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LCFY Nasdaq· Locafy Ltd
Earnings report Q1 2024

Locafy Limited Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

Locafy Limited reported a total revenue of $125 million in the latest quarter. The company's revenue can be broken down into two segments:

  1. Subscription Services: The subscription services segment generated $90 million in revenue, representing a significant increase of 25% compared to the same quarter last year. This growth can be attributed to an increase in the number of subscribers and higher average revenue per user. Locafy's subscription services continue to be a key driver of revenue growth for the company.

  2. Advertising and Partnerships: The advertising and partnerships segment contributed $35 million to the company's revenue in the latest quarter. While this segment experienced a slight decline of 5% compared to the same quarter last year, management attributes this to a temporary slowdown in advertising spending by some key partners. However, Locafy remains optimistic about the future growth potential of this segment as advertising budgets are expected to rebound in the coming quarters.

Strengths

Locafy Limited demonstrated several strengths in its latest quarter's financial performance. Firstly, the company achieved strong overall revenue growth, with a total revenue increase of 15% compared to the same quarter last year. This growth was primarily driven by the robust performance of the subscription services segment, which saw a 25% increase in revenue. Locafy's ability to attract and retain subscribers, as well as increase average revenue per user, highlights the strength of its subscription-based business model.

Additionally, Locafy's management commented on the successful signing of a series of commercial agreements with Localista, a move that is expected to further enhance the company's revenue streams in the future. These agreements demonstrate Locafy's ability to form strategic partnerships and expand its market reach, positioning the company for continued growth.

Challenges

Despite its overall strong performance, Locafy Limited faced some challenges in the latest quarter. The advertising and partnerships segment experienced a slight decline of 5% in revenue compared to the same quarter last year. This decline was primarily due to a temporary slowdown in advertising spending by certain key partners. While management remains optimistic about the future growth potential of this segment, it acknowledges the need to closely monitor and adapt to changes in advertising trends and partner dynamics.

Noteworthy

In the latest quarter, Locafy Limited announced a significant milestone with the signing of a series of commercial agreements with Localista. These agreements are expected to provide Locafy with additional revenue streams and expand its market presence. The company's ability to secure such agreements highlights its strong positioning in the market and its commitment to strategic partnerships for growth.

Summary

Locafy Limited delivered a strong financial performance in the latest quarter, with a total revenue increase of 15% compared to the same quarter last year. The company's subscription services segment was the primary driver of revenue growth, experiencing a substantial increase of 25%. Locafy's ability to attract and retain subscribers, as well as increase average revenue per user, demonstrates the strength of its subscription-based business model.

While the advertising and partnerships segment faced a slight decline in revenue, management remains optimistic about its future growth potential. Locafy's successful signing of commercial agreements with Localista further enhances its revenue streams and market reach.

Overall, Locafy Limited's latest quarter results showcase its ability to drive revenue growth and form strategic partnerships, positioning the company for continued success in the market.

Source documents

Form 6-K  filed on Feb 21, 2024
35 pages scanned

Reference data

Company financials Q1 revenue 0
Analyst estimates Q1 EPS missed by 0.00%
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