Breakout results: Spacetalk clocks record Q4 and FY21 revenue

Summary

  • Spacetalk Limited has released a preview of its Q4 and FY21 results, highlighting a whopping 1600% jump in Q4 device sales revenue.
  • Spacetalk highlighted that the massive revenue growth was driven by a combination of robust demand and sell-through of its devices.
  • The Company’s new partnerships with tier-1 global telcos in the UK and Australia signify Spacetalk’s strong growth in the kids smartphone watch.
  • At market close yesterday, Spacetalk shares were up 8.57%, closing at 19.0 cents per share.

Following an impressive third-quarter performance, Spacetalk Limited (ASX:SPA) has delivered another record-breaking quarter with the highest quarterly revenue in its history. The ASX-listed global technology provider has released a preview of its Q4 and FY21 results (unaudited) and highlighted that it will report the audited results in August 2021.

The Company revealed that the record revenue reported in Q4 and FY21 was driven by a combination of robust demand and sell-through of its devices, continued growth in App revenue, and the huge new tier-1 partnerships.

Triggered by the upbeat announcement, Spacetalk shares shot up 8.57% to close at 19.0 cents per share on 15 July 2021.

ALSO READ: Spacetalk (ASX: SPA) takes centre stage in the UK with Telefonica UK (O2) partnership

Q4 group revenue up 182%

Spacetalk disclosed that it raked in the best Q4 revenue in its history. The key highlights from the quarter include-

  • Spacetalk generated record revenue of AU$3.0 million, up 182% compared to the prior corresponding period (pcp).
  • Device sales revenue in Q4 surged by a staggering 1600% pcp to reach AU$1.7 million.
  • The monumental growth in the company’s device sales was bolstered by the new tier-1 partnerships as well as strong sell-through from new and existing distribution partners to their customers.
  • SPA’s App Subscription revenue was reported at AU$670k, up by 86% pcp, which in turn, helped boost the App Annualised Recurring Revenue (ARR) to AU$2.8 million.
  • Revenue from school business remained stable at AU$0.6 million.
  • The Company had a cash balance of more than AU$4.2 million at the end of the quarter.


Source: SPA Update, 15 July 2021

Business highlights of the fourth quarter

Spacetalk stated that the new partnerships made in Q4 with some of the world’s largest telcos, including Telstra, Telefonica UK (O2), Virgin UK, corroborates the robust growth in the kids smartphone watch category. Spacetalk is the first and only offering in this specific category for its partner telecom companies.

ALSO READ: Shooting for the Sky: Spacetalk extends partnership with Sky UK for Adventurer sales

Mark Fortunatow, Founder and CEO of Spacetalk, commented-

Spacetalk’s robust FY21 figures

  • The Company witnessed an exceptional ARR growth in FY21 with an all-time high record revenue growth of 43% on the pcp at AU$15.1 million.
  • Spacetalk raked in AU$10.6 million in FY21 Device sales revenue – a surge of 65% on the pcp.
  • In Australia, device sales revenue stood at AU$9.1m, up 85% pcp, while UK device sales remained flat at AU$1.5 million.
  • FY21 App Subscription revenue was recorded at AU$2.2 million, up 76% pcp, with App ARR of AU$2.8 million.
  • Schools business revenue stood at AU$2.2 million, driven by a one-off SMS revenue spike due to the COVID-19 pandemic.

Strategic priorities during FY21

In FY21, the Company remained focused on its strategic priorities, including growing its top line, capturing the global market opportunity, expanding Spacetalk LIFE distribution and improving the operating cost efficiencies.

Capturing the global market opportunity

  • Spacetalk launched Adventurer across ANZ and UK.
  • The Company remained focused on expanding its presence in the UK and Australia with some new partnerships with Telstra, Telefonica UK (O2), Virgin UK.
  • Spacetalk appointed a new UK Country Manager and expanded customer support.
  • Appointed a new US Country Manager and expanded sales and customer support.

Moreover, the Company remains on track for a US launch in CY2021.

App advancement

Spacetalk continued focusing on advancing its applications and enhanced the in-app experience. The Company incorporated new features like family chat and fall detection in its devices.

MUST READ: Spacetalk (ASX:SPA) releases Fall Detection for Spacetalk LIFE Seniors devices

Expanding Spacetalk LIFE distribution

  • The Company launched a B2B2C channel including Aged/Home Care, NDIS operators, OTs.
  • Spacetalk became an approved NDIS Registered Provider.
  • The pricing of Spacetalk devices was repositioned for complete (100%) government funding.

DO READ: Spacetalk (ASX:SPA) approved as an NDIS registered provider

Furthermore, the Company remained focused on improving operating cost efficiencies that will be provided in the audited FY21 results.

To know more about Spacetalk Ltd., click here.

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