8common Limited Achieves Record SaaS Revenue and Positive Cashflow in Q4 FY24
8COMMON LIMITED (8CO) Share Update July 2024 Wednesday 24th
8common Reports Record SaaS Revenue and Positive Cashflow
Fintech company 8common Limited (ASX: 8CO) has released its quarterly cashflow and business update for the quarter ended 30 June 2024, showcasing record SaaS revenue and operational profitability.
Instant Summary:
- Record SaaS revenue of $1.2 million, up 28% year-over-year.
- Total revenue of $2.3 million for Q4 FY24.
- Record cash receipts from operations of $3.1 million.
- Net operating cash flow of $1k for the period.
- ARPU of $29.90, up 13% from the previous quarter.
- Federal Government ARPU of $44.15.
- Cash balance of $0.1 million, supported by a $1.5 million financing facility.
Financial Performance
8common Limited reported record SaaS revenue of $1.2 million for Q4 FY24, marking a 28% increase compared to the previous corresponding period. Total revenue for the quarter stood at $2.3 million, driven by strong customer demand and new implementations.
The company also achieved record cash receipts from operations amounting to $3.1 million, a 3% increase year-over-year. The annualized recurring transaction and SaaS revenue (ARR) reached approximately $5.0 million as of 30 June 2024.
Operational Highlights
8common continues to experience strong customer demand, leading to elevated onboarding activity. Key contract wins and extensions during the quarter included the Net Zero Emissions Agency, Department of the Senate, Department of Finance, and the Department of Home Affairs.
The company reported a slight decrease in user numbers to 165k, attributed to a large customer deactivating dormant users. Despite this, the ARPU for Q4 FY24 increased to $29.90, up 13% from the prior quarter, with the Federal Government ARPU reaching $44.15.
Cash Flow and Funding
Net operating cash flow for the period was $1k, primarily driven by improved cash receipts and cost control measures. The company maintained a cash balance of $0.1 million as of 30 June 2024, supported by a $1.5 million financing facility from the Executive Chairman, ensuring adequate funding.
8common's CEO, Andrew Bond, expressed optimism about the company's financial performance, stating, 'We are pleased with the strong Q4 finish to the year, which has set us up nicely for FY25. Our focus on customer success and new implementations drove record SaaS revenue and cash receipts, delivering operational profitability for the quarter.'
The record SaaS revenue and positive cash flow indicate strong financial health and operational efficiency for 8common. This positive performance is likely to boost investor confidence and could lead to an appreciation in the company's stock price. The continued demand for 8common's solutions, particularly within the Federal Government, further strengthens its market position.
Investor Reaction:
Investors and analysts have reacted positively to the announcement, highlighting the company's ability to achieve operational profitability and maintain strong cash flow. The increase in ARPU and new contract wins are seen as significant drivers for future growth.
Conclusion:
Investors should keep an eye on 8common's performance in FY25, as the company aims to replicate its improved financial performance. The strong pipeline of opportunities and strategic initiatives are expected to contribute to continued growth and profitability.