Page 1

hi pages Group hipages Group Holdings Ltd Level 10 , 255 Pitt Street , Sydney NSW 2000 ABN : 67 644 430 839 hipagesgroup.com.au ASX / Media Release 23 February 2021 H1 FY21 Financial result Strong growth across all key metrics hipages Group Holdings Limited ( ASX : HPG ) ( “ hipages ” or “ the Company ” ) today releases its H1 FY21 Financial Results . hipages is Australia's largest online tradie platform and Software - as - a- Service ( SaaS ) provider connecting tradies with residential and commercial consumers . Highlights ● Monthly Recurring Revenue ( MRR ) ¹ of $ 4.6m @ December 2020 up 31 % • • Statutory Recurring revenue² of $ 25.3m , up 26 % on a pro forma basis 94 % of total revenue is recurring revenue Statutory Total revenue² of $ 26.9m , up 18 % on a pro forma basis • • Gross Profit Margin³ of 87 % • Pro Forma EBITDA of $ 6.9m , up from ( $ 0.1m ) • • • • • . • Statutory EBITDA of $ 1.4m including non - recurring IPO related costs Pro Forma Net Profit after Tax ( NPAT ) of $ 1.5m , up from ( $ 5.3m ) Statutory NPAT5 of ( $ 5.9m ) includes non - recurring finance and IPO related costs Pro Forma Operating Cashflow ( OCF ) of $ 6.7m , 98 % EBITDA to OCF conversion Closing cash and funds on deposit of $ 31.5m , no debt COVID - 19 Update : No adverse impact from recent outbreaks On track to meet FY21 Prospectus forecasts for key financial and operating metrics NB : All figures compare H1 FY21 to H1 FY20 unless otherwise indicated hipages CEO and Co - Founder Roby Sharon - Zipser said : “ As a newly listed business , hipages is at an exciting phase of its development and our maiden half year result reflects the strength of our business and growth drivers . The merits of our subscription - only model were highlighted by the 31 % growth in monthly recurring revenue which was underpinned by significant increases in Total Tradie ARPU and subscription tradies . The flywheel effect of the double - sided marketplace was evident with strong growth in job volumes coming from repeat customers and unpaid channels as hipages reinforced its brand leadership in the on - demand tradie economy . " Our H1 FY21 result was ahead of expectations as revenue growth and operational efficiencies drove expanding profit margins . We continued to deliver sustainable profit growth and the cash generative nature of our business was demonstrated with over 90 % conversion from EBITDA . We are seeing a significant increase in home improvement activity levels driven by long term structural shifts towards online and to more flexible working arrangements . During the second half , we will 1 Monthly Recurring Revenue ( MRR ) is the monthly amount of cash revenue received from subscription agreements ( inclusive of GST ) . 2 H1 FY21 Statutory revenue is the same as Pro Forma revenue . H1 FY20 Statutory revenue includes discontinued operations . 3 Gross margin includes statutory total revenue less cost of sales ( consumer and tradie SEM spend and merchant fees ) . 4 Pro Forma EBITDA before significant items . 5 Please refer to Slide 32 of hipages Group's H1 FY21 Result Presentation for a reconciliation between Statutory and Pro Forma Profit . Page 1 of 4