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Highlights
- The Australian company -- with a patented proprietary Internet of Things (IoT) solution -- has reported an uptick in revenues for Q2 and H1 FY23.
- The period saw growth in terms of number of devices sold by X2M to enterprise and government clients.
- X2M is presently focusing on the APAC utilities sector, and global expansion of operations is being explored.
X2M Connect Limited (ASX: X2M), a listed IoT technology company, reported another quarter of impressive performance for the three-month period ended 31 December 2022. The recently released report highlights X2M’s continued growth in terms of revenues, besides shining light on how the company expanded its connected devices segment and enterprise/ government client base.
The company ended the quarter with AU$3.1 million in cash.
Q2 and H1 revenue growth
During the reported quarter, total customer receipts stood at over AU$7 million, with the period ending on a positive cash flow.
Revenues for the quarter were reported at AU$5.2 million, up 74% year-on-year. For H1 FY23, X2M Connect registered 96% growth in revenues as compared to the previous corresponding period (PCP). Total revenues for the first half amounted to AU$9 million, with strong performance of the company’s operations in varied regions including South Korea, China, Japan, and Taiwan.
Business Growth
X2M -- primarily focused on the enterprise and government utility space of the Asia-Pacific (APAC) region -- has reported strong growth in its client base. In the first half, there was an uptick of 38% in the client base as compared to the PCP. This increase organically drives growth in devices connected to the company’s proprietary platform.
X2M further states that the growth in devices enables recurring Software as a service (SaaS) and maintenance revenues for the company. At the end of H1, total connected devices were over 361,000, which reflects a significant increase (47%) as compared to the figure at the start of the period.
Driven by this growth, the company’s Annualised Recurring Revenue (ARR) for the December 2022 month reached AU$1.1 million.
In the first quarter of FY23, the company posted a 137% revenue growth, while the enterprise and government customer base jumped 41%.
Source: X2M ASX Announcement 30 January 2023; © 2023 Krish Capital Pty. Ltd.
About X2M
The Australian tech company has commercialised a proprietary IoT solution (patented). The solution focuses on elements like improvements in productivity, public safety, and cost efficiency for stakeholders in the utilities sector. X2M’s service connects water, gas, electricity meters and other similar devices to the internet. This facilitates exchange of data and remote control of utility devices.
X2M’s revenue flows from hardware sales and from monthly subscription fees under SaaS arrangements. Presently focused on the APAC region -- where X2M has forged relationships with enterprises and government clients -- the company is exploring global expansion of its operations.
X2M shares traded at AU$0.074 at the end of trading session on 16 February 2023.
