An approximately $24,000 net increase in monthly subscription sales to date since November 2025Localizer adoption expands to 145 independent State Farm agencies, with additional sales growth outside State Farm agentsPartner campaigns are also now delivering measurable results in the home services sector, driving further sales growth PERTH, Australia, Dec. 17, 2025 (GLOBE NEWSWIRE) -- Locafy Limited (Nasdaq: LCFY, LCFYW) (“Locafy” or the “Company”), a global software-as-a-service technology company specializ ...

Revenue Performance - Total operating revenue for Q4 2025 decreased by 31.2% to A$829,000 from A$1.2 million in Q4 2024, primarily due to a 99.3% decline in service-related revenues[11] - Subscription revenues increased by 9.7% to A$801,000 from A$731,000 in the comparable year-ago period, with strong growth anticipated from the recently launched Localizer product[11] - Monthly recurring revenue (MRR) for Q4 2025 was A$267,000, reflecting a 4.2% increase year-over-year and a 2.4% increase from Q3 2025[21] - Revenue for the three months ended June 30, 2025, was AUD $828,571, while total revenue for FY2025 reached AUD $4,151,088, indicating a significant year-over-year performance[27] Loss and Expenses - The net loss for the fiscal year 2025 was A$4.3 million, or A$2.63 per diluted share, compared to a net loss of A$1.9 million, or A$1.49 per diluted share, in the previous year[20] - Operating expenses increased by 58.1% to A$1.7 million from A$1.1 million in the comparable year-ago period, largely due to share-based payment expenses[14] - Operating loss for the three months ended June 30, 2025, was AUD $790,960, with a total loss before income tax of AUD $835,248 for the same period[27] - The company reported a basic loss per share of AUD $0.46 for the three months ended June 30, 2025, and a diluted loss per share of AUD $0.46[27] Cash Flow and Assets - Cash and cash equivalents at the end of the period were AUD $594,671, a decrease from AUD $1,286,175 at the beginning of the period[31] - Receipts from customers for the three months ended June 30, 2025, amounted to AUD $1,228,333, while payments to suppliers and employees totaled AUD $865,092[31] - Net cash used by operating activities for the three months ended June 30, 2025, was AUD $182,582, compared to a net cash outflow of AUD $688,667 for FY2025[31] - Total assets as of June 30, 2025, were AUD $5,827,095, while total liabilities stood at AUD $2,001,418, resulting in net assets of AUD $3,825,677[29] Product and Market Development - In less than two months after launching Localizer in the U.S. market, the product generated over A$156,000 in new monthly subscriptions, equating to approximately A$1.9 million in annualized recurring revenue[12] - The company transitioned to a partner-centric go-to-market model, enhancing cash-flow predictability and aligning sales incentives with performance[12] - The company entered fiscal 2026 with a strong foundation for scalable growth, supported by an expanding U.S. partner network and a leaner operational structure[12] Advertising and Services Revenue - Advertising revenue decreased by 43.9% to A$141,000 from A$251,000 in the comparable year-ago period, impacted by changes in Google's advertising program[14] - Services revenue decreased by 91.1% to A$50,000 from A$561,000 in the comparable year-ago period, due to the non-recurrence of high-volume service work[14] Investment and Financing - Capitalized development costs for the three months ended June 30, 2025, were AUD $631,654, reflecting ongoing investment in R&D[31] - The company issued shares resulting in proceeds of AUD $3,259,448 during FY2025, contributing to financing activities[31] - The company experienced a foreign exchange loss of AUD $34,235 for the three months ended June 30, 2025, impacting overall financial performance[27]

Core Insights - Locafy Limited reported financial results for the fiscal fourth quarter and full year ended June 30, 2025, focusing on its transition to a partner-based sales model and the launch of its Localizer product in the U.S. market [1][10][12]. Financial Performance - Total operating revenue decreased by 31.2% to A$829,000 from A$1.2 million in the comparable year-ago period, primarily due to a 99.3% decline in service-related revenues [12][11]. - Subscription revenues increased by 9.7% to A$801,000 from A$731,000 in the comparable year-ago period, with expectations for strong growth following the launch of Localizer [12][11]. - The net loss for the year was A$4.3 million, or A$2.63 per diluted share, compared to a net loss of A$1.9 million, or A$1.49 per diluted share, in the prior year [18][24]. Strategic Initiatives - The company transitioned to a partner-centric go-to-market model, allowing Locafy to maintain direct billing relationships with end customers, which enhances cash-flow predictability and aligns sales incentives with performance [5][12]. - Locafy launched Localizer in the U.S. market, generating over A$156,000 in new monthly subscriptions within two months, equating to approximately A$1.9 million in annualized recurring revenue [7][12]. - The introduction of Localizer SAB, aimed at enhancing Google Business Profile rankings for Service Area Businesses, has already seen early adoption among home-services contractors [8][12]. Operational Highlights - A strategic partnership was executed in June 2025 with a leading U.S. reputation and review-management platform, expanding Locafy's addressable market in North America [9]. - The company streamlined its core product offering to focus on local SEO and AI Engine Optimization solutions, enhancing automation and scalability for local businesses [4][12]. - Monthly recurring revenue (MRR) for the fiscal fourth quarter was A$267,000, reflecting a 4.2% increase from the comparable year-ago period [19].

Financial Performance - Revenue decreased by 22.8% from year-end 2023 to year-end 2024 and again by 22.8% from year-end 2024 to year-end 2025[37] - The company reported a net loss of A$4,314,231 for the year ended June 30, 2025, with net cash used in operating activities amounting to A$688,667[105] - There is substantial doubt about the company's ability to continue as a going concern for the next twelve months from the date the consolidated financial statements were issued[105] - The company has experienced negative cash flow from technology development and building a sales force, impacting its ability to achieve or sustain profitability[106] - The adequacy of available funds to meet operating and capital requirements will depend on revenue growth and maintaining favorable operating margins[79] Market and Competition - The company faces significant risks related to competition in the rapidly changing technology market, which could adversely affect its financial condition[38] - Future revenue growth depends on the successful development and timely introduction of new features and products, which may not achieve market acceptance[39] - The market for generative AI is intensely competitive, and the company's financial performance may be impacted if it fails to adapt quickly[40] - The company’s ability to attract new users is crucial for revenue growth, and effective sales and marketing strategies are necessary to broaden market acceptance[69] Regulatory and Compliance Risks - Legislative changes in data privacy and AI regulation may impose additional compliance costs and hinder business operations[44] - The company faces increased compliance burdens and costs due to new AI regulations set to take effect in 2026 in states like Colorado and California[47] - Compliance with evolving global data privacy and security laws may impose significant costs and operational challenges, potentially impacting business performance[84] - The EU Artificial Intelligence Act, effective August 2024, establishes a risk-based governance framework for AI, which may increase compliance costs and affect operational efficiency[88] - The EU Data Act, effective September 2025, introduces rules for data sharing that may require new data management protocols and increase operational costs[89] Operational Challenges - The company has experienced a decline in user growth, which could harm revenue and profitability if not addressed[34] - The reliance on third-party services and technologies poses risks that could disrupt operations and negatively impact user growth[33] - The company must effectively manage its growth to avoid increased costs and ensure customer satisfaction[37] - The company must address challenges in providing consistent quality products and services to increase customer spending, which is critical for revenue growth[76] Strategic Initiatives - The company plans to expand its product offerings and enter new markets, but failure to achieve expected results could adversely affect financial performance[56] - The company may pursue acquisitions to enhance growth, but integration challenges could increase financial leverage and operational risks[57] - The company is committed to continuous research and development to maintain competitive advantage, but there are no guarantees of success or cost-effectiveness[50] - Future revenues are expected to be primarily generated through license subscription fees and the acquisition of additional online directories and databases, which will enhance advertising revenue growth opportunities[78] Internal Control and Governance - The company identified material weaknesses in its internal control over financial reporting, leading to restatements of prior financial statements for the fiscal years ended June 30, 2024, and 2023[120] - The company expects to incur additional costs to remediate identified material weaknesses, including hiring qualified personnel and implementing new policies and procedures by June 30, 2026[121] - The company is subject to increased legal and financial compliance costs due to its status as a U.S. public company, which may divert management's attention from revenue-generating activities[130] - The company has commenced implementing remedial measures to address internal control weaknesses, but there is no guarantee these measures will fully resolve the issues[121] Technology and Innovation - The company’s technology stack includes a Business Listing syndication solution, which allows business owners to publish content across multiple platforms, enhancing online visibility[159] - The combined directory assets owned by the company contain more than 60 million business listings as of June 2025[162] - The company completed the acquisition of a Lead Management System technology asset in June 2025, intending to integrate it with AI sales agent technologies for improved marketing efficiency[164] - The company’s technology leverages "Entity-Based" SEO, enhancing search relevancy by optimizing a singular entity across multiple keywords[189] - The company’s technology can generate a Page 1 search result within 30 days, significantly faster than traditional SEO methods which can take months[190] Financial Structure and Shareholder Considerations - The company has never paid dividends and does not anticipate paying cash dividends in the foreseeable future, relying instead on share appreciation for returns[145] - The company is classified as a "foreign private issuer," which subjects it to different U.S. securities laws and reporting obligations compared to U.S. domestic companies[135] - U.S. holders of the company's securities may face adverse tax consequences if the company is classified as a passive foreign investment company[154] - As of June 30, 2025, directors and executive officers beneficially own approximately 20.8% of the outstanding ordinary shares, potentially impacting corporate control decisions[155]

Core Insights - Locafy Limited has reported strong sales growth, particularly in the U.S. market, with an increase of A$156,000 in monthly subscription sales over the past two months [1][6] - The company is set to launch its Advanced AEO analytics solution by the end of calendar year 2025, which is expected to enhance its product offerings [1][2] - The Localizer product suite is gaining traction, with clients experiencing significant visibility in AI search results, which is driving further adoption [2][6] Commercial Highlights - Locafy has achieved approximately 150 subscriptions for its Localizer product, primarily driven by the U.S. market and the addition of over 50 independent State Farm agencies [6] - The Localizer Service Area Business (SAB) has been soft-launched, with initial sales completed in the U.S. market, priced at US$4,000 for implementation and a monthly subscription of US$2,000 [6] - Client success stories, such as a roofing contractor generating US$300,000 in sales in the first month of using Localizer, highlight the effectiveness of the product [5][6] Client Testimonials - Partners have reported exceptional results, including a tripling of call volume for a pool manufacturing client after using Localizer [4] - The positive outcomes from clients are contributing to increased demand and word-of-mouth referrals, indicating a scalable business model [5][6] Future Outlook - The company anticipates continued momentum through the holiday season and into 2026, supported by growing U.S. adoption and product innovation [2][5] - Locafy aims to provide comprehensive reporting and analytics to clients by the end of 2025, further demonstrating the effectiveness of its solutions [2][6]

Core Insights - Locafy Limited has launched a new AI-driven marketing platform through LoHi Digital, targeting U.S. insurance brokers, leveraging its advanced technology suite [1][2][3] Company Overview - Locafy is a global software-as-a-service technology company specializing in location-based digital marketing solutions, including AI-powered search engine optimization [1][12] - The company's flagship product, Localizer, is designed to help businesses achieve top visibility in local search results, particularly in competitive sectors like insurance, home services, and healthcare [2][4] Product Adoption and Revenue - Within the first week of adoption, 50 State Farm agencies have adopted the Localizer platform, with total participation reaching 74 agencies, generating over US$51,000 in monthly recurring revenue (MRR) [3][10] - The company anticipates that every 120 Localizer sales will add approximately US$1 million in annual recurring revenue (ARR) [6] Market Opportunity - The U.S. insurance market presents significant opportunities, with over 880,000 licensed insurance agents and brokers, including more than 19,000 State Farm agents [7] - Locafy aims to penetrate various local services industries, including healthcare and home improvement, which have millions of small businesses reliant on local visibility [7] Strategic Partnerships and Growth - Locafy has signed new partner agreements with leading agencies in the U.S. and Australia, generating initial sales for the Localizer product [8] - The company has launched an AI sales team in the U.S. targeting the roofing and home services markets, indicating a strategic expansion of its service offerings [8]

Summary of Lokify (LCFY) 2025 Conference Call Company Overview - Lokify Limited (LCFY) is a software as a service (SaaS) company specializing in location-based digital marketing, listed on NASDAQ [2][3] - Founded in February 2009, headquartered in Subiaco, Australia, with key markets in the U.S., Australia, and Canada [2][3] - The company has over 600 paying customers and more than 20 global publishing partners [3] Financial Performance - Revenues for FY 2024 were $4.15 million, with $2.9 million reported for the nine months ending March 2025 [4] Market Opportunity - The global market for visibility-related services is projected to reach GBP £790 billion in 2025, potentially growing to $1 trillion in the near future [7] - Lokify aims to capture a significant share of this market by providing cost-effective solutions for small to mid-sized businesses [7][30] Unique Selling Proposition - Lokify's services can achieve SEO results within 30 to 60 days, significantly faster than the industry standard of 12 months to 3 years [6][40] - The company focuses on local SEO, which is more scalable and deployable compared to national or e-commerce SEO solutions [35] Technology and Innovation - Lokify utilizes AI technology to enhance its services, including an AI sales team that has shown promising results in lead generation [21][22] - The company has developed a system that boosts local business visibility in both organic and AI search results [11][13] Customer Engagement and Sales Strategy - Lokify's product is priced at $690 per month, which is considered cost-effective compared to traditional SEO services that can range from $1,500 to $2,000 per month [25][41] - The company has built a large database of business listings (40 million) and claim listings (11.4 million), allowing for targeted marketing [20] Recent Developments - A notable client acquisition includes State Farm Insurance, which has the potential to significantly enhance Lokify's market presence [18][48] - The company is actively pursuing partnerships to distribute its technology in Australia and leverage existing relationships for mutual benefit [50] Future Outlook - Lokify is focused on executing its go-to-market strategy effectively, with a strong emphasis on leveraging its existing database and technology [52] - The management expresses confidence in scaling the business to a $1 billion valuation through strategic partnerships and innovative solutions [28][30] Key Challenges - The competitive landscape in digital marketing and SEO requires Lokify to continuously innovate and adapt to changing market conditions [40][51] - Maintaining consistent performance and delivering on promises to clients is crucial for long-term success [48][52]

Core Insights - Locafy Limited has launched an AI Sales Team, achieving promising initial results in partner acquisition and customer engagement [1][4]. Group 1: AI Sales Team Performance - The pilot campaign resulted in 18 meetings, 130 warm leads, and several proof-of-concept deployments, demonstrating the effectiveness of Locafy's AI-driven strategy [2]. - The campaign, conducted over four days, utilized AI-generated SMS communications to reach 900 digital marketing agencies, achieving 100% attendance at AI-generated meetings and conversion rates exceeding 50% [3]. - The secured opportunities include a national home services franchise with over 700 franchisees and a large digital agency with 450 clients, among others [3]. Group 2: Strategic Vision - The CEO of Locafy emphasized the scalability of their go-to-market strategy, which focuses on using AI to generate high-quality leads and connect them with partners [4]. - The company believes that leveraging its extensive U.S. agency database can significantly drive growth for both Locafy and its partners [4]. Group 3: Company Background - Locafy, founded in 2009, specializes in enhancing visibility for businesses through advanced SEO techniques and AI-driven automation [5].

Core Insights - Locafy Limited has expanded its U.S. presence through strategic partnerships and enterprise wins, focusing on AI-powered product innovations to drive market adoption [1][3] - The company has established a partner-led go-to-market model that is expected to accelerate growth [1][5] Strategic Partnerships & Market Expansion - Signed multi-year, high-value partnerships in the U.S. and APAC with significant deployment potential [6] - Entered a strategic agreement with a U.S.-based online reputation platform, expanding Locafy's U.S. listings footprint by approximately 10,000 end users [7] - Launched an AI-powered SEO product suite, including Localizer, aimed at multi-location businesses [6][7] - Secured large agency and enterprise clients, representing thousands of potential locations for imminent revenue generation [6] Product Innovations - Localizer is gaining traction with large agencies and high-volume partners, positioned as a key growth driver [4] - The AI-driven SEO product suite aims to enhance local and national search visibility with minimal human intervention [7][14] - Developed an integrated Article Accelerator for in-house article creation and publishing, compliant with Google's SEO policies [14] Financial Performance - Total operating revenue for the nine-month period ended March 31, 2025, was AUD $2.4 million, down from AUD $2.9 million in the same period of 2024 [12][14] - Subscription revenue was AUD $2.2 million, compared to AUD $2.6 million in the prior year [14] - Net loss totaled AUD $3.5 million, or AUD $2.19 per share, compared to a net loss of AUD $2.1 million, or AUD $1.63 per share, in the previous year [15] Key Performance Indicators - Monthly recurring revenue (MRR) for the fiscal third quarter was AUD $261,000, reflecting a 1% sequential increase but a 2% year-over-year decrease [16]

Core Insights - Locafy Limited is participating in the 2025 Gateway Conference on September 3-4, 2025, in San Francisco, CA [1] - CEO Gavin Burnett will present on September 3 at 9:00 am PT and will also hold one-on-one meetings with investors and analysts [2] - The presentation will highlight Locafy's recent momentum, including AI-powered product launches and strategic partnerships, aimed at creating a scalable growth model [3] Company Overview - Founded in 2009, Locafy aims to revolutionize the US$700 billion SEO sector by helping businesses enhance their search engine relevance through an automated approach [4]