Prophecy has two main sources of revenue to record and report annually.
A portion of revenues each year are referred to as “base recurring revenue” which consist of invoicing to existing customers for ongoing services previously contracted and extending over multiple years in most cases. In addition, Prophecy generates additional revenues each year from “new sales invoiced”, mainly to new customers and in some instances to provide extended services to existing customers during the year. The sum of the two revenue types above makes up the total revenue reported by Prophecy for the year.
Today’s announcement reported on the Q1 “new sales invoiced” number which came in at $3.4m. By comparison, the FY15 full year “new sales invoiced” number was $5.54m, so this represents a significant increase over last year. The increase is the result of increased SNARE sales compared to Q1 last year plus the addition of eMite new sales since the acquisition.
In addition to FY16 Q1 new sales, Prophecy has invoiced base recurring business as expected for FY16 so far. Only the new sales number is available at this time for reporting as per the announcement, but the full revenue for Q1 including the base recurring revenue will be available to report by mid October.
With the great sales start to the year, a record Q1 full revenue number is expected to be reported.