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 2023
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 27, 2023, Locafy Limited issued a press release, “Locafy Reports Fiscal First Quarter 2024 Results,” which is attached hereto as Exhibit 99.1.
| Exhibit | Description of Exhibit |
|---|---|
| 99.1 | Press Release dated November 27, 2023 |
Incorporationby Reference
This Report on Form 6-K, including all exhibits attached hereto, is hereby incorporated by reference into the Locafy Limited’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No. 333-272066), to be a part thereof from the date on which this Report on Form 6-K is submitted, to the extent not superseded by documents or reports subsequently filed or furnished.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 27, 2023 | By: | /s/ Gavin Burnett |
| Name: | Gavin<br> Burnett | |
| Title: | Chief<br> Executive Officer |
Exhibit99.1
LocafyReports Fiscal First Quarter 2024 Results
FiscalFirst Quarter 2024 Highlighted by Strategic Partnerships, Maintained Gross Margin of 81%, and 53% Year-Over-Year Cost of Sales Decrease
ContinuedCost-Efficiency Initiatives Help Drive Locafy Closer to Profitability; Milestone Expected Early in Calendar-Year 2024
PERTH,Australia – November 27, 2023 – Locafy Limited (Nasdaq: LCFY, LCFYW) (“Locafy” or the “Company”), a globally recognized software-as-a-service technology company specializing in local search engine marketing, today reported financial results for the 2024 fiscal first quarter ended September 30, 2023. All financial results are reported in Australian Dollars (AUD).
RecentOperational Highlights
| ● | Announced an enterprise partnership with Method, an Australian digital marketing agency with local-scale expertise. Method has been using<br> Locafy’s products over several years and has grown to enterprise partner scale through an expanded client network and significant<br> growth. Through this continued partnership, Method will ramp-up its deployment of Locafy’s Entity-Based SEO product suite to<br> further supplement its growth and increase its market share. |
|---|---|
| ● | Announced a strategic partnership with TransUnion to expand Locafy’s publishing network. This partnership will allow for the publication<br> of 17 million business listings in Hotfrog.com, a top-20 free online directory which Locafy acquired in 2016. The collaboration will<br> assist in increasing Locafy’s existing publishing network by 34% to approximately 66 million pages. |
ManagementCommentary
“Our fiscal first quarter included several achievements that we believe position our business for strong growth over the rest of fiscal 2024,” said Locafy CEO Gavin Burnett. “Despite a series of billing relief extensions granted to customers impacted by our recent platform upgrades and transitions, we believe we made progress across our growth strategy pillars. We confirmed an enterprise partnership, expanded our publishing network, significantly advanced our cost-efficiency initiatives, and continued driving successful software trials to further validate our technology.
“Since the end of the quarter, we’ve transitioned our focus to accelerating growth and achieving profitability in the upcoming calendar year. We are confident that our recent enterprise partnerships have helped us develop a strong business development pipeline and believe in the significant tailwinds for our technology throughout our industry. We’re encouraged by our demand outlook and look forward to driving continued adoption of our solutions in calendar-year 2024.”
FiscalFirst Quarter 2024 Financial Results
Resultscompare the 2024 fiscal first quarter end (September 30, 2023) to the 2023 fiscal first quarter end (September 30, 2022) unless otherwiseindicated.
| ● | Total operating revenue decreased 24.3% to $1.1 million from $1.4 million in the comparable<br> year-ago period. |
|---|---|
| ○ | Subscription revenue decreased 28.2% to $768,000 from $1.1 million in the comparable year-ago period.<br> Compared to the 2023 fiscal fourth quarter, subscription revenue decreased 15.4%. The decrease<br> in subscription revenue was primarily attributable to the Company’s extended billing<br> relief to customers whose campaigns were affected by the transition onto Locafy’s upgraded<br> technology platform (the “Platform”), together with the tapering of the Company’s<br> labor-intensive educational program and Brand Boost products in the near term. |
| --- | --- |
| ○ | Advertising revenue increased 12.2% to $97,000 from $87,000 in the comparable year-ago period. Compared<br> to the 2023 fiscal fourth quarter, advertising revenue increased 27.0%. |
|---|---|
| ○ | Data revenue decreased 11.0% to $214,000 from $240,000 in the comparable year-ago period.<br> Compared to the 2023 fiscal fourth quarter, data revenue increased 2.1%. |
| ○ | Services revenue decreased 78% to $9,000 from $40,000 in the comparable year-ago period. Compared<br> to the 2023 fiscal fourth quarter, services revenue decreased 87.2%. These decreases are<br> primarily due to comparatively lower custom website builds undertaken by the Company as it<br> completed the transition of its customer base to the Platform. |
| ● | Cost of sales decreased 53.2% to $205,000 from $438,000 in the comparable year-ago period.<br> Compared to the 2023 fiscal fourth quarter, cost of sales decreased 10.8%. |
| --- | --- |
| ● | Gross margin increased to 81.1% from 69.5% for the comparable year-ago period. Compared to<br> the 2023 fiscal fourth quarter, gross margin remained steady. |
| ● | Net loss was $808,000, or $0.63 per diluted share, compared to a net loss of $1.2 million,<br> or $1.13 per diluted share, in the comparable year-ago period. |
KeyPerformance Indicators (KPIs)
Unlessotherwise specified, KPI data has been recorded as of the 2024 fiscal first quarter end (September 30, 2023).
| ● | Monthly recurring revenue (MRR) for the 2024 fiscal first quarter was $360,000, a 21.2% decrease<br> compared to $456,000 for the comparable year-ago period, and a 9.6% decrease compared to<br> $398,000 for the 2023 fiscal fourth quarter. |
|---|---|
| ● | Total active reseller count for the 2024 fiscal first quarter was 99 resellers, a 43.5% increase<br> compared to 69 resellers for the comparable year-ago period, and a 7.5% decrease compared<br> to 107 resellers as of the 2023 fiscal fourth quarter. |
| ● | Total end user count for the 2024 fiscal first quarter was 1,048 end users, a 27.2% decrease<br> compared to 1,440 end users for the comparable year-ago period, and a 7.2% decrease compared<br> to 1,129 end users as of the 2023 fiscal fourth quarter. |
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 viewsthese metrics as relevant indicators of the performance of Locafy technology. The Company may introduce additional KPIs in future quartersif 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 October 11, 2023, 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
Tom Colton or Chris Adusei-Poku
Gateway Investor Relations
(949) 574-3860
LCFY@gateway-grp.com
-FinancialTables to Follow-
LocafyLimited
ConsolidatedStatement of Profit or Loss and Other Comprehensive Income
| 3<br> months to<br> 30 Sep 2023<br> AUD <br> (unaudited) | 3<br> months to<br> 30 Sep 2022<br> AUD <br> (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
(Unaudited)
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All values are in US Dollars.