Prophecy International H1 FY24 Business Growth Update

Prophecy International Holdings Ltd (ASX: $PRO) has reported a remarkable performance in the first half of the fiscal year 2024. The company achieved a 29% increase in revenue to $11.64 million, marking a record H1 for the company. The annualised recurring revenue (ARR) also saw a substantial growth of 21% to $24.9 million as of 31st December. Additionally, the company efficiently converted revenue into cash receipts, with invoicing up 21% to $10.95 million in H1 FY24.

Executive Commentary on H1 FY24 Performance

The consistent sales growth and transition to a primarily subscription-based model have been key drivers of our strong performance in H1 FY24. We are pleased with the significant momentum in the Middle East and the positive market tailwinds in Cloud Data Management, CX Analytics, and Cyber Security. Our strategic partnership with Oracle and the continued focus on marketing through the Genesys and Amazon Connect ecosystems have contributed to the growth in contracted sales for emite. Similarly, the Snare business's strategic shift towards subscription-based engagements has been well-received by customers, enhancing the sustainability and scalability of our business model. We remain debt-free with adequate financial flexibility to pursue our growth objectives.

Summary of H1 FY24 Performance and Outlook

Prophecy International (ASX: $PRO) has demonstrated robust growth in H1 FY24, with a 29% increase in revenue and a 21% growth in annualised recurring revenue. The company's focus on marketing through global channels and strategic partnerships has resulted in significant momentum in the Middle East and a positive market outlook for Cloud Data Management, CX Analytics, and Cyber Security. With a strong potential sales pipeline for both emite and Snare in 2024, valued at $10.0 million and $15.3 million respectively, Prophecy anticipates continued growth in these segments. The company's key priorities for 2024 include expanding sales and marketing efforts, increasing penetration of Snare products, and delivering a strong pipeline of product innovation. Prophecy International intends to release its audited H1 FY24 results on 27th February 2024, and the CEO, Brad Thomas, expressed confidence in the company's growth trajectory and strategic objectives.