PRO - Prophecy International Holdings

PRO with a solid announcement this afternoon, will be worth about 10% extra revenue this year alone.

quarterly out ... making new highs beforehand

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Highlights:
• Revenue (unaudited and preliminary) up 18.3% YoY to $23.2M
• Contracted ARR +26.1% year-on-year (YoY) to $28.4M (excluding Legacy)
• FY24 invoicing +15.2% YoY to $26.1M
• Neutral to positive cash flow expected in FY24
• Strong progress and positive outlook for strategic partnership with Devo Technology, adding approximately $1.6M of new contracted ARR to the end of FY24. All new Devo customers are now being provided with Snare, and successful migration of all of Devo’s existing customers to Snare would result in a potential increase in contracted ARR of $5M
• Cash of $11.8M at 30 June 2024 (up from $10.9M at 31 December, cash flow neutral during FY24 and positive in H2 FY24) with zero debt

Disappointing result for PRO, largely due to costs getting out of control,



Management commentary talks to the hosting costs,



But delving into the notes we find this,


So marketing up $400k, Royalties up $240k, FX up $800k, Hosting up nearly $2m for a total increase of about $3.7m.

(Also Consulting up $250k which i missed.)

Revenue only went up by $3m, so reverse scaling!

Will sleep on it, but might be time to dump this one.

galumay said:

Disappointing result for PRO, largely due to costs getting out of control,

Management commentary talks to the hosting costs ..But delving into the notes we find ..

Click to expand...

nice work.

down 15 per cent

Prophecy International advises that during the course of internal reviews into customer contracts and contract management undertaken as part of the process to deploy a new billing, contract management and reporting system at Prophecy to cover all business units, and to enable improved contracted annual recurring revenue reporting, some data discrepancies in the unaudited and non-IFRS contracted ARR values have been discovered.

It’s important to note that this does not impact reported revenue, sales contract values, cash flow, cash balances or income in advance. All these values are audited as part of the company’s financial reporting obligations and are not impacted by these discrepancies.

These discrepancies are restricted to the emite business and have occurred over time. The reported contracted ARR numbers for Snare subscriptions and maintenance are unchanged. There was also no impact on the now discontinued legacy contracted ARR values.

Some discrepancies are as a result of customer contracts not being flagged as cancelled in our systems at the time that the contract ended, some due to the contracts not attaining the initial contracted values and continuing to be active customers but at a lower value, and some that have had incorrect product codes that included one off fees being categorised as recurring and being included incorrectly in the contracted ARR values.

The Company is in the process of implementing a new billing and contract management softwareto ensure improved data integrity across all operating companies and for all business units. This project is being prioritised by Prophecy’s Board and management and it is intended to be operational by Q3 FY25.

Doh, I didn't get out after the EOFY results, a serious error. I knew from before I took a position the CEO Brad Thomas was dodgy, he has a history of disturbing posts on Twitter and hung out with some very unsavoury people online. I was prepared to overlook that figuring that just because he is a really unpleasant piece of work, doesnt mean he is a bad CEO. But its ignoring the obvious signs in the Annual Report that is really stupid on my behalf. i actually dont care about the ARR stuff, its made up numbers that are up there with EBITDA in terms of bull**** numbers to be ignored.

Chose it for the 2025 competition. Honestly, many of my choices either didn't qualify or had already been chosen by others in the competition, just started scanning through companies and charts looking for anything with a chance of big returns with no fear of risk since the choice costs me nothing and I have nothing to lose, and this one caught my eye based on the chart and a project planning to be operational this year.

The chart is interesting in terms of the rising base, and picking it in the competition means I'll have a reason to watch it which means I'll see how that interesting chart pans out.

Well I am still a SH, as it made no sense to sell such a small position, they have sent the right signals about dealing with the dodgy bull**** ARR numbers, but as I said I really dont care about nonsense like ARR anyway. Small sales agreement announced today, not much but I will take any positives at this point!