Interim Results for the six months to 31 December 2024 Analyst Briefing & Investor Presentation

PCI-PAL PLC (AIM: PCIP), the global cloud provider of secure payment solutions for business communications, is pleased to announce its unaudited interim results for the six months to 31 December 2024 (the “Period” or “H1”).

Financial highlights for the Period

* As restated, see note 7 for further details.

Operating highlights in the Period

• Exit run rate ARR at the end of the Period increased 21% to £16.8 million
• Record H1 new business sales at £1.9 million, up 19%
• Adjusted EBITDA of £0.95 million and Adjusted profit from operating activities of £0.18 million
• Expansion of partner eco-system in Period with signing of new strategic partnership with RingCentral, Inc
• Successful renewal of large UK government contract worth £5m over initial three year period, with option to extend for further three years
• Continued exceptional performance of public cloud platform with uptime exceeding 99.999% and now providing services to over 700 customers globally
• Progress with product roadmap with first in-app AI capabilities amongst other features expected to be launched later in CY25
• Successful competitor displacement with enterprise contract win in UK with FTSE250 company
• New CFO on-boarded, continued strong cohesion of PCI Pal leadership team, and excellent corporate culture with high people retention 
• New PCI Pal Advisory Committee member added, Tamzyn Furse, an experienced Chief People Officer with experience in growing exceptional teams in fast growing international technology companies.

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

² Adjusted for exchange movements charged to the profit and loss, exceptional items, non-operational costs and expenses relating to share option charges.

³ ARR is the Annual Recurring Revenue of all the deployed contracts.

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 ACV is the annual recurring revenue generated from a contract.

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.

⁷ AWS platform Gross Retention Rate is calculated using the ACV of retained, deployed contracts from twelve months ago divided by the opening total value of deployed contracts at the start of the twelve month period

Current trading & Outlook

The new business sales momentum in H1 has continued into H2 with ACV to end of February 2025 now at £2.7 million with the Company’s sales pipeline growing with the addition of a number of new strategic partners this year.

Deployments remain the key driver for revenue recognition of those services that have been sold and contracted to date in order to deliver management’s full year revenue and closing ARR run rate expectations.  We remain focused on continuing the operational progress we have made to date to reduce the Company’s time to revenue for those newly signed customer projects yet to reach revenue recognition.

As we continue to execute against our near-term objectives, we are also looking ahead to the strategic opportunity for the business given the sizeable addressable market.  This includes expanding our international footprint, with our first hires in mainland Europe expected later this financial year; expanding our product suite with adjacent products to drive new revenue streams; and increasing our awareness of selective M&A opportunities that would complement our organic growth strategy and drive further value to shareholders either through earnings enhancement or accelerated adjacent product opportunities.

Commenting on the results for the Period and prospects, James Barham, Chief Executive Officer said:

“I am pleased with our execution in H1 with highlights being the strong momentum in new business sales, the expansion of our market-leading partner eco-system, and solid progress against our product roadmap objectives for the year.  We have built up an excellent market position as the leading cloud provider in our space, and we intend to capitalise on this to take advantage of the sizeable addressable market opportunity ahead.

“Organic growth at greater scale requires investment, and we intend to prudently utilise the profitability of the Group to drive continued long term growth momentum, whilst also continuing to consider inorganic growth opportunities.

“The Board remains confident in the Company’s prospects and is keenly focused on delivering the Group’s near-term objectives whilst also strategically looking ahead to the next 3-5 years and the opportunity to scale the business further, utilising the strong foundations we have built to date.”

Analyst Briefing: 9.30am today, Tuesday 4 March 2025

An online briefing for Analysts will be hosted by James Barham, Chief Executive, and Ryan Murray, Chief Financial Officer, at 9.30am today Tuesday 4 March 2025, 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 6 March 2025 (UK time)

The Directors will hold an investor presentation to cover the results and prospects at 3.00pm on Thursday 6 March 2025 (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 environments 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/