Release Date: February 27, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revenue for the first half of FY24 was $7.6 million, up 33% from the prior corresponding period.
- EBITDA increased to $641,000, showing significant improvement from the previous period.
- Annualized Monthly Recurring Revenue (AMRR) grew by 35% to $15.1 million.
- Strong cash position with $8.5 million in cash assets and minimal cash burn.
- Significant deals signed with Stake and Playbook Engineering, expected to drive future growth.
Negative Points
- Small EBIT loss of $145,000, indicating the company is still navigating through the breakeven period.
- Revenue growth partly attributed to a one-off transaction in the prior period, which may not be sustainable.
- Investments in UK and French markets have led to material expenditures ahead of revenue generation.
- Operating cash flow improvements are still stabilizing, indicating ongoing financial adjustments.
- Pipeline of deals can be lumpy and impacted by seasonality, leading to potential revenue fluctuations.
Q & A Highlights
Q: With respect to M&A, is it buying more technology type assets that add to the tech stack or buying existing operators that are generating cash flow?
A: It might be either. We are looking at technology plays, data plays, and positioning plays that can help us grow more rapidly in established markets or leverage into new and emerging markets. (Stephen Crispe, CEO)
Q: Is the pipeline of deals with larger or smaller type enterprise customers?
A: It's a mixture of both. There are significant deals, medium-sized enterprise customers, and smaller ones, providing a healthy range. (Tim Olive, CFO)
Q: How much should we look for Playbook and Stake to start contributing in the second half, or is it more of an FY25 story?
A: They will contribute to a degree this year, with a more positive full-year run rate next year. Playbook will contribute for a quarter, and Stake is expected to launch in March, with material impact on FY24 and a very positive impact on FY25. (Tim Olive, CFO)
Q: How competitive was the process for the Stake deal in terms of other options or competitors?
A: It was very competitive, with organizations from around the globe involved. Our compelling approach and quality products stood head and shoulders above the others. (Stephen Crispe, CEO)
Q: Can you elaborate on the strategic outlook for FY24?
A: We are focusing on executing signed deals, accelerating AMRR growth, exploring UK and European deals, and emerging markets like Asia. We are also looking at strategic acquisitions that fit within our three business pillars. (Stephen Crispe, CEO)
Q: What are the key financial metrics for the first half of FY24?
A: Revenue was $7.6 million, up 33% year-on-year. EBITDA was $641,000, up over $500,000 from the previous period. AMRR was $15.1 million, a 35% increase. Cash assets were $8.5 million, with a minimal burn of $161,000. (Tim Olive, CFO)
Q: What are the business highlights from the last half?
A: Key deals include Stake, Racing and Wagering Western Australia, and Playbook Engineering. We secured rights in the UK and France and signed a range of smaller deals in Australia and the UK. (Stephen Crispe, CEO)
Q: How has the revenue trend been over the last three years?
A: Revenue has nearly doubled from $3.9 million to $7.6 million. EBITDA has improved by $500,000 year-on-year. Annualized revenue per enterprise customer is up 22%, and AMRR has grown by 35% to $15.1 million. (Tim Olive, CFO)
Q: What are the growth opportunities in different geographic markets?
A: Australia is growing strongly, up 82% over two years. The UK and France have significant growth potential as we secure rights and establish our brand. There are also opportunities in Asia, broader Europe, and the Americas. (Tim Olive, CFO)
Q: What is the impact of recent deals on the company's financials?
A: Recent deals like Stake and Playbook are not yet included in the financials but are expected to contribute significantly in the second half of FY24 and beyond. (Tim Olive, CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
