REZOLVE AI PLC Q4 FY2024 earnings call

• Went public in August 2024, accessing capital markets to scale. • Secured strategic partnerships with Microsoft and Google, making Rezolve AI-powered solutions available on their platforms. • Announced acquisition of GroupBy, enhancing sales force, customer footprint, and commercial relationships. • Product suite includes Brain Commerce (conversational commerce), Brain Checkout (fast checkout), and Brain Assistant (after-sales service). • Strengthened financial position by converting debt to equity and having strong liquidity with ~$18.9 million cash on hand as of Q1 2025. • 2024 revenue was $188,000, with non-operating expenses totaling $28.9 million, resulting in a GAAP net loss of $172.6 million.

No detailed breakdown of product segments with revenue contributions provided in the transcript. The company focuses on its product suite including Brain Commerce, Brain Checkout, and Brain Assistant, and strategic initiatives like partnerships and acquisitions.

• Expect to achieve $100 million estimated annual recurring revenue by end of 2025, including organic and acquired revenue. • Now expect break-even operating performance at $90 million ARR, an improvement from prior estimate of $100 million ARR, aligning resource additions with revenue growth. • Aim to scale with cost growth elastic and in line with revenue as they focus on revenue-generating roles.

• Forward-looking statements subject to factors that may cause actual results to differ materially from those stated, as discussed in SEC filings. These include factors not limited to those in SEC filings, and undue reliance should not be placed on forward-looking statements.

Q: Can you provide additional detail as to how the Liverpool deal came about and to what extent GroupBy and Google played a role in that process? And can you elaborate on any terms of the deal?

A: The Liverpool deal is a multi-year deal delivering nearly $10 million annually. Liverpool was a previous GroupBy customer and was upsold to Rezolve's Brain Commerce product solution, which includes SEO Studio developed in collaboration with Google. The deal is live today.

Q: Can you elaborate on the progress you are seeing in the sales pipeline and how each of your go-to-market strategies, including your partnerships with Microsoft and Google, are contributing to that process? And secondly, where are you seeing the most traction?

A: Traction across direct sales, partnerships, and acquisitions. Partnerships with Microsoft and Google drive growth in potential enterprise customers and average account size. The Liverpool deal is an example of success. Sales pipeline is growing with early momentum from partnerships and acquisition.

Q: Can you provide additional detail as to how Microsoft and Google are marketing Rezolve to potential enterprise customers and driving client wins? And what is that sales cycle look like?

A: Microsoft and Google offer incentives to customers to use committed funds to buy Rezolve, reducing their commitment to Microsoft/Google. They incentivize their sales organizations by counting Rezolve sales towards their quotas. Sales cycle varies per customer, from months to weeks.

Q: Can you walk us through your target criteria when evaluating M&A opportunities? And secondly, can you discuss your approach when funding M&A transactions in terms of cash versus equity?

A: Targets must fit the model, be additive to the proposition, and can be geographic, have established customers, or have compelling technology. GroupBy acquisition was funded with equity. Prefer to use cash where not meaningful and equity otherwise, mindful of shareholder dilution.

Q: Can you discuss the factors that underpin the advantage Rezolve's proprietary LLM has versus AI solutions available in the marketplace today?

A: Proprietary LLM (BRAiNPOWA) has deep product and category knowledge, empathy to connect with customers, and trained on sales techniques. It avoids hallucination, unlike many AI solutions. Built on this are products like Brain Commerce, Checkout, and Assistant to replace in-store experience online.

Q: As you scale the organization and ramp revenue throughout the year, can you discuss the areas of investment and levels of increased expense needed to support this growth?

A: Costs will increase in line with revenue, with sales and marketing expense growing as teams are scaled. No meaningful step change in cost buckets; costs are elastic and will grow in line with revenue.

Q: Given that your SaaS business model should have a significant amount of operating leverage, how are you thinking about the level of annual recurring revenue at which the company is able to achieve operating profitability?

A: Expect to reach EBITDA break-even at the $90 million ARR level. The SaaS model positions Rezolve well to achieve break-even profitability with relatively modest revenue growth, aiming for this milestone within 12-24 months.