Prophecy International Holdings Ltd (ASX: $PRO) Q4 FY24 Business Growth Update

Prophecy International Holdings Ltd (ASX: $PRO) has reported an 18.3% year-on-year revenue increase to $23.2M in Q4 FY24. The company's contracted annualised recurring revenue (ARR) surged by 26.1% year-on-year to $28.4M, excluding Legacy. With a positive outlook for its strategic partnership with Devo Technology, Prophecy anticipates a neutral to positive cash flow in FY24.

Executive Commentary

The Company continues to make significant progress across its business units, achieving steady growth in sales and a substantial increase in contracted ARR. We are pleased with the positive momentum and outlook for our strategic partnership with Devo Technology, which is expected to contribute approximately $1.6M of new contracted ARR by the end of FY24. Our focus on marketing through the Genesys and Amazon Connect contact centre technology ecosystems has driven growth in contracted sales for emite, and we anticipate continued growth in this segment. Additionally, our cybersecurity software product, Snare, has seen continued success, particularly through our partnership with Devo, and we are optimistic about the potential for further growth in this area.

Summary

Prophecy International Holdings Ltd (ASX: $PRO) has demonstrated robust financial and operational performance in Q4 FY24, with significant revenue growth and an accelerated base of contracted ARR. The company anticipates a neutral to positive cash flow in FY24 and expects to achieve positive EBITDA in FY25. The strategic partnership with Devo Technology is poised to add approximately $1.6M of new contracted ARR by the end of FY24, with the potential for further growth. Prophecy's focus on marketing through the Genesys and Amazon Connect contact centre technology ecosystems has driven growth in contracted sales for emite, while the cybersecurity software product, Snare, continues to deliver positive results. Looking ahead, the company's priorities for FY25 include expanding sales and marketing, increasing emite sales to large enterprise customers, and enhancing the penetration of Snare products with new and existing customers. With a positive outlook and a strong pipeline of product innovation, Prophecy remains well-positioned for continued growth and success in its key market segments.