Core Viewpoint - Locafy Limited has expanded its partnership with Experience.com to sell its Localizer product across the United States, targeting the home services sector [1][2]. Group 1: Partnership Expansion - The expanded agreement allows Experience.com to offer Locafy's Localizer solution alongside its reviews and reputation-management platform [2]. - Experience.com will initially focus on over 800,000 recently added home services business profiles, including contractors in roofing, plumbing, HVAC, and related trades [2]. Group 2: Sales Support and Strategy - Locafy will assist Experience's sales efforts through educational webinars and AI-powered sales enablement technology, which will provide qualified appointments to Experience's sales team [3]. - The partnership is expected to leverage Experience's established platform and sales engine within the home services sector, aiming for thousands of Localizer sales in 2026, depending on market conditions [4]. Group 3: Performance and Market Position - Locafy has shown strong performance in the U.S. home services sector, with measurable results such as increased inbound calls, quote requests, and signed contracts [4]. - The partnership will be supported by Growth Pro Agency, which has successfully deployed Locafy's technology in the home services market [5][6]. - Locafy's technology has significantly increased calls, leads, and closed business for roofing and plumbing companies, indicating its effectiveness in the market [6].

Core Insights - Locafy Limited, a global SaaS company specializing in location-based digital marketing solutions, reported continued subscription growth and expanding U.S. adoption of its Localizer™ platform [1][2]. Commercial Highlights - Subscription revenue growth month-to-date has been strong, with an approximate net increase of A$24,000 or 6.3% since November 2025 [6][7]. - Localizer is currently deployed by 145 independent State Farm agencies, indicating strong adoption among U.S. insurance professionals [6][7]. - Partner campaigns in the home services sector are generating measurable results, driving further sales growth [6][7]. Operational Progress - The company is focused on disciplined growth, improving unit economics, and operating efficiency as it scales its SaaS platform and recurring revenue model heading into 2026 [5][6]. - The product roadmap includes the deployment of advanced AEO reporting and analytics capabilities by the end of 2025 [7].

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]