Beonic Quarterly Business Review and Appendix 4C

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Stock Beonic Ltd (BEO.ASX)
Release Time 31 Jan 2025, 8:41 a.m.
Price Sensitive Yes
 Growing ARR and margin expansion propel Beonic towards profitability
Key Points
  • Recurring Revenue of $4.4m (+5.3% vs PCP) and Annualised Recurring Revenue (ARR) of $17.6m (+4.3% vs PCP)
  • Strong and sustained YTD gross margin of 77.4%, a notable improvement compared to the FY24 gross margin of 68.5%
  • Q2 FY25 net cash outflow from operations of $725k, positively impacted by $632k in R&D costs capitalised
Full Summary

Beonic reported a strong Q2 FY25, with recurring revenue of $4.4m (+5.3% vs PCP) and annualised recurring revenue (ARR) of $17.6m (+4.3% vs PCP). The company achieved a notable gross margin improvement to 77.4% YTD, compared to 68.5% in FY24, reflecting ongoing efforts to enhance profitability and progress towards cashflow breakeven. Q2 FY25 net cash outflow from operations of $725k was positively impacted by $632k in R&D costs capitalised in accordance with AASB 138. Beonic also reported a $0.5m reduction in staff and administration costs compared to the previous corresponding period, reflecting the positive impact of ongoing cost reduction initiatives. The company secured several key contract wins during the quarter, including with JFK (USA), Cooperativa Veiling Holambra (Brazil), and LaTrobe City (APAC), as well as notable renewals with Heathrow Airport (UK), Dasa (BR) and The Trafford Centre (UK). Beonic appointed Marc Thompson as Chief Technology Officer, effective 10 February 2025, and Michael Pearce was appointed as Company Secretary, in addition to his current role as Chief Financial Officer.

Guidance

Maintain strong YoY gross margin improvement (77.4% YTD v's 68.5% FY24) while progressing toward breakeven. Currently forecasting cashflow breakeven from operating activities during H2, FY25.

Outlook

Beonic's priorities for the second half of FY25 centre on achieving financial stability while accelerating product adoption. Key priorities include solidifying Beonic's position as a global leader in IoT solutions, achieving financial stability through disciplined cost management and operational efficiency, enhancing product adoption, delivering key projects with a focus on customer satisfaction, securing new logos, and accelerating pipeline conversion.