Final Results, Analyst Briefing & Investor Presentation

Strong Growth with Record New Business

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 2024 (the "period").

Financial Highlights:

Operating and Other Highlights:

• Positive adjusted EBITDA underpinned by revenue growth of 20% YoY.
• ARR increased 23% year on year to £15.5 million.
• Strong balance sheet, with positive cash generation facilitating further near term growth-investment in the business.
• Company’s key leading indicator of future recurring revenue, TACV, increased by 17% YoY to £19.2 million.
• Continued exceptional customer retention of 97% for the year, a 2bps increase over prior year (2023: 95%) with a net retention rate of over 100% at 102% (2023:103%).
• Strength of cloud platform evidenced by >99.999% uptime globally in year, including three straight quarters at 100%.
• Strong underlying volume of new business contracts signed, with new logos increased by 10% to 240 signed in the Period.
• 80% new business contracts sourced through the Company’s partner eco-system.
• Expansion of our market leading partner eco-system, including the highlight signing of a global reseller agreement with Zoom, with first customers already signed and live in the Period.
• Comprehensive U.K. court victory and subsequent settlement of all remaining litigation patent lawsuit matters with competitor

¹ Adjusted EBITDA is the loss on Operating Activities before depreciation and amortisation, exchange movements charged to the profit and loss, exceptional items and expenses relating to share option charges

² Adjusted PBT is the Loss before Tax before exchange movements charged to the profit and loss, exceptional items and expenses relating to share option charges

³ACV is the annual recurring revenue generated from a contract.

⁴ 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.

⁵ ARR is Annual Recurring Revenue of all the deployed contracts at the Period end expressed in GBP.

⁶ NRR is the net retention rate of the contracts that are live on the AWS platform rate and is calculated using the opening total value of deployed contracts 12 months ago less the ACV of lost deployed contracts in the last 12 months plus the ACV of upsold contracts signed in the last 12 months all divided by the opening total value of deployed contracts at the start of the 12 month period.

⁷Customer retention is calculated using the formula: 100% minus (the ACV of lost deployed contracts on the AWS platform in the last 12 months divided by the opening total value of deployed contracts 12 months ago expressed as a percentage).

Current Trading:

• Strong start to the new financial year with new business sales for Q1 in line with management expectations and ahead of the prior year.
• As announced in the Company’s update of 28 August 2024, the Group has signed a major new global reseller which has immediately resulted in the first customer being signed through this new partner in Q1. 
• Voice integration across this partner’s global UCaaS and CCaaS platform is expected to be complete in the coming weeks, with full product launch expected by end H1.
• New business sales highlights since the year end include:
• A new contract with a major US head-quartered BPO who will be using PCI Pal’s services initially across a number of its customers in the region.  The BPO has operations globally.
• A sizeable expansionary upsell to one of its largest customers to be utilised across various countries internationally. A testament to the Group’s strong customer relations.
•  An initial contract signed via the Company’s EMEA operation with a “Big Four” accounting and consulting firm.  The contract which is to initially provide in-house services regionally has been designed with future global and cross-department expansion in mind given the extensive operations of this new hybrid customer / partner. 

Commenting, James Barham, Chief Executive Officer, said:

“Overall we have made strong progress across FY24, continuing to deliver against our stated objectives to lead our market in true cloud solutions, and delivering to customers globally across our extensive partner eco-system. 

“The unfounded patent litigation brought against us, was a management distraction and cash drain for most of the last three fiscal years, and we are therefore clearly pleased that this litigation is now fully resolved following our success in the UK courts. What has been very encouraging is that throughout this Period, we have continued to grow revenues at market leading rates whilst also maintaining exceptional customer retention.  This, together with the improving operational performance of the underlying business, has created a strong platform for future profitable growth.

“We have started FY25 well with new business sales both ahead of last year and in line with management expectations.  We are therefore now executing against our near-term plans to make additional and considered investments in the business that will underpin the longer term future growth prospects of the Group.  With adjusted EBITDA profit achieved in FY24, positive operating cashflow and a strengthened strong balance sheet, we are excited by the breadth of the opportunity ahead of the Group as we continue building deeper and wider channel partnerships, progress our product roadmap, and further scale the business into new territories.”

Analyst Briefing: 9.30am today, Tuesday 22 October 2024

An online briefing for Analysts will be hosted by James Barham, Chief Executive Officer, and Ryan Murray, Chief Financial Officer, at 9.30am on Tuesday 22 October 2024 to review the results and prospects. Analysts wishing to attend should contact Walbrook PR on [email protected] or 020 7933 8780.

Investor Presentation: 11.00am on Friday 25 October 2024 (UK time)

The Directors will hold an investor presentation to cover the results and prospects at 11.00am on Friday 25 October 2024 (UK time).

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. 

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/