XPON Technologies Group 1H FY24 Results Overview

XPON Technologies Group Ltd (ASX: $XPN) has released its Appendix 4D and half yearly report for the six month period ended 31 December 2023, reporting positive momentum with two consecutive quarters of revenue growth, gross margin improvement, and a 49% year-on-year improvement in Adjusted EBITDA. The Company also completed the divestment of its App Mod business in December 2023, resulting in significant cost reductions.

Founder and CEO's Perspective on 1H FY24 Performance

Leading into and during the first half, we made some difficult but necessary decisions in right-sizing our operations. We are now starting to see the benefit of these decisions, through the narrowing of losses. With the divestment of the App Mod business complete, and cost initiatives substantially realised, we are clearly focused on growing our Martech business. This business continues to remain resilient, with blue chip customers that experience high customer satisfaction and excellent retention rates. Our technical capability, AI expertise, and value proposition for customers was again validated at the Google Marketing Platform 2023 partner awards where XPON was awarded the Advanced Data & AI and Maturity Megastar awards. We are committed to driving the Company towards profitability and achieving cashflow breakeven in FY25.

Summary of 1H FY24 Results and Outlook

XPON Technologies Group Ltd (ASX: $XPN) has reported positive 1H FY24 results, including two consecutive quarters of revenue growth, a 4 percentage point year-on-year increase in gross margin, and a 49% year-on-year improvement in Adjusted EBITDA. The Company also completed the divestment of its App Mod business, resulting in significant cost reductions. Founder and CEO, Matt Forman, emphasized the focus on growing the Martech business, which has demonstrated resilience with high customer satisfaction and retention rates. XPON aims to achieve profitability and cashflow breakeven in FY25. The Company's priorities for the remainder of the financial year include building on its resilient revenue base, leveraging the Google relationship for growth, managing the cost profile, capitalizing on AI advantage, exploring strategic opportunities, and maintaining a strong corporate culture and highly motivated team.