Software developer Prophecy International Holdings (ASX: PRO) has continued to build on sales of its Snare security and eMite analytics platforms, reporting “solid” revenue growth for the first half of the financial year.
According to the preliminary and unaudited results, sales revenue is expected to be about $6.12 million with EBITDA of about $67,000, representing a 4% rise in revenue compared to the first half of fiscal 2018.
Prophecy chief executive officer Brad Thomas said this growth was the result of steadily increasing sales activity rather than a one-off transaction.
“In the same period last year, we had a large enterprise sale by eMite to a large global bank based in Asia that was in excess of $600,000; this sale made a significant contribution to the revenue and net profit in H1 FY18.”
“There was no corresponding large deal in H1 FY19 and this year’s result has been generated from normal sales activity and increased sales from Snare and the annuity revenue from eMite continuing to build as we add new customers on a monthly basis,” Mr Thomas said.
Prophecy’s eMite product is an intelligence platform designed for information technology service management.
The company saw an almost 60% increase in sales transactions with 59 new eMite customers added in the first half compared to 37 in the same period last year.
Sales spanned 16 countries and include blue chip companies such as global law firm Norton Rose Fullbright, hotel chain Hilton Hotels and online real estate agency Purplebricks.
According to reported statistics, 40% of all eMite sales are multi-year annuity agreements ranging between two and four years.
Prophecy also reported a 34.88% boost in new business sale transactions for its Snare product suite, which involves event monitoring and analysis tools for critical auditing and security requirements.
Total revenue was also up 10.7% from $3.54 million last year to $3.92 million.
Leading customers include the Singapore Stock Exchange, American Express, Worley Parsons, Wyndham Hotels plus several military and defence agencies around the globe.
According to Prophecy, the launch of its Snare Analytics and Snare Threat Intelligence products also helped to boost sales.
Mr Thomas said the company’s focus this year is to continue growing organically and expand both its direct and indirect sales across North America and Europe.
Fully audited financial results are expected to be released to the market later this month.
Prophecy shares climbed almost 17% to $0.31 on the news by early afternoon trade.