Narrowing Guidance Range Upwards to $7.5M to $8.3M

TradeWindow Investor Update
Quarter 2 - FY25
NARROWING GUIDANCE RANGE UPWARDS TO $7.5 MILLION TO
$8.3 MILLION
Financial Performance
Market Developments
Product Development
22 OCTOBER 2024
Dear Shareholders,
I’m pleased to report a solid result for the first half of the financial year (1 April 2024 to 30 September 2024). Key highlights
include:
Trading revenue: $3.7 million, up 22% on the prior year
Annual Recurring Revenue (ARR): up 14% on year end FY24 to $7.2 million
Customers: up 36 on the prior year to 549
Customer Retention Rate: up 4 percentage points on FY24 to 97%
We’ve extended our record of unbroken quarter-on-quarter revenue growth since listing on the NZX in November 2021. We
have carried momentum from the first quarter FY25 to deliver a half year result that allows us to narrow our guidance range
upwards to $7.5 million to $8.3 million and we remain on track to deliver monthly EBITDA breakeven in March 2025.
Our confidence comes from strong trading revenues at $3.7 million for the period ended 30 September 2024, up 22% on the
half year result for FY24. Annual Recurring Revenues (ARR) have grown by 14% from 31 March 2024 to reach $7.2 million.
The growth in ARR reflects our increased focus on winning larger enterprise customers that offer more predictable trading
patterns irrespective of the business environment.
Our key customer segments continue to grow both in terms of revenues and customers. The Average Revenue Per
Customer (ARPC) for shippers was up 14% on the same period last year to $1,944 per month. Our shipper segment
performance is underpinned by strong export trade volumes. One of our largest exposures is to the red meat sector which
includes ANZCO, AFFCO, Alliance, and Silver Fern Farms. Over the first half of the year, the Meat Industry Association (MIA)
has been reporting solid export volumes. An increase in demand from the USA and other key trading partners has offset the
downturn in shipments to China.
Our freight forwarder segment received a boost with several large enterprise freight forwarders in Australia adopting our
improved TW Freight e-commerce module. This saw freight forwarder ARPC grow by 29% year-on-year to reach $824.
At our annual meeting in August we reiterated guidance given at the time of our March 2024 capital raising for FY25 revenue to range between $7.3 million and $8.3 million.1.
1

22 OCTOBER 2024
Key Performance Indicators - half year ended 30 September 2024 (2H25)
(Unaudited)
GROSS MARGIN - FOCUS ON CONTINUOUS IMPROVEMENT
Our Gross Margin held steady from the first quarter at 61%, up 7 percentage points on the prior year. Our ongoing focus on
continuous improvement provides new customers with a more streamlined onboarding experience enabled through
automated workflows.
Note, all comparisons are against first half FY24 (1H24) unless otherwise indicated.
Annual Recurring Revenue is calculated using subscription revenue for September 2024 and the monthly average of transaction revenue for Q2FY25
annualised.
Trading
revenue
Up 7 ppt on FY24
Up 22% on 1H24
Annual
Recurring
Revenue
Customers
Up 36 on FY24
Up 14% on FY24
Customer
retention rate
Up 4 ppt on FY24
Up 14% on FY24
Up 29% on FY24
61%
$3.7m
549
$7.2m
97%
$1,944
38%
$824
ARPC (Freight
Forwarders)
% of expenses
R&D and
Commercialisation
Down 9 ppt on FY24
ARPC
(Shippers)
CUSTOMERS - NEW PARTNERSHIP DRIVES CUSTOMER GROWTH
Our customer numbers jumped 36 on the prior year to 549. The majority of these new customers come from the new
partnership agreement with the Sydney-based industry body, International Forwarders and Customs Brokers Association of
Australia (IFCBAA). The partnership covers our Tariff solution which is a business critical cross-border compliance tool
that allows users to find all relevant information on tariffs and search and validate commodity classifications, duty rates,
and other regulatory notices.
COSTS - DELIVERING PRODUCT IN BUDGET
Shifting part of our operations to the Philippines is beginning to deliver dividends through a pipeline of new features and
functionality which includes a major update to Cube (further details provided in the following section). Cost efficient
delivery is key to delivering a self-sustaining research and development programme. As a technology company we can’t
stand still, we must continue to invest in incremental innovations to meet our customers’ ever evolving needs and
expectations.
Gross
Margin

PRODUCT - KEY MARKET PLAYER ADOPTION
We have achieved a significant milestone in the development and adoption of Cube, our cornerstone digital trade platform.
COFCO Joycome, part of Chinese conglomerate, COFCO Corporation and one of the world’s largest agri-business groups,
which employs over 11,000 staff in 36 countries, has become the first importer to ‘go live’ with our new Cube API. This
integration will serve as a case study for importers worldwide.
COFCO Joycome can now seamlessly retrieve export documents directly into its International Business Integration System,
approve them, and send updates back to the exporter without needing to manually log into TradeWindow Cube. The status
updates, approvals, and document changes are instantly reflected for exporters to review, all through the integrated systems.
This development will streamline customer interactions for leading Australasian exporters, including TradeWindow customer
Alliance Group, which ships around 2,000 containers to COFCO Joycome annually.
OUTLOOK – ECONOMIC CONDITIONS IMPROVING
We are cautiously optimistic for the remainder of the year with macroeconomic conditions appearing to be on the improve.
Inflation appears to be under control both in New Zealand and Australia. The Reserve Bank of New Zealand’s move to cut the
Official Cash Rate (OCR) by 50 basis points this month should not only help stimulate the domestic economy but also
weaken the New Zealand dollar making our exporter customers more competitive in overseas markets. It is likely that
Australia will follow suit with the Reserve Bank of Australia predicted to make a rate cut of 25 basis points in early November.
Finally, I would like to take the opportunity to remind you that we will be releasing the full half-year results at 11am on 28
November 2024. We encourage you to join the online presentation using the link below.
https://ccmediaframe.com/?id=WwhIQozl
Thank you for your ongoing support.
Kind regards
AJ Smith,
Executive Director & CEO
22 OCTOBER 2024
Investors
Andrew Balgarnie
Chief Strategy Officer
+64 27 559 4133
Media
Richard Inder
The Project
+64 21 645 643