IP : Actual Experience plc - Preliminary Results

Actual Experience plc (AIM: ACT), the analytics as a service company, is pleased to announce its preliminary results for the year ended 30 September 2018.

Highlights

• Signed the first full-scale deployments of our analytics within the customers of two of our Channel Partners
  • Engagement levels increased with these Channel Partners following deployments
  • One of our Partners anticipates having their own internal revenue forecast for our product with resources committed wholly to us within their product and sales organisations
• Revenue of £1.08m (2017: £0.36m), following invoicing on one of our large-scale deployments with the second contributing to revenues in fiscal year 2019 and beyond
• Expansion of the open purchase order, demonstrating commercial confidence by our Partner in a developing order pipeline as they continue to build on early small-scale initial deployments of our analytics
• Developing a more robust sales process in partnership with certain Channel Partners

Dave Page, CEO of Actual Experience plc, said: 'Significant progress has been made in the development of our product and ensuring that the operational processes are in place to enable large scale deployments within our Channel Partners' customer bases. This has been validated with the confirmation of two large scale deployments, the first of which has contributed meaningful revenues in the year under review, with the second due to contribute in the current year.

'We are confident that these initial deployments will serve as the start of a growing pipeline of deals and expect to see the number and rate of deployments increase gradually throughout FY'19, bringing another year of increased revenue and laying down Annual Recurring Revenue for the years to come.'

Enquiries:

Actual Experience plc	via Alma PR
Dave Page, Chief Executive Officer Steve Bennetts, Chief Financial Officer
N+1 Singer Advisory LLP	Tel: [phone]
Shaun Dobson Lauren Kettle
Alma PR
Josh Royston Caroline Forde Robyn Fisher	Tel: [phone] Tel: [phone] Tel: [phone]

About Actual Experience

Actual Experience's analytics provide the digital Voice of the Customer. This is a real-time, data-driven view of what end users would say about the quality of a company's digital products and services, and why. Our customers can analyse everything that impacts the experience quality in their digital supply chains, for any service, type of user or the Internet of Things. It gives them complete transparency from the point of provision to the point of use and whether inside or outside their business's control. The insights can be used to make continuous improvements to their business performance.

Actual Experience is a listed-company on the London Stock Exchange (ACT). Our development Headquarters are in Bath, UK, and we also have offices in London. Actual Experience's unique digital analytics as a service is founded on ten years of cutting-edge research at Queen Mary University of London.

www.actual-experience.com

Chairman's Statement

I am pleased to report that 2018 was the year in which we delivered the first full scale customer deployment with one of our Channel Partners. Our singular focus throughout the year on supporting our Partners to achieve these deployments was effective, and we were able to roll out our analytics on time and at scale. A second large order was announced in June, however, the revenues from this second customer deployment are not included in our FY'18 financial results. Its associated revenues will contribute to the current fiscal year's revenue figure.

In addition to those announced, throughout the year we saw a number of smaller deployments into the customers of our Channel Partners. Much like the growth demonstrated by the second announced deployment, we expect some of these to grow in size and value reaching large scale over the next 12-24 months.

The large-scale implementation of our Analytics-as-a-Service ('AaaS') represents the first validation of the market opportunity for Actual Experience. The Board remains confident that large enterprise customers of our Channel Partners, deployed at full scale, can deliver revenues in the order of $500,000 per annum to the Company. The typical size and type of organisation with whom we have chosen to partner, means that a committed Channel Partner has the potential to deliver at least $10m annual revenue to Actual Experience. We still have some distance to go before achieving this target, but it is one for which we have prepared the business and which we believe we can achieve.

Strategy

The market opportunity for Actual is vast. In 2017, UNCTAD, the main U.N. body dealing with trade, investment and development issues, estimated the value of the global digital economy to be $25t, made up of digital transactions between businesses and their customers.

The use of our analytics enables, for the first time, the leaders of these businesses to see when their customers or employees are struggling with poor digital quality and identify the areas impacting their digital experience. Our unique proposition, supporting businesses to improve the user experience of their digital products and services through the use of our AaaS, gives our analytics far-reaching applicability, with the potential to benefit the entire global digital economy.

We will continue development, ensuring that our product is simple to deploy and use and that our Partners and their customers can readily make full use of our analytic capabilities.

Financials and cash

As a result of the first large scale customer deployment and its part year contribution, revenue for the year increased to £1.08m (2017: £0.36m) with an exit Annual Recurring Revenue figure of £1.6m. After the year end this figure has further increased to £1.8m as at December 2018. Given this level of recurring revenue and year end cash balances of £10.8m, the Board remains confident that Actual is well positioned to introduce our AaaS into the global digital economy at scale.

Channel Partners

Working closely with two of our Channel Partners during the year has allowed these two Partners to create a template for installing our analytics at scale into their large customers. Now that this template is in place, and its effectiveness evidenced, we are seeing an increase in momentum and engagement within these Partners. I thank them for the significant investment of resources they are making in deploying our AaaS and their continued confidence in our services.

Our people

Our people continue to be the core of our success. I am delighted that employee engagement scores continue to be high and above the industry benchmark. Further details of those results, support and benefits will be available in our 2018 Annual Report and Accounts. With the rest of the Board, I would like to extend my gratitude to all of our colleagues for their hard work and dedication throughout the year.

Shareholders

In September we hosted a Capital Markets Day. Attendees had the opportunity to hear from one of our customers first hand, as well as seeing a live demonstration of our service and an update on progress within the business. I would like to thank all of our shareholders for their time and continued support to the Company.

Outlook

In 2018, revenues increased materially, in validation of our business model, establishing long-term annuity revenues. Our focus is now to build on the success of 2018, working closely with our Channel Partners, to develop a pipeline and bring an increasing number of customers into production. We expect progress to increase as the year goes on. The Board continues to be confident that we can capitalise on the massive market opportunity that is before us, and we look forward to converting that potential.

Stephen Davidson
Chairman

To read the full RNS, please click here.