• 53% increase in paid mobile subscribers to 39.8k
• 16% growth in Annual Recurring Revenue to $11.0m
• 18% increase in gross profit to $3.2m

Spacetalk Ltd (ASX: SPA) has reported its Appendix 4C for the quarter ended 31 December 2024 (2QFY25), along with an operational update. The company achieved several key financial highlights, including a 53% increase in paid mobile subscribers to 39.8k, a 16% growth in Annual Recurring Revenue (ARR) to $11.0m, and an 18% increase in gross profit to $3.2m. The growth in paid mobile subscribers and ARR reflects the success of Spacetalk Mobile and the company's focus on building sustainable, high-quality revenue streams. The increase in gross profit was driven by the company's ongoing focus on higher-margin revenue streams and stabilizing key segments. Spacetalk also reported a reduction in operating payments by 25% compared to the prior corresponding period, reflecting the positive impact of optimizing and right-sizing the cost base. The company's cash flow used in operating activities remained steady at -$1.1m, demonstrating the underlying stability of its cash flow generation. Spacetalk's international expansion efforts are also underway, with business development and sales now active in the USA, United Kingdom, Canada, Finland, Australia, and New Zealand. The company is prioritizing app development as a key initiative to drive further ARR growth, with the launch of version 1.5 of its app and ongoing development of a new version. Looking ahead, Spacetalk remains confident in its ability to deliver sustainable growth, focusing on scaling the business, enhancing customer lifetime value, and executing its strategy to create long-term value for its stakeholders.

Spacetalk expects to maintain its strong performance, with continued growth in paid mobile subscribers, Annual Recurring Revenue, and gross profit. The company is also focused on optimizing its cost base and maintaining stable cash flow generation to support its strategic initiatives and international expansion efforts.

Spacetalk is confident that the strong foundation it has established will enable the company to deliver sustainable growth. The company's focus remains on scaling the business, enhancing customer lifetime value, and executing its strategy to create long-term value for its stakeholders.