Orcoda’s Transport SaaS Revenue Surges 56% in 1H FY25
Orcoda Limited reports robust SaaS revenue growth in its Transport Technology division for 1H FY25, offsetting challenges in its Infrastructure Services business. The company maintains optimism for future contracts and strategic expansion.
- Transport Technology SaaS revenue up 56% in 1H FY25
- Positive net operating cash flow achieved each quarter
- Infrastructure Services revenue down 54% due to deferred major works
- Mt Buller Contract revenue declined 20% amid shortened snow season
- New SaaS contracts forecast over $1 million in total revenue
Strong SaaS Momentum in Transport Technology
Orcoda Limited (ASX: ODA) has delivered a compelling first half for FY25, marked by significant growth in its Transport Technology division. The company’s proprietary SaaS offerings, including the Refuelling Solutions and Mini-tankers contract, propelled a 56% increase in SaaS revenue compared to the previous corresponding period. This surge was supported by a strategic overhaul of the internal sales approach, resulting in multiple new contracts with a forecasted total revenue exceeding $1 million and approximately $330,000 in annual recurring revenue.
Future Fleet, Orcoda’s fleet management and telematics arm, also contributed to the positive trajectory with sales revenue rising nearly 20% year-on-year. Notably, recurring subscription fees accounted for 55% of Future Fleet’s revenue, underscoring the growing stability and predictability of Orcoda’s income streams in this segment.
Challenges in Infrastructure Services and Mt Buller Contract
Conversely, Orcoda’s Infrastructure Services division, operated through Betta Group, faced headwinds in 1H FY25. The deferral of a major works program by Betta Group’s largest customer led to a 54% decline in divisional revenue to approximately $4.4 million, down from $9.6 million in the prior year. This downturn was compounded by the cycling of exceptionally strong contracts in 1H FY24, including significant projects with Aurizon and Yurika.
Meanwhile, the Mt Buller rideshare and guest transit services contract generated $1.6 million in revenue, a 20% drop from the previous period due to an unfavourable and shortened snow season. Although this impacted EBITDA by $40,000, Orcoda remains engaged in discussions for contract renewal and potential expansion across six alpine resorts in Victoria, signaling possible future growth opportunities.
Financial Position and Outlook
Despite the mixed divisional performances, Orcoda achieved positive net operating cash flow in both quarters of 1H FY25, closing the half with $3.1 million in cash reserves. Total income for the period is expected to be around $9.5 million, down from $14.5 million in 1H FY24, with EBITDA anticipated to be a negative $0.5 million compared to a positive $1.5 million previously.
Managing Director Geoff Jamieson expressed confidence in the long-term prospects of Betta Group, highlighting recent successes in securing Energy Queensland panels and new projects in Rockhampton. He emphasized that the groundwork laid in FY25 is expected to yield benefits in future periods, aligning with Orcoda’s broader smart cities strategy.
Investors and analysts will be watching closely for the detailed 1H FY25 results due on 27 February 2025, which will provide further clarity on Orcoda’s trajectory and the impact of its strategic initiatives.
Bottom Line?
Orcoda’s SaaS growth cushions short-term infrastructure setbacks, setting the stage for a pivotal 2H FY25.
Questions in the middle?
- Will Orcoda secure the Mt Buller Contract extension and expand across other alpine resorts?
- How quickly can Betta Group recover revenue momentum from deferred major works?
- What impact will new SaaS contracts have on Orcoda’s ARR and profitability in the coming quarters?