GEO ANNOUNCES SUITE OF INITIATIVES INTENDED TO DRIVE GROWTH

GEO ANNOUNCES SUITE OF INITIATIVES INTENDED TO DRIVE REVENUE GROWTH 1st May 2018 GeoOp (GEO, the Company) is pleased to announce a series of initiatives aimed at boosting the revenue growth of its GeoService application from FY19. Release of Upgraded Application The upgraded GeoService application, first announced in 2017, is due for launch at the end of May 2018. It is the result of extensive user testing, incorporates enhanced market-leading design, and has been enthusiastically received by dozens of customers during its development phase. Renewals and ARPUs When the Company's original GeoOp application launched it did so with a low ARPU to gain market share. A high number of customers remain on sub-market rates which are being adjusted in conjunction with the launch of the upgraded application. Testing undertaken in Q3 with existing customers indicates that acceptance rates for the new product are well above expectations and at a higher ARPU. GeoPay GEO's customer base generates hundreds of millions of dollars in annual invoices through the GEO platform, but currently very few of those invoices are paid via its GeoPay payments module. GEO has enhanced GeoPay, and is trialling it during May 2018 with around 300 customers in New South Wales and Victoria who generate approximately $40m in monthly invoices, but do not receive instant payment. The newly enhanced GeoPay feature can be directly accessed from the application and enables customers to both invoice via the platform, and improve their working capital management through receiving immediate payment. If widely taken up by GEO's customers, GeoPay would create a new and sustainable income stream. Enhanced Digital Marketing GEO has appointed digital transformation company APD (1) to streamline its brand architecture, modernise its digital assets and launch comprehensive digital marketing across a range of digital channels. GEO and APD have launched an agile "growth sprint" to bring best practise digital marketing initiatives such as content development, SEO, PPC and social media with a focus on significantly improving the company's customer acquisition velocity and cost. Trials are underway. New Channel Partner GEO expects to sign a new distribution agreement with a global cloud channel partner that has nearly 200,000 solution providers who will have the opportunity to resell GeoService globally. The agreement will start in Australia and subsequently extend to more of the 170 countries in the partner's network. GEO will enter trials at the end of May and if successful, will increase its rate of customer acquisition. Growth Rates GEO is in the process of rolling out and testing each of these initiatives within its recently optimised cost base. The development of the upgraded GeoService platform is nearing completion, with investments in software development already factored into the company's present cash burn. The rollout and renewals at higher ARPUs, the improvement to and relaunch of GeoPay and the channel partner rollout are also being conducted at no incremental cost to GEO. The growth sprint with APD is also being conducted within the current cost base. The Company announced on 16 March 2018 that its cash burn after grants is now less than $140k per month. Further details on expected growth rates, cash requirements and burn rate will be provided shortly in an investor pack. The Company reiterates its view that cash flow breakeven is within sight, assuming these initiatives respond as expected. Kylie O'Reilly, CEO of GEO said, "GEO's platform stability and advanced product development have enabled us to switch our focus in calendar 2018 to growth. The five separate initiatives announced today have all involved considerable planning and testing, and we believe will both stimulate growth during FY19, and reduce the timeframe to cash flow break even." About GEO: Geo provides cloud-based business productivity tools and applications for small to large businesses with mobile and distributed workforces. Geo targets its productivity tools at customers across different functions and business areas that range from sole traders to multi-seat organisations, sometimes with hundreds of licences. The nature of Geo's platform means that it is designed to scale for organisations of various sizes and with various needs. www.geo.tools About APD: APD serves clients across the Asia Pacific region who need specialist expertise to drive the digital transformation of their businesses. Services include digital strategy, technology solutions, customer experience, creative, performance marketing, social media, customer retention and analytics. The Company's 300+ digital professionals operate from offices in Manila, Kuala Lumpur, Singapore, Sydney, Melbourne and Auckland. www.apdgroup.com (1) GEO Chair Roger Sharp also chairs APD. Contact: Kylie O'Reilly kylie.o@geoop.com, mobile number: +61417 550 530 End CA:00317354 For:GEO Type:MKTUPDTE Time:2018-05-01 08:30:56