Eagle Eye delivers strong revenue and profits growth in FY23, beating management expectations
() , a SaaS provider focused on personalised real-time marketing, reported unaudited final results for the year ended June 30 2023. The company achieved strong revenue and adjusted EBITDA growth resulting from an expanded customer base. Revenues were up 36% to £43.1m, and adjusted EBITDA increased by 36% to £8.8m. Profit after tax was up 114% to £1.2m, driving strong cash generation with closing net cash at £9.3m on June 30 2023 from £3.6m last year. Recurring revenues (ARR) grew 40% to £33m from £23.9m in 2022.
Eagle Eye acquired AI-focused SaaS provider Untie Nots during the year, providing an accelerated entry into the French market and bringing some of Europe's largest grocers as customers. The move yielded cross-sale opportunities and materially enhanced Eagle Eye's AI offerings.
On the AI front, Eagle Eye added over 60 new features to its Eagle Eye AIR platform, including new promotion types, extensions to existing product capabilities, and new direct-to-consumer API packages. The company is working on a new offering "EagleAI", using Untie Nots' AI platform to create and target personalised offers for customers. It is expected to launch in 2024.
View from Vox
A highly positive set of FY23 results from Eagle Eye, detailing greatly increased revenues, particularly annual recurring revenues (ARR), as well as adjusted EBITDA, profit after tax, and closing net cash, with the latter two growing over 100%. The strong financial performance was ahead of management expectations and reflects Eagle Eye's robust SaaS business model and growing customer demand.
During the year, the company added a number of large customers, namely Morrisons in the UK, Hudson's Bay in Canada, IKEA in Taiwan, plus expansions with Asda in the UK and Woolworths Group in Australia. Eagle Eye also saw significant international revenue expansion, driven by the US (+129%) and APAC (+56%), including a first customer in Singapore. ARR was up 40% to £33.3m and NRR remained high at 137% with very low churn maintained (<1%), providing a solid basis for continued expansion. Moreover, strong cash generation yielded a solid cash position of £9.3m, giving the company increased flexibility to invest in future growth.
Outlook for FY24 is positive as Eagle Eye continues to expand its footprint, driven by growth in demand for personalisation and real-time delivery as retailers seek to apply modern data science and AI-based techniques to power personalisation. The company entered FY24 with strong momentum and a healthy global pipeline of customers. Notably, the acquisition of Untie Nots has provided an additional channel for growth as it has significantly expanded Eagle Eye's AI offerings. Trading in FY24 so far has been in line with management expectations.
Follow News & Updates from Eagle Eye:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.