PERTH, Australia, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Locafy Limited (Nasdaq: LCFY, LCFYW) (“Locafy” or the “Company”), a globally recognized software-as-a-service technology company specializing in ”entity-based” search engine optimization (SEO), today reported financial results for the fiscal fourth quarter and full year ended June 30, 2024. All financial results are reported in Australian Dollars (AUD).
Management Commentary
“Our fiscal 2024 was truly a transformational period for Locafy,” said CEO Gavin Burnett. “The launch of our enhanced performance-based revenue model, which aligns more closely with how customers engage with our products compared to traditional sponsored advertising, has given us strong momentum in the evolving SEO landscape. Our services revenue surged by 231%, driven by a several commercial opportunities with publishers and resellers seeking “on-page” SEO solutions for their customers. The implementation of our proprietary Keystone technology to these customer websites has helped combat the decline in website traffic that many online publishers and businesses in general are experiencing, further solidifying our industry presence and credentials.
“Operationally, Locafy has heavily reduced its cost base, primarily from a decrease in headcount and technology expenses, which was made possible through increased automation in product deployments and streamlining products being offered to the market. The full impact of these cost reductions will be fully reflected in fiscal 2025.
“As we move into fiscal 2025, we believe that we are well-positioned to expand our suite of technologies in response to shifts in the SEO landscape. In an era of AI-driven content growth, we believe Locafy’s solutions will play a key role in helping our clients secure and maintain strong search positions. We are confident that our advanced capabilities will not only drive Locafy's growth but also deliver superior results for our customers. We look forward to sharing more progress in the coming quarters.”
Fiscal 2024 and Recent Operational Highlights
2024 Fiscal Fourth Quarter Financial Results
Results compare the 2024 fiscal fourth quarter end (June 30, 2024) to the 2023 fiscal fourth quarter end (June 30, 2023) unless otherwise indicated. All financial results are reported in Australian Dollars (AUD).
Fiscal Full Year 2024 Financial Results
Results compare the 2024 fiscal year end (June 30, 2024) to the 2023 fiscal year end (June 30, 2023) unless otherwise indicated. All financial results are reported in Australian Dollars (AUD).
Key Performance Indicators (KPIs)
As part of its updated go-to-market strategy, Locafy has shifted its focus from traditional KPIs, which are no longer seen as adequate indicators of long-term success. The company now prioritizes Monthly Recurring Revenue (MRR) as the key measure of performance across its platform. Unless otherwise stated, KPI data is as of the fiscal fourth quarter of 2024 (ended June 30, 2024).
For more information, please see Locafy’s investor relations website at investors.locafy.com.
About Locafy
Founded in 2009, Locafy's (Nasdaq: LCFY, LCFYW) mission is to revolutionize the US$700 billion SEO sector. We help businesses and brands increase search engine relevance and prominence in a specific proximity using a fast, easy, and automated approach. For more information, please visit www.locafy.com.
About Key Performance Indicators
Locafy defines MRR as the value of all recurring subscription contracts with active entitlements as at the end of each month. MRR across a period is the average of each month’s MRR within that period.
Locafy’s recent platform upgrade caused a significant change to the calculation of average page metrics, and Locafy management no longer views total active reseller count and total end user count as relevant indicators of the performance of Locafy’s technology. The Company may introduce additional KPIs in future quarters if deemed relevant long-term indicators of performance.
Forward-Looking Statements
This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “subject to”, “believe,” “anticipate,” “plan,” “expect,” “intend,” “estimate,” “project,” “may,” “will,” “should,” “would,” “could,” “can,” the negatives thereof, variations thereon and similar expressions, or by discussions of strategy, although not all forward-looking statements contain these words. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks, and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors and risk factors, including those discussed in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including the Company’s Annual Report on Form 20-F filed with the SEC on November 12, 2024, and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Investor Relations Contact
Matt Glover or Matt Szot
Gateway Investor Relations
(949) 574-3860
[email protected]
-Financial Tables to Follow- |
Locafy Limited Consolidated Statement of Profit or Loss and Other Comprehensive Income | |||||||||
3 months to 30 Jun 2024 AUD $ (unaudited) | FY2024 AUD $ (audited) | FY2023 AUD $ (audited) | |||||||
Revenue | 1,203,566 | 4,151,088 | 5,376,693 | ||||||
Other income | 29,119 | 61,360 | 993,493 | ||||||
Technology expense | (214,331 | ) | (890,778 | ) | (1,718,974 | ) | |||
Employee benefits expense | (916,151 | ) | (3,238,568 | ) | (5,267,246 | ) | |||
Occupancy expense | (26,360 | ) | (101,415 | ) | (113,572 | ) | |||
Advertising expense | (7,895 | ) | (187,046 | ) | (318,492 | ) | |||
Consultancy expense | (195,924 | ) | (853,850 | ) | (874,638 | ) | |||
Depreciation and amortization expense | (394,339 | ) | (1,473,999 | ) | (1,355,170 | ) | |||
Other expenses | (21,864 | ) | (68,826 | ) | (213,051 | ) | |||
Impairment of financial assets | (339,382 | ) | (272,236 | ) | (295,262 | ) | |||
Operating loss | (883,561 | ) | (2,874,270 | ) | (3,786,219 | ) | |||
Financial cost | (16,539 | ) | (114,199 | ) | (105,367 | ) | |||
Loss before income tax | (900,100 | ) | (2,988,469 | ) | (3,891,586 | ) | |||
Income tax expense | - | - | - | ||||||
Loss for the period | (900,100 | ) | (2,988,469 | ) | (3,891,586 | ) | |||
Other comprehensive income | |||||||||
Items that will be reclassified subsequently to profit and loss | |||||||||
Exchange differences on translating foreign operations | 12,274 | 3,023 | (23,010 | ) | |||||
Total comprehensive loss for the period | (887,826 | ) | (2,985,446 | ) | (3,914,596 | ) | |||
Earnings per share | |||||||||
Basic loss per share | (0.66 | ) | (2.30 | ) | (3.69 | ) | |||
Diluted loss per share | (0.66 | ) | (2.30 | ) | (3.69 | ) |
Locafy Limited Consolidated Statement of Financial Position | ||||||||
As at 30 Jun 2024 AUD $ (audited) | As at 31 Dec 2023 AUD $ (audited) | As at 30 Jun 2023 AUD $ (audited) | ||||||
Assets | ||||||||
Cash and cash equivalents | 275,875 | 724,581 | 3,174,700 | |||||
Trade and other receivables | 904,564 | 868,492 | 1,288,513 | |||||
Other assets | 294,355 | 453,763 | 356,782 | |||||
Current assets | 1,474,794 | 2,046,836 | 4,819,995 | |||||
Property, plant and equipment | 196,929 | 317,618 | 380,018 | |||||
Right of use assets | 280,810 | 268,558 | 314,596 | |||||
Intangible assets | 4,204,966 | 4,022,887 | 3,720,272 | |||||
Non-current assets | 4,682,705 | 4,609,063 | 4,414,886 | |||||
Total assets | 6,157,499 | 6,655,899 | 9,234,881 | |||||
Liabilities | ||||||||
Trade and other payables | 1,252,503 | 1,289,251 | 2,507,573 | |||||
Borrowings | 271,600 | 271,600 | 301,600 | |||||
Provisions | 211,300 | 226,547 | 214,465 | |||||
Accrued expenses | 496,749 | 357,776 | 512,611 | |||||
Lease liabilities | 128,669 | 120,287 | 85,165 | |||||
Contract and other liabilities | 147,640 | 139,120 | 152,211 | |||||
Current liabilities | 2,508,461 | 2,404,581 | 3,773,625 | |||||
Lease liabilities | 203,909 | 269,500 | 332,578 | |||||
Provisions | 133,399 | 124,009 | 138,721 | |||||
Non-current liabilities | 337,308 | 393,509 | 471,299 | |||||
Total liabilities | 2,845,769 | 2,798,090 | 4,244,924 | |||||
Net assets | 3,311,730 | 3,857,809 | 4,989,957 | |||||
Equity | ||||||||
Issued capital | 48,588,888 | 47,805,798 | 47,930,486 | |||||
Reserves | 2,925,679 | 2,696,635 | 2,404,933 | |||||
Accumulated losses | (48,202,837 | ) | (46,644,624 | ) | (45,345,462 | ) | ||
Total equity | 3,311,730 | 3,857,809 | 4,989,957 |
Locafy Limited Consolidated Statement of Cash Flows | |||||||||
3 months to 30 Jun 2023 AUD $ (unaudited) | FY2024 AUD $ (audited) | FY2023 AUD $ (audited) | |||||||
Cash flows from operating activities | |||||||||
Receipts from customers (inclusive of GST) | 605,855 | 3,098,793 | 4,463,725 | ||||||
Payments to suppliers and employees (inclusive of GST) | (475,965 | ) | (4,658,997 | ) | (7,005,510 | ) | |||
R&D Tax Incentive and government grants | - | 561,501 | 386,181 | ||||||
Financial cost | (16,539 | ) | (114,199 | ) | (105,367 | ) | |||
Net cash used by operating activities | 113,351 | (1,112,902 | ) | (2,260,971 | ) | ||||
Cash flows from investing activities | |||||||||
Purchase of intellectual property | (492,943 | ) | (2,166,587 | ) | (1,617,446 | ) | |||
Purchase of property, plant and equipment | - | - | (2,170 | ) | |||||
Maturity of term deposit | - | 40,000 | - | ||||||
Net cash used by investing activities | (492,943 | ) | (2,126,587 | ) | (1,619,616 | ) | |||
Cash flows from financing activities | |||||||||
Proceeds from issue of shares | 202,304 | 769,936 | 3,295,822 | ||||||
Payment for share issue costs | (22,310 | ) | (313,643 | ) | (403,373 | ) | |||
Repayment of borrowings | - | (30,000 | ) | (6,500 | ) | ||||
Leasing liabilities | (29,228 | ) | (85,165 | ) | (32,673 | ) | |||
Net cash from financing activities | 150,766 | 341,128 | 2,853,276 | ||||||
Net decrease in cash and cash equivalents | (228,826 | ) | (2,898,361 | ) | (1,027,311 | ) | |||
Net foreign exchange difference | 20,111 | (464 | ) | 118,276 | |||||
Cash and cash equivalents at the beginning of the period | 484,590 | 3,174,700 | 4,083,735 | ||||||
Cash and cash equivalents at the end of the period | 275,875 | 275,875 | 3,174,700 |