- GEO reported an increase in loss in FY22.
- The company is focused on improving its products and development capabilities.
- The revenue also dropped 11.2%, according to the annual report.
Technology company Geo Limited (NZX:GEO) released its annual report today (30 September 2022). On Friday when the NZX50 was down 1.20%, GEO’s stock closed the week 3.17% up at NZ$0.065.
GEO, a SaaS business provider for mobile workforce management platforms, claims to be engaged in replacing inefficient, paper-based systems with a simple way to create, cost, and quote jobs in the market.
Geo said that for the reporting period FY22, it focused on improving its products and product development capabilities. This, together with investing in in-market operations in the United Kingdom, led to EBITDA losses and cash outflows for the company.
However, the company expects to see tangible results from these investments in the first half of FY23.
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The company reported a 77.7% increase in net loss from operations and a 160.2% increase in EBITDA loss. Its operating and investing cash flows increased 113.8%.
As per the report, the revenue fell 11.2% to NZ$3.5 million as against 4 million in FY21. Subscription revenues increased 1.2%, while annualised recurring subscription return rate (ARR) increased 5.9%. The company said there were many new customers, and the growth was almost 85% over the prior comparable period.
The company expects product updates by this month and improved onboarding approaches.
The company’s operating costs increased 18.1%, primarily due to customer acquisition, increased marketing costs, and higher cost of GEO’s product & development teams.
According to Tim Molloy, CEO, the company has delivered record quarters for customer growth in FY22. The company’s UK results are improving as GEO learns to differentiate markets.
Further, the company said it expected to accelerate its investment in products and engineering to innovate at a higher speed and deliver product features that customers want. It expects new functionality to improve customer retention and allow the business to scale up its customer acquisition.