• Continued momentum with 7 new customers landed and 12 existing customers expanded
• Significant improvement in Statutory EBITDA by $4.5m YoY to ($0.4m)
• Ongoing cost management and process optimisation to deliver an additional c$0.9m in annualised cost savings

XPON, an AI marketing technology company, reported its H1 FY25 results with continued momentum, significant improvement in Statutory EBITDA, and ongoing cost optimisation to drive towards profitability. The company landed 7 new customers and expanded 12 existing customers during the half, with revenue performing in line with previous guidance. Statutory EBITDA improved by $4.5m year-over-year to ($0.4m), demonstrating a clear path to profitability. The company also won the prestigious Australian 2024 AI Award in the category of 'AI Innovation - Media & Communication Services'. XPON's focus on strengthening its balance sheet, improving working capital management, and addressing convertible note refinancing has resulted in a cash position of $5.5m, supporting its FY25 cash flow breakeven target. The company's strategic roadmap outlines plans to accelerate accretive inorganic growth, target organic growth at rule of 40 or better, and drive advanced AI adoption to streamline service delivery and co-pilot its people.

XPON is targeting cash flow breakeven on an annualised basis by the end of FY25.

XPON's key priorities for the balance of the financial year include continuing to monitor and optimise the recalibration of the sales strategy towards high-margin long-term recurring revenue growth, capitalising on its leading market position by driving continued AI innovation, and focusing on sustainable profitability by leveraging its relationship with Google and growing its recurring customer base. The company will also progress strategic partnering and explore M&A opportunities to enhance shareholder value while addressing balance sheet and convertible note refinancing to strengthen financial stability.