• Revenue up 1% to $11.6M, a record H1 for the company
• Contracted annualised recurring revenue (ARR) at $25.9M as of 31 Dec 2024
• Positive cash flow expected in FY25, with robust sales pipelines for emite and Snare

Prophecy International Holdings Ltd (ASX: PRO) is pleased to report continued growth across key operational metrics for H1 FY25. Revenue was up 1% on the previous corresponding period to $11.6M, a record H1 for the company. This result reflects Snare and emite's crucial capability as an AI enabler, demonstrating appeal to a range of global regulated and critical industries, with sales growth driven by diverse new customer wins supported by significant momentum in the Middle East. Contracted annualised recurring revenue (ARR) grew to $25.9M as at 31 December 2024, with emite contracted ARR at $15.4M and Snare subscriptions at $10.5M. Prophecy expects to achieve positive cash flow in FY25, noting cash flow is seasonal as a majority of annual company expenses fall into Q1 and the majority of large receivables fall into H2. The company has robust potential sales pipelines for 2025, with emite at $10.9M and Snare at $14.6M (unweighted). Market tailwinds remain positive across Prophecy's business lines, seeing continued expansion in both CX data integration & analytics and Cyber Security. Prophecy closed H1 FY25 with a cash balance of $9.1M (unaudited) and zero debt.

Prophecy will continue to deliver new capabilities, accelerating both Snare and emite product roadmaps as we develop new revenue streams to complement existing products. We will continue our transition towards SaaS & subscription sales as we focus on driving organic growth through renewal, retention, upsell and cross sell, while proactively scanning the Australian market for potential M&A opportunities. Prophecy maintains a positive view for continued growth in Snare's business as the market for flexible cybersecurity and compliance solutions continues to expand, and likewise a positive view for continued growth for emite as a broader set of customers recognise emite's ability to help businesses manage their data in the cloud and visualise and understand their customer's journey.