essensys (ESYS) H2 2024 earnings summary

Executive summary

• Performance exceeded expectations, with revenue, profitability, and cash surpassing guidance for FY24, driven by a successful transition to a pure-play SaaS model and migration of all customers to the essensys Platform.

• Strategic focus on large, high-value commercial real estate owners and operators, with 82% of ARR now from strategic accounts, underpinning progress toward profitability and operational efficiency.

• Streamlined organization delivered £9m in annualized cost savings, improving agility and decision-making.

• On track to achieve positive adjusted EBITDA and run-rate cash generation in FY25.

Financial highlights

• ARR reached £20.3m, up 5% at constant currency; total revenue was £24.1m, down 2% at constant currency year-over-year.

• Adjusted EBITDA loss reduced by 86% to £0.9m; statutory loss before tax improved to £5.5m from £15.5m.

• Cash balance at year-end was £3.1m, with cash burn reduced to £4.8m and no debt, plus an undrawn £2m loan facility.

• Operating expenses reduced by £6.6m (31%), delivering £9m in annualized cost savings.

• Net revenue retention for strategic customers at 111%; gross revenue retention at 93%.

Outlook and guidance

• On track for positive adjusted EBITDA and run-rate cash generation in FY25, with profitability already achieved in Q1 FY25 and expectations for accelerated gains in H2.

• Revenue mix expected to continue improving as customers adopt the SaaS platform, supported by strategic customer expansions.

• Confident in long-term structural growth opportunity in flexible, tech-driven workspaces despite ongoing macroeconomic headwinds.