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.