Highlights
- RocketBoots signs beachhead contract with UK grocery retailer
- The deal will see RocketBoots Loss Prevention software deployed in three stages
- The contract term is 4 years (with an option to extend 2 years)
- The total contract value for Stage A is $648K (excluding VAT and the 2 year extension option)
- The total contract value for completion of all stages is up to AUD$1.8M (excluding VAT and the 2 year extension option)
- The Company continues to progress advanced discussions for its technology across a pipeline of other local and international enterprise customers.
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Artificial Intelligence software company RocketBoots Limited (ASX:ROC) (RocketBoots or the Company), is pleased to announce that it has signed its first major international contract with The Southern Co-Operative Limited to deploy its Loss Prevention software across its UK retail grocery locations.
After a period of international strategy execution, building sales and delivery capabilities in the UK, EU and US markets, RocketBoots has secured its first major international customer. This announcement demonstrates ROC’s capability to convert customer trials within its pipeline to long term contracts, and effectively marks the establishment of a beachhead position that it intends to leverage in the UK retail grocery vertical.
The contract provides a material change to RocketBoots’ Annual Recurring Revenue (ARR) position with stage A contributing a $160K (ex VAT) increase and the completion of subsequent stages B & C increasing ARR to approximately $450K (ex VAT). Revenue from the agreement nearly doubles the Company’s current ARR once all stages are implemented, based on revenues reported for year ended 30 June 2024. The Stage A rollout is estimated to commence this calendar year with the already deployed 8 sites being the first to roll onto this contract. Subsequent stage schedules are still in planning.
The customer may terminate this Agreement only on written notice to RocketBoots if RocketBoots commits a material breach which is not capable of remedy or remains unremedied for more than 10 business days.
RocketBoots is also currently engaged across a robust sales pipeline with a further 30 customers representing over 10K retail sites, including 9 customers in advanced stages that are either already trialling RocketBoots’s technology or in negotiations for multi-year contracts. The Company is encouraged by the fact it has retained all foundation customers over many years, and has been able to secure contracts from all trial prospects where it has demonstrated a return-on-investment.
Commenting on the deal, RocketBoots Chief Executive, Joel Rappolt, said:
“This deal shows international momentum and demonstrates the growth potential.
RocketBoots has secured 2 new customer contracts in the past couple of months, and this is a convergence of our customer sales pipeline and ability to demonstrate the value our technology delivers.
Importantly, we see this as a beachhead deal where RocketBoots can position itself for further growth in the UK retail grocery sector and increases our confidence in closing the other trials we have on foot."
Media and Investor inquiries:
Joel Rappolt
Chief Executive Officer
investors@rocketboots.com
Elvis Jurcevic
Investor Relations
+61408268271
ej@irxadvisors.com