LiveTiles : FY22 Q3 Quarterly Activities Report and Appendix 4C

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

ASX Announcement

28 April 2022

For personal use only

LiveTiles continues its growth whilst strengthening its Employee Experience offering

Highlights

• • Cash receipts of $13.9M, 14% higher than prior corresponding period (pcp) in Q3FY21

• • Net operating cashflows of $(1.16)M improved +$1.1m and +49% compared to pcp

• • Strong cash runway with a cash position of $15.8M at 31 March 2022 and an additional $4M available to draw from the OneVentures debt facility, with total cash available of $19.8M.

• • $64.1M ARR at 31 March 2022, grew 9% versus the pcp; ARR on a Constant Currency basis1 was $64M, up $5.1M and 9% from March 2021.

• • Trailing Twelve Month (TTM) customer Net ARR Retention of 92%

• • Strategic acquisition in March 2022 of The Human Link, a leading Employee Experience (EX) company, helping accelerate the strategic goal of becoming recognised as a world leader in EX.

LiveTiles Limited (ASX:LVT) (LiveTiles or the Company), a global leader in employee experience software for employee collaboration and communications, has today released its Appendix 4C and Quarterly activities report for the three month period ended 31 March 2022 and is pleased to provide the following update on financial and operating performance.

BUSINESS AND FINANCE HIGHLIGHTS

1. CASH UPDATE

Cash Receipts

LiveTiles Q3 FY22 cash receipts of $13.9M grew +14% compared to pcp (Mar-21). With a drop to the previous quarter (Dec-21) reflecting seasonality and delays in timing of Q3FY22 customer renewals.

Trailing-twelve-month (TTM) cash receipts of $58.4M has grown +21% compared to pcp.

Cash Balance and Cash Flows

Cash on hand balance as at 31 March 2022 was $15.8M. With a further $4M in funds still remaining available to drawdown from the OneVentures debt facility, leaving total available cash of $19.8M and the Company in a strong capital position with sufficient cash runway.

1 31March 2022 ARR is shown on a constant currency basis when compared with using 31 March 2021 FX rates. Note: The Group commenced constant currency reporting in the quarter ended 30 June 2020

ASX Listing Rules Appendix 4C (17/07/20)

Page 1

+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Net cash operating outflows in the quarter of $(1.16)M, was a +$1.1M and +49% improvement compared to pcp and a +14% improvement on the Q2FY22 quarter. When adjusting for a $0.12M one-off Irish government grant received in the quarter, the Underlying Net Operating cashflow was $(1.29)M. The quarterly result primarily impacted with timing in Customer Cash receipts collections.

For personal use only

On a TTM basis, at 31 March 2022 Net Operating Cashflows were $(3.8)M which was a +68% improvement compared to pcp, whilst the underlying Net Operating Cashflows (excl. Govt Grants and non-recurring items) saw a +20% improvement to $(3.0)M.

Cash outflows related to business operations during the quarter included: R&D ($5.3M), Operating costs ($4M) Advertising and Marketing ($0.6M), Staff costs ($2.9M) and Admin and Corporate costs ($2.3M).

QUARTERLY NET OPERATING CASH FLOW

QUARTERLY NET OPERATING CASH FLOW (excl. govt grants and non-recurring items)

Mar-21

Jun-21

Sep-21

Dec-21

Mar-22

Mar-21

Jun-21

Sep-21

Dec-21

Mar-22

NET OPERATING CASH FLOW (TTM)NET OPERATING CASH FLOW (TTM)

(excl. govt grants and non-recurring items)

Mar-21

Jun-21

Sep-21

Dec-21

Mar-22

Mar-21

Jun-21

Sep-21

Dec-21

Mar-22

(5.0)

AUD$m

(17.2) (18.5)

The payments to related parties of the entity and their associates in section 6 of the Appendix 4C includes payments such as compensation to executive directors and director's fees and loans to executive directors on arms-length terms.

ASX Listing Rules Appendix 4C (17/07/20)

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+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

2. SALES AND CUSTOMER UPDATE

For personal use only

ARR on a reported currency basis was $64.1M as at 31 March 2022, up +9% from pcp. Compared to 31 December 2021 ($65.2m); there was a decrease in ARR due to a $(1.5)M FX headwind in the 31 March 2022 quarter. On a constant currency basis, ARR was $64M, representing an increase of $5M on the pcp, 31 March 2021.

Total customer count rose to 1,061 at 31 March 2022 and customer ARR Net $ Retention for the trailing 12month period was 92%, an improvement from 86% at 30 June 2022.

The Average ARR per Customer as at 31 March 2022 grew +14% to $60.4k versus the pcp, as the business continues to focus efforts to shift towards the larger Mid-market and Enterprise segment. On a constant currency basis, average ARR per customer also grew +14% over the pcp to $60.3k.

Some of the following key customer signings were made during the quarter across the regions:

• • Global renewable energy supplier with 5000+ employees (UK)

• • A German electricity distribution provider with 3,000+ employees (Germany)

• • An Australian non-profit supporting refugee settlement (AUS)

• • Swiss government body responsible for financial regulation (Switzerland)

• • An American professional baseball team (US)

• • A leading German logistics consulting services firm (Germany)

ARR +9% YoY

Average ARR + 14% YoY

AUD$M

March-19

AUD$000sMarch-20

March-21

March-22

March-19 March-20

March-21

March-22

ARR (Reported)ARR (Constant Currency)Average ARR (reported)Avg. ARR (Constant Currency)

3. BUSINESS OPERATIONS UPDATE

Ongoing operating and cost efficiency initiatives

During the quarter, the Company undertook a series of initiatives to help streamline and improve the business operations, drive further efficiencies and scale; whilst also continuing to focus on its cost management, these included the following:

LiveTiles undertook a process to establish a product development and engineering team in the lower-cost jurisdiction of Portugal, providing an ability to scale the team as required and improve its use of overall R&D expenditure. Various R&D costs have shifted from existing European operations into setting up Portugal to help create better cost efficiencies. These changes have been implemented as a result of the strategic review conducted in 2021 and feedback from shareholders with regard to overall cost management. Longer term, this initiative will also help create further synergies with the Portugal based BindTuning investment and future integration. This initiative will see approximately an increase of up to 15 new product development roles created in Portugal.

ASX Listing Rules Appendix 4C (17/07/20)

Page 3

+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

For personal use only

Similar to the streamlining of the R&D team, the marketing function has also undergone structural changes to drive greater cost efficiencies, scale and increased content production. In collaboration with a key partner, an operation has been established within the Philippines to build out a core team with a strong emphasis on demand generation and digital content creation. With the improvement of in-person customer engagement and events, the time is ideal to increase demand generation with our unique message in market.

Acquisition of a leading EX business, The Human Link

On 31 March 2022, the Company announced it had signed a binding agreement acquiring 100% of issued capital in The Human Link business, a leading EX company that works with many of Australia's largest blue-chip organisations and is a leading provider of EX programs.

The investment had an upfront consideration of AUD$0.5M in cash and 4.45M LVT shares (valued at AUD$0.5M) and a founders' performance based earn-out incentive scheme, capped at $3M over two years, targeting revenue and margin performance to ensure ongoing strategic alignment.

The Human Link business is a fast-growing and high-performing business, with over 60 quality customers, $2.1M in revenues2 and running a positive EBITDA and cash-flow business.

With this investment, it creates a proactive engagement model which will allow LiveTiles to accelerate its Employee Experience go to market by providing it with the skills and knowledge required to meet the EX demands of customers. The team capabilities will build deep long-lasting relationships well before the customer identifies the need to implement Employee Experience software and expose LiveTiles' product capabilities to a broader set of potential buyers and use cases.

This acquisition helps accelerate the strategic goals of LiveTiles to become recognised as the world leader in EX.

LiveTiles Co-Founder and Chief Executive Officer, Karl Redenbach states:

"The March quarter was exciting to welcome The Human Link team into the LiveTiles group, we believe this acquisition is strategically important for the Company and helps accelerate our Employee Experience offering as we strive to become recognised as the global leader in the EX-space.

During the quarter, we embarked on strategic initiatives to further improve our operations, drive greater scale and cost efficiencies across our product and marketing functions. These initiatives are very important to the continued successes of LiveTiles, to help accelerate our growth, improve our speed to market on new product and marketing content and continue to help on our path to cash-flow breakeven.

It is pleasing to see another quarter results with ongoing top line growth in both ARR and Cash receipts, when compared to prior corresponding periods, we have improved the operating cashflows by 68% over the last 12 months and importantly with $19.8M total cash available, the Company remains in a strong capital position for continued growth.

The Company continues to be very confident in the opportunities presenting across the ever growing Employee Experience market and we remain highly focused on executing on our strategic Company goals to become a leader in the EX industry."

2 For the twelve months to 28 February 2022

ASX Listing Rules Appendix 4C (17/07/20)

Page 4

+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

CONFERENCE CALL

For personal use only

The Company will hold a webinar for investors at 11.00am Sydney Time, Thursday 28 April 2022. Registration details are available at:LiveTiles Q3 registration link

A recording of the conference call will be made available on the Company's website atwww.livetilesglobal.com

This announcement has been authorised for release by the Board.

For further information, please contact:

Investor [e-mail]

About LiveTiles:

LiveTiles is a global leader in the employee experience market creating software to enhance employee collaboration and communication. LiveTiles is delivering solutions that drive human connection, employee engagement, well-being and productivity in the modern workplace.

LiveTiles have operations spanning North America, Europe, Asia and Australia, and services over 1,000 customers. LiveTiles was named is a leading player in the employee experience platform industry and has been acknowledged as such by Forrester and Gartner.

ASX Listing Rules Appendix 4C (17/07/20)

Page 5

+ See chapter 19 of the ASX Listing Rules for defined terms.