ASX Preliminary final report for the year ended 30 June 2021 Lodged with the ASX

ASX preliminary final report for the year ended 30 June 2021 Lodged with the ASX under listing Rule 4.3A.

Read the report.

Prophecy Announces Strong Sales Results in Q4

Prophecy Announces Strong Sales Results in Q4

Prophecy International and Snare Solutions Included in 2021 Australian Defence Sales Catalogue

The fifth edition of the Australian Defence Sales Catalogue showcases Australia’s leading-edge products, technologies and services available for export 

Adelaide, Australia | May 11, 2021 – Prophecy International (ASX:PRO), has today announced the acceptance of the company’s flagship cybersecurity solution Snare into the 2021 Australian Defence Sales Catalogue. Produced by Australian Military Sales (AMS), the Australian Defence Sales Catalogue showcases selected products and services from Australian defence industry and Australian Defence Force (ADF) surplus equipment available for sale under government-to-government arrangements. 

The role of AMS is to support Australian sovereign capability and military sales programs through the planning and execution of international government-to-government transfer of: 

  • Australian Defence Organisation materiel 
  • Australian-origin sensitive technology 
  • Products and services of Australian defence industry

Selection for the catalogue by AMS means that Snare’s log management solutions – originally designed for Australian defence and military purposes by defense personnel – passed strict requirements by the Australian Defence Organisation and will join 214 Australian defence industry companies with world-leading products and services available for sale under government-to-government arrangements. 

Snare’s centralized log management, threat detection, and analytics solution is used across the defence and military market in Australia, USA, UK, and in the Middle East.  

“Prophecy is proud that the sovereign cyber capability of Snare has been recognized by the Australian Defence Export Office and we are proud to be exporting Australian innovation to the world”, CEO Brad Thomas said. 

The fifth edition of The Catalogue was released by the Minister for Defence Industry, the Hon Melissa Price on 7 May 2021. 

Original Media Release 

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About Prophecy International Holdings Limited 

Prophecy International Holdings Limited is a listed Australian company (ASX:PRO) that has been operating globally since the 1980s. More recently the focus at Prophecy has been on growing the eMite and Snare lines of business. eMite service intelligence platform combines analytics, correlation, capacity, and performance, availability, and SLA management into a single, out of the box solution to provide customers with real time insight. The Snare product suite is a highly scalable platform of security products designed to find, filter and forward event log data. Snare log sources include Windows, flat files, databases, Linux, Mac, and Solaris with coverage for desktops and servers. 

Prophecy operates globally from Adelaide and Sydney in Australia, London in the United Kingdom and in Denver, USA. 

Visit httpshttps://www.prophecyinternational.com/://www.prophecyinternational.com 

eMite Continues Growth Trajectory – On Track to Profitability

eMite Continues Growth Trajectory – On Track for Profitability

Prophecy International CEO Brad Thomas Accepted into Forbes Technology Council

Forbes Technology Council Is an Invitation-Only Community for World-Class CIOs, CTOs, and Technology Executives

Denver, CO – Brad Thomas, CEO of the Australian-based software development company Prophecy International (ASX:PRO), has been accepted into Forbes Technology Council, an invitation-only community for world-class CIOs, CTOs, and technology executives.

Thomas was vetted and selected by a review committee based on the depth and diversity of his experience. Criteria for acceptance include a track record of successfully impacting business growth metrics, as well as personal and professional achievements and honors.

“We are honored to welcome Brad Thomas into the community,” said Scott Gerber, founder of Forbes Councils, the collective that includes Forbes Technology Council. “Our mission with Forbes Councils is to bring together proven leaders from every industry, creating a curated, social capital-driven network that helps every member grow professionally and make an even greater impact on the business world.”

As an accepted member of the Council, Brad has access to a variety of exclusive opportunities designed to help him reach peak professional influence. He will connect and collaborate with other respected local leaders in a private forum. Brad will also be invited to work with a professional editorial team to share his expert insights in original business articles on Forbes.com, and to contribute to published Q&A panels alongside other experts.

Finally, Brad Thomas will benefit from exclusive access to vetted business service partners, membership-branded marketing collateral, and the high-touch support of the Forbes Councils member concierge team.

“This is an exciting opportunity to have an impact on a world stage by collaborating and sharing knowledge with other leaders. I look forward to working with other members to advance both cyber security and customer experience. As a cyber vendor with over 4000 customers it’s great to be able to share our knowledge and help other around the globe and to further advance Prophecy as a leader in these areas.”, Thomas said.

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ABOUT FORBES COUNCILS

Forbes Councils is a collective of invitation-only communities created in partnership with Forbes and the expert community builders who founded Young Entrepreneur Council (YEC). In Forbes Councils, exceptional business owners and leaders come together with the people and resources that can help them thrive.

For more information about Forbes Technology Council, visit forbestechcouncil.com. To learn more about Forbes Councils, visit forbescouncils.com.

ABOUT PROPHECY INTERNATIONAL

Prophecy International Holdings Limited is a listed Australian company (ASX:PRO) that has been operating globally since the 1980s. More recently the focus at Prophecy has been on growing the eMite and Snare lines of business. eMite service intelligence platform combines analytics, correlation, capacity, and performance, availability, and SLA management into a single, out of the box solution to provide customers with real time insight. The Snare product suite is a highly scalable platform of security products designed to find, filter and forward event log data. Snare log sources include Windows, flat files, databases, Linux, Mac, and Solaris with coverage for desktops and servers.

Prophecy operates globally from Adelaide and Sydney in Australia, London in the United Kingdom and in Denver, USA. Visit https://www.prophecyinternational.com

H1 Market Update & Results

Prophecy International H1 Market Update & Results

Prophecy International 2020 Annual General Meeting

Prophecy International (ASX:PRO) will hold the company’s annual general meeting virtually on the 4th of December at 11:00 am (Adelaide time).

The annual presentation is highlighted by +13.5% revenue growth, new product launches for the company’s two brands eMite and Snare, as well as increased sales resources in the United States and United Kingdom.

Download the November 2020 Investor Presentation

Prophecy announces increases in new sales for both Snare and eMite

Sales contracts higher despite COVID-19 slowdown

Snare and eMite sales increase over last FY

  • Full year revenue expected to be approximately $14.0M
  • Snare new business sales increase 12.6%
  • eMite new business sales increase by 13%
  • Annualised value of eMite active contracts now $4.37M in Annual Recurring Revenue (ARR)
  • Total new business sales of $9.85M up 12.7% over last year

Prophecy International announced today that despite the challenging global economy in H2 as a result of the COVID-19 Pandemic sales results for the group have been strong and have increased year over year.

Full year total revenues are expected to be approximately $14.0M up from $12.1M last year or growth of approximately 15%.

Snare sales achieved 624 new sales contracts in FY20 with an average value of $10,947. Previous financial year average was $8,648 – a 26.5% increase in average sale size. Total new business sales (excluding renewals) increased from $6.061M to $6.830M.

Sales transaction size was improved due to several MSSP partners selling Snare into larger accounts and gaining a great footprint in those accounts as well as the direct sales team selling the entire product suite more effectively in FY20.

The majority of Snare sales were perpetual license sales that are recognised as revenue at the time of the sale although we have seen an increase in subscription licenses as these are being introduced into the Snare product suite.

The Americas was again the predominant market for Snare sales with 77.0% of new business coming from the US. EMEA contributed 13.3% with APAC contributing the remaining 9.7%.

Our best Snare customers continue to come from large enterprise and government segment including Metlife, Chicago Mercantile Exchange, QBE, Principal Financial, Raytheon and the Metropolitan Police in the UK.

eMite sales continue to be strong and we have experienced good growth in sales into the Amazon Connect customer base.

A total of 79 new subscription customers were added in FY20 with 59 of these coming from Genesys and 20 coming from Amazon Connect. The Genesys average deal size increased to $26,590 up from $18,870 in FY19.

Genesys customers accounted for sales contracts totaling $1.56M in year 1 and based on expected usage the Amazon Connect sales are expected to generate annual revenues of $1.46M when fully deployed.

Combined these sales total $3.03M up from $2.67M last financial year. Although it should be noted that Amazon Connect sales generally do not have committed volumes and are purely usage based.

55.2% of eMite sales came from the Americas, 24.80% from APAC and 20% from EMEA.

Significant sales closed through Genesys included 1800 Flowers, Dyson/AT&T, Edelman Financial and Philip Morris. Amazon Connect customers that bought eMite in the last year included Goldman Sachs, NAB, Telstra, LA Sanitation, Johnson & Johnson and Fidelity Investments.

eMite sales are almost exclusively subscription licenses and revenue is recognized as the service is provided on a monthly basis. This means that some of the sales contracts from last year have not had a full impact on the revenue at a P&L level this year.

Annualised Recurring Revenue (ARR) of current accounts for eMite totals $4.37M (including Amazon Connect accounts based on estimated usage of $1.46M) going into the new year.

Prophecy International maintains strong financial position during Corona Virus disruption

Corona Virus Update

  • Strong Cash Balance
  • No Debt
  • AUD/USD exchange rate has positive effect
  • Sales pipeline continues to grow across both Snare and eMite

Prophecy announces response to Corona Virus disruption.

As we have stated in previous releases Prophecy maintains a strong cash balance and no debt. At the end of February cash on hand was $4.6M and receivables were $2.6M.

More than 80% of the company’s sales are done offshore in either US Dollars or in Euro or British Pounds. The fall of the Australian dollar against these currencies provides a significant buffer against any potential slow down in sales revenues. We continue to transition to recurring revenue and at the end of the first half 45% of revenues were recurring from either subscription licenses or from maintenance renewals from existing customers.

All R&D is done in Australia in either Sydney or Adelaide and we are a pureplay software company with no reliance on global supply chains or overseas manufacturing. Our product is distributed digitally, and we have no impact from disruptions to shipping or air travel.

In these times of uncertainty and as many companies move their workforce to remote working the mandate to provide IT Security has increased. There is also increased threat activity as cyber criminals try to take advantage of the disruption to the usual mode of business. The mandate for security and compliance that drives sales of Snare software continues. Although we have seen some uncertainty about budgets and do expect sales cycles to be longer and for purchasing decisions to be delayed.

We continue to see companies like Gemalto, Global Payments, Lifespan, Webjet and Premera Blue Cross all buying Snare software in the last 6 weeks either directly from Prophecy in the US or EMEA or through one of our partners.

For eMite and our focus on the contact centre we see a potential increase in the activity of customers either migrating to cloud based contact centers or standing up new contact centers to facilitate “work from home” contact centre agents to manage this new work paradigm and to enable increased flexibility and any increase in call volumes.

Our pipeline for eMite remains strong and we continue to close business with significant global companies like Fitch Ratings Agency, AMP New Zealand and Phillip Morris International in the last month and a half.

CEO Brad Thomas said “As a company we are as prepared for this new world of work as any organization and better prepared than most. Our staff work in a high tech world across multiple geographies and time zones and are used to working remotely. We have moved the entire business to working from home with no interruption to daily operations. Most of our selling is done by phone or video conference already and our teams are used to collaborating online using the tools and systems that we have in place. We have no cases of COVID-19 amongst our staff at present and have taken any recommended precautions to minimize impact to our staff.”

At this point we are putting existing expansion plans on hold but no other action is planned at this stage. We expect an impact from the disruption caused by the Corona Virus but the extent of that impact will be dependent on many factors outside our control and is difficult to assess at this time. We will continue to monitor the situation and act accordingly.

In this time of disruption, we encourage Australian businesses and governments to look to Australian sovereign capability and to buy Australian.

Prophecy International delivers improved EBITDA of $746K in H1 FY20

20% revenue growth deliver strong bottom line improvement

H1 FY20 Highlights

  • EBITDA of $746K for H1
  • Cash balance improves further in January
  • Average deal size increases for both Snare & eMite
  • 19.5% revenue growth delivers strong profit improvement

Prophecy is pleased to announce additional preliminary unaudited results for H1 FY20 that show a significant EBITDA improvement over FY19.

This result is due to solid top line revenue growth and good fiscal management keeping expenses growth modest. It is also important to note that this year we will fully expense all R&D costs after commencing this last FY.

Brad Thomas, Prophecy CEO said, “We have managed to keep innovating and releasing new product and to also invest in new resources – most notably in our off shore facility in Manilla and with new sales and marketing resources in both the US and in Europe. We have kept a tight rein on new headcount and have been diligent in keeping costs under control. As a result we have managed to deliver EBITDA of $746K in H1 FY20 vs a full year result of $87K last year.”

The company continues to be debt free and had cash in excess of $4M on hand at the end of the half. At the end of January our cash position had improved to $4.7M.

January has also continued to be strong with total new sales across the group exceeding $1M for what has traditionally been a slower sales month for the group.

eMite in particular has been strong in January with sales of Amazon Connect solutions to NAB and Telstra. The average 1CV (1st year contract value) sale has further increased to $42K for eMite up from $19K last financial year. This is a direct result of eMite targeting large enterprise customers with Amazon Connect and with Genesys attracting large enterprise customers to Genesys Cloud.  The average deal size has more than doubled in H1.

The average Snare sale value has also continued to improve to $13K up from $8.8K for the full year last year. This represents a 42% increase in the average sale in H1 FY20.

Fully audited results should be available to the market in late February.