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Highlights
- Cirata reported Q3 2024 bookings of $1.7 million, keeping full-year guidance at $13-$15 million.
- The company signed 16 contracts in Q3, including a significant $983,010 renewal for disaster recovery services.
- Cirata aims for an annualized cost run rate of $20 million by FY2024's end and reported a strong cash position of $12.9 million.
Cirata plc (LSE:CRTA) has released its unaudited trading update for the third quarter ending 30 September 2024. The company reported steady performance in line with previous quarters while emphasizing its continued focus on pipeline development, sales growth, and strategic execution. CEO Stephen Kelly provided further insights into the company’s progress and outlook in a recorded video interview.
Q3 2024 Financial and Operational Highlights
- Bookings: Cirata’s bookings for Q3 2024 totaled $1.7 million, consistent with both Q2 2024 and Q3 FY2023. Year-to-date bookings stand at $4.1 million, with full-year guidance remaining unchanged at $13-$15 million. While achieving this target will be demanding, the company remains confident in its execution plan for the final quarter of the year.
- Notable Contracts: The quarter saw 16 contracts signed, with eight specifically related to the Data Integration (DI) business. One key highlight was a $983,010 renewal contract for a global insurer using DI for disaster recovery purposes. This renewal reflects the strong value proposition of Cirata’s solutions for large enterprises.
- Technology Enhancements: Cirata released Live Data Migrator (LDM) version 2.6, which includes initial support for Apache Iceberg, further enhancing the platform's capabilities. This development strengthens Cirata's technological offering and aligns with growing market demand for advanced data integration and migration solutions.
- Prepaid Retirements: The company retired unutilized prepaid contracts worth $1.7 million, a move that is expected to facilitate pipeline development, go-to-market (GTM) activities, and contract conversion in the upcoming quarters. This strategic decision allows Cirata to focus its resources more effectively on high-potential opportunities.
- Cost Management: Cirata is on track to achieve an annualized cost run rate of $20 million by the end of FY2024. This cost discipline is aimed at supporting long-term financial sustainability while continuing to invest in key areas of growth.
- Cash Position: As of 30 September 2024, Cirata reported a solid cash position of $12.9 million, providing a strong foundation to support its strategic initiatives and operational needs in the near term.
- Board Strengthening: After the quarter ended, Cirata made strategic enhancements to its leadership team with the appointment of two Non-Executive Directors. These appointments are expected to bring additional expertise and oversight as the company advances its growth strategy.
Outlook for FY24 and Beyond
Looking ahead to the remainder of FY24, Cirata is optimistic about its pipeline and sales prospects. The company is working to convert delayed deals from Q2 2024, with a focus on closing out the year strongly. Its GTM strategy is maturing, and management expects increased sales activity through direct channels and partnerships as they progress through Q4 2024.
Despite the challenges, the Board believes that the company’s lead generation and early-stage pipeline remain supportive of its medium-term ambitions. With three months remaining in the fiscal year, Cirata is maintaining its full-year bookings guidance of $13-$15 million, though achieving this target will require continued strong execution.
