• Record high Annual Recurring Revenue (ARR) of $9.7m
• Successful renewal of large enterprise client contracts
• Increased investment in library-tech solutions

Knosys Ltd (ASX:KNO) has reported its Q2 FY25 results, highlighting several key achievements. The company successfully renewed contracts with several large enterprise clients, including Optus, Service Tasmania, and Healthdirect, with a combined contract value exceeding $3 million over the next two years. These contract renewals, combined with new customer acquisitions, have led to a record high Annual Recurring Revenue (ARR) run rate of $9.7 million as of January 2025. Knosys continued to invest in new product development, with a focus on its library-tech solutions. The company increased its R&D spending to $575,000 in preparation for the planned commercial launch of the Libero Library App in March 2025. The Libero Library App is designed to enhance the library member experience by providing access to library resources and services beyond the physical location. Knosys ended the December quarter with a cash balance of $3.5 million and is on track to receive over $2 million in cash receipts by the end of January 2025 from the annual license fees of several large clients. The company's outlook is positive, with a continued focus on prioritizing investment in library-tech to deliver more capability and drive increased pipeline and revenue from the Libero solutions locally and internationally from FY26.

Knosys is expecting to achieve a record high Annual Recurring Revenue (ARR) run rate of $9.7 million as of January 2025, which will underpin the company's recurring revenue over the next few years.

Knosys is focused on transitioning the company to be a world-class library technology provider by helping libraries adapt to and thrive in the digital age. The company's broader development program is investing in several client proof-of-concepts based on Artificial Intelligence technologies for use in library-tech and knowledge management markets.