Locafy Reports Fiscal Fourth Quarter and Full Year 2024 Results
2024年11月13日 - 6:05AM
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
- Signed its first
contracts related to the Company’s Article Accelerator technology
to media publishers in the U.S. and Australia. Given the recent
seismic changes in the SEO landscape which forced many publishers
to remove “sponsored content” articles from their high-authority
editorial websites, Locafy believes it has laid the foundation for
its Article Accelerator solution to be packaged and marketed as a
credible alternative to help restore lost revenues for those
publishers.
- Introduced the
Hotfrog Proximity Page, a new application developed in partnership
with Yext, allowing businesses to create dynamic, SEO-optimized
landing pages to enhance their online presence. The application
integrates with Yext’s platform, ensuring real-time updates and
consistency across digital listings. The Company intends to build
on this product in fiscal 2025 to enable connectivity with
additional citation management partners.
- Signed a series of
agreements with Localista, acquiring the digital assets of Scoop,
providing SEO consulting services, and adding Localista's sales
team as a reseller of its Article Accelerator product. These deals
aim to enhance Localista’s SEO performance while leveraging its
directory network to promote Locafy's products, positioning both
companies to capitalize on the competitive online marketplace in
Australia and New Zealand. The Company believes the work undertaken
to optimize the Localista website and to structurally separate paid
advertorial content from free editorial content provides a
technical solution and a commercial model that can be replicated
for other publishers in the USA and Australian markets.
2024 Fiscal Fourth Quarter Financial
ResultsResults 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).
- Total operating
revenue decreased 4.7% to $1.2 million from $1.3 million
in the comparable year-ago period.
- Subscription
revenue decreased 34.6% to $731,000 from $1.1 million in
the comparable year-ago period. For reporting purposes, the Company
has reclassified and incorporated “Data” revenues within
“Subscription” revenues. The reclassification was done on the basis
that Data revenues are consistent with the nature of other
subscription fee revenues i.e. recurring and related to publishing
content, as opposed to the method in which the content data is
received. Notwithstanding the reclassification, the decline in
subscription revenue had commenced from the beginning of the 2024
fiscal year and was mainly driven by extended billing relief
provided to customers transitioning their Proximity product
campaigns onto Locafy’s upgraded technology platform, as well as
general churn among resellers. The Company has sought to address
these concerns by providing better reseller education as to the
reasonable outcomes from implementing its products, enhancing its
reporting dashboard to better articulate the value that its
technology adds to an end user’s marketing efforts and improved
reseller support. The Company expect subscription revenues to
remain steady until the 2025 fiscal third quarter.
- Advertising revenue
decreased 50.1% to $38,000 from $77,000 in the comparable year-ago
period. Advertising yields from existing ad units continue to
underperform. To address this decline, the Company is implementing
strategies to change the type of advertising placements across its
online properties together with SEO strategies designed to improve
audience (traffic).
- Services revenue
increased 525.6% to $435,000 from $69,000 in the comparable
year-ago period. This increase was as a result of a significant SEO
consulting project and a paid proof of concept for the Company’s
recently developed Article publication solution. This level of
services revenue is unlikely to be replicated in the near term,
however, the work has allowed the Company to advance its own
technical and commercial capabilities and expand its portfolio of
digital assets.
- Other income
decreased 95.9% to $29,000 from $709,000 in the comparable year-ago
period. The decrease in other income is partially due to R&D
tax incentive grant received in the 2023 fiscal year, which was not
replicated during the 2024 fiscal year, lower gains from the
extinguishment of liabilities and a net foreign exchange gain in
the comparable year-ago period, which did not occur during the 2024
fiscal fourth quarter.
- Operating expenses
increased 174.6% to $2.1 million from $770,000 in the comparable
year-ago period. The 2023 fiscal fourth quarter included
significant adjustments relating to the reversal of contractor
termination expense provisions and an annual assessment of R&D
expenses that were capitalized. Excluding these adjustments, the
Company’s underlying operating expenses for 2023 fiscal fourth
quarter was $2.5 million. Operating expenses for 2024 fiscal fourth
quarter included a write off of long-standing historical receivable
balance, excluding which, operating expenses would have been $1.6
million.
- Net loss was $883,000, or $0.66 per diluted
share, compared to a net profit of $1.2 million, or $1.03 per
diluted share, in the comparable year-ago period. Excluding the
2024 fiscal fourth quarter write offs (as detailed above) would
have resulted in a net loss $350,000 or $0.26 per diluted share.
Similarly, excluding the 2023 fiscal fourth quarter adjustment to
operating expenses (as detailed above) would have resulted in a net
loss of $1.3 million or $1.15 per diluted share, in the comparable
year-ago period.
Fiscal Full Year 2024 Financial ResultsResults
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).
- Total operating
revenue decreased 22.8% to $4.2 million from $5.4 million
in the comparable year-ago period.
- Subscription
revenue decreased 31.7% to $3.3 million from $4.9 million
in the comparable year-ago period. Compared to the fiscal third
quarter of 2024, subscription revenue decreased 2.9%. As previously
mentioned, the decline in subscription revenue was primarily
related to the provision of extended billing relief to customers
whose Proximity product campaigns were affected by their transition
to onto the Company’s upgraded technology platform, together with
general reseller churn. The Company expects subscription revenues
to remain steady until the 2025 fiscal third quarter.
- Advertising revenue
decreased 20.1% to $251,000 from $316,000 in the comparable
year-ago period. The decline in advertising revenues resulted from
the changes made by Google to its advertising program during the
year. The Company plans to implement a number of initiatives to
improve its advertising yields together with the expansion of its
online property assets that can carry advertising.
- Services revenue
increased 231.3% to $561,000 from $169,000 in the comparable
year-ago period, driven by an increase in product sales which
require implementation work. Once implemented, these products are
expected to derive monthly subscription revenues. In February 2024,
the Company announced an agreement to provide SEO consulting
services to Localista for $500,000. This work related to the
upgrade of the entire website structure of an online property owned
by Localista comprising in excess of 700,000 individual listing
pages, which the Company completed over a three-month period ending
in June 2024. Further, as previously announced, Locafy separately
acquired from Localista the digital assets of scoop.com.au to
further its R&D and commercial efforts. The scoop.com.au domain
name is a well-recognized brand in the travel, lifestyle and
entertainment niche and, at the time of acquisition, the domain
name had a Moz Domain Authority score of 36, approximately 48,000
backlinks (including approximately 5,000 Wikipedia backlinks) and
ranked for over 157,000 relevant organic keywords (according to
Semrush). The Company’s due diligence suggested that to replicate
the asset would cost in excess of $500,000 and take several years
to complete. Notwithstanding the foregoing, under accounting
standards it was deemed that the scoop.com.au asset and services
revenue transactions were tied together and the value of both
equaled $58,500, which is equivalent to the cost of providing the
consulting services. Accordingly, this position is reflected in the
Company’s financial statements.
- Other income
decreased 93.8% to $61,000 from $993,000 in the comparable year-ago
period. The decrease was primarily due to R&D tax incentive
grant received in the 2023 fiscal year, which was not replicated
during the 2024 fiscal year. The Company’s 2024 fiscal year grant
is currently being prepared and funds are expected to be received
in the 2025 fiscal year.
- Operating expenses
decreased 30.2% to $7.1 million from $10.2 million in the
comparable year-ago period. The decrease was primarily due to a
38.5% decrease in employment expenses to $3.2 million from $5.3
million in the comparable year-ago period as a result of a
reduction in headcount resulting from the Company’s ongoing efforts
to streamline its technology, product suite and the geographical
markets it serves. Technology expenses also decreased 48.2% to
$891,000 from $1.7 million in the comparable year-ago period, which
decrease largely reflects the cost savings as a result of upgrades
made to the Company’s technology platform.
- Net loss for the year to date was $3.0
million, or $2.30 per diluted share, compared to a net loss of $3.9
million, or $3.69 per diluted share, in the comparable year-ago
period.
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).
- Monthly recurring revenue
(MRR) for the 2024 fiscal fourth quarter was $256,000, a
35.6% decrease from the comparable year-ago period, and a 3.7%
decrease compared to the 2024 fiscal third quarter.
For more information, please see Locafy’s investor relations
website at investors.locafy.com.
About LocafyFounded 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 IndicatorsLocafy 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 StatementsThis 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 ContactMatt Glover or Matt
SzotGateway Investor Relations(949)
574-3860LCFY@gateway-grp.com
|
-Financial Tables to Follow- |
| |
|
Locafy Limited Consolidated Statement of
Profit or Loss and Other Comprehensive Income |
| |
| |
|
3 months to30 Jun 2024AUD
$(unaudited) |
|
|
FY2024AUD
$(audited) |
|
|
FY2023AUD
$(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 at30 Jun 2024AUD
$(audited) |
|
|
As at31 Dec 2023AUD
$(audited) |
|
|
As at30 Jun 2023AUD
$(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 to30 Jun 2023AUD
$(unaudited) |
|
|
FY2024AUD
$(audited) |
|
|
FY2023AUD
$(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 |
|
Locafy (NASDAQ:LCFY)
過去 株価チャート
から 10 2024 まで 11 2024
Locafy (NASDAQ:LCFY)
過去 株価チャート
から 11 2023 まで 11 2024
