PRO - Prophecy

[CROESUS U.T.]

Couldn't see a thread on this company. Latest results showing some good wins.
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02397473-2A1310959?access_token=83ff96335c2d45a094df02a206a 39ff4

[CROESUS U.T.]

Page | 1
W: https://www.prophecyinternational.com/
P: +61 8 8213 1200
E: info@prophecyinternational.com
T: https://twitter.com/ProphecyIntern1
ASX: PRO
Market Announcement
Highlights:
• Prophecy achieves $9.0M revenue (unaudited) in H1 FY23 – a record H1 for the company and up
18.4% on pcp ($6.3M)
• Result reflects diverse new sales wins across both eMite and Snare, including Australian Dept
Defense, Allens, Hawaiian Electric and Manpower Group
• Annualised recurring revenue (ARR) grew to $20.6 million (33% YoY) as at 31 December
• 77% of Snare sales in H1 FY23 were made on a subscription basis, representing 219% growth in
Snare subscription sales vs H1 FY22
• Robust potential sales pipelines for 2023: eMite $12.2M and Snare $12.8M (unweighted)
• Market tailwinds positive for continued expansion in both CX analytics and Cyber Security
• Closing cash balance of $9.7M (unaudited) with no debt as at 31 Dec 2021, plus $400k in ATO
payments received in January
Sydney — 8th February 2023

[NZSilver]

I bought a position in this a few weeks ago at 61.5c, based on the results over the last year or so.

They have good momentum and currently trade on approx 2x ARR which is bloody cheap. Last year is grew particularly fast with their emite software and gaining new customers

They are also moving snare this way but this is a little harder to get to grips with as they are moving current customers from one off legacy one of purchase to subscription.

If they continue to grow ARR this will prove to be a bargain and the company will become very profitable.

Next year or so will be very interesting to see how they go signing up new customers and growing ARR further on emite. Snare conversion + new customers could also add to good growth.

Good inside ownership, now debt, 10 million cash on balance sheet.

Probably caught up in tech + microcap being sold off

Time will tell, but due to the current price I don't see much downside but there sure is plenty of upside.

[NZSilver]

I should add this has been listed for years and over the years it hasn't quite got there. I did own years ago for a short period, but now it certainly looks like they have simplified their product offering and they now have genuine growing market for their software products

[CROESUS U.T.]

Growth potential here
https://mcusercontent.com/76ba0d741de3bc3c54b421c08/files/c9e54688-d9c2-0053-57ff-5b99365c7240/PRO_Prophecy_and_Oracle_Partner_to_Co_Sell_Snare_a nd_eMite.pdf

[NZSilver]

Yes two announcements, 1.oracle partnership - hopefully we see some good wins from here but I have seen these kind of partnerships in businesses before which didn't necessarily create much benefit. 2. Australian ethical has become a significant shareholder. This is very good to see, re-ratings often begin when significant/institutional shareholders become part of company registers, hopefully more off this to come.

[NZSilver]

https://stockhead.com.au/experts/criterion-these-asx-cybersecurity-stocks-are-not-for-hacks/

[DarkHorse]

https://stockhead.com.au/experts/criterion-these-asx-cybersecurity-stocks-are-not-for-hacks/

Thanks for posting, certainly looks to have potential.
Has anyone crunched the numbers to estimate realistic profits for FY 25+ ? (or perhaps have any broker forecasts... none appear on Market Screener)