• Statutory results below expectations due to lower new business sales and customer acquisition
• Normalised EBITDA improved by 70% despite 25% revenue decline
• Restructured sales team focused on annual recurring revenue (ARR) growth

Jcurve Solutions Ltd (ASX: JCS) has provided a business update and preliminary unaudited results for the half-year ending 31 December 2024 (1HFY25). The statutory results, particularly the top-line revenue, were below expectations, primarily due to lower new business sales and new customer acquisition rates. However, the company has made significant progress in its 'Let's Grow' transformation journey, with normalised EBITDA improving by 70% despite the 25% revenue decline. The company's cash position has fallen but remains adequately funded. Jcurve has completed the first phase of its transformation, making structural changes and setting the foundations for future growth. The restructured sales team, now fully focused on ARR growth, has put the company on a pathway to further margin improvements. The company is also providing greater transparency on key performance indicators, including Annual Contract Value (ACV), Annual Recurring Revenue (ARR), and customer metrics. Jcurve has completed the move to regional business units, optimizing around opportunities in each unit. The company is focused on driving top-line ACV growth and increasing reseller margins during the second half of the financial year. Jcurve is also aligning its products, technical services, and support organizations to improve customer and team experience. The company is aiming to drive ARR from its owned products to contribute 50% of its total ARR, as these products deliver higher and more predictable margins. While new customer acquisition was below expectations, Jcurve is investing in sales and marketing resources and is focused on improving customer experience and providing additional value to support new customer acquisition.

Jcurve is confident that the material improvements in the business are yet to flow through to its results and expects to see these improvements evidenced in its future performance from 2HFY25 onwards. The company is committed to providing regular updates on its core KPIs to enable investors to track its progress and understand how it is building shareholder value through ARR growth.