Prophecy International announces key updates

Prophecy International Holdings (ASX:PRO) has announced changes regarding the reporting of its contracted annual recurring revenue (ARR) for its emite business unit. An internal review uncovered discrepancies in the unaudited and non-IFRS contracted ARR values. These discrepancies do not affect the company's audited financial figures.

Overview of Prophecy International's strategic response

Prophecy International has identified discrepancies in the reported contracted ARR for its emite unit but confirmed no impact on audited financials. The company is prioritizing the deployment of a new software system for improved data integrity by Q3 FY25. Despite adjustments, emite's ARR showed robust growth of 33% in FY24. Prophecy aims to expand emite's market reach with new partnerships and enhance geographic coverage. The Adelaide-based company continues to focus on leveraging its iPaaS capabilities to extend its market presence.

Executive insights on emite ARR findings

The discrepancies were limited to the emite business and were due to factors such as unflagged contract cancellations, contracts not achieving initial values, and incorrect categorization of one-off fees as recurring.