Key highlights of Prophecy International Holdings' H1 FY24 results

Prophecy International Holdings Limited (ASX: $PRO) has reported a record half-year performance for the period ended 31 December 2023. The company achieved a 27% increase in revenue to $11.5 million and a 21% growth in annualised recurring revenue (ARR) to $24.9 million. The half-year closed with a cash balance of $9.9 million, reflecting a positive financial position.

Executive commentary on H1 FY24 performance

In H1 FY24, Prophecy International Holdings Ltd focused on delivering organic growth through its primary product lines, emite and Snare. The company's base of ARR grew to $24.9 million, up 21% year-on-year. The transition of the Snare business to a primarily subscription-based model resulted in a 75% increase in subscription sales. The company also efficiently converted revenue into cash receipts, with invoicing up 21% to $10.95 million in H1 FY24.

Summary of Prophecy International Holdings' outlook

Prophecy International Holdings (ASX: $PRO) remains debt-free and has identified a potential sales pipeline for both emite and Snare, valued at $10.0 million and $15.3 million respectively for 2024. The company aims to continue expanding sales and marketing globally, increase emite sales to large enterprise customers, and penetrate the Government & Defense segment in the USA with Snare products. Prophecy's focus on delivering new capabilities and transitioning towards SaaS & subscription sales reflects its commitment to driving organic growth and exploring potential M&A opportunities.