Eagle Eye : Interim Report 2023

An		team creating
			value through great tech...

Interim Report 2023

...for some of the biggest businesses on the planet

EAGLE EYE SOLUTIONS GROUP PLCINTERIM REPORT 2023

Overview

1. Highlights

1. At a Glance
2. Our Vision
3. Our Customers
4. Our Strategy
5. Acquisition of Untie Nots

Strategic Report

8 Strategic Report

Financial Statements

13 Consolidated Unaudited Interim Statement of Total Comprehensive Income

1. Consolidated Unaudited Interim Statement of Financial Position
2. Consolidated Unaudited Interim Statement of Changes in Equity

1. Consolidated Unaudited Interim Statement of Cash Flow
2. Notes to the Consolidated Unaudited Interim Financial Statements

Other Information

17 Company Information

OVERVIEW	STRATEGIC REPORT	FINANCIAL STATEMENTS	OTHER INFORMATION
01-07	08-12	13-16	17

digitallyEa le Eye enablesconnectcompanies to

to their customers through promotions, loyalty, apps, subscriptions and gift services.

Financial Highlights

Group Revenue	Recurring revenue	Recurring revenue %	Period end Annual	Net Revenue	Gross profit	1
	(subscription fees	of Group revenue	Recurring Revenue1	Retention2
£20.0m	and transactions)	78%	£26.2m	127%	£18.8m
£15.7m
(H1 2022: £15.1m)	(H1 2022: £11.5m)	(H1 2022: 76%)	(H1 2022: £18.9m)	(H1 2022: 130%)	(H1 2022: £14.0m)
+32%	+37%	+2ppt	+38%	-3ppt	+35%

Adjusted EBITDA3	Adjusted EBITDA	Profit before tax	Adjusted net cash
	margin		at 31 December4

£4.7m	23.5%	£0.9m	£5.7m
(H1 2022: £3.1m)	(H1 2022: 20.8%)	(H1 2022: £0.6m)	(H1 2022: £1.8m)
+50%	+2.7ppt	+48%	+216%

1. Period end Annual Recurring Revenue ("ARR") is defined as period exit rate for recurring AIR subscription and transaction revenue plus any professional services contracted for more than 12 months hence and secured new wins, excluding any seasonal variations and lost contracts.

2. Net Revenue Retention ("NRR") rate is defined as the improvement in recurring AIR revenue excluding new wins in the last 12 months.

3. EBITDA has been adjusted for the exclusion of share-based payment charges along with depreciation, amortisation, interest and tax from the measure of profit, along with costs of the acquisition of Untie Nots in FY23.

4. Adjusted net cash is defined as cash and cash equivalents less financial liabilities and excludes the placing proceeds associated with the acquisition of Untie Nots which were paid out following completion on 3 January 2023.

EAGLE EYE SOLUTIONS GROUP PLCINTERIM REPORT 2023

The best-in-class loyalty and promotions SaaS platform for leading omnichannel retailers globally.

OVERVIEW

STRATEGIC REPORT

FINANCIAL STATEMENTS

OTHER INFORMATION

01-07 08Awards-1213-1617

Operational Highlights

• Strong revenue growth at 32% as the Group continues to deliver on its customer strategy: Win, Transact and Deepen
• • New international Wins include a Canadian retailer and IKEA Taiwan
  • Transaction and subscription revenue growth with the Woolworths Group contract in Australia reaching full-scale, the full go-live of a large grocer in the U.S., and the national rollout of Asda's loyalty programme
  • Ongoing deepening of engagements across our customer base
• Group benefitting from the strength of its SaaS business model
• • ARR up 38% to £26.2m, NRR remains high at 127% and churn remains low, providing a strong basis for continued expansion

• Delivering increasing profit margins and cash inflow
• • 50% increase in adjusted EBITDA to £4.7m and an increased adjusted EBITDA margin of 23.5%, reflecting strong revenue growth and careful management of the cost base, whilst still investing in product and sales & marketing
  • Net cash inflows before financing of £2.4m in H1 2023, a 117% increase on H1 2022
• International expansion continues with investment in Singapore, Germany and North America
• • Strong growth in international revenue in the Period, driven by North America and APAC
  • Increased sales and marketing initiatives to continue to drive our win rate

• Earnings accretive acquisition of Untie Nots providing expanded growth opportunities
• • Successful acquisition of Untie Nots, a high growth France based SaaS business, completed in January 2023, with a number of joint customer discussions already underway and integration progressing
    as planned

Outlook - current year performance ahead of expectations

• Entered the second half of the financial year in a strong position, with the continued growth in ARR providing good visibility on sustainable profitable growth
• Combined sales & marketing with Untie Nots is delivering increased pipeline opportunities
• Trading since the Period end has continued to be strong, providing the Board with confidence in delivering another year of profitable growth, with revenue and adjusted EBITDA for the year ended 30 June 2023 now expected to be comfortably ahead of current market expectations*

• In so far as the Company is aware, market consensus at the date of this announcement for the year ending 30 June 2023 is for Revenue of £37.8m, and Adjusted EBITDA of £7.5m.

2

In November 2022 at the Q4 2022 Best Companies awards, Eagle Eye were delighted to be ranked in the Top 10 Technology companies to work for and in the Top 20 list of overall UK companies.

We increased our Best Companies Index score from the survey in March 2022 and maintained our 3 star accreditation which is the highest accolade and awarded to companies who demonstrate world class levels of employee engagement.

EAGLE EYE SOLUTIONS GROUP PLCINTERIM REPORT 2023

manyAT A GLANCEproducts

One pl tform

OVERVIEW	STRATEGIC REPORT	FINANCIAL STATEMENTS	OTHER INFORMATION
01-07	08-12	13-16	17

What the world's largest retailers need

We believe there are three key components to success when it comes to winning in the always-on, omnichannel world.

Data	Transactional	User
management	capability	Experience

3

Structure, manage and store data	Deliver the right action to the end	Entice and engage the customer with
to enable advanced analytics	customer at the Point of Sale and	the right content in the right channels
and customer insights to drive	capture all data points
future transactions

AIR

Our Eagle Eye AIR platform enables clients to attract, interact with and retain consumers.

Coupons

Loyalty

Apps

Subscriptions

Gift

Read our				Financial Statements
Strategic Report
			Find out more on page 13
Find out more on page 8

How we make money

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2				E
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	L		F
	I	E
		CENC

1. One off implementation fee
2. Recurring licence fee for access to Eagle Eye AIR
3. Transaction fee
   Per issuance X pence - linked to value Per redemption 3-5 times issuance
   OR
   Interaction fees (earn and burn of points) for loyalty services replaces issuance and redemption

EAGLE EYE SOLUTIONS GROUP PLCINTERIM REPORT 2023						OVERVIEW	STRATEGIC REPORT	FINANCIAL STATEMENTS	OTHER INFORMATION
					01-07	08-12	13-16	17

OUR VISION Purp se
Our purpose is to
enrich the lives of our	•	Treating people as you would	Our values are:
people and customers	•	Staying agile
	We believe in…
		like to be treated
	• Delivering value to earn loyalty
	• Being obsessed with customers
	•	Living our values
Our vision, mission and purpose	•	Winning teams	Integrity	Passion
•	You
			Earning trust	Enjoying the ride
The common ground between looking back and looking forward is the heart of	People
Eagle Eye - we're here for a reason, with a clear vision, mission and purpose, and a
unique Purple way of working that we believe enriches lives, and has the power to	Everything we do is about
change the world for the better. Our mantra is helping businesses to be digitally
people - we treat people
enabled and data driven leading to 1:1 marketing.	Innovation	Excellence
as we'd like to be treated,
We believe that how we do things together is more important than what we do. So	and respect.
	with kindness, empathy
we obsess about our culture - the who, the why and the how - as much as we obsess			Keeping things fresh	Maintaining trust,
about our products and services. Our culture makes us special.
				building loyalty

There is a Purple way and it's the key to how we'll keep on soaring.

4

Teamwork

Passing Purple on

Kindness

Bonding us together