Cluey : December 2021 Quarterly Activities Report & Appendix 4C

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ASX Announcement

27 January 2022

Cluey December 2021 Quarterly Activities Report and Appendix 4C

Cluey Ltd (ASX: CLU) ("Cluey" or the "Company") is pleased to release its Appendix 4C Quarterly Cashflow Report and Quarterly Activities Report for the quarter ending 31 December 2021 ("Q2FY22").

Highlights & Key Business Activities

• Significant growth aross all key Group metrics

1. Revenue +157% compared to the prior corresponding period ("Q2 FY21") ('PCP')

1. Gross Profit +161% on PCP

• 1. Cash Receipts from Customers +167% on PCP
• Completed the acquisition of Code Camp Holdings Pty Ltd ("Code Camp") on 1 October 2021. The results of Code Camp for the quarter are included in this report (Cluey and its subsidiaries make up the "Group").
• Expansion into New Zealand
• Completed $2m Share Purchase Plan in October 2021

Growth and improvement in all key metrics - Q2 FY22

Cluey Consolidated Group - Q2 FY22

Revenue1	Gross Profit
$7.9m	$4.3m
+157% on PCP	+161% on PCP

Cash Receipts from Customers

$8.6m

+167% on PCP

Cluey Learning - Q2 FY22

Cluey Learning (being the Cluey Learning operating subsidiaries excluding Code Camp)

Revenue	New Students
$7.1m	4,287
+130% on PCP	+68% on PCP

1 Revenue and gross profit amounts disclosed are unaudited.

Cluey Ltd

ABN: 65 644 675 909

Suite 2, Level 2, 117 Clarence Street

Sydney NSW 2000

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Student sessions	Variable CAC2 per New Student
111k	$534
+128% on PCP	-8% on PCP
Gross Profit	Cash Receipts from Customers
$3.8m	$7.4m
+129% on PCP	+129% on PCP

Q2 is typically a weaker quarter compared to Q1, with student sessions decreasing as Year 12 students complete their schooling and the summer school holidays commence in December. Notwithstanding the impact of seasonality, the Cluey Learning business continued to grow and performed strongly during the quarter.

Expansion into New Zealand

In October, Cluey completed a soft launch into New Zealand. Initial results were positive and support the decision to expand into the NZ market. New Zealand accounted for 3% of total new students acquired in the quarter, with a similar CAC to that of Australia.

Completion of Code Camp acquisition

During the quarter, the Company completed the acquisition of coding and digital skills provider Code Camp. The Code Camp acquisition completed on 1 October 2021 and was funded partly in cash with a payment during the quarter of $1.3 million and the balance by the issue of 5,987,489 shares at $1.119 per share.

The acquisition of Code Camp will broaden Cluey's B2C online programs, extend Cluey's B2B and B2B2C offerings, as well as enable Cluey to offer face-to-face school holiday camps and after-school programs. This provides the opportunity to increase active customers and lifetime value, and lower customer acquisition costs.

Code Camp - Q2 FY22

Code Camp experienced lower student numbers compared to PCP due to the impact of the recent COVID outbreaks resulting in some schools not offering holiday camps and certain parents not willing to send their children to holiday camps this quarter.

New face-to-face Students3		New online Students4
2,105		449
-11% on PCP		+21% on PCP
Total Students5
3,952
-13% on PCP

1. Variable CAC (customer acquisition costs) per student is a non-IFRS measure used for management purposes which represents variable acquisition expenditure for a period divided by new students with a session in the same period. Variable acquisition expenditure is calculated based on total marketing expenses, plus learning advisor (sales) employment costs and commission (included in employee benefits expense).
2. New face-to-face students for Code Camp are students who have paid in the period for an in-person camp or after school program. This includes camps or programs which will take place in future periods.
3. New online students for Code Camp are students who have paid in the period for an online program. This includes programs which will take place in future periods.
4. Total students for Code Camp are students who have paid in the period for an in-person camp, after school or online program. This includes camps or programs which will take place in future periods.

Cluey Ltd

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Quarterly Cashflow Report

The Appendix 4C Quarterly Cashflow Report was released to ASX today and is attached.

Operating activities

Cluey continued to provide personalised online tutoring and educational support to Australian school students in the quarter, and in addition, now offers co-curricula online, in- person school holiday camps and after-school programs through its subsidiary Code Camp.

Significant cash receipts and payments (inclusive of GST where applicable) disclosed in the Appendix 4C include the following:

• Cash receipts from customers of $8.6 million in the quarter, representing growth of 167% on cash receipts of $3.2 million in the PCP.
• Cash payments for advertising and marketing (including prepayments) in the quarter of $2.8 million, consistent with Q1FY22.
• Cash payments to staff and tutors disclosed in cash flow from operating activities in the quarter of $8.6 million. In Q2FY22 payments to tutors represented 49% of total payments to staff and tutors compared to 29% in the PCP. An additional $0.4 million of cash payments to staff involved in the further development of content and technology platform intangible assets are disclosed in cash flow from investing activities.

Investing and Financing activities

• Net cash inflow on the acquisition of Code Camp of $0.1 million, ($1.3 million consideration paid offset by $1.4 million cash acquired).
• $2 million of cash proceeds from a Share Purchase Plan which was completed in October 2021.

Adjusted6 net cash outflows before financing activities for Q2FY22 of $4.7 million is an improvement of $0.2 million on the PCP. The net cash outflow in Q2FY22 includes $1.2 million of prepayments for marketing campaigns commencing in Q3FY22, which coincides with the start of the school year. Marketing prepayments at 31 December 2021 increased by $0.8 million compared to the PCP.

Total cash on hand as of 31 December 2021 was $32.8 million.

6 Adjusted for costs incurred in corporate development (including the acquisition and integration of Code Camp, B2B NSW Department of Education Intensive Learning Support Program for Schools initiative, New Zealand launch and costs associated with the establishment of the new office).

Cluey Ltd

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Use of funds - IPO capital raise $30m

The Company prepared the Prospectus in October 2020 in relation to the offer of 25.1 million shares at an issue price of $1.20 per share to raise $30 million.

In Section 1.8 of the Prospectus, the Company provided a statement detailing the proposed use of these funds. The table below shows the use of funds from the date of admission to the ASX.

Use of funds	Proposed per	Actual expenditure	Commentary
	Prospectus	8/12/20 to 31/12/21
	$m	$m
Sales & Marketing	10.9	10.9	In line with expectations
Product, Customer	5.8	4.5	In line with expectations
Care, Education &
Technology
Expenses	3.4	3.3	In line with expectations -
associated with the			noting that IPO costs include
IPO / Capital raise			those incurred prior to
			8/12/20
Working Capital	9.9	2.7	In line with expectations
Total	30.0	21.4

31 December 2021 half-year results and statutory report

The Company will release the 31 December 2021 half-year report to the ASX in the week commencing Monday 21 February 2022. The CEO and CFO will conduct a Shareholder Presentation on the half-year results shortly thereafter.

Payments to Directors and Related Parties

During the quarter, the following payments to Directors and Related Parties were made:

• $165,000 included in cashflows from operating activities. These payments were to Executive Directors for gross salary, fees, and expense reimbursements, and to Non- Executive Directors for fees.

_________________________

ENDS

Authorised for release to the ASX by the Board of Cluey Ltd.

For enquiries please contact:
Investors
Mark Rohald	Greg Fordred
CEO	CFO & Company Secretary
[e-mail]	[e-mail]

Cluey Ltd

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ABOUT CLUEY

Cluey is an innovative, ASX-listed Edtech company that combines education, technology and data to deliver quality education outcomes and an enhanced experience for students. Cluey has a highly experienced management team and Board with a track record of building successful education businesses and is supported by an Independent Advisory Board comprising four eminent independent education sector thought leaders.

Cluey key facts:

• Cluey provides curriculum aligned academic support for students in Australia and New Zealand. In addition, Cluey delivers co-curricular online, holiday camps and after school programs in Australia.
• Cluey is headquartered in Sydney.
• Cluey has been recognised in the prestigious HolonIQ inaugural list of most innovative Edtech companies in Australia. Cluey was also the winner of the 2021 Technology Scale-up Edtech of the Year Award.

Cluey Ltd