Knosys Limited (ASX: $KNO) 1H FY24 Report Highlights

Knosys Limited (ASX: $KNO) has reported its half-year financial results for the period ending 31 December 2023. The company's net profit attributable to members of $59,778 marks a significant 105% improvement from the comparable half-year period to 31 December 2022. Knosys also achieved an EBITDA profit of $0.6m and positive operating cashflow of $0.7m for the 6 months to 31 December 2023.

Executive Commentary on 1H FY24 Performance

The reported profit is after the impact of non-cash charges of $418,673 for share-based payments and the amortisation of intangible assets. Knosys has prioritised operational efficiency and expense reduction, resulting in a reduced cost base which has driven a strong positive EBITDA result of $0.6m and positive operating cash flow of $0.7m. The consolidated entity's business model is predominantly software-as-a-service ('SaaS'), with a recurring subscription fee payable by clients on a per User basis, complemented by implementation fees and customer support services.

Summary of 1H FY24 Results and Outlook

Knosys reported a 105% improvement in net profit for the 1H FY24, driven by reduced personnel, marketing, and contractor expenses. The company achieved an EBITDA profit of $0.6m, positive operating cashflow of $0.7m, and maintained steady Annual Recurring Revenue (ARR) at $9.4m. Knosys is closely following key technology trends and continues to develop solutions that include AI components, mobility, and 3rd party integrations. The company aims to manage costs efficiently and focus on the efficient use of resources to deliver a positive EBITDA for FY24.