Eagle Eye, a leading SaaS technology company that creates digital connections enabling personalised, real-time marketing through coupons, loyalty, apps, subscriptions and gift services, is pleased to announce its results for the six months ended 31 December 2018).
Financial highlights (all figures have been re-stated under IFRS15 & 16)*:
- Group revenue increased by 30% to £8.0m (H1 2018: £6.2m)
- Eagle Eye AIR platform revenue growth of 41% to £7.5m (H1 2018: £5.3m) being 93% of Group revenue (H1 2018: 85% of Group revenue)
- Eagle Eye AIR platform Like For Like (“LFL”) revenue increased by 36% on H1 2018**, demonstrating strong traction with existing customer base
- Revenue from subscription fees and transactions over the network of £5.8m, an increase of 23%, (H1 2018: £4.7m) represented 72% of total revenue (H1 2018: 76%)
- Gross margin improved to 93% (H1 2018: 88%); Gross margin relating to AIR maintained at 97% (H1 2018: 97%)
- Adjusted EBITDA*** loss reduced materially to £0.3m (H1 2018: £1.4m loss)
- Net debt of £(1.8)m at 31 December 2018 (30 June 2018: £0.4m net cash)
Operational highlights:
- Redemptions and interactions volumes increased by 414% to 431m (H1 2018: 84m)
- Blue-chip client wins: Waitrose (post Period-end) and Burger King
- Customer churn rate by value reduced to 0.4% (H1 2018: 1.5%)
- Expansion of network audience partners, with the addition of Wuntu, Kids Pass, Blue Light Card
- Continued product innovation to increase speed and capability of platform, investing £1.9m in H1 2019 (H1 2018: £1.9m)
- Traction from our recently launched products, including adoption of the Digital Wallet by additional Tier 1 customers and sales of the Eagle Eye App and Gift services
- Good progress in transition to the Google Cloud Platform (“GCP”), our lead ‘Better, Simpler, Cheaper’ initiative
Outlook
- The Group’s current trading remains in line with the Board’s expectations
- Growth in revenues and volumes is expected to continue into H2 2019, from the annualisation of Tier 1 contracts, the impact of significant new wins and the strong growth of the audience network
- Current funding position is comfortable and sufficient headroom remains with the Group’s £5m banking facility to support existing growth plans
Tim Mason, Chief Executive of Eagle Eye, said: “We are pleased to report on a first half in which we have delivered against all our stated objectives. We continue to make strong financial and operational progress. We are delighted to add Waitrose and Burger King to our client roster, giving us further evidence that major blue chip companies see the Eagle Eye AIR platform as a key part of competing in today’s digital retail environment.
“With high levels of recurring revenue, increasing transaction volumes and a significant sales pipeline, the Board looks to the remainder of the year and beyond with confidence.”
*A full explanation of the IFRS 15 “Revenue from contracts with customers” & IFRS 16 “Leases” impact is included in the Financial Review. Figures included in the trading update dated 23 January 2019 were on a pre-IFRS 15 & 16 basis
** Like for like growth in AIR revenue (excluding customers won in either period)
***Adjusted EBITDA loss excludes share-based payment charges along with depreciation, amortisation, interest and tax from the measure of profit.
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