ROC renews large retail customer contract and updates on additional cash inflows

Our small cap AI tech Investment RocketBoots (ASX: ROC) has just renewed its contract with a major Australian retailer.

The extension of 1 year is with the same customer announced on 6th December 2024 and continues the partnership into an 8th year.

The major Australian retailer has over 250 locations across Australia and is using ROC’s software for store optimisations and loss prevention (eg theft).

This contract renewal comes with a $320k advanced payment expected to be received in Q2 next year.

This contract renewal shows ROC is able to keep clients long term and build on partnerships, proving that the customer sees continued value in the software.

On top of this, ROC today also confirmed that it is expecting to receive ~$210k as a result of a recent banking sector pilot trial in Q2 next year also, with additional revenue expected in Q3.

ROC also confirmed that it expects to submit a R&D tax incentive refund application in Q2 next year.

While it makes note that it isn’t guaranteed to receive a refund, in the prior 2 FY’s it received $251k and then $276k in the prior FY, so based on that trajectory there could be an additional ~$300k to be received through this in the future.

What else is ROC up to?

In the recent quarterly, ROC gave us an update on potential customers and numbers in the pipeline and compared them to this point last year.

We can see that potential customers at an advanced state have increased from 13 to 16, sites being operated has more than doubled and early pipeline customers and sites operated by them has increased by 50%.

(Source)

During the quarter, several enterprise customers completed trials and continue to advance commercial and technical engagements with ROC, including integrating its software with self-checkout platforms.

These included:

• A multinational retailer installed its first EU store after successful UK and US trials; integration has started and contract talks are underway.
• A contracted UK customer is awaiting integration before launching.
• Two US grocery retailers progressed from trial to contract negotiations.
• A new US retailer is preparing for a trial.
• A Japanese multinational retailer completed a successful demo and is in ongoing negotiations.

So we await to see which if these materialise into contracts in the near future.

In today’s announcement, ROC confirmed that ‘Advanced discussions continue across a number of international enterprise customers, with the Company focused on closing several near-term opportunities’. (source)

What’s next for ROC?

🔄Sales updates

We want to see ROC close deals, with updates that include the number of sites that ROC’s tech will be deployed to and contract dollar values.

We’ve outlined the types of deals that ROC is in the process of closing in our ROC Investment Memo:

New Sales: Retail/Supermarket

✅ New customer 1

🔲 New customer 2

🔲 New customer 3

New Sales: Consumer Banks

✅ New customer 1 (Unnamed Major Australian Bank 11th August)

✅ New customer 2 (Unnamed Major Mexican Bank 20th August)

🔲 New customer 3