READCLOUD LIMITED — Earnings Release 2024

Nov 19, 2024

ASX Release

20 November 2024

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Audited FY24 Results Positive earnings momentum and FY25 Outlook

ReadCloud, a provider of technology and training services to schools and industry, is pleased to publish its audited financial results for FY24.

The results are consistent with the unaudited results and trading update released to the market on 29 October accompanying the Appendix 4C Cashflow update for the September quarter.

FY24 Financial Highlights

This table highlights key aspects of the audited financial results for the consolidated operations of ReadCloud for the 12 months to 30 September 2024:

$M	FY24	FY23	Change
Revenue	12.3	10.7	15%
Sales & Fee Revenue	11.9	10.3	15%
Gross Profit	6.6	5.8	13%
Operating Expenses	6.5	6.9	-6%
Underlying EBITDA*	0.4	(0.8)	146%
Restructuring Costs	0.2	0.1	118%
Depreciation & Amortisation	1.0	1.1	-10%
Statutory Profit/(Loss) after Tax	(1.0)	(2.3)	55%
Operating Cashflow	0.4	(0.4)	207%
Cash at 30 September	1.4	1.7	-16%

*Underlying EBITDA = earnings adjusted for interest, depreciation, amortisation, share-based payments, transaction costs on acquisitions and restructuring costs

Readcloud Limited | 126 Church Street, Brighton, Victoria, 3186 P +61 3 9078 4833 | W www.readcloud.com ABN 44 136 815 891

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The key financial highlights for FY24 include:

• 15% organic growth in Sales & Fee Revenue

• Disciplined cost management delivering a reduction in operating expenses (down 6%) whilst supporting organic growth and ongoing investment in customer facing initiatives

• Organic revenue growth in all business units with eBooks up 7%, VET-in-schools up 10% and Industry Training up 50%

• Transition into positive underlying earnings delivered with a 146% improvement on FY23

• Operating cashflow positive with cash at 30 September of $1.4m

Further detail can be found in the FY24 Investor Slides and the FY24 Annual Report.

Outlook for FY25

ReadCloud enters FY25 with a restructured workforce that has brought the business closer to its customers. The customer base is expected to build further in FY25, with growth accelerating earnings as retention rates have been strengthened.

The Company will continue to focus on delivering profitable growth and carefully managing investment to support a further acceleration in revenue growth.

The Company expects revenue growth to continue and positive cash flow in FY25.

Investors & Media:

Luke Murphy, Chief Financial Officer +61 409 933 924

About ReadCloud Limited

ReadCloud is a leading provider of eLearning software solutions and industry-based training.

ReadCloud’s eReader platform creates an engaging and collaborative learning environment with seamless access to dynamic, interactive digital content from leading publishers. Teachers and students benefit from social annotations, media-rich embedding options, cross-platform compatibility, and an engaging text-to-speech feature available in 120 languages.

ReadCloudVET enables the delivery of 50 qualifications to 15,000 learners across three specialist Registered Training Organisations (RTOs) in Vocational Education and Training Delivered to Secondary School Students.

ReadCloud’s strong connection to industry and career pathways extends to Southern Solutions Training Services, an RTO specialising in flexible and blended training models including delivery in a genuine workplace environment for qualifications in Early Childhood Education and Care, Business, Aged Care, Hospitality, Logistics and Real Estate.

This announcement is authorised for release to the market by the Board of Directors of ReadCloud Limited.

Readcloud Limited | 126 Church Street, Brighton, Victoria, 3186 P +61 3 9078 4833 | W www.readcloud.com ABN 44 136 815 891