Loyal Solutions

CEO Peter Kisbye comments:

“In the period 1 July 2023 – 30 June 2024 (“the Period”) the Company delivered the following results:
 

• Top line revenue growth of 35,4% for the second half year and 49,1% for the full year, reaching 97% of annual budget
• Staff expenses grew at a limited rate of 1,8%, despite almost 50% growth in revenue, a testament to our SaaS business model
• Gross profit for the Period increased by 259% from TDKK 3.428 to TDKK 12.313
• Revenue-Cost of Goods Sold (CoGS) increased by 86% from TDKK 12.543 to TDKK 23.363
• Growth in annual recurring revenue (ARR) of 9,4%
• Gross margin increased from 47% to 58%
• EBITDA for the year of TDKK -5.793 vs budget EBITDA of TDKK -8.186 and vs last year TDKK -14.359
• Operating profit for the year of TDKK -8.684 vs budget of TDKK -9.968 vs last year TDKK -17.325
• Cash receipts for the year of TDKK 40.177 TDKK vs last year TDKK 29.374, an increase of 37%

We see our revenue growth rate of 49,1% as solid and as a testament to our business model. While maintaining this solid growth rate, the Company has continued to focus on operating expenses, efficiency and cash flow. We can report a better than budgeted EBITDA (+29%) and result (+13%). And an improvement from last year of 60% on EBITDA and 50% on operating profit.
Cash flow continues to be monitored closely. While we are not yet in positive EBITA territory, we have made significant strides towards that goal, and barring the unforeseen our trajectory puts us in EBITDA positive territory at the end of the coming fiscal year.

During the Period our pipeline grew at the expected rate and our expanding list of large global reference clients continue to generate interest in Loyal Solutions as a company. Our sales lead times remain long, as we market strategic long-term partnerships to large clients, who all have evolved processes for procurement.  Our sales cooperation with Visa for the Visa VMLS product has also progressed as expected.
The Company`s LoyalTfacts® SaaS based payment/card-linking platform and technology continues to be viewed by clients as market leading. Our brand positioning focuses on quality, compliance & security, value and ROI for our clients.

Our current clients’ implemented programs continued to perform very well during the Period, further validating our SaaS business model, and proving the inherent long term growth potential in SaaS payment/card-linked loyalty programs. While at different stages of maturity, nearly all current programs achieved satisfactory core growth rates year-on-year, and with several clients now expanding their programs to other countries, we have a firm client base on which to build future growth.

Our most important resource, our employees, continued to do an outstanding job. Despite being busy, we have maintained our focus on work-life balance, inclusivity and on providing flexible working hours and locations. Our IT hub in South Africa has been an integral part in delivering solutions and our IT organization benefits from having operations in both Denmark and South Africa.

We truly believe in putting employees first and that team-is-everything, so a big thank you to everyone at Loyal Solutions for the results delivered. “

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HIGHLIGHTS FOR THE SECOND HALF YEAR 1/1-30/6 2024 AND FULL YEAR

Business and operational highlights

During the second half of the financial year 2023/24 and full year the Company reached several milestones including:

• Top line revenue growth of 35,4% for the second half year and 49,1% for the full year, reaching 97% of annual budget
• Staff expenses grew at a limited rate of 1,8%, despite almost 50% growth in revenue, a testament to our SaaS business model
• Gross profit for the Period increased by 259%   from TDKK 3.428 to TDKK 12.313
• Revenue-Cost of Goods Sold (CoGS) increased 86% from TDKK 12.543 to TDKK 23.363
• Growth in annual recurring revenue (ARR) of 9,4%
• Gross margin grew from 47% to 58%
• EBITDA for the year of TDKK -5.793 vs budget EBITDA of TDKK -8.186 and vs last year TDKK -14.359
• Operating profit for the year of TDKK -8.684 vs budget of TDKK -9.968 vs last year TDKK -17.325
• Cash receipts for the year of TDKK 40.177 TDKK vs last year TDKK 29.374, an increase of 37%
• Experienced our first client churn since IPO with Accor ALL de-commissioning program
• LoyalTfacts® enabled our fintech client Tymit to launch innovative co-brand credit card with Harley-Davidson
• LoyalTfacts® enabled SAS EuroBonus to launch the first debit card earning EuroBonus points with Lunar, a leading Nordic Fintech
• LoyalTfacts® enabled Qatar Airways launch Co-branded credit card in the USA
• The successful Darna by Aldar program launched Darna 2.0 in March, further expanding the program
• LoyalTfacts® enabled Emirates Skywards to partner with leading retailer Union Coop
• Client archived 51%! churn reduction using LoyalTfacts®, illustrating the ROIs available in payment/card-linked loyalty
• Continued building our pipeline on direct sales, partner sales and via our sales partnership with Visa
• Delivered a range of platform upgrades, making program management even easier for our clients including:
  • Midas® - AI based “Merchant ID Algorithmic Surveillance”, making merchant management significantly easier
  • Timm ® - “Terminal ID Monitoring Module”, making the management of terminal IDs a breeze
  • Campaign 3.0. Our new state-of-the-art campaign module, offering clients new and exciting options for even more engagement
• Integration to BankAxept (Norway) completed
• Passed the annual PCI DSS Level 1 audit
• Received ISO 27001, 27017, 27018 certification and started process for SOC2 certification expected to be completed in September 2024.

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Conference call to present second half of financial year 2023/24

Loyal Solutions will present its second half year report 2023/24 results in a brief live webcast through MS Teams on 27 August 2024, at 10.00-10.30 CET. Please join and ask questions directly to CEO, Peter Kisbye, at this investor event.

To participate, please join the conference call on this link.

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The audited annual report for the Period will be made public on our website under “reports and presentations” on the 24 September 2024 at 08.00 CET. The Annual General Meeting will be held on 10 October 2024 at 13.00 CET at the Company headquarters in Copenhagen.

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This financial report constitutes inside information that Loyal Solutions A/S is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was sent for publication, through the agency of the contact persons set out below, at the time stated by the Company’s news distributor, Cision, at the publication of this press release