LiveTiles : FY22 Q4 Quarterly Activities Report and Appendix 4C

personal use only

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

ASX Announcement

25 July 2022

LiveTiles delivers strong FY22 revenue growth

Highlights

• FY22 Operating Revenues (unaudited) of $52.8M, up 17% on FY21.
• Contracted license user base of 2.77M at 30 June 2022, up 20% from 2.32m at 30 June 2021.
• Cash receipts $12.9M for the June quarter, delivering $56.7M for FY22, a 10% increase on the prior corresponding period (pcp) in FY21 and net operating cashflows of $(2.3)M for the quarter.
• Cash position of $13.1M at 30 June 2022, with additional $4M available to draw from the OneVentures debt facility, providing total available cash of $17.1M.
• $65.6M ARR at 30 June 2022, +4% versus pcp; on a Constant Currency basis1 ARR was $65M. Trailing Twelve Month (TTM) customer Net ARR Retention of 91% at 30 June 2022.
• Secured a key customer upsell deal with initial $0.2M in software and $0.9M in services over 3 years.
• Recently acquired The Human Link business, a leading Employee Experience (EX) company, has successfully integrated into LiveTiles during the quarter, expanded its operations in the US market, produced $0.9m billings and also achieved an operating cash positive quarter.

LiveTiles Limited (ASX:LVT) (LiveTiles or the Company), a global leader in employee experience software for employee collaboration and communications, has today released its Appendix 4C and Quarterly activities report for the three month period ended 30 June 2022 and is pleased to provide the following update on financial and operating performance.

BUSINESS AND FINANCE HIGHLIGHTS

1. CASH UPDATE

For

Cash Receipts

LiveTiles Q4 FY22 cash receipts of $12.9M declined -11% compared to pcp (Jun-21). With approx. $1.7m in lower than expected customer receipts due by 30 June that were delayed and not received in time. At the date of this announcement, 60% of these Q4 expected collections have since been received.

Trailing-twelve-month (TTM) cash receipts of $56.7M has grown +10% compared to pcp.

	+10% Growth in Cash Receipts (TTM)
60	51.8 54.4	56.7 58.456.7
50	47.1 48.4
44.5
	41.0
40	31.9 32.9
AUD$m
25.6
30
	19.6

1. 10.4 10.9 11.2 12.0 13.0 12.2 14.6 14.6 15.3 13.912.9

1. 7.9 8.5

0

Jun-19Sep-19Dec-19Mar-20Jun-20Sep-20Dec-20Mar-21Jun-21Sep-21Dec-21Mar-22Jun-22

1 30 June 2022 ARR is shown on a constant currency basis when compared with using 30 June 2021 FX rates. Note: The Group commenced constant currency reporting in the quarter ended 30 June 2020

ASX Listing Rules Appendix 4C (17/07/20)	Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.

personal use only

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Cash Balance and Cash Flows

Cash on hand at 30 June 2022 was $13.1M. With a further $4M in funds still remaining available to drawdown from the OneVentures debt facility, leaving total available cash of $17.1M and the Company remaining in a healthy capital position with sufficient cash runway.

Net operating cashflows in the quarter of $(2.3)M, with the June quarter result impacted due to the delayed expected customer cash receipts. The operating cost base remained flat quarter over quarter at $15.2M and improved by +$0.6M when compared to pcp (June-21) operating costs.

On a TTM basis, at 30 June 2022 Net Operating Cashflows were $(5.9)M which was a +68% improvement compared to pcp, whilst the underlying Net Operating Cashflows (excl. Govt Grants and non-recurring items) saw a +34% improvement to $(4.0)M.

Cash outflows related to business operations during the quarter was $15.2M, which saw a +$0.6M improvement compared to June-21 quarter, the operating costs included the following: R&D ($5.4M), Operating costs ($4M) Advertising and Marketing ($0.8M), Staff costs ($3.4M) and Admin and Corporate costs ($1.2M).

The payments to related parties of the entity and their associates in section 6 of the Appendix 4C includes payments such as compensation to executive directors and director's fees and loans to executive directors on arms-length terms.

			NET OPERATING CASH FLOW (TTM)				QUARTERLYNET OPERATINGNET OPERATINGCASH FLOWCASH(TTM)FLOW
			QUARTERLY NET OPERATING CASH FLOW				(excl. govt grants and non-recurring items)
			Jun-21Sep-21		Dec-21Mar-22Jun-22			Jun-21	Sep-21Dec-21Mar-22Jun-22
			(0.2)
																				(0.5)
		(1.1)	(1.2)								(1.2)	(1.3)
						(1.4)
						(2.3)
													(2.3)

NET OPERATING CASH FLOW (TTM) NET OPERATING CASH FLOW (TTM)

Jun-21Sep-21Dec-21Mar-22Jun-22

NET OPERATING CASH FLOW (TTM)

(excl. govt grants and non-recurring items)

Jun-21Sep-21Dec-21Mar-22Jun-22

For

(3.8)

(5.0)

(5.9)

(3.2) (3.0)

(6.2) (5.9)

(4.1)

(17.2)

(18.5)

ASX Listing Rules Appendix 4C (17/07/20)	Page 2
+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

2. SALES AND CUSTOMER UPDATE

Operating revenues (unaudited) for FY22 were $52.8m, up 17% from FY21 - a successful result, driven through strong performances in Software subscriptions. Contracted user licenses were 2.78M at 30 June 2022, up 20% from 2.32m users at 30 June 2021, with LiveTiles Reach continuing its growth, up 79% over the 12 month period. Total customer count also rose to 1,087 at 30 June 2022.

ARR on a reported currency basis was $65.6M as at 30 June 2022, up +4% from pcp. Compared to 31 March 2022; there was a favorable +$1.4M FX movement in the 30 June 2022 ARR result. On a constant currency basis, ARR was $65M. Customer ARR Net $ Retention for the trailing 12month period was 91%. The Average ARR per Customer at 30 June 2022 grew +4% to $60.4k versus the pcp, on a constant currency basis, average ARR per customer was $59.8k.

During the quarter, the Company secured a key customer upsell deal with an initial $0.2M in software and $0.9M in services over 3 years. The customer, with 6,500+ employees as an international law firm based in Europe and US has committed to LiveTiles' full Employee Experience (EX) platform and services offering. This multi-year deal with a key existing customer, helps demonstrate another example of the strength and stickiness in LiveTiles enterprise EX offering and capabilities.

In addition to the above key customer deal, some of the other following key customer signings were made during the quarter across the regions:

• Australian based, Hospitality group across Asia Pacific with 12,500+ employees (Australia)
• A US, NASDAQ listed, Biotechnology company (US)
• British based, digital services training provider (UK)
• An industrial services group covering the minerals and mining, oil and gas sectors (Australia)
• Management Consulting Services Firm (US)
• US NASDAQ based Pharmaceutical Company (US)

ARR +4% YoY		Average ARR + 4% YoY

AUD$M									65.6				$000sAUD
		62.8			65
																		60.4
53.8									49.3							59.8
																		58.3
40.1
													43.6
		June-19		June-20				June-21		June-22			June-19		June-20		June-21		June-22
				ARR (Reported)				ARR (Constant Currency)				Average ARR (reported)				ARR (Constant Currency)

ASX Listing Rules Appendix 4C (17/07/20)	Page 3
+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

3. BUSINESS OPERATIONS UPDATE

The Employee Experience (EX) Academy launch

LiveTiles officially launched the EX Academy (https://theexacademy.com/), providing access to events with EX experts, on-demand virtual learning and insights from academic research and industry case studies, live thought leadership workshops, secret events, focus groups and exclusive events for members. The EX Academy is an integral part of LiveTiles becoming recognised as the world leader in EX, whilst also providing a new lead-generation engine for the Company. The initial launch event was hosted by The Human Link founders Kelly Michael and Stephen McDonald with special guest Dr. Scott Sonenshein, focusing on "work will never be the same". The event targeted key decision makers in large enterprises across EMEA, USA and APAC, with a high-quality turn out of over 350 executives.

Successful integration of The Human Link

As announced to market on 31 March 2022, the Company acquired The Human Link business, a leading EX company. The integration of this acquisition was completed successfully during the quarter with the operations, employee teams and the EX programs now embedded within the wider LiveTiles global business and its go-to-market offerings.

Operationally during the quarter, The Human Link team successfully expanded its team and operations into the lucrative US market. Delivered $0.9M in customer billings, a positive operating cashflow quarter and 89 EX programs, up from a quarterly average of 65, which were delivered to a variety of marquee customers during the period, including BHP, PWC, Microsoft and many Australian public sector agencies.

LiveTiles Co-Founder and Chief Executive Officer, Karl Redenbach states:

"The June quarter marks one of strong operational achievements with the completion of integration of The Human Link and the formal launch of our Employee Experience Academy. These milestones represent a great opportunity for us to further expand our global footprint and lay the foundations for continued commercial growth through expanded distribution of our proprietary products globally.

The ongoing development of our products and EX program capabilities alongside acquisitional add- ons are demonstrating to be successful as we are now delivering over 90%+ customer retention rate and over $64 million in annual contracted revenue and in FY22 we achieved $52.8 million in operating revenues, up 17% on FY21 which is a testament to the strength of our offering.

We remain confident LiveTiles is well positioned to consolidate its place as a leader in the Employee Experience market and continue to deliver growth through the next 12 months."

CONFERENCE CALL

The Company will hold a webinar for investors at 11.00am Sydney Time, Monday 25 July 2022. Registration details are available at: LiveTiles Q4 registration link

A recording of the conference call will be made available on the Company's website at www.livetilesglobal.com

This announcement has been authorised for release by the Board.

For further information, please contact:

Investor Relations

[e-mail]

ASX Listing Rules Appendix 4C (17/07/20)	Page 4
+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

About LiveTiles:

LiveTiles is a global leader in the employee experience market creating software to enhance employee collaboration and communication. LiveTiles is delivering solutions that drive human connection, employee engagement, well-being and productivity in the modern workplace.

LiveTiles have operations spanning North America, Europe, Asia and Australia, and services over 1,000 customers. LiveTiles was named is a leading player in the employee experience platform industry and has been acknowledged as such by Forrester and Gartner.

ASX Listing Rules Appendix 4C (17/07/20)	Page 5
+ See chapter 19 of the ASX Listing Rules for defined terms.