Skyfii Limited recently presented the business performance and outlook of the company at Microcap Conference held at Sydney.
The omnidata intelligence company, Skyfii Limited (ASX: SKF) offers unique set of software-as-a-service products that are categorically designed to perform data analytics for a complete understanding of behaviour and experiences across the physical and digital world.
Its data-driven IO Platform consists of a suite of three core products that include IO Connect (data collection tool), IO Insight (Data Analytics tool) and IO Engage (Marketing Tools). The company holds a leading position among its enterprise software competitors, majorly due to its diversified offerings and continued topline and recurring revenue growth with positive EBITDA throughout the year.
During the first half of Fiscal 2019, Skyfii flagged 67.0% growth in revenue to $4.68 million compared to the previous corresponding period. This underscores the company’s success in deployment of major data analytics and infrastructure set up contracts within Australia alongside achieving the significant growth in customer contract conversion in Brazil.
Moreover, the company’s EBITDA has remained positive since 2018 underpinned by strong growth in SaaS recurring revenues through Australia-New Zealand (ANZ) and International operations.
The foundation of the company’s success is based on its organic growth strategy which comprises of direct sales and channel partnerships. Skyfii first collects the data through wifi analytics, people counters, cameras, then analyses it thoroughly and finally presents the content to the target audience of its clients through its marketing toolsets.
Skyfii’s revenue model is based on a diversified revenue mix that includes core recurring revenues, service revenues and non-recurring revenues. The company generates recurring revenue from ongoing subscription fees for access to Skyfii’s SaaS ‘IO’ platform services of Connect, Insight & Engage that are typically contracted on 3-5-year contract terms.
There has been 78.1% CAGR in Recurring Revenue over the past 4 years that forms part of the company’s total revenue CAGR of 84.7% during the same period. The company receives service revenue as either recurring or fixed fee projects, generated from the payment of projects undertaken by both DCS and MS divisions, including revenues generated from customers of the Causely (US) business. Whereas, non-recurring revenues are generated from upfront setup fees and other charges for deployment of hardware and infrastructure.
The target audience of the company’s data-driven products and services include universities, stadiums, campuses, shopping centres, restaurants, hospitals and airports. The enterprise client snapshot of the company includes big names like Blackstone Properties, HSBC, Dexus, Westfield and Precision Group to name few.
Skyfii aims to attain more innovation and expansion of its global IO Platform while increasing the share of existing customer base and increasing new customer subscriptions. The other core focus areas of the company underline its objective to accelerate organic growth through acquisition and expand its services offering into international operations.
The company’s ambition is to become the global leader in data analytics & marketing services in the physical environment as well as the largest provider by revenue and market capitalisation globally by 2021.
SKF last traded at $0.170, up by 3.03% (as on 10 April 2019) with a market capitalisation of $52.38 million.
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