RightCrowd : Appendix 4C and Quarterly Activities Report

28th of January 2022

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RightCrowd FY22 Q2 Quarterly Activities Report and Appendix 4C:

RightCrowd generates $4.2m revenue during Q2, wins first international Access Analytics deal, achieves revenue growth of 11% in H1 FY22 compared to PCP (unaudited) and 13% increase in ARR since 30 June 2021.

RightCrowd Limited ("RightCrowd") or ("Company"), a leading global developer of physical security, safety, and compliance software, is pleased to provide its Quarterly Activities Report in conjunction with the release of the Appendix 4C - Quarterly Cash Flow Report for the period ended 31 December 2021.

Highlights:(All figures are unaudited and are expressed in Australian dollars unless stated otherwise):

• Quarterly sales revenue of $4.2m in Q2 FY22, down 5% versus prior comparison period (Q2 FY21: $4.4m). H1 FY22 revenue of $7.7m up 11% on prior corresponding period (H1 FY21: $7.0m) driven by new client sales and ongoing subscription renewals.
• A further 7,400 of new presence control badge-holder sales invoiced during the Quarter bringing YTD badgeholders invoiced to 14,500 (or 54% of FY21 total). Additional orders were received in December for a further 1,700 units which will be shipped and invoiced in January.
• Contracted Annual Recurring Revenue (ARR)1 at 31 December 2021 closed at $9.1m, up 50% versus prior comparison period (Q2 FY21: $6.1m), and up $1.1m, or 13%, since end of FY21 (Q4 FY22: $8.1m).
• As of 31 December 2021, RightCrowd's cash and cash equivalent balance closed at $8.2m, up $4.4m or 117% versus prior comparison period (Q2 FY21: $3.8m).
• Net operating cash inflows were $0.4m. Inflows were driven by customer receipts and receipt of the FY21 R&D grant during the Quarter.
• RightCrowd achieved its first international sale of Access Analytics during Q2. Pipeline continues to build and further sales are forecast to close in Q3.
• 2 new partners were added during the Quarter. In total, 16 new customers and partners have been added since the end of FY21.
• RightCrowd launched its inaugural Investor Newsletter during the Quarter and confirms that it will be presenting at the US OTCQX Virtual Investor Technology Conference in April 2022.

1 ARR is measured as the total annualised value of active customer contracts for annual subscription, support, and maintenance services as at 31st of December 2021.

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Financial Commentary:

Revenue & Lead Generation: RightCrowd generated $4.2m of revenue in Q2, a 5% reduction on the

prior year corresponding period (Q2 FY21: $4.4m). When measured on a YTD basis, H1 revenue was

$7.7m which is 11% higher than prior year (H1 FY21: $7.0m)

Revenue growth was driven by a further 7,400 of badge-holder hardware and SaaS software sales to both new and existing customers. It was pleasing to see limited churn during the Quarter despite a large portion of customers coming up for their first annual renewal during the Quarter. Total RightCrowd churn since FY21, as measured on an Annual Recurring Revenue basis, stands at 4.9%, of which 4.4% relates to Presence Control.

The Company also continues to extend its Workforce Management solutions at existing customers with scope extensions agreed at major enterprise accounts. Several material new enterprise deals sit at an advanced stage in the pipeline but have been re-forecast to close in Q3 and Q4.

With the ongoing challenges imposed by COVID-19 to companies across the globe, RightCrowd continues to see strong lead generation during Q2. These leads are now in the process of being qualified as future pipeline opportunities. Lead generation picked up in the USA and local markets in Australia and New Zealand also became much more active.

The recent executive level hires have commenced refining and executing the Company's strategies for sales, major customer relationships and products and solutions. As advised at the Annual General Meeting, we expect the benefits of these activities to begin to show in 2H FY22 and accelerate in FY23.

Annual Recurring Revenues (ARR): Annual Recurring Revenue continues to grow to over $9.1m at

end of Q2 FY22, which represents growth of 50% on prior year (FY21 Q2: $6.1m) and 13% YTD growth

(FY21 Q4: $8.1m).

Workforce management solutions generate $6.0m of ARR, while Presence Control is growing quickly and now makes up $3.1m of total ARR.

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Graph: Annual Recurring Revenue as at end of reporting period

Cash: RightCrowd closed the Quarter with a cash & cash equivalent balance of $8.2m. This included a receipt of the FY21 R&D grant of $2.7m.

The receipt of the R&D grant contributed to positive operating cash inflow for the Quarter of $0.4m. Included in operating cashflows are inventory related payments of $0.9m to continue building up hardware for future presence control sales.

Operational Commentary:

Workforce Management (formerly known as CORE): Q2 was focused on generating pipeline and moving forward enterprise customer projects. A new regional bank in the US was added to the customer portfolio during the Quarter, while December delivered a record month for consulting revenue with over $0.9m recognized, which was tied to project delivery milestones achieved at major enterprise clients.

Presence Control: RightCrowd sold a further 7,400 Presence Control badgeholders in Q2 which was broadly in line with prior Quarter badge holder sales (7,000). A further 1,700 badgeholders had been sold in the Quarter however these will be delivered and invoiced in Q3. Momentum is forecast to accelerate over the next two quarters as channel partnerships come on-line.

A total of 14,500 badge holder units have been sold since the start of FY22 with continued demand from existing customers and 16 new customers & partners added since the start of FY21. A case study from one of the new customers added during the Quarter is available here:

https://www.rightcrowd.com/case_study/managing-covid-19-risks-in-the-resources-industry-at-stawell-gold-mines/

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Access Analytics: RightCrowd is pleased to announce its first international sale of the Access Analytics product (formerly RightCrowd IQ) to a large existing customer who is looking to upgrade its analytics capability over the physical access rights of its workforce. The first international sale represents a major milestone in the launch of the Access Analytics product, with several advanced pipeline opportunities marked for closure in Q3.

Picture: User Interface of Entity Relationships - Access Analytics

Channels and Alliances: RightCrowd continues to focus on developing partner channels and training several partners. RightCrowd added 2 new partners in the Quarter with the first sales from those partners flowing through for Presence Control during the Quarter.

Preparations are also underway for a RightCrowd booth at the annual ISC West conference to be held late March in Las Vegas, USA.

AGM and FY22 Outlook: RightCrowd held its Annual General Meeting in November and released an investor presentation to the market detailing its FY21 outlook. RightCrowd confirmed its targets for revenue growth and P&L break-even by end of FY23 and set its FY22 revenue target of $19.8m as detailed in the investor presentation.

RightCrowd announces that it will be presenting at the US organized OTCQX Virtual Investor Technology conference on the 7th of April 2022. RightCrowd also launched its first Investor Newsletter during the Quarter providing investors with a summary of activity during the Quarter including any product updates, new appointments, or other public relations activities.

A link to the investor newsletter is provided here:

https://www.rightcrowd.com/investor-relations/#1642554903799-6cbdcf11-8f80

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RightCrowd CEO and Managing Director, Peter Hill, said:

"RightCrowd continues to make progress towards broader commercialisation, with focus on launching the Access Analytics product and extending our partnerships being of particular focus this Quarter. The Company results continue to be solid, and we anticipate that H2 will be even stronger, consistent with RightCrowd's performance in the second half of previous financial years.

I am very pleased with the investments the company has been making both in product and personnel which will help position the Company well for the future."

Related Entities: Payments to related entities during the Quarter was $0.1m which represented fees paid to the Board of Directors and Key Management Personnel (KMP) of RightCrowd.

Note to Market:

None of the information included in this announcement should be considered individually material, unless specifically stated. All figures in this announcement are provided on an unaudited basis.

This Company presentation may include certain statements, estimates or projections with respect to the anticipated future performance of the Company, the projects or both. Those statements, estimates or projections are based on assumptions about future events and management actions that may not necessarily take place and are subject to significant uncertainties, many of which are outside the control of the Company. Those assumptions may, or may not, prove correct. No representation is made as to the accuracy of those statements, estimates or projections.

- END -

Investor contact:

Peter Hill	James Stewart
Chief Executive Officer	Chief Financial Officer
[e-mail]	[e-mail]
[phone]	[phone]

The release of this announcement was authorised by the Board of Directors.