Key Highlights:
-- Strong first half cash receipts: Total cash receipts of $6m in 1H FY23, up 24% on 1H FY22. Knosys has high variability in quarterly cash inflows due to strong seasonality in annual renewals, with the December quarter seasonally the weakest cash inflow quarter.
-- Steady Annual Recurring Revenue (ARR): ARR of $9.6m as at January 2023, up 8% year-on-year and steady quarter-on-quarter.
-- Disciplined cost control: Q2 FY23 operating expenses down 7% on Q1 FY23, reflecting lower staff costs and operating efficiencies.
-- Minimal net cash outflow: Net operating cash outflow of $182K for 1H FY23 and cash balance of $2.8m at December 2022. This position is expected to be sustained in 2H FY23.
-- Key contract extensions: Singtel signed a 2-year contract extension for enterprise Knowledge Management solution, KnowledgeIQ, with a contract value of $750K, and Optus signed an additional one-year extension to January 2025, with a contract value expected to exceed $1m.
-- Outlook for FY23: A strong pipeline of enterprise opportunities is expected to drive growth in recurring revenue, increase operating leverage and improve cash flow over the next 6-12 months.
Knosys Limited (ASX:KNO) (“Knosys” or the “Company”), is pleased to provide its December 2022 quarterly activity report and update on the Company’s operations and business.
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