Skyfii Ltd (ASX:SKF, OTC:SFIIF) delivered record revenue during the quarter ending June 30, 2022, clocking a 40% increase in total operating revenue compared to the corresponding quarter in 2021 and providing strong momentum for the new financial year.
During the quarter, the omnidata intelligence company produced several contract wins across a range of geographies and verticals, delivering a total contract value (TCV) in excess of A$5.7 million.
Moving forward, Skyfii has kicked off the new financial year in a strong position with a growing pipeline of new business opportunities including more than A$33 million in advanced stage deals.
“Strong revenue outlook”
Skyfii CEO and managing director Wayne Arthur said: “Skyfii has executed a deliberate strategy to drive growth and scale via a strategic acquisition and the allocation of capital in FY22 specifically targeted to build our sales, business development and service delivery capability.
“These growth initiatives have helped us to expand our customer footprint, driven our ARR to over A$16 million and resulted in a strong revenue outlook for FY23.
“Public venues such as malls, stadiums, train stations and airports across the globe are increasingly relying on crowd analytics and occupancy management solutions to deliver real-time data to drive their decision-making processes and improve the customer experience through their venues.
“The long-term and sustainable value provided by our technology solutions is reflected in our customer retention rate of >96%. Our sales pipeline currently includes some of the world's most iconic airports, commercial properties, QSR brands, municipalities and stadiums throughout the world.”
Growth of recurring revenue
Cash position
Skyfii ended the quarter in a strong financial position with A$5.1 million of cash in hand
Further, the company secured a A$1.8 million project financing facility with Export Finance Australia.
This facility will be largely utilised for its international project pipeline delivery and has been secured for an initial one-year term and can be renewed each anniversary for a further one-year term.
The undrawn portion of the Export Finance Australia facility, coupled with A$5.1 million in cash at the bank will provide the company with sufficient capital flexibility to execute on our stated growth initiatives, including a sufficient runway to achieve sustainable positive cash flow in the second half of FY2023.
Key performance metrics.
Forward plan
Skyfii has started the new financial year in a strong position with a growing pipeline of new business opportunities.
The company is expecting operating cash flow to improve significantly in the first half of FY2023 and is targeting a sustainable cash flow breakeven position during the second half of FY2023.
Specific areas of focus for the Skyfii team in FY2023 will include:
- Focus on revenue conversion in the rapidly growing North America and EMEA regions.
- Continued business development focus on key verticals including airports, stadiums, transit hubs and quick-service restaurants.
- Resolution of supply chain issues and delivery challenges that have carried over from 2H FY22 and recognition of delayed project revenues.
- Costs rationalisation and efficiency initiatives, including offshoring of talent, to deliver material cost savings and maintain margins.
- Operating cash flow is expected to improve significantly during 1H FY23 and the company reconfirms expectations to achieve a sustainable cash flow breakeven position during 2H FY23.
- The company expects to deliver another year of strong revenue growth and expects ARR to grow to greater than A$20 million during FY23.
Arthur adds: “We expect another year of strong sales conversion, ARR growth and importantly through our cost rationalisation initiatives expect to show genuine operating leverage during FY23.
“Our three-year outlook looks very encouraging and we are excited to be on track to deliver strong shareholder value during this period.”