FINEOS Corporation Holdings PLC (ASX: $FCL) Quarterly Activity Report and Business Update

FINEOS Corporation Holdings PLC (ASX: $FCL) has released its unaudited quarterly activity report and Appendix 4C cash flow statement for the three month period ending 31 March 2024 (1Q24). The report highlights a closing cash balance of €29.8m at 31 March 2024, reflecting positive cashflow generation for the quarter. Cash receipts from customers increased by 51% from the prior quarter, reaching €36.9m, although down 16% from the prior corresponding period (pcp). The company also provided updates on client contract renegotiations and key product milestones achieved during the quarter.

CEO Michael Kelly comments on quarterly performance and future outlook

CEO Michael Kelly stated, 'We continue to focus on key product investment to support our clients as they implement and expand their use of the FINEOS Platform for Employee Benefits, as well as investing to round out FINEOS Absence for Employers. A lot of important work has been completed during our first quarter to ensure key milestones, including planned go lives for later in the year are met. For Guardian, we continue to be on track with FINEOS AdminSuite in preparation for their production go live later this year in line with our joint plans. This milestone, combined with the fact that New York Life continues to be the only employee benefits carrier with a modern end-to-end core system in production ($4.1 billion premium, 9 million clients) having replaced 6 legacy core systems, should put FINEOS AdminSuite into a strong market position as the only purpose built policy administration system for group, voluntary and absence management. Our pipeline remains healthy as employee benefits carriers begin to appreciate the importance of core systems being purpose built for their industry.'

Summary of FINEOS Corporation Holdings PLC's quarterly performance and outlook

FINEOS Corporation Holdings PLC (ASX: $FCL) reported a positive cash balance at the end of the first quarter of 2024, with increased cash receipts from customers. The company highlighted ongoing client contract renegotiations and key product milestones achieved during the quarter. CEO Michael Kelly emphasized the focus on product investment to support clients and the achievement of key milestones. The company remains on track with FINEOS AdminSuite in preparation for production go live later this year and expects to align subscription fee growth with clients' business growth. FINEOS Corporation Holdings PLC maintains a healthy pipeline as employee benefits carriers recognize the importance of purpose-built core systems for their industry.