Ann: FLLYR: GEO: GeoOp announces preliminary results to 30 June...

• Release Date: 11/09/15 08:50
• Summary: FLLYR: GEO: GeoOp announces preliminary results to 30 June 2015
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					GEO
11/09/2015 08:50
FLLYR
PRICE SENSITIVE
REL: 0850 HRS GeoOP Limited

FLLYR: GEO: GeoOp announces preliminary results to 30 June 2015

GEOOP LIMITED (NZX:GEO)
Preliminary Results
Friday, 11 September 2015

GeoOp grows revenue by 254% to $1.7 million for the 15 month period to 30
June 2015

GeoOp Limited (GEO) is pleased to report its preliminary results for the 15
month period to 30 June 2015, showing strong customer growth, strong revenue
growth and significant milestone achievement.  GEO is focused on getting to
profitable growth.

GEO grew its total revenue by 254% to $1.7 million in the 15 months to 30
June 2015, up from $0.5 million in the 12 months to 31 March 2014.  Licenced
users grew to 19,009 at 30 June 2015, up 100% on the 31 March 2014 equivalent
of 9,509 licenced users.

Licenced users by key geography at 30 June 2015 were: Australia 9,588, New
Zealand 5,466, North America 1,335, UK 1,235 and Rest of World 1,385.  Over
70% of the licensed user base is outside NZ, which shows how easy it is to
support and adopt GEO. GEO experienced growth across all its key markets (NZ,
AU and US) during the period.

GEO continued to invest significantly in the platform over the period,
building new features (such as payments to be launched soon) and expanding
the ecosystem to include other leading SaaS applications, such as QuickBooks.
GEO also added key new people to its board and the management team, amongst
them a new Chief Operating Officer. This investment has allowed GEO to
rapidly scale and positions the business strongly for the future.

GEO is a growth technology business and its monthly operational cash burn
continues to decrease each quarter as revenue growth is achieved.

In June 2014, GEO changed its balance date to 30 June and this is the first
set of results for that period. Accordingly, financial information reported
for the period to 30 June 2015 is for a 15 month period and the comparative
is for the 12 month period to 31 March 2014.  The financial results for the
15 month period to 30 June are in the process of being audited.

Financial and business highlights for the 15 month period to 30 June 2015 are
as follows:
o Total revenue of $1.729m, up 254% from $0.488m in FY14;
o Annualised monthly recurring revenue at 30 June 2015 of $1.4m, up 130% from
$0.61m at March 2014;
o Licenced users of 19,009, an increase of 100% over the March 2014
equivalent of 9,509;
o Monthly operational net cash burn at July 2015 was around $325,000 per
month, which has reduced from March 2014 as revenue has grown and staff
numbers have reduced;
o Net loss after tax was $5.828m (15 months) compared to $4.586m in FY14 (12
months).  On a 12 month like-for-like basis the net loss after tax was
largely unchanged, but is expected to reduce in the 12 months to 30 June 2016
as GEO drives towards profitable growth; and
o $1.475m of cash resources at 30 June 2015 (before the strategic Placement
which raised an additional $2.4 million, as announced on 24 August 2015, and
the share purchase plan which closes on 25 September 2015).

Mark Weldon, Chairperson of GEO said: "The last 15 months have been a period
of significant achievement for the Company and the Board is very pleased with
what has been created and achieved by our team.  We are moving from an early
stage business to a growth business with a proven model. This was supported
by the new funding we recently raised predominantly from new strategic,
offshore investors providing patient capital.  We have focused on building a
solid platform and infrastructure for growth and are achieving this whilst
continuing to strongly grow both licence numbers and revenue".

Anna Cicognani, CEO of GEO said:  "We are focusing on profitable growth on
all dimensions: customers, businesses, revenue and a lean cost model. Our
main objectives continue to be improving the top and bottom lines, and
keeping our customers happy. In addition to our direct sales strategy, we
recently began a new phase of developing additional channels to market
through expanding our product ecosystem with integrations to Intuit's
Quickbooks and signing a strategic channel partnership agreement with Telstra
in Australia and AppDirect globally".

Expanding the Board and leadership team
During the period we welcomed two new independent directors to the Board,
both with technology backgrounds. The new directors appointed were Richard
Suhr (ex Google Enterprise, Asia Pacific, now a Partner at EY across Asia
Pacific) and Jodi Mitchell (CEO of SimplHealth, a NZ based SaaS business).

In February 2015, Anna Cicognani joined as CEO, and recently the Company
announced the appointment of a Chief Operating Officer (COO), Jude Manuel.
Anna is based in GEO's Sydney office and Jude will shortly be based in GEO's
Auckland office.

Operational initiatives
The period to 30 June 2015 has seen significant investment in the Product and
Sales areas of the business. This investment focuses on making the product
appeal to a wider audience of customers while building the platform to cater
for continued growth.  GEO continues to implement both its direct and channel
sales strategies to attract new licenced users.

GEO modified its pricing plan in June 2015 and during the months of July and
August 2015 it has seen its average revenue per user (ARPU) increase above
$6.14 per user.

Over the period there has been a focus on maintaining a lean operation as the
business drives towards profitability. As revenue has grown, GEO has
substantially reduced its monthly cash burn.  Employee numbers at the end of
June 2015 are 40, compared to 45 in the business at March 2014. At July 2015,
GEO had a net operating loss for the month of $325,000.  As revenue continues
to grow and the business contains its cost base, this is expected to further
reduce with the net loss after tax expected to reduce in the 12 months to 30
June 2016.

Awards and customer feedback
In 2014, GEO was recognised for its commitment to research and development
(R&D) by receiving a Growth Grant from Callaghan Innovation.  R&D Growth
Grants support firms with a proven track record in R&D and GEO is very
pleased to be associated with Callaghan Innovation.

Customer feedback from companies adopting GEO has been positive.  Customers
have indicated they save 105 minutes per day per person on average, avoid
losing 5 jobs a month and get paid 8 days faster.

Capital raising
On 24 August 2014, GEO announced a placement of approximately $2.4 million at
NZ$0.48c per share, primarily from new strategic investors based off-shore
providing patient capital (the "Placement").  The large global market
opportunity that exists for GEO in the mobile workforce management sector has
attracted new long term investors.

The Placement price of NZ$0.48c represented a premium of approximately 9.1%
to GEO's last 5 day volume weighted average price ("VWAP") prior to the
Placement of NZ$0.44c per share.  The Placement is followed by a share
purchase plan ("SPP") for all eligible GEO shareholders.  The SPP offer
document was posted to all eligible GEO shareholders on 8 September 2015 and
the SPP closes on 25 September 2015.

GEO is set for future growth and raising new capital will enable it to push
further into the Australian market, which is currently GEO's largest customer
market (and where the CEO and Chief Revenue Officer are based), and through
the significant partnership with AppDirect, into the global market (including
the US and Europe).

Outlook
Our focus will continue to be on product, sales and lean operations as we
drive towards profitability.  Importantly, we will continually improve the
product so that it provides greater value to customers, increases sales,
improves customer retention and further increase ARPU. We are positioned to
become a workforce productivity platform which appeals to a range of
businesses who are looking to grow efficiently.  GEO will continue with its
policy of not paying dividends while it continues to invest for growth.

Integrations and building further channels to market will remain a key part
of this strategy, coupled with GEO's direct sales approach.

GEO believes it is a part of the mobility trend globally and with 65 million
mobile workers in the Western World, there is a large target market
opportunity to tap into.

GEO is excited about its future prospects as it moves from an early stage
business to a growth business with new long term and supportive capital
recently raised.

Investor calendar
22 Oct 2015 - Annual Report released
16 Nov 2015 - Annual General Meeting

Refer to attached PDF for unaudited financial statements for the 15 month
period ended 30 June 2015

- ENDS -

For more information please contact:
Anna Cicognani
Chief Executive
Email: [email protected]

Stewart Reynolds
Chief Financial Officer and Company Secretary
Email: [email protected]
End CA:00269991 For:GEO    Type:FLLYR      Time:2015-09-11 08:50:42