Announcement PDF Xref Limited Appendix 4D Half-year report Company details Name of entity: ACN: Reporting period: Previous period: Xref Limited 122 404 666 For the half-year ended 31 December 2019 For the half-year ended 31 December 2018 Results for announcement to the market $ Revenues from ordinary activities up 20% to 3,429,046 Loss from ordinary activities after tax attributable to the owners of Xref Limited up 50% to (6,892,122) Loss for the half-year attributable to the owners of Xref Limited up 53% to (6,819,283) Earnings per share Basic earnings per share Diluted earnings per share Reporting period $ Previous period $ (0.04) (0.04) (0.03) (0.03) Dividends There were no dividends paid, recommended or declared during the current financial period. Review of operations The loss for the consolidated entity for the financial half-year after providing for income tax amounted to $6,892,122 (H1 FY19: $4,592,778). Xref achieved record first-half sales, revenue and cash receipts during H1 FY20 illustrating the company’s continued focus on growth and supporting its goal of reaching cash flow break-even by the end of this financial year. Key achievements for H1 FY20 included: • Sales – Xref credit sales reached $4.6 million, up 10% from $4.2 million in H1 FY19; • Credit usage - credit usage reached $4.4 million, up 29% from $3.4 million in H1 FY19, with $1 million coming from integrated customers; • Receipts - cash receipts totalled $6.0 million, a 25% increase on the $4.8 million in H1 FY19; • Product expansion - Xref Lite launched as a means to reach a wider pool of organisations looking for a selfserve, single-user solution with all the power of the Xref enterprise platform; • Client acquisitions - 190 new clients added during H1 FY20; • Integration growth - 23 live integrations by end of H1 FY20, with growth in the number of organisations using Xref through an integration increasing to 223; • Notable integrations - strategic partnerships formed with PageUp and CVCheck; • International growth - key education sector clients secured in the United States; and, • Funding - completed a placement of new shares to Australian institutional and professional investors raising $3.496 million before costs in December 2019. Xref Limited Appendix 4D Half-year report Review of operations continued The company continued to capitalise on high demand for candidate referencing services and a growing human resources technology market. The drivers behind revenue growth included: • New clients - during the half-year, 190 new enterprise clients and 235 Xref Lite clients were added to the platform - an increase of more than 67% on the previous corresponding period. Q2 was the most successful for client acquisition, with 104 new enterprise clients and 235 Xref Lite clients added during that period; • Sales focus - the sales and account management team expanded across new regions, with a new office opening in New Zealand and remote sales executives added in Ireland. Xref also welcomed Steve Sutcliffe as APAC GM of Sales. The release of Xref Lite has allowed the sales teams to be 100% focused on identifying enterprise customers in all regions, while small organisations and trial clients can self-serve using Xref Lite; • Channel integrations - a continued focus on growth through strategic partnerships saw credit usage by integrated customers reach $1 million during the first half, representing a 60% increase on H1 FY19. Credit usage by integrated customers was $0.5 million for both the first and second quarters, representing a 51% and 70% year-on-year increase, respectively. The number of organisations using Xref through an integration also increased to 223. Notable announcements for the first half of the year included partnerships with PageUp and CVCheck; and • US success - a notable effort was made to increase traction in the United States and the announcement that Texas A&M University had been introduced as a client was a major milestone in the company’s growth in the region. Xref continues to grow its client base in the US, with particular focus and success in the education sector. Financial Highlights Xref Credit sales for H1 FY20 were $4.6 million, up 10% from $4.2 million in H1 FY19. Under Xref’s business model, when clients purchase credits, which are reported as credit sales, the value of their purchase is recognised initially as unearned income. After the credits are used, they are recognised as usage. Credit usage was $4.4 million, up 29% from $3.4 million in H1 FY19. This included $1 million of usage from integrated customers. Cash at 31 December 2019 was $5.7 million and the company is debt-free. In December 2019, the company announced it had received commitments from institutional and professional investors to raise $3,496,000 before costs through a placement of 10,593,939 fully-paid ordinary shares Net tangible assets Net tangible assets (liabilities) per ordinary security Reporting period Cents Previous period Cents (0.63) 3.82 Xref Limited Appendix 4D Half-year report Control gained over entities Names of entities (or group of entities) Rapid ID Pty Limited Date control gained 9 August 2019 $ Contribution of such entities to the reporting entity's profit/(loss) from ordinary activities before income tax during the period (180,832) Profit/(loss) from ordinary activities before income tax of the controlled entity (or group of entities) for the whole of the previous period - Audit qualification or review The financial statements were subject to a review by the auditors and the review report is attached as part of the Interim Report. Attachments The Interim Report of Xref Limited for the half-year ended 31 December 2019 is attached. Signed Lee-Martin Seymour CEO & Co-Founder 28th February 2020 2019 Interim Report i Xref Limited | Interim Report 2019 Contents )RXQGHUVȆ5HSRUW  'LUHFWRUVȆ5HSRUW  ,QGHSHQGHQFH'HFODUDWLRQ  6WDWHPHQWRISURࢉWRUORVVDQGRWKHUFRPSUHKHQVLYHLQFRPH 6 6WDWHPHQWRIࢉQDQFLDOSRVLWLRQ  6WDWHPHQWRIFKDQJHVLQHTXLW\  6WDWHPHQWRIFDVKࢊRZV  1RWHVWRWKHࢉQDQFLDOVWDWHPHQWV  'LUHFWRUVȆ'HFODUDWLRQ  ,QGHSHQGHQWDXGLWRUȆVUHYLHZUHSRUWWRWKHPHPEHUVRI;UHI/LPLWHG  &RUSRUDWH'LUHFWRU\ 41 General information 7KHࢉQDQFLDOVWDWHPHQWVFRYHU;UHI/LPLWHGDVDFRQVROLGDWHGHQWLW\FRQVLVWLQJRI;UHI/LPLWHGDQGWKHHQWLWLHVLWFRQWUROOHGDWWKHHQGRI RUGXULQJWKHKDOI\HDU7KHࢉQDQFLDOVWDWHPHQWVDUHSUHVHQWHGLQ$XVWUDOLDQGROODUVZKLFKLV;UHI/LPLWHGȆVIXQFWLRQDODQGSUHVHQWDWLRQ FXUUHQF\ ;UHI/LPLWHGLVDOLVWHGSXEOLFFRPSDQ\OLPLWHGE\VKDUHVLQFRUSRUDWHGDQGGRPLFLOHGLQ$XVWUDOLD,WVUHJLVWHUHGRࢇFHDQGSULQFLSDO SODFHRIEXVLQHVVLV Unit 14, 13 Hickson Road, Dawes Point, New South Wales, Australia 2000 ACN: 122 404 666 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