Skyfii Ltd (ASX:SKF, OTC:SFIIF) has delivered a busy September quarter powered by new contract wins totalling A$3.1 million in total contract value, as it advances its pipeline of more than $31 million in advanced-stage deals.
Notable new contract wins include JFK Airport (US), Aberdeen Airport (UK), Nashville International Airport (US) and Istanbul International Airport (EMEA).
During the quarter, the company generated total operating revenues of A$5.4 million, up 7% compared to the previous corresponding period (pcp) in FY2022.
Also, Skyfii saw recurring revenues of A$3.8 million during the quarter, up 11% on pcp.
Looking ahead, Skyfii is well funded with about A$4.3 million, providing capital flexibility to execute its growth initiatives.
“Positive momentum”
Commenting on the September quarter, Skyfii CEO and managing director Wayne Arthur said: “Skyfii has started FY23 with positive momentum via a number of meaningful new contract wins totalling A$3.1 million in total contract value.
“We continue to see increasing levels of requests for proposals and our deal pipeline remains at over A$30 million, despite converting over $15.6 million in TCV over the past 12 months.
“Importantly we continue to evolve our technology to meet the growing requirements of our customers.
“Our industry-leading LiDAR solutions which provide highly accurate analytics are delivering a continued strong level of interest in the airport, train station and QSR verticals and we expect to announce several significant new contract wins in the verticals during Q2.
“Whilst our cashflow was behind forecasts for the quarter, the new contract wins, increasing requests for proposals and our strong project pipeline ensure we remain confident in our guidance of delivering sustainable positive cash flow in 2H FY23.”
New contract wins
Skyfii delivered a number of contract wins in the quarter across a range of geographies and verticals, delivering a new business Total Contract Value (TCV) of more than A$3.1 million.
Highlights include:
- Promising international growth trajectory with 75% of new contract wins secured outside of APAC.
- Another significant contribution this quarter from the Travel Hub vertical as Skyfii continues to cement itself as the preeminent airport analytics solution.
- 79% of deals closed won were created in the last six months, signalling an accelerated sales cycle.
New contract wins
Forward plan
Skyfii kicked off the new financial year in a strong position with a growing pipeline of new business opportunities.
Operating cash flow is expected to improve significantly in the December quarter and the company reconfirms expectations to achieve a sustainable cash flow breakeven position during the second half of FY2023.
Specific areas of focus for the Skyfii team throughout the remainder of FY23 include:
- Focus on revenue conversion in the rapidly growing North America and EMEA regions.
- Continued business development focusing on key verticals, specifically airports, stadiums, train stations and quick-service restaurants.
- 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 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 >A$20 million during FY23.