• Transition to Tech: Transitioning fully from Services to a Technology-driven SaaS business model
• Tech Sales Growth: Scaling Tech sales by 35% annually at 80%+ gross margin while keeping operating expenses contained
• LEXI Expansion: Growing LEXI volume and revenue by over 40% per annum through customer expansion and the AI-driven LEXI Toolkit including LEXI Voice

AI-Media Technologies Limited (ASX: AIM) presented its 1H25 results, outlining its strategic priorities to drive LEXI sales growth and achieve its 5-year EBITDA target of $60M in FY29. The company is transitioning fully from Services to a Technology-driven SaaS business model, scaling Tech sales by 35% annually at 80%+ gross margin while keeping operating expenses contained. LEXI volume and revenue are expected to grow over 40% per annum through customer expansion and the AI-driven LEXI Toolkit, including the new LEXI Voice solution. The company is also building on its US Broadcast leadership by expanding into Europe, APAC, and targeting Enterprise and Government sectors worldwide. 1H25 saw an increase from 11 to 25 countries in which the company operates. The company has also deepened its AI product suite through the expansion of the LEXI Brew range, introducing Generative AI capability across private, public, and live LEXI data. The 1H25 results showed a 12% growth in Tech revenue, a 17% decline in Services revenue, and a 4% improvement in overall gross profit margin to 67%. The company expects FY25 EBITDA to remain in line with the prior corresponding period, inclusive of additional costs for R&D, product development, EMEA growth initiatives, and the Services transition.

The company expects LEXI volume and revenue to continue growing over 40% year-on-year in FY25. Cash is expected to continue increasing in line with LEXI sales growth. FY25 EBITDA is expected to remain in line with the prior corresponding period, inclusive of additional costs for R&D, product development, EMEA growth initiatives, and the Services transition.

The company's strategic priority is to drive LEXI sales growth to achieve its 5-year EBITDA target of $60M in FY29. The transition to a Technology-driven SaaS business model is expected to be well progressed by December 2025, targeting 80% technology revenue. The company also expects to maintain the strong 1H25 growth trend in the European Broadcast market and accelerate progress towards its FY29 target in each of the identified '9 Squares' with strong product-market fit.