Excite Posts $5.07M Quarterly Revenue, Doubles Customer Receipts to $4.08M

A Turning Point for Excite Technology Services

Excite Technology Services Limited (ASX:EXT) marked a pivotal milestone in the December 2024 quarter by reporting positive EBITDA for the first time, a significant achievement for the cybersecurity and IT services provider. The company’s quarterly revenues jumped to $5.07 million, a substantial increase from $1.06 million in the previous quarter, largely fueled by the recent acquisition and integration of CBIT Pty Ltd’s Digital Forensics Group (CDFS).

Customer receipts doubled quarter-on-quarter to a record $4.08 million, underscoring strong market demand and effective collection strategies. This surge was supported by major contract renewals and expansions within Excite’s Digital Forensics division, which secured $4.06 million in new business from law enforcement and government agencies, reinforcing its position as a trusted provider in this niche but critical sector.

Strategic Acquisition and Operational Momentum

The formal completion of the CDFS acquisition in October 2024 has already begun to bear fruit, enhancing Excite’s service capabilities and financial performance. The integration of CDFS not only contributed to revenue growth but also helped the Group achieve break-even EBITDA in December, a key operational milestone. The company’s Cyber Security division also maintained momentum, securing renewed contracts worth $443,000 in the healthcare and retirement living sectors and advancing its Security Operations Centre with automation tools to improve efficiency.

Excite’s focus on expanding its consulting capabilities was highlighted by the appointment of Louise Hanna as Head of Professional Services Consulting, bringing deep expertise to bolster the Group’s cyber strategy and governance, risk, and compliance (GRC) consulting offerings.

Cash Flow and Funding Dynamics

Despite the positive EBITDA, Excite reported a net operating cash outflow of $2.31 million for the quarter, primarily due to a $2 million product resale ahead of anticipated customer receipts in January 2025. The company’s closing cash balance stood at $810,000, supported by credit facilities and accounts receivable of $2.6 million at quarter-end, which management confirmed were collected promptly in January.

Additionally, the Group completed the second tranche of convertible note funding with Belgravia Group, receiving $1 million in December, further strengthening its financial position. Excite’s management remains confident that the one-off cash outflows related to acquisition integration and inventory build will not recur, and that ongoing revenue growth and cost optimisation will drive positive cash flow in upcoming quarters.

Looking Ahead: Growth and Capability Expansion

Excite is progressing construction on the NANGU Digital Cyber Forensics Training Centre, a federally funded facility expected to be completed by March 2025. This centre will offer immersive training environments including a cyber-range and simulated courtroom, positioning Excite as a key player in developing Australia’s next generation of cybersecurity and digital forensics professionals.

With a strengthened portfolio spanning managed IT services, cybersecurity, digital forensics, and accredited training, Excite is well positioned to capitalise on growing demand in mid-market cyber and IT consulting sectors. The company’s renewed focus on recurring revenue streams and strategic expansion signals a promising trajectory into 2025, despite the broader market challenges.