Half Year 2024 Urbanise com Ltd Earnings Call Transcript
Key Points
- Urbanise.com Ltd (ASX:UBN) reported a 6.3% increase in Annual Recurring Revenue (ARR) compared to the previous corresponding period (pcp), totaling AUD 11.99 million.
- The company achieved a 99% customer retention rate for its strata and facilities management (FM) platforms.
- Urbanise.com Ltd (ASX:UBN) identified AUD 2.4 million in cash flow improvements, with 95% of this target already achieved by December 31, 2023.
- The company reported an 11.6% increase in FM license fees, driven by new contracts and growth from existing customers.
- Operating expenses showed an 8% improvement on pcp, contributing to a 29.1% reduction in EBITDA loss.
- Total revenue of AUD 6.27 million was marginally lower compared to pcp due to a 3.4% decrease in professional fees.
- Strata revenue was 5.5% lower, largely due to a temporary reduction in license fees from an APAC customer and a 53% decline in professional fees.
- The company is still facing challenges with large outstanding debts in the Middle East, affecting overall cash flow.
- Urbanise.com Ltd (ASX:UBN) experienced a temporary reduction in license fees from a large APAC customer, impacting overall revenue.
- Despite improvements, the company is still not cash flow positive and aims to achieve cash flow breakeven by FY 2025.
Good morning, everyone, and thank you for joining us for the presentation of Urbanise's H1 FY 2024 results. With me today is Michelle Garlick, our interim CFO, who joined Urbanise a couple of weeks ago. I'd like to thank our outgoing CFO, David Goldbach, for his contribution to the company, and I wish him all the best for the future. I look forward to working with Michelle and thank them both for [delivering] a smooth handover. As we announced 2 weeks ago, the Board and I will be seeking to appoint a permanent CFO in due course.
Urbanise is a leading provider of cloud-based platform to strata and facilities managers in Australia, New Zealand and parts of the Middle East and Asia. As of January 2024, the business had AUD 12.8 million in contracted annual recurring revenue or CARR, and 92% of total revenue came from recurring license fees. Both our strata and FM platforms are extremely sticky, with a combined customer retention rate of over 99%. We have an extensive global footprint with a presence in 17 countries,
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