Final Results, Analyst Briefing & Investor Presentation

Final Results
Analyst Briefing & Investor Presentation
Continued strong new business momentum

PCI-PAL PLC (AIM: PCIP), the global provider of secure payment solutions for business communications, is pleased to announce full year results for the year ended 30 June 2022 (the "period").

Financial Highlights

• Revenue increased 62% to £11.94 million (2021: £7.36 million)
• Gross margin increased to 84% (2021: 75%) reflecting the majority of revenues delivered through our  cloud based Amazon Web Services (“AWS”) platform
• Significant increase in Total Annual Contract Value (“TACV¹”) at 30 June 2022 by 40% to £13.36 million (2021: £9.51 million), with an 11% increase in ACV signed in the period to £3.46 million (2021: £3.11 million).
• Deferred income increased by 31% to £10.62 million (2021: £8.09 million)
• Strong performance delivered adjusted operating loss² better than expectations at £2.02 million (2021: £3.85 million)
• Loss before tax at £3.11 million (2021: £4.19 million) which includes a £0.80 million (£2021: £nil) charge in relation to legal fees for defending the ongoing patent claim
• Cash balances at year end of £4.89 million (2021: £7.52 million) and the Group is debt free

Operating and Other Highlights

• North American momentum continues to build, with revenue up 83% and a year-on-year increase in ACV signed of 7%. North America now accounts for 28% of the Group revenue (2021: 25%)
• Opened offices in Australia and Canada expanding the global reach of the Group
• Recurring revenue model continues to build, with recurring revenues accounting for 89% of total revenue (2021: 88%)
• Signed 217 new sales contracts in the year (2021: 195)
• A further 164 new contracts live with our services in the period (2021: 121)
• Time to go live (“TTGL³”) of new contracts signed in the last 18 months marginally ahead of management expectations at below 5 months
• 85% of new sales contracts for the Group generated from channel partners (2021: 78%)
• Added two new members to the PCI Pal Advisory Committee, both US-based, experienced product and engineering executive, Jayesh Patel who was formerly Chief Product Officer at Vonage Inc, and Emilia D’Anzica, a customer success executive and consultant

1 TACV is the total annual recurring revenue of all signed contracts, whether invoiced and included in deferred revenue or still to be deployed and/or not yet invoiced 2 Loss from Operating Activities before exchange losses/gains recorded in the profit and loss exceptional items and share option charges
2 Loss from operating activities before exceptional items and share option charges
3 TTGL is the average time it takes a contract to be deployed measured from the date of signature

Current trading

• Strong start to new financial year with key metrics in line with management expectations.
• Sales highlights since year end:
  • Signed large well-known US-focused retailer with over 1,500 stores nationwide
  • New contract signed through a top performing partner in the UK with a well-known international food and drink company with an international footprint
• New integrated reseller partnership signed with a B2B telco in Canada. This new partner has more than 100,000 customers and has a fast growing business in the Canadian contact centre market

Commenting on results and prospects, James Barham, Chief Executive said:

“FY22 is a year we can be proud of at PCI Pal. Having taken the steps to expand our addressable market following the fundraise in April 2021, we have executed against our ambitious plans in the year. We have driven organic revenue growth to market leading levels, whilst at the same time managing the processes of an unfounded patent case against us as well as meeting the challenge of a highly competitive jobs market.

“We have taken another step up in the last 12 months, reaching several financial milestones including £10 million ARR from our true-cloud, SaaS subscription services. This continued progress against our plans is now creating further opportunity as we build more momentum in our expanded product vision, as we look to add further value layers to our existing compliance and secure payment solution suite.

“With our market leading partner eco-system, mature cloud technology, and our ability to serve customers on a truly global scale, we are very well positioned to further capitalise on the broadening opportunities in front of us. I continue to look forward with confidence to another year of strong growth in FY23.”

Analyst Briefing: 9.30am on Tuesday 6 September 2022

An online briefing for Analysts will be hosted by James Barham, Chief Executive, and William Good, Chief Financial Officer, at 9.30am on Tuesday 6 September 2021 to review the results and prospects. Analysts wishing to attend should contact Walbrook PR on [email protected] or 020 7933 8780.

Investor Presentation: 3.00pm on Thursday 8 September 2022

The Directors will hold an investor presentation to cover the results and prospects at 3.00pm (UK time) on Thursday 8 September 2022.

The presentation will be hosted through the digital platform Investor Meet Company. Investors can sign up to Investor Meet Company and add to meet PCI-PAL PLC via the following link https://www.investormeetcompany.com/pci-pal-plc/register-investor. For those investors who have already registered and added to meet the Company, they will automatically be invited.

Questions can be submitted pre-event to [email protected] or in real time during the presentation via the "Ask a Question" function.

Annual Report & Accounts

The Annual Report & Accounts and Notice of Annual General Meeting will be posted to the Company’s website (www.pcipal.com) and posted to shareholders in due course.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

For further information, please contact:

About PCI Pal:

PCI Pal is a leading provider of Software-as-a-Service (“SaaS”) solutions that empower companies to take payments from their customers securely, adhere to strict industry governance, and remove their business from the significant risks posed by non-compliance and data loss. Our products secure payments and data in any business communications environment including voice, chat, social, email, and contact centre. We are integrated to, and resold by, some of the worlds’ leading business communications vendors, as well as major payment service providers.

The entirety of our product-base is available from our global cloud platform hosted in Amazon Web Services (“AWS”), with regional instances across EMEA, North America, and ANZ.

For more information visit www.pcipal.com or follow the team on Linkedin: https://www.linkedin.com/company/pci-pal/