Eagle Eye makes solid progress in first four months of financial year
Real-time marketing technology company Eagle Eye Solutions Group told shareholders that its successful expansion strategy from the 2019 financial year had continued to deliver in the first four months of the current year.
The AIM-traded firm had reported a year in which it expanded its international reach and customer base, grew its platform revenues and transaction volumes, moved operations to the Google Cloud, and broke through to profitability on adjusted EBITDA terms in its results for the 12 months ended 30 June.
At its annual general meeting on Thursday, the company told attendees that the continued execution of its strategy had seen revenue grow 24% year-on-year in the first four months of the current year, with revenue delivered by the AIR platform ahead 25%.
Non-executive chairman Malcolm Wall said that growth had been driven by the impact of wins at the end of the last financial year, as well as transaction growth from brand campaigns through its food and beverage network.
“In addition, in October 2019 we successfully completed the full roll out of our loyalty service for an existing tier 1 customer, demonstrating our continued ability to deepen our client relationships by providing additional revenue generating services,” the board said in its statement.
“The period has delivered an adjusted EBITDA profit, in line with management expectations, demonstrating considerable progress on the prior year.
“We previously noted that several revenue generating customer engagements secured during the 2019 financial year would progress to multi-year contracts in 2020.”
Wall said the company was thus “delighted” to announce the successful evolution of one of those with a leading New Zealand retailer in the current quarter.
He said that, as the firm had progressed through the first months of the year, the number of revenue-generating initial customer engagements across the group had continued to grow, boding well for future multi-year contracts.
“Our move to the Google Cloud platform has transformed the way in which we can launch into new geographies, no longer requiring the significant upfront investment in technology and capacity.
“We are now able to flex our capacity as customers require, matching costs with revenue.”
That ensured a more efficient financial and operational model, removing a “significant barrier” to Eagle Eye’s global expansion, the board said, adding that the enhanced capability had already started to pay dividends in Australia, and paved the way for further future expansion.
“We are making good progress in the US, working closely with our partner, News America Marketing, the premier marketing services company in the US and Canada.
“Given the sheer scale of the paper couponing and promotions market in the US, we believe the opportunity in this territory to be significant and look forward to reporting further progress as we move through the current financial year.
“The group's funding position and headroom within its £5m banking facility with Barclays are in line with management expectations and continue to be sufficient to support the Group's existing growth plans.”
Looking ahead, Wall said the successful go-live of two UK tier 1 implementations in the second quarter, combined with the continued growth of the existing customer base, was expected to drive a “strong uptick” in transaction volumes and revenue in the rest of the quarter, in line with management expectations.
“We have an increasing number of promising revenue generating customer engagements, which combined with our high levels of recurring revenue, very low levels of customer churn and expanding market opportunity provide the board with confidence as we look to the remainder of the year and beyond.”
At 1448 GMT, shares in Eagle Eye Solutions Group were up 4.14% at 163.5p.