Skyfii Ltd (ASX:SKF, OTC:SFIIF) expects 2022 financial year second-half revenues to exceed the record levels achieved in the first half, based on the growing deal pipeline, recent contract wins and the momentum seen from investment and growth activities.
The company's cost base is also set to normalise in the second half, which will deliver operating leverage into FY23 and beyond.
There will be continued focus on expansion in the rapidly growing and profitable North America and EMEA regions.
Its continued business development focus will be on key verticals including airports, stadiums, grocery and smart buildings.
“Return to delivering profitable growth"
Skyfii CEO and managing director Wayne Arthur said: “The acquisition of CrowdVision continues to drive new business and we were pleased to welcome two of the top 10 airports in the USA to our growing airport portfolio during the quarter.
“Our core business delivered a number of blue-chip customers including deals with McDonald's restaurants and property REIT Majid Al Futtaim, both in the UAE, and our Australian operations also maintained a steady growth trajectory.
“Our rolling 12-month deal pipeline, which now stands at over A$37 million in advanced stage deal value, continues to grow. In particular, our people counting and venue analytics data products, which are helping venues maintain safe and compliant operations and deliver improved levels of customer experience.
“In addition to the employees who transitioned with the CrowdVision acquisition, our investment for growth in 1H FY22 saw the company add an additional 12 headcount from April 2021.
“The investment for growth has helped bolster our sales, marketing and customer support functions, particularly in our international operations.
“And with the results delivered during the quarter, along with our current financial trajectory, is a reflection of that investment.
"Our four-year CAGR has been extremely strong and I am pleased to see us return to delivering profitable growth.”
Strong revenue growth
During the December quarter, total operating revenues came in at A$6.0 million, up 18% quarter-on-quarter and 50% on the previous corresponding period.
Recurring revenues stood at A$3.6 million, up 5% quarter-on-quarter and 30% from the previous year.
Quarterly cash receipts from customers were A$6.9 million, up 66% from the previous quarter and 105% on the corresponding quarter.
Positive net cash flow from operations of A$800,000 was delivered.
Pro forma annualised recurring revenue (ARR) exited the second quarter at A$15 million, up 5% quarter-on-quarter and up 30% on the previous corresponding period.
The first half of FY22 total revenues rose by 50% to A$11.1 million versus the first half in FY21.
In the second quarter, A$4 million plus in total contract value was converted with the rolling 12-month pipeline including over A$37 million of advanced stage deals.
Cash position
The company maintained a strong balance sheet with A$5.4 million of cash as at December 31, 2021, versus A$5.8 million at September 30, 2021.
This small reduction in net cash quarter on quarter was primarily due to the final settlement costs of $$314,000 for the Blix acquisition, plus other investing activities.
Further, Skyfii has access to a A$2 million loan facility, which remains fully undrawn.
Contract wins and renewals
In the quarter, key contracts delivered in the EMEA region with a combined total contract value of over A$1.6 million, including:
➢ Majid Al Futtaim (MAF), owner and operator of shopping malls, retail outlets and leisure centres in the Middle East, signed a three-year deal across an initial 19 shopping malls;.
➢ Quick Service Restaurant operator, McDonald’s signed a three-year deal for the provision IO Connect Guest WiFi and IO Insights data analytics platform in 183 restaurants across the UAE; and
➢ International shopping centre group McArthurGlen Designer Outlets signed a three-year contract extension across 24 designer outlet malls in the UK and Europe.
CrowdVision acquisition
The acquisition of CrowdVision continues to drive new revenue growth and expand Skyfii’s presence in the global airport vertical.
Key contracts signed in the quarter included:
➢ Charlotte Douglas International Airport, the sixth busiest airport in the US by passenger boardings signed a 3-year deal for a queue analytics system to improve passenger experience at their Transportation Security Administration (TSA) checkpoints;
➢ At Las Vegas McCarran International Airport, the seventh busiest airport in the US by passenger boardings, the Transportation Security Administration (TSA) partnered with CrowdVision on an initial 3-year term; and
➢ Adelaide Airport signed a five-year agreement to deploy CrowdVision’s passenger queue monitoring and crowd analytics solution.