GiG Software PLC

Hi, and welcome to Redeye. Today we are joined by Geek Software, who will present their Q1 report. It will be presented by CEO Richard Carter and CFO Phil Richards. And after the presentation, we'll have a Q&A, which will be moderated by me. And if you have any questions, please send them through on the website. With that, I will leave over to Richard Carter, please. Thank you.

Good morning, everybody, and thank you for joining us for our 2025 quarter one results presentation. It's been another extremely active and eventful period for GIG, and we're very excited to be updating you this morning on all the progress we're making across our business verticals. As with our previous presentations, I will kick off by talking us through the key highlights. Then I'll hand over to our CFO, Phil Richards, who will take you through the financial review. Before, I'll come back and update you on our strategic progress and on our outlook. So turning to our Q1 key highlights, I'm pleased to report another strong period of performance with revenue increasing by 10% year on year to 9.1 million and adjusted EBITDA expanding by 1.2 million to 0.3 million. And this strong performance was driven by a combination of improved operational performance and execution, our strengthened product portfolio and new customer launches. We continue also to secure new agreements, and we signed nine during the quarter, including with our key customer, Casino Gran Madrid. I think it's worth just pointing out that this momentum with getting a new contract is being driven predominantly by our upgraded product offering, and I'll touch on that a little bit further along in the presentation. We also continue to see a strong new partner launch and we launched four new brands during the quarter. We have three brands that will launch imminently and we expect to launch six brands for the whole of Q2. We also continue to be obsessively focused with streamlining processes and eliminating duplication. And therefore, during Q1, with a focus on this cost optimization, we decided to implement a plan to migrate our Spanish clients off our legacy Alira platform onto our new next generation CoreX platform. And we expect that to trigger significant cost savings as well as material revenue opportunity. And again, I'll talk about that a little bit later when I review our strategic progress. We ended the quarter with a healthy cash position of 4.9 million. And as a reminder, we have access to an additional 2 million RCF. Now I'll hand over to Phil, who will take you through the financials.

Thanks, Richard. Good morning, everyone. So I'm going to start off by talking about our financial summary and where we got to in Q1 2025. We hit revenues of 9.1 million up 10% year on year with an adjusted EBITDA of 0.3 million, which is up 1.2 year on year as well. This is a second consecutive quarter, a positive EBITDA and demonstrates the momentum that we're taking through from Q4 is being delivered on in Q1 2025 as well. Our cost base decreased year on year. despite the revenue increase, which is something I'll touch on a little bit later on in our presentation. If I look at where the revenue growth came from, when I look at the year and year growth, So predominantly, this revenue growth is coming from new launches and customer growth, which is really, really exciting. It's a great mix of customers we have. They're growing well. And all of the new launches that we talked about during 2024 and coming into 2025 has helped us to deliver this significant revenue growth year on year as well. We have new setup fees as well from partners to be launched in 2025. And as Richard mentioned, we've got a very exciting pipeline of launches coming up within Q2 2025 and onwards from that. If I then take a look at our cost base and what is it comprised of? So predominantly, being a SaaS tech business, we have personnel costs, we have marketing expenses and other administrative costs, including things like hosting costs, etc. We've had a massive focus on our cost base and ensuring that this is decreasing quarter on quarter, year on year, and keeping this steady throughout 2025 whilst maintaining our revenue growth and supporting that growth as well. It's an extremely important part of our business. And as we've guided for the full year in terms of our EBITDA, this is what's going to be crucial to delivering that 10 million EBITDA that we guided for 2025. Q1, so a little bit of seasonality. There's an event in Q1, ICE in Barcelona, and that's always typically one that we display at. And therefore, it spikes a little bit in marketing as a one-off cost. But you'll see that then being stripped out in Q2, Q3, Q4 onwards as well. So how does that look from a bridge perspective, getting us from Q1 2024 to Q1 2025? So the investments we made during H1 2024 continue to impact year-on-year and personnel costs. We continue to invest in our people, making sure we have the best people there that can guarantee the delivery of the strong growth trajectory that we have forecasted and guided for for the year. However, we still maintain a very, very tight focus on our cost control. And that's what you'll see when in the 0.4 decline in other operating expenses coming through there. And we expect to have additional cost savings coming through this year and into next year, which is going to touch on some of these a little bit later on in our presentation. So how does this all add up to where we get to in the adjusted EBITDA? I'm really, really pleased with the development of EBITDA and how the revenue growth is dropping through to the bottom line, but also how our cost focus is increasing our EBITDA. It's up 1.2 million year on year, and we are only adjusting our EBITDA for share-based payments of 0.1 million. So it's a very clean EBITDA that we are providing to the market now. And this is, as I say, the increase has been driven both by revenue increase, but also by our focus on cost control. So where does this all add up to in terms of cash generation? So as we guided previously, we're looking to be generating cash from the end of Q3 to Q4 onwards. And therefore, our focus is on making sure that we are bringing down the cash burn month on month, quarter on quarter. We had our final receivable from Gen2 Media settled during Q1 and the last payment in April this year as well. And we ended up at the end of March with a cash balance of 4.9 million. As Richard alluded to, we have an additional 2 million RCF, which is available for utilization. And in addition to that, as I said, we received our final payment from Gen2 in April this year as well. And with that, I'm going to hand you back to Richard, who is going to provide an update on our strategic progress and the outlook for 2025.