Chief Executive of Eagle Eye, said:

"This has been an incredible year of growth at Eagle Eye, driven by the dedication of our fantastic people and the quality of our offering. The growth of our international customer base, particularly in the US, alongside our continued strong and growing presence in the UK, Europe and Australia, demonstrates our ability to capitalise on the digital transformation taking place in the world of retail marketing.

"These results could not be achieved without our stellar team, and we were delighted to receive a 3-star accreditation rating from Best Companies to Work For, demonstrating that we are collectively creating a 'purple' place to work.

"We continue to invest in our people and AIR platform, in line with revenue growth, to ensure that we remain at the forefront of this growing industry. We enter the new financial year with a strong pipeline and look to the future with confidence."

Notes

All financials based on unaudited figures

* EBITDA has been adjusted for the exclusion of share-based payment charges along with depreciation, amortisation, interest and tax from the measure of profit

About Eagle Eye

Eagle Eye is a leading SaaS technology company transforming marketing by creating digital connections that enable personalised performance marketing in real time through coupons, loyalty, apps, subscriptions and gift services.

Eagle Eye AIR enables the secure issuance and redemption of digital offers and rewards at scale, across multiple channels, enabling a single customer view. We create a network between merchants, brands and audiences to enable customer acquisition, interaction and retention at lower cost whilst driving marketing innovation.

The Company's current customer base comprises leading names in UK Grocery, Retail, Leisure and Food & Beverage sectors, including Asda, Sainsbury's, Tesco, Waitrose and John Lewis & Partners, Virgin Red, JD Sports, Pret A Manger, Greggs, Mitchells & Butlers, Pizza Express; in North America, Loblaws, Shoppers Drug Mart, Southeastern Grocers and Staples US Retail and in Australia & New Zealand, Woolworths Group and The Warehouse Group.