Prophecy International Announced Revenue Growth Across All Products In H1 FY2019

PRO

Prophecy International Holdings Limited (ASX:PRO), a company which belongs to the information technology sector and into the business of designing, developing and marketing computer software applications and services, announced the preliminary results of H1 FY2019. The results of H1 FY2019 were quite pleasing from previous corresponding period (FY 18) from Snare. The result from the eMite for the same period was solid and consistent.  

As per the preliminary and unaudited financials from H1 FY2019, the company expects the sales revenue of circa A$6.120 million and EBITDA of A$0.067 million. The company will release the fully audited results to the market in late February. It represents a growth in revenue by 4% as compared to the previous corresponding period for the combined businesses of Snare and eMite. The company also highlighted that there would be no dividend for the first half.

Brad Thomas, who is the CEO of Prophecy International, stated that the overall result was solid. The company also reported about a significant enterprise sale that was achieved through eMite. This engaged sale to a popular global bank based out in Asia, in particular. The sale has contributed meaningfully to group’s revenue and profit in first half of FY18.

However, the results in this year were driven by unwavering sales activity and higher sales from Snare. This along with annuity revenue from eMite helped the group as new customers were added to the base on a monthly basis. The launch of Snare Analytics as well as Snare Threat Intelligence added to the performance. At present, the focus of the company is to grow organically and increase its direct and indirect sales across North America and Europe.

During the period, the statistics of eMite reported the addition of 59 new eMite customers. About 40% of eMite related sales have been based on annuity agreements signed for about 2-4 years. More than 3,500 contact centre seats were sold during the period. The eMite made sales in 16 different countries. During the period, it generated a revenue of $1.605 million which was $1.772 million in H1 FY18. The $1.772 million revenue in H1 FY2018 included a large perpetual license deal of approximately $600K.  The eMite’s Blue chip clients are g Norton Rose Fullbright, Hilton Hotels, Purplebricks, F5 Networks and AXA Life Japan. There was a significant increase in the sales contribution from North America which represents 65% of all eMite sales and pipeline in the USA.

Based on the key statistics of Snare, there was an increase in the new business sales of 34.88%. The new business through the Snare sales generated $2.894 million which was up by 15.62% as compared to the previous corresponding period. The total Snare revenue was up from $3.539 million in FY2018 to $3.918 million in FY19. In the USA, Canada and Europe, four new Snare Analytics large enterprise customers were implemented. Exemplary blue-chip customers include American Express, Worley Parsons, Singapore Stock Exchange, Wyndham Hotels, and Gemalto. Many other military and defence agencies across the globe also constitute a portion of the customer base.

By the end of the trading session on 6 February 2019, the closing price of the stock was A$0.320 which was up by 20.755% as compared to its previous trading day’s closing price. The stock has a market capitalization of A$16.96 million.


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