LONDON - Eagle Eye Solutions Group PLC, a SaaS and AI technology firm, reported a stable financial performance for the first half of fiscal year 2025, with a slight increase in group revenue and a continued shift towards a SaaS-based business model. The company announced a five-year global original equipment manufacturer (OEM) agreement with a leading enterprise software applications provider, marking a significant milestone in its growth strategy.
For the six months ending December 31, 2024, Eagle Eye's group revenue was marginally up by 0.4% at £24.2 million compared to the same period the previous year. SaaS revenue rose by 10.4% to £19.5 million, driven by expansion with existing customers and expected double-digit growth in Annual Recurring Revenue (ARR). Professional Services revenue, however, declined by 16.4%, and SMS revenue decreased significantly by 77.5% as the company accelerates its transition to SaaS.
The company's adjusted EBITDA remained flat at approximately £5.9 million, maintaining an EBITDA margin of around 24%. Net cash increased by 51% to £11.8 million as of December 31, 2024, bolstered by strong cash performance and a new £10 million revolving credit facility with HSBC Innovation Bank.
Eagle Eye secured several new wins during the period, including contracts with UK retailer Waterstones Booksellers, Côte, Transa Backpacking in Switzerland, and RONA in Canada. The company also renewed major multi-year contracts, contributing to over £16 million of ARR and £43 million in total contract value.
Despite these advancements, the company anticipates revenue for fiscal years 2025 and 2026 to be approximately 15% and 18% below current market expectations, respectively, due to a reduction in Professional Services revenue and longer sales cycles influenced by the macroeconomic climate. However, EBITDA margins are forecast to improve to approximately 24% and 25%, respectively, as SaaS revenue becomes a larger portion of the business.
Chief Executive Tim Mason expressed confidence in the company's trajectory, citing the new OEM agreement as a catalyst for accelerated revenue growth from fiscal year 2027 onwards. The company aims to reach £100 million in revenue with an EBITDA margin target of 30% over the next 3-5 years.
Eagle Eye is set to announce its results for the six months ended December 31, 2024, on March 18, 2025. This update is based on a press release statement from the company, providing an insight into its financial health and strategic initiatives.
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