Hubify Limited's Strategic Transformation

Hubify Limited (ASX: HFY) has announced its Q1 FY25 results and strategic developments during its AGM. The company, specializing in IT, cybersecurity, and communication solutions, has seen a 15% growth in managed services revenue and an increase in recurring revenue to 87% of total revenue. Despite challenges in FY24, Hubify has focused on operational profitability and growth.

Hubify Limited's Strategic Outlook

Hubify Limited is undergoing a significant transformation aimed at operational profitability and strategic growth. The company has shifted its revenue focus towards ICT services, which now account for 89% of total revenue. By divesting from the Mobility Small Business reseller program with Optus, Hubify has positioned itself for future expansion, despite a decline in mobility revenue. The company has also secured major clients across diverse industries, enhancing its reputation as a trusted IT and communication solutions provider. Hubify remains debt-free, maintaining financial stability, and is committed to enhancing its cybersecurity capabilities. Looking forward, the company aims for sustained growth, with potential for new acquisitions and maximizing profitability from future revenue growth.

Insights from the Company's Executive Team

The transformation efforts have led to a 15% revenue growth in managed services and an increase in recurring revenue to 87% of total revenue. Key strategic changes included divesting from the Mobility Small Business reseller program with Optus, resulting in a $6.36M decline in mobility revenue for FY24. However, improvements have emerged in Q4 FY24, continuing into Q1 FY25, with ICT revenue growth, stronger cash flow, and positive EBITDA.