archTIS (ASX:AR9) recorded a successful March quarter with its overall revenue, recurring revenue and gross profit all increasing significantly.
The company, which provides innovative software solutions for the secure collaboration of sensitive information, saw revenue increase by 84% on the previous quarter.
Gross profit was up 57% quarter-on-quarter, while recurring revenue also rose 57%.
Record-breaking quarter
archTIS CEO and managing director Daniel Lai described it as the best quarter in the company’s history in terms of financials.
“We delivered a strong record-breaking quarter with revenue, recurring licensing and gross profitability, all eclipsing prior quarter results,” he said.
“We continue to have a clear line of sight toward future aggressive growth trends in revenue while making key strategic investments in sales distribution, market awareness and product innovation.”
Financial highlights
archTIS recorded revenue of $1.25 million for the quarter, a gross profit of $802,000 and logged recurring licence revenue of $421,000, with $12 million available in cash for investment.
The quarterly revenue intake demonstrated how far archTIS has come, as it represents 776% growth in revenue year-on-year.
Global COO and US president Kurt Mueffelmann said: “The March quarter was very foundational for archTIS as we continued to tactically execute and deliver across all areas of the business.
“Key customer wins, expanded sales regions, partnerships and alliances combined with new and exciting product innovations has set the stage for a strong Q IV while positioning us for an even stronger FY22.”
Shares are more than 7% higher intra-day at A$0.29.
Key achievements
archTIS expanded its customer base in the quarter with multiple contract wins around the world for its flagship Kojensi and NC Protect product offerings.
It recently launched into the Europe, Middle East and Africa (EMEA) market, with multiple customers taking up Kojensi, a multi-government certified platform for the secure access, sharing and collaboration of sensitive and classified information; and NC Protect for enhanced information protection for file access and sharing, messaging and emailing of sensitive and classified content across Microsoft 365 apps, Dropbox, Nutanix Files and Windows file shares.
The customer wins validate archTIS’ strategy to drive future sales growth across a diversified, global customer base serving government, defence industry, corporations, and SMEs.
Next steps
archTIS sees great potential for its Kojensi and NC Protect products around the globe, as strong macro‐economic tailwinds and continued investment in cybersecurity seek to combat insider threats such as compromised credentials, corporate espionage and human error.
The June quarter will be focused on scalable growth, particularly sales and marketing, as archTIS seeks to expand global sales distribution and increase market awareness and product innovation.
archTIS will seek further strategic acquisitions and expects to report further revenue and profit margin increases.
- Daniel Paproth