Prophecy international PRO

[NZSilver]

This software company has two products, emite which is used to manage and optimise call centers - as digitisation occurs of call centers this is becoming a necessary and important part. They also have a product called snare which is a security logging software - contracts with the likes of UK armed forces. Prophecy was originally a company that had a suite of many different products that it had built and purchased over the years. Over the last few years it has consolidated these in too the above two products and begun converting over to the saas model. They are still going through this process so it is hard to get a clean reading in the numbers as clients fall off the legacy purchase to subscription model, but it's starting to look really good. Last quarter was cf+ve abd they significantly grew ARR (annual reoccurring revenue). They also have very solid re-sale agreements in place and a large competitor has had some trouble. I've bought some as the next few years could be exceptional and is trading on less than 3xARR at the moment. It should post a profit next year.

[Rawz]

Looks interesting. Large cash balance as well.

[NZSilver]

Yes, also no debt. Up 10%+ in the last week. Luke Winchester has mentioned it as one of his holdings on the podcast I listen too. Liquidity isn't great at the moment but this could be beneficial for a run upwards if interest increases.

[blackcap]

This company is interesting. However caveat emptor. In the past there has been a lot of promise and little delivery..

I do hold some and have for a while. Look to top up at low levels where possible.

[BDL]

This company is interesting. However caveat emptor. In the past there has been a lot of promise and little delivery..

I do hold some and have for a while. Look to top up at low levels where possible.

My thoughts / experience also.

[NZSilver]

This company is interesting. However caveat emptor. In the past there has been a lot of promise and little delivery..

I do hold some and have for a while. Look to top up at low levels where possible.

I've followed it on and off for years and definitely understand the sentiment. I tried to dig up the old thread on a couple occasions in the last few months but it must have been lost in all the previous hype

I know the words "this time is different" are dangerous but if you follow what management has done over the last two years and their results, the facts are pointing to them being on the right trajectory

[Rawz]

i tried looking last night through some of the recent presentations for a graph of customer number growth? Couldnt see anything.

Silver do you have any data on this or do they not disclose it?

[NZSilver]

Looks at the (Prophecy Full Year FY23 update) market announcement. There is a graph at the bottom with all your info, you will note legacy customer numbers decreasing as they move them to annual subscription model. This alters revenue as instead of one lump sum they recognise each year but overall make more.

Emite runs on seats covered so you have to check out the contracts.

We are seeing good operating leverage now as larger amounts of revenue will begin dropping to the bottom line as they win more customers and lock existing customers into the saas model.

[NZSilver]

Nice little contract win adding to their emite ARR.

They are pushing hard with reseller relationships, currently 3 outfits they have partnered with oracle, gensys and carahsoft. Genesys has had some restructuring in the last 6 months and this has likely delayed their traction with them as a reseller.

It will be an interesting 6 months as usually 2nd half of the year is stronger for contracts. I believe we will get a good gauge on how things are progressing with prophecy now connected and aiming leaverage a global sales team through recent reseller relationships.

Fingers crossed some more contract signings and we begin to see operating leaverage with large proportions of revenue dropping to the bottom line, time will tell...

[CROESUS U.T.]

Nice announcement for 1st half with 29% increase in rev and continued growth in annualised recurring revenue.