• $770k 12-month contract renewal and expansion with Microsoft
• 18% uplift from previous agreement
• Gross margin of ~100% due to IP ownership and low support costs

FirstWave Cloud Technology Limited (ASX: FCT) has secured an extension and ARR uplift to its contract with Microsoft Corporation (NASDAQ: MSFT). The new 12-month agreement has a total value of approximately USD $507k (~AUD $770k), representing an 18% uplift from the previous agreement. The collaboration is across various products within FirstWave's NMIS v9 suite of software. The increase in value is primarily due to an expansion in the number of licensed nodes from 12,000 to 14,000. There are no material termination clauses, and the license subscription is paid upfront for 12 months. Given the IP is wholly owned by FirstWave and the transaction has no other material costs or 3rd party COGS, the gross profit on the transaction is effectively 100%. FirstWave is confident that the expanded agreement has further capacity for growth in terms of the number of licensed nodes, the potential licensing of the company's newly released opHA Message Bus 5.0 technology, and the impending AI-powered IT compliance releases. FirstWave's NMIS is a comprehensive network management platform used globally by organizations including Microsoft, Telmex, and NASA.

The new 12-month agreement with Microsoft has a total value of approximately USD $507k (~AUD $770k), representing an 18% uplift from the previous agreement.

FirstWave is confident that the expanded agreement with Microsoft has further capacity for growth in terms of the number of licensed nodes, the potential licensing of the company's newly released opHA Message Bus 5.0 technology, and the impending AI-powered IT compliance releases.