6-K
Locafy Ltd (LCFY)
UNITEDSTATES
SECURITIESAND EXCHANGE COMMISSION
WASHINGTON,DC 20549
Form6-K
REPORTOF FOREIGN PRIVATE ISSUER
PURSUANTTO RULE 13a-16 OR 15d-16 OF THE
SECURITIESEXCHANGE ACT OF 1934
Forthe month of November 2024
CommissionFile Number: 001-41333
LOCAFYLIMITED
(Registrant’sname)
246AChurchill Avenue, Subiaco Western Australia 6008, Australia
(Addressof principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
On November 11, 2024, Locafy Limited (the “Company”) issued a press release, “Locafy Reports Fiscal First Quarter 2025 Results,” which is attached hereto as Exhibit 99.1.
| Exhibit | Description of Exhibit |
|---|---|
| 99.1 | Press Release dated November 11, 2024 |
Incorporationby Reference
This Report on Form 6-K, including all exhibits attached hereto, is hereby incorporated by reference into the Company’s Registration Statement on Form F-3, as amended, originally filed with the Securities and Exchange Commission on May 19, 2023 (File No. 333-272066), to be a part thereof from the date on which this Report on Form 6-K is submitted, to the extent not superseded by documents or reports subsequently filed or furnished.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| LOCAFY LIMITED | ||
|---|---|---|
| Date:<br> November 12, 2024 | By: | /s/ Gavin Burnett |
| Name: | Gavin<br> Burnett | |
| Title: | Chief<br> Executive Officer |
Exhibit99.1
LocafyReports Fiscal First Quarter 2025 Results
| ● | Initiated the transition to a global publishing business powered by proprietary, world-class SEO technology |
|---|---|
| ● | Completed operational cost-cutting and product automation |
| ● | Finalized strategy to enter enterprise publishing, targeting high-value niche content sites |
PERTH,Australia – November 12, 2024 – Locafy Limited (Nasdaq: LCFY, LCFYW) (“Locafy” or the “Company”), a globally recognized software-as-a-service technology company specializing in “entity-based” search engine optimization (SEO), today reported financial results for the 2025 fiscal first quarter ended September 30, 2024. All financial results are reported in Australian Dollars (AUD).
OperationalHighlights
Achieved several key technology and product milestones that lay the groundwork for revenue growth in fiscal 2025, including:
| ● | Successfully<br> integrated Article publishing solution into the Locafy platform. Previously, the Article<br> Accelerator technology was applied to third-party websites that published their articles,<br> which Locafy then “boosted.” However, this approach was no longer viable due<br> to Google’s recent enforcement of penalties for site abuse. Now, Locafy can create,<br> publish, and boost articles within its ecosystem to achieve national search prominence using<br> proprietary technology and expertise. |
|---|---|
| ● | Identified<br> a market opportunity to create locally focused business articles utilizing business listing<br> content from its directories and publishing partners connected via its application program<br> interface (API). The production of a prototype solution was successfully completed, leveraging<br> generative artificial intelligence (AI) to automate article creation and publishing on Locafy’s<br> assets. Initial test articles achieved Page 1 rankings for target keywords within 30 days. |
| ● | Revitalized<br> scoop.com.au, an online directory specializing in the travel, entertainment, and lifestyle<br> sectors, which was acquired earlier in 2024. With a strong Moz Domain Authority of 36, over<br> 48,000 backlinks (including approximately 5,000 from Wikipedia and prior rankings for more<br> than 170,000 organic keywords), scoop.com.au presented an important asset. Leveraging this<br> quality and Locafy’s technology, more than 600,000 pages with contextually relevant<br> content were indexed in under 30 days. Locafy intends to apply insights from this process<br> to its other niche content and directory publishing assets. |
ManagementCommentary
“Our operational progress during the quarter has established a strong foundation for the remainder of the fiscal year,” said LocafyCEO Gavin Burnett. “We believe that we have officially transitioned to a global publishing business powered by proprietary SEO technology that drives online prominence for our customers’ content in organic search results across local and national markets.
“At the local level, we’re leveraging our quality directory assets and publishing partnerships to create and deploy local SEO products in a highly automated way. Our extensive network of publishing partners provides quality business listing content that we can now convert into valuable local SEO products, including landing pages and articles, with an automated approach.
“After extensive testing, our local landing page solutions have shown promising results. The next step is to generate these landing pages using our partners’ business listings as source content.
“Further, we’ve developed a prototype solution using generative AI to produce high-quality, locally focused business articles. This prototype utilizes the same individual business listings used for landing pages. In testing, these articles ranked on Page 1 for valuable keyword and location combinations within 30 days—a result we’re thrilled with.
“In short, our goal is to empower any partner that publishes business listings via our API to generate both landing pages and article products automatically. We believe this will create a new revenue stream for them and drive recurring revenue for us.
“On the enterprise level, we’re excited to enter the publishing arena with niche content sites where we can use our Article Accelerator technology to achieve national prominence in search results for competitive, high-value keywords on behalf of our clients. Our strategy will focus on high-value business categories to maximize our return on investment.
“Looking ahead, we expect the full impact of our technology and automation to drive accelerated growth in the coming quarters, enabling us to expand our market reach and strengthen our recurring revenue streams.”
2025Fiscal First Quarter Financial Results
Resultscompare the 2025 fiscal first quarter end (September 30, 2024) to the 2024 fiscal first quarter end (September 30, 2023) unless otherwiseindicated. All financial results are reported in Australian Dollars (AUD).
| ● | Total operating revenue decreased 27.8% to $785,000 from $1.1 million in the comparable year-ago<br> period. |
|---|---|
| ○ | Subscription revenue decreased 25.6% to $731,000 from $981,000 in the comparable year-ago period.<br> Compared to the 2024 fiscal fourth quarter, subscription revenue remained steady. |
| --- | --- |
| ○ | Advertising revenue decreased 60.3% to $39,000 from $97,000 in the comparable year-ago period. Compared<br> to the 2024 fiscal fourth quarter, advertising revenue remained steady. |
| ○ | Services revenue increased 80.3% to $16,000, up from $9,000 in the comparable period last year.<br> However, compared to the fourth quarter of fiscal 2024, services revenue decreased by 96.3%,<br> reflecting the completion of significant services projects during that period. Locafy anticipates<br> that services revenue for the first quarter of fiscal 2025 reflects its near-term outlook,<br> as the Company shifts resources toward developing and monetizing its own online publications<br> rather than those owned by third parties. |
| ● | Other income was $662,000 from $0 in the comparable year-ago period. The variance is attributed<br> to the Company’s recent assessment (in conjunction with guidance received from professional<br> consultants) of the extent and likelihood of its ability to claim a Research & Development<br> tax incentive in Australia, as was possible in prior years. The amount recognized in the<br> 2025 fiscal first quarter is based on an estimate of the claimable value from expenditure<br> incurred during the 2024 fiscal year and an estimate of the claimable value of expenditure<br> incurred during the 2025 fiscal first quarter itself. |
| --- | --- |
| ● | Operating expenses decreased 22.5% to $1.5 million from $1.9 million in the comparable year-ago<br> period. This is primarily due to a 51.0% decrease in employment-related expenses to $454,000<br> from $927,000, a 35.5% decrease in consultancy expenses to $152,000 from $235,000, and offset<br> by a 25.7% increase in amortization expenses to $452,000 from $360,000. |
| --- | --- |
| ● | Net loss was $55,000, or $0.04 per diluted share, compared to a net loss of $808,000, or<br> $0.63 per diluted share, in the comparable year-ago period. |
| --- | --- |
KeyPerformance Indicators (KPIs)
Aspart of its updated go-to-market strategy, Locafy has shifted its focus from traditional KPIs, which are no longer seen as adequate indicatorsof long-term success. The Company now prioritizes Monthly Recurring Revenue (MRR) as the key measure of performance across its platform.Unless otherwise stated, KPI data is as of the fiscal first quarter of 2025 (ended June 30, 2025).
| ● | Monthly recurring revenue (MRR) for the 2025 fiscal first quarter was $256,000, a 28.7% decrease<br> from the comparable year-ago period and a slight increase compared to the 2024 fiscal first<br> quarter. |
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For more information, please see Locafy’s investor relations website at investors.locafy.com.
AboutLocafy
Founded in 2009, Locafy’s (Nasdaq: LCFY, LCFYW) mission is to revolutionize the US$700 billion SEO sector. We help businesses and brands increase search engine relevance and prominence in a specific proximity using a fast, easy, and automated approach. For more information, please visit www.locafy.com.
AboutKey Performance Indicators
Locafydefines MRR as the value of all recurring subscription contracts with active entitlements as at the end of each month. MRR across a periodis the average of each month’s MRR within that period.
Locafy’srecent platform upgrade caused a significant change to the calculation of average page metrics, and Locafy management no longer viewstotal active reseller count and total end user count as relevant indicators of the performance of Locafy’s technology. The Companymay introduce additional KPIs in future quarters if deemed relevant long-term indicators of performance.
Forward-LookingStatements
Thispress release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements,other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statementscontained in this press release may be identified by the use of words such as “subject to”, “believe,” “anticipate,”“plan,” “expect,” “intend,” “estimate,” “project,” “may,” “will,”“should,” “would,” “could,” “can,” the negatives thereof, variations thereon and similarexpressions, or by discussions of strategy, although not all forward-looking statements contain these words. Although the Company believesthat the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks, and uncertainties,and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speakonly as of the date of this press release. The Company’s actual results could differ materially from those anticipated in theseforward-looking statements as a result of a variety of factors and risk factors, including those discussed in the Company’s filingswith the Securities and Exchange Commission (the “SEC”), including the Company’s Annual Report on Form 20-F filed withthe SEC on November 12, 2024, and available on its website (http://www.sec.gov). All forward-looking statements attributable tothe Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required underthe securities laws, the Company does not assume a duty to update these forward-looking statements.
InvestorRelations Contact
Matt Glover or Matt Szot
Gateway Investor Relations
(949) 574-3860
LCFY@gateway-grp.com
-FinancialTables to Follow-
LocafyLimited
ConsolidatedStatement of Profit or Loss and Other Comprehensive Income
(Unaudited)
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All values are in US Dollars.
LocafyLimited
ConsolidatedStatement of Financial Position
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All values are in US Dollars.
LocafyLimited
ConsolidatedStatement of Cash Flows
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| Net foreign exchange difference | ) | |||||
| Cash and cash equivalents<br> at the beginning of the period | ||||||
| Cash<br> and cash equivalents at the end of the period |
All values are in US Dollars.