Plexure is pleased to announce that it now has over 100 million users on its platform. This is a milestone that very few
New Zealand technology companies have reached and puts Plexure alongside an elite number of global tech companies in
terms of platform users. Plexure’s technology is deployed in 47 countries, across different industries and continues to
drive revenue for its customers. Plexure has experienced annual usage growth of over 50% in each of the last 3 years and
expects this trend to continue.
As users have grown, so too has Plexure’s revenue. Revenue for the year ended 31 March 2019 is likely to exceed $16.8m.
The revenue growth has been driven by both one-off and recurring revenue, and represents growth of more than 40% over
the previous year. The one-off revenue includes consulting and funded development work, which Plexure expects is likely
to continue in the future.
As signalled in the 30 September Results Announcement, Plexure has begun to undertake work on its platform to support an
increased number of users. This, coupled with investment in its product roadmap, has seen staff numbers increase. As a
result staff costs have increased and are likely to be over $8.2m for the full year compared to comparable costs of
$3.9m in the first six months of FY19.
Part of the work on the platform has been focused on reducing costs. Even with the number of increased users, IT and
hosting costs are likely to be $3m for the year ended 31 March 2019, which is an 8% increase over the previous year.
Taking account of this increase in revenue and costs, it is expected that the full year comprehensive profit will be at
a similar level to the half-year announcement at around $1m, excluding the impact of the convertible note.
Plexure remains cashflow positive with expected cash on hand at the end of the full year to 31 March 2019 to be at least
$1m higher than the $6.1m reported at 30 September 2018.
Note that all numbers provided in this section are estimates and may differ from the fully audited figures for the year
ended 31 March 2019.
Impact of the convertible note
As at the date of this update, convertible note holders have indicated (verbally and in writing) that they will convert
to equity rather than take cash. The total amount outstanding is $1.506m. Holders have until 29 March 2019 to confirm in
writing their intentions. If all holders were to convert their notes into shares, the number of shares on offer would
increase by 12,546,930 to 125,604,840 (including treasury stock).
The conversion of the note will impact Plexure’s profit and loss statement. The exact amount of the impact will not be
known until the close of business on 29 March 2019. However, given Plexure’s share price has risen since the issuing of
the convertible note above the conversion price of 12 cents, there is likely to be an impact on profit and loss. The
higher the share price at the time of conversion, the greater the impact. For example, if the convertible note closed
today at a share price of 33 cents per share, the impact on profit and loss would be an accounting cost of $1.631m.
Plexure notes that there is no cash impact on the business and the profit and loss impact is simply related to the
accounting treatment. The underlying business remains cashflow positive and profitable.