Preliminary Final Report for Year Ended 30 June 2016/in ASX Announcements, News/by Prophecy International
Company Announcement 18 August 2016
FY16 Record Results/in ASX Announcements, News/by Prophecy International
Company Announcement 26th July, 2016
- Full year FY16 EBITDA: a record at $5.0 million, up 13%
- Full year revenue: a record at $14.7 million, up 47%
- Q4 new sales: up 62% from Q3, a very pleasing improvement
- SNARE Q4 new sales: best quarter for the year
- SNARE full year revenue: up 28% to $7.6 million, a record
- Improved sales result expected to flow into FY17
Prophecy’s EBITDA for FY16 is expected to be $5.0m once audited accounts are complete. This earnings result is a new record for the group, and shows growth of 13% compared to FY15 EBITDA. The Board is very pleased with this full year result.
FY16 revenue has come in at $14.7 million. This figure represents a new revenue record for the group, and is up a healthy 47% compared to FY15.
A portion of invoiced new sales is allocated to income in advance, with the rest taken up as current revenue in FY16. Income in advance is made up primarily of future maintenance commitments and consulting ordered but not yet performed. The percentage of new sales taken up as income in advance as higher than forecast, resulting in the recognised revenue from FY2016 new sales being lower than expected. As a result, income in advance has grown to $3.4m at the end of FY16, compared to $1.8m at the end of FY15. This income in advance figure represents guaranteed revenue for the future, with most to be taken to account during FY2017.
It is pleasing to be able to report that FY16 Q4 new sales results were very strong compared to the previous two quarters. Q4 new sales across the group were up by 62% from the Q3 total, and 44% from the Q2 total. Q1 remained as the best new sales quarter overall for the FY16 year.
In the SNARE division, Q4 provided the best quarterly sales result in the year, beating Q3 by 64%, Q2 by 35% and Q1 by 10%. The full year SNARE new sales figures grew by 13% compared to FY15. SNARE total recognised revenue for FY16 came in at a new record $7.6 million, compared to $5.9 million in FY15. This result provided excellent overall SNARE revenue growth of 28% for the full year. The SNARE team has been structured to target continued further growth through FY17.
eMite sales for Q4 finished 55% up on the Q3 result. eMite staff attended the Interactive Intelligence (ININ) user conference in Indianapolis in early June and were able to gain a tremendous interest in the eMite analytics solution for ININ users. The eMite solution was very well received by both ININ staff and customers and has generated a large volume of leads for sales action in FY17. A much improved sales result is expected for eMite in FY17 as a result of the foundation laid in FY16.
The improved sales result is expected to flow into FY17 Q1 new sales with a very healthy pipeline in place for both SNARE and eMite. New sales activity has accelerated as a result of the recent improved sales process. New sales resources have come on board to enhance the SNARE sales team and additional resource is currently being sought for the eMite team to capitalise on the improved results.
eMite Signs Partnership Agreement with Interactive Intelligence/in ASX Announcements, News/by Prophecy International
Company Announcement 17th May, 2016
As forecast in a previous announcement, Prophecy International Holdings Ltd (PRO) subsidiary eMite has completed an agreement with Interactive Intelligence Group Inc (ININ) to join its Global Alliance Partner program and to integrate with ININ’s CIC and PureCloud Solutions. Interactive Intelligence (NASDAQ:ININ), is a leader in contact centre software with over 6000 customers worldwide. Their software is designed for customer engagement, communication and collaboration to help business worldwide to improve service, increase productivity and reduce costs.
eMite has integrated its real time data collection framework and dashboard presentation layer with both ININ Solutions, and has already begun shipping the new product set to ININ customers. eMite’s participation in the Global Alliance Partner Program is expected to increase the value of both solutions, providing key management reporting and dashboarding to enhance the information flow for current and future ININ customers.
When critical Contact Centre metrics are made available in real-time, it significantly improves an organisation’s ability to respond immediately, avoiding the next day and end of month post mortem. eMite provides contact centre customers with a market leading business intelligence, analytics and full reporting solution. The eMite solution empowers all levels within the organisation, including agents, managers and executives. It is powerful enough for business analysts and yet simple enough for front-line users.
“eMite has joined ININ, a worldwide market leader of call centre software, as part of promoting the global expansion of our Business Value Dashboard offering,” said Stuart Geros, CEO, eMite. “eMite simplifies the complex and time consuming process of report management for IT operations and helps to reduce operating costs. Working in combination with proven ININ software that has been deployed to users throughout the world, I am confident in our ability to enhance the value of ININ products even further, by creating greater visualization of key contact centre data.”
As a new global Technology Alliance Partner, eMite has received access to ININ tools, so that eMite can further develop and deliver world class Contact Centre reporting to shared customers. Going forward, eMite aims to capitalize on its partnership with ININ by sharing its product roadmap, creating new levels of customer value, and reinforcing eMite’s commitment to world class Business Value Dashboard reporting.
Joint marketing activities are planned to take the eMite add-on solution to 6000 existing ININ customers worldwide and to include the eMite product in new sales activities. eMite will be attending the ININ worldwide customer conference in Indianapolis in early June to be able to demonstrate their unique solution’s capabilities and value add to customers, partners and ININ executives.
eMite has the additional capability of being able to correlate multiple data sources into a single dashboard, providing key management with specific KPI’s that are crucial to their business needs. The aim is for eMite to be able to provide real time management reporting over all data sources within an organisation and not just the contact centre data source. This will provide additional growth for the eMite product set beyond the new niche market made available by the integration with ININ software.
Based on its Management Plan for growth, the ININ business partnership is the first of several key relationships that the eMite team are currently working on. eMite has aims to develop strong relationships with leading global software vendors to provide key management dashboards over the top a wide range of solutions, to provide much greater value for customers utilising leading incumbent software.
This implementation of eMite dashboards over popular and core software sets has the ability to generate a much larger number of eMite licence sales compared to offering eMite as a stand alone solution
Revised Guidance for FY 2016/in ASX Announcements, News/by Prophecy International
Company Announcement 5th May, 2016
Prophecy International Holdings Limited (PRO) is today releasing revised guidance for FY16.
The Company is disappointed to report that due to deferred sales in the third quarter the trading performance for FY16 will be below original expectations.
FY16 revenues are now expected be in the range of $15.0 – $17.5m, with corresponding EBITDA expected to be between $5.0 – $7.0m. This is lower than the original guidance of $20.0m revenue and $8.9m EBITDA.
The final quarter is traditionally our strongest and we are pleased to report that SNARE product sales have enjoyed a healthy start to the quarter. However, the Company’s final result is dependent on the timing of a number of larger eMite deals currently being actively worked by the sales team, with the target to complete by the year-end.
These revised revenue and profit expectations still show considerable growth over the FY15 full year results, when revenue was just under $10.0m generating EBITDA of $4.1m.
Breakdown of revised forecast
eMite sales pipeline is still mainly made up of a smaller number of larger dollar value sales and delays are likely to push out some opportunities to the next quarter. It is estimated that sales worth in the order of $1.8m are likely to move into FY17.
eMite’s FY16 Q3 revenue was lower than expected due partly to a $400k credit in that quarter against a subscription that was not continued as a result of budget constraints.
eMite has moved more aggressively than originally planned to promote Subscription licenses, in preference to Perpetual deals. This has resulted in lower upfront revenue, but a higher long-term earnings stream. Subscription deals expected for the year equate to an extra $1.3m that would have been recognised as revenue and EBITDA if they were all charged upfront as Perpetual license deals.
Both Legacy and SNARE revenues were marginally below expectations in the third quarter.
|One off license cancellation||-0.3||-0.3|
|Delayed orders likely into FY17||-1.3||-0.8|
|Change in model to recurring||-0.7||-0.7|
|Legacy products below expectations||-0.4||-0.1|
|SNARE/eMite variance versus expectations||-1.2||0|
In reviewing the slower completion of larger sales opportunities across both SNARE and eMite during the third-quarter, management has implemented a more comprehensive sales forecasting, monitoring and reporting environment.
The FY15 accounts specify a potential additional $2.0m payout for the eMite business purchase as at 1 April 2016. The actual combination of the PRO share price and eMite profit recorded at that time has resulted in no additional payment being due in relation to this earn-out target. A final potential earn-out is still to be assessed as at 1 August 2016 with a potential of 857,142 shares to be issued depending on a combination of eMite profits for the 2016 year and the share price.
So far early FY16 Q4 sales have already bettered the Q3 start and the FY15 Q4 start, giving weight to a healthy sales position in our final quarter being achieved. Notwithstanding the slower than expected third quarter, year to date sales of SNARE are up 54% on last year’s equivalent position. New sales of SNARE via partners stand at 25% of all new sales and through focussed activities in the partner area we are working towards our target of 50% of all new sales coming via partners.
The pipeline for both SNARE and eMite looks strong moving into FY17.
The current focus for eMite is to expand the opportunities created by the RealTimeBI solution and the eMite Lite Analytics solution, building the proportion of smaller sales opportunities and smoothing the overall flow of sales to lessen the impact of larger sales .
Base revenue has increased to $7.5m going into FY17. Even after allowing for the $400k that was lost (as detailed above), this represents a 15% increase on FY16. We expect this will grow further as sales are completed in the final quarter.
eMite Lite Analytics
The sales activity around the first niche market created for eMite Lite Analytics has brought success with the first new deals now in place. In a very exciting expansion, eMite is now packaged with very specific management reporting over-the-top of a popular call centre management software system.
The addition of eMite’s analytics capability provides a much needed solution to customers’ requirement for better and more timely reporting of the operational efficiency of their call centres. The eMite solution is simple to implement, and provides key management reporting via dashboards for a crucial part of many business operations.
The call centre management software involved in the current trial has more than 5,000 installations worldwide, which would present a significant new vertical for the eMite Analytics solution. Once proven, this style of solution can be implemented over many popular business and technical systems to enhance management’s understanding of their key business indicators. These applications of eMite Lite Analytics have the potential to significantly expand the sales of eMite and generate a large number of smaller dollar value Subscription licence sales in multiple niche markets worldwide.
The Company has agreed commercial terms with a global partner, which it hopes to announce before year end. This will provide the platform to market the eMite Lite Analytics to a worldwide market and ramp up the number of eMite sites. In addition, two other partner opportunities are being progressed in the same manner to add to the FY17 pipeline.
The eMite Lite Analytics solution, together with specific management reporting, is also designed to sit over-the-top of the SNARE system, providing a new analytical and reporting option for SNARE customers. This SNARE Analytics solution is currently being trialled ahead of an upcoming official release. It is expected that this expansion into analytics using eMite will provide many additional sales opportunities for both SNARE and eMite products.
Prophecy Presentation on Half Year Results/in ASX Announcements, News/by Prophecy International
This presentation was released to the ASX on March 11, 2016
S&P Dow Jones Indices/in ASX Announcements, News/by Prophecy International
Prophecy is pleased to advise that it was added to the ASX All Ordinaries in March 2016. S&P Dow Jones Indices
Notification of Dividend – March 2016/in ASX Announcements, News/by Prophecy International
The attached notice of dividend was released to the ASX on 26 February 2016
Consolidated Financial Statements – Half Year to 31 Dec 2015/in ASX Announcements, News/by Prophecy International
The half year results were submitted to the ASX on February 24, 2016
Record Half Year Revenue/in ASX Announcements, News/by Prophecy International
The Prophecy accounts for the Half year ending 31/12/15 have been completed and once again show record results for the half.
These accounts are yet to be fully audited and the final audited half year report will be released later in February.
The completed management accounts show that revenue for the half grew to $8.0 million, a new record result. This represents a growth of 81% compared to the same period last year which also was a record.
New sales invoicing for the SNARE product set was up 120% on the same period last year and this has contributed to the record revenue number. eMite new licence sales for the period grew 45%.
Profit from ordinary activities before income tax and depreciation/amortisation and acquisition costs has come in at $3.1 million, another record result for the half. This is up 55% from the same period last year and is a most pleasing result.
Cash at the end of December 2015 was $5.15 million.
The board will declare a dividend of 2 cents per share payable in April 2016.
Our plan is to continue the aggressive sales growth of the SNARE business along with the eMite business and we expect to see a very good full year result both in revenue and profit from our continued combined sales push.
Subsidiaries: Prophecy International Pty Ltd, eMite Pty Ltd., MORE
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