High-flying Prophecy looks forward to strong earnings

Prophecy International Holdings ASX PRO earnings

Software developer Prophecy International Holdings (ASX: PRO) has reported that it has started the 2018 financial year with a 24% revenue increase in the first half of the year, according to preliminary results ahead of the company’s full audited results due in late February.

Prophecy says it expects to report sales revenue of approximately A$5.89 million with earnings before interest and tax (EBIT) of approximately $1.06 million — an increase of 58% compared to the first half of 2017.

On a slightly sour note for shareholders, Prophecy says that “while this is a pleasing result, no dividend will be declared for this half.”

Overall, investors reacted positively to the news sending Prophecy shares 14% higher to trade at $0.68 per share by mid-afternoon.

According to a shareholder update, Prophecy generated 39 new clients in the first half of 2017 courtesy of its relationship with Telstra/Genesys and is committed to “driving investment in new sales resources to address the growing market opportunity.”

“We have increased coverage to include new sales resources in Australia covering APAC, in Sao Paulo, Brazil covering LATAM; and in Indianapolis, USA to cover North America,” said Brad Thomas, CEO of Prophecy International Holdings.

“Our focus now is to continue to drive this relationship to ensure the eMite CX Intelligence platform is added to a high percentage of all new sales for PureCloud by Genesys and to address the opportunity for CX Intelligence for the remaining 9,000 Genesys customers with on-premise solutions,” he said.

Given today’s performance update and final audited results due later this month, Mr Thomas said that “on the back of these results, as well as a few large enterprise sales for eMite in the IT operational intelligence market, we expect eMite to be in profit for H1 [2017].”

Platform analytics

Prophecy’s eMite CX Intelligence platform provides customers with real-time insights into their business operations, correlating and aggregating data from multiple systems like PureCloud, Salesforce and ServiceNow, into a real-time dashboard with advanced analytics.

Earlier this year, Prophecy brought new partners to expand its network of compatibility, by adding Datacom, UCA and QPC — with all three signing on as eMite CX Intelligence partners in Australia.

Regarding its Snare product, Prophecy says that it has “delivered the strongest sales quarter for Snare for the last 6 quarters,” attributing the performance to strong demand for enterprise-grade logging and log management solutions, as well as restructuring its US sales team and adding sales resource in Australia.

“Our logging log management solution is used in the largest government and defence agencies around the world, as well as in some of the largest banks, utilities, health providers and in retail,” said Mr Thomas.

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