• Challenging FY25 with decreased revenue, higher expenses, and customer churn
• Significant investments in modernizing emite, expected to reduce hosting costs by $700K pa
• Positive market tailwinds in cloud data management, CX analytics, and cybersecurity

Prophecy International Holdings Ltd (ASX: PRO) presented its AGM Presentation for 2025, highlighting both the challenges faced in the previous financial year as well as the strategic initiatives and growth opportunities ahead. The company reported a 5% decrease in revenue to $21.8M for FY25, primarily due to the expiry of some fixed-term customer contracts, higher-than-expected customer churn, and soft sales performance, particularly in North America. Significant expenses were also incurred in hosting costs and the ongoing modernization of the emite application architecture, which is expected to reduce hosting expenses by approximately $700K per annum once complete.Despite the challenges, Prophecy remains focused on cost reduction strategies and sees positive market tailwinds in key areas such as cloud data management, CX analytics, and cybersecurity. The company's Snare suite of products continues to provide best-in-class forensic log collection, data pipeline management, and bespoke storage and compliance capabilities, addressing critical security controls for customers across multiple verticals.Looking ahead, Prophecy is initiating work on a 'next-generation' cloud offering for Snare, re-imagining the product for modern cloud workloads and opening new markets and revenue streams. The company is also exploring the application of AI technologies to security and compliance use cases, as well as continuing to focus on embedding security and compliance domain knowledge to address the skills gap and simplify buying decisions.Prophecy remains committed to strengthening partnerships with Managed Service Providers (MSSPs), SIEM/XDR vendors, and System Integrators, as well as focusing on regulated industries with compliance requirements, which represent short buying cycles and immediate need. The company is also implementing a new tiered pricing model for Snare and driving a focused upsell campaign globally to expand its Reflector and Central install base and migrate non-subscription customers.

FY26 Forecast: Invoicing $23.5M, Revenue $22M. The company is focused on strong promotion of new product releases, strengthening partnerships, customer retention, and financial discipline.