SPACETALK LIMITED For personal use only
ASX Announcement
Spacetalk Ltd. (ASX:SPA)
17 January 2022
1H FY22 BUSINESS UPDATE
Highlights
- Total Revenue of $12.3 million. 50%1 growth on PCP2 and 78% growth HOH3.
- Total Wearables Revenue of $11.4 million. 58% growth on PCP.
- App ARR4 of $3.5 million, exceeding $3 million for the first time.
- Promising signs from North America and Nordic expansion.
Spacetalk Ltd. (ASX:SPA) ("Spacetalk" or "SPA" or "Company"), developer of innovative technologies that keep families safe and connected, provides an update on its financial and business highlights for the half year ending 31 December 2021 ("1HFY22")5.
Financial Highlights
(Growth rates are compared to 1HFY21, the previous corresponding period, unless otherwise stated.)
Total Revenue | Gross Profit Margin | Wearables Revenue | Device Sales | |||||||||||||
$12.3m up 50% | 56% | $11.4m up 58% | $9.9m, up 57% | |||||||||||||
App revenue | App ARR | Total Marketing | Schools Business | |||||||||||||
Expenses $0.9m, | Revenue $0.9m, | |||||||||||||||
$1.5m, up 67% | $3.5m, up 52% | |||||||||||||||
down 10% | down 10% | |||||||||||||||
Cash at Bank at 31 December 2021 $9.5 million
- Some calculations of changes to prior periods may be impacted by rounding.
- PCP - Previous Corresponding Period.
- HOH - Half on Half.
- APP ARR = Annualised Recurring Revenue from Spacetalk App monthly subscriptions.
- Unaudited
Spacetalk Ltd. (ASX:SPA)
ABN 93 091 351 530
The Parks, Suite 13, 154 Fullarton Road, Rose Park, South Australia 5067
www.spacetalkwatch.com
For personal use only
GROUP REVENUE BY QUARTER | APP ARR BY QUARTER | |||||||||||||||||||||||||||
$16.0 | $4.0 | |||||||||||||||||||||||||||
$14.0 | $3.0 | $3.5 | ||||||||||||||||||||||||||
$12.0 | $3.0 | |||||||||||||||||||||||||||
$10.0 | $1.1 | $3.9 | $2.5 | |||||||||||||||||||||||||
$8.0 | $1.9 | $8.3 | $2.0 | |||||||||||||||||||||||||
$6.0 | $1.7 | $1.5 | ||||||||||||||||||||||||||
$5.2 | $5.5 | |||||||||||||||||||||||||||
$1.4 | $1.0 | |||||||||||||||||||||||||||
$4.0 | ||||||||||||||||||||||||||||
$3.1 | $0.5 | |||||||||||||||||||||||||||
$2.0 | $4.0 | |||||||||||||||||||||||||||
$2.4 | $2.7 | $- | ||||||||||||||||||||||||||
$- | $0.9 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | |||||||||||||
FY2019 | FY2019 | FY2019 | FY2019 | FY2020 | FY2020 | FY2020 | FY2020 | FY2021 | FY2021 | FY2021 | FY2021 | FY2022 | FY2022 | |||||||||||||||
FY2019 | FY2020 | FY2021 | FY2022 | |||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | |||||||||||||||||||||||||
TOTAL DEVICE REVENUE | APP REVENUE |
+57% | +67% |
1.5
9.9 | 0.9 | |
5.8 | 6.3 | 0.5 |
1H FY20 | 1H FY21 | 1H FY22 | 1H FY20 | 1H FY21 | 1H FY22 |
All figures are in AU$million.
Spacetalk Ltd. (ASX:SPA)
ABN 93 091 351 530
The Parks, Suite 13, 154 Fullarton Road, Rose Park, South Australia 5067
www.spacetalkwatch.com
For personal use only
Commentary
For the half year ending 31 December 2021, Spacetalk achieved total revenue of $12.3 million, a 50% increase on the prior corresponding period and a 78% increase half on half. Revenue growth was aided by the early benefits of geographic diversification, with Spacetalk wearables now sold in Australia, New Zealand, the United Kingdom, Finland, Norway, Denmark, Sweden, Canada and the United States of America.
Whilst contributing to total revenues, sales in the Nordic and North America regions only commenced in late November 2021.
Annualised Recurring Revenue (ARR) from the Spacetalk App's monthly subscriptions was $3.5 million, up 52% compared to pcp, supporting Spacetalk's strategy of building an integrated eco-system.
Device sales growth was achieved with lower marketing expenses ($0.9 million versus $1.0 million pcp). Capital discipline and spending efficiency continue to be core tenants of the Company's growth strategy.
The MGM schools business revenue was $0.9 million, down 10%. The schools business has been impacted by two years of Covid related disruptions, particularly in New South Wales and Victoria. Despite lower revenue for the half, the schools business remains a strong net positive cashflow generator for the Group.
Spacetalk Ltd. (ASX:SPA)
ABN 93 091 351 530
The Parks, Suite 13, 154 Fullarton Road, Rose Park, South Australia 5067 www.spacetalkwatch.com
For personal use only
Business Highlights
During the half, the Company:
- Commenced on-line and in-store distribution of Spacetalk Adventurer in Continental Europe through Elisa6 and Elkjop7.
- Commenced on-line distribution of Spacetalk Adventurer with Amazon and Walmart in America and through BestBuy in Canada.
- Achieved record levels of sales in Australia, expanded in-store distribution with Big W into 50 stores and expanded on-line distribution with Amazon Australia.
- Appointed Martin Darbyshire as Chief Design Officer, further enhancing Spacetalk's existing in-house capabilities. Martin was the founder, and remains Chairman of, Tangerine8.
- Ranked 72 in AFR Fast 100, AFR's list of the fastest growing companies in financial year
2021. - Received technical acceptance for Spacetalk Adventurer in Europe9, the United States of America10, and Canada11.
- Deployed a major Spacetalk eco-system enhancement, Level-Up12, which included device and app upgrades to allow for multi-language support, wear detection, Buddies, calculator and light.
- Continued marketing of Spacetalk Life seniors device to over 50,000 aged care service providers through an evolving B2B2C13 sales channel.
- https://elisa.fi
- https://www.elkjop.no
- https://tangerine.net
- https://www.globalcertificationforum.org
- https://apps.fcc.gov/tcb
- https://sms-sgs.ic.gc.ca
- https://www.spacetalkwatch.com/pages/level-up
- B2B2C = Business to Business to Consumer
Spacetalk Ltd. (ASX:SPA)
ABN 93 091 351 530
The Parks, Suite 13, 154 Fullarton Road, Rose Park, South Australia 5067
www.spacetalkwatch.com
For personal use only
Expanding Distribution
In addition to distribution arrangements previously announced and commenced prior to 31 December 2021:
- Planning is currently underway to expand into all 189 Australian Big W stores.
- Distribution has expanded to Finland through 42 of Elkjop's Gigganti stores.
- Distribution with Telenor14, on-line and in-store, in Denmark will launch in January 2022.
The financial impact on Spacetalk of selling through these channels is currently unknown, with no guaranteed or minimum level of revenue, however, the Company expects it to have a direct positive impact on the total revenue of the Company and be reflected in the disclosure thereof.
Marketing and Promotion
Spacetalk has entered into an arrangement to promote Spacetalk Adventurer at 38 JoJo Siwa15 performances across the United States between 13 January and 12 March 2022.
JoJo Siwa is a leading Nickelodeon performer with 12.3 million YouTube, 11 million Instagram,
1.1 million Facebook and 37 million TikTok followers targeted at the pre- and early- teen female demographic.
Funding and Cash Position
As at 31 December 2021 the Company held cash of $9.5 million.
During the half, the Company successfully raised $9.5 million of new equity capital before costs ($9.0 million after costs16). Capital raised will be used for working and growth capital, including the development of the next generation Spacetalk wearables, app and eco-system.
- https://www.telenor.com
- https://www.instagram.com/itsjojosiwa/
- Costs include (principally) management, distribution, registry and quotation fees.
Spacetalk Ltd. (ASX:SPA)
ABN 93 091 351 530
The Parks, Suite 13, 154 Fullarton Road, Rose Park, South Australia 5067
www.spacetalkwatch.com
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Spacetalk Ltd. published this content on 16 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 January 2022 22:24:03 UTC.
