Appendix 4C and Quarterly Activities Report
| Stock | Gathid Ltd (GTH.ASX) |
|---|---|
| Release Time | 24 Jan 2025, 2:41 p.m. |
| Price Sensitive | Yes |
Gathid Ltd Releases Q2 FY25 Results and Quarterly Activities Report
- 2 new customers added in Q2
- ARR increased to $1.55m at date of release in Q3
- Won Start-up of the Year in the Australian Information Security Association (AISA) 2024 Cyber Security Award category
Gathid Ltd has released its Appendix 4C and Quarterly Activities Report for the second quarter of the 2025 financial year. The company closed the quarter with a cash and cash equivalents balance of $5.64m, down from $6.78m in Q1. Annual Recurring Revenue (ARR) increased 12% in the quarter to $1.35m, up from $1.2m at the end of Q1 FY25, representing a 92% increase since the end of FY24. The company successfully secured contracts with two new customers, bringing the total customer count to 18. One existing customer also renewed their annual subscription, maintaining the company's very high renewal rate. Sales revenue in Q2 was $390k, up from $272k in Q1 FY25. The increase was driven by the new contracts, the full quarter effect of the Q1 contracts, and additional services revenue from an existing customer. The company's operating cash outflow increased in Q2 due to decreased customer receipts and slightly higher staff and corporate costs. The board is satisfied with the progress being made in the business, including the growth in ARR and new customer additions. The company also won the Australian Information Security Association (AISA) 2024 Cyber Security Award in the Start-up of the Year category, which was seen as a significant milestone.
At the date of this report, the ARR is $1.55m. The Board continues to support management in maintaining the growth trajectory of the business but with spending management in mind in line with the FY25 budget.
The company has a pipeline of opportunities in Asia, Australia/Oceana, UK and the USA, and with some sales capability now established in those geographies, activity continues on sales negotiation and completion. The Board is generally pleased with this progress, in particular the addition of a further 3 new enterprise customers since Q1, and is satisfied that the company has a sales pipeline and marketing strategy to continue growing its client base.