Skyfii Signs MSA With US-based Cafaro; Stock Shoots Up By 10%

Skyfii Limited (ASX:SKF) is a Sydney, Australia based global software technology company that develops and commercialises, on a subscription model basis, the SaaS (software-as-a-service) cloud-based platform, which uses existing Wi-Fi infrastructure, video sources, door-to-people counters, web and social platforms to allow various types of venues to analyse behaviour of autonomous visitors and capture data from users who take internet connectivity free-of-cost. This allows conversion of data into useful insights for improving sales and marketing tools for visitors. Its key products include IO Connect, IO Insight and IO Engage.

On March 5^th, the company announced to have signed a three-year Master Services Agreement (MSA) with Cafaro Company, the North America-based retail property group, initially deploying services into the Eastwood Mall in Ohio. The contract provides access to Skyfii’s full suite of ‘IO Connect’ (data collection), ‘IO Insight’ (data analytics) and ‘IO Engage’ (marketing tools) under its SaaS recurring revenue platform. Furthermore, as per the MSA, the SaaS solution will be deployed and implemented across other mall properties within the Cafaro portfolio.

Cafaro is one of America’s largest companies engaged in development and management of privately-owned shopping centres. So far, Cafaro has worked on more than 50 properties covering over 30 million square feet of space across 14 states. While Eastwood Mall is also one of the biggest retail complexes in the United States encompassing shopping, dining, entertainment and lodging including 20 theatre screens and 125 specialty shop tenants.

Prior to this, the company entered into a 12-month contract with San Francisco Museum of Modern Art (SFMOMA) on February 26^th, 2019; a three-year contract with leading large format retail landlord, Home Co in Australia announced on February 113^th, 2019, and another three-year contract with Somerset County Cricket Club (Somerset CCC) to deploy its SaaS recurring revenue ‘IO Platform’ services across their stadium in the United Kingdom.

The newly bagged opportunity strengthens Skyfii’s international position while the company continues to grow its business as the leading data intelligence provider to retail property groups across Australia, the United Kingdom, Europe and now North America as well.

For the half-year ended December 31^st, 2018 (1H FY2019), the company generated revenues of around $ 4.68 million, up by 67.0% on $ 2.800 million recorded in the prior corresponding period (pcp, 1H FY2018). While the operating revenues (excluding interest income) increased by 74.3% to of $ 4.67 million (1H FY2018: $ 2.68 million), the recurring revenues increased by 51.7% to $2.29 million (1H FY2018: $1.51 million). The commendable improvement was mainly driven by the successful contract conversions in Australia and Brazil. Besides, the Group posted a positive operating EBITDA of approximately $ 291.9k (1H FY2018: $ 303.4k loss) and a net loss after tax of ~$ 1.23 million (1H FY2018: $1.099 million).

SKF has a market cap of AUD 46.82 million and ~ 312.16 million volume of outstanding shares. With the close of the market session on March 4^th, the SKF stock last traded at AUD 0.165, zooming up 10% by AUD 0.015.

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