Eagle Eye lifts expectations amid strong trading

Marketing software-as-a-service provider Eagle Eye reported “continued positive trading performance” in an update on Friday, raising its forecasts for revenue and earnings.

The AIM-traded firm said a notable development since its interim results in March was the “go-live” of a national grocer in the United States, announced in January and secured with its partner Neptune Retail Solutions.

As a result, the board now expected revenues and adjusted EBITDA for the year ending 30 June to be ahead of current market expectations by about 7% and 10%, respectively.

Eagle Eye said it had benefited from “significant” new customer wins across multiple geographies, the accelerated ability to take customers live, deepening relationships with existing customers, and the impact of the lifting of Covid-19 restrictions.

The board said the company was continuing to benefit from the strength of its software-as-a-service model, having reported annual recurring revenue of £18.9m, net revenue retention of 130%, and churn of 0.04% at the interim results.

Its directors said they were “confident” in reporting continued positive progress for the 2022 financial year.

“We are delighted to have taken one of the largest grocery retailers in the US live on the AIR platform so quickly, providing us with another fantastic demonstration of the relevance of our combined offering with Neptune in this substantial market,” said chief executive officer Tim Mason.

“Our ability to deliver personalised, one-to-one marketing at scale is resonating with retailers around the world, as they seek to accelerate their digital marketing strategies.

“This successful go-live and growing momentum in the business, combined with the underlying strength of our software-as-a-service metrics and record new business pipeline, all combine to underpin the board's confidence in our outperformance in the current year and prospects for sustained growth.”

Eagle Eye said it would further update the market on its trading for the year in July, ahead of the release of audited final results in September.

At 1149 BST, shares in Eagle Eye Solutions Group were up 8.33% at 455p.

Reporting by Josh White at Sharecast.com.