The information technology sector has been considered as a sector with huge growth potential for any economy with increased application of technology in every aspect of business as normal human life.
An information technology sector player in Australia, Prophecy International Holdings Limited (ASX:PRO) announced the preliminary results for H1 FY20 that reflect a considerable improvement over FY19 with significant growth in top-line revenues.
Following the announcement of growth in top-line revenue reaching 19.5% against the same period last year, the PRO stock increased by 23.077% during the day’s trade on 16 January 2020 to $0.560, inching closer to its 52-weeks high price of $0.590.
The PRO stock closed the day’s trade at a price of $ 0.560 with a market capitalisation of $29.12 million.
During the past year, the PRO stock has delivered 51.67% returns as on 15 January 2020 and the same has delivered a return of 16.67% during the last six months.
Brad Thomas, the CEO of Prophecy International, said:
The ASX-listed software company, Prophecy International Holdings Limited operates internationally in Australia (Adelaide and Sydney), the UK (London) and in the USA (Denver) and offers its two products:
- Snare- Highly scalable platform of Centralized Log Management and Security Analytics products designed to enable customers to detect and manage cyber threats in real-time & maintain regulatory compliance
- eMite- CX Intelligence by eMite offers a SaaS-based real-time and historical analytics platform, dashboards, wallboards, KPI and orchestration products for Customer Experience, Contact Centre & IT Operation environments
Sales Revenue of $7.31 Million
As per the preliminary and unaudited financials from H1 FY20, the company anticipates sales revenue of roughly $7.31 million as compared to $6.12 million for H1 FY19. The fully audited results are expected to be released to the market in late February 2020.
With an increment in revenues and cash on hand balance in excess of $4 million at the end of the half-year FY20, PRO continues to be a debt-free company. The revenue growth for the combined Snare and eMite businesses against the same period of last year is 19.5%. The performance highlights from PRO’s Snare are as follows:
- A 39.3% increase in new business Snare sales with $4.010 million vs $2.878 million for H1 FY19;
- 312 new business sales in the H1 FY20 at an average of value $12,853, representing an increase of 54.6% against the average deal size during FY19;
- Blue-chip customers included Gemalto in EMEA, Principal Financial, QBE, Global Foundries, Metlife in the US and Dept Employment, Skills, Small & Family Business in Australia;
In addition to the above, the following are the performance highlights from PRO’s eMite:
- A total of 45 new eMite customers added in the first half, an average of 7.5 per month compared to 59 in the prior corresponding period (pcp)
- Significant shift in average contract values with the movement of eMite’s CX Intelligence into Large Enterprise
- Ten new sales of CX Intelligence for Amazon Connect
- Average 1CV (first-year contract value) increased to $36,990 from $14,733 in pcp representing a 150.5% increase in deal size
- Potential of more than 36,900 contact center seats sold in H1
- Increase in Total Contract Value from $1.70 million in H1 FY19 to $2.75 million in H1 2020 which is a 61.8% increase and a strong indicator for future revenue due to multiyear contract sales
- Sales across eight countries, with North America providing most sales – a total of 24 of the 45 sales, 13 from APAC and eight from EMEA
- Blue chips customers included Phillip Morris, 1800 Flowers, InfoArmor, Goldman Sachs, Blinkforhome (an Amazon company), Fidelity Investments, WA Water & Schroder Investments
The initial half of the financial year 2020 for Prophecy International was largely characterised by surges in the sales from both Snare and eMite, and the launch of eMite CX Intelligence for Amazon Connect along with the formal launch of that offering on Amazon Marketplace at the Amazon re:Invent Conference in Las Vegas during December 2019.
What differentiates CX Intelligence for Amazon Connect offering from the Genesys offering is the true usage-based model of CX Intelligence and only a small number of agreements that are committed to a minimum volume or tenure. This is aligned to the terms of the underlying Amazon Connect usage-based pricing models.
At the Genesys Sales Kick Off in Orlando in January 2020, the company plans to introduce a new offering that can assist customers to migrate from their legacy, on-premise contact centre solution to the cloud. Moreover, Snare shall shortly see the release of a new product that refreshes the Snare Central Server offering, and PRO shall be relaunching that in Q1 of 2020.
Shift to Full Regional Sales Structure
With growing sales teams reporting into them, Prophecy International has made a shift to a full regional sales structure with sales VP’s in Europe, the Middle East and Africa (EMEA), the Americas and Asia-Pacific, with:
- James (Jamie) Lind as the VP of Sales in EMEA has years of experience growing businesses in both Australia and EMEA with companies like Nortel, Avaya and Juniper
- John Pappas joined as VP Sales for the Americas with great global experience from companies like AT&T, Verizon and Ericsson
- Stuart Geros, leading sales in APAC was the co-founder of eMite
The updated structure establishes the foundation for the continuous growth of the company through an increase in its direct sales and channel teams globally.
As Prophecy International continues to make investments in expanding its business in the US, the company is also bringing fresh resources into EMEA to secure the likely opportunity across all its products. The company has expanded to a team of 6 people currently in UK where there were only two a year ago. The company anticipates for further growth in the second half with CX Intelligence for Genesys Cloud, CX Intelligence for Amazon Connect, a new channel through the Amazon Marketplace, a new cloud migration offering and a slew of new product launches in Snare.
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