• Revenue up 1% to $11.6M, a record H1 for the company
• Contracted annualised recurring revenue (ARR) increased to $25.9M
• Positive cash flow targeted in FY25, with zero debt and $9.1M cash balance

Prophecy International Holdings Ltd is a pure play B2B and B2G software and SaaS company serving large enterprise and government customers globally. In H1 FY25, the company posted revenue of $11.6M, up 1% from the previous corresponding period, marking a record half-year. Contracted annualised recurring revenue (ARR) increased to $25.9M, with emite ARR at $15.4M and Snare subscriptions at $6.4M. The company continues to transition Snare towards a primarily subscription-based model. Prophecy remains debt-free with a cash balance of $9.1M at 31 December 2024. The company expects to achieve positive cash flow in FY25, noting that cash flow is seasonal with the majority of annual expenses falling in Q1 and large receivables in H2. Prophecy is playing a crucial role as an AI enabler, providing the secure, structured, and scalable data that AI systems depend on. The company's emite and Snare solutions are seeing continued expansion in data integration & analytics and cyber security data management, respectively. Emite has an almost 100% channel-based go-to-market strategy and has achieved several new customer wins, including a 6-year, $10.7M contract with Optus Networks Pty Ltd for Services Australia. Snare has also signed new contracts with significant enterprise clients and partners, with more than 80% of new sales on a subscription basis.

Prophecy expects to achieve positive cash flow in FY25 following cash flow breakeven in FY24. The company remains focused on delivering organic growth through its emite and Snare product lines, with market tailwinds remaining positive across its business lines.