Locafy Stock Soars After AI Sales Team Delivers Strong Initial Results

Locafy Limited (NASDAQ: LCFY), a software-as-a-service company, saw its stock surge more than 38% after announcing . The rally was fueled by investor optimism over a successful pilot program that validates the company's scalable, AI-driven strategy for acquiring new partners.

The company, which specializes in location-based digital marketing solutions, conducted a four-day pilot campaign targeting 900 digital marketing agencies in Australia. Using only AI-generated SMS communications, the initiative successfully booked 25 meetings, generated 130 qualified warm leads, and resulted in several proof-of-concept deployments. According to the company, the campaign achieved an impressive 12.5% conversion rate on agencies that engaged with the AI.

The quality of the leads and meetings generated by the AI system appears high. Locafy reported 100% attendance at the AI-generated meetings, with conversion rates from those meetings tracking above 50%. The success of the pilot has already secured significant business opportunities, including a national home services franchise with over 700 franchisees and a large digital agency that serves 450 clients.

"These initial results highlight the power of our AI sales engine in driving both partner acquisition and customer engagement," said Gavin Burnett, CEO of Locafy. "Our go-to-market strategy is straightforward and scalable: use AI to generate high-quality leads, connect those leads directly with our partners, and deliver Locafy’s technology to power their success."

The strong performance of the pilot serves as a key proof-of-concept for the company, as it looks to expand its reach. Locafy plans to replicate this AI-driven model across its extensive database of 55,000 agencies in the United States, a move that the company believes could become a significant growth driver for its business and partners.